ANNUAL REPORT 2020
Year Ended March 31, 2020

INDEX
To Our Shareholders

1

Topics of the Year

4

Consolidated Financial Statements

6

 onsolidated Statement of Income/C
Consolidated Statement of Comprehensive Income

8

Consolidated Statement of Changes in Equity

10

Consolidated Statement of Cash Flows

12

CSR

15

Corporate Governance17

Health and Safety

26

Quality32

Environment

36

Supply Chain45

Our Contributions to Society

49

Employees

56

Corporate Data66

To Our Shareholders
Business Operations
Review of Fiscal Year 2019

Outlook of Fiscal Year 2020

In the first half of the current consolidated
fiscal year, the Chinese market slowed down,
and in the second half of the year, businessactivities stagnated due to the global epidemic of
COVID-19, so orders in each market decreased
and revenue declined. In terms of profits, we
tried to reduce costs, however, profit declined
as a result of decline in revenue, and also, we
recognized impairment loss on production
facilities of subsidiaries in US and India, becauseof sluggish orders for products in the US andIndia markets are not expected to recover in the
short term. Performance of current consolidated
fiscal year are, Revenue: ¥ 263.9 billion (6.6%
decreased from previous year), Operating profit: ¥16.8 billion (14.6% decreased from previous year),
Income before income taxes: ¥ 15.0 billion (21.4%
decreased from previous year), profit attributableto owners of parent ¥ 9.5 billion (26.8% decreased
from previous year).

Due to the spread of the COVID-19, restrictions on goingout and moving around the world have kept businessactivities stagnant. There are no signs of the COVID-19
convergence, it is difficult to make a reasonable forecast
of FY2020 at this point. We will promptly disclose theforecast when it becomes possible to do so.
July, 2020

Hidehito Hisakawa
President & Chief Executive Officer

Hidehito Hisakawa (President and Chief Executive Officer)

Annual Report 2020

1

43

25

Core Technologies

Torque Converter

2019
2018

2 Annual Report 2020

2,639
2,824

Manual Clutch

GlobalGlobalMarket
MarketLeader
Leader44
43Companies
Companiesinin25
25Countries
Countries

Low Speed Lock-up
Torque Converter

Damper for
Plug-in Hybrid Vehicles

Annual Report 20203

Topics of the YearAwards
EXEDY Received the Daihatsu Grand AwardOn May 19, 2020, we received the Product Appeal Improvement Award and Monozukuri Activities Award
from Daihatsu Motor Co., Ltd. They awarded our company with the two awards for being the mostsuccessful and active partner in development and production. On June 17, 2020, EXEDY received theaward shield from Daihatsu Motor Co., Ltd.
Among the 608 member-companies, only one company received this award of the highest rank. Daihatsu
Motor Co., Ltd. greatly appreciated our product development, production, manufacturing engineering anddevelopment and improvement of production methods of the new generation torque converter.

H. Hisakawa (President & CEO, EXEDY Corporation) (right) receives the award shield fromK. Hashimoto (Chief of Purchasing Headquarters, Daihatsu Motor Co., Ltd.) (left)

Product Appeal Improvement Award (left) and Monozukuri Activities Award (right)

4 Annual Report 2020

Research & Development
Development of Products for Electrified Vehicles
In anticipation of the automotive industry’s shift towards electric powertrains, over the past years
our company has been investing in the development of electrified products for automobiles, as wellas in other fields, not directly related to the automotive industry. An example ofthese products is the Direct Drive iSG, an integrated Starter Generator placedaround the torque converter or clutch that directly drives the engine without using
a belt. We are also currently developing
a drive motor for industrial drones,a wind power generator andthe highly versatile Universal e-Drive Unit
that can be used in a variety of mobility
applications.

Sports Support
Iga FC Kunochi Mie Finished 4th in the Women’s Football League Division 1
Since 2012, our company has been the main sponsor of the Iga FC Kunoichi Women’s Football Team,
active in the Japanese professional women’s football league. We employ most of the players and provide
an environment where the players can combine work with their football careers. This is how we help
contribute to the development of women’s football. Last season Iga FC Kunochi Mie finished 4th in the
Plenus Nadeshiko League’s top division.

Annual Report 20205

1.

Consolidated Financial Statements(1) 1.Consolidated
Statement
ofand
Financial
Consolidated Financial
Statements
Main NotesPosition(1)

Consolidated Statement of Financial Position
FY2018(March 31, 2019)

FY2019(March 31, 2020)

Millions of yen

Millions of yen

AssetsCurrent assets
Cash and cash equivalents

45,41345,416

Trade and other receivables

49,24643,025

Other financial assets

1,465

1,846

Inventories

33,61133,499Other current assets

2,817

2,344

Total current assets

132,552

126,130

Property, plant and equipment

167,572

164,771

Goodwill and intangible assets

3,640

3,197

Non-current assets

Investments accounted for using equity method
Investments in Equity Instruments

153

151

2,944

1,508

Other financial assets

138

126

Deferred tax assets

2,688

3,067

Retirement benefit asset

1,063

991

Other non-current assets

1,225

1,077

Total non-current assets

179,422

174,889

311,975

301,019

Total assets

6 Annual Report 2020

FY2018(March 31, 2019)

FY2019(March 31, 2020)

Millions of yen

Millions of yen

Liabilities and equity
Liabilities
Current liabilities
Bonds and borrowings

7,745

7,538

Trade and other payables

37,722

31,936

Other financial liabilities

124

482

Income taxes payable

1,965

1,625

Employee benefits accruals

1,448

1,588

Provisions

2,840

2,314

Other current liabilities

1,632

1,948

Total current liabilities

53,47647,43038,12436,509Non-current liabilities
Bonds and borrowings
Other financial liabilities

182

736

Retirement benefit liability

6,081

6,376

Deferred tax liabilities

1,368

159

Other non-current liabilities

718

1,101

Total non-current liabilities

46,47344,881

99,94992,311

Share capital

8,284

8,284

Capital surplus

7,590

7,582

Treasury shares
Other components of equity△1,144Retained earnings△783△3,859186,206

191,319

Total equity attributable to owners of parent

200,153

196,938

Non-controlling interests

11,873

11,771

Total equity

212,026

208,709

311,975

301,019

Total liabilities
EquityTotal liabilities and equity△6,389Annual Report 20207

(2) Consolidated Statement of Income/Consolidated Statement ofComprehensive Income(Consolidated Statement of Income)(2)

Consolidated Statement of Income/Consolidated Statement of Comprehensive Income(Consolidated Statement of Income)
FY2018(April 1, 2018 to March 31, 2019)

FY2019(April 1, 2019 to March 31, 2020)

Millions of yen

Millions of yen

Revenue

282,398

263,899

Cost of sales

229,799

214,115Gross profit

52,59849,785

Selling, general and administrative expenses

31,39530,432Other income

1,602

1,144

Other expenses

3,179

3,745

Operating profit

19,626

16,751

Finance income

407

355

Finance costs

1,020

2,163

26

20

19,03914,964

Share of profit of investments accounted for using equity
methodIncome before Income Taxes
Income tax expense

5,704

4,143

Profit13,334

10,822

12,967

9,492

367

1,329

13,334

10,822269.52

198.34

Profit attributable to
Owners of parent
Non-controlling interests
ProfitEarnings per share
Basic and diluted earnings (loss) per share

8 Annual Report 2020

(Consolidated Statement of Comprehensive Income)(Consolidated Statement of Comprehensive Income)

Profit

FY2018(April 1, 2018 to March 31, 2019)

FY2019(April 1, 2019 to March 31, 2020)

Millions of yen

Millions of yen
13,334

10,822△459△1,154△6△32

Other comprehensive income
Items that will not be reclassified to profit or loss
Net change in fair value of equity instruments designatedas measured at fair value through other comprehensive
incomeRemeasurements of defined benefit plans
Total of items that will not be reclassified to profit or loss

△465

△1,185819△5,043

Items that may be reclassified to profit or loss
Exchange differences on translation of foreign operations
Share of other comprehensive income of investments
accounted for using equity method
Total of items that may be reclassified to profit or loss
Total other comprehensive income
Comprehensive income

△0

819

2

354

△5,042

13,688△6,227
4,595

13,113

3,854

Comprehensive income attributable to
Owners of parent
Non-controlling interests

575

741

Comprehensive income

13,6884,595

Annual Report 20209

(3) Consolidated Statement of Changes in Equity(3)

Consolidated Statement of Changes in Equity

Previous fiscal year
year
(April 1,Previous
2018 to fiscal
March
31, 2019)(April 1, 2018 to March 31, 2019)
Equity attributable to owners of parent
Other components of equity
Net change infair value of

SharecapitalCapitalsurplusTreasurysharesequityExchangedifferences ontranslation offoreign
operations

instruments

Re-

designated asmeasurements

measured at fairof definedvalue throughbenefit plans

Total

other
comprehensive
incomeBalances as of April 1, 2018

Millions

Millions

Millions ofMillions ofof yenof yenyen

yen△1,367

8,284

7,656

Profit--Other comprehensive income

-

-

Total

-

Millions of yen

Millions of yen

Millions of yen△2,256

△926

△459

1,330

-

-

-

-

610

△459

△6

-

-

-

-

-

-

610

Purchase of treasury shares

-

-

-

Disposal of treasury shares

-

-

224

-

Dividends of surplus

-

-

△1

-

-

-

△66

-

-

△66

223

610

△1,144△1,646

Share-based paymenttransactions
Transfer to retained earnings-

Total transactions with owners-

Total changes in equity-

Balances as of March 31, 2019

△66

8,284

7,590

Balances as of April 1, 2018
ProfitOther comprehensive income
Total

△6

146

-

-

-

-

-

-

-

-

-

-

-

△8

6

223

△2

-

△8

△467

863

Equity attributable to owners ofparentRetained
Total
earnings

Noncontrollinginterests

Total

Millions ofMillions ofMillions of

yen

yen

yen

177,808

191,455

12,177

203,631

12,967

12,967367

13,334

-

146

208

354

12,967

13,113575

13,688△1-Millions of yen

Purchase of treasury shares-

Disposal of treasury shares

-

224

-

224

△4,572△4,572△879△5,451△4,570△4,415△879△5,294

Dividends of surplus
Share-based payment transactions
Transfer to retained earnings
Total transactions with owners
Total changes in equity
Balances as of March 31, 201910 Annual Report 2020

-

2

8,397

186,206

△66

-

8,698

200,153

-

146

-

△304

11,873

△1

△66

-

8,394

212,026

6

△2

-

143

-

△783

Current fiscal year
Current(April1, fiscal
2019yearto March 31, 2020)(April 1, 2019 to March 31, 2020)
Equity attributable to owners of parent
Other components of equity
Net change infair value of

SharecapitalCapitalsurplusequityExchange

Treasurysharesdifferences ontranslation offoreign
operations

instruments

Re-

designated asmeasurements ofmeasured atdefined benefit

fair value

plans

Total

through othercomprehensiv
e income

Balances as of April 1, 2019
Cumulative effect of accounting change

Millions ofMillions

Millions ofyenof yen

yen

8,284

7,590

-

-

8,284

7,590

Profit--Other comprehensive income--

Restated balance

Total

Millions of yen

Millions of yen

Millions of yen△1,144863--△1,646---△1,144△1,646863-△4,453-

Millions of
yen

△783

-

△783

-

-

-

△4,453△1,154△32△5,638

-

-

-

-

-

-

-

-

Purchase of treasury shares-

Disposal of treasury shares-

Dividends of surplus-△2△2,765----

Share-based payment transactions

-

-

-

-

-

-

-

Transfer to retained earnings

-

-

-

-

-

32

32

Total transactions with owners-△2,715

-

32

32

-

△7

-

Total changes in equity△4,453△1,154-△5,606

Balances as of March 31, 2020

Balances as of April 1, 2019
Cumulative effect of accounting change
Restated balance
ProfitOther comprehensive income
Total
Purchase of treasury shares
Disposal of treasury shares
Dividends of surplus
Share-based payment transactions
Transfer to retained earnings
Total transactions with owners
Total changes in equity
Balances as of March 31, 2020

50

△5

-

△7

8,284

△2,715

7,582△1,154-△3,859-△6,099△290

Equity attributable to owners ofparentRetained
Total
earnings

Noncontrollinginterests

Total

Millions ofMillions ofMillions ofMillions of

yen

yen

yen

yen

186,206

200,153

11,873

212,026△14

200,139

11,873

9,492

△14

9,492

1,329

10,822-△5,638△589△6,227

186,192

9,492△4,333-△32△4,365
5,127

191,3193,854△2,767

-

741
-

44

-

△4,333△843△7,056△843-△3,201

196,938-△102

11,771△32--△5,638-△6,389△14

212,0124,595△2,76744△5,176-△7,898△3,303208,709

Annual Report 202011

(4) Consolidated Statement of Cash Flows(4)

Consolidated Statement of Cash FlowsFY2018(April 1, 2018 to March 31, 2019)

FY2019(April 1, 2019 to March 31, 2020)

Millions of yen

Millions of yen

Cash flows from operating activities
Profit before tax

19,03914,964

Depreciation and amortization

17,881

18,464

Impairment losses

2,224

2,416

Interest and dividend income

△377

839

△330

△26

△20

△957

5,982

△1,227

Other△4,779905△399

Subtotal

40,77742,454

Interest expenses
Share of loss (profit) of investments accounted for using
equity method
Foreign exchange loss (gain)
Decrease (increase) in inventories
Decrease (increase) in trade and other receivables
Increase (decrease) in trade and other payables

Interest and dividends received
Interest paid
Income taxes paid
Cash flows from operating activities

45

1,021

58

4,754

2,752

363

321

△1,001△1,016

31,76036,103△8,380△5,656

Cash flows from investing activities
Payments into time deposits
Purchase of property, plant and equipment

△50

△650

△26,991489△25,662△1,221
10△633△27,763△26,515

Proceeds from short-term borrowings

2,210

4,144

Repayments of short-term borrowings△2,8279,152△4,750△6,323△5,433△4,572△4,333

Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Other
Cash flows from investing activities

