Corporate Social Responsibility Report 2007 · Company Outline (as of March 31, 2007) * Net sales shown are for external customers by business segment (excludes internal net sales

Corporate SocialResponsibility Report

2007

0

20,000

40,000

60,000

80,000

(million yen)

100,000

30,48931,486

5,904

31,271

6,120

39,049

8,317 8,596 6,408

38,663 38,360

25,622 27,554

41,38946,744

75,97174,53972,63078,804

84,172

200420032002 2005 2006

Electronic components Electro-chemical materials/Soldering systemsInformation equipment

(FY)

Japan

Asia(excl. Japan)

Europe 3%Americas 3%

16%

78%

Japan

Asia(excl. Japan)

Europe 7%Americas 3%

49%

41%

Electronic components Electro-chemical materials Soldering systems* Information equipment

* Soldering systems segment products are employed in the production of printed circuit boards.

Switching power supplyPassenger aircraft

Monitoringsystem

Communicationsstation

Videophone terminalPortable speech aid

Hospital/Welfare facility

AC adaptorThermal cutoffSolder pasteLiquid solder resistN2 reflow system

Digital camera

Power transformerCoilThermal cutoffAir reflow systemSoldering system

Audio equipment

Solder paste FluxAir reflow system Soldering system

DVD recorder

ReactorPiezoelectric highvoltage power supplyCoilThermal cutoffSolder pasteFluxLiquid solder resistAir reflow systemSoldering system

Air-conditionerPiezoelectric inverter Switch-mode power transformerThermal cutoff Solder pasteFlux Liquid solder resistAir reflow system Soldering system

LCD television

Power transformerAir reflow system

Intercom

AC adaptorSolder paste Flux

Electronic keyboard

Piezoelectric ceramic transducerUltrasonic cleaner

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000(million yen)

200420032002

1,774

2005 2006

120

2,157

822

2,608

601

3,850

773

3,896

1,557

(FY)

Ordinary income Net income Composition of net sales by region (consolidated)

Composition of employees by region (consolidated)

01 TAMURA CSR REPORT 2007

Company name

President

Head offi ce

Business description

Capital

Shares

Number of employees

Net sales

Tamura—“Your One and Only Company” Supporting People’s Lives Everywhere

Tamura Corporation

Naoki Tamura

1-19-43 Higashi-Oizumi, Nerima-ku, Tokyo, Japan

Electronic components segment

Electro-chemical materials segment

Soldering systems segment

Information equipment segment

¥11,829 million

Authorized 252,000,000 shares

Issued and outstanding 75,067,736 shares

Closing date March 31

Number of shareholders 9,615

7,247 (consolidated)

¥84,172 million (consolidated)

Company Outline (as of March 31, 2007)

* Net sales shown are for external customers by business segment (excludes internal net sales between different businesses).

* The amount of net sales for each fiscal year includes other operations (transportation, warehousing and insurance).

Sales (consolidated)

Ordinary income/Net income (consolidated)

Electronic components Electro-chemical materials Soldering systems* Information equipment

* Soldering systems segment products are employed in the production of printed circuit boards.

Switching power supplyPassenger aircraft

Monitoringsystem

Communicationsstation

Videophone terminalPortable speech aid

Hospital/Welfare facility

AC adaptorThermal cutoffSolder pasteLiquid solder resistN2 reflow system

Digital camera

Power transformerCoilThermal cutoffAir reflow systemSoldering system

Audio equipment

Thermal cutoffAir reflow systemSoldering system

Lighting

CoilThermal cutoffFluxLiquid solder resistSolder pasteN2 reflow system

Video game console

Power transformerGas leak detector

Switch-mode power transformer Reactor Thermal cutoffSolder paste Flux Liquid solder resistSoldering system Air reflow system

Refrigerator

Power transformer ReactorAir reflow system Soldering system

Induction cooker

Reactor Coil Thermal cutoff Automotive liquid solder resist Automotive solder pasteFlux Carbon paste N2 reflow system N2 soldering system

Automobile

Air reflow system Soldering systemMicrowave oven

Switch-mode power transformerReactor Thermal cutoffLiquid solder resist

Washing machine

Solder paste FluxAir reflow system Soldering system

DVD recorder

ReactorPiezoelectric highvoltage power supplyCoilThermal cutoffSolder pasteFluxLiquid solder resistAir reflow systemSoldering system

Air-conditionerPiezoelectric inverter Switch-mode power transformerThermal cutoff Solder pasteFlux Liquid solder resistAir reflow system Soldering system

LCD television

Power transformerAir reflow system

Intercom

AC adaptorSolder paste Flux

Electronic keyboard

Piezoelectric ceramic transducerUltrasonic cleaner

Audio mixing consoleWireless intercom system

Broadcast stationCoilSwitch-mode power transformer

SatellitePulse transformerSolder pasteFlux

Marine radar

Piezoelectric ceramic oscillatorSolder pasteFlux

Fishfinder

Wireless microphoneTrain station

Switch-mode power transformer Power transformerReactor Current sensor

Industrial robot

Mixing console for outside broadcasting van

Outside broadcasting van

Piezoelectric ceramic transformerCoilThermal cutoffSolder pasteFluxLiquid solder resistAir reflow systemSoldering systemN2 reflow system

Computer printer

Piezoelectric inverterAC adaptorThermal cutoffLiquid solder resistSolder pasteFluxN2 reflow systemWireless LAN

Personal computer

AC adaptorThermal cutoffLiquid solder resistSolder pasteCarbon pasteAir reflow system

Mobile phoneLiquid solder resist

Wristwatch

02TAMURA CSR REPORT 2007

The Tamura Group’s products, whether materials or end products, are present almost everywhere in our daily lives. Their scope of application encompasses

home appliances and mobile products, industrial robots, medical equipment, and even space development programs. Tamura’s “one and only” expertise

are also employed in wireless devices and various telecommunication systems and broadcast equipment that help create ubiquitous broadband networks.

Here are some of the ways in which the Tamura Group’s products are being employed.

Japan

Tamura Kaken Corporation

Tamura FA System Corporation

Tamura Seiko Corporation

Wakayanagi Tamura Corporation

Gunma Tamura Corporation

Aizu Tamura Corporation

Tohoku Tamura Corporation

Tamura Distribution Center Inc.

Anzen Dengu Co., Ltd.

Major companies in the Tamura Group

Overseas

Tamura Electronics (H.K.) Ltd.

Tamura Electronics (S.Z.) Co., Ltd.

Tamura Electronics (Huizhou) Co., Ltd.

Tamura Electronics (M) SDN. BHD.

Tamura Europe Limited

Tamura Corporation of America

Tamura Power Technologies de Mexico, S.A., DE C.V.0


Top Commitment

Tamura aims to be “your one and only company,” in order to realize sustainable growth and gain the trust of society

Contributing to society through outstanding technology and products

Company Outline

Top Commitment/Contents

Editorial Policy

Management Philosophy

CSR at Tamura Group

Corporate Governance

Compliance & Risk Management

Special Feature

Tamura CSR: A Historical Perspective

Employee Round-table Discussion

Tamura Group Business

Electronic Components Segment

Information Equipment Segment

Electro-chemical Materials Segment

Soldering Systems Segment

Contents

01-02

03-04

04

05

06

07

08

09-10

11-12

13

14

15

16

Since its founding in 1924, the Tamura Group has faithfully followed

the business principle of contributing to society by developing leading-

edge technology and manufacturing exceptional products. Starting

in business with the production of transformers, the Tamura Group

has continued to expand in the areas of electronic components,

electro-chemical materials, and soldering systems, and has designed,

developed and manufactured information equipment. Behind the

company’s ability to succeed in business over the past 83 years has

been its constant pursuit of high quality and assiduous refinement of

technology as it focuses on providing products and services that meet

the requirements of customers and society at large.

The Tamura Group refers to this thinking and approach as creating

a “unique identity” and uses this as the company’s business slogan.

It has also clarified its Mission and Corporate Principles, compiling

them as a set of guidelines for all employees in order to realize its

corporate goals.

Society has paid increased attention in recent years to corporate

social responsibility (CSR).

The Tamura Group, for its part, has been energetically promoting

a scheme for strengthening its internal controls, a system of group

management and a system of corporate governance, such as through

the introduction of an ERP system* in 2005 into its main business bases

around the world. I view these as steps to give form to our cumulative

efforts over the years directed at creating a “unique identity” for

the company. Our history of social contribution and strict compliance

with laws and regulations has taken tangible shape through internal

rules based on our system of CSR. By making our CSR approach visible

we have achieved greater transparency and made it easier for all

employees to move in the same direction.

We have also introduced various measures to strengthen and

improve our organizational structure, such as by establishing

the CSR Promotion Project in October 2005 and the Compliance

Generalization Section in June 2006. On the international scene,

meanwhile, we established standards in January 2007 in a Code of

Conduct aimed at assisting directors and employees in their daily

business decisions. The Code of Conduct was prepared in three

languages: Japanese, English, and Chinese. * Enterprise Resource Planning (ERP); see MAPS system on page 17 for details.

CSR system built on cumulative efforts


Promoting protection of the environment worldwide

As an example of our belief that top priority must be placed on

protection of the environment around the world in all dimensions

of our business, we have always made an effort to minimize use of

substances that pollute the environment and use natural resources

effectively and efficiently. Also, while introducing environmental

measures such as reducing the generation of CO2 in our business

operations, conserving natural resources, and reducing waste, we

are also emphasizing the development and commercialization of

products such as lead-free solder paste and soldering systems that take

the environment into consideration. In the electronic components

segment, we have placed great importance on implementing

appropriate responses to environmental regulations such as the

European RoHS directive.

The two mainstay products of the Tamura Group are

transformers and power supplies. In effect, by raising the efficiency

of these products we contribute substantially to society from the

viewpoint of conserving natural resources and energy. As new

forms of energy, such as solar power, are promoted by society,

greater expectations are being held for the increasingly important

role power supply components can play. As a result, we will

continue in the future to develop and commercialize new products

in an effort to meet such expectations.

