Nikon CSR Report 2006

Transcription

1 Nikon CSR Repor 26

2 Corporae Daa Ne Sales (Consolidaed) Group Profile Corporae Name NIKON CORPORATION Head Office Fuji Bldg., 2-3, Marunouchi 3-chome, Chiyoda-ku, Tokyo , Japan Tel: Dae of Esablishmen July 25, 1917 Capial 36,66 million Yen (as of March 31, 26) Ne Sales Consolidaed: 73,943 million Yen Non-consolidaed: 521,14 million Yen (for he year ended March 31, 26) Number of Employees Consolidaed: 18,725 Non-consolidaed: 4,352 (as of March 31, 26) *The number of non-consolidaed employees does no include personnel dispached o subsidiaries and associaed companies. Major Producs of Nikon Group Precision Equipmen IC seppers and scanners Business LCD seppers and scanners (Precision Equipmen Company*) Imaging Producs Business (Imaging Company*) Insrumens Business (Insrumens Company*) Cusomized Producs Business (Cusomized Producs Division*) CMP Sysems Business (CMP Division*) Glass Business (Glass Division*) Spor Opics Business (Nikon Vision Co., Ld.) Surveying Insrumens Business (Nikon-Trimble Co., Ld.) Eyewear Business (Nikon-Essilor Co., Ld.) (Nikon Eyewear Co., Ld.) Digial cameras Film cameras Inerchangeable lenses Speedlighs Biological microscopes Measuring insrumens Indusrial microscopes Inspecion equipmen Sereoscopic microscopes Cusomized opical equipmen Space-relaed equipmen CMP sysems Glass business founded on glass maerials echnologies Binoculars Monoculars Fieldscopes Fieldmicroscopes Loupes Toal saions Auomaic levels Laser faciliies for consrucion Ophhalmic lenses Sunglasses Ophhalmic frames Film scanners Phoographic accessories Sofware Asronomical-relaed equipmen Opical componens Large objecive diameer binoculars Sighseeing binoculars Laser rangefinders Theodolies Surveying CAD sysems GPS sysems Hearing aids Loupes *These companies/divisions are par of Nikon Corporaion s inernal srucure. (Millions of Yen) 8, 73,943 7, 638,468 6, 5, 483, , ,958 56,378 4, 371,8 3, 2, 1, /3 1/3 2/3 3/3 4/3 5/3 6/3 Ne Sales in Japan and Expor Sales by Region (Consolidaed) (Millions of Yen) 8, 7, 6, 5, 4, 3, 2, 1, /3 Japan Europe Ne Sales by Indusry Segmen (Consolidaed) (Millions of Yen) 8, 7, 6, 5, 4, 3, 2, 1, /3 Precision Equipmen Insrumens Norh America Asia Oher Areas 1/3 2/3 3/3 4/3 5/3 6/3 Number of Employees (Non-consolidaed/Consolidaed) (Number of employees) 2, 15, 1, 5, 11,946 Imaging Producs Oher 2.6% 7.3% 1/3 2/3 3/3 4/3 5/3 6/3 13,894 14,328 Non-consolidaed 13,184 13,636 /3 1/3 2/3 3/3 4/3 5/3 6/3 56.9% 33.2% Consolidaed 18,725 16,758 5,13 4,941 4,818 4,45 4,31 4,269 4,352 Nikon Group Companies European Group Companies Nikon Holdings Europe B.V. (Neherlands) Nikon Europe B.V. (Neherlands) Nikon Insrumens Europe B.V. (Neherlands) Nikon Precision Europe GmbH (Germany) Nikon AG (Swizerland) Nikon GmbH (Germany) Nikon France S.A.S. (France) Nikon U.K. Ld. (U.K.) Oher Japanese Group Companies Nikon Corporaion Tochigi Nikon Corporaion Sendai Nikon Corporaion Nikon Phoo Producs Inc. Nikon Insech Co., Ld. Nikon Tec Corporaion Nikon Vision Co., Ld. Nikon Eyewear Co., Ld. Nikon-Essilor Co., Ld. Nikon-Trimble Co., Ld. Oher Asian Group Companies Nikon (Thailand) Co., Ld. (Thailand) Nikon Imaging (China) Co., Ld. (China) Nikon Hong Kong Ld. (Hong Kong) Nikon Precision Korea Ld. (Korea) Oher Norh American Group Companies Nikon Americas Inc. (U.S.A.) Nikon Inc. (U.S.A.) Nikon Canada Inc. (Canada) Nikon Insrumens Inc. (U.S.A.) Nikon Precision Inc. (U.S.A.) Oher 2

3 Nikon CSR Repor 26 Ediorial Policy Nikon is fully aware ha o gain he confidence of all is sakeholders, horough, frank disclosure of corporae informaion is of vial consideraion. Wih his in mind, in addiion o he Nikon Environmenal Repor we have compiled up o now, from his year, we will also provide a CSR repor conaining informaion regarding he CSR aciviies of he Nikon Group. Iems covered in his repor were included from he viewpoin of providing informaion hough o be imporan for sakeholders as well as deails Nikon wishes o disclose. I is hoped ha his repor serves as a valuable ool for communicaion beween Nikon and all is sakeholders. The environmenal repor included in his repor is an abridged version of he Nikon Environmenal Repor. Conens Group Profile 2 Ediorial Policy/Conens 3 Message from Managemen 4 Vision Nikon 21 5 Feaures Medium Term Managemen Plan: Creaing a Srong Nikon 6 Nururing Personnel and a Free and Open-Minded Corporae Climae 7 Term and Scope of Repor The repor focuses on fiscal year 25 (April 1, 25 o March 31, 26), including informaion of aciviies conduced before and afer his erm. Some of he deails provided apply o Nikon Corporaion only while oher informaion applies o he Nikon Group. Insers indicae where a specific scope is defined. Reference This repor has been drawn up wih reference o Susainabiliy Reporing Guidelines 22 by he Global Reporing Iniiaive (GRI), and Environmenal Reporing Guidelines (23) by he Japanese Minisry of he Environmen. Web The Nikon websie provides deails of his repor ogeher wih a wide range of oher informaion. hp:// Nex Ediion June 27 CSR Concep Nikon Group CSR 8 CSR Managemen Corporae Governance 1 CSR Aciviies Promoion 12 Social Topics Relaionship wih Sakeholders 14 Relaionship wih Cusomers 15 Improving Cusomer Saisfacion and Service Response 15 Produc and Service Qualiy Conrol 16 Personal Informaion Proecion 17 Relaionship wih Shareholders and Invesors 18 Relaionship wih Employees 19 Relaionship wih Business Parners 22 Relaionship wih Local Communiies 22 Environmenal Topics Ediorial Policy/Conens Repor Producion Deparmen and Conac Informaion CSR Secion, Corporae Planning Deparmen NIKON CORPORATION Fuji Bldg., 2-3, Marunouchi 3-chome, Chiyoda-ku, Tokyo , Japan Tel: Fax: [email protected] Nikon and he Environmen 24 Environmenal Policy 25 Primary Environmenal Loading 25 Environmenal Acion Plan 26 3

4 Creaing a Srong Nikon Message from Managemen The unveiling of he leading concep of Vision Nikon 21 in 2 and he esablishmen of corporae objecives and business guidelines based on he corporae philosophy of Trusworhiness and Creaiviy clarified he sance and direcion pursued by he Nikon Group. We realize ha o implemen his philosophy of Trusworhiness and Creaiviy and coninue developing he Nikon Group, managemen mus be genuinely ransparen o gain he rus of all our sakeholders. To his aim, as a corporae ciizen wih social responsibiliies o uphold, we are coninuing o promoe CSR aciviies. In 24, we esablished he Nikon Charer of Corporae Behavior, which oulines he Nikon Group s approach o execuing he corporae philosophy, corporae objecives and business guidelines se forh in he Vision Nikon 21 corporae sraegy. The Nikon Charer of Corporae Behavior also ses ou he policy of he Nikon Group s CSR promoion aciviies. We believe ha having individual Nikon Group employees conduc daily business based on he Nikon Charer of Corporae Behavior is he key o achieving our CSR goals. Composed of myself as Chairman and Sanding Direcors and he heads of CSR-relaed deparmens as members, he CSR Commiee was esablished in January 26 o consolidae and furher promoe our CSR aciviies. In addiion o iniiaives concerning environmenal problems and social conribuion for fiscal 26, we are focusing on he major CSR hemes of horough compliance and risk managemen. In March 26, he Nikon Group announced is Medium Term Managemen Plan. While benefiing from he Nikon Group s ousanding echnological capabiliies and produc conceps, we would like o srenghen our financial srucure and coninue o improve business produciviy. By supporing highly compeiive producs, solid financial srucure and he srong will of employees o reach our arges, we aim o creae a Srong Nikon wih a solid business srucure ha will enable sable, coninued growh even in a business environmen undergoing dramaic change. To accomplish his, a key measure is o mainain he highly ransparen managemen ha is an all imporan par of CSR. Acively engaging in communicaion wih sakeholders and willing, hones disclosure of corporae informaion is he fundamenal sance of he Nikon Group. I is hoped ha his repor will conribue o your undersanding of he Nikon Group s effors owards susainable developmen. We welcome and grealy appreciae any opinions you may have concerning our fuure aciviies. Michio Kariya Presiden, Member of he Board, Chief Execuive Officer and Chief Operaing Officer Nikon Corporaion 4

5 Vision Nikon 21 Wih is sighs on he firs decade of he 21s cenury, in March 2, Nikon esablished Vision Nikon 21, he leading concep behind is business aciviies, wih an aim o clarifying he fuure sance and direcion of he Nikon Group. Corporae Philosophy Corporae Objecives Business Guidelines Nikon Charer of Corporae Behavior Medium Term Managemen Plan Medium erm managemen plan o creae a Srong Nikon To furher assure he realizaion of he aims of Vision Nikon 21, seps were aken such as he esablishmen of he Nikon Charer of Corporae Behavior Nikon Code of Conduc Basic Environmenal Managemen Policy Corporae Philosophy Trusworhiness and Creaiviy Trusworhiness Nikon: Is rused and loved by people worldwide. Exiss and prospers in harmony on all levels hroughou he world. Creaiviy Nikon: Creaes new values by mainaining pride and faih in our business, and by encouraging an enrepreneurial spiri. Appeals o people all over he world and saisfies hem wih efficien and useful producs and services. Vision Nikon 21 Corporae Objecives To pu ino effec is corporae philosophy, he Nikon Group is making every effor o achieve he following objecives: Conribue o he promoion of he life and culure of people around he world by offering he bes qualiy producs and services wih superb echnology as our backbone. Accomplish a solid managemen srucure wherein each company of he Nikon group srives o grow, evolve and flourish ogeher. Bring furher ransparency o gain he rus of our cusomers, shareholders, employees, business parners, and sociey a large. Business Guidelines To realize he principles of our corporae philosophy, business guidelines have been esablished ha each individual employee should pu ino pracice. In paricular, specific business guidelines have been se down concerning he environmen, safey and business ehics o assure ha social norms ake prioriy. Nikon Charer of Corporae Behavior and Nikon Code of Conduc To assure ha individual Nikon Group direcors and employees behave sensibly based on a high level of moraliy, in April 24, he Nikon Charer of Corporae Behavior was esablished and he Nikon Code of Conduc was amended. *For deails, please refer o CSR Aciviy Promoion on pages 12 and 13. 5

