ANNUAL REPORT 2018Year Ended March 31, 2018

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

55

To Our Shareholders
Business Operations
Review of Fiscal Year 2017

Outlook of Fiscal Year 2018

Through a steady increase in mainly domesticorders for AT products and from China, we haveachieved an increase in sales revenues for FY
2017’s consolidated accounting period.
As for profit, in spite of intensifying pricecompetition in MT products and ﬂuctuations insteel market conditions, our operating income
rose as a result of increased sales revenues andcost reduction activities.
Our overall business results for this accounting
period are as follows: revenues of ¥283.3 BN (a5.6% increase compared to FY 2016), operating
income of ¥23.8 BN (a 3.6% increase comparedto FY 2016), profit before income taxes of ¥22.5
BN (a 3.5% increase compared to FY 2016), andprofit attributable to owners of parent amounting
to ¥15.8 BN (a 10.9% increase compared to FY2016).

Our forecasts for the future estimate that base quantities
for orders centered around our overseas operations willremain firm, and bring an increase in revenues.
As for profit, we expect to experience strict conditions
due to changes in the composition of our sales, as wellas due to the effects of exchange rate ﬂuctuations;however, we will endeavor to secure profit and conduct
streamlined operations that will raise the overall strengthof EXEDY Group’s business operations, which are
centered around our fields of production.
Due to the abovementioned items, we expect thefollowing for FY 2018: sales revenues of ¥285 BN (anincrease of 0.6% compared to FY 2017), operating
income of ¥25 BN (an increase of 5.0% from FY 2017),
ordinary profit of ¥24 BN (an increase of 6.7% fromFY 2017), and profit attributable to owners of parent
amounting to ¥16 BN (an increase of 1.3% from FY2017).
July, 2018

Hidehito Hisakawa
President & Chief Executive Ofﬁcer

Hidehito Hisakawa (President and Chief Executive Officer)

Annual Report 2018

1

44

25

Core Technologies

Torque Converter

2 Annual Report 2018

Manual Clutch

Global Market Leader
44 Companies in 25 Countries

Low Speed Lock-up
Torque Converter

Damper for
Plug-in Hybrid Vehicles

Annual Report 20183

Topics of the Year
Manufacturing
New Plant Opening Ceremony Held at EXEDY DYNAX Mexico
In response to increased orders of AT products in North America, the plantat EXEDY DYNAX Mexico was expanded.
On May 3, 2017 the opening ceremony was held and production at theplant was started.

R&D Facility Established in the United States
On May 1, 2017 EXEDY Globalparts (United States) held a ceremony to mark the opening of the newly establishedR&D facility. The aim is to increase our speed by carrying out development near our customers.

4 Annual Report 2018

SSC (Simple, Slim & Compact) Line Commencement of Operation
Based on the concept of Simple, Slim & Compact, a new torque converter production line
was established at our Ueno Division and operation was started. While using only half of theinstallation area of a conventional production line, production volume per hour is drasticallyincreased.

Electric Technology
Investment in a Company Developing Compact EVs
In preparation of future development of electric technology,
DYNAX (EXEDY Group) invested in FOMM Corporation, acompany that works on the development of compact EVs.

Annual Report 20185

Consolidated Financial Statements

EXEDY Corporation (7278) FY2017 Financial Results(1) Consolidated Statement of Financial Position
The Date ofTransition(April 1, 2016)

FY2016(March 31, 2017)

FY2017(March 31, 2018)

millions of yen

millions of yen

millions of yen

AssetsCurrent Assets
Cash and Cash Equivalents

32,92342,392

44,698Trade and Other Receivables
Other Current Financial Assets

48,808763

53,352
1,023

55,063
1,642

Inventories
Other Current Assets

30,5095,747

31,433
4,026

32,892
3,907

Total Current Assets

118,749

132,226

138,202

Non-current Assets
Tangible Fixed Assets

141,968

152,782

156,867

Goodwill and Intangible Assets
Investments Accounted for Using the Equity Method

3,970
182

3,809
145

3,564
137

Investments in Equity Instruments
Other Non-current Financial Assets

2,168
310

2,369
269

3,610
153

Deferred Tax Assets
Retirement Benefit Assets

1,688
982

2,099
992

2,523
1,071

Other Non-current Assets

1,507

1,397

1,258

Total Non-current Assets

152,776

163,863

169,183

Total Assets

271,526

296,089

307,385

6 Annual Report 2018

EXEDY Corporation (7278) FY2017 Financial Results
The Date ofTransition(April 1, 2016)

FY2016(March 31, 2017)

FY2017(March 31, 2018)

millions of yen

millions of yen

millions of yen

Liabilities and Equities
Liabilities
Current Liabilities
Bonds and Borrowings

17,135

11,3588,676

Trade and Other Payables
Other Current Financial Liabilities

34,97882

37,632
58

39,573
150

Income Tax Payables
Short-term Employee Benefits

2,050
1,381

3,960
1,340

4,093
1,330

Provisions
Other Current Liabilities

1,300
1,285

2,881
1,658

3,267
2,714

Total Current Liabilities

58,211

58,88859,803

Bonds and Borrowings
Other Non-current Financial Liabilities

21,300356

34,770229

35,052
155

Retirement Benefit Liabilities
Deferred Tax Liabilities

5,587
3,309

5,735
3,402

5,849
2,204

Non-current Liabilities

Other Non-current Liabilities

546

674

691

Total Non-current Liabilities

31,09744,81043,950Total Liabilities

89,308103,697

103,754

8,284

8,284

8,284

Capital Surplus
Treasury Shares

7,564△1,445

7,606△1,4007,656△1,367

Other Components of Equity
Retained Earnings

920
155,100

△409

△926

166,046

177,808

Total Equity Attributable to Owners of Parent
Non-controlling Interests

170,423
11,795

180,127
12,265

191,455
12,177

Total Equity

182,218

192,392

203,631

Total Liabilities and Equity

271,526

296,089

307,385

EquityCapitalAnnual Report 20187

(2) Consolidated Statement of Income/Consolidated Statement of
EXEDY Corporation (7278) FY2017 Financial Results
Comprehensive Income(Consolidated Statement of Income)

