C o rp o r at e p hi l o sophy

We SANYO DENKI make the dreams of people

come true for the happiness of people
in cooperation with people.

To carry out the corporate philosophy, we do the following

For society and the natural environment we will help preserve the global
For Environment... environment and contribute to the prosperity of mankind through
our corporate activities.

For customers and users we will create new values through technology,
For Customers... products and services.

For suppliers and vendors we will strive for integrated technical

For Suppliers... development and harmonious mutual prosperity through parts
purchase, production contracting and joint development.

For investors and financial institutions we will increase our investment

For Investors... worth and credit through sound management policy and good access
to information.

For competitors and the industry we will strive to build industrial and
For Competitors... technical development through technical alliances and competition.

For all of our employees we will help individuals to achieve

For Employees... self-fulfillment through their work and the company.

Contents

Message from the Major Operating Officer 2

Environmental Policy and System 3
Environmental Management System 4
Activity Report for Fiscal 2012 5
Energy Saving 6
Environmental Accounting 8
Product Development 9
Chemical Substance Management 11
Reuse & Recycling 13
For Local Communities and Employees 14
Goals for Fiscal 2013 and Challenges for the Future 16
Activities at Offices and Works 17
Environmental Managers 18
Data on Air Quality, Water Quality and Noise 19
Business Profile and Company Profile 20

Scope of the report

Organizations covered by the report: The Head Office, the Technology Center and factories in Japan (Kangawa Works, Shioda Works and Fujiyama Works)
Period covered by the report: Fiscal 2012(from April 1, 2012 through March 31, 2013; more recent information is included in the Environmental Topics section)

1
Message from the Major Operating Officer

Thank you for your continued understanding and cooperation in our business activities.
In fiscal 2013, our company launched our Seventh Medium-term Management Plan toward the realization
of our new dream. The plan is to become a “global SANYO DENKI” and build the world's leading brand. As a
company, we must fulfill our social responsibilities in society, and particularly our environmental responsibilities,
which is a foundation on which to build a world-class top brand.To promote our business activities and fulfill our
social responsibilities, our environmental activities are incorporated into our business framework so that our
business itself is directly linked to the environmental activities. We also are making efforts to clarify the environ-
mental impact of our business activities for the purpose of global environmental conservation.
Last year, a feed-in tariff system for renewable energies entered into force, and the demand for photovoltaic
power (PV) generation systems has been rapidly growing. To meet the increasing demand, we are enhancing
production of PV Inverters. We have introduced a 150kW PV power generation system at both our Kangawa
Works and Fujiyama Works, and the generated power is being used in those factories. We plan to install more
systems in the future.
What energy means and how people consider energy use are changing. We are entering an era of energy
saving and energy management, in which we will increasingly use renewable energies, fuel efficient vehicles, ex-
panded electric mobility, use of accumulators, leveling of electric power, use of regenerative power, and energy
management using peak-cut or grid devices. We believe we can contribute to better energy use by incorporating
the power conversion and power leveling technologies we have been developing for many years into our future
products.
Our company has also introduced a reduction management system for direct resources, including power con-
sumption, copier paper, waste, etc., at various locations. For development of new products, we established an
environmental assessment standard to identify products satisfying certain assessment criteria as “Eco Products.”
Basically, all new products are designed to be certified as Eco Products. Eco Products are designed to be environ-
mentally-friendly.This will not only enhance the competitiveness of our products, but also help our customers to
be involved in reducing the global environmental impact. We have introduced a number of Eco Products featur-
ing low power consumption, high precision, high performance, and long life.
In fiscal 2013, factory buildings at our Fujiyama Works were refurbished, and a part of the Shioda Works were
integrated into the Fujiyama Works. Our Head Office is also scheduled to relocate. Environmental changes due to
such integration and relocation will be monitored. We actively promote and conduct environmental preservation
activities. We believe that management transparency through disclosure of environmental information is impor-
tant, and is part of our responsibility to society. These environmental preservation activities reduce the environ-
mental impact over our product’s life cycles, and reuse of resources leads to reduction in total energy use.
Thank you for your understanding and cooperation in our efforts towards environmental management.

Director and Major Operating Officer

Nobumasa Kodama

2
Environmental Policy and System

Environmental Policy System

It has been 13 years since the Environmental Committee was established

Basic Philosophy
in April 2000. The committee has been working to maintain a level of
SANYO DENKI helps preserve the global environment and enhance the
energy saving and waste reduction in factories since fiscal 2004. In
mankind's prosperity through its corporate activities for the society and
addition to reducing environmental burdens, the committee is also
the environment.
striving to reduce the volume of hazardous chemical substances and
develop Eco-products to achieve its major environmental management
Basic Policy
goals.
SANYO DENKI CO., LTD., comprising Kangawa Works, Shioda Works,
Fujiyama Works, Technology Center and Head Office, develops,
designs, manufactures and sells cooling fan, UPS, power conditioner
for photovoltaic generation system, engine generator, servo system,
Major Responsibilities of the Environmental Committee
1. Formulation of policies on environmental conservation activities, and
stepping system, controller, encoder, and driving device. Under the
reporting and instructions on the same
principles listed below, each member of SANYO DENKI will take
2. Formulation and enforcement of company rules and procedures (including
part in eco-friendly activities to help preserve the abundant global
company-wide environmental manuals) concerning environmental
environment.
conservation activities
1. We will continuously improve the environmental management system
3. Promotion of environmental conservation activities at the head office,
and work hard to prevent pollution and reduce the environmental
factories and branch offices through those in charge of environmental
impact of our activities.
management
2. We will assess the environmental impact of our corporate activities
4. External contacts concerning company-wide environmental conservation
and focus on our environmental objectives and targets.
activities
We will also deal with the following as high-priority themes for
5. Surveys on social situations relating to environmental conservation
environmental management.
activities
(1) Develop, design, manufacture, and sell environment-friendly products
(2) Reduce or eliminate the use of hazardous chemicals
(3) Reduce the environmental impact (energy consumption, number of
copies, waste, etc.) of business activities
(4) Contribute to the local community
3. We observe environmental laws, restrictions and other rules
agreed upon by organizations and work hard for environmental
preservation.
4. We document, carry out and maintain our environmental principles,
make them known to all our employees, and ask that our employees
both cooperate in the pursuit of these principles and reflect them in
our environmental management.
5. We will review the environmental management system periodically.
6. We will openly publicize the environmental principles to parties in
and outside the company.

