E N V I R O N M E N T A L R E P O R T 2 017

DIGEST VERSION
F o r t he y e a r ended F eb ruary 2 8 , 2 017
 E N V I R O N M E N T A L R E P O R T 2 017
01

FOREWORD
Environmental Protection Activities

My name is Mamoru Sato and I was appointed the Representative Director, President and CEO of
the Company on March 1 of this year. With intensification of climate changes in our era of global
warming, to make our society sustainable on the global scale,business enterprises also need to do their
share implementing continuous measures to combat global warming, measures that are now just as
vital for survival and development of companies as they are for the society at large. Our Company sees
activities to reduce greenhouse effect gases, compliance with stricter regulations for environmental
conservation, and other environmental protection measures as managerial issues of utmost
importance.
The final target year of the current Medium-Term Management Plan is the term ending February,
2021, four years from now, which incidentally is also the year we will be celebrating the 70th
anniversary of our establishment. In the Plan, we set the following medium-term vision: "as a global
niche company, our goal is to enhance prosperity and well-being of all stakeholders by distributing the
added-value created through efforts aimed at combining the strengths of advanced software and
precision processing technologies that help maximize customer satisfaction." We are currently
implementing various measures to achieve this vision, and, to contribute to creation of a sustainable
society, shall continue to ensure that our manufacturing methods are environmentally friendly while
also actively engaging in a number of environment management activities.
I hope that our stakeholders will continue to support us in the future.

June 2017
MAMORU SATO
Representative Director,
President and CEO

CONTENTS

01 FOR EWORD
02 EN V IRONMENTAL MA NAGE M ENT
05 EN V IRONMENTAL LOAD AS S O CI AT ED W I TH BU S I NES S ACT I V I T I ES
07 EN V IRONMENTAL ACCOU NT I NG
08 EN ERGY SAVING ACTIONS -TO PREV ENT G LO BAL W ARM I NG -
11 EN V IRONMENTALLY FRIENDLY M ANU FACT U RI NG
12 L OWERING ENVIRONMENTA L CO NTAM I NAT I O N RI S K
14 PROMOTION OF REDU CTIO N AND RECY CLI NG ACTI V I T Y O F W AS TE
14 S OCIA L CONTRIBUTION ACTI V I T I ES RELATED TO T H E ENV I RO NM ENT
Range Covered:
Domestic Company offices (total of 4 locations), Subsidiaries (total of 2 companies)
Production Subcontracting Company (1 company), Sales agent (1 company)
Overseas Subsidiaries (3 key production sites)
Coverage centered on Company activities, with some affiliates such as subsidiaries/sales agent also included.
Period:
The year “2017”represents the period March 1, 2016 to February 28, 2017.
 E N V I R O N M E N T A L R E P O R T 2 017
02

ENVIRONMENTAL MANAGEMENT
Progress toward ISO 14001 Certification

We have acquired ISO 14001 certification for all three of our domestic factories, all two domestic
subsidiaries, one production subcontracting company, one domestic sales agent and three key
production sites at our overseas subsidiaries.
In conjunction with our affiliates, we will continue activities to strengthen our overall promotion of
environmental activities.

DOMESTIC
Company Factories / Offices
Special Products Ihara Factory Acquired March 2001
Precision Products Fujimi Factory Acquired February 2002
Machine Tools Kikugawa Factory Acquired March 2002
General Administration Headquarters Head Office / Acquired September 2001
R & D Center Quality Technical Center (Self-conformance declaration: September 2010)

Subsidiaries
Manufacturing Division Kikugawa Factory Acquired April 2006
Star Metal Company
Plating Division Acquired March 2007
Micro Sapporo Company Acquired March 2007

Production Subcontracting Company

Effetto Ihara Factory Acquired October 2006

Sales Agent
Move Company Acquired January 2006

OVERSEAS
Subsidiaries (Key Production Sites)
Star Micronics Manufacturing Dalian Co., Ltd. (Dalian, China) Acquired May 2002
Shanghai S&E Precision Co., Ltd. (Shanghai, China) Acquired February 2003
Star Micronics Precision (Thailand) Co.,Ltd. (Ayutthaya, Thailand) Acquired February 2009

