NICHICON CORPORATION

E n v i r o n m e n t a l R e p o r t 2003

All you Need and More, Right Away

Editorial Policy

This report presents activities for FY 2002 (April 1, 2002 to March 31, 2003). Some parts include activities and performance after April 2003.

This report describes the approaches of the 14 factories of Nichicon Corporation and its group companies (subsidiaries) in Japan with ISO 14001 certification (hereinafter referred to as “Nichicon Group”). (See P. 7 and 26)

We referred to the “Environmental Report Guidelines (2000)” from the Ministry of the Environment in order to create the Nichicon Corporation Environmental Report. This is the third year of publication. This report includes many activities at each factory so that readers will understand our philosophy.

Message from the PresidentCorporate ProfileBusiness Summary Environmental CharterProgress in Environmental Protection Activities

Organization for Environmental ProtectionEnvironmental Management SystemsEnvironmental Education and Training The Nichicon Action Plan for Environmental ProtectionEnvironmental AccountingEnvironmental Load of Nichicon Corporation

Basic Approach to Product DevelopmentPrevention of Global Warming Approaches to Waste Reduction and RecyclingAppropriate Management of Chemical Substances and Emissions Reduction

To exercise responsibility as a manufacture Recognition of Social Responsibility Workplace and Job SatisfactionOccupational Safety and HealthCommunications on the Environment and Social Contributions List of Nichicon Group Offices That Received ISO 14001 Certification

2345

6789

1112

13151619

2123

2425

26

c o n t e n t s

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1 Environmental Report 2003

Time Period

Scope

Environmental Management

Environmental Performance

Social Responsibility

Message from the President

Aiming at Harmonious Coexistence with the Earth & Recycling-based Society Sensitive to Humankind and the Environment

The earth is the only planet in which humankind can

live. However, the global environment is growing worse

each year. Economic progress and an industrialized

society have brought us wealth and convenience.

On the other hand, they have caused environmental

problems, such as global warming and ecocide,

resulting in exhaustion of energy resources. In order to

repair these devastating scars in the global environment

and regenerate this irreplaceable planet, we must

reconsider the social structure and reconstruct

sustainable recycling-based society.

Under these circumstances, the Nichicon Group

recognizes environmental protection as one of the keys

to our business operations - through the abolition of

specified chemical substances, the encouragement of

resource and energy saving, and “zero emissions” in

each aspect of engineering development, product

development, and production activities.

In December 1997, the Nichicon Group set up

The Nichicon Group’s Environmental Charter, carrying

out activities with the aims of “Harmonious Coexistence

with the Global Environment” and a “Society Sensitive

to Humankind and the Environment.”

We also established an environmental management

system based on the international standard, ISO 14001,

embodying and improving our activities for

environmental protection in the “Action Plan for

Environmental Protection.”

To survive the recent severe business circumstances, it is

important for us to actively execute our own social

responsibilities, as well as pursue robust profitability.

The Nichicon Group, aiming to realize our own

responsibilities and take the proper legal and ethical

actions in every corporate activity, instituted

the Codes of Conduct in October 2002 to establish

specific rules that all staff members shall respect.

In June 2003, upgrading from the conventional

Environmental Protection activities, we established

a specific department, the CSR Room, to examine and

improve the operations of all environmental protection

activities, as well as the environmental management

system, compliance, social contributions, corporate

ethics, and risk management. CSR stands for Corporate

Social Responsibility. From now on, the CSR Room

will play a role in the management and inspection of

activities. We are not only striving for recycling waste,

green procurement, and green purchasing, but also

meeting the challenge of developing products which

reduce the environmental load, such as elimination of

the use of lead and PVC and energy saving products. We

are planning activities for decreasing environmental

loads in all aspects of our business operation.

In this report, we present the Nichicon Group’s

philosophy and approach to environmental protection.

We would appreciate your comments and suggestions.

September 2003

Environmental Report 2003 2

President & C.E.O.Nichicon Corporation

Ippei Takeda

Nichicon Corporation

3rd Floor, Uehara Building

Oikedori, Karasumahigashi-iru

Nakagyo-ku, Kyoto, 604-0844 Japan

August 1, 1950

14,286 million yen (as of March 31, 2003)

Capacitors for electronics, electric apparatus and

power utilities

Switching power supplies

Hybrid ICs, Circuit modules

Positive thermistors,

Capacitor-applied systems and equipment

110,071 million yen (as of March 31, 2003)

103,552 million yen (as of March 31, 2003)

4,642 (Consolidated) 1,671 (Non-consolidated)

(as of March 31, 2003)

TOKYO SALES OFFICE

NAGOYA SALES OFFICE

OSAKA SALES OFFICE

SAPPORO SALES BRANCH

NAGANO SALES BRANCH

SHIZUOKA SALES BRANCH

OKAYAMA SALES BRANCH

FUKUOKA SALES BRANCH

KUSATSU FACTORY ★

NAGANO FACTORY ★

HOTAKA FACTORY ★　

OHMACHI FACTORY ★　

OHNO FACTORY ★　

TOMITA FACTORY ★　

SUWA FACTORY ★　

POWER SUPPLY DIVISION

NICHICON (KAMEOKA) CORPORATION ★

NICHICON TANTALUM CORPORATION ★

NICHICON (ASAHI) CORPORATION ★

NICHICON (IWATE) CORPORATION ★

NICHICON (WAKASA) CORPORATION ★

NICHICON (DENDO) CORPORATION ★

NICHICON (FUKUI) CORPORATION ★

NICHICON (SHIGA) CORPORATION

NICHICON (AMERICA) CORP.

NICHICON (EUROPE) LTD.

NICHICON (AUSTRIA) GmbH

NICHICON (HONG KONG) LTD.

NICHICON (SINGAPORE) PTE. LTD.

NICHICON (THAILAND) CO., LTD.

NICHICON (TAIWAN) CO., LTD.

NICHICON ELECTRONICS TRADING (SHANGHAI) CO., LTD.

NICHICON (MALAYSIA) SDN. BHD.

NICHICON ELECTRONICS (WUXI) CO., LTD.

18 (8 domestic and 10 overseas)

Corporate Prof i le

★ included in the scope of this report.

As of September 21, 2003

Company Name

Head Office

Established

Capital Stock

Product Lines

Consolidated Net Sales

Non-consolidated Net Sales

Employees

Domestic Sales Network

Domestic Production Network

Overseas Sales Network

Overseas Production Network

No. of Consolidated

:

:

:

:

:

:

:

:

:

:

:

:

:

1999/3 2000/3 2001/3 2002/3

103,123 106,246

121,201

105,892

2003/3

110,071

(Million of Yen)　

3 Environmental Report 2003

120,000

100,000

80,000

60,000

40,000

20,000

0

Net sales (Consolidated)

1999/3 2000/3 2001/3 2002/3

142,582153,748

174,901157,546

2003/3

155,084

(Million of Yen)　

180,000

150,000

120,000

90,000

60,000

30,000

0

Total assets (Consolidated)

1999/3 2000/3 2001/3 2002/3

4,353 4,3164,570 4,480

2003/3

4,642

(Persons)

5,000

4,000

3,000

2,000

1,000

0

Employees (Consolidated)

1999/3 2000/3 2001/3 2002/3

5,377

2,927

6,703

2,988

2003/3

3,302

(Million of Yen)　

8,000

6,000

4,000

2,000

0

Net income (Consolidated)

Business Summary

is a comprehensive manufacturer of capacitors.

M a j o r P r o d u c t s

Aluminum Electrolytic Capacitors

<Example of mounted products> <Example of mounted products> <Example of mounted products>

Tantalum Electrolytic Capacitors Switching Power Supplies

Aluminum electrolytic capacitors, the most common capacitors, have aluminum oxide as their dielectric. They can obtain a large capacitance. Nichicon uses high-capacity, high-quality electrode foils and highly reliable electrolytes as materials. Furthermore, utilizing our accumulated production engineering background, Nichicon has obtained a top-class market share worldwide.

Tantalum electrolytic capacitors employ oxides of the rare metal tantalum as dielectrics and are Nichicon’s secondary mainstay products. The characteristic features of tantalum capacitors are miniaturization and large capacitance. They are utilized in many ways for mobile phones, digital still cameras, and DVD players and recorders.

Switching power supplies, devices converting AC electricity into DC, make up the heart for electronics. Nichicon is certified under worldwide safety standards and offers efficient products that are small, lightweight, and respond to restrictions for higher harmonics.

Environmental Report 2003 4

If a substance that resists conducting electricity (insulating material) is placed between two electrodes and applied with a voltage, the positive electrode is positively charged and the negative electrode is negatively charged. In insulating material, the portion in contact with the positive electrode becomes negatively charged, and the portion in contact with the negative electrode becomes positively charged. This is a phenomenon called “polarization,” which stores electricity in the insulating material.

How capacitors store electricityInsulator

● When Voltage is Not AppliedElectrode (Conductor)

Electrode (Conductor)

Electricity is stored here

● When Voltage is Applied

Capacitors are components that store electricity for later discharge and are used in almost every electronic appliance, including TV sets, computers, and automobiles. Today, if you count only aluminum electrolytic capacitors, you will find over 1,000 used in the family home. In addition, with the progress of information & communications equipment, the demand for

capacitors is increasing significantly. Nichicon Group leads the industry as a comprehensive manufacturer of such critical components as the capacitor, providing a wide array of products with a variety of functions, such as capacitors for electronic and electric appliances and products with circuits to which capacitor technology is applied.

The Nichicon Group’s Environmental Charter was established at the same time we obtained ISO 14001 certification in December 1997. It has since been revised to the present

edition in July 2001. This environmental charter applies to the Nichicon Group’s activities inside and outside of the country.

The Nichicon Group aims for “Harmonious Coexistence with the Global Environment” and a “Society Sensitive to Humankind and the Environment,” and proceeds with its operations taking environmental protection into great consideration.

