Contact Information Computer Co., Ltd. http://world.casio.com

For inquiries on CSR in general: CSR Operations Section Casio Computer Co., Ltd. 1-6-2 Honmachi, -ku 151-8543 Tel.: +81-3-5334-4901 Fax: +81-3-5334-4547 Email: [email protected]

For inquiries on environmental issues: Environment Center Casio Computer Co., Ltd. 3-2-1 Sakae-cho, Hamura-shi Tokyo 205-8555 Tel.: +81-42-579-7256 Fax: +81-42-579-7718 Email: [email protected]

Published: December 2006

We promote green purchasing for This report is made of paper certified by the Forest Stewardship Council (FSC) to be made of printing services. material sourced from well-managed forests, and printed with soy ink certified by the American Soybean Association. Contents Introduction

Message from the President on Casio’s Social Responsibility...... 02 Editorial Policy

Corporate Profile Casio began publishing its Environ- mental Report in 1999. In 2004, the History of Casio...... 04 publication was changed to the Business Overview ...... 06 Sustainability Report with the addition ...... of social and economic content. In Casio’s Unique Strengths 12 2005, the content was further improved to create the Corporate Social CSR Highlights Responsibility Report. In 2006, it has ...... been renamed the Corporate Report, Research & Development—Next Generation Fuel Cell 15 and now includes the previously sepa- Production—Yamagata Casio Receives 2005 Nikkei “Monozukuri” Grand Prix...... 16 rate Corporate Profile. By also adding a Growing with Society through Creativity Social Contribution—Factory Tours for 10,000 People...... 18 Web version to the printed publication, Environment—Initiatives to Help Prevent Global Warming: Working to Achieve offering more detailed data, Casio is and Contribution striving to provide more accessible ...... Fiscal 2011 Targets 20 information to all of its stakeholders.* European Regulation Initiatives ...... 21 ● The report has been presented in an “Let’s build the ideal with our very own hands.” easy-to-understand format, so that all CSR Management stakeholders,* including the This was the mantra adopted by the four Kashio brothers as consumers who love Casio products, Corporate Creed and Charter of Creativity...... 22 can easily read the material. they developed a calculator that used only electrical ● Corporate Governance ...... 23 In this report, the name “Casio circuits—back when gear-operated mechanical ...... Computer Co., Ltd.,” refers only to the Compliance and Risk Management 24 parent company, while “Casio” is were the only available technology. By 1957, the four used to indicate the entire Casio Casio and the Market group of companies. brothers had already succeeded, introducing the world’s ● Please see page 68 of the Web ver- first small, fully electric calculator (the “14-A”), and Responsibilities to Customers—Customer Satisfaction and sion for information on the scope of Quality Assurance ...... 26 the printed report. founding Casio Computer Co., Ltd. ● Responsibilities to Suppliers—Building Strong Partnerships...... 28 Beginning with this report, Casio has changed the way it designates the Responsibilities to Shareholders and Investors—Optimum fiscal year to match the other reports Ever since, Casio has been leveraging its digital Shareholder Return and Information Disclosure ...... 29 it regularly publishes: Web version Responsibilities to Customers—Stable Supply of Products In this report: FY2006 means from technologies to advance into new business fields— Responsibilities to Customers—Research and Development of April 1, 2005 to March 31, 2006 Next Generation Products Previous reports: FY2006 meant from timepieces, musical instruments, and LCD April 1, 2006 to March 31, 2007 ● monitors, to name a few. Casio’s dynamism Casio and the Global Environment Graphs and diagrams have been designed so that they are easy for comes from its profound ability to develop Environmental Management Vision ...... 30 everyone to view, including those with different visual and color perception. innovative products that meet latent but Casio Environment Charter and Casio Fundamental ● Contact information and a Website universal needs. Again and again, Casio has Environmental Policies...... 31 address has been provided on the Environmental Action Plan, “Clean & Green 21” Initiative...... 32 back cover to help promote interac- defied conventional wisdom to give people tive communication with stakeholders. From Eco-product Design to CSR Design...... 34 the things they really need but haven’t LCA Evaluation Report ...... 35 *Stakeholders even thought of yet. The company is Material Balance of Business Activities...... 36 Stakeholders of Casio include cus- Communication and Disclosure about the Environment ...... 37 tomers, suppliers, investors, contributing to societies around the world shareholders, employees, local resi- Environmental Accounting...... 38 Environmental Management System dents, NGOs, NPOs, the mass media, by delivering convenience and Web version Green Procurement and Green Purchasing financial institutions, researchers, and entertainment, creating new markets, Material Balance by Business government agencies. Initiatives to Prevent Global Warming and facilitating cultural development. Prevention of Air and Water Pollution and Reduction of Industrial Water Usage Control of Chemical Substances and Reducing Their Use Forecasts and Reduction of Waste Generation and Landfill Disposal Forward-looking Statements True to its corporate creed, Environmentally Friendly Distribution The future forecasts and forward- Environmentally Friendly Packaging Materials looking statements published in “Creativity and Contribution,” this report for Casio Computer Co., Casio’s greatest responsibility is Ltd., and Casio are based on infor- Casio and Employees mation available at the time of improving people’s lives by publication. These forecasts and developing groundbreaking Creating Employment Opportunities ...... 40 statements include potential risk ...... Appointing and Effectively Deploying Qualified Workers 41 and uncertainty, and the reader new products. Along with this ...... Building a Supportive Work Environment 42 should be aware that the actual core commitment, Casio is Efforts on Occupational Safety and Health ...... 43 results of business activities may differ from these predictions. proud to say that all of its Casio and Society employees have, as part Social Contribution Initiatives Issued December 2006 ● of their job descriptions, Philosophy, Local Communities, Previous publication December 2005: Corporate Social determined their own Civil Society, International Community...... 44 Responsibility Report 2005 personal commitment Company Data Recognition from Society/Scope of the Report A Web version of this report to social contribution...... Company DataIndependent Opinion 48 including specialized and detailed The goal of the Web version GRI Content Index information, as well as third-party opinions, has also been published. company and all of its people is to

Environmental Report Website grow by helping society to grow. http://world.casio.com/env/

Casio Corporate Report 2006 01 Message from the President on Casio’s Social Responsibility

“Casio has been pursuing ‘Creativity and Contribution’ since the beginning. These unchanging values define our commitment to fulfilling our corporate social responsibility.”

Our Corporate Creed: “Creativity In 2004, Casio inaugurated its CSR Operations ● Casio will observe all applicable laws and and Contribution” Section, and set up a CSR Committee comprised of regulations, and will strive to improve corporate the company directors and auditors. These steps value by reinforcing its system of internal controls Casio’s corporate creed has been “Creativity and have provided a forum for discussion of a broad and implementing effective compliance and risk Contribution” since we established Casio Computer range of CSR issues. Also in that year, we added a management throughout its entire global Co., Ltd., after inventing a small, fully electric section on social contributions to our Environmental supply chain. calculator in an era when mechanical calculators Report (published since 1999) to create the ● Through its primary business activities, Casio will were the norm. Ever since, our commitment has expanded Sustainability Report. continue to create new value to help resolve been to contribute to society by offering the kind of Since 2004, we have promoted a wide range of various issues facing the global community. original, useful products that only Casio can. CSR initiatives, including strengthening our ● Casio will consistently implement environmental We have accomplished this over the years by compliance system, obtaining Privacy Mark innovations that integrate eco-efficiency as well as identifying latent needs that people have yet to certification for personal data protection, achieving resource conservation and energy saving features discover, and then meeting those needs with zero emission standards in Casio’s main operations into all processes related to creating products innovative products and services, which soon sites in , taking steps to comply with and services. become an integral part of people’s daily lives. environmental regulations, promoting CSR ● Casio will disclose financial and other information In doing so, we always strive to think bigger than the procurement, and issuing the Corporate Social in a simple, accessible format to all mere provision of new technology, products, or Responsibility Report in 2005. stakeholders, and increase management services—our real goal is to inspire new lifestyles transparency by creating more opportunities for and contribute to culture. Pursuing CSR-driven Management interactive communication. Times may change, but our commitment to “Creativity and Contribution” is unwavering. This Despite all of these achievements, Casio—like all In past years, Casio has published the Corporate Kazuo Kashio creed defines the company’s very reason for being. other companies today—is subject to ever stronger Profile and Corporate Social Responsibility Report President & CEO Looking to the future, Casio has its sights set on demands and higher expectations from society. In separately. This year, however, we have combined bringing joy and wonder to people everywhere and order to secure fair and transparent management the two into an integrated Corporate Report—the continuing to make a real difference in the world. To and continue to improve corporate value, we recog- one you are reading now—in order to present a fuller earn its place in a sustainable global society, Casio nize the need to once more return to the founding picture of Casio to readers of both publications. I must keep demonstrating the meaning of “Creativity principles of “Creativity and Contribution.” In doing hope this Corporate Report will serve as an and Contribution.” so, we intend to find and exploit synergies between important means of communication between Casio our everyday business activities and CSR initiatives. and all of its stakeholders. For a variety of details CSR Initiatives We shall make CSR a core driver of that could not be included in this publication due to management by faithfully executing on the space limitations, I invite you to visit the In Japan, 2004 has been called the dawn of the “age following commitments. Casio Website (http://world.casio.com). of CSR,” as many companies introduced a variety of I am committed to managing Casio for socially CSR initiatives. Many also came out with their own ● To continue realizing the unchanging, responsible business success, and I would definitions of CSR, but these definitions are by no foundational principles of “Creativity and appreciate hearing your frank opinions of our efforts. means universal. The scope of CSR and the role Contribution,” Casio will adhere to the Charter companies expect themselves to play differs with of Creativity for Casio and the Casio each organization’s perspective. Common Commitment.

02 Casio Corporate Report 2006 Casio Corporate Report 2006 03 History of Casio

Contributing to Society: A History of Innovative Product Craftsmanship and Strong Stakeholder Relationships

Business Activities CSR Activities

ADPS R1, an office information processing device that requires no user 1989 Consumer Section renamed to Customer Service Office, and set up in each program, released. region of Japan. Profile Corporate Business Activities CSR Activities Name Land (KL-1000) label released. 1991 Casio Environmental Conservation Committee established. 1957 1957 Commercial production of the world's BP-100, a wristwatch-type blood pressure 1992 first small, fully electric calculator starts. monitor, released. Casio Computer Co., Ltd. founded.

1993 Casio Environmental Charter and Casio Voluntary Plan for the Environment Management CSR Highlights CSR adopted. Use of specified CFCs and 1, 1, 1-trichloroethane discontinued. 1964 Qualification program based on meritocracy adopted. Education and QV-10, the first digital in the world with 1995 training system established. QV-10 an LCD monitor, released. Casio releases 001, its first transistor-based electronic desktop calculator. 1965 DQD-10 radio-controlled released. 1996 Export of electronic desktop calculators to overseas markets begins. 1966 1997 Casio Group’s environmental activities published on Casio Website. 1967 Zero defect campaign launched to promote “Casio known for quality.” Yamagata Casio acquires ISO14001 certification.

1969 Casio Labor Union formed, with the basic 1998 Casio Korea acquires ISO14001 certification. credo of “Trust Each Other, Understand Casio Code of Conduct established. Each Other.” Market the and Casio Casio stock listed on the second section of the 1970 . World’s first equipped with GPS function released. 1999 “Clean & Green 21” Initiative, a Casio Group-wide environmental action 1971 Casio Eight Club established to promote C303CA, a shock- and water-resistant, cdma One-compatible plan, introduced. amicable relationship with office supply cellular phone, released. Green Procurement Guidelines established. wholesalers throughout Japan. Program launched to recover tape cartridges from label printer products Casio Mini, the world’s first personal electronic 1972 Casio Mini sold to corporate customers. calculator, released. Corporate officer system adopted. Environment Global the Casio stock transferred to the first section of the Environmental Report 1999 published. Tokyo Stock Exchange. Casio participates in Eco-products 1999 exhibition. and Casio Casio Eight Club Casio enters timepiece market with the release 1974 VeriPat TM, a fingerprint verification algorithm, developed. 2000 ISO14001 certification now acquired at all manufacturing sites in Japan and of Casiotron, a digital wristwatch. four sites of Casio Computer Co., Ltd. Electronic cash register released. 1976 1977 Casio receives Prime Minister's WVA-300D/300K solar-powered radio- 2001 Casio Green Products 30 (C.G.P.30) campaign launched. ai n Employees and Casio Commendation for its contributions controlled watch released. Recycling of secondary rechargeable batteries initiated. Casiotron to the progress of calculators. Production of liquid crystal panels 1978 for begins. R&D success achieved on small, high- 2002 Three Casio sites (the head office and Ichinomiya factory of Kofu Casio Co., ∑-S8700 series of Japanese-language 1979 Certificate of commendation performance fuel cells for mobile devices. Ltd., and the Yamanashi facility of Casio Micronics Co., Ltd.), achieve zero office computers released. Casio delivers first camera-equipped cellular emissions (less than 1% waste disposed in landfills). GPS cellular phone with phone with GPS to au of KDDI. Program launched to recover and recycle end-of-life personal computers built-in camera for au EXILIM, the world’s thinnest, wearable card- and other information processing equipment sold to corporate customers. ai n oit opn Data Company Society and Casio Casio Tone electronic keyboards released. 1980 sized , released. Kochi Casio Co., Ltd., awarded the Natural Resources and Energy Agency Director-General’s Commendation for Excellence in Energy Management at TR-2000, Casio’s first electronic First GOLF a Factory (in the electricity sector). Casio Tone 1981 dictionary, released. TOURNAMENT held. SL-801 solar-powered electronic The first CASIO WORLD OPEN Fingerprint verification device for mobile devices 2003 calculator released. Dedicated office, the Consumer Section, Charter of Creativity for Casio established. developed. established to receive inquiries from Casio Code of Conduct revised. Casio enters the data projector market. general consumers. Casio Common Commitment established. EXILIM Recovery of end-of-life home personal computers initiated.

1982 Casio Science Promotion Foundation established. Casio Mobile Communications Co., Ltd., a joint venture with 2004 CSR Operations Section and CSR Committee established. First G-SHOCK, a shock-resistant 1983 Hitachi, Ltd., for developing cellular phones, established. Sustainability Report 2004 issued, replacing the Environmental Report. TR-2000 wristwatch, released. TV-10 pocket-sized LCD color TV released. Casio Science Promotion Foundation Casio collaborates with Renesas Technology Corp. on semiconductor 2005 Corporate Sustainability Report 2005 issued, replacing the Sustainability First LCD shutter page printer released. 1984 device packaging technology. Report. Casio forms alliance in LCDs with Taiwan’s HannStar Display Corp. Casio Computer Co., Ltd., and Casio Lease Corporation obtain Privacy Mark certification. Improvements completed on all products destined for Europe in compliance PELA super-thin digital watch released. 1985 with the RoHS Directive.

1986 Company-wide Quality Improvement 2006 Corporate Report 2006 issued, replacing both the Corporate Sustainability G-SHOCK Campaign launched. Company-wide Quality Report and Corporate Profile. Improvement Campaign

04 Casio Corporate Report 2006 Casio Corporate Report 2006 05 Business Overview

Consumer Category Casio’s two main businesses are electronics and electronic components. The company creates products that are compact, lightweight, slim, and energy efficient for the global market. Greater Convenience, More Enjoyment

Business Fields Profile Corporate

The Casio Group is comprised of Casio Computer Sales by category Casio offers a wide array of Co., Ltd., 56 consolidated subsidiaries, and 4 (FY 2006) equity-method affiliates (as of March 2006). Casio Others products to make everyday conducts its business in two main segments: 5.7% life more convenient and Consumer Electronics, and Electronic Components and Electronic Components fun. They include everything Management CSR Highlights CSR 12.7% Electronic 36.8% Others. The Electronics segment is divided into four Components from calculators for a myriad categories: Consumer, Timepieces, Mobile Network and Others System Equipment 18.4% of commercial and Solutions (MNS), and System Equipment. The 8.4% educational applications, to Electronic Components and Others segment is EX-word XD-ST4800 Electronics electronic musical divided into two categories: Electronic Components, 81.6% and Others. In all of these categories, Casio’s instruments that even business activities range from development and This electronic dictionary for beginners can easily master. production to sales and service. Japanese high school students Casio has also introduced Mobile Network Solutions Timepieces boasts voice functionality and has many new industry-leading 24.1% 12.3% 50 content categories that are digital and useful for various subject areas. In electronic dictionaries.

11 of these categories, students Market the and Casio can listen to accurate pronunciation Electronics Segment Electronic Components and Others Segment by native speakers of English.

Consumer category Timepieces category Electronic Components Electronic calculators, electronic dictio- Digital watches, analog watches, category

naries, label printers, digital cameras, LCDs, BUMP processing consignments, EX-Z1000 digital camera Environment Global the electronic musical instruments TCP assembly and test consignments,

carrier tape and Casio This stylish digital camera delivers 10.1-megapixels in a slim, compact body. With a large 2.8-inch, super-bright, wide-screen LCD, Casio has revolutionized the use of the camera monitor by adding powerful new image display features and an easy-to-read

information layout. Employees and Casio COF

Digital cameras EN-100/EN-200 electronic calculators PX-110 electronic musical instrument These are the industry’s first hyaku masu This affordable Data Company Society and Casio Electronic dictionaries Solar-powered radio-controlled watches keisan (“one hundred calculations drill”) delivers true piano sound in a training calculators, developed with the compact, lightweight, and assistance of Professor Hideo Kageyama stylish design. From real Mobile Network Solutions System Equipment category of Ritsumeikan University. By repeating pianists to everyday amateurs, (MNS) category Electronic cash registers (including POS each of the basic arithmetic functions TFT LCD module Cellular phones, handy terminals system), office computers, page printers, one hundred times, children are able to anyone can take advantage of data projectors the PX-110’s superior sound Cellular phones strengthen their basic calculation ability, and develop active learning habits. With quality and natural keyboard Others category the same device, adults are able to keep touch to practice freely in the Main products: Factory automation, their minds sharp by exercising their privacy of their own location. Electronic cash molds, etc. gray matter with arithmetic drills. register

Digital Dictionaries Save Forest Resources

EnvironmentalIt would have taken 26,221 tons of paper to print paper versions of all the dictionaries contained in the Environmentalelectronic dictionaries sold by Casio from April 2005 to March 2006. At an average yield of 50 kilograms Highlight Page printer Chip mounter of paper per tree, this would be equal to 520,000 trees that did not have to be used to make Handy terminal paper dictionaries.

06 Casio Corporate Report 2006 Casio Corporate Report 2006 07 Timepieces Mobile Network Solutions

Solar Power and Radio Anytime, Anywhere Control—Always Evolving oprt Profile Corporate W41CA

Casio consistently leads the timepiece market in innovation. Casio products have The aim of Casio’s Mobile Network continued to evolve by incorporating new

Solutions strategy is to provide an Management CSR Highlights CSR technology into their construction, optimal usage environment for performance, features, design and business and personal applications, materials. Solar power is the driving force regardless of time or place. Casio is behind Casio’s timepieces that receive contributing to the development of a standard radio waves containing time data, G-SHOCK GW-810D truly mobile society with solutions resulting in watches that always display the focusing on compact cellular correct time and will keep running as long The G-SHOCK watch with the high-capacity phones with advanced functions, as there will be light. Solar-powered radio- Tough Solar power system receives accurate time and mobile terminals for a wide controlled timepieces represent a major data from any of five transmitters worldwide (two in range of business needs. leap forward in the perfection of the watch. Japan, and one each in the US, UK, and Germany). By combining a metal wristband with a

Never satisfied, Casio is determined to Market the and Casio The slim W41CA cellular phone is compatible with CDMA2000 1X drive the evolution of timepieces even compact, slim case made from metal materials, a EV-DO (high-speed data communication) technology and has a further forward with original technology and simple and refined, rounded form has been realized. Perfect for a casual look or even a suit built-in camera with 2.1 megapixels and a 2.6-inch wide LCD. It is unique ideas. ® and tie, this design has wearers arriving on time also compatible with Osaifu Keitai (“Mobile Wallet”) and Mobile and looking smart. Suica (electronic train pass) services, and can view Websites for PCs. h lblEnvironment Global the ai and Casio While offering superior water and shock resistance, this tough cellular phone is compatible with CDMA2000 1X EV-DO DT-5200 technology, enabling access to the latest communication services. Featuring a 2.1- Employees and Casio This mobile communication megapixel camera and a 50MB data terminal combines the features folder, it can also be used with external of a handy terminal with the OCEANUS OCW-M700TDJ memory. A mobile electronic dictionary is portability of a PDA. By LILANA LNA-100LJ also built into the phone. With a full metal case, the OCEANUS operating it in combination ® solar-powered, radio-controlled watch The LILANA is a solar-powered, radio-controlled watch with Excellent Store shop ai n oit opn Data Company Society and Casio offers both high functionality and a sporty for women with a full metal case and an elegant and G'zOne support solutions, the user can design that originated in Europe. Along simple look. In addition to a beautiful face with multiple W42CA perform everything from data with compatibility for standard radio waves hands, the watch features a leather wristband with an transmission to routine retail from the five transmitters worldwide, a slim elegant arabesque design on the inside, as well as a tasks with one device. The DT- module of the OCEANUS features multiple 15-facet cut bezel that shines differently depending on 5200 leverages information to hands for chronograph, tide graph, and the direction of the light. This sophisticated wristwatch many other measurements. increase total in-store incorporates all the fine details preferred by women. productivity and contributes to the standardization of business management.