FY2016(From: April 1, 2016
To: March 31, 2017)

FY2017(From: April 1, 2017
To: March 31, 2018)

millions of yen

millions of yen

Revenue
Cost of Sales

268,188
210,799

283,319
225,619

Gross Profit
Selling, General and Administrative Expenses

57,38834,23457,70033,275

Other Operating Income
Other Operating Expenses

1,671
1,845

1,195
1,812

Operating Profit

22,98023,808Financial Income

214

175

Financial Expenses
Equity in Earnings of Affiliates

1,464
13

1,497
12

Income before Income Taxes
Income Taxes

21,744
6,353

22,4995,986

Profit15,39016,513Attribution of Profits
Owners of Parent

14,237

15,791

1,154

722

Profit15,39016,513

Basic and Diluted Earnings per Share (yen)296.39328.66

Non-controlling Interests

8 Annual Report 2018

EXEDY Corporation (7278) FY2017 Financial Results(Consolidated Statement of Comprehensive Income)

Profit

FY2016(From: April 1, 2016
To: March 31, 2017)

FY2017(From: April 1, 2017
To: March 31, 2018)

millions of yen

millions of yen

15,39016,513Equity Instruments Measured at Fair Value
through Other Comprehensive Income

299

166

Re-measurements of Defined Benefit Plans

21

61

319

226

△1,707

△612

△2

7

Other Comprehensive Income
Items that will Not Be Reclassified to Profit or Loss

Total of Items that will Not Be Reclassified
to Profit or Loss
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

△1,709△605

Other Comprehensive Income△1,389△378

Comprehensive Income

14,001

16,135

Owners of Parent
Non-controlling Interests

12,983
1,018

15,335801

Comprehensive Income

14,001

16,135Attribution of Comprehensive Income

Annual Report 20189

EXEDY Corporation (7278) FY2017 Financial Results(3) Consolidated Statement of Changes in Equity
Equity Attributable to Owners of Parent
Other Components of Equity
EquityCapitalSurplusCapital

Exchange
Instruments
ReDifferences on Measured atmeasurements
Translation of Fair Valueof Defined
Foreignthrough Other
Benefit Plans
Comprehensive
Operations

Treasury
Shares

Total

Incomemillions of yen millions of yen millions of yen millions of yen millions of yen millions of yen millions of yen

Balances as of April 1, 2016
ProfitOther Comprehensive Income

8,284
-

7,564
-

△1,445-△1,573

920
299

21

920
△1,254---△1,573299

21△1,254

Acquisition of Treasury Shares
Disposal of Treasury Shares
Dividends of Surplus
Share-based Payment Transactions
Transfer to Retained Earnings

-

△4

△1

47
-

45
-

-

△54

△21

△75

Total Transaction Amount with Owners
Changes for the Period

-

42

44

-

△54

△21

△75

-

42

44

△1,573244-△1,329Balances as of March 31, 2017

8,284

7,606

△1,400△1,573

1,165

-

△409

ProfitOther Comprehensive Income

-

-

-

△683

166

61

△457

Total Amount of Comprehensive
Income for the Period

-

-

-

△683

166

61

△457

Acquisition of Treasury Shares
Disposal of Treasury shares
Dividends of Surplus
Share-based Payment Transactions
Transfer to Retained Earnings

-

6
44
-

△0

-

-

△61

△61

Total Transaction Amount with Owners
Changes for the Period

-

49

33

-

-

△61

△61

-

49

33

△683

166

-

△517

8,284

7,656

△1,367△2,256

1,330

-

△926

Total Comprehensive Income
for the Period

Balances as of March 31, 201810 Annual Report 201833-

EXEDY Corporation (7278) FY2017 Financial Results
Equity Attributable to
Owners of Parent

Balances as of April 1, 2016
ProfitOther Comprehensive Income
Total Comprehensive Income
for the Period
Acquisition of Treasury Shares
Disposal of Treasury Shares
Dividends of Surplus
Share-based Payment Transactions
Transfer To Retained Earnings
Total Transaction Amountwith Owners
Changes Amount for the Period
Balances as of March 31, 2017
ProfitOther Comprehensive Income
Total Amount of Comprehensive
Income for the Period
Acquisition of Treasury Shares
Disposal of Treasury Shares
Dividends of Surplus
Share-based Payment Transactions
Transfer to Retained Earnings
Total Transaction Amountwith Owners
Changes for the Period
Balances as of March 31, 2018