Self-Conformance Declaration

At our Head Office and Quality Technical Center, we have instilled activities performed via through
Environmental Management Systems and have eliminated almost all environmental load. Accordingly,
we issued an ISO14001 self-conformance declaration in September 2010.
Since issuing the self-conformance declaration, we have promoted environmentally-friendly
business activities based on environmental policy.
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03

Environmental Audits

Internal Environmental Audits

Internal environmental audits are conducted regularly each year at domestic factories and affiliates
to confirm that environmental management systems are adequate and effective, and that
environmental management programs are appropriate and legally compliant.
We also conduct skills enhancement seminars for internal
environmental auditors to improve the expertise of people
conducting internal audits.
A comprehensive environmental audit report is created listing
items that fall below the expected standards, and the report is
submitted to management as data for use in compiling the
end-of-year environmental review. Thus audits contribute to
improvements in the following year. Training for auditors

External Environmental Audits

Domestic factories and affiliates that have acquired ISO14001
certification are subject to environmental audits (environmental
management system inspection) by an external inspection
authority. Certification maintenance inspections take place once a
year, while renewal inspections are conducted every three years.
The results of these inspections are submitted to management
as data for use in compiling the end-of-year environmental review,
thereby contributing to improvements in the following year. Conducting an environmental audit

Emergency Response

Every year, Star Micronics and its domestic affiliates plan and
conduct emergency-related training of relevant parties and disaster
prevention drills, as well as simulation-based drills for individuals
and entire facilities based on manuals, which are evaluated as part
of the process. These drills anticipate every conceivable accident or
emergency (earthquake, typhoon, explosion, fire, blackout,
chemicals leak, and airborne hazard, etc.).
Firefighting drill
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04

Environmental Training

We and our domestic affiliates believe that to maintain, and further improve, the level of our
environmental activities, we need to change the mindset of every single employee. We therefore offer
training opportunities for all employees from new hires to management. Training comprises four core
categories: general, rank-based, leader-oriented, and specialist.
In 2017 (domestic), we conducted events such as an introductory environmental seminar, a seminar
on the cultivation of internal auditors.

Environmental Training Structure

Training Category Personnel Eligible Internal / External Seminars Offered
General training Regular employees Introductory seminar, general seminar,
waste products separation seminar
Rank-based training Managers Managers’ seminar
Top management Top management seminar
Leader-oriented training Environmental leaders Environmental manual seminar
（Including document management）
Specialist training Environmental survey team Environmental impact evaluation seminar
Internal environmental auditors Internal auditor development seminar
（Internal/External） *
Personnel in charge of environmental law Environmental law seminar*
Public-sector environmental experts Qualification seminar/Test based on laws
and regulations
Personnel in charge of procurement Green procurement seminar
Personnel in charge of waste products Waste products seminar
Harmful substance handler OJT by personnel with public-sector
environmental qualifications
Noise measurement personnel OJT by certified internal environmental experts
*For the certified internal environmental experts

Public, Environmental Qualified Person Related to Environment

Name of Qualification Number of Persons Qualified
(Number of Persons Qualified in 2017)
Safety manager 5 (0)
Public health manager 18 (2)
Pollution prevention manager 7 (0)
Manager in charge of industrial waste requiring special management 16 (0)
Fire prevention manager 13 (0)
Promoter of energy management and planning 2 (0)
Dangerous substance handler 84 (0)
Manager in charge of handling of toxic and harmful substances 3 (0)
Manager in charge of X-ray operations 1 (0)
Manager in charge of organic solvent operations 30 (0)
Manager in charge of specific chemical substance operations 8 (0)

Status of Legal Compliance

Star Micronics and its domestic affiliates have stipulated internal regulations for the application of
environment-related laws, and compliance with these laws is evaluated in accordance with a list of
specific item s to be monitored and measured.
Legal compliance is confirmed by checking that results measured are in line with management
figures, and the data is stored as an environmental record. When installing, introducing, changing, or
disposing of facilities and equipment, we conduct an assessment of the facilities and equipment to
evaluate legal compliance.
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05