Ultimate Solar-powered Timepieces Solar-powered, radio-controlled watches continue to work without resetting as long as a light source is available. Casio’s Tough Solar power system combines a high- Complying with the RoHS Directive Environmentalcapacity rechargeable battery and a small solar panel that generates electricity, Environmental The W42CA cellular phone not only complies with the RoHS Directive, the European regulation on Highlight even from fluorescent lights. The watches also take advantage of advanced Environmentalenvironmentally harmful substances, but also offers high durability for a long product life. Based on a unique Environmental energy-saving large-scale integration (LSI) chips, and a power-saving function that Highlight design concept, it delivers great shock resistance and an IPX7* grade waterproof designation, enabling turns off the display when left for a long time in the dark. This means that they can users to enjoy the latest technology in a tough, long-lasting body. operate for a long time in places without light. Casio has achieved the ultimate in a * IPX7 waterproof designation (formerly JIS-7 grade water resistant construction): The handset will continue to operate as a phone and resist maintenance-free watch that needs only natural energy to run. water intrusion when submerged at the bottom of a one-meter-deep tank of fresh, still water at a normal temperature for as long as 30 minutes.

08 Casio Corporate Report 2006 Casio Corporate Report 2006 09 System Equipment Electronic Components and Others

Creating Cutting-edge products are born of the latest advances in Reliability Delivers the Cutting Edge electronic components. Take for instance the LCD panel, an indispensable interface oprt Profile Corporate Efficiency between man and machine, where Casio specializes in small- and medium-sized LCDs for mobile devices, including TN, STN, and TFT panels. In Casio provides original solutions for all another advanced field, Casio kinds of businesses, integrating Micronics conducts bump Management CSR Highlights CSR hardware and software. Casio makes processing, as well as COF and page printers for all manner of color other packaging operations. documents, systems for enhancing the Casio's electronic components efficiency of administrative functions at are hard at work in applications financial institutions, cash registers for a across the industrial spectrum. wide variety of retail formats, and the TFT LCD Modules ADPS Personnel System for supporting company human resource strategies. Hyper Amorphous Silicon TFT (HAST) is Casio's original superfine LCD Casio has earned the praise and trust of technology. Able to produce vivid photographic images using amorphous silicon, HAST is based on COG technology and the development of low business professionals. resistance circuits and a high-aperture ratio for TFT arrays, multipin-slim Market the and Casio Page Printer N3500 LSI and other technologies. The clarity of the images it produces has made Casio's HAST technology a favorite for application in cellular phones, digital cameras and a wide variety of other mobile devices. This compact printer offers high-resolution printing using super-fine toner plus high-speed printing at 24 color pages or 30 monochrome pages in a minute. It provides h lblEnvironment Global the print security functions such as individual authenticated

printing. At the same time, a complete recovery system WLP refers to the creation of chip-sized and Casio for toner cartridges reduces environmental impact and COF packages right on a silicon wafer printing costs. through copper redistribution formation, COF refers to a film on which LSI chips for LCD electrode post formation and resin panels are mounted. The film is thinner and sealing. WLP is cost effective, and is the

more flexible than a conventional board, most advanced LSI miniaturization Employees and Casio making it possible to design larger LCD technology, making it possible to ADPS Strategic Integrated panels. Because the circuits are fixed in the produce ever-smaller devices with Personnel System 7 base film, COF is ideal for detailed processing. products such as cellular phones and As the trend towards ultra-fine pitch LSI grows, digital cameras. This comprehensive solution supports the so too does the demand for COF technology. streamlining of administrative work in human WLP (Wafer Level Package) resources departments. The system has been Data Company Society and Casio demonstrated to realize a task application rate of 95%, thanks to an expanded list of ready-to- TE-300 use applications to meet the diverse needs of enterprise users. In addition to basic human BUMP resources and payroll tasks, the system utilizes a newly added HR-Library programmed with The TE-300 is a cash register that fits well with the interior design of a BUMP is a technology that forms 13 types of personnel development systems, store by enabling the cash drawer to be placed in a separate location microelectrodes for LSI chips, which such as systems for internal transfer and from the slim and compact letter-sized main unit. It also features an anti- are essential for high-density announcement of open positions. microbial treated keypad for use in medical and restaurant settings. packaging. Using gold or solder, protruding electrodes are formed on an LSI wafer terminal. BUMP technology is essential for circuits in cellular phones and other advanced mobile devices.

Reducing Operating Costs through Efficient Recycling Systems Casio page printers realize low operating costs through efficient recovery and recycling, thanks to the Manufacturing Process Achieves Broad Reduction of Global Warming Impact Environmental Casio used to use a common cleaning agent called nitrogen trifluoride (NF3) in its manufacturing process for TFT Environmentaladoption of the “Return Toner Cartridge” program, a complete recovery system for reusing toner cartridges. EnvironmentalLCDs. Now, however, Casio has made a complete switchover to carbonyl difluoride (COF2 Highlight The printers comply with various environmental standards such as the RoHS Directive on environmentally Environmental ), becoming the first harmful substances, Eco Mark, the International Energy Star Program, and the “designated procurement Highlightcompany in the industry to do so. This change has dramatically reduced the global warming impact of the process to 0.04% of the previous level. Casio has also completely eliminated environmentally harmful substances from goods, etc.” stipulated under the Japanese Law on Promoting Green Purchasing. products as required by the RoHS Directive, now using, for instance, lead-free solder for BUMP.

10 Casio Corporate Report 2006 Casio Corporate Report 2006 11 Casio’s Unique Strengths

Casio’s Originality and Technology Bring Growth Business Strategy: Generate Both Profitability and Future Potential to Both Society and the Company Casio has positioned businesses that have maintained top market share in Expansive Businesses. Going forward, this approach to management and yield steady profits as Stable Businesses. It has positioned can secure both sustainable growth and profitability. Casio contributes to society by developing original products that never existed businesses that are expected to experience significant global market Casio is working to reduce the cost-sales ratio for product before, yet meet universal needs. This enables Casio to grow side-by-side with all growth in the future, while also seeing intensifying competition as a development across the entire group. Through efforts beginning in the large number of companies enter the market, as Expansive Businesses. design stage, the number of parts required to produce a product is being of its stakeholders. Casio is following a successful strategy of securing stable profits from reduced. Common product platforms have another benefit, too: the Stable Businesses while increasing both sales and operating income accelerated product development. Profile Corporate

Casio’s Concept Development and Core Technologies Give the World Innovative Products Fiscal 2006 figures (April 2005 - March 2006)

The driving force behind product planning at Casio is the company’s very small circuits with high performance and low power Expansive Businesses Cellular phones Digital cameras unwavering practice of initiating product development from scratch, consumption. Casio utilizes these digital circuits in the EXILIM Casio’s W41CA model never just copying the ideas of others. Casio recognizes the engine, an image processing module at the heart of its digital enjoyed the highest Management CSR Highlights CSR unlimited potential to develop products that have yet to be invented cameras. In another field, Casio began producing LCDs in 1978, and number sold of any phone but are needed by everyone. By identifying this latent demands and has become a master in the development of small and medium- Operating income margin: 5.7% across all of Japan’s 4.6 million meeting it with bold, new products, Casio not only helps to create sized panels. In addition to meeting the LCD needs of its own wireless providers for 13 cameras delivered new markets and cultural phenomena, but also fosters the products, Casio also provides LCDs as product components to other consecutive weeks.* worldwide. development of related industries. companies. Casio’s highly original product planning extends to many Sales: ´318.2 billion cutting-edge fields, including chip on film (COF), chip on glass (+6.7% year-on-year) The accumulation of technologies through daily R&D enables Casio (COG), and other high-density mounting technologies, as well as the TFT LCDs to realize outstanding original ideas. Casio makes the most of the water and shock resistance technologies that go into G-SHOCK 30% of the worldwide expertise in digital circuits it has developed since the early years to watches and other products. digital camera market. carry out its own LSI design. As a result, the company has invented (February 6, 2006 to May 7, 2006) (Source: Casio survey) ai n h Market the and Casio Stable Businesses Electronic dictionaries Timepieces 35 million units delivered worldwide.

Operating income margin: 11.8% Radio-controlled timepieces h lblEnvironment Global the 2.4 million units delivered

Sales: ´262.1 billion worldwide. and Casio (+0.5% year-on-year) Top global market share.

(Source: Casio survey) Water and shock resistance Top market share technologies in Japan (over 50%).* Electronic musical instruments, system Employees and Casio equipment, etc.

* Source: Survey by GfK Japan of the total sales results of over 3,000 consumer electronics dealers.

Net sales (unit: ´ million) Operating income margin (unit: %) Stock price (highest value, unit: ´)

580,309 559,006 8.0 2,500 600,000 523,528 2,190 7.0 7.4 ai n oit opn Data Company Society and Casio 500,000 440,567 2,000 6.0 1,663 5.3 400,000 4.1 1,500 1,283 300,000 4.0 1,000 773 The EXILIM engine, a 200,000 2.0 500 high-performance image 100,000 processing module Technology for radio- 0 0 0 controlled watches FY2003 FY2004 FY2005 FY2006 FY2003 FY2004 FY2005 FY2006 FY2003 FY2004 FY2005 FY2006 Dividends ´12.50 ´15.00 ´17.00 ´20.00 (yen per year)

Performance Target: Fiscal 2007 Performance Target: Fiscal 2007 Contributing to Society by ´630 billion 8.1% Using Capital Effectively Casio is contributing to the development Development through Sharp Focus on Operating of new technologies and markets by Sustainable Growth Income Margin Small and medium- investing the capital entrusted to it by size high-resolution Since net sales will continue to grow, For Casio, operating income margin shareholders in new business areas with TFT LCDs driven mostly by the Expansive is a vital management indicator. future growth potential. By returning the Chip on film technologies (COF) Businesses, Casio plans to reach Casio has set an operating income resulting profits to shareholders, Casio ¥630 billion in net sales in fiscal 2007. margin target of 8.1% in fiscal 2007, is also helping to create a more and is working to achieve 10%. affluent society.

12 Casio Corporate Report 2006 Casio Corporate Report 2006 13 Creating Energy from Natural Environmentally Friendly Fuels CSRCSRCSR HighlightsHighlightsHighlights Research & Development Next Generation Fuel Cell

Original Casio Technology— Development of the Micro mounting is based on Casio’s core

Casio is committed to frankly reflecting on itself as a public Profile Corporate Reformed Methanol Fuel Reformer Module competencies in water-resistance and durability. The company has also inte- Cell System entity, and is constantly re-envisioning its own future The most difficult phase of this grated technologies that optimize gas Casio is striving to realize a truly mobile development project was inventing the flow channels for the characteristics of contribution to society. society by developing micro fuel cells reformer (photo 1, right), which extracts the hydrogen produced by the micro that can produce electrical energy hydrogen from methanol. Casio applied reformer, and that improve MEA resis-

from methanol. its expertise in semiconductor tance to carbon monoxide. The result is Highlights CSR Global research in this field is processing—a long-time core 19.4 watts of rated output in a cell Casio values persistent questioning: “What is this for? Who highly competitive, and various competency—and combined it with the stack with a volume of only 22 milliliters methods have been proposed. Casio latest nano catalyst and chemical (65H x 18W x 19Dmm). The rated is it for? Why are we doing this? What needs improvement? has developed and recommended the reaction technologies to develop a power output per unit volume (power Reformed Methanol Fuel Cell System, a successful micro reformer module. density per unit volume) has reached And to what degree?” technology that combines the high Casio’s latest module, announced 882W/r,* the highest in the world

power output and environmental to the public in spring 2006, integrates among cells for use in mobile devices. Market the and Casio Management CSR friendliness required for the mobile three chemical reactors that produce *W/r: A unit for measuring electrical output (watts) devices of the future. hydrogen and render emissions per one liter of volume, used as an index for The questioning doesn’t stop there, however. Casio goes on The basic mechanism of this harmless and a heater/temperature miniaturization. sophisticated technology involves sensor on a single chip, which to ask: How original is this approach? Does the project have extracting hydrogen from methanol, a achieves startup in just six seconds. Practical Applications for Micro type of alcohol, and then converting it The module also boasts a thermally High-Output Fuel Cells a clear focus on sustainability? Has it really given customers into electricity. (Figure 1) insulated construction that keeps the The mechanism behind this outer surface of the device at only Casio has combined its micro reformer happiness and delight? Have we provided value that inspires technology has been known for many 40°C, despite internal heat of up to module and its newly developed years, but before Casio, most scientists 280°C. The module’s specifications fuelcell stack to create a compact, new trends in the culture? have never thought it to be viable. are fully compatible with mobile high-power fuel cell for mobile devices. device requirements. Casio’s fuel cell (including the metha- nol cartridge) (photo 2, right) can Environment Global the

Development of the power a notebook PC for about four and Casio Casio people ask themselves questions like these every day. Fuelcell Stack times longer than a conventional lithium-ion battery of the same volume. The following pages provide an overview of Casio’s CSR Casio’s fuelcell stack, which creates Casio is now electricity from hydrogen (photo 1, left), working on the has a laminated necessary peripheral initiatives. We invite you to explore this unique Casio Employees and Casio Oxygen structure of twenty parts and circuits, from air Hydrogen power-generating and plans to start process and take note of its outstanding results. Fuel Electricity cells consisting of delivering samples Methanol Generator Micro cell cartridge reformer stack separators and for performance membrane elec- evaluation by fiscal trode assemblies 2008. Casio is well on Photo 2 H2O and CO2 Left: Conventional (emissions) (MEA). its way to creating yet

Photo 1 battery Data Company Society and Casio The high- Left: Fuelcell stack another successful Right: Methanol cartridge Figure 1: Basic Mechanism density component Right: Micro reformer new business. (PET bottle)

“The Solution Was Right in Front After giving this issue some thought in 1998, I decided to look ■ Creating Energy from Natural Environmentally Friendly Fuels ...... P15 Key Personof Us”—Meeting Latent into up-and-coming battery technologies. Worldwide concern over ■ ...... the environment was reaching new heights at the time, and it was Applying the Mechanisms of Human Intelligence to Manufacturing Technologies P16, 17 Universal Needs clear to me that the time had come to question the common ■ Providing a Place for Young People to Gain Resiliency for a Meaningful Life ...... P18, 19 assumptions about the manufacture and sales of mobile electronic devices. I searched for ways to resolve the problem, going back to ■ Reducing Casio’s Greenhouse Gas Emissions ...... P20 the basic principles of physics and chemistry, and reconsidering all of them. ■ ...... Masaharu Shioya Complying with European Environmental Laws P21 Core Technologies R&D Division The technology that I finally decided to pursue was fuel cells. Casio Computer Co., Ltd. Tiny, easily disposable PET containers (photo 2, right) are filled with methanol or another fuel, and the fuel is used to generate electricity to run a mobile electronic device. The empty plastic containers can Batteries are a wonderful technology with a history of over 100 then be recycled along with other plastic materials. years, but they do have shortcomings. Many people find it annoying A necessity that people everywhere take for granted becomes a to separate spent household batteries from the rest of the trash, as universal need. Casio creates products that meet these needs and is required in many developed countries. It seems we have gotten make a real contribution to society. We will continue to develop used to this, however, so we keep using conventional batteries in technologies and deliver practical applications that help people our mobile electronic devices. achieve the goal of living in harmony with the environment.

14 Casio Corporate Report 2006 Casio Corporate Report 2006 15 Applying the Mechanisms of Human Intelligence CSR Highlights to Manufacturing Technologies Production Yamagata Casio Receives 2005 Nikkei “Monozukuri” Grand Prix

Yamagata Casio Co., Ltd., manufac- personnel share the production Metal mold design and data Trial molding breakdowns and damage have monozukuri manufacturing tures cellular phones, wristwatches schedule through PCs. No paper preparation Even for trial molding with a mold occurred in the past. Therefore, this technologies in Japan by connecting Profile Corporate such as the G-SHOCK series, and drawings are used anywhere in the After receiving 3D digital data for a already completed in this way, the mold diagnostic system has been the entire plant via a digital network digital cameras, as well as metal molds mold factory. cellular phone or a timepiece from initial 3D data plays an active role. The developed in order to prevent such and compiling various kinds of and molded plastic components for the ● A mold diagnostic system was Casio Product Design Department, the system determines the optimal molding occurrences. The system employs production data. The company is now products. It also develops and sells introduced in the molding process to data is used to design a metal mold for conditions after making close reference ultrasound sensors and analysis determined to keep moving forward, chip mounters for electronic prevent fatal flaws in the metal a plastic housing. Then the completed to the database of metal molds & equipment to check irregularities and striving to achieve the greatest

component mounting equipment. molds. This system measures metal mold design data is used to molding, together with the database of assign numerical rating per shot. There competitive edge in the world in Highlights CSR The Mold Making & Molding ultrasound emitted by the mold create a computer simulation of actual molding machine & resin, which have are always symptoms before a mold manufacturing technologies. Division, which makes metal molds and during each molding operation, resin flow inside the mold at the time of been built up over the past 15 years. breaks down or becomes damaged. produces molded plastic components assessing the condition of the mold trial production with an injection The optimal conditions are sought in The system identifies these symptoms at Yamagata Casio, received Japan’s using a point system. If the result is molding machine. This way, any the shortest possible time by sending and notifies an operator. Preventive 2005 Nikkei “Monozukuri” Grand Prix below 40 points, the molding problems can be discovered in the initial 3D design data to the said maintenance has eliminated major for a Digital Network System installed machine is shut down and the mold advance and resolved. system and running a simulation. The mold damage in recent years.

