Sustainability Report 2023

Sharp NEC Display Solutions, Ltd.

Contents
1.Corporate Profile

4.Social Initiatives

Message from the President

Basic Policy of CSR Management

Corporate Philosophy

Supply Chain CSR

Corporate Profile

Quality and Customer Satisfaction

Product Lineup

Human Rights and Labor

2.Sustainability Management

Occupational Health and Safety

Sustainability Materiality

Diversity Management

Message from Sustainability Officer

Human Resource Development and Personnel System

Third-party Evaluations

Social Initiatives （For Local Communities）■Clean-up activities ■Sales event with Tomoshibi Cafe
■Blood donation activities ■Collect PET bottle caps and donate■Environmental Conservation Initiatives ■Activities at each site around the world

3.Environmental Initiatives
Environment Policy and Action guidelines
Environment Management Promotion

5. Governance

Environmental Activities （Product Activities）

Corporate GovernanceGreen ProductInternal Control

Recycling

System to Promote ComplianceGreen Procurement （for suppliers)Intellectual Property Protection

Compliance to Global Standards

Export Control

Environmental Activities （Business site Activities）

Information Security

Activities to Reduce Environmental Impact（Energy Conservation ）Business Continuity Plan and Disaster Prevention Measures

Activities to Reduce Environmental Impact（Industrial Waste Reduction）

Hotline for Compliance Issues

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Message from the President・Corporate Philosophy
Sharp NEC Display Solutions is responsible for the visualsolutions business around display devices.

Corporate Philosophy

Today, display devices permeate our daily lives, spanning from

We provide high quality imaging solutions that impress and satisfy our customers.

information displays at railway stations and airports, promotional
displays in stores and shopping malls, projection mapping at

Corporate Vision

events and theme parks, to even safety applications that monitor

We connect "people, hearts, and places worldwide" by enhanced images

the infrastructure to make our lives safer and more comfortable.

and create a new, inspiring daily life.

Crisp high-quality displays from Sharp NEC Display Solutions
have won the trust and high reputation of customers in morethan 120 countries and regions around the world.

Sharp NEC Display Solutions, Ltd.
President Toshiaki Yamamoto

Management Policy

In modern society, where information and communications technology continues to•We will be a company that earns the continuous confidence of all stakeholders.

advance, the need for “Visual Solutions” to transmit and share digitalized information will

•We will provide optimum quality products and services all over the world by using

be greater than ever in both business and daily life. There will be many morestate-of-the-art technologies and the highest level of knowledge in all parts of theopportunities to use display devices and visual solutions like multi-language guidevalue chain.

display, contents display by customer demographic analysis and warning display system•We will consistently strive to create new markets and expand business activities.

through video analytics.

•We will fulfill our corporate responsibility in all situations and continuously adapt to

In addition to our own developed technological capabilities and global structure, wechanging environments.

generate synergy with Sharp Group’s strong assets such as key components and IWB,
together with future development strategies such as 8K and AIoT and we acceleraterealizing to be a “Global Display Solutions Provider”.
As a “Global Display Solution Provider”, Sharp NEC Display Solutions is committed to•We will work to establish positive corporate ethics and ensure compliance, as well asprotect the environment, as a good corporate citizen.
•We will give our best efforts to develop human resources and individual capabilities inorder to enhance the growth of both the company and individuals.

delivering crisp image and visual solutions to meet the diverse needs of all of its
customers.
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Corporate Profile

Percentage of Sales by Global Market

Company Name

Sharp NEC Display Solutions, Ltd.

Head Office

Mita Kokusai Building, 4-28, Mita 1-chome, Minato-ku, Tokyo
108-0073 Japan

Capital

3.0 billion yen(jointly invested by Sharp Corporation and NEC Corporation)

Business Field

Development, manufacturing, and sales of visual display products
and visual display solutions

Asia Pacific
Japan

40%
AmericaChina74.95 Billion yen
FY2022 Global
Consolidated

Employees

Approximately 800 (Global consolidated)

Establishment

January 18,2000

Commencement(Company Name
Change)November 1,2020

Net Sales

74.95 billion yen(Global consolidated sales for the fiscal year ended March31, 2023)

North America,
Central andSouth America

35% Europe
Western Europe, Eastern Europe,
Middle East, Africa

Percentage of Sales 40％ America 35％ Europe 10％ China
by Global Market
6％ Asia Pacific 9％ Japan
Development
Facilities

Shonan Technical Center, Kanagawa, Japan

Overseas Affiliates

Sharp NEC Display Solutions of America, Inc. (USA)
Sharp NEC Display Solutions Europe GmbH (Germany)

Regional
Headquarters in
China

Sharp NEC Display Solutions (China), Ltd.
(Shenzhen, China)(As of March 31,2023）
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Product Lineup
Handled products differ by region. Please see our website for details.
https://www.sharp-nec-displays.com/global/products.html

Standard models
Whilst compact, this range also features high image quality
and energy saving. Excellent for easy connectivity,
installation, adjustment and operation.

Short-throw projectors
Sort-throw projectors that enable large-screen projection,
suitable for small conference rooms where the projection
distance is not sufficient.
Professional models
Multi-functional projectors for large spaces, easy to use inbright conference rooms and classrooms, meeting a wide
range of installation needs.
DLP Cinema® Projectors
Cinema projectors with expressive power that conveys the
texture of images, solid reliability in professional settings,
and can be used in a variety of theaters.

Large Format Displays
For digital signage, conferencing and meetings.
Large screen displays that are highly reliable and durable,
effective across a variety of industries and applications.

Direct View LED Display
Full-color LED displays for indoor and outdoor use.
Creates a large, seamless surface with vivid colors andhigh visibility even in bright environments.
IT Display
A complete lineup tailored to different usage scenariosand purposes benefiting from advanced ergonomics andease of use.

Business PC Selection
To meet the diverse needs of our customers, we offer awide variety of displays that can be selected from NEC’s
Business PC Selection Menu in Japan.

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Sustainability Management

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Sustainability Management
Today, display devices and solutions are used in a wide range of situations that require

Message from Sustainability Officer

rich images, such as social infrastructure, business, education, and entertainment.

Sharp NEC Display Solutions has customers in more than 120 countries and regions

In order for customers to use our products with peace of mind in a variety of situations, itaround the world, and has been working to solve different social problems in each region.

is necessary to continuously address social issues such as respect for human rights,

In recent years, sustainability initiatives have been taken up as a common global issue.

improvement of working conditions, promotion of health and safety, environmental

Therefore, we have decided to launch the Sustainability Working Group in Fiscal 2023 ininitiatives, practice of fair trade, fostering a sense of ethics, and sound procurement

cooperation with our overseas affiliates in Europe and other parts of the world, which arepractices through our business activities.

particularly advanced in terms of sustainability.