Nichicon Corporation affirms the following company-wide action plan, which stipulates the effective use of resources and prevention of environmental pollution as the top priorities. In addition, an independent and unique theme is designed for each factory and office according to the operations and characteristics of the region, while promoting the reduction of environmental loads from every aspect of our business operations.

1.Strive to offer products that have less impact on the environment. 2.In addition to observing environment-related laws and

regulations, construct voluntary management standards and promote adherence.

3.Take action for energy and resource conservation.

4.Make efforts toward the reduction and recycling of waste. 5.Make efforts on the reduction in the use and disposal of

ozone layer disrupters, global warming substances and other hazardous substances through the use, collection and recycling of alternative substances.

6.Offer environmental education and training to raise

employees’ awareness of the environment and an understanding of Nichicon’s environmental concepts

and environmental action plan. 7.Take part in local community activities for environmental

protection to contribute to the society. 8.Continuously improve voluntary environmental

management activities through environmental audit activities, etc.

Progress in Environmental Protect ion Act iv i t ies

Environmental Char ter

Mar.

Dec.

Oct.

Apr.

Mar.

Sep.

Dec.

Oct.

Nov.

Dec.

Jan.

Mar.

1984

1985

1987

1989

1991

1993

1994

1996

1997

Establishment of the Chlorine Organic Solvent Committee

Abolition of the use of trichloroethylene

Start of recycling of liquid wastes by aluminum foil etching

Name changed to the Chlorofluorocarbon Committee

Abolition of 1,1,1- trichloroethane

Establishment of the Environmental Voluntary Plan

Name changed to the Environmental Protection Committee

Abolition of CFCs

Decision to initiate environmental management systems

Establishment of the Environmental Management Room

Holding of the Environmental Management Committee

Kameoka factory won the Management Director Prize in “The 9th Award for Contributors to the Flower and Green City”

First issue of EMS News

Establishment of the Action Plan for Environmental Protection

Apr.

Sep.

Dec.

Feb.

Jul.

Feb.

Jul.

Mar.

Mar.

Aug.

Mar.

Apr.

Jun.

1997

1998

1999

2000

2001

2002

2003

Decision on the name of the environmental mascot character and slogan

Holding of the internal auditors training seminar

Establishment of the environmental charter and environmental rules

Nichicon Singapore earned ISO 14001 certification

Ohno factory earned ISO 14001 certification

Kameoka factory granted an award as an Excellent Energy Management factory from the director of the Kinki Bureau of International Trade and Industry

Completion of acquisition of ISO 14001 certification for all 13 domestic factories

Review of the Action Plan for Environmental Protection

Abolition of the use of incinerators

Abolition of the use of dichloromethane

Completion of acquisition of ISO 14001 certification for the Ohmachi and Tomita factories

Nichicon Fukui earned ISO 14001 certification

Establishment of the CSR Room

Nichicon’s Environment-friendly Mascot, Kantaro

5 Environmental Report 2003

Environmental Principles

Policies Regarding Activities

Hello!

The Nichicon Group’s Environmental Charter

Organization for Environmental ProtectionNichicon’s environmental protection activities are conducted under the system shown in the following chart. The general manager of the CSR Room (director) is the general manager for environmental management and the Environmental

Management Committee discusses and determines the strategies, policies, objectives, and activities concerning environmental protection.

The new CSR Room has been establishedIn June 2003, the Nichicon Group established the CSR Room＊ in

order to fulfill our social responsibility as an enterprise and

improve sustainable development and business value. In order

to continuously improve and enhance the operation of all

environmental protection activities and the environmental

management system, legal compliance, social contribution,

corporate ethics, and risk management, the CSR Room

undertakes the role of auditing the activities as well as

promoting them in cooperation with related departments.

In particular, for environmental protection activities, the

CSR Room will be strengthened as a part of the commission, in

addition to our previous operation of environmental management

based on ISO 14001.

＊CSR stands for Corporate Social Responsibility.

Environmental Report 2003 6

President

Internal Auditing Team

Secretariat of the Environment(Environmental Management Department)

Chemical Substances Management Committee

Secretariat of the Environment

Responsible Person for the Promotion of Environmental Management

Executive Divisions

General Manager of Environment Management

(The general manager of the CSR Room)

Environmental Management CommitteeChairperson: General Manager of the CSR Room

Factory Environment Management CommitteeChairperson: General Manager of Factory and Office

Factory and OfficeManager of Environmental Management in Factory and Office

EMS＊ Supervisor

Specialized Subcommittees on Factory Environment

Energy Saving, Waste, Paper Reduction, Product Chemical Substances

Energy Saving Committee

Green Procurement Committee

Committee on Waste

＊EMS: Acronym for the Environmental Management System

The Environmental Management Committee consists of the general manager for environmental management (the general manager of the CSR Room), the executive officers of the head office, and the chief of each factory and office. The major role of the committee is to create and promote the environmental action plan and to establish the specialized subcommittees required for the promotion of special objectives. This is the top environmental organization of the Nichicon Group.

Role of Environmental Management Committee

In each domestic manufacturing facility, the chief of the factory is also the manager of environmental management. The manager designates the EMS supervisor and drafts an appropriate environmental protection policy according to the environmental impact of each factory. The environmental action plan for each office is discussed and determined in the Factory Environment Management Committee.

Promotion Systems in Factories and Business Offices

The Internal Auditing Team plays an important role in ascertaining whether the environmental management system meets the requirements, is fully executed, and is maintained appropriately. Personnel for Internal Auditing Team must understand the requirements of ISO 14001 and execute the appropriate environmental audit; consequently, persons with the following necessary qualifications are appointed. ○ Internal Auditor: Persons who participated in the seminar “Internal Environmental Auditor Training Course” and passed the final exam.○ Chief Auditor: Persons who participated in the “Formal Training Course (TEC003)” presented by JAB (Japan Accreditation Board of Conformity Assessment) and passed the specified exam. ◇ Internal Environmental Audits are executed twice a year ◇ 90 Internal Environmental Auditors (10 Chief Auditors included)

Role of Internal Auditing Team

Environmental Management

Environmental Management

Internal Environmental Audit Management system audit, Rule observanceaudit, and Environmental performance audit

In August 1996, aiming at harmonious coexistence with the earth, Nichicon decided to obtain ISO 14001 certification to establish environmental management systems that conformed to global standards. According to this plan, the Nichicon Group has earned certifications in 15 factories, including 14 domestic factories and one overseas factory. We are planning for another two certifications by the end of FY 2003 (see the table below). Also, all factories base their environmental policies on “The Nichicon Group’s Environmental Charter” and their own environmental targets and are striving for improved environmental protection.

Every year, the environmental policies in each factory are audited internally (the management system audit, the rule observance audit, and environmental performance audit) by the factory and an external certification body. In addition, an environmental audit by the head office is conducted on all factories to ensure the Group’s environmental management system is functioning effectively.

Certified Offices Date of Registration Examination and Registration Body Registered Certification No.

KUSATSU FACTORY ★

NAGANO FACTORY ★

HOTAKA FACTORY ★/OHMACHI FACTORY ★

OHNO FACTORY ★

TOMITA FACTORY ★

SUWA FACTORY ★

NICHICON (KAMEOKA) CORPORATION＊1 ★

NICHICON TANTALUM CORPORATION ★

NICHICON (ASAHI) CORPORATION＊2 ★

NICHICON (IWATE) CORPORATION ★

NICHICON (WAKASA) CORPORATION＊3 ★

NICHICON (DENDO) CORPORATION＊4 ★

NICHICON (FUKUI) CORPORATION ★

NICHICON (MALAYSIA) SDN. BHD.

NICHICON (SHIGA) Corporation＊5

NICHICON ELECTRONICS (WUXI) CO., LTD.＊6

Dec. 1998

Dec. 1998

Dec. 2001

Jul. 1998

Mar. 2002

Jun. 1999

Nov. 1998

Jul. 1998

Jul. 1999

Jul. 1999

Feb. 1999

Jun. 1999

Apr. 2003

Dec. 1998

JQA-EM1769

JQA-EM0278

JQA-EＭ1964

JQA-EM0182

JQA-EM2295

JQA-EM1771

JQA-EM1768

JQA-EM1786

JQA-EM0470

JQA-EM0469

JQA-EM1772

JQA-EM1773

JQA-EM3125

N00330 1128

JQA

JQA

JQA

JQA

JQA

JQA

JQA

JQA

JQA

JQA

JQA

JQA

JQA

SIRIM, QAS

List of Nichicon Group Factories That Received ISO 14001 Certification (★ included in the scope of this report)

◆Outcome of external audit in 2002

Offices

Kusatsu Factory

Nagano Factory

Hotaka/Ohmachi Factory

Ohno Factory

Tomita Factory

Suwa Factory

Nichicon (Kameoka) Corporation

Nichicon Tantalum Corporation

Nichicon (Asahi) Corporation

Nichicon (Iwate) Corporation

Nichicon (Wakasa) Corporation

Nichicon (Dendo) Corporation

Nichicon (Fukui) Corporation

Total

＊1: On April 1, 2003, Kameoka Factory was spun off into a separate company as Nichicon (Kameoka) Corporation＊2: On April 1, 2003, Asahi Electric Industries Co., Ltd. changed its trade name to Nichicon (Asahi) Corporation＊3: On April 1, 2003, Wakasa Electric Corporation changed its trade name to Nichicon (Wakasa) Corporation＊4: On April 1, 2003, Dendo Corporation changed its trade name to Nichicon (Dendo) Corporation

Will obtain certification by the end of FY 2003

Will obtain certification by the end of FY 2003

Environmental policies In each factory

External audit by certification body

Audit by head office

Faults

0

0

0

0

0

1

0

0

0

0

0

0

0

1

Directions

4

2

3

9

3

6

3

4

3

6

5

11

8

67

Environmental Management SystemCertification of ISO 14001

Environmental Audit

7 Environmental Report 2003

Model of an Environmental Management SystemSustainable Improvement

Plan· Environmental Policy· Action Program

Do

· Examination of the Results and Corrective Action · Internal Audit

Check

· Execution and Operation of Activities for Environmental Protection

Action· Reassessment by

Top Management

＊5: Established in April 2000＊6: Operation in August 2002

Environmental Education and Training

In each factory, environmental education is provided, such as “Education Based on the Environmental Management System (EMS Education),” “Education for Newly Hired Employees” “Special Training for Internal Environmental Auditors,” and “Education for Each Business Class and Professionalism.” For eco-friendly corporate management, each employee’s realization of environmental problems is important. Nichicon understands the importance of environmental education for employees.