ENVIRONMENTAL LOAD ASSOCIATED WITH BUSINESS ACTIVITIES

We use a variety of resources and energy during the process of conducting business activities. This
results in the emission of CO2 and the generation of waste products. We assesse the environmental
load associated with our activities and promotes activities to decrease environmental load by reducing
the amount of energy consumed, waste products generated and decreasing the amount of hazardous
materials used.
*Scope of Analysis: domestic (Star Micronics Co., Ltd. and affiliated domestic companies),
overseas (Star Micronics Manufacturing Dalian Co., Ltd.; Shanghai S&E Precision Co., Ltd.; Star Micronics Precision (Thailand) Co., Ltd.;
Star Micronics Manufacturing (Thailand) Co., Ltd. : from 2014)

Change in Input Amount (Major Items)

Electricity Usage Heavy Oil Usage (Domestic)

thousand kwh Domestic Overseas kℓ
35,000 100
30,510 29,817 29,437 84
30,000 28,606 28,842 83
80
25,000
71 69
16,597 16,303
14,644 15,670 15,868 61
60
20,000

15,000
40

10,000
13,962 13,172 13,913 13,514 13,569 20
5,000

0 0
2013 2014 2015 2016 2017 2013 2014 2015 2016 2017

LPG Usage Gasoline Usage

kg Domestic Overseas ℓ Domestic Overseas
100,000 125,000
90,151 110,811
82,545
80,000 74,402 100,000 95,828 92,824 99,098
45,186 86,992 82,596
64,388 62,729 18,392 38,959
60,000 10,512 75,000 67,350 73,632
18,528 64,834
59,353
40,000 50,000
53,876 56,010

44,201 44,965 43,586

20,000 25,000
27,639 28,215 28,478 27,990 25,466
0 0
2013 2014 2015 2016 2017 2013 2014 2015 2016 2017

Light Oil Usage Amount of Steam Used (Overseas)

ℓ Domestic Overseas t
25,000 10,000
22,031
8,473
20,000 8,000
7,301 6,991
21,647 16,288 6,811
15,000 14,543 6,000 5,506
12,294
10,000 16,288 4,000
13,569 7,846
11,320
5,000 2,000
7,107

384 0 974 974 739

0 0
2013 2014 2015 2016 2017 2013 2014 2015 2016 2017
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06

Total Amount of Energy Used

GJ Domestic Overseas
400,000
347,476 341,325
332,748
316,162 328,232
300,000
191,956 186,242
178,896 177,755
168,971
200,000

100,000
147,191 149,336 155,520 155,083 154,993

0
2013 2014 2015 2016 2017

Note: Domestic conversion factors are used when calculating  

   overseas energy.

Water Usage Copy Paper Purchased

thousand
m3 Domestic Overseas sheets Domestic Overseas
150,000 8,000

6,136 6,391
112,627 6,109
107,309 6,000 5,720 5,650
109,167
100,000 91,860 92,599
3,182
91,566 2,896 2,436
86,027 88,906 2,652 2,447
4,000
67,444 68,507
50,000
2,000 3,673
3,240 3,209 3,068 3,203

21,282 20,261 21,061 24,416 24,092

0 0
2013 2014 2015 2016 2017 2013 2014 2015 2016 2017

Change in Discharge Amount (Major Items)

CO2 Emissions Waste Generated

t Domestic Overseas t Domestic Overseas
20,000 1,500
18,466
17,328 17,249 17,235 17,253
1,140 1,154
15,000 10,887 1,051 1,002
9,644 10,085 10,173 9,621 1,000 951
676 718
10,000 711
602
579

500
5,000
7,684 7,164 7,579 7,632 464
7,062 436
372 400
340
0 0
2013 2014 2015 2016 2017 2013 2014 2015 2016 2017
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07

ENVIRONMENTAL ACCOUNTING

Environmental Protection Costs (thousands of yen)

Domestic Overseas
Category Initiatives
Investment Expenses Investment Expenses

Costs Pollution Prevention Cost Prevention of air/water/ground contamination 9,636 10,253 0 5,509
within
Business
Environmental Preservation Cost Energy conservation 1,800 1,964 0 360
Area Resource Recycling Cost Treatment/disposal of waste 0 8,545 0 1,560
Upstream/Downstream Cost Green procurement difference 0 153 0 199
Management Activity Cost EMS operation, Education, On-site planting 0 29,187 0 2,725
Research & Development Cost R&D, WEEE/RoHS measures 0 15,793 0 123
Social Contribution Cost Donations, Financial support 0 197 0 0
Environmental Damage Response Cost Repairs for ground/water contamination 0 0 0 0
Total 11,436 66,092 0 10,476
Note: Excludes depreciation expense.