In order to solve a wide range of social issues through sustainable management, we

The working group will be subdivided into promotion, quality and product planning tohave identified the following materiality and are taking action on them.

accelerate overall sustainability initiatives.

Contributing to society through rich images

In addition, we are working to address local social issues as a member of thecommunities where we do business.
As a member of the community, we will contribute to the realization of a sustainable
society in collaboration with our stakeholders.

Creation of Environmentally-Friendly Products

Promoting the Recycling of Industrial Waste

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Sustainability Management
Third-party Evaluations
Green Signage Award

Certified as an "Oi-machi SDGs Partner"

In recognition of our efforts to extend the product lifecycle and continually instigate

Sustainability initiatives at the Shonan Technical Center (Oi-machi, Kanagawa

sustainability management initiatives, we received the Green Signage Award at thePrefecture) have lead to our certification as an "Oi-machi SDGs Partner" as we work

Digital Signage Summit in Munich in 2022.

together with the communities where we do business.

（https://www.sharpnecdisplays.eu/p/eeme/en/news/details/rp/2022/specialtopics/invidi

For details, please see the Oi-machi website.

sgreensignageaward.xhtml）(https://www.town.oi.kanagawa.jp/uploaded/attachment/9230.pdf)

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Environmental Initiatives

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Environment Policy and Action guidelines
We have established an environmental policy based on the philosophy of contributing toEnvironmental Initiatives

the realization of a sustainable society.

As a system for putting our environmental policy into practice, we are working to

Based on six specific action guidelines, we will strive to operate environmentally friendly

contribute to the realization of a sustainable society based on "product activities"business sites and design and develop environmentally friendly products and services.

and "business site activities" under the leadership of the president.

Environmental Policy
We consider the environment an important management issue, and we will contribute to
the construction of a sustainable society by providing products and solutions with

Product Activities

consideration to environmental issues.
environmentally friendly
products

Action guidelines

1. We will promote business activities considering the environmental issues of green
procurement, waste reduction, energy and resource saving, and the control ofhazardous substances.
2. We will provide products considering the environmental issues of energy-saving
design, hazardous substance control, and designs using the 3R concept.
3. With the environment management system, we will conduct appropriate environment
maintenance activities and prevent pollution by consistently improving environmentalload conditions.
4. We will communicate with society, through the active disclosure of information
about the environment.

Business site
Activities

Regional
Reconciliation

Reduction of CO2emissions
Waste Reduction
Recycling,etc

Information Dissemination
Community Contribution
Activities

5. We will comply with not only all laws and regulations but also other environmental
requirements.
6. We will provide the necessary educational training to ensure that all personnel
observe this policy.
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Environment Policy and Action guidelines
Sharp NEC Display Solutions has established the following code of conduct for “Environment and Biodiversity" for CSR Management.

The Environment and Biodiversity■Management of chemical substances contained in the products
We manage legally designated chemical substances for all of its products.
■Management of chemical substances used in the manufacturing processes
We manage legally designated chemical substances in the country of operation that are used during the manufacturing processes.
■Environment management system
We develop and manage an environment management system.
■Minimization of environmental impact (drainage, sewage, emission fumes etc.)
We observe the laws and regulations concerning drainage, sewage and exhaust fumes of the country of operation, and set voluntarystandards as needed to further improve the situation.
■Environmental license / Government approval
We observe the laws and regulations of the country of operation, gain approvals from its government as needed and submit management
reports required by the government without fail.
■Effective utilization of resource and energy (3R)
We set a voluntary target to save resource and energy and continue efforts to utilize resource and energy in an effective manner.
■Reduction of greenhouse gas emissions
We set a voluntary target to reduce greenhouse gas emissions and continue reduction efforts.
■Waste reduction
We set a voluntary target to reduce final waste and continue reduction efforts.
■Disclosure of environmental conservation initiatives
We disclose the achievements of its environmental practices as needed.

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Environment Management Promotion
Environment Management Promotion

Environmental ISO Certification Activities
We have gained ISO 14001, an international standard for environmental management
systems. In 2020, Sharp NEC Display Solutions also underwent the examination standardsof JQA(Japan Quality Assurance Organization),an external certification body, and haveobtained certification. We will continue to undergo regular audits and work to advance ourenvironmental management system.

Changes in our environmental ISO
1997

NEC Shonan Technical Center gains ISO14001 certification

2007

NEC Display Solutions renews ISO14001 certification

2017

Revised ISO Compliance

2020

Sharp NEC Display Solutions gains ISO14001 certification

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Environmental Activities （Product Activities)
In our product activities, we set annual environmental management targets for our main products, displays and projectors, and carefully analyze the results.

In fiscal 2022, we set a goal of environmentally friendly design based on the Green Product (GP) Guidelines, and we were able to achieve the target value.
By fiscal 2023, we aim to further improve the environmental performance of our products and promote the achievement of higher targets for each evaluation item.

Index

Activities

Fiscal 2022 Targets and Results

Index

Activities

Fiscal 2023 Targets

GP points based on GP guidelines※：50pt or more
GP points based on GP guidelines※：60pt or more

⇒Achievements：○For all target products (7 models),
Achieve more than 50pt
Reducing
environmental
impact ofproducts

Eradication of
newly banned
substances

Promotingenvironmentallyfriendly design

Compliancewith legal
requirements※Achievement of GP Guideline 7 Evaluation Items
1.Energy Saving / Energy Creating
2.Resource Conservation
3.Recyclability 4.Safe Use and Disposal
5.Use of Green Materials and Devices
6.Environmental Consciousness Pertaining toBatteries, packaging and manuals
7.Products that show their environmental
performance and information
The EU REACH regulations：C9-C14 PFCAs
The Swiss ORRChem Ordinance：PFHxS
Confirmation of non-inclusion and 100% completion ofsubstitution⇒Achievements：○Confirmation of non-inclusion oftarget substances
Discontinuation of production ofsome containing products※Achievement of GP Guideline 7 Evaluation Items
Promotingenvironmentallyfriendly design
Reducing
environmental
impact ofproducts

1.Energy Saving / Energy Creating
2.Resource Conservation
3.Recyclability 4. Safe Use and Disposal
5.Use of Green Materials and Devices
6.Environmental Consciousness Pertaining toBatteries, packaging and manuals
7.Products that show their environmental
performance and information

Initiatives in Product Development
Response toEnvironmental
Aspects①Saving power when using the product②Miniaturization and weight reduction（Optimization of the weight of large products）③Reduction of Virgin Plastic Usage※）〇： Achievement level of 100% , △： Achievement level of 80% or more, ×: Achievement rate less than 80% （ Non-conformance in ISO14001 （Achievement rate:×））
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Green ProductWe will shift to product assessment based on Sharp environmental standards and promote the environmentally friendly design of our products.