The Nichicon Group executes a proposition system regarding the organization and methods for the purpose of encouraging and motivating employees to generate inventive approaches, as well as improving efficiency, rationality, and the operational safety. Total submitted propositions in FY 2002 was 8,124, and 866 propositions were related to the environment. All suggestions were put into action. The propositions were assessed in the “Inquiry Committee for Propositions” with two-stage judgments. Excellent propositions, defined as those that generate significant effects after a six-month execution, are rewarded.

New employees

Promotedemployees Education for management

For supervisory employees as a leader for promoting environmental protection policies, this program provides full recognition of the significance of environmental protection policies and the knowledge necessary for operation of the environmental management system.

Environmentalaudit

Special training for internal environmental auditors

Internal environmental auditors, who audit the efficiency of our environmental management system, need to correctly understand the requirements of ISO 14001 and the latest legal revision information. In the special training for auditors, the contents of the external audits for each factory are explained and information regarding the legal revisions are shared among auditors to upgrade the auditors’ ability.

Special training for chief internal environmental auditors

Professionaleducation

Education for designing environment-conscious products This program also includes seminars by external bodies for employees

engaged in professional work (product design, jobs requiring legal qualifications, etc) to acquire the necessary knowledge. Education for legal workers

EMSEducation

Environmental policy, purpose, and target For employees engaged in work that influences the environment (operation of wastewater treatment facility, management of waste, treatment of chemical substances, etc), the knowledge of the environmental impact of their work and procedures for decreasing environmental loads are provided.

Management program

Education for significant works

Systems and Content of Environmental Education

Education as an introductory course

Education on assignment

Covers a wide range of topics related to the environment aiming for new employees to become interested in the environment and our related activities.

Environmental Education

Publication of EMS News (Environmental News) Proposition Activities

Environmental Report 2003 8

As an environmental protection activity, “EMS News (Environmental News)” is published in each factory to raise employees’ awareness of environmental issues. In FY 2002, the news was published 53 times in the group as a whole.

··

·

·

·

·

Environmental Education: Nichicon (Kameoka) Corporation

Environmental Management

We have established “The Nichicon Action Plan for Environmental Protection” stipulated in “The Nichicon Group’s Environmental Charter.” For FY 2002, the targets and results were as follows:

The Nichicon Action Plan for Environmental Protection

Action Plan for Environmental Protection (Summary)　　　　

Action Plan Target (FY 2002-2005)

Acquire ISO 14001 certification for all factories, including two newly built ones, by the end of FY 2003 (Nichicon (Fukui) Corporation and Nichicon (Shiga) Corporation).

FY 2002

ISO 14001 certification system is established for 2 newly built factories (Nichicon (Fukui) Corporation and Nichicon (Shiga) Corporation).

Targets ResultEvaluation Reference

Nichicon (Fukui) Corporation earned certification on April 4, 2002.

Nichicon (Shiga) Corporation started EMS operations in April 2002 and plans an examination for certification in December 2003.

Using FY 2001 as the standard, reduce CO2 emissions per unit of sales by 4% by the end of FY 2005.

Using FY 2001 as the standard, reduce CO2 emissions per unit of sales by 1% by the end of FY 2002.

Fulfill zero emissions (98% recycling rate) by the end of FY 2005.

Fulfill 95% waste recycling rate.

Fulfilled 98% waste recycling rate.

Using FY 1997 as the standard, reduce use of paper by 50% by the end of FY 2005.

Using FY 1997 as the standard, reduce use of paper by 40%.

Promotion of substitute.

Promotion of substitute for the plating of wire lead and PVC sleeves.

Adopted washing machine devoid of Freon.

Action on ProductsManufacture all products with lead-free materials (Elimination of lead on external electrode terminal areas)

Using FY 2001 as the standard, reduce emissions of hazardous chemicals (First Class chemical substances under the PRTR Law) by 20% by the end of FY 2005.

◎

×

◎

×

○

○

◎

◎ Start to establish and operate Green Procurement Guidelines in FY 2002.

Establish and operate Green Procurement Guidelines.

P.7

P.15

P.16

P.17

P.15

P.13

P.19

P.17

Establishment of Environmental Management System

Energy Saving Activities

Waste Reduction Activities

Resource Saving Activities

Reduction of Environmental Pollutants

Green Procurement

Start operations.

Completely abolish the use of HCFC (hydrochlorofluorocarbon) by the end ofFY 2003.

17% increase from FY 2001.

37% reduction from FY 1997.

48% reduction from FY 2001.

Using FY 2001 as the standard, reduce emissions by 5%.

Switch to new products according to Customers’ demand.

9 Environmental Report 2003

×： No result was achieved △： No outstanding result was achieved ○： Achieved acceptable results ◎： Achieved positive results

(These ratings are based on self-evaluations.)

Item

Action on Products

Completely abolish the use of lead by March 2004(Completion of elimination of lead on external electrode terminal areas)

Completely abolish the use of Polyvinyl Chloride (PVC) by December 2004. (Completion of elimination of PVC on sleeve materials)

Acquire ISO 14001 certification for all factories, including two newly built ones, by the end of FY 2003 (Nichicon (Fukui) Corporation and Nichicon (Shiga) Corporation).

Acquire ISO 14001 certification for Nichicon (Shiga) Corporation (Examination for certification is planned in December 2003).

Acquire ISO 14001 certification for NICHICON ELECTRONICS (WUXI) CO., LTD. (Plan to acquire by the end of FY 2003).

Using FY 2001 as the standard, reduce CO2 emissions per unit of sales by 4% by the end of FY 2005.

Reduce CO2 emissions per unit of sales by 1% from previous year.

Maintain the results of FY 2002 (98% recycling rate).

Start to establish and operate Green Procurement Guidelines in FY 2002.

Establishment ofEnvironmental Management system

Energy Saving Activities

Waste Reduction Activities

Resource Saving Activities

Reduction of Environmental Pollutants

Green Procurement

Action Plan (2002-2005) Targets for 2003

Completely abolish the use of HCFC (hydrochlorofluorocarbon) by the end of FY 2003.

Completely abolish the use of HCFC (hydrochlorofluorocarbon) by the end of FY 2003.

Using FY 2001 as the standard, reduce emissions of hazardous chemicals (First Class chemical substances under the PRTR Law) by 20% by the end of FY 2005.

Develop a plan to reduce the boron discharged into water.

Continue the examination of parts and materialsuppliers and review the regulations.

Energy-Saving Activities

● Using FY 2001 as the standard, reduce CO2 emissions per unit of sales by 1% per year was planned. However, the result for FY 2002 was a 17% increase from the previous year. In FY 2003, reduction by 1% from the previous year is an imperative target to realizing the strategy in the medium term and aim at greater improvement.

Waste Reduction Activities (Zero Emission)

● As the target by the end of FY 2005 (98% recycling) was achieved, the target in FY 2003 is to maintain this 98%.

Reduction of Environmental Pollutants

● Striving for the elimination of lead in products, we provide lead-free products as a substitute in response to environmental concerns. Based on the recent strict regulation of lead, the target was set to abolish the use aiming to accelerate the substitution in new products. ● In reduction of environmental pollution, as a result of reduction of boron discharged into the water, we achieved a 48% reduction from the previous year. In FY 2003, we are examining the method of collection of boron that could not be reduced in the conventional way.

Fulfill zero emissions (98% recycling rate) by the end of FY 2005.

Using FY 1997 as the standard, reduce use of paper by 50% by the end of FY 2005.

Using FY 1997 as the standard, reduce use of paper by 40%.

Completely abolish the use of lead on external electrode terminal areas by the end of FY 2003.

Promote the substitution of PVC-less materials

Environmental Report 2003 10

About reassessment of the plan according to the results of the previous year

Environmental Management

Environmental Accounting

Nichicon conducted environmental accounting from FY 2000 for an examination of environmental protection costs and effects for the purpose of improving our environmental performance and disclosing the information.

For the following data, we summarized the results in accordance with the document, “For the Establishment of Environmental Accounting Systems (Report of 2002)” issued by Ministry of the Environment.

● Time Period April 1, 2002 - March 31, 2003

● Scope Fourteen domestic factories certified under ISO 14001

● The rules for the calculation Complete plant investments were included in the calculation. The aggregation of depreciation was not conducted. The effects of plant investments for up to 3 years were included in the calculation. The effects included in the calculation were limited to quantifiable outcomes based on specific criteria. ・No risk aversion effect (deemed effect) was adopted. ・The profit from the sales of recycling and money saved by reducing energy consumption were included in the calculation as the effect that was actually obtained.