Non-controlling
Interests

Total Equity

Retained Earnings

Total

millions of yen
155,100
14,237-

millions of yen
170,423
14,237△1,254

millions of yen
11,795
1,154△136

millions of yen
182,218
15,390△1,38914,237

12,9831,018

14,001△3,36675△141△3,366
47
-

△548
-

△1
41
△3,91447-△3,291△3,279△548△3,827

10,946
166,046
15,791-

9,704
180,127
15,791△457

470
12,265722
78

10,174
192,392
16,513△378

15,791

15,335

801

16,135△4,08961△0
39△4,089
44
-

△888
-

△0
39
△4,97844-△4,029△4,007△888△4,895

11,763
177,808

11,328
191,455△88
12,177

11,240203,631Annual Report 201811

EXEDY Corporation (7278) FY2017 Financial Results(4) Consolidated Statement of Cash FlowsFY2016(From: April 1, 2016
To: March 31, 2017)

FY2017(From: April 1, 2017
To: March 31, 2018)

millions of yen

millions of yen

Cash Flows from Operating Activities
Income before Income Taxes

21,744

22,499Depreciation and Amortization Expenses
Interest and Dividend Income

16,456△214

17,104△175

Interest Expenses
Equity in Earnings of Affiliates (△ is Profit)

1,031
△13

995
△12

Profit or Loss from Foreign Exchange (△ is Profit)
Changes of Inventories (△ is Increase)200△1,619△108△1,932

Changes of Trade and Other Receivables (△ is Increase)
Changes of Trade and Other Payables (△is Decrease)△5,434△1,731

2,703

2,200

Other

4,776

2,420

Subtotal

39,62941,259234△1,040△5,461

258△981△7,53133,36233,006

Payments into Time Deposit
Payments for Acquisition of Tangible Fixed Assets△348△27,499△428△20,924

Proceeds from Sales of Tangible Fixed Assets
Payments for Acquisition of Intangible Assets

131△1,302

369
△969

Other

391
△28,628△970△22,921

Increase by Short-term Borrowings
Repayments of Short-term Borrowings

10,968△13,096

12,921△12,843

Proceeds from Non-current Borrowings
Repayments of Non-current Borrowings

13,041△4,8194,632△7,340

Proceeds from Issue of Bonds
Redemption of Bonds

10,000△7,000

Dividends Paid
Other

△3,366△563△4,089△897

Interest and Dividends Received
Interest Paid
Income Taxes Paid
Cash Flows from Operating Activities
Cash Flows from Investing Activities

Cash Flows from Investing Activities
Cash Flows from Financing Activities

Cash Flows from Financing Activities

5,166△7,616

Effect of Exchange Rate Changes on Cash & Cash Equivalents
Changes of Cash and Cash Equivalents (△is Decrease)

△431

△162

9,469

2,306

Balances of Cash and Cash Equivalents at the Beginning of Period

32,92342,392

42,392

44,698Cash and Cash Equivalents at the End of Period(5) Notes for Consolidated Financial Statements (Notes for Going Concern)
Not applicable.

12 Annual Report 2018

EXEDY Corporation (7278) FY2017 Financial Results【Segment Information】
1. General Information
The reportable segments are components of business activities for which discrete, and such information is regularly
reviewed by the Company’s Board of Directors in order 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 of automotive parts.
From the aspects of function, technological specification and productive structure, the product lines of the Company areclassified roughly into 2 group, "Manual Transmission Parts" and "Automatic Transmission Parts". The Company, in
corporation with its consolidated subsidiaries, design business strategy and conduct business for these 2 product lines
inside Japan and overseas. And concerning these 2 product lines, separate financial information is accessible among
the constituent units of the Company and that are subject to periodical examination, in order to the Board of Directors of
the Company to determine the allocation of management resources. Accordingly, the reportable segments of theCompany are composed of 2 segments, "MT (Manual automotive drivetrain related business)" which manufactures andsells Manual Transmission Parts and "AT (Automatic automotive drivetrain related business)" which manufactures andsells Automatic Transmission Parts.

2. Information about Revenue and Profit/Loss for the each Reportable Segment
FY2016 (April 1, 2016 to March 31, 2017)(Millions of yen)
Reportable Segment
MT

Other
(Note)

Adjustments Consolidated

AT

Total

66,700169,956

236,656

31,532-

268,188

129

2,966

3,095

7,586

△10,681-

66,829172,921239,750

39,118△10,681

268,188

11,035

10,97822,014

1,074

△107

22,980

Revenue
External Customers
Intersegments
Total
Segment Profit
Financial Income

214

Finance Expenses

1,464

Equity in Earnings of Affiliates

13

Income before Income Taxes

21,744(Note) 1. Others includes businesses which is not part of any of the 2 reportable segments, and contain industrial machine
drivetrain 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 consolidated statement of income.
4. Elimination of intersegment transactions and corporate expenses are included in adjustments.

Annual Report 201813

EXEDY Corporation (7278) FY2017 Financial Results
FY2017 (April 1, 2017 to March 31, 2018)(Millions of yen)
Reportable Segment

Other(Note)

Adjustments Consolidated

MT

AT

Total

70,840177,776

248,616

34,703-283,319

183

2,591

2,774

7,517

△10,291-

71,023

180,367

251,390

42,220△10,291

283,319

10,05011,97422,024

3,223△1,43923,808

Revenue
External Customers
Intersegments
Total
Segment Profit
Financial Income

175

Finance Expenses

1,497

Equity in Earnings of Affiliates

12

Income before Income Taxes

22,499(Note) 1. Others includes businesses which is not part of any of the 2 reportable segments, and contain industrial machine
drivetrain 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 consolidated statement of income.
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)
FY2016(From: April 1, 2016
To: March 31, 2017)
Profit Attributable to Owners of Parent

14,237FY2017(From: April 1, 2017
To: March 31, 2018)
15,791

2. Average Number of Shares Outstanding during the Period(Thousand shares)
FY2016(From: April 1, 2016
To: March 31, 2017)
Average Number of Shares Outstanding during
the Period【Significant Subsegment Events】
Not applicable.