For NEC brand products, we continue to design products that meet NEC product assessment standards.

■ Eco Technology Display〇UN series〇MA series■ Eco Technology Projector■Human Sensor
The internal human sensor automatically switches the screen
on and off by motion detection. The screen automaticallypowers down when no one is present, which can reduce
wasteful energy consumption.

brightness slightly through setting modes, thus helping tominimize energy usage.
■Standby Mode
Power consumption during standby can be reduced.
This is useful in the case of ceiling installations where themains power cannot be switched off.

■Ambient light sensor
The internal sensor detects ambient brightness levels andautomatically adjusts the screen brightness accordingly
helping to optimise energy usage.
■Auto Eco Mode
When there is no input signal, the display will automaticallyswitch to hibernation mode, contributing to energy savings.

〇M series■Eco Mode〇ME / MC model The replacement interval of lamps is extended by reducing■Carbon Meter
The carbon savings meter calculates the amount of energy
saved by using Eco mode settings and converts it to display
the amount of CO₂ savings.
■Products of the Green Purchasing Law
This applies to some products that meet standards for power
consumption, specified chemical substances, etc.

〇P series〇PA series■Eco-mark certification
Meeting the standards certified by the Japan Environment
Association confirming a low environmental impact andcontributing to environmental conservation.
■Products of the Green Purchasing Law
This applies to some products that meet standards for
power consumption, light source, supply period of
maintenance parts and specified chemical substances, etc.

※The above model is an example. The functions provided differ depending on the model.
※The above models are not subject to GP guidelines.

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Recycling
In Japan, we have established a recycling system for our used products and are promoting recycling based on the Act on Promotion of Effective Utilization of Resources.

Products collected as discarded items are disassembled and recycled by material to make effective use of resources.
For details of the recycling system in Japan, please see our website.
https://www.sharp-nec-displays.com/jp/environment/recycle/index.html①Material Recycling
The compressed material is melted
and reused as a building material.

Trends in the resource reuse rate of our products（％）
100

Recycling Center

80②Thermal Recycling
The compressed material isburned and reused as thermalenergy.

82
78.1

82.1
85.4
79.2
78.8
78.2
78.1

86.6
78.6

84.3
79.0

The legaltarget 55%

60
40
FY2017 FY2018 FY2019 FY2020 FY2021 FY2022■CRT displays ■LCD displays

Collection

Separation

Compression

Recycling

CRT and LCD displays, The legal target for resource reuserate is 55% or more.

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Green Procurement (for suppliers)
Promotion of Green Procurement

Declaration on Environmental Management

In order to aim for a sustainable society and provide environmentally friendly products, we

When entering into a business contact with a new supplier, we require them to implement

are working on "green procurement," to prioritize the procurement and purchase of

our green procurement policy and to sign a declaration regarding their environmental

materials, parts, products, etc. with low environmental impact.

management.

We conform to the Green Procurement Standards of Sharp Group and NEC Group.
Please check our website for details.
https://www.sharp-nec-displays.com/global/environment/supply/guideline.html

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Compliance to Global Standards
Development of environmentally friendly products

Our Environmental Action Guidelines state that,“We will comply with not only all laws and regulations but also other environmental requirements” in order to realize a sustainable
society. In the development of environmentally friendly products, we check the content of chemical substances used in all products.

＜Determine chemical substances used in products＞
We strive to help define and comply with all the EU RoHS, REACH, POPs ,and other legal
requirerments in countries around the word.

＜ Fiscal 2022 Compliance with New Prohibited Chemical Substance Regulations ＞
EU REACH: C9-C14 PFCAs
ORRChem Ordinance in Switzerland: PFHxS and Related Substances
France Environmental Regulations: MOAH and MOSH
the New York State Department of Environmental Conservation: Organic halogen flame retardants

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Compliance to Global Standards
Energy Label and compliance to environmental directives

Showing Eco information of Products

We promote “Green Procurement”, promoting environmentally conscious purchasing

Through the use of environmental labels, we display our environmental performance

activities by procuring parts and materials with reduced environmental impact and withand information so that customers can use our products with peace of mind.

respect to laws and regulations on the use of chemical substances in various countries
in the world.
■Laws and regulations on the use of chemical substances in various countries in the world.

■ Environmental labels in various countries in the world.

*1 Direct View LED : Not covered the standard*2 Direct View LED : Not supported
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Environmental Activities （Business site Activities）
In our business site activities, we set annual environmental management targets and work on items that are evaluated to have a high impact on the environment.

In fiscal 2022, we were able to achieve the target each value of each of these identified items.
Our goals for fiscal 2023 are to promote the achievement of higher target values for each evaluation item with the aim of further reducing environmental impact.

Index

Reduction of CO2 emissions
Promotion ofclimate change
measures

Resource
recycling,
Promotion of
Resource
Conservation

Initiatives toPromoteEnvironmental
Management

Fiscal 2022 Targets and Results

Activities

Reduce CO2 emissions by 2.7% compared to fiscal 2021 results⇒

Reduction of waste emissions

Targets：
Results：○

９０２．９t-CO2
８９１．０t-CO2

Achieve an annual industrial waste value rate of 18.1% or more
※In order to achieve a valuable rate of 30% by fiscal 2026,
Incrementally increase the valuation rate in each year⇒

Top management leads
Implementation of Environmental
Management
Planning and implementation ofenvironmental events
Implementation and participation
rate of environmental training: 100%Results：○

２２．３％

Sending a message from top management
Implementation and dissemination of management reviews
Dissemination of topics and holding events to raise environmental
awareness
Update of environmental standards
Implementation of Environmental education
Update of environmental activity intranet⇒

Results：○

Fiscal 2023 Targets
Reduce CO2 emissions by 4.2% or more from the fiscal 2021 target
Targets：８８９．０t-CO2

Achieve an annual industrial waste value rate of 24.2% or more

※In order to achieve a valuable rate of 30% by fiscal 2026,
Incrementally increase the valuation rate in each year

Sending a message from top management
Implementation and dissemination of management reviews
Implementation of Environment Month, environmental awarenessImplementation of Environmental education
Update of environmental standards

all activities※）〇： Achievement level of 100% , △： Achievement level of 80% or more, ×: Achievement rate less than 80% （ Non-conformance in ISO14001 （Achievement rate:×））
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Activities to Reduce Environmental Impact（Energy Conservation ）～Activity example～
Turn off ceiling lights

Energy Conservation Result(Reduce CO2 Emissions)
We achieved our CO2 emissions target for fiscal 2022, and were able to keep CO2
emissions down to 891.0t- CO2, which is lower than the previous year's results.