Concept of Environmental Accounting

11 Environmental Report 2003

Environmental Protection Costs

Classification of Environmental Protection Costs

Main ActivitiesInvestment Cost Total Investment Cost Total

Investments and expenses necessary for the prevention of pollution

Business Area Costs

Investments and expenses necessary for execution of energy-saving plans

Investments and commission charges necessary for the appropriate disposal of wastes

Nature preservation activities at the community near to the factories and contributions to environmental organizations

Costs for the development of environmentally friendly products, substitutes for HCFC, lead-free products, etc

Expenses related to clean up soil and ground water contamination

Necessary expenses for the acquisition and maintenance of ISO 14001 certification and the costs necessary for environmental education and trainingManagement Activity Costs

R&D Costs

Community Activity Costs

Repair Costs for Environmental Damage

(Millions of Yen)

Prevention of Pollution

Energy Savings

Waste Disposal

FY 2002 FY 2001

Economic Effects of Environmental Protection Measures

Major EffectsFY 2002 FY 2001

(Millions of Yen)

Energy savings

Resource-saving effects

Profit from sales related to waste disposal and recycling

Amounts In environmental accounting for FY 2002, the economic effect equaled 407 million yen (145% of the previous year), while total costs for environmental protection equaled 1,372 million yen (116% of the previous year).The main reason for the increase in Environmental Protection Costs was the inclusion of Nichicon (Fukui) Corporation in the scope for this year (120 million yen increased). The main reason for the increase in Prevention of Pollution Costs was the adoption of the Boron Recovery System at Tomita factory. The reason for the “0” for Community Activity Costs was that cleaning and planting trees inside and outside of the factories was transferred to Management Activity Costs from Community Activity Costs. The energy-saving effect at Nichicon Tantalum Corporation contributed 153 million yen to the overall increase in Economic Effects of Environmental Protection Measures.

183

76

207

407

163

27

22

0

40

0

0

252

482

13

341

100

182

0

2

1,120

645

40

363

100

222

0

2

1,372

5

10

175

1

19

0

0

210

455

10

260

147

76

8

8

964

460

20

435

148

95

8

8

1,174

73

78

183

279Total

Total

1

2

3

4

Environmental Performance

The environmental load from the Nichicon Group has been defined as INPUT and OUTPUT since the 2002 report in order to understand the numerical relationship between corporate operations and the environment. This year’s report complies with the “Guidelines for Environmental Performance of Corporations (2002)” from the Ministry of the Environment. In a comparison of the environmental load for 2001 and 2002, electricity consumption increased from 493,956,000 kWh to 597,734,000 kWh (increase of 21%). The increase in electricity used was the result of a 33% increase in the production of aluminum electrolytic capacitors in 2002, mainly in the manufacturing process for electrode foils. On the other hand, improvements were made in 2001 in the use of chemical substances. Adoption of the Boron Recovery System at the Tomita Factory reduced the amount of boron discharged into public water by 63%. As for wastewater, the recycling of polluted sludge significantly reduced the amount discharged by 51% compared to 2001.

This year, OUTPUT data included the disclosure of the amount of NOx, SOx, BOD, COD, and drainage. We plan to continuously examine the environmental load data in greater detail and utilize that information for more reductions in the load from our operations.

Environmental Load of Nichicon Corporation

Environmental Report 2003 12

I N P U T

O U T P U T

Chemical Substance(Under the PRTR Law)

350 t

CO2 264,742t-CO2

NOx (nitrogen oxide)

42 t

BOD(biochemical

oxygen demand)

22 t

SOx(sulfur oxide)

64 t

Amount of drainage

7,460,000 t

Disposal on

Commission 1,336 t

Amount of

recycling waste 64,391 t

ChemicalSubstance

(Under the PRTR Law)

2,188 t

Electricity 597,734,000 kWh

Water 410,000 t

Paper 7,397,784 sheets

Ground water 7,380,000 t

Gas 279,285 kg

Crude Oil 13,008 kl

COD(chemical

oxygen demand)

10 t

Environmental Performance

In each Nichicon factory, products that contribute to the protection of the environment are being manufactured with the goal of “Harmonious Coexistence with the Global Environment.” Products that have less impact on the environment (e.g., polyvinyl chloride (PVC)-less, lead-free or sulfur hexafluoride (SF6)-free products) have the prefix “Geo” to indicate that they are environmentally friendly products. In addition, products that contribute to power- and resource-saving efforts and resolve the waste-related environmental problems are also developed.

Basic Approach to Product Development

■ Dry-Type Power Capacitor, GeoDRY　GeoDRY is a dry-type power capacitor that uses nitrogen (N2) gas as a substitute for sulfur hexafluoride (SF6) gas, which was designated as a restricted-use gas to prevent global warming. This product has been used as power system in facilities where fire protection is important such as buildings, hotels, hospitals, and department stores. This product uses lead-free solder for connection of capacitor elements and PVC-less material for protectors of terminals. Nichicon has completed the full lineup at flameproof dry-type power capacitors from high to low voltage, which is a first in the industry.

■ Capacitors without Lead or Polyvinyl Chloride (PVC), Geo CAPThese capacitors do not contain PVC in the external materials or lead in the terminals. All aluminum electrolytic capacitors, tantalum electrolytic capacitors, and plastic film capacitors have “Geo Cap” models in their lineups.

Correspondence to RoHSRoHS (Restriction of the use of the Certain Hazardous

Substances in Electrical and Electronic Equipment) is a directive

that restricts the use of the certain chemical substances in

electrical and electronic equipments sold in the EU. It demands

that manufacturers abolish the heavy metals (lead, cadmium,

hydrargyrum, and hexavalent) and fire retardants with bromine

causing the generation of dioxin (PBB and PBDE) by

July 1, 2006.

Although lead falls under this list for Nichicon, we have

already finished the development of lead-free products and

begun to sell them. We are planning to switch every item into

a lead-free product as of 2004. We have also already completed

the switch to PVC using lead as a stabilizer into PET

(polyethylene terephthalate).

Environmentally Friendly Products

Environmentally friendly products with snap-in terminals that

do not contain PVC or lead

ConductiveAdhesive Agent

Anode Element

Welding

Anode Tantalum LeadEpoxy Resin

Cathode Frame(Sn plating)

Anode Frame(Sn plating)

MetalPlated Layer

Anode ElementEpoxy ResinSilver

Electrode

SilverElectrode

Cathode Electrode

(Sn/Cu soldering)

Anode Tantalum Lead

Anode Electrode (Sn/Cu soldering)Metal Plated Layer

Lead has not been used for this product since its development (1986).

Delivery of lead-free products became possible from April 2001.

Terminal ElectrodeSn Plating

(lead-free)

Lead-FreeSprayed MetalSn/Zn Alloyed Metal

Cu PlatingLead Wire

Fe

Cu Plating

Fe Sn Plating

Cu Plating

Lead WireCu Plating

Fe

Sn Plating

Sn Plating

Lead-Free Metalization SpraySn/Zn Alloyed Metal

Cu Plating

Terminal: Tin plating (lead-free)

Sleeve: PET or polyolefin(PVC-free)

Sleeve: Polyolefin (PVC-less)

Bottom Plate: Polyester (PVC-less)

Molded Type Resin Coated Type (Conformal Type)

Lead-Free Sprayed MetalElimination of the use of lead from wires and terminal plating

Screw Terminal TypeSnap-in Terminal Type

Chip Type Tantalum Electrolytic Capacitor

Plastic Film Capacitor

Aluminum Electrolytic Capacitor

13 Environmental Report 2003

■ IH Power Supply for IGBTIn 2002, Nichicon developed IH power supply for IGBT (Insulated Gate Bipolar Transistor). This is a product that contributes the cutback of standby power of laser printers. IH (induction heating), a popular circuit method used in rice cookers and electromagnetic cookware, has a feature that it can transform a large amount of electric energy to thermal energy immediately and efficiently (Efficiency of power conversion is 80-90%). Laser printers usually have to operate the heater at all times to settle the toner, even during standby time. In the IH method, the heater can generate heat immediately and standby power consumption can be restricted to the utmost limit.

■ Power Conditioner for Solar Power SystemSolar power prevails as 21st century clean energy. Nichicon had developed and provided power conditioners to transform solar energy to electric energy with high efficiency, but with an expanding market, the smaller, low-cost products are being sought now. In 2002, Nichicon developed a small, low-cost power conditioner using no transformers for the “Trans-less Method”. Not only the efficiency of power generation was improved, but also power consumption at night became zero. It is set on the rooftop of buildings, dwelling houses, and public facilities, and also distinguished on the sidewalls of highways or noise-proof walls.

Products Contributing to Reduction of Environmental Load

Environmental Report 2003 14

Voice from Technical Director

We have given an eye to the “environment” as the critical keyword for product development. With the 4R basic concept (Reject, Reduce, Reuse, and Recycle), we strive for “Manufacturing products that contribute to environmental protection,” such as disuse of substances poisonous to the human body, resource saving, energy saving, and design for longevity in each factory.

Recently, customer concerns about environmental problems are rising. A few years ago, almost all inquiries from customers were about the corporate concept of environmental protection or a concrete method for antipollution. In recent years, disclosure of information about chemical substances included in products is rather demanding.

In this background, there is a move to strengthen regulations about chemical substances in products domestically and overseas, especially in EU. For example, RoHS will ban the use of cadmium, lead, hydrargyrum, hexavalent, and fire retardants with bromine from July 1, 2006. As a result, there are increasing inquiries about “lead-free” and “certification of the disuse of certain chemical substances.” Nichicon provides the earth-friendly “GeoCap” capacitors without using PVC in the external material, and has developed products without lead in external terminals taking the initiative in the industry. These “PVC-less” and “lead-free” capacitors respond to RoHS and are an embodiment of our environmental technology. We have also completed development of lead-free tantalum electrolytic capacitors. Moreover, we have switched stabilizers to the “antimony bromide” used as epoxy resin for molding and external material into other non-target substances. We respond to customer demands before movements in the industry.

Our technical department quickly adapts to the new legal regulations regarding products and information on the industry. We actively strive for development of environment-friendly products achieving energy and resource saving, as well as reduce the use of chemical substances. We will continue to go ahead with the product development to contribute to society.