Environmental Committee

1.

2.

1
2
3

4
3.

4.

5.
6.
2000 7 1
2009 10 1

Environmental policy brochure

3
Env ir o n m e n t al M anagement Sys tem

Scheme of Environmental Management System

PLAN DO
Setting goals and targets Implementing the plans in
and making plans based accordance with rules
on environmental policies and procedures

Continuous
improvements

ACTION CHECK
Checking and recording
Improving deficiencies and
results based on accurate
reviewing the system measurements, and
checking the system
operation
through monitoring

Position of the Environmental Organization Chart for Environmental

Committee and Its Organization Management System

Board of Directors Environmental Committee

Environmental Committee General environmental manager

Internal auditing Head Office

Eco-product Development Subcommittee Environmental manager

Energy Saving Subcommittee Secretariat Technology Center

Environmental manager

Waste Reduction Subcommittee Kangawa Works

Environmental manager

Chemical Emission Reduction Subcommittee Shioda Works

Environmental manager

Working Groups Fujiyama Works

Lead-free Soldering Working Group Environmental manager
Hazardous Chemical Reduction Design
Working Group

Eco-product Development Subcommittee

The subcommittee promotes the development of competitive products designed to protect the environment in accordance
with eco-design standards.
Energy Saving Subcommittee
The subcommittee promotes energy saving through its daily activities for the environmental management system. It also
formulates long-term energy savingstrategies and proposes cost-effective investments.
Waste Reduction Subcommittee
The subcommittee works to reduce waste and disposal costs and achieve zero emissions.
Chemical Emission Reduction Subcommittee
The subcommittee strives to reduce emissions of hazardous chemical substances and minimize environmental pollution via
self-management. It also works to promote the use of lead-free soldering and lead-free electric wires, reduce hazardous
chemical substances, and develop measures for PRTR (pollutant release and transfer register).

4
Ac ti vit y Re p or t for F i scal 2012

We developed 18 new certified Eco-products in this fiscal year

and were also able to raise the sales ratio for Eco-products to 31.4%.
We achieved a 99.1% level of zero emissions for the company as a whole.

Activity Goal for fiscal 2012 Track record in fiscal 2012

Eighteen new products certified as

Promotion of eco-designing Creation of Eco-products
Eco-products

Sales activities Sales ratio of Eco-products: 50% or higher Sales ratio of Eco-products: 31.4%

Use of lead-free soldering Lead-free solder usage in each division is now

nearly 100%, and we will continue promoting this
Development of products with
Reduction of hazardous effort in the future. Almost all models of cooling
reduced amounts of RoHS-6 hazardous
fans, stepping motors and servo motors now
chemical substances substances
comply with the RoHS-6 hazardous substance
Reduction of substances defined in the directive. Other models are being brought into
PRTR Law compliance upon request.

Kangawa Works 5% 25%

Shioda Works 20% 33%

Reduction in power
Fujiyama Works 11% 23%
consumption
Technology Center (5%) (7%)

Head Office 9% 12%

A-type heavy oil : 261kl

21% 16% A-type heavy oil : 277kl
* Total of the Shioda and Fujiyama Works

Reduction in fuel LPG : 38,000m3N

49% 50% LPG : 41,400m3N
consumption * Total of the the Technology Center

Town gas : 690,000m3N

3% 12% Town gas : 623,000m3N
* Total of the the Kangawa Works

Kangawa Works (40%) (20%)

Shioda Works (9%) 23%

Reduction in the use of
Fujiyama Works 26% 24%
copying paper
Technology Center 27% 19%

Head Office 41% 43%

Kangawa Works (15%) 15%

Shioda Works 6% 15%

Reduction of waste Fujiyama Works 52% 56%

Technology Center 27% 47%

Head Office 49% 50%

Contribution to Cleaning of areas around the Head Office,

the Technology Center and the factories Goal achieved
local communities conducted more than once every month

Raising the company-wide waste recycling rate

Promotion of zero emission Company-wide rate: 99.1%
99.0% or higher.

Notes: 1. The reduction rate is calculated using fiscal 2000 as the base year, except for electric power and town gass, for which fiscal 2006 and 2010 were used as the respective base years.
2. Figures in parentheses indicate increases.

5
En e r g y S aving

Specific Energy-Saving Measures

As a countermeasure against global warming, we consider the restriction of CO2 emissions through energy-saving activities as our
top-priority task, and are promoting improvement of energy use efficiency and energy saving activities. In fiscal 2012, as compared
with the previous fiscal year, electric power consumption dropped as the result of decreased output, and CO2 emissions were reduced
as well. The unit cost for output remained almost the same.

Results of introduction
We selected and introduced a hybrid system product to replace the hydraulic pumps on the cooling fan blade assembly line at our
Fujiyama Works. Electricity consumption was reduced by cutting power while the pumps were idle.
We developed and introduced in-house electrical equipment using our own servo motors instead of the former hydraulic method.
Electricity consumption was subsequently reduced.
We analyzed equipment operating states using the energy management system newly introduced in the Kangawa Works to reduce
unnecessary power consumption of systems and equipment.