14 Annual Report 2018

48,034FY2017(From: April 1, 2017
To: March 31, 2018)
48,047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

I LOVE EXEDY※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 2018 edition of our Code of Conduct was
distributed to approx. 18,000 employees in 44 locations in 25
different countries.
The EXEDY Code of Conduct, first published in 1998 has beenrevised a total of 11 times, including the revision of the latest
version issued on April 1, 2018, 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,
Malaysian 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. With thistraining we aim to develop the participants into leaders who support our company in a way that earns the trust of our stakeholders, byreconfirming and further raising awareness regarding the basis of our manufacturing: Safety→Quality→Donpisha*→Cost and its order ofpriority.
*Donpisha…The company-wide activities of instilling ‘what is needed, when it is needed, in the quantity needed’, in all processes of manufacturing frompurchasing to shipment.

Annual Report 201815

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 2018

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 201817

 n Outline of Our Current System of Corporate Governance:A
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 five 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 and Kengo Yamamoto, who are in theemploy 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 2018

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 201819

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 2018

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 201821

A schematic of our system of corporate governance

22 Annual Report 2018

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 three 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)12(4)

246 million yen(16 million yen)

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

35 million yen(17 million yen)

Total Amount(Outside)16(7)

281 million yen(33 million yen)Note)
1.The table above includes two directors who retired at the conclusion of the General Shareholders Meeting held on Tuesday, June 27,
2017. One director who serves without compensation 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 26 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 201823

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 FY2017, the Risk Management Committee gathered three 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 2018

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 201825

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 with F2F communication and at a
speed of 2-2-2.
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, 2017
President & CEO

26 Annual Report 2018

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 201827

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
Our corporate policy of Safety・Quality・Donpisha (Just in Time)・Cost. No matter what it is that we do, at the EXEDY Group we makeour judgments with safety being the top priority. Afterwards, we treat quality as your second highest priority, followed by donpisha (thedelivery date and amount), and lastly cost.

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
as a safe workers, and receive “Safe Worker Certificate”. In 2017 this safety training for
employees was held 29 times. We also get requests from outside the company to provide
this highly valued training.
In addition, in 2018, we established a ‘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 2018

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

Training at Overseas BaseOn December 2, 2016, EXEDY DYNAX
Shanghai (EDS) conducted a firefighting
drill simulating ammonia leakage, with two
fire trucks of the local fire department andnine fire fighters.

Fire fighting training

Disaster drill

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 201829

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 2018

2018 Certified Health and Productivity Management Organization (White 500)On February 20, 2018, our company was recognized under the 2018 Health andProductivity 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”.

Annual Report 201831

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 take action with the speed of 2-2-2 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, 2015
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 2018

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 conditions
2.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 processes
3.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 customers
4.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 data
5.In order to achieve the four points listed above, we will strive to work in cooperation with not just those in our department, but alsowith 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 201833

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 2018

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.
※1 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 201835

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)
We have two separate levels of audits and inspections: internal audits, and audits performed by external organizations.

ISO 14001 Renewal Audit
From February 5, 2018, to February 9, 2018, the ISO 14001 renewal audit was conducted by DQS Japan Inc. and we received the ISO
14001:2015 Standard certification.
In this audit our efforts to promote products with improved fuel economy and energy saving in our plants were highly evaluated.
In order to address the items that were pointed out during this inspection, we will from now on involve peer groups horizontally in eachof our divisions, and continue to develop our systems that are currently in place.

36 Annual Report 2018

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 2017 Fiscal Year
(JPY Million)

Item

Investment

Cost

Anti-pollution Measures

31

74

Introduction of waste water treatment equipment andenvironmental installations

Preservation of the Global
Environment

125

62

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

Recycling Natural
Resources0109

Waste disposal, recycling

Management

021Monthly environmental events; periodic ISO inspections

Research Activities

0

2,713

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

Social Activities

0

7

156

2,986

Subtotal
Total

Details

Planting of trees around our offices; environmental
education

3,142

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

Item

2015

2016

2017

CO2 Emission Reduction Costs(Compared to Previous Year)

64

0

6

Reduction of Waste Disposal Costs(Compared to Previous Year)

0

75

38

Subtotal

64

75

44

2015

2016

2017

383

463

651

2015

2016

2017

73 tons

44 tons

49 tons64.6 kilotons of CO2

66.8 kilotons of CO2

69.3 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 201837

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 2018

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 2017 and Our Targets for 2018
Item

FY 2017

FY 2018

TargetResultEnergy Saving
Activities

Amount of energy used
Base Unit
55.6 tons of CO2/10 Mil. JPY

Base Unit:
0.5% reduction relative toprevious year
55.9 tons of CO2/10 Mil. JPY×Base Unit
55.0 tons of CO2/10 Mil. JPY

3R Promotion
Zero Emission

Waste resulting fromproduction
Base Unit
2.49 tons/10 Mil. JPY

Base Unit:
0.4% reduction relative toprevious year
2.51 tons of CO2/10 Mil.
JPY×Base Unit
2.47 tons/10 Mil. JPY

Product Development
Improving Fuel
EconomyDevelop line-up of low fuelconsumption products

Mass production delivered○

Develop line-up of low fuelconsumption products

Reduction/Abolition
and Management of
Substances Impacting
the Environment

Management based on
PRTR
Comply with environmental
regulations
Strengthen product chemical
substance management
systemReported to government and
JAPIAEmergency response training○

Management based on
PRTR
Comply with environmental
regulations
Strengthen product chemical
substance management
systemLecture at Osaka Pref.
Chemical SubstancesCountermeasures Seminar

Target*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

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.