Manager of Technical Department

Koichi Mitsui

Environmental Performance

Each factory and office of the Nichicon Group has implemented a variety of energy saving activities in response to concerns over global warming. In addition, a company-wide directive includes the following: adjustment of the proper temperature of air conditioners, elimination of unnecessary lighting and systems, appropriate pressure control of compressors, elimination of air leakage, and employee education using the EMS newsletter. In addition, we are continuing the use of inverters in power plants, manufacturing facilities, and air conditioning equipment. We are also introducing new energy-saving equipment to further promote reductions in energy consumption. The company’s Energy Saving Committee examines the activities of each factory and office, and the results are distributed to the entire company. In FY 2002, we set a target of achieving a 1% reduction per unit of sales from FY 2001, but the results were a 17% increase compared to FY 2001.

The main reasons for this failure were the increased production at the factory for forming treatment of aluminum electrode foil (Tomita Factory), where about 50% of the electricity for the entire company was consumed in FY 2002, and additional installation of new forming machines. They led the company as a whole with 123% of the usage of electricity from the previous year. To make matters worse, the amount of sales increased just 3.9% causing a decline in the amount per unit of sales. For an energy-saving approach, we strived to increase the amount per unit of sales by actively promoting the “Improvement of production yield ratio and operation rates of equipment.” In FY 2003, we plan further to promote energy savings with an eye toward reform of the energy supply system, such as adoption of co-generation system.

Prevention of Global WarmingEnergy-Saving Approach in the Manufacturing Process

Nichicon abolished the use of ozone layer disrupters, CFCs, in 1991 and 1,1,1-trichloroethane in 1994. Presently, one remaining monitored substance, HCFC (hydrochlorofluorocarbon) is used in the manufacturing processes of Nichicon (Kameoka) Corporation and will be abolished by the end of FY 2003. In FY 2002, alcohol-solvent cleaning equipment was adopted to promote the transfer from HCFC to alcohol cleaning agents.

e-OIL (recycled fuel) is used for diesel oilNichicon Tantalum Corporation

Nichicon Tantalum Corporation began to use “e-OIL (recycled fuel)” as a diesel fuel in October 2002. e-OIL is a fuel generated from used home and restaurant cooking oil for diesel vehicles. It is useful for preventing global warming by natural circulation of CO2, as well as reduction of NOx (nitrogen oxide), SOx (sulfur oxide), and diesel exhaust particles.

15 Environmental Report 2003

250,000

200,000

150,000

100,000

50,000

0

250

200

150

100

50

0

10.0

8.0

6.0

4.0

2.0

0

100

80

60

40

20

0

CO2 emissions (t-CO2)

CO2 emissions (t-CO2) Electricity LPG Crude oilPer unit of sales (t-CO2/100 million yen)

Per unit of sales (t-CO2/100 million yen) (%)

CO2 emissions Type of energy used

1993 1994 1995 1992 200220011997 1998 1999 2000 2001 20021996

59,817

82.53 80.11 77.68 65.53 62.15 67.18

114.47

167.70

205.08

240.67

62,956 65,605 61,824 65,735 69,282 121,617 203,255 217,179 264,742 78.78 92.38 92.06

20.55 7.35 7.72

0.67

0.27 0.22

Abolition of Ozone Layer Disrupters

Usage of HCFC

Amount of use (t/Year)

1997 1998 1999 2000 2001 2002 2003(forecast)

1996

8.80 9.01 9.35 8.95

6.84 7.21

5.00

8.26

Our Approach

The Nichicon Group has been reducing waste and promoting recycling to help create a more economical recycling society. Although the Nichicon Group strives for a “30% reduction from FY 1996 by the end of FY 2002”, 43% was

reduced in FY 2001. So now, it is striving for zero emissions (98% recycling rate) by the end of FY 2005 as the second step of waste reduction. At the end of FY 2002, 98% was achieved.

Approaches to Waste Reduction and RecyclingFor achievement of zero emission

Environmental Report 2003 16

100

80

60

40

20

0

100,000

80,000

60,000

40,000

20,000

0

Total Discharge Amount, Recycled Amount (t)

Total Discharge Amount (t) Recycled Amount (t) Recycling Rate (%)

Recycling Rate (%)

Total Discharge Amount, Recycled Amount, and Recycling Rate Breakdown of Generated

Industrial Waste (FY 2002)

1995 1997 1998 1999 2000 2001 20021996

98.094.591.592.191.790.892.392.5

“Total discharge” is the “total weight of all wastes” generated by the company, and “disposal on commission” is the weight of wastes for which intermediate treatment and final disposal was outsourced to outside contractors. The “disposal on commission” does not include the wastes passed to the outside contractors for recycling.

31,110 34,297 35,641 37,048

33,96332,36831,67228,789

48,45758,096 52,048

65,727

64,391

49,16253,13444,639

5.0

4.0

3.0

2.0

1.0

0

100,000

80,000

60,000

40,000

20,000

0

Total Discharge, Disposal on Commission (t)

Total Discharge (t) Disposal on Commission (t) Amount of waste per unit of sales (t/100 million yen)

Amount of waste per unit of sales (t/100 million yen)

Total Discharge and Disposal on Commission Breakdown of Industrial Waste

Disposal on Commission（FY 2002）

1995 1997 1998 1999 2000 2001 20021996

2.952.49

2.77

31,110 34,297 35,641 37,048

2,3312,3752,4292,329

48,45758,096 52,048

65,727

1,3362,6343,5802,684

1.20

2.492.262.24

2.58

Intermediate Treatment on Commission

2,437t

Final Disposal205t

Direct Recycle63,085t

Final Disposal after Intermediate Treatment

556t

Recycle after Intermediate Treatment

1,306t

Amount of Recycle 64,391ｔ Total Treatment 761ｔ

Recycling ItemsSludge: Flocculants,Collection of metals (Nickels)

Wastec Plastics: Fuel, Cement Material

Waste Oil: Combustion improver, Recycle

Metel: Recycled Metal (Aluminum, Tantalum)

Amount of Waste, Valuable items65,727t

(575ｔ Reduced)

Sludge 6%

Scrap Metal 12%

Other 7%

Waste Oil 24%

Waste Paper 21%

Waste Plastic 30%

Waste Acid 81％

Sludge 13%

Scrap Metal 2% Waste Oil 1%

Waste Paper 1%

Waste Plastic 2%

＊The Nichicon Group defines zero emission as recycling of 98% of the total amount of waste material.

65,727t

1,336t

Environmental Performance

The environmental impact of raw materials and the facilities used in the manufacturing process has been evaluated using the chemical substance management criteria and initial facility evaluation criteria. With this evaluation system, we have selected materials and facilities that have less impact on the environment compared to conventional sources and installations. In 2002, we established the “Green Procurement Guidelines” and began the operation. Green Procurement Guidelines designates the substances that create an environmental load that the Nichicon Group decided to manage according to the law and its own standards for prohibited substances, which are forbidden for use in products by law, and substances identified for reduction or inclusion in products. Green procurement is evaluated with our own “Assessment of Environmental Management Activities (22 items)” to examine the environmental protection activities of every supplier, and the “Investigation of substances creating an environmental load” for the parts and materials from suppliers. As office supplies, with execution of the Law on Promoting Green Purchasing in April 2001, switching to green products mainly for consumables was promoted.

Green Procurement

Nichicon Group has been working on “Paper Reduction Activities,” aiming to reduce the use of paper by 50% by the end of FY 2005 compared to 1997. As concrete policies, paper reduction includes using the backs of used sheets, copying on both sides of the paper, reviewing documents in circulation, utilization of e-mail in inter-company communication, and computerization of company formats. Since 1999, paper reduction activities are promoted with results better than the estimates. The target for FY 2002 was 40% (target for FY 2003 in medium term planning), but the result was just 37% (2% reduction from the previous year). Even though this activity seems to have been sufficient, we continue to work toward a 50% reduction by the end of FY 2005.

Paper Reduction Activities

17 Environmental Report 2003

Purchased AmountPurchasing Plan

12,000

10,000

8,000

6,000

4,000

2,000

0

Amount of Paper Consumption

Sheets (thousands of sheets)

19981997 (Benchmark year)

1999 2000 2001 2002 2003 2004 2005

11,07011,785 9,571

10,0179,428

8,839 8,2497,071

6,4825,892

10,606

8,345 7,555 7,398

Place for reuse of materials

Reels

Result of reuse/Receipt

Packages for lead wires

Our Approachs

Reuse of packaging materials and cardboardNichicon (Fukui) Corporation

Nichicon (Fukui) Corporation, a newly established factory in February 2000, started operation for ISO 14001 in April 2002 and obtained certification in April 2003. It began to reuse packaging materials (package for lead wire, empty reel for embossed tape, electrolytic paper core) and cardboard as one of the activities for reduction of waste materials, In particular, “Storage site for reuse of materials” at which the used materials are gathered by suppliers was set in the delivery area in the factory so that suppliers may collect them when they bring new materials. At the same time, the number of materials can be managed thoroughly and waste was completely eliminated. Just for the three months from March to June of 2003, 246 boxes of packages of lead wires, 516 boxes of empty reels for embossed tape, and 9 boxes of electrolytic paper cores were collected; the effect from this resource saving was 4.6 t in volume weight.

Environmental Report 2003 18

Nichicon Tantalum Corporation adopted a waste disposal system in December 2002 in order to eliminate raw waste garbage from the cafeteria (50 kg a month). Raw garbage is dried to use as organic fertilizer for green spaces in the factory. In May 2003, waste mold resin began to be compressed by a pressing machine, aiming at a 45% volume reduction each year. In June, reduction of waste taping materials was also started. Separating them and using shredder, the volume for landfill was reduced to 1/6.

Recycling of raw garbage and reduction of waste plasticsNichicon Tantalum Corporation

Nichicon (Asahi) Corporation developed “Tape peeler” to recycle the used tape for capacitor elements＊. The used tape was wasted (or recycled as combustion improver) as electrolyte was put on it. This

machine, however, can wash away the electrolyte and rewind it again so that it can be used repeatedly. The effect from resource saving by this tape peeler is 6tons in volume (15% of total tapes used) a year.

