Komori GroupEnvironmental and Social Responsibility

Report 2011

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Delivering Kando (Customer Satisfaction) by Driving Social SustainabilityKomori Corporation aims to create Kando for customers by exceeding their expectations while helping to materialize social sustainability by harmonizing people and the environment.

Editorial PolicyIn 2007, we expanded on our Environmental Report to begin publishing the Environmental and Social Responsibility Report. This edition covers CSR management and our social responsibility and environmental reports. This publication also presents some of the activities of Group companies shown on the left.

Scope of Report Headquarters, Tsukuba Plant, Technical Service Group, offices, branches, sales offices, and service centers, Komori Machinery Co., Ltd., and Komori Electronics Co., Ltd.

Report PeriodApril 1, 2010, to March 31, 2011Notes: • Komori produced this repor t in keeping with

the Environmental Reporting Guidelines of Japan’s Ministry of the Environment, the sustainability guidelines of the Global Reporting Initiative, and other recommendations.

• You can obtain a PDF of this report at the following Komori website: http://www.komori.com

Company name : Komori CorporationHeadquarters:11-1 Azumabashi 3-chome, Sumida-ku, Tokyo 130-8666, JapanTel : +81-3-5608-7811Date established : October 20, 1923Chairman, President and CEO : Yoshiharu KomoriCapitalization : ¥37,715 millionNumber of employees (as of March 31,2011, on consolidated basis) : 2,138Main products : Commercial offset presses (offset sheetfed presses and 　　　　　　offset web presses), currency and securities printing presses, 　　　　　　　 web offset packaging presses, and printing equipment

【Profile and Financial Benchmarks】

■ Key Domestic Operations● Komori Corporation offices and plants : Headquarters, Techno Service Center, West-Japan Service, Sagami Service, Saitama Techno Center, Kyoto Techno Station, Parts Service Center, Osaka Regional Headquarters, Nagoya Branch Office, Shizuoka Representative Office, Kyushu Branch Office, Hokkaido Branch Office, Tohoku Branch Office, Niigata Representative Office, Hokuriku Branch Office, Chugoku Branch Office, Shikoku Branch Office, Tsukuba Plant, Komori Graphic Technology Center● Subsidiaries : Komori Machinery Co., Ltd, Komori Electronics Co., Ltd, and Komori Engineering Co., Ltd.

■ Key Overseas Operations● North America　Komori America Corporation and Komori Leasing Incorporated● Europe　Komori International (Europe) B.V., Komori International Netherlands B.V., Czech Branch of Komori International Netherlands, Komori U.K. Limited, Komori Currency Technology, Komori France S.A., Komori Belgium Branch Office of Komori France, Komori Italia S.r.l., and Komori-Chambon S.A.S.● Asia　Komori Hong Kong Limited, Komori Printing Machine (Shenzhen) Co., Ltd., Shanghai Branch of Komori Printing Machine (Shenzhen), Komori Taiwan Limited, and Komori Asia Technical Service Center Sdn. Bhd.● Oceania Komori Australia Pty. Ltd.

Strengthening Revenues and Earnings byPromoting Offset Printing Press BusinessWe are building new business areas to expand and diversify so we can swiftly return to growth.

We would like to extend our deepest sympathies to all who suffered from the Great East Japan Earthquake, and pray for a swift recovery from the destruction.

Komori established its Disaster Response Headquarters right after the quake to assess the impacts on customers and push ahead with restoration work. We evaluated the overall situation within around a week of the disaster. After completing restoration work for customers mainly in the Kanto area, by March 31 we had finished these tasks for customers in the Tohoku region, where access was difficult.

We will continue doing our utmost to restore customer facilities and otherwise provide recovery assistance.

Both orders and revenues began to bottom out slightly in the previous fiscal year, but the earnings climate remained very adverse. This situation was due largely to delayed recoveries in the Japanese, America, and European markets. Although these advanced economies generally headed toward turnarounds, printing press demand was weak and capital demand was lackluster. Sales rose solidly in China, India, Latin America, and in other emerging economies, but this was not enough to compensate for slow revenues in developed countries. Compounding this situation, the yen surged in response to Greece’s financial crisis from May 2010, constraining earnings.

On the positive side, we completed several competitive new products and technologies that were the fruit of three years of future-oriented development.

