Corporate Social Responsibility Report 2005 Index Editorial Policy History of "Creativity" and "Contribution" 2 In 1999, began to publish its Environmental Report. The report Overview of Casio Group Operations 5 underwent a title change to the Sustainability Report last year (2004) Message from Top Management 7 as the report contents were revised to encompass social and Discussion on CSR 9 economic activities, as well as environmental conservation programs. This year (2005), the title of the report has been changed once again CSR Management� to the CSR Report. The new report provides greater information and The Corporate Creed and the contains expanded environmental performance data. It also articulates Charter of Creativity for Casio 13 Casio's social responsibilities to its diverse groups of stakeholders, Corporate Governance 14 which consist of its customers, business partners, investors and Implementation of CSR Management 15 shareholders, and employees, as well as communities, citizens and the international society. Compliance 16 Risk Management 17 ●The report was designed to be read by all stakeholders.* We made Personal Information Protection 18 special efforts to use descriptions and expressions that are clear to any reader so that our customers at large who patronize our products and our employees feel inclined to read it. Chapter I ●As much as possible, graphs and charts used in this report were designed to be barrier free to people who have vision perception Market and Casio peculiarities. Responsibilities to Our Customers 1: ●On the back cover are additional contact information and Casio's Stable Supply of Products 20 Website URL to facilitate two-way communication with our readers. Responsibilities to Our Customers 2: Research and Development of Next Generation Products 21 Scope of the Report Responsibilities to Our Customers 3: Our Efforts on Quality Assurance 24 ●Reporting Period Responsibilities to Our Business Partners: This CSR Report 2005 summarizes mainly the CSR activities of the Construction of Strong Partnership 27 Casio Group in the 2004 fiscal year (from April 1, 2004 to March 31, Responsibilities to Our Shareholders and 2005). However, parts of the Report contain information that precedes Other Investors: April 2004. Optimum Profit Returns and Information Disclosure 28 ●Business Units Covered by the Report The following table shows the scope of environmental accounting and Chapter II� that of environmental impact data compilation and description. Ten domestic business units and 12 overseas units were added newly this Global Environment and Casio year. (These are printed in blue in the table.) Readers are cautioned that any reference made to "Casio" in this Casio Environmental Charter and Casio Fundamental report means the Casio Group. In contrast, "Casio Computer" when Environmental Policies 30 used in this report refers to Casio Computer Co., Ltd. all by itself. Environmental Action Plan and Performance 31 Environmental Management 33 Names of Group Member Units Environmental Accounting 35 Electronic Hachioji Research & Development Center, Material Balance 37 Component Casio Computer Co., Ltd., Kofu Casio Co., Ltd. (2), Division Kochi Casio Co., Ltd., Casio Micronics Co., Ltd. (2) Green Procurement and Green Purchases 39 Consideration for the Environment in Head Office, Casio Computer Co., Ltd., Product Development 40 Hamura Research & Development Center, Casio Computer Co., Ltd., Yamagata Casio Co., Ltd. (2), Casio Electronic Manufacturing Co., Ltd., ― Examples of Green Products� 41 Casio Support System Co., Ltd. (5), Casio Techno Co., Ltd., Prevention of Global Warming 43 Electronics

Domestic CCP Co., Ltd., Casio Hitachi Mobile Communications Co., Ltd., Equipment Prevention of Air Pollution 44 Casio Communication Brains, Inc., Division Control of Chemical Substances 45 Casio Entertainment, Inc., Casio Marketing, Inc., Reduction of Industrial Water Use and Prevention Casio Information Service Co., Ltd., Casio Information Systems Co., Ltd., Casio I-net Solution Co., Ltd., Casio Soft Co., Ltd., of Soil and Water Contamination 46 Casio Business Service Co., Ltd., Casio Electronic Devices Co., Ltd. Reduction of Waste Generation and Landfill Wastes 47 Casio Korea Co., Ltd., Casio Taiwan Ltd., Jiu Shui Keng Casio Electronics Factory, Communication about the Environment Casio Electronics (Zhuhai) Co., Ltd., Casio Electronics (Zhongshan) Co., Ltd., and Disclosure 48 Electronics Casio (Thailand) Co., Ltd., P.T., Asahi Electronics Indonesia, Consideration for the Environment in Equipment Casio Computer (Hong Kong) Ltd., Casio Electronics (Shenzhen) Co., Ltd., the Area of Distribution Division Casio (Shanghai) Co., Ltd., Casio Electronics (Guangzhou) Co., Ltd.,

49 Overseas Casio, Inc., Casio Canada Ltd., Casio Europe GmbH, Consideration for the Environment in Casio Electronics Co., Ltd., Montres Casio France S.A., Connection with Packaging Materials 50 Casio India Co., Pvt. Ltd., Casio Singapore Pte., Ltd. Recovery and Recycling 51 ― Response to the WEEE and RoHS Directive 52 * Hachioji R&D Center of Casio Computer is included in the electronic component division whereas the Head Office of Casio Computer, its Hamura R&D Center and Casio Hitachi Mobile Communications are included in the electronics equipment division. Chapter III * The figures in brackets indicate the numbers of operational sites. Business units that are not accompanied by a bracketed figure operate at one site. The sites that are underlined in the table above are included in the report only with Employees and Casio respect to their "environmental conservation cost" and "economic impact." Creation of Employment Opportunities 54 Appointment and Effective Posting of ●Reported Areas Qualified Workers 55 This CSR Report was prepared in compliance with the Environmental Creation of a Worker - friendly Work Environment 57 Report Guidelines (2003 Edition), issued by the Ministry of Efforts on Occupational Safety and Health 59 Environment, based on the Sustainability Reporting Guidelines 2002 of the Global Reporting Initiative (GRI). Chapter IV Forecast and Plans about Future Society and Casio This report includes not only facts about past and present activities of Casio Computer Social Contribution Activities 62 Co., Ltd. and its Affiliates (Casio Group) but also forecast that is based on our business plans and management policies that were in effect at the time the report was published. Independent Opinion / Message from the Auditor / Such projections and plans were formulated, based on the most current information that From the Editors 67 was available at the time. There is therefore a possibility that the outcome of future GRI Content Index 68 business activities and events will differ from the projections and plans that are presented in this report, due to changes in various factors. Readers are thus advised to use caution when interpreting such projections and plans. 1 History of "Creativity" and "Contribution" Building on Its Basic Tenet of Making Contribution to Casio Has Endeavored to Build Strong Relationship

1965 Release of Model 001, the first transistor- 1980 Release of Casio Tone based electronic machine. electronic keyboards. 1966 First export of electronic desktop calculators to 1981 ● Release of TR-2000, the first the overseas market. electronic dictionary. 1970 Listing of Casio stock on the second section of ● Release of SL-801 solar- the Tokyo Stock Exchange. powered desktop calculator. Casio Tone 1972 ● Release of Casio Mini, the 1983 ● Release of a shock- first personal desktop resistance wristwatch. calculator in the world. ● Release of TV-10 pocket- ● Transfer of Casio stock to sized LCD color TV. the first section of the 1984 Release of the first liquid Tokyo Stock Exchange. Casio Mini crystal shutter printer. Through Business TR-2000 1974 Entry in the wristwatch 1985 ● Release of TV-1000 pocket- Activities market with the release of sized LCD color TV. Casiotron, a digital ● Release of PELA (FS-10), a wristwatch. super-thin digital watch. 1976 Release of an electronic 1989 Release of ADPS R1, an office cash register (ECR). Casiotron information processing device 1978 Start of production of liquid that requires no user program. G-SHOCK crystal panels for watches. Entry in the 1957 electronic component industry. Commercial production of the first small 1979 Release of ∑-S8700 Series Japanese- purely electric calculator in the world language office computers. started and Casio Computer Co., Ltd. was founded. Development of the First Electric Calculator in the World, Contr Formation of Japan's Computer Industry, and Contribution Creat to the Growth of Science and Technology.

1980

Energetically Promoting Civic Activities While Building Strong Model 14-A, Relationship with Customers, Employees and Business Partners. a Small Purely Electric Calculator 1964 Adoption of a qualification program that is 1981 ● Casio World Open Golf based on meritocracy. Establishment of an Tournament held. education and training system. ● Creation of the Consumer Section inside the Public 1967 Start of a zero defect campaign (NCZD) to Relations Office to respond promote "Quality-renowned Casio." to inquiries from consumers. 1982 Establishment of Casio The First Cas 1969 Formation of Casio Labor Union whose basic Science Promotion credo is "mutual trust and mutual Foundation. understanding." 1986 ● Initiation of a music promotion program to make 1971 Establishment of contribution toward the Casio Eight Club to creation of music-enriched promote amicable culture. Casio Scien relationship with ● Start of the Company-wide Foundation wholesalers all over Quality Improvement Party Through Social and Japan. Campaign, aimed at Casio Eight Club strengthening of the quality environmental control system. Conservation ● Initiation of the President's 1977 Prime minister's Award program, the highest Activities commendation letter honor given to recognize awarded for the contributions made to the Company-w contributions Casio company's business Improvemen made for the operations. progress of 1989 Renaming of the Consumer calculators. Letter of Commendation Section to the Customer Service Office, which was set up in each of the geographical areas within Japan.

2 on to the Society by Creating Innovative Products, nships with Its Stakeholders.

1991 Release of Name Land (KL-1000), a label printer 2000 ● Development of VeriPat, a 1992 Release of BP-100, a wristwatch-type blood fingerprint verification pressure monitor. algorithm. 1994 Start up of a TFT LCD factory in Kochi Cashio ● Successful research and Co., Ltd. development of small high- Casio Tone 1995 ● Release of QV-10, the first performance fuel cells for EXILIM EX-S1 digital camera in the world mobile devices. with an LCD monitor. ● Release of Wrist Camera, a ● Release of Cassiopeia wristwatch-type digital (MPC-101), a hand-held PC camera. installed with WIN98. QV-10 2002 Release of EXILIMEX-S1, the 1996 Release of DQD-10, a radio- thinnest wearable card-sized TR-2000 controlled clock. camera in the world. Cellular Phone with 1997 Release of the Japanese version of Cassiopeia in 2003 ● Release of au's first cellular a Built-in Camera the domestic market. phone with built-in 2.0-mega for au 1999 ● Release of the first GPS watch. pixel camera. ● Release of C303CA, a cdma One-compatible ● Development of a fingerprint verification device for cellular phone with water and shock resistance. mobile devices. G-SHOCK ● Entry in the data projector market. 2004 Establishment of Casio Hitachi Mobile Communications Co., Ltd., a joint-venture cellular phone company with Hitachi, Ltd. 2005 Collaboration with Renesas Technology Corp. on semiconductor device packaging technology. Contributing to Enrichment of People's Lives All Over the World Through Creation of Innovative Products That Capitalize on Digital Technology.

1990 2000

Engagement in Environmental Conservation Activities and the Creation of Environmentally Conscious Products in an Effort to Contain Environmental Impact that Accompanies Production Volume Increases.

1990 Honorary citizenship granted to Mr. Kazuo Kashio, 2000 Completion of ISO14001 certification at all domestic the company president, by the City of Tijuana, manufacturing sites and four of Casio Computer's Mexico, where the company operates a factory. sites.

1991 Establishment of Casio Environmental 2001 ● Start of Casio Green Products 30 (C.G.P.30). Conservation Committee. ● Recycling of secondary rechargeable batteries The First Casio World Open initiated. 1993 ● Adoption of Casio Environmental Charter and Casio Voluntary Plan for the Environment. 2002 ● Three Casio sites, consisting of Kofu Casio (head ● Use of specified CFCs and 1, 1, 1- office and Ichinomiya factory) and Casio trichloroethane discontinued. Micronics (Yamanashi), achieve zero emissions (less than 1% landfill). 1997 ● Casio Groups environmental activities published Casio Science Promotion on Casio Website. ● Launch of a program to recover and recycle end-of- Foundation Inauguration ● Yamagata Casio becomes ISO14001 certified. life personal computers and other information Party processing equipment sold to corporate customers. ● Kochi Casio awarded the Natural Resources and 1998 ● Casio Korea becomes ISO14001 certified. Energy Agency Director-General's ● Establishment of Casio Code of Conduct. Commendation for Excellence in the Energy Management at a Factory (in the Electricity 1999 ● Establishment of "Clean & Green 21" Initiative, a Department). Casio Group-wide environmental action plan. Company-wide Quality ● Establishment of Green Procurement Guidelines. 2003 ● Corporate Reform Project initiated. Improvement Campaign ● Initiation of tape cartridge recovery from ● Establishment of the Charter of Creativity for electronic stationary products sold to corporate Casio. customers. ● Revision of Casio Code of Conduct. ● Adoption of a corporate officers system. ● Establishment of Casio Common Commitment. ● Publication of the Environmental Report 1999. ● Recovery of end-of-life home personal ● Participation in Eco-Products 1999. computers initiated.

2004 Creation of CSR Operations Section and CSR Committee.

3 Introduction

To Continue to be a Corporation Counted on and Trusted by All Stakeholders.*

Casio's foundation originates in the invention of the first relay-type calculator in the world 1957, a goal that had been set by the Kashio brothers in the days when only European- and American-style mechanical calculators were available. This invention, which became the basis of digital products and underwent numerous technological innovations, has contributed to wide-ranging office efficiency improvement in the business world since the years of steep economic growth in Japan. Furthermore, it bore fruit in the form of a variety of new digital products to hit the global market, helping Japan become the nation buoyed by electronics along the way. The progress attests to the solidity of the legacy left by Toshio Kashio, the company founder - his unwavering belief in "Creativity and Contribution." It is also the history of Casio that has met the challenge of each period and the society by putting to practice the credo of "contribution to the society through creation of innovative products."

Today, sustainable growth of the society is called for while questions are raised of corporations' social responsibility. Casio recognizes that its primary duty is to make contributions to the society through creation of innovative products while using as the pillar of spiritual support this founder's belief, which continues to be at the base of the common commitment of conduct for our employees and our corporate culture. At the same time, we continuously ask ourselves how we might best fulfill out duties to our stakeholders and endeavor to reach our goals.

* All Stakeholders: Include customers, business partners, investors, shareholders, employees, community residents, NGOs, NPOs, mass media, financial institutions, researchers and government bodies.

4 Overview of Casio Group Operations Electronics and Electronic Components and Others Constitute the Two Business Segments of the Casio Group. We Create and Bring to the Global Market Products that are "Compact, Lightweight, Slim, and Energy Efficient."

Casio Group's Operations

The Casio Group consists of Casio Computer Co., Ltd., its 53 Breakdown of Sales by Category consolidated subsidiaries and 6 equity-method affiliates (as of March Electronics Components 2005). The Electronics Segment and the Electronic Components and Others and Others Segment Others Segment comprise the Group's two business groups. The 5.9% 19.9% Electronics Segment includes four categories, consisting of Consumer, Electronic Component Category Electronics Segment Timepieces, MNS (Mobile Network Solutions) and System Equipment. The 14.0% 80.1% Electronic Components and Others Segment is made up of two System Equipment Category Consumer Category categories, namely, the Electronic Components Category and the Others 8.8% 35.5% Category. Each category is responsible for development and production MNS Category Timepieces Category through sales and services. 23.5% 12.3%

Electronic Components Electronics Segment and Others Segment

■ ■ Consumer Category ■ Timepieces Category ■ Electronics Components Category ● Main Products: Main Products: Main Products: Electronic calculators, Label printers, Digital watches, Analog watches, Clocks LCDs, BUMP processing consignments, ■ Electronic dictionaries, Electronic musical TCP assembly and processing consignments, instruments, Visual-related products, Carrier tape ■ Digital cameras ■ ● ■ ■ ■ ●

A Digital Camera An Electronic Dictionary A Solar-Powered Radio-Controlled Watches COF TFT LCD module ■ ■ ● ■

● ■ MNS Category ■ System Equipment Category ■ Others ■ ● ● Main Products: Main Products: Main Products: ● ■ Cellular phones, Electronic cash registers (including POS), Factory automation, ■ ● Handy terminals Office computers, Page printers, Molds, Toys, etc. ● ● Data projectors

■ ● Handy terminals cell phones Data Projector Page Printer ▲ ■ ● ●

● Company Data of Casio Com- Changes in the Consolidated Business Results (In millions of yen) ● (as of March 31, 2005) ■ ● puter Co., Ltd. FY2000 FY2001 FY2002 FY2003 FY2004 ▲ ■ ● Registered Name: Casio Computer Co., Ltd. Sales 443,930 382,154 440,567 523,528 559,006 ● Established: June 1, 1957 ■ Head Office: 6-2, Hon-machi 1-chome, Domestic 269,536 222,684 268,601 299,224 336,363 ■ Shibuya-ku, Tokyo Overseas 174,394 159,470 171,966 224,304 222,643 ■ President: Kazuo Kashio ▲ Paid-in Capital: ¥41,549 million Operating Income 17,905 ▲10,418 17,914 27,491 39,040 ● Employees: 3,131 (non-consolidated) Total Assets 445,883 449,224 459,113 496,039 495,743 12,140 (Consolidated) ■ Consolidated Companies Shareholders' Equity 162,375 134,317 131,957 144,403 162,271 ■ (Domestic and Overseas): 53 companies Capital Investment 30,278 15,737 11,168 16,213 21,000 ■ Equity-method Affiliates ■ Employees 18,119 14,670 11,481 11,637 12,140 (Domestic and Overseas): 6 companies ■ ● ■

5 Casio Group Network

To deliver products to customers in all parts of the world, Casio has Breakdown of Sales by Region development, manufacturing, and sales centers all over the world with

concentration in four major regions, consisting of Japan, North America, Asia and Other Europe and Asia. R&D and electronic component manufacturing are done in 18.1% Japan whereas other manufacturing facilities are located mainly in Asia. As for Europe overseas sales, Casio, Inc. takes charge of the North American market, while Domestic 13.4% Casio Electronics Co., Ltd., Casio Europe GmbH and Montres Casio France 60.2% handle European sales. In other regions, agencies are appointed. Direct and North America indirect exports are made to these markets. 8.3%

Overseas Manufacturing and Sales Organizations

■ Relates to Sales and General ■■■ ● Relates to Manufacturing and R&D

■ Casio Europe GmbH

■ Casio Electronics Co., Ltd.

■ Montres Casio France S.A. ● Casio Korea Co., Ltd. ■ Casio, Inc. ■ Casio (Shanghai) Co., Ltd. ■ Casio Canada Ltd. ● Casio Taiwan Ltd.

■ Casio Electronics (Shenzhen) Co., Ltd. ■ ● Casio India Co., Pvt. Ltd. ■ Casio Computer (Hong Kong) Ltd.

● Casio (Thailand) Co., Ltd ■■■ ■ ● Casio Electronics (Zhongshan) Co., Ltd. ● Casio Electronics (Guangzhou) Co., Ltd. ● Casio Singapore Pte., Ltd. ■ ■ ● Casio Electronics (Zhuhai) Co., Ltd. ● P.T. Asahi Electronics Indonesia ● Jiu Shui Keng Casio Electronics Factory

Manufacturing and Sales Organizations in Japan

■ Relates to Sales and General ● Relates to Manufacturing and R&D ▲ Other Affiliates ■ Casio Computer Co., Ltd. - Head Office ● Casio Computer Co., Ltd. ● Yamagata Casio Co., Ltd. - Hamura Research & Development Center ● Casio Computer Co., Ltd. ● Casio Electronic Manufacturing Co., Ltd. - Hachioji Research & Development Center ■ ● CCP Co., Ltd. ▲ Casio Techno Co., Ltd. ■ ● Casio Micronics Co., Ltd. ● Kochi Casio Co., Ltd. ■ Casio Information Systems Co., Ltd. ■ Casio Soft Co., Ltd. ■ Casio Electronic Devices Co., Ltd. ▲ Casio Support System Co., Ltd. ● Casio Hitachi Mobile Communications Co., Ltd. ■ Casio Communication Brains, Inc. ■ Casio Entertainment, Inc. ■ Casio Marketing , Inc. ■ Casio Information Services Co., Ltd. ■ Casio I-net Solution Co., Ltd. ● Kofu Casio Co., Ltd. ■ Casio Business Services Co., Ltd.

6 Message from Top Management Ensuring that the World Can Always Rely on Casio with Confidence.

Creativity and Contribution

Casio’s corporate creed, “Creativity and Contribution,” expresses our commitment to bettering people’s lives by creating innovative products. We believe that the Casio spirit of “Creativity and Contribution” is clearly manifest in the many highly original, hit products we have developed over the years—from the CASIO 14-A, the world’s first fully electric calculator, to the Casio Mini personal desktop calculator, the Casiotone digital keyboard, and the G-SHOCK shock-resistant wristwatch, or the QV-10, the world’s first digital camera with a built-in liquid crystal monitor, and most recently, the EXILIM wearable card-size camera. All of these products tapped into universal needs, broke new ground in performance and functionality, and generated whole new categories of consumer demand. But best of all, they made all these benefits easily accessible to all sorts of people. They surpassed customer expectations and, quite literally, astonished people with what they could do. New lifestyles and cultures sprung up around the products, and people’s lives were enriched as a result. Building on years of successful technology development, Casio today is strategically focused on its core competence in “compact, lightweight, slim and energy efficient” technologies. Products built around these principles have the added merit of environmental responsibility. In every aspect of our business activities, we strive to limit environmental impact and conserve the world’s precious resources.

Committed to Social Responsibility as a Company, as Individuals Kazuo Kashio President and CEO As we look out on the future, we consider protection of the global environment and continuous social progress to be indispensable conditions of continued corporate growth. The truly responsible corporation, in our view, carefully addresses all three elements of its obligation to society contributing to a healthy economy, society and environment. A company must not only strike the right balance among these vital concerns; it must also ensure that its efforts to address them are thoroughly built into its daily operations. Corporate social responsibility (CSR) should never be an extraneous effort, but an intrinsic part of the business. At Casio, we understand that this level of CSR cannot be achieved merely by constructing mechanisms and systems

7 that satisfy formal requirements. The key factors are the Responsibility to the Global Environment corporate culture and the mindset of each and every Casio Casio will continue to raise its Green Product ratio by executive and employee CSR is a matter of attitude, a capitalizing on its core competence in “compact, lightweight, commitment in our everyday work. slim and energy efficient” technologies. We will continue to Recognizing the importance of getting to the heart of the meet global environmental standards and regulations.We will matter, we recently undertook a company-wide project to do our part in combating global warming by working to reduce reframe the meaning of our corporate creed of “Creativity and energy consumption group-wide. Contribution” in the most contemporary terms and underscore our commitment, as Casio people, to social responsibility. As Responsibility to Employees a result, in 2003 Casio adopted “The Charter of Creativity for Casio will offer employment opportunities fairly and without Casio,” and the “Casio Common Commitment.” Every Casio discrimination on the basis of gender, creed, religious faith, employee now carries a personally signed card that shows his ethnicity, social class or physical disability. We will strive to or her commitment to the Charter and the Common build a corporate culture which offers everyone the joy of Commitment and serves as a constant reminder of the taking on the challenge of creating value. Further, we will take content of the two documents. steps to ensure that our work environments enable employees In an organizational step, we created the dedicated CSR to meet the requirements of both the job and raising a family, Operations Section in April 2004, tasking it with assessing looking forward to the implementation of Japan’s new Law to current status and determining future initiatives to enhance Promote Measures to Aid the Rearing of the Next Generation. CSR management and raise awareness. Building on this, we formed the CSR Committee in December of that year. The Responsibility to Society as a Whole CSR Committee is comprised of directors and auditors, and Casio’s social contribution programs prioritize work in the deliberates on a variety of subjects relating to CSR. We will fields of environmental conservation, education, culture and continue to work to enhance both employee awareness and the arts, academics and research, and communities. Looking the organizational structure to ensure Casio’s CSR ahead, we plan to step up efforts particularly in the areas of management system is highly effective. We are determined to environmental conservation and education of children, in a see that the Casio Group continues to live up to society’s desire to contribute to the long-term welfare of society by expectations and prove itself worthy of trust. assisting the newest generation.

In all of these actions, we will continue to set and execute voluntary goals. Our goal is to respond sincerely and CSR Management at the Casio Group sensitively to the needs of society always working to build relationships characterized by mutual respect and trustwith our stakeholders. In our ongoing pursuit of optimum CSR management across the broad field of social responsibility, we are focusing on enhancing the Casio Group’s responsiveness to stakeholders by addressing the varying concerns and priorities they have Invitation to Dialogue with a focus on each stakeholder group. We would like to give an overview of our commitments here. Here, we have given only a brief outline of the convictions that Responsibilities to Customers, Business Partners and direct Casio’s activities. We hope that this report, which covers Shareholders/Investors fiscal 2004, will be helpful to you in better understanding To stay one step ahead in today’s ever more thoroughly Casio’s efforts. Needless to say, the report does not attempt to networked world, Casio will optimize global supply chains to present every detail. Rather, it is our desire that it would serve meet demand in various regions of the world. We will press to further stimulate our dialogue with, a very important source forward with R&D in preparation to meet next-generation of guidance on our future initiatives. We invite you to share demand, strengthen intellectual property strategies and your comments and opinions with us. emphasize high added value in business management.

8 Discussion on CSR

“How do we channel CSR to genuine activities instead of letting it be a fad?” This is one of the most critical questions that face corporate management today. In this report, we invited Mr. Mita, the chairman of the Sustainable Management Forum of Japan,*1 a non-profit organization, and two additional members of the Forum, all of whom have solid visions about the future of the global environment and are active in wide-ranging fields, to have discussions with President and Eexecutive Vice President along the above-mentioned theme.

Promoting “Creation of Goods” that countries. Choosing an action that takes heed of the interest of both Contribute to the Environment and the parties instead of being self-centered is a basic principle for any Society in a Unique Corporate Culture corporation. I take advantage of every opportunity that comes up to discuss these issues at my company. [President / Executive Vice President] [Mr. Mita] Gentlemen, thank you very much for Your company has advocated the concepts of “compact, lightweight, finding time to visit with us today. slim, and energy efficient” in product development since the start of your company. These have direct impact on the environmental issues. I [Mr. Mita, Forum Chairman] think they constitute impressive CSR. I would like to thank YOU for giving us But today, we see safety and health issues being raised in addition your time. to environmental issues when we discuss CSR. Where is the main focus of your company’s technological development today and in Kazuo Kashio, Now let’s get started. Looking at many the future? President and CEO of the latest corporate scandals, whether they are in Japan, the United [Executive Vice President] States or Europe, one cannot help Regarding environment, our “compact, lightweight, slim, and energy wonder if some of these companies efficient” products that we have developed with our core technologies are, have any legitimate corporate culture at without any further modifications, products that heed the environment. all. We would like you to start the We established the Casio Group Voluntary Plan to evaluate and discussion by telling us what your certify Green Products, based on Casio’s own certification criteria. company’s pillar of corporate culture is P30P30 In addition, we have set an action target, which is to raise the and how that pillar is being reflected in sales of Green Products to 50% of total sales in fiscal 2005. This plan is your corporate culture in view of the named Casio Green Products 50. _ P40P40 Yukio Kashio, Executive Vice President and current development in our society. As for health, we focused on the fact that wristwatches are worn at Representative Director all times and that they are more like a part of our bodies. This led to the [President] development and commercial production of watches that can measure First of all, our corporate creed is “Creativity and Contribution.” What this heartbeats and blood pressure. They are thus used as tools of health means literally is that we make contribution to the society by creating management. These products can be used as both portable health products that have unconventional and innovative functions. To make this devices and watches. They can be said to be products that put to use more specific and easy to digest, we have the Charter of Creativity for wrist technologies and heed both the environment and health. Casio, and the Casio Common Commitment, which are the standards In terms of safety, Casio has developed its proprietary fingerprint that guide our employees as they conduct their everyday tasks. _ P13P13 verification algorithm and encryption technology. These have been Stated in these guides are the commitment asked of our employees installed in such mobile devices as Casio-made handy terminals and to refuse to be confined by the limitations set by common sense in all PDAs. In addition, we have developed fingerprint censors for cell parts of their work and to create the ideals and strive to realize them. phones with a built-in LCD. With these devices, we help ensure They are also asked to contribute to the society through business information security through personal verification. _ P22P22 Apart from activities, satisfy and delight people, and act in ways that strengthen such product development, we are also pressing forward with research bonds of respect and trust with all of our stakeholders. These guides and development of Reformed Methanol fuel cells that are powered by were published in 2003. Today, all of our employees carry a card that clean fuels. P22P22 provides this information and strive to comply with it. We hope to bring these products to commercial production within We supply over 100 million units of our products annually to the next few years if possible by combining them with Green Products countries all over the world. To operate our business on a global scale, that burn clean fuels. the spirit of mutual understanding is indispensable. One must not assert its interest one-sidedly. Instead, we must respect each other’s position [Mr. Mita] and try to find ways for both parties to be fine. Research and development of Reformed Methanol fuel cells must be a I think that the same is true with bilateral relationships between field that requires substantial know-how and technological power.

9 [Executive Vice President] [President] We are pressing forward with this project by gaining the cooperation of I think it was very meaningful engineers in a number of fields both within and outside the company. that employees made sizable Kazutomi Mita, Methanol is used as a fuel for fuel cells. There still are some donations. Chairman of the Sustainable unresolved legal issues in connection with the handling of methanol. We Management Forum of Japan anticipate the easing of the regulations regarding handling of methanol [Mr. Mita] to occur over the next few years. It really showed the real A 1961 graduate of the University of Tokyo. A philosopher, ethicist, environmental We are considering fuel cells introduced Casio’s core technologies power. expert, and medical researcher. After working as the chief editor of the that are compact, lightweight and slim. Today, large fuel cells are being There is a law that disasters Kokusai Shicho magazine, Mr. Mita set up a number of public interest corporations considered for automobile and video cameras. What we are trying to occur in concentration. and corporate organizations relating to energy conservation and recycling, starting develop are much smaller ones that can fit inside our Casio products. According to one theory, a in 1970, and served as their representative. After serving as an staff of the Ministry of Especially because we make mobile products, we hope to develop new era of colossal upheavals International Trade and Industry, and a cells that can make today’s energy-saving products to have even longer started in 1993, 70 years after researcher for Japan Science and Technology Institute, he has been engaged lives. This is how we would be able to capitalize on our proprietary a disastrous earthquake in research and consulting at universities, hospitals and government organizations in technology. Once such fuel cells are created, we will be making obliterated Kanto area in 60 countries. He is a member of an advisory panel for contributions in a wide range of fields toward the realization of a 1923. When you look back at the Ministry of International Trade and Industry and the Tokyo Metropolitan ubiquitous society. the last ten years, about 20 government, a visiting professor of a earthquakes of seismic universities, and a corporate consultant. He also runs Mita Environmental intensity 6 and above Management Consulting Inc. The MITAMODEL, a model developed as a occurred in Japan alone. technique to rating managements, is well known. Active Participation by Every Employee It is likely that there will be His extensive publications include the “Survey of Actual Waste Disposal by Leads to Greater Contribution to the Society more disasters of all kinds, in Businesses in Tokyo” , “Evaluation of Eco- addition to earthquakes. Business Market” and “Introduction to Environmental Management.” [Mr. Mita] Nevertheless, we have seen In addition to the creation of goods that you just mentioned, which is that government offices and municipalities frequently fail to meet the your true business, as a way to make contribution to the society, there needs adequately at the time of disasters. I think that NPOs, NGOs and is contribution to local communities. I understand that you offered part corporations are expected to voluntarily take disaster countermeasures of your headquarters’ building for disaster prevention drills for the as part of their social responsibilities. community last year. _ P63P63 I hope to see you expand this concept as a way to make social contributions in the future. Last year and this year, we had earthquakes in Niigata and off the Planting Awareness in All Employees, coast of Sumatra. Has your company taken any steps in response to Including Executives, a Key to CSR Execution such disasters? [Mr. Shinozuka, a Forum member] [Mr. Kobayashi, Director of the CSR I understand that Casio is a corporation that has established its Charter Operations Section] of Creativity and is energetically promoting CSR. I would like to know In connection with the earthquake in what kind of policies Casio has for the future in connection with such Niigata, the Casio Group, jointly with our topics as the incorporation of a mode of governance in which the labor union, solicited donations from function of the board of directors is separated from the execution employees. The company matched the function in a corporation that has established committees, etc., total amount of collection and donated the strengthening corporate governance and risk controls, and increasing Makoto Kobayashi, sum. Employees gave over ¥2.4 million. transparency. Director, CSR Operations Section The company added ¥2.5 million and gave the total sum of approximately ¥5 million through the Japanese Red [President] Cross Society. As for corporate governance, Casio has two external auditors. They As for the earthquake off the coast of Sumatra, the Casio Group objectively audit the management. _ P14P14 Based on the results, they donated ¥5 million through the Japanese Red Cross Society. conduct periodic reviews.

10 Discussion on CSR

As for external directors, we have been looking into the possibility. Moreover, competition between corporation has become very There are, however, some issues to be resolved before we can adopt intense. Only a handful of corporations can survive as winners in any such a system. In essence, sound corporate management requires industry. We work strenuously for survival. The question of how to thorough knowledge of the corporation’s business. Without such grow our business while fulfilling our responsibility to the environment knowledge, it is difficult to run a corporation. and the society is a serious one to tackle. For this reason, we do not have external directors at this point. Instead, we On the other hand, it is a very good thing that attention is focused on have opted to be a corporation that appoints auditors to conduct objective the environment and CSR as the impact of corporations on the society audits, whose results are used in the management of the company. has grown so large. I think that the most important point of management may be to position business growth and promotion of [Mr. Mita] CSR as two wheels of management and push them forward in tandem. The issue about external directors is not necessarily about transitioning into a corporation that has established committees or appointing [Mr. Mita] external directors. It is corporations’ duty to deal with both the environment and CSR. But Various approaches should be considered regarding this issue. Wisdom corporations are desperate for survival. What we have been constantly of all sorts needs to converge to run a corporation. In this connection, my advocating therefore is that it is important for them to convert what they thought is that you should probably consider incorporating the social are obligated to do to their own production power. aspect to a greater degree to boost recognition power.