Each employee is expected to adopt a sincere attitude

The Tamura Group has many bases outside Japan today, and

about 80% of the employees developing the Group’s business

globally are non-Japanese nationals. Our basic approach in our

overseas operations up to now was to allow local subsidiaries to

manage themselves independently. Recently, however, we have

obtained ISO 14001 environmental management certification for

the entire group (electronic components segment and information

equipment segment), strengthened the internal system for closer

cooperation among companies in the Tamura Group, such as by

initiating integrated CSR procurements, and promoted regular

interaction between managers. This approach has borne fruit in terms

of improving product quality and differentiating our products from

those of our competitors. I am convinced this has become one of our

strengths in competing on the global stage.

As we conduct our CSR activities, it is important for employees to

appreciate our CSR philosophy and to express it in their regular duties.

This approach will contribute toward building a relationship of trust

with our stakeholders, leading to more meaningful dialogue with

them and to more pertinent initiatives in the future.

Social Performance Report

Customer Relations

Business Partner Relations/Shareholder and Investor Relations

Employee Relations

Social Contribution Activities

Environmental Performance Report

The Tamura Group Environmental Policy and Environmental Management Systems

Tamura Group Environmental Activities Report

Targets and achievements

Internal environmental audits, management review and other topics

Risk management and waste reduction

Report on Activities at Intended Global ISO 14001 Certification Sites

17

18

19

20

21

22-23

24

25

26

Tamura Corporation has been issuing annual environmental reports since fiscal 2002, but for fiscal 2007 we have added

a CSR report that provides information on social aspects. The significance of the Tamura Group to society was discussed

internally, mainly by the working group in charge of compiling the CSR report, and we have sought to convey this in an easy-

to-understand format. We sincerely hope that readers will provide us with their opinions and impressions of the report.

Editorial Policy

Reporting periodApril 1, 2006 to March 31, 2007 (Includes some activities in or after April 2007)

This report was prepared with reference to the following guidelines:

Sustainability Reporting Guidelines 2002, Global Reporting Initiative

Environmental Reporting Guidelines (2007 edition), Ministry of the Environment

Yoko Funato

Yasumitsu Higo

Jun Bamoto

Toshihiko Kobayashi

CSR Promotion Center Corporate Strategic Division

Corporate Support Group Corporate Management Division

Personnel Development and Training Group Human Resource Development Division

CSR Promotion Center Corporate Strategic Division

Kousuke Shimizu

Masayuki Muto

Yasuhisa Maiyama

Kuniyuki Yamazaki

Public Relations Group Corporate Strategic Division

Management Group Segment Control Center

Technical Management R&D Center Tamura Kaken Corporation

Sales Department Tamura FA System Corporation

Working group members for CSR Report 2007

Publication dateSeptember 2007

For further informationCSR Promotion Center, Corporate Strategic Division TEL: +81-49-284-5965 FAX: +81-49-284-9183 E-mail: [email protected]: http://www.tamura-ss.co.jp/en/IR information: http://www.tamura-ss.co.jp/en/finance/index.html

September 2007

President

Naoki Tamura

Mission

CorporatePrinciples

ConductGuidelines

The Tamura Group supplies an original range of products and services, highly regarded in the global electronics market, to satisfy the evolving needs of customers, employees and shareholders supporting the Group’s growth.

1. The management of the Tamura Group is based on businesses related to the requirements of the global electronics industry.2. The business of the Tamura Group is based on technologies that support rapidly diversifying customer needs, with a special

focus on high market value.3. The Tamura Group evaluates its employees with fairness and highly rates excellent performance and exceptional productivity.4. The Tamura Group is a responsible member of the global community and respects the laws and customs of the countries in

which it conducts business activities.5. The Tamura Group strives to protect the global environment, conserve natural resources and promote recycling.

We attach great importance to:1. Partnerships.2. Nurturing a spirit of creativity.3. Individuality.4. Social responsibility.

Mission

CorporatePrinciples

ConductGuidelines

The reason for the Tamura Group's existenceThe overriding concept

Basic management policy and publicly-declared attainment targets

Standards of thought and action to be observed constantly by executives and employees alikeStandards of thought and action to be observed constantly by executives and employees alike

Tamura Group Code of Conduct


Established in April 2000, the Tamura Group Mission consists of a primary Mission, complemented by a set of Corporate Principles and Conduct Guidelines. In addition to our aim to be “your one and only company,” this three-layered structure incorporates our desire to be a global company that is accepted by the international community, and also one which is a source of pride for its employees and which keeps their dreams alive.

Tamura Group Mission

Management Phi losophy

In January 2007, the Tamura Group Code of Conduct was established to elaborate on the Conduct Guidelines component of the Tamura Group Mission, which outlines how executives and employees should conduct themselves in day-to-day activities.

We believe it essential for the continuity of business activities that each and every executive and employee acknowledges the significance in the Tamura Group fulfilling its corporate social responsibility (CSR) through legal and ethical compliance, consideration of the global environment and social contribution, and also that they act in an appropriate manner. In support of this belief, the Code of Conduct was issued to provide executives and employees a set of standards to follow as they work within the international community. Efforts are underway to promulgate these ideas at all our Group companies.

1. Ensuringcustomertrustandsatisfaction

2. Acquiringthetrustofallshareholdersandstakeholdersinourbusinessactivities

3. Respectforhumanrights

4. Asafeandhealthyworkingenvironment

5. Freecompetitionandfairtrade

6. Prohibitionagainstinsidertrading

7. Prohibitionagainstinappropriatehospitalityorgifts

8. Prohibitionagainstinappropriatedealingswithpublicbodiesandinappropriatepoliticalcontributions

9. Compliancewithlawsandregulationsregardingimportandexportcontrolsforsecurity

10. Creation,protectionanduseofintellectualpropertyrightsandknow-how

11. Prohibitionagainstassociationwithanti-socialgroups

12. Prohibitionagainstcompetitionorconflictinginterests

13. Appropriateandtimelyinformationdisclosure

14.Appropriateprotectionandhandlingofinformation(corporateinformation,privateinformation,etc.)

15. Protectionofcompanyassets

16. Respectfortheglobalenvironment

17. Cooperationwiththeinternationalcommunityandco-existencewithlocalcommunities

Seventeen Aspects of Tamura Group Code of Conduct

We at Tamura aim to be “your one and only company,” perfecting our unique and superior fortes in order to provide products and services that satisfy customers and society.

Management Philosophy

Customer

Employee

Localcommunity

Businesspartner

Shareholder/Investor

Internationalcommunity

Global environment


CSR at Tamura Group

Keiichi Saito

Executive Officer

Together with environmental efforts, corporate promotional initiatives for legal and ethical compliance as well as social contribution activities have recently come under close scrutiny within the context of corporate social responsibility (CSR). The Tamura Group has sought to meet the demands of society in this day and age through steady implementation of CSR activities.

As touched upon in “Top Commitment,” we view CSR as a major element of our philosophy for corporate management. Consequently, we have established a new Group Code of Conduct and have built up a CSR framework that is intrinsically linked to management. For example, we formed the CSR Management Committee comprising key figures from both

inside and outside the Group and set about enhancing our structure for CSR activity promotion. We also integrated CSR into all measures constituting our 8th Medium-term Management Plan, which commenced in fiscal 2007.

Accordingly, we have expanded the environmentally-focused Environmental Report to encompass activities relating to both “legal and ethical compliance” and “social contribution.” The progressively integrated Tamura Group CSR Report will be issued annually.

The purpose of this report is to aid your understanding of Tamura Group CSR activities.

Keiichi Saito Chair, Executive Officer

Naoki TamuraPresident

Akimoto FujiyamaDirector / Executive Vice President

Takeo MinomiyaDirector

Takeshi YokoyamaGeneral Manager, Compliance Generalization Section

Yoichiro UdagawaAuditor

Haruko ShibumuraAttorney at Law

Yoshinobu HasezakiSenior Manager, CSR Promotion Center

Informationmanagement

Compliance/Corporateethics

Riskmanagement

Environment/Quality

Humanrights/Labor

Socialcontribution

CSRPromotionCenter

CSRManagementCommittee

In order for the Tamura Group to steadily proceed with CSR activities, it is creating a system linked to corporate management and bolstering the structure for promoting CSR.

CSR at Tamura Group

Message concerning CSR

Structure for promoting CSR activities

Stakeholders of Tamura Group

CSR Management Committee

Appointment/Dismissal


Supervision


Appointment/Dismissal Appointment/Dismissal

Reporting

Reporting

Reporting

Reporting

Reporting

Implementation of business operations

Approval of appointment / re-appointmentDetermine appropriateness of financial audits

Supervision

Supervision

Supervision

Internal auditMaintainingcompliance

Instruction/Supervision

Instruction/Supervision

Counsel

Management &Supervision

Implementation

General Meeting of Shareholders

Directors’ RemunerationCommittee 7 directors

(including 1 outside director)

Board of Directors Board of Auditors3 statutory auditors

(including 2 outside auditors)

Independent auditor

RepresentativeDirectors

Executive officers/Subsidiary representative directors

Internal AuditDepartment

Compliance Generalization Section

Head office divisions/Business divisions/Group companies

Executive meeting/Meeting of electronic components business segment directors/

Meeting of subsidiary directors

Corporate governance framework


Shareholders are of fundamental importance to management within the Tamura Group, and it is with them in mind that we aim to achieve management compliance with a team possessing a keen sense of responsibility and sound ethical standards. Improving the efficiency and transparency of management to maximize corporate value is therefore the basis of our corporate governance policy.

Approach to corporate governance

The Board of Auditors comprises three statutory auditors (including two outside auditors) whose auditing tasks include attendance at meetings of the Board of Directors, executive meetings and presentations on operating reports by directors and

As a means to avoid inconsistencies between management decision-making and executive functions, the directors of the board for the Tamura Group take on executive roles with responsibility over each of the business divisions under a "system of executive officers." Efficient implementation of business operations by directors is ensured through monthly convening of the Board of Directors, as well as monthly two-day executive meetings attended by directors and divisional officers who discuss matters relating to the operations of the Group and the monitoring of management.

