For
future
Generations
For
a
Greener
world
For
our
Global
resources

Noritsu Koki Environmental & Social Report
Noritsu Koki Environmental & Social Report 01

About This Report

Like last year, we have entitled the 2009 edition of this environmental report “Environmental & Social Report” in order to make readers aware of our social commitments in addition to reporting on our environmental activities. While we have done our best to be as comprehensive as possible, we are also aware that this report may have some shortcomings. Therefore, we welcome any opinions that may help us to make improvements for future reports.
Operations Covered in This Report

In addition to the main factory at the head office, Noritsu also has assembly and production plants in China (Shanghai) and Brazil (Manaus). However, most of the operations that are likely to have an impact on the environment take place at the head office. These operations include product planning and development, material purchasing, machining, painting, chemical handling, assembly, disposal of waste material, and consumption of energy. Noritsu Koki has obtained certification for ISO14001 for its operations at the head office, and therefore this report will cover operations and activities related to the head office.
Period
Fiscal year 2008 (April 2008 - March 2009)
*This report covers some activities in and after April 2009.

Date Published
December 2009

Contact

Noritsu Koki Co., Ltd.Human Resources Development & General Administration DivisionGeneral Affairs and Public Relations Group579-1, Umehara, Wakayama City, 640-8550, JapanPhone: +81-73-454-0307URL: http://www.noritsu.co.jp

Website information
URL: http://www.noritsu.co.jp/company/index.html
This report and information on Environment Management and Social Responsibility can be viewed from the "About NORITSU" page of the company website.
Foreword
We at Noritsu Koki share the strong conviction of our founder to
“put the customer first”which has also become our business phi-
losophy, and we have set for ourselves a corporate image as
“always the No. 1 choice of customers, a company that leads the
global market.” We aim to become a leader in the global market by offering prod-ucts and added-value services that match the needs of customers, both domestic and international, with each one of our employees and management contributing to their full potential. With that, we will be working to develop our brand value both in Japan and abroad, and maximizing the use of our global market network, our leading technical capabilities in manufacturing and R&D, and the extensive management resources we have built over the years, to take steps that will earn us high marks from the marketplace and improve brand value. Businesses today can no longer seek profits as the lone direction for enhancing corporate value and earning respect as a corporate citizen, because of the strong pressure placed on them to fulfill their social responsibilities. Environmental problems have grown to global scale and are requiring businesses to take creative meas-ures to correct them. Noritsu Koki has selected specific areas to address in this re-gards and is aggressively working to produce results with them, i.e., compliance with laws, regulations and social ethics, consumer protection, environmental preservation and protection, reduction of environmental loads, occupational safety and health, local in-vestment, contributions to local communities, etc. Through these efforts, Noritsu Koki is aiming to be a company with the following four attributes. 1. That continues to offer products and services that are even more appreciated by our customers 2. That continues to develop a working environment that offers even greater job satisfaction 3. That continues to be valued by society through increased    contributions to society 4. That continues to create greater corporate value for shareholders Noritsu Koki will be working to increase the number of opportun-ities to communicate with all of our stakeholders―customers and general consumers, shareholders, suppliers, employees and local residents―establish ourselves as a company agreeable to and trusted by all, improve corporate value and develop business.
Yukihiko Chayama
President and CEO

Corporate Profile
Foreword
Yukihiko Chayama, President and CEO
Corporate Governance
Building a Management System for Swift Decision-Making / Board of Directors / Board of Auditors / Management Strategy Meetings / Compliance / Counseling and Reporting Arm / Corporate Governance System / Code of Behavior
Close-up: Our New Environmentally-friendly Product
Environmental Management

Our Environmental Policy / Environmental Management System / ISO14001 Acquisition / Environmental Protection Promoting System / Green Procurement Guidelines / Environmental Education / Intra-Company Network / Greenery at the Head Office / Environmental Objectives, Targets, and Evaluations / Environmental Impact / Environmental Preservation Activities

Social Activities

Communicating with Society and the Local Community

Collection and Donation of Idle Clothing / Internships /Ambulance Donation /Disaster Prevention Drills /Cleanup Activities in the Local Area / Blood Drives
Communicating with Customers