291

140

Cash flows from financing activities

Proceeds from long-term borrowings
Repayments of long-term borrowings
Purchase of treasury shares
Dividends paid
Other
Cash flows from financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

12 Annual Report 2020

△1

△899

△3,260△21

5,484△2,765△985△8,638715△948

44,69845,41345,41345,4163

(Segment Information)(1) Overview of Reportable Segments
The reportable segments are components of business activities for which discrete, and such information isregularly reviewed by the Company’s Board of Directors to make decisions about the allocation of resources
and assess its performance.
The Company and its consolidated subsidiaries are mainly engaged in the manufacture and sale ofautomotive parts. From the aspects of function, technological specification and productive structure, theproduct lines of the Company are classified roughly into 2 group, "Manual Transmission Parts" and "AutomaticTransmission Parts". The Company, in corporation with its consolidated subsidiaries, design business strategy
and conduct business for these 2 product lines inside Japan and overseas. Accordingly, the reportablesegments of the Company are composed of 2 segments, "MT (Manual automotive drivetrain related business)"which manufactures and sells Manual Transmission Parts and "AT (Automatic automotive drivetrain related
business)" which manufactures and sells Automatic Transmission Parts.
(2) Information of Revenue, Profit and Loss by Segment and The Amount of Other Important Items.
FY2018 (April 1, 2018 to March 31, 2019)(Millions of yen)
Reportable Segment

Other(Note 1)

Adjustments
Consolidated(Note 4)

MT

AT

Total

68,481

181,116

249,597

32,801-

282,398

Intersegments (Note 2)

201

2,228

2,429

6,619

-

Total

68,682

183,344

252,026

39,419△9,048Segment Profit (Note 3)

9,282

8,650

17,931

2,776

Revenue
External Customers

Financial Income△9,048282,398△1,081

Finance Expenses

19,626407
1,020

Equity in Earnings of26

Affiliates
Income before IncomeTaxes

19,039(Note) 1. Other includes businesses which is not part of any of the 2 reportable segments, and contain
industrial machine drive train operation, clutches for motorcycle operation, transport operation, etc.
2. Amount of intersegments transactions is based on market price.
3. Segment profit is based on operating profit on summary of quarterly consolidated statement ofincome.
4. Elimination of intersegment transactions and corporate expenses are included in adjustments.

8/12
Annual Report 2020

13

FY2019 (April 1, 2019 to March 31, 2020)(Millions of yen)
Reportable Segment

Other(Note 1)

Adjustments
Consolidated(Note 4)

MT

AT

Total

62,632

172,487

235,119

28,780-263,899

Intersegments (Note 2)

127

1,814

1,941

6,462

-

Total

62,759174,301

237,060

35,243△8,403

Segment Profit (Note 3)

8,155

9,100

17,255911

Revenue
External Customers

Financial Income△8,403

263,899
16,751△1,414355

Finance Expenses

2,163

Equity in Earnings of20

Affiliates
Income before IncomeTaxes

14,964(Note) 1. Other includes businesses which is not part of any of the 2 reportable segments, and contain
industrial machine drive train operation, clutches for motorcycle operation, transport operation, etc.
2. Amount of intersegments transactions is based on market price.
3. Segment profit is based on operating profit on summary of quarterly consolidated statement ofincome.
4. Elimination of intersegment transactions and corporate expenses are included in adjustments.
(Per Share Information)
Basis for calculating profit per share is as follows. There are no potentially dilutive ordinary shares during
previous consolidated fiscal year and current consolidated fiscal year.
1. Profit Attributable to Owners of Parent(Millions of yen)
FY2018FY2019(April 1, 2018 to March 31, 2019)(April 1, 2019 to March 31, 2020)

12,967

9,492

Profit Attributable to
Owners of Parent
2. Average Number of Shares Outstanding during the Period
FY2018FY2019(April 1, 2018 to March 31, 2019)(April 1, 2019 to March 31, 2020)

48,113,914

47,859,341

Average Number of Shares
Outstanding during the Period(Significant Subsequent Events)
Not applicable.

9/12
14 Annual Report 2020

CSR
Our approach
At EXEDY Group, we value our corporate philosophy “Creation of Fulfillment”, while we continue to grow as a global company
contributing to society. This “Creation of Fulfillment” includes fulfillment for our customers through quality, cost and design, contribution
to society by returning profits to shareholders and the payment of taxes, and happiness for our employees. Further, while carrying out
our corporate activities in a healthy, fair and transparent manner, we aim to realize a sustainable development on both societal andglobal levels through “Creation of Fulfillment”.

Corporate Philosophy = Creation of Fulfillment
1) Fulfillment for Our Customers

Excellence in QCD ※ +D (Design)2) Contributing to Society

CSR・Taxes・Dividend・Creation of Shareholder Value

3) Happiness for Our Employees

A company where employees are fulfilled※Quality, Cost, Delivery

Activities
At the EXEDY Group we ensure that we raise the awareness of all employees regarding our CSR activities, and promote CSR as a “wayfor our employees to approach their work”. After learning the basics during the new employee training, we acquire a wide range of ideas
of CSR through regular reading sessions of the Code of Conduct and incorporate them in our everyday work.

The code for putting our CSR into practice
The code for putting our CSR into practice
The EXEDY Code of Conduct is distributed to all employees,
including employees of our affiliated companies with the aimof spreading the basic policies, action guidelines and businessmanners to each and every member of the EXEDY Group working
across the globe. The 2020 edition of our Code of Conduct was
distributed to over 17,000 employees in 43 locations in 25
different countries.
The EXEDY Code of Conduct, first published in 1998 has beenrevised a total of 12 times, including the revision of the latest
version issued on April 1, 2020, to respond to changes in various
laws and regulations and changes in the social environment. Since
2013, we revise the Code of Conduct once a year so all employees
can be informed on the latest information regarding our “EXEDY
WAY” and “Midterm Consolidated Management Plan” showing our
growth strategies.
In 2014 we started the localization of the Code of Conduct and it
is now available in the following ten languages: Japanese, English,
Chinese, Thai, Indonesian, Vietnamese, Spanish, Portuguese,
Malay and Kannada.
In addition to the Corporate Philosophy, Midterm Consolidated
Management Plan and basic policies, it contains basic rules regarding compliance and corporate ethics and business manner, andthrough reading sessions at each department employees gain a thorough understanding.

CSR Training
New Employee Training
Every year in April we carry out CSR training at our Headquarters and Ueno Division for all our new employees, including employees at
our affiliated companies. Here our employees learn about the basics of CSR and the importance of adhering to the Code of Conduct.

Stratified Education
In our management training, newly appointed managers learn about managing their employees (labor management, power harassment
training, mental health etc.) and subcontracting law to enable them to carry out fair transactions with cooperating companies. We teachthe participants about the leadership needed to lead their subordinates and earn the trust of their stakeholders with the aim to develop
them into leaders that are able to support the company.

Annual Report 2020

15

CSR Policy
Basic Policy
We at EXEDY Group are contributing to sustainable development on both societal and global levels, which, through our corporate
activities, we carry out at each of our business locations. To accomplish this, we, based on the subsequent ten items, will, irrespectiveof domestic or overseas location, act with a sense of social decency, as well as uphold all human rights, laws, and international rules.

Course of Action

1. Compliance: Fairness and Transparency
We will uphold a spirit of compliance with the laws of each country and region, and will conduct business recognizing that thefundamental rule for corporate activities is to ensure that competition is fair, transparent, and free.

2. Guaranteeing an Enjoyable Workplace Environment
Along with providing a rich and abundant life for our executives and employees and guaranteeing an enjoyable and safe workplaceenvironment, we also offer a corporate climate that both respects the unique personalities of all of our employees and encourages theircreativity.

3. The Provision and Development of Products and Services That Satisfy Society
We always ensure that the standard of the products and services that we provide are such that customers and consumers throughout
the world feel the greatest level of satisfaction.
We act with an awareness that this is our social obligation.

4. Prompt Disclosure of Business Information
As we do with our stockholders, we will continue to communicate with society at large and release corporate information in a prompt,
accurate, and fair manner.

5. Proactive Efforts Towards Environmental Problems
In order to help build a world where our societies and nature can coexist, we will pursue our corporate philosophy of creation offulfillment, and we will endeavor to be environmentally friendly in all aspects of our corporate activities.

6. Activities Aimed at Contributing to Society
As an exceptional corporate citizen, we will place emphasis on our relationships with local communities and conduct activities that
contribute to these societies.

7. Our Countermeasures Towards Organized Crime
We resolutely assume countermeasures to organized crime syndicates that threaten the order and safety of civilian societies.

8. Being a Global Enterprise
As a global enterprise that has overseas facilities, we respect the cultures and traditions of each and every nation, and we pledge tocontribute to the development of the regions and countries that these facilities are located in.

9. Business Ethics
Our top levels of management will lead by example, do their utmost to manifest the spirit found within our code of conduct, maintain our
corporate structure, and strive to thoroughly apply our business ethics.

10. Resolving Problems
In the worst case scenario, if a violation of our conduct standards were to occur, our top levels of management would declare, bothinternally and externally, their stance on resolving the problem, would inquire into the causes of the violation, and would do all that they
could to prevent a recurrence of that violation.
Furthermore, we will execute our responsibility of explaining and disclosing this information to society in an accurate and prompt
manner, and, upon determining who was responsible, we will punish them without bias.

16 Annual Report 2020

Corporate GovernanceCorporate Governance Policy
We at EXEDY recognize that constructing a system of corporate governance and thoroughly carrying out compliance management
serve as the basis for management.
More specifically, we have arranged a system that monitors and audits the actions of our directors through our board of directors andour audit and supervisory board, and, by improving the functionality of our internal controls and building an organization that immediately
responds to changes in our managerial environment, we will make our management more transparent and endeavor to strengthen oursystem of governance and compliance management.

Basic Policy
1) We will strive to ensure the equality and rights of our stockholders.
2) We will endeavor to cooperate with all stakeholders outside of our stockholders, including customers, business counterparts,
creditors, the local community, employees, etc.
3) We will strive to ensure both the transparency and proper disclosure of information.
4) We will endeavor to have our board of directors properly carry out its functions and obligations so that it both makes decisions in aquick and decisive manner and remains fair and transparent.
5) We will strive to have a constructive dialogue with stockholders so that we can improve our medium to long-term business value andcontinue to grow.

Business Management Organ Related to Managerial Decision-making,Performance of Duties, and Supervision of Such (Our System of Corporate Governance)
Organizational Structure and Administration
Organizational System

Company with Audit and Supervisory Board Members

Board of Directors
Chairman of the Board

President & CEO

Number of Directors

11

Outside Directors Present

Yes

Number of Outside Directors

3

Number of Outside Directors Designated as Independent Executives

2

Corporate Auditors
Audit and Supervisory Board Present

Yes

Number of Audit and Supervisory Board Members

4

Outside Audit and Supervisory Board Members Present

Yes

Number of Outside Audit and Supervisory Board Members

3

Annual Report 202017

An Outline of Our Current System of Corporate Governance:
Matters Regarding Corporate Affairs, Appointments, Audits and Supervision,and Remuneration
EXEDY’s board of directors is comprised of 11 individuals, three of whom serve as outside directors. Our board of directors holds
regular meetings once a month, and, when deemed necessary, additional meetings are held under special circumstances, where
directors thoroughly discuss the matters at hand and make managerial decisions regarding them.
EXEDY’s audit and supervisory board is made up of four members, three of whom are outside members. These audit and supervisoryboard members, along with participating in meetings alongside the board of directors where they give advice on managerial decisions
from an auditing perspective, also supervise the board of directors in its performance of duties.
As part of our administrative strategies, we convene managing directors meetings, where six individuals from our upper management,
consisting of our president and CEO, executive managing officers, and senior executive managing officers, assemble for a corporate
review. In addition to this administration of corporate affairs, we also hold management meetings approximately twice a month, theparticipants of which include all full-time executives. At these meetings, members actively exchange their ideas and opinions, thoroughly
conducting both reviews and discussions.
Moreover, in order to carry out corporate affairs in a manner that promptly responds to any changes in our managerial situation, we
have been endeavoring to flexibly operate our business by: a.) constructing a board of directors with a small number of members, b.)
introducing our executive officer system, and c.) appointing human resources that are knowledgeable and well-informed about business
and work-related duties to executive positions.
EXEDY’s financial audits are handled by the certified public accountants Kazuhiko Tomoda, Masahisa Kinoshita and Kengo Yamamoto,who are in the employ of PricewaterhouseCoopers Aarata. These auditors perform periodic audits of our corporation as well as provide
us with consulting services regarding accounting matters.
As per our advisory agreements, our legal advisers will, even for matters related to financial affairs, enter into contracts with external
specialists, and, as the situation demands, receive any pertinent or relevant advice from them.
With regards to EXEDY’s internal control system, our Global Auditing Department, the division that performs operational audits
independent of the direct control of the company president, carries out both compliance checks and operational audits for each andevery one of our departments.

Our Reasons for Selecting Our Current System of Corporate Governance
We at EXEDY are carrying out efficient work operations and exercising prompt decision-making through the introduction of our executive
officer system, where six of our directors concurrently serve as executives managing corporate affairs. At the same time, so that we canensure transparency in all business operations, we made our board of directors consist of 11 directors and four auditors, of which six
individuals are outside executives (and of these six two individuals serve as an independent outside directors and two individuals serve
as independent outside auditors), and we have deemed that our present structure of a company with an audit and supervisory board iscurrently the optimum choice.

18 Annual Report 2020

Measures We Implement for Our Shareholders and Stakeholders
1. Our efforts aimed at invigorating the General Shareholders Meeting and streamlining the shareholder voting process
When We Send the General Shareholders
Meeting Convocation Notice

We distribute the convocation notice for the General Shareholders
Meeting approximately three weeks prior to when it convenes.

Exercising voting rights through electromagneticmeans

It is possible for shareholders to execute their voting rights online.

Efforts aimed at improving the voting processenvironment for institutional investors, such as
using a platform that allows for the electronic
execution of voting rights etc.

We are currently using ICJ Inc.’s platform which allows for theelectronic execution of voting rights.

English Summary of the Convocation Notice

We provide a summary of the convocation notice in English.