The activity is to turn off all the ceiling lights on the office floor except for hallways

In fiscal 2022, the development of various products reached a climax, and the operating

every Friday and every month on payday. In fiscal 2022, we turned off the ceilingrate of experimental equipment used for testing and evaluation of developed products waslights every day in June, which is Environment Month.

higher than in the previous year. On the other hand, the operating rate of gas air

In the first quarter, we were able to reduce surplus consumption by 38% compared

conditioners has remained low due to the reduction in electricity consumption for ceilingto the previous year. For the whole year, we were able to reduce surplus

lights by turning off all at once, and the effects of winter weather. As a result, we were able

consumption by approximately 3% compared to the previous year.

to reduce energy consumption by approximately 4% compared to the previous year.
Monthly CO2 emissions

Annual CO2 emissions
Target: 902.9

Reporting of activity results（kWh）

Surplus Consumption

2021

2022

4,500

－ 4.0％

3,846 3,719

4,000
3,500
3,000
2,500
2,000
1,500
1,000

1,295
799

1,068 937

1,149
836 834

646

500
0

1Q

Apr. May. Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar.

2Q

3Q

4Q

Annualtotal
年間合計※Surplus Consumption･･･Wasted power consumption due to lights not
being turned off in areas where employees
are not present.
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Activities to Reduce Environmental Impact（Industrial Waste Reduction）～Activity example～
Improving the valuable rate of Industrial Waste

Industrial Waste Reduction Result
In fiscal 2022, we were able to achieve a value ratio of 22.3% of total industrial wastes,

Our company has an area dedicated to waste disassembly in our Shonan Technicalwhich exceeded our target. Factors contributing to this achievement included the return ofCenter. A resident disposal company disassembles and separates the industrial waste

landline phones in our offices as valuable items which were replaced in the first half of thewhich is brought there, allowing valuable materials to be extracted leading to waste

fiscal year. In addition, we improved work efficiency by temporarily renting a warehouse

reduction.

area for the separation of products, and improved the value rate by improving the

The waste brought into this area is mainly developed products that have been evaluatedefficiency of sorting general waste.

and tested and are no longer needed. Some companies collect circuit boards, metal parts,(kg)
70,000Trends in Industrial Waste
Valuable Material Emissions And Valuable Rates

24.6%

60,00022.3%

50,00040,000copper wires etc that are valuable materials.
30.0%＜Dedicated disassembly area＞＜An example of separation of development parts＞

25.0%

Sorted into
waste by type.

20.0%

15.1%
15.0%

30,000

10.0%

20,0005.0%

10,0000

0.0%
FY2021

FY2020Total industrial
産廃総排出量waste

FY2022
Amount ofvaluable
有価物量
material

Valuation

有価率
rate

※ Special coefficients, such as organizational revisions, are excluded from the calculation.
※The total amount of industrial waste has been halved since FY2021 because in May 2021, waste was
reduced by transferring the maintenance parts warehouse at the plant to another site, and as well as thefact that fixed assets were not disposed of all at once.

In this area, a resident
disposal company
disassemble and separate
the developed products.

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Social Initiatives

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Basic Policy of CSR Management
We wish to be the entity that customers and society trust, not only throughcompliance with all appropriate laws and regulations, but also by seeking to realize

Strengthen risk management and enforce compliance
We implement thorough risk management within all of our Group companies and business partners,in order to continually respond to the expectations and demands of its stakeholders and to securea sustainable society through initiatives that focus on ESG: Environment, Socialand Governance.

its place in society. To this end, we are committed to avoiding and/or mitigating any negative impact
or risk of negative impact on its stakeholders, society and the environment, such as the potential

We understand the importance of transparency and actively disclose the results

occurrences of violations of human rights and environmental damage. In addition, we practiceand issues of these efforts to our stakeholders, and also use dialogue andcompliance with a constant awareness of the need to prioritize it.

communication to improve our own corporate activities.
We believe that sustainable management requires actively listening to customer

Contribute to solving social issues through business activities

feedback and understanding broader social issues, while pursuing innovation

As a Social Value Innovator, we confirm the social issues that we should address in promoting ourthrough the launch of new businesses and further development of existing business.

business and foster a culture of considering the impacts of our products and services on society.

To this end, we promote CSR (Corporate Social Responsibility) management

We make use of the SDGs when considering these social issues and impacts. We promote andbased on the following basic policy.

delivers solutions for society according to these themes in order to contribute to the realization of anabundant society and bright future, while exploring fundamental issues faced by society andcollaborating with various stakeholders to create new values. We are also contributing to thesolution of social issues through its activities for contributing to society in collaboration with local
communities and NPOs and NGOs.

Basic Policy of CSR Management■ Strengthen risk management and enforce compliance

Promote communications with stakeholders■ Contribute to solving social issues through business activities

We identify the fundamental issues of customers and society and the values they seek by engaging■ Promote communications with stakeholders

in communication and dialogue with a wide range of stakeholders. We disclose the corporate
initiatives taken to solve those issues, the results of these initiatives, and new challenges in CSR
reports and other publications. Furthermore, by continuously implementing improvement measuresthrough PDCA cycles that take into account the feedback from society, we will continue to build
relationships of trust with its stakeholders and society, enhancing corporate value.
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Supply Chain CSR
Audits and Education to Ensure Full Compliance with the Subcontract Act

Promoting CSR across the Entire Supply Chain

In order to achieve sustainable growth together with our business partners, we are required
to fulfill our corporate social responsibilities in various fields such as “fair trading and ethics""environment" "human rights and labor" and "health and safety" throughout the supplychain, as well as initiatives related to the quality, price, and delivery of parts and materials.
Therefore, we have declared our "Basic Policy of CSR Management" and "Code of Conduct

for CSR Management" for internal compliance activities, and monitoring of suppliers’

To comply with the Subcontract Act (Act Against Delay in Payment of Subcontract
Proceeds, etc. to Subcontractors) in Japan, we implement compliance checks and inhouse education on an ongoing basis.
We thoroughly conduct appropriate compliance checks in accordance with internal
guidelines, and hold internal training sessions to raise awareness among employees of
the importance of complying with the Subcontract Act.
In addition, we continuously call attention to the "thorough prohibition of informal acts."

compliance to these guideline.

before going on a long vacation.

Sharp NEC Display Solutions has established the following “Supply-Chain Management”
standards of conduct in its CSR Code of Conduct.

Supply-Chain Management
We communicate our "Supply-Chain CSR Guidelines" to mainly suppliers. We monitor
suppliers’ compliance to this Guideline.