6 Feaures Medium Term Managemen Plan (Fiscal 26 28): Creaing a Srong Nikon The Medium Term Managemen Plan clearly conveys o sakeholders he Nikon Group s managerial inenions from a medium o long erm viewpoin. Corporae Philosophy Trusworhiness and Creaiviy Solid financial srucure Highly compeiive producs Ousanding human resources Robus business srucure Managemen Policy Creaing a Srong Nikon Medium Term Managemen Plan: Creaing a Srong Nikon Feaures Creae a Srong Nikon wih a business srucure ha can generae susainable growh in spie of changes in he business environmen. Key Objecives Srenghening compeiiveness of core businesses Improving financial srucure Creaing and fosering new businesses Pracicing ransparen CSR-oriened managemen Bolsering manufacuring compeiiveness Nururing a free and openminded corporae culure Consolidaed Targes for Fiscal 28 Consolidaed arges operaing income o ne sales: 1% Ne sales 9 billion Operaing income 9 billion Ordinary income 8 billion Deb-equiy raio 3% or lower Fiscal Invesmen Funds will be channeled primarily ino R&D invesmen and sraegic invesmen o drive corporae growh, and ino srenghening financial srucure. Capial Invesmen and R&D Invesmen Plan (hree-year oal) Increased invesmen o drive fuure growh. Capial invesmen 1 billion 2% increase R&D invesmen 165 billion 6% increase 7% or more of sales Precision Equipmen Company Develop nex-generaion seppers and improve produciviy Imaging Company Srenghen he developmen of second-generaion digial cameras Insrumens Company Srenghen research ino biosciences New Businesses Srenghen developmen of new businesses and elemenal echnologies Business Plan Precision Equipmen Company IC sepper business Aim o secure he op marke share for ArF Immersion, including cuing-edge immersion lihography producs. LCD exposure sysems Aim o furher solidify Nikon s op marke share posiion for large LCD exposure sysems. Imaging Company Aim o develop and propose new producs, and secure a 4% or larger share of he digial SLR camera marke. Creae aracive producs ha will add value o compac digial cameras. Insrumens Company Focus on he fields of live cell imaging and non-conac measuremen. New Businesses Develop new businesses in areas such as glass maerials, solid-sae lasers, inspecion/fabricaion ools for 3D-IC and inspecion ools and CMPs. 6

7 Nururing Personnel and a Free and Open-Minded Corporae Climae Wih he aim of creaing a more aracive company, human resources are being developed o nurure he personnel on whom growh of he Nikon Group depends while measures are being aken o revialize he corporae climae. Srong Nikon, Aracive Nikon Vigorous, acive Human resources Personnel Vision Working from he basic personnel philosophy of Aspire owards improving your own value as an employee and be forward-looking o provide he company wih srong suppor, Nikon is moving ahead wih a range of human resource measures. Nikon is making every effor o rain personnel based on he concep of individual independence and auonomy, rewarding any conribuions from employees in various ways o boos moivaion. Personnel Philosophy and Policy Human Resource Developmen Training o raise he level of abiliy for each posiion Selecive nururing based on inenion and abiliy Independence and Auonomy Pay for Performance Key Objecives for Creaing a Free and Open-Minded Corporae Climae Creaing a genuine parnership beween he company and employees Moving away from a relaionship based on dependence Appropriae rewards, compensaion, promoion and elevaion of saus for conribuions o he company Srenghened Managemen Managemen plays an exremely imporan role in creaing an environmen in which employees can work wih a feeling of freshness and energy. Consequenly, Nikon is moving ahead wih a program o boh srenghen and nurure managemen. Supporing Independence and Auonomy Naurally, before individuals can work wih a sense of involvemen, hey mus have an undersanding of heir own aims, abiliy and expecaions. To furher his undersanding, i is essenial o foser awareness of independence and auonomy. A Nikon, a wide range of raining and educaional programs are provided o suppor he developmen of his awareness among employees. Seeking Nururing Moivaion Word from he op Training programs Training and nururing Objecive-oriened inerviews Profile inerviews Solidariy and empahy Self-developmen Challenging goals Work for he eam, hink on your own, and ac. Ousanding personnel Nikon is looking for Ousanding Personnel Nikon Is Looking For Individual employees working energeically wih a sense of involvemen. In concree erms, he above concep means employees who can firmly sae heir own opinions, debae auhoriaively, and when a consensus has been reached, cooperae and ac o achieve overall opimal resuls wihou adhering o heir own ideas and views. This describes he kind of model employee Nikon is looking for, in oher words, employees who: Work for he eam, hink on your own, and ac. The aim is o achieve a feeling of solidariy and empahy from he sandpoin of he company, workplace and individuals wih employees who: Are no only waned by he company bu, Are worh nururing a he workplace and, Are individuals wih moivaion Feaures Nururing Personnel and a Free and Open-Minded Corporae Climae Creaing a Srucure ha Respecs Diversiy To enable individual employees o make he mos of heir abiliies under differen circumsances, condiions and environmens, a number of sysems and measures have been implemened relaed o child care, nursing care and oher consideraions. 7

8 CSR Concep Nikon Group CSR The four fundamenal principles of CSR promoion In line wih he corporae objecive of gaining he rus of all is sakeholders wih genuinely ransparen managemen, he Nikon Group is coninuing wih aciviies i mus perform o ake is responsibiliies as a corporae ciizen. Aciviies o fulfill our CSR obligaions are broadly classified under he four hemes indicaed below. Compliance (Business ehics) Risk Managemen Nikon Group CSR CSR Concep Legal compliance Observance of human righs Fair employmen opporuniy Fair business aciviies Fair rading The four fundamenal principles of CSR Qualiy conrol Informaion managemen BCM* Healh and Safey Environmen Social Conribuion Environmenal conservaion Green procuremen Energy conservaion Reduced use of harmful chemical subsances Harmony wih local communiies Suppor for global environmenal conservaion Conribuion o social and economic developmen hrough business Conribuion o phoographic culure *Business Coninuiy Managemen (BCM) is a form of business risk managemen designed o preserve corporae value by mainaining business coninuiy in he even of a disaser such as a large-scale earhquake hrough he rapid resoraion of core businesses. 8

9 CSR Commiee Business Conduc Commiee Risk Managemen Commiee Environmenal Commiee Social Conribuion Commiee Expor Conrol Commiee Healh and Safey Commiee To fulfill and promoe is CSR aciviies, Nikon has esablished separae subcommiees under he CSR Commiee o focus on differen hemes. In he pas, CSR aciviies concerning environmenal issues and social conribuion were implemened by separae commiees bu a more inegraed approach has been adoped wih he esablishmen of he CSR Commiee in January 26. Under he CSR Commiee, which is chaired by he Presiden and composed of members who are Sanding Direcors and he heads of CSR-relaed deparmens, he Business Conduc Commiee, Risk Managemen Commiee, Environmenal Commiee, Social Conribuion Commiee, Expor Conrol Commiee and Healh and Safey Commiee are in charge of implemening CSR aciviies. CSR Commiee Secrearia duies are being performed by he CSR Secion, Corporae Planning Deparmen. Compliance (Business Conduc) Risk Managemen The Nikon Business Conduc Commiee was esablished in 1997 o perform appropriae educaion and nururing of business ehics o assure fair and sound business conduc by Group companies based on a law-abiding spiri ha respecs inernaional regulaions. In 21, he Nikon Code of Conduc was creaed followed by he esablishmen of he Compliance Secion in he General Affairs Deparmen for he full-ime promoion of aciviies peraining o business ehics. Laer, in 24, wih a view on CSR, he Nikon Charer of Corporae Behavior was adoped and he Nikon Code of Conduc was amended wih he aim of horoughly esablishing business ehics and CSR awareness in he Nikon Group hrough raining and educaion. Code of Conduc Coordinaor Sysem was inroduced in 25 o furher raise awareness of corporae ehics among all of our employees. In he pursui of susained growh of he Nikon Group, he Risk Managemen Commiee was esablished in April 26 o comprehensively manage and precisely respond o risks encounered by he Group. The Commiee ascerains and assesses risks wihin he Group and implemens measures o counerac hose ha can influence operaion. I also conducs educaion and raining o minimize damage in he even of a risk arising. Furhermore, hrough regular risk monioring, he Commiee implemens a risk managemen PDCA cycle in a sysem ha can respond precisely even o newly occurring risks. Specific examples of he major aciviies of he Commiee include he esablishmen of a BCM* sysem for possible disasers such as an earhquake, and Group-wide aciviies such as informaion leakage counermeasures. CSR Concep Nikon Group CSR Environmen Social Conribuion Since i issued he Nikon Basic Environmenal Managemen Policy in 1992, Nikon has coninued wih environmenal preservaion effors based on he conceps of recycling and coexisence. The Nikon Charer of Corporae Behavior formulaed in 24 furher declares he company s commimen o conservaion of he naural environmen and he promoion of environmen-friendly aciviies. Based on his fundamenal policy, numerous goals have been achieved hrough he vigorous promoion of he Nikon Environmenal Acion Plan for fiscal 25 which defined he medium and long erm environmenal arges. Wih he esablishmen of he Nikon Green Procuremen Sandards in Ocober 25, we have also srenghened environmenfriendly aciviies a he procuremen sage for raw maerials and oher iems hrough cooperaion along he supply chain. In 26, he Nikon Environmenal Acion Plan was reviewed and expanded, wih one amendmen o srenghen effors o preven global warming, a serious global environmenal problem. To expedie he Nikon Environmenal Acion Plan and more efficien business operaions, progress is also being made in he Nikon Group-wide inegraion of ISO141 cerificaion. As a corporae ciizen, Nikon bears responsibiliy for he fuure of he naion, local communiies and he enire world. From a basic sance of conribuing o he sound growh of sociey as a whole, i is vigorously developing business aciviies in consideraion of respec for human righs, enhanced welfare services and he conservaion of he environmen and resources. From he same basic sance, while conribuing o sociey hrough measures implemened in business-relaed fields, Nikon is also acive in non-corporae areas. One example is he esablishmen of he Social Conribuion Commiee. This makes a conribuion by supporing various global environmen conservaion aciviies and paricipaing in local environmen conservaion aciviies, and by supporing aciviies in developing areas worldwide. In he business-relaed field, as well as providing research aid o universiies and governmen research insiuions for he developmen of cuing-edge echnologies, Nikon also runs he Nikon Salon, permanen phoography exhibiion spaces, o promoe he developmen of phoographic culure while supporing phoograph exhibiions and oher evens. 9