Additional Points

We are striving to manage our general meetings, so that ourstockholders can further understand the current status of ourcorporation, through using visualizations such as slides for ourbusiness reports and sign language interpreting.

2. Investor relations efforts
Holding Periodic Financial Briefings forAnalysts and Institutional Investors

We hold semiannual financial briefings in Tokyo for our institutional investors
and stock analysts.

Holding Periodic Financial Briefings for
Foreign Investors

We hold periodical briefings overseas for our institutional investors and foreign
stock analysts.

Disclosing Documents Regarding Investor
Relations on Our Company Website

On our webpage http://www.exedy.com, account settlements, theconvocation notices for our General Shareholders Meetings are available
for access. In addition, convocation notices for our General Shareholders
Meetings (summary) and fluctuations in our business performance are posted
on our homepage in English as well.

3. Never forgetting the importance of our stakeholders
Company Regulations That Always
Keep in Mind the Importance of Our
Stakeholders

By contributing to society, satisfying the needs of our customers, andimproving the well-being of our employees, we have achieved an even higher
standard as a company, and, through our perpetual corporate development,
are fulfilling our responsibility to our stockholders and other concerned parties.
We include all of the above in our management philosophy, which we put into
practice as per our code of conduct. This is distributed to all of our executives
and employees, who then familiarize themselves with its contents.

The Implementation of Environmental
Safety and Corporate Social Responsibility
Activities

We at EXEDY recognize that we have a responsibility as a corporation to take into
consideration the impact that our corporate operations have on both our naturaland social environments. Because of this, we are continually moving forward with
our environmental efforts, and we summarize the results of these efforts, which
include each and every one of our businesses, in our annual environmental report.
You can view this report at any time on our company’s website.

Additional Points

Regarding the policies and efforts that we have established toencourage the success of our female employees
We at EXEDY Group, along with moving forward with employing more womenat our production facilities, are also making efforts to encourage our female
employees to pursue opportunities in executive and managerial positions.
Furthermore, within our network, we currently have female employees serving
as directors at some of our locations.

Annual Report 202019

Regarding Our System of Internal Control
Our Approach Towards and Management of Our System of Internal Control
Our management policy includes the extent at which we fulfill our corporate responsibility, how we improve ourselves so that we can be held in highesteem by the society we live in, our corporate ideology and compliance, and our response to environmental issues.
Adhering to the above, our board of directors has resolved to implement a fundamental policy for our system of internal control that upholds all
applicable corporate laws and ordinances, and it is detailed as follows. Please note that the status of the following is reported to the board of
directors as the situation demands.

1. Managing and saving information related to the duties of our directors
We will properly manage and save information related to the execution of corporate affairs, acting in accordance with our regulations for
managing confidential information, preserving documents, and saving documents.

2. Regulations for risk management
We designate our Administrative Headquarters as the department in charge of comprehensive risk assessment, and are developing
methods to prevent losses before they happen.

3. Ensuring that our directors conduct their duties in an effective manner
In addition to holding periodic board meetings once a month, we also hold management meetings twice a month that both our full-time
directors and executives participate in. At these meetings, we have discussions and examine managerial issues, and, depending on thecircumstances, put into place a flexible system that is able to deal with the issue at hand.

4. Ensuring that the duties of our directors and employees conform to all laws and articles of association
EXEDY has established its own code of conduct, and we strive to keep our employees, directors, and executives informed about
all laws, articles of association, and company regulations. We ensure that we adhere to compliance management by combining the
aforementioned with regulations concerning the protection of whistleblowers.

5. Ensuring that all work done in EXEDY Group is done in a fair manner
Following our regulations for managing affiliates, we unify all administrative tasks pertaining to EXEDY Group at our Administrative
Headquarters.

1) System for reporting to EXEDY about matters regarding EXEDY Group directors’ execution of work duties
The manner in which work is being conducted at group companies is confirmed through monthly reports submitted by each company.
Important matters regarding how work is conducted are reported and discussed at board of directors meetings and management
meetings.

2) System for regulations regarding the management of dangerous losses for group companies etc.
Based on our risk management/compliance regulations, which are also used at our group companies, we will spread our activities
conducted to prevent losses.

3) System to ensure that the execution of directors’ work duties at our group companies is carried out efficiently
In order to materialize our midterm consolidated management plan that we have created, we are sharing our objectives and issues withthe entire group and endeavoring to ensure a system where work duties are executed effectively.

6. Ensuring that the work conducted by both directors and employees of group companies complies withboth the law and our articles of association
We distribute our code of conduct, which comes in the form of a small booklet, to all directors, executive officers, and employees,
translating its contents whenever necessary.
Based on our regulations for the management of group companies and our regulations for internal audits, our Global Auditing
Department inspects the extent to which regulations are upheld and how the organizations and systems of our group companies arebeing operated.

7. Employees will assist our audit and supervisory board members as required
Our audit and supervisory board members will, when they deem it necessary, appoint employees to assist them in their duties.

8. Assuring the independence that employees assisting audit and supervisory board members have fromdirectors
All matters concerning employees assisting our audit and supervisory board members, such as their relocation, evaluation, punishment,
etc., must first be discussed with and reported to an audit and supervisory board member.

20 Annual Report 2020

9. Ensuring the effectiveness of instructions given to employees assisting audit and supervisory board
members
When an employee is put in the service of audit and supervisory board members, this employee will not serve concurrently with anotherdepartment, and they must follow all instructions given by any audit and supervisory board members.

10. Reporting to audit and supervisory board members
1) A system for directors and employees to report to audit and supervisory board members
All directors and executives, when discovering any information that could cause considerable damage to EXEDY Group, will
immediately report these contents to an audit and supervisory board member.

2) A system for directors, audit and supervisory board members, assistants, or anyone who has received
reports from any of the aforementioned to report to audit and supervisory board members
Both executives and employees of EXEDY Group must, when requested by the audit and supervisory board to make a report
regarding matters relating to work duties, make both immediate and appropriate reports.

11. E
 nsuring that individuals who report matters to the audit and supervisory board are not subject tounfavorable treatment due to the nature of their reports
Based on our regulations for protecting whistleblowers, employees will not be dismissed or punished for reporting or speaking abouta whistleblowing matter.

12. Matters concerning policies related to liabilities handling and expenses caused by the execution ofwork duties, such as repayment procedures and the paying of expenses caused by advance payments
for the work of audit and supervisory board members
When it is requested that we, regarding the execution of work duties of an audit and supervisory board member, pay in advancefor expenses based on corporate law, any expenses and liabilities related to this request, excluding cases where it is not deemednecessary for audit and supervisory board members to execute their work duties, will immediately be processed. We set aside a
specific budget each year in order to pay for any expenses etc., which result from the execution of audit and supervisory board
members work duties.

13. E
 nsuring that that the audits of our audit and supervisory board members are being performed in an
efficient manner
Full-time audit and supervisory board members will participate in management conferences as well as all other meetings where
decision-making occurs, maintaining a system that is always able to grasp the current status of the execution of corporate affairs.

14. Our countermeasures against organized crime
As written in our code of conduct, we resolutely assume countermeasures against organized crime syndicates that threaten theorder and safety of civilian societies.

Our Basic Policy and Countermeasures Against Organized Crime
As aforementioned, we resolutely assume countermeasures against organized crime syndicates that threaten the order and safety ofcivilian societies.
In order to accomplish this, we have established a division within our company that is prepared to deal with organized crime syndicatesand is equipped to handle any unjust demands or illegal acts.
We have also included this policy inside of our code of conduct, and we have made sure to distribute it to all of our employees so thatthey can familiarize themselves with its contents.

Annual Report 202021

A schematic of our system of corporate governance

22 Annual Report 2020

Board of Directors Meetings and Management Meeting Schedules
In the current fiscal year, we held 12 Board of Directors Meetings and 24 Management Meetings to efficiently operate business and,in addition, held six Risk Management Committee Meetings to respond to group-wide problems and discuss recurrence prevention
measures. The Global Auditing Department systematically carries out both compliance checks and operational audits for EXEDY and its
group companies and regularly reports to audit and supervisory board members.
Full-time Corporate Auditors attend the Management Meeting and the Risk Management Committee to oversee the company’s
operating performance. In addition to a contact point for whistleblowers, we have a corporate ethics consultation desk in place for theentire EXEDY Group.
Further, we opened the “EXEDY Hotline”, a consultation desk where employees can report matter to an external lawyer directly. With
this initiative we try to prevent and detect illegal activities in an early stage.
In order to thoroughly disseminate this information, we clearly mention the consultation desk in the “EXEDY Code of Conduct”, abooklet distributed to every employee of the entire EXEDY Group, to improve awareness regarding compliance.

Total Amount of Remuneration for Directors and Audit and Supervisory Board Members

Category

NumberRemuneration Amount

Directors(Outside)13(3)

235 million yen(17 million yen)

Audit and Supervisory Board Members(Outside)4(3)

35 million yen(17 million yen)

Total Amount(Outside)17(6)

270 million yen(34 million yen)Note)
1.The table above includes three directors who retired at the conclusion of the General Shareholders Meeting held on Tuesday, June 26,
2019. One unpaid director who retired on October 31, 2019 is not included in the table above.
2.The remuneration amount shown above does not include the salary and bonus paid as employees to directors who serve concurrently
as employees.
3.The upper limit on total compensation decided at the 56th General Meeting of Shareholders held on June 27, 2006:
Directors
Annual Amount
300 million yen
Supervisors
Annual Amount
60 million yen
4.The amounts shown above include directors’ bonuses during the fiscal year under review.
5.Apart from the above, a cost of 12 million yen was appropriated in relation to remuneration by stock option to seven directors.

Analysis and Evaluation of the Board of Directors’ EffectivenessWe conducted a questionnaire at the FY 2017 Board of Directors Meeting regarding the effectiveness of our Board of Directors. Basedon the results, we determined that the effectiveness of the Board of Directors has been ensured. At EXEDY, we will continue ouractivities to further improve the effectiveness of the Board of Directors.

Corporate Ethics Consultation Desk
Our company has established three kinds of consultation desks to deal with employees’ problems and questions: an internal
consultation desk, a contact point for whistleblowers and external consultation desk. After confirming the facts, we respond promptly
when problems are confirmed.

Internal Consultation Desk	At this desk we help employees with matters concerning the Code of Conduct, ethics, working environment, etc.

Whistleblowers Contact Point
Here we deal with violations of laws and company regulations.

External Consultation Desk “EXEDY Hotline”
Established at an external law firm, can be contacted by telephone, email and letters.

Annual Report 202023

Corporate GovernanceRisk Management

Our approach
The EXEDY Group has established the following action guidelines for risk management:
1.Prevent occurrence of emergency situations, take preventative measures to minimize damage, make preparations in advance2.In the event of an emergency, we will respond with quick initial action, minimize damage while promptly making all necessary effort fora speedy recovery
To ensure a reliable implementation of the guidelines, we determined the necessary measures and procedures. Further, our groupcompanies comply with the concerned regulations, procedures and processes.

Organization
Ultimate responsibility of our company’s risk management is assigned to the
President & CEO, while the Executive General Manager of the Administrative
Headquarters is charged with overseeing risk management and the General
Affairs Department is assigned to supervise Risk Management. The Risk
Management Committee may be convened whenever necessary.
The Risk Management Committee consists of the President & CEO, (Senior)
Executive Managing Officers and Audit & Supervisory Board Members.

The Risk Management Committee Schedule
In FY2019, the Risk Management Committee gathered six times to respond to group-wide problems and discuss recurrence prevention
measures. Important matters were reported at the Board of Directors meeting.
Full-time Corporate Auditors attend the Management Meeting and the Risk Management Committee and to oversee the company’s
operating performance.

Specific Action
Initiatives Regarding Information Security
Basic Approach
In order to properly protect confidential information and personal information from threats such as cyber attacks, we have developed
and deployed policies and regulations concerning information security. By periodically educating employees, we strive to strengthen our
information security and prevent information leakage.

Information Management
With the support of external experts with a deep knowledge of cyber security and internal fraud, we established a system to respondto information security incidents and advance warnings. While sharing information with external organizations, our company, including
its affiliates, works to make improvements to this environment. We also conduct regular targeted e-mail training for all employees,
provide education regarding personal information protection and security, and promote thorough personal information protection andinformation security.

Business Continuity Management (BCM)
Although our company did not suffer any major damage during the Great East Japan Earthquake of March 2011, all employees at the
Kawagoe Plant, where a lower scale 5 on the Japanese intensity scale of 7 was registered, had to be evacuated temporarily. Fortunately
our plant was not damaged, however after the earthquake we implemented necessary measures, such as night-time production inaccordance with automobile manufacturers’ production stops and scheduled blackouts, etc. Based on the lessons learned, EXEDY,
keenly aware of the importance of quick and reliable business recovery, has incorporated a strengthened BCP Crisis Management
Program in its Consolidated Medium-Term Management Plan and is structuring an organization that can cope well with emergencies.

■ Activities

Since the Great East Japan Earthquake, we introduced BCP training in addition to the company-wide evacuation drill held every March.
Through this training in order to quickly complete the process from setting up a countermeasure headquarters to the establishment ofa business recovery system, cooperation among departments is strengthened. In addition, as a regular activity, we conduct periodic
training and information sharing, led by the Fire and Disaster Prevention Committees at the Headquarters in Neyagawa and Ueno
Division and local fire departments.

24 Annual Report 2020

Corporate GovernanceCompliance

Our approach
Through our business activities in different regions around the world, we found it is essential to comply with laws of each country in an
quick and reliable manner, and to have a transparent approach to management in order to gain the trust of all stakeholders.
With “fairness and transparency” as our keywords and thorough compliance management and a corporate governance system atbasis of our operations, we organize our company in a way that enables us to quickly respond to changes in the business environment,
improve internal checking functions and carry out business activities with an understanding of the laws relating to our work.

Excerpt of our CSR Policy
1.Compliance: Fairness and Transparency
We will uphold a spirit of compliance with the laws of each country and region, and will conduct businessrecognizing that the fundamental rule for corporate activities is to ensure that competition is fair, transparent,
and free.