Annual Report 2018

39

※1

CO2Emissions per Sales ※2 (2007 base year)※1 Source of CO2 conversion factor of electricity: Japan Auto Parts Industries Association 0.453 t CO2/1000 kWh※2 Japan Auto Parts Industries Association Activities in accordance with the 8th “Voluntary Environmental Action Plan”

Amount of Waste Discharged and the Basic Unit (2007 base year)

40 Annual Report 2018

Amount of Chemical Substances Discharged and Transferred
PRTR Subject Chemical Substance (FY2017)

Location

Headquarters

Ueno
Division(Unit: kg)

Class I Designated Chemical
Substance

AmountDischarged

No.

Name

Atmospheric
Emissions80

Xylene

1,300

0

0

384

1-Bromopropane

1,600

0

0

80

Xylene

120

0

0

7.5

0

0

24,000

0

0

296
384

1, 2, 3, 4 -Trimethylbenzene
1-Bromopropane

Consumed

Transferred
Industrial
Waste

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. Also, a part of theactivities of our affiliated companies is introduced.
Preparing this report, we referred to the Environmental Report Guideline (2012 Edition) issued by the Ministry of the Environment. The report covers theperiod from April 1, 2017 to Saturday, March 31, 2018. However, matters from other periods that were deemed necessary, have been included as well.
·Published June 2018

Annual Report 201841

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 2018

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

EXEDY Lectures at the Osaka Prefectural Seminar for Countermeasures against Chemical Substances
EXEDY received a request from Osaka Prefecture to deliver a lecture at the Seminar
for Countermeasures against Chemical Substances for 500 Osaka businesspersons in
February 2018.
At the seminar, as an example of our management of incoming chemical substances,
we introduced our initiatives when introducing new chemical substances and acase in which we replaced anti-rust oil with a product that has a low impact on theenvironment, health and safety.

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

Annual Report 201843

Example
In January 2017, we held the Green Procurement Briefing. Here werequested the 98 participating companies for their cooperation instrengthening our product chemical substance management system.

Green Procurement Briefing

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.

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.

EXEDY EcoIn an effort to create the ‘Ultimate Eco Vegetable Factory’, EXEDY Electric Facilities Co., Ltd.established EXEDY Eco in June 2016. At
EXEDY Eco, we use solar powered LEDs etc. to create the optimal environment for photosynthesis, and cultivate frill lettuce, tomato
and other kinds of vegetables and fruits. Based on our theme of “safe vegetable cultivation”, EXEDY Eco aims to utilize solar power
generation while manifesting our goal of social participation of handicapped people. We also hope to provide a spark so similar facilities
will spread across the country.

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 2018

Supply Chain

Efforts to Reduce Environmental Impact

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 201845

Supply Chain

Initiatives Involving Our Suppliers

Environmental Action
In order to respond to environmental problems in our business activities, we have been
continually working on improving our environmental management system since acquiring
an ISO 14001 certification. In order to implement production with consideration for theenvironmental 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 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
Introduction
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
In FY2016, we requested self-audits regarding environmental initiatives for companies that have not yet acquired ISO 14001. We
requested the companies that did not meet the desired standards to improve and hereby we were able to raise the overall level.
2.Management of chemical substances briefing
We conducted a survey and held a briefing session for cooperating companies that need further understanding. It was held in January
2017 and 82 companies participated.
3.Inviting cooperation companies to attend external seminars
Following the revision of Eco Action 21, we informed cooperating companies about the “New Eco Action 21 Introduction Seminar”
organized by the Ministry of the Environment.

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
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” in our Purchasing Guidelines Briefings, andwe ask our cooperating companies to pass it on to their suppliers.
In addition, we inform our cooperating companies regarding various seminars on
promoting fair and transparent transactions to raise their awareness.

46 Annual Report 2018

Seminars•November 1, 2016 SME Guidelines for Appropriate Transactions for in the Automobile Industry Seminar•February 3, 2017 Guidelines for Appropriate Transactions in the Automobile Industry - Subcontracting Seminar•July 3, 2017 Regarding Compliance with the Act For Special Measures to Prevent and Correct Actions Interfering with Shifting
Consumption Taxes•January 1, 2018 Guidelines for Appropriate Transactions in the Automobile Industry - Subcontracting Seminar

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.

Attended Seminars
Briefing Relating to Voluntary Action Plan Details and Revisions to Promotion Standards
Organized by: Japan Auto Parts Industries Association
Date: Wednesday, February 01, 2017
Place: Red Cross Japan, Osaka Branch
Guidelines for Transactions in the Formed and Fabricated Materials Industries · Subcontractor Law Seminar “Towards Fair
Transaction in Formed and Fabricated Materials Industries”
Organized by: Sokeizai Center
Date: Friday, September 15, 2017
Place: Shin-Osaka Brick Building

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. In 2017, 142 companies answered our request.
*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 201847

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 2018

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 201849

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 2018

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 201851

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 2018

Donations
Here we introduce EXEDY Group’s donations.

