casio computer co., ltd. · 2016-06-06 · casio and the market casio and the global environment...

Contact Information

Casio Computer Co., Ltd.http://world.casio.com

For inquiries on CSR in general:

CSR Operations SectionCasio Computer Co., Ltd.1-6-2 Honmachi, Shibuya-ku Tokyo 151-8543Tel.: +81-3-5334-4901 Fax: +81-3-5334-4547Email: [email protected]

For inquiries on environmental issues:

Environment CenterCasio Computer Co., Ltd.3-2-1 Sakae-cho, Hamura-shi Tokyo 205-8555Tel.: +81-42-579-7256 Fax: +81-42-579-7718Email: [email protected]

Published: December 2006

We promote green purchasing for printing services.

This report is made of paper certified by the Forest Stewardship Council (FSC) to be made of material sourced from well-managed forests, and printed with soy ink certified by the American Soybean Association.

Casio Corporate Report 2006 01

I n t r o d u c t i o n

Growing with Society through Creativityand Contribution

C o n t e n t sEditorial Policy

Casio began publishing its Environ-mental Report in 1999. In 2004, thepublication was changed to theSustainability Report with the additionof social and economic content. In2005, the content was further improvedto create the Corporate SocialResponsibility Report. In 2006, it hasbeen renamed the Corporate Report,and now includes the previously sepa-rate Corporate Profile. By also adding aWeb version to the printed publication,offering more detailed data, Casio isstriving to provide more accessibleinformation to all of its stakeholders.* ● The report has been presented in an

easy-to-understand format, so that allstakeholders,* including theconsumers who love Casio products,can easily read the material.

● In this report, the name “CasioComputer Co., Ltd.,” refers only to theparent company, while “Casio” isused to indicate the entire Casiogroup of companies.

● Please see page 68 of the Web ver-sion for information on the scope ofthe printed report.

● Beginning with this report, Casio haschanged the way it designates thefiscal year to match the other reportsit regularly publishes:In this report: FY2006 means fromApril 1, 2005 to March 31, 2006Previous reports: FY2006 meant fromApril 1, 2006 to March 31, 2007

● Graphs and diagrams have beendesigned so that they are easy foreveryone to view, including those withdifferent visual and color perception.

● Contact information and a Websiteaddress has been provided on theback cover to help promote interac-tive communication with stakeholders.

*StakeholdersStakeholders of Casio include cus-tomers, suppliers, investors,shareholders, employees, local resi-dents, NGOs, NPOs, the mass media,financial institutions, researchers, andgovernment agencies.

A Web version of this reportincluding specialized and detailedinformation, as well as third-partyopinions, has also been published.

Forecasts and Forward-looking Statements

The future forecasts and forward-looking statements published inthis report for Casio Computer Co.,Ltd., and Casio are based on infor-mation available at the time ofpublication. These forecasts andstatements include potential riskand uncertainty, and the readershould be aware that the actualresults of business activities maydiffer from these predictions.

Environmental Report Website

http://world.casio.com/env/

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

Corporate Profile

History of Casio..........................................................................................................04Business Overview ....................................................................................................06Casio’s Unique Strengths ..........................................................................................12

CSR Highlights

Research & Development—Next Generation Fuel Cell .............................................15Production—Yamagata Casio Receives 2005 Nikkei “Monozukuri” Grand Prix.......16Social Contribution—Factory Tours for 10,000 People..............................................18Environment—Initiatives to Help Prevent Global Warming: Working to Achieve Fiscal 2011 Targets ...................................................................................................20European Regulation Initiatives .................................................................................21

CSR Management

Corporate Creed and Charter of Creativity................................................................22Corporate Governance ..............................................................................................23Compliance and Risk Management ..........................................................................24

Casio and the Market

Responsibilities to Customers—Customer Satisfaction and Quality Assurance ............................................................................................26Responsibilities to Suppliers—Building Strong Partnerships...........................28Responsibilities to Shareholders and Investors—Optimum Shareholder Return and Information Disclosure ..............................................29Web version

Casio and the Global Environment

Environmental Management Vision ..................................................................30Casio Environment Charter and Casio Fundamental Environmental Policies......................................................................................31Environmental Action Plan, “Clean & Green 21” Initiative................................32From Eco-product Design to CSR Design........................................................34LCA Evaluation Report .....................................................................................35Material Balance of Business Activities............................................................36Communication and Disclosure about the Environment ..................................37Environmental Accounting................................................................................38Web version

Casio and Employees

Creating Employment Opportunities ................................................................40Appointing and Effectively Deploying Qualified Workers.................................41Building a Supportive Work Environment .........................................................42Efforts on Occupational Safety and Health ......................................................43

Casio and Society

Social Contribution InitiativesPhilosophy, Local Communities,Civil Society, International Community................................................44

Company Data

Company Data..................................................................................................48Web version

Issued December 2006● Previous publication

December 2005: Corporate SocialResponsibility Report 2005

“Let’s build the ideal calculator with our very own hands.” This was the mantra adopted by the four Kashio brothers asthey developed a calculator that used only electricalcircuits—back when gear-operated mechanical calculatorswere the only available technology. By 1957, the fourbrothers had already succeeded, introducing the world’sfirst small, fully electric calculator (the “14-A”), andfounding Casio Computer Co., Ltd.

Ever since, Casio has been leveraging its digitaltechnologies to advance into new business fields—timepieces, musical instruments, and LCDmonitors, to name a few. Casio’s dynamismcomes from its profound ability to developinnovative products that meet latent butuniversal needs. Again and again, Casio hasdefied conventional wisdom to give peoplethe things they really need but haven’t even thought of yet. The company iscontributing to societies around the worldby delivering convenience andentertainment, creating new markets,and facilitating cultural development.

True to its corporate creed,“Creativity and Contribution,”Casio’s greatest responsibility isimproving people’s lives bydeveloping groundbreakingnew products. Along with thiscore commitment, Casio isproud to say that all of itsemployees have, as partof their job descriptions,determined their ownpersonal commitmentto social contribution.The goal of thecompany and all ofits people is togrow by helpingsociety to grow.

Responsibilities to Customers—Stable Supply of ProductsResponsibilities to Customers—Research and Development of

Next Generation Products

Environmental Management SystemGreen Procurement and Green PurchasingMaterial Balance by BusinessInitiatives to Prevent Global WarmingPrevention of Air and Water Pollution and Reduction of Industrial Water UsageControl of Chemical Substances and Reducing Their UseReduction of Waste Generation and Landfill DisposalEnvironmentally Friendly DistributionEnvironmentally Friendly Packaging Materials

Recognition from Society/Scope of the ReportIndependent OpinionGRI Content Index

Casio Corporate Report 200602 Casio Corporate Report 2006 03

“Casio has been pursuing ‘Creativity andContribution’ since the beginning. Theseunchanging values define our commitment tofulfilling our corporate social responsibility.”

Casio’s corporate creed has been “Creativity andContribution” since we established Casio ComputerCo., Ltd., after inventing a small, fully electriccalculator in an era when mechanical calculatorswere the norm. Ever since, our commitment hasbeen to contribute to society by offering the kind oforiginal, useful products that only Casio can.

We have accomplished this over the years byidentifying latent needs that people have yet todiscover, and then meeting those needs withinnovative products and services, which soonbecome an integral part of people’s daily lives. In doing so, we always strive to think bigger than themere provision of new technology, products, orservices—our real goal is to inspire new lifestylesand contribute to culture.

Times may change, but our commitment to“Creativity and Contribution” is unwavering. Thiscreed defines the company’s very reason for being.Looking to the future, Casio has its sights set onbringing joy and wonder to people everywhere andcontinuing to make a real difference in the world. Toearn its place in a sustainable global society, Casiomust keep demonstrating the meaning of “Creativityand Contribution.”

In Japan, 2004 has been called the dawn of the “ageof CSR,” as many companies introduced a variety ofCSR initiatives. Many also came out with their owndefinitions of CSR, but these definitions are by nomeans universal. The scope of CSR and the rolecompanies expect themselves to play differs witheach organization’s perspective.

In 2004, Casio inaugurated its CSR OperationsSection, and set up a CSR Committee comprised ofthe company directors and auditors. These stepshave provided a forum for discussion of a broadrange of CSR issues. Also in that year, we added asection on social contributions to our EnvironmentalReport (published since 1999) to create theexpanded Sustainability Report.

Since 2004, we have promoted a wide range ofCSR initiatives, including strengthening ourcompliance system, obtaining Privacy Markcertification for personal data protection, achievingzero emission standards in Casio’s main operationssites in Japan, taking steps to comply withenvironmental regulations, promoting CSRprocurement, and issuing the Corporate SocialResponsibility Report in 2005.

Despite all of these achievements, Casio—like allother companies today—is subject to ever strongerdemands and higher expectations from society. Inorder to secure fair and transparent managementand continue to improve corporate value, we recog-nize the need to once more return to the foundingprinciples of “Creativity and Contribution.” In doingso, we intend to find and exploit synergies betweenour everyday business activities and CSR initiatives.

We shall make CSR a core driver ofmanagement by faithfully executing on the following commitments.

● To continue realizing the unchanging, foundational principles of “Creativity andContribution,” Casio will adhere to the Charter of Creativity for Casio and the Casio Common Commitment.

Kazuo KashioPresident & CEO

Message from the President on Casio’s Social Responsibility

Our Corporate Creed: “Creativity and Contribution”

● Casio will observe all applicable laws andregulations, and will strive to improve corporatevalue by reinforcing its system of internal controlsand implementing effective compliance and riskmanagement throughout its entire global supply chain.

● Through its primary business activities, Casio willcontinue to create new value to help resolvevarious issues facing the global community.

● Casio will consistently implement environmentalinnovations that integrate eco-efficiency as well asresource conservation and energy saving featuresinto all processes related to creating products and services.

● Casio will disclose financial and other informationin a simple, accessible format to all stakeholders, and increase managementtransparency by creating more opportunities forinteractive communication.

In past years, Casio has published the CorporateProfile and Corporate Social Responsibility Reportseparately. This year, however, we have combinedthe two into an integrated Corporate Report—theone you are reading now—in order to present a fullerpicture of Casio to readers of both publications. Ihope this Corporate Report will serve as animportant means of communication between Casioand all of its stakeholders. For a variety of detailsthat could not be included in this publication due tospace limitations, I invite you to visit the Casio Website (http://world.casio.com).

I am committed to managing Casio for sociallyresponsible business success, and I wouldappreciate hearing your frank opinions of our efforts.

CSR Initiatives

Pursuing CSR-driven Management

History of Casio

Casio Corporate Report 2006 05Casio Corporate Report 200604

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

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1957 Commercial production of the world'sfirst small, fully electric calculator starts.

Casio Computer Co., Ltd. founded.

1957

Casio Mini

Casio Tone

TR-2000

Casiotron

QV-10

EXILIM

GPS cellular phone withbuilt-in camera for au

Casio Eight Club

Certificate of commendation

Company-wide QualityImprovement Campaign

Casio Science PromotionFoundation

The first CASIO WORLD OPEN

G-SHOCK

Casio releases 001, its first transistor-based electronic desktop calculator.

Qualification program based on meritocracy adopted. Education andtraining system established.

Zero defect campaign launched to promote “Casio known for quality.”

Casio Labor Union formed, with the basiccredo of “Trust Each Other, UnderstandEach Other.”

Casio receives Prime Minister'sCommendation for its contributions to the progress of calculators.

Casio Eight Club established to promote amicable relationship with office supply wholesalers throughout Japan.

First CASIO WORLD OPEN GOLFTOURNAMENT held.

Dedicated office, the Consumer Section,established to receive inquiries fromgeneral consumers.

Casio Science Promotion Foundationestablished.

Company-wide Quality ImprovementCampaign launched.

Export of electronic desktop calculators to overseas markets begins.

Casio stock listed on the second section of theTokyo Stock Exchange.

Casio Mini, the world’s first personal electroniccalculator, released.

Casio stock transferred to the first section of theTokyo Stock Exchange.

Casio enters timepiece market with the releaseof Casiotron, a digital wristwatch.

Electronic cash register released.

Production of liquid crystal panels for watches begins.

∑-S8700 series of Japanese-language office computers released.

Casio Tone electronic keyboards released.

TR-2000, Casio’s first electronic dictionary, released.

SL-801 solar-powered electronic calculator released.

First G-SHOCK, a shock-resistant wristwatch, released.

TV-10 pocket-sized LCD color TV released.

First LCD shutter page printer released.

PELA super-thin digital watch released.

ADPS R1, an office information processing device that requires no userprogram, released.

Name Land (KL-1000) label printer released.

BP-100, a wristwatch-type blood pressuremonitor, released.

QV-10, the first digital camera in the world withan LCD monitor, released.

DQD-10 radio-controlled clock released.

World’s first watch equipped with GPS function released.C303CA, a shock- and water-resistant, cdma One-compatible

cellular phone, released.

VeriPat TM, a fingerprint verification algorithm, developed.

WVA-300D/300K solar-powered radio-controlled watch released.

R&D success achieved on small, high-performance fuel cells for mobile devices.

Casio delivers first camera-equipped cellularphone with GPS to au of KDDI.

EXILIM, the world’s thinnest, wearable card-sized digital camera, released.

Fingerprint verification device for mobile devicesdeveloped.

Casio enters the data projector market.

Casio Hitachi Mobile Communications Co., Ltd., a joint venture withHitachi, Ltd., for developing cellular phones, established.

Casio collaborates with Renesas Technology Corp. on semiconductordevice packaging technology.

Casio forms alliance in LCDs with Taiwan’s HannStar Display Corp.

Consumer Section renamed to Customer Service Office, and set up in eachregion of Japan.

Casio Environmental Conservation Committee established.

Casio Environmental Charter and Casio Voluntary Plan for the Environmentadopted.Use of specified CFCs and 1, 1, 1-trichloroethane discontinued.

Casio Group’s environmental activities published on Casio Website.Yamagata Casio acquires ISO14001 certification.

Casio Korea acquires ISO14001 certification.Casio Code of Conduct established.

“Clean & Green 21” Initiative, a Casio Group-wide environmental action plan, introduced.Green Procurement Guidelines established.Program launched to recover tape cartridges from label printer productssold to corporate customers.Corporate officer system adopted.Environmental Report 1999 published.Casio participates in Eco-products 1999 exhibition.

ISO14001 certification now acquired at all manufacturing sites in Japan andfour sites of Casio Computer Co., Ltd.

Casio Green Products 30 (C.G.P.30) campaign launched.Recycling of secondary rechargeable batteries initiated.

Three Casio sites (the head office and Ichinomiya factory of Kofu Casio Co.,Ltd., and the Yamanashi facility of Casio Micronics Co., Ltd.), achieve zeroemissions (less than 1% waste disposed in landfills).Program launched to recover and recycle end-of-life personal computersand other information processing equipment sold to corporate customers.Kochi Casio Co., Ltd., awarded the Natural Resources and Energy AgencyDirector-General’s Commendation for Excellence in Energy Management at a Factory (in the electricity sector).

Charter of Creativity for Casio established.Casio Code of Conduct revised.Casio Common Commitment established.Recovery of end-of-life home personal computers initiated.

CSR Operations Section and CSR Committee established.Sustainability Report 2004 issued, replacing the Environmental Report.

Corporate Sustainability Report 2005 issued, replacing the SustainabilityReport.Casio Computer Co., Ltd., and Casio Lease Corporation obtain Privacy Markcertification.Improvements completed on all products destined for Europe in compliancewith the RoHS Directive.

Corporate Report 2006 issued, replacing both the Corporate SustainabilityReport and Corporate Profile.

Electronic Components andOthers Segment

Business Overview

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Business Fields

Electronics Segment

Casio’s two main businesses are electronics and electroniccomponents. The company creates products that are compact,lightweight, slim, and energy efficient for the global market.

Sales by category (FY 2006)

Consumer categoryElectronic calculators, electronic dictio-naries, label printers, digital cameras,electronic musical instruments

Mobile Network Solutions(MNS) categoryCellular phones, handy terminals

System Equipment categoryElectronic cash registers (including POSsystem), office computers, page printers,data projectors

Timepieces categoryDigital watches, analog watches, clocks

Others categoryMain products: Factory automation,

molds, etc.

Electronic ComponentscategoryLCDs, BUMP processing consignments,TCP assembly and test consignments,carrier tape

The Casio Group is comprised of Casio ComputerCo., Ltd., 56 consolidated subsidiaries, and 4equity-method affiliates (as of March 2006). Casioconducts its business in two main segments:Electronics, and Electronic Components andOthers. The Electronics segment is divided into fourcategories: Consumer, Timepieces, Mobile NetworkSolutions (MNS), and System Equipment. TheElectronic Components and Others segment isdivided into two categories: Electronic Components,and Others. In all of these categories, Casio’sbusiness activities range from development andproduction to sales and service.

Casio Corporate Report 2006

This stylish digital camera delivers 10.1-megapixels in a slim,compact body. With a large 2.8-inch, super-bright, wide-screenLCD, Casio has revolutionized the use of the camera monitor byadding powerful new image display features and an easy-to-readinformation layout.

EX-Z1000 digital camera

EX-word XD-ST4800electronic dictionary

This affordable digital pianodelivers true piano sound in acompact, lightweight, andstylish design. From realpianists to everyday amateurs,anyone can take advantage ofthe PX-110’s superior soundquality and natural keyboardtouch to practice freely in theprivacy of their own location.

Privia PX-110 electronic musicalinstrument

It would have taken 26,221 tons of paper to print paper versions of all the dictionaries contained in theelectronic dictionaries sold by Casio from April 2005 to March 2006. At an average yield of 50 kilogramsof paper per tree, this would be equal to 520,000 trees that did not have to be used to make paper dictionaries.

Digital Dictionaries Save Forest Resources

Digital cameras

Electronic dictionaries

Handy terminal

Solar-powered radio-controlled watches

Cellular phones

Electronic cashregister

Page printer

COF

TFT LCD module

Consumer 36.8%

Timepieces12.3%

Mobile Network Solutions24.1%

System Equipment8.4%

Electronic Components12.7%

Others 5.7%

Electronics81.6%

Electronic Components

and Others 18.4%

This electronic dictionary forJapanese high school studentsboasts voice functionality and has50 content categories that areuseful for various subject areas. In11 of these categories, studentscan listen to accurate pronunciationby native speakers of English.

These are the industry’s first hyaku masukeisan (“one hundred calculations drill”)training calculators, developed with theassistance of Professor Hideo Kageyamaof Ritsumeikan University. By repeatingeach of the basic arithmetic functionsone hundred times, children are able tostrengthen their basic calculation ability,and develop active learning habits. Withthe same device, adults are able to keeptheir minds sharp by exercising theirgray matter with arithmetic drills.

EN-100/EN-200electronic calculators

Casio offers a wide array ofproducts to make everydaylife more convenient andfun. They include everythingfrom calculators for a myriadof commercial andeducational applications, toelectronic musicalinstruments that evenbeginners can easily master.Casio has also introducedmany new industry-leadingdigital cameras andelectronic dictionaries.

EnvironmentalonmentalHighlight

EnvironmentalHighlight

Consumer Category

Greater Convenience,More Enjoyment

Chip mounter

Solar-powered, radio-controlled watches continue to work without resetting as longas a light source is available. Casio’s Tough Solar power system combines a high-capacity rechargeable battery and a small solar panel that generates electricity,even from fluorescent lights. The watches also take advantage of advancedenergy-saving large-scale integration (LSI) chips, and a power-saving function thatturns off the display when left for a long time in the dark. This means that they canoperate for a long time in places without light. Casio has achieved the ultimate in amaintenance-free watch that needs only natural energy to run.

Ultimate Solar-powered Timepieces

The W42CA cellular phone not only complies with the RoHS Directive, the European regulation onenvironmentally harmful substances, but also offers high durability for a long product life. Based on a uniquedesign concept, it delivers great shock resistance and an IPX7* grade waterproof designation, enablingusers to enjoy the latest technology in a tough, long-lasting body.* IPX7 waterproof designation (formerly JIS-7 grade water resistant construction): The handset will continue to operate as a phone and resist

water intrusion when submerged at the bottom of a one-meter-deep tank of fresh, still water at a normal temperature for as long as 30 minutes.