at its plastic molding and precise metal is repaired. This enables the impact resulting data is then also compiled, Since the monitoring in the molding Market the and Casio Management CSR molds factory. of a flawed mold to be minimized in a Metal mold production which helps reduce development lead factory produces an enormous amount production period that is short Using the completed 3D design data, time, improve quality, and raise of data, the difficulty lies in how to The reasons Yamagata Casio won the and intensive. the mold manufacturing process production yields in the future. convey it to operators and managers award are described below. Thanks to this Digital Network begins using equipment such as a when a problem occurs. Since one Cellular phone and digital camera System for a plastic molding and machining center and an electrical Mass production and monitoring machine produces 10,000 parts in one products are subject to rapid precise metal molds factory, Casio’s discharge machine. The 3D digital data Using the conditions just determined, day, the relevant information needs to replacement by new models. In order to cellular phones and wristwatches move is sent from CAD/CAM design tools to the mold moves on to the mass be conveyed immediately after a meet the short and intensive production from development, to production, to a machine tool connected via the production stage. The factory contains problem arises. A system has been set periods for these products and to market in a very short period of time. network, and the tool automatically about 40 injection molding machines, up in the molding factory to send a integrate the process from metal mold Japanese monozukuri manufactur- starts processing a mold; all the enabling a molded part to be produced real-time audio message to a creation to part molding, Yamagata ing technologies are facing stiff operator has to do is to confirm the every 10 seconds. All these machines transceiver of an operator, and an Casio has incorporated IT into the entire competition from overseas today. operation using a computer. Through are also connected to the network. email to the manager’s PC. Even if the production process. As a result, the Yamagata Casio is leading the way for this process, a mold is completed with Each time one part is finished, operator is performing other tasks in a Environment Global the

lead time for metal mold production has other Japanese manufacturers with this minimal errors or problems. process-result data are sent to the separate location of the factory, he/she and Casio been greatly reduced. This innovation system. This was another factor in the Also, tasks previously performed computer server. The computer will know right away if there is a was recognized for advancing judges’ decision to give the award to only by experts such as shaving and monitors all operations of each problem. Moreover, though machines monozukuri (“true craftsmanship”) in Yamagata Casio for implementing polishing in units of microns and other machine. If there are any irregularities, operate with no one around in the mold Japanese production technologies. this system. minute adjustments are all done an alarm goes off, and if there is a factory at night or on holidays, an alarm ● All 500 PCs and devices such as through the digital network. There are possibility of a defective product, the email is sent to the cellular phone of ai n Employees and Casio CAD/CAM systems and machine The Digital Network System computer screens in front of all the machine is shut down. The system the factory manager in the event of tools are connected to a network, for a Plastic Molding and operators in charge of shaving and prevents defective products from any trouble. and each person has a PC. Precise Metal Molds Factory polishing, which display the mold parts coming off the line. ● Computer intensively manages in 3D. The parts are coded by several However, since mold production Yamagata Casio has pursued the ongoing conditions for each metal Here is an explanation of how the colors, and each color shows each runs at a very high speed, some mold greatest competitive edge in Yamagata Casio mold along with drawings, and all system actually works. operator’s part in the processing. Through this system, it is now possible ai n oit opn Data Company Society and Casio The Digital Network System for a plastic molding for a person with a basic level of and precise metal molds factory experience to do the work of a skilled technician. The computer has enabled regular operators with a basic level of 3D-TIMON MOLDES MOLD24 AE system experience to do the work previously done only by experts looking at Taking on the Challenge of While developing this system, I focused my energies on how Molding Mold complicated drawings. This technician Advance study Flow analysis Molding CAM monitoring monitoring support system has greatly increased Key PersonCreating Monozukuri people on site can work smarter. It is natural for mold production to accuracy and improved the quality of Manufacturing Technologies for have paper drawings, and there is a unique culture in which high- level technicians understand and perform tasks that cannot be Unigraphics mold processing once done by hand. People on Site: How to Work Product design Molded part Tr ial production Mass shown explicitly on a drawing. To abolish that source, paper specifications Mold design Mold production production modeling evaluation Smarter, Not Harder drawings, I had difficulties in seeing processing know-how inherited Production materials for many years in a new light. Jig design Jig production Process Toshihiko Kuroda monitoring However, owing to the enthusiasm and teamwork of members Mold Making & Molding Division Mold process management system involved in mold production, I managed to accomplish my task. (paperless mold drawing) Yamagata Casio, Co., Ltd. Our customers have expressed astonishment and admiration at the sight of skilled technicians making molds only by computers Production study NAPO system SNAPO system In the Digital Network System recently developed by the Mold without any paper drawings in a factory. But I feel most rewarded by CAD-LINE SmartScorp Mold inspectionQuality control Making & Molding Division, I was in charge of integrating the gratitude of my colleagues—people actually working on site. processing information such as paper drawings and production Although Japanese manufacturing faces a very challenging instructions into 3D data to develop a completely paperless mold environment, I would like to pursue monozukuri and contribute to Measurement Automatic drawing system that could be accessed whenever needed. our business expansion. program measurement External view of Piece inside metal mold metal mold

16 Casio Corporate Report 2006 Casio Corporate Report 2006 17 Providing a Place for Young People to Gain CSR Highlights Resiliency for a Meaningful Life Social Contribution Factory Tours for 10,000 People

Casio launched its “Factory Tours for participants thought about the ideal interested schools in the Tokyo metro- Promoting ISO Activities aims to develop youth with hope and environment—to have a multiplier effect 10,000 People” program in February calculator, and came up with ideas for politan area. for Kids confidence for the future. This is done within society. Casio is actively Profile Corporate 2004. The goal of the program is to new models. They then prepared the Casio is now actively pursuing by learning about environmental man- promoting the program. Further, since provide a place for young people to plans, and gave product concept opportunities to advance the Factory Participants in Casio’s “Factory Tours agement and facilitating networking, the program is effective in human discover that family ties, the power of presentations to Casio employees Tours for 10,000 People program for 10,000 People” program can see which helps the children to acquire the development as well as environmental science, and pursuing one's dreams actually in charge of product planning. throughout the group. Casio is holding the steps the company is taking to resiliency they need to lead a meaning- protection, Casio will also make it a part are all important sources of strength for The students learned how hard it is to briefings on the program for group recycle waste and save energy in its ful life. of its lifetime learning initiative. In the

a meaningful life, and also to learn the think up a new idea and then try and companies under the theme of lifetime cafeterias. This gives young people a Casio recognizes the potential of future, Casio intends to deploy certified Highlights CSR importance of being considerate convince strangers of the merits of their learning for local communities, and is first-hand look at an operational site the Kids’ ISO 14000 Program—an employee instructors throughout Japan of others. product concepts. working to raise employee awareness that practices environmental effective, sustainable method for to extend the reach of the Kids’ ISO Through this experience, they got about lifetime learning. conservation. By making a comparison helping to preserve the global 14000 Program. a better idea of what it means to work, Through joint initiatives with several with the everyday environmental steps as well as the satisfaction and self- companies, Casio is also pursuing involving electricity, water and trash realization that work can bring. This plans to promote career skills training that children take at home or Otoguro Cherry Trees new development has enabled Casio for local youth. school, the tours are helping to Market the and Casio Management CSR to further improve the content of the Japanese youth today are faced promote awareness of global original Factory Tours for 10,000 with a very different environment, given environmental concerns. There are currently 30 Otoguro cherry trees growing at the Kofu Casio site. These People program. Casio is also participating in the cherry trees produce beautiful blossoms every spring, giving wonder and joy to all Casio was thus able to provide Kid’s ISO 14000 Program developed by that see them. educational opportunities in fiscal 2006 the non-profit, non-governmental The Otoguro cherry grows along the banks of the Fuefuki River, which flows by bringing together the corporate, International Art and Technology through Chuo-shi, Yamanashi, where Kofu Casio located. Spring blossoms and new Factory tour government, and scholastic realms. Cooperation Organization (ArTech). leaves appear at the same time on this variety of cherry. With the unusually large The Factory Tours for 10,000 People Casio employees with instructor white blossom of the Otoguro cherry, these trees are very special to the local Young people discover the value of program has earned strong approval certification in the program are taking people. In 1932 however, the banks of the river were reconstructed as a flood family ties by coming to see the place for Casio from both government and an active leadership role in prevention measure, and the original trees were removed. Now, the people in this where their parents work. They also local communities. environmental activities for children, community have decided that they want to bring back their beloved Otoguro cherry. learn that there are close ties between In fiscal 2006, Kofu Casio Co., Ltd., based on ISO principles. Since fiscal Efforts have been made to propagate and replant the species, using the few h lblEnvironment Global the households, schools, the local commu- invited six schools, or 278 students and Briefing at Casio group company 2005, these activities have included remaining descendants of the original trees. nity, and companies. They learn about teachers, to participate in factory tours. introducing various elementary schools Kofu Casio has also stepped in to help preserve the Otoguro cherry tree. and Casio product construction by having the rare At the Eco-products 2005 exhibition the declining birthrate, aging popula- to the Kids' ISO 14000 Program as part In spring 2004, the company planted 15 chance to see how advanced products tion, nuclear family lifestyle, and of the Factory Tours for 10,000 Otoguro cherries on its premises to help are made, and actually trying simple advance of information technology. People program. product assembly themselves. Through Today’s changing society requires The Kids’ ISO 14000 Program is an preserve these historically popular trees a close-up look at the history of Casio more youth development initiatives to environmental education program and to beautify the plant. In spring products, they also learn the history of secure a positive future. As a good carried out in Japan and around the 2005, 15 more trees were planted. Employees and Casio scientific and technological develop- corporate citizen, Casio sees youth world through UN agencies and the These trees have become a symbol of ment behind the various devices they development as a major component of International Organization for the close ties between Casio and the see every day. All this gives the young its social contribution, and is working to Standardization (ISO). Based on the local community. Casio is committed to visitors a glimpse into the wonders of develop new initiatives in this area. concept of children themselves discov- providing more community support, science. Inspiring presentations by Classroom activity The “resiliency for a meaningful life” ering things that lead to more through tree planting and other Casio employees help the children to advocated by Casio is based on three environmental awareness, the program “greening” activities. Otoguro cherry blossoms discover that they can realize their held at the Tokyo International Exhibi- fundamental concepts: awareness (a Data Company Society and Casio dreams through hard work and perse- tion Center (Tokyo Big Sight) in proper understanding of today’s verance. Finally, by witnessing Casio December 2005, the Casio booth society); integrity (sincere action based environmental activities, they learn the offered a calculator assembly experi- on that understanding); and responsi- importance of protecting the global ence for elementary school students bility (properly taking that action). environment. Casio’s dream—the and presented information on the Several education institutions in the Providing a Place for Young When children visit our plant and have a different experience inspiration behind this factory tour Factory Tours for 10,000 People pro- Tokyo metropolitan area have Key PersonPeople to Gain Resiliency for a from the classroom, they discover and appreciate things such as program—is to provide opportunities gram. During the three days of the expressed interest in participating in Meaningful Life through family ties, the wonder of science, the power of pursuing one’s for young people to make the discover- event, 124 children participated in this the program. Casio hopes that this Discovery and Wonder dreams, consideration for others, and the importance of protecting ies that will help them become the activity, and Casio was able to expand program, by providing new sources of the global environment. The factory tours are filled with carefully leaders of the future. its community outreach. resiliency to youth, will contribute to the planned activities in order to leave a lasting impression on the students. Fiscal 2006, the second year of the In fiscal 2007, Casio will further development and sustainability of the Tomoaki Furuya program, brought advances to the expand the scope of these activities to society of the future. The company is These factory tours would not be possible without the support of General Affairs Department many people. Despite their busy schedules, all of our employees program. The tours became a part of working on plans to keep expanding Kofu Casio, Co., Ltd. the career education promotion pro- the program. have worked hard to help out. In the process, the deeper ties have gram for elementary and junior high been fostered among our staff. We have all gained a sense of school students sponsored by the While CSR management has gained prominence recently, we fulfillment and wonder by watching the children learn. actually had an opportunity to think about corporate social Japanese government and the integrat- We are now in the third year of this program, and we have contribution several years ago within our company. received inquiries from various customers. Even activities stemming ed study periods of school curriculums. We were discussing ways to help children become the leaders from a small project such as this can grow into something that tells The program was entitled, “Make a of tomorrow by using the operations of the plant, and to strengthen the world what Casio is all about. Proposal to Casio: Your Own Idea for a ties with the local community. These desires led to the creation of We hope to keep providing these tours to better contribute New Calculator,” since calculators are the “Factory Tours for 10,000 People” program. to society. one of Casio’s main products. The Kofu Casio

18 Casio Corporate Report 2006 Casio Corporate Report 2006 19 CSR Highlights Reducing Casio’s Greenhouse Gas Emissions Complying with European Environmental Laws Environment Initiatives to Help Prevent Global Warming: European Regulation Initiatives Working to Achieve Fiscal 2011 Targets

Casio has put in place the following Reformed Methanol Fuel Cell System, (3) Introducing supplementary mea- Complying with the European challenging in that interpretations of the ● Presence of batteries and their Casio Environmental Action Plans to which has less impact on the environ- sures based on the Kyoto WEEE Directive WEEE Directive, language, and culture location during use Profile Corporate counter global warming, each of which ment than batteries (see page 15). Mechanisms (Clean Development vary a great deal across the EU. Casio ● Presence of LCD panels that exceed has targets to be achieved by fiscal Mechanism [CDM], emission credit Casio has started to set up a recovery is expending enormous resources— 100 cm2, and their location during use 2011: (1) developing eco-products; Business and Production transactions, Certification of Green and recycling system that meets EU including manpower, time, and ● Other information required by (2) saving energy and reducing green- Site Initiatives Power, Joint Implementation [JI]). standards in order to comply with the communication effort—to develop recycling providers house gas emissions at business and (4) Establishing a strategy for invest- European WEEE Directive for proper consistent policies to guide decision-

production sites; and (3) lowering Casio’s total CO2 equivalent emissions ment in energy-saving facilities. disposal of electrical and electronic making on this issue at Casio Europe. Complying with the European Highlights CSR emissions in the distribution stage (see worldwide in fiscal 2006 were 132,000 devices. Casio Europe GmbH, located In July 2006, Casio completed the RoHS Directive pages 32 and 33). tons. In fiscal 2006, Casio joined in the Distribution-Stage Initiatives in Germany, has been the host for the necessary product information Japanese government’s new “Team company’s WEEE promotion project disclosure to recycling providers. The In January 2006, Casio factories began Minus 6%” campaign and also adopt- Casio continues to close down, com- since 2004. information provided includes product shipping products that comply with the ed the government-encouraged “Cool bine, and relocate its distribution In fiscal 2006, Casio completed the weights, as well as the presence and all stipulations of the RoHS Directive. Products Biz” dress code (casual summer centers in Japan. As for overseas following legal requirements: location of specified substances—and Casio Europe has constructed a

clothes to reduce office cooling in distribution, part of the cargo being ● Printing or labeling required marks is intended to ensure proper recycling management system for RoHS- Market the and Casio Management CSR summer). Cool Biz reduced 190,000 sent to Europe from China directly by on products of products at the end of the life cycle. compliant products in cooperation with kWh of electrical consumption at Casio air has now been changed to ocean ● Registering as a manufacturer in EU the headquarters of Casio Computer Business and headquarters, compared to fiscal 2005. cargo to Dubai, followed by air cargo member states which have establish- Co., Ltd. Inventory progress manage- productionDistribution At the Hachioji R&D Center, in addition to Europe. Cargo to the United States, ed new WEEE Directive regulations Example recycling system ment for products that do not conform sites to implementing Cool Biz, the company which was previously sent by sea and ● Contracting with recycling providers in Germany to the RoHS Directive was carried out, improved the energy-saving manage- rail, is now being shipped only by sea. in principal countries and the switchover was completed by ment system, reducing both electricity These steps have all helped reduce Companies must conform to the Consumers (end users) July 1, 2006, the date the directive CO2 Reduction Targets in Three Areas 2 and natural gas consumption as Casio’s CO emissions. individual regulations of each of the 25 Products at the end of the life cycletook effect. Product Initiatives described in the box below. EU member states. This is made more Casio will continue to prepare The Hachioji R&D Center is now As described above, Casio is Recovery point (collection location designated by localdeclarations authorities) in conformity with the Casio has been a leader in innovation examining technologies for reducing actively engaged in efforts to help Communication RoHS Directive for each product or since its founding, thanks to the core the use of sulfur hexafluoride (SF6) gas, prevent global warming—in the three Reference: Casio Europe Website product line. competence the company has devel- after the successful replacement of distinct areas of products, business/ http://www.casio-europe.com/de/ Joint management organization (EAR) Environment Global the 3 unternehmen/umwelt/weee/ Recovery and oped in compact, lightweight, slim, and NF cleaning agent at the Kochi Casio production sites, and distribution. Future Compliance with and Casio recycling fee energy-efficient products. Today, Casio manufacturing site. Recovery Casio Europe Harmful Substance is working to equip all of its radio- Casio has already achieved CO2 and SF6 emissions, and emissions per unit, Regulations controlled watches with a solar power the fiscal 2011 energy-saving at sites in Japan and overseas SF6 emissions (CO2 equivalent emissions) SF6 emissions in Japan system that is able to obtain power targets (fiscal 1991 basis) set by (FY2001 basis) (%) (CO2 equivalent emissions) Looking to the future, Casio plans to CO2 emissions per unit of production Recovery and recycling provider Overseas CO2 emissions even from weak light sources such as Japan’s four electrical and at overseas sites (FY2005 basis) (%) take steps in accordance with the ai n Employees and Casio fluorescent lights. The 10.0-megapixel electronic industry associations. CO2 emissions per unit of actual production CO2 emissions in Japan development of the REACH Regulation at sites in Japan (FY2004 basis) (%) 300% Casio EX-Z1000 digital camera now Further steps are required, 220 241 and EuP Directive. Casio Europe is 206 271 Recycling has a still-picture continuous viewing however, in order to achieve (Thousands of tons-CO2) exchanging information with the 100 time of about 13 hours on just a single Casio’s own, more challenging 107 105 Environment Center at Casio Computer 90 100 100 100 battery charge, even with its super targets. The company is formulat- 95 89 100% Information details disclosed to Co., Ltd., to determine what measures 80 86 100 81 82 94 bright 2.8-inch wide LCD. The ing the following measures in 70 78 product recyclers Casio needs to take. 75% company’s W43CA fiscal 2007 to step up its efforts 60 ai n oit opn Data Company Society and Casio offers continuous talk time of about to achieve its fiscal 2011 targets. 50 50% ● Product net weight 220 minutes. (1) Setting targets and managing 40 ● Presence of harmful substances that 30 Casio is committed to continuing to measures by site. 24 24 must be removed, and location 19 Website page (image) Greenhouse gas emissions 20 16 15 improve the energy-efficiency of its (2) Introducing IT mechanisms to 19 inside end-life-cycle product 10 14 15 17 products. The company is also pushing provide monthly updates on 77 7 0 forward with R&D to commercialize its environmental performance. FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2011 targets compliance with the WEEE and RoHS Directives. Through the Completed Inspection and Onsite course of my work, I have become aware that regulatory thinking Hachioji Laboratory. After discussions with the building planners, we Key PersonMeasures for the WEEE and and culture are different in the EU and Japan. For example, Working to Reduce CO2 adopted the latest in energy-saving technologies, and achieved 20% RoHS Directives directives and regulations in the EU are often created before all Key PersonEmissions at the Hachioji R&D savings in energy consumption compared to the combined energy ambiguities are cleared up, based on the assumption that there will Center usage of the former Tokyo Technical Center and Hachioji Laboratory. The be further technological progress. Even when the regulations came energy-saving technologies include a weather-optimized thermal storage into effect, the final specifications and decision-making standards system that takes into account weather forecasts to save energy and still seemed vague to me. uses vertical thermal storage tanks to save on power needed to circulate Katsuyuki Tada The most difficult thing about this process was that, after cold water. The building also boasts a natural ventilation system, Shigeo Kojima Hachioji Office gathering as much information as possible in Europe, and then completely automatic air-conditioning, lighting, ventilation, and blinds, a Casio Europe GmbH Casio Business Service free cooling system, and special insulation methods for windows and the (Pictured at right, with Andrés García, making comprehensive determinations from the standpoint of risk Co., Ltd. Environmental Manager) management, I had to decide on the policies myself. Fortunately, (Pictured at far right, together building as a whole. with team members) In fiscal 2006, in addition to our Cool Biz efforts, we also saved the implementation went smoothly thanks to the complete energy by adding manual intermediate modes to the nine automatic I serve as a coordinator between our Tokyo headquarters and the cooperation of the people in the relevant departments in Tokyo. I am serving on the energy-saving study team at the Hachioji R&D operation modes of the heating and cooling system. As a result, we local sites for the WEEE and RoHS Directive compliance project. Given European consumers’ high level of concern for the Center. I was also a project team member in the planning phase for a saved 220,000 KWh of electricity and 31,000 m3 of natural gas, Stationed in Europe, my job is to build recovery and recycling environment, an active commitment to legal compliance will new, energy-efficient building that has now been completed. The compared to fiscal 2005. The energy-saving study team continues to systems for Casio products in the EU member states, and to plan continue to be important as we work to ensure that our customers building accommodates both the Tokyo Technical Center and the promote more energy saving measures. and coordinate information gathering for smooth and efficient can keep enjoying Casio products.

