Environmental Accounting

To achieve our goals of btransparency of activitiesb and bimplementation of efficient environmental protection activitiesb, we have employed environmental accounting since fiscal 2002 to quantitatively comprehend and evaluate the investment, cost and effect related to environmental protection.

Our environmental accounting was developed in accordance with the bEnvironmental Accounting Guideline 2005b issued by the Ministry of the Environment. Details of activities and their effects on environmental protection are described on corresponding pages shown in the table below.

The main item of environmental equipment and facilities investments for fiscal 2007 was an investment in the enhancement of the equipment that reduces formaldehyde emissions, generated from the manufacturing process, into the atmosphere.

• The investment amount was for the equipment relating to environmental protection during appropriate fiscal years.
• The expenditure includes actual depreciation costs, maintenance costs and personnel expenses for the environmental protection equipment.

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