Complying with the RoHS Directive




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Anytime, Anywhere

The aim of Casio’s Mobile NetworkSolutions strategy is to provide anoptimal usage environment forbusiness and personal applications,regardless of time or place. Casio iscontributing to the development of atruly mobile society with solutionsfocusing on compact cellularphones with advanced functions,and mobile terminals for a widerange of business needs.

While offering superior water and shockresistance, this tough cellular phone iscompatible with CDMA2000 1X EV-DOtechnology, enabling access to the latestcommunication services. Featuring a 2.1-megapixel camera and a 50MB datafolder, it can also be used with externalmemory. A mobile electronic dictionary isalso built into the phone.

The slim W41CA cellular phone is compatible with CDMA2000 1XEV-DO (high-speed data communication) technology and has abuilt-in camera with 2.1 megapixels and a 2.6-inch wide LCD. It isalso compatible with Osaifu Keitai® (“Mobile Wallet”) and MobileSuica (electronic train pass) services, and can view Websites for PCs.

This mobile communicationterminal combines the featuresof a handy terminal with theportability of a PDA. Byoperating it in combinationwith Excellent Store® shopsupport solutions, the user canperform everything from datatransmission to routine retailtasks with one device. The DT-5200 leverages information toincrease total in-storeproductivity and contributes tothe standardization ofbusiness management.

G'zOne W42CA

W41CA

DT-5200

Casio consistently leads the timepiecemarket in innovation. Casio products havecontinued to evolve by incorporating newtechnology into their construction,performance, features, design andmaterials. Solar power is the driving forcebehind Casio’s timepieces that receivestandard radio waves containing time data,resulting in watches that always display thecorrect time and will keep running as longas there will be light. Solar-powered radio-controlled timepieces represent a majorleap forward in the perfection of the watch.Never satisfied, Casio is determined todrive the evolution of timepieces evenfurther forward with original technology andunique ideas.

The G-SHOCK watch with the high-capacityTough Solar power system receives accurate timedata from any of five transmitters worldwide (two inJapan, and one each in the US, UK, andGermany). By combining a metal wristband with acompact, slim case made from metal materials, asimple and refined, rounded form has beenrealized. Perfect for a casual look or even a suitand tie, this design has wearers arriving on timeand looking smart.

With a full metal case, the OCEANUSsolar-powered, radio-controlled watchoffers both high functionality and a sportydesign that originated in Europe. Alongwith compatibility for standard radio wavesfrom the five transmitters worldwide, a slimmodule of the OCEANUS features multiplehands for chronograph, tide graph, andmany other measurements.

The LILANA is a solar-powered, radio-controlled watchfor women with a full metal case and an elegant andsimple look. In addition to a beautiful face with multiplehands, the watch features a leather wristband with anelegant arabesque design on the inside, as well as a15-facet cut bezel that shines differently depending onthe direction of the light. This sophisticated wristwatchincorporates all the fine details preferred by women.

G-SHOCK GW-810D

LILANA LNA-100LJOCEANUS OCW-M700TDJ

Solar Power and RadioControl—Always Evolving

Timepieces Mobile Network Solutions



Casio page printers realize low operating costs through efficient recovery and recycling, thanks to theadoption of the “Return Toner Cartridge” program, a complete recovery system for reusing toner cartridges.The printers comply with various environmental standards such as the RoHS Directive on environmentallyharmful substances, Eco Mark, the International Energy Star Program, and the “designated procurementgoods, etc.” stipulated under the Japanese Law on Promoting Green Purchasing.

Reducing Operating Costs through Efficient Recycling Systems




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Cutting-edge products are bornof the latest advances inelectronic components. Takefor instance the LCD panel, anindispensable interfacebetween man and machine,where Casio specializes insmall- and medium-sized LCDsfor mobile devices, includingTN, STN, and TFT panels. Inanother advanced field, CasioMicronics conducts bumpprocessing, as well as COF andother packaging operations.Casio's electronic componentsare hard at work in applicationsacross the industrial spectrum.

Hyper Amorphous Silicon TFT (HAST) is Casio's original superfine LCDtechnology. Able to produce vivid photographic images using amorphoussilicon, HAST is based on COG technology and the development of lowresistance circuits and a high-aperture ratio for TFT arrays, multipin-slimLSI and other technologies. The clarity of the images it produces has madeCasio's HAST technology a favorite for application in cellular phones,digital cameras and a wide variety of other mobile devices.

BUMP

TFT LCD Modules

Casio provides original solutions for allkinds of businesses, integratinghardware and software. Casio makespage printers for all manner of colordocuments, systems for enhancing theefficiency of administrative functions atfinancial institutions, cash registers for awide variety of retail formats, and theADPS Personnel System for supportingcompany human resource strategies.Casio has earned the praise and trust ofbusiness professionals.

The TE-300 is a cash register that fits well with the interior design of astore by enabling the cash drawer to be placed in a separate locationfrom the slim and compact letter-sized main unit. It also features an anti-microbial treated keypad for use in medical and restaurant settings.

This compact printer offers high-resolution printing usingsuper-fine toner plus high-speed printing at 24 colorpages or 30 monochrome pages in a minute. It providesprint security functions such as individual authenticatedprinting. At the same time, a complete recovery systemfor toner cartridges reduces environmental impact andprinting costs.

This comprehensive solution supports thestreamlining of administrative work in humanresources departments. The system has beendemonstrated to realize a task application rateof 95%, thanks to an expanded list of ready-to-use applications to meet the diverse needs ofenterprise users. In addition to basic humanresources and payroll tasks, the system utilizesa newly added HR-Library programmed with13 types of personnel development systems,such as systems for internal transfer andannouncement of open positions.

TE-300

ADPS Strategic IntegratedPersonnel System 7

Page Printer N3500

Reliability DeliversEfficiency

COF refers to a film on which LSI chips for LCDpanels are mounted. The film is thinner andmore flexible than a conventional board,making it possible to design larger LCDpanels. Because the circuits are fixed in thebase film, COF is ideal for detailed processing.As the trend towards ultra-fine pitch LSI grows,so too does the demand for COF technology.

COF

Creatingthe Cutting Edge

WLP refers to the creation of chip-sizedpackages right on a silicon waferthrough copper redistribution formation,electrode post formation and resinsealing. WLP is cost effective, and is themost advanced LSI miniaturizationtechnology, making it possible toproduce ever-smaller devices withproducts such as cellular phones anddigital cameras.

WLP (Wafer Level Package)

Electronic Components and Others

Casio used to use a common cleaning agent called nitrogen trifluoride (NF3) in its manufacturing process for TFTLCDs. Now, however, Casio has made a complete switchover to carbonyl difluoride (COF2), becoming the firstcompany in the industry to do so. This change has dramatically reduced the global warming impact of the processto 0.04% of the previous level. Casio has also completely eliminated environmentally harmful substances fromproducts as required by the RoHS Directive, now using, for instance, lead-free solder for BUMP.

Manufacturing Process Achieves Broad Reduction of Global Warming Impact



BUMP is a technology that formsmicroelectrodes for LSI chips, whichare essential for high-densitypackaging. Using gold or solder,protruding electrodes are formed on anLSI wafer terminal. BUMP technology isessential for circuits in cellular phonesand other advanced mobile devices.

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Casio’s Concept Development and Core Technologies Give the World Innovative Products

Casio’s Originality and Technology Bring Growth to Both Society and the Company Casio contributes to society by developing original products that never existedbefore, yet meet universal needs. This enables Casio to grow side-by-side with allof its stakeholders.

The driving force behind product planning at Casio is the company’sunwavering practice of initiating product development from scratch,never just copying the ideas of others. Casio recognizes theunlimited potential to develop products that have yet to be inventedbut are needed by everyone. By identifying this latent demands andmeeting it with bold, new products, Casio not only helps to createnew markets and cultural phenomena, but also fosters thedevelopment of related industries.

The accumulation of technologies through daily R&D enables Casioto realize outstanding original ideas. Casio makes the most of theexpertise in digital circuits it has developed since the early years tocarry out its own LSI design. As a result, the company has invented

very small circuits with high performance and low powerconsumption. Casio utilizes these digital circuits in the EXILIMengine, an image processing module at the heart of its digitalcameras. In another field, Casio began producing LCDs in 1978, andhas become a master in the development of small and medium-sized panels. In addition to meeting the LCD needs of its ownproducts, Casio also provides LCDs as product components to othercompanies. Casio’s highly original product planning extends to manycutting-edge fields, including chip on film (COF), chip on glass(COG), and other high-density mounting technologies, as well as thewater and shock resistance technologies that go into G-SHOCKwatches and other products.

Casio has positioned businesses that have maintained top market shareand yield steady profits as Stable Businesses. It has positionedbusinesses that are expected to experience significant global marketgrowth in the future, while also seeing intensifying competition as alarge number of companies enter the market, as Expansive Businesses.Casio is following a successful strategy of securing stable profits fromthe Stable Businesses while increasing both sales and operating income

in Expansive Businesses. Going forward, this approach to managementcan secure both sustainable growth and profitability.

Casio is working to reduce the cost-sales ratio for productdevelopment across the entire group. Through efforts beginning in thedesign stage, the number of parts required to produce a product is beingreduced. Common product platforms have another benefit, too:accelerated product development.

Business Strategy: Generate Both Profitability and Future Potential

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

The EXILIM engine, ahigh-performance imageprocessing module

Small and medium-size high-resolutionTFT LCDs

Technology for radio-controlled watches

Chip on film technologies (COF)

Water and shock resistancetechnologies

Development throughSustainable GrowthSince net sales will continue to grow,driven mostly by the ExpansiveBusinesses, Casio plans to reach¥630 billion in net sales in fiscal 2007.

Sharp Focus on OperatingIncome MarginFor Casio, operating income marginis a vital management indicator.Casio has set an operating incomemargin target of 8.1% in fiscal 2007,and is working to achieve 10%.

Contributing to Society byUsing Capital EffectivelyCasio is contributing to the developmentof new technologies and markets byinvesting the capital entrusted to it byshareholders in new business areas withfuture growth potential. By returning theresulting profits to shareholders, Casiois also helping to create a more affluent society.

Performance Target: Fiscal 2007¥630 billion

Performance Target: Fiscal 20078.1%

Cellular phones

TFT LCDs

Electronic dictionaries Timepieces

Radio-controlled timepieces

Electronic musical instruments, systemequipment, etc.

Expansive Businesses

Operating income margin: 5.7%

Sales: ¥318.2 billion (+6.7% year-on-year)

Stable Businesses

Operating income margin: 11.8%

Sales: ¥262.1 billion(+0.5% year-on-year)

Top market sharein Japan (over 50%).*

35 million units deliveredworldwide.

2.4 million units deliveredworldwide.Top global market share.

4.6 million cameras deliveredworldwide.

30% of the worldwidedigital camera market.

Digitalcameras

Casio’s W41CA modelenjoyed the highestnumber sold of any phoneacross all of Japan’swireless providers for 13consecutive weeks.*

Fiscal 2006 figures (April 2005 - March 2006)

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

(Source: Casio survey)

(Source: Casio survey)(February 6, 2006 to May 7, 2006)

Casio has combined its micro reformermodule and its newly developedfuelcell stack to create a compact,high-power fuel cell for mobile devices.Casio’s fuel cell (including the metha-nol cartridge) (photo 2, right) canpower a notebook PC for about fourtimes longer than a conventionallithium-ion battery of the same volume.

Casio is nowworking on thenecessary peripheralparts and circuits,and plans to startdelivering samplesfor performanceevaluation by fiscal2008. Casio is well onits way to creating yetanother successfulnew business.

Casio’s fuelcell stack, which createselectricity from hydrogen (photo 1, left),has a laminated structure of twentypower-generatingcells consisting ofseparators andmembrane elec-trode assemblies(MEA).

The high-density component

Methanol cartridge

Micro reformer

Generator cell

stack

Fuel Hydrogen

Oxygen from air

Electricity

H2O and CO2 (emissions)

Figure 1: Basic Mechanism

Photo 1Left: Fuelcell stackRight: Micro reformer


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Masaharu ShioyaCore Technologies R&D DivisionCasio Computer Co., Ltd.

Key Person“The Solution Was Right in Frontof Us”—Meeting LatentUniversal Needs

Batteries are a wonderful technology with a history of over 100years, but they do have shortcomings. Many people find it annoyingto separate spent household batteries from the rest of the trash, asis required in many developed countries. It seems we have gottenused to this, however, so we keep using conventional batteries inour mobile electronic devices.

After giving this issue some thought in 1998, I decided to lookinto up-and-coming battery technologies. Worldwide concern overthe environment was reaching new heights at the time, and it wasclear to me that the time had come to question the commonassumptions about the manufacture and sales of mobile electronicdevices. I searched for ways to resolve the problem, going back tothe basic principles of physics and chemistry, and reconsidering allof them.

The technology that I finally decided to pursue was fuel cells.Tiny, easily disposable PET containers (photo 2, right) are filled withmethanol or another fuel, and the fuel is used to generate electricityto run a mobile electronic device. The empty plastic containers canthen be recycled along with other plastic materials.

A necessity that people everywhere take for granted becomes auniversal need. Casio creates products that meet these needs andmake a real contribution to society. We will continue to developtechnologies and deliver practical applications that help peopleachieve the goal of living in harmony with the environment.

Creating Energy from Natural Environmentally Friendly Fuels

Research & Development Next Generation Fuel Cell

Casio is committed to frankly reflecting on itself as a publicentity, and is constantly re-envisioning its own futurecontribution to society.

Casio values persistent questioning: “What is this for? Whois it for? Why are we doing this? What needs improvement?And to what degree?”

The questioning doesn’t stop there, however. Casio goes onto ask: How original is this approach? Does the project havea clear focus on sustainability? Has it really given customershappiness and delight? Have we provided value that inspiresnew trends in the culture?

Casio people ask themselves questions like these every day.The following pages provide an overview of Casio’s CSRinitiatives. We invite you to explore this unique Casioprocess and take note of its outstanding results.

■ Creating Energy from Natural Environmentally Friendly Fuels . . . . . . . . . . . . . . . . . . . . . . . P15

■ Applying the Mechanisms of Human Intelligence to Manufacturing Technologies . . . . . . . P16, 17

■ Providing a Place for Young People to Gain Resiliency for a Meaningful Life . . . . . . . . . . . P18, 19

■ Reducing Casio’s Greenhouse Gas Emissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P20

■ Complying with European Environmental Laws . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P21

*W/r: A unit for measuring electrical output (watts)per one liter of volume, used as an index forminiaturization.

Photo 2Left: Conventional

batteryRight: Methanol cartridge

(PET bottle)


CSR HighlightsCSR HighlightsCSR HighlightsCasio is striving to realize a truly mobilesociety by developing micro fuel cellsthat can produce electrical energy from methanol.

Global research in this field ishighly competitive, and variousmethods have been proposed. Casiohas developed and recommended theReformed Methanol Fuel Cell System, atechnology that combines the highpower output and environmentalfriendliness required for the mobiledevices of the future.

The basic mechanism of thissophisticated technology involvesextracting hydrogen from methanol, atype of alcohol, and then converting itinto electricity. (Figure 1)

The mechanism behind thistechnology has been known for manyyears, but before Casio, most scientistshave never thought it to be viable.

The most difficult phase of thisdevelopment project was inventing thereformer (photo 1, right), which extractshydrogen from methanol. Casio appliedits expertise in semiconductorprocessing—a long-time corecompetency—and combined it with thelatest nano catalyst and chemicalreaction technologies to develop asuccessful micro reformer module.

Casio’s latest module, announcedto the public in spring 2006, integratesthree chemical reactors that producehydrogen and render emissionsharmless and a heater/temperaturesensor on a single chip, whichachieves startup in just six seconds.The module also boasts a thermallyinsulated construction that keeps theouter surface of the device at only40°C, despite internal heat of up to280°C. The module’s specifications are fully compatible with mobile device requirements.

mounting is based on Casio’s corecompetencies in water-resistance anddurability. The company has also inte-grated technologies that optimize gasflow channels for the characteristics ofthe hydrogen produced by the microreformer, and that improve MEA resis-tance to carbon monoxide. The result is19.4 watts of rated output in a cellstack with a volume of only 22 milliliters(65H x 18W x 19Dmm). The ratedpower output per unit volume (powerdensity per unit volume) has reached882W/r,* the highest in the worldamong cells for use in mobile devices.

Original Casio Technology—Reformed Methanol Fuel Cell System

Development of the Micro Reformer Module

Development of the Fuelcell Stack

Practical Applications for Micro High-Output Fuel Cells

Yamagata Casio Co., Ltd., manufac-tures cellular phones, wristwatchessuch as the G-SHOCK series, anddigital cameras, as well as metal moldsand molded plastic components for theproducts. It also develops and sellschip mounters for electroniccomponent mounting equipment.

The Mold Making & MoldingDivision, which makes metal molds andproduces molded plastic componentsat Yamagata Casio, received Japan’s2005 Nikkei “Monozukuri” Grand Prixfor a Digital Network System installedat its plastic molding and precise metalmolds factory.

The reasons Yamagata Casio won theaward are described below.

Cellular phone and digital cameraproducts are subject to rapidreplacement by new models. In order tomeet the short and intensive productionperiods for these products and tointegrate the process from metal moldcreation to part molding, YamagataCasio has incorporated IT into the entireproduction process. As a result, thelead time for metal mold production hasbeen greatly reduced. This innovationwas recognized for advancingmonozukuri (“true craftsmanship”) inJapanese production technologies. ● All 500 PCs and devices such as

CAD/CAM systems and machinetools are connected to a network,and each person has a PC.

● Computer intensively managesongoing conditions for each metalmold along with drawings, and all

personnel share the productionschedule through PCs. No paperdrawings are used anywhere in themold factory.

● A mold diagnostic system wasintroduced in the molding process toprevent fatal flaws in the metalmolds. This system measuresultrasound emitted by the moldduring each molding operation,assessing the condition of the moldusing a point system. If the result isbelow 40 points, the moldingmachine is shut down and the moldis repaired. This enables the impactof a flawed mold to be minimized in aproduction period that is short and intensive.

Thanks to this Digital NetworkSystem for a plastic molding andprecise metal molds factory, Casio’scellular phones and wristwatches movefrom development, to production, tomarket in a very short period of time.

Japanese monozukuri manufactur-ing technologies are facing stiffcompetition from overseas today.Yamagata Casio is leading the way forother Japanese manufacturers with thissystem. This was another factor in thejudges’ decision to give the award toYamagata Casio for implementing this system.

Here is an explanation of how thesystem actually works.

Metal mold design and datapreparationAfter receiving 3D digital data for acellular phone or a timepiece fromCasio Product Design Department, thedata is used to design a metal mold fora plastic housing. Then the completedmetal mold design data is used tocreate a computer simulation of actualresin flow inside the mold at the time oftrial production with an injectionmolding machine. This way, anyproblems can be discovered inadvance and resolved.

Metal mold productionUsing the completed 3D design data,the mold manufacturing processbegins using equipment such as amachining center and an electricaldischarge machine. The 3D digital datais sent from CAD/CAM design tools toa machine tool connected via thenetwork, and the tool automaticallystarts processing a mold; all theoperator has to do is to confirm theoperation using a computer. Throughthis process, a mold is completed withminimal errors or problems.

Also, tasks previously performedonly by experts such as shaving andpolishing in units of microns and otherminute adjustments are all donethrough the digital network. There arecomputer screens in front of all theoperators in charge of shaving andpolishing, which display the mold partsin 3D. The parts are coded by severalcolors, and each color shows eachoperator’s part in the processing.Through this system, it is now possiblefor a person with a basic level ofexperience to do the work of a skilledtechnician. The computer has enabledregular operators with a basic level ofexperience to do the work previouslydone only by experts looking atcomplicated drawings. This techniciansupport system has greatly increasedaccuracy and improved the quality ofmold processing once done by hand.


