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February 20, 2023
YUSHIN PRECISION EQUIPMENT CO., LTD. (TSE Prime: 6482)
Representative: Takayo Kotani, Representative Director and President
Inquiries: Kota Oda, Director and Executive Vice President,
General Manager of Admin. Div.
Tel: +81-75-933-3633

Sustainability Basic Policy and Materiality
This is to inform that we have established sustainability basic policy of our group to realize sustainable
society and increase corporate value in mid- and long-term, and identified materiality (key issues.)
1. Sustainability basic policy
We contribute to the creation of a sustainable society and environment, and aim to increase our corporate
value by continuously developing our business, through our business activities centered on providing
labor-saving solutions.
2. Materiality (key issues)
Resolving social issues through business⚫

Promotion of occupational safety⚫

Productivity improvement of customers’ factory⚫

Tackling climate change

Strengthening management base for sustainable growth of our group⚫

Strengthening human resources⚫

Strengthening corporate governance*Refer to exhibit for detail.
3. Sustainable committee structure
Chairperson

Representative Director and PresidentMembers

General Manager of R&D Division, General Manager of Administration Division, General
Manager of Manufacturing Division, General Manager of Purchasing Division, General
Manager of Sales DivisionMateriality Assessment (identifying key sustainability issues)

EXHIBITWe established the sustainability committee in August 2022 and began examining key sustainability issues (materiality). In February 2023, weidentified five issues for materiality.
In identifying these issues, we first listed candidates for materiality from the viewpoints of stakeholders and our group management. We discussed
the candidates at Board of Directors meeting and with selected members from various divisions. As a result, we have identified those of particularimportance by mapping the candidates according to their importance.
Going forward, we will establish policies for addressing identified materiality, and through the implementation of these policies, we will strive tocontribute to the creation of a sustainable society and environment and to increase corporate value.

Strengthening the management base for thesustainable growth of our group

Solving social issues through business

Materiality

Why we think it is important ?

Promotion of occupational Because occupational safety is an important factor for us as a manufacturer ofsafety
production facilities, and it leads to fundamental respect for human rights.

Because productivity improvement can bring high-value-added products to
Productivity improvement
people and the products can improve living standards of people around the worldof the customers’ factory
including healthcare and education.

Tackling climate change

Because climate change is a major problem that threatens the living environment
for many people around the world. Corporations should address the problems as
members of the world.

Examples of initiatives••••

Development of products with enhanced safety performance
Providing customers with trainings for occupational safety
Continuous efforts of the Health and Safety Committee
Thorough implementation of human rights policies and implementation ofdue diligence•••

Development and sales of high-speed and high-precision robots
Functions to improve productivity
Enhanced maintenance and service system•••

Development and sales of energy-saving products
Switching electricity usage of our business sites to renewable energy
Switching from gasoline-powered vehicles to environmentally friendly
vehiclesIdentifying climate-change risks at our sites and supply chains, andformulating BCP••
Strengthening humancapital

Because people are the source of added value.

•••

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•
Strengthening corporate
governanceBecause lack of trust of stakeholders make business operations difficult. Penalties
associated with compliance violations, decline in brand value, and data leaks due •to security failures also can be threats against the operations.
•••Thorough implementation of human rights policies and implementation ofdue diligence
Creating a culture and environment that makes innovation happenSystem to allow long-serving in accordance with respective life stages
Effective training

More than one-third of directors are external directors
Establishment of Nomination and Renumeration Committee (chaired byan external director)
Evaluating effectiveness of Board of Directors
Whistleblower system
Compliance training for employees
Improving data security