A good example is the Komori H-UV system, which instantly cures inks. This system has been well received since its launch in October 2009, with presses incorporating it accounting for around 60% of our domestic unit sales. We will drive sales by pushing ahead with our offset on demand concept, through which our offerings incorporate the H-UV system and automation and energy-saving technologies.

In February 2011, we commercialized the Lithrone G40 series as a successor to our mainline Lithrone S40 lineup. The G40 series offers more advanced features and value while reducing the number of parts and manufacturing processes to enhance cost competitiveness. The new series also contributes greatly to cutting carbon dioxide emissions from customers’ production processes and usage stages.

We also developed the CURRENCY IC-532III intaglio printing press for banknotes and securities certificates, attracting numerous inquiries overseas. In February 2011, we received our first order for this new printing press, from the Central Bank of the Philippines.

We believe that it will be extraordinarily difficult to fulfill our Third Medium-Term Management Plan target of more than ¥120 billion in net sales by fiscal 2013. Key factors are delays in demand recoveries, particularly in developed nations, and the high yen. Nonetheless, all employees are resolutely pushing implementing plan policies in light of the current situation. We will concentrate on existing businesses to boost revenues and profitability while building new businesses to expand and diversify, accelerating efforts to transform ourselves in response to changes in the printing industry structure.

Since our establishment in 1923, we have built our business on offset printing presses, leveraging our accumulated technologies and expertise to sell our offerings while deploying proposal-based marketing to help resolve customer issues. Our marketing and services operations, the Tsukuba Plant, and the Komori Graphic Technology Center are collaborating in the drive to enhance customer productivity. We are thereby building beneficial partnerships so we can become a trusted Print Engineering Service Provider.

環境適合設計■LITHRONE G40 グリーンコンセプト

地球に優しい人に優しいECOプリント

地球温暖化対策

化学物質対策

環境対策によるランニングコスト

の低減作業環境の向上

生物多様性保全

Komori’s Core Competencies

Third Medium-Term Management Plan

Printing technologies

Precision machinery manufacturing technologies

Customer Kando initiatives

◎PRINT ENGINEERING SERVICE PROVIDER＝PESP

◎New businessesExpand and diversify businesses

Radical management reforms to optimize core competencies

To Our Stakeholders

Chairman, President & CEO

32

■ Sales by Product Category

■ Sales by Geographic Category

Sheetfed offset presses¥46.5 billion

Total¥72.2 billion

Used systems and parts repairs¥15.1 billion

Offset web presses and securities printing presses¥10.6 billion

Japan¥23.1billion

North America¥7.4billion

Europe¥17.6billion

China¥16.7billion

Other regions¥7.4billion

Total¥72.2billion

0

-5002011/32007/3 2008/3 2009/3

500

1,000

1,500

722

1,419 1,548

1,114

687

-40 -49 -62

150 168 92 183 155 87 34 1

-71 -71 -72 -105

2,000

2010/3

（Billions of yen） Net sales Operating income Ordinary income Net income

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Exhibiting in Keeping with Themes of Ecology, High Efficiency, and Digitization at Print China 2011 Booth

Visitor Numbers to Tsukuba Plant Top 10,000

Komori exhibited in keeping with the show themes of ecology, high efficiency, and digitization at Print China 2011, the second China International Printing Technology Exhibition. The event was at the Guangdong Modern International Exhibition Center in Dongguan Municipa-lity, Guangdong Province, from April 9 to 13, 2011.

The quadrennial show reflected the brisk growth of the Chinese economy, with a total floor space of 120,000 square meters, against 80,000 square meters on the previous occasion. There were 1,261 exhibitors, up from 1,047 in 2007, from 18 countries. The event attracted 160,000 visitors, up from 100,000 four years earlier.

The 800-square-meter Komori booth used the Kando : Beyond Expectations corporate slogan, and focused on the theme of Innovation for a Better Future. Our booth attracted numerous visitors every day with the Lithrone G40, which appeared for first time in China, and the Enthrone 29.

The cumulative number of visitors to the Tsukuba Plant in Ibaraki Prefecture reached 10,000 just four years and seven months after we completed the second stage of construction on December 5, 2005.