Production Yamagata Casio Receives 2005 Nikkei“Monozukuri” Grand Prix

3D-TIMON MOLDES MOLD24 AE system

Unigraphics

Advance study

Mold design Mold production Trial production evaluation

Productionmaterials

Massproduction

Processmonitoring

Jig design Jig production

Product design specifications

Molded part modeling

Flow analysis Molding CAM Moldingmonitoring

Moldmonitoring

Mold process management system(paperless mold drawing)

NAPO system SNAPO systemProduction study

Measurementprogram

Automaticmeasurement

Mold inspection Quality controlCAD-LINE SmartScorp

The Digital Network System for a plastic molding and precise metal molds factory

Trial moldingEven for trial molding with a moldalready completed in this way, theinitial 3D data plays an active role. Thesystem determines the optimal moldingconditions after making close referenceto the database of metal molds &molding, together with the database ofmolding machine & resin, which havebeen built up over the past 15 years.The optimal conditions are sought inthe shortest possible time by sendingthe initial 3D design data to the saidsystem and running a simulation. Theresulting data is then also compiled,which helps reduce development leadtime, improve quality, and raiseproduction yields in the future.

Mass production and monitoringUsing the conditions just determined,the mold moves on to the massproduction stage. The factory containsabout 40 injection molding machines,enabling a molded part to be producedevery 10 seconds. All these machinesare also connected to the network.Each time one part is finished,process-result data are sent to thecomputer server. The computermonitors all operations of eachmachine. If there are any irregularities,an alarm goes off, and if there is apossibility of a defective product, themachine is shut down. The systemprevents defective products fromcoming off the line.

However, since mold productionruns at a very high speed, some mold

breakdowns and damage haveoccurred in the past. Therefore, thismold diagnostic system has beendeveloped in order to prevent suchoccurrences. The system employsultrasound sensors and analysisequipment to check irregularities andassign numerical rating per shot. Thereare always symptoms before a moldbreaks down or becomes damaged.The system identifies these symptomsand notifies an operator. Preventivemaintenance has eliminated majormold damage in recent years.

Since the monitoring in the moldingfactory produces an enormous amountof data, the difficulty lies in how toconvey it to operators and managerswhen a problem occurs. Since onemachine produces 10,000 parts in oneday, the relevant information needs tobe conveyed immediately after aproblem arises. A system has been setup in the molding factory to send areal-time audio message to atransceiver of an operator, and anemail to the manager’s PC. Even if theoperator is performing other tasks in aseparate location of the factory, he/shewill know right away if there is aproblem. Moreover, though machinesoperate with no one around in the moldfactory at night or on holidays, an alarmemail is sent to the cellular phone ofthe factory manager in the event of any trouble.

Yamagata Casio has pursued thegreatest competitive edge in

monozukuri manufacturingtechnologies in Japan by connectingthe entire plant via a digital networkand compiling various kinds ofproduction data. The company is nowdetermined to keep moving forward,striving to achieve the greatestcompetitive edge in the world inmanufacturing technologies.

External view of metal mold

Piece inside metal mold

Yamagata Casio

Toshihiko KurodaMold Making & Molding DivisionYamagata Casio, Co., Ltd.

Key PersonTaking on the Challenge ofCreating MonozukuriManufacturing Technologies forPeople on Site: How to WorkSmarter, Not Harder

In the Digital Network System recently developed by the MoldMaking & Molding Division, I was in charge of integratingprocessing information such as paper drawings and productioninstructions into 3D data to develop a completely paperless molddrawing system that could be accessed whenever needed.

While developing this system, I focused my energies on howpeople on site can work smarter. It is natural for mold production tohave paper drawings, and there is a unique culture in which high-level technicians understand and perform tasks that cannot beshown explicitly on a drawing. To abolish that source, paperdrawings, I had difficulties in seeing processing know-how inheritedfor many years in a new light.

However, owing to the enthusiasm and teamwork of membersinvolved in mold production, I managed to accomplish my task.

Our customers have expressed astonishment and admiration atthe sight of skilled technicians making molds only by computerswithout any paper drawings in a factory. But I feel most rewarded bythe gratitude of my colleagues—people actually working on site.

Although Japanese manufacturing faces a very challengingenvironment, I would like to pursue monozukuri and contribute toour business expansion.

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CSR Highlights Applying the Mechanisms of Human Intelligenceto Manufacturing Technologies

The Digital Network System for a Plastic Molding andPrecise Metal Molds Factory


Participants in Casio’s “Factory Toursfor 10,000 People” program can seethe steps the company is taking torecycle waste and save energy in itscafeterias. This gives young people afirst-hand look at an operational sitethat practices environmentalconservation. By making a comparisonwith the everyday environmental stepsinvolving electricity, water and trashthat children take at home or school, the tours are helping topromote awareness of globalenvironmental concerns.

Casio is also participating in theKid’s ISO 14000 Program developed bythe non-profit, non-governmentalInternational Art and TechnologyCooperation Organization (ArTech).Casio employees with instructorcertification in the program are takingan active leadership role inenvironmental activities for children,based on ISO principles. Since fiscal2005, these activities have includedintroducing various elementary schoolsto the Kids' ISO 14000 Program as partof the Factory Tours for 10,000 People program.

The Kids’ ISO 14000 Program is anenvironmental education programcarried out in Japan and around theworld through UN agencies and theInternational Organization forStandardization (ISO). Based on theconcept of children themselves discov-ering things that lead to moreenvironmental awareness, the program

aims to develop youth with hope andconfidence for the future. This is doneby learning about environmental man-agement and facilitating networking,which helps the children to acquire theresiliency they need to lead a meaning-ful life.

Casio recognizes the potential ofthe Kids’ ISO 14000 Program—aneffective, sustainable method forhelping to preserve the global

environment—to have a multiplier effectwithin society. Casio is activelypromoting the program. Further, sincethe program is effective in humandevelopment as well as environmentalprotection, Casio will also make it a partof its lifetime learning initiative. In thefuture, Casio intends to deploy certifiedemployee instructors throughout Japanto extend the reach of the Kids’ ISO14000 Program.

Casio launched its “Factory Tours for10,000 People” program in February2004. The goal of the program is toprovide a place for young people todiscover that family ties, the power ofscience, and pursuing one's dreamsare all important sources of strength fora meaningful life, and also to learn theimportance of being considerate of others.

Young people discover the value offamily ties by coming to see the placewhere their parents work. They alsolearn that there are close ties betweenhouseholds, schools, the local commu-nity, and companies. They learn aboutproduct construction by having the rarechance to see how advanced productsare made, and actually trying simpleproduct assembly themselves. Througha close-up look at the history of Casioproducts, they also learn the history ofscientific and technological develop-ment behind the various devices theysee every day. All this gives the youngvisitors a glimpse into the wonders ofscience. Inspiring presentations byCasio employees help the children todiscover that they can realize theirdreams through hard work and perse-verance. Finally, by witnessing Casioenvironmental activities, they learn theimportance of protecting the globalenvironment. Casio’s dream—theinspiration behind this factory tourprogram—is to provide opportunitiesfor young people to make the discover-ies that will help them become theleaders of the future.

Fiscal 2006, the second year of theprogram, brought advances to theprogram. The tours became a part ofthe career education promotion pro-gram for elementary and junior highschool students sponsored by theJapanese government and the integrat-ed study periods of school curriculums.The program was entitled, “Make aProposal to Casio: Your Own Idea for aNew Calculator,” since calculators areone of Casio’s main products. The

participants thought about the idealcalculator, and came up with ideas fornew models. They then prepared theplans, and gave product conceptpresentations to Casio employeesactually in charge of product planning.The students learned how hard it is tothink up a new idea and then try andconvince strangers of the merits of theirproduct concepts.

Through this experience, they got a better idea of what it means to work,as well as the satisfaction and self-realization that work can bring. Thisnew development has enabled Casioto further improve the content of theoriginal Factory Tours for 10,000People program.

Casio was thus able to provideeducational opportunities in fiscal 2006by bringing together the corporate,government, and scholastic realms.The Factory Tours for 10,000 Peopleprogram has earned strong approvalfor Casio from both government andlocal communities.

In fiscal 2006, Kofu Casio Co., Ltd.,invited six schools, or 278 students andteachers, to participate in factory tours.At the Eco-products 2005 exhibition

held at the Tokyo International Exhibi-tion Center (Tokyo Big Sight) inDecember 2005, the Casio boothoffered a calculator assembly experi-ence for elementary school studentsand presented information on theFactory Tours for 10,000 People pro-gram. During the three days of theevent, 124 children participated in thisactivity, and Casio was able to expandits community outreach.

In fiscal 2007, Casio will furtherexpand the scope of these activities to

interested schools in the Tokyo metro-politan area.

Casio is now actively pursuingopportunities to advance the FactoryTours for 10,000 People programthroughout the group. Casio is holdingbriefings on the program for groupcompanies under the theme of lifetimelearning for local communities, and isworking to raise employee awarenessabout lifetime learning.

Through joint initiatives with severalcompanies, Casio is also pursuingplans to promote career skills trainingfor local youth.

Japanese youth today are facedwith a very different environment, given

the declining birthrate, aging popula-tion, nuclear family lifestyle, andadvance of information technology.

Today’s changing society requiresmore youth development initiatives tosecure a positive future. As a goodcorporate citizen, Casio sees youthdevelopment as a major component ofits social contribution, and is working todevelop new initiatives in this area.

The “resiliency for a meaningful life”advocated by Casio is based on threefundamental concepts: awareness (aproper understanding of today’ssociety); integrity (sincere action basedon that understanding); and responsi-bility (properly taking that action).Several education institutions in theTokyo metropolitan area haveexpressed interest in participating inthe program. Casio hopes that thisprogram, by providing new sources ofresiliency to youth, will contribute to thedevelopment and sustainability of thesociety of the future. The company isworking on plans to keep expandingthe program.

Kofu Casio

Factory tour

Classroom activity

Briefing at Casio group company

Social Contribution Factory Tours for 10,000 People

Tomoaki FuruyaGeneral Affairs DepartmentKofu Casio, Co., Ltd.

Key PersonProviding a Place for YoungPeople to Gain Resiliency for aMeaningful Life throughDiscovery and Wonder

While CSR management has gained prominence recently, weactually had an opportunity to think about corporate socialcontribution several years ago within our company.

We were discussing ways to help children become the leadersof tomorrow by using the operations of the plant, and to strengthenties with the local community. These desires led to the creation ofthe “Factory Tours for 10,000 People” program.

When children visit our plant and have a different experiencefrom the classroom, they discover and appreciate things such asfamily ties, the wonder of science, the power of pursuing one’sdreams, consideration for others, and the importance of protectingthe global environment. The factory tours are filled with carefullyplanned activities in order to leave a lasting impression on the students.

These factory tours would not be possible without the support ofmany people. Despite their busy schedules, all of our employeeshave worked hard to help out. In the process, the deeper ties havebeen fostered among our staff. We have all gained a sense offulfillment and wonder by watching the children learn.

We are now in the third year of this program, and we havereceived inquiries from various customers. Even activities stemmingfrom a small project such as this can grow into something that tellsthe world what Casio is all about.

We hope to keep providing these tours to better contribute to society.

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Providing a Place for Young People to GainResiliency for a Meaningful LifeCSR Highlights

Otoguro Cherry Trees

There are currently 30 Otoguro cherry trees growing at the Kofu Casio site. Thesecherry trees produce beautiful blossoms every spring, giving wonder and joy to allthat see them.

The Otoguro cherry grows along the banks of the Fuefuki River, which flowsthrough Chuo-shi, Yamanashi, where Kofu Casio located. Spring blossoms and newleaves appear at the same time on this variety of cherry. With the unusually largewhite blossom of the Otoguro cherry, these trees are very special to the localpeople. In 1932 however, the banks of the river were reconstructed as a floodprevention measure, and the original trees were removed. Now, the people in thiscommunity have decided that they want to bring back their beloved Otoguro cherry.Efforts have been made to propagate and replant the species, using the fewremaining descendants of the original trees.

Kofu Casio has also stepped in to help preserve the Otoguro cherry tree. In spring 2004, the company planted 15Otoguro cherries on its premises to helppreserve these historically popular treesand to beautify the plant. In spring2005, 15 more trees were planted.These trees have become a symbol ofthe close ties between Casio and thelocal community. Casio is committed toproviding more community support,through tree planting and other“greening” activities. Otoguro cherry blossoms

Promoting ISO Activities for Kids

Casio has put in place the followingCasio Environmental Action Plans tocounter global warming, each of whichhas targets to be achieved by fiscal2011: (1) developing eco-products; (2) saving energy and reducing green-house gas emissions at business andproduction sites; and (3) loweringemissions in the distribution stage (seepages 32 and 33).

Casio has been a leader in innovationsince its founding, thanks to the corecompetence the company has devel-oped in compact, lightweight, slim, andenergy-efficient products. Today, Casiois working to equip all of its radio-controlled watches with a solar powersystem that is able to obtain powereven from weak light sources such asfluorescent lights. The 10.0-megapixelCasio EX-Z1000 digital camera nowhas a still-picture continuous viewingtime of about 13 hours on just a singlebattery charge, even with its superbright 2.8-inch wide LCD. The company’s W43CA mobile phoneoffers continuous talk time of about 220 minutes.

Casio is committed to continuing toimprove the energy-efficiency of itsproducts. The company is also pushingforward with R&D to commercialize its

Reformed Methanol Fuel Cell System,which has less impact on the environ-ment than batteries (see page 15).

Casio’s total CO2 equivalent emissionsworldwide in fiscal 2006 were 132,000tons. In fiscal 2006, Casio joined in theJapanese government’s new “TeamMinus 6%” campaign and also adopt-ed the government-encouraged “CoolBiz” dress code (casual summerclothes to reduce office cooling insummer). Cool Biz reduced 190,000kWh of electrical consumption at Casioheadquarters, compared to fiscal 2005.At the Hachioji R&D Center, in additionto implementing Cool Biz, the companyimproved the energy-saving manage-ment system, reducing both electricityand natural gas consumption asdescribed in the box below.

The Hachioji R&D Center is nowexamining technologies for reducingthe use of sulfur hexafluoride (SF6) gas,after the successful replacement of NF3 cleaning agent at the Kochi Casiomanufacturing site.

Casio has already achievedthe fiscal 2011 energy-savingtargets (fiscal 1991 basis) set byJapan’s four electrical andelectronic industry associations.Further steps are required,however, in order to achieveCasio’s own, more challengingtargets. The company is formulat-ing the following measures infiscal 2007 to step up its effortsto achieve its fiscal 2011 targets.(1) Setting targets and managing

measures by site.(2) Introducing IT mechanisms to

provide monthly updates onenvironmental performance.

(3) Introducing supplementary mea-sures based on the KyotoMechanisms (Clean DevelopmentMechanism [CDM], emission credittransactions, Certification of GreenPower, Joint Implementation [JI]).

(4) Establishing a strategy for invest-ment in energy-saving facilities.

Casio continues to close down, com-bine, and relocate its distributioncenters in Japan. As for overseasdistribution, part of the cargo beingsent to Europe from China directly byair has now been changed to oceancargo to Dubai, followed by air cargoto Europe. Cargo to the United States,which was previously sent by sea andrail, is now being shipped only by sea.These steps have all helped reduceCasio’s CO2 emissions.

As described above, Casio isactively engaged in efforts to helpprevent global warming—in the threedistinct areas of products, business/production sites, and distribution.


Environment Initiatives to Help Prevent Global Warming:Working to Achieve Fiscal 2011 Targets

European Regulation Initiatives

Casio has started to set up a recoveryand recycling system that meets EUstandards in order to comply with theEuropean WEEE Directive for properdisposal of electrical and electronicdevices. Casio Europe GmbH, locatedin Germany, has been the host for thecompany’s WEEE promotion projectsince 2004.

In fiscal 2006, Casio completed thefollowing legal requirements:● Printing or labeling required marks

on products● Registering as a manufacturer in EU

member states which have establish-ed new WEEE Directive regulations

● Contracting with recycling providersin principal countries

Companies must conform to theindividual regulations of each of the 25EU member states. This is made more

challenging in that interpretations of theWEEE Directive, language, and culturevary a great deal across the EU. Casiois expending enormous resources—including manpower, time, andcommunication effort—to developconsistent policies to guide decision-making on this issue at Casio Europe.

In July 2006, Casio completed thenecessary product informationdisclosure to recycling providers. Theinformation provided includes productweights, as well as the presence andlocation of specified substances—andis intended to ensure proper recyclingof products at the end of the life cycle.

Information details disclosed toproduct recyclers

● Product net weight● Presence of harmful substances that

must be removed, and locationinside end-life-cycle product

Katsuyuki TadaHachioji OfficeCasio Business ServiceCo., Ltd.(Pictured at far right, togetherwith team members)

Key PersonWorking to Reduce CO2

Emissions at the Hachioji R&DCenter

I am serving on the energy-saving study team at the Hachioji R&DCenter. I was also a project team member in the planning phase for anew, energy-efficient building that has now been completed. Thebuilding accommodates both the Tokyo Technical Center and the

Hachioji Laboratory. After discussions with the building planners, weadopted the latest in energy-saving technologies, and achieved 20%savings in energy consumption compared to the combined energyusage of the former Tokyo Technical Center and Hachioji Laboratory. Theenergy-saving technologies include a weather-optimized thermal storagesystem that takes into account weather forecasts to save energy anduses vertical thermal storage tanks to save on power needed to circulatecold water. The building also boasts a natural ventilation system,completely automatic air-conditioning, lighting, ventilation, and blinds, afree cooling system, and special insulation methods for windows and thebuilding as a whole.

In fiscal 2006, in addition to our Cool Biz efforts, we also savedenergy by adding manual intermediate modes to the nine automaticoperation modes of the heating and cooling system. As a result, wesaved 220,000 KWh of electricity and 31,000 m3 of natural gas,compared to fiscal 2005. The energy-saving study team continues topromote more energy saving measures.

Shigeo KojimaCasio Europe GmbH(Pictured at right, with Andrés García,Environmental Manager)

Key PersonCompleted Inspection and OnsiteMeasures for the WEEE andRoHS Directives

I serve as a coordinator between our Tokyo headquarters and thelocal sites for the WEEE and RoHS Directive compliance project.Stationed in Europe, my job is to build recovery and recyclingsystems for Casio products in the EU member states, and to planand coordinate information gathering for smooth and efficient

compliance with the WEEE and RoHS Directives. Through thecourse of my work, I have become aware that regulatory thinkingand culture are different in the EU and Japan. For example,directives and regulations in the EU are often created before allambiguities are cleared up, based on the assumption that there willbe further technological progress. Even when the regulations cameinto effect, the final specifications and decision-making standardsstill seemed vague to me.

The most difficult thing about this process was that, aftergathering as much information as possible in Europe, and thenmaking comprehensive determinations from the standpoint of riskmanagement, I had to decide on the policies myself. Fortunately,the implementation went smoothly thanks to the completecooperation of the people in the relevant departments in Tokyo.Given European consumers’ high level of concern for theenvironment, an active commitment to legal compliance willcontinue to be important as we work to ensure that our customerscan keep enjoying Casio products.

Reference: Casio Europe Websitehttp://www.casio-europe.com/de/unternehmen/umwelt/weee/

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Future Compliance with Harmful Substance Regulations

● Presence of batteries and theirlocation during use

● Presence of LCD panels that exceed100 cm2, and their location during use

● Other information required by recycling providers

In January 2006, Casio factories beganshipping products that comply with theall stipulations of the RoHS Directive.Casio Europe has constructed amanagement system for RoHS-compliant products in cooperation withthe headquarters of Casio ComputerCo., Ltd. Inventory progress manage-ment for products that do not conformto the RoHS Directive was carried out,and the switchover was completed byJuly 1, 2006, the date the directive took effect.

Casio will continue to preparedeclarations in conformity with theRoHS Directive for each product orproduct line.

Looking to the future, Casio plans totake steps in accordance with thedevelopment of the REACH Regulationand EuP Directive. Casio Europe isexchanging information with theEnvironment Center at Casio ComputerCo., Ltd., to determine what measuresCasio needs to take.

Casio recognizes that quick decision making, proper execu-tion of operations, and a robust management oversightfunction that increases the transparency of business manage-ment are extremely important factors in achieving businessgoals and continuing to raise corporate value. This recogni-tion guides the company’s ongoing efforts to improvecorporate governance.

In June 1999, Casio Computer Co., Ltd., made a changein its board of directors, reducing its size by half, from 24 to12 directors. At the same time, the company adopted asystem of operating officers to clearly separate the manage-ment oversight and execution functions. In December 2004, aCSR Committee was also established to drive the company’sefforts to fulfill its corporate social responsibility.