Fujiyama Works Kangawa Works

Hydraulic pump for cooling fan blade assembly line Factory equipment installation

Energy consumption measured in

terms of the amount of CO2 Consumption value per production value
CO2 emissions per yield (Million yen) (10 thousands of yen/millions of yen)
CO2 (tons) of 100 million yen
117

34 111
398
382 378 375
34
31 58 60
27 59
26 26 26 8 16
12,499 28 298 7 7 19 20
35 28 8
11,551 26 29
1,987 113 12
2,014 10,678
701 7 93
9,024 1,884 26 96 101
8,697 701 100
880 1,210 751
597 25 88 25
1,408 23 24
85
21 83
7,217 9,811 8,836 8,043 159
6,391 152 142
110 136

09 10 11 12
09 10 11 12 Electricity (Fiscal)
(Fiscal) Kangawa Works Shioda Works Fujiyama Works
Electricity A-type heavy oil Other Unit energy Technology Center Head Office A-type heavy oil Others Consumption per uni
consumption

Power consumption A-type heavy oil

(10,000 kWh) (10,000 m3N)

300

250

200

150

100

50

09 10 11 12 (Fiscal) 09 10 11 12 (Fiscal) 09 10 11 12 (Fiscal)

6
En e r g y S aving

Energy Saving Measures Implemented in Manufacturing Processes at Factories

Works Measures implemented Effect

(1) Cut down unnecessary lighting in warehouses and on equipment (1) Savings in commercial electricity
Kangawa (2) Lower air-pressure setting (2) Savings in commercial electricity
Works (3) Repair air leaks (2) Savings in commercial electricity
(4) Promote use of solar power (4) Savings in commercial electricity

(1) Affixing calendar timers to machines (1) Savings in electricity by preventing switches from being left on
(2) Redesigning of mounter programs (2) Savings in electricity by reducing the production cycle time
Shioda (3) Miniaturize the equipment to be newly installed (3) Save energy through miniaturization of heater capacity
Works (4) Systematic operation of boilers according to weekly (4) Control of use of A-type heavy oil
calendar timers

(1) Stop use of unnecessary lighting (1) Savings in electricity by reducing lighting hours
(2) Adjustment of the operation time of air conditioners (2) Savings in electricity by reducing operation hours,
Fujiyama (3) Shift the operating hours of production equipment Reduce the consumption of A heavy oil
Works (4) Adjust the operating hours of loading equipment for test (3) Savings in commercial electricity
(5) Promote use of solar power (4) Saves electric power by reviewing the test run time
(5) Savings in commercial electricity

Solar panels at Kangawa PV Inverter at Fujiyama Works

Transportation

Our company is using zero-emission electric automobiles as well as vehicles that comply with the regulations on diesel car exhaust in
seven municipal communities to transport supplies between factories, in order to reduce the environmental burden. A company-wide
“ Stop Idling” campaign is also under way.

Signboard for idling stop Vehicle that complies with the Electric automobiles Vehicle that complies with the
regulations on diesel car exhaust regulations on diesel car exhaust
in seven municipal communities

7
Environmental Accounting

Sanyo Denki has been employing an environmental accounting system Performance in fiscal 2012
since fiscal 2003 with the aim of implementing efficient and effective 1)Environmental Conservation Costs
measures for environmental conservation. We measure the costs Environmental Conservation Costs in fiscal 2012 were 999 million yen
required for environmental conservation in our business activities and in total: 119 million yen for Investment and 880 million yen for Costs and
the effects produced by these activities using quantitative indicators Expenses. As for Investment, we not only spent money on company-
(measured in terms of monetary units or physical quantities) and owned electric vehicles as a Global Environmental Conservation Cost,
analyze these costs and effects in order to improve the efficiency and but also spent R&D money in order to develop Eco Products. As for
activity levels of environment management. Costs and Expenses, R&D costs and Management Activities costs
posted the high rates of 64.4% and 23.7%, respectively.
2)Environmental Conservation Effects
Due to decreases in production output of some factories,
effects concerning Resources Used for Business Activities became
positive, except for Consumption of Heavy Fuel Oil A and Light Oil
Consumption. In particular, Introduction of Energy has reduced CO2
“Environmental Accounting Guidelines” published by the Ministry of the
Environment, Format for publication C emissions by 842t, and electric power consumption by 1.73 million
Data range (company-wide) kWh, as compared with the previous fiscal year.
Period covered: April 1, 2012 to March 31, 2013 3)Economic Effects
Due to decreases in production output of some factories, Reduction in
Expenses by Energy Saving has decreased about 25% year-over-year
to 3 million yen. Meanwhile, profits from sales of valuable resources
were 70 million yen, down about 30% from the previous year.

Environmental Conservation Costs (In thousands of yen)

Category Details of major activities Investment Cost

Air pollution prevention (measurement of smoke and soot)
1. Pollution prevention costs Water pollution prevention (inspection of wastewater treatment tanks, 0 20,419
extraction of sludge, sewage disposal, etc.)
(1) Costs within the area of business 2. Global environment
conservation costs
Periodical electricity checks 21,870 24,428

3. Resource recycling costs Reduction of waste, recycling, and proper waste disposal 0 41,586
Total of items 1 through 3 21,870 86,433
Green procurement of office supplies and commissions
(2) Upstream and downstream costs
for refurbishing and reconditioning product
0 14,921
Development and operation of the EMS and
(3) Administration costs
environmental training for employees
0 208,942
Development of Eco-products (such as testing equipment
(4) R&D costs
and making molds)
97,398 566,745
Annual membership fee for the Japan environmental
(5) Social activity costs
management association for industry, and other fees
0 3,252

(6) Environmental damage measure costs Assessment of soil contamination, and expenditures 0 0
Total 119,268 880,293
Expenses include depreciation of facilities and personnel costs.