Corporate governance framework The Tamura Group acknowledges s tab le and ef f i c ient management, appropriate accountability and compliance with laws and regulations, as well as in-house rules, as objectives of internal systems established to enhance management controls. Risk management, compliance and internal auditing have been identified as methods for achieving these objectives with structures being put in place accordingly.

Internal controls

The Financial Instruments and Exchange Law (Japanese version of Sarbanes-Oxley Act: J-SOX), which requires corporations to enhance financial auditing systems and internal controls, comes into effect from fiscal 2008. The Tamura Group set up a project in February 2007 for establishing J-SOX-compliant internal controls. By the end of fiscal 2006, plans had been formulated determining the scope of internal control enhancements, a schedule for completion, the structure of the project and an estimation of costs. During fiscal 2007, we will proceed with documentation, evaluation and improvement of model processes, and extend the project to cover overseas branches and affiliated companies.

executives, inspection of documents requiring authorization, and examination of the operations and financial standing of the main business facilities. The Internal Audit Office works in conjunction with statutory auditors to conduct internal audits each year of more than 30 bases in Japan and overseas belonging to Head Office or Group companies in line with an annual audit plan.


The Tamura Group is enhancing its corporate governance to help maximize corporate value through the Group's management.


Board of Directors and system of executive officers

System of statutory auditors and internal auditing

Compliance with J-SOX: Financial Instruments and Exchange Law

Division discovering/notified of the risk

Division discovering/notified of the risk

Level A Level B

Web-based Alarm Escalation Notification System and other

available communication methods

Web-based Alarm EscalationNotification System

TO: PresidentCC: related contact personnel

President instructs persons involved to take necessary action

Risk Management Task Force set up depending on risk severity, etc.

Risk management officer and related contact personnel specified for Level B risks

Risk management officer relays countermeasures/instructions to

related divisions

Confirmation of progress of countermeasure/instructions

Risk management officer reports proceedings/outcome to President

Response to Level A/Level B risks in accordance with Risk Management Regulations


As part of efforts to firmly establish, promulgate and strengthen a compliance framework for the Tamura Group as a whole, Compliance Organization Regulations were established in fiscal 2006. The Compliance Committee was set up, with the Representative Director and President appointed as chairman, as was the Compliance Generalization Section that would function independently of operational divisions. The Group has also been divided into seven units, each with its own compliance promotion officer seeking to maintain and enhance flexible structures for ensuring the legality of employee activities.

Compliance framework

Compl iance & Risk Management

The In-house Information Disclosure Regulations were established permitting employees to seek advice about compliance matters or to report a particular case of misconduct. The In-house Compliance Hotline is accessible via the Tamura Group intranet or a dedicated phone line. Allowing anonymous reports, prohibiting unfair treatment of the reporting employee and other similar provisions safeguard the rights of the person concerned and encourage employees to come forward with information leading to early detection of internal risks.

Security export controls are mechanisms for preventing the inappropriate use of products and technologies in foreign countries. We established a security export control framework in fiscal 2005 with the Representative Director and President assuming chief responsibility, and the Committee on Security Export Controls was set up to coordinate activities across the Group. Export control officers have also been posted to business divisions and shipping divisions to ensure proper implementation of tasks relating to security export controls.

In April 2005 we established Rules on Confidentiality, the purpose being to protect personal information, retain corporate secrets and prevent the leakage of such information outside the Tamura Group. Education and training is conducted for existing employees, new graduate recruits and new mid-career employees in order to fully enforce those rules. In fiscal 2006, we divided facilities into zones according to the required level of confidentiality and introduced a card-based identification system. A compilation of questions and answers touching on common situations relating to the Rules on Confidentiality is now available on the intranet and used in training.

Information security

The Risk Management Regulations stipulating methods of response to major risks affecting management (management

The Web-based Alarm Escalation Notification System has been set up on the intranet to facilitate expeditious reporting to management and risk management officers of all risks listed under Alarm Escalation Categories as stipulated by the Risk Management Regulations. A person who discovers or is notified of a state of affairs that falls under one of the categories enters the required information, which is then emailed automatically to the relevant risk management officer, related contact personnel (including managers) and the notifying person themselves. The information sent is then processed in line with rules on response to risks in accordance with the Risk Management Regulations, depending on the level of the risk.

We are pressing ahead with the establishment of rules and regulations relating to compliance and risk management, together with improvements to internal systems, in order to implement legal and ethical compliance as well as appropriately respond to a wide range of different management risk scenarios.

Compliance & Risk Management

In-house Compliance Hotline

Security export controls

Risk management

Risk Management Regulations

Web-based Alarm Escalation Notification System

risks) were established in April 2006. The basic provisions state that executives and employees shall unite in responding swiftly and calmly to management risks and that utmost priority shall be assigned to the protection and safeguarding of human life.

Risks have also been divided into Alarm Escalation Categories according to degrees of legal infringement, loss of credibility, danger of physical injury or loss of life, and loss of property. Risks to human life, such as accidents, disasters, emergency situations, serious offenses and the conduct of directors or subsidiary representatives, are also classified as either Level A (21 categories) or Level B (29 categories) risks depending on the severity of the outcome. Risk management officers assume responsibility for individual categories.

Radio store beginnings

Tamura CSR: A Historical Perspective

SpecialFeature

Tamura timeline 1920s 1930s 1950s


The Tamura Group, aiming to be “your one and only

company,” has expanded from its beginnings as a

town radio store. Looking back over the 83-years

since the Group’s inception, we asked Chairman

of the Board Itsuya Tamura about the inspiration

behind it all.

Tamura Corporation was founded as a small radio shop, the

Tamura Radio Store, in the Tokyo town of Okubo Hyakunin-cho

in 1924.

The founder of our company, Tokumatsu Tamura, was born

in Matsue, Shimane Prefecture, in 1886. After graduating from

high school, he became a newspaper reporter, but traveled to the

United States of America alone at age 20 to pursue his interest in

that nation’s advanced science and technology. He possessed a

true frontier spirit, working through the day and attending night

school where he mastered mechanical engineering. On returning

to Japan, Tokumatsu noticed the potential of radio in his home

country, where broadcasting was still only at an experimental

stage, and established the Tamura Radio Store.

Business first consisted mainly of sales, assembly and repair

of foreign-made audio products and components, but the

company soon succeeded in developing a transformer based on

information obtained from overseas and set about developing

and fabricating its own components. In 1939, Tamura Corporation

was established, marking the transition from “town radio

store” to “electronic components manufacturer.” At the time,

Tokumatsu expressed the conviction that persists within Tamura

even today: “We don’t have to be a big corporation. But we must

aim for world-class excellence in every single product we make.”

The advent of the postwar period of high economic growth

signified a major turning point for Tamura. The first Japan-made

transistor radio went on sale in 1955, spurring us to introduce

ways to mass-produce components for consumer products,

focusing on small-size transformers. It was a bold decision to

make as up until that point we had mainly been conducting

highly varied, low-volume production for government and

other public offices. We knew, however, that a company could

not survive without an identity and was constantly in need

of effective ways to stay ahead of its competitors by having

its strengths and unique qualities asserted. The market for

televisions, tape recorders and other household electronic

appliances grew rapidly, leading to a surge in demand for

transformers. Introducing a mass production system early

on enabled us to meet this swelling demand, establishing a

foundation for future growth.

After I became President in 1960, we tried to modernize our

corporate management. At the same time, we really began to

diversify, branching out into a number of different business fields,

including electro-chemical materials and information equipment.

From the late 60s and early 70s we started expanding overseas,

setting up production centers in locations such as Taiwan

and Malaysia. Our reorganization of domestic and overseas

operations continued as we sought to adapt to the emergence

of new forms of electronics and changing market composition.

Bases were established in US and European markets.

Even in those days, we were constantly concerned about

adhering to the Tamura policy of being not “number one,” but

the “one and only.”

Mass production and diversification of business

May 1924Tamura Radio Store established in Shinjuku, Tokyo

1926Own-brand radio

November 1939Tamura Corporation established

1930Low-frequency transformer for audio equipment

1931Own-brand electric phonograph

1937Transformer for broadcast equipment

1954Transistor radio transformer

1956Production of small cut-cores commences for the first time ever in Japan

1959Transformer for defense equipment

September 1958Tam Chemical Laboratory Co., Ltd. (now Tamura Kaken Corporation) established

1956Solderite—Japan’s first completely non-corrosive solder material

1957Solder paste

Elec

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s se

gmen

tEl

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al

mat

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Sold

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ent

5-tube radio

Tamura Radio Store in Okubo Hyakunin-cho, Yodobashi-ku

Electric phonograph under the Tamura Radio brand

First audio mixing console for broadcast stations

1960s 1970s 1980s 2000s1990s


Shining individuality leads to company growth Making progress by returning to our roots

While providing the best products in the world, Tokumatsu

pursued the management ideal of rewarding employees with

the best treatment in Japan. In addition to compensation,

the company supported the development of employees in

all manner of ways, for example creating opportunities for

younger employees to study electrical engineering through

evening classes.

Tamura advocates “establishing one’s identity through work”

as one of its Corporate Mottos. Nowadays a company, as well as

the people working there, must radiate some sort of individuality

in order to stay ahead of the competition. Employees need to

do more than just drift through a day at work. We want them to

act independently, take the initiative, and in doing so discover a

sense of joy and meaning.

In our expansion overseas, too, our basic policy has been to

entrust operations to local employees. I remember our first

recruitment examination in Malaysia as though it was yesterday

because I was amazed when almost 2,000 people applied for a

total of 200 jobs. At first, overseas operations were continually

trial-and-error affairs, as cultural differences and many other

problems had to be overcome. But as I have tirelessly stated, real

manufacturing is impossible if employees do not understand that

the company they’re working for belongs to them.