Activities
Our employees learn about following compliance-related laws and rules through reading the EXEDY Code of Conduct: We emphasize
the importance of a speedy Hou Ren Sou (Report, Contact, Consult) from subordinates to superiors when it comes to learning about
laws relating to our daily work. It enables us to acquire knowledge, find the right stance and comply with laws and regulations.
•Antitrust law•Subcontracting law•Intellectual Property Right (Patents, Trademarks, Copyright and Know-how)•Insider trading•Personal information protection•Rules Regarding Entertainment and Gifts•Our Response to Illegal Activities and Organized Crime

Annual Report 202025

Health and Safety

Safety and Environment Policy

Basic Policy
Ensuring the safety of our employees, as well as preserving the environment, serve as the foundation of our corporate activities andsocial responsibility (CSR). While promoting health and with safety as our highest priority, we will strive to create an environment that isgentle to earth.

Safety and Health Action Policy
1.If our employees are not safe, our company cannot do business. In order to achieve ‘zero defects’ and ‘zero hospital visits’, we will
adhere strictly to health and safety laws and internal regulations.
2.We will continuously undertake Pika Pika and 5S5T activities to maintain our equipment and workplace.
3.By creating a healthy and comfortable workplace, we prevent work related illness and maintain and promote physical and mental
health.
4.We will continue to carry out activities to eliminate all dangers and harmful factors in the workplace speedily, with face-to-facecommunication.
5.When an abnormality occurs, we will thoroughly follow our STOP, CALL and WAIT procedure.

Environment Action Policy
1.We will comply with laws and stakeholders’ requirements and prevent environmental pollution.
2.In the areas of production, products and service, we will implement and continuously improve our environmental management system
to reduce environmental impact.
3.We will thoroughly carry out energy and natural resource conservation and limit their use and emissions to a minimum.
4.In cooperation with local communities, we will actively support and participate in nature and environmental protection activities.
April 01, 2019
President & CEO

26 Annual Report 2020

Health and Safety

Health and Safety Organizational Structure

We at EXEDY have constructed a system headed by our Central Health and Safety Committee that supervises and manages all healthand safety activities.
Furthermore, matters decided upon by the committee will be implemented as specific programs under the supervision of those incharge of safety at each and every one of our locations, who will relentlessly endeavor to improve these programs.

Annual Report 202027

Health and Safety

Health and Safety Activities

Based on the policy “Our corporation cannot exist without safety”, we promote activities to maintain and improve employee safety toachieve “zero accidents”.

Cultivating Safe Workers
Safety First is our company policy. No matter what it is that we do, at the EXEDY Group we make our judgments with safety being the
top priority.

Activities
Safety Basics Education
A safe worker possesses the following qualities:•A familiarity with all safety rules•An ability to predict when safety hazards will occur•A propensity to stop activities when something is either unsafe or acting irregularly
To enable our employees to carry out their work in the plants in absolute safety, and predictand prevent danger in advance, we offer training consisting of safety lectures and practicaleducation in our safety dojo, a training room equipped with 17 simulators that were madebased on accidents that actually occurred. Employees who pass this training are certified asa safe workers, and receive “Safe Worker Certificate”. We also get requests from outside
the company to provide this highly valued training.
In addition, in 2018, we renewed the ‘working at heights training room’ to ensure that workat height is carried out safely.

Basic Life Support Training Course
Since 2012, first-aid instructors have been carrying out basic life support training courses
and more than 1000 employees have participated in the course. We will continue promoting
this activity in the future so that EXEDY employees can protect lives, not only at the company but also in daily life.

Risk Assessment Training
We have set up a risk committee to promote safety improvements in the workplace environment and are conducting activities to identify
hazards in advance.

Activities (overseas)
Global Safety Summit
Once a year, we hold the EXEDY Global
Safety Summit to raise safety awarenessthroughout the entire EXEDY Group, sharecases of accidents of each company andconduct cross-check activities.

Global Safety Instructor Training
Three times a year we hold the Safety Instructor Training. We invite safety staff andplant managers from overseas affiliates and share company-wide safety and healthactivities. We provide English and Chinese language support.

Overseas Go-and-See Activities
Twice a year we carry out priority activities to prevent accidents at overseas bases, andprovide general guidance on safety.

28 Annual Report 2020

Various Training and Education
The EXEDY Group conducts training and education on a daily basis to prevent accidents and to minimize damage in case of an emergency.

Various Training
Company-wide Earthquake Disaster Drills
Every year in March, we conduct a company-wide earthquake disaster drill, to develop an organization that is able to respond calmly
and smoothly in case of an emergency. In the first part, we set up an in-house firefighting department and conducted firefighting andlifesaving activities. In the second part, we set up a disaster countermeasure department to train to collect information and report on thesituation, and prepare plans to restart production.

Fire Fighting Drills
In addition earthquake disaster drills, we regularly conduct firefighting drills for all new employees joining the company.

In-house Firefighting TeamWe have established a self-defense fire brigade at domestic bases and sales offices. We
carry out regular training such as table-top exercises and training with the portable pump.
In addition, the fire prevention committee members participate in in-house seminars onfire prevention and disaster prevention knowledge, held twice a year, to solidify the basisof disaster prevention knowledge.

Evacuation Training at Affiliates (EXEDY Logistics)
We carry out actual evacuation training after confirming the location of emergency bells,
fire extinguishers, fire hydrants, operating the fire shutters, checking evacuation guidance
lights (evacuation doors).

Evacuation training

Education
Traffic Safety Lectures
As part of our traffic safety education, we invite instructors from police stations anddriving schools, and hold traffic safety workshops at the headquarters three times a year.
Employees participate on a voluntary basis. Every time, over 200 employees participate
and learn not only about driving a car, but also about rules that apply when riding abicycle and safety protection when riding a motorcycle etc.

Annual Report 2020

29

Health and Safety

Our Health Management

Based on the policy “Our corporation cannot exist without safety”, we promote activities to maintain and improve employee healthto achieve “zero illness”.

Course of Action
By creating a healthy and comfortable workplace, we prevent work related illness and maintain and promote physical and mental health.

Our Health Initiatives
At EXEDY, we carry out various activities, with the goal of increasing the number of people who take necessary actions themselves tomaintain and improve their health.

ClinicNursing staff is stationed at the on-premise clinic to carry out health checks of employees and prevent serious illness.
Medical interviews are carried out by the company nurse or psychosomatic physician to ensure our employees are both physically andmentally in good shape.
We also provide oral health care.
A dental hygienist is stationed at the
Headquarters’ clinic’s dentistry and employees
can receive treatment by a dentist. We also
conduct dental checkups as a part of ourroutine health examinations for all of ourfactory employees, to enable early detectionand early treatment of any possible problem.

Education
For our employees to develop an interest in and gain a correct understanding of health management and mental health care, we carryout stratified health management education and mental health care education adjusted to the employee’s lifestage.

Promoting Sports
We have a gymnasium and gym facilities atour company premises that our employees
can use freely.
Since 2016, we organize global sports events
to promote sports throughout the entire
EXEDY Group and improve communication.

Communication with others
Since 2011, we hold summer festivals at our
Headquarters, Ueno Division and Kawagoe
Plant, for our employees, their families andmembers of the local community to enjoy
together.
In addition, we provide support to the social
gatherings held in each department. We aim
to improve communication within departments
and contribute to the creation of a healthy andcomfortable workplace.
Through various activities, we will continue topromote the physical and mental health of ouremployees.

30 Annual Report 2020

2020 Certified Health and Productivity Management Organization (White 500)
On March 2, 2020, our company was recognized under the 2020 Health and Productivity
Management Organization Recognition Program (White 500), organized by METI in
cooperation with the Nippon Kenko Kaigi.
Under the recognition program, the Nippon Kenko Kaigi examines large enterprises, SMEs
and other organizations engaging in initiatives for overcoming health-related challenges inregional communities or for promoting health-conscious activities led by the Nippon Kenko
Kaigi, and recognizes outstanding enterprises engaging in efforts for health and productivity
management.
Based on the policy “Our corporation cannot exist without safety”, we will continue topromote activities to maintain and improve employee health to achieve “zero illness”.

認定証（大規模法人部門）
法人名株式会社エクセディ

貴法人は、従業員の健康管理を経営的な視点で考え、戦略的に実践する「健康経営」の取組が優良であると認められました
よって、ここに「健康経営優良法人 2020
（大規模法人部門）」として認 定 します
経済産業省及び厚生労働省と共に、今後一層取組を推進されることを期待いたします
２０２０年３月２日

日本健康会議200319Annual Report 202031

Quality

Quality Policy

Basic Policy
We will continue to provide the highest quality levels of products and services that customers around the world appreciates. It is oursocial responsibility.

Course of Action
We will continuously enhance the quality management system to achieve the highest levels of customer satisfaction (CS); we willachieve zero defects and be “the company where zero defects are the standard”.
1.We value the voice of our customers and subsequent processes, endeavor to attain the highest levels of quality from upstream
process and respond with sincerity at all times.
2.We always act speedily, based on “Go & See” and adherence to the rules.
3.We always refine and improve our traceability capabilities.
4.So that zero defects are produced, we will:a.) Control progression through stage transitions※b.) Fully adhere to manufacturing change managementc.) Improve nonstop through QCC activities
April 01, 2019
President & CEO※The activity of designing product drawings at the Development Department and designing processes at the Production Engineering Department thatallow easy manufacturing of quality products in the Manufacturing Department.

32 Annual Report 2020

Quality

Our Commitment to Quality

Under the Quality Policy and the Detailed Conduct Regulations described below, the EXEDY Group, as a specialized manufacturerof drivetrain components such as clutches, torque converters, AT parts, transmission for construction and industrial vehicles andmotorcycle clutches, etc., is committed to carry out its production activities maintaining the highest quality and manufacturing
capabilities, and provide reliable quality in response to customers’ individual needs.

Our approach
In order to implement this Quality Policy, all employees engage in their work with the following Detailed Conduct Regulations in mind.

Detailed Conduct Regulations
So that we may provide our customers with products and services that give them the highest level of satisfaction, we will continue
to ensure that our products are always manufactured with safety as a priority, and that their quality meets the demands of all ourcustomers.
1. Guaranteeing Quality
1) So that zero defects are produced, we will:•Control progression through stage transitions•Fully adhere to manufacturing change management and the handling of abnormal conditions2) We will act based on the idea of guaranteeing our own process.
This means:•We will not take in defects from any preceding processes•We will not create defects within our own process•We will not pass defects on to any subsequent processes3)We will act based on the idea that the subsequent process is the customer.
This means:•We will work such that there is no need to go back and do it again•We will work once we have obtained a clear image of what it is that will be outputted, and will
eliminate time wasted by having to redo work
•We will summarize what is needed, and improve our own work
•We will output products that both please and satisfy our customers4) We will thoroughly use statistical quality control (SQC) and guarantee the quality of our products.
This means:•We will not rely on our own experience, intuition, or gut feeling•We will use statistical methods, such as the seven basic tools of quality (QC7), in response to
any problems•We will always base our quality judgments on data5) In order to achieve the four points listed above, with a sense of speed, we will strive to work in cooperation with not just those in our
department, but also with our affiliates and customers.
2. Market Information
1) We will establish systems that are always able to acquire information about the value of both our products and those of ourcompetitors.
2) We will immediately relay all feedback regarding customer satisfaction and consumer requests back to EXEDY

Annual Report 202033

Quality

Zero Defect Activities

At the EXEDY Group we promote zero defect activities based on the idea that “zero inprocess defect lead to zero customers claims and will results in zero market claims”.
These activities involve not only the Manufacturing Department but also Design,
Production Engineering, Quality Control, and Inspection Departments, as well as otherrelated divisions. We work together with the entire company to achieve “Zero Defects”
on an everyday basis.
The progress of these activities are reported to the top management on a regular basis,
raising the motivation of the members.

AT Senior Executive Managing Officer Report
Meeting

Meeting MT/TS Senior Executive Managing
Officer Report Meeting

ASA ZERO Activities
As a part of our “Zero Defect Activities”, we
conduct “ASA ZERO Activities” every day tobe able to take quick measures whenever adefect occurs, and the related departments(Manufacturing, Production Engineering, Quality
Control) carry out patrols.
We have expanded these activities globallyand we are working to achieve “Zero Defects”
at every base of the EXEDY Group around theworld.

Zero Defect Activities
ASA ZERO Activities
Every morning between 9:00 and 10:00 related departments(Manufacturing, Quality
ASA Zero activities
Control and Production
Engineering) carry out
company-wide inspections.

To prevent everyday
defects and make quick
decisions regarding
measurements.

Sharing the latest information face to faceJapan

Thailand34 Annual Report 2020

China

Indonesia

Malaysia

“Quality Month” Activities
At the EXEDY Group, every year in November during “Quality Month”, we carry out activities based on a company-wide theme that
contributes to the quality awareness of all our employees. To raise the employees’ awareness, the Executive General Managers of each
Headquarters give quality lectures, and we conduct activities so that both departments directly and indirectly related to manufacturing
can achieve “zero defects”.

Manufacturing Change Management Handbook
The Manufacturing Change※1 Management Handbook was first published in July
2014 and handed out to all employees, including employees of domestic andoverseas affiliates with the aim of ensuring thoroughness in Manufacturing ChangeManagement※2 to achieve the “Zero Defects” goal specified in the Quality Policy.
In August 2014 it was handed out to employees of more than 270 domesticcooperating companies. The Handbook is effectively being used as a tool toappropriately carry out Manufacturing Change Management.
Besides Japanese, the Handbook is available in 10 languages including English,
Portuguese, Chinese, Thai, Spanish, Indonesian, Hungarian, Vietnamese and Malay
and distributed to local staff of overseas affiliates and cooperating companies, in aneffort to globally strengthen our Manufacturing Change Management.
It would be ideal if we could continuously produce under the same specified
manufacturing conditions, however, in reality there are always changes in the
manufacturing process. Therefore, it is necessary to confirm that the quality levels
before and after a manufacturing change are equal to or higher than than usual,
before we start production.
Our Manufacturing Change Management Handbook includes the following easy-tounderstand guidelines in case manufacturing change occurs:•Different kinds of manufacturing change•Points of concern in case of a manufacturing change•Solutions
This handbook is updated once every two years, reflecting feedback from eachcompany using the handbook, making it more convenient to use.