Effects of Environmental Conservation

Indicators for the effects of environmental conservation
Classification Indicators for
environmental burdens Indicators Indicator value (Note1)
Energy consumption measured in terms
of the amount of CO2 : 842 tons of CO2
Electricity consumption : 1,730,000kWh

A-type heavy oil consumption: 30.5kL

Decrease in energy consumption LPG consumption: 28.3t

Input of energy Kerosene consumption : 10.6kL
Effects on resources input for
Light oil consumption : 19.6kL
business activities
Town gas consumption : 65,800Nm3

Gasoline consumption : 0.4kL

Increase in the percentage of renewable energy in total Photovoltaic power generation : 0.31%
energy consumption (company-wide)
Input of water Decrease in water consumption Water consumption : 4,300m3

Input of other resources Decrease in the input of other resources Copying paper consumption : 90,000 sheets
Decrease in the total discharge of waste and other materials Total discharge of waste : 934t
Effects on environmental
burdens due to emissions Discharge of waste Increase in the percentage of recyclable materials in the
Recyclable materials and useful materials: 0.79%
and waste produced by and other materials total discharge of waste
business activities
Decrease in the discharge of hazardous waste Discharge of hazardous waste : 1.9t

: Triangles indicate that there was no difference compared to last year.

(Note1) If the measure of the amount will be stated as the difference between the amount of the reference period compared with the year.

Economic effects of environmental conserving measures (substantive effects) (In thousands of yen)

Classification Amount
Profits Sales of useful materials 70,520
Reduction of costs by energy saving 3,350
Reduction
of costs
Reduction of waste disposal costs by recycling 925
Reduction of expenses for copying paper 886
: Triangles indicate that there was no difference compared to last year.

8
Product Development

Number of Products Certified as Eco-products

Eco-products (Total Number of Products in All Divisions)

Efforts for designing Eco-products 200

As for product design, we are carrying out R&D to incorporate the 169
latest energy-saving technologies into our new products. At the same 151
150
time, we carry out product assessments to evaluate the environmental 131
impact of products at each stage, such as component and material 114
procurement, manufacture, distribution, use, recycling, and disposal. 97
100
Newly developed products are compared with commercially available
and existing products and are certified as Eco-products (Eco-design
products) if they satisfy the specified evaluation standards. In fiscal 50
2012, Eco-products were made up of a total of 169 types .
Eco-products are presented in catalogues and other materials with
"LEAF symbols." 0
08 09 10 11 12 (fiscal year)

LCA implementation rate

%
%
100
94 94
88 88 90

80

60

Life Cycle Assessment (LCA) 40

LCA is one of the techniques used to provide a general quantitative
measure of levels of environmental impact, including global warming,
20
and evaluate the impact of products through their life cycles. We evaluate
the environmental compatibility of a product using this method. Our rate
of implementing LCA in our Eco-products has been about 90% since fiscal 0
08 09 10 11 12 (fiscal year)

2007.

Life Cycle Processes Reviewed in LCA

Natural environment
CO2 energy Life cycle processes reviewed in LCA CO2 energy
Processing Processing
of parts of products
Transportation
Manufacture Reuse and distribution
of materials
Recycling
User
(material, chemical or thermal)
Final disposal
Collected
and repaired
Selected
Disassembled
Crushed
CO2 energy CO2 energy

Effects on the natural environment (global warming) are assessed at each stage of the life cycle,
based on the energy consumption and the amount of CO2 emission.

9
Product Development

Representative Eco-products of Fiscal 2012

Results of LCA
Eighteen new Eco-products were developed in 2012. We will present the results of the LCA of three representative products. The results are based on
a comparison of the amounts of CO2 emitted during the time of use between newly developed models and their immediate predecessors. Since these
products are used for a long time, the reduction of CO2 emitted during the time of use will be effective in preventing global warming. The following
results show the CO2 emission volumes for one year (result of LCA divided by the service life of a product).

32×32×28mm Low Power Consumption Fan Comparison of CO2 emission

"San Ace 38" GA type

35

Features
30
Reduces power consumption by about 35% as Reduction by 19%

Annual CO2 emissions (kg)

compared with conventional models 25
Achieves noise reduction of 1.5dB(A)
Compliant with RoHS 20

15
Models compared for LCA
New model : 9GA0.12P7J001 10

Existing model : 9GV0312P3K01

5

0
Existing model New model

LAN interface card Comparison of CO2 emission

Features 0.03

Enhances security (supports SSL)

Reduces the mass by about 42% as compared with
Annual CO2 emissions (kg)

conventional models Reduction by 72%

Reduces the substrate size by about 45.5% as compared with 0.02
conventional models
The conductive noise of the LAN port is compliant with VCCI
Class A

0.01

Models compared for LCA

New model : PRLANIF003
Existing model : PRLANIF001
0.00
Existing model New model

220 mm sq. AC servo motor "SANMOTION R" Comparison of CO2 emission

Features 1800

Shorter by 17% as compared with conventional models Reduction by 19%

1600
Reduces power consumption by 18.6% as compared with
Annual CO2 emissions (kg)

conventional models 1400

Compliant with RoHS
1200

1000

Models compared for LCA 800

New model : R2AA2215KB
Existing model : Q2AA2215KR 600

400

200

0
Existing model New model

10
C h e m ical S ub st ance M an agem ent

Promoting Green Supplies

Establishment and Use of Chemical Substance Management An examination of hazardous chemical substances contained
Guidelines in our products is under way based on the Chemical Sub stance
In August 2005 we established our Chemical Substance Man- Management Guidelines.
agement Guidelines for the management of hazardous sub- Our company guidelines concerning China RoHS and coun-
stances, concerning parts and materials used for our company’s termeasures for substances banned by the revised RoHS Direc-
products. tive and REACH have been disseminated inside our company.
Our Chemical Substance Management Guidelines provide man- Using an X-ray fluorescence analyzer (XRF), six RoHS sub-
agement rules concerning substances specified in various laws stances contained in materials are being analyzed.
and regulations, such as substances whose use is restricted or SVHC materials (high-concern materials: 138 substances)
prohibited by the RoHS Directive, SVHC (high-concern material) listed in REACH are being investigated to provide information
in REACH, substances banned by domestic and foreign legisla- for our customers.
tion, and substances designated by the Japan Green Procure-
ment Survey Standardization Initiative (JGPSSI).
We keep these guidelines up-to-date by making necessary revi- *RoHS Directive (DIRECTIVE 2011/65/EU OF THE EUROPEAN PARLIA-
sions in response to changes in relevant laws and regulations. MENT AND OF THE COUNCIL of 8 June 2011 on the restric tions on use
(Revisions were made twice in 2012.) These include definitions of certain hazardous substances in electrical and elec tronic equip-
of terms, RoHS threshold values, survey questionnaires for our ment)
suppliers on chemical substances that affect the environment, Six substances (lead, chromium hexavalent, cadmium, mercury, and
and a guarantee form to assure that no RoHS-restricted sub- two specific brominated flame retardants [PBD, PBDE])
stances are included in the materials we use. *China RoHS: A Chinese government regulation
Currently, we request that our suppliers agree to abide by our *REACH (Registration, Evaluation, Authorization and Restriction of
Chemical Substance Management Guidelines, and that they Chemicals): A comprehensive system for registration, evaluation/ap-
submit a survey questionnaire and a guarantee form to assure proval, and restriction of chemical substances in Europe
that their supplies contain no RoHS-restricted substances.