You could say that our efforts here at Tamura to foster

personnel who are both interested in their work and able to act

on their own initiative have helped the company in its ongoing

quest to create new technological value. I believe there is a

connection between corporate growth and employees’ sense of

fulfillment in their jobs. If employees find satisfaction in working

for the company then it is only natural that company will grow.

Competition in our industry continues to intensify as various

nations in Asia undergo rapid economic development. In order

to survive, companies are under increasing pressure to establish

themselves as entities that provide considerable value to society.

The fulfillment of corporate social responsibility through

environmental and other considerations that befit the day and

age will undoubtedly grow in importance.

By constantly acknowledging the company’s roots in

contributing to society through the provision of products and

technologies of exceptional quality, Tamura will continue to chart

its way as “your one and only company.”

Interview conducted on June 15, 2007

April 1969Tamura Seiko Corporation established

May 1969First overseas plant established—Taiwan Tamura Denshi Co., Ltd.

1960Television transformer

1965High voltage transformer

February 1973Anzen Dengu Co., Ltd. established

1972VTR power transformer

1972Transformer for space exploration equipment

1973Thermal cutoff

1974Large-size transformer

1975High-frequency choke coil

1984Switch-mode power transformer

1988Amorphous core

1994Piezoelectric transformerPiezoelectric inverter

1998Remote control standby power transformer

2002Permalloy dust choke coil for smoothing

2004LCD television backlight inverter

2005High voltage power supply for office machines

May 1961Company name changed to Tamura Chemical Laboratory Co., Ltd.

August 1968Company name changed to Tamura Kaken Corporation

1961Solder mask for printed circuit board

1969Carbolloid—carbon-resistant coating

1976Photocoat—UV curable solder resist ink

1985Finedel—photo-imageable liquid solder resist

1998Build-up substrate interlayer insulating material

1998Lfsolder—solder paste for lead-free soldering

2003Conductive adhesive

2007Flex-rigid board interlayer insulating material

August 1964Machinery plant established

1968Automatic dip soldering system

1979Vertical-motion automatic soldering system

1981Multiwave jet soldering system

1986Reflow soldering system

April 1995Tamura FA System Corporation established

1992Nitrogen (N2) soldering system

1999Lead-free soldering compatibility

2000VOC-free soldering compatibility

2004Solder bumping system for semiconductors

1960VD-type relay base

1961First audio mixing console for broadcast stations

1962Wireless microphone

1970Wireless intercom system

1976CSV surveillance system

1981CD surveillance system

1984Digitally-controlled analog audio mixing console

1985DSV surveillance system

1993MCM message communication system

1997Digital audio mixing console

1997Digital wireless intercom system

2004Mobile phone jammer

2006Series-culminating digital audio mixing console

Lead-free reflow soldering system

Used in the world’s first transistor television

Transformer for space exploration equipment

Gapped toroidal transformer with amorphous core

Piezoelectric inverter for notebook PC backlight

SpecialFeature


Chair: When considering Tamura Group CSR, it is important that we first reaffirm the Group’s strengths. From your experience, what are Tamura’s strengths?Zhao: I am here on transfer from Shanghai. I feel that mid-level managers at Tamura in both China and Japan take responsibility for their work and are pulling the company in the right direction. From a sales perspective, being able to consult with engineers allows us to offer an extensive range of options to customers. This helps enormously in terms of motivation.Kamiyama: I am involved in the development and design of current sensors and I am grateful for having been entrusted with positions of actual responsibility right from my first days as a new recruit. I made a few mistakes at the start, but they turned out to be invaluable experiences. The atmosphere inside the company, too, is very congenial. You can work at ease knowing that any problems can be tackled and solved together. I believe this is attributable to the sound corporate culture Tamura has developed over the years.Otsuka: Tamura workplaces definitely have a homely atmosphere and it is very easy to communicate with group leaders and managers. Senior employees look out for those with less experience and I sense strong ties among sales, engineering and manufacturing divisions.Yamada: There is a spirit of craftsmanship here that seeks to fully exploit Tamura’s high technological capabilities in order to meet the customer’s needs. This acts as a firm foundation for the four main business segments.Yamamori: At Tamura FA System, the technical expertise of those vital personnel who form the core of those working at the company, in other words the mid-level managers who Mr. Zhao mentioned earlier, is extremely advanced and we can learn a lot

Tamura’s forte is its homely atmosphere and interdependence

As individual members of the Tamura Group, what

initiatives should employees be pursuing to make its

companies better? On July 4, 2007, employees from

several different divisions gathered at the Saitama

Plant to discuss the Group from new angles.

from them.Sasaki: I am a sales assistant and often receive inquiries from audio enthusiasts. I feel pride in knowing the enormous trust those individuals place in the Tamura brand.Tomioka: I have been engaged in general affairs work since joining the company 10 years ago. There are women who have opted to work overseas and are successful, so I feel that the company offers many opportunities for women, too.

Chair: We have ascertained a homely atmosphere and brand power as Tamura’s strengths, but what are some current issues facing the Group?Otsuka: Earlier I said that senior employees look out for those with less experience, but one negative element could be that leaders are sometimes over-protective of employees, terrified that they’ll make mistakes, simply prolonging the time it takes until they can fend for themselves.Kamiyama: I agree that leaders’ individual qualities are a major influence on employee development. Engineering workplaces consist mainly of men with scientific backgrounds, many of whom are not good with words. If we had tools and systems in place making it easier to communicate technology and practical know-how, improvements would be possible.Yamada: I joined Tamura as a mid-career recruit. I think I would have adjusted to the work better had I received training at the start on Tamura’s unique rules and manuals.Zhao: While learning through hands-on experience—rather than training—and letting employees act independently—as opposed to establishing rules—have their merits, establishing systems, through the provision of manuals and other methods, might make it easier for employees to bring out their full potential.Ishii: I sometimes come across new recruits who are confused about what they should be doing, so I think it would be a good

Employee Round-table Discussion

Education in the workplace is a current issue


During the discussion core elements behind the promotion of CSR were reexamined—Are employees

proud of their company? Does the corporate environment encourage the desire to improve? I took heart in

the fact that all the participants understood the strengths of the Tamura Group and were brimming with

intent to make the Group better. On the other hand, I sensed a lack in organizational support, such as through

workplace education and opportunities for information exchange, to complement the efforts of individuals.

We must accept the situation with sincerity and incorporate what we have learnt into future initiatives.

Yoshinobu HasezakiSenior Manager CSR Promotion CenterCorporate Strategic Division

idea to have trainers to provide education.Tomioka: Our division holds regular study sessions, which promote the sharing of knowledge among new recruits, mid-career recruits and veteran employees alike. My job has become a lot more straightforward as a result.Ishii: Now that everything is done on PCs, best practice case studies could be uploaded to a server in the workplace allowing Tamura’s unique rules and manuals to be shared.

Chair: What do you think needs to be done to make Tamura an even better company?Ishii: I sometimes feel that there are not many paths open to women. In some divisions, there is a disproportionate number of women compared to men, making it difficult for the women to have their say.Sasaki: Male employees get to interact with employees from other divisions at presentations and other such opportunities. Apart from employees who joined in the same year, women rarely have the chance to interact outside divisional lines.Tomioka: Just by taking part in this discussion, I have realized we could arrange gatherings of this sort for ourselves.Yamada: By putting our heads together and sharing the methods and approaches used in our respective divisions, we should be able to improve our work processes.Otsuka: In terms of development, I think more resources should go into developing the next-generation of products since human resources and funds always seem to be channeled into businesses that are performing well right now.Yamamori: At Tamura FA System, development of eco-friendly, lead-free and VOC-free soldering systems progressed because we responded faithfully to what the customer wanted. It is important that we continue our environmental considerations and pursue development with an eye to the future.Yamada: As well as responding faithfully to the needs of customers, I sense a need to nurture a corporate climate that promotes proactive commitment to fields that are expected to grow.Zhao: I believe employees work hard at their jobs so that they will be happy. In order to create an enjoyable, happy workplace, we need systems for properly acknowledging capable employees.Chair: We have clearly identified in which areas individual employees need to improve and which areas the organization must work on to make the Tamura Group better. Opportunities such as this discussion are necessary in order to strengthen communications within the company. Thank you for your participation.

Kenichi YamadaCorporate Support GroupCorporate Management DivisionTamura Corporation

Harumi TomiokaSales Administration GroupHI Sales DepartmentHome & Infocom Devices Business UnitTamura Corporation

Fumie IshiiProduction GroupNetwork Department Broadcom Business UnitTamura Corporation

Jun ZhaoSales GroupHI Sales DepartmentHome & Infocom Devices Business UnitTamura Corporation

Makiko SasakiSales Administration GroupAI Sales DepartmentAvio & Industrial Devices Business UnitTamura Corporation

Kiyoshi OhtsukaPWB MaterialsR&D Tamura Kaken Corporation

Naota KamiyamaAI Technology Department, Module Design GroupAvio & Industrial Devices Business UnitTamura Corporation

Shinichi YamamoriEngineering Department Tamura FA System Corporation

Participants in roundtable discussion

Making Tamura even better

In summary


The Tamura Group’s electronic components are everywhere. Our reactors1, for example, are employed in air conditioners. Inverter air conditioners, which allow subtle temperature adjustments, currently dominate the market. Their inverters switch on and off repeatedly at very short intervals, generating noise that affects other electrical appliances. Reactors block out that noise.

Our transformers are employed in laser printers, which are widely used in offices. Laser printers use static electricity to apply carbon toner and that requires extremely high voltage. One way to generate such a high voltage is through the use of piezoelectric ceramic transformers2.

1. An electrical component that gives alternating current circuits inductive resistance.

2. A boosting component that converts voltage using mechanical resonant oscillations.

Electronic components all around us

Tamura offers a wide variety of custom transformers suited to particular product development needs. They are employed broadly in home appliances, information equipment, industrial machinery and space exploration equipment.

We have exploited the properties of magnetic metals to improve choke coil resistance to high temperatures and to reduce their size. Our choke coils are supplied to the automotive market for use in vehicles.

