Transition of Environmental Accounting in 2004

In FY2004, programs (see Olympus CSR Report 2005 pages 23-26) for environmentally conscious products and green procurement (see Olympus CSR Report 2005 page 29) moved forward throughout the entire Group, and R&D costs (up about 1.5 times on the previous year) and upstream costs (up about 3.3 times on the previous year) increased greatly. We also introduced preventive environmental consciousness (see Olympus CSR Report 2005 page 33) and completed a new building at the Tatsuno Plant, incorporating about 137 million yen worth of energy-saving measures.

Environmental accounting in FY 2004 (Non-consolidated)

Unit: million yen

Grouping		Major Programs	Related Pages	Amount of Capital Investment			Amount of Cost			Total
Grouping		Major Programs	Related Pages	FY2002	FY2003	FY2004	FY2002	FY2003	FY2004	FY2004
Cost Inside Business Area	Prevention cost of Public Nuisance	Sump pump repair Installation of liquid-proof embankments	P34-35	105	60	12.5	364	187	178.7	191.2
	Global Environmental Conservation Cost	Improvement of air conditioning and condensers	P32-33	353	211	216.0	121	302	39.8	255.8
	Resource Circulation Cost	Circulatory utilization of water resources / Installation of concentrators	P34-35	14	51	37.0	280	243	237.9	274.9
Cost in Upstream and Downstream	In Upstream Cost	Green purchasing / Green procurement	P28-30	0	0.6	7.0	0.7	26.7	81.8	88.8
Cost in Upstream and Downstream	In Downstream Cost	Reduction of containers and packaging / Product (endoscope film) recovery & reuse	P31・ P34-35	0	0.1	0.0	42.7	82.1	44.8	44.8
Cost of Control Activity		Management operation, and public relations for the environmental management system	P38-39	40	0	0.4	292	290	330.0	330.4
Cost of Research and Development		Development of Eco-products / Research on hexavalent-chromium-free and lead-free materials	P23-26	0	77	73.3	232	413	649.7	723.0
Cost of Social Activities		Participation in tree-planting and cleaning activities in regional area	P48-49	0	0	0.2	9	1	10.8	11.0
Cost for Damaged Environment		No program in FY2004	-	0	0	0.0	1	73	0.0	0.0
Total				512	339.7	346.4	1,342	1,618	1,573.4	1,919.8

Aggregation period: April 1, 2004, to March 31, 2005
Aggregation scope: One production base in China (Shenzhen) has ben added to the major subject scope of Olympus CSR report
Note 1) Starting with the FY2004 portion, the proportions of cost and depreciation expenses that cannot be clearly separted into those for environmental preservation and those for other purposes are not calculated, and their total are not included for the purpose of environmental accounting.
2) Acount of capital investment during the period = 46,127 million yen in total, R&D cost = 47,720 million yen in total
3) In 2004, we carried out a full review of existing data, which includes a reexamination of past environmental accounting data.

Volume of Environmental Preservation Effects

Unit: t

Volume of Environmental Preservation Effects		FY2002	FY2003	FY2004	Change from Previous FY	Ratio of Change
Effects in Business Place Areas	CO₂ Emission	74,861	82,687	83,032	345	0.42％
	Waste Intermediately Treated by Contract	859	318	173	-145	-46％
	Copy Paper Purchased	133	123	137	14	11.4％

Unit: million yen

Economic Environmental reservation Effects		FY2002	FY2003	FY2004	Change from Previous FY	Ratio of Change
Income	Income from Sales of Recycled Valuable Resources	14	20	34	14	70％
Cost Reduction	Energy Cost	1,777	1,741	1,783	42	2.4％
	Cost of Consigned Intermediate Waste Treatment	42	19	14	-5	-26％
	Cost of Copy Paper Purchased	21	19	22	3	15.8％

Aggregation period: April 1, 2004, to March 31, 2005
Aggregation scope: One production base in China (Shenzhen) has ben added to the major subject scope of Olympus CSR report