[President] Continuing to Promote CSR Management in the I quite agree with you. I think that the most important thing is for all of our Future while Focusing on its Impact on the Youths employees, including our executives, to be constantly aware of CSR as they Who Will Be in Charge of the Next Generation carry on their tasks every day, rather than being focused on the formality. [Mr. Ogura, a Forum member] When you look at external auditors in this perspective, it seems Not to change the subject, many of the people who use your questionable as a matter of fact that they have the ability to point out company’s products are young. Issues about youths receive heavy important areas for improvement or make meaningful suggestions. I attention these days, and education of youths is debated. Would you believe that what will be important is that those who are actually in please describe how you have been tackling the issues of educating

I. Reduction of Envi- charge of business operations are well aware of CSR. the youths, who constitute the largest segment of your customers? K. Chemical R. Responsibility T. Occupational ronmental Impact for Consumers Safety and Health B. Corporate on Transport Controls Governance We have created the CSR Committee, whose members are our D. Risk Management executives. We have periodic meetings. P15P15 At these meetings, [President] H. Prevention of L. Countermeasures U. Equal Opportunity Global Warming against Soil Con- tamination all tasks relating to CSR are checked. But unless we ourselves have Such products as G-SHOCK and Baby-G are indeed primarily A. Management E. Information Philosophy Disclosure Q. Community Life and Regional strong awareness and hold solid opinions, ultimately nothing gets designed for and marketed to the young people. Environment V. Harmonization with M. Conversation of Work and Private Water Resources accomplished no matter how many meetings we may hold or how With respect to education of the youths that you just mentioned, we give G. Reduction of Envi- ronmental Impact on P. Succession of good a mechanism you may adopt. factory tours and open our business sites and group companies for visits by Products and Services Regional Culture W. Support of Environ- mental and Social F. Quantitative Data N. Conservation Effort for Suppliers students as extracurricular activities. We also conduct Kids ISO activities. of Material Energy of Biodlversity O. Sustainability [Mr. Mita] We are actively engaged in executing these social contribution programs, and Corporate Culture You are indeed right about that. In many instances, corporations may which are also tied to our environmental education programs. P62P62 establish committees or appoint external auditors, but end up having them only for the formality’s sake. Naturally, such forms are important [Executive Vice President] but it is more important to ensure that contents are given. I am sure We also manufacture electronic musical instruments. Musical there are a number of possible ways to go about it.

[President] Another thing to add is that in the 20th century, we were able to envision the future of a corporation to some extent. In other words, it was possible to run a corporation by relying on the legacies of the past. But now that we are in the 21st century, it is not at all possible to From left: Mr. Shinozuka (a committee member), Mr. Mita (Forum chairman), manage a corporation with past legacies. and Mr. Ogura (a committee member)

11 instruments play an important role in the emotional education of [Mr. Mita] children. We are aware that the sounds that our products produce are I would very much like you to keep pressing forward with that approach very important to the young people, and especially to toddlers and and use it as a feeler for your company’s future growth. Thank you very preschoolers. We are therefore meticulous about creating beautiful much for your time. tones and developing good sound sources. It is not all right to think that “musical instruments for toddlers are toys.” When we manufacture [President/ Executive Vice President] musical instruments for very young children, we work hard to create We thank you very much for your time as well. sound sources that are suitable for their musical education.

[Mr. Mita] Today, the word CSR is used defensively by some corporations in ways that differ from the term’s original meaning. They may set up an impressive ethics committee, and hire a reputable CPA firm to audit their operations. And yet, we see corporate scandals. I think that the basic spirit of CSR is not in preventing corporate scandals or quieting rumors about such scandals but in “noblesse 2 oblige.” * What it means is that a corporation’s CSR speaks for itself *1Sustainable Management Forum of Japan: A specified non-profit organization that provides a forum for theoretical and empirical research for researchers, corporate without the company loudly advertising its CSR efforts. It should management and citizens with a goal of establishing management for sustainability by therefore be helpful for education and improving the society that each combining engineering, business administration and other related sciences with various experiences. The Forum conducts research in a wide range of fields and disseminates corporation firmly holds this basic principle. the results of such research so as to ensure that the findings take root in the society. Since fiscal 2003, Casio has subjected itself to the Sustainability Management Rating, The word “responsible,” which is part of the term “Social which is promoted by the Sustainable Management Rating Institute, an organization that is part of the Forum. Responsibility,” has an origin that means “to have a good response” or The FY2004 Sustainable Management Rating is as follows: “to react to.” The original meaning of “Social Responsibility” is therefore

“the condition of responding reliably to the demand of the society.” It RATING-TREE by MITA MODEL FY 2004 means that any response to social needs must be a sensitive one C. Compliance with J. Resources S. Employment Regulations Recycling Continuity rather than a non-sensitive one. This should hold true in business as

I. Reduction of Envi- well. In this sense, I believe that it is possible to integrate CSR K. Chemical R. Responsibility TT.. OccupaOccupationaltional ronmental Impact forfor Consumers Safety and Health B. CorporaCorporatete on TransportTransport Controls Governance management with the mainstream business management. D. Risk ManaManagementgement H. Prevention of L. Countermeasures U. Equal Opportunity Global WWarmingarming aagainstgainst Soil Con- taminataminationtion [President] A. ManaManagementgement E. InfInformationormation Philosophy Disclosure Q. Community Life and RegRegionalional You are absolutely right. We intend to continue our on-going efforts to Environment VV.. HarmonizaHarmonizationtion with M. ConversaConversationtion of WorkWork and PrivaPrivatete WWaterater Resources accurately grasp our stakeholders’ needs and respond dependably to G. Reduction of Envi- ronmental Impact on PP.. Succession of them by fully staffing such groups as the CSR Operations Section and Products and SerServicesvices RegRegionalional Culture W.W. Support of Environ- mental and Social FF.. QuantitaQuantitativetive DaDatata N. ConserConservationvation EfEffortfort forfor Suppliers the Environment Center. of MaMaterialterial EnergEnergyy of Biodlversity O. SustainaSustainabilitybility and CorporaCorporatete Management Environment Culture Society [Executive Vice President] It is a mandate for us as a manufacturing concern to keep on creating hit products. The CSR concept is important in the development of hit Sustainable products as well. Management Tree For instance, our core competence in “compact, lightweight, slim, and energy efficient” technologies not only has relevance to environmental issues but also lengthens the lives of batteries because Strategy Strategy Excellent Good Acceptable Poor Not Acceptable Not Applicable System of low power usage and lessens the trouble of replacing batteries for Dead No Leaves Result Result Leaves our customers. This is true with solar cells and fuel cells too. Such a Sustainable Management Rating Tree merit helps our products become hit items. *2Noblesse oblige: A basic ethics notion in the European and American societies that As this example shows, skillful incorporation of CSR in our products is those who are in noble positions have corresponding social responsibilities and duties to fulfill. In this discussion, the term was used to mean that corporations have social a way for us to create hit products. This is something that I keep finding. responsibilities and duties that they are expected to shoulder.

12 CSR Management The Corporate Creed and the Charter of Creativity for Casio We are making a concerted, company-wide effort to implement CSR management under the banner of the Charter of Creativity for Casio, which clearly articulates the meaning of Casio’s corporate creed of “Creativity and Contribution.”

The late Tadao Kashio, founder of Casio, is to contribute to society —or in essence, the affairs from business, environmental the one who established the creed of fulfillment of its social responsibility. conservation and social contributions. The “Creativity and Contribution” to guide the Toward this end, Casio initiated the revision was made to ensure that the Code’s company’s business activities. He wanted to Corporate Reform Promotion Project in April rules dovetail with the commitments in the set the company on a path of contribution, to 2003, which resulted in the adoption of the Charter. Casio’s corporate creed, Charter, ensure that Casio would always enrich Charter of Creativity for Casio on June 1, the Common Commitment and Code are made people’s lives by creating innovative, anniversary of the company’s establishment. available to all, both in and outside of the unconventional products. In recent years, Going one step further, in December 2003, company, via the Casio website and the society has paid more and more attention to we established the Casio Common Casio Group’s intra-net. the idea of corporate social responsibility Commitment, which stipulates specific (CSR). Companies are expected to standards of conduct for each chapter of the Corporate creed implement corporate governance that Charter, to ensure that all employees have a ensures the soundness of management practical understanding of our contemporary systems as well as corporate management commitment to “Creativity and Contribution.” that consciously addresses the various types In addition, we revised the Casio Code of of stakeholders. In light of these social trends, Conduct (originally established in October Casio realized that it was essential to give all 1998) P16P16 on July 1, 2003. The Code employees an opportunity to re-examine the of Conduct aims to ensure that employees meaning of “Creativity and Contribution.” The use good judgment in all their actions, and company recognized that maintaining a presents rules that they must comply with strong, contemporary awareness of the spirit throughout the course of their daily activities. behind this creed was the key to sustaining The Code addresses such areas as respect its creative corporate culture and continuing for human rights, separation of personal �

— The Charter of Creativity for Casio and Casio Common Commitment — � The Pledge of Everyone Working for Casio

The “Charter of Creativity for Casio” was established on June 1, 2003, the anniversary of the company’s establishment. It represents a philosophy shared by all Casio employees about unfailing execution of the corporate creed. The Casio Common Commitment stipulates specific standards of conduct that support the Charter. All executives and department managers have signed a pledge to ensure compliance with the Charter and Common Commitment.

First Chapter We will value creativity, and ensure that our products meet universal needs*. [Casio Common Commitment] 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. 2. We will be idealistic in all of our work. 3. We will carry our work through to completion, with a strong determination to take on every challenge that comes our way.

Second Chapter We will strive to be of service to society, providing customers with delight, happiness, and pleasure. [Casio Common Commitment] 1. We will provide people with “limitless inspiration.” 2. We will share a “life of spiritual and material prosperity” with people. 3. We will foster relationships of “respect and trust.”

Third Chapter We will back up our words and actions with trustworthiness and integrity,and work as professionals. [Casio Common Commitment] 1. We will take complete responsibility for all of our words and actions in accordance with all laws and regulations. 2. We will each take responsibility for our results and success, accordingto our individual role. 3. We will strive daily to improve everything we do.

*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.

13 CSR Management Corporate Governance We are constantly striving to strengthen corporate governance , focusing on the priority themes of “speedy decision making,” “proper execution of operations” and “improved transparency of business management.”

■ Board of Directors strict audits by gathering information and Corporate Governance System The board of directors strives to make receiving reports from directors and others, management decisions rationally and and by reviewing resolution documents promptly. Board meetings are attended by relating to important decisions. Casio recognizes that speedy decision making, directors and auditors, who discuss and proper execution of operations and a robust make decisions on important business ■ Internal Audit Department management oversight function that increases issues. The internal audit department performs CSR Management the transparency of management, are extremely audits of various organizations’ operations important factors in achieving business goals ■ Board of Operating Officers to ensure they are in conformity with laws and continuing to raise corporate value. This Meetings of the board of operating officers and regulations as well as internal recognition guides Casio’s ongoing efforts to are attended by operating officers, standards, and conducts evaluations and improve corporate governance. directors and auditors, who deliberate on offers recommendations for improvement. In June 1999, we made a change in our important affairs relating to the execution of Various types of audits, including those board of directors, reducing its size by half, business operations. This mechanism on quality, environment, safety and from 24 to 12 directors. At the same time, we enables smooth implementation of information security, are conducted adopted a system of operating officers to company-wide adjustments and measures. cooperatively with the departments clearly delineate the management oversight principally responsible for these areas, with and execution functions. With the adoption of ■ Board of Auditors audit leadership undertaken by the persons this system, we also built a new corporate The board of auditors consists of three responsible for each respective governance system, which consists of the auditors, two of them external. In organization. operating officer system and an internal audit accordance with audit policies and The internal standards mentioned above system, in addition to the board of directors responsibilities approved by the board of also apply to Casio affiliates, which are and the external auditors. The objective, role auditors, auditors attend board of expected to take proper action to address and membership of each of these bodies are directors’ meetings and meetings of the various types of risks. described below. operating officers. In addition, they perform

Corporate Governance System Diagram

Appointment and Discharge Board Audit of Auditors

Audit

Appointment Appointment Business General and and Board Oversight Divisions Meeting Discharge Board Oversight President Oversight of and of of Operating Directors CEO Affiliate Shareholders Officers Companies

Accounting Audit Audit Audit

Appointment and Discharge Accounting Accounting Audit Internal Audit Department Auditor

14 CSR Management Implementation of CSR Management The CSR Committee, chaired by the president of Casio, provides an effective mechanism for ensuring that we fulfill our social responsibility.

various themes related to CSR. situation and determined tasks for the future, CSR Operations Structure to build a foundation for the future of CSR ■ CSR Operations Section management at Casio. In addition, the Created in April 2004, the CSR Operations Section began its work to educate all The commitment to fulfilling our Section reports directly to the company employees about CSR and to build a system responsibilities to all of our stakeholders not president. Its mission is to ensure Casio to promote CSR. Looking ahead, it will only to the customers who purchase our earns the trust of its various stakeholders by continue to strengthen the CSR products, but also to our business partners, fulfilling its duty, as a sincere corporate implementation system and execute specific shareholders and other investors, employees citizen, to provide products and services that tasks as planned, while monitoring changes and the members of the communities where help make people’s lives more fulfilling. in the business environment and the situation we do business— is deeply rooted in Casio’s In line with this mission, the CSR Operations of the Casio Group as a whole. corporate management practices. Section works to ensure that all employees We understand, however, that the are thoroughly familiar with the Charter of ■ CSR Committee understanding and initiative of every Creativity for Casio, to see that a strong The CSR Committee, created in December employee is essential to maintaining strong sense of corporate ethics pervades the 2004, is assisted administratively by the CSR relationships of trust with stakeholders. Truly company, and to build a corporate culture Operations Section. It deliberates on various effective CSR management ensures that that encourages people to take the initiative CSR-related themes and policies, as well as everyone at Casio performs his or her daily in contributing to society. The Section is also the CSR operations structure itself. work with a full awareness of Casio’s varied responsible for such CSR-related matters as Decisions made by the CSR Committee corporate responsibilities. Toward this end, risk management and information security, are executed by relevant departments or ad Casio Computer established the CSR which until recently were handled by hoc thematic project teams. At present, Operations Section in April 2004, tasking it individual departments, and is working to projects on compliance, risk management, with realizing company-wide implementation implement a group-wide approach to these and personal information protection are of full-fledged CSR management. Then, in issues. It also discloses results and plans at underway. The projects aim to ensure that December 2004, we created the top-level appropriate times via proper channels. best practices will be firmly established CSR Committee to deliberate on specific In fiscal 2004 the first year of the Section’s throughout the company in each of these policies and strategic matters regarding the activity, it performed analyses of the current areas. � CSR Operations Structure

Board of Directors

CSR Committee Environmental Conservation

Product Quality and Safety CSR Operations Section Material Procurement

Thematic Projects Distribution Corporate Reform Pro- Stakeholders P16 motion PJ (Compliance) Information Security

Risk Investor Relations Management PJ P17 Accounting and Bookkeeping Personal Information P18 Protection PJ* Safety and Health

Human Resource and Labor Affairs *The Personal Information Protection Project was reorganized in March 2005, becoming the Personal Information Protection Office.

15 CSR Management Compliance Every Casio employee has committed him or herself to act responsibly in compliance with the Casio Code of Conduct, which is based on the Charter of Creativity for Casio.

department heads in an effort to further Construction of a Employee Hotline Compliance system strengthen the compliance system. Further improvements will continue to be made in the future. Casio treats compliance as a vital theme for Similarly, the Casio Code of Conduct will Casio has an employee hotline to ensure that � CSR management. The Charter of Creativity for be subject to on-going review to ensure it any acts that are in violation of the Casio Casio, established on June 1, 2003, lays the continues to reflect the opinions of our Code of Conduct can be reported foundation for all of Casio’s activities to ensure stakeholders. anonymously and quickly corrected. CSR Management compliance, together with the Casio Common Also, via the intra-net, any employee can Commitment and Casio Code of Conduct. Employee Education seek advice or express his or her opinions on The Corporate Reform Promotion Project a variety of issues relating to the Code played a central role in the articulation of without these commitments. As part of the Project, suffering any we printed cards that describe the Charter, In order to ensure that all employees of the negative and called upon all employees to sign and Casio Group are well informed about consequences carry their cards at all times. The Project also compliance requirements and follow them as on the job.

put in place mechanisms for monitoring well, Casio has launched CASIO Style, an Employee Hotline employees compliance. intranet site for its employees. New CSR- In June 2004, we conducted an employee related information on topics such as questionnaire-type survey and interviewed management, environment and social responsibility is made available regularly at the

Charter of Creativity for Casio (employee card) site. CASIO Style

Casio Code of Conduct (Excerpts)

Employees of Casio Computer Co., Ltd., and its group companies are of our business to offer preferential treatment to specific expected to conduct themselves always in an orderly manner, both in customers, nor be entertained or given presents in return for such business and in their private lives. This Code of Conduct is meant to assist preferential treatment. We will refrain from all anti-social activities, each employee to act responsibly as a member of society, thus actively clearly separating our personal affairs from business. contributing to social progress. 2-4 Treatment of Confidential Information We will understand the standards for the management of 1. Basic Policies confidential information and will treat the company's information We will conduct ourselves with pride and responsibility as members of with greatest care. the CASIO Group, which aims to satisfy and delight customers by 2-5 Environmental Conservation developing and marketing high-quality products and services in line with We will be aware of the importance of environmental conservation the corporate creed of "Creativity and Contribution." At the same time, and will voluntarily and aggressively promote daily activities to we will conduct our daily activities responsibly as members of society. protect the global environment. 2-6 Product and Service Quality 2. Code of Conduct We will constantly strive to improve in order to develop and provide 2-1 Compliance with Laws and Regulations products and services that function reliably and are of premium We will act in compliance with social norms as members of society, quality to customers. understand the laws and regulations, both external and in-house, 2-7 Disclosure of Corporate Information that we are required to comply with in our business, and will act in We will aim to win greater social trust in our open and transparent a sincere and orderly manner. management by disclosing corporate information appropriately 2-2 Respect for Human Rights and in a timely fashion, and promoting communications with all We will respect others, valuing cooperation without any our stakeholders, including shareholders. discrimination. We will respect the human rights of all people, 2-8 Maintenance of Social Order eliminate any discriminative words, actions or harassment related to We will respond firmly to anti-social activities for the sake of stability gender, belief, religion, race, social status or physical abilities, and will and maintenance of social order. protect mutual privacy. 2-9 Contribution to Local Communities in which We Operate 2-3 Separation of Personal Affairs from Business We will contribute to the sound development and harmony of local We will not use the authority or position we are given in the course communities in our daily activities as members thereof.

16 CSR Management Risk Management Casio has adopted a multi-faceted approach to assessing the risks associated with its business activities, and takes preventive measures using the “Plan-Do-Check-Act” cycle.

Approach to Risk Management System Creation of a Crisis Risk Management Management Manual

Casio has endeavored to prevent potential Casio has formed the Risk Management Casio has issued a crisis management manual risks from materializing in each of its Project Group within the CSR Committee to that addresses risks that have a high probability departments, while also constructing a serve as a vehicle for practical enhancement of having a serious impact on the company’s company-wide crisis management system to of risk management. business activities and society as a whole. ready itself for emergency situations. The project group maintains an overall Specifically, the manual provides In the aftermath of the recent spate of inventory of risks, which previously had been instructions in each of the following basic corporate scandals in Japan and elsewhere, controlled only at the department level, and areas for different types of crisis situations: stakeholders are paying more attention than assesses and analyzes them for the (i) Ensuring the safety of employees and ever to the fairness and transparency of company as a whole. their families corporate management. Casio recognizes The project will also put into place a new (ii) Protecting corporate assets the critical business necessity of creating a management program that encompasses (iii) Ensuring continuation of business company-wide environment that ensures everything from risk prevention to proper activities. risks associated with its business are response and restoration should a risk (iv) Securing the trust of stakeholders. identified, predicted and prevented, or dealt materialize. The program will build on and The manual was formulated with a focus with and remedied should they materialize. enhance the existing framework. on providing information to all parties affected Casio is working to ensure its own internal by a crisis and taking prompt and control system takes into consideration both appropriate steps at an early stage, in Japanese and overseas standards, laws and cooperation with local communities. regulations, such as the JISQ2001— the The manual is revised from time to time to Japan Industrial Standards’ guidelines on risk reflect changes in the business climate. All management system—and the Sarbanes- stakeholders are thoroughly informed upon Oxley Act in the United States. each revision. �

Risk Management System

On-going improvement Plan Action Establishment of risk management policies Review by the CEO Identification Establishment of a risk management plan Predication • Risk analysis and assessment Prevention • Establishment of targets Implementation of remedies Countermeasures • Establishment of a and improvements • management program Restoration

Do Check Implementation of risk management Performance evaluation and assessment of the • Program execution effectiveness of the system • Management and control

17 CSR Management Personal Information Protection Casio makes every effort to ensure that personal information is protected and managed in accordance with company policies.

ensure that all employees and officers are system for safe and proper handling of Philosophy on Personal Information Protection familiar with them. personal data, the company has been pressing forward with efforts to receive Personal Information Privacy Mark* certification. Casio considers proper management of the Protection System In fiscal 2004, all personal data held by the personal information that we receive from company was inventoried, rated, and customers and other stakeholders in the course Casio appointed an executive vice president subjected to a risk analysis, meeting the of our business activities to be one of our key to the position of Chief Privacy Officer and requirements of the JISQ15001 relating to CSR Management social responsibilities, and constantly works to constructed a system for personal information compliance programs. Based on the results ensure the security of personal information. protection under his direction. With the of this analysis, we established various rules In preparation for the full implementation of support of top management, all employees and took additional steps. These steps Japan’s new Personal Information Protection and officers are being urged to cooperate with included education for all employees and Law in April 2005, Casio launched the measures to protect personal information. officers, tighter control of access to the Protection of Personal Data Project in June In March 2005, we set up the Personal information system and log control, and re- 2004 to ensure that all employees of the Information Protection Office, which inherited examination of contracts with the business Group would be equipped to comply with the the functions of the Personal Information partners with whom we have agreements on law, and started work to establish specific Protection Project. Three positions were the handling of personal data. policies and mechanisms toward that end. created in the Office to handle customer Based on the results of an internal audit This was followed by the establishment of service, information systems and employee performed in February 2005, we determined Casio’s Policies on Personal Information education, respectively. In addition, two that the measures we had implemented Protection in February 2005, as guidelines for leaders were appointed in each department to brought Casio to a level that would qualify for the safe and proper protection of personal data. promote efforts relating to personal the Privacy Mark. We then applied for Privacy Based on these overall policies, we then information protection at the department level. Mark certification in March 2005. established the “Personal Information Protection Basic Rules,” “Personal Information Protection Privacy Mark Certification *Privacy Mark: A program in which the Japan Information Processing Development Corporation, a Implementation Rules,” “Internal Control Rules,” public-service foundation, evaluates the adequacy of corporate protective measures related to the handling of “Safety Measures Rules,” “and “Emergency personal data, and certifies those which are found to have adequate protective measures in place. Certified Response Rule,” and are continuing to strive to As part of Casio’s drive to strengthen its a corporations are permitted to display the Privacy Mark.

Personal Information Protection System Policies on Personal Information Protection

1. Establishment and on-going measures, such as information security President and CEO improvement of a compliance program measures, in order to ensure the safety The company has established, and accuracy of personal data. implements and maintains a compliance Furthermore, the company implements program (including these policies, the proper measures to prevent and rectify Officer in charge CPO* (Chief Privacy Officer) “Personal Information Protection Basic unauthorized access to personal data, of audits Privacy Information Manager Rules” and other rules and regulations) as well as its loss, destruction, alteration for the purpose of safely and properly or leakage. protecting personal data. The company 4. Compliance with laws, regulations and other rules Personal Information also improves this compliance program Protection Office on an ongoing basis, using such When handling personal data, the occasions as internal audits and reviews company complies with laws, regulations by the President and CEO. and other rules that apply to such 2. Handling of personal data personal data. Person responsible Person responsible Person responsible The company has established a system 5. Respect of the rights of data subjects for for for of control to adequately protect personal The company respects the rights of the customer service information systems education information, and appropriately collects, subjects (individuals) whose personal uses and makes available to other data it has knowledge of. When such parties such personal data. This is done individuals request disclosure of in accordance with the “Personal information about themselves, correction Contact for matters Person responsible for departmental personal information management Information Protection Basic Rules” and or deletion thereof, or refuse permission relating to personal information other rules and regulations, and by for its use or release, we comply with taking into consideration the nature and any such reasonable request. Person in charge of departmental scale of operation of individual personal information management departments. Kazuo Kashio, President and CEO 3. Implementation of safety measures Casio Computer Co., Ltd. The company implements safety February 1, 2005 *CPO (Chief Privacy Officer)

18 Chapter I Market and Casio Profits reached record high levels while the globalization of the market economy continued to progress. Casio will continue to manage its business so as to be recognized and trusted by the market while nurturing its relationship with its stakeholders.

Responsibilities to Our Shareholders and Other Investors ● Optimum Profit Returns Responsibilities to ● Sound Information Disclosure Our Customers Shareholders and ● Stable Supply of Products� Other Investors Investment ● Research and Development of ● Next Generation Products ● Quality Assurance Customers Product Purchase

Supply of Raw Materials Suppliers Responsibilities to Our Business Partners ● Construction of Strong Partnership

19 Market and Casio

Responsibilities to Stable Supply of Products Our Customers We endeavor to strengthen the global supply chain to respond to rising demand 1 for products against the backdrop of digitalization and network expansions.

Philosophy about Policy Decisions on shipment of our products to adjust flexibly Stable Supply Production and Supply Systems to changes in demand. In fiscal 2005, we plan to expand the application of this method horizontally to the manufacturing Supplying products in a stable fashion is Casio holds Production Site Policy Meet- processes of our other major products, one of the most basic responsibilities of a ings as necessary and makes decisions on such as electronic calculators, digital cam- manufacturer to its customers. To respond policies regarding newly opening, integrat- eras and watches. to changes in demand and provide prod- ing or closing production sites. In accor- *Weekly Review Production Method: A new pro- ucts in a stable fashion, it is important to dance with these policies, Business Plan duction method that aims to realize produc- optimize the entire supply chain, starting Meetings are held every half-yearly period tion and shipment that respond flexibly to with the stable procurement of raw materi- by the Group companies in manufacturing changes in sales. In this method, production planning, which is conventionally performed als and including the construction of a pro- to make decisions on establishing specific once every other week, is done weekly, and duction system, improvement of a distribu- production and supply systems, and pro- the lead time from the creation of a sales and purchasing plan to shipment is shortened to tion system, and establishment of duction lead time for each product that five weeks. wholesale and retail networks. they are responsible for. Based on this point of view, Casio endeav- Under the current production and supply ■ Production System of Electronic ors to strengthen its global supply chain by systems of Casio, the Electronic Component Component Products upholding the following four policies: Division consists of four Group companies Casio Micronics Co., Ltd. plans to double and outside suppliers whereas the Electron- its current capacity for the manufacture of

ics Equipment Division consists of 11 Group semiconductor-related parts by the begin- Market and Casio Policies about Stable companies and outside suppliers. ning of 2007, projecting continued growth Product Supply of demand in the markets of digital home 1. Streamlining of the supply chain (part ■ Production System of Electronics electronic equipment, including flat-screen vendors – factories – distribution and sales departments) with the introduc- Equipment Products TV sets, personal computers and cell tion of supply chain management Today, demand for electronic dictionaries is phones. (SCM) and the extensive application of IT. growing at a phenomenal pace not only in In January 2005, Casio Micronics bought 2. Construction of a good relationship Japan but also in markets all over the a semiconductor plant and approximately with suppliers so as to increase effi- world. In light of this trend, Casio is step- ciency and stabilize raw material pro- 7,000 square meters of land in Ome, Tokyo curement. ping up to strengthen its production and from a company in the Renesas Technolo- 3. Construction of a decentralized pro- supply systems at Jiu Shui Keng Casio gy Corp. Group. In preparation for its start- duction system that takes into ac- count such production risks as natural Electronics Factory, and Casio Electronic up during fiscal 2005, Casio Micronics is disasters. (Construction of a decen- (Zhongshan) Co., Ltd., which are the core tralized production system for each pressing forward with the establishment of manufacturing item. ) Casio Group. investment is planned at the adjacent Ca- 4. Construction of an optimum produc- tion system that corresponds to regio- Specifically, we adopted the “Weekly Re- sio Micronics’ headquarters and its factory nal demand characteristics (labor view Production Method*” in 2004. Using to increase its 200-mm wafer production cost, technological prowess, parts supply capability). (Japan: high func- this method, we shortened the parts pro- capacity. At the company’s Yamanashi fac- tion products / China: cost-focused products) curement time and the lead time to ship- tory, a capacity increase is planned for the ment, and enabled the production and production of film substrates for driving that are sold to LCD panel makers. Invest- ●Electronics Equipment Division� Production and Supply Systems for Individual Products ■Electronic Component Division ment in these production capacity increa- ●Casio Korea Co., Ltd. ses, including land acquisitions, is expec- ●Yamagata Casio Co., Ltd. Watches ted to amount to approximately ¥13.0 � Watches and cell phones � billion. ●Jiu Shui Keng Casio � Electronics Factory ●Casio Electronic Electronic dictionaries Manufacturing Co., Ltd. ●Casio Electronics Systems (printers) (Schenzhen) Co., Ltd. Parts for watches � ●Casio Electronics ■Casio Micronics Co., Ltd. (Zhuhai) Co., Ltd. Electronic components Electronic musical instruments � ●Casio Electronics (Zhongshan) Co., Ltd. ●■Kofu Casio Co., Ltd. Electronic dictionaries Electronic calculators, LCD and systems ●Casio Electronics (Guangzhou) Co., Ltd. � Watches ■Kochi Casio Co., Ltd. LCD TFT ●Casio(Thailand) ●Casio Taiwan Ltd. ( )� Co., Ltd. Watches Watches ■Casio Singapore Pte. Ltd. LCD Casio Micronics Plant at its Headquarters (Ome City)

20 Market and Casio

Responsibilities to Research and Development of Next Generation Products Our Customers We press forward with the research and development of creative technologies and 2 products with an eye toward the “Next Generation.”

ing on its digital technologies that originated in “Department-based Development,” which han- Research and electronic calculators but whose application dles product development that is directly linked Development Policies has expanded to such areas as the to individual departments. “digitalization of the sound (electronic musical Guided by its management philosophy of instruments, etc.)” and “digitalization of charac- ■ Research and Development Sys- “Creativity and Contribution,” Casio energetical- ters (electronic dictionaries, etc.)” tem ly moves forward with its research and develop- The company is also stepping up its efforts The Research and Development System is ment efforts, aiming to contribute to the society to construct a mechanism to consolidate the made up of the “Core Tecnologies R&D Divi- through the development of innovative prod- knowledge of experts within and outside the sion” and the “Research and Development” ucts. company through the formation of partnerships which are set up within Casio Computer Co., Casio’s research and development system is and alliances with outside organizations, such Ltd. These groups develop technologies to two-pronged: “Basic Research and Core Tech- as public research centers and universities in make inroads in new business fields, as well as nology Development,” which is focused on new connection with fields that are projected to ach- fundamental technologies that are shared by all businesses and takes on medium- to long-term ieve medium to longterm growth, and technical business operations. They also perform re- perspectives, whereas “Product Development” fields that have the potential for innovative core search and development, including develop- is directly tied to existing businesses. With technologies. ment of next-generation products and process these two subsystems in place, Casio engages The company spent ¥16,616 million in re- technologies. Regarding technology fields itself in research and development for the “Next search and development in fiscal 2004. The ex- where long term growth is projected and tech- Generation.” penditure is broken down by business type and nology themes that have the potential of grow- by segment as follows: ing into core technologies of the next genera- tion, we are pressing forward with joint research Research and Breakdown of Research and Development with outside research organizations and the for- Development Strategies Expenditure by Business Division mation of alliances with other corporations. ■Department-based Development (In millions of yen) ■Research and Development System Casio develops products and technologies that 20,000 Department-based Development 16,616 ■ are centered on such Casio’s proprietary tech- 15,000 14,085 14,114 14,187 Development organizations that are set up 11,968 nologies that are noted for their “Compact, 10,000 within various departments and the Casio light weight, slim, and energy effecient” as “high- Group companies comprise the Department- 5,000 density packaging technology,” “LSI technology,” based Development. Here, research and devel- 0 “software/IP technology,*” “communications and FY2000 FY2001 FY2002 FY2003 FY2004 opment of essential technologies, elemental *IP technology: IP is an abbreviation for intellectual digital broadcast technology,” “information system technologies and production technologies relat- property, and means intellectual property rights. technology” and “electronic component tech- ing to individual products are carried out in co- nology,” which form the company’s core com- operation with the sales department. petence, and other human interface technolo- Research and gies and know-how that the company has Development Organization cultivated mainly in the area of diverse consumer products. Casio’s research and development organization In addition, the company currently concen- consists of the “Research and Development trates its effort on the development of “image System,” which conducts basic research and List of Research Themes / digitalization (digital cameras, etc.)” by capitaliz- elemental technology development, and the List of Joint Research Partners (in a random order) Research and Development System Diagram List of Research Themes Fuel cells, WLP/EWLP, organic EL, thin film nano The Core Technologies R&D Division: technology for next generation information devices, Development of compact and low power consumption technologies for the next generation, fundamental technology for the formation of nano the development of processes and the development of high-density packaging technology. medicine sites, next-generation offices for the ubiq- Research and Development: uitous society, radio-controlled watch antenna re- Exploration of new business fields and development of next-generation products. ception sensitivity simulation, radio-controlled watch antenna materials, equipment noise-related Department-based Development themes, surface acoustic wave device applications, Individual Departments compact diversity antenna for mobile equipment, Research Development : Development of products that are directly tied to the items sold environmental noise measurement, etc. and Headquarters Development Cooperation Design Center: List of Joint Research Partners Development and planning of designs that are directly tied to the items sold System The Prefecture of Kochi, the City of Kyoto, Kochi Electronic Component Department: University of Technology, Kyushu University, Kyoto Development of products that are directly tied to display products Cooperation University, Kogakuin University, Yokohama National Casio Micronics Co., Ltd.: University, Saitama University, the University of To- Cooperation Development of high-density packaging technology for semiconductors kyo, Tokyo Institute of Technology, University of Electro-Communications, Tohoku University, Shi- Casio Hitachi Mobile Communications Co., Ltd.: Development of cellular phones Cooperation zuoka University, Salesian (former Ikuei) Polytech- nic, Kumamoto National College of Technology, etc.