10 CSR Managemen Corporae Governance To achieve sable corporae growh amid coninued globalizaion of he business environmen while enhancing he rusing relaionship i has wih is sakeholders, he Nikon Group aims o increase managemen efficiency and ransparency by bolsering corporae governance and improving is inernal conrol sysem. Corporae Governance Organizaion Diagram General Meeing of Shareholders Elecion and Removal Elecion and Removal Elecion and Removal Cooperaion Board of Corporae Audiors Corporae Audiors Ouside Corporae Audiors Audi Board of Direcors Direcors Ouside Direcors Cooperaion Cooperaion Repor Presiden, Member of he Board (CEO & COO) Compensaion Commiee Corporae Governance CSR Managemen Accouning Audiors Cooperaion Inernal Audi Deparmen Audi Execuive Commiee Direcors Execuive Officers CSR Commiee Business Conduc Commiee Code of Conduc Holine Risk Managemen Commiee Environmenal Commiee Social Conribuion Commiee Expor Conrol Commiee Healh and Safey Commiee Audi Cerified Public Accounans Audi Financing & Accouning Deparmen / Adminisraion Deparmen (General Affairs, Legal Affairs and Corporae Compliance) / Inernal Companies, ec. Group Companies Corporae Audiors Group Audiors Meeing Commiee Members (CSR-relaed) Commiee name The Nikon Group has esablished various commiees o deal wih imporan cross-organizaional issues. CSRrelaed commiees have also been se up o implemen relevan pracical measures. One of hem making posiive seps forward is he CSR Commiee, which is chaired by he Presiden. Objecives Secrearia Meeing schedule 1 CSR Commiee Business Conduc Commiee Risk Managemen Commiee Environmenal Commiee Social Conribuion Commiee Expor Conrol Commiee Healh and Safey Commiee Educaional Commiee Discussions, policy making Review of business aciviies Esablishmen of aciviy plans Discussions relaed o business conduc, drafing of regulaions, ec. Review, execuion direcions for deparmens Discussions and policy making relaed o risk managemen Review and resuls verificaion of business aciviies relaed o risk managemen Deerminaion of aciviy plans for educaion and raining relaed o risk managemen Formulaion of environmenal managemen aciviy policies and sandards for achievemen Execuion saus examinaion Drawing up of concree plans and repors for and supervision of social conribuion aciviies Managemen and conrol o assure correc, smooh execuion of expor managemen operaions Examinaion and discussion of imporan issues relaed o company safey and healh Discussions relaed o educaion and raining CSR Secion, Corporae Planning Deparmen Compliance Secion, General Affairs Deparmen Corporae Planning Deparmen General Affairs Deparmen Personnel Managemen Deparmen Sysem Planning Deparmen Environmenal & Technical Adminisraion Deparmen General Affairs Deparmen Compliance Secion, General Affairs Deparmen Personnel Managemen Deparmen Personnel Managemen Deparmen Twice a year a he end of each half erm Exraordinary meeings when required Once a year (December) Exraordinary meeings when required Twice a year a he end of each half erm Exraordinary meeings when required Twice a year Exraordinary meeings when required Once every quarer erm Exraordinary meeings when required Once a year in March Exraordinary meeings when required Once a year in February Exraordinary meeings when required Monhly meeings of he Healh and Safey Commiees of each business sie Three imes a year Regular subcommiee and secional aciviies

11 Corporae Governance Organizaion Board of Direcors Foureen members of he Board of Direcors, including wo from ouside he company, make promp decisions on maers of imporance o he Group and monior he exercise of duies by direcors. Execuive Commiee The Execuive Commiee deliberaes on and resolves major issues regarding inernal conrol and guidelines abou he general operaion of company business, in accordance wih he basic direcion of managemen as deermined by he Board of Direcors. This body also receives repors from each deparmen regarding criical maers. Board of Corporae Audiors Four corporae audiors, including wo from ouside he company, periodically aend such imporan meeing as he Board of Direcors and Execuive Commiee in order o supervise he saus of he direcors execuion of operaions, and perform monioring and audiing of corporae managemen and direcors. Srenghening Corporae Governance Laes Measures o Enhance he Inernal Conrol Sysem Managemen Promoion Emphasizing CSR The CSR Commiee was esablished in 26 o achieve highly ransparen managemen emphasizing CSR. The commiee formulaes CSR-relaed aciviy plans, conducs educaion and nururing o raise CSR awareness, and verifies and reviews he resuls. Risk Managemen The Risk Managemen Commiee was creaed in April 26 o formulae risk managemen policies ha incorporae business coninuiy plans and inernal conrols in numerous fields, including corporae ehics, environmenal managemen, qualiy conrol, expor conrol and acciden prevenion. This body also conducs educaion and raining on risk managemen and supervises associaed aciviies. Srenghened Deliberaion, Resoluion, Communicaion and Reporing Sysem Nikon furher overhauled he srucure of he Execuive Commiee engaged in he deliberaion, resoluion, communicaion and reporing of business maers and recreaed rules relaed o he delegaion of auhoriy in divisions in order o furher enhance he Group s conrols. CSR Managemen Corporae Governance Managemen Sysem In Ocober 1999, Nikon inroduced an in-house company sysem feauring decenralized managemen, wih an inegraed sysem and responsibiliies esablished for each produc secor, including subsidiaries. A resuls-based evaluaion sysem was also brough in so as o srenghen he relaionship beween performance and remuneraion. In June 21, we insalled an execuive officer sysem and reduced he number of direcors, while shorening he erm of direcors from wo years o one in 23 in order o consolidae a managemen sysem ha can respond swifly o changes in he business environmen. Compensaion Commiee The Compensaion Commiee was se up in July 23 o raise he objeciviy and ransparency of maers relaed o direcors compensaion. The obligaions of his commiee include examining and proposing appropriae compensaion sysems and oher relaed sysems. Esablishmen of an Inernal Audi Deparmen The Inernal Audi Deparmen was esablished in 25 wih he primary objecives of creaing and monioring he operaion of Nikon Group inernal conrols, and making recommendaions for improvemen. Informaion Resource Conrol Guidelines on classifying confidenial informaion were insiued in February 26 o specify differen ypes of resriced daa. Nikon coninues sriving o increase he effeciveness of is informaion managemen. Disclosure of Informaion Wih he aim of increasing he ransparency of operaing informaion, Nikon aggressively promoes IR aciviies for invesors and shareholders. Besides seeking o furher improve he speed and accuracy of informaion disclosure, financial resuls meeings are held wice yearly and he websie is consanly updaed. Sysemaizaion of Responsibiliy and Auhoriy Nikon formulaed he Rules of Organizaion and Auhoriy o clearly define he scope of auhoriy and responsibiliy for each pos as well as each organizaion. Addiionally, each group company exhausively implemens conrol and guidance based on he Auhorizaion Sandards for Subsidiaries. This ensures organized and efficien business execuion across he board. For deails concerning he Basic Policy on he Inernal Conrol Sysem based on corporae law, please visi: hp:// 11

12 CSR Managemen CSR Aciviies Promoion Aiming for a fair and ransparen managemen capable of enjoying sakeholders confidence, he Nikon Group is promoing CSR aciviies from he sandpoin of socially responsible managemen. CSR Aciviies Promoion CSR Managemen Nikon Charer of Corporae Behavior and Nikon Code of Conduc The Nikon Charer of Corporae Behavior and Nikon Code of Conduc define he corporae philosophy, corporae objecives and business guidelines of he Nikon Group. Oulining he basic sance and general sandards of behavior of he Nikon Group, hey sress adherence o saues in all business aciviies and proper conduc from an ehical sandpoin as well as from he viewpoin of social responsibiliy. Nikon has also prepared he Nikon Rules of Acion guidelines on easily-carried prined cards o provide assisance in he even of a disaser when making judgmens may be difficul. The Nikon Charer of Corporae Behavior, Nikon Code of Conduc and Nikon Rules of Acion guidelines are disribued o all Nikon Group direcors, employees, par ime employees and emporary personnel. A overseas subsidiaries, business is performed based on he Nikon Group Nikon Code of Conduc in line wih local laws, cusoms and culure. In he Unied Saes and Europe, preparaion of independen codes of conduc is currenly in progress. Nikon Code of Conduc Chaper 1 Sandards of Employee Behavior 1. Conribuion o he environmen and sociey (1) Environmenal proecion and safey assurance (2) Promoion of aciviies conribuing o sociey 2. Well-rounded aciviies wih regard o Company sakeholders (1) Respecing he Ani-Monopoly Law and assurance of a level playing field (2) Fair selecion of suppliers (3) Gifs and enerainmen (4) Dealing wih governmen agencies and public officials (5) Poliics 3. Relaionship wih anisocial groups and individuals 4. Behavior and responsibiliy as an individual and a company member (1) Avoidance of conflics of ineress (2) Assuming a job in anoher organizaion (3) Personal invesmen (4) Workplace environmen (5) Poliical and religious aciviies (6) Accurae reporing and recording (7) Hones and reliable performance 5. Proecion of company asses and business informaion (1) Proecion of angible and inangible asses of he company (2) Obligaion o reurn company asses when leaving he company (3) Confidenialiy of informaion (4) Proecing and respecing oher companies righs (5) Governmen agencies (6) Managing compuer daa 6. Compliance (1) Compliance wih relevan laws and regulaions (2) Insider informaion (3) Compliance regarding inernaional ransacion (4) Inellecual propery Chaper 2 Implemenaion Sysem 1. Nikon Business Conduc Commiee 2. Responsibiliies of secion leaders Chaper 3 Inquiry Services and Conacs Chaper 4 Misconduc and Legislaive Acion 1. Misconduc 2. Legislaive acion Nikon Charer of Corporae Behavior 1. Healhy corporae aciviy The Nikon Group endeavors o obey relaed laws, regulaions and in-house rules, which are suppored by he exercise of fair and ehical business pracices and by he use of good judgmen, in order o gain rus from cusomers, shareholders, employees, business parners and sociey. 2. Responsibiliy o sociey as a corporae ciizen As a corporae ciizen ha is responsible for he fuure of he region, he naion, and he world, he Nikon Group endeavors o promoe business aciviies ha ake ino accoun human righs proecions, improved welfare and he proecion of environmenal and naural resources, among ohers, o conribue o he healhy developmen of sociey. 3. Proecion of he naural environmen Environmenal conservaion is a growing concern worldwide, and individuals and corporaions are direcly responsible for conserving he environmen. The Nikon Group also srives o proec he naural environmen. 4. Provision of useful goods and services for sociey An imporan reason for he Nikon Group s exisence is o conribue o he developmen of sociey and he economy hrough our business aciviies, including he producion of high qualiy producs and he provision of excellen services. 5. Transparen operaing aciviies The Nikon Group consanly srives o ensure ha our operaing aciviies are fair and ransparen, and in accordance wih local social norms. 6. Proecion of human righs Many people wih diverse backgrounds work wihin he Nikon Group. The Nikon Group pays careful aenion o respecing individual human righs and o reaing people wih respec, so ha each individual can concenrae on working and producing good resuls wihou fear of discriminaion. 7. Provision of a healhy and safe workplace Ensuring our employees healh and safey is a fundamenal principle underlying proacive business developmen and he success of our employees in heir individual lives. The Nikon Group endeavors o obey relaed laws, regulaions, and in-house rules o ensure healhy and safe workplaces for all of our employees. 8. Developmen and uilizaion of human resources The Nikon Group aims o be a self-susained professional group where employees are able o develop new knowledge for heir jobs as he workplace changes. To aain his aim, he Nikon Group provides sound and flexible workplaces in order o adap as our business aciviies expand hroughou he world. 9. Fair employmen opporuniy The Nikon Group employs people wih excellen skills and experience regardless of heir naionaliy and gender, and heir achievemens are based on a meri policy. 1. Accurae public relaions The Nikon Group makes imely and accurae disclosure of corporae informaion for beer communicaion wih is sakeholders and sociey. 11. Responsibiliy of op managemen Top managemen and employees in managerial posiions wihin each of he Nikon Group s business divisions mus undersand ha hey play an essenial role in realizing he spiri of he Charer of Corporae Behavior, and hus, in addiion o leading by example, promise o develop he inernal infrasrucure o ensure ha he Charer of Corporae Behavior is disseminaed o everyone concerned. When any inciden occurs ha may violae he Charer of Corporae Behavior, op managemen will ake immediae correcive measures o find he cause and preven is recurrence, and will deal severely wih all people involved in he maer, including op managemen iself where appropriae. 12