Development of tape peeler Nichicon (Asahi) Corporation

Waste garbage disposer Dried tea leaves

Before shredding waste taping materials After shredding waste taping materials 1/6 volume

Before compression of waste mold resin After compression of waste mold resin

Before adoption

Element

tapetaping element

taping element

impregnation assembling

impregnation assembling

rewinding used tape

rewinding used tape

waste

After adoptionElement

tapecollection peeling tape reuse

＊ Tape for capacitor elements: a transfer means from element process to impregnation and assembling process to automate the manufacturing process of aluminum electrolytic capacitors

tape

taping element

rewindingused tape

waste (recycle as combustion improver)

collecting tape

tape peeler collected tape

reusable tape

According to the Revised Air Pollution Control Act and guidelines from the electric and electronic industries, Nichicon has been working on understanding and reducing what is discharged from our factories. Of the substances we use, dichloromethane (methylene chloride), a monitored substance, was found, but through introduction of substitute cleaning equipment and by completely substituting hydrocarbon cleaning agents in FY 2001, we eliminated it totally.

PRTR is the acronym for “Pollutant Release and Transfer Register,” which makes it obligatory to understand, aggregate, and publicize data on the source, amount, and type of hazardous substances discharged into the environment, and how much of these substances were included in the waste transported out of the factories. In accordance with the PRTR Guidelines issued by the electrical and electronic industries, Nichicon took part in the PRTR investigations (179 chemical agent groups) conducted by 5

organizations in June 1998. In 2002, we investigated 354 chemical agents of the target in PRTR-law; 27 chemical agents were used and 10 were included as a monitored substance. We completed a report to the administrative authorities by June 30, 2003. Nichicon will further promote activities to reduce the use of such substances and substitute other less harmful substances with the goal of reducing the amount of discharge.

Approaches for PRTR (Pollutant Release and Transfer Register)

Management of Harmful Air Pollutants

Prevention of Air and Water Pollution

Environmental Performance

Appropriate Management of Chemical Substances and Emissions Reduction

The target for the amount of emissions and transference of substances according to the PRTR Law. (FY 2002: Domestic)

Nichicon has established voluntary emission standards for the prevention of air and water pollution, which are stricter than the standards stipulated by current laws and regulations. Based on our environmental management system, we are maintaining strict control of chemical agents and making significant efforts to prevent pollution.

19 Environmental Report 2003

Amount of emissions

SubstancesNumber

specified in Cabinet Order

CAS No.Amount of

usage(ton)

Amount discharged

into air

Amount discharged

into soilLandfill Total

emissionOthers(Waste)

Total transfer

Amount transferred into sewer

Amount discharged into water

Amount of transference

35.0

30.0

25.0

20.0

15.0

10.0

5.0

0

Amount of Dichloromethane consumedAmount Consumed (ton/year)

1998 1999 20001995 1996 1997 2001 2002

32.3

35.2

31.6

35.7

23.8

6.64.1

0.0

11.35

2.85

13.14

257.81

3.12

0.08

0.05

1.61

6.18

0.28

2.76

0.00

1.46

0.64

3.29

2.62

0.34

307.58

230.97

11.35

2.85

13.14

257.81

3.12

0.08

0.05

1.61

6.18

0.28

2.76

0.00

1.46

0.64

3.29

2.62

0.34

307.58

230.97

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

5.72

0.00

0.06

5.19

0.00

7.47

0.02

0.00

0.00

0.00

24.49

0.00

0.10

43.05

82.77

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

24.38

0.00

0.04

24.43

67.41

0.00

0.00

0.00

0.00

5.72

0.00

0.06

5.19

0.00

7.47

0.02

0.00

0.00

0.00

0.11

0.00

0.06

18.63

15.36

11.35

9.05

26.13

1,685.65

8.84

4.16

2.46

6.80

17.49

7.75

261.33

15.30

1.67

4.30

119.24

5.26

1.56

2,188.33

1,819.05

HSC010909

NONE

25068-38-6

107-21-1

1330-20-7

NONE

108-05-4

NONE

11070-44-3

108-88-3

NONE

7440-02-0

NONE

117-81-7

NONE

NONE

24

25

30

43

63

64

102

144

202

227

230

231

232

272

304

311

N-alkylbenzenesulfonic acid and its salts

Antimony and its compounds

Polymer of 4,4’- isopropylidenediphenol and 1-chloro- 2,3- epoxypropane (liquid)

Ethylene glycol

Xylene

Silver and its water- soluble compounds

Vinyl acetate

Dichloropentafluoropropane

Tetrahydromethylphthalic anhydride

Toluene

Lead and its compounds

Nickel

Nickel compounds

Bis(2- ethylhexyl)phthalate

Boron and its compounds

Manganese and its compounds

11 others

2001

Total

Training for an Emergency

In each factory, in addition to analyzing and registering potentially hazardous factors through the environmental impact assessment and assuming the possibility of leakage of oil and chemical substances, we regularly conduct emergency drills to develop appropriate responses in the event of an emergency. Also, emergency control tools are installed in all necessary locations in order to prevent leakage from factories in case of an emergency.

Adoption of a Boric Acid Recovery SystemTomita Factory

In June 2002, the Clean Water Law was partly amended and designated boron and its compounds, fluorine and its compounds, ammonia and its compounds, and nitrites and nitric compounds as harmful substances. Consequently, for water containing these substances, restrictions began on July 1, 2001 for emissions to the public water supply and underground water. Factories where equipment handling boric acid were established had to comply with this regulation on July 1, 2002. The Tomita factory had used boric acid in the production process for forming foils (aluminum foil with a surface formed), which is material for aluminum electrolytic capacitors. But, after the amendment, the factory adopted a boron recovery system in April 2002 and began to full operations in May, which was a first in the industry. This system condenses and separates wastewater exhausted from the foil-forming process to collect boric acid in the form of crystals. The amount of recovered boric acid is now about 30t per month on the average. Boric acid crystals with 99% purity were sold to recyclers as a valuable resource and utilized for glaze materials in pottery and glass wool (heat insulating agents). This is the first step in the regulation by the Clean Water Law in which manufacturers of electronic parts, such as Nichicon Group, must limit exhausts to 25 ppm. In 2004, the limit will be below 10 ppm. Needless to say, we have considered our next actions. We have also made a considerable reduction in the amount of boric acid discharged into public water. Although the waste boron was 66.7t for the Group in the previous year, adoption of the boron recovery system resulted in a total of 24.38t this year. Next year, the number will fall to 8 - 9t.

Environmental Report 2003 20

Report on the Protection of Soil and Ground WaterIn July 1998, the Electronic Industries Association of Japan

(current: JEITA) and the Japan Electrical Manufacturers’

Association (JEMA) asked Nichicon to investigate and report on

the state of ground water pollution from organochlorine

compounds. We conducted investigations into the use of these

compounds in all factories and found one factory had been

the source of ground water pollution. We reported this fact to

the local authorities in September 1998. Then, in March 1999,

following guidance from the local authority concerned, we began

purifying the ground water, with the goal of recovering the normal

state as early as possible.

Emergency DrillsNichicon (Fukui) Corporation

In February 2003, Nichicon (Fukui) Corporation did an emergency drill for an accident involving leakage from the discharge flange of a caustic soda tank.We set up the simulated accident site and notified the necessary support agencies, treated the site by exchanging the packing and dilution inside the waterproof bank according to indications of repair for leakage, and confirmed that caustic soda was flowing to regenerate the waste tank correctly.

Our Approach

Our Approach

Collected boric acid

Tomita Factory

Production Engineering Department,

Masaru Hosono

Dilution

Exchange of packingCaustic soda tank

Discharge flange

Boric acid recovery system

In order to provide products with higher quality and performance, the Nichicon Group not only carries out thorough quality control, but also uniquely establishes a production management system for “no defects” to specifically ascertain when, where, and what products were manufactured under what conditions. Nichicon tackled worldwide quality certifications early. In September 1991, the Ohno factory obtained ISO 9002

certification, which was a first in the industry, and in November 1995, the Nagano factory obtained QS-9000 certification instituted by the Big Three automobile manufacturers in the U.S, which was a first in Japan. Other production sites also actively challenged for certification, resulting in all of the domestic and foreign factories obtaining the ISO 9000 series certification. Six factories obtained and are currently operating under QS-9000 certification.

Quality Policy

Nichicon established a system for responding to complaints. Under the system, we understand the information correctly; respond to customers with quick, fair, and proper treatment;

feed the information back to the manufacturing process; and prevent a recurrence.

Response to Quality Complaints

Social Responsibility

To exercise responsibility as a manufacture

21 Environmental Report 2003

Response to the Claims System

Customer

Transmit the claim

Answer the claim

RetailerDistributor

Sales Office

Headquarters Quality Assurance Department

(Sales Headquarters)

Communication sheetfor complaints

Communication sheetfor complaints

Communication sheet for complaints

Answer sheet for complaints (report of action and treatment)

Answer sheet for complaints

Executive officers in the factory

CountermeasuresMeeting for

actions

Communication sheet for actions

Audit of action and actual status

Report of action and actual status

Quality Control Dept. as a bureau

Technology Dept.

Related Depts.

Investigation into causes through each process

ManufacturingDept.

Factory· Business Administration Dept.· Quality Control Dept.

Certified Factories

OHNO FACTORY

NICHICON (WAKASA) CORPORATION

NICHICON (DENDO) CORPORATION

NAGANO FACTORY

NICHICON (IWATE) CORPORATION

NICHICON (ASAHI) CORPORATION

POWER SUPPLY DIVISION

NICHICON TANTALUM CORPORATION

SUWA FACTORY

NICHICON (KAMEOKA) CORPORATION

KUSATSU FACTORY

NICHICON(MALAYSIA)SDN.BHD.

HOTAKA FACTORY

OHMACHI FACTORY

TOMITA FACTORY

NICHICON (FUKUI) CORPORATION

NICHICON ELECTRONICS(WUXI) CO., LTD. 　