21 Research Themes for Next Generation Products

Research of a “Reformed Methanol Fuel Cells System” for Mobile Devices Since 2000, Casio Computer Co., Ltd. has been iaturization of a “Reformed Methanol Fuel Cells *Micro energy supply: a device that supplies electrical ener- conducting research on micro energy supply* that System.” The micro-machining technology en- gy to mobile electronic equipment. is suitable for mobile electronic devices. The com- ables the system to be ultra compact through its pany is currently concentrating its efforts on the integration, including that of auxiliary parts, on a Si research of a “Micro Power Generation System” to chip, using Si wafer microfabrication technology. extract energy from chemical fuels. One such re- The company is currently in the process of re- search that the company is engaged in is the min- placing silicon chips with glass chips to achieve iaturization of a “Reformed Methanol Fuel Cells further cost reductions. In the future, we will tackle System” to which a micro reactor is applied, such tasks as securing reliability and productivity based on the Si micro-machining technology. that would be required for commercialization, and Until recently, the “complexities of a reformer establishing infrastructure and legal requirements and a system” were the greatest obstacle to min- for distribution of methanol fuels. Reformed Methanol Fuel Cells System

Research on “Biometric Authentication Technology”

With the progress of digital networks, strict control In fiscal 2004, the company (1) completed an *INSTAC: An abbreviation for the Information Technology Re- over corporate information and personal informa- analysis of the correlation between the diversity search and Standardization Center. INSTAC is currently tion are being sought. In this climate, Casio has of bio data and biometrics and reflected the re- working on the standardization of the method to evaluate verification accuracy of biometrics, and examining various been conducting research on “biometric authenti- sults on the biometric authentication technology, factors involved. cation technology,” that restricts the right of access and (2) made contribution toward domestic to confidential information to limited users alone. standardization in addition to making sugges- Specific policy approaches are three-pronged: tions to the international community (ISO/IEC/SC (1) analysis of the simultaneous and time-de- 37). In the future, the company plans to press pendent (historical) diversity of biometrics, (2) ac- forward with the establishment of de facto stan- tive participation in the standardization of IN- dards for security technology, an application of STAC* “fingerprint scanner quality evaluation the standards to various types of biometrics, method,” and (3) participation in the ISO/IEC/SC 37 such as fingerprints, iris, vein pattern, voice and committees and presentation of suggestions face, and research on their international stan- about standardization. dardization. Biometric Devices

Development of High-density Packaging Technology (WLP Technology*1)

With the advancement of digital products, de- In fiscal 2004, a decision was made to pro- *1: WLP technology: An abbreviation for Wafer Level Pack- mand on semiconductors is to be even more mote the development of the WLP technology age. WLP is a new semiconductor-packaging technology Market and Casio compact and have greater capacity than then in a 300 mm wafer-size processing, and start in- that made it possible for copper redistribution, electrode ter- minal formation and resin encapsulation to be done in a wa- do now. Casio is conducting research on high- vestment in plant and equipment in anticipation fer stage. density packaging technology, which contri- of its commercialization. In addition, agreements butes to the realization of such semiconductors. were entered in connection with technical li- *2: EWLP Technology: An abbreviation for Embedded Water The WLP Technology, which Casio has devel- censing to Amkor Technology, Inc. a US corpor- Level Package. It is a technology that embeds WLP in a oped since 1997, began to be mass produced ation that is the largest packaging maker in the printed circuit board. by Casio Micronics in 2001. In 2002, the tech- world, and to Renesas Technology Corp., the Copper post nology was adopted in the picture signal pro- largest Japanese semiconductor maker. Terminal cessing device for GPS cellular telephone with a Looking ahead, Casio will strive to strengthen Redistribution Encapsulation resin built-in camera. The technology has found the WLP application technologies in a move to greater applications in 2003 and subsequent make them the industry standards, and also Protective film years in such places as flash memory for digital press forward with the development of EWLP Si cameras and cellular phone sound source devi- technology*2, which receives heavy attention as ces. the next generation technology. A Cross-sectional View of WLP

Terrestrial Digital Broadcasting High-sensitivity Reception Technology Frequency Following the start of terrestrial digital broad- lysis and correction regarding frequency and casting in December 2003, broadcasting to cel- signal strength, as well as similar tasks with re- Time Conventional lular phones will also commence at the begin- spect to time-axis, (2) technology that controls a Range of ning of 2006. To maintain good cell phone tuner so that optimal signal conditions are Correction reception, technology that enables reception of picked when signals are altered for such rea- Correction Reference Correction Range of Correction of broadcast signals while on the go over a wide sons as reflection off a building, and (3) technol- Signals Target Signals the New Technology area is indispensable. Casio worked to develop ogy that controls the directional characteristics Illustration of Signal Correction Technology such reception and technology and came up of the primary antenna by raising the voltage of In a conventional circuit, signal analysis and correction were with “OFDM demodulation circuits,” which can the auxiliary antenna to receive stronger signals. possible only in the area of the dotted lines. In a new circuit that has been developed, analysis and correction are possible improve sensitivity by more than 100 times what We are proceeding with the commercialization along the time axis as well. This allows the correction to be the conventional technology achieves. The cir- of the product in line with the start of the broad- possible over a greater area (the colored area). Consequently, optimal signal conditions (correction target signals) can be de- cuits incorporate three technologies: (1) tech- casting to cellular phones. tected by picking up signals from before a change and until nology that performs conventional tasks of ana- after a change (at 7 points in the diagram).

Research of “Organic Light Emitting Diode Display” (OLED Display*) *OLED Display: A device that displays characters and im- ages by using Organic Light From the rapid growth of flat panel displays mar- of structure and manufacturing process. Emitting Diode that emit light ket, research and development to further im- In fiscal 2004, prototypes were made in antici- when an electric current is prove performance and productivity are deman- pation of high luminance and increased scanning passed. Because of the self- illumination feature, OLED dis- ded. lines that would be required for use in large- plays require no back-lighting. Casio Computer Co., Ltd. is pressing forward screen TV sets. They thus consume less elec- tricity and are thinner than liq- with research to commercially manufacture Now we are focusing on the display lifetime for uid crystal displays. The view- “OLED displays” that employ an amorphous sili- the commercialization. ing angle is wide and the response speed is fast result- con TFT drive and a polymer coating process. In the future, we will press forward with optimiza- ing in smooth moving picture. This effort is carried out under the policy of de- tion of the technology, basing our work on the For these reasons, OLED dis- plays are expected to be- veloping energy-saving, saving space and friend- accumulation of data on lifetime and mass pro- come the next generation ly to the environment with reliance on simplicity ductivity. OLED Display displays.

22 Market and Casio

Responsibilities to Research and Development of Next Generation Products Our Customers 2

urement. The company upholds the following sions through activities to create core inven- Management of four elements as its policies and goals of prop- tions, exploration of opportunities for new in- Intellectual Property erly managing its intellectual properties. ventions, evaluation of inventions, and avoid- ance of infringement on other companies’ ■ Mission of the Intellectual patents. ■ Policies and Goals Property Department (2) Techno Power Casio’s corporate management is focused on Development of innovative new technology and This presentation came into being in 1992 with creating high added value by linking its re- products has been Casio’s posture of develop- an objective of “invigorating technology devel- search and development with its management ment since its inception. To protect the fruit of opers and encouraging the sharing and accu- of intellectual property, and by defending the such development efforts by turning them into mulation of technology.” Engineers are provided strength of the company’s business and its patents and other rights is an important theme with occasions to present the results of their rights together with its business strategies. that heavily influences the competitiveness of a work to top management, and engineers and corporation. The mission of the Intellectual designers who accomplish excellent results are Casio’s High Added Value Corporate Management High Added Value Property Department is to protect inventions awarded in a ceremony. By properly recognizing that are the results of technological develop- intellectual property accomplishments and com- Product ment efforts by securing patents and other mending the efforts, the presentation encour- Business Strategies rights, and allow Casio to have a competitive ages engineers to take on a new technological Stable Corporate advantage by utilizing such patents and other challenge with pride and strong motivation. Management rights. (3) Utilization of Intellectual Property Rights Research Using the intellectual property rights that are Intellectual and Property Development ■ Intellectual Property Activities secured, Casio offers technical license to other Casio has various systems in place to properly companies (including cross licensing). At the Casio deems intellectual property to be an manage intellectual properties that it has accu- same time, the company rigorously pursues important yardstick of corporate value meas- mulated over the years and to ensure that re- and eliminates imitation Casio products. search and development results that will be- (4) Intellectual Property Education System Policies of Intellectual come new intellectual properties will continue to In order to deepen employees’ understanding Property Management be produced. of and interest in intellectual properties, Casio (1) Patent Advisory Engineers holds internal seminars, publishes information 1. Creation of Core Patents (Quality Reform)� Application and registration in core fields (se- This is a system that was initiated in 1994 so on its Web site (on the intellectual property lection and concentration), Establishment of that superb intellectual properties may be pro- home page), and use outside education organi- basic patents and de facto patents� 2. Thorough Risk Management of Patents� duced continuously. Highly qualified engineers zations, such as the Japan Intellectual Property Thorough avoidance of other companies’ pa- who have strong understanding of engineering Association and the Japan Institute of Invention tents, Thorough patent research� 3. Utilization of Intellectual Property Rights� and leadership quality are appointed to be pa- and Innovation. Countermeasures on design and brand imitations, etc.� tent advisory engineers and assigned to divi- 4. Training of Intellectual Property Specialists� Training of engineers and intellectual property sions. Their responsibility is to strengthen the specialists intellectual properties within their individual divi-

Participation in Collaboration of Regional Entities for the Advancement of Technological Excellence* Participation in the Prefecture of Kochi - Dvelopment of Thin Film Participation in the City of Kyoto - Development of Fundamental Nano Technology for Next Generation Information Devices� Technology to Create a Key Location for Nano Medicine�

The Kochi Prefecture Collaboration of Regional Entities for the Advancement of Tech- The City of Kyoto’s Collaboration of Regional Entities for the Advancement of Techno- nological Excellence commenced in January 2003 to conduct research and develop- logical Excellence is led by Kyoto University and aims to develop fundamental tech- ment of Thin Film Nano Technology for Next Generation Information Devices under nology to create a major site for nano medicine. The project has a 5-year span that the leadership of Kochi University of Technology. The project aims to establish funda- will run until December 2009. It aims to develop devices, ranging from those for the mental technology relating to low power consuming high-resolution� displays for the treatment of early-stage cancer, based on simultaneous detection of multiple tumor ubiquitous society of the future through the development of TFT using zinc oxide and marker items, to imaging devices used for accurate diagnosis and those for targeted research and development of energy-saving flat surface light source using a carbon treatment that use nano particles. Other areas encompassed by the project are the thin film cold cathode. The project is also focused on the development of energy- and creation of the contrast agent industry and the development of diagnostic and treat- resource-saving manufacturing methods. ment drugs, as well as DDS reagents.

Casio has taken part in this project since its planning stage in 2002. The project is Casio has been a partner in this project since 2003. The company has been in- conducted in the prefecture of Kochi, the birthplace of Casio’s founder. Future targets volved in the creation of wristwatch-type devices as a device development project, for the zinc oxide-using TFT are the development of displays that are commercially vi- and has been pressing forward with the development of therapeutic test system devi- able, and research to expand the fields of applications for ZnO as a material. With re- ces. spect to cold cathode light source, the lighting field, including agricultural light sour- ces, will be a targeted area for commercialization studies.�

*Collaboration of Regional Entities for the Advancement of Technological Excellence: A project which is conducted in one of the communities (prefectures or government-decreed cities) in one of the eight priority research fields that were specified by the Japanese government (life sciences, information and telecommunications, environment, nano technology, materials, energy, manufacturing tech- nology, and social foundation/frontiers) with the collective efforts of community research potential (R&D-oriented corporations, universities, public testing and research organizations) to further research and development in the specific field that the community hopes to establish itself in. The goal is to contribute toward the creation of new technology and new industries.

23 Market and Casio

Responsibilities to Our Efforts on Quality Assurance Our Customers Casio targets to be a trusted maker by offering safe products and services. 3

tem and strives to make Group-wide ef- Quality as Viewed Quality Concept forts to improve quality. by Casio Casio builds a strong quality system, based Casio Promotion Committee for Group- on its belief in “Quality First” (Quality is top wide Quality Enchancement, which is the priority) with which the company offers prod- highest-level quality assurance organiza- uct and service that please and impress our To offer products and services that please customers and which requires all employees tion, meets semiannually by convening the and impress customers, it is necessary to to place quality at the base of every task that division heads from the Electronics Equip- create products that can win the solid ap- they perform. By doing so, the company ment Division (Consumer, Watch and Sys- supports its corporate growth and makes proval of customers in all areas, including social contribution while at the same time tem departments), the Electronic Compo- reliability, durability, safety, serviceability, as winning customers’ trust and giving them nent Division and the Communications well as consideration for the environment ease of mind. Division, as well as quality managers of and compliance with laws and regulations, manufacturing and service affiliate compa- not to mention functions, designs and pri- nies. Resolutions are made at these meet- ces. Quality Management Policies ings on company policies on quality and

At Casio, we view all of these factors ●We create a good corporate image by of- action on priority tasks. The resolutions of that affect the evaluation of our products to fering products and services that please these meetings are communicated to indi- be “quality.” We have made group-wide ef- and impress our customers, and by gaining vidual departments and reflected on specif- their strong trust and giving them ease of forts to improve quality, based on our Qual- mind.� ic quality assurance activities within the de- ity Concept and Quality Management Poli- partments. ●We respond to our customers’ requests cies. In 1996, Casio started its “Delight Our and inquiries with sincerity and speed, and In 2004, the CS Control Group was cre- Customers” program to ensure that all em- reflect their important comments on our ated within the Sales Department of the Market and Casio products and services.� ployees of the Casio Group become thor- Electronics Equipment Division to improve ●In all our business processes, we base our oughly familiar with Casio’s philosophy action on the Principle of Five Gens and adhere to the ba- ation with the Engineering Dept within the sics of business operations.� Department HQ in an effort to further im- ●We capture and analyze quality assurance activities quantitatively, using reliable data, prove quality and services. Quality as Viewed by Casio and use the analysis to make continuous Moreover, a person responsible for quali- improvements. We also construct a quality information system that enables the shar- ty assurance is appointed in the Develop- Functions, ing of the quality information and preven- ment Department for each item and busi- Performance, Design, Price tion of problems before they occur, and ness to look after product specifications, prevents recurrence of quality problems. Environmental software, mounting, outer packaging, cir- Reliability, Conservation, cuits, devices and manufacturing. In addi- Recycling Casio’s Durability Quality tion, the quality assurance persons report Quality Assurance System to the quality manager who oversees the Safety, entire work to ensure product quality. Serviceability Legal Compliance

Casio constructs a quality assurance sys- Quality Assurance System

President

Casio Promotion� Committee for Group-Wide Quality Enchancement Electronics Equipment Division Committee Chairman: Director of the Development HQ

Sales Department Company-wide Quality Development HQ Control Department � CS Control Engineering Cooperation Group Dept Item Development and Production Item Sales Group and Purchasing Department

Electronic Telecomm- Service and Sales Manufacturing Component unications Affiliate Companies Affiliate Companies division Division

24 Market and Casio

Responsibilities to Our Efforts on Quality Assurance Our Customers 3

viduals to check on the progress of the in Casio’s quality assurance activities in fis- Quality Management problem that erupts on a Web site, a cal 2004 were as follows: System mechanism for discussing and deciding (1) Promotion of Efforts to Improve Cus- countermeasures, including notification, tomer Satisfaction Levels and another mechanism that clearly reports We make efforts to improve customer sat- Casio has constructed a quality control and announces measures to prevent recur- isfaction by utilizing a mechanism that system that is based on the quality man- rence of the problem. With these mecha- builds a data base of customers’ voices agement system ISO9001. nisms in place, Casio responds promptly and feeds back these voices to develop- Casio strives to improve quality by apply- and precisely to problems that occur. ment and design departments so that cus- ing PDCA at all points along the process tomers’ opinions are reflected in new prod- chain, starting with the product planning ■ Quality Information Assistance uct improvements. stage and moving to design, evaluation, System (2) Implementation of Post-sale Failure purchase, production, sale and services. Casio quantitatively analyzes market and Prevention Measures production statuses using reliable data and In addition to strengthening safety design List of ISO9001 Certified Groups (Excerpt) furnishes the results to quality professio- verification that is performed when ship- Classifi- Initial Version cation Certified and Registered Sites Registration Date nals. In addition, the company runs a quali- ment of a new product is approved, we re- Develop- Casio Computer Co., Ltd. ty Web site, utilizes its internal network so examined the communication channels ment Information Technology June 25, 1999 HQ System Unit as to ensure that all employees are thor- used in the rate event that a failure does oughly informed of laws and regulations, as occur. We built a mechanism for notifying Kofu Casio Co., Ltd. August 1, 1994 Casio Electronic well as Casio’s internal specifications and all customers by creating a rule for notifica- Domes- August 5, 1994 tic Manufacturing Co., Ltd. rules. With these measures, Casio sup- tion on a Web site in the event a defect Produc- Yamagata Casio Co., Ltd. tion December 16, 1994 ports quality activities. that has the potential for becoming a failure Sites / Services Kochi Casio Co., Ltd. January 12, 1996 is discovered. Casio Micronics Co., Ltd. (3) Quality Loss Reduction Activities March 29, 1996 Efforts to Ensure Casio Korea Co., Ltd. September 15, 1994 We improved designs and mechanisms by Jin Shui Keng Casio Product Safety clearly determining the subjects of focused Overse- Electronics Factory July 29, 1998 as Casio Electronic action on a business item by business item produc- September 1, 1999 tion (Zhongshan) Co., Ltd. basis, using quality loss as the impact indi- Sites Casio Electronics (Zhuhai) Co., Ltd. October 19, 1999 To supply customers with products that cator, and by taking proper countermea- Casio (Thailand) Co., Ltd. October 24, 2000 they can use without worries, it is impor- sures. As a result, quality loss was re- tant that we make our utmost efforts to en- duced. sure product safety. ■ New Product Shipment Start Ap- Safety Specification is included among proval System Casio’s product specifications. In addition, Customer Service When a new product shipment is about to the Product Safety Responsibility System Improvement start, the quality assurance persons re- has been built to evaluate product safety at sponsible for planning, design, evaluation every process and for every product to en- and production and their quality control su- sure that all products are safe. The Service Department, which is respon- pervisor verify each process, which is fol- Specialized organizations to ensure safe- sible for repairs, strives to satisfy custom- lowed by objective checks (confirmation by ty include the Casio Promotion Committee ers by taking the following action on each the general manager of the Development for Group-Wide Quality Enchancement, un- of the three themes, namely, Prompt Re- division and the Engineering department der which are permanent committees to sponse, Dependable Technology, and Opti- manager). It is only then that a decision is ensure compliance with the Electrical Safe- mum Charges that Satisfy Customers: made to ship the new product. ty Code and the EMC specifications. Dedi- ● Prompt Response cated staff provides technical guidance and We are taking steps to improve our opera- ■ Post-sale Trouble Response Sys- operational support from these commit- tions by focusing our attention on part pro- tem tees. In addition, extraordinary committee curement, repair work, and repair technolo- In the event that a trouble, claim or a quali- meetings are held as necessary to estab- gy so as to shorten the repair time and ty problem occurs following a sale, a differ- lish rules and exchange information. return repaired products back to our cus- ent information route is established for the Thanks to these activities, Casio is able to tomers as quickly as possible. In Japan, type and the level of the problem. This comply with safety laws and regulations. we aim to be the electrical appliance maker mechanism is constructed to ensure that with the shortest repair time. In overseas the necessary information is communica- markets too, we are targeting to shorten ted promptly to the departments and su- Status of Quality our repair time to be in line with the Japa- pervisors who can determine the appropri- Assurance Activities nese levels. ate action in a speedy manner. In addition, ● Trustworthy Technology Casio has a mechanism that enables per- We make strenuous efforts to improve our sons responsible and other involved indi- Accomplishments relating to priority tasks repair technology so as to respond to the

25 trust of our customers and realize the kind ● Efforts to tie the viewpoint of customers Universal Design Activities of repair quality that is satisfying to our cus- to a solution tomers. In addition, we strive to improve ● Reflection of a customer voice on im- quality by feeding back information from provements our repair floor to the Development HQ and the Manufacturing Department. Inside the Customer Service Center is the all Casio product designs, positioned uni- ● Optimum Charges that Satisfy Customers Overseas Customer Support Center, where versal design activities as a priority theme We work hard to reduce burdens on our we are working to create a system that in product design, starting in 2003, and be- customers by controlling our repair cost permits us to establish sound communica- gan to make serious efforts. The center de- through improvement of repair methods tion with our overseas customers too. We velops designs by using practical techni- and realizing repair charges that customers hope to bring voices from all around the ques, extracting points to be improved, can accept. Repair method improvements world and tie them to Casio’s business im- based on user tests, and by making pro- are important measures as they can be ex- provement. posals for specific solutions. pected to also reduce the parts discards In fiscal 2004, points for improvements that result from repair work. In fiscal 2004, Contents of Inquiries and were extracted in connection with the safe- Their Percentages especially big improvements were made in ty and ease of use of specific products that Other the repairs of cell phones and digital cam- 18.0% are used frequently by customers in a eras. widely ranging age group, spanning from Requests for catalogues and user manuals children to senior citizens. The examination Post- 4.0% purchase was made from both the hardware and Activities of Casio inquiries software viewpoints. Market and Casio 64.0% Customer Support Center Pre-purchase inquiries Looking ahead, we will press forward 14.0% with the construction of a mechanism that feeds back the opinions obtained in user Communication with our customers is im- tests to universal design product develop- portant for Casio as we hope to be trusted ment, and promote the establishment of by and have long-lasting relationship with Casio Universal Design Guidelines so that them. Casio’s Customer Support Center is Customer Satisfaction the work will spread to the entire Casio the contact point for customers, where Surveys Group. their opinions, requests and questions are received. Casio periodically conducts customer sat- isfaction surveys to find our customers’ opinions regarding not only product func- tions, performance and designs but also their ease of use and service responses on a product by product basis, and reflect their voices on future products. The Design Center,� which is responsible for Proprietary Symbol Mark (UD Mark) on a Catalogue

Flow of Casio’s Universal Design Activities

Customer Service Center An Example of an Improvement Extraction of (Hardware and Software) The Customer Support Center comes that Reflected the Results of Improvement Points concerning Product a Customer Satisfaction Survey under the CS Control Group that was cre- Safety and Ease of Use ated in March 2004 with a goal of improv- ing CS (customer satisfaction) all across Presentation of a Specific Plan for Im- Development, Manufacturing, Service and provement in the Form of a Report, Product Itself, or User Interface Design Sales departments. The Center strives to Proposal deliver satisfaction and happiness to our customers by ensuring that all employees heed the following four points when receiv- Evaluation of the Product Design Pro- posal in a User Test ing opinions from customers: ● Prompt, accurate and polite response Application to Other Products through ● Acceptance of customer’s remarks with Company-wide Sharing of Know-how sincerity and accurate understanding of Glossy desktop calculators that use surface panels with facts a coating finish

26 Market and Casio

Responsibilities to Construction of Strong Partnership Our Business We construct partnership with our business partners through various activities that are Partners founded in fairness.

■ Procurement Policy Presentation ■ Business Partner Award Program Procurement Policies Meeting Starting in fiscal 2004, Casio gives an In April 2004, Casio invited 200 of its major award to its existing suppliers that are un- business partners to a presentation meet- derstanding and supportive of Casio. ing on the company’s material procure- In fiscal 2004, 226 major domestic sup- When selecting new suppliers and contract ment. At the meeting, Casio stressed the pliers were evaluated for the award, based manufacturers, Casio offers open, fair and necessity of expanding its system of coop- on the evaluation criteria described in the equitable entry opportunities to all compa- eration with its business partners and procurement policies, and the top-scoring nies regardless of their nationality, size, or speed up its procurement activities. Casio’s suppliers received commendations. history of business dealings with Casio. procurement policies and its criteria of Existing business partners are evaluated business partner evaluation were also ex- on the basis of three criteria: their “cost plained. competitiveness,” “technical competitive- ness” and “overall responsiveness,” which includes their ability to meet delivery schedules and their compliance with Green Procurement.

Criteria of Business Partner Evaluation Evaluation Criteria Indices

Cost Ability to give cooperation on new products Certificate of Commendation Procurement Policy Presentation Meeting competitiveness Actual ability to cooperate

Technical Ability to make technical suggestions Promotion of competitiveness Ability to maintain quality ■ Efforts to Reduce the Cost Ratio CSR Procurement Casio is currently devoting its efforts to Rate of adherence to delivery schedule Overall lower its cost ratio. To accomplish this Rate of Green Procurement responsiveness goal, it is necessary to have the product Casio requires all its business partners to Priority given to cooperation power that sustains selling price and con- comply with the laws, standards and social struct a mechanism to prevent overstock- rules that exist in countries of the world, in- ing, as well as standardize parts and re- cluding prohibition of child and forced labor Communication with duce the number of parts to suppress and discrimination, and freedom of asso- Our Business Partners direct material cost. Casio has been press- ciation, just as it requires the same in its ing forward with these efforts by maintain- own business activities. ing close communication with its business In fiscal 2005, Casio plans to survey its For Casio to continue its production activi- partners. business customers and gain knowledge of ties stably in terms of quality, price and the their actual conditions in accordance with supply volume, close partnership with our ■ Technology Exchange Events and the company’s policy to increase CSR-rela- business partners, including material sup- Exhibitions ted considerations in procurement. pliers and contract manufacturers, is im- In an effort to promote the development of Fundamentally, Casio intends to rely on portant. It is also necessary to further new technology and encourage proposals its business partners’ volunteer efforts in strengthen our partnership-based system on electronic equipment parts, Casio hosts the execution of CSR procurement. Never- of cooperation in order for us to be able to technology exchange events and exhibi- theless, the company plans to conduct a respond to demand by the increasingly tions, mainly for LSI makers, and endeav- check on its business partners either an- harsh market for shorter product develop- ors to establish close communication. nually or biennially so as to encourage con- ment cycles and lead-time. Accordingly, tinuous improvement. Casio works hard to communicate with our business partners by creating various op- portunities.

Technology Exchange Event

27 Market and Casio

Responsibilities to Optimum Profit Returns and Information Disclosure Our Shareholders and We strive to improve business performance and stabilize our financial condition so as to Other Investors increase returns to our shareholders.

based on financial analyses. ■ A Wide Array of IR Tools Basic Policies regarding SRI has been growing rapidly in Europe IR tools used by Casio include financial re- Profit Distribution to and America in recent years. A number of sults presentation meetings (quarterly), the Our Shareholders investment trust companies in Japan also annual report, and the business report sell SRI-related products. Casio is included (semiannually). All such information is also Casio positions maintenance and expan- in the following funds and index. disclosed on Casio’s Web site. sion of profit distributions to shareholders to be an important management task. Ac- Status of Inclusion in SRI cordingly, the company strives to improve Funds and Index (as of June 1, 2005) its business performance and strengthen Inclusion among stocks that comprise SRI Index its financial conditions. As for dividends, Morningstar SRI Index maintenance of stable dividend distribution (as of September 1, 2004) is Casio’s basic policy. However, the com- Inclusion in SRI Funds pany will also press forward with improve- STB Asset Management Co. Ltd. ment of profit distribution by comprehen- STB SRI Japan Open “Good Company” sively weighing the profit level, financial Sumitomo Mitsui Asset Management Co. Ltd. Annual Reports condition and dividend payout ratio so as Eco-balance “Umi to Sora (Sea and Sky)” to increase the company’s contribution to URL http://world.casio.com/ir/ its shareholders. Retained earnings will be appropriated to R&D and investment that are necessary for stable corporate growth. Communication to Market and Casio By so doing, Casio will endeavor to im- Shareholders and prove its business results and strengthen Other Investors its management structure. We are actively engaged in IR activities through various media in accordance with Operating Results and the policy of disclosing corporate informa- Dividends in Fiscal 2004 tion appropriately at appropriate times as stated in the Casio Code of Conduct. Web Site “To All Our Investors”

In fiscal 2004, Casio powerfully promoted ■ Financial Results Presentation ■ Measures for Individual Investors and expanded its strategic businesses, in- Meeting Casio readily discloses corporate informa- cluding timepieces, digital cameras, electron- Simultaneously with the release of quarterly tion to individual investors as well. The ic dictionaries, cellular phones and TFT financial results, we hold a financial results company strives to not only disclose exten- LCDs. At the same time, the company dedi- presentation meeting. Either the company sive information on its Web site but also cated its efforts to improving its management president or a director in charge of IR ex- hold presentation meetings for salesmen efficiency, including raising its profit margin plains the financial results and future out- from securities firms. In addition, the com- and improving capital efficiency. As a result, look to institutional investors and securities pany is pressing forward to expand the both sales and profits were record high. analysts as the main speaker at such contents provided at the general meetings Dividends were increased by ¥2 per meetings. In addition, we meet with do- of shareholders and the subsequent man- share from ¥15 last year to ¥17 by taking mestic and overseas institutional investors agement presentations to shareholders. into consideration such factors as business and securities analysts individually, give On September 1, 2004, the company re- results, posting a second consecutive divi- factory tours and hold small meetings duced the size of trading unit of its shares dend increase after last year. about specific business segments from from 1,000 to 100 in an effort to expand its time to time. shareholder group and improve the liquidity of the shares. Inclusion in SRI Funds and Index ■ Responding to Inquiries to the IR Department The IR Department, which is at the center SRI (Socially Responsible Investment) is an of Casio’s IR activities, answers a variety of investment technique that is used to eval- inquiries received from Japanese and for- uate and select corporations on the basis eign shareholders and investors in cooper- of their performance in such CSR areas as ation with the General Affairs Department. compliance with law, employment and hu- man right issues, social contribution and environmental conservation, in addition to more conventional investment criteria Financial Results Presentation Meeting

28 Chapter II Global Environment and Casio Casio sets its rules and goals from an international perspective by recognizing the importance of a corporation’s responsibility to the environment. Based on its philosophy and technological system that have been established since its start, Casio strives to achieve global environment conservation.

Responsibilities to the Contemporary and Future Generations

● Consideration to the Environment in Product Development ● Consideration to the Environment in Material Procurement � ● Reduction of the Environment Impact of Production Activities ● Consideration to the Environment through Green Products ● Consideration to the Environment in Distribution and Packaging ● Recovery and Recycling

Contemporary Future Generation Generations

29 Global Environment and Casio Casio Environmental Charter and Casio Fundamental Environmental Policies Consistent with its corporate creed of “Creativity and Contribution,” Casio sets specific rules and targets to promote its environmental management.

Casio established its Charter of Creativ- ity for Casio to creatively put to practice Casio Environmental Charter its corporate creed of “Creativity and To conserve the global environment, Casio recognizes the importance of its Contribution.” The Charter describes a corporate environmental responsibility across the operations of its entire mechanism for the practicing environ- group. Casio establishes basic policies and specific measures for mental management, such as social contributing to world prosperity and human happiness from the broad perspective of international society, and endeavors to implement them. contribution, environmental conserva- tion, information disclosure and com- Fundamental Environmental Policies munication with stakeholders. The philosophy and concept that un- 1. Casio Group members shall comply with all environmental laws, derlie the Charter of Creativity for Casio, agreements, and standards in Japan and overseas. 2. The Group shall establish voluntary “Casio Environmental Conservation Casio Common Commitment, and Ca- Rules”* based on consideration for the environment at all product stages sio Code of Conduct are also present in of development, design, manufacture, distribution, repair services, and the Casio Environmental Charter and recovery/disposal. All Casio business divisions shall assume responsibility the Casio Fundamental Environmental for their implementation, additionally auditing the degree of compliance Policies, which were created in January and making continual improvements. 1993. 3. From the standpoint of corporate social responsibility, and as good Casio Voluntary Plan for the Environ- corporate citizens, all Casio Group members shall apprehend the ment was established to put to practice importance of global environmental conservation and try to heighten their specific environmental conservation ac- awareness. 4. These policies shall apply to all Casio Group business divisions in tivities, based on these charter and po- Japan and overseas.� licies. The Plan stipulates specifics of � *The Casio Environmental Conservation Rules are specific action programs for environmental conservation, set environmental conservation implemen- forth in the “Casio Voluntary Plan for the Environment (CVPE).” tation items, such as the purpose, en- vironmental conservation themes, spe- cific measures, target values, implemen- Casio Voluntary Plan for the Environment tation departments, and audit depart- “Casio Voluntary Plan for the Environment” was adopted in January 1993 by Casio Environmental and Casio Global Environment ments, and name them the “Environ- Conservation Committee to promote environmental conservation activities in accordance with Casio Environmental Charter and the Fundamental Environmental Policies, which were established by the mental Conservation Rules.” Casio Group. Furthermore, Casio established Ca- The Plan encompasses action guidelines in 19 areas, consisting of development, design, recovery/ sio Group’s Environmental Action Plan recycling, SCM, Green Procurement, Green Purchases, packaging, distribution, sales, reclamation, manufacture, environmental management system, environmental accounting, office/factory environment, “Clean & Green 21” Initiative, which site location, employee training, overseas operations, information support/IR/communication/ CSR and provided specific numerical targets and social contribution. It is revised periodically in response to changes in the social conditions and progress of activities. In February 2005, the 9th revision was made. the deadlines for meeting such targets, and presented the Group-wide me- dium-term action plan. Casio is press- Casio’s Environmental Action Plan “Clean & Green 21” Initiative P32 ing forward to achieve the plan. Casio’s Environmental Action Plan “Clean & Green 21” Initiative sets numerical targets and deadlines for their implementation (short- and long-term targets) for the Environmental Conservation Rules that were established in Casio Voluntary Plan for the Environment. Periodic revisions have been made since it was established in June 1996. As of June 2005, the 8th revision was in effect. Any revision to “Clean & Green 21” is preceded by a revision to Casio Voluntary Plan for the Environment and a revision to the Casio Environmental Conservation Rules. Their revisions are then reflected in a revision of Clean & Green 21.