3. Mounted in vehicle electronic circuits to help reduce electromagnetic noise.

As part of initiatives in chemical substance control, we created a series of thermal cutoffs that were among the first to comply with the Restriction of Hazardous Substances (RoHS) Directive. They are employed in a diverse range of electrical equipment.

4. Melts above a certain temperature causing an electrical device to shut down to avoid overheating.

Advantages of Tamura electronic components

New ceramics plant

In addition to meeting existing market demand for smaller, lighter, highly efficient products, we will need to respond to ever-increasing requirements for compliance with chemical substance regulations. The Tamura Group will pursue these initiatives proactively to fulfill its social responsibility.

Future issues and outlook

In April 2007 a ceramics plant was established at the Saitama Plant that will facilitate an increase in the production of piezoelectric ceramics, the demand for which continues to rise in the notebook PC, laser printer and LCD television businesses.

Plans are underway to expand this business as represented in our slogan, “Make the change! Piezo for high voltage!” Our focus will be on the office machine and LCD markets.

New piezoelectric ceramic plant completed

Note: Market share figures within the “Tamura Group Business” section (pp. 13-16) are taken from studies conducted by Tamura Corporation as of March 2007.


The electronic components segment accounts for around half of consolidated net sales and has an extremely large scope encompassing diverse operations ranging from the production of ceramic element materials and a variety of transformer components, to the creation of end products such as battery chargers. We supply products to the general home appliance, industrial machinery and even space exploration equipment markets. Our electronic components segment is responding to an ever-changing market and we have been actively responding to social needs that have emerged in recent years, by actively developing environmental measures for chemical substances contained in our products, for example, and energy saving measures.

Electronic Components Segment

Power transformers; audio transformers; communication transformers; reactors; AC adaptors

Worldmarket share

Worldmarket share

Approx. Approx.

10%10%

Japanesemarket share


100%100%

Transformer coil for power system of Japan-made JAXA satellite

Inverter for notebook PC

Automotive choke coils3

Thermal cutoffs4

LED lighting

We have high expectations for our LED lighting business. A variety of products are being developed, including omnidirectional high-density LED lamps, small high-density LED lighting in which light sources are linearly arranged, light guide flat-panel lighting and LED lamps with replaceable bulbs.


The information equipment segment supplies diverse audio equipment, including wireless intercom systems as a communication tool for staff at the Japan Broadcasting Corporation (Nippon Hoso Kyokai: NHK) and commercial broadcasting stations. After-sales service is also provided, allowing companies stability in the airing of programs. Safety and security are key concepts in our provision of wireless microphone systems for railway stations, through which we are contributing to the day-to-day safety of rail transport. These products boast a top market share as customers recognize their operability, high functionality and high reliability.

Meanwhile, we have entered the era of information and communication technology. In addition to our communications equipment business, in which we target Nippon Telegraph and Telephone Corporation (NTT) and other telecommunications carriers, and our security equipment business, we

Advantages and social significance of Tamura information equipment


The Tamura Group is at the top of its class in Japan with an extensive track record and reliability in the industry for broadcasting audio mixing consoles. Backed by our accomplishments, we aim to become a world-class professional audio and communication company. As well as being guided by developments in the industry such as the convergence of broadcasting and communication fields, we aim to achieve growth worthy of “your one and only company” that contributes to a safe, secure and user-friendly ubiquitous broadband society.


have also entered the market for information terminals.By providing products that are simple, safe and user-friendly, we are also

making much needed contributions in the area of welfare.



Approx. Approx.

50%50%

Digital audio mixing console for live broadcasts by Japanese television stations



Approx. Approx.

80%80%

Digital wireless intercom system for Japanese broadcast stations



Approx. Approx.

65%65%

Wireless microphone system for major private and public railways

Operating under the concept, “Excellent Sound & Communication by Tamura,” the information equipment segment is embracing the trend toward digital broadcasting, supplying places such as broadcast stations with state-of-the-art audio equipment and wireless communication systems. We also contribute to a ubiquitous broadband society through the provision of communication systems and equipment to various telecommunications carriers, as well as providing equipment for security and welfare, which contribute to peace of mind, safety and ease of living.

Information Equipment Segment

Electro-chemical materials are essential to the manufacturing of electronic equipment. Tamura Kaken is engaged in the development of materials relating to soldering and PCBs.

Barely noticed but all-important

In the soldering materials field, our research and development i s co n s id e rab l y a d van ce d . Tamu ra Kaken was the first in the industry to develop flux, an indispensable soldering material. Related patents have been secured in Japan and the United States.

Today we supply more than half the flux in the Japanese market, which includes flux compatible with lead-free soldering.

In the area of surface mounting, our solder paste—a mixture of solder alloy particles and flux—meets demands in the industry for cutting edge technologies such as lead-free soldering and packaging, and boasts a share of more than 30% of the Japanese market.

In addition to flux and solder paste, we have recently developed and commercialized a conductive adhesive for use as a next-generation soldering material. One problem with lead-free solder paste has been the inability to lower the bonding temperature. Our conductive adhesive enables mounting of electronic components at a low temperature in the mid 100-200°C range, thereby avoiding damage to those components. The adhesive is expected to contribute to the mounting of components that are becoming smaller and more intricate.

Connecting components

A solid base for electronic components

BGA land pattern

Electro-chemical materials are never sold directly to the end consumer, although we work to ensure their compatibility with international efforts to tackle environmental issues such as global warming and their compliance with chemical substance regulations in Japan and overseas, including the RoHS Directive, End-of-Life Vehicles (ELV) Directive, Volatile Organic Compounds (VOC) regulations and the Registration, Evaluation and Authorization of Chemicals (REACH) legislation. Environmental friendliness is our key stance as we aim to contribute to people’s lifestyles and to society through the provision of electro-chemical materials typically found in electronics, such as mobile phones, televisions, game consoles, automobiles and personal computers.


In the PCB field, effort needs to go into developing materials suitable for increasingly complex high-density, multilayer boards.




Approx. Approx.

30%30%



Approx. Approx.

50%50%

Flux Solder paste

Mounted on a PCB

Photo-imageable liquid solder resist

Water-soluble, extra heat-resistant pre-flux

HDI adhesive film

Low alpha solder paste

1. Material that forms a solder-resisting protective film with insulating qualities.

2. Material that forms interlayer insulation on multilayer PCBs.

3. Pre-coating material that prevents oxidation of copper foil on PCBs.

4. Carbon material used for key contact points.


Tamura Kaken Corporation operates as the chemical material development division for the Tamura Group. The company has continued to conduct research and development activities to this day based on a founding belief that “excellent transformers require excellent materials.” Electro-chemical materials are vital to growth in the electronics industry as electronic equipment continues to diversify. Tamura Kaken draws upon its R&D accomplishments over the years to create soldering and printed circuit board (PCB) materials that meet industry demands for miniaturization, while also considering their environmental impact.

Electro-chemical Materials Segment

For example, PCBs are being manufactured using photographic techniques rather than printing techniques as circuit patterns become increasingly more detailed. We have developed and commercialized a photo-imageable liquid solder resist1 compatible with photographic methods.

PCBs are also being fabricated with multiple layers, pushing up demand for interlayer insulation. We are staying on top of this with the development of interlayer insulating material for build-up substrates2.

Other materials we have developed are also attracting attention. They include materials for flexible substrates, pre-flux3 and conductive carbon coatings4.

Besides being constantly at the forefront of development of materials for PCBs, we are actively engaged in the development of products that are friendly to the environment.


Demand for lead-free soldering systems has been soaring since 2000 and Tamura FA System’s early launch of a lead-free system saw the company take top spot in terms of market share in Japan. In regard to reflow soldering1 systems (reflow systems), Tamura FA System introduced its TAR30-36PH lead-free air reflow system in December 1999, six months before any other company. In the wave soldering2 system (wave systems) field, the company introduced “Mr. FLIP,” an electromagnetic induction soldering bath and “One and Only Product,”3 in 1996. The lead-free trend triggered a dramatic increase in the price of solders, making Mr. FLIP, which reduces the occurrence of oxides, the vanguard of lead-free wave soldering systems.

The growth of the soldering system business

Prices of soldering systems are currently falling due the emergence of Chinese-made lead-free systems. To improve competitiveness, we are enhancing production at our Suzhou Plant so that we will be able to supply high-quality, eco-friendly systems at low cost.

In the China area, we seek to continue acquiring customers in Taiwanese electronics manufacturing services (EMS) as well as further develop global operations, with a more formidable presence in European and Indian markets.


Electromagnetic induction soldering bath, “Mr. FLIP”

These systems are delivered to electronics manufacturers and automakers, where they are utilized in soldering processes for PCBs that are found in flat-panel televisions, mobile phones, PCs, game consoles and other familiar everyday products. Lead-free soldering systems have become especially popular in China and Southeast Asia over the last few years. Tamura FA System has delivered around 1,500 systems to China and 1,000 systems to Southeast Asia. Sales are made through four offices in China based mainly in Shanghai, and three offices in Southeast Asia based mainly in Singapore. In October 2006, Tamura Furukawa Machinery Corporation was established as a joint venture with The Furukawa Electric Co, Ltd, increasing our share of the Japanese market to almost 50%. We intend to make further inroads into the Chinese market via our manufacturing plant in China held under this joint venture.

Brand Logo Determined

General brand logo

Wave system logoReflow system logo



18%18%



12%12%

Air wave system Air reflow system



48%48%



32%32%

N2 wave system N2 reflow system


Printed circuit boards (PCBs) are used in a wide variety of products such as electrical appliances and automobiles. Tamura FA System Corporation carries out manufacturing and sales of systems that perform soldering of PCBs. The advance of the lead-free trend from 2000 meant a transition from solders containing tin and lead to solders free of lead that contain tin, silver and copper, at the same time pushing up the solder melting point by about 40°C. But as the heat resistance of components remains unchanged, we need to pursue further improvements to our systems.