20 Casio Corporate Report 2006 Casio Corporate Report 2006 21 CSR Management

Corporate Creed and Charter of Creativity Corporate Governance The Charter of Creativity for Casio has been established based on Casio’s corporate creed of “Creativity Casio is constantly striving to strengthen its corporate governance, focusing on the priority issues of and Contribution.” The creed and charter provide the foundation for the execution of Casio’s CSR- quick decision making, proper execution of operations, and improved transparency of driven management. business management.

The calligraphy in the photo stakeholders, and to achieve uncompromisingly fair, important affairs relating to the execution of business here—“Creativity and transparent corporate governance. Corporate Governance System operations. This mechanism enables smooth implementation Profile Corporate Contribution” in Japanese— Given this situation, Casio is encouraging all of its of company-wide adjustments and measures. was done by Casio’s founder, employees to reconsider the significance of Creativity and the late Tadao Kashio. Contribution, and to maintain their awareness of the corporate Casio recognizes that quick decision making, proper execu- Board of Auditors Casio got its start with the creed. This will enable Casio to sustain its creative corporate tion of operations, and a robust management oversight invention of a small fully culture, while continuing to contribute to societies around function that increases the transparency of business manage- The board of auditors consists of three auditors, two of them electric calculator, which was the world. ment are extremely important factors in achieving business external. In accordance with audit policies and responsibili- unique in an era when In light of these trends, on June 1, 2003—the anniversary goals and continuing to raise corporate value. This recogni- ties approved by the board of auditors, auditors attend Highlights CSR mechanical calculators were of the company’s founding—the Charter of Creativity for tion guides the company’s ongoing efforts to improve board of directors’ meetings and meetings of the operating the norm. Ever since, the Casio was established to better articulate the meaning of the corporate governance. officers. In addition, they perform careful audits by gathering company has been true to its corporate creed today for all employees. In December of the In June 1999, Casio Computer Co., Ltd., made a change information and receiving reports from directors and others, commitment to contribute to same year, the Casio Common Commitment was also in its board of directors, reducing its size by half, from 24 to and by reviewing resolution documents relating to important society by offering the kind of Corporate creed instituted to provide a more specific description of the 12 directors. At the same time, the company adopted a decisions. S Management CSR original, useful products that employee conduct that is expected and valued at Casio. system of operating officers to clearly separate the manage- only Casio can. All Casio employees carry a card printed with the Charter ment oversight and execution functions. In December 2004, a Internal Audit Department The people of Casio prioritize the values of Creativity and of Creativity and Common Commitment. Top management CSR Committee was also established to drive the company’s Contribution in the performance of their work. These values has also issued messages describing the kind of company efforts to fulfill its corporate social responsibility. The internal audit department performs audits of Casio are deeply ingrained in the company and its people: they are that Casio ought to be, and published them on the company’s With the adoption of this system, Casio Computer Co., operations to ensure they are in conformity with laws and passed down from generation to generation of employees intranet. These steps are enabling Casio to secure a group- Ltd., has built a corporate governance system that consists of regulations as well as internal standards such as the

almost like a genetic heritage. wide understanding of its commitment to CSR. the operating officer system, internal audit system, and CSR organization control standard. It also conducts evaluations Market the and Casio Today’s shorter product development cycles and Committee, in addition to the board of directors and the and offers recommendations for improvement. increasingly complex specifications, however, have made the board of auditors. The objective, role and membership of company’s operations more and more specialized. Along with each of these bodies are described below. CSR Committee this trend, each person’s job requires increasingly specific knowledge and skills. As Casio grows and its operations Board of Directors The CSR Committee is comprised of the directors and stretch around the globe, the “distance” between top auditors, and the company president serves as chairman. management and frontline employees is growing wider. The board of directors is tasked with making prompt, The committee discusses matters related to CSR, including Environment Global the

At the same time, society now expects companies to reasonable management decisions. Board meetings are the determination of CSR priority issues, initiatives, policies, and Casio strengthen their CSR management with an awareness of all Charter of Creativity (card) attended by directors and auditors, who discuss and make and systems for execution. The decisions made by the CSR decisions on important business issues. Committee for each CSR issue are then transformed into specific activities by each department concerned. The CSR Board of Operating Officers Committee is currently addressing the issues of compliance, risk management, and protection of personal information. Meetings of the board of operating officers are attended by Employees and Casio Charter of Creativity for Casio and Casio Common Commitment operating officers, directors and auditors. They deliberate on - A Promise from Everyone Working at Casio- First Chapter We will value creativity, and ensure that our products meet universal needs*. [Casio Common Commitment] Corporate governance system diagram ai n oit opn Data Company Society and Casio 1. We will strive to “ensure that our products meet universal needs” and this includes not only manufactured goods, but also services and support, and everything else that we do. Audit 2. We will be idealistic in all of our work. Election and Board of Auditors discharge 3. We will carry our work through to completion, with a strong determination to take on every challenge that comes Auditors Audit staff our way. Audit Second Chapter We will strive to be of service to society, providing customers with delight, happiness, and pleasure. [Casio Common Commitment] Appointment, 1. We will provide people with “limitless inspiration.” Oversight Board of operating Election and Board of Directors dismissal, officers Oversight Business divisions 2. We will share a “life of spiritual and material prosperity” with people. discharge President and CEO Directors and Operating officers Group companies 3. We will foster relationships of “respect and trust.” oversight CSR Committee Third Chapter We will back up our words and actions with trustworthiness and integrity, and work as professionals. Subcommittees Internal audit [Casio Common Commitment] 1. We will take complete responsibility for all of our words and actions in accordance with all laws and regulations. Internal Audit Department 2. We will each take responsibility for our results and success, according to our individual role. Accounting audit Election and 3. We will strive daily to improve everything we do. discharge Accounting audit

General Meeting of Shareholders Accounting auditor *To create innovative products that everyone needs but no other company has ever produced. At Casio, this is the mission not only of product development, but of every other part of the business.

22 Casio Corporate Report 2006 Casio Corporate Report 2006 23 CSR Management

Compliance and Risk Management Casio is executing CSR-driven management that emphasizes the complete integration of everyday business and CSR initiatives. This is the most direct, pragmatic route to realizing the corporate creed of “Creativity and Contribution.”

take responsibility for educating their subordinates and Personal information protection system Executing CSR-driven Management colleagues about them. The previously established Casio Whistleblower Hotline Profile Corporate Code of Conduct has also been revised, and serves as the Casio Computer Co., Ltd., has appointed the Executive Vice basis for the good conduct of all employees. President to the position of Chief Privacy Officer (CPO) and As president Kazuo Kashio said in his message at the front of In order to ensure that all Casio employees are well In April 2006, after Japan’s Whistleblower Protection Act took personal information manager and constructed a system for this report, Casio has been: (1) striving to realize its corporate informed about and adhere to all compliance requirements, effect, Casio established a Whistleblower Hotline and ap- personal information protection under his direction. With the creed of “Creativity and Contribution” since the very begin- Casio has launched CASIO Style, an intranet site for its pointed an employee in charge of the whistleblower system at support of top management, all employees and officers are ning; (2) working towards improvement of its corporate value employees. The site includes messages from top manage- each of the group companies. being urged to cooperate with measures to protect personal by reinforcing its system of internal controls; (3) creating new ment on the type of company Casio should strive The hotline has been created to respond to opinions, information. In March 2005, the company set up the Personal Highlights CSR value to help resolve various issues facing the global commu- to be. questions and queries not only from current and retired full- Information Protection Office, which inherited the functions of nity; (4) implementing environmental innovations that In addition, subcommittees have been set up under the time Casio employees, but also from contract, part-time, and the Protection of Personal Data Project. Three positions were integrate resource conservation and energy saving features; CSR Committee to deal with important laws that affect the dispatched workers, as well as subcontractors, and anyone created in this office to handle customer service, information and (5) increasing transparency by creating interactive entire company such as the laws on the protection of person- else doing work for Casio in any capacity. The hotline enables systems, and employee education, respectively. In addition, communication. al information and export management. This is part of a Casio to discover problems in the early stages, so that two leaders were appointed in each department to promote S Management CSR In order to realize these commitments, Casio is promoting compliance system that also includes the group companies. measures can be taken to avoid incidents, with the goal of efforts relating to personal information protection at the various policies such as adherence to the Charter of Creativ- Meanwhile, Casio has established basic policies for risk practicing fair and honest management. The confidential department level. ity for Casio and the Casio Common Commitment, effective management that include group-wide compliance, based on hotline has offices in and outside the company, and people compliance and risk management, environmental protection the corporate creed and the Charter of Creativity for Casio. with important information to report are able to call a special Privacy Mark certification activities that include management of harmful chemical sub- The company is working to create a risk management system number, send an email, fax, or letter, or directly visit the stances, and interactive communication with stakeholders. that complies with Japan’s Company Law, which took effect offices in person. Accordingly, this hotline serves as a neutral As part of Casio’s drive to strengthen its

In order to integrate everyday business with CSR in May 2006, and the revised Securities Exchange Law, and fair intermediary between the company and people with system for safe and proper handling of Market the and Casio activities, Casio set up a CSR Committee in 2004, consisting which was passed in June 2006 and will take effect in the information to report. The information provided to the hotline personal data, Casio Computer Co., Ltd., has of the company directors and auditors. This committee near future. is subject to factual confirmation by the Whistleblower Hotline worked hard to qualify for the Privacy Mark* discusses and mandates specific policies and strategies for Office, which is headed by an officer of Casio Computer Co., certification. As a result of these efforts, the company re- each CSR issue. Ltd. The office checks whether the reported activity may be ceived the Privacy Mark certification on December 27, 2005. Recommendation from Japan Fair Trade Commission Casio has also been working urgently to reinforce its illegal, dishonest, or unethical. If any problems are dis- In fiscal 2005, all personal data held by the company was Following a Violation of the Subcontract Act system of internal controls, responding to legislation in the covered, an investigation team is immediately formed to inventoried, rated, and subjected to a risk analysis, meeting wake of the recent series of corporate scandals both in and check and verify the activity, and then appropriate measures the requirements of the JIS Q 15001 compliance program Environment Global the On September 22, 2005, Casio Computer Co., Ltd., received a

outside Japan. The company is committed to meeting stake- are taken. relating to personal information protection. Based on the and Casio recommendation from the Fair Trade Commission for a violation of the holder demands for fair and transparent corporate As the Whistleblower Hotline Office controls all the results of this analysis, the company established various rules Act against Delay in Payment of Subcontract Proceeds, etc. to management. information obtained from the group companies in Japan and took additional steps. These steps promoted as a PDCA Subcontractors (the Subcontract Act) concerning a reduction in Each management department at Casio has long been regarding these activities, the privacy of those making calls cycle (plan, do, check, act) management system, including amounts paid to subcontractors. independently engaged in preventive measures for anticipat- and those that are the subject of the calls is thoroughly Casio Computer Co., Ltd., and certain suppliers had agreed in education for all employees and officers, tighter control of ed risks and in ensuring compliance with all relevant laws, protected. Casio has also established Basic Regulations for information system access and computer logs, reexamination advance that, when the company ordered work exceeding a certain Employees and Casio social norms, and corporate ethics. Now however, Casio is normal value within a given period of time, it would pay an agreed the Whistleblower Hotline, which prohibit the dismissal of an of agreements on the handling of personal data signed with also pursuing a group-wide approach to strengthening reduced amount, less than the actual value of the order. Despite the employee for making a hotline report. They also prohibit its business partners, and implementation of internal auditing, compliance and risk management efforts. mutual consent of the parties, however, the Fair Trade Commission demoting, or cutting the pay of such an employee, or order- correction, and other improvements. After completing these determined that part of this operation constituted a violation of the ing the employee to stay at home, discriminating against the efforts, Casio Computer Co., Ltd., filed an application for Compliance and Risk Management Subcontract Act. person through pay, or forcing the employee to retire. The certification in March 2005. After a documentary audit and Casio Computer Co., Ltd., regarded this recommendation with the protection of hotline callers is carefully secured. onsite inspection, the company was granted Privacy Mark utmost seriousness, and set up a Compliance Committee on the certification in December of the same year. ai n oit opn Data Company Society and Casio Subcontract Act that includes group companies. The company also re- Personal Information Protection Accompanying the Privacy Mark certification, Casio will Along with the establishment of the Charter of Creativity for inspected all of its subcontractor transactions, educated the persons continue to take further measures for the protection of person- Casio and the Casio Common Commitment in 2003, printed involved, revised its procedures, and made other efforts to improve al information in and outside the company. By strengthening cards featuring both texts were issued to each employee. Casio’s compliance system. The company has taken thorough action to its information security and personal information protection, Every employee has signed one and carries it as a reminder. ensure legal compliance and prevent any reoccurrence of such Philosophy on personal information security Casio strives to maintain the confidence of its customers. Every year, company officers and department heads sign an incident. a pledge that they will observe these company policies and Casio is aware of its important social responsibility to keep Personal information protection system secure information that it collects from customers and other *Privacy Mark: stakeholders in relation to its business activities. Casio strives CSR Committee A program where the Risk management system Japan Information to maintain the highest level of information security. In antici- Processing Develop- Officer in charge CPO* and personal pation of full implementation of Japan’s Act on the Protection ment Corporation, a of audits information manager CSR Committee of Personal Information in April 2005, Casio launched its public-service founda- Officer in charge of audits tion, evaluates the Protection of Personal Data Project in June 2004, to ensure Personal Information Protection Office adequacy of corporate Chief Risk Officer that all employees of the group are able to manage personal protective measures Risk Management Committee Office information properly. At this time, Casio began formulating related to the handling and implementing specific policies and procedures. Then, in Person Person Person of personal data. responsible for responsible for responsible Companies that are Risk Management Committee February 2005, Casio established its Policies on Personal customer serviceinformation systems for education Risk managing departments found to have adequate Information Protection to specify the methods of properly Person responsible for protective measures in securing personal information. Casio has established all the Contact for matters departmental personal place are certified and Person responsible for Person responsible for Person responsible for Subcommittees relating to personal information management permitted to display the departmental risk management departmental risk management departmental risk management rules needed to ensure full protection of personal information, information Privacy Mark. CASIO Style Person in charge of Person in charge of Person in charge of Person in charge of and is ensuring that all its officers and employees have a *CPO=(Chief Privacy Officer) departmental personal departmental risk management departmental risk management departmental risk management thorough understanding of them. information management

24 Casio Corporate Report 2006 Casio Corporate Report 2006 25 Casio and the Market

Responsibilities Customer Satisfaction and to Customers Quality Assurance Casio is striving to improve the quality of its products and services, in order to increase the satisfaction and confidence of customers. Easy to see ● Example of an Electronic from every angle started its “Delight Our Quality at Casio Activities of Casio Customer Support Back- Casio’s Commitment to Quality Customers” program to Profile Corporate Dictionary that Reflects Super High light Resolution LCD ensure that all Center Customer Opinions Functions, employees of the performance, Super High Resolution LCD group would become design, price Communication is an important way for Casio to create long- Customer Comments Quality Concept with backlight thoroughly familiar with lasting relationships of trust with customers. Casio’s Customer Two pronunciation Casio maintains a strong quality assurance system, based Casio’s philosophy Environmental Reliability, Support Center is the contact point for customers to submit ★ formats conservation, durability Make the text display easier to read! It talks! on its belief in “Quality First.” This system requires all em- concerning products recycling their opinions, requests and questions. The Customer Sup- Casio Highlights CSR ★Provide audio pronunciation ployees to make quality their first concern in every task they and services. port Center operates under the CS Control Group with the samples in other languages! Audio output quality Native-speakerfunction in perform, enabling the company to offer products and ser- The program is goal of improving customer satisfaction (CS) across the pronunciation ★Make the dictionary expandable! six languages vices that please and impress customers. The company’s continuing to raise development, manufacturing, sales, and service The EX-VOICE System commitment to quality supports its corporate growth and employee awareness. departments. The center Safety, legal provides clear audio makes social contributions possible, while at the same time Serviceability compliance strives to continually deliver Can be expanded winning customers’ trust and giving them peace of mind. high-quality service to gradually S Management CSR customers by conducting Contents Plus regular skill checks on all Quality Management Policies staff and ensuring they Data Text card Quality Assurance System observe the following four ● Contents Plus allows you to To build a good corporate image, we offer products and points when receiving calls add the content you need services that please and impress our customers, gain from customers: Customer Support Center their strong trust, and ensure their peace of mind. Market the and Casio ● Prompt, accurate and ● We respond to our customers’ requests and inquiries with Casio has constructed a quality assurance system and polite response Customer Service Improvement sincerity and speed, and reflect their important comments constantly strives to improve quality across the group. ● Acceptance of customer’s remarks with sincerity and on our products and services. The Casio Promotion Committee for Groupwide Quality accurate understanding of the facts ● In all our business processes, we base our actions on the Enhancement is Casio’s highest quality assurance authority. It ● Efforts to tie the viewpoint of customers to a solution Principle of the Five “Gens”—in Japanese, genba (on meets semiannually by convening the heads from the Elec- ● Reflecting customer opinions in product and The Service Department, which is responsible for product site), genbutsu (actual goods), genjitsu (reality), genri tronics business segment (consumer, timepiece and system

service improvements. repairs, strives to satisfy customers by providing service (theory) and gensoku (rule)—and adhere to the basics of equipment categories), the Electronic Components segment Environment Global the In this way, Casio is striving to ensure the satisfaction and based on the following three points: prompt response, business operations. and the communications business, as well as quality happiness of customers. The operating hours of the Customer dependable technology, and reasonable fees that satisfy ● We capture and analyze quality assurance activities managers of manufacturing and service affiliate companies. and Casio Support Center are also being steadily expanded to include customers. quantitatively, using reliable data, and use the analysis to Decisions are made at these meetings on company policies weekends and holidays, in an effort to offer more customer make continuous improvements. We also maintain a and important issues relating to quality. The resolutions are convenience. Finally, the Customer Support Center also Prompt response quality information system that enables the sharing of the then communicated to individual departments and reflected operates an Overseas Customer Support Center. The quality information and prevention of problems before in specific quality assurance activities within the departments. Overseas Customer Support Center cooperates with the Casio is taking steps to improve its operations by focusing on they occur, and prevents recurrence of quality problems. In 2004, the CS Control Group was created within the Employees and Casio customer support centers at Casio’s overseas sales part procurement, repair work, and repair technology, so as Sales Department of the Electronics Equipment business to companies. The Overseas to shorten the repair time and return repaired products to improve consumer services. Since then, the CS Control Customer Support Center is Types of inquiries customers as quickly as possible. In Japan, Casio aims to be To offer goods and services that please and impress Group has been conducting activities to ensure quality in carrying out various activities (Fiscal 2006) the electronics manufacturer with the shortest repair time. In customers, it is necessary to create products that can win product development in cooperation with the Engineering to foster good relationships Other 8.6% overseas markets too, Casio is striving to shorten repair times their solid approval in all areas. In addition to function, design Department (within the Product Development HQ) in an effort of trust with overseas users to match Japan levels. Moreover, Casio has repair locations Requests for and price, these areas include reliability, durability, service- to further improve quality and services. of Casio products as well. catalogues and for system equipment across Japan, enabling prompt dis- ability, environmental soundness, and compliance with Moreover, persons responsible for quality assurance have Data Company Society and Casio In the future, Casio will user manuals patch of repair technicians to client sites. 5.5% relevant laws and regulations. been appointed in the development departments to look after continue to increase the level For Casio, all of these factors that affect the evaluation of product specifications, software, mounting, outer packaging, of its high-quality customer Dependable technology Post-purchase its products are elements of quality. Group-wide efforts have circuits, devices, and manufacturing, respectively, in each service, and use worldwide Pre-purchase inquiries been made to improve quality, based on Casio’s Quality businesses. In addition, the quality managers who oversee customer opinions to further inquiries 71.2% Casio is working to improve its repair technology in order to 14.7% Concept and Quality Management Policies. In 1996, Casio the entire operations ensure product quality in each business. improve its business. maintain customer confidence and realize the kind of repair quality that customers expect. In addition, Casio is striving to improve product quality by sending feedback from the repair sites to the Product Development HQ and the Manufacturing Department. Teachers Meeting (Product Feedback from Educators)

Customer Satisfaction Surveys Reasonable fees that satisfy customers On December 19 and 20, 2005, Casio invited 11 mathematics teachers This gathering provided from Australia, the United States, South Africa, Iran, Turkey, South Korea, important material for future Casio works hard to reduce any unnecessary burden on Malaysia, Singapore, and the Philippines to the Teachers Meeting at the product development. It customers by controlling repair costs. This is done through Hamura Research and Development Center. The event was held in order was also a fantastic, special Casio periodically conducts customer satisfaction surveys to improvement of repair methods and setting repair fees that to get product feedback from overseas educators. opportunity for the members identify customer opinions on a product-by-product basis. customers can accept. Repair method improvements are also The main purpose of the meeting was to hear opinions on the of Casio’s development The surveys relate not just to product function, important because they help to reduce discarding of parts functions of Casio’s current models. The teachers team to meet and talk with submitted product evaluation reports to Casio in advance outlining over teachers in person. performance, and design, but also to ease of use and during repair work. In fiscal 2006, Casio’s new and improved 100 points for improvement. During the discussion, Casio responded to customer service. The results are then reflected in the system of digital camera repair operations—the first of its kind these suggestions, and there was a lively exchange of opinions among creation of future products. in Japan—was also implemented at overseas repair locations. the teachers. Teachers Meeting

26 Casio Corporate Report 2006 Casio Corporate Report 2006 27 Casio and the Market

Responsibilities Responsibilities Building Strong Partnerships Optimum Shareholder Return and to Shareholders to Suppliers Casio is building strong partnerships with suppliers in and outside Japan that share and Investors Information Disclosure Casio’s procurement policies. Casio is striving to improve business performance and strengthen its financial position in order to increase returns to shareholders.