Promotion of Casio Environmental Action Plan

30 Global Environment and Casio Environmental Action Plan and Performance Casio establishes targets that take account of the changes in the domestic and international environments and continually promotes activities to achieve these goals.

Environmental Management Activities in Fiscal 2004 and Future Efforts

Yukio Kashio

Executive Vice President and Representative Director Chairman of the Casio Environmental Conservation Committee

A look at efforts on global environmental issues reveals a trend for overseas sites 77.4% as our efforts to respond to the RoHS Directive stringent environmental laws both in Japan and abroad as observed bore fruit. The domestic sites met their goals one year ahead of the in the European WEEE and RoHS Directives. Demand has been target, which had been set for fiscal 2005. growing on corporations to assume extended producer responsibili- ty. In February 2005, the Kyoto Protocol took effect. Japan is re- ■ Future Efforts quired to reduce its CO2 emission by 6% between 2008 and 2012 We will continue to respond to the European WEEE & RoHS Directives from the 1990 levels. by staying in close touch with and exchanging information with our In response to such demand of the society, Casio revised the Casio product departments, as well as Casio Europe GmbH and the Sales Voluntary Plan for Environment, the Environmental Action Plan “Clean Department. We will also take steps steadily toward the construction of & Green 21” Initiative, and the Casio Group Green Procurement Stan- a recycling system in August 2005 and the ban on sale of products dard Manual in fiscal 2004, and took concrete steps. containing specified toxic substances (lead, mercury, cadmium, hexa- valent chromium, PBB and PBDE) effective in July 2006.

■ Results of Activities With respect to CO2-related action to prevent the global warming, Environmental action through products is an important theme for a focus of the Kyoto Protocol, we set our goal in terms of a reduction manufacturers. Casio has pressed forward with its C.G.P. 50 Activity, per basic unit of production in line with the policies set by the four whose goal was to raise the percentage of Green Products in total electrical and electronic industry associations.* This yardstick was sales to 50% in fiscal 2005. The goal was met one year ahead of the chosen because an increase in production that results from a busi- plan in fiscal 2004. In addition, Casio pressed forward to replace ness expansion of a manufacturing company leads to an increase in lead-based soldering that was used at Casio Group’s manufacturing CO2 emissions. However, the Kyoto Protocol requires a reduction of sites with lead-free soldering, with target completion in fiscal 2004. the aggregate CO2 emissions. Accordingly, Casio adopted the “Bank This replacement has now been completed. of Japan’s Domestic Enterprise Price Index (Electrical Equipment)” in As for efforts related to manufacturing sites, the Casio Group and fiscal 2005 in conformity with the policies of the four electrical and other companies cooperating with it were abolishing the use of hy- electronic industry associations as a new management method of drochlorofluorocarbon by the end of 2004. Although the deadline CO2 reduction by objective to correct for the production volume. We was missed by three months, full discontinuation was completed be- will also consider the adoption of other supplementary techniques, fore the end of fiscal 2004. including Kyoto mechanism’s CDM (clean development mechanism) In regard to measures concerning waste, Hamura Research and and emissions trading. Development Center, Hachioji Research and Development Center Please refer to the main body of the report for further information. and Casio Hitachi Mobile Communications Co., Ltd. (previously the Tokyo Office of Casio Computer Co., Ltd.) achieved zero emissions in fiscal 2004. Combined with seven other business sites that achieved *Four Electric and Electronic Industry Associations: Japan Electronics and Information Technology Industries Association (JEITA), the goal in fiscal 2003, a total of 10 sites have now met the goal. Communications and Information Networks Association of Japan (CIAJ), Japan Business Machine and Information System Industries Association (JBMIA), As for Green Procurement, domestic sites achieved 97.4% and and Japan Electrical Manufacturer’s Association (JEMA).

31 Environmental Action Plan “Clean & Green 21” Initiative *Rate of Achievement:The ratio of the actual results of FY2004 to the target fiscal year. ☆☆☆:100% of target achieved. ☆☆:80% achieved or higher. ☆:Below 80% achieved. Product-related Initiatives Level of Item FY2004 Targets FY2004 Results Achievement* FY2005 Targets Page No. To raise Green Products To boost the sales of Green Products to be Green products grew to 59%. The C.G.P.50 was met one year 40- sales in fiscal 2007 to 70% 50% of total sales by the end of FY2005 ahead of the initial plan. ☆☆☆� Development of total sales 42 targets for eco-products To reduce the total volume of packaging materi- A 20.5% reduction was achieved. als used per unit of sales by 30% by the end of Progressing toward the goal of 30% reduction in the FY2005. ☆� Continuing. 50 FY2007 compared to the FY2000 To discontinue the use of RoHS Directive-speci- Product certification and use commenced in accordance with the fied toxic substances, namely, lead (lead con- new Casio Green Procurement Standard Manual to comply with ☆☆� Continuing. 52 tained in finished products), cadmium, mercury the RoHS Directive. Progressing toward the goal of discontinued Hazardous and hexavalent chromium, by the end of 2005 use by the end of 2005. substances � phaseout In FY2004, the Casio Group completed full phaseout of lead- targets To discontinue the use of lead-based solder by based solder in manufacturing. FY2004 *Some models (such as those that are to be discontinued) were excluded ☆☆☆� 45 from the calculations.

Business Sites-related Initiatives Level of Item FY2004 Targets FY2004 Results Achievement* FY2005 Targets Page No.

To reduce the CO2 emissions per unit manufac- Actual production* A 10% re- Energy tured by 10% by the end of FY 2005 compared The actual FY2004 results on a per unit basis was a 14% increase duction in CO2 emissions per Conservation to the FY1990 over the FY1990, due to a rise in energy use that resulted from an ☆� unit in FY2005, a 20% reduc- 43 Targets To reduce by 25% by the end of FY2010 com- increase in the production volume. tion by the end of FY2010 pared to the FY1990 compared to the FY2003

The actual FY2004 results on a per unit basis was a 18.3% in- Resource To reduce usage per unit of production at do- crease over the FY2000, due to a strong impact of water usage by Saving mestic manufacturing sites by 5% by FY2005 ☆� Continuing. 46 increased production of Casio Micronics in spite of reduction ef- Targets compared to the FY2000 forts with the installation of a circulation system.

In FY2004, three additional business sites, consisting of Hamura To achieve zero emissions by FY2005 (the vol- Research and Development Center, Hachioji Research and Devel- ☆☆� Continuing. ume of landfill waste to be 1% or less of the to- opment Center and Casio Hitachi Mobile Communications Co., Waste tal waste) Ltd., newly met the zero emission goal. As a consequence, total of Reduction 47 ten business and manufacturing sites have achieved the goal. Targets The actual FY2004 results on a per unit basis was an approximate- To reduce the waste generation per unit by 30% ly 10% reduction over the FY2000, thanks to significant impact of ☆� Continuing. by the end of FY2005 compared to the FY2000 various waste reduction efforts. To discontinue the use of hydrochlorofluorocarbon In FY2004, the 1-1-dichloro-1-fluoroethane use at a contractor’s at all manufacturing sites, including other corpora- plant ended, completing the discontinuation of hydrochlorofluoro- ☆☆� and Casio Global Environment Hazardous tions cooperating with Casio, by the end of 2004 carbon use by the Casio Group. Substance Phaseout Regarding the PCB contents stored at Hachioji Research and De- velopment Center and Hamura Research and Development Cen- 45 Targets To detoxify PCB-containing equipment currently ter, agreements have been signed with a waste treatment contrac- in storage by the end of FY2005 ☆� Continuing. tor. Disposal is awaiting a treatment facility to start up. The PCB stored at Kofu Casio is awaiting the completion of a facility.

Green Parts response rate To raise green Procurement to 95% of total pro- Green Procurement reached 97.4% at domestic sites in FY2004, (the rate of recovery of sur- curement at domestic sites by the end of ☆☆☆� achieving the target one year earlier than originally planned. veyed parts) in FY2005: Green FY2005 100% at domestic sites Procurement 39 Implementa- Green Parts response rate To raise Green Procurement to 85% of total tion Targets (the rate of recovery of sur- procurement at overseas sites by the end of Green Procurement reached 77.4% at overseas sites in FY2004. ☆☆� veyed parts) in FY2005: FY2005 100% at overseas sites To raise Green Purchasing to 60% of total sta- Green tionery product, office supply and OA equip- Purchasing Achieved 41.2%. ment purchases at domestic sites by the end of Continuing. 39 Implementa- Still progressing toward the 60% goal by the end of FY2007. ☆� FY2007 (based on the number of purchases) tion Targets *At sites that have adopted the CATS e-P system

To reduce the CO2 per unit of sales by the end The target is unchanged for Achieved a 32% reduction. of FY2007 by 50% by improving the efficiency domestic distribution� Targets Still progressing toward the goal of a 50% reduction by the end of ☆� of domestic distribution compared to the A 5% reduction in CO2 emis- against Global FY2007. Warming in FY2000 sions per unit of sales by the 49 Distribution end of FY2007 compared to the FY2004 by improving the effi- ciency of overseas distribution

*Actual production output:CO2 emissions per unit of production were used for reduction targets up to the reporting of the actual FY2004 results. However, Actual Nominal Production output this basic unit does not properly reflect the realities, such as changes in business modes. Accordingly, Casio began to compute reductions by correcting the production =� basic unit denominator (production value: in units of ¥1 million) with the Bank of Japan’s domestic enterprise price index (electrical equipment) in accordance output Bank of Japan’s Domestic Enterprise Price with the policies of the four electrical and electronic industry associations, starting in FY2005. Actual production output value is this corrected amount. Index (Electrical Equipment): Yearly ratios in comparison with the base year of FY1990. Table of Bank of Japan’s Domestic Enterprise Price Index Fiscal Year 1990 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2010 Price Index Corrected Values 1 0.77 0.77 0.74 0.72 0.69 0.62 0.58 0.54 0.54 0.54 0.57 *2005 figures are Casio projections. 2010 figures are projections by the Japan Center for Economic Research.

32 Global Environment and Casio Environmental Management Casio has been promoting improvements through PDCA cycles under the Casio Environmental Conservation Committee System.

tees and reports their activities. •Controls the implementation of the Casio System of Promotion •Exchanges information about future envir- Voluntary Plan for the Environment and re- onmental trends and among implementa- vises the environmental management tion organizations. guidelines. Specialized Committees •Grasps environmental trends in Japan and The Casio Group has the Casio Environmen- •Each specialized committee consists of abroad and forwards information to the tal Conservation Committee System, which is dedicated committee members who con- Implementation Organizations, etc. chaired by the vice president and consists of trol strategic themes that should be tack- •Manages the Casio Environmental Conser- five specialized committees and five imple- led not by implementation groups alone vation Committee and the theme-based mentation organizations. The Committee but jointly by Group companies and divi- Specialized Committees. oversees environmental activities of Casio sions. Each committee chairman is ap- Environmental Audit Organization Computer Co., Ltd. and its Group compa- pointed by the Chairman of the Casio En- •Consists of internal auditors of the Promo- nies. Under this system, Casio has been pro- vironmental Conservation Committee. tion Office and those of the Implementation moting environmental management by imple- •Each theme-based specialized committee Organizations. Conducts environmental menting continuous improvement of all of its is made up of the specialized committee performance research in the Implementa- environmental conservation activities through chairman and implementation committee tion Organizations and environmental self- the Plan, Do, Check and Act cycle, based on members who are appointed by imple- audits in manufacturing sites to improve the Casio Voluntary Plan for the Environment mentation organization committee chair- the Group-wide environmental manage- and the Casio’s Environmental Action Plan. men. The Promotion Office manages these ment. Specifically, the Promotion Office and five committees. special committees take charge of the Plan Implementation Organizations part, the five implementation organizations •Promote environmental improvement activ- ISO14001 handle the Do part, whereas the environmen- ities in response to decisions made by the Certification Status tal Audit Organization and the Promotion Of- Casio Environmental Conference. fice perform Checks, and the Casio Environ- •Construct an environmental management mental Conference takes responsibility over system for the entire Implementation Or- Of Casio’s major manufacturing sites, 12 do- Act part in the organization that is shown in ganizations. mestic sites and 9 overseas sites have been the following diagram: •Clearly establish the system and responsi- ISO14001 certified. 15 Of these 21 sites have bilities for the implementation of the envir- already completed a renewal review. Activities ■ Functions and Overview of Individ- onmental management system. Define ob- from this point onward will shift to continuous ual Organizations jectives and targets, control the operaion improvement of systems and performance. Casio Environmental Conference of the system, conduct self-audits and Casio will also expand the acquisition of •Makes decisions on the direction of Casio take remedial action. the certification to sales sites so as to build a Group’s environmental policies, and estab- Promotion Office system of environmental conservation for the lishes action plans and targets. •Plans the direction of the Casio Group’s entire Casio Group. •Examines the environmental policies of the environmental policies, its action targets As of fiscal 2004, the certified business implementation and specialized commit- and plans. sites represented 78.2% of all employees.

Management System of the Casio Environmental Conservation Committee

Casio Environmental Conference Committee Chairman: Y. Kashio, Executive Vice President

Promotion Office Environmental Audit Organization

Manager, Development Specialized Committee Casio Sites Responsible Responsible Person for Responsible Person Presidents of Major Department Chairmen Person for General Affairs R&D and Staff Functions for Sales Consolidated Companies Department Manager

Implementation Implementation Implementation Implementation Implementation Packaging Committee Organization Organization Organization Organization Organization •Development Depart- •Head Office at Hatsudai •Research and Develop- •Sales Department •Consolidated domestic ment •Hachioji Research and ment, and Staff Func- •Branches manufacturing compa- Green Procurement Committee - Consumer Development Center tion Departments •Sales offices nies - Watch •Hamura Research and •Consolidated domestic •Consolidated overseas Green Product - Visual Development Center sales companies manufacturing compa- Development Conference - System •Consolidated overseas nies Environmental Accounting •Casio Hitachi Mobile sales companies Committee Communications Co., Ltd. •Electronic Component Green Purchase Committee (Division)

33 ISO14001 Certified Manufacturing Sites list of environmental self-audits system” are prepared, and the audit is carried out in the Environmental Site Name Date of Certification six genres that are based on the Casio Volun- Risk Management Yamagata Casio Co., Ltd. November 1997 tary Plan for the Environment. The six genres Kofu Casio Co., Ltd. January 1998 are: 1) environmental management system, Kochi Casio Co., ltd. March 1998 Casio Electronic Manufacturing Co., Ltd. September 1999 information disclosure and social contribu- Casio regards any accident that can lead to Casio Support System Co., Ltd. January 2000 tion; 2) energy conservation, resource sav- soil, water or air pollution that negatively af- Casio Micronics Co., Ltd. March 2000 ings, resource recycling and prevention of fects the human bodies and biodiversity to Hamura Research and Development ozone layer destruction; 3) reuse of waste, be an environmental risk. A risk management October 2000 Center of Casio Computer Co., Ltd.

Domestic recycling and reduction of landfill waste; 4) system is established at each manufacturing Hachioji Research and Development October 2000 toxic substance reduction, optimal control; site, and the Emergency Response Rules are Center of Casio Computer Co., Ltd. 5)water, air and soil pollution countermea- established for the equipment and chemicals Head Office of Casio Computer Co., Ltd. December 2000 sures; and 6) distribution and environmental used. Furthermore, site-specific Emergency Casio Soft Co., Ltd. December 2001 Casio Techno Co., Ltd. May 2002 accounting. Response Rules are created at each manu- Casio Hitachi Mobile Communications Co., Ltd. June 2004 Casio sets the direction for its future meas- facturing site and a drill is conducted annually Casio Korea Co., Ltd. April 1998 ures by gaining clear understanding of cur- by assuming an emergency situation. Jiu Shui Keng Casio Electronics September 1999 rent situations in each of the genre, based on Factory the results of these audits. ■ Status of Compliance with Regu- Casio Computer (Hong Kong) Ltd. December 1999 lations Concerning the Environ- Casio Electronics (Zhuhai) Co., Ltd. September 2000 ment P. T. Asahi Electronics Indonesia February 2001 Overseas Casio (Thailand) Co., Ltd. September 2001 Environmental As the following table shows, Casio had no Casio Taiwan Ltd. December 2001 Education and Awards environment-related violations of laws or reg- Casio Electronics (Shenzhen) Co., Ltd. February 2002 ulations, penalties, fines, complaints or law- Casio Electronics (Zhongshan) Co., Ltd. April 2002 suit over the past five years. Casio promotes environmental education and awareness-raising activities so that every em- Environmental Audits ployee can be mindful of the environment on Violation of Regulations, Etc. over the a daily basis. Past Five Years New employees are first given general FY FY FY FY FY 2000 2001 2002 2003 2004 education about environment before they are Number 0 0 0 0 0 Casio conducts internal and external audits in assigned to their posts. In addition, general of cases compliance with the environmental manage- employees, managers and those who are re- Monetary 0 0 0 0 0 ment system ISO14001 once every three sponsible for the environment are provided value years for continuous improvement. In addi- with general and specialized education once and Casio Global Environment tion, Casio conducts “Environmental self-au- a year depending on their responsibilities and Example of Efforts dits system” annually in accordance with its their job ranks. By taking these steps, Casio Emergency Drill at Kochi Casio own standards to supplement the triennial endeavors to raise employees’ awareness audits. The results have manifested them- and their knowledge level about the environ- In September 2004, Kochi Casio execu- ted an annual test and a drill about emer- selves in the form of zero emissions at seven ment. gency situations and accidents. The drill manufacturing sites. Casio also conducts In addition, Casio runs a program of sug- was organized by the Environmental Con- product eco-designs assessment simultane- gestions for improvement at each manufac- servation Section of the Environmental Conservation Department. This year’s ously with product development. Green turing site, and gives awards twice a year to scenario was that a chemical fluid leak- Products account for 59% of all products individuals or groups who submit excellent age occurred inside an etching supply currently. By fiscal 2007, the percentage is suggestions. Additionally, two manufacturing system in the chemical supply room. Be- expected to rise to 70%. sites have their own award systems. Further- tween 3 and 11 employees took part at a time over a period of six days and re- more, Casio has various other award pro- ceived explanations about protective ■ Environmental self-audits system grams to encourage employees’ commit- gear, the supply system, treatment meth- In addition to the internal and external audits ment to conserve the environment. Included ods and chemical soaked clothing. mandated by ISO14001, Casio conducts En- among these awards are the Eco Bonus vironmental self-audits system annually at all Award (awarded on an as needed basis), domestic sites, starting in April 2004. President’s Award (given twice a year), and For these audits, Casio independently se- the commendation program for compliance lects audit items and performs audits even at with the Workplace Action Guidelines (given sites that have not yet been ISO14001 certi- twice a year). fied. These audits are positioned to augment the internal and external audits. For each audit, the “Procedures for a envir- A Training Scene onmental self-audits system” and the “Check

34 Global Environment and Casio Environmental Accounting Casio compiles and analyzes data regarding the cost and the effect of environmental conservation activities in its business in accordance with the “Environmental Accounting Guidelines 2005” published by the Ministry of the Environment.

cleaning. The COF2 gas utilitization is worthly relating to CO2, waste recycling, and coun- Scope and Method of ¥45 million. Kochi Casio is the company termeasures on specified toxic substances,

of Data Compilation succeeded in mass producing of the COF2 which represent the locus of Casio’s efforts, gas. It has a global warming potential one improved over the preceding fiscal year.

2,500th of NF3 gas, which has been con- The accounting figures for fiscal 2004 were ventionally used as the CVD cleaning gas, treated under the same methods as in pre- and thus contributes to the reduction of Focus of Future Policies vious years. As for the scope of data compi- greenhouse gases. lation, the coverage was expanded to all Among investment that is included in pol- Japanese and foreign consolidated subsi- lution prevention cost is an expansion of the diaries starting this year pursuant to the dust collection equipment of Casio Electron- Casio plans to continue to raise the level of Guidelines 2005. ic Manufacturing Co., Ltd. (¥8 million). This its environmental accounting and use it as a Accordingly, the data for fiscal 2003 were was beneficial in reducing the volume of tool for making decisions on environmental recalculated to encompass the same scope dust dispersal that occurs during toner pro- management, and aims to further improve as this year’s to ensure their comparability duction. These expenditures raised the in- the environmental efficiency indicators, the with the data included in this year’s report. vestment in environmental equipment by main part of which are countermeasures on ¥195 million (a 44% increase) over the levels specified toxic substances. of fiscal 2003, to ¥641 million this fiscal year. Actual Results of The environmental expense grew ¥23 mil- Fiscal 2004 lion, to ¥1,135 million as large expenses were incurred for the reduction of waste vol- ume. As capital investment for the environment As the result of such aggressive invest- conserrationn Kochi Casio has sitched COF2 ment, coupled with expenses on a focused gas from NF3 gas for the purpose of CVD area, the environmental efficiency indicators

Report of the Actual Results of FY 2004 * Please refer to page 1 for details of the business units encompassed. Environmental Conservation Cost

Capital Investment Environment-related Cost* Electronic Component Electronics Equipmen Electronic Component Electronics Equipment Items Total Total Division Division Major Works of This YearDivision Division Major Works of This Year 2004 2003 Change 2004 2003 Change 2004 2003 Change 2004 2003 Change 2004 2003 Change 2004 2003 Change

Costs within Business Areas 473 423 50 132 23 109 605 446 159 360 336 24 196 223 ▲27 556 559 ▲3 Feed water and drainage treatment Administrative and maintenance Pollution Prevention Cost 314 238 76 8 8 322 238 84 facilities, exhaust gas removal devices 205 151 54 12 3 9 217 154 63 cost of environment-related facilities

NF3 alternative gas using facilities and Maintenance and inspection cost of Global Environmental Conservation Cost 82 165 ▲83 122 15 107 204 180 24 air conditioning equipment 7 14 ▲7 7 21 ▲14 14 35 ▲21 energy conservation facilities, etc.

Breakdown Reduced capacity equipment, Resource Recycling Cost 77 20 57 2 8 ▲6 79 28 51 water circulation-using facilities 148 171 ▲23 177 199 ▲22 325 370 ▲45 Recycling and sorted disposal-related cost

Chemical substance Cost of Green Purchases Upstream and 6 6 5 5 11 11 countermeasure facilities 12 12 265 184 81 277 184 93 Cost of recovery of products, etc. Downstream Costs Soldering machines Cost of research on RoHS countermeasures

ISO administrative and maintenance cost Management Activity Cost 74 58 16 168 142 26 242 200 42 Administrative activity personnel cost. Related cost

Research and Eco-products, Eco-packaging, etc. 25 Development Cost 25 25 25 X-ray analyzers 4 4 53 106 ▲53 57 106 ▲49 Research cost Research cost of discontinuing lead soldering

Information Disclosure and Greening of Neighborhoods Social Contribution Costs 21 ▲21 3 19 ▲16 3 40 ▲37

Other Costs 23 ▲23 23 ▲23 Total 479 423 56 162 23 139 641 446 195 450 438 12 685 674 11 1,135 1,112 23 * Depreciation expense relating to fixed assets is not included in the computation of the environment-related cost * For personnel cost, the average unit cost was used for the computation. (Unit: ¥1 million)

Pollution Global environmental Resource Upstream/ Capital prevention cost conservation cost recycling cost downstream costs By the Area of 2004 Measures Investment Management Research and Social activity cost Other cost Chemical Chemical activity cost development cost Wastes and recycling substances Wastes and recycling substances Electronic 43 6 4 28 FY2004 314 82 77 6 Global warming Ozone layer Component FY2003 measures protection Global warming Division 238 165 20 Water, soil and 148 8 Counteractions 0 100 200 300 400 500 600 foundation environmental Atmospheric 122 8 2 5 conservation environmental Electronics FY2004 122 25 254 conservation Equipment FY2003 8 28 Division 15 0 100 200 300 400 500 600 Electronic Component Division Electronics Equipmen Division

35 ■ Important Indicators Examples of Projects Achieving Results from Environmental Investment Sales Environmental Sales (In millions of yen) At Casio, efforts to reduce environmental impact are made both at the corporate level and at the levels of Efficiency = Environmental Impact individual business and manufacturing sites. Specific examples of investment that led to reductions in en- (CO2) (CO2 emissions: tons-CO2) vironmental impact which were implemented one a site-by-site basis in fiscal 2004 are shown here as

Represents sales per ton of CO2 emissions. the “Projects Achieving Results from Environment Investment.” FY2004 FY2003

Electronic Component Division 1.49 1.65 Investment Theme A formula to calculate the cost vs. effects (unit: ¥1,000) (Economic effects*) Implemented Work Electronics Equipment Division 11.93 10.99 Implemented as part of the re- Free (The amount of reduction modeling of the cold water sys- 4,284 Total 4.98 4.83 Cooling in power usage / year) tem, including an additional instal- = = 0.714 lation of freezers, which was part System 6,000 (The amount of investment) of an expansion of the Electronic Component Y3 Line. Sales Environmental Sales (In millions of yen) Efficiency = Environmental Impact Installation of (Annual cost of development A reduced capacity device was in- (Waste) (Waste emissions: tons) 24,000 effluent disposal) stalled in order to reduce the cost Volume = = 0.558 of treating used development efflu- Reduction Device 43,000 (The amount of investment) ent. Represents sales per ton of waste emissions. * The economic effects should ideally be at least 1. However, a project is deemed to be environmentally managed if the FY2004 FY2003 figure, when multiplied by the number of years of depreciation, is 1 or higher. Electronic Component Division 25.50 22.97

Electronics Equipment Division 145.17 147.55 Investment ThemesInvestment Amounts Effects (Environmental Effects) Implemented Work Total 75.09 66.40 The heat source system was up- A reduction of CO2 and ●An annual reduction in the volume graded and reconstructed to energy conservation of CO2 (from the previous years) Sales Environmental Sales (In millions of yen) maintain the air conditioned envir- through reconstruction 35,870 1,519 tons (5,492 → 3,973) onment of a clean room (efficiency Efficiency = Environmental Impact improvement and a fuel replace- (PRTR) of heat source system (thousand yen) (Volume of use of PRTR-specified ●An annual reduction in the cost of ment from Special Bunker A fuel substances: tons) (cold and hot water energy: ¥1,610 thousand oil to city gas) to reduce environ- generator) mental impact. Represents sales per ton of PRTR-specified substance use.

FY2004 FY2003 NF3 that had been used as a CVD Introduction of an cleaning gas was replaced with 45,000 ●Impact on global warming: a dras- Electronic Component Division 664.45 750.83 alternative gas for COF2 (COF2 Global warming coef- (thousand yen) tic reduction to one 2,500th. ficient: 1, ozone layer destruction NF3 (COF2) Electronics Equipment Division 28,525.03 18,622.68 coefficient: 0) Total 3,054.68 2,927.35

(Unit: ¥1 million) (Unit: ¥1 million) * “Differences” shown in the table may not match the results of the computations. This is due to rounding of fractions. Quantities Economic effects* Capital Investment Environment-related Cost FY2004 FY2003 Difference Results of the Results of the Results of the Results of the Results of the Results of the Electronics Electronic Electronics Electronic Electronics Electronic Electronic Electronics Total Electronic Electronics Total Electronic Electronics Total Unit By Field Actual Actual By Field Actual Equipment Component Equipment Component Equipment Component Component Equipment Results Component Equipment Results Component Equipment Results Division Division Division Division Division Division Division Division Division Division Division Division Crude Oil Total Energy Input Equivalent (KL) 10,965 41,497 9,384 39,266 1,581 2,231 Global Warming Reduction through 3 Counteractions 148 122 270 20 7 27 Energy Conservation ▲54 ▲94 ▲148 Water Resource Input thousand m 464 2,551 433 2,454 31 97 and Casio Global Environment Greenhouse Gas Discharge

Ozone Layer CO2 ton-CO2 37,548 74,607 36,894 71,503 654 3,104 Resource Saving Protection 8 8 ▲14 9 ▲5 SF6 ton 0 16,551 0 15,248 0 1,303

Atmospheric Specified Chemicals Emissions ton 0 29 0 39 0 ▲9 Environmental 28 28 23 5 28 Recycling 52 272 324 Conservation Total Waste Generation (ton) 3,085 4,359 2,749 5,135 336 ▲776

Noise and Reuse 17 250 267 (the Landfill Disposal Portion) thousand m3 1,051 11 398 19 653 ▲8 Vibration 1 1 Countermeasures Sell out of valuable resource 35 22 57 Total Effluent Volume 371 2,045 347 1,959 24 86

Water, Soil and Foun- BOD ton 7 19 13 18 ▲6 1 dation / Environmen- 254 254 164 7 171 Reduction of 19 2 21 tal Conservation Waste Disposal Cost COD ton 0 0 10 0 ▲10 0

Other Emissions Wastes and 43 4 47 147 373 520 Other 15 15 Recycling NOx ton 83 16 70 20 14 ▲4

Chemical SOx ton 23 8 22 9 1 ▲1 6 28 34 3 89 92 Substances Dust ton 2 1 3 1 ▲1 0

Preservation of the Energy Consumption during Use GJ 2,871 0 3,074 0 ▲203 0 7 7 Natural Environment Cyclic Usage Volume of Used and Recovered ton 12,350 483 12,425 393 ▲75 90 Other 86 203 289 Products, Containers and Packages

Total 479 162 641 450 685 1,13 5 Total 3 204 207 Volume of Containers and Packages Used ton 11,676 607 11,654 501 22 106 * Effects based on hypothetical calculations are not compiled.

(Unit: ¥1 million)

Pollution Global environmental Resource Upstream and Atmospheric Environment prevention cost conservation cost recycling cost downstream costs By the Area of 2004 Measures Noise and vibration environmental conservation countermeasures Other Global warming -related Cost Management Research and Social contribution cost Other cost activity cost development cost 86 counteractions 5 1 Global warming 7 12 Conservation of 20 Water, soil and Electronic FY2004 205 148 74 4 Social activity cost the natural Atmospheric counteractions foundation Component environment 7 FY2003 environmental environmental Division 15114 171 58 2123 7 conservation conservation Other 0 100 200 300 400 500 600 700 800 Chemical 23 7 12 substances Water, soil and 203 Wastes and 7 3 foundation Chemical recycling Electronics FY2004 177 265 168 53 3 environmental Equipment Wastes and recycling substances 373 FY2003 21 199 184 142 106 19 conservation 89 Division 3 147 164 0 100 200 300 400 500 600 700 800 Electronic Component Division Electronics Equipmen Division

36 Global Environment and Casio Material Balance Casio strives to accurately grasp the input and output that go with business activities in an effort to further improve its environmental conservation activities.

fuel that releases less CO2 (from Bunker A Material Balance Material Balance fuel oil to light oil). of the Casio Group of the Electronic As for waste disposal, there has been a Component Division large increase in the chemical solutions used. For this reason, all sites strive to re- At Casio, the Electronic Component Divi- In the Electronic Component Division, pro- cycle wastes by selecting waste treatment sion and the Electronics Equipment Divi- duction has been growing rapidly since contractors that have the best treatment sion individually grasp their material and 1990, thanks to proliferation of such prod- facilities so as to reduce the volume of energy input, as well as the environmental ucts as personal computers and cell landfill wastes. As the result of these ef- impact that is discharged as the result, and phones. Accordingly, factory scales have forts, five sites out of a total of six that are uses the data to continue to improve their expanded and facilities and equipment subject to monitoring achieved zero emis- environmental conservation activities. have been added. This has had an effect of sions (or landfill wastes representing 1% or

boosting the total CO2 emissions to 74,607 less of the total wastes) by fiscal 2004.

In recent years, CO2 emissions of the tons in fiscal 2004, a 3.7-fold increase from (These five sites are Kochi Casio Co., Ltd. , Casio Group have been on a rising trend in 20,144tons in fiscal 1990. Kofu Casio Co., Ltd. (head office and Ichi- step with its expanding business. Further- In this division, heat sources for clean nomiya branch), Casio Micronics Co., Ltd. more, water usage has also increased as rooms and the equipment that detoxifies (in Yamanashi), and Casio Computer Co., the Electronic Component Division has effluent operate around the clock at a stea- Ltd. (Hachioji Research and Development grown in Japan. To offset the increased dy pace regardless of changes in produc- Center).) The remaining one site, where the water use, Casio has endeavored to use tion volumes, and constitute a major factor landfill wastes represent 1.23% of total recycled water. of energy and water consumption. All sites wastes, is expected to reach zero emission

are making ongoing efforts to reduce CO2 during fiscal 2005. As for wastes, Casio considers recycling emissions. One solution is to switch to a to be an important task, and preferentially hires waste treatment companies that pos- sess excellent recycling technology. In ad- dition, Casio makes efforts to reduce chemical substances, including chemicals that are used for treatment in the electronic component processes. As these examples show, Casio takes various environmental best treatment facilities so as to reduce the Material Balance volume of landfill wastes. As the result of measures in the course of its expansive of the Electronics business activities. these efforts, five sites out of a total of Equipment Division eight that are subject to domestic monitor- * Please see the details of Casio’s performance data on the following Website: ing achieved zero emission by fiscal 2004. In the Electronics Equipment Division, (These five sites are Yamagata Casio Co.,

URL http://www.casio.co.jp/env/ consumption of electricity decreased with Ltd., Casio Electronic Manufacturing Co., activity/report.html the introduction of co-generation at Yama- Ltd., Casio Computer Co., Ltd. (Head Of- (in Japanese) gata Casio Co., Ltd. in 2002. On the other fice and the Hamura Research and Devel- hand, an increase in the use of fuels has opment Center) and Casio Hitachi Mobile

become the major cause of a rise in CO2 Communications Co., Ltd.) The remaining

emissions. Total CO2 emissions grew from three sites are pressing forward with con- 13,891 tons in fiscal 2003, to 17,417 tons tinued improvements. in fiscal 2004, an annual increase of over 25%. On the basis of the unit of production,

CO2 emissions grew over 32% between fis- cal 2003 and fiscal 2004, from 0.153 (tons-

CO2/¥1,000,000) to 0.202 (tons-CO2 /¥1,000,000). Recognizing that the Kyoto Protocol mandates Japan to reduce its CO

2 emissions by six percent on an absolute basis, Casio will continue to pursue ener- gy-saving measures. As with the Electronic Component Divi- sion, the Electronics Equipment Division strives to recycle wastes by selecting waste treatment contractors that have the

37 Input and Output of the Electronic Component Division (Data were collected at six domestic sites. Please refer to page 1 for further details.) Greenhouse Emissions Global Environment Gases NOx: 16.3 tons CO2: 74,607 tons-CO2 SOx: 7.7 tons SF6: 16,551 tons-CO2 Dust: 0.6 tons Use of Recycled Electronic Industrial Water Component 3 Division 173,700 m Waste Water: Chemical 3 Energy 2,044.8 thousand m Substances Development Electricity 127.388 million kwh BOD: 18.6 tons (PRTR Law-controlled) and Design Fuels 8,044.9 kl 29.4 tons (crude oil equivalent) Water 2.551 million m3 Chemical substances (PRTR Law-controlled) 167.3 tons Procurement TFT-LCD W-CSP*2 COF*3 Finished modules Products Materials Input*1 Plastics 135.3 tons Metals 117.9 tons Manufacture Recovered Electronic parts Finished Product Users and Recycled and substrates 159.4 tons Manufacturers Packaging materials 607.4 tons TFT LCD Materials: 18.3 tons (including 464.4 tons of recycled Packaging Materials Recycled Waste: Transportation materials) 2,264.5 tons Resources Waste Reduced in Volume: (petroleum, Waste: 2,083.4 tons metals, 4,358.6 tons quartz, etc.) Sale

Processing Landfill Waste: Suppliers Intermediate 10.7 tons

*1 Material Input: Figures are for TFT LCD modules, W-CSP and COF. Apology and Correction: *2 W-CSP: An IC package whose entire packaging process is completed at the The Sustainability Report 2004 erroneously indicated that the Material In- wafer level. It is characterized by the fact that the package is minimized to the put contained “0.5 ton of packaging materials (including 0.3 ton of recy- exact size of a chip. cled materials).” This should have read “501.0 tons of packaging materi- *3 COF: An acronym for Chip on Film. A LSI chip is directly bonded to thin resin als (including 384.1 tons of recycled materials.).” film. It enables packaging of LSI in limited space efficiently at high density.