Soldering Systems Segment

Since October 2006 we have been marketing our entire soldering system range under the “Tria Epsilon” brand. In Greek, “tria epsilon” means “three E’s,” in this case referring to Tamura’s soldering product concepts of Ecology (environmental friendliness) and Economy (energy efficiency and low cost), and to Windows®XP Embedded, which is incorporated into our systems to improve reliability and operability.

1. Soldering process applied in surface mounting that makes use of an electric furnace.

2. Soldering process in which boards are passed over a wave of molten solder.

3. Tamura products are labeled “One and Only Products” when they sufficiently

demonstrate Tamura’s strengths and unique qualities in the market, outperform

competitors’ products and are well received by the market.


Efforts to enhance customer satisfaction

We are enhancing customer satisfaction by supplying top-quality products based on our proprietary technology.

Customer Relations

Socia l Performance Report

Our job does not end on delivery of the product. The Tamura Group has forged longstanding relationships with its customers through customer-based product development and after-sales service.

We plan to pour even more energy into the creation of systems and communities that support interaction with customers.

Links with customers

The MAPS system has been installed at sales and production bases in both Japan and overseas to aid our response to customer demand for the right amount of the right product to be delivered at the right time.

This mission-critical system, unifying the administration of sales, engineering, production management, materials management, manufacturing, distribution and accounting processes, went online in Japan in January 2004 and is gradually being introduced to overseas bases. As of June 2007, it is in operation at a total of 15 locations—5 plants and 3 sales offices in Japan; 3 plants and 2 sales offices in the China area; and 1 plant and 1 sales office in the ASEAN area.

MAPS allows optimal management by enabling Head Office, from a single location, to keep tabs on processes such as order placement, design, parts delivery and production undertaken at both domestic and overseas facilities. The system has also made it possible to establish firm lead-time commitments for each process, with tasks performed accordingly to ensure greater reliability and speed in the delivery of products.

* MAPS (Management Accounting Production Sales): the Tamura Group’s enterprise resource planning (ERP) system.

Bases where the MAPS system is introduced

T’s Bar is an online community hosted by Tamura Corporation where lovers of tube amplifiers and other audio enthusiasts are able to share information. As a company with many years’ involvement with tube audio equipment, we set up the website in May 2006 to foster communication with supportive customers who demonstrate a real appreciation for tube audio. The site contains articles and event information related to the audio field as well as a bulletin board where customers are free to post messages as a form of opinion exchange. T’s Bar is successfully stimulating the tube audio fan community.

* T’s Bar can be found at http://www.tamura-ss.co.jp/tsbar/ (Japanese only).

UKChina (Hong Kong, Shenzhen, Huizhou, Shanghai)

Malaysia

Singapore

US

MexicoCzech Republic Japan

On October 4, 2006, Tamura Corporation released a statement to the media and via the company website that it had notified the Ministry of Economy, Trade and Industry of its intention to recall 580,000 AC adaptors. The recall was instigated after reports of cracks appearing in the plastic casings of some Tamura-made AC adaptors . Replacement adaptors with modified casing were sent by express delivery to all users of the potentially defective products, which were subsequently collected. Accidents were prevented in this manner.

To serve as reminder of this experience, Tamura Corporation designated October 4 “Quality Assurance Day.” On this day, every single employee is to dedicate their energy to improving quality, determined to never again inconvenience our customers in this way.

October 4 — “Quality Assurance Day”

Supply chain management development (MAPS* system)

T‘s Bar


The Tamura Group Basic Purchasing Policy states that, “as a company operating around the globe, we shall maintain a global perspective in our procurement of materials, working in the pursuit of profit creation together with companies that can demonstrate an understanding of the Tamura Group Corporate Principles and are able to participate in an ongoing partnership.” Seven areas, including quality, environmental considerations and uniqueness, are specified as criteria for purchasing.

Purchasing policy

Business Partner Relations

Japanese, Chinese and English versions of the Tamura Group Procurement Guidelines were compiled in March 2007 to promote procurement practices based on notions of corporate social responsibility. Seeking to make progress in 14 areas, including basic human rights, compliance, safety and the environment, we will be distributing the guidelines to business partners from fiscal 2007.

Promotion of CSR-based procurement

In March 2007, a meeting wa s h e l d in S h e nzh e n , China, attended by around 70 bus ines s par tner s of Tamura Electronics (S.Z. ) Co., Ltd. Presentations on recent developments in the Tamura Group were ma d e by th e E xe cu t i ve

Vice President and the technology managers of Tamura Corporation, and by the Managing Director and divisional officers of Tamura Electronics (S.Z.). During the meeting, business par tners were asked to strengthen defect elimination and green procurement measures and told that such efforts would form the basis for real business par tnership. Clarifying our intention to strengthen ties, we gave assurances that communication would be enhanced and that details of any interaction would be conveyed to related divisions at Tamura Corporation. As proposed by business partners afterwards, meetings will be held once a year.

Disclosure of information is an ongoing activity. We brief analysts and institutional investors on financial results every six months, a few days after results are announced. At the briefings, we conduct surveys relating to the Tamura Group’s investor relations as part of our efforts to improve the communication of company information to shareholders and investors.

To ensure that information is released in an expeditious and fair manner, a website for investors has been set up as a way to foster communication. We also issue quarterly financial statements and shareholder notices as other forms of communication with shareholders and investors.

Communication with shareholders and investors

Shareholder and Investor Relations

Promotion of green procurement

To enable us to deliver safe, eco-friendly products to the customer, we have established Green Procurement Standards for the Tamura Group and are vigorously pursuing procurement of parts with low environmental impact from business partners engaged in environmental preservation activities. We also undertake chemical substance content surveys relating to 29 substances stipulated in the Green Procurement Standards. Data from the responses is made available as a tool for evaluating parts to be employed in new products.


Collaborating with all our business partners on quality, the environment and social responsibility allows us to deliver products that are satisfactory to customers.

Timely and proper disclosure of company information in line with laws and regulations gives shareholders and investors an accurate understanding of the Tamura Group and wins their trust.

Tour of the new ceramic plant

China Vendors Meeting

A group discussion


Policy relating to employees

The Tamura Group attaches importance to partnership, personal growth, the courage to innovate and individuality in each of its employees.

Employees are evaluated fairly, with praise being offered most to those who achieve results through hard work. We also ensure the health and safety of employees through the provision of a comfortable and efficient workplace environment that supports various lifestyles.

The Tamura Group directs energy into safety management and the formation of pleasant workplace environments to ensure the health and safety of employees. Consideration towards employee health was strengthened further following the April 2006 revision to Japan’s Industrial Health and Safety Law. We established measures that focused on stress, allowing for thorough management of working hours and counseling by industrial physicians when necessary. Whenever a health check reveals that an employee might be suffering from a lifestyle-related disease, thorough health maintenance is performed. In such cases, guidance on methods for improving one’s style of living is given and working hours are reduced as required. Mental health provisions have also been made, including related training for managerial staff and the establishment of a special hotline.

In addition, the President makes an inspection of workplaces once a year, providing an opportunity for all employees to join together in ensuring health and safety in the workplace.

The job grading system in place since fiscal 2002 determines the “grade” of an employee’s job according to specific actions and performance, as opposed to age, educational background and gender. This has nurtured a climate that allows employees to demonstrate their full potential and willingly take on roles of responsibility.

The personnel system and human resource development

Two systems implemented via the company intranet have the purpose of revitalizing the organization by attempting to meet the needs and preferences of both individual employees and the corporate organization. Under the In-house Recruitment System, divisions invite employees to apply for available positions. The Job Preference Program is a system whereby individuals list jobs they would like to perform and the company endeavors to place them.

Training programs are implemented for each job level and type so that employees gain the necessary skills and knowledge to carry out their particular tasks. Regular reviews of training programs will continue as we seek further improvements.

In-house training

As part of efforts to foster a dynamic organization with energetic employees, the “Spirits Up!” campaign seeks to boost motivation through day-to-day greetings. The central idea is that greetings are the foundation of good spirits. By encouraging employees to greet each other and company visitors in a cheerful manner, the company is likely to become more vibrant.

Occupational health and safety

Junior employees take a leading role in the planning and implementation of in-house events that are designed to encourage interaction among fellow employees. Events include summer festivities, ski tours and bowling competitions.

In particular, summer festivities held every year between July and August are a Tamura seasonal tradition. After the President’s toast, excitement in the venue builds as new employees stage short performances, bands play live music and people participate in karaoke. It is an excellent opportunity for employees to socialize with one another in the corporate setting.

In-house communication

Company trip Summer festivities

Level-based training

General training

English conversation trainingISO training

Engineer trainingCSR training

Online training courses

Individual employee development aids the development of the Tamura Group.We are implementing wide-ranging initiatives to improve employee skills and ensure good health and safety.

Employee Relations


Job grading system

In-house Recruitment System and Job Preference Program

Education and training system

New recruit training

For junior employees

Follow-up training

Leader training

Basic management training

Mental health training

For mid-level employees

Online course for managers

Organization development training

Management training courses

“Spirits Up!” campaign


The Monozukuri School for elementary school students held in June 2007 at the Education Center in Chuo-ku, Tokyo, was run by the Japan Electronics and Information Technology Industries Association (JEITA) as a joint effort by industry and academia to develop human resources. Two Tamura Corporation employees participated as instructors, guiding the students as they put together electronic kits and learned about the basics of electricity (the concept of electrical resistance). We are currently looking at the possibility of Tamura Corporation utilizing the experience from this exercise to host its own Monozukuri School starting autumn 2007.

Monozukuri School

Tamura Corporation runs an internship pro-gram two or three times each summer vacation for high school, junior college, technical college and university students to give them practical experience working in a manufacturing setting. Between one and three interns participate in each program lasting

Internships

The Tamura Group conducts plant tours for local children, from kindergarten to junior high school, in order to build familiarity with places where manufacturing operations and environmental initiatives are actually carried out. Tamura Corporation’sCorporation’s Tokyo Plant welcomes around 10-50 visitors on up to three occasions each year. Similar tours are conducted by other plants that also seek to deepen understanding of Tamura’s business activities among residents in surrounding communities.

