CEO Message

Status of Nissha Business

Junya Suzuki, President and CEO, Chairman of the Board

Since our founding in Kyoto in 1929, we at Nissha have embraced the spirit of engaging in “monozukuri,” or manufacturing, no others can compete with. Armed with our printing technology, we pushed beyond the boundaries of traditional printing on paper to decorate the surface of plastic products and venture into the field of touch panels. The 1990s into the 2000s, in particular, saw Nissha achieve growth in global markets.

In recent years, however, the Devices business, which has developed into our mainstay, requires an optimized portfolio of target markets, as it relies heavily on the consumer electronics industry prone to sharp fluctuations in demand. The Industrial Materials business and the Information and Communication business have not yet achieved a full recovery of performance and need to improve profitability through an accelerated reorganization of business structure. Recognizing these challenges, in April 2015 we started operation of the Fifth Medium-term Business Plan spanning a three-year period. “We will acquire and merge new core technologies into printing technologies and completely reorganize our business portfolio in global growth markets”—in line with this medium-term vision, a reorganization strategy went underway for rebuilding well-balanced business and product portfolios. In fiscal year 2016, we made progress through overseas M&A activity in the metallized paper business, the raising of growth funds in the capital market, and improved profitability in the Information and Communication business.

Nissha’s CSR

The Nissha corporate mission states “We are committed to pursuing a mutually trustful Co-existence with society through our business activities utilizing a unique technology development, based on Printing as a core.” Any company that seeks to establish a presence must achieve financial growth for itself and at the same time create value for society. We at Nissha believe that realizing the “Co-existence” articulated in our corporate mission is the very corporate social responsibility (CSR) we are required to fulfill.

Our brand statement “Empowering Your Vision” expresses the relationship of co-existence between Nissha—we who aim to realize our corporate mission—and our stakeholders. That is, both we and our stakeholders have a vision, and by mutually affecting each other toward realizing it, together we hope to create value for the future.

Promoting CSR from a Global Perspective

In April 2012, we joined the United Nations Global Compact and declared our commitment in the areas of human rights, labor, the environment, and anti-corruption. In April 2015, we established a CSR Committee and defined the target areas of our activities as basic CSR and strategic CSR.

In basic CSR, we work to conform to standards based on the global code of conduct provided by the Electronic Industry Citizenship Coalition (EICC). The EICC requires the building and operation of management systems in the areas of labor, safety and health, the environment, and ethics. Through these efforts, we aim to strengthen our foundation as a corporation with respect to environment, social, and governance (ESG), and be a company trusted by global society and chosen by our customers.

In 2014, some of our factories in Japan submitted to CSR auditing by our customers, who are major players in the electronics industry. Based on standards more stringent than those of the EICC, the auditors made many suggestions. Through company-wide efforts, however, we completed corrective action. Similar auditing conducted at another factory in 2016 uncovered far fewer instances of noncompliance, testifying to a steady reduction in CSR risks.

In strategic CSR, we work to identify material issues related to CSR toward enhancing our corporate value over the longer term. Material issues include eradication of discrimination and forced labor, respect for diversity, promotion of safety and health, protection of the environment, and anti-corruption. While we address these challenges faced by global society in response to customer demand, our efforts in strategic CSR endeavor to go further and recognize global CSR challenges. We believe this initiative will help us grow into a company that our stakeholders will feel safe in choosing, and that it will help us create even more business opportunities.

Strengthening Corporate Governance

Recognizing corporate governance as a top management priority, we strive to ensure transparency and fairness in our business activities, thereby promoting prompt and resolute decision-making and enhancing our corporate value over the long term.

In 2008, we adopted the corporate officer system to segregate the strategy formulation and management oversight functions of the Board of Directors from the business execution function of corporate officers. And since 2007, we make active efforts to appoint independent directors to ensure transparency and fairness in our business activities, and formulate strategies and practice management oversight drawing on the insight of the independent directors. Following the election of one additional outside director in June 2016, independent directors account for 50% of our Board of Directors.

In October 2015, we formulated and disclosed a Corporate Governance Policy, presenting our approach to improving management transparency and fortifying corporate governance toward achieving sustainable growth and enhancing our corporate value. In a follow-up to this move, we established a Nomination and Remuneration Committee for drawing on the insight of independent directors to ensure objectivity and fairness in the nomination and remuneration of directors. Further, we launched efforts to evaluate the effectiveness of our Board of Directors once a year with the aim of improving its functions.

In Closing

From the 1990s onward, since Nissha operations expanded into the global arena, we have continued in our pursuit of customer satisfaction while aspiring to be a truly global company. Moving forward, we recognize that facing up to the challenges of global society is vital to our efforts in sustainable management.

The United Nations adopted a set of Sustainable Development Goals (SDGs) in September 2015, calling for all sectors around the world to contribute to the achievement of sustainability. In addition to this, we at Nissha believe it is important to listen to our stakeholders at all times and reflect your voice in our business activities.

We hope you will give CSR Report 2016 a read and offer us your candid views and advice.
We look forward to your continued guidance and encouragement in the future.
June 2016
Junya Suzuki
President and CEO
Chairman of the Board

Junya Suzuki

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