Input and Output of the Electronics Equipment Division (Data were collected at 17 domestic sites and 17 foreign Greenhouse Emissions sites. Please refer to page 1 for further details.) Global Environment Gases NOx: 83.4 tons CO2: 37,548.0 tons-CO2 SOx: 23.3 tons Global Environment and Casio Global Environment Dust: 2.0 tons Electronics Equipment Energy Division Waste Water: Chemical Electricity 45.317 million kwh 371,200 thousand m3 Substances Fuels 3,792.8 kl Development BOD: 6.8 tons (PRTR Law-controlled) (crude oil equivalent) and Design 0.0 tons Water 464.0 thousand m3 Chemical substances Electricity: (PRTR Law-controlled) 15.7 tons 88,140,034.0 kw Procurement

Electronic Tablet PCsWatches Digital CO2 Emissions: Materials Input*4 Dictionaries Cameras Products 24,968.0 tons 40,882.0 tons Manuals 4,342.0 tons (including 2,188.6 tons of Manufacture Products: Recovered recycled materials) 14,797.0 tons and Recycled Users Packaging materials 11,676.0 tons Packaging Materials: Materials: (including 8,970.7 tons of 2,705.3 tons Used PCs Used Consumables Consumables 1,091.0 tons recycled materials) Manuals: Transportation Printers for Label for Page Printers Printers 2,153.4 tons Resources Recycled Waste: (petroleum, 1,918.0 tons metals, quartz, etc.) Waste Reduced in Volume: Sale Waste: Suppliers 116.7 tons 3,085.2 tons Landfill Waste: Processing Intermediate 1,050.5 tons

*4 Material Input: Figures were estimated, based on the Apology and Correction: representative models of individual products. The Sustainability Report 2004 erroneously indicated that the Material Input contained “12,154.5 tons of packaging materials (including 10,052.6 tons of recycled materials).” This should have read “11,654.0 tons of packaging materials (including 8,625.0 tons of recycled materials).”

38 Global Environment and Casio Green Procurement and Green Purchases Casio promotes Green Procurement that is consistent with the RoHS Directive. Furthermore, Casio strives to improve the Green Purchase ratio throughout the company.

Changes in the Actual Rate of Green Green Procurement Procurement Efforts on Philosophy ■Domestic Overseas (Unit: %) Green Purchasing

97.4 100 91.1 80.3 77.4 In accordance with the Casio Group Green 80 70.0 Casio targets to raise its Green Purchasing Procurement Standard Manual, which was rate at its domestic sites to 60% by fiscal 60 54.7 created in November 2000, Casio evaluates 2007. As for intermediate goods, Casio the response to environmental conservation strives to purchase Green Goods as a gen- 40 with respect to parts and materials that eral rule. Accordingly, Casio ensures that at comprise Casio products and their manu- 0 least 90% of the products that are listed in FY FY FY FY facturing plants, and use the information in 2001 2002 2003 2004 the catalogue on the CATS e-P System* are the selection of preferential sources of pro- * The new targets for FY2005 are Green Parts Response Green Goods, and instructs Casio’s pur- Rates (the response rates regarding parts that are sub- curement. ject to monitoring) of 100% for both domestic and over- chasing agents to purchase goods from the Specifically, Casio defines “Green Produc- seas procurement. catalogue. CATS e-P System is a central- tion Plants” to be supplier plants that either ized purchasing system for intermediate are already ISO14001 certified, plan to be goods. As a result of these efforts, Casio certified within the following year, or score at achieved the domestic Green Purchase rate lease 70 points in Casio’s item-by-item as- of 41.2% (based on the number of purcha- sessment of ISO14001-compatibility even if ses) in fiscal 2004. they have no plans to be ISO14001 certi- In addition, Casio is constructing a mech- fied. In addition, Casio regards parts that anism to compute actual purchases by indi- satisfy Casio’s environmental standards with vidual departments, based on the purchase respect to energy conservation, resource Green Procurement Orientation Meeting data provided by the CATS e-P System and saving, recyclability, and chemical content to in cooperation with the Environmental Cen- be “Green Parts” and makes every effort to ter, to determine the current status and preferentially procure Green Production Future Green make an assessment. The company plans Parts that are manufactured at Green Procurement Efforts to use the data to urge preferential purchase Plants. of Green Goods when departments are In light of today’s rapid changes in the found not to be adhering to Green Purchas- mandate imposed by environmental laws In the past, Casio’s top priority target was ing to the extent desirable. and regulations, Casio currently considers preferential procurement of Green Parts. compliance with the European RoHS Direc- Green Procurement rates were viewed as Changes in the Actual Rate of Green tive and other environmental laws and regu- indicators of the Green Procurement pro- Purchasing (Unit: %) lations to be the top priority procurement gress every fiscal year. At this point, how- 80 60.0 consideration, and is re-examining its stan- ever, compliance with the RoHS Directive is 60 dards for preferential Green Product pro- the highest priority consideration. Casio’s 41.2 curement. current environmental action targets are to 40 36.7 25.8 “discontinue the use of substances that are 20 Fiscal 2004 Green banned by the RoHS Directive by the end of 0 2005” and increase the Green Parts re- FY FY FY FY FY FY Procurement Results sponse rate to 100%. Casio is devoting its 2002 2003 2004 2005 2006 2007 Target full efforts to achieve these goals. * CATS e-P System: A system under which estimates are To conduct a study of the contents of obtained from multiple suppliers for the same goods Casio set its goals for Green Procurement specified hazardous substances listed by and the purchase is made from the supplier that offers the lowest price. rate at 95% at domestic sites and 85% at the RoHS Directive, detailed data on chemi- foreign sites in fiscal 2005, and has worked cal substances must be collected. This re- toward these goals. It has achieved healthy quires extensive work. For this reason, Ca- results with the domestic rate reaching sio will work on improving the efficiency of 97.4% and the foreign rate 77.4% in fiscal such work as research, input and search by 2004. adopting IT tools to use on databases. In addition, Casio overhauled its Standard Regarding preferential procurement of Manual in March 2004 to be consistent with Green Parts based on the Casio standards, the draft standards of the European RoHS policies are currently under review. Casio

Directive. Casio invited its Japanese and plans to establish and promote new activi- A CATS e-P System Screen overseas business partners to an orientation ties policies and indices once its action on meeting, where they were asked to show environmental laws and regulations runs its understanding and offer cooperation. course.

39 Global Environment and Casio Consideration for the Environment in Product Development Casio strives to promote the development of Green Products and an increase in their percentage in total sales, based on clear design standards and detailed assessment criteria.

Flow of Product Assessment line with the Casio Guidelines for Green Efforts on Product Products Development. The results of a Assessment Standards and Format product assessment that is performed • Casio Guidelines for Green Product Development based on the guidelines are summarized in • Documented procedures for product environmental audits • Product environmental audits sheet the “Product Environmental Audit Sheet.” Since 1993, Casio has been conducting An assessment consists of an product assessment on new products, Audits within divisions “Environmental Design Assessment” and an based on the Casio Voluntary Plan for the Assessment of design and planning “Environmental compliance Assessment” Environment. with respect to eco-products of the product Assessment of design decisions In 2001, the “Casio Guidelines for Green design. Product Development” were created to Assessment of overall design The “Environmental Design Assessment” clearly establish the design standards for evaluates the extent to which basic eco- Casio Green Products, which are eco-prod- Environmental Center’s certification and approval of audits products design features are adopted. The ucts. Product assessment is conducted at “Environmental compliance Assessment” Physical audits of products each of the planning, design review and de- Proceeds to certification if the standards have evaluates the extent to which advanced been met, based on the verification of actual sign in accordance with the Guidelines and products and the audit sheet. eco-products design features are incorpora- the “Documented procedures for product ted. Products that meet the standards in Product certification registration environmental audits.” During fiscal 2004, A Green Product certification, following approv- both of these assessments are certified as 65 product assessments were conducted in al of the Director of Environmental Center. Casio Green Products and are issued certifi- the Electronics Equipment Division and 61 cation numbers. assessments in the Electronic Component Division. Issuance of a Certification Number Fiscal 2004 Targets and Product Assessment Results Green Product registration/ Disclosure on the Website Results Electronics Equipment Division Electronic Component Division (Unit: number of assessments) 200 166 172 80 157 Casio initiated the “Casio Green Products 150 45 73 126 System of Green (C.G.P.) Activity” in fiscal 2001 and has since 100 121 61 worked toward the target of raising Green 92 84 Product Certification 50 65 Product sales to 50% of total product sales 0 by fiscal 2005. FY FY FY FY 2001 2002 2003 2004 At Casio, all new products are developed in In fiscal 2004, Green Product sales ac- counted for 59% of total sales, allowing Ca- Green Product Certification Criteria sio to achieve the goal one year ahead of and Casio Global Environment

Consumer Products schedule. With a new Green Product sale Environmental Design Assessment: Environmental Product Assessment: target set at 70% to be reached by fiscal Minimum required score is 90 out of total 100 points. Compliance with at least two amount the six items is required. 1 Labeling of materials used 1 Reuse of resources: products other than watches 2007, Casio will plan to make assessment 2 Recycling-friendly Design Allergic safety:watches of individual items on the product environ- 3 Standardization of functional parts types 2 Reduced power usage and extended battery life 4 Ease of disassembly mental audit sheet, select technical tasks to 5 Battery recycling 3 A parts count reduction be accomplished and make improvements 6 Use of material identification codes 7 Disclosure of environmental data 4 Effective use of resource saving measures(or recycled materials) on the focused areas so as to continue to 8 Sorting and disassembly down to single materials raise the Green Product percentage. 9 Recycled resources 5 Use of lead-free solder 10 Green Procurement* 6 Elimination of harmful substances in parts* 11 Ozone layer protection and pollution control Percentage of Green Product Sales (Unit: %) System Products 90 70 Environmental Design Assessment: Environmental Product Assessment: 59 Minimum required score is 810(90%) out of total 900 point. Office computers and printers must meet at least 60 three of the items. Handy terminals and electronic 44.4 1 Energy conservation registers must meet at least two of the items. 35.3 30 1 Top runner in resource savings 2 Reducing resource use 2 Top runner in energy conservation 1 0 3 Reuse 3 Top runner in environmental impact FY FY FY FY FY FY FY 4 No use of lead* 2001 2002 2003 2004 2005 2006 2007 Target 4 Recycling 5 No use of hazardous substances* (in plastics) or free of halogen * (in PCB) 5 Easy processing 6 No use of chrome* Green Product Certification Results 7 No use of PVC* 6 Environmental soundness (Unit: number of models) 8 Response to product recycling systems (for product bodies) FY FY FY FY 7 Packaging materials 2001 2002 2003 2004 Energy Star (an energy saving label) certifica- 8 Information disclosure Consumer Product 9 tion, an industry ecolabel certification, registra- 2 61 55 50 tion in an outside environmental database, or 9 User manuals, catalogues, etc. third-party ecolabel certification. System Equipment Product ― 5 12 4 * Must be at or below the threshold value set by Casio’s Green Procurement Standards.

40 Global Environment and Casio Consideration for the Environment in Product Development

Examples of Green Products A high-performance, elegant, slim credit card size digital camera [EXILIM CARD EX-S500]

This is a digital camera that realized a slim credit hand motions and movements of the objects card-size body with the use of a new slim 3X when still pictures are being taken. optical zoom lens and the high-density packag- ing technology. Thanks to low power consump- [Green Product Technology Points] tion, it has an extended battery life, enabling ap- • “EXILIM Engine,” a proprietary ultra-compact image pro- cessing module that achieves energy saving and a size proximately 200 still pictures and 1 hour and 20 reduction, is installed. • A metal (SUS316) that is easily recyclable is used for the minutes of video time. The signal process tech- outer case. nology called “Anti-Shake DSP” used in the EXI- • No cadmium, mercury or hexavalent chromium is used in the product. EXILIM CARD EX-S500 LIM engine enables high sensitivity shots, and • No polyvinyl chloride (PVC) is used in the packaging ma- Digital Camera the fast shutter speed reduces blurring from terials. A digital camera that saves energy and resources [EXILIM ZOOM EX-Z57]

Using the latest semiconductor process and [Green Product Technology Points] large capacity batteries, as well as a low voltage • An easily recyclable metal (aluminum) is used for the outer case. EXILIM Zoom EX-Z57 driver system, this camera has a high-resolution • No cadmium, mercury or hexavalent chromium is used in the product. Digital Camera 5 megapixel CCD, in addition to a 3X optical • The volume of the package box is reduced by 51% zoom lens and a large 2.7-inch display. None- (compared with Casio’s QV-4000). • No polyvinyl chloride (PVC) is used in the packaging ma- theless, it has a longer life than the previous 2.0- terials. inch model (EX-Z4), and can take approximately 400 shots on a single battery charge. (EXZ-4 EX-Z4 EX-Z57 takes 144 shots.) (The battery life is about 2.7 Pixel Count: 4 million Pixel Count: 5 million times longer.) LC display: 2.0 inches LC display: 2.7 inches Number of shots: 144 Number of shots: 400 Electronics dictionaries made with easily recyclable materials [EX-word Series]

Super-high resolution liquid crystal (HVGA) en- [Green Product Technology Points] ables the industry’s first 480 x 320 dot display, • An easily recyclable metal (aluminum) is used for the outer case. Ex-word Series of replacing the 320 x 240 dot display used in the • No cadmium, mercury or hexavalent chromium is used Electronic Dictionaries in the product. company’s earlier electronic dictionary models. • No polyvinyl chloride (PVC) is used in the packaging ma- Even small letters and Chinese characters with terials. numerous strokes are displayed beautifully and Paper Use Reduction Effects of Electronic Dictionaries Paper Reduction Effects smoothly. A variety of user-friendly features are If all the dictionaries that are contained in the electronic dictionaries (Unit: 10 thousand trees) 50 44 that Casio sold in 2004 were to be converted to paper dictionaries, added, including TAFCOT, a strengthening de- 40 30 they would weigh 22,071 tons. Assuming that 50 kg of paper is pro- 30 sign that softens the shock of an accidental 20 13 duced from one tree, approximately 440 thousand trees (22,071 tons 10 0 drop. divided by 50 kg) were saved. FY2002 FY2003 FY2004

Electronic musical instrument contributes to energy and resource savings [ PX-100]

Casio performed a computer-assisted strength was slashed by 50% and the board area was analysis and built a resin-made body structure cut by 17%. With these improvements, Privia that combines a wood cabinet, a keyboard unit provided the basis for greening of future elec- and a metal reinforcement board into a single tronic pianos. unit, the very first in the industry. The company succeeded in an approximately 40% weight re- [Green Product Technology Points] duction and an approximately 20% reduction in • An approximately 40% reduction in weight. • An approximately 20% reduction in depth. depth in comparison with its conventional mod- • A 50% reduction in the LSI count. els. Capitalizing on the company’s high-density • A 17% reduction in the board area. Privia PX-100 * In comparison with Casio’s PS20. Electronic Musical Instrument packaging technology, the sound source board • No cadmium, mercury or hexavalent chromium is used in the product. was also reduced in size at the same time. In • No polyvinyl chloride (PVC) is used in the packaging ma- comparison to previous models, the LSI count terials.

41 Examples of Green Products A Solar-powered, radio-controlled watch with lower power use and smaller size [Oceanus]

Casio has worked on reducing the size of inter- motor and the SOI (rapid process low voltage nal antenna and its power consumption, as well transistor) technology. Together with a solar bat- as performance improvement of solar recharge tery, the technology gives Oceanus a long life. systems, since it adopted the technology to correct time by receiving standard radio waves [Green Product Technology Points] through an antenna in its wristwatches. For • Power consumption is reduced with the development of a low power consumption motor. Oceanus, a system that improves the efficiency • An easily recyclable metal (SUS) is used for the outer case. Oceanus Watch of radio reception was developed and adopted, • No cadmium, mercury or hexavalent chromium is used together with a reduction in the size of an anten- in the product. • No polyvinyl chloride (PVC) is used in the packaging ma- na. In addition, low power consumption was re- terials. alized with the use of a low power consuming

Compact, lightweight and energy efficient cell phone A5512CA The compact body of approximately 89 cc holds a 1.28-megapixel camera. Shots of up to the SXGA size (1280 x 960 dot) are possible. Sub A5406CA A5512CA Comparison with liquid crystal display comes loaded with a practi- (2004 Model) (2005 Model) A5406CA cal and fun watch. The screen is designed to display FLASH animation, using FLASH Lite. Size Approximately 51 (width) x Approximately 49 (width) x A 21% reduction (when folded) 102 (height) x 28 mm (depth) 94 (height) x 25 mm (depth) in volume [Green Product Technology Points] Weight • This cell phone was developed under the concept of a A 16% (including Approximately 125 g Approximately 105 g reduction compact, lightweight and energy efficient. Semiconduc- batteries) tors, which were conventionally packaged on a board, are integrated into on system LSI. By making parts’ pad Continuous stand-by: Continuous stand-by: A 35% pitch narrow, the board was made smaller and the num- Approximately 200 hours (when folded) Approximately 270 hours (when folded) increase ber of parts was reduced by 13%. Battery life Continuous talk: Continuous talk: A 12% Approximately 160 minutes Approximately 180 minutes increase

Evaluation of Casio Green Products (Cellular Phones) by the LCA Casio Green Products A5406CA (2004 model) and A5512CA (2005 model) were evaluated, using Casio’s LCA standards. [Life Cycle Stages Assessed] [Conclusions] 1. Comparison at the material procurement stage Procurement The environmental impact of A5512CA (2005 model) is smaller than that of Use Disposal Recycling of Materials A5406CA (2004 model) in terms of both relative energy consumption and CO2 Effects*1 emissions. This is the result of a reduction in the number of parts used in A5512CA Resource Reuse as and its weight reduction, which manifested themselves in the LCA evaluation. Recovery Materials for Manufacturing Transportation Other 2. Comparison at the use stage Recycle

of Products and distribution Products At the use stage, the environmental impact of A5512CA (2005 model) is smaller and Casio Global Environment than that of A5406CA (2004 model) in terms of both relative energy consumption

and CO2 emissions. This is the result of reduced power consumption and the ex- Assumption for LCA Calculations: Products are used for five years. tended battery life of A5512CA, which manifested themselves in the LCA evalua- [LCA Evaluation Results] tion. 3. Comparison of Recycling Effects Inventory Analysis*2 (per unit of product) The recycling effects of A5406CA are greater than those of A5512CA in terms of Energy Consumption and Reduction both energy reductions and CO2 reductions. This indicates the high content of re- cyclable materials in A5406CA, which raises its likelihood of post-disposal use as A5406CA A5512CA (Unit: mega joule) materials for other products. 150 142.1 120 107.5 115.8 *1 Recycling Effects 90.1 90 When a product is reused for materials (recycled materials) for other products after 60 the recycling stage, the materials are assumed to be used in the material procure- ment stage of the other products for computation purposes. In this example, the 26.7 30 19.4 recycling rate of 100% was assumed with respect to recovery and recycling, based 5.9 Consumption 0 5.1 0.2 0.2 1.8 1.0 on the recycling system of KDDI Corporation to whom the end-of-life products were sold. 30 10.0 8.7 10.0 8.7 Procurement Manufacture Transportation Use Disposal Recycling Total KDDI’s Recycling System of of and and Effects Recovered end-of-life cell phones, etc. Reduction Materials Products Distribution Recycle Cellular Phone Body Batteries Charger CO2 Emissions and Reductions Recycling Company Manual Disassembly and Sorting of Materials A5406CA A5512CA (Unit: kg) Plastic Steel AluminumCopper Materials Batteries 10 8.9 8 Refining by Individual Makers 6.5 6.8 6 5.6 Recovered Resources Steel Aluminum Copper Gold Silver Palladium ABS Resin Cobalt Nickel Cadmium 4 2 1.3 1.0 1.0 *2 Inventory Analysis Emissions 0 0.3 0.2 0.0 0.0 0.0 Creating a list of the environmental impact input (energy, raw materials, parts, etc.) 2 0.4 0.0 0.4 0.0 and the environmental impact output (CO2, waste, etc.) at every stage that are Procurement Manufacture Transportation Use Disposal Recycling Total quantified. This enables quantification of environmental input and output. of of and and Effects

Reduction Materials Products Distribution Recycle

42 Global Environment and Casio Prevention of Global Warming Casio tackles prevention of global warming from a number of different angles, including CO2 emission reductions.

cut its CO2 emissions by 6% between 2008 Changes in the CO2 Emissions and CO2 Reduction of CO2 and 2012 from the levels of fiscal 1990. To Emissions per Unit of Sales at Overseas Sites Emissions comply with this mandate, Casio will study CO2 Emissions ●CO2 Emissions per Unit of Sales ways to reduce total emissions by taking (Unit: ton-CO2) (Unit: ton-CO2/¥1 million) 25,000 0.8 20,131 part in emissions trading, etc. 20,000 17,794 0.6 14,993 15,000 Casio set out to reduce CO2 emissions per 0.4 10,000 0.50 unit of production by 10% in fiscal 2005 0.37 0.40 0.2 5,000 and by 25% by fiscal 2010 from the levels 0 0 Example of Efforts FY2002 FY2003 FY2004 of fiscal 1990. However, the company’s CO2 * The data were collected from 16 sites, not including emissions per unit of production in fiscal Efforts of Casio Micronics Co., Ltd. Casio (Shanghai) Co., Ltd.

2004 amounted to 0.48 ton – CO2/¥1 mil- Casio Micronics Co., Ltd. remodeled its lion, a 14% increase over the FY 1990 lev- factory and installed a free cooling system (which uses cool outside air for air condi- Reduction of Other els. tioning), and reduced power consump- Greenhouse Gases Starting with fiscal 2005, the company tion, which in turn lowered CO2 emis- will use CO2 emission figures per basic unit sions. At the company’s head office (in of actual production, which corrects the ba- Ome), Special Bunker A fuel oil was re- placed with city gas as the fuel for air sic unit of production with Bank of Japan’s SF6 Reductions conditioning of its clean rooms. As the ■ 6 Domestic Enterprise Price Index (electronic exhaust gas became cleaner, CO2 emis- Casio uses SF in its manufacturing pro- equipment) so as to more accurately reflect sions were slashed by 2% from the levels cess. Until last year, Casio stated its SF6 the realities of changes in business modes of fiscal 2003. use efficiency to be 0.75. This year, the in line with the policies of the four electrical company hired a specialized contractor to and electronic industry associations. Using perform a component analysis. The results the corrected emission figures per basic ■ CO2 Emissions at Overseas Sites found that the use efficiency was 0.5 or unit of actual production, Casio targets to In fiscal 2004, the new inclusion of P.T. lower with some variance. Furthermore, the reduce CO2 emissions by 10% in fiscal Asahi Electronics Indonesia, which con- use efficiency rates fluctuate under different 2005 and 20% in fiscal 2010. P32 sumes large quantities of energy, in the conditions. Consequently, past data are re-

study caused both the total CO2 emissions stated here, using the use efficiency of 0.5,

■ Efforts to Reduce CO2 Emissions and the CO2 emissions per basic unit of a guidance value suggested by the Japan

With respect to efforts to reduce CO2 emis- sales to rise. The unit was computed by Electronics and Information Technology In- sions, Casio has switched to a fuel that using as the denominator the sales figures dustries Association. generates less CO2 and adopted co-gener- after they were converted to yen. ation. In addition, individual sites are taking Changes in SF6 Usage, Emissions, measures individually to reduce CO2 emis- and CO2 Equivalent Emissions sions. Use of SF6 SF6 Emissions ■CO2 Conversion Unit The Kyoto Protocol mandates Japan to ●CO2 Emissions per Basic Unit of Production

(Unit: kg) (Unit: ton-CO2) (Unit: ton/¥1 million) 2,000 20,000 Changes in CO2 Emissions and CO2 Emissions per Unit of Production at Domestic Sites 16,551 17,328 0.60 0.429 15,248 CO2 Emissions: Electronics Equipment Division Electronic Component Division 1,500 0.413 15,000 Basic Unit of Production: ■Electronics Equipment Division ●Electronic Component Division Total 14,209 0.312 0.440 0.45 0.283 0.273 (Unit: ton-CO2) (Unit: ton/¥1 million) 1,000 1,189 10,000 1,450 100,000 16,688 1.0 6,931 6,584.45 1,385 0.30 0.87 17,417 1,276 0.83 14,119 13,891 500 5,000 16,633 14,737 15,064 580 551 595 638 693 725 0.15 80,000 0.81 0.8 290 276 0 0 FY FY FY FY FY FY 0.00 0.71 0.57 2000 2001 2002 2003 2004 2005 60,000 0.61 0.48 0.6 0.50 0.63 0.42 0.42 0.55 0.38 40,000 0.48 0.4 10,246 0.42 0.31 ■ Total Discontinuation of NF3 0.20 0.20 0.21 0.20 0.15 20,000 0.21 0.13 0.2 Cleaning Gas 0.11 In the past, Kochi Casio used NF3 as a 20,144 62,371 67,647 72,250 71,503 74,607 78,273 80,009 0 0 FY1990 FY2000 FY2001 FY2003 FY2004 FY2005 FY2010 cleaning gas in its TFT LCD manufacturing Target Target process. NF3 was replaced with COF2 by

Changes in CO2 Emissions per Unit of Production Corrected for Price Index March 2005. ■Electronics Equipment Division ●Electronic Component Division Total (Unit: ton/¥1 million) NF3 is not among the six gases specified 1.0 0.87 in the Kyoto Protocol. However, its warm- 0.8 ing coefficient is 10,800 times on a CO2- 0.6 0.51 0.47 0.42 0.42 converted basis. In comparison, the coeffi- 0.34 0.37 0.4 0.31 0.31 0.29 0.32 0.27 cient of COF2 is 1, the same as CO2. There- 0.23 0.25 0.20 0.2 0.21 0.14 0.12 0.12 0.08 0.11 0.07 0.18 fore, the effects on warming can be re- 0.06 0 FY1990 FY2000 FY2001 FY2002 FY2003 FY2004 FY2005 FY2010 duced to 1/2500 in spite of a four-fold Target Target increase in the volume of gas used.

43 Global Environment and Casio Prevention of Air Pollution Casio promotes the reduction of SOx, NOx and dust emissions through facilities and energy conversions.

2004 than in fiscal 2001, which precedes drastically reducing their emissions. Reduction of SOx, NOx the introduction of co-generation. and Dust Emissions ■ Emissions of SOx, NOx and ■ Efforts to Reduce Emissions Dust at Overseas Sites Regarding SOx, NOx and dust emissions, In fiscal 2004, Casio Korea Co., Ltd. and The emissions of SOx, NOx and dust are Casio will promote the use of turbo freez- Casio Electronics (Zhongshan) Co., Ltd. shown in the following graph. ers, the gentlest kind of freezers to the en- were able to reduce their NOx and dust In the Electronics Equipment Division, vironment, as a company-wide policy. In emissions, thanks to facilities alterations. the emissions of SOx and NOx have in- addition, Casio will promote the replace- However, SOx emissions at Casio Electron- creased substantially since fiscal 2003. ment of heavy oil with such fuels as kero- ics (Zhuhai) Co., Ltd. increased as ade- This is due to the full-capacity operation of sene and city gas to reduce emissions. quate measures were not implemented. co-generation, which burns heavy oil, at In fiscal 2004, fuel for absorption-type The company plans to take action toward Yamagata Casio Co., Ltd. as growing pro- freezers was changed from heavy oil to reduction of emissions in the future. duction necessitated an increase in electri- kerosene in an effort to reduce SOx, NOx As of fiscal 2004, there are no facilities city. The measured values of emissions at and dust emissions. that emit NOx, SOx or dust at Casio’s over- Yamagata Casio Co., Ltd. clear the ordi- Furthermore, old boilers at Casio Hitachi seas sites with the exception of Casio Kor- nance standards. Mobile Communications Co., Ltd. and Ha- ea Co., Ltd., Jiu Shui Keng Casio Electron- Co-generation was introduced to lower chioji Research and Development Center ics Factory, Casio Electronics (Zhuhai) Co.,

CO2 emissions per unit of production. The were replaced with new models that emit Ltd. and Casio Electronics (Zhongshan)

CO2 emissions per unit of production were little SOx, NOx or dust in the building that Co., Ltd.

0.038 ton-CO2/¥1 million lower in fiscal went through remodeling and additions,

Table of Comparison of Freezer Emissions Impact on the Environment Changes in NOx, SOx and Dust (Calculations based on the operating conditions within Casio) Emissions at Overseas Sites Equipment Calculated Main Energy Source C Emissions During NOx SOx Dust (Unit: ton) 1 Hour of Operation Capacity Auxiliary Power 2.00 Name Energy Source (RT)Source (KgC) Ratio 1.71 1.66 500 Electricity 315 Kw 2.75 Kw 133.5 100% Turbo Freezer 1.50 1.25 Cooling and Heating 3 1.20 Machine (Standard) 500 City Gas 136 Nm /h 9.95 Kw 295.6 221% 1.13 0.94 0.93 Cooling and Heating 1.00 City Gas 129 Nm3/h 11.75 Kw 281.4 211% Machine (Energy-saving) 500 Cooling and Heating 500 Kerosene 162 I/h 11.75 Kw 415.0 311% 0.51 Machine (Standard) 0.50 0.40

Cooling and Heating and Casio Global Environment Machine (Standard) 500 Bunker A Fuel Oil 152.5 I/h 15.75 Kw 415.9 312% 0 * Turbo freezers exert the least environmental impact. Because they run electricity, they emit no NOx, SOx or dust in house. FY2002 FY2003 FY2004

Changes in NOx, SOx and Dust Emissions by the Domestic Electronic Component Division NOx SOx Dust (Unit: ton) 25 22.7 19.8 20 18.0 16.3 15

10 8.9 8.9 7.5 7.7 5.3 5.8 5 0.6 0.7 0.9 0.7 0.6 0 FY2000 FY2001 FY2002 FY2003 FY2004

Changes in NOx, SOx and Dust Emissions by the Domestic Electronics Equipment Division NOx SOx Dust (Unit: ton) 100 82.92 80 68.74 60

40 21.23 22.42 20 3.46 2.55 0.16 3.27 1.50 0.15 0.67 1.60 0 FY2001 FY2002 FY2003 FY2004

44 Global Environment and Casio Control of Chemical Substances Casio exercises proper control of chemical substances in compliance with the PRTR Law and endeavors to reduce the volume of their use.

the Kofu region. The company is thus Control of Substances Complete Discontinuation awaiting the completion of treatment facili- Subject to the PRTR Law of Hydrochlorofluorocarbon ties in 2007. None of Casio’s overseas Use sites holds or controls PCB.