Basic Thoughts behind the Approach Fulfilling Social Responsibilities Basic Policies on Profit Distribution Communication with Shareholders Profile Corporate to Procurement Policies Together with Suppliers to Shareholders and Investors

Casio aims to fulfill its social responsibilities, including Casio has set forth the Social Responsibility Guidelines, Casio considers maintenance and expansion of profit distrib- Casio is actively engaged in a variety of investor-relations compliance with relevant laws and social norms, and including compliance with laws and social norms, and ution to shareholders to be an important management goal. initiatives, true to the company’s policy of disclosing corpo- protection of the environment, through fair and equitable environmental protection, in order to fulfill its social Accordingly, it is striving to improve its business performance rate information appropriately and in a timely fashion, as transactions throughout the supply chain by strengthening responsibilities together with its suppliers through and strengthen its financial position. Casio distributes returns outlined in the Casio Code of Conduct. Highlights CSR partnerships with suppliers. procurement activities. to shareholders by comprehensively considering the compa- ny’s profit level, financial situation and dividend payout ratio, based on a policy of maintaining stable dividends. Internal IR events Procurement Policies Social Responsibility Guidelines reserves are also being appropriated for the R&D and invest- After the release of financial results each quarter, Casio holds Guidelines covering the following areas have been ment necessary for stable corporate growth. These steps financial results briefings. As the main speaker at these 1. Fair and equitable transactions established in order to fulfill social responsibilities allow Casio to improve its business results and strengthen its events, the company president or director in charge of IR Casio carries out fair and equitable transactions by through procurement. management structure. explains the financial results and future outlook to institutional Management CSR providing equal opportunities to all suppliers (and investors and securities analysts. On occasion, the company candidates) in and outside Japan in accordance with its also meets individually with internally established procedures. 11. Compliance with laws and social norms Operating Results and Dividends in Japanese or overseas institu- tional investors and securities 12. Environmental protection Fiscal 2006

2. Compliance with laws and social norms analysts. Factory tours and Market the and Casio Casio’s procurement activities comply with all relevant small meetings for specific 13. Proper information security laws, social norms, standards, and treaties worldwide, In fiscal 2006, Casio moved forward aggressively with expan- business segments are sion of its strategic businesses, including timepieces, digital provided as well. including the protection of human rights, prohibition of 14. Respect for intellectual property child labor, forced labor and discrimination. Therefore, cameras, electronic dictionaries, cellular phones and TFT LCDs. At the same time, the company strove to improve Casio also requires its suppliers to observe the same legal 15. Sound and stable corporate management Financial results briefing and social requirements. management efficiency by raising the profit margin and

improving capital efficiency. As a result, record-high net sales Environment Global the 16. Superior technological development abilities 3. Environmental protection and net income figures were achieved for the third consecu- A wide array of IR tools and Casio Casio helps to protect the global environment through 17. Right price and quality tive year: ¥580.3 billion and ¥23.7 billion, respectively (on a environmentally friendly procurement, which is based on consolidated basis). Dividends were raised by ¥3 per share IR tools used by Casio include quarterly financial results, the Casio Environment Charter and Fundamental 18. Stable supply from ¥17 in the previous fiscal year to ¥20, marking the third annual reports, and business reports. The same information is Environmental Policies, in cooperation with suppliers. consecutive year of growing dividends. also provided on the Casio Website. 19. Electronic transaction systems 4. Strengthening partnerships with suppliers Employees and Casio Casio builds relationships of trust with its suppliers through 10. Prohibition of personal-interest relationship Inclusion in SRI Index and Funds reciprocal efforts, such as merging and complementing of mutual technological development abilities, supply chain cooperation, compliance with laws and social norms, and protection of the global environment, which will benefit Sharing the Guidelines Socially responsible investment (SRI) represents a commit- both parties. By holding of Procurement Policy Presentation Meetings and ment to evaluate and select corporations for investment on individual consultations, Casio is conveying its policies to the basis of their performance on the triple bottom line. In Data Company Society and Casio 5. Policies on supplier selection and transaction suppliers in and outside Japan. The Guidelines have been addition to conventional investment criteria such as financial Investor Relations Website continuation posted on Casio’s Website and also distributed in printed analysis, companies are also evaluated based on their CSR Casio Annual Report Casio initiates and continues transactions with suppliers form to the people concerned. performance including legal compliance, employment and based on comprehensive evaluation criteria, which include human rights issues, social contribution, and environmental IR Website http://world.casio.com/ir/ compliance with laws and social norms, environmental protection. SRI funds have been gaining popularity in recent protection, proper information security, respect for intellec- Managing the Guidelines years, and Casio is included in the following index and funds. tual property, sound and stable corporate management, Casio works together with superior technological development ability, right price and suppliers to resolve such Communication with Individual Investors quality, stable supply capabilities, and electronic transac- issues as may be identi- Casio in SRI Index and Funds Along with fuller information disclosure on its Website, Casio tion systems. fied in the regular surveys, (as of June 1, 2006) is actively providing more information to individual investors. which are conducted by These efforts include not just improvement of general share- SRI Index Inclusion 6. Right price and quality means of answering pre- holder meeting content, but also holding management Casio endeavors to secure right price and quality in order scribed questionnaires. ● Morningstar SRI Index presentations for shareholders after the meeting. to provide its customers with a stable supply of optimal (May 1, 2006) products, to ensure that Casio gains the full confidence of SRI Fund Inclusion customers around the world. Procurement Policy Presentation Meeting Inquiries to the IR Department ● STB Asset Management Co. Ltd. In cooperation with the General Affairs Department, the IR ● STB SRI Japan Open “Good Company” 7. Prohibition of personal-interest relationships Reporting on the Guidelines Department coordinates Casio’s investor relation activities, Casio does not allow any employee to have personal- Casio releases regular reports on its fulfillment of the Social ● Sumitomo Asset Management Co. Ltd. and responds to all manner of inquiries from Japanese and interest relationships with suppliers. Responsibility Guidelines. ● Eco-Balance “Umi to Sora” (Sea and Sky) overseas shareholders and investors.

28 Casio Corporate Report 2006 Casio Corporate Report 2006 29 Casio and the Global Environment

Environmental Management Vision Casio Environment Charter and Casio Environmental Management Activities in Fiscal 2006 and Future Efforts Fundamental Environmental Policies Consistent with its corporate creed of “Creativity and Contribution,” Casio sets specific guidelines and targets in line with the Casio Environment Charter and Casio Fundamental Environmental Policies in order to ensure proactive execution of environmental management. oprt Profile Corporate Corporate Creed Creativity and Contribution Casio Environment Charter

To conserve the global environment, Casio recognizes the importance of its corporate Highlights CSR environmental responsibility across the operations of its entire group. Casio establishes basic policies and specific measures for contributing to world prosperity and human Yukio Kashio happiness from the broad perspective of international society, and endeavors to Executive Vice President and Representative Director Chairman, Casio Environmental Conservation Committee implement them. S Management CSR Casio approaches its environmental management activities Our hazardous substance phase-out target was to Fundamental Environmental Policies as a top priority issue for the realization of its corporate creed, detoxify PCB-containing equipment currently in storage by 1. Casio Group members shall comply with all environmental laws, agreements, and “Creativity and Contribution.” In January 1993, we established the end of fiscal 2006. We completed the application for standards in Japan and overseas. the Casio Environment Charter and Casio Fundamental contracting the treatment of PCBs stored at the Hachioji R&D 2. The Group shall establish voluntary “Casio Environmental Conservation Rules”* based Environmental Policies to serve as a framework for executing Center and the Hamura R&D Center. PCBs stored at Kofu on consideration for the environment at all product stages of development, design, our environmental management activities. We then estab- Casio are waiting for the treatment facility in Hokkaido to start manufacture, distribution, repair services, and recovery/disposal. All Casio business Market the and Casio lished the Casio Voluntary Plan for the Environment, an receiving deliveries. environmental management guideline that spells out how we divisions shall assume responsibility for their implementation, additionally auditing the will conduct specific activities. In February 2006, we updated Future initiatives degree of compliance and making continual improvements. the plan for the 10th time. 3. From the standpoint of corporate social responsibility, and as good corporate citizens, Within this plan, we have established an Environmental Future product initiatives all Casio Group members shall apprehend the importance of global environmental Action Plan (EAP), the “Clean & Green 21” Initiative, which Now that we are compliant with the WEEE and RoHS conservation and try to heighten their awareness. h lblEnvironment Global the clearly sets specific numerical targets and deadlines for Directives in Europe, we will steadily take steps to respond to 4. These policies shall apply to all Casio Group business divisions in Japan and overseas. execution. The EAP covers the entire group, and serves as the phase-outs of hazardous substances that are expected to ai and Casio our medium-term action plan. The company is moving for- be legislated in North America, China, Japan, and South *The Casio Environmental Conservation Rules are specific action programs for ward toward the achievement of its goals. In February 2006, Korea. We will also monitor legal and regulatory trends, such environmental conservation, set forth in the “Casio Voluntary Plan for we updated the EAP for the 9th time. as the EuP Directive* and REACH Regulation* in Europe, and the Environment (CVPE).” pursue product compliance. Activities and results Future business site initiatives Starting this fiscal year, we established new action plans for Employees and Casio Product-related activities and results energy conservation, resource-saving (i.e. the reduction of Our product initiatives in fiscal 2006 included adding 114 new water consumption at production sites), and waste models to the Casio Green Products lineup; the Casio Green reduction at business sites outside Japan. This is a major Products (C.G.P.) 70 Activity raised the percentage of green step in the worldwide expansion of our environmental products in total sales to 68%. We will continue to work at conservation programs. Casio Voluntary Plan for the Environment Casio Environmental eco-product design with a view to achieving our target during In Japan, we introduced a new action plan at electronic (Casio Environmental Conservation Rules) fiscal 2007, one year ahead of schedule. component business sites to combat global warming by (PLAN) Conservation Committee Data Company Society and Casio In addition, we reduced by 22.6% the total packaging reducing emissions of greenhouse gases other than CO2, PDCA materials used per unit of sales by optimizing our packaging targeting a reduction of total emissions in 2010 to at or below capacity. the 2000 emissions level. Through this and other steps, we We also pursued the target of completely phasing out are working to realize the reduction targets set under the Environmental Action Plan, PDCA at specified hazardous substances by the end of 2005 in Kyoto Protocol. We are also planning to use other new “Clean & Green 21” Initiative each site response to the European RoHS Directive, and completed the measures, such as CDM, emissions trading, and other Kyoto (PLAN) compliance requirements with the cooperation of relevant mechanisms, toward the fulfillment of our new target of a 20% departments and business partners. reduction in actual CO2 emissions by fiscal 2011. Business site-related activities and results Pursuing CSR management Our business site initiatives included energy conservation Casio is making CSR a core driver of its management efforts. The target we pursued was to reduce CO2 emissions practices. In one new initiative, we are recasting our eco- Improve and strengthen Environmental activities of per unit of actual production* by 10% in fiscal 2006 com- product designs as CSR designs by taking universal design environmental activities Global implementing organizations pared to the fiscal 2004 level. However, CO2 emissions concepts into account and rethinking our green procurement (ACT) conservation (DO) increased 5% due to a unit price decline in our TFT- of materials as CSR procurement by verifying the status of our LCD business. business partners’ fulfillment of CSR. We are preparing the Our waste reduction targets were to achieve zero relevant guidelines and manuals and are moving ahead emissions and to reduce the generation of waste per unit of quickly to implement these new practices. Environmental performance production by 30% from the fiscal 2001 level. Casio Micronics See the following pages for details. assessment Co., Ltd., (Ome) and Casio Soft Co., Ltd., achieved zero * See page 32 for explanation of terms. (CHECK) emissions status, bringing the number of sites to do so up to 13. The generation of waste per unit of production remained equal to the fiscal 2001 level.

30 Casio Corporate Report 2006 Casio Corporate Report 2006 31 Casio and the Global Environment

* Rate of achievement: Ratio of fiscal 2006 performance against the target fiscal year. Environmental Action Plan, “Clean & Green 21” Business-site related targets ✩✩✩:100% of target achieved. ✩✩:80% or higher achieved. ✩:Below 80% achieved. Item FY2006 targets FY2006 performance Rate of achievementFY2007 targets Page number Initiative Fiscal 2006 Performance and Future Targets Reduce CO2 emissions per unit of actual production by CO2 emissions rose 5% due to Sites in Japan: Reduce CO2 emissions Casio establishes targets that take account of environmental changes in and outside Japan and Energy 10% by FY2006 and by 20% increased production and a unit ✩ per unit of actual production by 20% conservation by FY2011 compared to price decline in TFT-LCDs by FY2011 compared to FY2004. continually strives to achieve these goals. FY2004. targets 20, 50 of Sites outside Japan: Reduce CO2 Web emissions per unit of production by * Rate of achievement: Ratio of fiscal 2006 performance against the target fiscal year. –– –– –– version Product-related targets ✩✩✩:100% of target achieved. ✩✩:80% or higher achieved. ✩:Below 80% achieved. 10% by FY2011 compared to FY2005. Profile Corporate

Item FY2006 targets FY2006 performance Rate of achievement FY2007 targets Page number Reduction targets for Reduce total emissions of greenhouse greenhouse gases gases other than CO2 (CO2 equivalent) Raise green product –– –– –– by 2010 to at or below the 2000 Green product sales grew other than CO 6 sales to 70% of total ✩✩ Continuing 2 level.* to 68%. 32 Reduce water usage per unit Water usage increased by about Development sales by FY2008. Production sites in Japan*1: Reduce of production at production 34% over the FY2001 level due to water usage per unit of actual targets for eco- Reduce the total usage sites in Japan*1 by 5% by greater water usage accompanying ✩ production by 10% by FY2009 of packaging materials 55 of FY2006 compared to increased production at Casio 51 of products A 22.6% reduction was compared to FY2001. Highlights CSR per unit of sales by 30% ✩ Continuing FY2001. Micronics.*5 Web achieved. Web by FY2008 compared version Resource-saving Production sites outside Japan*2: version to FY2001. Reduce water usage per unit of targets –– –– –– production by 5% by FY2009 Discontinue the use of lead, cadmi- compared to FY2005. Discontinue the use of um, mercury, and hexavalent RoHS Directive-specified Discontinued the use of chromium by June 2006 in compli- Sites in Japan: Reduce paper usage toxic substances, lead, cadmium, mercury, ance with hazardous substance –– –– ––per unit of actual production –– by 30% by

Hazardous Management CSR namely, lead (lead 52 of FY2009 compared to FY2004 and hexavalent chromium regulations other than those for . substance contained in purchased ✩✩✩ in products bound for products bound for Europe. Web products), cadmium, Casio Micronics (Ome) and Casio phase-out targets Europe. (PBB and PBDE *Hazardous substances regulations version Achieve zero emissions*3 at mercury, and hexavalent Soft newly achieved zero emissions outside Europe: Hazardous substance targeted sites in Japan by ✩✩ Removed from FY2007 targets. chromium, by the end were already phased out.) status, bringing the total number of regulations equivalent to Europe’s RoHS FY2006. of FY2006. Directive in North America, China, Japan, sites to do so to 13.*7 and other locations. Reduce the generation of Production sites in Japan*1: Reduce 53 of Waste reduction The generation of waste remained waste per unit of production the generation of waste per unit of Web Market the and Casio equal to the FY2001 level despite ✩ targets by 30% by FY2006 actual production by 40% by FY2009 Future initiatives increased production. version Share of green products in total sales compared to FY2001. compared to FY2001. Production sites outside Japan*2: Casio set and worked toward the goal of raising Reduce the generation of waste per –– –– –– unit of production by 10% by FY2009 sales of green products to 70% of total sales by 80 compared to FY2005. fiscal 2008 (C.G.P. 70) in order to spur 68.0 70 70

Reservations have been made with Detoxify PCB-containing equipment Environment Global the aggressive development and evaluation of eco- 59.0 60 a waste treatment contractor for the currently in storage as the Japan products. In fiscal 2006, green product sales rose treatment of PCBs stored at the Environmental Safety Corporation 50 Hazardous Detoxify PCB-containing 44.4 Hamura R&D Center and the opens facilities in different areas. 52 of and Casio to 68% of total sales. Casio will continue to equipment currently in Hachioji R&D Center. The PCBs are ✩ ● By FY2008 all PCBs stored at the develop eco-products that satisfy Casio’s Green 40 35.3 substance phase- storage by the end of Web still on the waiting list for treatment. Hamura R&D Center and the FY2006. version Product Certification Criteria, with a view toward 30 out targets The PCBs stored at Kofu Casio are Hachioji R&D Center. in total sales (%) ● achieving the goal set for fiscal 2008 one year 20 awaiting the opening of a treatment By FY2008 PCBs stored at Kofu

Share of green products Share of green facility in Hokkaido in October 2007. Casio. ahead of schedule. 10 1 Achieve a 100% response

Achieve a 100% response rate Employees and Casio 0 rate (percent of parts FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 (percent of parts covered by supplier covered by supplier surveys) Achieved a 100% response rate. ✩✩✩ target Green surveys) for green parts at sites in for green parts at sites in Japan in FY2007. procurement Japan in FY2006. Achieve a 100% response implementation Achieve a 100% response rate rate (percent of parts Explanation of terms (percent of parts covered by supplier targets covered by supplier surveys) Achieved a 99.2% response rate. ✩✩ surveys) for green parts at sites ■ for green parts at sites 45 of C.G.P. 70 Activity Abbreviation of “Casio Green Products 70.” An effort to raise the percentage of green products (products that meet Casio’s Green Product outside Japan in FY2007. outside Japan in FY2006. Web

Certification Criteria) in total sales to 70% Data Company Society and Casio version ■EuP Directive A proposed directive on environmentally friendly design of energy-using products in the European Union (EU). Raise the green purchasing ratio to 60% of total purchases ■PBB Polybrominated biphenyl. One of the substances prohibited under the RoHS Directive. Green purchasing of stationery products, office ■PBDE Polybrominated diphenyl ether. One of the substances prohibited under the RoHS Directive. supplies, and OA equipment at ■ implementation sites in Japan by the end of Achieved 58.7%. ✩✩ Continuing PRTR Pollutant Release and Transfer Register system. FY2008 (based on the number The system was institutionalized in Japan in 1999 with the Law concerning Reporting, etc. of Releases to the Environment of Specific targets of purchases). Chemical Substances and Promoting Improvements in Their Management (PRTR Law). *At sites that have adopted the *CATS e-P system.*4 ■REACH Regulation A new EU regulation for chemical substances that controls the Registration, Evaluation and Authorization of CHemicals under a single, unified system. Reduce CO2 emissions per unit of sales by 50% by the end of ■RoHS Directive Restriction of the use of certain Hazardous Substances in Electrical and Electronic Equipment. FY2008 compared to FY2001 Achieved a 40% reduction. ✩✩ Continuing A regulation that came into effect in the EU on July 1, 2006, prohibiting the use of six specified hazardous substances in electrical and Targets against by improving the efficiency of distribution in Japan. 54 of electronic equipment. distribution- ■ Web WEEE Directive A directive that came into effect in the EU on August 13, 2005, mandating the recycling of Waste Electrical and Electronic Equipment. related global Reduce CO2 emissions per ■Unit of sales A basic unit of measure calculated by dividing a figure by Casio’s consolidated sales. unit of sales by 5% by version warming FY2008 compared to FY2005 Achieved a 3% reduction. ✩ Continuing ■Unit of production A basic unit of measure calculated by dividing a figure by total production at specified production sites. by improving the efficiency of ■ Unit of actual productionA basic unit of measure calculated by dividing a figure by production, where the value for production in the denominator (i.e. nominal distribution outside Japan. production) is replaced with the value for actual production as corrected using the Bank of Japan’s Domestic Corporate Goods Price Index *1: Production sites in Japan: Kofu Casio (head office and Ichinomiya branch), Kochi Casio, Casio Micronics (in Ome and Yamanashi), Casio Electronic Manufacturing, and Yamagata Casio. (electrical equipment). *2: Production sites outside Japan: Casio Korea Co., Ltd., Casio Taiwan Co., Ltd., Casio Computer (Hong Kong) Ltd., Casio Electronic Technology (Zhongshan) Co., Ltd., Casio Electronics (Shenzhen) Co., The following table shows the yearly ratios in comparison with the base year of fiscal 1991 for the Bank of Ltd., Pt. Asahi Electronics Indonesia, and Casio (Thailand) Co., Ltd. *3: Zero emissions: (Final disposal / Waste generated)

32 Casio Corporate Report 2006 Casio Corporate Report 2006 33 Casio and the Global Environment

From Eco-product Design to CSR Design LCA Evaluation Report Casio is committed to broadening its design considerations, moving from eco-product designs to designs Casio evaluated its Super Slim Projector using life cycle assessment (LCA). that are environmentally friendly and offer a high-quality experience for the user, in line with the universal design guidelines established by the company.