Financial Impact Resulting from Environmental Protection Measures (thousands of yen)

Category Domestic Overseas

Earnings Gains from sales of marketable waste from business activities 29,807 12,470
Total energy expense (electricity/heavy oil/LPG/gasoline/light oil) reductions 34,316 39,462

Expense Reductions in water/well water usage expense 378 606

Reductions Reductions in copy paper purchase expense 298 307
(Year on Year)
Reductions in waste disposal expense 90 48
Others 0 0
Total 64,889 52,893
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08

ENERGY SAVING ACTIONS -TO PREVENT GLOBAL WARMING-

We are taking a variety of actions to reduce the amount of energy consumed and is working to
reduce CO2 emissions amount.

Changes in CO2 Emissions Amount

Changes in CO2 Emissions by Category Breakdown of CO2 Emissions by Category

ℓ Electricity Steam Others (2017, domestic and overseas factories)
25,000
Others

17,328 17,249
18,467 4
Steam %
20,000 17,236
711 16,354
678 680
2,127
683
685 9%
1,833 1,710 1,755
15,000 1,382

15,629
10,000 14,817 14,859 14,798 14,287
Electricity
5,000 87%
0
2013 2014 2015 2016 2017

Less Air Conditioning

We lengthened our Cool Biz Campaign in accordance with lengthening of the period at the Ministry
of the Environment.

Cool Biz Campaign

1. Period Conducted: May 9 to the end of October
2. Air conditioning temperature: Set to 28°C
(Although the campaign does not apply to manufacturing
and reception areas, these are included as much as
possible.)
3. Attire: No neckties or uniforms are worn

Warm Biz Campaign

1. Period Conducted: December 1 to the end of March Cool Biz
2. Heating temperature: Set to 22°C information board
3. Attire: Employees are encouraged to wear warm clothes

Information is posted at the entrances to each Warm Biz

information board
office and visitors are urged to cooperate.
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09

Installation of solar power facilities

As part of environmental conservation actions, we installed solar power facilities on roofs of

Kikugawa Factory and the factory at Star Metal Company. The two facilities provide a total output of
350 kilowatts. It has power generated 450 thousand kilowatt-hours in 2017. An amount equivalent to
the power consumed by about 125 average households. All of the generated electricity is sold to
Chubu Electric Power Co., Inc.

Solar Power Facility of Kikugawa Factory（Red flame） Solar Power Facility of Star Metal Company（Red flame）

Heat shielding using roof shades

We have installed roof shades on Kikugawa South Factory and Ihara Factory. These roof shades
alleviate the drastic temperature increases associated with summer and reduce the amount of energy
used for air conditioning. As a result, Ihara Factory has reduced energy consumption in summer by 28%.

Roof shades (Kikugawa South Factory) Roof shades (Ihara Factory)

Efficient and power-saving outside light

We replaced mercury-vapor lamps in Micro Sapporo Company with metal halide lamps which
feature high-brightness, power-saving and a long lifespan. Replacement with these new lamps realized
a reduction in energy consumption of approximately 50%. Also, at our Head Office we installed LED
lighting which consumes one-tenth of the power of conventional mercury-vapor lamps.

Metal halide lamp (Micro Sapporo Company) LED light (Head Office) 
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The number of company cars owned

In order to reduce the amount of CO2 emissions by company cars, we have implemented the use of
lightweight cars and hybrid cars.
(Number)
Type of Car Ordinary Cars Mini Cars Hybrid Cars Total
Year
2014 31 10 9 50
2015 30 10 9 49
2016 30 10 9 49
2017 29 10 9 48

No-Car Campaign

Every year, we hold a No-Car campaign for employees who commute by car or motorcycle to offices
within Shizuoka City. We implemented a 2-week No-Car campaign in both spring and autumn of this
year.