With the adoption of this system, Casio Computer Co.,Ltd., has built a corporate governance system that consists ofthe operating officer system, internal audit system, and CSRCommittee, in addition to the board of directors and theboard of auditors. The objective, role and membership ofeach of these bodies are described below.

Board of Directors

The board of directors is tasked with making prompt,reasonable management decisions. Board meetings areattended by directors and auditors, who discuss and makedecisions on important business issues.

Board of Operating Officers

Meetings of the board of operating officers are attended byoperating officers, directors and auditors. They deliberate on

important affairs relating to the execution of businessoperations. This mechanism enables smooth implementationof company-wide adjustments and measures.

Board of Auditors

The board of auditors consists of three auditors, two of themexternal. In accordance with audit policies and responsibili-ties approved by the board of auditors, auditors attend board of directors’ meetings and meetings of the operatingofficers. In addition, they perform careful audits by gatheringinformation and receiving reports from directors and others,and by reviewing resolution documents relating to importantdecisions.

Internal Audit Department

The internal audit department performs audits of Casiooperations to ensure they are in conformity with laws andregulations as well as internal standards such as theorganization control standard. It also conducts evaluationsand offers recommendations for improvement.

CSR Committee

The CSR Committee is comprised of the directors andauditors, and the company president serves as chairman.The committee discusses matters related to CSR, includingthe determination of CSR priority issues, initiatives, policies,and systems for execution. The decisions made by the CSRCommittee for each CSR issue are then transformed intospecific activities by each department concerned. The CSRCommittee is currently addressing the issues of compliance,risk management, and protection of personal information.


CSR Management

The calligraphy in the photohere—“Creativity andContribution” in Japanese—was done by Casio’s founder,the late Tadao Kashio.

Casio got its start with theinvention of a small fullyelectric calculator, which wasunique in an era whenmechanical calculators werethe norm. Ever since, thecompany has been true to itscommitment to contribute tosociety by offering the kind oforiginal, useful products thatonly Casio can.

The people of Casio prioritize the values of Creativity andContribution in the performance of their work. These valuesare deeply ingrained in the company and its people: they arepassed down from generation to generation of employeesalmost like a genetic heritage.

Today’s shorter product development cycles andincreasingly complex specifications, however, have made thecompany’s operations more and more specialized. Along withthis trend, each person’s job requires increasingly specificknowledge and skills. As Casio grows and its operationsstretch around the globe, the “distance” between topmanagement and frontline employees is growing wider.

At the same time, society now expects companies tostrengthen their CSR management with an awareness of all

stakeholders, and to achieve uncompromisingly fair,transparent corporate governance.

Given this situation, Casio is encouraging all of itsemployees to reconsider the significance of Creativity andContribution, and to maintain their awareness of the corporatecreed. This will enable Casio to sustain its creative corporateculture, while continuing to contribute to societies around the world.

In light of these trends, on June 1, 2003—the anniversaryof the company’s founding—the Charter of Creativity forCasio was established to better articulate the meaning of thecorporate creed today for all employees. In December of thesame year, the Casio Common Commitment was alsoinstituted to provide a more specific description of theemployee conduct that is expected and valued at Casio.

All Casio employees carry a card printed with the Charterof Creativity and Common Commitment. Top managementhas also issued messages describing the kind of companythat Casio ought to be, and published them on the company’sintranet. These steps are enabling Casio to secure a group-wide understanding of its commitment to CSR.

Corporate Creed and Charter of CreativityThe Charter of Creativity for Casio has been established based on Casio’s corporate creed of “Creativityand Contribution.” The creed and charter provide the foundation for the execution of Casio’s CSR-driven management.

Corporate Governance System

Corporate GovernanceCasio is constantly striving to strengthen its corporate governance, focusing on the priority issues ofquick decision making, proper execution of operations, and improved transparency of business management.

Corporate governance system diagram

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Charter of Creativity for Casio and Casio Common Commitment-A Promise from Everyone Working at Casio-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 asprofessionals.

[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, according to 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.

Board of Auditors

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Charter of Creativity (card)

In April 2006, after Japan’s Whistleblower Protection Act tookeffect, Casio established a Whistleblower Hotline and ap-pointed an employee in charge of the whistleblower system ateach of the group companies.

The hotline has been created to respond to opinions,questions and queries not only from current and retired full-time Casio employees, but also from contract, part-time, anddispatched workers, as well as subcontractors, and anyoneelse doing work for Casio in any capacity. The hotline enablesCasio to discover problems in the early stages, so thatmeasures can be taken to avoid incidents, with the goal ofpracticing fair and honest management. The confidentialhotline has offices in and outside the company, and peoplewith important information to report are able to call a specialnumber, send an email, fax, or letter, or directly visit theoffices in person. Accordingly, this hotline serves as a neutraland fair intermediary between the company and people withinformation to report. The information provided to the hotlineis subject to factual confirmation by the Whistleblower HotlineOffice, which is headed by an officer of Casio Computer Co.,Ltd. The office checks whether the reported activity may beillegal, dishonest, or unethical. If any problems are dis-covered, an investigation team is immediately formed tocheck and verify the activity, and then appropriate measuresare taken.

As the Whistleblower Hotline Office controls all theinformation obtained from the group companies in Japanregarding these activities, the privacy of those making callsand those that are the subject of the calls is thoroughlyprotected. Casio has also established Basic Regulations forthe Whistleblower Hotline, which prohibit the dismissal of anemployee for making a hotline report. They also prohibitdemoting, or cutting the pay of such an employee, or order-ing the employee to stay at home, discriminating against theperson through pay, or forcing the employee to retire. Theprotection of hotline callers is carefully secured.

Philosophy on personal information security

Casio is aware of its important social responsibility to keepsecure information that it collects from customers and otherstakeholders in relation to its business activities. Casio strivesto maintain the highest level of information security. In antici-pation of full implementation of Japan’s Act on the Protectionof Personal Information in April 2005, Casio launched itsProtection of Personal Data Project in June 2004, to ensurethat all employees of the group are able to manage personalinformation properly. At this time, Casio began formulatingand implementing specific policies and procedures. Then, inFebruary 2005, Casio established its Policies on PersonalInformation Protection to specify the methods of properlysecuring personal information. Casio has established all therules needed to ensure full protection of personal information,and is ensuring that all its officers and employees have athorough understanding of them.

Personal information protection system

Casio Computer Co., Ltd., has appointed the Executive VicePresident to the position of Chief Privacy Officer (CPO) andpersonal information manager and constructed a system forpersonal information protection under his direction. With thesupport of top management, all employees and officers arebeing urged to cooperate with measures to protect personalinformation. In March 2005, the company set up the PersonalInformation Protection Office, which inherited the functions ofthe Protection of Personal Data Project. Three positions werecreated in this office to handle customer service, informationsystems, and employee education, respectively. In addition,two leaders were appointed in each department to promoteefforts relating to personal information protection at thedepartment level.

Privacy Mark certification

As part of Casio’s drive to strengthen itssystem for safe and proper handling ofpersonal data, Casio Computer Co., Ltd., hasworked hard to qualify for the Privacy Mark*certification. As a result of these efforts, the company re-ceived the Privacy Mark certification on December 27, 2005.

In fiscal 2005, all personal data held by the company wasinventoried, rated, and subjected to a risk analysis, meetingthe requirements of the JIS Q 15001 compliance programrelating to personal information protection. Based on theresults of this analysis, the company established various rulesand took additional steps. These steps promoted as a PDCAcycle (plan, do, check, act) management system, includingeducation for all employees and officers, tighter control ofinformation system access and computer logs, reexaminationof agreements on the handling of personal data signed withits business partners, and implementation of internal auditing,correction, and other improvements. After completing theseefforts, Casio Computer Co., Ltd., filed an application forcertification in March 2005. After a documentary audit andonsite inspection, the company was granted Privacy Markcertification in December of the same year.

Accompanying the Privacy Mark certification, Casio willcontinue to take further measures for the protection of person-al information in and outside the company. By strengtheningits information security and personal information protection,Casio strives to maintain the confidence of its customers.

CSR Management


As president Kazuo Kashio said in his message at the front ofthis report, Casio has been: (1) striving to realize its corporatecreed of “Creativity and Contribution” since the very begin-ning; (2) working towards improvement of its corporate valueby reinforcing its system of internal controls; (3) creating newvalue to help resolve various issues facing the global commu-nity; (4) implementing environmental innovations thatintegrate resource conservation and energy saving features;and (5) increasing transparency by creating interactivecommunication.

In order to realize these commitments, Casio is promotingvarious policies such as adherence to the Charter of Creativ-ity for Casio and the Casio Common Commitment, effectivecompliance and risk management, environmental protectionactivities that include management of harmful chemical sub-stances, and interactive communication with stakeholders.

In order to integrate everyday business with CSRactivities, Casio set up a CSR Committee in 2004, consistingof the company directors and auditors. This committeediscusses and mandates specific policies and strategies foreach CSR issue.

Casio has also been working urgently to reinforce itssystem of internal controls, responding to legislation in thewake of the recent series of corporate scandals both in andoutside Japan. The company is committed to meeting stake-holder demands for fair and transparent corporatemanagement.

Each management department at Casio has long beenindependently engaged in preventive measures for anticipat-ed risks and in ensuring compliance with all relevant laws,social norms, and corporate ethics. Now however, Casio isalso pursuing a group-wide approach to strengtheningcompliance and risk management efforts.

Along with the establishment of the Charter of Creativity forCasio and the Casio Common Commitment in 2003, printedcards featuring both texts were issued to each employee.Every employee has signed one and carries it as a reminder.

Every year, company officers and department heads signa pledge that they will observe these company policies and

take responsibility for educating their subordinates andcolleagues about them. The previously established CasioCode of Conduct has also been revised, and serves as thebasis for the good conduct of all employees.

In order to ensure that all Casio employees are wellinformed about and adhere to all compliance requirements,Casio has launched CASIO Style, an intranet site for itsemployees. The site includes messages from top manage-ment on the type of company Casio should strive to be.

In addition, subcommittees have been set up under theCSR Committee to deal with important laws that affect theentire company such as the laws on the protection of person-al information and export management. This is part of acompliance system that also includes the group companies.

Meanwhile, Casio has established basic policies for riskmanagement that include group-wide compliance, based onthe corporate creed and the Charter of Creativity for Casio.The company is working to create a risk management systemthat complies with Japan’s Company Law, which took effectin May 2006, and the revised Securities Exchange Law, which was passed in June 2006 and will take effect in thenear future.

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


Whistleblower HotlineExecuting CSR-driven Management

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*Privacy Mark:A program where theJapan InformationProcessing Develop-ment Corporation, apublic-service founda-tion, evaluates theadequacy of corporateprotective measuresrelated to the handlingof personal data.Companies that arefound to have adequateprotective measures inplace are certified andpermitted to display thePrivacy Mark.

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CASIO Style

Recommendation from Japan Fair Trade CommissionFollowing a Violation of the Subcontract Act

On September 22, 2005, Casio Computer Co., Ltd., received arecommendation from the Fair Trade Commission for a violation of theAct against Delay in Payment of Subcontract Proceeds, etc. toSubcontractors (the Subcontract Act) concerning a reduction inamounts paid to subcontractors.

Casio Computer Co., Ltd., and certain suppliers had agreed inadvance that, when the company ordered work exceeding a certainnormal value within a given period of time, it would pay an agreedreduced amount, less than the actual value of the order. Despite themutual consent of the parties, however, the Fair Trade Commissiondetermined that part of this operation constituted a violation of theSubcontract Act.

Casio Computer Co., Ltd., regarded this recommendation with theutmost seriousness, and set up a Compliance Committee on theSubcontract Act that includes group companies. The company also re-inspected all of its subcontractor transactions, educated the personsinvolved, revised its procedures, and made other efforts to improveCasio’s compliance system. The company has taken thorough action toensure legal compliance and prevent any reoccurrence of such an incident.

started its “Delight OurCustomers” program toensure that allemployees of thegroup would becomethoroughly familiar withCasio’s philosophyconcerning productsand services. The program iscontinuing to raiseemployee awareness.

The Service Department, which is responsible for productrepairs, strives to satisfy customers by providing servicebased on the following three points: prompt response,dependable technology, and reasonable fees that satisfycustomers.

Prompt response

Casio is taking steps to improve its operations by focusing onpart procurement, repair work, and repair technology, so asto shorten the repair time and return repaired products tocustomers as quickly as possible. In Japan, Casio aims to bethe electronics manufacturer with the shortest repair time. Inoverseas markets too, Casio is striving to shorten repair timesto match Japan levels. Moreover, Casio has repair locationsfor system equipment across Japan, enabling prompt dis-patch of repair technicians to client sites.

Dependable technology

Casio is working to improve its repair technology in order tomaintain customer confidence and realize the kind of repairquality that customers expect. In addition, Casio is striving toimprove product quality by sending feedback from the repairsites to the Product Development HQ and the ManufacturingDepartment.

Reasonable fees that satisfy customers

Casio works hard to reduce any unnecessary burden oncustomers by controlling repair costs. This is done throughimprovement of repair methods and setting repair fees thatcustomers can accept. Repair method improvements are alsoimportant because they help to reduce discarding of partsduring repair work. In fiscal 2006, Casio’s new and improvedsystem of digital camera repair operations—the first of its kindin Japan—was also implemented at overseas repair locations.



Communication is an important way for Casio to create long-lasting relationships of trust with customers. Casio’s CustomerSupport Center is the contact point for customers to submittheir opinions, requests and questions. The Customer Sup-port Center operates under the CS Control Group with thegoal of improving customer satisfaction (CS) across thedevelopment, manufacturing, sales, and servicedepartments. The centerstrives to continually deliverhigh-quality service tocustomers by conductingregular skill checks on allstaff and ensuring theyobserve the following fourpoints when receiving callsfrom customers:● Prompt, accurate and

polite response● Acceptance of customer’s remarks with sincerity and

accurate understanding of the facts● Efforts to tie the viewpoint of customers to a solution● Reflecting customer opinions in product and

service improvements.In this way, Casio is striving to ensure the satisfaction andhappiness of customers. The operating hours of the CustomerSupport Center are also being steadily expanded to includeweekends and holidays, in an effort to offer more customerconvenience. Finally, the Customer Support Center alsooperates an Overseas Customer Support Center. TheOverseas Customer Support Center cooperates with thecustomer support centers at Casio’s overseas salescompanies. The OverseasCustomer Support Center iscarrying out various activitiesto foster good relationshipsof trust with overseas usersof Casio products as well.

In the future, Casio willcontinue to increase the levelof its high-quality customerservice, and use worldwidecustomer opinions to furtherimprove its business.

Activities of Casio Customer SupportCenter

Customer Service Improvement

Customer Satisfaction and Quality AssuranceCasio is striving to improve the quality of its products and services, in order toincrease the satisfaction and confidence of customers.

Casio’s Commitment to Quality

Quality Assurance SystemQuality Management Policies

Pre-purchase inquiries 14.7%

Post-purchaseinquiries71.2%

Requests forcatalogues and user manuals 5.5%

Other 8.6%

Customer Support Center

On December 19 and 20, 2005, Casio invited 11 mathematics teachersfrom Australia, the United States, South Africa, Iran, Turkey, South Korea,Malaysia, Singapore, and the Philippines to the Teachers Meeting at theHamura Research and Development Center. The event was held in orderto get product feedback from overseas educators.

The main purpose of the meeting was to hear opinions on thefunctions of Casio’s current scientific calculator models. The teacherssubmitted product evaluation reports to Casio in advance outlining over100 points for improvement. During the discussion, Casio responded tothese suggestions, and there was a lively exchange of opinions amongthe teachers.

Teachers Meeting (Product Feedback from Educators)

Customer Satisfaction Surveys

● Example of an ElectronicDictionary that ReflectsCustomer Opinions

★ Make the text display easier to read!★ Provide audio pronunciation

samples in other languages!★ Make the dictionary expandable!

Customer Comments

Types of inquiries(Fiscal 2006)

Casio quality

Functions, performance, design, price

Environmental conservation,

recycling

Serviceability

Reliability,durability

Safety, legal compliance

Quality at Casio

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Can be expandedgradually

Contents PlusDatacard Text

Contents Plus allows you toadd the content you need

Two pronunciation formats It talks!

Native-speakerpronunciation

Audio output function in six languages

The EX-VOICE Systemprovides clear audio

Easy to see from every angle

Super High Resolution LCD

Back-light

Super High Resolution LCDwith backlight

Casio periodically conducts customer satisfaction surveys toidentify customer opinions on a product-by-product basis.The surveys relate not just to product function, performance, and design, but also to ease of use andcustomer service. The results are then reflected in thecreation of future products.

Casio maintains a strong quality assurance system, basedon its belief in “Quality First.” This system requires all em-ployees to make quality their first concern in every task theyperform, enabling the company to offer products and ser-vices that please and impress customers. The company’scommitment to quality supports its corporate growth andmakes social contributions possible, while at the same timewinning customers’ trust and giving them peace of mind.

● To build a good corporate image, we offer products andservices that please and impress our customers, gaintheir strong trust, and ensure their peace of mind.

● We respond to our customers’ requests and inquiries withsincerity and speed, and reflect their important commentson our products and services.

● In all our business processes, we base our actions on thePrinciple of the Five “Gens”—in Japanese, genba (onsite), genbutsu (actual goods), genjitsu (reality), genri(theory) and gensoku (rule)—and adhere to the basics ofbusiness operations.

● We capture and analyze quality assurance activitiesquantitatively, using reliable data, and use the analysis tomake continuous improvements. We also maintain aquality information system that enables the sharing of thequality information and prevention of problems beforethey occur, and prevents recurrence of quality problems.

Quality Concept

To offer goods and services that please and impresscustomers, it is necessary to create products that can wintheir solid approval in all areas. In addition to function, designand price, these areas include reliability, durability, service-ability, environmental soundness, and compliance withrelevant laws and regulations.

For Casio, all of these factors that affect the evaluation ofits products are elements of quality. Group-wide efforts havebeen made to improve quality, based on Casio’s QualityConcept and Quality Management Policies. In 1996, Casio

Casio has constructed a quality assurance system andconstantly strives to improve quality across the group.

The Casio Promotion Committee for Groupwide QualityEnhancement is Casio’s highest quality assurance authority. Itmeets semiannually by convening the heads from the Elec-tronics business segment (consumer, timepiece and systemequipment categories), the Electronic Components segmentand the communications business, as well as qualitymanagers of manufacturing and service affiliate companies.Decisions are made at these meetings on company policiesand important issues relating to quality. The resolutions arethen communicated to individual departments and reflectedin specific quality assurance activities within the departments.

In 2004, the CS Control Group was created within theSales Department of the Electronics Equipment business toimprove consumer services. Since then, the CS ControlGroup has been conducting activities to ensure quality inproduct development in cooperation with the EngineeringDepartment (within the Product Development HQ) in an effortto further improve quality and services.

Moreover, persons responsible for quality assurance havebeen appointed in the development departments to look afterproduct specifications, software, mounting, outer packaging,circuits, devices, and manufacturing, respectively, in eachbusinesses. In addition, the quality managers who overseethe entire operations ensure product quality in each business.

This gathering providedimportant material for futureproduct development. Itwas also a fantastic, specialopportunity for the membersof Casio’s developmentteam to meet and talk withteachers in person.

Teachers Meeting

A wide array of IR toolsIR tools used by Casio include quarterly financial results,annual reports, and business reports. The same information isalso provided on the Casio Website.

Reporting on the GuidelinesCasio releases regular reports on its fulfillment of the SocialResponsibility Guidelines.

SRI Index Inclusion ● Morningstar SRI Index (May 1, 2006)

SRI Fund Inclusion ● STB Asset Management Co. Ltd.● STB SRI Japan Open “Good Company” ● Sumitomo Mitsui Asset Management Co. Ltd.● Eco-Balance “Umi to Sora” (Sea and Sky)

Casio in SRI Index and Funds (as of June 1, 2006)



Basic Thoughts behind the Approachto Procurement Policies

Fulfilling Social ResponsibilitiesTogether with Suppliers

Basic Policies on Profit Distribution to Shareholders

Operating Results and Dividends inFiscal 2006

Inclusion in SRI Index and Funds

Communication with Shareholders and Investors

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Building Strong PartnershipsCasio is building strong partnerships with suppliers in and outside Japan that shareCasio’s procurement policies.