Plant tours

Tamura Corporation proudly supports the AS Elfen Sayama FC, a club competing in the Japan Women’s Football League (Nadeshiko League). Players for the women’s soccer club run by local volunteers consist mainly of women of junior high school age and over from Sayama and other parts of western Saitama Prefecture. As chief sponsor of the team for 2007, Tamura Corporation is assisting the team’s development ef for ts through the provision of training grounds and other contributions. We plan to open up our soccer grounds and other sports facilities to communities and pursue social contribution activities such as sports skill development for boys and girls and the holding of soccer schools for parents and children and for the disabled.

Plant tour for junior high school students

Internship aimed at university students

AS Elfen Sayama FC

In October 2006, Tamura Corporation and Tamura Corporation of America received a commendation from the American Red Cross for their contribution to the recovery effort in New Orleans after the area suffered serious damage in 2005 during Hurricane Katrina. The American Red Cross and representatives of City of Temecula, where Tamura Corporation of America is located, also expressed their kind gratitude.

Award received from the American Red Cross

about two weeks. Interns get to engage in processes such as manufacturing, development and design, production management, and administrative work, giving them work experience that is quite different from an ordinary part-time job.

Social Contribution Activities


Tamura business management is purposely oriented to foster relationships of trust with national and local communities through mutual understanding and to contribute to regional development. Our aim is to coexist harmoniously with society.

Nadeshiko League

Tamura Corporation


Gunma Tamura Corporation



Anzen Dengu Co., Ltd.



Tamura Electronics (M) SDN. BHD.

Tamura Power Technologies de Mexico, S.A., DE C.V.

Tamura Europe Limited

Tamura Kaken Corporation

Tamura FA System Corporation

Tohoku Tamura Corporation

Tamura Distribution Center Inc.

Internal Audit Department

Environmental Committee

Environment & Quality Group, CSR Promotion Center

President General Environmental Managing Representative


Integration of environmental management systems

Worldwide efforts to prevent global warming and reduce ozone-depleting substances and hazardous chemical substances are crucial in this day and age, and the Tamura Group has recognized the need for a unified, global approach to environmental activities that will enable a swift response to such requirements. Consequently, we are in the process of establishing a globally-integrated environmental management system.

Code of ConductAs the Tamura Group designs, develops and produces electronic components, electro-chemical materials, soldering equipment and information equipment, based on our Management Concept that places first priority on environmental protection, we implement an environmental management system to ensure the efficient use of resources, pollution prevention and compliance with regulations. We are also committed to continuously improving the management system and focus on the following activities for environmental protection.

In the first year of environmental management system (EMS) integration, fiscal 2006, the systems of nine companies (10 sites; 7 in Japan, 3 overseas) belonging to the electronic components and information equipment segments were integrated, acquiring global ISO 14001 certification in January 2007.

By fiscal 2008 we will have incorporated the electro-chemical materials and soldering system segments, thereby completing EMS integration for the entire Tamura Group (15 companies, 16 sites).

Environmental management is implemented in conjunction with Group companies within a framework headed by President Tamura and supervised by the General Environmental Managing Representative.

To execute the system, the General Environmental Managing Representative, officers in charge of Tamura Corporation business divisions and Environmental Managing Representatives from each site have formed the Environmental Committee, striving to improve our environmental performance, find solutions to issues affecting the entire Group and develop activities across the board.

Management ConceptThe Tamura Group contributes to the protection of a truly abundant global environment and conducts all of its business activities in harmony with the environment. The activities shall be based on the Group Mission Statement: “The Tamura Group offers an original range of products and services, highly regarded in the global electronics market, to satisfy the evolving needs of customers, employees and shareholders supporting the Group’s growth.”

EMS integration in fiscal 2006

Implementation framework

1. We supply eco-friendly products.2. We control and reduce the impact on the environment.3. We promote energy and resource savings.

FY2006 FY2007 FY2008

• Tamura Corporation• Wakayanagi Tamura Corporation• Gunma Tamura Corporation• Aizu Tamura Corporation• Tamura Seiko Corporation• Anzen Dengu Co., Ltd.• Tamura Electronics (S.Z.) Co., Ltd.• Tamura Electronics (Huizhou) Co., Ltd.• Tamura Electronics (M) SDN. BHD.

• Tamura Power Technologies de Mexico, S.A., DE C.V.

• Tamura Kaken Corporation• Tamura FA System Corporation• Tohoku Tamura Corporation• Tamura Distribution Center Inc.• Tamura Europe Limited

Integration completed in January

2007

Integration to be completed by November

2007

Integration to be completed by November

2008

The Tamura Group Environmental Policy

We acquired global ISO 14001 certification, leading the way for the industry.

The Tamura Group Environmental Policy and Environmental Management Systems


Schedule for integration

Implementation framework diagram

Discovering nature and valuing the environment: the Tamura Group

20.025.0

Results for FY2005 Goals for FY2006 Results for FY20060

5

10

15

20

25

30

27.4

(%)


In fiscal 2006, environmental preservation activities were carried out throughout the Tamura Group in pursuit of three common objectives: to increase the proportion of sales accounted for by eco-friendly products, reduce usage of substances with environmental impact and lower CO2 emissions. Our activities were successful with all targets attained. This success is attributed to ongoing activities at individual sites and to greater employee awareness of environmental concerns achieved through improvements to environmental education.

Targets and achievements of the Tamura Group

The Tamura Group conducts product environmental assessments at each stage in the development of new products in an effort to lower their environmental impact. Assessment criteria are broad-ranging, encompassing low power consumption design, resource efficiency, compact and lightweight characteristics, long service life, design for recycling and countermeasures against hazardous chemical substance content. Products that meet the assessment criteria are designated “eco-friendly products.”

Eco-friendly products accounted for 20.0% of sales in fiscal 2005. That percentage rose to 27.4% in fiscal 2006 due to efforts to encourage the transition to new products.

I. Increasing sales of eco-friendly products

1. PRTR: Pollutant Release and Transfer Register; a public registry of chemical substance emissions into the environment that may have a potentially serious impact, and movements of waste.

2. Ozone-depleting substances: substances subjected to controls under the Montreal Protocol (signed 1987, enforced 1989), that is to say, specified chlorofluorocarbons (CFC 11, CFC 12, CFC 113, CFC 114, CFC 115) and other CFCs (CFC 13, etc.), trichloroethane, carbon tetrachloride and other organic chlorides, and specified halons (Halon 1211, Halon 1301, Halon 2402) and other organobromine compounds.

Environmental objectives Goals for FY2006 Results for FY2006

IIncreasing sales of eco-friendly

products

Sales ratio of eco-friendly products:

25.0%27.4%

IIReduction of materials

that adversely impact on

the environment

Chemical substances designated

under the PRTR1 Law and

ozone-depleting substances2:

3.0% reduction compared to FY2005

9.0%

III Reduction of CO2 emissionsCO2 emissions:

3.6% reduction compared to FY20056.1%



Targets and achievements: increasing sales of eco-friendly products

Sales ratio of eco-friendly products


TotalCO2 emissions21,978t-CO2

Electricity purchased92.9%

Diesel 3.7%

Gasoline 1.7%Processednatural gas 0.5%

Heavy oil 1.2%

-10

-8

-6

-4

-2

0

FY2005 FY2006 goal FY2006 results

Reductionrate (%) Base year

-3.0%

-9.0%

-10

-8

-6

-4

-2

0

FY2005 FY2006 goal FY2006 results

Reductionrate (%) Base year

-3.6%

-6.1%

Tamura Electronics (S.Z.) Co., Ltd. used to employ CFC-based solvents for cleaning processes. The company now has a new ultrasonic cleaning device that enables solvent recovery and consequently prevents splashing and reduces solvent usage.


This is a summary of the Tamura Group’s environmental impact in fiscal 2006. We work to enhance environmental management through measurement and analysis of resource “input” data and data on “outputs” such as CO2 emissions and waste.

Summary of the Tamura Group’s environmental impact

The Tamura Group’s efforts to reduce ozone-depleting substances and substances designated under the PRTR Law commenced in fiscal 2006. Although the PRTR Law is Japanese legislation, we employ identical controls at overseas plants in consideration of the environmental impact of those operations. In fiscal 2006, we achieved a 9.0% reduction from fiscal 2005 levels.

II. Reduction of materials that adversely impact on the environment

The Tamura Group achieved a 6.1% reduction of CO2 emissions compared to fiscal 2005 levels through a variety of global warming prevention measures, which include production efficiency improvements, strict adherence to preset temperatures for heating and cooling systems, switching off unnecessary lighting, installation of energy-efficient office equipment and a shift from facilities run on heavy oil to those that use electricity.

III. Reduction of CO2 emissions

InputElectricity 43,063MWh

Processed natural gas 49,000m3

Gasoline 251klHeavy oil 228kl

Diesel 315klHeating oil 38kl

Paper 10.14 million sheetsWater 356,000m3

Chemical substances designated under the

PRTR Law625t

Output

CO2 21,978t-CO2

Wastewater 356,000m3

Total waste generated 1,606t

Recycling volume 1,212t

Total disposal volume 376t

* Coefficient used

Coefficient for CO2 emissions from electricity:JapanBased on Enforcement Order of Law Concerning the Promotion of the Measures to Cope with Global WarmingOverseasBased on figures in International Energy Agency Data Services 2005

Coefficient for CO2 emissions from resources other than electricity:For Japan and overseasBased on Enforcement Order of Law Concerning the Promotion of the Measures to Cope with Global Warming

Business activities

Procurement

Development

Manufacturing

Distribution

Customer

New ultrasonic cleaning device

* The PRTR Law is Japanese legislation, but identical methods are employed at overseas plants. The above volumes include overseas data.

Targets and achievements: reduction of CO2 emissions and materials that adversely impact on the environment



Results of efforts to reduce materials that adversely impact on the environment

Results of efforts to reduce CO2 emissions

Initiatives by Tamura Electronics (S.Z.)