※1 What is Manufacturing Change?
We speak of manufacturing change when a change occurs to the 4M※ related to the environment where products are made ascompared with the initial production plan.
•Man: … when a regular worker needs to be replaced by a worker less experienced, etc.
•Material: … when the raw materials for a product change, etc.
•Machine: … when equipment is replaced or restarted after large-scale maintenance, etc.
•Method: … when work procedures or processing methods are changed, etc.
※2 What is Manufacturing Change Management?
Manufacturing Change Management is the history management, verification and confirmation of quality beforehand in order to prevent
various problems occurring during a manufacturing change.

Annual Report 202035

Environment

Environmental Management

Environmental Management System
Here at EXEDY, we have constructed a system of management known as the EXEDY Global Clean Committee, otherwise known as theEGC, that presides over all employees responsible for environmental matters.

ISO14001 Certification Acquired on June 16, 2000

Environmental Audit (ISO 14001)
Internal Audit: carried out at all sites between October and December 2018.
External Audit (regular examination): carried out between February 10 and February 14, 2020 (organization: DQS Japan).

36 Annual Report 2020

Costs of and Investments in Environmental Activities and Environmental Accounting
We display here both the costs of environmental conservation as well as the economic and environmental results obtained from ourconservation activities so that we can determine how to efficiently proceed with our conservation efforts.

Cost of Environmental Conservation for the 2019 Fiscal Year
(JPY Million)

Item

Investment

Cost

Anti-pollution Measures

875

Introduction of waste water treatment equipment andenvironmental installations

Preservation of the Global
Environment

39

34

Solar panels, switch over to LED lighting, renewing air
conditioning

Recycling Natural
Resources

0112

Waste disposal, recycling

Management

015Monthly environmental events; periodic ISO inspections

Research Activities

0

2,904

The development of fuel-efficient products and recyclable
materials; reductions in weight.

Social Activities

07

Subtotal

47

3,146

Total

Details

Planting of trees around our offices; environmental
education

3,193

The Economic Benefits and Amount of Waste Reduced from Environmental Conservation
Economic Benefits(JPY Million)

Item

2017

2018

2019

CO2 Emission Reduction Costs(Compared to Previous Year)

6

0

34

Reduction of Waste Disposal Costs(Compared to Previous Year)

38

0

16

Subtotal

44

0

50

2017

2018

2019

651

796

512

2017

2018

2019

49 tons

28 tons

23 tons69.3 kilotons of CO2

71.1 kilotons of CO2

65.7 kilotons of CO2

Item
Selling off Recyclable Waste
Quantity of Waste and Emissions Reduced
Item
Amount of Industrial Waste
Discharged*
CO2 Emissions* Amount of Industrial Waste does not include recycled waste.

Annual Report 202037

Environmental Risk Management
We carry out exercises with a scenario specified for each location, to prepare for accidents and emergency situations that can lead toenvironmental pollution. We clarify procedures and conduct training regularly, and familiarize ourselves with the procedures and improvethem.

Example of an Emergency Situation and Response Training
Chemical Substance Leakage Response Training
At least once a year, we conduct training for each facility, based on an emergency response flow.
Example: Oil Leakage from a Delivery Truck

Headquarters:
Oil leakage from delivery truck

Removing chemical substancesfrom the gutter

Applying oil processing agent

Chemical leakage response training (carried out once a year for equipment using chemical substance)

Emergency response
flow

Training carried out based on emergency response flow

38 Annual Report 2020

Checking emergency
equipment stock

Cleaning the chemical substanceEnvironment

Environmental Performance Data

At EXEDY Group, we proactively implement measures to reduce CO2 emissions and waste in our products and the production process.

Our Successes in 2019 and Our Targets for 2020
Objective2019
Our Target

2020

What We Accomplished

Our Target(as per the energy
conservation law)

Base Unit: 57.8 tons of
CO2/100 Mil. JPY

Base Unit:
1.4% increase relative toprevious year
55.4 tons of CO2/100 Mil.
JPY○

Base Unit: 54.9 tons of
CO2/100 Mil. JPY

Promote the Use of the3Rs*2 to Reach Our
Goal of Zero Emissions

Base Unit: 2.66 tons of
CO2/100 Mil. JPY

Base Unit:
3.6% increase relative toprevious year
2.48 tons of CO2/100 Mil.
JPY○

Base Unit: 2.46 tons of
CO2/100 Mil. JPY

To Develop Productsthat Improve Fuel
Efficiency

The development of a variety
of fuel-efficient products

Mass production and delivery
complete○

The development of a variety
of fuel-efficient products

Reduce, Abolishand Control the Useof Environmentally
Hazardous Substances

Continue to base ourenvironmental managementon PRTRs・Uphold laws andregulations for products andthe environment・Strengthen
our system for managing
the chemicals used on our
products

Reported to government and
JAPIA*4
Emergency response training○

Management based on
PRTR
Comply with environmental
regulations
Strengthen product chemical
substance management
system*1 Basic Unit: CO2 emissions ÷ sales (in hundreds of millions of yen)
*2 3Rs: Recycle, Reduce, Reuse*3 PRTR: Pollutant Release and Transfer Registers (A system used to gather and disperse information on the release of toxic substances fromindustrial facilities etc. to the environment)*4 JAPIA: Japan Auto Parts Industries Association

Annual Report 202039

Material Balance
In order to limit the energy and materials we use for manufacturing our products, we visualize the environmental burden of our
production process. Knowing the exact numbers helps us reducing our environmental burden.

Amount used and purchased

EnergyPurchased Materials Water

Item

Unit

2013

2014

2015

2016

2017

2018

2019

Electricity

1000kWh

140,132

140,691

135,661

140,775

146,721150,999

139,553

Kerosene

kl

208

222

185

195

170

140

120

Gasoline

kl

110

106

104

90

91

85

75

Diesel

kl

201

259

118

166

129

165

166

City gas1000 m3

90

88

96

82

53

35

31

LPG

tons

755

738

658

607

595

552

509

Steel

tons

111,451

121,933

116,544

125,967

129,345

131,677

127,816

Casting

tons

11,34812,296

13,17812,751

11,804

11,51910,652

Forging

tons

12,983

14,663

15,402

15,317

16,012

16,515

15,134

Friction
Materials

Mil.
Facings

8.2

8.4

12.5

12.1

11.8

11.0

10.1

Tap Water

1000 m3

150

138

126

120

131

134

132

Industrial
Water

1000 m3

154

149

170

138

114

104

104

Amount Recycled(Unit: tons)

Scrap (Recycling)
Within EXEDY

2013

2014

2015

2016

2017

2018

2019

14,037

14,451

12,075

12,397

13,196

12,874

11,376

Amount of Waste Discharged and the Basic Unit (base year)
Emissions(Kiloton)

80.0

Basic Unit
Relative to ʻ07

96%60.0 66.5

Relative to2007 (%)

CO2 Emission

100%

100%

95%
59.4

57.4

60.1

59.3

58.0

64.0 63.2
90% 89%

89%

40.0

87%

86%

55.4
83%

56.2

55.9

56.7

84%

84%

85%

55.4

Water Discharged(Kiloton)Relative to ʻ07

4.00

69%
4.96

3.00

20.0
59.1

55.7

64.7

64.0

65.0

67.3

67.7

64.6

66.9

69.3

71.1

65.7

'07

'08

'09

'10

'11

'12

'13

'14

'15

'16

'17

'18

'19

0.0

70%

61%

58%

57%
48%

3.41

3.19

2.00
1.00

68.0

64%

72%

4.24

83%
80%

100%

86%

5.00

90%

Basic Unit

100%
6.00

75%
51%

51%

52%

50%

2.52

2.51

2.60

2.48

50%

3.55
3.01

2.88

2.38

2.81

25%

5.06 3.92 3.00 3.48 3.21 3.85 3.41 2.78 3.27 3.00 3.11 3.26 2.94
0%

0.00

'07

'08

'09

'10

'11

'12

'13

'14

'15

※1 Source of CO2 conversion factor of electricity: Japan Auto Parts Industries Association 0.453 t CO2/1000 kWh※2 Basic Unit: CO2 emissions or industrial waste ÷ sales (in hundreds of millions of yen)
※3 Japan Auto Parts Industries Association Activities in accordance with the 8th "Voluntary Environmental Action Plan"

40 Annual Report 2020

Relative to2007 (%)

Water Discharged

'16

'17

'18

'19

Amount Discharged
Electricity[1000 kWh]

Headquarters

30,132831

14,481

32,62818.4

Ueno

106,913

1,511

49,9433,442

4.0

Kawagoe

1,518

164

851

95

0.0

Hiroshima

991

3

451

304

0.8

139,553

2,509

65,726

36,46923.2

Subtotal

Fuel Consuption CO2 Emissions[tons of CO2]
[tons of CO2]

processed Waste [tons]

Location

Recycyled

Landfill

Reduction effect (2007 base year)
CO2
Emissions
Basic Unit

17% reduction

Waste
Basic Unit

50% reduction

Amount of Chemical Substances Discharged and Transferred
PRTR Subject Chemical Substance (FY2019)

Location

Headquarters

Ueno
Division

Class I Designated Chemical
Substance

AmountDischarged

No.

Name

Atmospheric
Emissions384

1-Bromopropane

80

Xylene384

Consumed

Transferred
Industrial
Waste

2,200

0

0

870

0

0

1-Bromopropane

29,00000151

1, 3 - Dioxolane

1,100

0

0

80

Xylene

19

0

0

296

1, 2, 3, 4 -Trimethylbenzene

5.3

0

0

Kawagoe Plant, Hiroshima Plant: not applicable
Regarding Environmental Reports•This report covers the domestic production bases: EXEDY Headquarters, Ueno Division, Kawagoe Plant and Hiroshima Plant.
Preparing this report, we referred to the Environmental Report Guideline (2018 Edition) issued by the Ministry of the Environment.
The report covers the period from Sunday, April 1, 2018 to Sunday, March 31, 2019. However, matters from other periods that were deemed necessary,
have been included as well.
•Published: June 14, 2019

Annual Report 202041

Environment

Efforts to Reduce Environmental Impact

Efforts to Reduce Environmental Impact in Product Development
Development of Low Fuel Consumption Products
We at EXEDY have our sights set on eco-friendly product development, and are working
to make products that contribute to smaller, lightweight, and fuel-efficient vehicles.
In addition, we are contributing to the creation of societies that use vehicles in anenvironmentally friendly manner, with many of our products equipped within hybrid, plugin hybrid, and other eco-friendly vehicles.

Our Ultra Thin Flywheel
Damper for Hybrid Vehicles

Our Efforts to Reduce Energy Consumption and CO2 Emissions Resulting from Tests Run During ProductDevelopment (Development Headquarters)
In order to contribute to our society and make products that please our customers, we, in 2015, introduced our transient dynamometer,a testing machine that simulates the conditions of an actual vehicle, and we have actively been developing products that can handle
reduced CO2 emissions and improvements in fuel efficiency.
We also have been moving forward with energy conservation at our currently existing
facilities, carrying out energy-saving design that includes a switch from hydraulic powersources to electric ones and the establishment of regenerative power mechanisms.
While maintaining required functionality, we have been able to make improvements topower consumption and keep it below 10%. In addition to this, we have been able
to reduce power consumption by 20% by moving forward with switching each of our
testing facilities over to LED lighting, all the while making sure that the rooms remain
appropriately lit for the work being done.

Transient Dynamometer Testing Equipment

Efforts to Reduce Environmental Impact in Our Business Operations
Renewal of waste water treatment facility at the Headquarters
In September 2017, we renewed the waste water treatment equipment at the EXEDY HQ
Plant to process the waste water generated in the plant and discharge it to the sewage
system. (total construction cost approx. 40 million yen)
Processing the waste water inside the plant ourselves not only enables us to reduce theamount of industrial waste generated, but also allows us to discharge water with a higher
quality than the established sewage water quality standard.
Before discharging the water, through activated carbon filtration and coagulating
sedimentation processes in our waste water treatment facility, the water is clean enoughfor fish to live in. Next to our waste water treatment facility, we actually keep fish in an
aquarium filled with processed waste water.

42 Annual Report 2020

Chemical Substance Regulations
In order to comply with environmental laws and regulations, prevent environmental pollution and reduce risks, we have introduced
an evaluation system before adopting chemical substances and work to reduce environmental impact.

Chemical Substance Management

Efforts to Reduce Environmental Impact in Our Purchasing and Transportation
Efforts to Reduce Environmental Impact in Our Business Purchasing
Green Procurement Guidelines (Outline)
Our Request to Cooperating Companies
1.Compliance with Ordinance and Regulations etc.
2.Establishment and Maintenance of Our
Environmental Management System
3.Management of Chemical Substances
4.Environmental Efforts in Our Business Operations
A. Reduction of Greenhouse Gas Emissions
B. VOC Reduction
C. Reduction of PRTR Substance
D. Promotion of Waste Reduction and Recycling
E. Reducing Impact on Water Resources and Water Quality
5.Management of the Supply ChainControl No.:

Green Procurement Guidelines

REFERENCE ONLY
Revised on June 22, 2015
Revised on October.7.2013
Established on May 6, 2004

Safety, Health＆Environment
Department

EXEDY Corporation

Efforts to Reduce Environmental Impact in Our Transportation (Streamlining Transportation Efficiency)
In order to reduce CO2 generated in the transportation process of products, we work together with our affiliate EXEDY Logistics
Co., Ltd. to improve packaging and packaging materials to improve loading efficiency, and we are continually looking to implement
improvements such as shorter transportation routes, etc.

Annual Report 202043

Activities Aimed at Contributing to Society and Preserving Biodiversity
Visiting Lecture ISO14001 for Kids
We support the activities of ISO14001 for Kids, an initiative of Mie Prefecture and every
year we visit elementary schools in Mie to give lectures. The children who participate in the
program, work on conservation of energy and resource in their homes with cooperationfrom their families.