The 10,000th person was among a party of four major Brazilian printing companies - Prol, Santa Marta, Tarfc, and Universal - visiting with Brazilian distributor Gutenberg. We held a small commemoration ceremony for the occasion. The visitors were sur-prised when Komori executives and employees began applauding upon arrival at the plant and were thrilled to learn of the milestone. Yoshiharu Komori, our president, chairman and CEO presented the guests with flowers and mementos and arranged for a commemorative photograph.

The plant will continue to spare no effort in developing products that fully satisfy customers, and looks forward to greeting more visitors.

A Day of Education and Entertainment from Komori America　 Komori America Corporation held an open day on October 2, 2010, for nearly 300 guests and print vendor partners from around the United States.

The event highlighted our new H-UV curing system and other technologies that support efficiency and reduce waste, underscoring our commitment to sustainability.

As well as obtaining useful information, participants enjoyed a live performance by Japanese drummers and a dinner to deepen relationships, rounding out a significant and satisfying day.

Print China 2011 opening ceremony

Komori booth

Welcoming guests at the Tsukuba Plant

Handing out bouquets of flowers and commemorative gifts

CSR Highlights

Heightening Our Global Market Presence

≫Carbon dioxide Emissions

Environmental Performance in Fiscal 2010As a printing press manufacturer, Komori focuses on initiatives to conserve energy, cut and recycle waste, and properly manage hazardous substances. We help conserve resources by reducing the amount of paper used in test print runs and engage in green procurement. See out website for more details on our efforts.

Carbon Dioxide EmissionsWe have steadily lowered carbon dioxide

emissions from the benchmark level of fiscal 2005. Emissions were down 22.5% in fiscal 2006, 35.4% in fiscal 2007, and 3.9% in fiscal 2008. The main factors in fiscal 2009 reductions were production adjustments following the Lehman Shock, leading to a dramatic decrease in energy consumption, although emissions intensity soared 61.4%.

Energy consumption increased in fiscal 2010 in line with revised production, with carbon dioxide emissions returning to average levels. At the same time, carbon dioxide emissions intensity trended downward.

The greatest growth in carbon dioxide emissions from higher production were at the Tsukuba Plant, which uses city gas to fuel water cooling and heating systems for its air conditioning. That said, this facility integrated with the Sekiyado Plant in fiscal 2010, and this factor and savings from the water heating and cooling systems should contribute to considerable conser-vation. Note that through fiscal 2009 we reported emissions intensity as a percent-age of net sales. From this report, we disclose intensity in terms of production units.

a preparatory committee in February 2011 and holding its first briefing to business partners on the issues in March. In June, we visited business partners to discuss their progress. We plan to clarify our administrative structure and start full-fledged activities, as part of which we will adopt a chemicals substance management system.

Comparative Energy and Resource Inputs in Japan and AbroadThe pie chart on the right compares the

electricity and water consumption of our domestic facilities and overseas subsidiaries in fiscal 2010. We began assessing the energy and resource inputs of foreign subsidiaries around three years ago, so we are presenting domestic and overseas comparisons for the first time in this year’s report. The trends for electricity and water consumption are almost iden-

tical.Domestic facilities

account for roughly 90% of the Komori Group total. The bal-ance is several percent each at European and American subsidiaries, with Asia representing less than 1%.

Initiatives under REACHREACH (the European Community’s reg-

ulation on the Registration, Evaluation, Authorization and Restriction of Chemi-cals) is being implemented in stages to require notification and reporting on all products commercialized in the European Union that contain chemical substances.

The European Union applies REACH to a broad range of products, including automobiles,　electronic and electrical equipment, manufacturing facilities, toys, apparel, parts, packaging materials, and consumables. REACH covers the regi-stration of 30,000 substances and analyzes and evaluates substances of very high concern.