List of Nichicon Group Factories That Received ISO 9000 Series Certification

Date of Registration

Examination and Registration Body

Registered Certification No.

Sep. 1991

Jun. 1992

Sep. 1992

Dec. 1992

Mar. 1993

Apr. 1993

Jun. 1993

Jul. 1993

Aug. 1993

Oct. 1993

Nov. 1993

Dec. 1993

Sep. 2000

Sep. 2000

Nov. 2000

Aug. 2002

Jun. 2003

Nov. 1995

Dec. 1996

Oct. 1997

Oct. 1997

Dec.1997

Jul.1999

JMI-0007

JMI-0029

JMI-0051

JMI-0089

JMI-0153

JMI-0164

JMI-0229

JMI-0248

JMI-0263

JQA-0297

JQA-0315

AR0253

JQA-QM-5330

JQA-QM-5330

JQA-QM-5481

JQA-QM-8641

15/03Q0572R00

JMI-0089

JMI-0007

JMI-0153

JMI-0164

JMI-0248

AR1738

JMI

JMI

JMI

JMI

JMI

JMI

JMI

JMI

JMI

JQA

JQA

SIRIM

JQA

JQA

JQA

JQA

WIT

JQA

JQA

JQA

JQA

JQA

SIRIM

POWER SUPPLY DIVISION

NICHICON (WAKASA) CORPORATION

NICHICON (DENDO) CORPORATION

NAGANO FACTORY

OHNO FACTORY

NICHICON (IWATE) CORPORATION

NICHICON (ASAHI) CORPORATION

KUSATSU FACTORY

SUWA FACTORY

Aug. 1993

Aug. 1993

Nov. 1993

JMI-0002G

JMI-0003G

JQA0004G

JMI

JMI

JQA

NAGANO FACTORY

OHNO FACTORY

NICHICON (IWATE) CORPORATION

NICHICON (ASAHI) CORPORATION

NICHICON TANTALUM CORPORATION

NICHICON(MALAYSIA)SDN. BHD.

List of Factories That Received QS-9000 Certification

Group Certification

Certified Factories Date of Registration

Examination and Registration Body

Registered Certification No.

Certified Factories Date of Registration

Examination and Registration Body

Registered Certification No.

Quality Assurance Department

The Nichicon Group declares the product safety policy as “based on earth-friendly, human-friendly, and product-friendly production with safety first.” Each department of

technology, sales, and management established the following policies in order to exercise their responsibility as a manufacturer.

Product Safety Policy

Environmental Report 2003 22

Procurement and Production Departments

ProcurementPurchase proper materials and parts for products to ensure safety.

Understand that defective parts will not generate safe products even if the design is good.

Clearly convey the requirements on parts and materials to suppliers.

Close a deal about quality and safety with suppliers to enhance awareness of product safety management.

AcceptanceExecute the acceptance inspection according to the procedure manual.

Immediately provide feedback if there are defective parts or materials.

Fill out every product safety item on the check sheet.

In a particular case, clear the procedure and judgment standard.

In inspection of important safety parts, make sure that the test is advisable.

As for parts and materials, understand how they are applied and used in the final products.

ProductionReport all problems or questions during the process or testing.

Fill out check items regarding product safety in the QC procedural flowchart and work operations standard form.

Be sure to evaluate measuring instruments and overhaul tools and equipment for production.

DeliveryNever fail to fill out product safety items for the final product in the checklist.

Be sure to distinguish disqualified products to prevent them from being mixed with products passing inspection.

Confirm that there is no burrs or sharp edges that may injure someone.

Technology Department: Research, Development, and Design

In order to clarify and eliminate all risks and imperfections assuming every possibility of unexpected use by the customer and every process from production to waste: a. Design to ensure safety in case of failure.b. Design to ensure safety in case of misuse.c. Design to prevent misrepresentations.

In order to make customers aware of the functions of products for safe use, publish an instruction manual that is:a. Easy to understand.b. Clear with the effects on products and customers if warnings and notes are ignored.

Comprehend laws, standards, and specifications about safety not only in Japan but also overseas and reflect them in the design.

Select important safety components with high safety and reliability.

Evaluate the safety of prototypes and trial products for commercial production.

Investigate the safety of products from competitors for future reference.

Reflect complaints and demands from customers in the design.

7

6

Sales Department

Acquire correct knowledge about products and provide information for customers.

Avoid expressions in advertisement providing a sense of security greater than necessary.

In case there are problems with product safety, report it and move quickly.

Understand customer issues and acquire knowledge of PL (product liability) to deal with customers.

Explain the correct usage for the safety of customers.

Conduct internal inspections of the product safety management system.

Analyze complaints from customers and provide feedback on the problems.

Administration Department

Check compliance with laws, regulations, and standards regarding PL.

Deal with product-liability cases and manage the related documentation and product-liability insurance.

For waste of products, investigate the effects on the environment and provide suggestions for improvement as appropriate.

Provide education about product safety.

1

2

3

4

5

6

1

2

3

4

1

2

3

1

2

3

1

2

3

4

51

2

3

4

1

2

3

4

5

1

2

Nichicon Group instituted the “Nichicon Group Codes of Conduct” on October 1, 2002 so that every employee, both nationally and internationally, recognizes their social responsibility and takes the appropriate action in every corporate activity in compliance with laws and social ethics. The Codes of Conduct are provided to all board members, directors, and employees.

Codes of Conduct Training for Employees

For new employees, who are not used to their workplaces, information is provided to better understand the company and their jobs. Introductory technical textbooks about the products and technology (Introduction & Advanced edition) are also provided. Training for new employees includes orientation, practical training, and OJT to gain the skills and knowledge necessary to accomplish their tasks within the company. In addition, each office and workplace has unique educational courses, including opportunities for studying foreign languages and 236 correspondence courses to improve abilities through independent study.

Well-established Company Benefits

Reward System

Social Responsibility

Recognition of Social Responsibility Workplace and Job Satisfaction

23 Environmental Report 2003

The Nichicon Group enhances company benefit programs so that employees may work comfortably. Dormitories are available for single employees who cannot commute to the office from their home, and there are recreation facilities nationwide. A Shareholding system and a savings asset building system are also provided.

Nichicon Group has had an award system since 1965. The President’s Award and the Office/Factory Executive’s Award are presented each year to employees who have made outstanding achievements within the company. In 2002, 62 employees were honored.

Nichicon Group Codes of Conduct (extracted)

Ⅰ．General ProvisionsBasic Stance

Responsibility to Comply with This Code of Conduct

Ⅱ．Relations with Customers, Suppliers, Other Business Associates and Competitors

Provision of Products and Services

Commitment to Fair, Transparent Corporate Activities

Policies Regarding Dealing with Suppliers and Cooperating Parties

Policies Regarding Dealing with Distributors and Other Business Interests

Policies Regarding Entertainment and Gifts

Adherence to Rules and Regulations Regarding Import and Export

Policies Regarding Publicity and Advertising

Ⅲ．Relations with Shareholders and InvestorsTransmission of Corporate Information

Prohibition of Insider Trading

Ⅳ．Management of Company Assets and InformationConflict of Interest and Distinction between Business and Personal Affaires

Handling of Confidential Information

Protection of Intellectual Property Rights

Ⅴ．Relations with SocietyEnvironmental Protection

Contributions

Political Funds

Prohibition of Involvement in Antisocial Actions

Textbook about technology

Training in foreign languages

Nichicon Group Codes of Conduct (Japanese/English)

1

2

1

2

1

2

3

1

2

3

1

2

3

4

4

5

6

7

2.5

2.0

1.5

1.0

0.5

0

Frequency Rate (The number of accidents causing an inability to work per 1 million working hours)（％）

1999 2000 2001 2002

Our Approach

In each factory, Nichicon pursues activities for occupational safety and health to prevent accidents and realize comfortable working conditions.

Tomita Factory Management Dept.

Manager Kyoji Yamamoto

Environmental Report 2003 24

For occupational accident prevention, the Nichicon Group not only meets the minimum standards established by the Industrial Safety and Health Law, but also aims for a “comfortable work environment” with the keywords “safety” and “comfortableness” to positively achieve ideal working conditions.

Occupational Safety and Health

Safe and Better Working Environment

In each factory of the Nichicon Group, education for safety and health is provided to improve employees’ understanding of the issues. In education for new employees, especially, safety procedures for each job are disseminated with the slogan “Safety First.” Lectures by an industrial physician regarding mental health, which has attracted attention recently, have also been held.

Education for Safety and Health

Within the Nichicon (Kameoka) Corporation, several members participate in normal lifesaving training to learn such skills every year.

Normal Lifesaving Training

Activities for safety and health in factories

● SC (Safety Check) patrol● Check by patrolwoman● Cross-check between factories● Check for use of seat belts by car commuters● Working environment measurement

Frequency Rate: The number of accidents causing an inability to work per 1 million working hoursSeverity Rate: Work-days lost per 1,000 working hours

200120001999 2002

Occupational Accident Occurrence

　　　　Total

　　　　Deaths

　　　　Unable 　　　　to Work

Frequency Rate

Severity Rate

23

0

4

0.551

0.014

23

0

5

0.648

0.016

16

0

4

0.565

0.038

12

0

1

0.141

0.006

Number

Nichicon All industries Manufacturing industry

0.25

0.20

0.15

0.10

0.50

0

Severity Rate (Work-days lost per 1,000 working hours)

1999 2000 2001 2002

1.790

0.970

0.565

1.020

0.648

1.020

0.551

1.8201.800 1.770

0.980

0.141

0.100

0.038

0.130

0.016

0.180

0.014

0.140

0.1200.120 0.120

0.006

0.120

（％）

In order to maintain “No Accidents”Tomita Factory

Tomita Factory, which manufactures electrode foils for aluminum electrolytic capacitors, was established in July 1999. We have had no accidents since operations began. In addition to following the work manuals, employees alert each other to safety issues in the morning meetings or monthly safety and health committees. We announce every concern and implement every conceivable action regarding safety issues no matter how trivial. We will remain alert to security and safety in order to maintain our record of no accidents.

