Material Balance

At SMK, we are attempting to analyze and understand the material balance (environmental footprint) of the Group as a whole for each of our processes, from product design and development to manufacture and sales, and to realize non-wasteful business activities.

Environmental Preservation Costs and Benefits

(Units: million yen) Category Major Activities Environmental Preservation Costs Economic Benefits Accrued Environmental Preservation Benefits (Quantity) Investments Expenses Amount YoY Amount YoY Amount YoY Consumption/ Output Savings YoY Business area costs Pollution prevention Operation and maintenance of facilities used to prevent pollution 1.4 185% 19.6 96% 0 - Use of Environmentally Hazardous Substances: 10.5 t 111% Global environmental preservation Efficient operation and maintenance of equipment, such as air-conditioners, daily efforts to save energy, etc. 14.2 80% 42.7 101% 3.5 13% CO2 emissions per unit of production value: –0.05 t-CO2 /million yen - Resource circulation Appropriate processing and recycling promotion of industrial waste discharge 0 - 22.9 72% 153.7 64% Landfill waste amount: -12.0 t - Industrial waste discharge per unit of production value: –0.002 t /million yen Sub-total - 15.7 85% 85.3 90% 153.2 58% - Upstream / downstream Green procurement 0 - 0.8 16% 0 - - Administration Elimination of environmentally hazardous substances / Environmental management education, activities for the achievement of certification, etc. 0.4 -   167.8 100% 0 - - R&D Development of environmentally friendly products 0 - 45.0 116 0 - - Social activity Initiatives to expand green areas at works 0 - 6.6 77% 0 - - Environmental remediation - 0 - 0.1 - 0 - - Total - 15.7 83% 305.6 97% 157.2 58% -

●Environmental Preservation Costs

Our environmental preservation costs in fiscal 2010 declined against the previous fiscal year, in terms of both investments and expenses. This is because the recent strength of the yen resulted in a decline in costs for overseas bases when these costs were converted into yen. In local currencies, costs have actually increased.

●Economic Benefits

Economic benefits for fiscal 2010 declined against benefits for the previous fiscal year. The main reason for this was that the amount of tools and equipment available for reuse was smaller, and as a result the benefits in this area fell below those for the previous fiscal year.

●Environmental Preservation Benefits

Environmental preservation benefits increased in all of the four categories used in their evaluation. The reasons for CO2- and industrial waste-related increases are explained in "Environmental Preservation Activities." In the case of environmentally hazardous substances, the increase was because the revision of the PRTR Law that sets the standard increased the number of substances subject to aggregation.