We communicate our “Green Procurement Guidelines" “Supply-Chain CSR Guidelines”
and “Responsibility of Minerals Policy“ to our new supply-chain partners, and request
agreement with these policies and to carry out the appropriate management to ensurecompliance.
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Supply Chain CSR
Mineral Procurement Initiatives

There are concerns that the mineral resources used in IT products are mined in a way that

Responsible Minerals Policy

causes serious health problems for workers or causes damage to the environment of thecommunity. We clarified our policy of neither using nor procuring mineral products mined
improperly in conflict areas and seek the understanding and cooperation of our supply
chain partners.

Responsible Sourcing of Minerals
We have a policy governing conflict minerals issue which states that Sharp NEC Display
Solutions Group will never use conflict minerals unjustly sourced in our products and will
never purchase goods that contain conflict minerals unjustly sourced. Supply chain partners

are requested to agree with this policy and to carry out the appropriate management toensure compliance.

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Quality and Customer Satisfaction
Ensuring Quality and Safety

Quality ISO Certification Activities

Sharp NEC Display Solutions believes that product quality and safety are one of the

We strive to improve the quality and safety of our products. We have been audited by themost important management themes and social responsibilities, and is working toJapan Quality Assurance Organization (JQA), and in 1997 we received ISO9001

provide better products and services that take into account safety, quality, and reliability

certification, an international standard for quality management systems.

in accordance with the Quality Policy.

Through the achievement of ISO9001 certification, we build and operate a quality

Quality Policy

assurance system based on this standard, and strive to provide product quality andTop priority is quality and safety, and through the provision of visual solutions, we will

services that further satisfy our customers.

satisfy and impress our customers !
ISO9001Management System Certificate

Strategy
1.Creating visual solutions that put quality, safety, and customer satisfaction first.
2.Provision of Better Products and Better Services.
3.Development of new technologies and creation of new fields.
4.Contribute to society by maximizing profits and corporate value.
5.Compliance with laws and regulations related to quality and safety.
6.We will become the world’s No.1 in terms of market share in visual solutions.

Three Key Process in QMS
Product Planning Process

Development and design process

After- sales service processａ）Planning Process:Marketing, Product Planning, Commerce Processes
related to product orders and contracts.
ｂ）Development and design process:Process from specifications and design of products
to start of mass production.
ｃ）After-sales Service Process:
After-sales Service, and the process of supportingand managing it.
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Quality and Customer Satisfaction
Enhancing Customer satisfaction
In order to meet the needs of our customers, we provide a wide range of support services, from operation and installation support to maintenance, repair, and recycling systems.

Installation support
We provide a wide range of operation and implementation support services to meet thevarious needs of our customers.
Customization
Service

Assembly Service

Display
Projector

Display

Color Calibration
Service

Medical Display
Network Quality
Control Service

Display

Display

Experience, proposal, and inspirational show-room
We have a wide lineup of projector and display devices, as well as a showroom where
you can experience a number of digital signage solutions.
Our consultancy approach means we can recommend the best fit technology for thecustomer's unique usage scenario and offer a hands-on experience of our proposedsolutions.

Maintenance Services
We provide free maintenance service and paid maintenance service to ensure that theequipment is in good condition after installation. There are also display products that are
eligible for free on-site pick-up repair service.

For customers who find it difficult to visit the showroom, we also offer online LIVEdemonstrations.

Repair Services
We have a contact point for inquiries about repairs on our web site.

Recycling systems
In order to protect the global environment and make effective use of resources, wecollect and recycle used display and projector devices for our business, and recycle
displays for home use.

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Human Rights and Labor
Sharp NEC Display Solutions respects basic human rights and has established theGood Labor-Management Relationship That Prioritizes Dialogue and Respect for
Employee Rights

following code of conduct for “Human Rights and Labor" for CSR Management.

We respects employees’ right to organize and the right of collective bargaining based on

the laws of Japan, and we work to strengthen a trusting relationship with labor unions.
Human Rights and LaborAt Sharp NEC Display Solutions, the union has the right to organize, bargain collectively,■Prohibit forced labor and any enabler of coercive labor
We employ all employees on a voluntary basis, and don't commit forced labor.
■Prohibit inhumane treatment and infringements of human rights
We respect human rights of employees and prohibit harsh and inhumane treatment such as
maltreatments and/or various harassments.
■Prohibit child laborand the right to take collective action.
In addition to setting up regular opportunities for labor management meetings, labor andmanagement regularly exchange opinions on issues related to the business situation andthe workplace environment. When there are issues that will have an impact on the

We don’t employ children who are under the lowest labor age and don’t assign such jobs
that impair children’s development.
■Prohibit discrimination

working conditions of union members, both sides meet for discussion before action istaken.

We prohibit discrimination during the process of job offering and hiring, and endeavor theHarassment Prevention Measures
In order to help prevent harassment and to deal with it should it occur, we have in-houseequal opportunity and fairness of treatment.
■Pay appropriate wages

education for all employees. We have achieved our goal of educating 100% of our

We pay legal minimum wage or more, and don’t practice unfair wage deduction as means ofa disciplinary action.
■Regulate working hours

employees on harassment by 2023.
Training materials on harassment prevention

We regulate employee’s working hours/holidays/vacations not to exceed the legal ceiling.

■Respect the rights to freedom of association
We respect the rights to freedom of association of employees, as means of employeremployee consultation, in order to settle working conditions and/or wage issues, etc.
■Consider minorities
We not only prohibit the discrimination on minorities but also consider protection of their
human rights.
■Protect foreign employees
We consider special care for foreign employees and foreign trainees who are in a weak
position, in the view of human rights.

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Occupational Health and Safety
Sharp NEC Display Solutions has established the following code of conduct for

Organization Promoting Health and Safety“Occupational Health and Safety" for CSR Management.

In Japan, we work to maintain the safety and improve the health of all employees, as well
as further the creation of pleasant working conditions.

Occupational Health and Safety■ Apply safety measures for equipment and instruments
We apply appropriate safety measures for equipment and instruments used in our company.
■Promote safe activities in the workplace
We evaluate their own safety risks and ensure safety in the workplace with appropriate design,technique, and control method.
■ Promote hygiene in the workplace

At Shonan Technical Center, Kanagawa, Japan, “The Safety and Health Committee ”
meets monthly together with the company‘s elected committee, union elected members,

and industrial physicians to action activities that maintain and promote health and safety.
Furthermore, safety and health patrols are held every six months to improve the quality ofoperations in order to maintain a comfortable and safe workplace environment.
In laboratory management, we have established guidelines for cleanup protocols andWe assess the situation of employees’ coming in contact with harmful1 biological or chemical

strive to maintain an accident-free, safe and comfortable work environment for all

substances as well as noise and foul smell in the work place and take proper countermeasures.

employees.