At the end of fiscal 2010, Komori’s CSR Committee recognized the need to oversee REACH requirements, setting up

20,000t-CO2 t-CO2/unit

18,000

16,000

14,000

12,000

10,000

8,000

6,000

4,000

2,000

020062005 2007 2008 2009 2010

10.00

Komori Group Overall Emissions Intensity

8.00

6.00

4.00

2.00

0.00

Kerosene Spill at Komori Machinery

On January 23, 2011, a snowfall ruptured the piping joint of a kero-sene tank at the main plant of Ko-mori Machinery Co., Ltd., located Yamagata Prefecture. The kerosene fuels inspection stoves. The rupture led to a leak of an estimated 114 li-ters of kerosene. We jointly checked the outflow situation with the Min-istry of Land, Infrastructure and Transport, Yamagata Prefecture’s Environment Section, and the Local Fire Department. We cleaned up and neutralized the spill and explained and apologized for the accident to the Prefectural and town govern-ments and local residents. We then submitted a report to the Governor of Yamagata Prefecture, completing the accident follow-up process.

Electricity Consumption in Fiscal 2010

Domestic total91％

North America2％

Europe7％ Asia

0％Asia0％

Waterconsumptionin Fiscal 2010

Domestic total93％

North America2％

Europe5％

Environmental Report

54

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The concept championed by Komori.At Komori, ‘green’ symbolizes the coexistence of

the environment, people and nature. A mutually ben-eficial balance among these three elements ensures a bright future — this is the thinking behind Komori’s green concept. This concept was the genesis of the Lithrone G40’s development — a high-performance machine created with consideration for the environ-ment and ecology.

The ‘G’ of the Lithrone G40 stands for green — the ‘Green Lithrone.’

The Three Pillars of the Green ConceptThe green concept has three pillars: clean (preven-

tion of pollution), saving (conservation of resources) and safety. By implementing these three pillars, Ko-mori has shaped the printing press of the future.

Indeed, Komori has developed a printing press that reduces paper waste, saves energy, improves the work environment and reduces noise.

The Lithrone G40 is a green machine that protects the environment and is clearly worthy of being called the ‘Green Lithrone.’

A S

pecial Feature Article 2

● The Lithrone G40—a revolutionary offset on demand printing press

The Lithrone G40 was developed as a green printing press that is environmentally friendly.

Ninety-five percent of the environmental impact of a press takes place during the usage stage. During this

●New Environmentally Friendly Printing Presses from JapanH-UV Curing

In February 2011, Komori received an order for currency printing facilities from the Central Bank of the Philippines. The roughly ¥3.4 billion package was for a line comprising one offset printing press, two intaglio printing presses, one number printing press, and one finisher.

Since delivering our first currency printing press to the Printing Bureau of Japan’s Ministry of Finance (now the National Printing Bureau) in 1958 , we have supplied more than 190 of these presses in Japan and have exported special printing equipment to more than 12 nations. The Philippines was the forth overseas recipient of a large Komori line after Japan, India, and Nigeria.

Sixty nations print their own currencies, and Komori looks for the market for its systems to expand in the years

● Special Printing Press Business Receives Currency Printing Press Order from the Philippines

ahead. We have three priority policies over the medium term. The first is to identify customer needs and supply timely solutions. The second is to harness proprietary technologies to break into closed markets by building a solid reputation for providing better alternatives. The third is to increase our delivery track record to increase awa rene s s of ou r brand in securities printing so we can of fer ou r s p e c ia l printing technologies t o eve r y c ou n t r y around the world.

critical stage, Komori presses achieve a minimal im-pact by saving energy and resources through shorter makeready time and minimal paper waste, by reducing harmful chemical substances such as volatile organic compounds (VOCs) released during printing and by re-ducing noise. The Lithrone G40 is an environmentally responsible press that is friendly to both the produc-tion environment and the global environment.

◆Energy-Saving and Low Running CostsP o w e r c o n s u m p t i o n a n d c a r b o n d i o x i d e emissions from H-UV are about one-quarter those of conventional UV curing systems.

◆Budget-Friendly Initial Costs and Compact Installation Space

Not needing extended deliveries, compact, and not requiring exhaust ductsCarbon dioxide emissions 75% lower

◆ Environmentally friendlyOzone-free, minimal heat waste, and no powder scattering