13 Compliance Secion and CSR Secion Aciviies Code of Conduc Holine The Compliance Secion provides raining and educaion o encourage compliance awareness among all Nikon Group employees. To deepen his awareness, i also uses he case mehod focusing on he environmen, informaion securiy and oher issues relaed o CSR. Furhermore, hrough his repor he CSR Secion aims o foser communicaion wih sakeholders by offering a comprehensive inroducion o he Nikon Group s CSR effors. I is hoped ha sakeholders will provide heir opinions and views so ha hey can be incorporaed ino fuure aciviies. Compliance Training A wide range of educaion and raining programs have been inroduced o promoe undersanding of he Nikon Charer of Corporae Behavior and Nikon Code of Conduc among all employees. Training for op managemen is provided by ouside insrucors, while raining for managemen level employees in he Nikon Group is conduced by Compliance Secion saff members. Original raining programs developed by he Compliance Secion offer an ouline explanaion of CSR and compliance and involve group discussions of case sudies and oher aciviies. For exra flexibiliy, e-learning is also employed o verify undersanding of he Nikon Code of Conduc among boh employees and direcors. Sudy Groups in which he Compliance Secion Paricipaes Nikon esablished he Code of Conduc Holine o provide consulaion in he even of a siuaion arising ha runs couner o he Nikon Code of Conduc. Handled by he Compliance Secion, he consulaions are conduced wihou revealing names and personal informaion o sricly proec he privacy of he individual seeking consulaion and avoid any adverse impac on human affairs or he way he or she is reaed. When necessary, consulaions are deal wih by he Business Conduc Subcommiee. Repors concerning he Whisleblower Proecion Ac enforced in April 26 are also handled by he Code of Conduc Holine. Code of Conduc Holine Flow Char Consuler Nikon Group Direcors Employees Shor-erm conrac saff Temporary saff Par ime saff Temporary saff from an agency Consulaion (anonymous) Telephone In-house mail Direc consulaion Findings/ communicaion of response General Affairs Deparmen Compliance Secion Code of Conduc Holine Cooperaion Cooperaion Cooperaion Relaed deparmens Repor Business Conduc Subcommiee Designaion of invesigaion/ communicaion of response, counermeasures o preven recurrence CSR Managemen CSR Aciviies Promoion Targe Nikon managers Promoed Nikon managers Nikon recruis Nikon Group managers Training program Group raining + case mehod Group raining + case mehod Group raining Group raining + case mehod Inroducion of he Code of Conduc Coordinaor Sysem Time 3 hours 2 hours 1 hour 3 hours Due o he significan consrains of ime and locaion ha dicae when Nikon Group employees can receive raining, in addiion o implemenaion of raining, he Compliance Secion has inroduced a Code of Conduc Coordinaor Sysem o enable independen raining a separae deparmens. In his sysem, he head of a deparmen or a nominaed individual acs as a coordinaor o vigorously promoe compliance wihin ha deparmen. Coordinaor orienaion and raining documens are provided by he Compliance Secion. Compliance Percepion Monioring During Ocober, which was seleced as Compliance Enhancemen Monh o coincide wih he Business Ehics Monh of he Japan Business Federaion, awareness of business ehics is reviewed and employees are assessed o ascerain heir degree of undersanding of he Nikon Code of Conduc. A he same ime, awareness of he Code of Conduc Holine is also enhanced. The resuls of hese evaluaions are made available on he Group inrane, and educaional aciviies are implemened hrough compliance raining and code of conduc coordinaors o assure improvemens where necessary a all imes. Nikon Code of Conduc Quesionnaire Resuls Excellen Awareness of he word compliance Reading of he Nikon Charer of Corporae Behavior and Nikon Code of Conduc Reading of Nikon Code of Conduc cases Acion in line wih he Nikon Code of Conduc and he Nikon Rules of Acion guidelines Posure when facing orders ha breach he law and conravene he code of conduc Posure on discovering breaches of he law and conravenion of he code of conduc Good Poor Bad Awareness of he Code of Conduc Holine Evaluaion of he influence of business conduc effors on work Evaluaion of he influence of business conduc effors on he enire Group Evaluaion of Nikon Group code of conduc effors

14 Social Topics Relaionship wih Sakeholders Wih he aim of gaining he confidence of sakeholders, he Nikon Group has implemened a wide range of measures o enhance communicaion wih all of is sakeholders. Nikon Group Sakeholders The Nikon Group defines all of is cusomers, shareholders, employees, business parners and sociey as a whole as sakeholders, and makes every effor o mee all of heir expecaions. Sociey Cusomers Nikon Group Shareholders Business Parners Employees Basic Sance Towards Sakeholders Relaionship wih Sakeholders Social Topics As i develops business worldwide, he Nikon Group bears responsibiliy for a diverse range of sakeholders. To mainain a good relaionship wih hese sakeholders and furher srenghen ha relaionship, wo-way communicaion is a vial consideraion. By communicaing wih as many sakeholders as possible Nikon acquires an undersanding of heir inenions and desires. I hen applies his knowledge during policy planning and when making oher decisions o work owards he resoluion of problems if hey arise. Through aciviies such as his, Nikon aims o gain he confidence and rus of is sakeholders as a company ha coninues o be highly appreciaed. Communicaion Resuls To achieve meaningful communicaion wih is sakeholders, Nikon applies differen mehods depending on he sakeholder o acquire a broader range of informaion, which in urn enables more effecive uilizaion. Sakeholder Major means of communicaion Informaion uilizaion resuls Cusomers Shareholders, invesors Employees Business parners Sociey All Cusomer saisfacion surveys, quesionnaires Cusomer Suppor Ceners o answer inquiries Produc pamphles, deailed produc manuals Explanaion meeings Plan ours Visis o corporae invesors (Japan, overseas) Inerviews wih corporae invesors, analyss Fac books, annual repors (prined maerial) Invesor informaion (websie) Business repors (prined maerial) General meeing of shareholders In-house publicaions In-house informaion sharing sysems Procuremen policy explanaion meeings Qualiy improvemen meeings, opinion exchange meeings Sponsorships Social conribuion aciviies Websie Public relaions magazines, corporae profile (prined maerial) Improved producs, services, ec. As above Deeper undersanding of producs Reflecs managemen objecives, ec. Deeper undersanding of he company among paricipans Reflecs managemen objecives, ec. As above As above Deeper undersanding of he company among users Deeper undersanding of he company among readers Reflecs overall managemen, ec. Improved in-house communicaion As above Improved procuremen mehods, ec. Improved qualiy, ec. Improved brand sraegy, planning for new iniiaives, ec. Improved social conribuion aciviies, planning for new iniiaives, ec. Reflecs overall managemen, ec. Deeper undersanding of he company among readers 14

15 Relaionship wih Cusomers Improving Cusomer Saisfacion and Service Response A basic sance of he Nikon Group is o make social and economic conribuions hrough aciviies ha provide producs and services useful for sociey. Every effor is being made a each Nikon company o creae a business srucure ha bes mees cusomer needs. Imaging Company In addiion o providing ousanding image-relaed producs, paricularly digial cameras, he Imaging Company offers promp cusomer suppor and exra convenience wih service ceners and call ceners o handle inquiries and requess for repairs. Assisance is also provided by an exensive Frequenly Asked Quesions (FAQ) lis and a sreaming video Look and Lisen Manual on he websie. Elsewhere, o quickly analyze and answer inquiries from around he world concerning requess for producs and produc qualiy, he company is implemening measures o esablish an appropriae in-house srucure and sysem ha includes overseas Group companies. As a resul of such effors, Nikon was highly raed by cusomers in he Nikkei Business magazine s 26 Afer Service Survey, and for he second year running was voed he op company for afer service saisfacion in he Digial Camera Secion. This was he sevenh ime he Nikkei Business magazine had conduced he survey, and he fourh ime Nikon had gained he number one posiion. The company has also esablished a special deparmen o gaher and analyze cusomer opinions and demands and apply his valuable informaion o produc improvemen and he planning and developmen of new producs. For example, a separaely sold remoe conrol was provided for he D7 digial single reflex camera, bu since here were many requess from cusomers for a cable release, a jack enabling connecion of a separaely sold remoe cord was added o he D7s successor model. In cerain regions a service is also in place o add a remoe cord connecion jack o he D7. Suppor Aciviies As well as promp repairs if equipmen breaks down, he Precision Equipmen Company aims o provide suppor hrough planning mainenance and cusomer assisance o susain a high rae of operaion and high produciviy. To achieve his, precise monioring and analysis of equipmen operaing condiions are essenial. Analysis based on over 2 years of sepper developmen, field service experience and ongoing acquisiion of new echnologies will enable he company o offer proposals and recommendaions and he evenual esablishmen of acion plans. Surveying and Improving Cusomer Saisfacion To ascerain he effeciveness of suppor aciviies, regular cusomer saisfacion surveys are conduced in Japan. Opinions ha were frequenly voiced in his year s survey ogeher wih measures for improvemen are shown below. Opinion Improvemens Relaed o field echnician skill Skill varies widely among individuals Skill varies widely depending on he equipmen Inroducion of long-erm manufacuring process raining Preparaion of a work plan and acion shee ha includes he supervisor Relaed o suppor inquiries and communicaion wih he suppor force Informaion sharing is insufficien Escalaion resuls in longer response ime Newly Esablished Global Engineering Suppor Deparmen Social Topics Relaionship wih Cusomers Insrumens Company Precision Equipmen Company Alhough he Precision Equipmen Company manufacures seppers for IC and LCD display producion, is relaion wih cusomers is more han simply supplying equipmen. The company believes ha o assure cusomer saisfacion i is vial o communicae wih hem and provide follow-up suppor while offering useful recommendaions. Communicaion and Suppor Services and Suppor Sysem Cusomer requess and opinions are gladly received by he Precision Equipmen Company iself in Japan and by direcly conrolled affiliaes and heir branch offices overseas. This informaion is passed on o he Suppor Deparmen where personnel work as a eam o respond as quickly as possible. To provide faser response in he field of IC seppers, a Global Engineering Suppor Deparmen was esablished as he backbone of suppor aciviies. Nikon Imaging Cener Wih he cooperaion of prominen universiies worldwide, Nikon has opened Nikon Imaging Ceners for microscopes wih he aim of conribuing o he field of bioechnology. A presen, ceners have been esablished in Harvard Universiy in he Unied Saes, Heidelberg Universiy in Germany, Oxford Universiy in he UK, and Hokkaido Universiy in Japan. The ceners are operaed by full-ime saff a each of he universiies, and play an imporan role in educaion and research relaed o he applicaion of imaging echnologies in he bioechnology field by enabling researchers and sudens o use he laes microscopes and equipmen. The laes research informaion acquired from hese imaging ceners is refleced in he developmen of new producs and echnologies. Repair Service Sysem (in Japan) A he hear of Nikon s Cusomer Service Deparmen here is a suppor sysem for repairs ha are conduced hrough sales subsidiaries and disribuors. Wih he consolidaion of all domesic sales subsidiaries in April 26, measures are now underway o provide repair suppor naionwide and services ha beer saisfy cusomer needs. The company also holds new produc raining sessions and repair echnique raining sessions for disribuors as par if is on-going effors o provide cusomers wih higher qualiy services. 15

