Since its founding, the Yamatake Group has been utilizing its core measurement and control technologies to contribute to solving the environmental issues of its customers and society. We are also responding to new social needs, such as those related to the falling birthrate and aging population. Looking ahead to Yamatake’s second century, we will promote activities to realize a sustainable society.

With the goal of being environmentally committed, the Yamatake Group promotes environmental preservation activities that focus on the two key issues of reducing its own environmental impact and helping to solve the environmental issues facing its customers and society.

    Yamatake has expanded its scope of ISO 14001 certification by acquiring certification for all of its operating sites, including sales offices. At the same, it completed the setup of a system for collecting company-wide environmental performance data. We also developed an environmental efficiency indicator and introduced it on a trial basis starting in fiscal 2006. This new indicator was introduced because from the standpoint of realizing a sustainable society, it is important to grasp and evaluate environmental performance not only in terms of total volume, but also in relation to sales, production volume and other factors.

In fiscal 2005 asbestos became a social issue in Japan. Yamatake worked to replace parts containing asbestos that had been used in control valves and other products. By March 2006 replacements were made for all affected products.

    Improving the environmental preservation activities of suppliers is essential in promoting green procurement, therefore we developed and launched the Yamatake Eco Program to support our supplier’s green procurement activities. Thirtysix suppliers participated in this program in fiscal 2005, and we plan to expand it further in fiscal 2006.

    In complying with the RoHS Directive, Yamatake continued to survey chemical substances contained in its products, convert to lead-free solders, and find substitutes for prohibited substances in fiscal 2005. Going forward, we will step up the building of a chemical substances management system to prevent adulteration or contamination by prohibited substances.

    Yamatake is actively instituting the use of natural energy to reduce its carbon dioxide emissions. In fiscal 2005 we introduced wind power generators, as well as purchased a certificate of green power by biomass electricity generation systems.

* Regulation restricting the use of prohibited chemical substances in all electrical and electronic instruments sold in the EU.

Jun Kawachi Executive Director Managing Executive Officer (Environmental Management Officer)

As a measurement and control manufacturer, Yamatake has been developing businesses that contribute to the environment, such as in conserving energy and resources. The company has been promoting its model factory for energy conservation, which features Yamatake products and technologies utilized for saving energy and resources and reducing waste in factories and plants. The energy conservation initiatives at Yamatake’s Fujisawa factory are showcased to the general public in a tour of a model factory for energy conservation. These tours, which completed its fourth year in 2005, have attracted over 4,200 participants to date.     In fiscal 2005 Yamatake received an “excellent environmental management award” at the Japan Environmental Management Award. We believe this was due to the high evaluation of our environmental preservation activities.     Going forward, we will further reduce our environmental impact through our business activities, and as an “environmentally-committed” company, contribute to realizing a sustainable society and raising the environmental awareness of all Yamatake employees.

As Yamatake marks its 100th year in operation, we are clarifying the extent and approach of our contribution to the global environment and society. Moreover, in order to achieve sustained growth in our second century, we will establish our thoughts and stance on CSR that is unique to Yamatake. In April 2006 we launched a CSR investigation task, and through workshops and other events, we began a study on what initiatives should be taken by the Yamatake Group, based on our prediction of global environmental conditions that will govern people’s lives.

    In our second century, we will go beyond our traditional business of realizing energy and resource conservation in buildings, factories and plants. Utilizing our core measurement and control technologies and know-how, we will function as a unified Group to expand the Environment business, Lifeline-related domain, as well as the Life Assist business serving the elderly, including Safety Service Center, nursing care, adult day care centers, and group homes; and aim for “human-centered automation.” In other words, we will carry out CSR through our business activities.

    To expand business a company requires personnel who can actively create new ideas in the planning stage, and also possess the intellect and energy to overcome numerous difficulties in the execution stage. Moreover, it is difficult for an individual to develop and expand a new business independently, so the ability to inspire, unify and bring together members from both inside and outside the company will become essential in the future. In this way, the human-centered approach to both society and company is the foundation of the Yamatake Group’s CSR.

    In 2006 Yamatake held for the first time a stakeholders meeting with experts from outside organizations. By taking their opinions, we intend to further clarify the Group’s stance on CSR.

The Yamatake Group has been upgrading its compliance framework and stressing observance of laws and regulations and business ethics. For example, the company established the Yamatake Group Corporate Ethics Committee in 2000, and set up the Business Conduct Office in 2003.     It is especially important to respond to all sorts of risks that can severely impact our business operations. These include risks that arise from substandard compliance frameworks, natural disasters such as major earthquakes, and unexpected economic changes. In countering these various risks, we are currently undertaking such initiatives as establishing a total risk management framework and developing a business continuation plan.     We will also enhance the framework and operation of our internal control system. Systems and processes will be set up to meet the three goals of improving business effectiveness and efficiency, ensuring reliability of financial reports, and observing and entrenching laws and regulations related to our business activities. We will also focus on preventing company misconducts and continuously raising our corporate value.

Tadayuki Sasaki Managing Executive Officer (CSR Management Officer)

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