For
future
Generations
For
a
Greener
world
For
our
Global
resources
NORITSU KOKI
ENVIRONMENTAL &
SOCIAL REPORT
2008

Company Profile

Name: Noritsu Koki Co., Ltd.

Operations began: June 1951

Established: June 1956

Capital: ¥7,025,302,000

Number of Employees (Head Office) : 904 (As of September 30, 2008)
Head Office: 579-1, Umehara, Wakayama City, Japan Phone: +81-73-454-0307 Fax: +81-73-454-0420
Overseas Business Locations
Summary of Business

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)
Major Products

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 Meetings / Compliance / Counseling and Reporting Arm / Corporate Governance System / Code of Behavior
Close-up: Environmentally-Friendly Dry Minilab Printer
Our Environmental Policy
Environmental Management
Environmental Management System / ISO14001 Acquisition / Environmental Protection Promoting System / Green Procurement Guidelines / Environmental Education / Intra-Company Network / Greenery at the Head Office

Environmental Goals and Objectives

Environmental Impact
Environmental Preservation Activities

Laws and Other Requirements / Reducing Waste and Recycling / Saving Energy and Resources, Preventing Global Warming / Preventing Water Pollution / Environment Monitoring Results / Green Purchasing / Product Life Cycle Assessment/ Management of Hazardous Substances

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 Imaging Expo / 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: Cosmos flowers in Taiyo-no Oka, Engaru Park

Contents
01
02
03
04
06
07
09
10
11
15

About This Report

Like last year, we have entitled the 2008 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 2007 (April 2007 - March 2008)
*This report covers some activities in and after April 2008.

Date Published
January 2009
Contact

Noritsu Koki Co., Ltd. Human Resources Development & General Administration Division General Affairs and Public Relations Group 579-1, Umehara, Wakayama City, 640-8550, Japan Phone: +81-73-454-0307 URL: http://www.noritsu.co.jp

Website information
URL: http://www.noritsu.co.jp/company/index.html
2004／ 3 2005／ 3 2006／ 3
2007／ 3 2008／ 3
0
20,000
40,000
60,000
80,000
100,000
2004／ 3 2005／ 3 2006／ 3
2007／ 3 2008／ 3
0
3,000
6,000
9,000
12,000
15,000
／ 3

2004／ 3 2005／ 3 2006／ 3
2007／ 3 2008
0
3,000
6,000
9,000
12,000
15,000
2004／ 3 2005／ 3
2006／ 3
2007／ 3
0
4,000
8,000
-8,000
-4,000
Minilabs 39,213
Options and spare parts

13,714
Other 9,705
Total 62,633
FY2007 Consolidated Net Sales by Product Category (millions of yen)
Total 62,633
FY2007 Consolidated Net Sales by Region (millions of yen)
Japan 8,907
North America 23,558
Europe

10,558
Asia & Oceania

11,318
Other 8,291
2004／ 3 2005／ 3 2006／ 3
2007／ 3 2008／ 3

3,000

2,000

1,000

0
Noritsu Koki Environmental & Social Report
01
Digital Minilab QSS-37 HD Series
Digital Minilab QSS-35 PLUS Series

Dry Minilab D701
Dry Minilab D502
Wide-Format Printing System MYTIS-1SP
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Head Office
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Domestic Subsidiary
●
Domestic Factories
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Domestic Branch Offices
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
●
●
●
●
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Main Overseas Subsidiaries
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Overseas Branches & Offices
●
Overseas Factories
／ 3
2008
This report and information on Environment Management and Social Responsibility can be viewed from the "About NORITSU" page of the company website.
Domestic Business Locations

Net Sales (millions of yen)
Non-consolidatedConsolidated
Operating Profits (millions of yen)
Non-consolidatedConsolidated
Ordinary Profits (millions of yen)
Non-consolidatedConsolidated
Net Income (millions of yen)
Non-consolidatedConsolidated
Number of Employees
Non-consolidatedConsolidated