■ Apply appropriate measures for occupational injuries and illnesses
We grasp the situation of occupational injuries and illnesses in the workplace, and provide

Fiscal 2022 Health and Safety Targets and Results

appropriate measures.

■ Properly manage disasters and accidents

Fiscal2022 Health and Safety Target

We prepare the emergency response measures for possible disasters and accidents in order toTargets

Results

Zero industrial accidents

0／year0／yearZero work-related
accidents

0／year0／yearZero accidents on theway to work

0／year0／year

Health and Safety Patrol
implementation andimprovement

Twice a year

June
Decemberprotect human lives, and inform all-out to people in the workplace.
■ Be careful about physically demanding work

Prevention of Accidents
and Disasters

We define the physically demanding works, and control appropriately to prevent injury and illness.
■ Promote safety and hygiene in all company facilities
We keep safety and hygiene appropriately in all company facilities provided for employee’s living(ex. Dormitory, canteen, restroom.)■ Promote health maintenance programs for employees

Creating a Comfortable
Workplace

We provide appropriate health maintenance programs for all employees.
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Occupational Health and Safety
Making Employees Healthier

Enhancing Mental Health Care

We have established an appropriate health management system for all

We use an employee stress check system, which is required under Japanese law, toemployees and strive for better employee health in numerous ways. For example,

help employees understand their level of exposure to stress. The system is expectedbased on the results of periodic health checkups, employees are offeredto lead to the prevention, early detection, and early treatment of mental health issues.

workplace mental health counselling and are provided with health guidance toStress check results are analyzed for each organization so that we can improve theprevent lifestyle diseases, lose weight, and stop smoking.

workplace environment. We offer comprehensive mental health services to employees,

In addition, we offer various health promotion measures, such as health e-learning

including counselling, Mental support programs and Return-to-work support programs.

on-line portal.
A health management office has been set up in the workplace, that allows

Initiatives to Improve Employees’ Mental Healthresident nurses to provide health consultations.
Disclosure of information on the health management portal

Primary prevention
Prevention
health improvement

Secondary prevention
Early detection,
early treatment

Tertiary prevention
Return to work,
prevent reoccurrence

Secondary heathcheckup follow-up

Mental support program

Specific Health Guidance

Return-to-worksupport program

Periodic health checkup
Legally designatedstress check
Mental healthinformation provision

Mental support program

infectious diseases
information provision

Mental healthcounselling meetings

Mental healthcounselling meetings

Mental healthcounselling meetings

Mr.Get, the mascot for Healthy Sharp

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Diversity Management
Disclosure of Educational Content

Prioritizing an inclusive working environment, diversity management creates new value

through equality, ensuring fairness and respect of individuality.
Diversity management is a human resources strategy for utilizing a diverse range of
employees, but we regard it as a business strategy at the same time.
We are working to make the most of our diverse human resources, and deepen
understanding of diversity through training and a portal site.

Promoting Activities of Female Employees
Based on the Act on Promotion of Women's Participation and Advancement in the
Workplace, which came into effect in April 2016 in Japan, we have formulated an action
plan up to fiscal 2024 and are actively working to promote the active participation of female
employees. （https://positive-ryouritsu.mhlw.go.jp/positivedb/detail?id=3949）
Information Disclosure Based on the Act on the Promotion of
Women’s Active Engagement in workplace in fiscal2022
Difference in average length of service
between men and women

men：23.2year women：20.0year

Percentage of female workers at theassistant manager level

10.1％

Gender pay gap※Basic salary only

All employee：74.5％
Staff：74.5％
Part-time：0％
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Human Resource Development and Personnel System
Human Resource Development

Employee Evaluations and Compensation

We have many kinds of development programs aimed at improving the quality andWe use a bonus/pay rise system that is tied to company performance and employee

scope of employees’ capabilities, we conduct "business manor" and "new employee

evaluation in order to reward those employees who have produced good results.

training" of young employees. For us to achieve sustainable growth, we must foster

Goal-setting interviews are held every half year to share the progress of the goals, thethe next generation of leaders who will carry the company into the future. We

degree of contribution, and the results.

conduct "training for mid-career employees" and "training for managers" to acquire

the knowledge, skills, and mindset necessary for each milestone.

Learning for Self-Development

In addition, we regularly conduct education based on Sharp's management

We provide opportunities for anyone wishing to learn for self-development, such as various

philosophy, and code of conduct throughout the Group to disseminate information

correspondence courses and online language training. We have also introduced TOEIC test

detailing matters that employees must comply with.

and public qualification acquisition subsidies.

Recruitment and Expanding Opportunities for employees
To attract employees who can help expand new business and to foster a corporate
culture that is youthful and highly motivated, we are strengthening our mid-career

Welfare systems
In Japan, we have introduced a variety of employee benefits and welfare systems, which
contribute to a stable and secure working environment for employees.

hiring in addition to hiring new graduates. Mid-career hires accounted for 35%, thepercentage of female workers among hired workers accounted for 45% in FY2022.
As a global company, we are working to utilize global human resources in line with

Wealth Systems

Property accumulation savings, defined benefit corporate pension

Company
Housing System

Rented company housing system for new employees for transferees,
Rent subsidy system

Facilities

Cafeteria, health care center, grounds, tennis courts (depending on the office)

Other employee
benefits andwelfare systems

Corporate pension funds, Retirement plans, Congratulatory or condolence
payments, Group health insurance plan, medical examination subsidy (e.g.,
for comprehensive medical screenings), Refreshment leave

on-site needs, and we are promoting the recruitment of international students andforeigners. We have introduced a 'reemploy' system for employees who havereached the mandatory retirement age, it takes into consideration employees whowish to give back and contribute to society through the skills and knowledge they
have accumulated over many years.
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Social Initiatives : For Local Communities

Clean-up activities
At Shonan Technical Center (Oi-machi, Kanagawa Prefecture), we regularly carry out clean up
campaigns with members of the community, and also pick up litter from around the office
together with students from a nearby high school.
On October 19, 2022, a total of 16 employees participated in a cleanup activity around thebusiness site, collecting approximately 6 kg of litter.
As an Oi-machi SDGs partner company, we will continue to engage in cleanup activities toprotect the nature of the region.

Sales event with Tomoshibi Cafe

In support of the activities of the Kanagawa Prefecture Social Welfare Council, we are holding
a sales event with the Tomoshibi Cafe (Oi-machi, Kanagawa Prefecture) at our office.
Located in the Oi-machi Health and Welfare Center, the Tomoshibi Cafe is a shop where
people with disabilities and local people work together.
Through sales events at the Shonan Technical Center, we create opportunities for interaction

with local communities and contribute to a society where everyone works equally.