16 Social Topics Relaionship wih Cusomers Produc and Service Qualiy Conrol Emphasizing he conceps of focusing on cusomers and op prioriy o qualiy, he Nikon Group conducs daily producion and relaed business aciviies applying he idea of produc and service qualiy o safey, environmenal conservaion, funcionaliy, performance and reliabiliy wih he aim of providing even higher qualiy producs. Policies and Sysems for Qualiy Conrol Produc Safey Assurance Relaionship wih Cusomers Social Topics Based on is long-sanding concep of op prioriy o qualiy, he Nikon Group s corporae objecive is agains a background of ousanding echnological capabiliy, o provide he world wih superb qualiy hrough is producs and he laes services, and by doing so conribue o he lives and culures of people worldwide. To achieve his objecive, i esablished he Qualiy Conrol Direcive (QCD) as he basic regulaions for qualiy conrol, and is providing informaion Group-wide concerning basic policy and pracical means of implemenaion. Each company has also se up a Qualiy Assurance Deparmen, focusing on qualiy a he developmen and design sages and conducing reliabiliy ess and inspecions during he manufacuring process o verify produc qualiy. The Qualiy Conrol Direcive was esablished o horoughly srenghen he qualiy assurance sysem hrough a consolidaed effor ha includes subsidiaries and hrough compliance wih he 2 version of ISO91. Measures are currenly in progress o esablish a qualiy assurance sysem for he enire Nikon Group. ISO91 Cerificaion All business deparmens and major subsidiaries have acquired ISO91 cerificaion and business is conduced in line wih he ISO91 QA Manual. Deparmens ha have no acquired ISO91 cerificaion use he QCD as a procedure manual. Cooperaing companies ha also undersand he Nikon Group idea of op prioriy o qualiy have enered ino an agreemen wih he Nikon Group concerning qualiy assurance. When called for, cerificaion is acquired wih he cooperaion of a qualified ISO91 audior. The Business Guidelines specify Sufficien Assurance of Produc Safey, and o his aim producs are planned and designed aking ino consideraion safey from he planning sage hrough o heir enire life. Design is conduced in line wih he Safey Design Principle and oher guidelines drawn up based on inernaional sandards, and safey is verified hrough measures such as design review, prooypes and inspecion on he producion line. When required, cerificaion of safey is acquired from a hird-pary conrol body. As well as verificaion of prooype and produc safey by he Produc Safey Tesing Laboraory esablished by he European cerificaion body es laboraory TÜV SÜD (TÜV SÜD Produc Service GmbH, Germany), he level of performance of examiners is sricly reviewed before cerificaion o assure ha only safe producs reach cusomers. Qualiy Conrol Commiee Managemen In line wih Nikon s Philosophy and Corporae Objecives, he Qualiy Conrol Commiee holds meeings o deliberae and deermine basic policies and basic issues relaed o qualiy conrol. The managemen policy for he Commiee is o make revisions when appropriae o enhance he qualiy conrol sysem so ha i operaes in a imely, effecive manner, and o inform relaed deparmens of any decisions made while promoing qualiy conrol aciviies. ISO/IEC1725 (General requiremens for he compeence of esing and calibraion laboraories) Response o Qualiy Problems Qualiy Conrol Audiing Qualiy conrol audiing is conduced by he Chairman of he Qualiy Conrol Commiee and involves inspecion and verificaion of he saus of qualiy conrol aciviies, reaching as far as Group companies. Informaion acquired is hen assessed appropriaely wih he aim of improving boh qualiy and efficiency. In he even of somehing unaccepable being discovered a an audied deparmen, ways o correc and improve he siuaion are poined ou, and if necessary he qualiy conrol policy is amended o boos qualiy and efficiency. If he maer is serious, i is repored o he Execuive Commiee and inernal conrol procedures are implemened. The Nikon Group makes every effor o assure ha cusomers feel secure when using is producs. However, in he unlikely even of a problem arising, a sysem has always been in place o enable rapid response from he perspecive of consumer safey. In 25, i was discovered ha on rare occasions he EN-EL3 Li-ion rechargeable baery for digial single reflex cameras overheaed, and i was judged ha his could pose he risk of fire. As soon as word arrived ha four accidens had occurred worldwide due o he baery overheaing, he Nikon Group volunarily decided o recall he produc, made announcemens in newspapers and on is websie, and proceeded wih he recall. Forunaely he baery was no involved in any serious accidens bu relevan deparmens conduced exhausive qualiy conrol o preven his kind of problem occurring in he fuure. Improvemens are coninually being made o assure ha cusomers can use all Nikon Group producs wih confidence. 16

17 Personal Informaion Proecion The Nikon Group believes ha dealing wih personal informaion in a proper manner is an imporan social responsibiliy and srives o proec personal informaion. Basic Policy In compliance wih he Personal Informaion Proecion Law, fully enforced since April 1, 25, he Nikon Group has implemened provisions responding o legal obligaions. The enire Group has also implemened a range of counermeasures o mainain a consan conrol sysem. Nikon Group Privacy Proecion Policy The Nikon Group Privacy Proecion Policy concerning he appropriae proecion of personal informaion was declared on he websie by he Presiden, Member of he Board, CEO and COO of Nikon Corporaion, who is he direcor in charge of personal informaion in he Nikon Group. Deails of how Group companies are dealing wih personal informaion based on he above policy are available a heir individual websies. Educaion and Enlighenmen Wih he aim of enhancing conrol over personal informaion, a bookle eniled A Guide o Personal Informaion Proecion has been disribued o all Nikon Group employees. Inquiries can also be made a he Informaion Managemen Execuive Office. Social Topics Relaionship wih Cusomers Commimen o General Informaion Managemen Fully aware of he imporance of informaion managemen from he viewpoin of CSR, he Nikon Group is aking seps o achieve horough informaion managemen in general as well as proecing personal informaion. To furher opimize informaion managemen, amendmens o Nikon s basic rules of informaion managemen as specified in he Informaion Managemen Rules and in subregulaions such as Informaion Securiy Regulaions are phased in when deemed necessary. Based on he abovemenioned Informaion Managemen Rules, he rules for managemen mehods in compliance wih he fundamenal idea of securiy conrol were recenly clarified wih he formulaion of he Guideline for Confidenialiy Classificaion which was disseminaed hroughou he Group. Through such measures as audiing, Nikon aims o furher enhance classificaion specificaions and managemen se down in he Guideline for Confidenialiy Classificaion. Informaion managemen educaion programs for all Nikon Group employees using e-learning and oher mehods have also been implemened o deepen awareness and undersanding. Informaion Conrol Sysem Company and Uni Level Informaion managemen officers (company head level) Designaion Appoinmen Guidance Assisan, depuy Informaion managemen represenaive (deparmen head level) Person in charge of OA promoion Guidance Audi Guidance, educaion Execuive Office Office of Informaion Managemen Office of Informaion Securiy Inquiries, consulaions General user *For deails concerning personal informaion proecion, please visi: hp:// 17

18 Social Topics Relaionship wih Shareholders and Invesors To acquire he undersanding and rus of shareholders and invesors, Nikon provides a wide range of imely informaion as par of is vigorous approach o communicaion. We also make every effor o enhance feedback o managemen. Disclosure o Shareholders and Invesors Communicaion wih Shareholders and Invesors Relaionship wih Shareholders and Invesors Social Topics Basic Disclosure Policy In line wih is corporae philosophy of rusworhiness and creaiviy and corporae objecive of sincere, exremely ransparen managemen o gain he confidence of cusomers, shareholders, employees, business parners and sociey, Nikon s basic sance is he horough disclosure of corporae informaion. As well as observing he disclosure sandards of he Tokyo Sock Exchange, we coninue o foser a deeper undersanding among shareholders and invesors by providing a wide range of informaion covering everyhing from managemen sance, business aciviies and producs o echnology. Disclosure Tools and Timely Disclosure When disclosing informaion, Nikon applies mehods ha are appropriae for he deails being disclosed. Informaion is provided hrough he mass media wih news releases and official announcemens, and hrough oher means such as explanaion meeings, fac books, annual repors, business repors and oher prined maerial. Wih he spread of he Inerne in recen years and he increasing need o ransmi informaion via a websie, we esablished an Invesor Relaions secion on our websie o provide he laes news. Timely disclosure o invesors is furher assured by he use of he Tokyo Sock Exchange s Timely Disclosure Sysem (TDne). Communicaion Policy Nikon employs a variey of means o enable ineracive communicaion wih is shareholders and invesors as a way of promoing a deeper undersanding of he company. A he same ime, he acive paricipaion of op managemen assures ha heir opinions are more effecively applied o managemen. IR Aciviies For insiuional invesors and analyss, Nikon holds financial resuls conferences, medium erm managemen plan conferences and oher meeings in Japan. I also paricipaes in conferences organized by securiies companies and is sriving o increase he number of opporuniies i has for direc conac wih invesors. To augmen communicaion wih overseas invesors, regular visis are paid o corporae invesors in Europe, he Unied Saes and Asia. Invesor informaion for individual invesors is primarily provided via he Nikon websie. In April 26, a plan our was held on a rial basis for he nonprofi organizaion Japan Individual Invesor Associaion. The feedback of informaion from hese and oher aciviies is applied o improve operaions. Major IR Aciviies in Fiscal 25 IR aciviy deails Record Medium erm managemen plan conference March Financial resuls conferences May, November Technology presenaion December Plan ours Abou 1/year Fac Book 26 Annual Repor 26 Websie Invesor Relaions hp:// Componen Raio of Major Shareholders Inerviews wih insiuional invesors/ analyss Visis o overseas insiuional invesors Visis o domesic insiuional invesors Abou 3/year Europe and he Unied Saes 2, Asia 1 Abou 2/year Individuals and ohers 12.36% Oher corporaions 7.41% Foreign insiuions 28.79% Securiies companies 1.39% Financial insiuions 5.5% Paricipaion in conference organized by securiies companies Paricipaion in small meeings organized by securiies companies Sepember Abou 1/year As of he end of March 26 18