Responsibilitiesto Suppliers

Casio aims to fulfill its social responsibilities, includingcompliance with relevant laws and social norms, andprotection of the environment, through fair and equitabletransactions throughout the supply chain by strengtheningpartnerships with suppliers.

Procurement Policies

1. Fair and equitable transactionsCasio carries out fair and equitable transactions byproviding equal opportunities to all suppliers (andcandidates) in and outside Japan in accordance with itsinternally established procedures.

2. Compliance with laws and social normsCasio’s procurement activities comply with all relevantlaws, social norms, standards, and treaties worldwide,including the protection of human rights, prohibition ofchild labor, forced labor and discrimination. Therefore,Casio also requires its suppliers to observe the same legaland social requirements.

3. Environmental protectionCasio helps to protect the global environment throughenvironmentally friendly procurement, which is based onthe Casio Environment Charter and FundamentalEnvironmental Policies, in cooperation with suppliers.

4. Strengthening partnerships with suppliersCasio builds relationships of trust with its suppliers throughreciprocal efforts, such as merging and complementing ofmutual technological development abilities, supply chaincooperation, compliance with laws and social norms, andprotection of the global environment, which will benefitboth parties.

5. Policies on supplier selection and transactioncontinuation

Casio initiates and continues transactions with suppliersbased on comprehensive evaluation criteria, which includecompliance with laws and social norms, environmentalprotection, proper information security, respect for intellec-tual property, sound and stable corporate management,superior technological development ability, right price andquality, stable supply capabilities, and electronic transac-tion systems.

6. Right price and qualityCasio endeavors to secure right price and quality in orderto provide its customers with a stable supply of optimalproducts, to ensure that Casio gains the full confidence ofcustomers around the world.

7. Prohibition of personal-interest relationshipsCasio does not allow any employee to have personal-interest relationships with suppliers.

Social Responsibility Guidelines

Casio has set forth the Social Responsibility Guidelines,including compliance with laws and social norms, andenvironmental protection, in order to fulfill its socialresponsibilities together with its suppliers throughprocurement activities.

11. Compliance with laws and social norms

12. Environmental protection

13. Proper information security

14. Respect for intellectual property

15. Sound and stable corporate management

16. Superior technological development abilities

17. Right price and quality

18. Stable supply

19. Electronic transaction systems

10. Prohibition of personal-interest relationship

Guidelines covering the following areas have beenestablished in order to fulfill social responsibilities through procurement.

Sharing the GuidelinesBy holding of Procurement Policy Presentation Meetings andindividual consultations, Casio is conveying its policies tosuppliers in and outside Japan. The Guidelines have beenposted on Casio’s Website and also distributed in printedform to the people concerned.

Managing the GuidelinesCasio works together withsuppliers to resolve suchissues as may be identi-fied in the regular surveys,which are conducted bymeans of answering pre-scribed questionnaires.

Procurement Policy Presentation Meeting

Optimum Shareholder Return andInformation DisclosureCasio is striving to improve business performance and strengthen its financialposition in order to increase returns to shareholders.

Responsibilitiesto Shareholders

and Investors

Casio considers maintenance and expansion of profit distrib-ution to shareholders to be an important management goal.Accordingly, it is striving to improve its business performanceand strengthen its financial position. Casio distributes returnsto shareholders by comprehensively considering the compa-ny’s profit level, financial situation and dividend payout ratio,based on a policy of maintaining stable dividends. Internalreserves are also being appropriated for the R&D and invest-ment necessary for stable corporate growth. These stepsallow Casio to improve its business results and strengthen itsmanagement structure.

In fiscal 2006, Casio moved forward aggressively with expan-sion of its strategic businesses, including timepieces, digitalcameras, electronic dictionaries, cellular phones and TFTLCDs. At the same time, the company strove to improvemanagement efficiency by raising the profit margin andimproving capital efficiency. As a result, record-high net salesand net income figures were achieved for the third consecu-tive year: ¥580.3 billion and ¥23.7 billion, respectively (on aconsolidated basis). Dividends were raised by ¥3 per sharefrom ¥17 in the previous fiscal year to ¥20, marking the thirdconsecutive year of growing dividends.

Socially responsible investment (SRI) represents a commit-ment to evaluate and select corporations for investment onthe basis of their performance on the triple bottom line. Inaddition to conventional investment criteria such as financialanalysis, companies are also evaluated based on their CSRperformance including legal compliance, employment andhuman rights issues, social contribution, and environmentalprotection. SRI funds have been gaining popularity in recentyears, and Casio is included in the following index and funds.

Casio is actively engaged in a variety of investor-relationsinitiatives, true to the company’s policy of disclosing corpo-rate information appropriately and in a timely fashion, asoutlined in the Casio Code of Conduct.

IR eventsAfter the release of financial results each quarter, Casio holdsfinancial results briefings. As the main speaker at theseevents, the company president or director in charge of IRexplains the financial results and future outlook to institutionalinvestors and securities analysts. On occasion, the companyalso meets individually withJapanese or overseas institu-tional investors and securitiesanalysts. Factory tours andsmall meetings for specificbusiness segments areprovided as well.

Financial results briefing

Investor Relations Website

IR Website http://world.casio.com/ir/

Communication with Individual InvestorsAlong with fuller information disclosure on its Website, Casiois actively providing more information to individual investors.These efforts include not just improvement of general share-holder meeting content, but also holding managementpresentations for shareholders after the meeting.

Inquiries to the IR DepartmentIn cooperation with the General Affairs Department, the IRDepartment coordinates Casio’s investor relation activities,and responds to all manner of inquiries from Japanese andoverseas shareholders and investors.

Casio approaches its environmental management activitiesas a top priority issue for the realization of its corporate creed,“Creativity and Contribution.” In January 1993, we establishedthe Casio Environment Charter and Casio FundamentalEnvironmental Policies to serve as a framework for executingour environmental management activities. We then estab-lished the Casio Voluntary Plan for the Environment, anenvironmental management guideline that spells out how wewill conduct specific activities. In February 2006, we updatedthe plan for the 10th time.

Within this plan, we have established an EnvironmentalAction Plan (EAP), the “Clean & Green 21” Initiative, whichclearly sets specific numerical targets and deadlines forexecution. The EAP covers the entire group, and serves asour medium-term action plan. The company is moving for-ward toward the achievement of its goals. In February 2006,we updated the EAP for the 9th time.

Activities and results

Product-related activities and resultsOur product initiatives in fiscal 2006 included adding 114 newmodels to the Casio Green Products lineup; the Casio GreenProducts (C.G.P.) 70 Activity raised the percentage of greenproducts in total sales to 68%. We will continue to work ateco-product design with a view to achieving our target duringfiscal 2007, one year ahead of schedule.

In addition, we reduced by 22.6% the total packagingmaterials used per unit of sales by optimizing our packagingcapacity.

We also pursued the target of completely phasing outspecified hazardous substances by the end of 2005 inresponse to the European RoHS Directive, and completed thecompliance requirements with the cooperation of relevantdepartments and business partners.Business site-related activities and resultsOur business site initiatives included energy conservationefforts. The target we pursued was to reduce CO2 emissionsper unit of actual production* by 10% in fiscal 2006 com-pared to the fiscal 2004 level. However, CO2 emissionsincreased 5% due to a unit price decline in our TFT-LCD business.

Our waste reduction targets were to achieve zeroemissions and to reduce the generation of waste per unit ofproduction by 30% from the fiscal 2001 level. Casio MicronicsCo., Ltd., (Ome) and Casio Soft Co., Ltd., achieved zeroemissions status, bringing the number of sites to do so up to13. The generation of waste per unit of production remainedequal to the fiscal 2001 level.

Our hazardous substance phase-out target was todetoxify PCB-containing equipment currently in storage bythe end of fiscal 2006. We completed the application forcontracting the treatment of PCBs stored at the Hachioji R&DCenter and the Hamura R&D Center. PCBs stored at KofuCasio are waiting for the treatment facility in Hokkaido to startreceiving deliveries.

Future initiatives

Future product initiativesNow that we are compliant with the WEEE and RoHSDirectives in Europe, we will steadily take steps to respond tothe phase-outs of hazardous substances that are expected tobe legislated in North America, China, Japan, and SouthKorea. We will also monitor legal and regulatory trends, suchas the EuP Directive* and REACH Regulation* in Europe, andpursue product compliance.Future business site initiativesStarting this fiscal year, we established new action plans forenergy conservation, resource-saving (i.e. the reduction ofwater consumption at production sites), and waste reduction at business sites outside Japan. This is a majorstep in the worldwide expansion of our environmentalconservation programs.

In Japan, we introduced a new action plan at electroniccomponent business sites to combat global warming byreducing emissions of greenhouse gases other than CO2,targeting a reduction of total emissions in 2010 to at or belowthe 2000 emissions level. Through this and other steps, weare working to realize the reduction targets set under theKyoto Protocol. We are also planning to use other newmeasures, such as CDM, emissions trading, and other Kyotomechanisms, toward the fulfillment of our new target of a 20%reduction in actual CO2 emissions by fiscal 2011.Pursuing CSR managementCasio is making CSR a core driver of its managementpractices. In one new initiative, we are recasting our eco-product designs as CSR designs by taking universal designconcepts into account and rethinking our green procurementof materials as CSR procurement by verifying the status of ourbusiness partners’ fulfillment of CSR. We are preparing therelevant guidelines and manuals and are moving aheadquickly to implement these new practices.

See the following pages for details.

* See page 32 for explanation of terms.



Casio Environment Charter and CasioFundamental Environmental PoliciesConsistent with its corporate creed of “Creativity and Contribution,” Casio sets specific guidelines andtargets in line with the Casio Environment Charter and Casio Fundamental Environmental Policies inorder to ensure proactive execution of environmental management.

CorporateProfile

CSRHighlights

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anagement

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panyData

Environmental Management VisionEnvironmental Management Activities in Fiscal 2006 and Future Efforts

Yukio KashioExecutive Vice President and Representative DirectorChairman, Casio Environmental Conservation Committee

Corporate Creed

Creativity and Contribution

Casio Environment CharterTo conserve the global environment, Casio recognizes the importance of its corporate environmental responsibility across the operations of its entire group. Casio establishes basic policies and specific measures for contributing to world prosperity and human happiness from the broad perspective of international society, and endeavors to implement them.

Fundamental Environmental Policies1. Casio Group members shall comply with all environmental laws, agreements, and

standards in Japan and overseas.2. The Group shall establish voluntary “Casio Environmental Conservation Rules”* based

on consideration for the environment at all product stages of development, design, manufacture, distribution, repair services, and recovery/disposal. All Casio business divisions shall assume responsibility for their implementation, additionally auditing the degree of compliance and making continual improvements.

3. From the standpoint of corporate social responsibility, and as good corporate citizens, all Casio Group members shall apprehend the importance of global environmental conservation and try to heighten their awareness.

4. These policies shall apply to all Casio Group business divisions in Japan and overseas.

*The Casio Environmental Conservation Rules are specific action programs for environmental conservation, set forth in the “Casio Voluntary Plan for the Environment (CVPE).”

Global conservation

Casio Environmental Conservation Committee

PDCA

PDCA at each site

Environmental performance assessment

(CHECK)

Improve and strengthen environmental activities

(ACT)

Environmental activities of implementing organizations

(DO)

Casio Voluntary Plan for the Environment (Casio Environmental Conservation Rules)

(PLAN)

Environmental Action Plan, “Clean & Green 21” Initiative

(PLAN)


Environmental Action Plan, “Clean & Green 21”InitiativeCasio establishes targets that take account of environmental changes in and outside Japan andcontinually strives to achieve these goals.

0

10

20

30

40

50

60

70

80

FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 target

Sha

re o

f gre

en p

rodu

cts

in to

tal s

ales

(%)

1

35.3

44.4

59.0

68.0 70

Share of green products in total sales

Product-related targets

Item FY2006 targets FY2006 performance Rate of achievement FY2007 targets Page number

Developmenttargets for eco-products

Hazardoussubstance phase-out targets

Raise green productsales to 70% of totalsales by FY2008.

Green product sales grewto 68%.

✩✩ Continuing 32

Reduce the total usageof packaging materialsper unit of sales by 30%by FY2008 compared to FY2001.

A 22.6% reduction wasachieved.

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Discontinue the use ofRoHS Directive-specifiedtoxic substances,namely, lead (leadcontained in purchasedproducts), cadmium,mercury, and hexavalentchromium, by the end of FY2006.

Discontinued the use oflead, cadmium, mercury,and hexavalent chromiumin products bound forEurope. (PBB and PBDEwere already phased out.)

✩✩✩

Discontinue the use of lead, cadmi-um, mercury, and hexavalentchromium by June 2006 in compli-ance with hazardous substanceregulations other than those forproducts bound for Europe.*Hazardous substances regulationsoutside Europe: Hazardous substanceregulations equivalent to Europe’s RoHSDirective in North America, China, Japan,and other locations.

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* Rate of achievement: Ratio of fiscal 2006 performance against the target fiscal year.✩✩✩ :100% of target achieved. ✩✩ :80% or higher achieved. ✩ :Below 80% achieved.

Fiscal 2006 Performance and Future Targets

Future initiatives

Casio set and worked toward the goal of raisingsales of green products to 70% of total sales byfiscal 2008 (C.G.P. 70) in order to spuraggressive development and evaluation of eco-products. In fiscal 2006, green product sales roseto 68% of total sales. Casio will continue todevelop eco-products that satisfy Casio’s GreenProduct Certification Criteria, with a view towardachieving the goal set for fiscal 2008 one yearahead of schedule.

Explanation of terms

■ C.G.P. 70 Activity Abbreviation of “Casio Green Products 70.” An effort to raise the percentage of green products (products that meet Casio’s Green Product

Certification Criteria) in total sales to 70%■ EuP Directive A proposed directive on environmentally friendly design of energy-using products in the European Union (EU).■ PBB Polybrominated biphenyl. One of the substances prohibited under the RoHS Directive.■ PBDE Polybrominated diphenyl ether. One of the substances prohibited under the RoHS Directive.■ PRTR Pollutant Release and Transfer Register system.

The system was institutionalized in Japan in 1999 with the Law concerning Reporting, etc. of Releases to the Environment of Specific

Chemical Substances and Promoting Improvements in Their Management (PRTR Law). ■ REACH Regulation A new EU regulation for chemical substances that controls the Registration, Evaluation and Authorization of CHemicals under a single,

unified system. ■ RoHS Directive Restriction of the use of certain Hazardous Substances in Electrical and Electronic Equipment.

A regulation that came into effect in the EU on July 1, 2006, prohibiting the use of six specified hazardous substances in electrical and

electronic equipment.■ WEEE Directive A directive that came into effect in the EU on August 13, 2005, mandating the recycling of Waste Electrical and Electronic Equipment.■ Unit of sales A basic unit of measure calculated by dividing a figure by Casio’s consolidated sales.■ Unit of production A basic unit of measure calculated by dividing a figure by total production at specified production sites.■ Unit of actual production A basic unit of measure calculated by dividing a figure by production, where the value for production in the denominator (i.e. nominal

production) is replaced with the value for actual production as corrected using the Bank of Japan’s Domestic Corporate Goods Price Index

(electrical equipment).

Fiscal year

Price index corrected values

1991

1

2001

0.69

2002

0.62

2003

0.58

2004

0.54

2005

0.52

2006

0.50

(Decimals are rounded to the nearest hundredth.)

Nominal production

Bank of Japan’s Domestic CorporateGoods Price Index (electrical equipment)

Actual production =

*1: Production sites in Japan: Kofu Casio (head office and Ichinomiya branch), Kochi Casio, Casio Micronics (in Ome and Yamanashi), Casio Electronic Manufacturing, and Yamagata Casio.*2: Production sites outside Japan: Casio Korea Co., Ltd., Casio Taiwan Co., Ltd., Casio Computer (Hong Kong) Ltd., Casio Electronic Technology (Zhongshan) Co., Ltd., Casio Electronics (Shenzhen) Co.,

Ltd., Pt. Asahi Electronics Indonesia, and Casio (Thailand) Co., Ltd.*3: Zero emissions: (Final disposal / Waste generated) x 100 1%.*4: Sites that have adopted the CATS e-P system: Head Office of Casio Computer Co., Ltd., Hamura R&D Center, Hachioji R&D Center, East Nihon Hub Centers (Chiyoda, Sendai, Saitama, Yokohama,

Chiba, and Special Sales Office), West Nihon Hub Centers (Nagoya, Osaka, Hiroshima, and Kyoto), and Casio Hitachi Mobile Communications.*5: In terms of units of actual production, water usage decreased 2.7% from the fiscal 2001 level.*6: Greenhouse gases other than CO2: PFCs, SF6, and NF3 (based on JEITA’s voluntary action guidelines). Casio has already completed the complete elimination of these gases other than SF6.*7: The three sites that had not achieved zero emissions status by the end of fiscal 2006 will continue to pursue this goal as part of their ISO 14001 initiatives.

Business-site related targets

Item FY2006 targets FY2006 performance Rate of achievement FY2007 targets Page number

Energyconservationtargets

Reduction targets forgreenhouse gasesother than CO2

CO2 emissions rose 5% due toincreased production and a unitprice decline in TFT-LCDs

✩Sites in Japan: Reduce CO2 emissionsper unit of actual production by 20%by FY2011 compared to FY2004.

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–– –– ––Sites outside Japan: Reduce CO2

emissions per unit of production by10% by FY2011 compared to FY2005.

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–– –– ––Reduce total emissions of greenhousegases other than CO2 (CO2 equivalent)by 2010 to at or below the 2000level.*6

Resource-savingtargets

Waste reductiontargets

Hazardoussubstance phase-out targets

Reduce water usage per unitof production at productionsites in Japan*1 by 5% byFY2006 compared toFY2001.

Water usage increased by about34% over the FY2001 level due togreater water usage accompanyingincreased production at CasioMicronics.*5

✩

Production sites in Japan*1: Reducewater usage per unit of actualproduction by 10% by FY2009compared to FY2001.

–– –– ––Production sites outside Japan*2:Reduce water usage per unit ofproduction by 5% by FY2009compared to FY2005.

–– –– –– ––Sites in Japan: Reduce paper usageper unit of actual production by 30% byFY2009 compared to FY2004.

Achieve zero emissions*3 attargeted sites in Japan byFY2006.

Casio Micronics (Ome) and CasioSoft newly achieved zero emissionsstatus, bringing the total number ofsites to do so to 13.*7

✩✩ Removed from FY2007 targets.

Reduce the generation ofwaste per unit of productionby 30% by FY2006compared to FY2001.

The generation of waste remainedequal to the FY2001 level despiteincreased production.

✩

Production sites in Japan*1: Reducethe generation of waste per unit ofactual production by 40% by FY2009compared to FY2001.

–– –– ––Production sites outside Japan*2:Reduce the generation of waste perunit of production by 10% by FY2009compared to FY2005.

Detoxify PCB-containingequipment currently instorage by the end ofFY2006.

Reservations have been made witha waste treatment contractor for thetreatment of PCBs stored at theHamura R&D Center and theHachioji R&D Center. The PCBs arestill on the waiting list for treatment.The PCBs stored at Kofu Casio areawaiting the opening of a treatmentfacility in Hokkaido in October 2007.

✩

Detoxify PCB-containing equipmentcurrently in storage as the JapanEnvironmental Safety Corporationopens facilities in different areas.● By FY2008 all PCBs stored at the

Hamura R&D Center and theHachioji R&D Center.

● By FY2008 PCBs stored at KofuCasio.

Greenprocurementimplementationtargets

Green purchasingimplementationtargets

Achieve a 100% responserate (percent of partscovered by supplier surveys)for green parts at sites inJapan in FY2006.

Achieved a 100% response rate. ✩✩✩

Achieve a 100% response rate(percent of parts covered by suppliersurveys) for green parts at sites inJapan in FY2007.

Achieve a 100% response rate(percent of parts covered by suppliersurveys) for green parts at sitesoutside Japan in FY2007.

Continuing

Achieve a 100% responserate (percent of partscovered by supplier surveys)for green parts at sitesoutside Japan in FY2006.

Achieved a 99.2% response rate. ✩✩

Raise the green purchasingratio to 60% of total purchasesof stationery products, officesupplies, and OA equipment atsites in Japan by the end ofFY2008 (based on the numberof purchases).*At sites that have adopted the *CATS e-P system.*4

Achieved 58.7%. ✩✩

Targets againstdistribution-related globalwarming

Continuing

Reduce CO2 emissions per unitof sales by 50% by the end ofFY2008 compared to FY2001by improving the efficiency ofdistribution in Japan.