Photo Event at a Kindergarten / Promotional Support / Demonstrations and Business Exchanges / Connections to End-Users / Acquired ISO9001 Accreditation
Communicating with Investors and Shareholders

Appropriate Disclosure of Information
Communicating with Employees
Talking with Stakeholders to Ensure a Mutual Understanding / Occupational Safety and Health Management System / Support for Employees

Cover Photo : Lupines Field in Hokuseinooka (Kamikawa, Hokkaido)
Contents
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Noritsu Koki Environmental & Social Report

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Noritsu Koki Environmental & Social Report
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Crisis-management
Compliance Committee
Internal Control Committee
Management
Consideration of business and other topics on
important operations and information sharing
Company Profile

Name: Noritsu Koki Co., Ltd.
Operations began: June 1951
Established: June 1956
Capital: ¥7,025,302,000
Number of Employees (Head Office) : 937 (As of September 30, 2009)
Head Office: 579-1, Umehara, Wakayama City, JapanPhone: +81-73-454-0307 Fax: +81-73-454-0420
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Head Office
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Domestic Subsidiary
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Domestic Factories
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Domestic Branch Offices
Domestic Business Locations
Nagoya branch office
Nishimoto Co., Ltd.
Head office factory
Noritsu Koki Co., Ltd.
Sapporo branch office
Sendai branch office
Tokyo branch office
Osaka branch office
Hiroshima branch office
Fukuoka branch office
Overseas Business Locations
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Main Overseas Subsidiaries
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Overseas Branches & Offices
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Overseas Factories
Noritsu Poland Sp z.o.o.
Noritsu (R) Co. Ltd.
Moscow office
NORITSU DO BRASIL LTDA.Brazil factory
NORITSU MEXICO, S.A. DE C.V. (N-MEX)
NORITSU (UK) LIMITED
Noritsu (Deutschland) GmbH
NORITSU FRANCEE.U.R.L.
NORITSU ITALIA S.r.l.
NORITSU (FAR EAST) LIMITED
NORITSUSINGAPOREPTE LTD
Noritsu Taiwan Co., Ltd.
NORITSU PHILIPPINES, INC.
NORITSU KOKI AUSTRALIA PTY. LIMITED
Noritsu Canada Ltd.
Noritsu (CR) spol. s.r.o.
NORITSU HELLAS LTD.
(Greece)
NORITSU KOKI (MALAYSIA) SDN. BHD.
Seoul Branch,Noritsu Koki Co., Ltd.
Near East Branch,Noritsu Koki Co., Ltd.
India Branch,Noritsu Koki Co., Ltd.
NORITSUAMERICA
CORPORATION
NORITSU SHANGHAI PHOTOFINISHING EQUIPMENT MANUFACTURING CO., LTD. Shanghai Noritsu Studio Service Co., Ltd.Shanghai factory
Digital Minilab QSS-37 HD Series
Digital Minilab QSS-35 PLUS Series
Dry Minilab D703
Dry Minilab D502
Wide-Format Printing System MYTIS-1SP
Consumer Terminal CT-SL
Development, manufacturing, and sales of the following: - Minilab systems (Indispensable items for photo shops) - Digital dry minilabs (Environment-friendly printers that meet the needs of the new digital age) - Peripheral equipment and software (Products that improve efficiency and increase the variety of services that can be offered)

Summary of Business
Major Products

Net Sales
(millions of yen)
Operating Profits
(millions of yen)
Ordinary Profits
(millions of yen)
Net Income
(millions of yen)

Minilabs
28,501
Options and spare parts

8,344
Other
8,588
Total
45,434
FY2008 Consolidated Net Sales by Product Category
(millions of yen)
Total
45,434
FY2008 Consolidated Net Sales by Region
(millions of yen)