Regarding control of chemical substances, Casio set out to terminate the use of hy- Casio has in place a system of environ- drochlorofluorocarbon by the end of 2004 Complete Discontinuation mental control organizations that are set up at all of its manufacturing sites, including of Solder containing lead at sites where chemical substances are those of its contractors. This goal was met used. Built in these organizations are or- in March 2005 as all corporations cooper- ganizations that control chemicals. Under ating with Casio ended the use of the sub- Casio used lead-free solder in its Eco elec- this system, Casio controls chemical sub- stance. tronic calculators in 1999, the first such at- stances that are subject to the PRTR Law tempt for the company. Since then, the and files reports as required. company has worked on curtailing the use At sites that use large quantities of Storage of of solder containing lead. In fiscal 2003, chemical solutions, drills are held to be PCB-containing packaging technologies that are free of ready for such emergencies as chemical Equipment solder containing lead were established in solution leakage. all departments, and the use of solder con- Casio targets to complete the proper dis- taining lead ended at the end of fiscal ■ Efforts to Reduce Quantities posal of all PCB-containing equipment by 2004. There are, however, some models Used/Transferred the end of fiscal 2005. Equipment that is that were excluded from the change, in- There has been a large increase in the currently included in the disposal plan con- cluding those models that are destined for quantities of PRTR-controlled chemical sol- sists of 19 capacitors condensers and 258 discontinued production. utions that are used, due to a massive in- small ballast for fluorescent that were used Use of solder containing lead at over- crease in the volumes of production at in lighting fixtures, all of which are held at seas sites changed over time as shown in electronic component manufacturing Hachioji Research and Development Cen- the following chart. However, a switch to plants. At Kochi Casio Co., Ltd., Casio Mi- ter, Hamura Research and Development lead-free solder was completed at the end cronics Co., Ltd. and Kofu Casio Co., Ltd., Center and Kofu Casio Co., Ltd. of fiscal 2004. efforts are under way to recycle chemical Casio has stored these items under opti- solutions (amino ethanol, hydrogen fluoride mal conditions and filed reports in compli- Changes in the Use of Solder containing and its water-soluble salts) so as to achieve ance with the law. Their disposal has been lead at Overseas Sites (Unit: ton) reductions. planned to mesh with prefectural plans for 25 21.78 disposal facilities. Recycling of Used Chemical Solutions 20 Casio has made reservations for dispos- 15.97 Chemical Solution Companies al in Tokyo with Japan Environmental Safe- 15 12.61 Recycling ty Corporation to dispose of the items that Replenishment Distillation 10 with New Solutions are held at Hachiouji Research and Devel- opment Center and Hamura Research and 5 3.74 Delivery Purchase Development Center, and are awaiting the

Supply Equipment Recov- startup of the treatment facilities. The items 0 Waste FY2002 FY2003 FY2004 FY2001 ery Tank Primary Storage that are stored at Kofu Casio Co., Ltd. Used in Processes must be treated in Hokkaido because of Casio restrictions on disposal placed by law in

Transfers and Emissions of PRTR-controlled Substances *Column totals in the table may not add up, due to rounding errors. (Unit: ton) FY2003 FY2004 Class 1 Designated Substance Site using one Amount released Amount Site using one Amount released Amount Chemical Substance Name No. or more tons of Amount transferred Quantities Quantities or more tons of Amount transferred Quantities Quantities the substance handled Atmosphere Public Waters and waste Consumed Recycled the substance handled Atmosphere Public Waters and waste Consumed Recycled Ethylbenzene 40 1 11.71 3.55 8.16 1 9.37 2.48 6.90 Ethylene glycol* 43 Decreascd below 1 ton in fiscal 2004 by reviewing used chemicals 1 3.24 3.24 Xylene 63 2 49.25 24.13 25.12 2 42.28 18.49 21.43 2.36 Octyl phenyl ether 308 1 1.18 1.18 1 3.15 3.15 2-ethoxyethyl acetate 101 3 16.99 6.87 10.12 3 17.17 6.53 10.64 Theouria 181 1 15.36 15.36 1 23.59 0.00 23.59 Water-soluble copper salt 207 1 16.89 0.04 16.85 1 23.98 0.01 0.04 23.92

Toluene 227 1.47 1.47 No use within the Group as the processes that use the controlled substances are contracted out Hydrogen fluoride and its water-soluble salts 283 1 13.30 0.07 2.59 10.62 1 9.60 1.92 7.68 2-amino ethanol 16 2 29.83 0.03 0.03 29.77 2 36.86 0.07 0.04 1.87 34.88 Total 155.9 36.12 2.67 75.61 41.57 169.24 27.42 2.00 94.74 2.36 42.56 *Ethylene glycol exceeded 1 ton in FY2004 again because of the start-up of a new business at Casio Micronics Co., Ltd. (head office).

45 Global Environment and Casio Reduction of Industrial Water Use and Prevention of Soil and Water Contamination Casio strives to reduce the use of industrial water through such means as recycling of wastewater and prevent the release of contaminants to waterways, soil and subterranean water.

■ Industrial Water Usage at Over- Reduction of Industrial seas Sites Prevention of Soil and Water Use and that of In fiscal 2004, such factors as the new in- Underground Water Waste Water clusion of P.T. Asahi Electronics Indonesia, Contamination which uses large quantities of water, in this Casio targets to accomplish a 5% reduc- report and a production increase at Casio With respect to prevention of soil and un- tion in its industrial water usage per unit of (Thailand) Co., Ltd. caused both the water derground water contamination, no acci- production by fiscal 2005 over the levels of usage and the water usage per unit of dents, such as leakage, occurred at any of fiscal 2000. Casio’s company-wide water sales to rise. Notwithstanding, Casio is Casio sites during fiscal 2004. No contam- usage in fiscal 2004 amounted to 14.2 working to lower water usage per unit by ination was found in soil or rivers in the vi- thousand m3/¥1 million, an 18% increase organizing a water usage reduction cam- cinity of Casio sites, either. over the fiscal 2000 usage of 12.0 thou- paign at all sites. sand m3/¥1 million. ■ Status in Fiscal 2004 This was in part due to an increase in the Changes in the Use of Water and those of the Casio makes it a policy to preferentially ex- Water Use per Unit of Sales at Overseas Sites use of water for cleaning, air conditioning amine soil of the premises on which the Water Usage ●Water Usage per Unit of Sales and Yamagata Casio’s co-generation, re- (Unit: m3) (Unit: m3/¥1 million) company has a manufacturing plant or sulting from an increase in production vol- 400,000 12.0 conducts research and development for 300,000 261,661 265,404 285,264 10.0 umes. The other reason was a fall in the contamination. In the event contamination 200,000 8.0 7.13 sale price. The water use per unit of pro- 100,000 6.51 5.91 6.0 is found, the findings are disclosed. duction, after adjustment for Bank of Ja- 0 4.0 Moreover, a contamination study must FY2002 FY2003 FY2004 pan’s Domestic Enterprise Price Index * The data were collected from 16 sites, not including be completed and the absence of contam- (Electrical Equipment), amounted to 7.5 for Montres Casio France S.A. ination confirmed before any land is newly fiscal 2004 for the entire company, an ap- purchased. In January 2005, land was pur- proximately 15% decrease over the levels Prevention of Water chased for the second plant of Casio Mi- of fiscal 2000. Contamination cronics Co., Ltd. This too was preceded by a soil study, which was conducted at the ■ Efforts to Reduce Water Use and expense of the landowner, and the ab- the Waste Water Volume Casio steadfastly performs regularly- sence of problems was confirmed. With a rise in the production volume, water scheduled maintenance of its wastewater use in manufacturing processes also grew. treatment facilities and water quality The installation of facilities to reuse waste checks that are mandated by law, as well Results of Soil Contamination Studies in FY2004 (Unit: number of studies) water at Kochi Casio Co., Ltd., Kofu Casio as files reports to government offices as re- Co., Ltd. and Casio Micronics Co., Ltd., quired by law and ordinances. Casio has Domestic Overseas however, led to the Electronic Component never experienced contaminants surpass- Land on which a and Casio Global Environment study was completed 4 1 Division’s use of 1,747 thousand m3 of re- ing their standards-specified limits. Land that was revealed cycled water, representing 6.7% of the total With respect to facilities, Casio sets its to have contamination 0 0 water use in the preceding fiscal year, or voluntary standard values at 10 percent or Land that has been 0 0 2,551 thousand m3. By striving to increase more below the standards that are estab- cleaned the use of recycled water, Casio hopes to lished by the national and local govern- continue to lower its industrial water use ments so as to ensure that Casio always ■ Efforts to Reduce Impact and the volume of its wastewater. clears such government-established stan- As for wastewater facilities that may cause dards. Casio installs equipment that is ca- soil contamination, Casio implements such pable of clearing such values by consulting measures as a double structure for piping equipment makers. and enclosing chemical solution tanks with concrete that has been given anti-leakage treatment. Whenever suppliers deliver Changes in the Usage of Water / Changes in the Water Usage per Unit of Production at Domestic Sites chemical solutions, a Casio supervisor is Water Usage: Electronics Equipment Division Electronic Component Division Water Usage per Unit of Production:■Electronics Equipment Division ●Electronic Component Division ◆Total present on site so that immediate action (Unit: thousand m3) (Unit: m3/¥1 million) can be initiated in the event of unanticipa- 3,000 30 26.5 168 ted accidents. The departments that use 25.0 179 24.1 2,500 168 25 21.7 2,655 large quantities of chemical solutions that 213 170 199 2,551 19.4 2,000 2,172 2,230 2,454 20 can contaminate soil conduct annual drills 2,047 20.0 14.2 15.3 14.2 by simulating a chemical leakage to ensure 1,500 12.8 15 12.0 11.4 full readiness. 1,000 10

500 5 2.4 2.5 2.5 1.8 2.1 1.5 0 0 FY2000 FY2001 FY2002 FY2003 FY2004 FY2005 Target

46 Global Environment and Casio Reduction of Waste Generation and Landfill Wastes Casio has been working to reduce emissions and promote recycling toward the goal of zero emissions at all Casio sites.

to reach the goal. waste by promoting contracts with the Zero Emission * Casio defines “zero emission” to be landfill wastes rep- most suitable contractors for the specific resenting 1% or less of the total wastes. types of wastes at each Casio site.

Reduction of ■ Status of Wastes at Overseas Sites Casio has set up targets in the area of Landfill Wastes Starting with fiscal 2004, P.T. Asahi Elec- waste generation curtailment to reduce tronics Indonesia was newly included in waste generation per unit of production by this report. As a result, both the total vol- 30% in fiscal 2005 from the levels of fiscal As the following diagram shows, waste ume of wastes and their volume per unit in- 2000, and achieve zero emission. * treatment follows a series of steps taken by creased. At present, measures to reduce In fiscal 2004, Casio reduced its waste a contractor. These steps consist of sort- the total volume of wastes and their unit generation, partly by installing condensa- ing, intermediate processing, recycling and are being examined. tion equipment (through evaporation of wa- burial of the final residues in a landfill. Changes in the Quantities of Wastes ter) for waste chemical solutions in the The ability of a waste management com- Generated / the Quantities of Landfill Wastes Electronic Component Division. The overall pany to properly process waste is a pre- / the Quantities of Wastes Generated per Unit waste generation per unit of production requisite for the reduction of landfill wastes. of Sales at Overseas Sites was 30.1 tons/¥1 million, which was 85% Thus, sorting of wastes at the sites where Quantities of Wastes Generated Quantities of Landfill Wastes of the level reported in fiscal 2000. such wastes are generated is extremely im- ◆Quantities of Wastes Generated per Unit of Wales Regarding the zero emission target, 10 portant. Accordingly, Casio has implemen- (Unit: ton) (Unit: ton/¥100 million) 2000 5.00 of the 14 sites that are subject to domestic ted activities to ensure that wastes are sor- 1,656.4 1600 4.14 4.00 1,123.4 monitoring achieved zero emission. The re- ted properly at each of its sites. 1200 960.8 3.00 maining four sites are taking various steps Casio also promotes reduction of landfill 800 712.2 2.54 2.00 410.2 400 322.0 1.00 0 1.77 0 Changes in the Quantities of Wastes Generated and Quantities of Landfill Wastes at Domestic Sites FY2002 FY2003 FY2004 Quantities of Wastes Generated: Electronics Equipment Division Electronic Component Division * The data were collected from 15 sites, not including Quantities of Landfill Wastes:■Electronics Equipment Division ■Electronic Component Division Casio (Shanghai) Co., Ltd. or Casio India Co., Pvt. Ltd. (Unit: ton) 8,000 6,000 Promotion of Recycling 4,226 4,000 3,883 4,998 5,135 4,359 4,750 2,000 67 45 19 11 14 2,388 254 1,790 202 1,392 102 1,626 76 90 48 0 834 1,429 1,387 FY2000 FY2001 FY2002 FY2003 FY2004 FY2005 Target Recognizing that improvement of the recy- Changes in the Quantities of Wastes Generated per Basic Unit of Production ■Electronics Equipment Division ●Electronic Component Division ◆Total cling rate is an important theme of corpor- (Unit: ton/¥1 million) ate social responsibility, Casio has been 56.1 60 47.4 45.3 devoting its efforts to sorting of wastes and 50 41.2 40.6 41.2 40 33.9 34.7 35.4 discovery of new recycling contractors. As 30 20.3 33.0 30.1 24.8 20 28.4 the result of these activities, Casio ach- 20.9 12.6 10 17.8 16.6 ieved a 57% recycling rate on a company- 0 FY2000 FY2001 FY2002 FY2003 FY2004 FY2005 Target wide basis in fiscal 2004.

Electronics Equipment Division (Domestic Sites Only) Electronic Component Division (Domestic Sites Only)

Intermediate Processing Quantities of Intermediate Processing Quantities of Recyclable Recyclable Quantities Reused, Resources Quantities Reused, Resources Reclaimed or Reused Reclaimed or Reused Used for Heat 806.1 tons Used for Heat 1,336.0 tons Recovery by the Recovery by the Business Operator Quantities of Business Operator Quantities of 0 ton Recyclable Quantities 0 ton Recyclable Quantities Resources Recycled Resources Recycled Reclaimed Reclaimed 416.3 tons 1,222.4 tons 736.5 tons 2,264.5 tons

Total Quantities Quantities of Total Quantities Quantities of Amount of Recyclable Amount of Recyclable of Wastes Residue of Wastes Residue Generated Resources Used for Generated Resources Used for Heat Recovery Heat Recovery 1,428.8 tons 0 ton 4,358.6 tons 0 ton 0 ton Quantities of 192.0 tons Quantities of Wastes Wastes Reduced in Reduced in Quantities Volume Quantities Volume Incinerated 116.7 tons Incinerated 2,083.4 tons or Dehydrated or Dehydrated Total Quantities 169.7 tons Quantities Total Quantities 2,092.9 tons Quantities of Wastes of Landfill of Wastes of Landfill Discharged Wastes Discharged Wastes 1,428.8 tons 89.7 tons 4,358.6 tons 10.7 tons

47 Global Environment and Casio Communication about the Environment and Disclosure Casio strives to actively disclose information through various opportunities and media

• I felt that it would become necessary for activities of the Casio Group, a home page Participation schools to publish what might be called a has been set up to provide the latest informa- in Exhibitions school management and environmental tion on the company’s environmental activi- report so that school education can be ties. evaluated and improved on. Casio has participated in the Eco-products • I was able to develop clear understanding URL http://www.casio.co.jp/csr/ (in Japanese) Exhibition since it started. The Eco- products of the concept of LCA (life cycle assess- Exhibition is the largest exhibition of environ- ment) and how corporations use it. mentally conscions products, services and activities in Japan. In fiscal 2004, Casio Publication of sought to build communication with its stake- Environmental Reports holders about the environment by introducing Casio products that were developed under the concept of “compact, lightweight, slim, Casio began to publish its environmental re- and energy efficient,” and also by making a port in 1999. The old reports, together with video presentation of Casio’s environmental the latest report, can be viewed at Casio’s Environment Home Page conservation activities. Website. Casio plans to take part again in the Eco- Participation in the Products 2005 Exhibition. Sustainable Management Forum of Japan

Starting in fiscal 2004, Casio has taken part in the Sustainable Management Forum of Japan by having Mr. Wakao, Section Chief of Casio’s CSR Operation Section serve as a director of

Environmental Report Sustainability Report 2004 the forum. His responsibilities include provid- 2003 (published in July 2004) ing manpower assistance to the Sustainable Management Rating Reviews, which are con- URL http://world.casio.com/env/ Eco-Products 2004 ducted annually by the Sustainable Manage- “Sustainability Report ment Rating Institute, an external organization Reading Session” Held Publication of of the forum, and contributing to the sustain- Site Reports able growth of the society.

URL http://www.smf.gr.jp/index.htm and Casio Global Environment On August 3, 2004, Casio invited seven teachers from elementary and middle schools Again in fiscal 2004, Kofu Casio Co., Ltd. in the Tokyo area to its Hachioji Research and published its annual site report. In addition, Outside Awards Development Center and held the Kochi Casio Co., Ltd. and Casio Micronics “Sustainability Report Reading Session.” Co., Ltd. published their site reports for the Casio personnel gave a presentation of Ca- first time. These reports provide details of their sio’s environmental activities, using the Sus- site-specific efforts on environmental conser- Yamagata Casio Co., Ltd. received recogni- tainability Report 2004 as the main reference vation, resource saving, energy saving, and tion by the Environmental Conservation material, and had the participants hold a Ca- eco-communication. Council of the Prefecture of Yamagata in fiscal sio Green Product (digital camera) and exam- 2005 for its environmental conservation activi- ine it while explanations were provided. ties over the past three years, including the The participants gave the following com- achievement of zero emission, a reduction of ments and opinions: CO2 emissions with the adoption of a co-gen- • I felt the need to educate my students eration system, and a reduction of wastes about how corporations approach envir- with the development of a defect generation onmental issues. system. The company was conferred with the Site Reports 2004 (From left, Kofu Casio, Kochi Casio and Casio Micronics) “Yamagata Pre- fectural Gover- nor’s Award for Information Release Excellence in Pro- on the Environmental motion of Envir- Website onmental Con- servation.” Award Certificate Sustainability Report Reading Session In connection with the overall environmental

・ 48 Global Environment and Casio Consideration for the Environment in the Area of Distribution

Casio endeavors to lower CO2 emissions that result from the transport of its product by improving the efficiency of distribution through such means as a modal shift.

that result from distribution: Example of Efforts CO2 Emission (1) Reduction of the total transportation Promotion of a Modal Shift Reductions in Domestic distance and the CO2 emissions while Distribution lowering the distribution cost through A modal shift means a switch in the method of transporting products from trucking, which relocation, elimination and integration of exerts large environmental impact, to freight Casio has a policy of “targeting for distribu- domestic distribution centers. transportation by railroad. tion that is gentle to the environment, given (2) Promotion of a modal shift in favor of JR Looking at the distribution of consumer the mission to improve the levels of distrib- rail containers. goods, where a modal shift was made. CO2 emissions between central distribution centers ution services to its customers and users.” (3) Promotion of a switch from chartered and distribution centers in fiscal 2004 de-

Based on this policy, Casio strives to re- freight transport to shared deliveries creased by 75 tons-CO2 over the levels of fiscal duce the environmental impact of its dis- and route services. 2003. The breakdown shows a decrease in tribution. deliveries by trucks and an increase in JR con- tainer deliveries. This suggests that a switch to Specific targets in the area of domestic Example of Efforts JR containers contributed to CO2 reductions. distribution include a 50% reduction in CO2 Relocation, elimination and Integration Reductions of CO2 Emissions emissions (per unit of sales) by 2007 over of Domestic Distribution Centers through a Modal Shift the 2000 levels. JR Containers Trucks (Unit: ton) Delivery of System Goods 2,500 1,868 A look at CO2 emissions in fiscal 2004 by 2,000 In July 2005, production of page printer 1,324 1,249 route reveals that reductions progressed bodies and toner was transferred from Ja- 1,500 on the formal delivery routes (central dis- pan to China. The system distribution cen- 1,000 ter will then be relocated from Kofu to Yo- 500 tribution center → distribution center → 101 74 76 kohama. The purpose to reduce the 0 customer) that had been monitored closely. distance of truck transportation from ports FY2000 FY2003 FY2004 On the other hand, increases occurred by bringing the distribution center closer to along direct shipment routes from a central the bay area. 2 distribution center to customers, an area Delivery of Consumer Goods CO Emission that had not been kept track of before. As In 2005, distribution efficiency improve- Reductions in Overseas a consequence, total emissions were ments will be made by relocating distribu- Distribution 104% and emissions per unit of sales were tion centers to areas near ports and also by promoting their integration with Suzuka 93% of the preceding year. Central Distribution Center. In the past, Casio set its targets only with respect to domestic distribution. Starting Eastern Distribution Center: Adachi Ward→ ■ Efforts to Reduce CO2 Emissions Koto Ward (Scheduled for August) with fiscal 2005, however, targets are set Casio has been pressing forward with Western Distribution Center: Yodogawa Ward, newly for overseas distribution too. the City of Osaka → Minato Ward, the City of the following three action plans in order to Targeting to reduce CO2 emissions per Osaka (Scheduled for October) realize its target to reduce CO2 emissions unit of sales by 5.0% by fiscal 2007 from the levels of fiscal 2004, efforts will be fo- cused on the following themes: Data coverage was expanded. Changes in CO2 Emissions and CO2 • Integration of Malaysia Distribution Sites Emissions per Basic Unit of Sales Resulting In the past, data were obtained only with respect to the “Central Distribution Center • Printer Packing Box Improvement from Domestic Distribution →Distribution Center” and “Distribution Center→ Customer” routes. Starting with • Digital Piano Packing Box Improvement System Products: 2004, the data compilation was expanded Factory, Seaport, Airport System Distribution Center • Relocation of PA Distribution Site to China ■ → to the routes shown in the diagram. Consumer Products: • Stepped-up Use of Chinese Ports in- Factory, Seaport, Airport→Suzuka Central Distribution Center • Conventional scope of Suzuka Central Distribution Center→Distribution Center data compilation stead of H.K. Port Suzuka Central Distribution Center→Customer • Routes that are newly included • Relocation of CCP’s Delivery Sites to Distribution Center→Customer in data compilation Areas near Ports ●Per Unit of Sales • Routes not yet encompassed for data compilation • Use of ALLWATER SERVICE for ship- (Unit: ton- CO2) (Unit: ton- CO2/¥100 million) ping to the East Coast (New Jersey) of 6,000 1.8 Delivery Flow of System Products 1.60 Domestic Factory Seaport/Airport the United States (Railroad → Sea) • Concurrent use of SEA & AIR SERVICE System Distribution Center (Kofu) 153 1.10 for shipping to Europe 4,500 4,323 1.02 1.2 248 Customer CO2 Emissions by Region and 1,868 128 3,278 129 3,416 by Route in FY2004 (Unit: ton) 3,000 216 0.6 235 1,249 Boat Air Transport Railroad Total 1,324 Delivery Flow of Consumer Products North America 9,504 35,218 1,303 46,025 Domestic Factory Seaport/Airport 296 Europe 8,854 29,849 38,703 1,758 697 Japan 2.960 7,338 1 10,299 1,500 435 Suzuka Central Distribution Center China 132 521 653 1,155 1,126 Distribution Center ASEAN 79 0 79

0 0 Total 21,530 72,926 1,303 95,759 FY2000 FY2003 FY2004 Customer * “Differences” shown in the table may not match the results of the computations. This is due to rounding of fractions.

49 Global Environment and Casio Consideration for the Environment in Connection with Packaging Materials Working to successfully develop “environmentally conscious packaging” through our Special Committee on Packaging

by the Special Committee on Packaging, • Improvement of the ratio of reclaimed Reduction of the which is organized by Casio’s Environmen- plastic material used in plastic packag- Environmental Impact of tal Conservation Committee. The commit- ing, in response to increased demand Packaging Materials tee sets environmental action targets and for the use of plastic in packaging ma- checks on responses to and management terials stemming from the diversification Casio is ever in pursuit of the “optimal of environment-related matters. of packaging design and the growth of packaging design for transportation” that is Since fiscal 2000, packaging material us- sales promotion displays. most suitable for specific products and the age volumes have been tracked in a data- • Active promotion of “returnable packag- method of distribution as part of the com- base. Targets were set up through fiscal ing” that uses shuttle boxes in a move pany’s efforts to use environmentally con- 2003 and efforts made for reductions. In aimed toward resource-recycling dis- scious packaging. Casio has been pressing fiscal 2004, along with Casio’s business tribution. forward to reduce the amount of packaging expansion, a new reduction target was set • Re-examination of the packaging quali- materials used and that of packaging ma- for the total packaging material usage per ty assessment standards (specifications terials that are discarded through such ef- unit of sales through the end of fiscal 2007. related to falls and vibrations), in recog- forts as the development of structures and Casio is working toward this goal, which is nition of the decreased number of deliv- shape of packaging themselves and reduc- to reduce packaging material usage by at ery routes resulting from efficiency im- tions in size and weight of packaging, least 30% by the end of fiscal 2007 from provements made to the distribution based on the understanding of product the levels of fiscal 2000. process and the consequential decline strengths. In addition, the company has in cargo handling frequency. been moving aggressively toward using re- • Pursuit of “Universal Packaging,” which Changes in the Total Packaging Materials claimed resources for packaging and recy- offers ease of opening boxes, ease of Used and Those in the Total Packaging cling used packaging materials. Materials Used per Unit of Sales taking products out and ease of waste Total Packaging Materials Used disposal to consumers. ●Total Packaging Materials Used per Basic Unit of Sales ■ Special Committee on Packaging • Reduction of CO2 emissions with a re- (Unit: ton) (Unit: ton/¥100 million) Casio’s activities concerning environmen- 15,000 3.0 duction in the number of containers and 2.78 tally conscious packaging are run primarily 2.76 13,300 the frequency of transportation through 12,284 12,270 2.43 12,155 improvement of the shipping container 12,000 2.5 2.32 loading efficiency, resulting from a re- Action Policies of the Special Committee 10,627 2.20 10,708 duction in the size of outer boxes for on Packaging 1.93 9,000 2.0 shipment. Main Objectives • Continued efforts to reduce the amount Volume reduction of packaging wastes takes up 6,000 1.5 of polystyrene foam used. an important part of environmental conservation activities for a sustainable society. The key phi-

losophy of packaging is that either the amount and Casio Global Environment of packaging waste must be reduced or pack- 3,000 1.0 aging that is gentle to the environment must be Example of Efforts created. Casio believes that this is a responsibil- ity that makers should accept willingly. Reduction of Polystyrene Foam Use 0 0.5 FY FY FY FY FY FY The major part of polystyrene foam use is Policies 2000 2001 2002 2003 2004 2007 1.Establishment, implementation and evaluation *The figures for Total Packaging Materials Used paper- for packaging of large products. In fiscal of action targets for environmentally con- based, cardboard, polystyrene foam and plastic materials. 2004, polystyrene foam shock absorbers scious packaging. that were used in the packaging of musical 2.Development of environmentally conscious instruments were replaced with paper- packaging, and sharing and commercializa- Efforts to Reduce Packaging Materials tion of technologies. ■ based materials. In the future, Casio plans 3.Compliance with laws and regulations of vari- In fiscal 2004, efforts were made to make to gradually switch over to paper-based ous countries regarding environmentally con- pulp molds, mainly for the packaging of scious packaging. packaging boxes smaller and lower the 4.Ascertainment of the total quantities of pack- quantities of materials used by determining (standard) keyboards. aging materials used by Casio. the anti-shock strengths of products and 5.Establishment of packaging quality guidelines. Changes in Polystyrene foam Used and Those packages. Moreover, attempts were made in Polystyrene foam Used per Unit of Sales Operation to reduce the size of packaging boxes and Packaging Used ●Per Unit of Sales The Special Committee on Packaging meets on improve the packaging ratio (= volume of a (Unit: ton) (Unit: ton/¥100 million) a quarterly basis. box/volume of a product). In addition, such 500 0.15 Description of Actions 406 packaging reduction efforts as a re-exam- 400 372 0.12 Reduction of packaging materials: weight re- ination of packaging materials and a study 321 332 319 ductions and size reductions 300 0.09 Safety of materials: compliance with regula- of efficient dimensions for cutting materials 0.091 0.097 tions concerning hazardous substance con- tents. resulted in the total packaging material use 200 0.073 0.06 0.063 Recyclability: Use of a single material, Ease of per unit of sales in fiscal 2004 to be 2.20, a 0.057 disposal, Compliance with regulations concern- 100 0.03 ing package labeling. 5% decrease from the preceding year. Use of resource-saving materials and re- In addition to continuing to conduct 0 0.00 claimed resources: use of reclaimed paper, re- FY FY FY FY FY claimed plastics and non-wood paper. these activities, Casio will tackle the follow- 2000 2001 2002 2003 2004 ing themes in the future:

50 Global Environment and Casio Recovery and Recycling Casio believes that its responsibility extends all the way to disposal and recycling of its products. It thus establishes recovery and recycling routes individually for each of its products.

■ Recovery of Portable Recharge- Domestic Targets and able Batteries Status of Overseas Actual Results of Since becoming a member of JBRC, a lim- Recovery and Recycling Fiscal 2004 ited liability intermediate corporation (for- merly Japan Battery Recycling Center) in Casio strives to promote recycling of Casio September 2001, Casio has cooperated ■ Casio, Inc. products by establishing recovery and re- with the recovery and recycling of portable In the state of California, the California cycling routes for individual products. rechargeable batteries. Electronic Waste Recycling Act (SB20) Regarding the actual recovery results came into effect in September 2003. Under and recovery methods, efforts for thorough ■ Recovery of Drums and Toner- the law, retailers are required to collect re- information are made through such means Sets cycling fees from consumers when selling as publication on Casio’s Website. Since 2000, Casio has been recovering electronic products that are subject to this spent drums and toner sets by using con- Act for the purpose of proper recycling or ■ Recovery of Information Devi- tract carriers. disposal. The Act was revised to “SB50” in ces from Corporate Customers Recovered drums and toner sets are dis- September 2004 and the scope of covered Casio began to recover and recycle infor- assembled at the Eco Center of Casio products expanded. mation and communications devices from Electronic Manufacturing Co., Ltd. to re- Casio, Inc. is taking steps to inform con- corporate customers in February 2002, tar- claim reusable parts. Parts that cannot be sumers the proper ways to dispose of geting to surpass the recycling target rate reused are converted into materials. At products and file annual reports with the that is set by the Law for Promotion of Ef- present, the recycling rate*1 is 100%. Casio state of California. fective Utilization of Resources (the revised will continue to strive to maintain this recy- In addition, the company is conducting a Recycling Law). The company has been cling rate in the future. study of hazardous substances that are working to improve recycling rates by em- contained in products along with the con- ploying such tools as a trade-in campaign ■ Recovery of Label Printer Tape struction of its Green Database. for page printers. Cartridges Casio recovers and recycles used label ■ Casio Europe GmbH ■ Recovery of PCs from Households printer cartridges and DISK title printer ink The Law concerning Containers and Pack- Casio has been working on the recovery ribbons that are widely used by corpora- aging of Products Sold in Germany (Ger- and recycling of end-of-life PCs and moni- tions and households. man Container and Packaging Law) that tors that are released from households, tar- was enacted in 1991 (and most recently geting to surpass the recycling target rate revised in 1998) mandates business opera- that is set by the Law for Promotion of Ef- tors to recover and recycle packaging fective Utilization of Resources (the revised wastes. Recycling Law). Casio Europe GmbH furnishes DSD*2 AG a monthly report of actual shipments, and pays licensing fees commensurate Recovery of Information Devices Portable Rechargeable Battery with the actual performance to use the from Corporate Customers (FY2004) Recovery Results “grüne Punkt (Green Dot),” the DSD logo. Main Body Monitor Printer ECR/Other FY2003 FY2004 CRT/ Dot/Page ECR/POS/ In Austria, too, licensing fees are paid to PC/OC LCD /Other UPS/Other NiCd Battery 436kg 289kg ARA*3 although the shipping volumes are Nickel Hydrogen Battery 20kg 654kg Amount 11.72tons 7.44tons 27.27tons 4.06tons small. The licensing fees in fiscal 2004 Recovered Lithium Ion Battery 84kg 748kg were Û62,000 in Germany and Û3,982.6 in Amount 9.94tons 5.77tons 23.66tons 3.51tons Recycled Small Sealed Lead Acid Battery 0kg 0kg Austria. Recycling Percent 84.8% 77.6% 86.7% 86.4% *1: Recycling rate = (Weight of reusable parts removed + Recycled Weight of parts converted to materials) ÷ Weight of Drum and Toner Cartridge Recovery Results Target 50% 55% — — goods rendered for recycling. Recycling Rate FY2003 FY2004 *2: DSD AG: Acronym for Duales System Deutschland AG *3: ARA: Acronym for Alstoff Recycling Austria Amount Processed 235.0tons 717.0tons Recovery of PCs from Households (FY2004) Reused 42tons 83tons Desktop Notebook Material CRT/LCD 193tons 634tons

PC PC Amount

Recycled Recycling

Amount Percentage Recycled 100% 100% Recovered 189kg 13kg 119kg

Amount Recycled 138kg 5kg 98kg Label Printer Tape Cartridge Recovery Results

Recycling FY2003 FY2004 Percent 72.9% 36.2% 82.7% Recycled Amount Recovered 57,200pieces 77,430pieces Target 50% 20% 55% Recycling Rate Weight 1.82tons 2.46tons

51 Response to the WEEE & RoHS Directives

■ System of Promotion All Casio products are subject to both the WEEE and RoHS Directives. Accord- Both the WEEE and RoHS Directives are legal requirements of the European Uni- ingly, all companies in the Casio Group that are affected by the directives are on (EU). The WEEE Directive mandates the construction of a recovery and recy- pressing forward with efforts to be in compliance with these legal requirements. cling system for electric and electronic equipment. The RoHS Directive bans the To promote such efforts, the WEEE & RoHS Promotion Work Group was created use of specified hazardous substances (lead, mercury, cadmium, hexavalent in 2004 with members from the International Sales dept., the European and chromium, and PBB and PBDE, both of which are bromine-containing flame re- American Sales dept., the Overseas System Sales dept., the Development dept., tarders) that are contained in electric and electronic equipment. European coun- the Distribution dept. and various materials depts. of the Material Control dept., tries are expected to enact and implement laws that are in conformity with these various item depts., and the Environment Center (administrative office). directives.

System to Promote the Response to the WEEE & RoHS Directives

System to Promote the Response to the WEEE & RoHS Directives

Administrative Office (Environmental Center)

Global Marketing Headquarters Strategic Marketing Overseas Marketing & Sales Department International Sales and and Sales Division North America and Europe System Solution Products HQ. Marketing Division Development Dept.

Casio Europe GmbH Materials Control Dept. Distribution Dept.