Broader Design Goals: Moving from From the customer’s perspective LCA Evaluation of the Super Slim Projector XJ-S30/S35, a Casio Green Product Profile Corporate Eco-product Designs to CSR Designs Obtaining evaluations from customers who actually use the products and reflecting that feedback in product develop- Casio introduced eco-product design in 1993. Since 2001, ment are essential parts of HCD. LCA evaluation case study Total for all stages it has been developing ISO Type II environmental labelling Casio has made it a top priority to develop products from Global warming impact (CO2 equivalent) 201.53 kg products based on Casio’s green product development the customer’s perspective, and requires its development As a mobile projector, the XJ-S30/S35 has a super slim guidelines. staff themselves to listen to customers’ opinions. Casio is construction that makes it easy to carry around. It has a high- Acidification impact (SO2 equivalent) 0.28 kg Highlights CSR Since 2005, Casio’s Design Center, with the help of the dedicated to improving usability by applying evaluations pressure mercury lamp with 2000 ANSI lumens. The lamp Energy use 4,313.63 MJ Environment Center, has been working on the concept of from user tests and feedback given to the Customer itself consumes 200 W of electricity, resulting in the use stage developing a new product lineup featuring eco-product Support Center. of the LCA data accounting for a large 82% of the overall XJ-S30's effect on global warming (CO2 equivalent) designs. The idea is to systematize and combine eco-product In fiscal 2006, Casio conducted user tests on the usability environmental impact. (Unit: kg) 250.0 designs with universal design as a new CSR design initiative. and design features of products by enlisting the cooperation Accordingly, the product offers an Eco mode, which

Casio has already worked out Universal Design Policies, and of a wide spectrum of customers, including high school boasts lower energy consumption than the Normal mode. By 201.53 Management CSR 200.0 is performing assessments of electronic dictionaries and students, housewives, and the elderly. Casio made specific switching from Normal mode to Eco mode, the projector is 164.60 electronic musical instruments with a view to improving the improvements to the quality of put into an energy conservation mode where the lamp is less 150.0 quality of the user experience. the user experience, in terms bright and the high static pressure Sirocco fan runs quieter. of both hardware and soft- The Eco mode is effective for use in quiet surroundings and 100.0 CSR Design Guidelines ware, by analyzing the test when one wishes to adjust the brightness to create a better

results across the lateral balance with the room lighting. 50.0 Market the and Casio 28.87 Guidelines for Green Universal Design Guidelines organization made up of the 5.33 0.57 2.16 Product Development + (currently being prepared) specialized departments for Future challenges 0.0 Casio’s own UD activity mark Raw material Product Distribution Use Disposition Total planning, development, and productionProduction design. Ways to lower the value for the use stage need to be studied Casio Universal Design Policies in order to improve the projector’s LCA data. Future chal-

Future initiatives lenges are to make further headway in reducing energy use Environment Global the by the light source, improving product parts, and reducing 1. Easily understood display and expression.

Casio has already worked out the Casio Universal Design overall weight. and Casio 2. Simple, understandable operability. Policies during the current fiscal year in order to share policy *ECO-LEAF Environmental Label: on universal design activities with all group companies. 3. Reduce physical and mental stress. An environmental labelling originating in Japan that Casio is determined 4. Provide safety and reliability. displays quantitative LCA-derived environmental to pursue high-quality aspects covering the entire lifecycle of a product 5. Pursue product value. experience for the user. from the extraction of resources through production, ai n Employees and Casio Going forward, Casio distribution, use, disposal, and recycling. will continue develop- ing its HCD guidelines Universal Design Activities and create products based on them in even Super Slim Projector XJ-S30/S35 more business areas. A user test

Green product technology points Data Company Society and Casio Delivering a high-quality user experience 1. Energy conservation: Energy consumption can be Strategically focused on its core competence in compact, reduced by switching the projector from Normal mode lightweight, slim, energy efficient technologies, Casio to Eco mode. develops products with as little environmental impact as 2. Resource-saving: possible. Moreover, in addition to reducing product size while Basic cycle of the universal design (UD) process increasing performance, Casio also strives to achieve a high- Compared to the quality experience for the user so that people who are predecessor XJ-360, unfamiliar with electronic devices and those who are less Establish UD goals Product characteristics a. The body of this Packaging for XJ-S30/S35 (left) and their confident about IT can use Casio’s products comfortably. product has been predecessor (XJ-360) Looking ahead at the future social environment, Casio is 1. Projection system: DLP ® ●Reduced by 14% in volume committed to providing products and services that are truly 2. Brightness: 2000 ●Reduced by 40% in thickness Correctly understand beneficial to customer’s lives. usage conditions ANSI lumens b.The packaging (all made from paper except the soft Casio has set the main objective for its universal design To customers 3. Display resolution case) has been activities: improve the quality of the user experience. Casio True: XGA (1,024 x 768) ●Reduced by 24% in volume works to develop products using human-centered design Understand and Improving the arrange user needs Compressed: Maximum SXGA (1,280 x 1,024) ●Reduced by 17% in weight (HCD) in conformity with ISO 13407* processes. Casio Final specifications quality of 4. Slim construction: 43 mm thick (32 mm at 3. Recyclability: The housing is made of a magnesium applies these concepts not only to the products themselves, experience for thinnest point) alloy and is easily recycled. but also to improve packaging and user manuals. the user 5. USB compatible, the XJ-S35 enables PC-free 4. Elimination of hazardous substances: The product Evaluation by Lateral organization presentations does not contain substances prohibited by the *ISO 13407: An international standard that provides human-centered prepares proposed specialists/users solutions design guidelines that should be incorporated when DLP, the DLP logo and the DLP medallion are trademarks of Texas RoHS Directive. Instruments. developing interactive systems using computers.

34 Casio Corporate Report 2006 Casio Corporate Report 2006 35 Casio and the Global Environment

Material Balance of Business Activities Communication and Disclosure about Below is a report of the lifecycle inputs and outputs associated with Casio’s business activities. the Environment Casio communicates actively with stakeholders to help build a sustainable society. In Japan, Casio does business in the Electronic Components segment and Electronics segment. Outside Japan, Casio's business is in the Electronics segment only.

Casio’s Philosophy and Policy on CommunicationCSR Report 2005 Reading Session Profile Corporate and Disclosure about the Environment Held Material balance of business activities in fiscal 2006 Casio is making an effort to help build a sustainable society In August 2005, Casio held the CSR Report 2005 Reading by engaging in dialogue with various stakeholders. The Session under the second Teacher’s Business Training Inputs Outputs company is also aggressively undertaking environmental Program.

conservation activities aimed at protecting biodiversity, Normally, there are few opportunities for companies and Highlights CSR Energy 59,480 (crude oil equivalent) kL Greenhouse gases R&D/design including humankind, and pursuing preservation of the schools to get together and talk. Accordingly, while partici- Electricity 185.56 million kWh global environment, including natural resources and pants examined some actual Casio Green Products for CO2 emissions 113,482 tons-CO2 the atmosphere. themselves, Casio personnel gave a presentation on their Fuel 12,172 (crude oil equivalent) kL manufacturing process in order to provide a slightly deeper SF6 emissions 18,714 tons-CO2 Water resources 3.315 million m3 understanding of Casio’s environmental activities. The Air pollutants*2 teacher’s remarks included interest in the Kids’ ISO 14000 Participation in Exhibitions Management CSR Recycled industrial water 208,000 m3 program and environmental education as well as the fact NOx 138 tons (Eco-products 2005) that their social responsibility as educators is being SF6 (sulfur hexafluoride) 2 tons questioned nowadays. Procurement Paper usage 782 tons SOx 37 tons Casio has participated in the Eco-products Exhibition every Casio plans to continue to year since it started in 1999. The Eco-products Exhibition, actively accommodate this type PRTR substance input 209 tons Dust 3 tons which is the largest general environmental exhibition in of training. Japan, is a place where people from different walks of life Market the and Casio Releases and transfers of PRTR substances 127 tons can think about environmental issues and learn about ways to Parts and materials 24,759 tons Wastewater 2.504 million m3 realize their own eco-lifestyles. Casio’s commitment to promoting environmental awareness extended even to the Manuals (recycled material) actual construction of its exhibition booth, which was made of CSR Report 2005 Reading Session Manufacture Generated waste 8,527 tons 4,557 tons (2,117 tons) eco-materials (Eco-Palette Haru-Color / Moiss). The exhibition h lblEnvironment Global the Landfill disposal 625 tons was an opportunity for Casio to introduce its overall environ- Packaging material (recycled material) mental initiatives while showcasing Casio Green Products—

Information on the Web and Casio 12,984 tons (10,128 tons) Recycled waste 5,680 tons eco-products that make use of Casio’s core competence in compact, lightweight, slim, energy efficient technologies. For the 2005 exhibition, Casio planed a hands-on learning experience for children, giving them the chance to practice Casio renewed its website for Japan in March 2006 and building a calculator. The company also introduced its worldwide website in June 2006. The website for Japan was 1 Distribution* CO2 emissions 99,692 tons-CO2 environmental initiatives using an easy-to-understand video ranked seventh on the Usability Ranking sponsored by Nikkei Employees and Casio presentation on the main stage. Personal Computing. This ranking evaluates user-friendliness Casio plans to take part again in the Eco-products and design. The company’s Japanese environmental website Total products sold 150 million 2006 Exhibition. was also renewed, follow- Sales ing the same pattern. Casio uses its Environmental TFT-LCD packaging 14 tons Report website to publish

the latest Corporate Social Data Company Society and Casio Electricity 87.68 million kWh Use CO2 emissions 40,680 tons Responsibility Report.

Recovered Recycled

System equipment from corporate Eco-products panel customers 83 tons System equipment from corporate customers 71 tons Website Eco-products 2005

Household PCs 0.5 tons Household PCs 0.4 tons Recovery/ recycling Environmental Report website Label printer tape cartridges 3 tons Label printer tape cartridges 3 tons http://world.casio.com/env/ Building a calculator

Drums and toner cartridges 672 tons Drums and toner cartridges 635 tons Major awards and commendations in fiscal 2006

Year Month Site Award / commendation Awarding organization Rechargeable batteries 1 ton ■Material balance for business sites Yamagata Prefectural Governor’s award for excellence ■Material balance for products June Yamagata Casio Co., Ltd. Yamagata Prefecture 2005 in promotion of environmental conservation June Casio Micronics Co., Ltd. Award of excellence for electrical safety and rationalization Tama Electric Association

*1: Product distribution is consigned to transportation companies. Casio Micronics Co., Ltd. Kanto Region Electricity Usage 2006 February Award of excellence for rationalization of electrical use *2: Ozone depleting substances are not listed because they have Hamura R&D Center Rationalization Committee been fully phased out.

36 Casio Corporate Report 2006 Casio Corporate Report 2006 37 Casio and the Global Environment

Environmental Accounting

Fiscal 2006 performance 3. Economic effects accompanying 4. Environmental conservation effect 1. Environmental conservation cost by business activity 2. Environmental conservation cost by conservation measure environment conservation measures Profile Corporate (Unit: ´ million) (Unit: ´ million) (Unit: ´ million) Capital investment Environmental cost Capital investment Environmental cost FY2006 FY2005 Difference Electronic Electronic Electronic Electronic Effect FY2006 Environmental performance Category Electronics Total Electronics Total Category Electronics Total Electronics Total Unit Electronic Electronic Electronic Components Components Components Components indicators Electronics Electronics Electronics component component component 2006 2005 2006 2005 2006 2005 2006 2005 2006 2005 2006 2005 2006 2005 2006 2005 2006 2005 2006 2005 2006 2005 2006 2005 Energy cost savings through energy *2 Ð184 Business area cost 31 132 105 473 136 605 245 246 457 453 702 699 1 conservation activities Crude oil Global warming * 11 122 41 148 52 270 66 53 29 20 95 73 Total energy input equivalent (kL) 17,454 42,026 15,458 40,357 1,996 1,669 Pollution measures Water and sewerage savings and copy 8 64 314 64 322 11 13 295 296 306 309 3 prevention cost paper purchase savings through 1 Water resources input Thousands m 523 2,792 466 2,551 58 241 Ozone layer resource-saving activities 8 8

Global protection measures Emissions of greenhouse gases Highlights CSR environmental 12 122 41 82 53 204 65 26 20 8 85 34 Waste treatment cost savings through Cost savings 19 conservation cost Air quality resource-saving or recycling CO2 Tons-CO2 41,964 71,518 40,350 69,083 1,614 2,435 Breakdown conservation 3 51 28 54 28 3 5 76 74 79 79 Resource 19 2 77 19 79 169 207 142 149 311 356 measures circulation cost Business revenue from recycling 263 SF6 Tons-CO2 0 18,714 0 16,551 0 2,163 Noise and vibration 1 1 2 Usage of substances specified measures Tons Upstream/ under the PRTR Law 1 208 16 167 Ð15 41

5 6 11 348 265 20 12 368 277 Profits Reuse of parts and materials 242 downstream cost Conservation Emissions of substances Tons measures for the specified under the PRTR Law 0 37 0 29 0 8 aquatic, ground, and 1 13 254 14 254 7 7 206 204 213 211 Sale of cardboard and scrap metal 21

geologic environments Breakdown Total generation of waste Tons 3,422 5,105 3,085 4,359 337 746

Administration cost 201 167 68 74 269 241 Management CSR Waste and Customers effect*3 7 (Amount sent to landfill disposal)Tons 619 6 1,051 11 Ð432 Ð5 recycling measures 4 43 47 379 376 140 148 519 524 3 Thousands m Other (distribution cost savings through Total wastewater 335 2,169 256 1,301 79 868 Measures for 27 28 12 6 12 34 132 91 104 3 236 94 downsizing of products) R&D cost 25 12 12 25 64 56 66 4 130 60 chemical substances BOD Tons 11 23 7 19 4 4

Natural environmental Total 133 COD Tons 12 0 0 0 12 0 conservation 6 3 6 7 12 10 Social activity cost 6 4 6 4 *1 Cost savings: Adjusted by turnover increase rate. Other emissions Other 16 16 271 202 50 86 321 288 *2 Minus sign: Indicates a negative result. NOx Tons 118 20 83 16 35 4

These are mainly due to increased energy consumption accompanying Market the and Casio increased production and the large effect of surges in oil prices. Total 31 162 117 479 148 641 864 738 611 543 1,475 1,281 SOx Tons 30 7 23 8 7 Ð1 *3 Customer effect: Environmental effects generated by customers to power Other cost *See page 67 of Web version for details on the scope of coverage. saving technology converted to monetary value. Soot and dust Tons 2 0 2 1 1 0 * The accounting procedure for fiscal 2006 newly accounted for depreciation costs in environmental (Difference between annual electrical power usage/consumption for total sold costs (depreciation costs for fiscal 2005 were retroactively accounted for to enable comparison with the units in fiscal 2005 and fiscal 2006) x Unit price of electrical power Total 31 162 117 479 148 641 864 738 611 543 1,475 1,281 Energy consumption during usageThousands GJ 316 0 317 0 Ð2 0 previous fiscal year). *Personnel expenses are calculated using the average unit price. Recycled amount of used and recovered products, containers, and packagingTons 13,065 511 12,350 483 715 28

Containers and packaging usage Tons 12,390 594 11,676 607 714 Ð13 h lblEnvironment Global the 2 In fiscal 2006, capital investment came to ¥148 million, In terms of the environmental efficiency of sales, CO * Some of the calculated results shown in the difference columns in the table may not match due to the rounding of fractions. environmental conservation costs totaled ¥1.475 billion, and environmental efficiency came to 5.11 (¥ million/ton-CO2 ) and *CO2 conversions are calculated using the coefficient from the Ministry of the Environment’s Guidelines for Calculating Greenhouse Gas Emissions from Businesses (2003) and applied retroactively. economic effects came to ¥133 million. waste environmental efficiency came to 68 (¥ million/ton) due and Casio Following last fiscal year’s investments in energy to increased business activities, while the amount of waste conserving air conditioning equipment, water supply and sent to landfill disposal improved over the previous fiscal year drainage treatment equipment, and equipment to prevent (a year-on-year decrease of 436.9 tons) due to the company’s global warming, during the current fiscal year Casio aggressive recycling efforts. In addition, environmental Environmental efficiency in terms of sales continued to work on air quality conservation by installing efficiency for chemical substances specified in the PRTR Law Employees and Casio equipment to detoxify the higher CVD gas* emissions was 2,777 (¥ million/ton), and 32% of the amount used was Casio’s environmental efficiency in terms of sales is given below in terms of CO2, waste, and substances specified accompanying increased production of TFT-LCD panels. recovered and recycled. under the PRTR Law. These indicators have changed due to increased production, but Casio intends to continue Environmental costs increased over the previous fiscal In the future, Casio will steadily implement medium-term improving them. year due mainly to strengthened responses to Europe’s RoHS measures with the aim of expanding economic and and WEEE Directives. environmental conservation effects through energy and Environmental Sales (´ million) Environmental Sales (´ million) Environmental efficiency Sales (´ million) Economic effects were ¥263 million in business revenue resource conservation-associated cost savings and the efficiency in terms = efficiency in terms of = in terms of sales = of sales (CO2) CO2 emissions (tons-CO2) sales (waste) Waste emissions (tons) (PRTR substances) Usage of PRTR substances (tons) from recycling and absorption of ¥130 million in increased improvement of environmental performance indicators. (*CVD Data Company Society and Casio costs related to energy conservation, resulting in a total gas: A gas emitted during the CVD process, which creates film of silicon or *Tons-CO2: Various greenhouse gases converted to their *PRTR substances: Chemical substances specified in the CO2 equivalent amount and expressed in tons. PRTR Law (Law Concerning Reporting, etc. of Release of economic effect of ¥133 million. other substance on the board during the manufacture of TFT-LCD panels.) *The CO2 conversion factor has been revised and applied Specific Chemical Substances to the Environment and retroactively. Promotion of the Improvement of Their Management) 6 90 4,000 5.16 5.11 5.11 75 <><> 5 66 68 2,927 3,055 (Unit: ´ million) (Unit: ´ million) 3,000 2,777 4 60 Amount of capital investment Environmental cost Item by area Item by area 3 2,000 of measures Main details for current term of measures Main details for current term 2 30 Ensuring the power source capacity and Global warming measures 95 Boiler modifications, air-conditioner renewals 1,000 conserving energy in power system Maintenance and management of exhaust 1 transformers for production and construction Air quality conservation 79 Global warming equipment, and installation of highly energy gas treatment equipment 0 0 0 52 FY2004 FY2005 FY2006 FY2004 FY2005 FY2006 FY2004 FY2005 FY2006 measures efficient transformers. Conservation measures for Installation of COF2 cylinder cabinets the aquatic, ground, and 213 Repair of wastewater treatment equipment geologic environments and COF2 mixing devices. FY2004 FY2005 FY2006 FY2004 FY2005 FY2006 FY2004 FY2005 FY2006 Increasing CVD gas removal equipment to Waste/recycling 519 Recovery and recycling of toner and drum sets Consolidated Consolidated Consolidated Air quality conservation 54 increase the performance of TFT-LCD panels. sales 523,528 559,006 580,309 sales 523,528 559,006 580,309 sales 523,528 559,006 580,309 Respond to RoHS Directive survey, trial (´ million) (´ million) Chemical substances 236 (´ million) Conservation measures for Installation of wastewater treatment tanks manufacture cost of lead-free products CO2 emissions Total generation Usage of PRTR the aquatic, ground, and 13 and neutralization tanks. 101,374 109,432 113,482 7,884 7,444 8,527 179 183 209 geologic environments Natural environmental (tons-CO2) of waste (tons) substances (tons) 12 Landscape planting within company grounds Storage warehouses and equipment for conservation Waste/recycling 1 recyclables Preparation of an environmental report, Other 321 ISO maintenance and management, Chemical Evaluation equipment / Installation of a solar 28 water heater on the roof of Casio Electronic WEEE compliance substances/other Scope of data compilation for environmental accounting: Casio Computer Co., Ltd., and consolidated subsidiaries in and outside Japan. Technology (Zhongshan) employee dormitory. Total 1,475 Reference guideline: Environmental Accounting Guidelines 2005, Ministry of the Environment, Japan Total 148