Japan6,972
North America
16,064
Europe
8,506
Asia & Oceania
7,421
Other
6,469
Number of Employees
Non-consolidatedConsolidated
Non-consolidatedConsolidated
Non-consolidatedConsolidated
Non-consolidatedConsolidated
Non-consolidatedConsolidated
Building a Management System for Swift Decision-Making
Noritsu Koki is building a management system for speedy decision-making in order to quickly react to changes in the business environment. To begin with, management and business units were sepa-rated and an Executive Officer System was introduced to strengthen corporate governance and in-crease managerial efficiency. Swift decision-making on the part of management is strengthening the organization and enhancing the efficiency of operations.
Board of Directors
In a move to further strengthen the management supervising capability of the company's Board of Directors, an outside director was invited to participate in the decision-making process and provide an independent and neutral outside view to management.
Board of Auditors
Our company is adopting the Auditing System, and its Board of Auditors consists of four auditors, two of which are outside auditors. Their job is to build a fair and impartial system for auditing the companyﾕs business. Moreover, an Internal Audit Division was created underneath the CEO to con-duct internal audits whenever necessary. In an effort to improve the quality of corporate audits, the Board of Auditors and Internal Audit Division work closely together sharing information and opinions through explanations of annual auditing plans, jointly conducted audits and the joint retention of au-diting reports.
Management Strategy Meetings
At Noritsu Koki, Management Strategy Meetings composed of the President, Executive Managing Di-rector, and several Executive Officers and employees that the President selects are periodically held as an advisory organ on executive actions of the President. They report, discuss and coordinate ba-sic issues from across all aspects of business, as well as important matters regarding the execution of corporate operations for referral to the Board of Directors. Auditors also attend these meetings.
Compliance
Noritsu Koki does not think of "compliance" as merely "observing the law." It has the broader mean-ing of "fulfilling our social responsibilities as a company." The Compliance Committee launched in April 2004 plays a key role in our corporate compliance. In December 2004, the Code of Behavior was instituted based on our Basic Policy on Compliance. Awareness activities are being conducted to educate each and every employee.
Counseling and Reporting Arm
At Noritsu Koki, the Internal Audit Division serves as the compliance office and, by auditing compa-ny operations, audits the actions of employees. Within the Internal Audit Division is a group to which employees can report incidents that happen in the company and seek counseling. This group maintains the privacy of anyone who reports information and it has added more staff to provide sup-port for female employees. Requests from employees are gradually growing. The Compliance Com-mittee also has a female attorney so that women's opinions on sexual harassment can be shared and effective action taken.
Corporate Governance
Corporate Governance System
Code of Behavior
Noritsu Koki has established the basic criteria for 28 areas of behavior. Here is provided only an outline.
General Provisions

1. Observance of Laws and Regulations

Society

2. Social Contributions 3. Fair Corporate Practices 4. Abstention from Relations with Antisocial Powers 5. Environmental Preservation and Protection 6. Observance of Trade Laws and Regulations 7. Export Security Control

Customers, Suppliers and Competitors

8. Product Safety 9. Observance of Antitrust Laws 10. Observance of Fair Trade and Subcontracting Laws 11. Relations and Gift Exchanging 12. Appropriate Publicity and Advertisement

Shareholders and Investors

13. Disclosure of Management Information 14. Prohibition of Insider Trading

Employees

15. Respect for Human Rights and Antidiscrimination 16. Observance of Labor Laws 17. Health and Safety in the Workplace 18. Sexual Harassment and Power Harassment 19. Protection of Personal Information

Company

20. Prohibition of Illegal Activities 21. Observance of Corporate Accounting Laws and Regulations 22. Management of Corporate Assets 23. Management of Corporate Confidential Information 24. Protection of Intellectual Property Rights

Supplemental Provisions

25. Scope of Application of this Code of Behavior 26. Amendments to this Code of Behavior 27. Counseling and Reporting Services 28. Punishments
Board of Shareholders
Appointments
& dismissals
Proposals and advice
Supervision, approval and
instruction related to the execution
of important operations
Operations
Discussion of business and other topics
Board of Directors
Auditing
Appointments
& dismissals
Appointments
& dismissals
Coordination
Auditing of accounts
Reporting of
audits and
improvements
Auditing
Coordination
Auditing and instruction of operation progress
Discussion and reporting related to the execution of important operations
Supervision, approval and
instruction related to the
execution of important operations
Instruction related to the
execution of operations
Reporting related to the
execution of operations
Supervision of
operations
Management Strategy Meetings
Representative Director
Executive Officer
Unit / Division
Internal Audit Division
Board of Auditors
Auditor
2007／3
2008／3 2009／3
2,000
1,000
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NK Relations Inc.
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NK Agri Co., Ltd.
2007／3
2008／3
2009／3
0
3,000
6,000
-3,000
2007／3
2008／3
2009／3
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3,000
6,000
-3,000
2009／3
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4,000
-4,000
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2007
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2008