Green purchases Lead-free solder

Our company actively purchases stationery and office supplies
that are environmentally friendly (such as products using recy- The Fujiyama Works, which manufactures cooling fans, has
cled materials, substitute materials, and waste materials), re-
been using lead-free solder for high-temperature soldering
fillable products, products with replaceable parts, and products
since March 2006, following the introduction of lead-free solder
designed for recycling.
in all manufacturing processes in January 2004 (except for high-
temperature soldering exempted from the RoHS standards.)
As for production lines mounting substrates for servo ampli-
fiers and power supply systems, lead-free soldering facilities
were first installed in fiscal 2004, and full installation has finally
Reduction of hazardous chemical substances been completed.
Cooling fans, stepping motors, servo motors: Installation of
The Hazardous Chemical Reduction Working Group, a subordi- equipment for surface mount soldering has been completed.
nate body of the Chemical Substance Emission Reduction Sub- Servo amplifiers, stepping motor drivers: Lead-free solder is
committee, is working together with the design sections of indi- being implemented and expanded to RoHS-applicable prod-
vidual divisions to focus on eliminating all substances banned
ucts. A shift towards lead-free products is being promoted.
by the RoHS directive.
Power supply devices: Lead-free solder is being implemented
Compliance of applicable products with the RoHS directive
Cooling fans and Stepping motors are now compliant. and expanded to RoHS-applicable products. A shift towards
Servo motors, Servo amplifiers, Stepping motor drivers, and lead-free products is being promoted.
Power supply systems are on their way toward becoming com-
pliant.
An examination of substances designated by the Japan
Green Procurement Survey Standardization Initiative (JGPSSI)
and other organizations will be conducted at the request of the
customer.

An X-ray fluorescent analysis device at the Kangawa Works Lead-free high-temperature soldering equipment at the
Fujiyama Works

11
C h e m ical S ub st ance M an agem ent

Compliance with the PRTR

Our company registers and reports the amount of discharge and PRTR-controlled substances
transportation of reportable PRTR-controlled substances when PRTR-controlled substances (that are required to be reported
and used in amounts of one ton or more)
over one ton annually at a factory is consumed. In fiscal 2012, it
became necessary to report the use of Styrene at the Kangawa Styrene Kangawa Works 6.8t
Works, and Antimony and its compounds and Triphenyl phos- Fujiyama Works 2.8t
Antimony and its compounds
phate at the Fujiyama Works.
Lead has not been required to be reported for the last six years Triphenyl phosphate Fujiyama Works 2.3t
because of reduction of lead usage due to RoHS-compliant sol-
dering.

PRTR (pollutant release and transfer register): A system for collecting, aggregating and pub-
lishing data on various hazardous chemical substances to see how much of these substances
are released into the environment from what sources, or are transferred with waste from
what facilities.

12
Reuse & Re cycl i n g

Changes in the Amount of Waste Discharged

Zero-emission Activities
Sanyo Denki is working as a member of the Zero-emission Promotion (Tons) (Tons)
Committee and the Zero-emission Promotion Workshop (formed in 7,500 20

April 2003) of the Nagano Techno Foundation* Asama Technopolis

Amount of waste discharged per yield of 100 million yen

16.6
Region Center to promote environmental conservation activities in
6,000 16
collaboration with companies in the surrounding areas.

Amount of waste discharged per year

The Zero-emission Promotion Workshop holds sessions for activity
12.4
reports and makes inspection visits to member companies to see how 4,500
4,385 4,223 12
17
waste is sorted by type and processed, and carefully examines how to 69

improve waste disposal methods. The Workshop has eight subpanels 8.5 8.7 9.5 3,276
28
to study the cooperative collecting and disposing of waste. Seven 3,000 8
2,348
sub-panels were established in the Workshop last year to study the
4,368 4,154
cooperative collecting and disposing of waste. 3,248
1,500 4

* The Nagano Techno Foundation was established to bring new life to the local economy
and provide an autonomous basis for its development. To this end, the foundation is
0
working to improve the level of local industries through technological innovation and 09 10 11 12 (Year)

develop new industries by exploiting local industry resources in five areas in Nagano Recycled Incinerated Amount of discharge
or buried per production unit
Prefecture. The Asama Technopolis Region Center is one of its organizations.

[Nagano Techno Foundation] Percentage by Type of Waste

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[Asama Technopolis Region Center] Other waste 5.1% Waste plastics 3.5%

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Waste oil and liquid 9.5%

Recycling
We created a recycling to promote the in-house recycling of unneeded
supplies such as OA equipment, desks, shelves and chairs.
Silicon steel sheets
47.3%

Reuse of Materials Metals 29.2%

We are returning wooden pallets used to transport purchased

materials to carriers in order to promote their reuse.

[Other examples of reuse of materials]

Cardboard boxes: returned to suppliers
Shock absorbers: reused within the company
Inscription board mounts: recycled

Amount Amount recycled (tons) /

Waste discharged Recycling method
(tons) Recycling rate (%)

Organic sludge 5.2 5.2/100 After oil and water are separated, dehydrated residues are turned into compost.