Donation of Practice Manikins for Clearing Blocked Airway Caused by a Foreign Body (EXEDY)On May 23, 2014, the Hirakata Neyagawa
Fire Department presented our company
with a letter of appreciation for our
donation of the “Choking Charlie” practice
torsos. We donated four choking manikins
to the Fire Department. They were able totrain CPR and AED methods in their lifesaving trainings, however, they were unable
to practice choking rescue methods until
now. The Fire Department expressed its
gratitude, letting us know that they will not
only use the manikins for regular life-saving
training, but also for improving the skills of
the firefighters.

Letter of Appreciation for Our AED Donation (EXEDY)In June 2015, we received a letter ofgratitude from the Hirakata-Neyagawa
Firefighters’ Union for our donation of
AEDs. We will continue to diligently makecontributions to our local communities.

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 201853

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 2018

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”. We promote “Challenge Activities” (management activities) based on the company policy of “Safety・Quality・Donpisha(Just in Time)・Cost” (our system of prioritization), so employees will feel lucky that they work for EXEDY. In order to continue to be
successful as a global company, we believe that developing global human resources and contributing 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.

Annual Report 201855

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
and sales companies. The EXEDY WAY, which isthe core of our company, embodies our values
and way of thinking and leads the way to growth
globally. As managers at the various locations
share this way of thinking, we are able to achieve
further development.

Top Seminars
Since 2012 we have been inviting well-known individuals to EXEDY Headquarters, where
they lecture about their personal challenges. Until 2016, we held a total of 21 lectures.
Through these lectures our employees learn about different ideas and perspectives. 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.

56 Annual Report 2018

QC Circle Convention Achievements—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)—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)

The Fruit Nodoame Circle (Purchasing Headquarters) was awarded the Director’s Award Gold Prize on June 9, 2017 at 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.

Forklift Olympic Event

Measurement Skill Olympic Event

Annual Report 201857

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

Female Advancement Initiative
Our company focuses on creating a comfortable working environment for women. Because quality is of vital importance in the
manufacturing industry, we try to incorporate the ideas, viewpoints and sense of our female employees in various ways. In November
2009, we established a torque converter production line operated exclusively by women. After hearing the opinions of the female
workers, we made various adjustments to the production line such as lowering the the operation panels and start switches by 5 cm. We
also established a women-only break room. Our company will continue to improve the working environment for women.

Promoting Childcare and Nursing Care
There are 16 female employees who took childcare leave in FY 2016 and the return-towork rate is 100%. Also, support is provided at the start of the leave period and whenreturning to work. Our employees are able to take nursing leave up to three times for aperiod of two years, exceeding the legally stipulated 93 days; we meet the needs of anaging society. From now on, we will focus on expanding the use of childcare leave among
our male employees, to support the generation of double-income households.

Employing Foreigners
Currently we employ 670 foreigners from 19 different countries. Working with people withdifferent backgrounds on a daily basis, cultivates a global perspective and way of thinking.
Even though nationalities and background of our employees differ, we share our wayof thinking, the “EXEDY WAY”. Based on our “Challenge Activities”, we all cooperate inworkplaces such as Accounting, Human Resources, Sales and Development, making fulluse of our individual strengths.

58 Annual Report 2018

Technical Trainee System
In 2017, a total of 190 people came to themother plant in Japan through the TechnicalTrainee System from affiliated companies
in various countries such as Thailand,
Vietnam, Indonesia, Mexico, etc., to polishtheir technical skills. We welcome themwith a spirit of Japanese hospitality andprovide 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
We believe that people with disabilities are of great value to our company, and in March 2011 we established EXEDY Sun Co., Ltd.,a special subsidiary where employees with disabilities play an active role. Including this special subsidiary, our company employs
51 people with disabilities, which is 2.15% of our total number of employees. With this number we surpass the legally mandated
employment ratio of 2.0% (as of March 2017). In addition to our support in every aspect of their daily work, we hold meetings withhearing impaired employees once every two months, with the help of a sign language interpreter. Using their suggestions we strive tocreate 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. Employees over
60 years old stay motivated and play an active role, mainly in guiding junior employees and handing down skills and expertise.

Annual Report 201859

Employees

I LOVE EXEDY Activities

Because it’ s better to work at a company that is enjoyable to be at, we want to make our employees feel lucky that they work at
EXEDY. In order to achieve this, we are carrying out our I LOVE EXEDY 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; in 2017 the combined summer festivals attracted 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 2017 the summer festival at the Headquarters attracted 3,056 visitors, a new record. Highlights of the event were the on-site daycare
pupils’ dance, the performance by the Baton Twirling Club of the Shijonawate Gakuen High School, tug-of-war and ball-toss contests
between departments. At the food stalls we served sausages, fried chicken, ice cream and pineapple.

Bouncy ball scooping

Food stalls

LotteryTug-of-war contest

Lottery

Ueno Division
At the festival at our Ueno Division we
enjoyed the traditional Thai dance of ourtechnical trainees, tug-of-war and ball-tosscontests between departments and dance
performance by the junior cheerleaderswith Kunon-chan, the mascot of Iga FC
Kunoichi, womens football team playing in
the Nadeshiko league. The SuperGT500
race car we had on display, attracted a
lot attention as well. The summer festival
at the Ueno Division attracted 1,151
local residents and employees and theirfamilies.