Casio UK Montres Casio France S.A. Agencies in various countries Various materials departments Various item departments

■ Efforts on Response to the WEEE Directive forward with preparations to place a designated marking of the WEEE Directive Casio is in the process of selecting local recycling companies to sign alliance on the main body (handling manual, warranty) of the products. agreements that take into consideration their collection and recycling capabilities, capability to process wastes into renewed resources, and cost of such process- ing while exchange information with Casio Europe GmbH (Germany) about the contents of laws that are enacted by the legislatures of various countries so as to construct a recovery and recycling system in Europe prior to the deadline for the implementation of the WEEE Directive (i.e., August 13, 2005). An Example of a Marking With respect to products that are sold on or after August 13, Casio is moving on an Alarm Clock

Trends of Legislation in European Countries periment was financed by 41 groups in the affected industrial sectors and The EU member countries are moving forward at a rapid pace toward the legis- ADEME (Agence de l’Environnement et de la Maitrise de l’Energie – French lation of the WEEE Directive by establishing the mechanics of recovery and re- Agency for Environment and Energy Management). Nante has a population of cycling systems that are aimed at consumers. In particular, such details as the approximately 550 thousand. The experiment conducted verification of the re- number of category containers (sorting containers for end-of-life electrical and covery amounts, recov- Global Environment and Casio Global Environment electronic equipment) to be installed are being examined because of restrictions ery routes and recycling on recovery locations. (A German category container is shown in the photo.) rates. Similar studies for In France, an experiment on the recovery and recycling of end-of-life electric the operation of the di- and electronic equipment was conducted over a 2-year period between July rective are under way in

2002 and June 2004 in Nante in the North Western region of France. The ex- many other countries. German Category Container

■ Efforts on Response to the RoHS Directive are checked against Green Procurement data and absence of any problems is Regarding Casio’s efforts to respond to the RoHS directive, Casio hopes to com- confirmed as the final step.) pletely eliminate the six specified hazardous substances from products that will Casio has also constructed a system that enables in-house content analyses be released in the European market on or after July 1, 2006. In the company’s by installing a fluorescent X-ray analyzer so that physical verification of parts can environmental action targets, the timing of discontinuation is set at the end of De- be made as needed. cember 2005. As for specific steps, Casio revised its Green Procurement Standard Manual and incorporated all study data furnished by Casio’s suppliers in a Green Data- base in order to conduct a study of the content of the six specified hazardous substances (percentages contained in homogenous materials) in purchased Fluorescent X-ray Analytical Microscope parts. The Green Database contains a total of 26 substance groups, consisting of the six substances that are specified by the RoHS Directive and other substances that Casio designated. Chemical Substance Designers use this Green Database when selecting parts to verify their compli- DB ance with various laws and regulations and their safety. In addition, the Green Da- Chemical Substance tabase is used in environmental audits of chemical substances prior to product Environmental shipment approval is issued. (In these audits, all parts that comprise a product Audit Sheet Fluorescent X-ray Element Analysis

52 Chapter III Employees and Casio Casio tries to strike a balance between employment and business results while respecting the human rights of individual employees. Casio strives to maintain a comfortable and safe working environment where all employees can realize their capabilities satisfactorily.

Labor Force Employees

Responsibilities to Employees

● Creation of Employment Opportunities ● Appointment and Effective Posting of Qualified Workers ● Creation of a Worker-Friendly Work Environment ● Occupational Safety and Health ● Communication and Information Disclosure

53 Employees and Casio Creation of Employment Opportunities Casio strives to continually create and expand employment opportunities while respecting the human rights of individual persons and not discriminating them on the basis of their gender or disabilities.

their gender, creed, religion, ethnicity, social struction of lavatories for disabled workers Employment Philosophy status or disability. at both Hamura Research and Develop- and Policies Casio Computer Co., Ltd. supports Nip- ment Center and Hachioji Research and pon Keidanren (Japan Business Federa- Development Center; implementation of tions)’s “Charter of Corporate Ethics for commuting by car by disabled workers at Casio Code of Conduct states that “We re- Screening and Employing New Graduates” the Head Office, Hamura Research and spect others and value cooperation that is and minimizes the impact on students’ Development Center and Hachioji Re- free of discrimination. We hold in high re- learning of hiring them at extremely early search and Development Center; and re- gard every individual’s human rights, elimin- stages of the hiring season. In addition, modeling at the Head Office and Hachioji ate harassment, remarks and behaviors Casio holds its interviews on Saturdays or Research and Development Center to that are discriminatory on the basis of gen- other hours that are easy for students to make the workplace barrier free. Looking der, beliefs, religion, ethnicity, social status take part in so that many students are ex- ahead, Casio will continue to promote the or physical handicap, and protect the priv- tended an opportunity to be interviewed. construction of a work environment that is acy of individuals.” This is one of the most Casio is determined to help students seek pleasant for anyone to work in. important standards of value judgment in employment without sacrificing their school

Casio’s hiring. Casio will thus strive to con- work and thus will continue to improve its URL http://www.casio.co.jp/ tinually create employment opportunities to hiring activities without being limited by saiyou/career2/ the extent possible under this philosophy. corporate logic. In fiscal 2004, the activities were energetically promoted. Casio web- At the same time, Casio has been work- site was updated to include enriched hiring ing to “secure employment within the information. At the same time, hiring for Group” by bringing inside the Group work specific job types increased and interviews that used to be contracted to companies were held in multiple regions. As a conse- outside the Group. quence, hiring of foreigners and women

dramatically grew. Fifty nine new grad- Hiring Information Website for Disabled Applicants Number of Employees by Gender (Casio Computer Co., Ltd.) uates, including four foreigners and ten FY2004 women (consisting of 49 engineers and 10 Female administrative workers) joined the company ■ Hiring Older Workers 304 in the spring of 2005. In addition, six peo- Since 2001, Casio has run the Casio Se- ple, including one woman, making career nior Staff Program (CSP). Its purpose is to changes were hired. (Five are engineers provide employees who reach the manda- Male and one is an administrative worker.) tory retirement age with employment op- 2,827 portunities and to effectively utilize the skills Changes in Regularly-scheduled Hiring and know-how that these employees have (Casio Computer Co., Ltd.) accumulated within the Group. Changes in the Average Number of Service Male Female (Units: number of people hired) Under this program, employees who 80 Years by Gender (Casio Computer Co., Ltd.) reach the mandatory retirement age regis- 59 ■Male ●Female (Unit: Year) 60 ter with Casio Information Service (CIS), 20 39 10 38 32 which is the outsourcing company within 16.00 16.30 40 2 6 14.40 15.20 15.10 2 13.50 the Group, as long as they have the desire 15 20 37 32 30 49 11.40 12.00 to continue to work, are healthy and pos- 9.80 10.20 1 8.70 0 10 7.50 FY FY FY FY FY sess knowledge and skills that are deemed 2000 2001 2002 2003 2004 to be usable within a Group company. Af- 5 FY FY FY FY FY FY ter finding a new job through CIS, they 1999 2000 2001 2002 2003 2004 conclude an employment contract. As of Employees and Casio ■ Hiring Disabled Workers the end of fiscal 2004, 21 retired workers Casio hopes to work with individuals who were still working within the Casio Group Efforts Relating to courageously keep on tackling challenges by taking advantage of CSP. Employment with strong determination to materialize dreams. Casio therefore seeks people with Changes in the Employment of Senior Workers a spirit of challenge and willingness to work (Casio Computer Co., Ltd.) Based on the philosophy and policies de- exercising their creativity regardless of their (Units: number of workers) scribed above and while responding to disabilities. 10 9 8 changes in the environment that surrounds Casio is improving the internal environ- 8 6 6 the labor market and the society, Casio re- ment so that disabled workers would capi- 4 4 spects every individual’s human rights as talize on their abilities and aptitude to the 2 0 well as individuality, hiring individuals who maximum extent possible. FY FY FY FY are highly motivated to work regardless of Examples of such work are the con- 2001 2002 2003 2004

54 Employees and Casio Appointment and Effective Posting of Qualified Workers Casio creates a sound corporate climate by appointing qualified workers in a fair and equitable process, based on the “merit system” and “results orientation.”

and ranked, based on their individual func- Topics Philosophy and Policies tions and accomplishments. In the “Appraisal System,” employees are Presentation of “The President’s evaluated along three scales, consisting of the Award and the President’s Award for Cost Ratio Reductions” evaluation of the extent that they attained the At the base of Casio’s human resource sys- objectives set under the management by ob- Casio Computer Co., Ltd. recognizes em- ployees who made significant contribu- tem are the “equity and fairness” and the ma- jective program, evaluation of their work in tions to the expansion and growth of its terialization of “Creativity and Contribution,” their job type, and the evaluation of the extent business by conferring the President’s the corporate creed. The company reviews of contribution they made toward department Award. the system as it continually seeks a better goals. The evaluation is relative and made on In fiscal 2004, evaluations were made with attention to “significant contribution to way in response to changes in the surround- a 5-point scale. The results are reflected in the attainment of corporate-wide targets ing environment. bonuses, pay increases and promotions. The through creative work and activities for im- Under the “merit system,” workers are rec- appraisal results are explained to employees provement to expand and develop busi- ness, accompanied by development of ognized fairly for their competence that they to their highly understandings and satisfaction techniques and mechanisms that are inno- manifest through their work irrespective of through feed-back interview with their super- vative and have potential for growth” in their academic backgrounds, age or length of visors. such areas as (1) product development, (2) service. The “results orientation” determines The “Compensation System” applies a sal- sales promotion (3) research and develop- ment, (4) control improvement and (5) im- the grade and compensation of workers ary range that is based on job-grade under age improvement. The review resulted in a based on the results they actually achieved in the principle of “merit-based competitive sal- total of eight awards, consisting of two the roles they are assigned to. The objective ary.” Pay raises are given in harmony with most outstanding performance awards, of Casio’s human resource system is to strike performance evaluation and salary levels. Bo- two outstanding performance awards, and four encouragement awards. a balance between the growth of employees nuses are distributed with modulation, based Furthermore, the President’s Award for and the company’s growth at the most opti- on semiannual performance evaluation. Cost Ratio Reduction was established with mal level. the goal of making substantial improve- ments in the company’s cost structure, stabilizing the business and improving the Topics profit ratio between fiscal 2004 and 2005. Structure of Human The objective of this award is to lower the Resource Systems Invention Prizes company-wide cost ratio by three percent (over the level of fiscal 2003) during the In 1968, Casio created its “Award Program” award period, which is limited to two to recognize employees’ contribution to in- years. In fiscal 2004, the initial year of this ventions and creative work. By providing in- As shown in the diagram below, Casio’s hu- award, “themes that significantly contribu- centive to inventors and creators, the pro- ted toward cost ratio reductions in individ- man resource system consists of three sub- gram serves to motivate company’s ual product businesses and which also systems: the Grade System, Appraisal Sys- engineers to tackle new technology. contributed toward this year’s cost ratio re- In addition, Casio revised its regulations tem and Compensation System. ductions” were selected. Two outstanding concerning inventions and added a discus- The “Grade System” forms the base of Ca- performance awards and three encour- sion process to allow inventors to express agement awards for a total of five awards sio’s human resource system. The their opinions and a program to allow inven- were conferred. “Qualification System” applies to non-man- tors to protest the amount of prizes in com- agerial employees, who are promoted based pliance with the provisions of Article 35 of the new Patent Law (employee inventions), on the growth of their ability to perform their which came into effect in April 2005. duties. The “Professional System” applies to managers and specialists, who are graded System of Human Resource Development Diagram of the Structure of Human Resource Systems

Grade System Casio has various systems for human re- (Qualification System/Professional System) source development with the intent to “develop creative human resources that are Appraisal System Compensation System eager to take on challenges” and “train pro- (Performance Appraisal System) (Salary System/Bonus System) fessionals with early selection of specialized fields.” The “professional human resources” in Ca- sio’s concept have two profiles. One is that of “strategic generalists that pass on the com- pany’s corporate culture.” The other is that of “specialists that pass on the company’s in- System of Human Resource Development trinsic technology and know-how.” (OJT/off-JT) Casio approaches the nurturing of these workers with the philosophy that “people

55 grow through their work” and that “the source In this program, an employee provides a edge, work experience, skills or specialization of growth is one’s will.” Based on this belief, statement of his/her career history and ac- required for the jobs and seek qualified appli- Casio supports growth and skill improvement complishments and requests the types of cants widely from within the company. All ap- of its workers by providing them with an envir- jobs he/she wishes to have while his/her su- plications are reviewed along such factors as onment in which new abilities are constantly pervisor (department head) makes a sugges- “whether or not their skills, abilities and apti- demanded and by giving the workers oppor- tion as to the future course of career growth, tude meet the needs of the hiring depart- tunities to overcome challenges by relying on all through the intranet website. The informa- ments,” “relative merits of having the appli- their own determination and efforts. tion is used in such human resource develop- cants join the new departments in relation to For this reason, Casio’s system of human ment-related measures as the determination the demerits of removing them from their cur- resource development is anchored in skill im- of future job placements and training oppor- rent organizations,” and the “willingness of the provement through actual work, or OJT. Vari- tunities. applicants to take on new challenges.” The ous training programs that are offered as off- review is followed by an interview by an officer the-job training (Off-JT) are positioned as sup- ■ Internal Job Postings responsible and the manager of the hiring de- plementary training, such as the systematic Casio Compute Co., Ltd. has constructed an partment, and by the human resource de- learning of theories. “internal job posting system” to recruit work- partment. The officer in charge of personnel ers from within the company. When the com- makes the final decision. ■ Career Challenge Program pany determines that appointment of workers In fiscal 2004, Casio recruited in three Casio Computer Co., Ltd. initiated the Career who have specific skills or those who have areas: “overseas sales,” “public relations” and Challenge Program in 1998 with the goal of specialized training of a certain level is neces- “human resources.” Over 40 employees ap- realizing career development that takes into sary for starting a new business operation or plied, and eight were given new assignments. account individual employees’ careers, skills staffing key business operations, it publicizes The program has been implemented on a trial and wishes. the job openings by clearly stating the knowl- basis for three times since 2002. However, the board of directors approved formal imple- Diagram of Human Resource Development System mentation of the program as a system start- ing with fiscal 2005. The company hopes to OJT Off-JT actively use this system in the future to ener-

Measures to train existing workers into professionals gize employees and build a climate that ac- cepts challenge while striking a balance be- Assessment of Job Performance tween the company’s business needs and (Behavioral assessment that articulates the job Executive Training performance that is expected of a professional (Nurturing of entrepreneurs who individuals’ career formation. in each of the job types, checks the actual per- can dramatically reform the busi- formance of a worker against the expectations ness and maximize the organiza- every six months to produce a self assessment tional strength.) and an assessment by his/her supervisor to en- ■ Education and Training Programs courage the attainment of such expectations) Casio offers various education and training OJT-MAP programs that provide knowledge and skills (A tool that effectively supports OJT between a required for the performance of jobs so as to younger employee and his/her direct supervi- sor by clearly indicating the basic skills re- Skill Selective Training meet the desire of its employees for growth. quired of younger workers in each of the job (A training program in which all types, and by placing them into different levels To start, newly hired employees and other workers to be in charge can se- of annual skills targets.) lect from a menu a training pro- younger workers are provided with basic skills gram that helps them effectively and efficiently acquire needed training and career development support in Measures for Proper Placement skills.) “job grade-based training.” To follow, the (Aids with self-improvement.) Career Road Map company is expanding “skill selective train- (A basic system that clearly presents the ca- ing,” which effectively and efficiently supports reer course an employee should follow to be- Seminar Cutting-edge Technology come a professional employee in any of the acquisition of required skills by workers who

career paths, such as sales and engineering, Career Development Training information on the latest technological trends.) (Provides target to become professionals in charge. In

and serves as reference for an employee’s ca- Language LearningCourses and Crrespondence (A training program that aids

reer orientation and his/her supervisor’s place- Employees and Casio younger workers develop career addition, Casio offers “self improvement train- ment policies.) orientation.) ing” to back up the desire of employees for Career Challenge Program growth from various angles with English and (An employee periodically provides the compa- ny with information on his/her career, skills and Chinese language classes and a wide assort- willingness to take on challenges. His/her super- visor also provides a clear suggestion for individ- ment of crrespondence courses. ual subordinates’ courses of future growth. The Newly-hired Engineer Education information serves as an important reference for (The aim is to let newly-hired engineers acquire basic future placement of individual employees.) engineering skills.) Open Job Posting Program (The program aims to support the business needs of the company and employees’ career orientation at the same time. Applicants to Introductory Training of New Employees open job postings are reviewed and those who fit the job requirements best are transfer- (Provides new employees with the basic knowledge red preferentially to the new positions.) about being Casio employees.)

Training Scene

56 Employees and Casio Creation of a Worker-friendly Work Environment Casio is pressing forward with the construction of an environment and a system that permit all employees to demonstrate their full capabilities.

an environment and climate that enable are applicable to employees with a child or Policies concerning employees to actively take paid vacations. children younger than one year, and have been Construction of a Work In fiscal 2004, 21.8 paid vacation days revised in response to changes in laws and the Environment were given, and 55.3% of them were environment. In addition, employees who have claimed. The number of days of paid vaca- a family member requiring care are covered by Casio strives to build a work environment tion taken was 9.9 days and the number of the “Rules concerning Nursing Care Leaves.” that is friendly to all workers so that every half-day vacations claimed was 4.4 times. The rules also have been revised as necessary one of them can demonstrate their full ca- (Based on sole Casio Computer Co., Ltd.) since their establishment in 1999. pabilities. As part of such efforts, we are In 1997, Casio started its “Vacation Day working to shorten the total annual hours Accumulation Program.” Under the pro- Changes in the Number of Employees worked by employees and expand support gram, part of unclaimed paid vacation days Taking Child Care Leaves programs that give consideration to family that otherwise would expire is carried over (Casio Computer Co., Ltd.) (Units: number of employees) demand that workers face, such as child and made available for use in case an em- 30 28 care and nursing care. ployee faces personal situations, injuries or 25 illness that prevents him/her from working. Furthermore, employees with at least 10 20 19 19 16 Vacations years of service are granted five days of va- 15 15 cation to get refreshed. 10

■ Child Care and Nursing Care Leaves 5 Toward the goal of shortening the annual Casio established its “Rules concerning Child working hours by employees, Casio is Care Leaves” in 1996 in accordance with the 0 FY FY FY FY FY pressing forward with the construction of company’s employment regulations. The rules 2000 2001 2002 2003 2004

Continued Promotion of Support to Achieving a Balance between Work and Family ~In Preparation of the Law Concerning the Promotion of Measures to Aid the Nurturing of the Next Generation of Children~

Casio has always worked on establishing various vacation programs, including child Schedule care leaves and nursing care leaves, so that all employees may demonstrate their full capabilities in a work environment that accommodates their needs. Apr. 2005 Central Labor-Management Council (Organization of the Special Commit- In preparation of the implementation of the Law Concerning the Promotion of tee and discussion of the action plan) Measures to Aid the Nurturing of the Next Generation of Children in April 2005, Casio - An expansion of reasons for gaining paid vacation time carryovers (An ad- had held numerous discussions at its labor-management committee level so that the dition of doctor visits by pregnant workers and family nursing care). - An expansion of shorter hours workdays for childcare by employees (from company may provide further assistance to permit its workers to balance work and 3 years of age to until entry in elementary school). family. At the Central Labor-Management Council meeting in April 2005, the Special - An expansion of a special leave of absence for a child delivery by an em- Committee on Aid to the Nurturing of the Next Generation of Children was set up ployee’s spouse from one day to two days. and the following action plan was established: - An expansion of the number of times that paid vacation days can be split into half days (from 12 times to 18 times). Objectives of the Special Committee on Aid to the Nurturing of the Next Generation of Children: Jun. 2005 The first Special Committee meeting (Confirmation of the action plan) Jul. 2005 Information to employees regarding a plan on planned paid vacations and ● To create a work climate in which all employees understand the importance of encouragement of taking vacations. “helping workers achieve a balance between work and family, and show under- Aug.2005 Gathering of opinions at a meeting between labor and management at the standing and offer cooperation to the employees who seek to receive the benefit Sales Department Chapter (- September). of various programs. Aug.2005 The second Special Committee meeting (Discussion of a manual, an office ● To provide support to employees who request a leave for child care or nursing for employees to contact, and management education) care so that the workers can retain and improve their professional skills and return Sep.2005 Preparation of a manual on the program of child care and nursing care to work smoothly. leaves, and procedures for claiming them; information dissemination about ● To disclose to employees, who wish to receive the application of laws and regula- the program; creation of an office for employees to contact about child care tions as well as the company’s various systems of support in connection with “aid and nursing care leaves; and implementation of management education. to the balancing between work and family,” the workings and procedures relating Oct. 2005 The third Special Committee meeting (Discussion of an HP, and confirma- to such laws, regulations and company’s various systems in a way that is easy to tion of the results of the opinion gathering) understand. Jan. 2006 Start-up of an HP concerning measures to aid the nurturing of the next ● To advise the Labor-Management Council as to the direction of improvement generation of children. concerning various systems for the “support of the balancing between work and Feb.2006 The fourth Special Committee meeting (Summarization of this year and family,” based on the employees’ needs and industry trends. confirmation of the tasks for next year)

Organization Chart of the Special Committee on the Nurturing of the Next Generation of Children Targets

Target 1: Creation of an environment that permits employees to claim vacations easily. Labor-Management Committee (1) Advance planning of paid vacation requests. Special Committee (2) An expansion of leaves with a specific purpose. Target 2: Creation of an environment that permits employees to gain time off for child Executive Office care or nursing care (leaves or shorter hours workdays), and improvement of acquisition status. (During the planned period, at least one male employee gains a child care leave, etc. (including shorter hours workdays) and usage raito Sales Dept. Chapter Hachioji Chapter Hamura Chapter Head Office Chapter of female employees’ child care leaves reach at least 70%.) Target 3: To enable workers returning from child care leaves to be reintegrated smoothly. Northern Japan Eastern Japan Central Japan Western Japan Southern Japan Target 4: To construct a system that reflects the opinions of employees on the action Chapter Chapter Chapter Chapter Chapter plan.

57 tended by many employees and their famil- be expanded, and a new target of 120 thou- Expansion of ies and was instrumental in deepening sand hits per day is hoped to be achieved Fringe Benefits friendship among them. Regarding distant by the end of fiscal 2005. learning classes for life-long education, guidebooks were distributed. Eleven em- ■ Casio Group Benefit Association ployees took classes. Casio strives to provide all employees of the Communication between Casio Group with a full range of fringe bene- Labor and Management fits, as well as maintain and improve these benefits. The benefit program is adminis- tered mainly by the Casio Group Benefit As- Through regular communication between sociation. Specifically, the association issues the management and the labor union, Casio Clam Digging various congratulatory or condolence pay- hopes to raise the awareness of employees ments relating to its mutual benefit work to about participating in the company’s man- its members on such occasions as wedding, Sports Day agement, and establish close communica- child birth, wedding anniversary, graduation tion between labor and management. of a member’s child from middle school, At the core of this labor-management hospital admission and death. In addition, Communication communication is the Japan Federation of the association runs a pension program for among Employees Workers’ Labor-Management Conference,” surviving families, a lending program (of small which is held twice a year (in September and amounts), and arranges for group insurance. February). At these conferences, opinions of In fiscal 2004, the association consolida- Casio has taken steps to build a Web-based the management and labor, both represent- ted information on all of its services and environment to activate two-way communi- ing the entire Casio Group, are exchanged. placed it on a company HP so as to ensure cation among employees. In addition, close communication is main- that its benefit activities are well known. This In 2002, Casio Computer Co., Ltd. started tained at various levels and in varying replaced the sending of information that up an in-house portal called “C’s☆Cafe” for scopes, including the Central Labor-Man- used to be done on an individual basis. As a company-wide dissemination and sharing of agement Meeting, the Division Labor-Man- result, the recognition level of the associa- information. The portal contributes greatly to agement Meeting, and Sales Chapter Labor- tion’s activities among employees was the sharing of information within the compa- Management Meeting. raised, and more employees began to par- ny, productivity improvement and reduction As of the end of fiscal 2004, 4,637 of the ticipate in the program. of paper use by making available a wide 7,035 employees of Casio Computer Co., range of information, including not only busi- Ltd. and its domestic Group companies Topics ness communication within the company but were members of the labor union. also messages from the company president, Introduction of the Care Provider Discount Program communication between the sales people on The Casio Group Benefit Association adop- the forefront and the development staff, vari- Efforts on the Protection ted a care provider coupon program in April ous application-related work, pay slip infor- of Employees’ 2002. This program allows members of the mation, indirect commodity purchase, and Personal Data association and their families to use nursing travel expense reimbursement. care coupons to receive services at a dis- counted rate when a care provider is nee- In fiscal 2004, “Blog technology” was in- In response to the Personal Information Pro- ded for temporary childcare, illness or nurs- troduced so information can be sent out tection Law, which came into full effect in ing care at home. Individuals using the more easily. This reduced the content crea- April 2005, Casio has devoted its efforts on program receive nursing care coupons from tion time to a quarter of what it used to take. constructing a mechanism to protect per- the association’s office, selects an agency that is a member of the Japan Clinical Nurs- In addition, an English language portal was sonal data on employees. In time with the full

ing Housekeeping Association from the “list started up to enable sharing of information at enforcement of the law in April 2005, the Employees and Casio of agencies” that is furnished with the cou- a global level. The target of 90 thousand hits company issued a memo entitled “Handling pons, and applies. per day was surpassed greatly. In the future, of Personal Information of Employees” to contents directed at overseas employees will thoroughly educate employees about the ■ Recreational Activities definition of personal information, rules that At Casio, the labor union plans, organizes govern the acquisition of such information, and runs various recreational activities and purpose for using it, considerations to be furnishes information on distant learning paid when sharing the information with third classes for life-long education as a way to parties and the rights of employees. In addi- help employees and their families enjoy heal- tion, an office was created within the Human thy and fulfilling lives. Resource Department at the company’s In fiscal 2004, a trout fishing competition, head office for employees to contact and re- clam digging, beach seining and a sports quest disclosure. P18 day were held. Each of these events was at- In-house Portal “C’s☆Cafe”

58 Employees and Casio Efforts on Occupational Safety and Health Casio promotes various measures through maintenance and promotion of employees’ health and prevention of occupational injuries.

head office in accordance with Article 18 of office of Casio Computer Co., Ltd. and Basic Philosophy the Occupational Safety and Health Law. staffed by a full-time doctor who looks after The committee meets monthly pursuant to the health of Casio employees. the “Casio Computer Co., Ltd. Head Office In fiscal 2004, a physical exam was con- Safety and Health Regulations” and pro- ducted in July (on 890 employees), which The entire Casio Group promotes the con- motes various measures to keep employ- had 100% participation. In 2000, Casio struction of a work environment where em- ees physically and mentally healthy and en- started a “Walking Campaign” for the main- ployees can work without worries in com- sure occupational safety. tenance and promotion of health and pre- pliance with the Occupational Safety and In fiscal 2004, (1) promotion of health, (2) vention of lifestyle-related diseases. The Health Law and various other laws, in addi- improvement of mental health, and (3) im- campaign was run at various locations be- tion to Casio’s employment regulations so provement of awareness about occupa- tween September and November, and was as to “maintain and promote employee’s tional safety were selected to be the key participated by many people, including health” and “prevent the cause of occupa- tasks and the following activities were car- families of employees. Casio also signed tional injuries and their recurrence.” ried out: an agreement with a sport club and began In overseas Group companies, similar to offer opportunities for employees to pro- measures are adopted in compliance with mote their health. the laws and regulations of the countries to Promotion of which they belong. Employees’ Health ■ Oral Health Education In April 2003, a column entitled “Diseases Originate in the Mouth,” written by the Activities of the Casio offers annual physical exams to all head office clinic’s dentist, began to be Occupational Safety and employees. The company endeavors to in- published on the company’s internal Web Health Committee crease the items checked in the examina- site. This oral hygiene education activity tion and also devotes its efforts on second- was continued into fiscal 2004. Casio Computer Co., Ltd. has an Occupa- ary exams and follow-ups. A clinic (internal tional Safety and Health Committee at its medicine and dentistry) is open at the head

Actual Results of the Annual Safety and Health Promotion Plan for FY 2004 (Casio Computer Co., Ltd.)

Item Key Goals Results of Activities

To implement various measures to correspond Safety Week (July 1 ~ 7) Nationwide Activities with nationwide activities. Industrial Health Week (October 1 ~ 7)

To strive to keep the participation in physical ex- Regular Physical Exams (July 13 ~ 22) Physical Exams and Health Building ams at the 100% level and promote efforts to be Follow-up (consultation about health) healthy. Walking Campaign (September ~ November)

To hold seminars on promoting health and furnish “Promotion of Health and the Role of Supervisors” Seminar Health Promotion Seminar information. May 13: Head Office, November 18: Hamura

Determined the status of use and reported at a Safety Mental Health To arrange for the use of telephone consultation in cooperation with the health insurer as necessary. and Health Committee meeting

To strive to conduct education activities and fur- Smoke Cessation Measures Posted smoking cessation education posters nish information.

To strive to conduct education activities, furnish in- Created a new healthy menu in the employee cafeteria Anti-Obesity Measures formation, and promote exercises to prevent obe- Offered health promotion opportunities under an agree- sity. ment with a sports club

To furnish information from time to time as needed Raised awareness about influenza (October 28) Infectious Disease Measures (on SARS, influenza, etc.) Provided information about thoroughness in influenza prevention (January 27)

Training of Health Management To train on a regular basis. Training under way with an enrollment in a distant learn- Personnel ing class.

Social Contribution Activity To implement twice a year. Assistance with blood donation July 2 and November 19 (Blood Donation) Marrow donor registry November 19

To implement to correspond with the Industrial Work Site Inspections Implemented on all floors. Health Week.

To measure temperature, humidity, air flow, carbon Measurements were taken on the 20th day of even Measurement of the Work monoxide, carbon dioxide, dust, noise and illumin- numbered months. Environment ation intensity.

To hold Occupational Safety and Health Commit- Committee Activities Held consistently on a monthly basis. tee meetings regularly. To promote health and offer health education, and Other expand the scope of the internal Web site. Publication of a dental column

59 and the “Mental health and physical care List of Disaster Prevention and Fire program,” an outside consultation office. Drills Conducted in FY2004 (Major Sites)

■ Promotion of Health and the Names of Major Sites Date of Implementation Role of Supervisors” Seminar Casio Computer Co., Ltd. Sep. 2004 for Managers – Head Office Building A seminar for managers, entitled “Promotion Casio Computer Co., Ltd. Mar. 2005 of Health and the Role of Supervisors,” – Hamura Research and Development Center was held at the Head Office (in May) and at Hamura Research and Development Cen- Casio Computer Co., Ltd. – Hachioji Research and Dec. 2004 Column “Diseases Originate in the Mouth” ter (in November). Both sessions were at- Development Center tended by many managers. The occupa- tional health physician from the Head Office Casio Computer Co., Ltd. – Ome Site Dec. 2004 ■ Employee Cafeterias clinic gave a lecture, systematically encom- (Casio Micronics Co., Ltd.) Casio’s employee cafeterias offer a healthy passing diverse subjects, including physical Casio Hitachi Mobile Feb. 2005 menu with attention paid to calories and exams, taking steps to be healthy, exces- Communications Co., Ltd. nutritional balance. The menu includes in- sive work and health hazards, duty to pay Kofu Casio Co., Ltd. Sep. 2004 formation on the energy, salinity and fat attention to safety, and mental health. In contents to ensure safety of dining, as well particular, he stressed the role that supervi- Kochi Casio Co., Ltd. Jul. 2004 as to improve and prevent obesity and life- sors should play in the health management Yamagata Casio Co., Ltd. Oct. 2004 style-related diseases. of workers. Participating managers listened In March 2005, a “Company-wide Em- attentively. * Fire drills are held at other affiliate companies too by mocking real fires so as to raise awareness about disas- ployee Cafeteria Conference” was held to ter prevention. strengthen cooperation among the compa- ny, Casio Health Insurance Union, and the employee cafeterias. The conference was ■ Emergency Relief Training at attended by on-site supervisors, a nutri- Hamura Research and Develop- tionist, and a nurse to provide support to ment Center the education campaign about obesity and On December 3, 2004, firemen from the lifestyle-related diseases. The employee Hamura fire station within the Fussa Fire cafeterias also hold health promotion fairs Department were invited to Hamura Re- Seminar for Managers at each site and promote their health pro- search and Development Center to con- moting menus. duct emergency relief training. Approximately 150 workers, including Prevention of the fire warden at the center, members Mental Health Care Occupational Injuries from the notification and communication group, evacuation guidance group, fire ex- tinguishing group, electricity and machinery Casio has been working toward “Zero Oc- group, and voluntary firemen of the medical Anxiety, worries and stress about work and cupational Injury” and engaged in safety office, participated in the training. Under workplace conditions have become impor- activities that target to achieve no accident the guidance of the firemen from the Ha- tant social issues in recent years. Con- or injury at each of the work sites. In addi- mura fire station, they received over one struction of an environment for mental tion, each site provides disaster prevention hour of training in life-saving first aid. health care within corporations is now be- training and conducts evacuation drills to ing sought. This can be seen among other prepare for emergencies. Employees and Casio places in the 2000 publication of the Minis- try of Labour (currently the Ministry of Health, Labour and Welfare), entitled the The number of employees taking time off “Guidelines for Sound Mental health and for reasons of occupational injuries physical care program.” (over the past five years) Casio too strives to raise awareness (Casio Computer Co., Ltd.) about “mental health” through such chan- Number of Workers Number of Days nels as a seminar for managers. Further- FY2000 0 0 Training in Life-saving First Aid more, Casio encourages workers to have FY2001 0 0 off-hour physical exams by an occupational FY2002 1 73 health physician so as to prevent health FY2003 0 0 problems resulting from excessively heavy FY2004 0 0 work. Consultation is also given at clinics

60 � �

Chapter IV Society and Casio Casio makes social contribution in unique ways so as to achieve sustained growth of both the society and the company itself. Casio conducts various activities to contribute to local, civic and international communities.

Responsibilities to the Society ● Creation of Regional Employment ● International Exchange ● Respect and Protection of Local Culture

● Creation of Regional Employment International ● Participation in Community Activities Expectations and Trust Community ● Donations and Contributions Local to the Community Community Expectations and Trust

Expectations and Trust Civic Community

● Participation in Various Activities ● Donations and Contributions to Organizations ● Support of Sporting and Cultural Events ● Support of Social Welfare and Disaster Efforts

61 Society and Casio Social Contribution Activities Casio fulfills its broad responsibility to the society by capitalizing on its proprietary know-how and management resources.