Implementation Report
Enforcement period May 16 - 27, October 17 - 28, 2016
Participants 81 Individuals
Eco-commute distance 2,865Km
CO2 reduced 640Kg (Calculated based on fuel consumption of 10 km/ℓ)

Lights-Down Campaign

This year, we once again participated in the Lights-Down Campaign held by the Ministry of the
Environment. The rooftop neon logo signs at our Head Office, Ihara Factory and Fujimi Factory were
turned off at 8:00 PM for 2 days from July 6th (Wednesday) to July 7th (Thursday) of 2016. As a result,
the amount of power used during this period decreased by 278 Kilo-watt hours.

Response to the Revised Energy Conservation Act

As a business which is subject to the revised Energy Conservation Act, we must reduce our energy
consumption rate every year in the mid- to long-term. In response to this law, we have appointed an
Energy Management Supervisor and an Energy Management Planner who fulfill a central role in energy
conservation activities. We have also established an Energy Conservation Task Force and formulated
Compliance Rules for Promoting Energy Conservation to serve as guidelines. Through such measures,
we are actively working to conserve energy.
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ENVIRONMENTALLY FRIENDLY MANUFACTURING

R&D (Research and Development)

The Company develops products utilizing the technology of "energy harvesting". These products
transform very small energy from the surrounding environment (such as vibration, light, heat, etc.), into
electric power. In recent years, this area of environmental power
generation is attracting increased attention, and the Company is
developing sensors and peripheral devices for use in such power
generators. We shall strive to improve the electric generating
capacity of the generators and contribute to conservation of
resources through provision for the wireless sensor network, an
area which is expected to grow substantially over the coming years,
of devices that require no batteries or wiring.

Special Products

Complying with the most recent 2.0 version of the International ENRGY STAR® Program, which is a
global system of energy conservation, we released our lineup of printers boasting low power
consumption, products aiming to reduce the environmental
burden. Another eco-friendly initiative is our electronic receipt
service "AllReceipts" offering Cloud storage and management for
digitized receipt data.
We also use pulp mold created by recycling newspapers, carton,
and other types of used paper for packaging, while our printers are
equipped with back-feeding function to reduce blank space and
reduced print function that helps to cut down on the paper used to
print receipts.

Machine Tools

New Release of Swiss Type Automatic Lathe SV-20R

We have currently developed Swiss type automatic lathe SV-20R with maximum machining
diameter of 20mm for use in a wide range of industries including the automobile- and medical-related
areas. In order to respond to the increasing needs for more versatile component machining, we
created the lathe so as to enable switching from guide bush to
non-guide bush operation to achieve optimum specifications
according to respective machining parts and minimize scrap
materials to be discarded. The lathe is equipped with a tool post on
the rear side also, and by simultaneously machining on both sides it
is possible to reduce the machining time, while our unique Star
Motion Control System through numerical control minimizes
non-cutting time needed for computing, tool selection, etc.
achieving a shortened cycle time on the whole.
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LOWERING ENVIRONMENTAL CONTAMINATION RISK

Managing Chemical Substances

Star Micronics and its domestic affiliates have created and implemented internal regulations for the
management of harmful substances and dangerous materials handled by the Company in order to
ensure proper and safe management of chemical substances. These internal regulations, based on the
relevant laws and statutory regulations, are designed to ensure that the environment is taken into
account in the purchasing, storage, use and disposal of such substances.

Response to PRTR* Law

In accordance with the PRTR (Pollutant Release and Transfer Register) Law, we have continued to
submit notification regarding the emission and transfer volume for Class I Designated Chemical
Substances. The annual handing volume of such substances has decreased greatly due to the use of
powder paints which do not contain organic solvents (including substance subject to PRTR) and to a
change to alternative materials. As a result, since 2011 there are no longer any offices or affiliated
companies for which submission is required.
However, from the perspective of appropriate handling of chemical substances, we will continue to
gather data on emission and transfer volume.
The emission/transfer amount of substances in 2017 was as follows:
*The PRTR (Pollutant Release and Transfer Register) Law is a means of obtaining,
collating and disclosing emission and transfer volume data for harmful chemical substances.