Sludge After intermediate treatment, some of the sludge is recycled as road

Inorganic sludge 29.2 12.2 /42 construction materials.
Some is also gasified by furnaces, with residues recycled as cement materials.

Oil-based materials 4.0 4.0/100 After oil and water are separated, the material is recycled as fuel.

Water-soluble materials
(detergents, grinding liquid, etc.)
246.4 246.4 /100 Reuse and incinerated residues are used as cement materials.
Waste oil
Volatile materials 9.0 9.0 /100 Distilled and used as recycled oil.

Waste acid (batteries) 52.6 52.6 /99.9 Crushed, sorted and all recycled.

OA equipment and circuit boards 21.5 21.5/100 Crushed, sorted and all recycled.

Vinyls and films 46.0 45.9 /99.95

Turned into solid fuel (refuse derived fuel), reducing agents (using furnaces) and
Waste plastics Molding scraps 33.6 33.6/100 materials for power generation (thermal recycling)
Other solid scraps 10.5 10.5/92
Turned into raw materials (material recycling); immersed in solvent to be turned into soil,
Styrofoam 4.4 4.4/100 and recycled as raw material

Scraps generated in manufacturing processes 2505.1 2505.1/100

Metal scraps Recycled as metal materials
Metals (including empty cans) 1.0 1.0/100
Used paper 7.1 7.1/100
Paper scraps Newspapers, magazines, and other papers 50.0 50.0/100 Turned into raw materials for recycled paper

Cardboards 176.3 176.3 /100

Wood scraps Packages and transportation pallets 60.7 60.7/100 Crushed and turned into combustion improver

Glass and ceramic scraps Empty bottles, glass, and ceramics 2.4 2.4 /100 Crushed and turned into road construction materials

Other waste Paper scraps and other waste 11.3 0/0 Incinerated

Total 3276.2 3247.9/99

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For Local Communities and Employees

Social Contribution Education and Training

Exchange and cooperation with local communities Training Curriculum

Members of the Head Office, the Technology Center, and the fac- Sanyo Denki's training system is composed of training programs
tories in Japan clean the areas around their office buildings and by employee level, career training programs, and training pro-
factories more than once a month. At the Kangawa Works, large- grams by division. In fiscal 201, we held the following company
scale cleaning was carried out in cooperation with the neighbor- lectures and meetings:
hood community association. August 2012
Lecture on designs to reduce hazardous chemical substances
Wrestling with diversification of living things (Recent trends of chemical substances and the RoHS Directive and
The preservation related to the diversification of living things REACH)
is said to be an important problem as well as counter meas- March 2013
ures for global warming. Sanyo Denki performs energy-saving Briefing session on Eco-products
activities and makes efforts by using our resources including
our technologies and products.

Outdoor cleaning activities(Head Office) Company lecture

Outdoor cleaning activities(Ueda Area) Product presentation meeting

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For Local Communities and Employees

Internal Audits
We have employees conduct internal audits to check that the environmental management system created by the company is being
properly implemented and effectively managed and maintained in accordance with regulatory requirements. To ensure the fairness
and objectivity of internal audits, we created a certification system for internal auditors to avoid the auditing of divisions by their own
members and conduct internal audits in accordance with the standards for internal audits. The results of internal audits are reported to
the top management and divisions audited, with the aim of making improvements to the environmental management system.

Safety and Health

To prevent occupational accidents and to ensure the safety and
mental and physical health of employees, we formed the Safety and
Health Committees and opened its branches at the Head Office and
the Ueda branch office (for the Technology Center and the factories).
The Safety and Health Committee aims to provide a safe and healthy
working environment, and to that end, it allocates officially certified
administrators and experts in environmental management to ensure
occupational safety and provide health care.

Activities of the Safety and Health Committee

Inspection visits to workplaces
When a monthly committee meeting is held, committee mem-
bers make an inspection visit to workplaces. The com mittee
checks whether appropriate measures have been taken to solve
the problems pointed out in the previous month, and whether or
AED
not any other problems can be detected.

Prevention of occupational accidents

During inspection visits to workplaces, committee members
check certain priority issues to prevent occupational accidents.
All branch offices and factories are informed of occupational ac-
cidents that occur at workplaces so that they can implement ap-
propriate measures to prevent any recurrence.

Reports from administrators

The committee receives reports from safety and health admin-
istrators concerning environmental measurements, nspection
schedules, announcements, training sessions and revisions to laws
and regulations.

Activities for maintaining and improving health

Medical examinations are conducted to achieve a 100% exami-
nation rate. Employees with health problems are provided with Training on general emergency life-saving methods
medical counseling and follow-upexaminations. The committee
also provides health consultant services to prevent lifestyle dis-
eases in accordance with the annual schedules of branch offices
and factories.

Mental health care

We provide contacts for consultant services, training sessions on self-
care for managers and other employees, and counseling by nurses.

Installation of automatic external defibrillators (AED)

Automatic external defibrillators are installed at the Head Office and
the Ueda branch office (for the Technology Center and the facto-
ries).
In addition, to be able to act quickly in unexpected situations, train-
ing sessions on general emergency life-saving methods are periodi-
cally provided.

Training and drills

Emergency drills

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Goals for Fiscal 2013 and Challenges for the Future

We created 18 eco-design products (Eco-products) in fiscal 2012, a year during which 31.4% of our sales were accounted for by Eco-products.
We will continue to promote the LCA-based development of products designed to reduce CO2 emitted during their use and to be eco-friendly.