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 FRANCE E.U.R.L.
NORITSU ITALIA S.r.l.
NORITSU (FAR EAST) LIMITED
NORITSU SINGAPORE PTE 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.
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NORITSU
AMERICA
CORPORATION
NORITSU SHANGHAI PHOTOFINISHING EQUIPMENT MANUFACTURING CO., LTD. Noritsu (Shanghai) Electronics Equipment Manufacturing Co., Ltd. Shanghai factory
●
Consumer Terminal CT-SL

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

03
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 separated and an Executive Officer System was introduced to strengthen corporate gover-nance and increase 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

The Board of Auditors at Noritsu Koki consists of three auditors, two of which are outside audi-tors. Their job is to build a fair and impartial system for auditing the company's business. More-over, an Internal Audit Division was created underneath the CEO to conduct internal audits whenever necessary. In an effort to improve the quality of corporate audits, the Board of Audi-tors 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 audit-ing reports.

Management Meetings

Directors, auditors, executive officers and unit managers meet, as a rule, twice a month for Management Meetings to share information and coordinate between departments. This is one opportunity for management and department heads to communicate directly with one another.
Compliance

Noritsu Koki does not think of "compliance" as merely "observing the law." It has the broader meaning 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 activi-ties 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 company 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 counsel-ing. This group maintains the privacy of anyone who reports information and it has added more staff to provide support for female employees. Requests from employees are gradually grow-ing. The Compliance Committee also has a female attorney so that women's opinions on sex-ual harassment can be shared and effective action taken.
Corporate Governance
02
Noritsu Koki Environmental & Social Report

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
Foreword
At our 53rd Annual Shareholders' Meeting and ensuing Board of Directors' Meeting, we revamped our executive management tier and launched a new management system aimed at making the Noritsu Koki brand more penetrating. 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. To achieve this, we have set for ourselves a corporate image as
“always the No. 1 choice of customers, a company that leads the
global market,”under our business belief that “the customer comes first in development and business.”

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. We have begun implementing the following actions in order to achieve our targets as soon as possible. 1. Remodeling cost structures 2. Rebuilding marketing strategies 3. Expanding new business 4. Creating a positive corporate culture Furthermore, 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 prob-lems have grown to global scale and are requiring businesses to take creative measures 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
Board of Shareholders
Appointments
& dismissals
Outside Legal Counsel
Compliance Committee
Crisis-management Committee
Internal Control Committee
Management
Proposals and advice
Supervision, approval and
instruction related to the execution
of important operations

Board of Directors
Discussion of business and other topics
Representative Director
Management Meetings
Supervision, approval and
instruction related to the
execution of important operations
Discussion and reporting related to the execution of important operations
Executive Officer
Reporting related to the
execution of operations
Instruction related to the
execution of operations
Unit / Division
Operations
Supervision of
operations

Appointments
& dismissals
Appointments
& dismissals
Auditing
Reporting of
audits and
improvements

Auditing of accounts
Coordination
Board of Auditors
Auditor
Auditing
Coordination
Auditing and instruction of operation progress
Internal Audit Division

04
Noritsu Koki Environmental & Social Report
Noritsu Koki Environmental & Social Report

05
Close-up : Environmentally-Friendly Dry Minilab Printer
The mainstream in imaging technology since the invention of the photograph in the early 19th century has been “silver halide printing,” a method that burns the image into the paper using silver halide, which turns black after reacting with light. Come the 21st century, attention switched from
“silver halide printing” to “dry printing.” Dry printing does
not use any photographic chemicals that require special handling to dispose of.
Today, dry printing is roughly divided into “inkjet systems,” which Noritsu deals with, and “dye sublimation systems.” Both have their merits, but inkjet systems are believed to be more gentle on the environment than dye sublimation systems.
Development background