19 Relaionship wih Employees Nikon employees come from a wide range of backgrounds. The company s basic sance is o respec individual diversiy and human righs, o rea people fairly wihou prejudice, and o provide an environmen in which dedicaed work leading o good resuls is possible. Fair Recrui Selecion Personnel Sysem and Wage Sysem To bring in a broad range of compeen people, Nikon regularly recruis new graduaes as well as individuals wih experience of working in a company. A he employmen inerviews for new graduaes, we place paricular emphasis on creaing an amosphere, even before he inerview, ha will draw ou heir inrinsic capabiliies. For individuals wih previous experience, we have esablished job descripion-free hiring recruimen erms o enable us o arac aspirans from a wide range of fields regardless of heir previous line of work. Employing he Disabled When placing employees, Nikon akes ino consideraion individual abiliy and apiude, and fuure career developmen. For example, a Nikon Corporaion, wo-way communicaion beween superiors and subordinaes is promoed hrough such measures as he objecive-oriened inerview sysem, and oher sysems shown below have been inroduced o deepen undersanding of assessmen. Profile inerviews are also conduced every auumn beween superiors and subordinaes focusing on such issues as career developmen direcion and requess and desires concerning he company. By providing a comforable workplace where people wih a disabiliy can make he mos of heir skills and apiudes, Nikon aims o increase hiring of he disabled as par of is social responsibiliies as a corporaion. Wih his hough in mind, he excepional subsidiary Nikon Tsubasa Inc. was esablished in 21. Here, a eam of highly experience saff and insrucors offer meiculous suppor for life in a company o enable individuals o realize heir full poenial. We have already reached he sauory employmen raio of people wih disabiliies of 1.8% (he employmen rae in 26 was 1.86%), and are currenly making srenuous effors o creae new workplaces for he disabled. Employmen Quoa Rae for he Disabled % Nikon Corporaion 1.49 Nikon Corporaion Personnel Sysem Diagram <Career developmen and appropriae placemen scheme> Profile inerview Career counseling Recruiing and free agen sysems Performance of duies and responsibiliies <Execuion of duies by hose responsible, and a nururing scheme> Objecive-oriened inerview sysem Assessmen and raing noificaion Personnel evaluaion feedback sysem <Personnel evaluaion sysem> Responsibiliy level assessmen Performance assessmen Bonus <Salary sysem> <Role and qualificaion sysem> <Promoion sysem> Promoion Promoion/ demoion Monhly salary Social Topics Relaionship wih Employees 1.4 Naional average Pos-reiremen Coninued Employmen Sysem 1. 2 Uilizing Foreigners Year Wih he aim of developing as a global corporaion, and also wih an eye on he uilizaion of foreigners in overseas subsidiaries, Nikon is always looking for excepional saff, regardless of heir naionaliy. Employees from various counries working in a wide range of differen specialis fields are making a huge conribuion o our business resuls. Since amendmen of he Golden Age Employmen Sabiliy Ac in April 26, corporaions are now required o provide coninued employmen for people aged 6 or older. Aiming a being a company where senior ciizens can coninue working provided hey have he incenive and abiliy, Nikon inroduced is Acive Senior Employee Sysem in April 26. Wih his sysem, employees reaching reiremen age (6) are reemployed provided hey saisfy cerain condiions. Iniially, he age limi for reemploymen was 63 bu his is being gradually exended, and from April 29 i is scheduled o be se o 65 years of age. Ahead of his sysem, NIKON STAFF SERVICE CORPORATION was esablished in 24 o suppor he uilizaion of senior ciizens by finding reemploymen for reirees a Nikon Corporaion. Through hese and oher measures, we aim o comprehensively promoe he uilizaion of senior ciizens. 19

20 Social Topics Relaionship wih Employees Developing Human Resources Healh and Safey Relaionship wih Employees Social Topics When developing human resources, o personify he corporae philosophy of Trusworhiness and Creaiviy, he personnel required are defined as individuals who can: Work for he eam, hink on your own, and ac. Employees mus also clearly show he capabiliies required for heir pos. Nikon s approach o human resource developmen involves he provision of various raining and self-developmen programs o enable employees o maser and demonsrae hese requiremens. As well as verificaion of he adequacy and effec of each of he programs, annual plans are proposed and reinforced every year hrough review and revision. Posiion and Training Flow of Nikon Corporaion Employees (Fiscal 26 version) Level Vision formaion, collecive behavior reform, awareness of role 36º diagnosis of behavior characerisics The Nikon healh and safey arges and policies were deermined afer deliberaion by he Healh and Safey Commiee, which is composed of members from boh managemen and labor. Afer receiving operaions sie arges and policies, each work sie esablishes is own Work Sie Healh and Safey Targes, and everyone paricipaes in relaed aciviies. Manufacuring is conduced based on healh and safey managemen rules ha clearly specify he responsibiliies of each work sie manager for producion line healh and safey. I goes wihou saying ha relaed laws are also sricly observed o assure ha work proceeds wih due regard for safey. Recenly, specific measures have been implemened wih he focus on he prevenion of healh impairmen due o overwork and menal healh. Fiscal 26 Healh and Safey Aciviy Objecives and Policies Targe: A healhy, safe, vibran corporaion Policy 1 Policy 2 Policy 3 Safey consideraions From no accidens o no danger Promoe healh improvemen suppor aciviies Creae a comforable workplace 2 Specialy, managemen Key posiion General Manager Leadership Managemen base Newly-appoined manager Employees promoed o professional/managemen level Examinaion for promoion Examinaion for promoion Pre-promoion learning Managemen by Objecive for newly upgraded junior saff level 5 employees Third year as employee Second half of new employee raining Firs half of new employee raining Improved abiliy o achieve objecives Pre-promoion learning C/GL premanagemen Employees promoed o senior saff level Mid-career workers Eligible individuals Faciliaion Empowermen Mind counseling MBA simple course Self coaching MBA essenials course Teamwork Aspirans Rouine Measures Work sie parols by Plan Healh and Safey Commiee members (once a monh) Work sie self inspecion by Plan Healh and Safey Promoion Commiee members (once a monh) Recen Measures January 26 Comprehensive checks of Nikon Group safey, acciden and crime prevenion measures (including domesic and overseas subsidiaries) July 26 Inroducion and implemenaion of a Rehabiliaion Suppor Sysem for employee on sick leave (fewer work days and shorer working hours) Nikon Corporaion Healh and Safey Managemen Organizaion Healh and Safey Managers General Healh and Safey Manager Safey Manager Healh Manager Healh and Safey Promoer Indusrial physician (indusrial denis) Chief Healh and Safey Manager Operaions Chief Person in charge of operaions Organizaion Supervisors Direcor in charge of Healh and Safey General Healh and Safey Manager (General Manager, ec.) Deparmen Healh and Safey Manager (General Manager, ec.) Secion Healh and Safey Manager (Manager, ec.) Healh and Safey Assisan Manager (Chief, ec.) Person in charge of healh and safey (foreman, ec.) Healh and Safey Promoer Commiees Healh and Safey Commiee Plan Healh and Safey Commiee Workplace Healh and Safey Meeings

21 Work-Life Balance Sysem Nikon decided on he monhs of April and May 26 as he erm for is Working Hours Campaigns. The goal of he campaigns was o provide an opporuniy for individuals a each work sie o re-examine he way hey work and o reconsider he imporance of work sie managemen. Deails of he various campaigns are shown below. In 26 he campaigns were run in April, May and Ocober bu from nex year campaigns will be run during Ocober every year. Way of Working Review Campaign Go Home Early Campaign (No Overime Day) (Shor Overime Day) implemened In principle, Shor Overime Day means overime of no longer han 2 hours Review of Meeings Ten meeing rules displayed in meeing rooms, on bullein boards, ec. Inroducion o ime managemen echniques Time managemen world rends and examples of he approaches of oher companies disribued o all employees via he Inrane Poser Campaign Collecion of ideas for posers concerning review of how employees work, wih display of he winning enries Cos Awareness Enhancemen Campaign Display of cos per minue (meeing rooms, ec.) Display of cos per minue of a meeing room, ec. (average cos per employee) Communicaion and Healh Promoion Campaign Daily Managemen Scores Checking of morning and lunchime assembly enforcemen, observaion of he 5S concep, meeing forma, ec., by he secion in charge of human resources Campaign erm April 26 Implemenaion coninued afer he compleion of he campaign April, May 26 April 26 (parly run from March) Work and Family Suppor Sysem Working Hours Campaign Poser Winning enry Nikon inroduced a sysem ha enables employees wih childcare and nursing care responsibiliies o work wih peace of mind. Nikon Corporaion Childcare and Nursing Care Sysem Childcare relaed sysem Nursing care relaed sysem Seps o alleviae commuing sress during pregnancy (saggered hours/shorening of working hours by up o 2 hours) Time provided for hospial visis during pregnancy (1 hour max. 1 day number of hospial-visiing days) Childcare leave (as a general rule, unil he child is 1 year old bu can be exended o 1 year 6 monhs due o day nursery availabiliy and oher facors) Spouse maerniy leave (2 days special leave) Choice of work hours (unil he child is 1 year old: work ime shorened by up o 4 hours per day/saggered hours) Shorened work hours (unil he child complees year 3 of elemenary school: up o 2 hours per day) Overime limiaion and exempion from lae nigh work Nursing care leave (up o 1 year) Shorened work hours (up o 4 hours per day for 1 year) Special accumulaed leave for acciden, illness or nursing care (accumulaion of up o 4 days of paid leave ha canno be carried over possible) Nursing leave (up o 5 days per year for nursing preelemenary school children) Overime limiaion and exempion from lae nigh work Social Topics Relaionship wih Employees Auonomous Improvemen of he Workplace Selecion of a workplace problem by secion managers, and preparaion of plans for improvemen Model Workplace Selecion and Publiciy Selecion of a workplace wih advanced work and ime managemen, and inroducion hrough in-house newsleers Lecures by Corporae Lawyers Relaed o Workers Acciden Compensaion sandards, responsibiliy for worker safey, employer s liabiliy, ec. Lecures regarding daily managemen poins of concern Pressure-Free Campaign Thorough implemenaion of No Overime Day and Shor Overime Day Implemenaion of parols a offices Thorough implemenaion of a Paid Leave Acquisiion Plan Deerminaion in March of paid half-erm leave of 2 days and 1 day on he personal anniversary, wih horough display a workplaces Ocober 26 Ocober 26 April, May 26 Record of Leave Before and Afer Childbirh/ Childcare Leave and Reurn o Work Mosly everyone reurn o work afer aking leave. Fiscal year Fiscal year Fiscal year Maerniy leave Afer maerniy leave Male 2 1 Union members Male Female Toal Childcare leave acquired Childcare Reurned Male Female leave Female Record of Nursing Care Leave Acquisiion and Reurn o Work Uni: people Lef Reurned company afer during childcare childcare leave leave Uni: people Reurned 2 2 Record of Paid Leave Acquisiion Employees ake an average of 6% of he 2 days of paid leave offered, which is a high rae. Uni: days Employees Male Female Toal