Item Goals for Fiscal 2013 Goals to be achieved by fiscal 2015

Promotion of Eco-products Creation of Eco-products Creation of Eco-products

Sales activities Sales ratio of Eco-products: 40% or higher Sales ratio of Eco-products: 50% or higher

Promotion of the use of lead-free solder Promotion of the use of lead-free solder
Reduction of hazardous
Implementation of measures to meet the RoHS-6 standards Implementation of measures to meet the RoHS-6 standards
chemical substances
Reduction of PRTR-controlled substances Reduction of PRTR-controlled substances

Reduction in power consumption Reduction by 7% compared to 2006 Reduction by 9% compared to 2006

Maintaining the consumption of LPG at the current level Maintaining the consumption of LPG at the current level
(reduced by 52% compared to 2000) (reduced by 52% compared to 2000)

Maintaining the consumption of A-type heavy oil at the current Maintaining the consumption of A-type heavy oil at the current
Reduction in fuel consumption
level (reduced by 21% compared to 2000) level (reduced by 21% compared to 2000)

Gas consumption Gas consumption

Reduction by 6% compared to 2010 Reduction by 8% compared to 2010

Reduction in copier Maintaining the consumption at the current level (reduced Maintaining the consumption at the current level (reduced
paper consumption by 15% compared to 2000) by 15% compared to 2000)

Maintaining the consumption at the current level (reduced Maintaining the consumption at the current level (reduced
Reduction of waste
by 0% compared to 2000) by 0% compared to 2000)

Cleaning of the area around factories once or more every month Cleaning of the area around factories once or more every month
Contribution to local communities
Participation in environment-related events Participation in environment-related events

Maintaining a company-wide waste recycling rate at Maintaining a company-wide waste recycling rate at
Promotion of zero-emission
99.6% or higher 99.6% or higher

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Activities at Offices and Works

The number of employees is as of June 2013.

Head Office Kangawa Works

Location : 3-33-1 Minami-otsuka, Toshima-ku, Tokyo Location : 5-4, Tonoshiro, Ueda-shi, Nagano
Area : 1,761m2 Area : 67,141m2
Number of employees : 216 Number of employees : 650
ISO certificate obtained : March 2002 ISO certificate obtained : March 2010
Products manufactured:
AC/DC servo amplifiers,
stepping motor
linear servo motor,
and encoders

Shioda Works
Location : 517 Goka, Ueda-shi, Nagano
Area : 5,698m2
ISO certificate obtained : March 2001
Products manufactured: power conditioners for photovoltaic power
generation systems

Technology Center
Location : Ueda Research Park, 812-3 Shimonogo, Ueda-shi, Nagano
Area : 44,908m2
Number of employees : 332
ISO certificate obtained : November 1999
Fujiyama Works
Location : 4016 Fujiyama, Ueda-shi, Nagano
Area : 99,828m2
Number of employees : 535
ISO certificate obtained : December 1999
Products manufactured: Cooling fans, UPS's (uninterruptible power supply devices),
power conditioners for photovoltaic power generation systems,
emergency self-power generation systemstion systems,
power source monitoring systems,
AC/DC servo amplifiers,
stepping drivers
and system controllers.

Amounts of CO2 emission by factory Amounts of waste by factory

Head Office 4 386
(tons) (tons) 33 20 4 224
27 22
445
Technology 438
Center 92
65
12,499 18 3 3 277
186 11,549 40 17 20
1,064 Fujiyama 22
158 10,678 Works
2 905 419
1,044 167 33 20 65
421 1
9,024 1,070 15
8,679 3 592 3 635 2 281
178 Shioda Works 85
181 960 35 20
283
952 3 463 57
823 3 738 3 652
30
686 Aoki Works
3 182 31
3 489 673 1 585 77

657 Tsuiji Works

719 2 735
1 748
6 834 6 026
1 632 Midorigaoka 176
4 047 5,305
648 Works
585

Kangawa
09 10 11 12 (Fiscal) Works 09 10 11 12 (Fiscal)

17
Environmental Managers

General Environmental Manager Hiroyuki Nishimura

Sanyo Denki established its environmental management system and obtained ISO14001 certification in 1999. Our general
environmental manager works in the environmental management system under the direction of top management to promote
environmental activities at our Head Office and factories. In addition to the energy conservation and waste reduction activities at each
of our factories, we aim to reduce the global environmental burden by developing high-efficiency energy-saving products for our
customers and providing power equipment to reduce consumption using maximum power peak cutting functions and regenerating
electric power from braking forces. We also disclose environmental information to a wide spectrum of both internal and external
stakeholders and place great importance on communication with local communities and relevant individuals. The Environmental
Committee works with environmental managers at our factories to organize specialized subcommittees in order to discuss measures
for ongoing environmental improvements and to take an active part in promoting environmental conservation activities to achieve our
goals.

Head Office Kazutomi Kaneko

The Head Office being in the power supply area of the Tokyo Electric Power Co., Ltd. aims at the demand value of the last year.
In addition to providing support for improving the sales ratio of Eco-products and for local environmental activities, the Head Office
prioritizes measures to save energy and reduce waste and copier paper consumption.
Improvement in the sales ratio of Eco-products by supporting sales activities
Proper temperature management for air conditioning
Improvement in the sorting of waste and the recycling rate
Volunteer activities for cleaning areas around the Head Office
We will continue to promote environmental activities at the Head Office and all our sales offices and branches.

Technology Center Hiroyuki Nishimura

Our Technology Center is engaged in design and development of products, and is committed to promoting eco-designs and
developing products that are free of hazardous chemicals. To promote the development of products designed for the environment,
we certified 18 new items as Eco Products in fiscal 2012. We have nearly completed the installation of equipment required to meet the
RoHS standards for our target products, in order to achieve our goal of developing products that are free of hazardous chemicals. At
the moment, assessments are underway to check for the presence of SVHCs (substances of very high concern) in compliance with the
REACH regulations. We have also worked to reduce the consumption of electricity, LPG and copier paper, as well as the amount of
waste, and cleaned areas around the Ueda Research Park for the local community. We will continue to promote energy savings with
high efficiency products designed to be environmentally-friendly, reuse of electric energy using power regeneration functions, etc. in
order to help customers reduce their environmental burden when using our products.

Kangawa Works Kazuhiko Takizawa

The Kangawa Works is working to reduce lighting energy savings due to thinning, of waste, reduction of copy paper, the promotion of
zero emission.
In the motor assembly, inspection, guidance system by expanding the production and inspection, check sheet of paper is eliminated,
could reduce the copy paper.
Has implemented large-scale volunteer continued cleaning of the surrounding area.
Will continue working to reduce environmental load further using the data of BEMS central monitoring system can monitor bulk
energy consumption.