Wall Surface Greening Activities - Kawagoe Plant
As a part of the greening activities at the
Kawagoe Plant, the plant’s wall surface isbeing used to cultivate fruits. In FY 2017,
employees cultivated grapes, kiwis, etc.,
and harvested the fruits that grew on thewalls. Through these activities we raise our
employees’ environmental awareness andcontribute to CO2 reduction, while enjoying
the fruit that we grow ourselves.

44 Annual Report 2020

Supply Chain

CSR Guidelines for Cooperating Companies

At EXEDY we believe CSR efforts throughout the automotive industry’s supply chain are of vital importance, if we want to keep
developing in a way that is sustainable to earth and society. Therefore, in May 2017, we established the “CSR Guidelines for
Cooperating Companies”. We ask our cooperating companies to comply with these guidelines and to forward them to their suppliers.

OutlineⅠ.Guidelines
Ⅱ.EXEDY’s Corporate Philosophy and CSR Policy
Ⅲ.Basic Procurement Policy
Ⅳ.CSR Guidelines for Cooperating Companies
1.Compliance
2.Human Rights and Labor
3.Local and Global Societies
4.Share with Your Suppliers

Respect for Human Rights
Regarding the following eight items stipulated in CSR Guidelines for Cooperating Companies, we request that cooperating companies
carry out activities and education, etc. to respect human rights.
1.Elimination of Discrimination
2.Respect for Human Rights
3.Child Labor
4.Forced Labor
5.Wages
6.Working Hours
7.Dialogue and Consultation with Employees
8.Safe and Healthy Working Environment

Annual Report 202045

Supply Chain

Initiatives Involving Our Suppliers

Environmental Action
In order to respond to environmental problems in our business activities, we havebeen continually working on improving our environmental management system sinceacquiring an ISO 14001 certification. In order to implement production with consideration
for the environmental impact, we realized that the management of the entire supply
chain is indispensable. Therefore, we established the “Green Procurement Guidelines”
in May 2004. We revise it in accordance with changes in domestic and international
environmental regulations and we ask our affiliates to cooperate with the company’s
initiatives and policies in environmental conservation activities throughout the supply
chain.

Green Procurement Guidelines
1.Basic Environmental Policy
2.Management of Specific Substances
3.Our Request to Cooperating Companies
A. Compliance with Ordinance and Regulations etc.
B. Establishment and Maintenance of Our Environmental Management System
C. Handling Specific Substances

Activities
1.Dealing with companies that are yet to acquire ISO 14001 certification
We request self-audits regarding environmental initiatives for cooperating companies that have not yet acquired ISO 14001. The
cooperating companies that do not meet the desired standards are asked to improve and hereby we are able to raise the overall level.
2.Promoting Green Procurement
1) We conducted a survey among cooperating companies and held a briefing session regarding management of chemical substances
for those companies that need further understanding of environmental management. It was held in January 2017 and 82
companies participated.
2) We ask our cooperating companies for their cooperation with green procurement at the annual Purchasing Guidelines Briefing.
3) B ased on customer request, we conduct surveys for the presence of specific substances such as phthalates and/or PFOA in
procured products.

Preventing Bribery in Our Supply Chain
In order to promote fair and transparent corporate and procurement activities, we have set the following two points on corruption
prevention in our “CSR Guidelines for Cooperating Companies”. We request that all cooperating companies understand and follow
them.
1.We carry out all political contributions and donations, etc. abiding by each country’s respective laws and endeavor to build fair andtransparent relationships with governments and administrations of these countries.
2.We shall neither offer nor accept entertainment, gifts and money with the objective of gaining profit in an unfair manner.
As a part of our education, the Code of Conduct is distributed to all employees and we hold reading sessions to gain a thoroughunderstanding.
Employees are expected to politely refuse offers of entertainment and gifts. In case employees are unable to refuse, they will immediately
report the matter to their superior and make sure matters are carried out openly.

CSR Workshops and Promotion of Appropriate Transactions
In order to understand CSR correctly, we participate in CSR workshops organized by ourcustomers and deepen our understanding.
For cooperating companies to understand and carry out CSR activities, we introduce
the “CSR Guidelines for Cooperating Companies” and “Guidelines for Appropriate
Transactions in the Automobile Industry” in our Purchasing Guidelines Briefings, and we
ask our cooperating companies to pass it on through the chain of suppliers.
In addition, we inform our cooperating companies regarding various seminars on
promoting fair and transparent transactions to raise their awareness.

46 Annual Report 2020

Education of Our Employees
We carry out training for our employees on a regular basis to promote appropriate transactions.

Code of Conduct Reading Sessions
Every week everyone gathers for the morning meeting and where we read the Code of Conduct together and deepen our understanding.

Appropriate Transaction Classes
Every year in November during “Appropriate Subcontracting Promotion
Month”, we organize a lecture with instructors from within and outside
the company, to raise awareness regarding appropriate transactions(Subcontract Law etc.) among employees of our company and its
affiliated companies.
Further, we attend seminars promoting appropriate transactions
hosted by the various organizations.

Conflict Minerals
The EXEDY Group carries out its procurement activities taking into consideration the impact of conflict minerals* (raw materials that
may cause social problems relating to human rights and the environment) on local communities. With our “Cooperating Company CSR
Guidelines” we request cooperating companies to do the same. Since 2013, in accordance with customers and the activities of theJapan Auto Parts Industries Association, we conduct a yearly survey of our domestic and overseas cooperation companies and their
supply chain.
*Conflict Minerals
Four minerals “tin”, “tantalum”, “tungsten” and “gold”, produced in the Democratic Republic of Congo and its neighboring countries in Africa are used tofund armed groups etc.

Annual Report 202047

Supply Chain Management
The Group conducts activities to minimize the disruption of the supply chain at the time of a bankruptcy, disaster, etc., at a cooperatingcompany, or natural disaster, so that we can recover as soon as possible. In particular, to minimize the damage when a disaster strikes,
we regularly confirm the location information of each production base, the earthquake resistance status of buildings and production
facilities, and emergency contact information. We request improvements from cooperating companies where necessary.

Supporting Suppliers Affected by Disaster
Hoping for a speedy recovery of the affected cooperating companies, we sent gasoline and diesel after the Great East Japan
Earthquake. After the Central Tottori Earthquake, we send plastic tarpaulins as a material support to the affected area.

Collaborations with Our overseas Bases
Purchasing staff at overseas production bases gather at the EXEDY Headquarters and hold a Global Purchasing Meeting. Here we
review, share and improve the supply chain risk management activities of each company.

48 Annual Report 2020

Our Contributions to Society
As an exceptional corporate citizen, contributing to local communities is essential. At the EXEDY Group, each company carries out
these activities in line with their specific circumstances.

Establishment of the Disaster Prevention Park at the Headquarters in Neyagawa
EXEDY donated a piece of land near the Headquarters to Neyagawa City and Osaka Prefecture, and completed the construction
including the surrounding roads. The Disaster Prevention Park serves as an evacuation site and is equipped with solar-powered LED
lighting and emergency toilets etc.

Clean-up and Tree Planting Activities
Together with the EXEDY Workers’ Community (workers’ union), employees and management united their efforts to carry out
environmental activities. Every year, we carry out the Clean Campaign (clean-up and tree planting in the areas surrounding the company)
and participate in the Clean River Neyagawa (cleaning activities of the Neyagawa River).

Clean River Neyagawa

Annual Report 202049

Clean Campaign

Supporting Student Auto Racing Competitions (EXEDY)
We at EXEDY support student formula and solar car races in order to develop future engineers as well as improve automobile
technologies. We have hopes that these students, through the process of building a vehicle, will work hard at improving fuel efficiency
and lowering production costs, and from this grow into engineers that can create automobiles that are environmentally friendly.

Student Formula

50 Annual Report 2020

Solar Car Race

Volunteer Activities
Here we introduce the volunteer activities carried out by EXEDY Group.

EXEDY DYNAX Shanghai Volunteer Team Initiatives

The volunteer team established in December 2008 at EXEDY DYNAX Shanghai carries out activities contributing to the local community.
The volunteer team initially consisting of only two members at its foundation, currently exceeds 100 members. Activities include cleaningof the company premises and neighboring housing complexes, cleaning and supporting the childrens’ study at the welfare institution forchildren, and organizing the books at the library. In 2016, the volunteer team was awarded the prize of ‘Leading Organization’ from thedevelopment district where the company is located and from the Fengcheng District Library they received the ‘Excellent Volunteer TeamAward’. The team even made an appearance in the media.

Cleaning-up Neighboring Housing
Complexes

Volunteer Activities at the Welfare
Institution for Children

Organizing the Books at the Library

EXEDY DYNAX Shanghai Volunteer Team Awards

2016 Shanghai Development District‘Leading Organization Award’

2017 Fengcheng District Library‘Excellent Volunteer Team Award’

Annual Report 2020

51

Maintaining the National Park (EXEDY Thailand)
On June 24, 2017, as a part of their CSR activities, EXEDY
Thailand visited Kao Chamau Kao Wang National Park, where theybuilt a dam, planted banana trees and installed a mineral supply
for wild elephants. Everyone enjoyed the fulfilling activities together.

Blood Donation Campaign (EXEDY Malaysia)
On August 12, 2016, EXEDY Malaysia hosted a blood drive at their training room. 80 people, including employees from neighboring
companies, participated. This activity raised awareness among the employees about their part in Malaysian society, and it increased thesense of solidarity with the other companies.

52 Annual Report 2020

Donations
Here we introduce EXEDY Group’s donations.

Volunteer Activities to Collect Supplies to Support Reconstruction after East Japan Great Earthquake Disaster (EXEDY)
EXEDY participated in the “East Japan Great Earthquake Disaster Reconstruction Support Volunteer Activities” organized by Nihokai(Kyohokai and Eihokai), held every year, and collected and donated unneeded mobile phones, postcards, unused stamps, telephonecards and bellmark points.

Money donation to the Kumamoto Earthquake-stricken Area (EXEDY)
Through the Kansai Association of Corporate Executives, we donated 1 million yen to the affected areas of the Kumamoto earthquake.
On June 13, 2016, Hiroyuki Suzuki, Representative Director of the Kansai Association of Corporate Executives visited the Kumamoto
Prefectural Office and handed over a logbook to the Vice-Governor of the Kumamoto Prefecture, Taisuke Ono. We hope for a quick
recovery for everyone affected by the disaster.

Donation of a Water Purification System to an Elementary School (EXEDY Thailand)
120 employees, including Ryu Suzuki,(former) President of EXEDY Thailand,
visited a neighboring elementary schoolon May 29, 2016 for the donation of thewater purification system and volunteering
activities. Together with the children our
employees painted the walls and cleaned
up the school building. They also played
games and in the end all 97 students
sang a song of gratitude. Our employees
thoroughly enjoyed their involvement in theactivities.

Contribution to Arts Support Kansai
Since March 2016, we cooperate with Arts Support Kansai, an organization supporting art and culture in the Kansai Region. For every
drink sold at the vending machines installed at the EXEDY Headquarters, Ueno Division and EXEDY Nara, one yen is donated. On a
yearly basis this accumulates to an amount of approximately 1 million yen.

Annual Report 202053

Contributing to the Region
The EXEDY Group has strong connections with local societies.

Workplace Experience for Junior High School Students
Neyagawa City (EXEDY Headquarters)
Every year we invite junior high school
students to the headquarters in Neyagawa
for a workplace experience. The students
go on a plant tour and study about the
products, get practical inspection training,
create drawings and make their own
business cards; they learn what it means to“work”.

Mimasaka City (EXEDY Precision)
We have been inviting 2nd grade studentsof Mimasaka Junior High School in
Okayama Prefecture for a workplace
experience since 2013. The childreninteract with many different people, and wehope they draw confidence from achieving
the goals set for the day. We hope thesechildren, after graduating high school anduniversity, will develop into leaders of theregion with “love for their hometown” and“healthy development” as their driving forces.

Fire Fighting Competition (EXEDY Fukushima)
New employees take part in the fire fighting competition sponsored by the Kitakata City Fire Department in Fukushima Prefecture, heldin June every year. Here new employees put the skills they acquired during the new recruitment training into practice, and compete forthe top places every year.

Handing Out Reusable Shopping Bags at the Local Bon Dance Event (DYNAX)
Our employees participate in the Bon Dances held in August every year in the cities of Tomakomai and Chitose and hand out reusable
shopping bags. All employees wearing matching yukatas (Japanese summer kimono) dance together with the local residents with muchenthusiasm.

54 Annual Report 2020

Activities Involving Employment
Employment of Handicapped People
26 employees with disabilities (as of March 2020) work at our special subsidiary, EXEDY Sun Co., Ltd.
In addition, employees with hearing disabilities and those with impaired arms or legs work in the same way as non-handicapped people,
while receiving the necessary support within the company.

Providing Internship Opportunities
We have an internship system that provides opportunities for students to have a work
experience so they are better able to choose their vocation and determine what they aregood at.
In FY 2019, we offered internships in die design, equipment development, 3D inspection,etc. at the Production Engineering Headquarters for two weeks in August. In September,
we had week-long internships at the Development Headquarters, and participant
experienced evaluating the reliability of a clutch. These are valuable experiences thatstudents usually do not gain at school.
In addition to that, we hold one-day internships in summer and winter.

Annual Report 202055

Employees
Growing as a Global Company
The personal development of employees is development of the EXEDY Group. The strategic direction of this growth is defined in the“EXEDY Way”. In order to continue to grow and evolve as a global company, we believe that developing global human resources andcontributing to society and self-fulfillment through our work will lead to “Creation of Fulfillment”, our corporate philosophy.

Global Human Resources Development Headquarters
In order to prevail in global competition, our management activities focus on “how to develop global human resources” and “howto develop human resources that are capable of working on their own initiative, producing results”. As a first step, in April 2016 weestablished the “Global Human Resources Development Headquarters” that specializes in creating mechanisms for human resources
development, training plans and planning work. While undertaking its role as the base of human development for the EXEDY Group, astructure will be developed that trains human resources who are able to contribute to customers and society.