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Noritsu Koki Environmental & Social Report
Noritsu Koki Environmental & Social Report

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Close-up: Environmentally-friendly Product
SHOP INTERVIEW
Because books are produced in-house, projects are finished in a few hours after an order is placed.
D502 main features

･ Wide variation of prints (duplex printing available)
･ Chemical-free (Photographic chemicals not required)･ Energy- and space-saving design･ High image quality equal to silver halide prints
Kazuki Sosaka
Manager, Camera no Nishimoto Izumiya store
Our store introduced the D502 in May 2009. We already had been offering photo book services, but many customers had expressed their wishes for faster turnaround of finished products. The problem was that work was outsourced, so it took time from when an order was placed until the book could be handed over. In that regard, since the D502 is of space-saving-size, we installed one in the store and started having staff perform the production work, and now can turnaround projects the same day. Moreover, we were able to offer duplex printing, which was the second most demanded service. Wanting to serve customer opinion was the biggest reason for introducing the D502.
Customer opinion keyed us to introducing the D502
Another key factor in introducing the D502 was its low
Environmental-friendliness was another key factor
Amongst our services that employ the D502, photo book production is the biggest and practically every customer who uses this service is glad they did. Another good thing about this is that they are showing friends their photo albums they had made and giving them as presents, which is having a positive effect of increasing use of this service by word of mouth. And, besides photo books, printing orders for calendars and greeting cards are steadfast climbing. I want to push the merits of the D502, such as printing for duplex calendars and business cards, with more customers.
Better conveying the fun of photography via a plethora of services
environment load. Our company is promoting efforts to eliminate waste liquors from photographic chemicals and, in our stores, we are aggressively conserving energy and doing other things to help the environment. In today's world, we can't be indifferent to environmental issues. I think we need to more constructively appeal to customers the fact that we are using environment-friendly equipment.
Photo book production flow
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DIMA Vision Award Winner
The D502 received the DIMA Vision Award as an innovative product at PMA 2009, the largest international convention and trade show in North America for every kind of picture related product, held at the Las Vegas Convention Center in Las Vegas, Nevada, USA in March 2009.
Photo books      Greeting cards       
Colorful albums
Camera no Nishimoto is a photography and image chain with the most
stores in Wakayama Prefecture. Using their extensive knowledge and
experience, they provide customers with a host of services that convey
the fun of photography. We asked Kazuki Sosaka, manager of their
Izumiya store, which was one of the first to introduce the D502, what he
felt about his new automatic duplex printer.


I chose the D502 automatic duplex printer to meet both customer and environmental needs.

To remain a viable player in the 21st century, Noritsu Koki is working to develop and supply products of high added-value that meet with the diversifying needs of customers and excel in environmental performance. The Dry Minilab is one of those results. Noritsu Koki was the first in the world to develop a Dry Minilab on an inkjet system that did not use photographic chemicals subjected to special management and waste treatment requirements. Efforts were successfully directed at further enhancing its performance as an environmentally-friendly product and widening our lineup. This report introduces the D502 that was newly added to our Dry Minilab series in 2009.
Noritsu Koki's Dry Minilabs continue their evolution towards even higher“added-value”and enhanced “environmental performance.”
The D502 inkjet dry minilab is equipped with the industry's first duplex printing function. It enables a wide variation of high quality prints for photo books, greeting cards, calendars and other compilations with photographic images that have been the growing craze in recent years. Additionally, a com-pact design that facilitates maintenance makes it possible to install the D502 anywhere in stores. And, because operation is so simple that anyone can use it, Noritsu Koki expects stores other than photo studios to employ it.
A long-awaited automatic duplex printer D502
Photo calendars
Order placed
from kiosk
Printing on D502
Binding
Finished
( handed over )
New year's cards