60 Annual Report 2018

Traditional Thai dance by our technical trainees

Kawagoe Plant
At our Kawagoe Plant, visitors enjoyed a performance of the Kawagoe Technical High School brass band, played table tennis withmembers of the EXEDY womens’ table tennis team and there was an EXEDY-sponsored race car on display. At the stalls we had ashooting gallery and we served ice cream, fried soba noodles and pop corn. The lively event was attended by 174 people.

Tug-of-war contest between departments

Shooting gallery

Race car on display

Lottery

Kawagoe Technical High School 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

Lottery

Annual Report 201861

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.

62 Annual Report 2018

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.

Annual Report 201863

Employees Support Racing Driver Employed by EXEDY
EXEDY employee Ai Miura is the only women to compete in the Japanese Formula 3 Championship. She won round 2 of the 2014
season, becoming the first women to win a race in the N Class. Especially the Ai Miura supporters’ tour, where many of her colleagues
follow her to the circuit to watch her race, is a highlight of the season, and gives our employees a sense of unity. At our company there
is a supporters club for Ai Miura, and since 2016 we organize a karting event where race loving employees compete with each other.
We divided drivers in different categories so even beginners could easily participate in the event. The fastest drivers won a prize.

Japanese Formula 3 Championship Supporters’ Tour

Headquarters, Ueno Division and EXEDY Nara supporters’ tour

Technical trainee supporters’ tour

Kawagoe Plant supporters’ tour

Employee Karting Event

64 Annual Report 2018

EXEDY Fukushima supporters’ tourTable Tennis TeamThe women’s table tennis team that was founded in 1988, celebrates its 30th anniversary in 2018. The team participates in the Japan
Table Tennis League, the pinnacle of domestic table tennis, and finished the second half of the season in fifth place of the highest
division. In addition, the team has finished in the best eight at the All-Japan Women’s Corporate Tennis Championships on two
occasions.
In preparation of the National Sports Festival of Japan to be held in Mie in 2021, the members of our table tennis team have been
training 18 boys and girls as a part of the ‘2017 Mie Table Tennis Association Elementary and Junior High School Development
Program’ organized by the Mie Table Tennis Association. In February 2017, the ‘Kawagoe Table Tennis Class’ was held with 45
students of Yoshino Junior High School table tennis club and Sun Life Kawagoe in Kawagoe, Saitama Prefecture. We will continue ourinvolvement with local communities through such activities.

Kawagoe Table Tennis Class2017 Mie Table Tennis Association Elementary andJunior High School Development Program

Iga FC Kunoichi
Our company became the main sponsor of the Iga FC Kunoichi Womens’ 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. All members of the 2017squad are employed by EXEDY. We provide an environment where the players work until 2 pm every day, and can focus on training in
the afternoon. This is how we help create an environment for womens’ football and contribute to its development.

Annual Report 201865

Corporate Data
BOARD OF DIRECTORSAND CORPORATE AUDITORSEXECUTIVE OFFICERS

As of June 30, 2018

As of June 30, 2018

As of March 31, 2018

President and Chief Executive Officer :Hidehito Hisakawa

Senior Executive Managing Officer :Masayuki Matsuda
Shogo Okamura

Name:
EXEDY Corporation

Number of Issued Shares:
48,593 thousand shares

Director : Masayuki Matsuda
Shogo Okamura
Hiroshi Toyohara
Kenji Matsuda
Tadashi Nakahara
Shinji Fujimoto
Makoto Mitsuya
Koji Akita
Ichizo Yoshikawa
Toshiki Takano

Executive Managing Officer :Hiroshi Toyohara
Kenji Matsuda

Established:
July 1, 1950

Number of Shareholders:
12,768

Senior Executive Officer :Tadashi Nakahara
Yoshihiro Kojima
Tetsuya Yoshinaga
Tomoaki Goto
Junji Yamakawa

Shinji Fujimoto
Mitsuhiro Gondo
Yoshimi Osanai
Yuzuru Hirose

Paid-in Capital:￥8,284 million

Average number of shares
held by one Shareholder:3,723 shares

Executive Officer :Masahito Baba
Ryu Suzuki
Tatsuyuki Aoki

Yoshihiro Yamamura
Mitsugu Yamaguchi

Auditors : Keizo Nishigaki
Kanshiro Toyoda
Tadashi Fukuda
Satoshi Tsubota

OUTLINE OF COMPANY

Number of Employees:
2,690
Number of Authorized Shares:
168,000 thousand shares

Listed on First Sections,Tokyo Stock Exchange

DOMESTIC NETWORKHead Office

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

Tokyo Sales Office

Shishido Building 6th Floor, 1-15-14 Sakai, Musashino-shi,
Tokyo, 180-0022
Tel: 81-42-250-0751 Fax: 81-42-253-1110< Utsunomiya Office >Data Service Utsunomiya Bldg. 5th Floor, 4-8-22 Motoimaizumi,
Utsunomiya-shi, Tochigi, 321-0954
Tel: 81-28-614-3620 Fax: 81-28-614-3680

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

CITY21 Bldg., 6th Floor, 320-4 Sunayama-cho, Naka-ku,
Hamamatsu-shi, Shizuoka, 430-0926
Tel: 81-53-413-6011 Fax: 81-53-413-6012