56 Annual Report 2020

Employees

Global Human Resources Development

Global Training for New Graduates
At the EXEDY Group, we put effort in the development of new graduates. Since FY2016, we set up individual “ten-year training plans”
for each new graduate, and carry out training based this plan. Once every four months, Human Resources representatives hold one-onone interviews and discuss work and the workplace environment. Each department prepares detailed yearly plans on which we basethe education so employees acquire technologies and know-how in a timely way. We also carry out strategic rotation including overseas
training. This system allows our employees to gain valuable experience at a young age.

GETS Lectures
GETS (Global EXEDY Technical School) was established in 2012 to support the employees trying to learn on their own initiative. Here
we mainly carry out stratified education and specialized manufacturing training. In this specialized manufacturing training, in addition topractical basic skills and knowledge, we teach skills that can be used in the workplace, in levels ranging from basic to expert. Rather
than learning while seated at a desk, we incorporate a lot of education where employees get to master skills by practicing. We handdown technology taking advantage of the experience of in-house and OB lecturers. Some courses are attended by people outside ourcompany to learn the basics of manufacturing.

Global Management Training
The EXEDY Group, with bases all over the world,
carries out management training to strengthen the
management of overseas production bases andsales companies. The EXEDY WAY, which is thecore of our company, embodies our values andway of thinking and leads the way to evolution
globally. As managers at the various locations
share this way of thinking, we are able to achieve
further development.
Plant tour at EXEDY HQTop Seminars

Participants receive a
certificate of completion

Since 2012 we have been inviting well-known individuals and people from our top
management to EXEDY Headquarters to hold lectures. Until 2019, we held a total of
25 lectures. Through these lectures our employees learn about different ideas andperspectives. We hope this encourages them to grow, while keeping a broad perspective,
and that they will incorporate this in their daily work.

QC Circle Activities
There are 300 active QC circles at EXEDY
Corporation and worldwide there arearound 1,100 circles. While employees
grow through these activities solving
work-related problems, we revitalize
communication at the workplace. In thecourse of these activities, employees
learn the problem-solving procedure thatis the basis of quality, as well as nurture
leadership and membership skills andElite circles that won domestic and international
A creative and entertaining presentation by an
improve field capabilities. In addition, we
qualifications get to participate in the yearlyoverseas QC Circle
organize domestic and global QC Circle
Global QC Tournament
competitions to stimulate QC activities
throughout the company while increasing
the sense of unity and raising awareness towards improvement activities in the EXEDY Group.
The best QC circles at the EXEDY tournament will participate in the various external QC Circle Conferences. Below we listed the major
awards received by EXEDY’s QC circles.

Annual Report 2020

57

QC Circle Convention Achievements (excerpt)—QC Circle Headquarters / Union of Japanese Scientists and Engineers—[Event]	The 6th Clerical, Sales and Service Section (Including Medical and Welfare)
Nationwide QC Circle Conference (Small-group Activities)[Date]
June 14, 2013
[Result]
Director’s Award Gold Prize[Circle Name]
The Problem Solver Experts (Global Strategy Headquarters)[Event][Date][Result][Circle Name]

The 46th Nationwide QC Circle Conference (Small-group Activities)
November 29, 2016
Director’s Award Silver Prize
Material Technology (Development Headquarters)[Event]	The 10th Clerical, Sales and Service Section (Including Medical and Welfare)
Nationwide QC Circle Conference (Small-group Activities)[Date]
June 09, 2017
[Result]
Director’s Award Gold Prize[Circle Name]
Fruit Nodoame (Purchasing Headquarters)[Event][Date][Result][Circle Name]

The 48th Nationwide QC Circle Conference (Small-group Activities)
November 27, 2018
Director’s Award Silver Prize
CAMCAM (Production Engineering Plant)[Event]The 12th Clerical, Sales and Service Section (Including Medical and Welfare)
Nationwide QC Circle Conference (Small-group Activities)
June 7, 2019
Director’s Award Silver Prize
Shushu Circle (AT Quality Control Department)[Date][Result][Circle Name]—QC Circle Kinki Regional Chapter—[Event][Date][Result][Circle Name]

The 5981th QC Circle Kinki Regional Chapter Hyogo Area Convention
November 17, 2017
Regional Chapter Director’s Award
Right Now (Information Systems Department)[Event][Date][Result][Circle Name]

The 16th QC Circle Champions Tournament in Osaka
January 18, 2018
Governor’s Prize
CAMCAM (Production Engineering Plant)[Event][Date][Result][Circle Name]

The 6104h QC Circle Tokai Regional Chapter Exchange Convention
February 14, 2019
Director’s Award Gold Prize
Shushu Circle (AT Quality Control Department)

The Fruit Nodoame Circle(Purchasing Headquarters) wasawarded the Director’s Award
Gold Prize on June 9, 2017at the Nationwide QC Circle
Conference

Improving Technical Skills
In order to improve the technologicalcapabilities of our employees, we carryout various activities throughout the entire
EXEDY Group. The EXEDY Olympics
are held with the aim of increasing the
motivation of employees involved in
manufacturing. Various members of the
EXEDY Group compete their skills in
disciplines such as forklift, measurement
skills, crane, insert change and die
exchange.

58 Annual Report 2020

Forklift Olympic Event

Measurement Skill Olympic EventEmployees

Diversity

Diversity
We believe it is essential to be a company where every employee can achieve his or her full potential making use of individual differencessuch as age, nationality or gender. In addition to current efforts, we established our “Diversity Policy” on July 2, 2018 to further promote
diversity.

Diversity Policy
Basic Policy
We will continue to grow as a global company, making full use of the abilities of diverse human resources and create new value by
increasing our organizational strength.

Course of Action
We aim to be a company that all employees are happy to work for, regardless of their differences in attributes, values, experience, etc.
1.We mutually accept and respect each other regardless of gender, age, nationality, religion and beliefs, academic background, possible
disabilities and differences in values and experiences.
2.With emphasis on dialogue, we will make use of diverse opinions to find better ways.
3.All our employees will continue to grow while keeping a professional mindset, and mutually acknowledge each other other’s abilities.
4.We respect the work-life balance that each employee aims for.
We will create the environment and structure to make this a reality.
July 2, 2018
President & CEO

EXEDY Received New Diversity Management Selection 100 AwardOn March 22, 2019, EXEDY has been selected by the Ministry of Economy, Trade and Industry (METI) forthe ‘New Diversity Management Selection 100 Program’. METI selects enterprises that have improved its
corporate value through diversity management.
We will further strengthen our efforts to improve diversity.

Diversity Training
Since FY 2019, we provide diversity training to employees in management and supervisory positions. We offer the opportunity to findtips that can be reflected in our daily work in terms of making the most of the capabilities of our diverse workforce.

Diversity Awareness Survey
We have been conducting diversity awareness surveys on our employees in order to grasp the extent diversity awareness has taken
hold. The goal is to clarify issues and find a future direction, as we aim to be a company that respects diversity and enables everyone tofulfill their full potential.
Our future activities are linked to the results of the survey.

Female Advancement Initiative
Our company focuses on creating a comfortable working environment for women. As
quality is of vital importance in the manufacturing industry, in various ways we try toincorporate the viewpoints of our female employees, who often have a fine eye for detail.
After hearing the opinions of the female workers, we made adjustments to our production
line for torque converters, our core product. We created a model line that makes it easy foranyone to work by introducing equipment with height-adjustable operation panels and startswitches. We also established a women-only break room.

Annual Report 202059

Introducing Systems to Support Coexistence of Childcare / Nursing Care with WorkChildcare
We maintain high return-to-work rates and childcare leave rates. We allow employees toshorten their work hours until their children finish third grade of elementary school. Also,
support is provided at the start of the leave period and when returning to work. Whenemployees enter maternity and child-care leave, interviews with their superior and humanresources representative take place to relieve anxieties about returning to work.
In addition, we distribute the “Before and After Maternity Leave Guidebook”
to raise awareness and understanding of necessary procedures andavailable systems. In the future, to support the generation of double-income households, we have our thoughts set on
expanding the childcare leave system to make it available for male employees as well.

Nursing CareOur employees are able to take nursing leave up to three times for a period of two years, so we can meet the needs of
employees living in an aging society.

Work-at-Home System
We introduced a work-at-home system for some employees involved in childcare and nursing care. For those employees who havedifficulty coming to work at a given day, we provide an environment where they can continue to work and maximize their abilities.

Employing Foreigners
Currently we employ approx. 700 foreigners from 20 different countries. Working withpeople with different backgrounds on a daily basis, cultivates a global perspective and wayof thinking. Even though nationalities and background of our employees differ, we share ourway of thinking, the “EXEDY WAY”. We all cooperate in workplaces such as Accounting,
Human Resources, Sales and Development, making full use of our individual strengths.

Technical Trainee System
Many employees come to the motherplant in Japan through the TechnicalTrainee System from affiliated companies
in various countries such as Thailand,
Vietnam, Indonesia, Mexico, etc., topolish their technical skills. We establisheda praying room and displayed multilanguage sign boards in the plants, we
provide job-specific training, QC lectures
and Japanese language education during
the weekends. We support the trainees tomake sure their training is fruitful, and hold
events like intercultural exchange meetingsand informal gatherings with company
directors.

Employing People with Disabilities
In March 2011 we established EXEDY Sun Co., Ltd., a special subsidiary to create an environment that makes it easier for people withdisabilities to make full use of their potential. Including this special subsidiary, the number of employees with disabilities surpasses thelegally mandated employment ratio. In addition to our support of their daily work, we hold meetings with hearing impaired employees
once every two months, with the help of a sign language interpreter. Using their suggestions we strive to create a better workplace.

Participation of Employees Older than 60
At EXEDY we have a system in place to enable employees to continue their work after reaching retirement age at 60. These employees
mainly focus on guiding junior employees and handing down skills and expertise.

60 Annual Report 2020

Employees

Revitalization Activities

Summer Festival
Since 2011 we have been organizing summer festivals at our Headquarters and other locations. The festivals are very popular eventsand are visited by local residents as well as employees and their families; every year the combined summer festivals attract over 4,000
visitors. Each location plans their own exciting events. The festival’s fair and food stalls are free of charge, and also the lottery with great
prizes is very popular.

Headquarters
In 2019 the summer festival at the Headquarters attracted over 3,000 visitors. Highlights of the event were the performance by aprofessional dance group and penalty shoot-out between departments. At the food stalls we served sausages, fried chicken, ice creamand pineapple.

Popcorn

PK shoot-outs

DrinksUeno Division
At the festival at our Ueno Division we enjoyed the traditional dance of our technical trainees, basketball free-throw contests between
departments and dance performance by the junior cheerleaders with Kunon-chan, the mascot of Iga FC Kunoichi, womens footballteam playing in the Nadeshiko league. The summer festival at the Ueno Division attracted more than 1,000 local residents andemployees and their families.

Traditional dance by trainees from Thailand

Free-throw contest

Traditional dance by trainees from Vietnam

Food and drinks

Annual Report 202061

Kawagoe Plant
At our Kawagoe Plant, visitors enjoyed a performance of high school brass band and played a PK shoot-out contest. At the stalls we
had a shooting gallery and we served ice cream, fried soba noodles and pop corn. The lively event was attended by employees andtheir families.

Lottery

PK shoot-out

Brass band

EXEDY Nara
In July 2017, we held the first summer festival at EXEDY Nara. Sausages, fried soba noodles, fried chicken and drinks were served at
the food stalls. The family members enjoyed Yoyo and gold fish scooping. The main event of the festival was the gold fish scooping
tournament between teams. Thanks to the local nature (Yamato-koriyama City) of the events all participants were very excited.

Gold fish scooping tournament

Lottery

62 Annual Report 2020

LotteryCultural Festival
Employees show a another side of themselves, playing folk guitar or perform with their band. The music resonated across the cafeteriatransforming it into a music hall with a capacity of over 400 people. The first edition was held in 2015 and more than 900 people
participated, making for a lively event that really brought the musicians and spectators together.

Annual Report 2020

63

Global Sports Events
To deepen camaraderie between employees, we have been organizing sport events since 2016. We held the 1st and 2nd Badminton
Tournaments. Teams from overseas and domestic affiliates that won their qualifiers also competed in these lively events, bringing theentire EXEDY Group together.

64 Annual Report 2020

Table Tennis TeamThe women’s table tennis team that was founded in 1988, celebrates its 31st anniversary in 2019. The team participates in the Japan
Table Tennis League, the pinnacle of domestic table tennis, and won the first half of the season in the second division. The second halfof the 2019 season the team got some good results and managed to stay in the top division. In addition, the team has finished in thebest eight at the All-Japan Women’s Corporate Tennis Championships on two occasions.
Based at Ueno Division in Iga City, Mie Prefecture, the members participate as instructors in sports classes and trial sessions, targeting
elementary and junior high school students in the prefecture as a part of the 2019 Mie Prefecture Citizen’s Day commemorative events
under the theme of ‘Revitalize Mie with the Power of Sports’.
Further, in preparation of the National Athletic Meet to be held in Mie in 2021, the members of our table tennis team have been training
20 boys and girls as a part of the ‘2018 Mie Table Tennis Association Elementary and Junior High School Development Program’organized by the Mie Table Tennis Association. We will continue our involvement with local communities through such activities.

Mie Table Tennis Association Elementary and JuniorHigh School Development Program

Iga FC Kunoichi
Our company became the main sponsor of the Iga FC Kunoichi Women’s Football Team, playing in the Plenus Nadeshiko League.
Founded in 1976, Iga FC Kunoichi is a team with a long history and celebrated its 40th anniversary in 2016. Most of the players
are employed by EXEDY. We provide an environment where the players work until 2 pm every day, and can focus on training in theafternoon. This is how we help create an environment for women’s football and contribute to its development.