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Social Initiatives : For Local Communities

Blood donation activities
At the Shonan Technical Center (Oi-machi, Kanagawa Prefecture), since 1994, we have set
up a blood donation site.
In fiscal 2022, a total of 36 people participated in blood donation activities at the Shonan
Technical Center in June and December.
Blood donation is a volunteer program in which healthy people donate their own blood free ofcharge. We will continue to contribute to society by providing a place for regular blood
donation activities.

Collect PET bottle caps and donate
Since 2017, we have been working on an eco-cap campaign in partnership with Oi-machi
Social Welfare Council.
We collect PET bottle caps and donate a portion of the purchase price. The purchased PET
bottle caps are reused as a recycled plastic resource.
So far, a total of 744,000 caps have been collected and vaccines have been donated toapproximately 860 children.

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Social Initiatives : For Local Communities

Environmental Conservation Initiatives
We have a wetland plant protection area for the purpose of protecting wetland plants “Mizokouju” and “Hosoi” on the grounds of the Shonan Technical Center (Oi-machi, Kanagawa
Prefecture) to protect the nature and ecosystem of the region as an SDGs partner company
at Oi-machi.
“Mizo Kouju” is a valuable species in the region, and “Hosoi” is a plant selected as avaluable species in Kanagawa Prefecture.
The sanctuary is also a feeding and resting place for aquatic birds such as herons.

Activities at each site around the world
Based on its business philosophy of “contributing to the culture, benefits, and welfare ofpeople throughout the world,” Sharp Group is working to address local social issues as amember of the communities where it does business.
At Sharp Nordic, one of our sales bases in Europe, we regularly pick up litter around the officewith the aim of contributing to the local community and raising the environmental awareness of
employees.

Copyright All rights reserved, SHARP NEC DISPLAY SOLUTIONS, LTD.

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Governance

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Corporate GovernanceIn order to continue to be a company that is trusted by all stakeholders, we are committed

Board of Directors

to compliance, to maximize corporate value through timely and appropriate management

Board of Directors meetings are held on a monthly basis in principle to makewhile ensuring transparency, objectivity, and integrity.

decisions on matters stipulated by law and on management-related matters ofimportance, and to supervise the state of business execution.

Corporate Governance System

Extraordinary meetings of the Board of Directors shall be held as necessary.

We have introduced an executive officer system, clearly separating the Board of Directors
supervisory and business execution functions, thereby creating a structure that steadily

Audit and Supervisory Board Members

facilitates agile and efficient business execution. On top of that, we have established a

The Auditors are composed of outside directors with a high level of expertise,system to ensure the legality of business operations by monitoring business execution fromelected by General Meeting of Shareholders.

audit and supervisory board members, corporate auditors, and accounting auditors.

They audit the propriety of business execution and the appropriateness andefficiency of management.

Accounting Auditors
We undergo audits by accounting auditor, Azusa LLC, in order to ensure thereliability of financial documents and other finance-related information.

Executive Committee
The Management Committee is composed of general managers and above, and ischaired by the president.
They discuss and decide on important matters related to management strategy, andalso exercise general control over business execution.

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Internal Control
As a means of facilitating the effective functioning of corporate governance, we have

Annual Schedule and Initiatives for Internal Control

designed and operate an internal control system for ensuring the propriety ofbusiness activities based on the Basic Policy on Internal Control.
We constantly evaluate the operational status of the internal control system based on
this basic policy and take necessary improvement measures.
We will also constantly review this basic policy in response to changes in thebusiness environment.
These efforts helped to ensure the effective functioning of the our internal control
system in each of the control domains in fiscal 2022, as detailed in an Internal
Control Report, which was submitted for Sharp.
Check Sheet
Systems and Rules for Preventing Bribery
In the Prevention of Bribery and other corruption, we have established the Guidelines
based on the Sharp Group Charter of Corporate Behavior and the Sharp Code of
Conduct.
When using third parties such as agents and consultants, providing or exchanging
gifts or entertainment to government employees, and participating in associations, wehave guidelines that clarify the points to be confirmed.
In the case of entertainment or gifts, we are working to prevent bribery by
establishing a system for prior confirmation and approval in accordance with the"Business Approval Guidelines".
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System to Promote Compliance
Sharp NEC Display Solutions defines compliance as “observing laws, regulations,

Various types of training related to complianceand company rules, and acting in line with corporate ethics” and pursuing

In order to promote compliance and raise awareness among officers and employees,

management practices that give priority to compliance.

Sharp has published an in-house guidebook and regularly disseminate informationand provide training such as e-learning to all employees.

Risk Management & Compliance Committee
The Risk Management & Compliance Committee meets monthly, deliberating onimportant policies related to CSR promotion and resolution of specific issues
related to CSR promotion.

Example of education themes conducted in December 2022

If a compliance-related risk occurs, we will respond appropriately in accordance

Sharp Code of Conduct

About Sharp Code of Conduct／
Rectify violations of the Code of Conduct

Human Rights and Labor

Working Hours, Wage, Welfare／
Freedom to improve the organization

Compliance

Competition Law／Bribery Regulations／Premiums andRepresentations Act／Insider Trading Regulations／Related
Party Transactions／Accounting Fraud Prevention／Sharp
Group Compliance Guidebook

Information Security

Information Security／Management of Personal Information／
Confidential Information Management

ESG-Management

ESG-forced management／ESG／SDGs
Relationship between ESG Investment and SDGs

with the Basic Rules for Compliance and the Rules for Business Risk
Management, and take comprehensive corrective measures and prevent

recurrence.

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System to Promote Compliance
Sharp NEC Display Solutions has established the following code of conduct for "Fair Trading and Ethics" in its CSR Management.
Fair Trading and Ethics■Prohibit corruption and bribery
We maintain a sound and normal relationship with politics and government administration without committing bribery and/or making illegal political donations.
■Prohibit abuse of a superior position
We don’t create disadvantage for their suppliers by abuse of a superior position.
■Prohibit the offering and receiving of inappropriate profit and advantage
We don’t offer and/or receive inappropriate benefits to/from stakeholders.
■Prohibit impediment to free competition
We don’t impede fair, transparent, and free competition.
■Provide accurate information on products and services
We provide accurate information on products and services to consumers and customers.
■Respect intellectual property
We don’t infringe upon intellectual property rights.
■Use appropriate export procedures
We streamline the clear-cut control system and execute proper export procedures, regarding exports of technologies and goods defined by laws and regulations.
■Information disclosure
Regardless of whether such disclosure is required by law, we readily supply and disclose information to stakeholders.
■Prevention of wrongdoings and early detection

We make efforts to prevent wrongdoings and develop a system that allows early detection and swift implementation of measures.
■Secure computer networks against threats
We take protection against threats on the computer network, and prevent damages to their company and others.
■Prevent the leakage of personal information
We appropriately control and protect personal information of employees, customers, and third parties.
■Prevent the leakage of customer and third-party confidential information
We control and protect confidential information from customers and third parties.