Shioda Works Masami Ando

The Shioda Works is promoting activities to save energy, reduce waste, and eliminate hazardous substances from the manufacturing
processes.
Reduction in power consumption (planned operation of air conditioners by using timers and checking room temperatures, and a reduction in the
operation time of production lines by improving the operation rate)
Reduction in the consumption of A-type heavy oil (planned operation of boilers using timers)
Reduction in the consumption of copier paper (use of projectors, use of electronic means for checking progress, and reuse of the backs of printed paper)
Thorough sorting of waste materials and promotion of the reuse of the delivery boxes for purchased parts
Use of components and materials meeting the RoHS standards
Volunteer activities for cleaning areas around the factory
Reduction of incinerated waste

Fujiyama Works Satoshi Atou

The Fujiyama Works is reducing its environmental burden by improving fundamental work activities, and is working on the promotion of
activities to save energy, reduce waste, and achieve zero-emissions. In this fiscal year, a production line related to the Servo System Division at
the Shioda Works was relocated to the Fujiyama Works (new F2 building). The energy used at this factory has changed dramatically, so we have
introduced a system to monitor power consumption for individual buildings in detail.
Energy saving (a reduction in the consumption of electricity and A-type heavy oil for air conditioning).
Reduction in the consumption of lead by using lead-free solder
Reduction of waste (reduction of waste plastics and cardboards) and zero emission activities
Use of components and materials meeting the RoHS standards
Volunteer activities for cleaning areas around the factory

18
Data on Air Quality, Water Quality and Noise

Kangawa Regulatory Voluntary Regulatory Voluntary

Item Actual value Shioda Works Item Actual value
Works standard standard standard standard

Smoke and soot Smoke and soot

0.3 0.03 0.0023
(g/m3N) (g/m3N)

Air Quality Air Quality

Air pollution Nox(ppm) Exempted Air pollution Nox(ppm) 180 130 82
control laws and control laws and
ordinances ordinances

Sox(m3N/h) Sox(m3N/h) 1.3 0.7 0.013

PH(pH) 5.8 to 8.6 7.7 PH(pH)

Water Quality Water Quality

Water pollution Water pollution
Exempted
control laws,
BOD(mg/L) 20 19 17.0 control laws,
BOD(mg/L)
ordinance and ordinance and (No water disposal tank)
agreements agreements

SS(mg/L) 30 28 23.0 SS(mg/L)

Noise Noise
Laws, ordinances Laws, ordinances
and
(dB) 65 64 61 and
(dB) 65 64 56
agreements for agreements for
noise regulation noise regulation

Technology Regulatory Voluntary Fujiyama Regulatory Voluntary

Item Actual value Item Actual value
Center standard standard Works standard standard

Cold and hot water Smoke and soot

generator 0.3 0.03 0.0077
0.1 0.08 0.0030 (g/m3N)
smoke and soot
(g/m3N) Air Quality
Emergency Air pollution Nox(ppm) 180 130 71
control laws and
power generation ordinances
equipment 0.05 0.045 0.0068
smoke and soot
Air Quality (g/m3N) Sox(m3N/h) 5.0 2.5 0.041
Air pollution Cold and hot water
control laws and
ordinances
generator 150 130 77
Nox(ppm) PH(pH) 5.8 to 8.6 7.8
Emergency
power generation
Water Quality
equipment
600 550 100 Water pollution
control laws,
BOD(mg/L) 50 48 9.6
Nox(ppm) ordinance and
agreements

Sox(m3N/h) Exempted SS(mg/L) 60 54 14.0

Noise
PH(pH) 5.8 to 8.6 7.6
Laws, ordinances
and
(dB) 65 64 Exempted
Water Quality agreements for
noise regulation
Water pollution
control laws,
BOD(mg/L) 20 19 11.0
ordinance and
agreements

SS(mg/L) 60 54 9.0

Noise
Laws, ordinances
and (dB) 65 64 Exempted
agreements for
noise regulation

19
Business Profile and Company Profile

Sales Ratio (for the period from April 2012 through March 2013)
Business Profile

Sanyo Denki is working to develop new technologies and products,

with the aim of creating “technologies to protect the global Electrical Work
Contracting Cooling Systems Division
environment,” “technologies to ensure human health and safety” and 2.9%
“technologies to exploit new energy sources and save energy.” Electrical
Equipment
8.3%
Cooling Systems Division
Development, manufacture and sales of cooling fans and cooling
systems 23.3%
Power Systems Division
Development, manufacture and sales of uninterruptible power
supplies, power conditioners for photovoltaic power generation 45.2% 20.3%
systems, and engine generators
Servo Systems Division
Development, manufacture, and sales of servo systems, stepping
systems, controllers, drivers, and encoders
Electrical Equipment Power Systems Division
Sales of domestic and foreign manufacturers of electrical and Servo Systems Division
electronic
Electrical Work Contracting
The planning, design, construction and maintenance of
industrial control systems

Changes in Sales (Consolidated) Changes in Current Net Income (Consolidated)

4 518
(Million yen) (Million yen) 4 367

70 295 69,972
64,050
2,957
49,089
42,505

193 4 142
09/03 10/03 11/03 12/03 13/03
09/03 10/03 11/03 12/03 13/03
(Year/month) (Year/month)

Company Profile
Founded: December 31, 1936 For inquiries about the Environmental Management Report,
Capital: 9.9 billion yen (as of March 31, 2013) please contact:
Sales (consolidated): SANYO DENKI CO., LTD.
64 billion yen (for the period from April 2013 through March 2012) Public Relations Dept.
Number of employees (consolidated): 3-33-1, Minami-Otsuka, Toshima-ku, Tokyo 170-8451
2,876 (as of March 31, 2013) Tel: 03-5927-1020
Fax: 03-59527-1600
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