Achieved a 40% reduction. ✩✩

Continuing

Reduce CO2 emissions perunit of sales by 5% byFY2008 compared to FY2005by improving the efficiency ofdistribution outside Japan.

Achieved a 3% reduction. ✩

* Rate of achievement: Ratio of fiscal 2006 performance against the target fiscal year.✩✩✩ :100% of target achieved. ✩✩ :80% or higher achieved. ✩ :Below 80% achieved.

Reduce CO2 emissions perunit of actual production by10% by FY2006 and by 20%by FY2011 compared toFY2004.

CorporateProfile

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The following table shows the yearly ratios in comparison with the base year of fiscal 1991 for the Bank ofJapan’s Domestic Corporate Goods Price Index (electrical equipment). <=

Casioand

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Casio introduced eco-product design in 1993. Since 2001, it has been developing ISO Type II environmental labellingproducts based on Casio’s green product developmentguidelines.

Since 2005, Casio’s Design Center, with the help of theEnvironment Center, has been working on the concept ofdeveloping a new product lineup featuring eco-productdesigns. The idea is to systematize and combine eco-productdesigns with universal design as a new CSR design initiative.Casio has already worked out Universal Design Policies, andis performing assessments of electronic dictionaries andelectronic musical instruments with a view to improving thequality of the user experience.

Casio Universal Design Policies

Delivering a high-quality user experience

Strategically focused on its core competence in compact,lightweight, slim, energy efficient technologies, Casiodevelops products with as little environmental impact aspossible. Moreover, in addition to reducing product size whileincreasing performance, Casio also strives to achieve a high-quality experience for the user so that people who areunfamiliar with electronic devices and those who are lessconfident about IT can use Casio’s products comfortably.Looking ahead at the future social environment, Casio iscommitted to providing products and services that are trulybeneficial to customer’s lives.

Casio has set the main objective for its universal designactivities: improve the quality of the user experience. Casioworks to develop products using human-centered design(HCD) in conformity with ISO 13407* processes. Casioapplies these concepts not only to the products themselves,but also to improve packaging and user manuals.

From the customer’s perspective

Obtaining evaluations from customers who actually use theproducts and reflecting that feedback in product develop-ment are essential parts of HCD.

Casio has made it a top priority to develop products fromthe customer’s perspective, and requires its developmentstaff themselves to listen to customers’ opinions. Casio isdedicated to improving usability by applying evaluations from user tests and feedback given to the Customer Support Center.

In fiscal 2006, Casio conducted user tests on the usabilityand design features of products by enlisting the cooperationof a wide spectrum of customers, including high schoolstudents, housewives, and the elderly. Casio made specificimprovements to the quality ofthe user experience, in termsof both hardware and soft-ware, by analyzing the testresults across the lateralorganization made up of thespecialized departments forplanning, development, anddesign.

Future initiatives

Casio has already worked out the Casio Universal DesignPolicies during the current fiscal year in order to share policyon universal design activities with all group companies.

Casio is determinedto pursue high-qualityexperience for the user.Going forward, Casiowill continue develop-ing its HCD guidelinesand create productsbased on them in evenmore business areas.

Broader Design Goals: Moving fromEco-product Designs to CSR Designs

Universal Design Activities

From Eco-product Design to CSR DesignCasio is committed to broadening its design considerations, moving from eco-product designs to designsthat are environmentally friendly and offer a high-quality experience for the user, in line with the universaldesign guidelines established by the company.


1. Easily understood display and expression.

2. Simple, understandable operability.

3. Reduce physical and mental stress.

4. Provide safety and reliability.

5. Pursue product value.

To customers

Lateral organization prepares proposed

solutions

Evaluation by specialists/users

Understand and arrange user needs

Correctly understandusage conditions

Establish UD goals

Final specifications

Improving the quality of

experience forthe user

Casio’s own UD activity mark

A user test

Basic cycle of the universal design (UD) process

*ISO 13407: An international standard that provides human-centereddesign guidelines that should be incorporated whendeveloping interactive systems using computers.

1. Projection system: DLP ®

2. Brightness: 2000 ANSI lumens

3. Display resolutionTrue: XGA (1,024 x 768)Compressed: Maximum SXGA (1,280 x 1,024)

4. Slim construction: 43 mm thick (32 mm at thinnest point)

5. USB compatible, the XJ-S35 enables PC-freepresentations

DLP, the DLP logo and the DLP medallion are trademarks of Texas Instruments.

LCA Evaluation of the Super Slim Projector XJ-S30/S35, a Casio Green Product

Product characteristics

Green product technology points

LCA Evaluation ReportCasio evaluated its Super Slim Projector using life cycle assessment (LCA).

LCA evaluation case study

As a mobile projector, the XJ-S30/S35 has a super slimconstruction that makes it easy to carry around. It has a high-pressure mercury lamp with 2000 ANSI lumens. The lampitself consumes 200 W of electricity, resulting in the use stageof the LCA data accounting for a large 82% of the overallenvironmental impact.

Accordingly, the product offers an Eco mode, whichboasts lower energy consumption than the Normal mode. Byswitching from Normal mode to Eco mode, the projector isput into an energy conservation mode where the lamp is lessbright and the high static pressure Sirocco fan runs quieter.The Eco mode is effective for use in quiet surroundings andwhen one wishes to adjust the brightness to create a betterbalance with the room lighting.

Future challenges

Ways to lower the value for the use stage need to be studiedin order to improve the projector’s LCA data. Future chal-lenges are to make further headway in reducing energy useby the light source, improving product parts, and reducingoverall weight.

1. Energy conservation: Energy consumption can bereduced by switching the projector from Normal modeto Eco mode.

2. Resource-saving:Compared to thepredecessor XJ-360, a. The body of this

product has been● Reduced by 14% in volume● Reduced by 40% in thickness

b.The packaging (all made from paper except the softcase) has been● Reduced by 24% in volume● Reduced by 17% in weight

3. Recyclability: The housing is made of a magnesiumalloy and is easily recycled.

4. Elimination of hazardous substances: The product does not contain substances prohibited by the RoHS Directive.

0.0

50.0

100.0

150.0

200.0

250.0(Unit: kg)

Raw material production

ProductProduction

Distribution Use Disposition Total

28.875.33 0.57

164.60

2.16

201.53

XJ-S30's effect on global warming (CO2 equivalent)

*ECO-LEAF Environmental Label:An environmental labelling originating in Japan thatdisplays quantitative LCA-derived environmentalaspects covering the entire lifecycle of a productfrom the extraction of resources through production,distribution, use, disposal, and recycling.

Super Slim Projector XJ-S30/S35

Total for all stages

201.53 kg

0.28 kg

4,313.63 MJ

Global warming impact (CO2 equivalent)

Acidification impact (SO2 equivalent)

Energy use

CSR Design Guidelines

Guidelines for Green Product Development

Universal Design Guidelines (currently being prepared)+

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Packaging for XJ-S30/S35 (left) and theirpredecessor (XJ-360)

Casioand

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In August 2005, Casio held the CSR Report 2005 ReadingSession under the second Teacher’s Business TrainingProgram.

Normally, there are few opportunities for companies andschools to get together and talk. Accordingly, while partici-pants examined some actual Casio Green Products forthemselves, Casio personnel gave a presentation on theirmanufacturing process in order to provide a slightly deeperunderstanding of Casio’s environmental activities. Theteacher’s remarks included interest in the Kids’ ISO 14000program and environmental education as well as the fact that their social responsibility as educators is being questioned nowadays.

Casio plans to continue toactively accommodate this typeof training.

Energy 59,480 (crude oil equivalent) kL

Electricity 185.56 million kWh

Fuel 12,172 (crude oil equivalent) kL

Water resources 3.315 million m3

Recycled industrial water 208,000 m3

SF6 (sulfur hexafluoride) 2 tons

Paper usage 782 tons

PRTR substance input 209 tons

Parts and materials 24,759 tons

Manuals (recycled material)

4,557 tons (2,117 tons)

Packaging material (recycled material)

12,984 tons (10,128 tons)

R&D/design

Procurement

Manufacture

Distribution*1

Sales

Use

Recovery/recycling

Greenhouse gases

CO2 emissions 113,482 tons-CO2

SF6 emissions 18,714 tons-CO2

Air pollutants*2

NOx 138 tons

SOx 37 tons

Dust 3 tons

Releases and transfers of PRTR substances 127 tons

Wastewater 2.504 million m3

Generated waste 8,527 tons

Landfill disposal 625 tons

Recycled waste 5,680 tons

Electricity 87.68 million kWh

System equipment from corporate customers 83 tons

Household PCs 0.5 tons

Label printer tape cartridges 3 tons

Drums and toner cartridges 672 tons

Rechargeable batteries 1 ton

CO2 emissions 99,692 tons-CO2

Total products sold 150 million

TFT-LCD packaging 14 tons

CO2 emissions 40,680 tons

RecycledRecovered

System equipment from corporate customers 71 tons

Household PCs 0.4 tons

Label printer tape cartridges 3 tons

Drums and toner cartridges 635 tons

■Material balance for business sites■Material balance for products

Inputs Outputs

*1: Product distribution is consigned to transportation companies.*2: Ozone depleting substances are not listed because they have been fully phased out.

In Japan, Casio does business in the Electronic Components segment and Electronics segment. Outside Japan, Casio's businessis in the Electronics segment only.

Material Balance of Business ActivitiesBelow is a report of the lifecycle inputs and outputs associated with Casio’s business activities.


Material balance of business activities in fiscal 2006

Communication and Disclosure about the Environment

Casio is making an effort to help build a sustainable societyby engaging in dialogue with various stakeholders. Thecompany is also aggressively undertaking environmentalconservation activities aimed at protecting biodiversity,including humankind, and pursuing preservation of the global environment, including natural resources and the atmosphere.

Casio’s Philosophy and Policy on Communicationand Disclosure about the Environment

Participation in Exhibitions(Eco-products 2005)

CSR Report 2005 Reading SessionHeld

Information on the Web

Environmental Report websitehttp://world.casio.com/env/

Eco-products 2005

Eco-products panel

Building a calculator

Casio communicates actively with stakeholders to help build a sustainable society.

2005

2006

June

June

February

Yamagata Casio Co., Ltd.

Casio Micronics Co., Ltd.


Hamura R&D Center

Yamagata Prefectural Governor’s award for excellence in promotion of environmental conservation

Award of excellence for electrical safety and rationalization

Award of excellence for rationalization of electrical use

Yamagata Prefecture

Tama Electric Association

Kanto Region Electricity Usage Rationalization Committee

Year Month Site Award / commendation Awarding organization

Major awards and commendations in fiscal 2006

CSR Report 2005 Reading Session

CorporateProfile

CSRHighlights

CSRM

anagement

Casioand

theM

arketCasio

andEm

ployeesCasio

andSociety

Company

Data


Casio has participated in the Eco-products Exhibition everyyear since it started in 1999. The Eco-products Exhibition,which is the largest general environmental exhibition inJapan, is a place where people from different walks of lifecan think about environmental issues and learn about ways torealize their own eco-lifestyles. Casio’s commitment topromoting environmental awareness extended even to theactual construction of its exhibition booth, which was made ofeco-materials (Eco-Palette Haru-Color / Moiss). The exhibitionwas an opportunity for Casio to introduce its overall environ-mental initiatives while showcasing Casio Green Products—eco-products that make use of Casio’s core competence incompact, lightweight, slim, energy efficient technologies. Forthe 2005 exhibition, Casio planed a hands-on learningexperience for children, giving them the chance to practicebuilding a calculator. The company also introduced itsenvironmental initiatives using an easy-to-understand videopresentation on the main stage.

Casio plans to take part again in the Eco-products 2006 Exhibition.

Casio renewed its website for Japan in March 2006 andworldwide website in June 2006. The website for Japan wasranked seventh on the Usability Ranking sponsored by NikkeiPersonal Computing. This ranking evaluates user-friendlinessand design. The company’s Japanese environmental websitewas also renewed, follow-ing the same pattern. Casiouses its EnvironmentalReport website to publishthe latest Corporate SocialResponsibility Report.

Casioand

theGlobalEnvironm

ent

Website


Environmental Accounting

In fiscal 2006, capital investment came to ¥148 million,environmental conservation costs totaled ¥1.475 billion, andeconomic effects came to ¥133 million.

Following last fiscal year’s investments in energyconserving air conditioning equipment, water supply anddrainage treatment equipment, and equipment to preventglobal warming, during the current fiscal year Casiocontinued to work on air quality conservation by installingequipment to detoxify the higher CVD gas* emissionsaccompanying increased production of TFT-LCD panels.

Environmental costs increased over the previous fiscalyear due mainly to strengthened responses to Europe’s RoHSand WEEE Directives.

Economic effects were ¥263 million in business revenuefrom recycling and absorption of ¥130 million in increasedcosts related to energy conservation, resulting in a totaleconomic effect of ¥133 million.

In terms of the environmental efficiency of sales, CO2

environmental efficiency came to 5.11 (¥ million/ton-CO2 ) andwaste environmental efficiency came to 68 (¥ million/ton) dueto increased business activities, while the amount of wastesent to landfill disposal improved over the previous fiscal year(a year-on-year decrease of 436.9 tons) due to the company’saggressive recycling efforts. In addition, environmentalefficiency for chemical substances specified in the PRTR Lawwas 2,777 (¥ million/ton), and 32% of the amount used wasrecovered and recycled.

In the future, Casio will steadily implement medium-termmeasures with the aim of expanding economic andenvironmental conservation effects through energy andresource conservation-associated cost savings and theimprovement of environmental performance indicators. (*CVDgas: A gas emitted during the CVD process, which creates film of silicon orother substance on the board during the manufacture of TFT-LCD panels.)

Category

(Unit: ¥ million)

ElectronicComponents

Capital investment Environmental cost

Electronics Total ElectronicComponentsElectronics Total

2006 2005 2006 2005 2006 2005 2006 2005 2006 2005 2006 2005

Global warming measures

Ozone layer protection measures

Air quality conservation measures

Noise and vibrationmeasures

Conservation measures for the aquatic, ground, and geologic environments

Waste and recycling measures

Measures for chemical substances

Natural environmental conservation

Other

Total

122

8

4

28

162

11

3

1

16

31

41

51

13

12

117

148

28

254

43

6

479

52

54

14

12

16

148

270

8

28

254

47

34

641

66

3

7

379

132

6

271

864

53

5

1

7

376

91

3

202

738

29

76

206

140

104

6

50

611

20

74

1

204

148

3

7

86

543

95

79

213

519

236

12

321

1,475

73

79

2

211

524

94

10

288

1,281

* See page 67 of Web version for details on the scope of coverage.* The accounting procedure for fiscal 2006 newly accounted for depreciation costs in environmental

costs (depreciation costs for fiscal 2005 were retroactively accounted for to enable comparison with the previous fiscal year).* Personnel expenses are calculated using the average unit price.

Category

Business area cost

Bre

akdo

wn

Upstream/downstream cost

Administration cost

R&D cost

Other cost

Total

Social activity cost

(Unit: ¥ million)

ElectronicComponents

Capital investment Environmental cost

Electronics Total ElectronicComponentsElectronics Total

2006 2005 2006 2005 2006 2005 2006 2005 2006 2005 2006 2005

31

12

19

132

8

122

2

105

64

41

473

314

82

77

136

64

53

19

605

322

204

79

245

11

65

169

246

13

26

207

457

295

20

142

453

296

8

149

702

306

85

311

699

309

34

356

5

25

16231

11

25

641

6

479

348

201

64

6

864

368

269

130

6

1,475

277

241

60

4

1,281

265

167

56

4

738

20

68

66

611

12

74

4

543

12

117

12

148

Pollution prevention cost

Global environmental conservation cost

Resource circulation cost

Fiscal 2006 performance

1. Environmental conservation cost by business activity 2. Environmental conservation cost by conservation measure3. Economic effects accompanying

environment conservation measures4. Environmental conservation effect

Item by area of measures

Item by area of measures

Global warming measures

Air quality conservation


Waste/recycling

Chemical substances/other

Total

Amount of capital investment Environmental cost

(Unit: ¥ million) (Unit: ¥ million)

Other

Total

Chemical substances

Natural environmental conservation

52

54

13

1

28

148

Main details for current term Main details for current term

Ensuring the power source capacity and conserving energy in power system transformers for production and construction equipment, and installation of highly energy efficient transformers.

Installation of COF2 cylinder cabinets and COF2 mixing devices.

Increasing CVD gas removal equipment to increase the performance of TFT-LCD panels.

Installation of wastewater treatment tanks and neutralization tanks.

Storage warehouses and equipment for recyclablesEvaluation equipment / Installation of a solar water heater on the roof of Casio Electronic Technology (Zhongshan) employee dormitory.

Boiler modifications, air-conditioner renewals

Respond to RoHS Directive survey, trial manufacture cost of lead-free products

Landscape planting within company grounds

Preparation of an environmental report, ISO maintenance and management, WEEE compliance

Global warming measures 95

79

213

519

1,475

321

12

236

Air quality conservation


Waste/recycling

Maintenance and management of exhaust gas treatment equipment

Repair of wastewater treatment equipment

Recovery and recycling of toner and drum sets

<< Capital investment >> << Environmental cost >>

Casio’s environmental efficiency in terms of sales is given below in terms of CO2, waste, and substances specifiedunder the PRTR Law. These indicators have changed due to increased production, but Casio intends to continueimproving them.

Scope of data compilation for environmental accounting: Casio Computer Co., Ltd., and consolidated subsidiaries in and outside Japan.Reference guideline: Environmental Accounting Guidelines 2005, Ministry of the Environment, Japan

Environmental efficiency in terms of sales

Reuse of parts and materials

Recycled amount of used and recovered products, containers, and packaging

Sale of cardboard and scrap metal

Total energy input

Water resources input

Emissions of greenhouse gases

Emissions of substances specified under the PRTR Law

Usage of substances specified under the PRTR Law

Total generation of waste

Total wastewater

Other emissions

Energy consumption during usage

Containers and packaging usage

UnitEffect

Energy cost savings through energy conservation activities

Water and sewerage savings and copy paper purchase savings through resource-saving activities

Waste treatment cost savings through resource-saving or recycling

Business revenue from recycling

Customers effect*3

Other (distribution cost savings through downsizing of products)

Total

FY2006

–184

19

1

263

133

242

21

7

27

Environmental performance indicators

FY2006 FY2005 Difference

CO2

SF6

(Amount sent to landfill disposal)

BOD

COD

NOx

SOx

Soot and dust

Crude oil equivalent (kL)

Thousands m3

Tons-CO2

Tons-CO2

Tons

Tons

Tons

Tons

Thousands m3

Tons

Tons

Tons

Tons

Tons

Thousands GJ

Tons

Tons

17,454

523

41,964

0

1

0

3,422

619

335

11

12

118

30

2

316

13,065

12,390

42,026

2,792

71,518

18,714

208

37

5,105

6

2,169

23

0

20

7

0

0

511

594

15,458

466

40,350

0

16

0

3,085

1,051

256

7

0

83

23

2

317

12,350

11,676

40,357

2,551

69,083

16,551

167

29

4,359

11

1,301

19

0

16

8

1

0

483

607

1,996

58

1,614

0

–15

0

337

–432

79

4

12

35

7

1

–2

715

714

1,669

241

2,435

2,163

41

8

746

–5

868

4

0

4

–1

0

0

28

–13

(Unit: ¥ million)

Electronics Electronic component

Cos

t sav

ings

*1P

rofit

s

Bre

akdo

wn

*2

*1 Cost savings: Adjusted by turnover increase rate.*2 Minus sign: Indicates a negative result.

These are mainly due to increased energy consumption accompanying increased production and the large effect of surges in oil prices.

*3 Customer effect: Environmental effects generated by customers to power saving technology converted to monetary value.

(Difference between annual electrical power usage/consumption for total sold units in fiscal 2005 and fiscal 2006) x Unit price of electrical power



* Some of the calculated results shown in the difference columns in the table may not match due to the rounding of fractions.* CO2 conversions are calculated using the coefficient from the Ministry of the Environment’s Guidelines for Calculating

Greenhouse Gas Emissions from Businesses (2003) and applied retroactively.