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Intellectual Property Protection
Intellectual Property Strategy and Management System

Risk management of Intellectual Property

Sharp NEC Display Solutions regards its intellectual property strategy as one of its

We strive to reduce various intellectual property risks that may arise in our businesscritically important management strategies, we are actively working to create andactivities by maintaining a stance of respecting the intellectual property rights of third

protect it.

parties and considering risks from an intellectual property perspective when

While promoting intellectual property activities within the company, we work closely

concluding various contracts.

with SHARP IP Infinity Co., Ltd. (SIPI), which was established as a spin-off from
Sharp’s Intellectual Property Division. By collaborating with SIPI, we are promoting
intellectual property activities that are integrated with Sharp Corporation's intellectual
property strategy.
Building a Patent Portfolio
In order to contribute to strengthening our business competitiveness, we have begun
to actively utilize intellectual property.
We are committed to building a patent portfolio that will stand out against ourcompetitors. When building our patent portfolio, it is important to increase the ratio of
high-quality patents and hold an appropriate amount of patents in the appropriate
country according to our business policy and business environment.
Along with acquiring new patents, we also conduct regular inventories. In this way, we
aim to increase the value of our entire patent portfolio and actively utilize intellectual
property.

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Export Control
Security Export Control

Export Control in-house training

In order to maintain international peace and security, major countries including Japan

Security export control cannot be managed properly without the correct understanding of

are working with the international community to restrict exports of goods andeach employee.

technologies that could be diverted to military use, including weapons, to prevent them

In order to maintain and continue our export control system, we regularly provide export

from falling into the hands of states and terrorists who threaten the security of thecontrol education for each level using e-learning for all employees and practitioners.

international community.

In Japan, with the aim of export control for national security, the Foreign Exchange
and Foreign Trade Act (“FEFTA”) has been enacted and strict procedures have been

［General education for all employees］
・Basics of Export Control / Export Control basic education

established. We have established the “Export Transaction Control Regulations” andare developing an export control system and operating export control.

［Professional education for practitioners］

Our export control system has the representative director as the chief executive officer

・Basic education for export control personnel

for security export control, and we have assigned export control managers to each・Education about whether controls apply to goods and technologies

departments to ensure reliable implementation.

・Practical Education on Export Procedures

When exporting products overseas, we conduct internal inspections to ensure thatcargo and technology are appropriate, confirm destinations, business partners, andend customers, and review the terms of the transaction to ensure that there are no
security concerns, and strictly manage them in accordance with laws and regulations.
We strive to review internal rules in a timely manner whenever export control laws arerevised and we also manage re-export restrictions under the U.S. Export
Administration Regulations (EAR).
We will maintain and further improve these systems to secure comprehensive export
control.
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Information Security
As we strive to provide better products and service, and to contribute to theInitiatives to Strengthen Information Security Measuresdevelopment of society, information assets are entrusted to us by our customers and• We conduct information security education for all employees to ensure that they arebusiness partners. We believe it is our responsibility to protect our company's
information assets and are working to ensure information security by setting forth aaware of internal rules related to information security.
• We regularly conduct "targeted email attack" drills using simulated attack emails todeepen our understanding of attack methods and how to distinguish them, and to

Global Basic Policy on Information Security.

confirm escalation procedures.
• The status of each PC is checked every morning, and the IT department staff will take

Basic Policy on Information Security
We have established a basic information security policy and will put it into practice.
• We will establish an information security management system and strive to

immediate action on problematic PCs.
• We have opened an Information Security Portal to provide information to employees
and raise awareness of information security.

appropriately manage information assets.
• We will develop and implement internal regulations in accordance with this basic

Disclosure of Information Security Portal

policy.
• We will continue to provide education to ensure information security.
• We will take appropriate human, organizational, and technical measures to prevent
unauthorized intrusion into information assets. We will strive to prevent leakage,falsification, loss, theft, destruction, and interference with use.
• We will strive to minimize the damage and prevent recurrence, even if a security
problem occurs with information assets, we can quickly investigate the cause.
• We will comply with laws and regulations related to information security, guidelines
established by the government, and other social norms.
• We will continuously review and improve the above activities.

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Business Continuity Management and Disaster Prevention Measures
Promoting Business Continuity Management

Disaster Prevention Measures

Even in the event of a large-scale disaster, we have formulated a businessWe have established a “Disaster Prevention System in the Workplace” and conduct

continuity plan so that we can quickly restore our business while maintaining a“Disaster Emergency Prevention Drills” every year in preparation for the occurrence of

chain of command. Members of the emergency headquarters conduct training
and make appropriate improvements through verification and evaluation.

disasters. The results of the drills are verified, reflected in the fire plan, and reviewed.
In addition, we store emergency supplies in our workplaces based on the disasterprevention stockpile standards. By posting information on the portal site, we are

Basic Policy

working to raise awareness of disaster prevention among employees on a daily basis.

（１）Ensuring the safety of human life（２）Fulfillment of social responsibilities required of the company（３）Maintenance and early recovery of business（４）Minimization of management damage caused by business interruption（５）Minimization and early recovery from damage caused by network failures

Introduction of Safety System
Considering the safety of our employees as our top priority, the Sharp Group has
introduced safety systems.
Safety confirmation emails are automatically sent to the target person in the eventof an earthquake with seismic intensity of 5 or higher, and employees who receive
the email can report their safety.
In preparation for emergencies, we check the registration information of thesystem and conduct operation training every year.

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Hotline for Compliance Issues
We have established the SNDS Hotline for the purpose of improving thesoundness of organizational management.
The consultation desk clearly states that it will protect the privacy of the consulter

Fiscal 2022
Number of reports to the SNDS hotline

Result0

and respond in accordance with the operational rules so that the consulter and thecollaborator will not be disadvantaged or treated unfairly.
We also use the Crystal Hotline which is Sharp Group’s reporting centre.

Disclosure of Hotline Information

The Crystal Hotline can be used anonymously and serves as a point of contact forreporting violations of laws and regulations, ethical violations, and various issues
related to human relations in the workplace.
The hotlines and consultation service receive reports and conduct fact-finding
investigations in line with strict operating rules. Those who have requested a
consultation are informed of the details of the response. If the investigation
reveals any violation of laws, regulations, or company rules, or any othercompliance issues, we will put into effect measures for remediation andrecurrence prevention.
Six months after any corrective action is taken, we check that the whistleblower
contacting the Crystal Hotline has not been disadvantaged. After a further period,
we also check whether the corrective actions and recurrence prevention
measures are working effectively.

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Sharp NEC Display Solutions, Ltd.