Breakdown of CO2 emissions



In fiscal 2006, excessive COD* values were ascertained at Tamura Electronics (Huizhou) Co., Ltd. as a result of insufficient management of non-industrial wastewater concentration levels of chemicals. As an immediate measure, non-industrial wastewater is being managed to keep concentration levels within the standard limit, while the construction of a new wastewater treatment facility is to ensure proper treatment of wastewater over the long term. There were no other violations of environmental laws and regulations.

There were no environmental accidents with an effect extending outside the company.

Compliance with environmental regulations

The Tamura Group is engaged in efforts to reduce CO2 emissions as a member of Team -6% (“team minus six percent”), an initiative by the Ministry of the Environment promoting nationwide action to prevent global warming. We are also actively supporting Cool Biz and Warm Biz campaigns, whereby employees follow “cool” or “warm” dress codes depending on the season in an attempt to reduce reliance on heating and cooling systems.

Team -6%

We conducted first-hand internal environmental audits of the ten domestic and overseas sites requiring them. The audits confirmed the validity of environmental objective and target attainment. In terms of legal compliance, while there was an excessive concentration of chemicals in wastewater in the past at Tamura Electronics (Huizhou), the audits also confirmed that the company in question’s current provisional and permanent measures are appropriate, and, furthermore, that there have not been any other violations of environment-related laws and regulations other than that. Based on the above, I acknowledge the effective manner in which environmental managements systems are executed at all sites.

Comment from the Internal EMS Audit Manager

The Tamura Group pursues a structured approach to education on environmental matters, providing general education for all employees and job-specific education that teaches operation methods for specific equipment at certain facilities and methods for managing hazardous or harmful substances.

Environmental education

We have acquired global certification for our environmental management systems, but audits and inspections still identify many points for improvement. We must act quickly to implement them through methodical application of the PDCA (plan-do-check-action) cycle. We must also expand our lineup of eco-friendly products, developed in consideration of the global environment, and endeavor to comply with new laws and regulations based on accurate information. In doing so, we will advance towards a totally-integrated environmental management system for the Tamura Group.

* COD: Chemical Oxygen Demand; an indicator of water contamination that quantifies the level of pollution (mainly caused by organic matter).

Facility Education provided

Tokyo Plant/Saitama Plant

· Environmental preservation education for regular employees· Heavy oil equipment and wastewater treatment facilities· Environmental legislation


· Environmental preservation education for regular employees· Heavy oil equipment training and test

Gunma Tamura Corporation · Environmental preservation education for regular employees


· Education on EMS implementation, etc.· Supervisor training for chemical substance management, etc.


· Roles and responsibilities, refresher course for documents on operating procedures, etc.· Chemical substance management and product environmental assessment

Anzen Dengu Co., Ltd. · Environmental Policy, EMS organizations, etc.


· Education on energy and resource efficiency· Waste gas, wastewater and solid waste treatment flows


· Environmental preservation education for regular employees· Wastewater treatment facility operation

Tamura Electronics (M) SDN. BHD. · Environmental preservation education for regular employees

Before construction



Internal environmental audits, management review and other topics

New wastewater treatment facility at Tamura Electronics (Huizhou)

After completion

Implementation of environmental education

Management review by President Tamura


Results forFY2005

Results forFY2006

Monthly averagefor FY2005

Sep. Oct. Nov. Dec. Jan. Feb. Mar.Reductions after Sep. FY2006

268

158(-41%)

0

10

20

150

200

250

300(t)

12.37.6 5.8 6.9

4.2 3.0 2.7

22.3


In Japan we are obligated under the PRTR Law to report on inflows and outflows of certain chemical substances to the related authorities. The Tamura Group therefore endeavors to manage chemical substances in a proper manner.

Chemical substance management

In fiscal 2006, the Tamura Group carried out emergency response training through simulations of environmental accidents such as fires, chemical spills and heavy oil spills.

Emergency response training

The reduction of wooden crate packaging employed for exports from overseas to Japan, which used to generate waste in the form of wood chips, was an issue to be addressed. In September 2006 we switched over from wooden crates to 100% recyclable packaging made from special reinforced corrugated board.

The switch helped reduce wood waste by 41% in fiscal 2006 from 2005 levels. Efforts to switch over to the new form of packaging continue.

Waste reduction

Wood crate packaging

Special reinforced corrugated board packaging

Unit: kilograms

Official code

Substance name

Volume handled

Volume emitted Volume transferred

Air Water Soil On-site landfills Sewage Transferred off-

site as waste

63 Xylene 1,300 95 0 0 0 0 0

177 Styrene 14,645 14,605 0 0 0 0 40

227 Toluene 1,900 1,700 0 0 0 0 200

230 Lead and its compounds 31,626 10 0 0 0 0 8,895

Total 49,471 16,410 0 0 0 0 9,135

* Under the PRTR Law, reporting is compulsory when the volume of a designated chemical substance being handled exceeds 1 ton/year. Four domestic sites (Tamura Corporation Saitama Plant, Wakayanagi Tamura Corporation, Gunma Tamura Corporation and Aizu Tamura Corporation) had to file reports for fiscal 2006.

Risk management and waste reduction



Substances designated under the PRTR Law

Reduction of wood waste

Transition to packaging made from special reinforced corrugated board

Training examples

Fire drill (Tamura Electronics (S.Z.) Co., Ltd.)

Chemical spill training (Aizu Tamura Corporation)

Chemical spill training (Tamura Seiko Corporation)

Heavy oil spill training (Gunma Tamura Corporation)



Tamura Kaken Corporation Tamura FA System Corporation

Recently, demand for flex-rigid substrates1 and multilayer flexible substrates has risen in relation to the miniaturization of electronic equipment such as mobile phones, digital camcorders, digital cameras and game consoles. Tamura Kaken has developed proprietary modifi cation and fl ame resistance technology for epoxy resins, achieving halogen-free fl ame resistance and high performance. The new product lineup of EZ series (fi lm, RCC2 and prepreg3 types) of interlayer insulating materials assimilates the lightweight, thin and bendable characteristics of fl exible substrate materials and the same workability required for rigid boards with high reliability and halogen-free environmental considerations.

No. Environmental objective Target Achievement

1 Develop eco-friendly productsEnhancement of fi tting rate against the user requirement specifi cation of the development products

Target achieved

2Carry out proper management of chemical substances

Implementation of management procedures (documents on chemical substance management procedures, etc.)

Target achieved

3 Reduce industrial waste1% reduction in industrial waste per unit of production compared to fi scal 2005 levels (0.10 kg/kg)

0.10 kg/kg reduction; target achieved

4 Reduce power consumption1% reduction in power consumption per unit of production compared to fi scal 2005 levels (1.62 kWh/kg)

1.86 kWh/kg; target achieved

5 Reduce heavy oil consumption0.5% reduction in heavy oil consumption per unit of production compared to fi scal 2005 levels (0.03 l/kg)

0.03 l/kg reduction; target achieved

6 Reduce paper usageEstablish and utilize document management systems

Target achieved

No. Environmental objective Target Achievement

1 Develop eco-friendly products100% implementation of product assessments for new products

Target achieved

2Carry out proper management of chemical substances

Implementation of management procedures (for substances designated specially-controlled substances, etc.)

Target achieved

3 Reduce industrial waste85% recycling rate through promotion of waste sorting and recycling

85% recycling rate; target achieved

4 Reduce power consumption 3% reduction of power consumed10.5% increase; target missed

5 Reduce paper usage 5% reduction of paper usage25% reduction; target achieved

System type System area Maximum current

TNP25-537EM 6.94m2 135A

TNP20-307PH 3.48m2 (50%) 95A (30%)

TNR15-225LH 2.78m2 (60%) 61A (55%)

TNP20-307PH TNR15-225LH

* Values in parentheses represent the percentage reduction from TNP25-537EM values.1. Flex-rigid substrate: substrate possessing both the rigidity of rigid substrates and the fl exibility of

fl exible substrates.

2. RCC: Resin Coated Copper foil; multilayer build-up board material consisting of copper foil coated with epoxy resin that is semi-hardened.

3. Prepreg: multilayer substrate material consisting of glass cloth impregnated with epoxy resin that is semi-hardened.

FBR-EZ77(fi lm type)

CBR-EZ78(RCC type)

GBR-EZ78(prepreg types)

Report on Activities at Intended Global ISO 14001 Certifi cation Sites


Sites intending to be included under global ISO 14001 certifi cation carry out similar environmental protection activities.Here we introduce activities of Tamura Kaken Corporation and Tamura FA System Corporation, which will be integrated into global certifi cation in fi scal 2008.


Development of eco-friendly and fl exible high-Tg, halogen-free interlayer insulation


Tamura FA System has developed a compact reflow soldering system for 250mm-wide printed circuit boards (PCBs) and an ultra-compact refl ow system for 150mm-wide PCBs, both which possess the same functions and capabilities as large systems.

· Reducing the size of refl ow soldering systemsEquipment needs to be made more compact in order to raise production

effi ciency per unit of fl oor area. Development of a compact heating unit possessing high thermal conductivity enabled us to reduce the size of the refl ow soldering system while retaining function and capability.

· Lowering power consumptionA refl ow soldering system consumes around the same amount of power

whether processed by a compact PCB or a large PCB. By having customers select systems suitable for compact PCBs, we are contributing to reductions in power consumption and the creation of eco-friendly technologies.

Development of compact/ultra-compact lead-free refl ow soldering systems

Comparison table of refl ow soldering systems


http://www.tamura-ss.co.jp/en/1-19-43, Higashi-Oizumi, Nerima-ku, Tokyo JAPAN 178-8511


This report was printed on Forest Stewardship Council (FSC)-approved paper using soy-based 100% vegetable oil ink and waterless printing processes. Printed in Japan

Documents

Corporate Social Responsibility Report 2007 · Company Outline (as of March 31, 2007) * Net sales shown are for external customers by business segment (excludes internal net sales