Annual Report 202065

Corporate Data
BOARD OF DIRECTORSAND CORPORATE AUDITORSEXECUTIVE OFFICERS

As of June 30, 2020

As of June 30, 2020

As of March 31, 2020

President and Chief Executive Officer :Hidehito Hisakawa

Senior Executive Managing Officer:
Shogo Okamura
Hiroshi Toyohara

Name:
EXEDY Corporation

Number of Issued Shares:
48,593 thousand shares

Directors: Shogo Okamura
Hiroshi Toyohara
Tetsuya Yoshinaga
Shinji Fujimoto
Yuzuru Hirose
Junji Yamakawa
Makoto Mitsuya
Ichizo Yoshikawa
Toshiki Takano
Takashi Hayashi

Executive Managing Officers:
Tetsuya Yoshinaga
Kenji Matsuda
Mitsuhiro Gondo

Established:
July 1, 1950

Number of Shareholders:
22,928Paid-in Capital:￥8,284 million

Average number of shares
held by one Shareholder:
2,119 shares

Auditors : Keizo Nishigaki
Kanshiro Toyoda
Tadashi Fukuda
Satoshi Tsubota

Senior Executive Officers:
Shinji Fujimoto
Junji Yamakawa
Yoshimi Osanai
Yoshihiro Yamamura

Yuzuru Hirose
Yoshihiro Kojima
Tomoaki Goto

Executive Officers:
Masahito Baba
Mitsugu Yamaguchi
Toshiyuki Tanaka
Yoichi Yoshida

Ryu Suzuki
Tatsuyuki Aoki
Hisashi Honjo

OUTLINE OF COMPANY

Number of Employees:
2,683
Number of Authorized Shares:
168,000 thousand shares

Listed on First Sections,Tokyo Stock ExchangeJAPANESE NETWORKHead Office

Ueno Division

EXEDY Trading Co., Ltd.

Tokyo Sales Office

Kawagoe Plant

EXEDY Sun Co., Ltd.

Hiroshima Plant

EXEDY Electric Facilities Co., Ltd.

DYNAX Corporation

Nippon Retarder System Co., Ltd.

EXEDY Casting Co., Ltd.

EXEDY Fukushima Co., Ltd.

1-1-1 Kidamotomiya, Neyagawa-shi, Osaka, 572-8570
Tel: 81-72-822-1152 Fax: 81-72-822-7552

Shishido Building 6th Floor, 1-15-14 Sakai, Musashino City,
Tokyo, 180-0022
Tel: 81-42-250-0751 Fax: 81-42-253-1110

Kanagawa Sales Office

Asahi Mutual Life Insurance Co. Bldg. 7th Floor, 4-1-10
Naka-cho, Atsugi-shi, Kanagawa, 243-0018
Tel: 81-46-297-7051 Fax: 81-46-225-5568

Shizuoka Sales Office

RICOH Solutions Higashi Shizuoka Bldg. 2nd Floor, 6-20
Aratajima-cho, Fuji-shi, Shizuoka, 417-0043
Tel: 81-545-54-0861 Fax: 81-545-54-0862

Hamamatsu Sales Office

City 21 Bldg. 6th Floor, 320-4 Sunayama-cho, Naka-ku,
Hamamatsu-shi, Shizuoka, 430-0926
Tel: 81-53-413-6011 Fax: 81-53-413-6012

2418 Ota-cho, Iga-shi, Mie, 518-0825
Tel: 81-595-23-8101 Fax: 81-595-24-5521
1-103-25 Yoshinodai, Kawagoe-shi, Saitama, 350-0833
Fax: 81-49-225-0601 Fax: 81-49-225-0600
6-11 Taguchi Kenkyu Danchi, Higashi Hiroshima-shi, Hiroshima, 739-0038
Tel: 81-82-425-3434 Fax: 81-82-425-3436
1053-1 Kamiosatsu, Chitose-shi, Hokkaido, 066-0077
Tel: 81-123-24-3247 Fax: 81-123-49-2050
112 Haishi, Fukuchiyama-shi, Kyoto, 620-0955
Tel: 81-773-22-1156 Fax: 81-773-23-8477

EXEDY Kyoto Co., Ltd.

15 Kizuogawa, Kizugawa-shi, Kyoto, 619-0214
Tel: 81-774-73-0631 Fax: 81-774-73-2147

Chubu Sales Office

EXEDY Precision Co., Ltd.

Hiroshima Sales Office

EXEDY Logistics Co., Ltd.

Tosho Bldg. 2nd Floor, 1-16-5 Mikawaanjo-cho, Anjo-shi, Aichi, 446-0056
Tel: 81-566-71-2750 Fax: 81-566-72-7015
Crest Court Kaita Sakaemachi Bldg. Room 202, 6-6
Sakaemachi, Kaita-cho, Aki-gun, Hiroshima, 736-0043
Tel: 81-82-821-0021 Fax: 81-82-823-6620

104-1 Joden, Mimasaka-shi, Okayama, 701-2625
Tel: 81-868-74-3501 Fax: 81-868-74-3503
1-30-1 Kidamotomiya, Neyagawa-shi, Osaka, 572-0822
Tel: 81-72-822-1462 Fax: 81-72-822-1174

1-1-33 Kidamotomiya, Neyagawa-shi, Osaka, 572-0822
Tel: 81-72-824-7633 Fax: 81-72-822-1016
1-16-5 Kidamotomiya, Neyagawa-shi, Osaka, 572-0822
Tel: 81-72-822-1147 Fax: 81-72-824-3871
8-6 Hyuga-cho, Moriguchi-shi, Osaka, 570-0023
Tel: 81-6-6997-3131 Fax: 81-6-6997-3150
1-1-33 Kidamotomiya, Neyagawa-shi, Osaka, 572-0822
Tel: 81-72-820-0911 Fax: 81-72-824-1035
65 Matsubara, Torimiyama, Matsuyama-machi, Kitakata-shi,
Fukushima, 966-0901
Tel: 81-241-23-3100 Fax: 81-241-25-7367

EXEDY SB Hyogo Co., Ltd.

Nakanoshima Festival Tower West 21st Floor, 3-2-4,
Nakanoshima, Kita-ku, Osaka-shi, Osaka, 530-0005
Tel: 81-6-7708-8173 Fax: 81-6-7708-8182

EXEDY Nara Co., Ltd.

68 Nukatabeteramachi, Yamatokoriyama-shi, Nara, 639-1036
Tel: 81-743-56-6878 Fax: 81-743-56-5033

OVERSEAS NETWORKEXEDY America Corporation (EAC)

2121 Holston Bend Drive, Mascot, TN 37806, USA
Tel: 1-865-932-3700 Fax: 1-865-932-2230

EXEDY Globalparts Corporation (EGP)

8601 Haggerty Road Van Buren TWP, Michigan 48111-1607, USA
Tel: 1-734-397-3333 Fax: 1-734-397-7300

DYNAX America Corporation (DXA)

568 East Park Drive, Roanoke, VA 24019, USA
Tel: 1-540-966-6010 Fax: 1-540-966-6011

EXEDY DYNAX MEXICO, S.A. DE C.V. (EDM)

Circuito Progreso #101, Parque Industrial de Logística Automotriz (Pila),
Peñuelas; Aguascalientes, MEXICO, CP 20340
Tel: 52-449-176-0000 Fax: 52-449-139-4904

EXEDY Mexico Aftermarket Sales, S.A. de C.V. (EMA)
Vía Adolfo Lopez Mateos 9, Col. Lomas Verdes, Naucalpan,
Edo. De Mexico, 53120, MEXICO
Tel: 52-55-5572-5127 Fax: 525-535-4163

EXEDY Latin America S.A. (ELA)

Edificio Paitilla Office Tower, Oficina # 902, 903, 904, Avenida 8va. Sur y Calle 56 Este,
Corregimiento de San Francisco, Ciudad de Panama, Republica de PANAMA
Tel: 507-395-7122 Fax: 507-395-7124

EXEDY Clutch Europe Ltd. (ECE)

Unit 2, Rokeby Court, Manor Park, Runcorn, Cheshire, WA7 1RW, UK
Tel: 44-1928-571850 Fax: 44-1928-571852< Netherlands Representative Office >Tradepoint A109, Atoomweg 63, 3542AA Utrecht, NETHERLANDS
Tel: 31-30-850-5446<Turkey Office>Esentepe Mah, Büyükdere Cd. No:195,Kat:5 ODA No.7001
34394 Şişli/İstanbul, Turkey
Tel: 05306949502 Fax: 02127059500

EXEDY DYNAX Europe Ltd. (EDE)

2800 Tatabanya, Szarkalab UT6, HUNGARY
Tel: 36-34-311-117 Fax: 36-34-311-122

EXEDY Australia Pty. Ltd. (EAP)

21 Fiveways Boulevard, Keysborough,Victoria 3173, AUSTRALIA
Tel: 61-3-9701-5556 Fax: 61-3-9701-5684

EXEDY New Zealand Ltd. (ENZ)

151 Wairau Road Glenfield Auckland, NEW ZEALAND
Tel: 64-9-444-0901 Fax: 64-9-444-0903

EXEDY Thailand Co., Ltd. (EXT)

700/316 Moo 6, Bangna-Trad Road, Tumbon Don Hua Roh,
Amphur Muang, Chonburi 20000, THAILAND
Tel: 66-38-214-423 Fax: 66-38-214-422

66 Annual Report 2020

EXEDY ENGINEERING ASIA Co., Ltd. (EEA)

DYNAX Industry (Shanghai) Co., Ltd. (DXS)EXEDY Friction Material Co., Ltd. (EFM)

EXEDY India Ltd. (EIL)

700/552 Moo 6, Bangna-Trad Road, Tumbon Don Hua Roh,
Amphur Muang, Chonburi 20000, THAILAND
Tel: 66-38-453-182 Fax: 66-38-453-181
700/359 Moo 6, Bangna-Trad Road, Tumbon Don Hua Roh,
Amphur Muang, Chonburi 20000, THAILAND
Tel: 66-38-743-923 Fax: 66-38-743-927

EXEDY (Malaysia) Sdn.Bhd. (EXM)

PT 16748, Jalan Permata 1/5, Arab-Malaysian Industrial Park
71800 Nilai, Negeri Sembilan, MALAYSIA
Tel: 60-6-7992988 Fax: 60-6-7996388

EXEDY SINGAPORE PTE. LTD. (ESP)45 UBI ROAD 1 #02-01 SINGAPORE 408696
Tel: 65-6749-1395 Fax: 65-6742-6936

PT. EXEDY Manufacturing Indonesia (EMI)Jl. Permata V Lot EE 3 Kawasan Industri KIIC Karawang 41361
Jawa Barat, INDONESIA
Tel: 62-21-89114666 Fax: 62-21-89114568

PT. EXEDY PRIMA INDONESIA (EPI)

Jl. Gardu Induk PLN No.5, Margomulyo, Tandes, Surabaya 60187,
East Java, INDONESIA
Tel: 62-31-2977777 Fax: 62-31-7491739

EXEDY Vietnam Co., Ltd. (EXV)Khai Quang Industrial Zone, Vinh Yen City, Vinh Phuc Province,
Socialist Republic of VIETNAM
Tel: 84-211-3721252 Fax: 84-211-3721253

EXEDY Chongqing Co., Ltd. (EXC)

No.4 Longjing Road, North New Economic Development Zone,
Chongqing, 401122, CHINA
Tel: 86-23-67460801

EXEDY DYNAX Shanghai Co., Ltd. (EDS)

1399 Chenqiao Road Fengxian District, Shanghai, 201401, CHINA
Tel: 86-21-67109075 Fax: 86-21-37565209

EXEDY Guangzhou Co., Ltd. (EGC)

Room 3240, 4th floor, No.944, No.8, Xinguangcong Automobile
Spare Parts Market, Baiyundadaobei Road, Baiyun District,
Guangzhou, Guangdong Province, 510800, CHINA
Tel: 86-20-83489166 Fax: 86-20-83489370

EXEDY BEIJING Co., Ltd. (EBC)

D4 Area No.218, Wufang Tianya Auto Accessories & Parts Market,
Chaoyang District, Beijing, 100023, CHINA
Tel: 86-10-67297987

No.350 Rongxiang Road, Songjiang Export Processing Zone,
Shanghai, 201613, CHINA
Tel: 86-21-57749834 Fax: 86-21-57748389< Aurangabad Plant >Plot No.L-4, M.I.D.C. Industrial Area, Chikalthana, Aurangabad431 210, Maharashtra, INDIA
Tel: 91-240-2484014 Fax: 91-240-2484403< Greater Noida Plant >Plot No.9, Udyog Kendra Industrial Area, Greater Noida, 201 304, U.P., INDIA
Tel: 91-750-3131000 Fax: 91-120-2397086

EXEDY Clutch India Pvt. Ltd. (ECI)

Plot No 5-P, 9-18, 19P, 32-38, Narsapura Industrial Area, Appasandra
Village, Appasandra Village, Kolar, INDIA
Tel: 91-9108-035061

EXEDY Poipet Co., Ltd. (EXP)

Techno Park Poi Pet, Plotno. C005 & C010, Sanco Poi Pet SEZ,
Phum Phsar Kandal, Sangkat Phsar Kandal, Poi Pet city,
Banteay Meanchey Province, CAMBODIA
Tel: 855-89-954-232

EXEDY Middle East FZCO (EME)

P.O.BOX 18199, Warehouse No. ZE5 & ZE6 Jebel Ali Free
Zone, Jebel Ali Dubai, UAE
Tel: 971-4-883-2244 Fax: 971-4-883-2500< Amman Representative Office >Room No.103, 1st Floor, AI Housanie Bldg. #6 Salem Moh'd
AI-Ekdhah Street Sweifieh, Wadi AI-Saier, Amman, JORDAN
Tel: 962-658-13215 Fax: 962-658-13015< Nairobi Representative Office >International House, 1st Floor, Room No.12, Mama Ngina Street,
P.O. Box 41931-00100, Nairobi, KENYA
Tel: 254-20-221-1214 Fax: 254-20-221-5700< Riyadh Representative Office >Room #1 AI Edressi Bldg, Price Fahed Bin Ibrahim St.
In front of AL-Majal Centre, Riyadh, Kingdom SAUDI ARABIA
Tel: 966-121-48431 Fax: 966-121-48728

EXEDY SOUTH AFRICA (PTY) LTD (ESA)

12 Quark Crescent, Linbro Business Park, Sandton 2090 Johannesburg,
SOUTH AFRICA

2020.7.70. 0892Ⓗ Printed in Japan