Policies regarding Social fiscal 2004, the CSR Operations Section ■ Participation in “Kids’ ISO” Program conducted a survey of domestic and over- “Kids’ ISO” is an environmental education Contribution Activities seas sites to gain understanding of the program for children that was developed current status and the committee adopted in 2000 by the International Art and Tech- Sustained growth of a corporation is pos- policies on future activities. nology Cooperation Organization (ArTech), sible only when sustained development of The main focus of Casio’s future activi- a non-profit organization. The program is the global society takes place. Casio’s ties will be on the environmental conserva- conducted in various places in the world wish is to make social contributions in tion and interaction with children, who will in cooperation with UN organizations and unique ways that is possible only for Casio form the next generation. In addition, lev- ISO. The goal of the program is to edu- in accordance with the company’s man- els of activities at various sites will be co- cate children to develop hope and confi- agement philosophy of “Creativity and ordinated through periodic information dence about the future while building Contribution” and by capitalizing on its gathering and information exchange on strength for living through contributions to proprietary know-how and management social contribution activities so as to pro- global environment and exposures to op- resources that are represented by Casio’s mote further activities. portunities that let each one of them de- core competence, namely, “small size, light velop “awareness.” In Japan, the program weight, thinness and low power usage.” Contribution to is implemented at the prefectural and mu- Casio will continue to make dedicated Local Communities nicipal levels, as well as by an increasing social contribution efforts in five key areas. number of corporations. Over 300 schools They are “environmental conservation” to and approximately 70 thousand children protect the irreplaceable global resources ■ Factory Tours for 10,000 people throughout Japan have participated in the and environment; “education” to fulfill our “The Factory Tours for 10,000 people” program. responsibility to the next generation of program was initiated in February 2004. Casio supports “Kids’ ISO” program, people, who will bolster the future of the The concept is to plant the “strength for and began to introduce it to various ele- world; “culture and arts” to provide people living” in children by taking them on a tour mentary schools by taking the opportunity with joy and inspirations; “academics and of a Casio plant. of their factory visits in fiscal 2004. Our research” that contribute to the develop- The children may come to realize the staff that has earned the instructor’s certif- ment of cutting-edge science and tech- bonds of their families as they watch their ication guide the children with environ- nology that are indispensable for the soci- parents work. They may understand the mental activities based on the ISO philos- ety to grow; and “community activities” as functions of a product and be awakened ophy. Casio’s program has received a member of the community. to the wonder of science by observing a immense appreciation from local com- Furthermore, Casio strives to be a cor- production line or by doing a simple as- munities. Starting in fiscal 2005, Casio poration that is trusted by voluntarily set- sembly of a product. They may listen to plans to expand the program nationwide ting its responsibilities to the society passionate talks of employees and find with the cooperation of its production based on its communication with all of its that dreams do come true when you keep sites. In addition, the government of Tokyo stakeholders, and fulfilling these responsi- on working hard without giving up. And started to take the “Kids’ ISO Program” to bilities as a good corporate citizen in ac- hopefully they become motivated to cher- elementary schools as part of its environ- cordance with the Charter of Creativity for ish the global environment when they mental education and global warming Casio and the Casio Common Commit- come across Casio’s environmental activi- countermeasures that apply to homes. In ment. ties. Casio hopes to contribute to the nur- fiscal 2005, the program will be used with turing of people who will be the integral the 5th and 6th graders, and targets to System of Promoting Social members of the future society by offering encompass 150 schools in Tokyo (ap- these opportunities for “awareness.” proximately 10,000 students). Casio sup- Contribution Activities In fiscal 2004, students from five ports this program and will participate in it schools were invited, mainly to Kofu Casio as a sponsoring corporation. In the area of Casio’s social contribution Co., Ltd. Approximately 140 people, in- activities, individual departments promote cluding the board of education chairmen separate themes that heed the unique from various municipalities, visited. In fiscal features of individual companies and busi- 2005, this program will be expanded with ness sites. The CSR Operations Section, cooperation which was created in April 2004, pro- from produc- motes common themes and provides tion sites so overall control, as well as accept inquiries that tours will about donations and contributions. In ad- be open to dition, the CSR Operations Section delib- visitors from Society and Casio erates on the policies, plans and budgets all over Ja- of Casio’s social contribution activities. In pan. Factory Tour Scene Kids’ ISO

62 Society and Casio � Social Contribution Activities

■ Hosting CASIO WORLD OPEN approximately 4.5 km-long course from Golf Tournament Yoyogi Park to Sasazuka Middle School in Since 1981, Casio has held CASIO WORLD a little over one hour. They stopped at a OPEN Golf tournament at Ibusuki Golf temporary station, set up in front of the Club in the prefecture of Kagoshima, aim- Head Office building, to drink some water ing to make social contribution through and use rest rooms. After a 15-minute sport promotion. Casio donates Casio rest, the re-energized participants took off products to the city of Ibusuki and the again as Casio employees cheered on. G-SHOCK A model of the “Dolphin & Whale Eco-Research Network” town of Kaimon, where the tournament is held, for use in school education. Casio ■ Foster Parenting Tulips ■ Support of a Tropical Rain contributes actively to the local communi- In the city of Hamura, Tokyo, where Ca- Forest Protection Organization ties in other ways too. For example, the sio’s Hamura Research and Development In support of Rainforest Foundation Japan company hosts golf lessons for junior gol- Center is situated, tulips are grown in rice (RFJ), which works for the preservation of fers from the local areas, and donates the paddies during the off season to preserve Amazon rain forests and survival of the in- proceeds from a charity event that is held “rice paddies before rooting.” Every April, digenous people’s culture, Casio donates during the tournament. the “Tulip Festival” is held in the second part of the proceeds from sales of its Starting with fiscal 2005, which will half of the “Hamura Festival of Flowers Rainforest watches. mark the 25th anniversary of the golf tour- and Water” and visited by many tourists. *See photo at the bottom left on the front cover. nament, the location of the tournament In November 2004, Casio participated will change to the prefecture of Kochi, the in the planting and planted 15,000 bulbs ■ Activities of Casio Science birthplace of Casio’s founder and where in approximately 990 m2 of idle rice pad- Promotion Foundation Casio has a major manufacturing subsidi- dies, thus becoming a foster parent to tu- Casio Science Promotion Foundation was ary. The company will build closer ties lips. Thanks to the care given by local vol- established in 1982 by four Kashio broth- with the local community with the reloca- unteers, colorful tulips bloomed in the ers, in addition to the late former chairman tion of the golf tournament. spring of 2005. Shigeru Kashio, to contribute to the growth and promotion of academic re- search in Japan. The foundation’s main focus is on “assisting leading-edge, creative research that is at the sprouting stage and conduc- ted especially by young researchers.” Every year, assistance is given to approximately Local junior golfers receive lessons Field of Tulips, Foster Parented by Casio 40 projects. In addition, approximately 10 Contribution to the grants are awarded to send researchers ■ Cooperation with the “Survival Walk abroad and to host research meetings. Home Drill” in Shibuya Ward Civic Society In fiscal 2004, 39 research projects re- On the Disaster Prevention Day, which falls ceived grants, and a combined total of 14 on September 1 of every year, the Shibuya ■ Supporting the “Fourth Dolphin grants were awarded to send researchers Ward government conducts a “Survival & Whale Eco-Research abroad and to host research meetings, for Walk Home Drill” as part of its disaster pre- Network” Project a total of 53 grants in the amount of ap- paredness program in anticipation of peo- Casio participated in the “Fourth Dolphin proximately ¥55 million. The cumulative to- ple who will face difficulties going home in & Whale Eco-Research Network” project – tal amount of grants awarded since the es- the event of a disaster. Since 2003, Casio FEEL THE TIME OF NATURE –, held in tablishment of the foundation is has assisted with the drill like this by offer- 2004. In support of this effort, which as- approximately ¥1.1 billion.In fiscal 2004, 39 ing its head office building, which is on the sists to boost the level of cetacean watch- course, to be used as an “aid station” for ing at ten watching points spread across Changes in the Number and Amount of Research Grants Awarded by resting and information. Japan, including Shiretoko and Nemuro Casio Science Promotion Foundation (Hokkaido), Ogasawara (Tokyo), and Oo- ■Number of Grants ■Total Amount of Grants Awarded gatacho (Kochi), Casio donated part of (Unit: Number of Grants) (Unit: ¥1,000) 60 55,640 60,000 the proceeds from sales of G-SHOCK and 50 49,710 49,800 50,400 50,740 50,000 42 40 Baby-G. 40 39 37 39 40,000 In addition, Casio promotes the recog- 30 30,000 20 20,000 nition of I.C.E.R.C. activities by displaying 10 10,000 exhibits of the Cetacean in the antenna 0 0 Participants resting in front of the Head Office building The 18th The 19th The 20th The 21st The 22nd shop at Odaiba and at retail stores of Ca- (FY2000) (FY2001) (FY2002) (FY2003) (FY2004) *Excludes grants awarded to researchers studying abroad In fiscal 2004, 37 participants walked the sio Distribution. and research groups.

63 research projects received grants, and a Casio held one such conference on Jan- struck on October 23, 2004. Responding combined total of 14 grants were awarded uary 17 at its Head Office building as the to this request, Casio’s Labor Union and to researchers studying abroad and re- company considered this conference to the CSR Operations Section took leader- search groups, for a total of 53 grants in “provide a great opportunity to listen to the ship in coming up with a decision to run a the amount of approximately ¥55 million. frank outside voice and communicate the “Sympathy Ad,” whose advertising cost The cumulative total amount of grants company’s activities to ordinary people.” became a donation, and to organize a awarded since the establishment of the Casio welcomed twenty participants on the joint Casio Group labor-management don- foundation is approximately ¥1.1 billion. day. Following a brief explanation given by ation drive. Casio president quickly prom- the General Affairs Department, a confer- ised that the company would match the ■ Cooperation with “Teacher’s Busi- ence was held with the participation of the collected donation money. ness Training Program” center personnel, who was the master of On November 4, the announcement of Casio participates in the “Teacher’s Busi- ceremony, and Casio personnel represent- the donation drive was made. Specific ness Training Program,” which is part of ing CSR Operations Section, Public Rela- methods of collection were discussed the program to promote communication tions Department, and the Customer Sup- among Casio’s Labor Union, benefit asso- between the business world and the edu- port Center. Not only was Casio able to ciation and the management, and the de- cation world, as a corporation that ac- gain extensive information through ques- tails of how to make a donation were an- cepts teachers. tions and requests that came from people’s nounced on the Website and sent out by This program, which is sponsored by perspective, but also had the participants e-mail on the tenth of the month. By the Keizai Koho Center (Japan Institute for develop deep understanding about Casio. 30th of the month, ¥2,490,667 was col- Social and Economic Affairs), provides The conference was thus mutually highly lected. The money was donated to the elementary, middle and high school teach- meaningful. Japanese Red Cross Society and JAM as ers an opportunity to experience corpor- a donation from the Casio Group. In turn, ate activities and share their experience Casio Computer Co., Ltd. gave the same and what they learned with their students amount (rounded up to ¥2.5 million) to the in their curriculum. The program started in Japanese Red Cross Society. 1983 and teachers are assigned to cor- In addition, Casio donated some prod- porations during their summer breaks. ucts. Three hundred each (waterproof) In fiscal 2004, which was the first year of pocket TV sets with a radio and adapters participation for Casio, the company offered were given to meet the needs for informa- a 3 day-long program, from August 2 to 4, A Conference Corporations and People tion tools at the disaster-struck area. As a in which seven teachers from elementary member of Japan Clock and Watch Asso- and middle schools received training. The ■ Participation in the “Next Gene- ciation, Casio also donated 1,000 alarm teachers who participated were surprised at ration Office for the Ubiquitous clocks and 500 wall clocks. the way Casio works with private corpora- Society” Symposium tion’s goals and dreams and were very The Japan Business Machine and Infor- ■ Award for Contribution to the pleased with what they saw, saying that mation System Industries Association, Next Generation Technology they would apply in their classrooms what with the backing of the Ministry of Econo- On June 23, 2005, Shinichi Matsui of the they learned in Casio. my, Trade and Industry, held a symposium Second Development department of Ca- in July 2004, upholding the “Ubiquitous sio Computer’s Reseach&Development Corporation” as the concept of the next Center received commendations from the generation offices. This symposium advo- Telecommunication and Technology Com- cates for the next generation office that mittee for his outstanding achievement re- simultaneously strengthens individuals and garding Advanced video coding for gener- teams by fully utilizing the network envir- ic audio visual services. onment, which “enables optimal collabor- ation any time, any place with any one.”

Training of Teachers Casio’s managing director took part in the symposium as a panelist, and provided ■ “Conference for Corporations support from the technical side. and People” Keizai Koho Center sponsors conferences ■ Donations to Niigata-Chuetsu between corporations and people to en- Earthquake Victims hance mutual understanding between people Many offices within Casio voiced their de- who are members of the center and corpora- sire to see Casio organize a company-

Letter of Commendation Society and Casio tions. Already 83 conferences have been held wide donation drive to help the victims of at corporations in various industries. the Niigata-Chuetsu earthquake that

64 Society and Casio � Social Contribution Activities

the use of video letters with the hope that The purpose of the graduate students’ Contribution to they would feel closer to each other and visit was to “inquire directly into the his- International Communities develop a more informed view of the world tory, background and process of the and build their value systems accordingly. growth of Japanese corporations, ob- serve Japan’s technological power first- ■ Cooperation with the “Video ■ Cooperation with the “Joint hand, and examine their findings.” They Letter Exchange Project” of the FASID/GRIPS International attentively listened to the presentation People for the Advancement of Development Studies Program” about Casio’s history and product devel- Cambodian Education On September 28, Casio received a visit opment process. In support of the Video Letter Exchange by 42 graduate students from Asia and Casio plans to actively seek these op- Project that was implemented between Africa who are studying in Japan. The visit portunities to play a role in cultivating hu- June and November of 2004 by the People was a part of the joint international devel- man recour- for the Advancement of Cambodian Educa- opment program by the Foundation for ses capable tion (PACE), a non-profit organization, Casio Advanced Studies on International Devel- of making a provided projectors to show video letters. opment (FASID) and the National Grad- global con- The project was designed to provide uate Institute for Policy Studies (GRIPS). tribution in Japanese and Cambodian children, who The program offers students who study the future. live in different cultures, with opportunities international development support oppor- to have exchanges that have “faces” with tunities for field study and observation. Company visit Major Social Contribution Activities in FY 2004 Category Theme Name Content Implementing Organizations Assistance with the “Survival Walk Home Drill” of the Casio Computer Co., Ltd. Disaster Prevention Shibuya Ward P63 (Head Office) Cooperation with the Manseibashi Police Station and the Japan Participation in a traffic safety campaign Traffic Safety Association during the national traffic safety weeks in the spring and the fall, and participation in guiding pedestrians at Casio Techno Co., Ltd. Traffic Safety intersections. Safety Association during the national traffic safety weeks in the Casio Information Systems Cooperation with a traffic safety campaign spring and the fall, and participation in guiding pedestrians at inter- sections. Co., Ltd. Social Education Factory Tours for 10,000 people P62 The Casio Group Kids’ ISO P62 Casio Computer Co., Ltd. Cleaning of the areas around the premises, the neighboring Higashi Kofu Casio Co., Ltd. Implementation of the Clean-up Day Hanawa station, and streets twice a year (in summer and winter). Casio Micronics Co., Ltd. (Yamanashi) Local Activities to support the cherry tree planting and conservation by Community Beautiful Yamagata and Mogami River Forum municipalities in cooperation with forums and prefectural govern- Yamagata Casio Co., Ltd. ments for the revitalization of local communities. Efforts to keep the environment esthetically pleasing by regularly Community cleaning in the areas around sites cleaning the areas around business sites as part of the activities to Casio Micronics (Ome) contribute to local communities. Environment A campaign to improve smoker manners by urging smokers not to Casio Computer Co., Ltd. Smoking manner improvement campaign smoke while walking around or toss away their cigarette butts to (Hamura Research and Develop- make it possible for smokers and non-smokers to live side by side ment Center) in peace. People are asked to voluntarily clean the areas around the compa- ny sites all across Japan. Early morning cleaning in the vicinity of sites Under way at major sites, such as the Head Office and Ochanomi- Casio Techno Co., Ltd. zu (Tokyo). Cooperation with community activities by sending employees to Participation in the grass burning along the Kokubu the Kokubu River (Kochi Prefecture) clean-up (grass burning) event Kochi Casio Co., Ltd. River in February. A drive to solicit donations to the victims of the Niiga- Disaster Relief ta-Chuetsu earthquake P64 The Casio Group Charity events and other social contribution activities at the Casio World Open golf tournament P63 Casio Computer Co., Ltd. Education Sending lecturers to a program that invites special A lecturer was sent to Suzaki High School to cooperate with a pro- part-time lecturers gram of the Kochi Prefectural board of education to invite special Kochi Casio Co., Ltd. lecturers. A two hour-long lecture was given to 168 freshmen. 173 employees at the Head Office and 288 employees at Hamura Cooperation with a blood donation drive The Casio Group Civic Research and Development Center cooperated. Welfare Community Jobs offered to physically or mentally handicapped Product disassembly, parts sorting and other types of light work workers are offered on a contract basis. Casio Support System Co., Ltd. Support of education and research activities in con- nection with dolphins and whales of the world P63 Casio Computer Co., Ltd. Support of the activities of a tropical forest protection Environment group P63 Casio Computer Co., Ltd.

Support of the Sustainable Management Forum of Casio employees serve as a director and the assistance manager Japan protection group of the Executive Office of the Sustainable Management Forum of Casio Computer Co., Ltd. Japan, and support Forum activities.

A drive to solicit donations to the victims of the mas- Solicitation of donations for disaster restoration. Disaster Relief sive offshore Sumatra earthquake The Casio Group (Overseas) Assistance to an employee group that sends foods to poor people Welfare IMASA (the in-house Muslim club) P.T. Asahi Electronics Indonesia International and orphans on isolated islands. Community Participation in a tree planting festival in the city of Participation in the greening program of the city of Shenzhen. Casio Electronics (Shenzhen) Environment Shenzhen Co., Ltd.

Traditional Culture Aids to the preservation of traditional dances from the Assistance to employees from regional areas by allowing them time regions that workers are from at company events for practicing their traditional dances and paying for costumes. P.T. Asahi Electronics Indonesia

65 Major Donation Activities in FY 2004 Category Project Title Donee Implementing Organizations Support of the global-scale action on environmental and social problems by Think the Earth Project (NPO) Casio Computer Co., Ltd. the “Think the Earth Project” FY2004 Support of education and research activities concerning dolphins and whales Environment I.C.E.R.C. Japan (NPO) Casio Computer Co., Ltd. of the world P63 Sponsorship of the activities of a tropical forest protection group P63 Rainforest Foundation Japan (NPO) Casio Computer Co., Ltd. Donation to the Japan Industrial Waste Management Foundation Japan Industrial Waste Management Foundation Casio Computer Co., Ltd. Education/Social Sponsorship of the International University of Japan International University of Japan Casio Computer Co., Ltd. Education Sponsorship of NHK Symphony Orchestra NHK Symphony Orchestra Casio Computer Co., Ltd. Culture and Arts Sponsorship of Tokyo Philharmonic Orchestra Tokyo Philharmonic Orchestra Casio Computer Co., Ltd. Donation of Select Products to the JIDA Design Museum Exhibition JIDA Design Museum Casio Computer Co., Ltd. Fruit Nation Higashine Cherry Marathon Executive Sponsorship of the Fruit Nation Higashine - Cherry Marathon Yamagata Casio Co., Ltd. Committee Casio Computer Co., Ltd. Sponsorship of the 2nd Kaze no Owara The City of Hamura (Hamura Research and Development Center) Casio Computer Co., Ltd. Foster Parenting of Tulip Bulbs for the Preservation of Rice Fields before The City of Hamura (Hamura Research and Rooting P63 Local Community Development Center) Assistance with the installation of a multi-purpose station-front air dome in the Casio Computer Co., Ltd. square in front of the East Exit at Ozaku train station The City of Hamura (Hamura Research and Development Center) Donation of Wave Clocks to Gomen-Machi Station (nicknamed “Arigato The City of Nangoku and Tosa Kuroshio Railway Kochi Casio Co., Ltd. Station”) on the Gomen-Nahari Line of Tosa Kuroshio Railway Donation to local community activities Hie and Kokubu burakus, the city of Nangoku Kochi Casio Co., Ltd. Monetary donations to the victims of the massive offshore Sumatra The Japanese Red Cross Society, etc. The Casio Group earthquake Disaster Relief Donations to the victims of the Niigata-Chuetsu earthquake, and a gift of The Japanese Red Cross Society, JAM, etc. The Casio Group clocks and pocket TV sets P64 Cooperation with the Video Letter Exchange Project of the People for the The People for the Advancement of Cambodian Casio Computer Co., Ltd. Advancement of Cambodian Education P65 Education (NPO)

International Sponsorship of the Expo 2005 Aichi, Japan The Expo 2005 Aichi, Japan Association Casio Computer Co., Ltd. Exchange/ Sponsorship of the Friends Association, MAISON DE LA CULTURE DU The Friends Association, MAISON DE LA CULTURE Casio Computer Co., Ltd. Cooperation JAPON À PARIS DU JAPON À PARIS � Casio Electronics Donations to the Tree Planting Ceremony of the City of Shenzhen The Tree Planting Committee, the City of Shenzhen (Shenzhen) Co., Ltd. The 2005 Special Olympics World Games Executive Sponsorship of the Special Olympics Games Casio Computer Co., Ltd. Social Welfare Committee The Organizing Committee of the 2005 FISA World Sports Sponsorship of the 2005 FISA World Rowing Championships Casio Computer Co., Ltd. Rowing Championships

Major Disclosure and Communication Activities in FY 2004 CategoryTheme Title Description Implementing Organizations A lecture was given to 37 elementary school principals about “Yamagata Casio’s business and Lecture at the Kitamurayama principals’ meeting Yamagata Casio Co., Ltd. corporate management, and what is expected of school education by corporate executives.” Actively accepts internship, which many universities offer as part of vocational training. 21 interns Receiving of internship students Kochi Casio Co., Ltd. were accepted in FY 2004. Casio Information Systems Internship Partnership One or two students are accepted every year and receive approximately two week-long OJT. Co., Ltd. Students visit Casio as part of their integrated study, usually during their school excursion tours. Casio Computer Co., Ltd. Receiving of visitors to the company During FY 2004, 130 students from 21 schools visited Casio. (Head Office) Local Factory tours are given as part of the children’s social learning experience. In FY 2004, approxi- Community Opening of factories for tours Kochi Cashio Co., Ltd. mately 350 pupils from ten schools took tours. An active program that is built on the business-academia-government cooperation. Small busi- Casio Electronic Goods making network for energetic people ness owners and entrepreneurs of the city of Iruma play the central role with the involvement of Manufacturing Co., Ltd. the government and universities. In recognition of the critical importance of disaster prevention, Casio meets regularly with the Information exchange meeting about disaster pre- residents, government administrators, and fire and police bureau personnel from the community Casio Computer Co., Ltd. vention, etc in which the Head Office is located and exchange information. Three meetings were held during (Head Office) FY 2004. Participation in the “Teacher’s Business Training P64 The Casio Group Program” Civic Hosting of a “Conference for Corporations and Casio Computer Co., Ltd. P64 Community People” (Head Office) Participation in the “Next Generation Office for the P64 Casio Computer Co., Ltd. Ubiquitous Society” Symposium Cooperation with the “Joint FASID/GRIPS Interna- Casio Computer Co., Ltd. P65 tional Development Studies Program” (Head Office) P.T. Asahi Electronics International Acceptance of student interns Received high school students from Batam and Surabaya for tours and internships. Indonesia Community Acceptance of students participating in “Work Casio cooperates with universities’ work-study curriculum (between approximately two and three Study Programs in Private Corporations” offered Casio (Thailand) Co., Ltd. months) and offers practical training to about ten students every year. by various universities

Major Awards and Commendations in FY 2004 Year Month Site Award and Commendation Main Awarding Organization May Casio Computer Co., Ltd. Commendation as a corporation practicing excellent CSR management The Sustainable Management Forum of Japan June Casio Micronics Co., Ltd. Award of excellence for electrical safety and rationalization promotion Tama Electric Association 2004 November Casio Micronics Co., Ltd. Letter of appreciation from administration for fire prevention (group recognition) Ome Fire Station, Tokyo Fire Department November Casio Micronics Co., Ltd. Efforts on promotion of hazardous substance handlers’ work (personal recognition to Tamotsu Endo) Ome Fire Station, Tokyo Fire Department January Kochi Casio Co., Ltd. Recognition by Kochi Prefecture as an environmentally conscious business operator Kochi Prefecture Commendation of the Shikoku Bureau of Economy, Trade and Industry for achievement in energy Shikoku Bureau of Economy, Trade and

February Kochi Casio Co., Ltd. Society and Casio 2005 management in the electrical division Industry Hachioji Research and Kanto Regional Electric Use Rationalization February The highest award from the Kanto Regional Electrical Use Rationalization Committee Development Center Committee

66 Independent Opinion

This year, Casio has issued its first CSR report to directly address its As for market, I would like to see the company discuss how its corporate social responsibility. It is noteworthy that the company next generation products that are under development will impact presents its management philosophy through the top management’s CSR and sustainability, and what its thoughts are on new business voices, makes efforts to disclose detailed information in the environ- models for creating sustainable values so as to move beyond envir- mental area and is attempting to expand the scope of its efforts and onmental efficiency improvements through reductions in the size reporting to its overseas operations, which account for 40% of the and weight of its products. company’s total sales. With respect to the environment, there is room for improvements. I would like to make the following suggestions to make the report Its report on greenhouse gases emissions is not easy to understand. better in the future: The company’s substantive efforts on renewable energies are not The definition of CSR varies from one organization to another. Ca- readily observable though in this century Japan is said to have to re- sio should take a close look at the question of how Casio interprets duce 80 percent of its emissions. CSR and communicate its basic stance. In addition, it should under- In the section about employees and the society, efforts in such stand that stakeholders are not limited to today’s customers, busi- areas as employees’ safety, support to the nurturing of the next gen- ness partners and employees. The ecosystem and future genera- eration of people, human resource development, factory tours and tions are also important stakeholders. Kids’ ISO14001 can be valued. The report would be better by having In the communication aspect, the company seems to aim for voices of employees and people from local communities. It is trou- comprehensiveness. I would like to see more efforts devoted to blesome that the company does not report on equal employment making the report easy to understand. The report can give a for both genders, such as data on the breakdown of managers by “human” touch by sharing actions in the processes, accomplish- gender, statement of philosophy on promoting women, and recogni- ments, problems, challenges, and lessons learned from failures as tion of the current situation and efforts. well as negative information. It is also possible to make the report I request and remain hopeful that come alive by creating feature sections of especially important top- Casio achieve improvements in its vari- ics. In the sections relating to environmental accounting and LCA ous activities on CSR and make con- analysis, what Casio sees beyond the numbers and what it plans to tinuous efforts for “communication and do as a result should be communicated. By doing so, the connec- listening.” tion between philosophy and actions will become clear. Additionally, the interactive communication with stakeholders should constitute a Junko Edahiro, Co-Chief Exective part of PDCA cycle to improve the efforts on CSR. Japan for Sustainability

Message from the Auditor ・・・・ Reflection on the Publication of the CSR Report

The publication of the CSR Report this year affords Casio I request all stakeholders to offer continuous support and opportunities for communication with a wider scope of multi- cooperation for Casio to become an enterprise that can co-exit and stakeholders than the traditional stakeholders interested in the prosper with the society. In my capacity as the environmental issues. I am hopeful that this will enable Casio to corporate auditor, I will help enhance the determine tasks for sustained growth and to acquire valuable insights internal control system that centers on CSR for solving them. management so that Casio’s corporate At the same time, I recognize the necessity and importance for Casio governance is steadfastly executed. to strengthen the system to respond precisely to the opinions and questions from multi-stakeholders regarding broad aspects of CSR. Yoshinobu Yamada, Auditor �

From the Editors

This report was presented as CASIO CSR report. Particular emphasis Nevertheless, there are some points that were pointed out in the was placed on readability and comprehensive coverage of the Casio past which we have not yet been able to address. These will be Group’s entire CSR activities, from the perspectives of market, among the tasks for this fiscal year, along with the points raised by environment, employee and society. Ms. Junko Edahiro of Japan for Sustainability, who expressed her Continuing the tradition that started last year, a discussion among third party opinion in this year’s report. Mr. Mita, Chairman of the Sustainable Management Forum of Japan, We editors hope to hear frank views and opinions from many Casio’s president and its vice president is once again included with readers and reflect them on Casio’s CSR activities. We therefore ask the hope that we convey Casio’s philosophy toward CSR for your assistance and understanding. management through the direct voices of its top management to the In conclusion, we would like to best of our abilities. express our deepest gratitude to Some suggestions for improvement were received regarding last year’s all individuals who helped us “Stakeholder Dialog to Read Sustainability Report,” the “Independent prepare this report. Message” and the “Questionnaire.” We incorporated these suggestions as much as possible in our editorial policies in response. Editors of the CSR Report

67 GRI Content Index

1. Vision and Strategy� 5. Performance Indicators� � Item Corresponding page numbers � Item Corresponding page numbers 1. 1 Statement of the organization’s vision and strategy regarding its contribution to sustainable development PP5-6・P13・P31 Integrated Indicators PP5-6・P32 1. 2 Statement from the CEO describing key elements of the report PP7-8 Economic Performance Indicators Customers EC1 PP5-6 EC2 P6 2. Profile Providers of Capital EC6 P28 Item Corresponding page numbers Public Sector EC10 PP63-66 Organizational Profile Environmental Performance Indicators 2. 1 Name of reporting organization P5 Materials EN1 P38 2. 2 Major products and/or services P5 EN2 P38 2. 3 Operational structure of the organization P5・P14 Energy EN3 P38・P43 2. 4 Description of major divisions, operating companies, subsidiaries, and joint ventures P1・P6 EN18 P36・P38・P42 2. 5 Countries in which the organization’s operations are located P6 EN19 P42 2. 6 Nature of ownership; legal form PP5-6 Water EN5 P38・P46 2. 7 Nature of markets served PP5-6 EN22 P38 2. 8 Scale of the reporting organization P5 Emissions, Effluents and Waste 2. 9 List of stakeholders, key attributes of each, and relationship to the reporting organization P19・P29・P53・P61 EN8 P38・P43 Report Scope EN9 P45 2.10 Contact person(s) for the report Back Cover EN10 P38・P44 2.11 Reporting period for information provided P1 EN11 P38・P47 2.12 Date of most recent previous report P48 EN12 P38 2.13 Boundaries of report P1 EN13 P34・P46 2.14 Significant changes that have occurred since the previous report P1・PP5-6 EN30 P38・P43 2.15 Basic matters for comparison from period to period, and/or between reporting organizations P1・PP5-6 Products and EN14 P38 Services 2.16 Re-statement of information provided in earlier reports P38・P43 EN15 P38 Report Profile Compliance EN16 P34 2.17 Descriptions not to apply GRI principles or protocols in the preparation of the report P1 Transport EN34 P49 2.18 Criteria/definitions used in any accounting for costs and benefits PP35-36 Overall EN35 PP35-36� 2.19 Significant changes in measurement methods since the previous report P35 Social Performance Indicators� 2.20 Policies and internal practices to enhance and provide assurance about the P67 Labor Practices and Decent Work accuracy, completeness and reliability Employment LA1 P5・P54 2.21 Policy and current practice with regard to providing independent assurance P48・P67 LA12 P58 2.22 Means by which report users can obtain additional information and reports Notation of a URL on each page Labor/ LA3 P58 Management Relations LA4 P58 LA13 P12・P58 3. Governance Structure and Management Systems� Health and LA5 PP59-60 Safety � Item Corresponding page numbers LA6 P59 Structure and Governance LA7 P60 3. 1 Governance structure of the organization PP14-15 LA14 PP59-60 3. 2 Percentage of the board of directors that are independent, non-executive directors P14 LA15 P58 3. 3 Process for selecting and appointing board members Omitted (See PP 14-15) Training and LA9 PP55-56 Education 3. 4 Board-level process for oversight P17 LA16 PP55-56 3. 5 Linkage between executive compensation and achievement of goals Omitted LA17 PP55-56 3. 6 Organizational structure and key individuals responsible PP14-15・P24・P33 Diversity and LA10 P54 Opportunity 3. 7 Mission and values statements (codes of conduct, principles, performance PP13-16・PP20-21・PP23-24・� LA11 P54 policies, etc.) PP27-28・P30・P39・ Human Rights P50・PP54-55・P57・P62 Strategy and HR1 P16・P54 Management Stakeholder Engagement HR2 P27 3. 8 Mechanism for shareholders to provide recommendations or direction P14・P28 HR3 P27 3. 9 Definition of major stakeholders P19・P29・P53・P61 HR8 P16 3.10-12 Approaches to stakeholder consultation, type of information generated by PP25-28・P58・P63・� Non-discrimination HR4 P16・P54 consultation and its use PP64-66 Freedom of Association and Collective Bargainin Overarching Policies and Management Systems HR5 P58 3.13 Precautionary approach or principle PP15-18・PP25-26・P34 Child Labor HR6 P16・P27・P54 3.14-15 Charters, sets of principles, various associations, etc. which the organization P48・P65 Forced and Compulsory Labor HR7 P16・P27・P54 subscribes to, endorses or participates in Disciplinary HR9 P16 Practices 3.16 Policies and/or systems for managing upstream and downstream impacts P20・P24・P27 HR10 P16 3.17 Approach to managing indirect impacts PP5-6・P28・P38・PP65-66 Society 3.18 Changes in the location or operations during the reporting period PP5-6 Community SO1 P16・PP65-66 3.19 Programs and procedures regarding performance P15・PP32-34・P62 SO4 P34・P48・P64・P66 3.20 Status of certification regarding management systems P17・P25・P33 Bribery and Corruption SO2 P16 Product Responsibility Customer Health and Safety PR1 PP24-26 4. GRI Content Index� Products and PR2 PP24-26 Services � Item Corresponding page numbers PR8 P26 4. 1 A table indicating location of each element of the GRI Report Content, by section and indicator P68 Respect for Privacy PR3 P18

68 Contact Information Casio Computer Co., Ltd. http://www.casio.co.jp/ CSR Operations Section (regarding CSR in general) 1-6-2 Honmachi, Shibuya-ku Tokyo 151-8543 Tel.: +81-3-5334-4901 Fax: +81-3-5334-4547 Email [email protected] Environment Center (regarding environmental issues)� 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 2005