22 Social Topics Relaionship wih Business Parners Relaionship wih Local Communiies From a long-erm, inernaional angle, Nikon is carrying ou a wide range of procuremen aciviies boh in Japan and overseas. From is basic sance as a corporae ciizen conribuing o sociey, he Nikon Group coninues o expand is social conribuion aciviies. Fair, Hones Procuremen Aciviies in Diverse Fields Relaionship wih Business Parners/Relaionship wih Local Communiies Social Topics Nikon performs is procuremen aciviies in line wih he four basic policies of: 1. Open-door procuremen 2. Procuremen based on fair compeiion 3. Procuremen based on he concep of parnership 4. Green procuremen Based on he previous Qualiy Conrol Direcive (QCD), Nikon conducs procuremen honesly and fairly while rigorously promoing procuremen aciviies wih is business parners ha pay he umos aenion o he global environmen. Communicaion wih Business Parners Wih preservaion of he global environmen in mind, Nikon places prioriy on procuring iems ha have been produced aking ino consideraion he influence hey have on he environmen from he ime hey are used unil disposal. We also give prioriy o suppliers who ake proacive seps a he manufacuring sage o conserve he environmen. Green Procuremen Orienaion for Suppliers Following on from he esablishmen of he Nikon Green Procuremen Sandards in Ocober 25, we held six orienaion sessions for vendors o deepen heir undersanding, which we are working owards consolidaing wih he Nikon Green Procuremen Sandards Agreemen. Supervised by he Nikon CSR Commiee, he business parner orienaion sessions ouline he Nikon Green Procuremen Sandards and provide explanaions of Nikon s Corporae Policy, he Nikon Basic Environmenal Managemen Policy, he Nikon Basic Procuremen Policy and he Nikon Basic Policy for Green Procuremen. Nikon Salon Permanen Phoo Galleries Wih he aim of popularizing and advancing phoographic culure, hese spaces were opened in 1968 o exhibi ousanding phoographic works by boh amaeurs and professionals in a wide range of fields. Various aciviies relaed o phoography are conduced a he galleries in Ginza and Shinjuku in Tokyo, and in Osaka. Inernaional Cooperaion for Major Overseas Disasers In response o he damage and suffering resuling from he sunami caused by he Sumara Earhquake in 24, Nikon was quick o provide donaions for relief operaions by he Japan Red Cross Sociey. Elsewhere, in Thailand, anoher sunamidamaged counry, he overseas Group company Nikon (Thailand) Co., Ld. gave conribuions from employees and a donaion from he company o he Thai Royal Naional Disaser Relief Fund. In recogniion of he donaion, His Majesy King Bhumibol Adulyadej presened he company wih a shield of graiude in November 25. Nikon also offered donaions a he ime of he earhquake in norhern Pakisan in Ocober 25. Suppor for Groups Relaed o he Unied Naions Nikon provides assisance for groups supporing he aciviies of he Unied Naions. Foundaion: UNICEF Japan Approved specified nonprofi organizaion: Japan Associaion for he Unied Naions World Food Program Suppor for Medical Care and Welfare Groups Nikon also advocaes medical aid and suppor for he disabled. Foundaion: Japan Ani-Tuberculosis Associaion Foundaion: Children s Cancer Associaion of Japan Foundaion: Japan Spors Associaion for he Disabled (Inernaional Wheelchair Baskeball Tournamen) Foundaion: UNICEF Japan 22 Supplier Qualiy Improvemen Aciviies When a qualiy problem arises, wih he cooperaion of he Developmen and Design Division, he Procuremen Deparmen and Qualiy Assurance Deparmen verify he siuaion wih he vendor and implemen qualiy conrol measures based on ISO91. Esablishmen of he Green Procuremen Sub-Commiee This newly esablished commiee, which is made up of deparmen chiefs and Group company presidens, holds regular liaison meeings every quarer erm o deermine vial green procuremen issues. Environmenal Managemen Saus Survey Since 1999, Nikon has conduced an Environmenal Conservaion Survey using quesionnaires o ascerain how well business parners are addressing environmenal managemen. Our aim is o cooperae wih hem o raise heir assessmen levels. So far abou 5 companies have paricipaed in he survey. *For deails concerning he Nikon Basic Policy for Green Procuremen please visi: hp:// Suppor and Cooperaion for Various Groups Suppor for he Digial Camera Voluneer Associaion Esablished o enable anyone o enjoy phoography and experience new forms of expression, he Digial Camera Voluneer Associaion is operaed by former Nikon employees, ciizens of Shinagawa Ward, Tokyo, and oher commiee members. Nikon sponsors he aciviies of he associaion and provides suppor hrough he loan of camera equipmen. The above associaion has also provided courses enabling middle aged people o experience digial cameras firs-hand, and has begun offering similar courses for elemenary school sudens. As a firs sep, courses covering opics such as he role of phoography in sociey, digial camera operaion and learning how o prin phoos were conduced for fifh year sudens a an elemenary school in Shinagawa Ward, Tokyo. Digial camera workshops are scheduled for 4 oher schools in he same ward.

23 Ineracion wih Communiies Around Producion Sies Supporing Global Environmenal Conservaion As a corporae ciizen, Nikon promoes various regional aciviies o preserve he environmen and improve safey. Kumagaya Plan (Kumagaya, Saiama Prefecure) Cleanup Aciviies a he souh exi of Kagohara Saion on he JR (Japan Railways) Takasaki Line In November 25, cleanup work was conduced in he square by he souh exi of Kagohara Saion, he neares saion o he Kumagaya Plan. The area, where bus sops for he couresy buses of nearby companies are locaed, is also used by Nikon. As one response o global environmenal problems, Nikon provides suppor for he Earhwach Japan Insiue, which dispaches voluneers o conduc global environmenal research aciviies, as well as research insiues, foundaions and oher organizaions. I also provides regional naure conservaion groups and bird waching evens wih binoculars and oher observaion ools while supporing a wide range of oher evens o boos communicaion wih naure lovers. Nikon firmly approves of he aciviies shown below. Earhwach Japan Sagamihara Plan (Sagamihara, Kanagawa Prefecure) Paricipaion in he Illegal Wase Eliminaion Campaign In November of 25, employees of he Sagamihara Plan ook par in he Sagamihara Illegal Wase Eliminaion Campaign organized by he Sagamihara Ciy Beauificaion Movemen Promoion Council. Various kinds of illegally dumped wase were removed from he ciy. Dispaching voluneers o paricipae in scienific field work and raining, his is an inernaional environmenal NGO ha conducs global environmenal conservaion. The Naure Conservaion Sociey of Japan Through aciviies based on scienific research, ogeher wih regional NGOs and researchers, his naure conservaion NGO srives o achieve a susainable sociey in which people and naure can coexis in harmony. Foundaion for Global Peace and Environmen This foundaion holds he annual worldwide Inernaional Children s Paining Compeiion on he Environmen joinly organized by he Unied Naions Environmen Programme (UNEP). Social Topics Relaionship wih Local Communiies Social Service Leave Mio Plan (Mio, Ibaraki Prefecure) Paricipaion in he Environmen Fair The Mio Plan se up a display booh a he 25 Environmen Fair held in November as par of he I Love Ibaraki Prefecure Fesival. The display feaured an observaion corner where visiors could use he Nikon Fieldmicroscope o examine he hachlings of freshwaer corbiculas found in he area of Hinuma near Mio ciy. Also included in he display was he 8iTP-DPH phase conras dispersion microscope for measuring asbesos, providing visiors wih a firs-hand view of asbesos. Since April 1994, Nikon has auhorized leave for employees involved in voluneer work ha makes a large social conribuion. Pas Voluneer Aciviies Paricipaion in he UNESCO World Terakoya Movemen in India Paricipaion in he Japan Mounain Acciden Counermeasure Conference Paricipaion in inernaional goodwill conferences, ec. Using Social Service Leave Misuoshi Masuda 2nd Developmen Secion, 1s Developmen Deparmen LCD Equipmen Division Precision Equipmen Company Taking advanage of social service leave, I paricipaed in he UNESCO Funds-in-Trus for Youh Exchange Youh Sudy Tour o India for wo weeks from March 26 hrough April 8 in 26 under he UNESCO-NGO Youh Exchange Programme of he Japanese Funds-in-Trus for he Promoion of Inernaional Cooperaion and Muual Undersanding. I was able o observe he siuaion regarding lieracy educaion (UNESCO World Terakoya Movemen) in India, which is suppored by UNESCO associaions in Japan, and deepen exchange wih he local people. In he fuure, I would like o furher inernaional undersanding and cooperaion hrough UNESCO s voluneer aciviies. *For deails concerning he Nikon Group s responsibiliies o sociey, please visi: hp:// 23

24 Environmenal Topics Nikon and he Environmen Nikon is aiming o achieve an environmenally harmonious organizaion hroughou he enire Nikon Group. Nikon and he Environmen A corporaion is like a living organism, funcioning wihin he global environmen. As i grows, i provides producs and services o sociey and coninues o grow, and during his ime i consumes various resources and energy, and generaes numerous ypes of wase. I is crucial ha we recognize he imporance of recycling and conservaion paricularly reducions in he use of energy and resources. We mus also coninue working o reduce our wase oupu unil i has virually been eliminaed. I is imperaive ha corporaions be aware of he impac heir operaions may be having on he environmen, and implemen more sophisicaed ecological managemen programs. Nikon is coninuing is effors o reduce wase maerials, and we are also acively pursuing unique aciviies such as he developmen of eco-glass, which will significanly reduce our environmenal loading. Nikon operaes based on is corporae philosophy, Trusworhiness and Creaiviy, and oday we are applying he experience and echnology gained hrough decades of work in he field o form a new, environmenally harmonious corporaion. Nikon and he Environmen Environmenal Topics Air Disposal Processing Exhaus gases CO2 NOx SOx Ohers Wase Developmen Design Procuremen Producion Packaging Transpor Producs Durabiliy Energy-saving Processing Recycling Raw maerials Componens Chemical subsances Disposal Energy Elecriciy Fossil fuels Waer Wase waer Phosphorous Oils Suspended solids Ohers Processing Disposal 24