38 Casio Corporate Report 2006 Casio Corporate Report 2006 39 Casio and Employees

Creating Employment Opportunities Appointing and Effectively Deploying Casio constantly strives to create opportunities for highly satisfying employment. In all of its interactions Qualified Workers with employees, Casio respects the human rights of individuals and refrains from discrimination based on gender, disability, or other trait. Casio has built a sound corporate culture by appointing qualified workers through a fair process, using a merit-driven system and a performance-based approach.

working world; the Casio recruitment Website was updated by objectives, work performance (competency) in their job Employment Philosophy and Policies with more content; hiring for specific job types was increased, Philosophy and Policies type, and contribution made toward the department. The Profile Corporate and interviews were held in various regions. As a result, hiring evaluation is made on a five-point scale, relative to other of women grew dramatically. Casio hired 66 new graduates, employees, and the results are reflected in remuneration. including 13 women, who joined the company in the spring of Superiors discuss the evaluation results individually with each The Casio Code of Conduct states that, “We respect others 2006. In addition, eight mid-career professionals were hired, Casio’s human resource system is based on fairness and employee in order to seek a high level of understanding. and value cooperation that is free of discrimination. We hold including two women. designed to maximize “Creativity and Contribution,” the The Compensation System applies a salary range that is in high regard every individual’s human rights, eliminate corporate creed. The company continually reviews its based on job grade under the principle of a merit-based

Regularly-scheduled hiring, by gender Highlights CSR harassment, remarks and behaviors that are discriminatory on personnel system, as it seeks to better reflect the changes in competitive salary. Pay raises are given in harmony with (Casio Computer Co., Ltd.) ●Male ■Female the basis of gender, beliefs, religion, ethnicity, social status or 49 the surrounding environment. performance evaluation and salary levels. Bonuses are 50 physical handicap, and protect the privacy of individuals.” Under Casio’s merit-driven system, employees are distributed in a balanced way, depending on the evaluation. This is the most important standard for value judgments in 40 37 rewarded according to the abilities required for their position, 32 30 Casio’s hiring. Casio adheres to this philosophy and strives to 30 irrespective of their academic background, age, or length of Human resource development create as many employment opportunities as possible. 20 19 service. To complement this, Casio’s performance-based 10 Casio has also been working to secure jobs internally by 10 6 approach determines the grade and compensation of Casio has various programs for human resource development Management CSR 1 2 1 2 bringing in work that had previously been contracted to 0 0 employees based on the results they actually achieve in their with the intention of developing creative employees that are companies outside the group. FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 assigned roles. The objective of Casio’s human resource eager to take on challenges and training professionals with system is to strike an optimal balance between the develop- early tracking into specialized fields. Employment, by gender (Casio Computer Co., Ltd.) Hiring persons with disabilities ment of employees under the merit-driven system, and the There are two basic types of employee professionals at ●Male ■Female 3,000 growth of the company that is facilitated by the performance- Casio. One is the strategic generalist that passes on the Casio seeks to hire individuals with the courage, determina- 3,008 3,035 3,017 2,960 2,958 based approach. company’s corporate culture. The other is the technical 2,827 tion, and creativity to take on challenges and realize their Market the and Casio 2,000 specialist that passes on the company’s unique technology dreams, regardless of any disabilities they may have. Human resource system and know-how. Presently there are 50 employees with disabilities working at 1,000 Casio approaches the development of these employees 399 373 354 333 304 362 Casio Computer Co., Ltd. (1.27% of the workforce). However, Casio’s human resource system consists of three with the philosophy that people grow through their work, and 0 in order to reach the legally required employment level of FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 subsystems: the Grade System, Appraisal System and that the source of growth is one’s drive. Based on this belief, 1.8% as soon as possible, a five-year plan was established for Compensation System. Casio supports its employees to grow and improve their skills Average number of service years, by (Casiogender Computer Co., Ltd.) the hiring of persons with disabilities. In fiscal 2006, Casio

● ■ The Grade System forms the base of Casio’s human by providing them with an environment in which new abilities Environment Global the Male Female actively promoted activities for sensitivity awareness, including 16.0 16.3 16.6 resource system. The Qualification System applies to non- are constantly required. The company also gives employees Ye ars 15.2 15.1 workplace training. Consequently, six persons with disabilities 15 14.4 managerial employees, who are promoted based on the opportunities to rise to challenges by relying on their own and Casio were hired and joined the company in the spring of 2006. growth of their ability to perform their duties. The Professional determination and hard work. Casio is also improving its workplace facilities to enable System applies to managers and specialists, who are graded For this reason, Casio’s system of human resource 10 each and every employee to maximize their abilities and 11.4 12.0 11.1 and ranked based on their individual functions and development is rooted in skills improvement through actual 9.8 10.2 aptitude. Examples of such work include the creation of 8.7 accomplishments. work, or on-the-job training (OJT). Various supplementary 5 accessible lavatories at both the Hamura R&D Center and the FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 In the Appraisal System, employees are evaluated in training programs, including systematic study of theory, are Employees and Casio Hachioji R&D Center, as well as measures to allow employees three areas, namely, target achievement under management also offered as off-the-job training (Off-JT). Employees worldwide, by region (as of March 31, 2006) with disabilities to commute by car to work. Casio will continue Europe 4% North America 2% to hire persons with disabilities and promote the creation of a Organization of Casio’s human resources system work environment that is suitable for everyone to work in. OJT Off-JT Award Recruitment Website for applicants with disabilities Measures to train Measures for Skill Training for Training for Other system existing workers to proper placement selective Asia 38% Japan 56% (Japanese-language) make them professionals Selected Employees Specific Job Grade training

http://www.casio.co.jp/saiyou/career2/policy.html Division Data Company Society and Casio Manager Consulting Rank 4 Hiring senior workers Engineer Multi Department Total number of Casio group employees: 12,673 Evaluation Manager Rank 3 Department Manager Since 2001, Casio has been operating the Casio Senior Staff Senior Career Training System for Employment-related initiatives Program (CSP). Its purpose is to provide employees who Engineer Managers reach the mandatory retirement age with employment Section Manager Rank 2 Section Manager Based on the philosophy and policies described above, opportunities, and to effectively utilize the skills and know-how Advisory Career Training Engineer Casio respects every person’s human rights and individuality. that these employees have accumulated within the group. New Manager Casio hires individuals who are highly motivated to work, Under this program, employees who reach the retirement age Chief Rank 1 Training irrespective of their gender, creed, religion, ethnicity, social can register with the group’s personnel dispatch company. Engineer status, or disability, while responding to changes in the The program is designed for retirement-age employees with environment that surrounds the labor market and society. the desire to continue Assistant Assistant Manager In Japan, Casio supports the Charter of Corporate Ethics working, and who are Employment of senior workers Manager Career Training for Screening and Employing New Graduates issued by healthy and possess (Casio Computer Co., Ltd.) Assistant Manager 12 Nippon Keidanren (Japan Business Federation), and helps to knowledge and skills that 11 Candidate Training Supervisor Development System atent Award 10 P minimize the impact on students’ learning caused by the are needed within the group. 9 Evaluation Career Roadmap market tendency to hire them at extremely early stages of the Starting in fiscal 2007, the 8 8 System System Job Posting

Career Training Skill Selective hiring season. In addition, Casio holds its interviews on senior staff program has 6 Career Challenge System Development 6 Senior Staff Advanced Career Challenge: Training Engineers System for Training Sales

Saturdays or at other times that are convenient for students been expanded to all group 4 Award / President’s echno Power T so that more applicants will have the opportunity to be companies in Japan, and 4 OJT-MAP Each Department Ability aining for / Professional Follow-up Training Tr Assessment of Job Performance interviewed. In fiscal 2006, Casio introduced the following the opportunities for senior 2 Staff / Correspondence Education Training Seminars / Language Technology Advanced New Employee methods to promote more student-friendly recruitment: employees are expected 0 Entry-level Mentor for New Employee Training seminars were held to deepen students’ understanding of the to increase. FY2002 FY2003 FY2004 FY2005 FY2006

40 Casio Corporate Report 2006 Casio Corporate Report 2006 41 Casio and Employees

Building a Supportive Work Environment Efforts on Occupational Safety and Health Casio is building work environments and systems that permit all employees to demonstrate their Casio is taking various steps to maintain and enhance employee health and prevent occupational injuries. full potential.

employees about their right to participate in the management many people participated, including employees’ family Policies on Building Positive Work of the company. Casio values close communication between Basic Philosophy members. Casio has also signed an agreement with a fitness Profile Corporate Environments labor and management. club, providing additional opportunities for employees to At the core of this labor-management communication is improve their health. the Group Workers’ Labor-Management Conference, which is Casio is striving to raise the awareness of employees Casio strives to build work environments that are friendly to all held twice a year in September and February. At these Based on Japan’s Industrial Safety and Health Law, various about oral hygiene. A column entitled, “Diseases Originate in employees so that every person can realize his or her conferences, opinions from management and labor, together other legal requirements, and Casio’s employment regula- the Mouth,” written by the dentist at the head office clinic, is full potential. representing the entire Casio Group, are exchanged. In tions, the entire Casio Group is dedicated to offering an published regularly on the company’s internal Website. In As part of this effort, Casio is endeavoring to reduce the addition, close communication is maintained at various other environment that ensures employees can work with peace of order to improve and prevent lifestyle-related diseases and Highlights CSR total annual hours worked by employees. The company is levels, including the Central Labor-Management Meeting, the mind. Casio works to maintain and enhance employee health obesity, the employee cafeterias provide healthy menu also expanding support programs that help employees to Division Labor-Management Meeting, and the Sales Chapter and to prevent occupational injuries and their recurrence. choices featuring a balance of calories and nutrition. meet family obligations, such as taking care of children and Labor-Management Meeting. Similar measures have been adopted at overseas group Wellness Fairs are also held at all Casio sites. other family members, with special consideration for At the end of fiscal 2006, 4,641 of the 7,135 employees of companies in compliance with the laws and regula- female employees. Casio Computer Co., Ltd., and its domestic group companies tions concerned. Mental health care

were members of the labor union. Management CSR Activities of the Occupational Safety and In 2000, Japan’s Ministry of Health, Labour and Welfare issued Vacations Health Committee a publication entitled, Guidelines for Promoting Mental Health Care in Enterprises. Through the holding of special seminars With the goal of shortening the hours worked by employees The Casio Occupational Safety and Health Committee was for managers, Casio is trying to raise the awareness of mental each year, Casio is promoting an environment and culture Building a Supportive Work established in accordance with Japan’s Industrial Safety and health issues throughout the company. Employees can also that encourages employees to fully utilize paid vacation time. Health Law. Meeting on a monthly basis, the committee is discuss their personal health concerns at the company clinics,

In fiscal 2006, an average of 21.9 paid vacation days Environment comprised of the company physician, occupational health or by using the external Physical and Mental Health Hotline. Market the and Casio were offered to each employee at Casio Computer Co., Ltd., managers, and representatives of labor and management. and 58.4% of these days were utilized. The average number Continued support for achieving a balance It promotes various measures to keep employees physically ●Manager Seminars to Promote Health of paid vacation days taken was 10.4 full days and 4.8 between work and family and mentally healthy and to ensure occupational safety. In A special seminar for managers entitled, “Promotion of Health half days. Report by the Special Committee on Measures to Aid the fiscal 2006, the committee advanced the creation of a and the Role of Supervisors,” was held at the head office in Casio also offers a Vacation Day Accumulation Program. Nurturing of the Next Generation of Children comfortable workplace promotion plan, based on the May 2004, at the Hamura R&D Center in November 2004, and Under the program, when an employee is unable to work due Guidelines for Measures to Be Taken by Employers for the at the Hachioji R&D Center in June 2005. h lblEnvironment Global the to injury or illness, or the care needs of a family member, part Casio has always worked on establishing various vacation Creation of Comfortable Working Environments, issued by With many managers in attendance, the occupational programs, including child and nursing care leave, so that all of his or her unclaimed paid vacation days that otherwise Japan’s Ministry of Health, Labour and Welfare. On January health physician from the head office clinic gave a lecture, and Casio would expire is carried over and made available for use. employees may demonstrate their full capabilities in a work 25, 2006, the Casio headquarters received approval as a systematically covering diverse subjects, including physical Furthermore, after each decade of service, employees are environment that accommodates their needs. Comfortable Workplace Plan Promoter, and these measures checkups, taking steps to be healthy, overwork and health granted an extra five days off. With the implementation of Law Concerning the Promotion are now being implemented. problems, duty to pay attention to safety, and mental health. of Measures to Aid the Nurturing of the Next Generation of In order to further promote occupational health education In particular, the doctor stressed the role that supervisors

Child and nursing care leave Children in April 2005, Casio set up the Special Committee on and activities, Casio is training occupational health managers. should play in the health management of workers. Employees and Casio Measures to Aid the Nurturing of the Next Generation of At the Hamura R&D Center and the Hachioji R&D Center, Casio established its Rules Concerning Child Care Leave in Children, in order to further help employees achieve a Casio is implementing various safety policies through regular Prevention of occupational injuries 1996 in accordance with the company’s employment balance between work and family life. The committee has meetings of the Occupational Safety and Health Committees. regulations. The rules are applicable to employees with established the action plan shown below. Just like at the group companies, regular physical examina- Casio has been working to achieve zero occupational injuries children younger than one year, and have been continually tions are provided to employees, and health management is and is engaged in safety activities targeting an accident-free updated in response to changes in laws and the environment. Action Plan: April 1, 2005 to March 31, 2007 also promoted by holding mental health seminars. record at all Casio work sites. In addition, each site and group In addition, the Rules Concerning Nursing Care Leave cover Target 1: To create an environment that encourages company conducts fire and disaster prevention/evacuation employees who have a family member requiring care. These employees to utilize vacation time. Promotion of employee health drills, as well as automated external defibrillator (AED) classes Data Company Society and Casio rules also have been revised as necessary since their Target 2: To create an environment that permits to ensure emergency preparedness. establishment in 1999. employees to take time off for child or family Casio offers annual physical checkups to all employees. The On September 12, 2005, a disaster and fire drill was held care (leave time or shorter working hours). company is working to increase the number of items covered at headquarters involving over 200 participants—not only the Employees taking child care leave by the checkups, and also emphasizes the importance of company’s volunteer fire brigade, but also other employees. Target 3: To enable workers returning from childcare 35 (Casio Computer Co., Ltd.) secondary checkups and other follow-up. The drill began with practicing measures for physical leave to be reintegrated smoothly. 31 There is a clinic (internal medicine and dentistry) at the protection from the initial effects of an earthquake, followed 30 Target 4: To construct a system that reflects the opinions 28 headquarters of Casio Computer Co., Ltd., and other major by reporting, fire extinguishing, and evacuation guidance in of employees on this action plan. 25 Casio sites, each one staffed by a full-time doctor who looks the event of street evacuation on foot from all floors of the 20 19 19 after the health of Casio employees. In July 2005, 924 annual building. The drill continued with simulation of safety In fiscal 2006, Casio promoted the taking of planned paid physical checkups were conducted at Casio headquarters, protection measures, evacuation from the building by fire- 16 15 15 vacation in order to improve vacation time utilization rates. representing a 100% participation rate by headquarters truck ladders, spraying water on the fire by the fire brigade The company also worked on improvements that reflect employees. and pump trucks, and emergency medical treatment. 10 employee needs. Under the shorter working hours system for Casio held a AEDs were incorpo- Time off due to occupational 5 employees with childcare needs, the eligibility was extended Walking Campaign to rated into Casio’s to the time that the employee’s child starts elementary school. injuries (last five years) 0 help maintain and Regular Lifesaving FY2001FY2002 FY2003 FY2004 FY2005 FY2006 Time off was also expanded for fathers at the time of their Number of enhance employee Seminar on March 1, employees Number of days child’s birth, and for maternity protection. health as well as prevent 2006. The devices have FY2002 0 0 Communication between Labor and In fiscal 2007, Casio aims to further expand the leave lifestyle-related dis- been installed at the system based on a dialogue with all employees. The eases. The campaign head office and the FY2003 1 73 Management company plans to design systems that take into account was run at various Hachioji R&D Center, FY2004 0 0 employee needs, to post information for employees on the locations between and will soon be made FY2005 0 0 Through regular communication between management and Web, and to educate all managers about support for fostering September and available at all sites and FY2006 3 13 the labor union, Casio hopes to raise the awareness of the next generation. Wellness Fairs November 2005, and group companies.

42 Casio Corporate Report 2006 Casio Corporate Report 2006 43 Casio and Society

Social Contribution Initiatives Casio fulfills the full range of its responsibilities to society by making the most of its proprietary know-how and management resources.