We began developing a dry minilab in 2000. At that time, there was increased environmental awareness and households were starting to own their own digital cameras, personal computers and printers, so we felt the need to investigate new print technologies that meet emerging consumer demands. Wanting to develop a dry minilab that worked on new technologies, we started research into dry printing methods and basic inkjet technologies. Then, in 2002, we completed the world's first dry minilab, using technologies and know-how that had been fostered since our founding.
Untouched beauty
Everyone talks about the importance of the environment, but it is a whole other story to develop an environment-friendly product without sacrificing quality. Since the minilab was launched in 2002, Noritsu Koki has developed technologies to meet the plethora of customer needs-print lightfastness, compact size, easy operation, etc. One technology in particular that met with great approval was a 4-color dye ink with 6 gradations per dot that was newly developed in 2008. It enabled colorfully rich photographic expression beyond that achieved by predecessor dry printers.
“Dry” by Noritsu Koki
This being the so-called “century of the environment,” it is now expected that businesses show concern for the global environment. Throughout the world and obviously in the photography industry, environmentally-friendliness is demanded of products in addition to ease of use and high quality. Noritsu Koki views not burdening the environment as an important performance feature and, since 2002, has been developing and selling “more environmentally-friendly” dry minilabs that use an inkjet system.
D701

Environmentally-friendly dry printer
This printer opens a new era in dry minilabs by delivering the vividness of silver halide printers, along with excellent lightfastness and glossiness.

･ High quality, high speed printing
･ Duplex printing

･ Larger than dye sublimation
systems

･ Equipment costs higher
than dye sublimation


Industrial inkjet systems
Comparison of main features
From silver halide to dry...
The ever-changing minilab market
Senior Engineer, Imaging Solution Research Center ( Former, General Manager, Product Development Division 3, Research & Development Unit )
Hiroshi Miyawaki
●
Eliminating use of photographic chemicals

After a certain amount of use, photographic chemicals degenerate and have to be discarded. Though these chemicals are properly treated before discharge, it still counts as environmental load. On the other hand, the dry minilab does not use any chemicals, so the load placed on the environment by our products has been greatly reduced.

●
Reducing power consumption

The photographic chemicals used in silver halide printing are ineffective at room temperature. Images are formed on the print paper by raising temperature to about 37˚C. Moreover, the paper is wet after the image has been formed, therefore hot air of about 65˚C is needed to dry it. Compared to a silver halide minilab that continually consumes energy to control temperature, a dry minilab uses less power.

●
Effectively using paper resources
In the fall of 2008, duplex printing became possible with Noritsu Koki's inkjet dry minilabs. Being able to print on the back of photographs means that paper consumption can be reduced. On the other hand, silver halide printing uses a paper coated with resin, therefore photographs cannot be recycled as paper. We therefore are focusing on the new possibility of recycling photo paper and aiming at effectively using paper resources with our inkjet dry minilab.
3 considerations for the environment
3
2
1
Still evolving dry printing systems
With every upgrade, you can sense the growing expectations in the dry minilab. Still, many of the minilabs in use around the world are silver halide labs, but more customers are choosing dry minilabs when it's time to replace older equipment. We see it as our mission at Noritsu Koki, as the pioneer of the minilab, to contribute to the protection of the global environment, meet customer needs and further improve our dry minilab technology.
“Faster, higher quality and more earth-friendly”
Development and evolution of the dry minilab
･ Ink ribbon is discarded
･ Duplex printing not possible
･ Smaller than industrial
inkjet systems

･ Low initial costs
Dye sublimation systems

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 Policy
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
Environmental Management
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 among 10 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
Planning

We 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 Action

We check the progress of our plans, compliance with applicable laws and conformity with environmental management system regulations.
Plan-Do-Check-Act
(PDCA) Cycle
Other than the expected environmental protection activities that are practiced in offices and on production floors, an EMS office was created within the Quality Assurance Division to manage the lifecycle environmental impact of products in development, design, production, sales and other downstream operations. They are busy building an environmental management system.
Environmental Management Representative
Production & Manufacturing
Division
EMS Office
People who have been selected from each division and the EMS office receive ISO 14001 Internal Environmental Audit Committee training, and 10 Internal Environmental
Audit
Committee
members are selected from this group.
Environmental Preservation Organization (Fiscal year 2007)
Management
Internal Environment Audit Committee
EMS Office
Environmental Promotion Committee
Administration Division
Sales Division
Research & Development
Division
The Internal Environment
Audit Committee