Environmentally friendly design

Clean

SafetySaving

Preservation of natural diversity

Reduction of running cost by environmental countermeasures

Improvements in the working environment

Countermeasures for chemical substances

Countermeasures for

global warming

Press preventive maintenance

Ergonomic press design

Enhanced self diagnostic functions

For pressroom workers

Reduced paper and ink consumptionFor printing waste

Reduced power consumption (reduced CO2 emissions)For energy

Low VOC emissionsFor the plant environment

Reduced use of consumables and lubricantsFor the printing process

Safety

Saving: Resource conservation

Clean: Preventing pollution

Times are tough for Japan’s printing industry. Com-panies must ensure fast turnarounds and face strong demand for imported and recycled paper, which is hard to cure properly. Another issue is that these compa-nies are encountering more problems because of defec-tive oil-based inks. Printing companies therefore want to balance fast curing and printing uptimes. Our H-UV technology resolves these challenges. This technology ensures color results close to those of oil-based ink printing presses and ensures fast curing and the use of special stock, enabling printing companies to take orders for jobs posing curing difficulties without facing risks.

H-UV is a curing system that uses a proprietary

ozoneless UV lamp and high-sensitivity UV ink. As well as conserving energy, this setup reduces stock space and is free of powder granule scattering, so it is environmentally friendly. Our H-UV system for web offset presses eliminates creasing from heat, enhancing binding quality. Other key advantages are the elimina-tion of volatile organic chemicals and a roughly 4 0 % reduction in carbon dioxide emissions. Using the H-UV setup with our KHS-AI system makes it possible to run lots as small as 100 copies.

In February 2011, Komori earned recognition for its innovative H-UV system when it received a technology award from the Japanese Society of Printing Science and Technology.

Special Feature

Leading-Edge Technologies and ServicesDemand is growing constantly for printing systems that help safeguard the environment, increase productivity, and reduce human errors. Komori is harnessing its state-of-the-art technological development capabilities to supply advanced products that match these needs.

8.36㎡

Compact Installation Space

2.67㎡ (about 50% less)

Coolingsystem

Floor equipment

Printing press

Power source ■Conventional UV system

■H-UV system

※Calculation based on 6,000 jobs with run length of 5,000 sheets for six-color press.※Quantity of CO2 based on simulation by Komori.

t 50 100 150 200Quantity of electric powerconsumed in production printing

Quantity of electric powerconsumed in makeready

Quantity of printing paperconsumed in makeready

Conventional press

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We designed this publication to be recyclable, so please recycle when you no longer need it. The publication was printed using vegetable oil ink.

Publication date: September 2011Publisher: Makoto Kondo　Editor: Takeshi Yoshikawa

KANKYO E　 8P　 N01　 1　 2011.09　 01K 　TA　

Komori has conducted ongoing dosimeter readings of its equipment at all port warehouses since March 28, 2011. At the end of the first quarter of the fiscal year, we had taken readings for all except 90 export units excluded because of delivery deadlines. We found no abnormal radiation in any of the measurements.

1. Total 11 crates of 4 -color L ITHRONE S 4 0 for Ch ina were measured for radiation intensity at dock warehouse in Yokohama on March 28, 2011. Maximum measured value was 0.06 microSv/h (average was 0.04 microSv/h) and we believe it is no problem.

2 . Total 25 crates of 4 -color SYSTEM 38 web press for I nd i a we r e mea su r ed f o r radiation intensity at packing warehouse in Kawasak i on March 29, 2011.Maximum measured value was 0.09 microSv/h (average was 0.05 microSv/h) and we believe it is no problem.

3 . Total 11 crates of 4 -color L ITHRONE G4 0 for Ch ina were measured for radiation intensity at dock warehouse in Yokohama on March 28, 2011. Maximum measured value was 0.11 microSv/h (average was 0.05 microSv/h) and we believe it is no problem.

※Japan Marine Surveyors & Sworn Measurers' Association measured all above presses used following measurements.　１．POLIMASTER“PM1703” ２．Aloka“TCS-171”※Measured points are right side, left side, front side and back side of each crate. In case of web press, top side is measured.

ニュースNEWS

K o m o r i C o r p o r a t i o n 11-1 A z u m a b a s h i 3 - c h o m e , S u m i d a - k u ,T o k y o 1 3 0 - 8 6 6 6 , J a p a nh t t p : / / w w w . k o m o r i . c o m

Requests for materials and inquiries:11-1 Azumabashi 3-chome, Sumida-ku Tokyo 130-8666, JapanTel: +81-3-5608-7806　Fax: +81-3-3624-9519

Dosimeter Readings of Equipment Shipments

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