Casio is actively promoting this kind of social contribution Beautification and cleanup in the the charity proceeds raised during the tournament to Philosophy on Social Contribution initiative for local communities, while providing places for surrounding community purchase sporting equipment and donated it to local Profile Corporate youth to learn resiliency for a meaningful life, and to practice organizations that serve the welfare of the community. self-reliance and independence. These activities have Every April 28, the Shibuya-ku Casio plans to hold the same kind of tournament in received the appreciated of the public. Currently, Casio has ward office holds a general fiscal 2007, with the goal of benefiting the people of the Based on its corporate creed of “Creativity and Contribution,” received requests for classroom visits and factory tours from cleanup in order to help local community. Casio seeks to contribute to society by creating products that many educational institutions around the nation of Japan, and beautify the district, with the provide people with joy and wonder. Casio is now preparing to undertake these activities and participation of residents and Casio also leverages its proprietary know-how and make other new efforts. By maintaining close ties with local businesses in this area of Highlights CSR management resources for the betterment of society. Casio communities, Casio is working hard to foster the society of the Tokyo. In fiscal 2006, the Contribution to Civic Society uses its core competence in compact, lightweight, slim, future, through both economic development and protection of headquarters of Casio energy efficient technologies to make unique contributions the global environment. Teaching resiliency for a meaningful Computer Co., Ltd., pitched in Cleanup around the head office building that no other company can. life to young people forms the foundation of these efforts. to help clean up and restore Rather than merely performing indirect activities such as the appearance of the local neighborhood. Fostering young science and providing donations, another important channel of social Support for comprehensive studies classes: Although participation was purely voluntary, 25 head technology researchers—Casio Science Management CSR contribution for Casio is to offer the knowledge and Visit to Hatashiro Elementary School office employees from all departments showed up on that Promotion Foundation— experience of its employees to society. day. In just 30 minutes, the participants were able to gather Through communication with various stakeholders, Casio On February 10, 2006, the General Manager of the up a large amount of garbage from around the head Basic research forms the foundation for science and is constantly assessing its responsibilities as a good Environment Center of Casio Computer, Co., Ltd., visited office building. technology. The new principles discovered in the realm of corporate citizen. Casio is also aware of the importance of fifth-graders at Hatashiro Elementary School in Shibuya-ku, Starting in fiscal 2006, staff from the Hamura R&D Center basic research often end up having an enormous impact on

establishing its own creative social contribution initiatives to Tokyo. He went as a guest teacher to talk about Casio’s began participating in a regular volunteer cleanup activity at the wider world. However, since basic research does not Market the and Casio fulfill its responsibilities. The company is currently working to efforts to help stop global warming. He spoke to 90 students the nearest station, JR Ozaku. The employees at Casio produce any immediate profits, researchers are often enhance its current range of CSR activities. in three classes. Micronics (Ome) also carry out regular cleanup activities in supported by limited budgets from the government or Casio continues to dedicate itself to social contribution After a video presentation on environmental activities, he their neighborhood. Casio will continue to actively participate universities. The Casio Science Promotion Foundation is initiatives in five key areas: (1) environmental conservation to explained the mechanisms behind global warming and the in this kind of community activity whenever possible, at all providing funding for this type of research and thereby protect irreplaceable global resources and the environment; specific environmental efforts being made on products and Casio sites. contributing to the advancement of science and technology. (2) education to fulfill Casio’s responsibility to the next distribution at various Casio sites. This was followed by an The Casio Science Promotion Foundation was established generation who are the future leaders of the world; (3) culture opportunity to ask questions. The students enjoyed the CASIO WORLD OPEN GOLF TOURNAMENT in 1982 by the four Kashio brothers, and the late former Environment Global the

and arts to provide people with joy and wonder; (4) study and presentation immensely. They were particularly interested in chairman, Shigeru Kashio, to contribute to the growth and and Casio research that contribute to the development of the cutting- the samples of eco-products shown to them, such as digital The CASIO WORLD OPEN GOLF TOURNAMENT has been promotion of academic research in Japan. The foundation’s edge science and technology that are indispensable for cameras and solar-powered radio-controlled watches that held since 1981, part of Casio’s social contribution main focus is on assisting cutting-edge, creative research in society to grow; and (5) community activities to be a useful exemplify Casio’s compact, lightweight, slim, energy efficient through sport the early stages conducted by younger researchers. Every member of local society. technology. The students were all amazed by, and expressed Starting in 2005, the location of the tournament was year, assistance is given to approximately 40 projects. In Casio plans to continue improving its social contribution their admiration for the products, and continued to ask switched to the Kochi Kuroshio Country Club in Kochi addition, approximately 10 grants are awarded to send ai n mlye opn Data Company Employees and Casio initiatives by, for instance, developing mechanisms that focus questions even when the class was over. Prefecture, Japan—the birthplace of Casio’s founder and researchers abroad and 10 more to host research meetings. the entire group’s efforts, and making them known to the Although global warming is a complex issue, Casio heard where Casio has a major manufacturing subsidiary. In order In fiscal 2006, 44 research projects received grants, public in an appropriate way. from the students’ teachers that the kids were still talking to convey the enjoyment of golf to a wider range of people, totaling ¥50 million. The recipients included Professor about the presentation for days afterwards. Casio hopes that the CASIO WORLD OPEN invited Michelle Wie, the young Takeyoshi Dohi of the University of Tokyo, Professor Michio the youngsters are now taking steps individually and with female golf phenomenon with worldwide fans, to her first Umino of Tohoku University, and Professor Yasufumi Fujiwara their families to help prevent global warming. tournament in Japan. Although she played on weekdays, of Osaka University. The grants were awarded to the

Contribution to Local Communities huge crowds filled the gallery in order to see her perform, and recipients at the 23rd presentation ceremony held on Society and Casio there were also large contingents from the Japanese and December 2, 2005. international mass media. Although Michelle Wie just narrowly missed making it to the weekend championship round by one Educational activities with the Tokyo Bureau shot, many fans were impressed by the sight of her battling Number and amount of research grants awarded by of Environment against the top male players. Casio Science Promotion Foundation Casio is making various contributions to the people of Number of grants Total amount of grants awarded As an effective policy for environmental education and Kochi Prefecture, which hosted the tournament. Unit: Number of grants Unit: ´1000 50 measures against global warming, the Tokyo Metropolitan Casio Computer Co., Ltd., donated digital cameras to the 55,640 50,00060,000 50,400 50,74044 Government has been promoting the Kids’ ISO 14000 local government organizations that helped with the hosting 49,800 42 40 39 50,000 Program, developed by ArTech. Already, 8,700 Tokyo of the golf tournament. A special golf lesson area was also set 40 37 children are taking part in the program. As a participating up for golfers from the tournament to give pointers to local 40,000 30 company, Casio Computer Co., Ltd., is sending employees School visit by Casio youth on the proper golf swing. In addition, Casio worked with 30,000 with instructor certification to actively participate in the local elementary schools to provide students with a guided 20 program, and is developing a wide range of activities. In tour of the backstage 20,000 fiscal 2006, based on a request from the Tokyo Bureau of sites of the tournament 10 Environment, Casio made case-study presentations to that are usually closed 10,000 educators and company officials responsible for CSR in the to the public, including 0 19th year 20th year 21st year 22nd year 23rd year Tokyo area. In the presentations, along with activities to the press conference (FY2002) (FY2003) (FY2004) (FY2005) (FY2006) deepen understanding of the Kids’ ISO 14000 Program, area and the television Casio undertook part of an environmental education leader broadcast facilities. In Website of the Casio Science Promotion Foundation follow-up course, and provided a seminar on the importance order to help promote (Japanese-language) of educational activities for children and Casio’s local sport among the local http://www.casio.co.jp/company/zaidan educational initiatives. residents, Casio used Local youth receiving golf lessons

44 Casio Corporate Report 2006 The clover “ ”symbol indicates disclosure and communication activities in the area of social contribution. Casio Corporate Report 2006 45 Casio and Society

Social Contribution Initiatives

Supporting the Fifth Dolphin & Whale hands-on activities rather than just classroom learning. Casio Sponsoring the Nationwide Youth Keyboard Ching Ling Foundation was invited to visit Japan in October Eco-Research Network Project will apply the feedback in planning next year’s activities. Contest in China 2005. As part of this activity, a special China-Japan (Casio Profile Corporate and Soong Ching Ling Foundation) keyboard concert was Since the International Dolphin and Whale Conference held in Casio has been supporting the Nationwide Youth Keyboard held at the Casio headquarters. The concert featured 10 1994, Casio Computer Co., Ltd., has been working with the Contest in China since the Soong Ching Ling Foundation* first groups of children aged 9 to 18, who performed solo and in International Cetacean Education Research Center established the contest in 1986. To commemorate almost 20 ensembles. The delegation also included a reporter from the (I.C.E.R.C.) of Japan to support educational and research Contribution to the International years of support by Casio, a delegation from the keyboard People’s Daily of China, and this cultural exchange was activities involving dolphins and whales. In 2005, the contest including Vice Chairman Chi Liqun of the Soong widely reported throughout that country.

Community Highlights CSR company participated in the Fifth Dolphin & Whale Eco- * With the goal of helping underprivileged children across China, the Soong Ching Ling Foundation was established by the wife of Sun Research Network Project., Casio provided support for the Casio Monetary Fund Committee for Yat-sen, Soong Ching Ling, also famous as one of the three Soong Sisters in Japan. The organization is highly respected by the general I.C.E.R.C. exhibit* at Expo 2005 Aichi, Japan, (NGO Global public and the government for its activities, which have produced many outstanding instructors and students across China. Village) and the realization of better dolphin and whale Peking University Japan Study watching activities in Japan. Major social contribution initiatives in fiscal 2006 Casio is also promoting public awareness of I.C.E.R.C. The Casio Monetary Fund Committee for Peking University activities by setting up a dolphin Japan Study has been established by Casio (Shanghai) Co., Category Theme Content Implementing organization Management CSR Ltd., in cooperation with Peking University, China’s premier and whale display at the Street activities during the national traffic safety weeks in the spring Casio Information Traffic safety Cooperation with a traffic safety campaign Cetacean, Casio’s pilot retail institution for education and research relating to Japanese and the fall. Systems Co., Ltd. shop in Odaiba, Tokyo, and by studies. The goal of this fund is to support the ongoing sending out the organization’s improvement of the research and educational level for studies Hosting interns Kochi Casio Co., Ltd. free paper to the retail stores of in Japanese language, literature, and culture. As part of occupational education activities, actively participated in The fund awards one-time scholarships to students with Social planning as a corporate participant in university internship programs and

Casio Computer Market the and Casio Casio Distribution. education Company tours hosted 21 interns in fiscal 2006. * Joint exhibit with Japan Environmental G-SHOCK model to support the excellent academic results in Peking University’s foreign- Co., Ltd. Action Network (JEAN), from August 1 Dolphin & Whale Eco-Research language program for Japanese language or cultural studies Provided company tours for 281 students from 16 schools in fiscal 2006, as part of comprehensive studies classes and school excursions. Casio Computer to 31, 2005. Network and professors who have published outstanding academic Classroom visits Co., Ltd. papers or research. The awards are designed to further Visited Fuchu Dai 4 Elementary School, and gave presentations to about 100 students, teachers, and parents concerning the fun and difficulty of

Supporting the Teacher’s Business promote research in this field. Local communities creating products. Training Program Kofu Casio Co., Ltd. On November 9, 2005, a Environment Cleanup Day In fiscal 2006, 140 employees participated in the twice yearly cleaning of ceremony was held to commemorate the areas around a company site, and the route between the site and Environment Global the This year Casio once again participated in the Teacher’s both the founding of the fund and to nearby Higashi Hanawa station. Yamagata Casio

Co., Ltd. and Casio Business Training Program, sponsored by the Keizai Koho award the first scholarships. The Beautiful Yamagata and Cooperating with the local people, NPOs, universities, and government Social Mogami River Forum agencies to support cherry tree planting and maintenance along Center (Japan Institute for Social and Economic Affairs), in scholarships were presented to three Casio Computer education Mogami River. order to promote communication between the worlds of students and five professors. Co., Ltd. Scholarship award ceremony Support for the Nihon Keizai Shimbun’s high school education program in business and education. Nikkei Education Challenge 2005 economics and industry. Dispatch of employee instructors. Casio Group This program provides elementary, junior high and high Support for the World Children’s Baseball Fair Welfare Product disassembly, parts sorting and other types of light work are offered In fiscal 2006, 189 employees at the head office and 264 employees Data Company at the Employees and Casio school teachers an opportunity to experience corporate Participation in blood donation drive Casio Techno Hamuraon a contract R&D Center basis. participated. activities and share their experience and what they learned Since 1992, Casio Computer Co., Ltd., has been supporting Co., Ltd.

Civic society Jobs offered to physically or mentally disabled with students in the classroom. Started in 1983, the program the World Children’s Baseball Fair, which seeks to promote Casio (Thailand) Social persons places teachers with participating corporations during their Co., Ltd. friendship among the world’s youth. education Providing practical training to students as part of university programs (for summer breaks. In recent years there has been increasing The baseball fair was initially proposed by Hank Aaron Training students as part of twoOccasionally or three months). some local About high ten school students students per year are receive provided practical work training Pt. Asahi Electronics university programs ate Casioxperience (Thailand). at Pt. Asahi Electronics Indonesia. interest in this kind of training in the education sector. The and Sadaharu Oh, home-run kings of the US and Japan. With Indonesia business sector and the general public have also become the goals of promoting the spirit of baseball the world over ai n Society and Casio interested in companies’ cooperative effort to provide training and increasing international friendships between children, the Training local high school students community for teachers, as a way to fulfill their CSR. first World Children’s Baseball Fair was held in Los Angeles in International During a three-day training course from August 3 to 5, 1990. Since then, around 250 boys and girls from 20 coun- The clover “ ” symbol indicates disclosure and communication activities in the area of social contribution. 2005, Casio welcomed seven elementary and middle school tries worldwide have participated in the event with great Major donations in fiscal 2006 teachers from Tokyo and Hyogo Prefecture. It marked Casio’s enthusiasm every year. Category Project title Donation recipient Implementing organization second consecutive year of participation in the Teachers’ In 2005, the 16th annual baseball fair was held in Gunma Support for the “Think the Earth Project” FY2006 Think the Earth Project (NPO) Casio Computer Co., Ltd. Business Training Program. Prefecture from July 28 to August 5. Baseball workshops Donation to the Japan Industrial Waste Management FoundationJapan Industrial Waste Management Foundation Casio Computer Co., Ltd. The teachers received training from frontline employee were held in addition to cultural exchange activities with local Environment Casio Computer Co., Ltd. Donation to the Keidanren Nature Conservation Fund Keidanren Nature Conservation Fund instructors at the Casio head office and the Hachioji R&D children, thereby fostering international friendship. Casio Computer Co., Ltd. Center. The course also included a lively exchange of The promotion of the sporting spirit has become Support for WWF Japan (World Wide Fund for Nature Japan) WWF Japan (NGO) Casio Computer Co., Ltd. opinions and ended as a complete success. Support for the International University of Japan International University of Japan increasingly important for the sound development of youth Education The teachers who participated were surprised at the way and the effective utilization of their leisure time. Scholarship provision Costco Scholarship Fund Casio, Inc. a private company like Casio is putting its energy into Through the sport of baseball, children can learn to Support for the NHK Symphony Orchestra NHK Symphony Orchestra Casio Computer Co., Ltd. Culture and arts environmental activities, while pursuing its business with understand each Support for the Tokyo Philharmonic Orchestra Tokyo Philharmonic Orchestra Casio Computer Co., Ltd. Yamagata Casio Co., Ltd. goals and dreams. They were other better. By Local Sponsorship of the Fruit Nation - Cherry Marathon City of Higashine very pleased with what they Casio Computer Co., Ltd. supporting this communities Cultivation of tulip bulbs and Ohga lotus for the preservation ofCity fallow of Hamurarice fields learned in just three days, baseball fair that Contribution to the victims of Hurricane Katrina Japanese Red Cross Society, etc. Casio Group saying that they would apply fosters friendship, Disaster relief Contribution to the victims of the Pakistan earthquake Japanese Red Cross Society Casio Group this new knowledge in the Casio is contributing International exchange / classroom. The participants to the sound devel- cooperation Sponsorship of the Friends Association, MAISON DE LA CULTUREFriends DU Association, JAPON Ë PARISMAISON DE LA CULTURE DU JAPONCasio Computer Ë PARIS Co., Ltd. Casio (Thailand) Co., Ltd. Social welfare Donation to the fund for rehabilitation of disabled persons A FUND FOR REHABILITATION OF DISABLE PERSONS also expressed a desire to hear opment of young Casio Computer Co., Ltd. Donation to the Japanese Foundation for Cancer Research Japanese Foundation for Cancer Research from female managers at Casio people. Healthcare Casio Computer Co., Ltd. next time, and to do more Program for teachers World Children's Baseball Fair Support for PH-Japan PH-Japan (NPO)

46 Casio Corporate Report 2006 The clover “ ” symbol indicates disclosure and communication activities in the area of social contribution. Casio Corporate Report 2006 47 Company Data

Casio Network Sites outside Japan (as of Sept. 30, 2006)

In order to deliver products to customers in all parts of the world, Casio has development, manufacturing, and sales centers across the globe with a focus on four major regions: Japan, North America, Europe, and Asia (exclud- Casio Europe GmbH ing Japan). R&D and electronic component manufacturing Casio Scandinavia AS are performed in Japan, while other manufacturing facili-

ties are located mainly in other parts of Asia. As for Casio Electronics Co., Ltd. Profile Corporate overseas sales, Casio, Inc., handles the North American market, while Casio Electronics Co., Ltd., Casio Europe GmbH, Casio France S.A., Casio Benelux B.V., Casio Casio Benelux B.V. Scandinavia AS, and Casio Espana S.L., handle European Casio Korea Co., Ltd. Casio Espana S.L. sales. In other regions, distributors have been set up to Casio, Inc. Casio France S.A. handle direct and indirect exports to these markets. Casio (Shanghai) Co., Ltd. Casio Canada Ltd. Sales, by region Casio Taiwan Co., Ltd. Management CSR Highlights CSR (FY2006) Casio Electronics (Shenzhen) Co., Ltd. Casio Computer (Hong Kong) Ltd. Asia and other 16.8% Casio Electronic Technology (Zhongshan) Co., Ltd. Casio Electronics (Guangzhou) Co., Ltd.

North America Overseas 10.2% 40.6% Japan 59.4%

Europe Casio Singapore Pte., Ltd. 13.6% ( )

Casio Thailand Co., Ltd. Market the and Casio

Casio India Co., Pvt., Ltd.

Sites in Japan (as of Sept. 30, 2006) Data on Casio Computer Co., Ltd. (as of March 31, 2006) Environment Global the

Name: Casio Computer Co., Ltd. Paid-in capital: ¥41,549 million and Casio Established: June 1, 1957 Employees: 3,320 (non-consolidated) Headquarters: 1-6-2 Hon-machi, Shibuya-ku, Tokyo 12,673 (consolidated) President & CEO: Kazuo Kashio Consolidated companies: Subsidiaries (Japan and overseas) 56 Equity-method affiliates (Japan and Overseas) 4 Employees and Casio Consolidated business results Net sales (Unit: ´ million) Net income (Unit: ´ million) 580,309 600,000 559,006 25,000 23,745 523,528 21,534 500,000 440,567 20,000 400,000 15,000 14,176 300,000

10,000 Society and Casio 200,000 Yamagata Casio Co., Ltd. 5,647 Casio Computer Co., Ltd. - Headquarters 5,000 100,000 Casio Computer Co., Ltd. - Hamura Research & Development Center Casio Electronic Manufacturing Co., Ltd. 0 0 Casio Computer Co., Ltd. - Hachioji Research & Development Center FY2003 FY2004 FY2005 FY2006 FY2003 FY2004 FY2005 FY2006

Casio Techno Co., Ltd. Total assets (Unit: ´ million) Shareholders’ equity (Unit: ¥ million) Casio Micronics Co., Ltd. 600,000 200,000 191,011 Shin Nihon Casio Information Co., Ltd. Casio Information Systems Co., Ltd. 496,039 495,743 501,960 162,271 500,000 459,113 21,534 144,403 Data Company 150,000 131,957 Casio Electronic Devices Co., Ltd. 400,000 Casio Soft Co., Ltd. 300,000 14,176 100,000 Casio Support System Co., Ltd. 200,000 Kochi Casio Co., Ltd. Casio Hitachi Mobile Communications Co., Ltd. 50,000 100,000 5,647 Casio Communication Brains, Inc. 0 0 Casio Entertainment, Inc. FY2003 FY2004 FY2005 FY2006 FY2003 FY2004 FY2005 FY2006 Casio Marketing, Inc. Capital investment (Unit: ´ million) Employees (Unit: persons) Casio I-net Solution Co., Ltd. 25,000 15,000 12,140 12,673 Casio Business Services Co., Ltd. 19,711 11,481 11,637 20,000 17,782 12,000 Mas Inc. 16,213 15,000 9,000 Photohighway Japan Co., Ltd. 11,168 10,000 6,000

Kofu Casio Co., Ltd. 5,000 3,000 SEIYO Electronics Corporation 0 0 FY2003 FY2004 FY2005 FY2006 FY2003 FY2004 FY2005 FY2006

48 Casio Corporate Report 2006 Casio Corporate Report 2006 49