06
Noritsu Koki Environmental & Social Report
Philosophy
With the company's head office bordering on both the Seto Inland National Park and the Kisengo Prefectural Natural Park, Noritsu Koki is highly aware of the importance of the relationship between mankind and the environment.From research and development to production, sales and service of Noritsu's products, we are initiating corporate activities that contribute to society.Noritsu will continue to actively implement measures to assist with worldwide environmental protection and harmonious coexistence with our immediate environment.
Continuously improve and maintain our environmental management system to firmly establish environmental action in our corporate activities, products, and services.
Strictly comply with all laws, regulations, and other environmental requirements for our company; work to prevent pollution; and in communication with the local community and related government agencies, promote environmental protection activities, improve the greenery around the factory, and use all economic and technical means to further improve the environment.
As actions related to environmental protection, periodically review the following specific measures according to key goals and objectives.(1) CO
2
reduction via the promotion of energy
conservation (2) Effective use of resources by promoting the 3Rs (Reduce, Reuse, and Recycle)(3) Improvement to the environmental performance of products (low energy consumption, material recycling, environmental safety, etc.)(4) Reduced use of hazardous substances
Raise awareness of the company's environmental policy and environmental activities among all company employees and aggressively publicize the same from a CSR perspective.
1
2
3
4
Action Agenda
Our Environmental Management
We care about
our Global resources.
We care about
a Greener world.
We care about
future Generations.
Noritsu Koki wants to be a company that makes
contributions in a wide variety of areas, including the
environment, social welfare, education, the arts, and
culture; and through our actions we are striving to live
up to our reputation as such a company.
We received certification for ISO14001 in October
1999, and have implemented the “Environmental
Policy” comprised of the“Philosophy” and “Action
Agenda” described below, and are also implementing
environmental-preservation activities.
We are also making social contributions by actively
participating in events and activities that benefit the
community.
Noritsu employees do their part to live harmoniously with nature and with society.
Noritsu Koki Environmental & Social Report

07
We have established an environmental management system in which all parts of the system work together to achieve continual improvement in accordance with ISO 14001 standards, so as to guide the company in the appropriate direction.
Noritsu Koki is taking positive steps to protect the global environment, live harmoniously with the surrounding habitat, and contribute to society; as we consider these topics to be of the utmost importance. In relation to these activities, we received certification for ISO 14001 at the head office on October 20, 1999, after careful planning and preparation which began on October 1, 1998. We will continue to take even greater steps to improve and maintain our environmental agenda, improve the life cycle assessment of our products, and work to develop environment-friendly products.

Environmental Management System
ISO 14001 Acquisition
To make all employees fully aware of Noritsu's environmental stance, we have established a system for the promotion of environmental protection. Under the direction of environmental representatives, important matters are discussed to set our policies among committee members who are appointed from each major division/unit, enabling us to better promote environmental protection. Also, we established an internal environmental audit committee to confirm once a year that environmental preservation activities are being carried out in accordance with the rules of the environmental management system, that the environmental goals and objectives, and the implementation plan are being achieved, that all laws and requirements are being obeyed, and that the system is in compliance with the ISO 14001 standards.
Environmental Protection Promoting System
Environmental
policy
PlanningWe set our goals, plans and objectives for each year based on environmental impact assessment results from the previous year.
Plan
Review
Management Review The top management reviews all of the activities throughout the year, discovering things that need to be improved upon, and puts into effect activities that will enable us to maintain improvements for the next year.
Do
Implementation and Operation In order to fulfill our goals and objectives, we put our plans into action.
Act
Checking and Corrective ActionWe check the progress of our plans, compliance with applicable laws and conformity with environmental management system regulations.
Plan-Do-Check-Act
(PDCA) Cycle

Production &
Manufacturing
Division
Environmental Preservation Organization (Fiscal year 2008)
Management
Administration Division
Sales Division
Research &
Development
Division
Internal Environment
Audit Committee
Environmental Management
Representative
Environmental Promotion
Committee
EMS Office