25 Environmenal Policy Aiming for a recycling sociey, Nikon is implemening is environmenal policy across he Nikon Group. The Nikon Basic Environmenal Managemen Policy Purpose of he Policy Nikon enaced he Nikon Basic Environmenal Managemen Policy in 1992 in order o express is commimen o improvemens in is local environmen as well as globally, and o ac as he foundaion for is environmenal managemen aciviies. Nikon believes ha polluion prevenion measures and he efficien use of resources are vial seps ha mus be aken in order o be able o hand on o he nex generaion a healhy environmen ha is capable of supporing he coninued developmen of sociey. Based on he Vision Nikon 21 corporae sraegy formulaed in March 2, in fiscal 22, he Nikon policy underwen furher major revision in response o he anicipaed needs of he coming recycling sociey. An ouline of he acion guidelines is presened below. Acion Guidelines (1) We will make every effor o promoe wase reducion, reuse and recycling, while encouraging energy and resource conservaion, wase reducion and conscienious wase processing, wih he goal of creaing an environmen-conscious recycling sociey. (2) We will perform environmenal and safey reviews a every sage of planning, developmen and design, in order o provide producs ha fully comply wih environmenal proecion aims. (3) A every sage of producion, disribuion, use and disposal, we will acively inroduce maerials and equipmen ha are effecive in proecing he environmen, srive o develop and improve echnologies in his area, and work o minimize environmenal burdens. (4) We will mee arges for reducion of environmenal burdens and use of harmful subsances, and coninue o improve our environmenal managemen sysem hrough environmenal audis and oher means. (5) We will develop and follow a rigorous code of sandards, in addiion o observing all environmenal conservaion reaies, naional and regional laws and regulaions. (6) We will conduc ongoing educaion programs o furher employee knowledge of environmenal issues and promoe employee involvemen in environmenal aciviies. (7) We will provide suppliers wih guidance and informaion o promoe opimal environmenal proecion aciviies. (8) We will paricipae acively in he environmenal proecion programs of sociey a large, and implemen informaion disclosure. Environmenal Topics Environmenal Policy/Primary Environmenal Loading Primary Environmenal Loading Primary environmenal loading daa for he Nikon Group in fiscal 25 is indicaed in he able below. INPUT Energy Designaed PRTR subsances OUTPUT Energy Designaed PRTR subsance exhaus Disposal Elecriciy Gas Heavy oil Waer 1.1-dichloro-1-fluroroehane Dichloromehanefluoropropane Xylene Hexavalen chrome Toluene Lead and lead compounds Nickel compounds Boron and boron compounds Elecriciy Gas Heavy oil 1.1-dichloro-1-fluroroehane Dichloropenafluoropropane Dichloromehane Hexavalen chrome Toluene Lead and lead compounds Nickel compounds Boron and boron compounds Amoun of wase generaed Amoun recycled Amoun of landfill Nikon 164,99 6, , ,522 12, ,99 2, Subsidiaries 86, 1,745 2, ,58 1,847 6, ,757 1,643 7 Mwh Thousand m 3 kl Thousand m 3 -CO2 -CO2 -CO2 Targe Plans Ohi Plan Yokohama Plan Sagamihara Plan Kumagaya Plan Mio Plan Targe Manufacuring Subsidiaries Tochigi Nikon Mio Nikon Sendai Nikon Zao Nikon Kurobane Nikon 25

26 Environmenal Topics Environmenal Acion Plan Nikon se down is medium erm environmenal arges in 2. The Environmenal Targes for Fiscal 25, which are incorporaed in he Nikon Environmenal Acion Plan for Fiscal 25, are broadly divided ino 13 caegories represening produc and workplace environmens as indicaed below. The columns on he righ show he resuls for fiscal 25 and Nikon s evaluaion. Environmenal Acion Plan Environmenal Topics The Nikon Environmen Acion Plan for Fiscal 25 Produc Environmen Theme Energy conservaion (prevenion of global warming) Reducion in use of hazardous chemical subsances Green procuremen Packaging and disribuion Fiscal 25 environmenal arges Fiscal 25 resuls Evaluaion [Energy efficiency] More han 3% improvemen in overall energy efficiency of new producs released, compared wih figures of similar producs already released [Eco-glass usage raio] Use of Eco-glass in 1% of new opical designs for consumer producs, and a leas 96% for indusrial producs [Lead-free solder] Use of lead-free prined circui boards for elecronic componens in more han 1% of consumer producs and a leas 5% of new indusrial producs by fiscal year end [Hexavalen chrome, lead, cadmium, mercury, PBB, PBDE, PVC] Compleion of preparaion o clear RoHS Direcive requiremens [Ozone layer-depleing subsances] Reducion of IC and LCD seppers using HCFC as a refrigeran o fewer han 15% of all producs [Reducion in use of hazardous chemical subsances] Performance invesigaion and managemen implemened for all consumer producs (including sales promoion and repair pars, ec.) and major componens of seleced indusrial producs [Greenhouse effec gas emissions] Gauging CO2 emissions in disribuion in Japan 83% (83%) of he 23 applicable new producs, achieved 3% or greaer improvemen in energy efficiency These producs achieved simple average improvemen of 57% (62%) Consumer producs: 1% (1%) Indusrial producs: 96.5% (95.5%) Consumer producs: 1% (61%) Indusrial producs: 67% (2%) Preparaion o mee RoHS direcive requiremens compleed (Major reducion) 15.9% (23%) Targe achieved in boh consumer and indusrial fields Deermined fundamenal assessmen policy and implemened esimaion Workplace Environmen Theme Fiscal 25 environmenal arges Fiscal 25 resuls Evaluaion Energy conservaion (prevenion of global warming) Wase reducion Reducion in use of hazardous chemical subsances Green procuremen ISO141 [Greenhouse effec gas emissions] Reducion in annual emissions (convered o CO2) per ne sales of a leas 25%, compared o levels for fiscal 22 [Zero emissions] Coninuance of zero-emission sysems a all plans and major manufacuring subsidiaries in Japan, and heir exensive applicaion o oher workplaces [Wase generaion] Reducion in wase generaion of a leas 25%, compared o fiscal 2 [Chlorinaed organic solvens] Eliminaion of use of chlorinaed organic solvens in wash a workplaces, including major manufacuring subsidiaries in Japan, by fiscal year end [Eco-procuremen producs] Conformiy wih guidelines for a leas 8% of all producs [Inegraion of cerificaion] Nikon cerificaion acquired 29% reducion (25% reducion) Targe achieved 21% reducion (18% reducion) Targe achieved 89% (79%) Targe achieved *In he secion eniled Fiscal 25 resuls, he daa in parenhesis are resuls hrough fiscal 24. *Symbols: Circle indicaes progress on schedule; riangle denoes insufficien effor. 26

27 Wih is sighs on fiscal 28, Nikon inroduced a new hree-year plan, he Nikon Environmenal Acion Plan for Fiscal 26, which incorporaes considerable revisions o he previous plan. Through inegraion of is Environmenal Managemen Sysem (EMS), Nikon aims o spread undersanding of he managemen s sance owards he environmen hroughou he enire Nikon Group, while developing EMS aciviies more effecively and more efficienly. A he same ime, i will coninue o expand he scope of he acion plan o include group companies boh in Japan and overseas. The Nikon Environmenal Acion Plan for Fiscal 26 Produc Environmen Theme Mid-erm/long-erm environmenal arges Targes for fiscal 26 Energy conservaion (prevenion of global warming) Reducion in use of hazardous chemical subsances Green procuremen [Energy efficiency] More han 3% improvemen in overall energy efficiency of new producs released beween fiscal 26 and fiscal 28, compared o similar exising producs [Eco-glass usage raio] Mainaining use of Eco-glass in new opical designs for 1% of consumer producs and for a leas 98% of indusrial producs by fiscal 27 Targeing a leas 97% shipmen raio in opical glass division by fiscal 28 [Lead-free solder] 1% use of lead-free PC boards for new elecronic componens for consumer producs by fiscal 26, and hereafer, and a leas 95% use for indusrial producs by fiscal 28 [Hexavalen chrome, lead, cadmium, mercury, PBB, PBDE, PVC] Coninued compliance wih RoHS Direcive and esablish managemen sysem by fiscal 26 Drasic reducion in use of hexavalen chrome in surface processes [Ozone layer-depleing subsances] Toal eliminaion of HCFC as a refrigeran in IC and LCD seppers shipped in fiscal 28 [Reducion in use of hazardous chemical subsances] Implemenaion of green procuremen aciviies for all producs in consumer and indusrial fields Improvemen of 3% or greaer 1% of consumer producs, a leas 97% of indusrial producs and a leas 95% in shipmen raio of opical glass Mainaining 1% use for consumer producs, and a leas 75% use for indusrial producs Coninued compliance and esablish of a managemen sysem Reducion Reducion of producs uilizing HCFC o 12% or fewer of oal producs shipped Coninuaion of green procuremen in consumer fields Implemenaion of green procuremen for major producs in indusrial field Environmenal Topics Environmenal Acion Plan Packaging and disribuion [Greenhouse effec gas emissions] Reducion in CO2 emissions of 3% compared wih fiscal 26 for disribuion in Japan, by fiscal 28 Implemenaion of he process o gauge CO2 emissions in disribuion in Japan Workplace Environmen Theme Mid-erm/long-erm environmenal arges Targes for fiscal 26 Energy conservaion (prevenion of global warming) Wase reducion Green procuremen ISO141 [Greenhouse effec gas emissions] Reducion in annual emissions (convered CO2) per ne sales of 35% by fiscal 21 and a leas 3% by fiscal 28, boh compared o fiscal 21, a all Nikon plans and major manufacuring subsidiaries in Japan [Wase generaion] Reducion in amoun of wase generaed of a leas 2%, compared o fiscal 2, a all Nikon plans and major manufacuring subsidiaries in Japan [Eco-procuremen producs] Compliance wih guidelines for a leas 9% of all producs by fiscal 26 and hereafer [Inegraion of Environmenal Managemen Sysems] Complee sysem inegraion for major overseas manufacuring subsidiaries by fiscal 27 Complee sysem inegraion for major Nikon Group places of business by fiscal 28 Reducion of a leas 2% Reducion of a leas 1% Conformiy wih guidelines for a leas 9% of all producs Cerificaion of Nikon Corporaion and major manufacuring subsidiaries in Japan compleed *Mid-erm/long-erm environmenal arges are for fiscal 28 unless specified oherwise *For deails concerning Nikon Group environmenal aciviies, please visi: hp:// 27

28 Fuji Bldg., 2-3, Marunouchi 3-chome, Chiyoda-ku, Tokyo , Japan hp:// This repor is prined on 1% recycled paper and uses soy oil ink.