PRTR Reports for all Domestic Factories and Affiliates (kg/year)

Emmissions Volume Transfer Volume

Factory
Substance Chemical Substance
No. Use Public Ground Landfill Washed Waste Total
Name Air Drainage within within into within
Areas Factory Factory Sewage Factory

Micro Sapporo
309 Nickel Compound Chroming 0 0 0 0 1 37 38
Company

Star Metal 300 Toluene Coating 812 0 0 0 0 102 914

Company 80 Xylene Coating 35 0 0 0 0 8 43
Fujimi 374 Hydrogen fluoride and water-soluble salt Polishing 0 0 0 0 0 3 3
Factory 392 Normal hexane extracts Parts Cleaning 10 0 0 0 0 0 10
Total 857 0 0 0 1 150 1,008

Total Volume of PRTR Emission

and Transfer
kg
1,200

1,008
1,000
843
800 776

598 601
600

400

200

0
2013 2014 2015 2016 2017
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Response to Air Pollution

Furthermore, in order to maintain and monitor the standard values above, Star Metal is implementing
weekly voluntary inspections using a simplified measuring method in the Machine Tools Division. Use
of the powder coating method allows us to reduce environmental load at the manufacturing stage.
This new method has realized the environmental effect of cutting atmospheric pollutants (VOC)
drastically and reducing industrial waste by one-third.

Powder coating

Response to EU Environmental Regulations

Environmental regulations in the European Union (EU) have had a significant impact not only within
the EU region but also in various countries around the world, and many Japanese manufacturing
industries have been forced to respond in some way.
For our products that fall under WEEE and RoHS directives, we are operating based on our internal
regulations for management of substances that burden the environment and on green purchasing
guidelines.
Also, for REACH Regulations, we are implementing sequential surveys in regards to whether our
products include any SVHC, which are added every year.

Use of X-ray Fluorescence Spectrometers

We use X-ray fluorescence spectrometers to measure levels of chemical substances contained in
components of our printers that fall under the WEEE and RoHS directives, as well as to conduct
inspections on receipt of the components.
Our machine tools do not fall under these directives, but we have
taken aggressive measures such as using X-ray fluorescence
spectrometers to measure the composition of components with a
view to reducing harmful substances. Components used in the
actual machines in our key products are 99% RoHS compliant,
excluding certain NC control equipment.
X-ray fluorescence spectrometer
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PROMOTION OF REDUCTION AND RECYCLING ACTIVITY OF WASTE

We and our domestic affiliates have created and Volume of Waste Generated
implemented internal waste management regulations t Domestic Overseas
1,400
in order to properly dispose of waste produced from
corporate activities in line with the requirements of 1,200 1,140 1,154
1,051
1,002
the Waste Disposal Law and to promote voluntary 1,000 951
718
activities. 800
676
711
602
579
600
Waste products generated in 2017 decreased by 49
tons compared to the previous fiscal year. The recycling 400
464
rate was 99.3%. We will continue to instruct group 200 372
436
340
400

employees regarding the dismantling and separation 0

of trash in order to improve our recycling rate. 2013 2014 2015 2016 2017

SOCIAL CONTRIBUTION ACTIVITIES RELATED TO THE ENVIRONMENT

Social Contribution Activities

Inviting participation of the employees and their families, we participate in voluntary cleanup
campaigns organized by the municipal authorities of Shizuoka every year.
We organized cleanup campaigns in June and September. CSR activities at Star Micronics entail an
active role in contributing to society with the cooperation of our employees.

Participation in voluntary cleanup campaigns in Shizuoka city

Date Place Participants
June 4th (Saturday), 2016 Miho-Masaki Beach 15
September 3th (Saturday), 2016 Okitsu River 22

China: voluntary activity in Dalian

In Star Micronics Manufacturing Dalian Co., Ltd., one of the main production bases of the Company
overseas located in Dalian, China, we are annually organizing voluntary activities, in which employees
give their support to the community. We participated in tree planting and cleanup activities.

Date Place Participants

April 23th (Saturday), 2016 Dalian organized tree-planting activities 156
July 16th (Saturday), 2016 Golden Pebble Beach cleanup activities 95
September 10th (Saturday), 2016 Area around the factory cleanup activities 106
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Publication of the Environmental Report

From the perspective of conserving the environment through such measures as reducing energy
usage and saving resources, we don’t publish its Environmental Report in paper form. Instead, the
report is published on the Star Micronics website as a PDF-format file.

Environmental activities of Star Micronics http://www.star-m.jp/eng/company/co05.html

Contact information General Affairs section, Star Micronics Co., LTD.
Tel: +81- 54 -263 -1111 Fax: + 81-54 -263 -1057