Environmental efficiency in terms of sales (CO2)

=Sales (¥ million)

CO2 emissions (tons-CO2)

Environmental efficiency in terms of sales (waste)

=Sales (¥ million)

Waste emissions (tons)

Environmental efficiency in terms of sales (PRTR substances)

=Sales (¥ million)

Usage of PRTR substances (tons)

0

1

2

3

4

5

6

FY2006FY2005FY2004

5.16 5.11 5.11

0

30

60

90

FY2006FY2005FY2004

6675

68

0

1,000

2,000

3,000

4,000

FY2006FY2005FY2004

2,927 3,0552,777

*PRTR substances: Chemical substances specified in the PRTR Law (Law Concerning Reporting, etc. of Release of Specific Chemical Substances to the Environment and Promotion of the Improvement of Their Management)

*Tons-CO2: Various greenhouse gases converted to their CO2 equivalent amount and expressed in tons.

*The CO2 conversion factor has been revised and applied retroactively.

FY2004 FY2005 FY2006Consolidated

sales (¥ million)

CO2 emissions (tons-CO2)

523,528 559,006 580,309

101,374 109,432 113,482


sales (¥ million)

Total generation of waste (tons)

523,528 559,006 580,309

7,884 7,444 8,527


sales (¥ million)

Usage of PRTR substances (tons)

523,528 559,006 580,309

179 183 209

CorporateProfile

CSRHighlights

CSRM

anagement

Casioand

theM

arketCasio

andEm

ployeesCasio

andSociety

Company

Data


Casioand

theGlobalEnvironm

ent

Hiring senior workers

Since 2001, Casio has been operating the Casio Senior StaffProgram (CSP). Its purpose is to provide employees whoreach the mandatory retirement age with employmentopportunities, and to effectively utilize the skills and know-howthat these employees have accumulated within the group.Under this program, employees who reach the retirement agecan register with the group’s personnel dispatch company.The program is designed for retirement-age employees withthe desire to continueworking, and who arehealthy and possessknowledge and skills thatare needed within the group.Starting in fiscal 2007, thesenior staff program hasbeen expanded to all groupcompanies in Japan, andthe opportunities for senioremployees are expected to increase.

Casio and Employees

Casio’s human resource system is based on fairness anddesigned to maximize “Creativity and Contribution,” thecorporate creed. The company continually reviews itspersonnel system, as it seeks to better reflect the changes inthe surrounding environment.

Under Casio’s merit-driven system, employees arerewarded according to the abilities required for their position,irrespective of their academic background, age, or length ofservice. To complement this, Casio’s performance-basedapproach determines the grade and compensation ofemployees based on the results they actually achieve in theirassigned roles. The objective of Casio’s human resourcesystem is to strike an optimal balance between the develop-ment of employees under the merit-driven system, and thegrowth of the company that is facilitated by the performance-based approach.

Human resource system

Casio’s human resource system consists of threesubsystems: the Grade System, Appraisal System andCompensation System.

The Grade System forms the base of Casio’s humanresource system. The Qualification System applies to non-managerial employees, who are promoted based on thegrowth of their ability to perform their duties. The ProfessionalSystem applies to managers and specialists, who are gradedand ranked based on their individual functions andaccomplishments.

In the Appraisal System, employees are evaluated inthree areas, namely, target achievement under management

The Casio Code of Conduct states that, “We respect othersand value cooperation that is free of discrimination. We holdin high regard every individual’s human rights, eliminateharassment, remarks and behaviors that are discriminatory onthe basis of gender, beliefs, religion, ethnicity, social status orphysical handicap, and protect the privacy of individuals.”This is the most important standard for value judgments inCasio’s hiring. Casio adheres to this philosophy and strives tocreate as many employment opportunities as possible.

Casio has also been working to secure jobs internally bybringing in work that had previously been contracted tocompanies outside the group.

Employment Philosophy and Policies

Creating Employment OpportunitiesCasio constantly strives to create opportunities for highly satisfying employment. In all of its interactionswith employees, Casio respects the human rights of individuals and refrains from discrimination basedon gender, disability, or other trait.

Philosophy and Policies

Appointing and Effectively DeployingQualified WorkersCasio has built a sound corporate culture by appointing qualified workers through a fair process, using amerit-driven system and a performance-based approach.

CorporateProfile

CSRHighlights

CSRM

anagement

Casioand

theM

arketCasio

andthe

GlobalEnvironment

Casioand

Employees

Casioand

SocietyCom

panyData

0

1,000

2,000

3,000

FY2006FY2005FY2004FY2003FY2002FY2001

3,008

399 373 354 333 304 362

3,035 3,017 2,960 2,827 2,958

FY2006FY2005FY2004FY2003FY2002FY2001

14.4 15.2 15.116.0 16.3 16.6

8.79.8 10.2

11.4 12.0 11.1

Years

5

10

15

37

19

216

02

10

32

1

30

49

0

10

20

30

40

50

FY2006FY2005FY2004FY2003FY2002FY2001

0

4

8

12

10

6

2

FY2002 FY2003 FY2004 FY2005 FY2006

4

6

89

11

Japan 56%

North America 2%Europe 4%

Asia 38%

Total number of Casio group employees: 12,673

Asse

ssm

ent o

f Job

Per

form

ance

Car

eer

Roa

dmap

Mentor for New Employee

OJT-MAP

Development Evaluation

System

Department Manager Career Training

Career Development

Training

Section ManagerCareer Training

Assistant ManagerCandidate Training

StaffEntry-level

Chief Engineer

Assistant Manager

Supervisor

Senior Staff

Rank 4

Rank 3

Rank 2

Rank 1

Measures to train existing workers to

make them professionals

Measures for proper placement

Training for Selected Employees

Training for Specific Job Grade

Skillselectivetraining

Other

Awardsystem

Off-JTOJT

DivisionManager

Consulting Engineer

Department ManagerSenior

Engineer

Section ManagerAdvisory Engineer

Car

eer

Cha

lleng

e: A

dvan

ced

Car

eer

Cha

lleng

e S

yste

m

Job

Pos

ting

Sys

tem

Assistant ManagerCareer Training

Multi Evaluation System for Managers

New Manager Training

Follow-up Training

New EmployeeTraining

Ski

ll S

elec

tive

Trai

ning

Sale

s Tra

inin

g Sy

stem

for E

ngin

eers

Adva

nced

Tech

nolog

y Sem

inars

/ Lan

guag

e Trai

ning /

Corr

espo

nden

ce Ed

ucati

on

Trai

ning

for E

ach

Dep

artm

ent /

Pro

fess

iona

l Abi

lity

Tech

no P

ower

/ P

resi

dent

’s A

war

d

Pat

ent A

war

d S

yste

m

Employment, by gender (Casio Computer Co., Ltd.)● Male ■ Female

Regularly-scheduled hiring, by gender(Casio Computer Co., Ltd.) ● Male ■ Female

Organization of Casio’s human resources system

Employment of senior workers(Casio Computer Co., Ltd.)

Average number of service years, by gender (Casio Computer Co., Ltd.)● Male ■ Female

Employees worldwide, by region (as of March 31, 2006)

Recruitment Website for applicants with disabilities(Japanese-language)http://www.casio.co.jp/saiyou/career2/policy.html


Employment-related initiatives

Based on the philosophy and policies described above,Casio respects every person’s human rights and individuality.Casio hires individuals who are highly motivated to work,irrespective of their gender, creed, religion, ethnicity, socialstatus, or disability, while responding to changes in theenvironment that surrounds the labor market and society.

In Japan, Casio supports the Charter of Corporate Ethicsfor Screening and Employing New Graduates issued byNippon Keidanren (Japan Business Federation), and helps tominimize the impact on students’ learning caused by themarket tendency to hire them at extremely early stages of thehiring season. In addition, Casio holds its interviews onSaturdays or at other times that are convenient for studentsso that more applicants will have the opportunity to beinterviewed. In fiscal 2006, Casio introduced the followingmethods to promote more student-friendly recruitment:seminars were held to deepen students’ understanding of the

working world; the Casio recruitment Website was updatedwith more content; hiring for specific job types was increased,and interviews were held in various regions. As a result, hiringof women grew dramatically. Casio hired 66 new graduates,including 13 women, who joined the company in the spring of2006. In addition, eight mid-career professionals were hired,including two women.

Hiring persons with disabilities

Casio seeks to hire individuals with the courage, determina-tion, and creativity to take on challenges and realize theirdreams, regardless of any disabilities they may have.Presently there are 50 employees with disabilities working atCasio Computer Co., Ltd. (1.27% of the workforce). However,in order to reach the legally required employment level of1.8% as soon as possible, a five-year plan was established forthe hiring of persons with disabilities. In fiscal 2006, Casioactively promoted activities for sensitivity awareness, includingworkplace training. Consequently, six persons with disabilitieswere hired and joined the company in the spring of 2006.

Casio is also improving its workplace facilities to enableeach and every employee to maximize their abilities andaptitude. Examples of such work include the creation ofaccessible lavatories at both the Hamura R&D Center and theHachioji R&D Center, as well as measures to allow employeeswith disabilities to commute by car to work. Casio will continueto hire persons with disabilities and promote the creation of awork environment that is suitable for everyone to work in.

by objectives, work performance (competency) in their jobtype, and contribution made toward the department. Theevaluation is made on a five-point scale, relative to otheremployees, and the results are reflected in remuneration.Superiors discuss the evaluation results individually with eachemployee in order to seek a high level of understanding.

The Compensation System applies a salary range that isbased on job grade under the principle of a merit-basedcompetitive salary. Pay raises are given in harmony withperformance evaluation and salary levels. Bonuses aredistributed in a balanced way, depending on the evaluation.

Human resource development

Casio has various programs for human resource developmentwith the intention of developing creative employees that areeager to take on challenges and training professionals withearly tracking into specialized fields.

There are two basic types of employee professionals atCasio. One is the strategic generalist that passes on thecompany’s corporate culture. The other is the technicalspecialist that passes on the company’s unique technologyand know-how.

Casio approaches the development of these employeeswith the philosophy that people grow through their work, andthat the source of growth is one’s drive. Based on this belief,Casio supports its employees to grow and improve their skillsby providing them with an environment in which new abilitiesare constantly required. The company also gives employeesopportunities to rise to challenges by relying on their owndetermination and hard work.

For this reason, Casio’s system of human resourcedevelopment is rooted in skills improvement through actualwork, or on-the-job training (OJT). Various supplementarytraining programs, including systematic study of theory, arealso offered as off-the-job training (Off-JT).

many people participated, including employees’ familymembers. Casio has also signed an agreement with a fitnessclub, providing additional opportunities for employees toimprove their health.

Casio is striving to raise the awareness of employeesabout oral hygiene. A column entitled, “Diseases Originate inthe Mouth,” written by the dentist at the head office clinic, ispublished regularly on the company’s internal Website. Inorder to improve and prevent lifestyle-related diseases andobesity, the employee cafeterias provide healthy menuchoices featuring a balance of calories and nutrition.Wellness Fairs are also held at all Casio sites.

Mental health care

In 2000, Japan’s Ministry of Health, Labour and Welfare issueda publication entitled, Guidelines for Promoting Mental HealthCare in Enterprises. Through the holding of special seminarsfor managers, Casio is trying to raise the awareness of mentalhealth issues throughout the company. Employees can alsodiscuss their personal health concerns at the company clinics,or by using the external Physical and Mental Health Hotline.

● Manager Seminars to Promote HealthA special seminar for managers entitled, “Promotion of Healthand the Role of Supervisors,” was held at the head office inMay 2004, at the Hamura R&D Center in November 2004, andat the Hachioji R&D Center in June 2005.

With many managers in attendance, the occupationalhealth physician from the head office clinic gave a lecture,systematically covering diverse subjects, including physicalcheckups, taking steps to be healthy, overwork and healthproblems, duty to pay attention to safety, and mental health.In particular, the doctor stressed the role that supervisorsshould play in the health management of workers.

Prevention of occupational injuries

Casio has been working to achieve zero occupational injuriesand is engaged in safety activities targeting an accident-freerecord at all Casio work sites. In addition, each site and groupcompany conducts fire and disaster prevention/evacuationdrills, as well as automated external defibrillator (AED) classesto ensure emergency preparedness.

On September 12, 2005, a disaster and fire drill was heldat headquarters involving over 200 participants—not only thecompany’s volunteer fire brigade, but also other employees.The drill began with practicing measures for physicalprotection from the initial effects of an earthquake, followedby reporting, fire extinguishing, and evacuation guidance inthe event of street evacuation on foot from all floors of thebuilding. The drill continued with simulation of safetyprotection measures, evacuation from the building by fire-truck ladders, spraying water on the fire by the fire brigadeand pump trucks, and emergency medical treatment.

AEDs were incorpo-rated into Casio’sRegular LifesavingSeminar on March 1,2006. The devices havebeen installed at thehead office and theHachioji R&D Center,and will soon be madeavailable at all sites andgroup companies.

Continued support for achieving a balancebetween work and family

Report by the Special Committee on Measures to Aid theNurturing of the Next Generation of Children

Casio has always worked on establishing various vacationprograms, including child and nursing care leave, so that allemployees may demonstrate their full capabilities in a workenvironment that accommodates their needs.

With the implementation of Law Concerning the Promotionof Measures to Aid the Nurturing of the Next Generation ofChildren in April 2005, Casio set up the Special Committee onMeasures to Aid the Nurturing of the Next Generation ofChildren, in order to further help employees achieve abalance between work and family life. The committee hasestablished the action plan shown below.

Action Plan: April 1, 2005 to March 31, 2007Target 1: To create an environment that encourages

employees to utilize vacation time.Target 2: To create an environment that permits

employees to take time off for child or familycare (leave time or shorter working hours).

Target 3: To enable workers returning from childcareleave to be reintegrated smoothly.

Target 4: To construct a system that reflects the opinionsof employees on this action plan.

In fiscal 2006, Casio promoted the taking of planned paidvacation in order to improve vacation time utilization rates.The company also worked on improvements that reflectemployee needs. Under the shorter working hours system foremployees with childcare needs, the eligibility was extendedto the time that the employee’s child starts elementary school.Time off was also expanded for fathers at the time of theirchild’s birth, and for maternity protection.

In fiscal 2007, Casio aims to further expand the leavesystem based on a dialogue with all employees. Thecompany plans to design systems that take into accountemployee needs, to post information for employees on theWeb, and to educate all managers about support for fosteringthe next generation.

Casio strives to build work environments that are friendly to allemployees so that every person can realize his or her full potential.

As part of this effort, Casio is endeavoring to reduce thetotal annual hours worked by employees. The company isalso expanding support programs that help employees tomeet family obligations, such as taking care of children andother family members, with special consideration for female employees.

Vacations

With the goal of shortening the hours worked by employeeseach year, Casio is promoting an environment and culturethat encourages employees to fully utilize paid vacation time.

In fiscal 2006, an average of 21.9 paid vacation dayswere offered to each employee at Casio Computer Co., Ltd.,and 58.4% of these days were utilized. The average numberof paid vacation days taken was 10.4 full days and 4.8 half days.

Casio also offers a Vacation Day Accumulation Program.Under the program, when an employee is unable to work dueto injury or illness, or the care needs of a family member, partof his or her unclaimed paid vacation days that otherwisewould expire is carried over and made available for use.Furthermore, after each decade of service, employees aregranted an extra five days off.

Child and nursing care leave

Casio established its Rules Concerning Child Care Leave in1996 in accordance with the company’s employmentregulations. The rules are applicable to employees withchildren younger than one year, and have been continuallyupdated in response to changes in laws and the environment.In addition, the Rules Concerning Nursing Care Leave coveremployees who have a family member requiring care. Theserules also have been revised as necessary since theirestablishment in 1999.

employees about their right to participate in the managementof the company. Casio values close communication betweenlabor and management.

At the core of this labor-management communication isthe Group Workers’ Labor-Management Conference, which isheld twice a year in September and February. At theseconferences, opinions from management and labor, togetherrepresenting the entire Casio Group, are exchanged. Inaddition, close communication is maintained at various otherlevels, including the Central Labor-Management Meeting, theDivision Labor-Management Meeting, and the Sales ChapterLabor-Management Meeting.

At the end of fiscal 2006, 4,641 of the 7,135 employees ofCasio Computer Co., Ltd., and its domestic group companieswere members of the labor union.

Casio and Employees

Based on Japan’s Industrial Safety and Health Law, variousother legal requirements, and Casio’s employment regula-tions, the entire Casio Group is dedicated to offering anenvironment that ensures employees can work with peace ofmind. Casio works to maintain and enhance employee healthand to prevent occupational injuries and their recurrence.Similar measures have been adopted at overseas groupcompanies in compliance with the national laws and regula-tions concerned.

Activities of the Occupational Safety and Health Committee

The Casio Occupational Safety and Health Committee wasestablished in accordance with Japan’s Industrial Safety andHealth Law. Meeting on a monthly basis, the committee iscomprised of the company physician, occupational healthmanagers, and representatives of labor and management. It promotes various measures to keep employees physicallyand mentally healthy and to ensure occupational safety. Infiscal 2006, the committee advanced the creation of acomfortable workplace promotion plan, based on theGuidelines for Measures to Be Taken by Employers for theCreation of Comfortable Working Environments, issued byJapan’s Ministry of Health, Labour and Welfare. On January25, 2006, the Casio headquarters received approval as aComfortable Workplace Plan Promoter, and these measuresare now being implemented.

In order to further promote occupational health educationand activities, Casio is training occupational health managers.

At the Hamura R&D Center and the Hachioji R&D Center,Casio is implementing various safety policies through regularmeetings of the Occupational Safety and Health Committees.Just like at the group companies, regular physical examina-tions are provided to employees, and health management isalso promoted by holding mental health seminars.

Promotion of employee health

Casio offers annual physical checkups to all employees. Thecompany is working to increase the number of items coveredby the checkups, and also emphasizes the importance ofsecondary checkups and other follow-up.

There is a clinic (internal medicine and dentistry) at theheadquarters of Casio Computer Co., Ltd., and other majorCasio sites, each one staffed by a full-time doctor who looksafter the health of Casio employees. In July 2005, 924 annualphysical checkups were conducted at Casio headquarters,representing a 100% participation rate by headquarters

employees.Casio held a

Walking Campaign tohelp maintain andenhance employeehealth as well as preventlifestyle-related dis-eases. The campaignwas run at variouslocations betweenSeptember andNovember 2005, and

Policies on Building Positive WorkEnvironments

Building a Supportive WorkEnvironment

Building a Supportive Work EnvironmentCasio is building work environments and systems that permit all employees to demonstrate their full potential.

Basic Philosophy

Efforts on Occupational Safety and HealthCasio is taking various steps to maintain and enhance employee health and prevent occupational injuries.

Wellness Fairs

FY2002 0 0

FY2003 1 73

FY2004 0 0

FY2005 0 0

FY2006 3 13

Number of employees Number of daysFY2002FY2001 FY2003 FY2004 FY2005 FY2006

1619

15

19

2831

0

5

10

15

20

25

30

35

Time off due to occupationalinjuries (last five years)

Employees taking child care leave(Casio Computer Co., Ltd.)

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Communication between Labor andManagement

Through regular communication between management andthe labor union, Casio hopes to raise the awareness of

Fostering young science and technology researchers—Casio Science Promotion Foundation—

Basic research forms the foundation for science andtechnology. The new principles discovered in the realm ofbasic research often end up having an enormous impact onthe wider world. However, since basic research does notproduce any immediate profits, researchers are oftensupported by limited budgets from the government oruniversities. The Casio Science Promotion Foundation isproviding funding for this type of research and therebycontributing to the advancement of science and technology.

The Casio Science Promotion Foundation was establishedin 1982 by the four Kashio brothers, and the late formerchairman, Shigeru Kashio, to contribute to the growth andpromotion of academic research in Japan. The foundation’smain focus is on assisting cutting-edge, creative research inthe early stages conducted by younger researchers. Everyyear, assistance is given to approximately 40 projects. Inaddition, approximately 10 grants are awarded to sendresearchers abroad and 10 more to host research meetings.