Chubu Sales Office

Tosho Bldg., 2nd Floor, 1-16-5 Mikawaanjo-cho, Anjo-shi, Aichi, 446-0056
Tel: 81-566-71-2750 Fax: 81-566-72-7015

Hiroshima Sales Office

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

Ueno Division

2418 Ota-cho, Iga-shi, Mie, 518-0825
Tel: 81-595-23-8101 Fax: 81-595-24-5521

Kawagoe Plant

1-103-25 Yoshinodai, Kawagoe-shi, Saitama, 350-0833
Tel: 81-49-225-0601 Fax: 81-49-225-0600

Hiroshima Plant

6-11 Taguchi Kenkyu Danchi, Higashi Hiroshima-shi, Hiroshima, 739-0038
Tel: 81-82-425-3434 Fax: 81-82-425-3436

DYNAX Corporation

1053-1 Kamiosatsu, Chitose-shi, Hokkaido, 066-0077
Tel: 81-123-24-3247 Fax: 81-123-49-2050

EXEDY Casting Co., Ltd.

112 Haishi, Fukuchiyama-shi, Kyoto, 620-0955
Tel: 81-773-22-1156 Fax:81-773-23-8477

EXEDY Logistics Co., Ltd.

1-30-1 Kidamotomiya, Neyagawa-shi, Osaka, 572-0822
Tel: 81-72-822-1462 Fax: 81-72-822-1174

EXEDY Trading Co., Ltd.

1-1-33 Kidamotomiya, Neyagawa-shi, Osaka, 572-0822
Tel: 81-72-824-7633 Fax: 81-72-822-1016

EXEDY Sun Co., Ltd.

1-16-5 Kidamotomiya, Neyagawa-shi, Osaka, 572-0822
Tel: 81-72-822-1147 Fax: 81-72-824-3871

EXEDY Electric Facilities Co., Ltd.

8-6 Hyuga-cho, Moriguchi-shi, Osaka, 570-0023
Tel: 81-6-6997-3131 Fax: 81-6-6997-3150

Nippon Retarder System Co., Ltd.

1-1-33 Kidamotomiya, Neyagawa-shi, Osaka, 572-0822
Tel: 81-72-820-0911 Fax: 81-72-824-1035

EXEDY Fukushima Co., Ltd.

65, Matsubara, Torimiyama, Matsuyama-machi, Kitakata-shi,
Fukushima, 966-0901
Tel: 81-241-23-3100 Fax: 81-241-25-7367

EXEDY Kyoto Co., Ltd.

EXEDY SB Hyogo Co., Ltd.

EXEDY Precision Co., Ltd.

EXEDY Nara Co., Ltd.

EXEDY ENGINEERING ASIA Co., Ltd. (EEA)

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

Shanghai Tiger Metal Products Co., Ltd. (STM)

15 Kizuogawa, Kizugawa-shi, Kyoto, 619-0214
Tel: 81-774-73-0631 Fax: 81-774-73-2147
104-1 Joden, Mimasaka-shi, Okayama, 701-2625
Tel: 81-868-74-3501 Fax: 81-868-74-3503

3-2-4, Nakanoshima, Kita-ku, Osaka-shi, Osaka, 530-0005
Tel: 81-6-7708-8173 Fax: 81-6-7708-8182
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, U.S.A.
Tel: 1-865-932-3700 Fax: 1-865-932-2230

EXEDY Globalparts Corporation (EGP)

8601 Haggerty Road, Van Buren TWP, MI 48111-1607, U.S.A.
Tel: 1-734-397-3333 Fax: 1-734-397-7300

DYNAX America Corporation (DXA)

568 East Park Drive, Roanoke, VA 24019, U.S.A.
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

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)

Unit2, Rokeby Court, Manor Park, Runcorn, Cheshire, WA7 1RW, U.K.
Tel: 44-1928-571850 Fax: 44-1928-571852< Moscow Representative Office >Park Place, Office E311, Leninskiy prospect 113/1, Moscow, 117198, RUSSIA
Tel: 7-495-510-6175 Fax: 7-495-510-6176< Netherlands Representative Office >Tradepoint A109, Atoomweg 63, 3542AA Utrecht, Netherlands
Tel: 31-30-850-5446

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 2018

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

No.350 Rongxiang Road, Songjiang Export Processing Zone,
Shanghai 201613,CHINA
Tel: 86-21-57748388 Fax: 86-21-57748389

698 Wudu Road Jiading District, Shanghai, 201812, CHINA
Tel: 86-21-6900-8606 Fax: 86-21-6900-8605

EXEDY India Ltd. (EIL)< 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

PT. EXEDY Manufacturing Indonesia (EMI)

EXEDY Clutch India Pvt. Ltd. (ECI)PT. EXEDY PRIMA INDONESIA (EPI)

EXEDY Poipet Co., Ltd. (EXP)

Jl. Permata V Lot EE 3 Kawasan Industri KIIC Karawang 41361
Jawa Barat, INDONESIA
Tel: 62-21-89114666 Fax: 62-21-89114568
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: 86-23-62924439 Fax: 86-23-62900348

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)

Shop No.3240 Xinguangcong Auto Parts Market, No.113 Road Baiyun,
Baiyun District, Guangzhou, 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

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

2018.7.200. 5302 Printed in Japan