(Persons)

Nichicon All industries Manufacturing industry

Nichicon began to publish the Environmental Report in September 2001. We published the third volume this year. In 2002, 2,000 copies in Japanese and 1,000 in English were published to introduce our activities. We also announced our approach to the environment with the Environmental Report on the web.

The Nichicon Group has been actively involved in a number of volunteer activities; many factory members contribute to their local communities.

Publication of Environmental Report and Its Release on the Web

Contribution to the Community and Green Activities

The Nichicon Group presented for environmental action in technical fields at the TECHNO-FRONTIER, an exhibition for switching power supplies; Japan Electrical Construction Equipment and Materials Fair, an exhibition of electric equipment, materials, and tools; and CEATEC JAPAN, an international exhibition of electronics appliances and parts to introduce new products and technology.

Exhibition

Social Responsibility

Communications on the Environment and Social Contributions

http://www.nichicon.co.jp/eco/index.html CEATEC JAPAN 2002 (Makuhari Messe) TECHNO-FRONTIER 2003 Power Systems Fair (Makuhari Messe)

Head OfficeThe head office cleans the perimeter of the Karasuma-Oike area twice a week. In FY 2002, a total of 814 people participated in this activity.

Hotaka FactoryEmployees from the factory collect garbage and weed the roads around the factory twice a year as part of the cleanup activities of Hotaka Town.

Ohmachi FactoryFactory employees collect garbage and weed the roads around the factory twice a year as part of the cleanup activities of Ohmachi City.

Nagano FactoryEmployees from the factory participate in activities for “Day of Cleaning the Town” three times a year at Toyoshina Town.

Kusatsu FactoryEmployees participated in the cleanup activities for the “Day of Lake Biwa” and joined in the cleanup activities for “Garbage Zero Operation” around Minami-Kusatu station.

Nichicon Tantalum CorporationThe corporation concluded an agreement for voluntary cleanup for the “Freshwater Eco-Foster Program” with the Shiga Prefectural Government for cleaning and maintaining public places. From October 2002, employees began to clean and plant trees on the roads around the factory.

Nichicon (Wakasa) CorporationThe corporation contributed to the local community by collecting garbage and empty cans around the factory as a cleanup (Garbage Zero) operation on May 29, 2002.

25 Environmental Report 2003

Nichicon (Kameoka) CorporationIn all seasons, employees joined in the replanting of the green promenade in front of the factory, a flowerbed maintained by the administration, corporations, and regional residents. As company events, employees also participated in the cleanup activities from the factory to the Hozu River and cleaned after the fireworks display in Kameoka City.

KUSATSU FACTORY★ 3-1, Yagura 2-chome, Kusatsu-shi, Shiga Pref., 525-0053, JapanTelephone. 81-77-563-1181 Facsimile. 81-77-563-1208Product line: Capacitors for electric apparatus and power utilities, Capacitor-applied system and equipment ISO 9001 certified

NAGANO FACTORY★ 4085 Toyoshina, Toyoshina-cho, Minamiazumi-gun, Nagano Pref., 399-8205, JapanTelephone. 81-263-72-2830 Facsimile. 81-263-72-7140Product line: Aluminum electrolytic capacitors (Large can type) and electric double layer capacitorsISO 9001 & QS-9000 certified

HOTAKA FACTORY★ 1284-2, Kitahodaka Hotaka-cho, Minamiazumi-gun, Nagano Pref., 399-8302, JapanTelephone. 81-263-82-2510 Facsimile. 81-263-82-7536Product line: Electrode foil for aluminum electrolytic capacitorsISO9001 certified

OHMACHI FACTORY★ Yashiro, Ohmachi, Nagano Pref., 398-0003, JapanTelephone. 81-261-21-3200 Facsimile. 81-261-21-3206Product line: Electrode foils for aluminum electrolytic capacitorsISO 9001 certified

OHNO FACTORY★ 1-11-2 Shimoyoro, Ono-shi, Fukui Pref., 912-0095, JapanTelephone. 81-779-66-0333 Facsimile. 81-779-66-0312Product line: Aluminum electrolytic capacitors (Miniature-sized type) ISO 9001 & QS-9000 certified

TOMITA FACTORY★ Nichicon Technology Center, 4 Tsuchifugo, Ohno-shi, Fukui Pref., 912-0805, JapanTelephone. 81-779-65-8000 Facsimile. 81-779-65-8911Product line: Electrode foils for aluminum electrolytic capacitors ISO 9001 certified

SUWA FACTORY★ 1372 Konan, Suwa-shi, Nagano Pref., 392-0131, JapanTelephone. 81-266-52-1816 Facsimile. 81-266-52-3369Product line: Plastic film capacitors ISO 9001 certified

NICHICON CORPORATION Domestic Consolidated Subsidiaries

NICHICON (KAMEOKA) CORPORATION★ 15-1, 2-chome, Kitakose-cho, Kameoka-shi, Kyoto Pref., 621-0811, JapanTelephone. 81-771-22-5541 Facsimile. 81-771-29-2010Capital Stock: 80 million yenProduct line: Hybrid ICs, Circuit modules, Positive thermistors “Posi-R”ISO 9001 certified

NICHICON TANTALUM CORPORATION★ 690-2, Miosato, Adogawa-cho, Takashima-gun, Shiga Pref., 520-1215, JapanTelephone. 81-740-32-1250 Facsimile. 81-740-32-1504Capital Stock: 316 million yenProduct line: Tantalum electrolytic capacitors ISO 9001 & QS-9000 certified

NICHICON (ASAHI) CORPORATION★ 120 Hirasawa, Matoba, Shiwa-cho, Shiwa-gun, Iwate Pref., 028-3308, JapanTelephone. 81-19-676-4511 Facsimile. 81-19-676-6710Capital Stock: 100 million yenProduct line: Aluminum electrolytic capacitors (Miniature-sized type) ISO 9001 & QS-9000 certified

NICHICON (IWATE) CORPORATION★ 8-17-1, Kubo, Iwate-cho Iwate-gun, Iwate Pref., 028-4305, JapanTelephone. 81-195-62-5311 Facsimile. 81-195-62-3400Capital Stock: 100 million yenProduct line: Aluminum electrolytic capacitors (Chip type)ISO 9001 & QS-9000 certified

NICHICON (WAKASA) CORPORATION★ 35-1-1 Tada, Obama-shi, Fukui Pref., 917-0026, JapanTelephone. 81-770-56-2111 Facsimile. 81-770-56-2116Capital Stock: 84 million yenProduct line: Switching power supplies,Tantalum electrolytic capacitorsISO 9001 certified

NICHICON (DENDO) CORPORATION★ 2-27, Dendo, Nishine-cho Iwate-gun, Iwate Pref., 028-7112, JapanTelephone. 81-195-76-2424 Facsimile. 81-195-76-5252Capital Stock: 50 million yenProduct line: Switching power supplies ISO 9001 certified

NICHICON (FUKUI) CORPORATION★ Nichicon Technology Center, 4 Tsuchifugo, Ohno-shi, Fukui Pref., 912-0805, JapanTelephone. 81-779-65-8800 Facsimile. 81-779-65-8801Capital Stock: 100 million yenProduct line: Aluminum electrolytic capacitors, Tantalum electrolytic capacitorsISO 9001 certified

NICHICON(MALAYSIA) SDN. BHD.No.4 Jalan P/10, Kawasan Perusahaan Bangi, 43650 Bandar Baru Bangi, Selangor Darul Ehsan, MalaysiaTelephone. 60-3-89250678 Facsimile. 60-3-89250858Capital Stock: 63 million M$Business line: Production & sales of aluminium electrolytic capacitors (Miniature-sized and large can type)ISO9002 & QS-9000 certified

Overseas Consolidated Subsidiary

★ included in the scope of this report

List of Nichicon Group Factor ies That Received ISO 14001 Cer t i f icat ion

Environmental Report 2003 26

(As of 21 September, 2003)

KAMEOKA FACTORY was spun off into a separate company as NICHICON (KAMEOKA) CORPORATION on April 1, 2003.

ASAHI ELECTRIC INDUSTRIES CO., LTD. changed its trade name to NICHICON (ASAHI) CORPORATION on April 1, 2003.

WAKASA ELECTRIC CORPORATION changed its trade name to NICHICON (WAKASA) CORPORATION on April 1, 2003.

DENDO CORPORATION changed its trade name to NICHICON (DENDO) CORPORATION on April 1, 2003.

This catalog is printed with environmentally friendly soy ink.

Printed on 100% recycled paper.

Uehara Bldg., Oikedori, Karasumahigashi-iruNakagyo-ku, Kyoto, 604-0844, Japan.Telephone. 81-75-231-8461 Facsimile. 81-75-256-4158

URL: http://www.nichicon.co.jp/

If you have any questions regarding this document, please contact:Environmental Management Dept., General Administration Division.Telephone. 81-75-241-5319 Facsimile. 81-75-256-4158eco@nichicon.co.jp

Issued: September 2003Next issue schedule: August 2004Past issue: September 2001, October 2002

NICHICON CORPORATION

“Companions in the Sea”The “Companions in the Sea” is the artwork displayed on the wall next to the Karasuma central wicket on the concourse of the JR Kyoto Station Building.

Message from the Artist:Likening the art space to a huge water tank, I depicted a variety of sea life to create the same joyous feelings we have when viewing an aquarium or looking at a picture book. The sunlight shimmering in the water is comforting to the mind, and also gives the impression that Nichicon is a company friendly to both humankind and the earth. Sea life is very colorful and takes unique, diversified forms. I think everyone - irrespective of age or sex - will enjoy our companions in the sea.

Mr. Hifumi Furuoka Artist of “Companions in the Sea”