In fiscal 2006, 44 research projects received grants,totaling ¥50 million. The recipients included ProfessorTakeyoshi Dohi of the University of Tokyo, Professor MichioUmino of Tohoku University, and Professor Yasufumi Fujiwaraof Osaka University. The grants were awarded to therecipients at the 23rd presentation ceremony held onDecember 2, 2005.

the charity proceeds raised during the tournament topurchase sporting equipment and donated it to localorganizations that serve the welfare of the community.

Casio plans to hold the same kind of tournament in fiscal 2007, with the goal of benefiting the people of the local community.

Beautification and cleanup in the surrounding community

Every April 28, the Shibuya-kuward office holds a generalcleanup in order to helpbeautify the district, with theparticipation of residents andbusinesses in this area ofTokyo. In fiscal 2006, theheadquarters of CasioComputer Co., Ltd., pitched into help clean up and restorethe appearance of the local neighborhood.

Although participation was purely voluntary, 25 headoffice employees from all departments showed up on thatday. In just 30 minutes, the participants were able to gatherup a large amount of garbage from around the head office building.

Starting in fiscal 2006, staff from the Hamura R&D Centerbegan participating in a regular volunteer cleanup activity atthe nearest station, JR Ozaku. The employees at CasioMicronics (Ome) also carry out regular cleanup activities intheir neighborhood. Casio will continue to actively participatein this kind of community activity whenever possible, at allCasio sites.

CASIO WORLD OPEN GOLF TOURNAMENT

The CASIO WORLD OPEN GOLF TOURNAMENT has beenheld since 1981, part of Casio’s social contribution through sport

Starting in 2005, the location of the tournament wasswitched to the Kochi Kuroshio Country Club in KochiPrefecture, Japan—the birthplace of Casio’s founder andwhere Casio has a major manufacturing subsidiary. In orderto convey the enjoyment of golf to a wider range of people,the CASIO WORLD OPEN invited Michelle Wie, the youngfemale golf phenomenon with worldwide fans, to her firsttournament in Japan. Although she played on weekdays,huge crowds filled the gallery in order to see her perform, andthere were also large contingents from the Japanese andinternational mass media. Although Michelle Wie just narrowlymissed making it to the weekend championship round by oneshot, many fans were impressed by the sight of her battlingagainst the top male players.

Casio is making various contributions to the people ofKochi Prefecture, which hosted the tournament.

Casio Computer Co., Ltd., donated digital cameras to thelocal government organizations that helped with the hostingof the golf tournament. A special golf lesson area was also setup for golfers from the tournament to give pointers to localyouth on the proper golf swing. In addition, Casio worked withlocal elementary schools to provide students with a guidedtour of the backstagesites of the tournamentthat are usually closedto the public, includingthe press conferencearea and the televisionbroadcast facilities. Inorder to help promotesport among the localresidents, Casio used

Educational activities with the Tokyo Bureauof Environment

As an effective policy for environmental education andmeasures against global warming, the Tokyo MetropolitanGovernment has been promoting the Kids’ ISO 14000Program, developed by ArTech. Already, 8,700 Tokyochildren are taking part in the program. As a participatingcompany, Casio Computer Co., Ltd., is sending employeeswith instructor certification to actively participate in theprogram, and is developing a wide range of activities. Infiscal 2006, based on a request from the Tokyo Bureau ofEnvironment, Casio made case-study presentations toeducators and company officials responsible for CSR in theTokyo area. In the presentations, along with activities todeepen understanding of the Kids’ ISO 14000 Program,Casio undertook part of an environmental education leaderfollow-up course, and provided a seminar on the importanceof educational activities for children and Casio’s localeducational initiatives.

Casio is actively promoting this kind of social contributioninitiative for local communities, while providing places foryouth to learn resiliency for a meaningful life, and to practiceself-reliance and independence. These activities havereceived the appreciated of the public. Currently, Casio hasreceived requests for classroom visits and factory tours frommany educational institutions around the nation of Japan, andCasio is now preparing to undertake these activities andmake other new efforts. By maintaining close ties with localcommunities, Casio is working hard to foster the society of thefuture, through both economic development and protection ofthe global environment. Teaching resiliency for a meaningfullife to young people forms the foundation of these efforts.

Support for comprehensive studies classes:Visit to Hatashiro Elementary School

On February 10, 2006, the General Manager of theEnvironment Center of Casio Computer, Co., Ltd., visited fifth-graders at Hatashiro Elementary School in Shibuya-ku,Tokyo. He went as a guest teacher to talk about Casio’sefforts to help stop global warming. He spoke to 90 studentsin three classes.

After a video presentation on environmental activities, heexplained the mechanisms behind global warming and thespecific environmental efforts being made on products anddistribution at various Casio sites. This was followed by anopportunity to ask questions. The students enjoyed thepresentation immensely. They were particularly interested inthe samples of eco-products shown to them, such as digitalcameras and solar-powered radio-controlled watches thatexemplify Casio’s compact, lightweight, slim, energy efficienttechnology. The students were all amazed by, and expressedtheir admiration for the products, and continued to askquestions even when the class was over.

Although global warming is a complex issue, Casio heardfrom the students’ teachers that the kids were still talkingabout the presentation for days afterwards. Casio hopes thatthe youngsters are now taking steps individually and withtheir families to help prevent global warming.

Casio and Society

The clover “ ”symbol indicates disclosure and communication activities in the area of social contribution.

Based on its corporate creed of “Creativity and Contribution,”Casio seeks to contribute to society by creating products thatprovide people with joy and wonder.

Casio also leverages its proprietary know-how andmanagement resources for the betterment of society. Casiouses its core competence in compact, lightweight, slim,energy efficient technologies to make unique contributionsthat no other company can.

Rather than merely performing indirect activities such asproviding donations, another important channel of socialcontribution for Casio is to offer the knowledge andexperience of its employees to society.

Through communication with various stakeholders, Casiois constantly assessing its responsibilities as a goodcorporate citizen. Casio is also aware of the importance ofestablishing its own creative social contribution initiatives tofulfill its responsibilities. The company is currently working toenhance its current range of CSR activities.

Casio continues to dedicate itself to social contributioninitiatives in five key areas: (1) environmental conservation toprotect irreplaceable global resources and the environment;(2) education to fulfill Casio’s responsibility to the nextgeneration who are the future leaders of the world; (3) cultureand arts to provide people with joy and wonder; (4) study andresearch that contribute to the development of the cutting-edge science and technology that are indispensable forsociety to grow; and (5) community activities to be a usefulmember of local society.

Casio plans to continue improving its social contributioninitiatives by, for instance, developing mechanisms that focusthe entire group’s efforts, and making them known to thepublic in an appropriate way.

Philosophy on Social Contribution

Contribution to Local Communities

Contribution to Civic Society

Social Contribution InitiativesCasio fulfills the full range of its responsibilities to society by making the most of its proprietary know-howand management resources.

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School visit by Casio

Cleanup around the head office building

Number and amount of research grants awarded byCasio Science Promotion Foundation

Website of the Casio Science Promotion Foundation(Japanese-language)http://www.casio.co.jp/company/zaidan

0

10

20

30

40

50

10,000

20,000

30,000

40,000

50,000

60,000

19th year(FY2002)

20th year(FY2003)

21st year(FY2004)

22nd year(FY2005)

23rd year(FY2006)

Unit: ¥1000Unit: Number of grants

3742 40 39

4449,800

55,640 50,400 50,740 50,000

Number of grants Total amount of grants awarded

Local youth receiving golf lessons


Sponsoring the Nationwide Youth KeyboardContest in China

Casio has been supporting the Nationwide Youth KeyboardContest in China since the Soong Ching Ling Foundation* firstestablished the contest in 1986. To commemorate almost 20years of support by Casio, a delegation from the keyboardcontest including Vice Chairman Chi Liqun of the Soong

Ching Ling Foundation was invited to visit Japan in October2005. As part of this activity, a special China-Japan (Casioand Soong Ching Ling Foundation) keyboard concert washeld at the Casio headquarters. The concert featured 10groups of children aged 9 to 18, who performed solo and inensembles. The delegation also included a reporter from thePeople’s Daily of China, and this cultural exchange waswidely reported throughout that country.

Casio Monetary Fund Committee for Peking University Japan Study

The Casio Monetary Fund Committee for Peking UniversityJapan Study has been established by Casio (Shanghai) Co.,Ltd., in cooperation with Peking University, China’s premierinstitution for education and research relating to Japanesestudies. The goal of this fund is to support the ongoingimprovement of the research and educational level for studiesin Japanese language, literature, and culture.

The fund awards one-time scholarships to students withexcellent academic results in Peking University’s foreign-language program for Japanese language or cultural studiesand professors who have published outstanding academicpapers or research. The awards are designed to furtherpromote research in this field.

On November 9, 2005, aceremony was held to commemorateboth the founding of the fund and toaward the first scholarships. Thescholarships were presented to threestudents and five professors.

Support for the World Children’s Baseball Fair

Since 1992, Casio Computer Co., Ltd., has been supportingthe World Children’s Baseball Fair, which seeks to promotefriendship among the world’s youth.

The baseball fair was initially proposed by Hank Aaronand Sadaharu Oh, home-run kings of the US and Japan. Withthe goals of promoting the spirit of baseball the world overand increasing international friendships between children, thefirst World Children’s Baseball Fair was held in Los Angeles in1990. Since then, around 250 boys and girls from 20 coun-tries worldwide have participated in the event with greatenthusiasm every year.

In 2005, the 16th annual baseball fair was held in GunmaPrefecture from July 28 to August 5. Baseball workshopswere held in addition to cultural exchange activities with localchildren, thereby fostering international friendship.

The promotion of the sporting spirit has becomeincreasingly important for the sound development of youthand the effective utilization of their leisure time.

Through the sport of baseball, children can learn tounderstand eachother better. Bysupporting thisbaseball fair thatfosters friendship,Casio is contributingto the sound devel-opment of youngpeople.

Supporting the Fifth Dolphin & Whale Eco-Research Network Project

Since the International Dolphin and Whale Conference held in1994, Casio Computer Co., Ltd., has been working with theInternational Cetacean Education Research Center(I.C.E.R.C.) of Japan to support educational and researchactivities involving dolphins and whales. In 2005, thecompany participated in the Fifth Dolphin & Whale Eco-Research Network Project., Casio provided support for theI.C.E.R.C. exhibit* at Expo 2005 Aichi, Japan, (NGO GlobalVillage) and the realization of better dolphin and whalewatching activities in Japan.

Casio is also promoting public awareness of I.C.E.R.C.activities by setting up a dolphinand whale display at theCetacean, Casio’s pilot retailshop in Odaiba, Tokyo, and bysending out the organization’sfree paper to the retail stores ofCasio Distribution. * Joint exhibit with Japan EnvironmentalAction Network (JEAN), from August 1to 31, 2005.

Supporting the Teacher’s Business Training Program

This year Casio once again participated in the Teacher’sBusiness Training Program, sponsored by the Keizai KohoCenter (Japan Institute for Social and Economic Affairs), inorder to promote communication between the worlds ofbusiness and education.

This program provides elementary, junior high and highschool teachers an opportunity to experience corporateactivities and share their experience and what they learnedwith students in the classroom. Started in 1983, the programplaces teachers with participating corporations during theirsummer breaks. In recent years there has been increasinginterest in this kind of training in the education sector. Thebusiness sector and the general public have also becomeinterested in companies’ cooperative effort to provide trainingfor teachers, as a way to fulfill their CSR.

During a three-day training course from August 3 to 5,2005, Casio welcomed seven elementary and middle schoolteachers from Tokyo and Hyogo Prefecture. It marked Casio’ssecond consecutive year of participation in the Teachers’Business Training Program.

The teachers received training from frontline employeeinstructors at the Casio head office and the Hachioji R&DCenter. The course also included a lively exchange ofopinions and ended as a complete success.

The teachers who participated were surprised at the waya private company like Casio is putting its energy intoenvironmental activities, while pursuing its business withgoals and dreams. They werevery pleased with what theylearned in just three days,saying that they would applythis new knowledge in theclassroom. The participantsalso expressed a desire to hearfrom female managers at Casionext time, and to do more

hands-on activities rather than just classroom learning. Casiowill apply the feedback in planning next year’s activities.

Casio and Society

Contribution to the InternationalCommunity

Social Contribution Initiatives

Major social contribution initiatives in fiscal 2006

Major donations in fiscal 2006

G-SHOCK model to support theDolphin & Whale Eco-ResearchNetwork

Program for teachers

Scholarship award ceremony

World Children's Baseball Fair

Traffic safety

Environment

Social education

Social education

Social education

Welfare

Cooperation with a traffic safety campaign Street activities during the national traffic safety weeks in the spring and the fall.

Product disassembly, parts sorting and other types of light work are offered on a contract basis.

Occasionally some local high school students are provided work experience at Pt. Asahi Electronics Indonesia.

Casio Information Systems Co., Ltd.

Category Theme Content

Casio Computer Co., Ltd.



Casio Group

Casio TechnoCo., Ltd.

Casio (Thailand)Co., Ltd.

Pt. Asahi ElectronicsIndonesia

Kochi Casio Co., Ltd.

Kofu Casio Co., Ltd.


Hosting interns

Company tours

Classroom visits

Cleanup Day

Beautiful Yamagata and Mogami River Forum

Training local high school students

Participation in blood donation drive

Training students as part of university programs

Jobs offered to physically or mentally disabled persons

Nikkei Education Challenge 2005

As part of occupational education activities, actively participated in planning as a corporate participant in university internship programs and hosted 21 interns in fiscal 2006.

Provided company tours for 281 students from 16 schools in fiscal 2006, as part of comprehensive studies classes and school excursions.

Visited Fuchu Dai 4 Elementary School, and gave presentations to about 100 students, teachers, and parents concerning the fun and difficulty of creating products.

Cooperating with the local people, NPOs, universities, and government agencies to support cherry tree planting and maintenance along Mogami River.

Support for the Nihon Keizai Shimbun’s high school education program in economics and industry. Dispatch of employee instructors.

Providing practical training to students as part of university programs (for two or three months). About ten students per year receive practical training at Casio (Thailand).

In fiscal 2006, 189 employees at the head office and 264 employees at the Hamura R&D Center participated.

In fiscal 2006, 140 employees participated in the twice yearly cleaning of the areas around a company site, and the route between the site and nearby Higashi Hanawa station.

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Implementing organization

* With the goal of helping underprivileged children across China, the Soong Ching Ling Foundation was established by the wife of SunYat-sen, Soong Ching Ling, also famous as one of the three Soong Sisters in Japan. The organization is highly respected by the generalpublic and the government for its activities, which have produced many outstanding instructors and students across China.

Environment

Education

Culture and arts

Local communities

Disaster relief

International exchange /cooperation

Social welfare

Healthcare

Support for the “Think the Earth Project” FY2006

Donation to the Japan Industrial Waste Management Foundation

Donation to the Keidanren Nature Conservation Fund

Support for WWF Japan (World Wide Fund for Nature Japan)

Support for the International University of Japan

Scholarship provision

Support for the NHK Symphony Orchestra

Support for the Tokyo Philharmonic Orchestra

Sponsorship of the Fruit Nation Higashine - Cherry Marathon

Cultivation of tulip bulbs and Ohga lotus for the preservation of fallow rice fields

Contribution to the victims of Hurricane Katrina

Contribution to the victims of the Pakistan earthquake

Sponsorship of the Friends Association, MAISON DE LA CULTURE DU JAPON À PARIS

Donation to the fund for rehabilitation of disabled persons

Donation to the Japanese Foundation for Cancer Research

Support for PH-Japan

Think the Earth Project (NPO)

Japan Industrial Waste Management Foundation

Keidanren Nature Conservation Fund

WWF Japan (NGO)

International University of Japan

Costco Scholarship Fund

NHK Symphony Orchestra

Tokyo Philharmonic Orchestra

City of Higashine

City of Hamura

Japanese Red Cross Society, etc.

Japanese Red Cross Society

Friends Association, MAISON DE LA CULTURE DU JAPON À PARIS

A FUND FOR REHABILITATION OF DISABLE PERSONS

Japanese Foundation for Cancer Research

PH-Japan (NPO)






Casio, Inc.





Casio Group

Casio Group


Casio (Thailand) Co., Ltd.



Category Project title Donation recipient Implementing organization

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Casio Corporate Report 200646 Casio Corporate Report 2006 47The clover “ ” symbol indicates disclosure and communication activities in the area of social contribution.

The clover “ ” symbol indicates disclosure and communication activities in the area of social contribution.


Sales, by region(FY2006)

Consolidated business results

Total assets (Unit: ¥ million)

In order to deliver products to customers in all parts of theworld, Casio has development, manufacturing, and salescenters across the globe with a focus on four majorregions: Japan, North America, Europe, and Asia (exclud-ing Japan). R&D and electronic component manufacturingare performed in Japan, while other manufacturing facili-ties are located mainly in other parts of Asia. As foroverseas sales, Casio, Inc., handles the North Americanmarket, while Casio Electronics Co., Ltd., Casio EuropeGmbH, Casio France S.A., Casio Benelux B.V., CasioScandinavia AS, and Casio Espana S.L., handle Europeansales. In other regions, distributors have been set up tohandle direct and indirect exports to these markets.

Asia and other16.8%

Japan 59.4%

Overseas40.6%

Europe 13.6%

North America 10.2%

Name: Casio Computer Co., Ltd.Established: June 1, 1957Headquarters: 1-6-2 Hon-machi, Shibuya-ku, TokyoPresident & CEO: Kazuo Kashio

Paid-in capital: ¥41,549 millionEmployees: 3,320 (non-consolidated)

12,673 (consolidated)Consolidated companies: Subsidiaries (Japan and overseas) 56

Equity-method affiliates (Japan andOverseas) 4

0FY2003 FY2004 FY2005 FY2006

100,000

200,000

300,000

400,000

500,000

600,000

440,567

523,528559,006 580,309

0

5,000

10,000

15,000

20,000

25,000

5,647

14,176

21,53423,745

FY2003 FY2004 FY2005 FY2006

5,647

14,176

21,534

0

100,000

200,000

300,000

400,000

500,000

600,000

459,113495,743 501,960496,039

FY2003 FY2004 FY2005 FY20060

50,000

100,000

150,000

200,000

131,957144,403

162,271

191,011

FY2003 FY2004 FY2005 FY2006

0

5,000

10,000

15,000

20,000

25,000

11,168

16,213

19,71117,782

FY2003 FY2004 FY2005 FY20060

3,000

6,000

9,000

12,000

15,000

11,481 11,637 12,140 12,673

FY2003 FY2004 FY2005 FY2006

Casio Europe GmbH

Casio Scandinavia AS

Casio Electronics Co., Ltd.

Casio Benelux B.V.

Casio France S.A.

Casio Espana S.L.

Casio Singapore Pte., Ltd.

Casio (Thailand) Co., Ltd.

Casio India Co., Pvt., Ltd.

Casio, Inc.

Casio Canada Ltd.

Casio Korea Co., Ltd.

Casio (Shanghai) Co., Ltd.

Casio Taiwan Co., Ltd.

Casio Electronics (Shenzhen) Co., Ltd.Casio Computer (Hong Kong) Ltd.

Casio Electronic Technology (Zhongshan) Co., Ltd.Casio Electronics (Guangzhou) Co., Ltd.


Casio Electronic Manufacturing Co., Ltd.

Shin Nihon Casio Information Co., Ltd.

Kochi Casio Co., Ltd.

Kofu Casio Co., Ltd.

SEIYO Electronics Corporation

Casio Computer Co., Ltd. - Headquarters

Casio Computer Co., Ltd. - Hamura Research & Development Center

Casio Computer Co., Ltd. - Hachioji Research & Development Center

Casio Techno Co., Ltd.


Casio Information Systems Co., Ltd.

Casio Electronic Devices Co., Ltd.

Casio Soft Co., Ltd.

Casio Support System Co., Ltd.

Casio Hitachi Mobile Communications Co., Ltd.

Casio Communication Brains, Inc.

Casio Entertainment, Inc.

Casio Marketing, Inc.

Casio I-net Solution Co., Ltd.

Casio Business Services Co., Ltd.

Mas Inc.

Photohighway Japan Co., Ltd.

Capital investment (Unit: ¥ million)

Net income (Unit: ¥ million)

Shareholders’ equity (Unit: ¥ million)

Employees (Unit: persons)

Casio Network

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

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

Company Data

Net sales (Unit: ¥ million)

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