The MIKI HOUSE Group Statement on Modern Slavery for FY 2023
1.

Introduction
This Statement on Modern Slavery (hereinafter referred to as this “Statement”) is a statement issued by the MIKI

HOUSE Group based on the UK’s Modern Slavery Act 2015 and Australia’s Modern Slavery Act (with both acts onslavery hereinafter collectively referred to as “Modern Slavery Acts”). The MIKI HOUSE Group respects the content
outlined in documents such as the Bill of Human Rights, the ILO Declaration on Fundamental Principles and Rights
at Work, the UN Guiding Principles on Business and Human Rights, and the OECD Guidelines for Multinational
Enterprises. This Statement provides an outline of the efforts and activities undertaken by the MIKI HOUSE Groupduring FY 2023 (March 2023 - February 2024) to prevent human rights violations, such as modern slavery, forcedlabor, and human trafficking, from occurring within the Group’s corporate activities, businesses, and value chain.
2.

Overview of the Businesses of the MIKI HOUSE Group
The MIKI HOUSE Group consists of 12 companies, with MIKI SHOKO CO., LTD. at its core. Established in1971, MIKI SHOKO CO., LTD. has a workforce of 431 employees and annual sales of 17,681,000,000 yen. Together
with the 11 other Group companies located in Japan and overseas, MIKI SHOKO CO., LTD. undertakes the planning,manufacture, and sale of children’s clothing and family-related goods, as well as cultural activities that include
publishing , education, and support for child-rearing.
The MIKI HOUSE Group is also engaged in business activities through its UK subsidiary MIKI HOUSE U.K.
LTD. This Statement is also published in Australia, as the MIKI HOUSE Group sells products via local partners basedin the country although the Group has no group companies there.
* All information and data used in this Statement have been prepared based on those obtained by the end of February 2024.
3.

Value Chain
The suppliers involved in manufacturing in the MIKI HOUSE Group’s value chain consist mainly of garment

factories. Our products are manufactured both in Japan and overseas, namely, China, Korea, Taiwan, Vietnam, andThailand. As of the end of February 2024, the MIKI HOUSE Group was conducting transactions with 299 factories
in these countries and regions.
We recognize that the textile industry, which is centered around garment factories, is labor-intensive and entails ahigh risk of human rights violations such as forced labor. It has been pointed out that migrant workers in particularfind themselves in a relatively vulnerable position. Accordingly, we have started with regular surveys of employment
and working conditions of foreign technical intern trainees at our business partners in Japan. We found that in FY
2023, technical intern trainees from China, Vietnam, Thailand, Myanmar, Cambodia, Sri Lanka, Indonesia, and thePhilippines worked at factories in Japan that conduct transactions with the MIKI HOUSE Group.
4.

Policies Related to Modern Slavery and Human Trafficking
The MIKI HOUSE Group prepared a human rights policy, environmental policy, CSR procurement policy, codeof conduct, and policy on migrant worker in 2018 and has been updating them from time to time based on input fromexternal stakeholders. In May 2023, the human rights policy was revised to further promote our efforts to respecthuman rights. In August 2023, the environmental policy was also revised to require that consideration be given to
the impact of environmental issues on human rights. These policies were approved by the Board of Directors aspolicies related to modern slavery that are applicable to the entire MIKI HOUSE Group. In addition, not only thesepolicies but also the CSR procurement policy, the code of conduct, and the policy on migrant worker encourage theMIKI HOUSE Group’s business partners to promote efforts relating to sustainability activities.

5.

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mikihouse_group_human_rights_policy.pdf-

mikihouse_group_environmental_policy.pdf-

miki_shoko_csr_procurement_policy.pdf (mikihouse.com)-

miki_shoko_code_of_conduct_for_suppliers.pdf (mikihouse.com)-

miki_shoko_policy_on_migrant_worker_for_suppliers.pdf (mikihouse.com)
Efforts to Prevent Modern Slavery and Human Trafficking Within the MIKI HOUSE Group and Within
Our Value Chain

The MIKI HOUSE Group intends to identify and assess, and take measures against, human rights risks within theGroup and its entire value chain, by conducting human rights due diligence investigations based on the MIKI HOUSEGroup Human Rights Policy to respect human rights. The MIKI HOUSE Group intends to regularly disclose thedetails of these efforts and make improvements on an ongoing basis. We also intend to work to prevent direct andindirect human rights violations and human trafficking from taking place in relation to the manufacture or sale of ourproducts or the provision of our services. In the process leading up to the issuance of this Statement, the MIKI HOUSEGroup engaged in discussion and cooperation with its 12 Group companies and their management teams andsubsequently decided to pursue the following initiatives on an ongoing basis.
The ESG Promotion Department was newly established in FY 2023 to promote these efforts.
• Human Rights Due Diligence
If negative impacts on human rights, or factors contributing to these negative impacts, are identified as being
directly or indirectly caused by the corporate or business activities of any of the MIKI HOUSE Group
companies, the relevant company will hold consultations with relevant stakeholders and will correct orremedy the situation through appropriate procedures.
• Human Rights Risk Assessments and Monitoring
The MIKI HOUSE Group conducts self-assessment questionnaire (SAQ) surveys of its contract
manufacturers. We also conduct on-site inspections based on those surveys to share information on issues
and promote improvements. Migrant workers in particular are generally considered to be in vulnerable
positions. Accordingly, the MIKI HOUSE Group focuses on these workers in human rights risk assessments
and monitoring. To ensure that these efforts are effective, it is important to build trusting relationships withour contract manufacturers, and we intend to do so with transparency. The spread of COVID-19 forced us tosuspend on-site inspections. In the second half of FY 2023, we resumed on-site inspections, aiming forsustainable manufacturing.

• Complaint Handling Mechanisms
Since 2020, the MIKI HOUSE Group has introduced complaint handling mechanisms at its business partners
in Japan and overseas for the purpose of accepting consultation requests and reports from workers andhelping them. These mechanisms provide consultation services in Japanese, English, Chinese (traditionaland simplified), Vietnamese, Burmese, and Cambodian (Khmer). These mechanisms will cover 299 factories
in FY 2024. If a consultation request or a report is received from a worker in relation to human rights
violations or the like, the Group will help the worker in cooperation with relevant stakeholders, including
NGOs, with utmost priority given to the protection of the worker who made the report or request.
In FY 2023, as in FY 2022, no consultation requests or reports were received. In FY 2024, we plan to verify,
among others, whether all workers have been informed of the contact points and whether the mechanisms
are easy to use for workers, and to improve the effectiveness of the mechanisms by transitioning to aconsultation form and by distributing access cards to consultation contact points.
In FY 2023, we conducted on-site inspections of four factories in Japan and three factories overseas throughspecialized agencies, during which interviews were conducted with management team members and workers toidentify issues related to occupational safety and health. These inspections revealed no serious human rights
violations, such as forced labor, child labor, or human trafficking. We will continue to aim to create better workplaces
through the early detection and remedy of issues by conducting on-site inspections, engagement, and interviews, eachwith transparency. We believe that when this leads to an increase in the retention rate of workers and in theirmotivation, the workplace will become fulfilling, leading to increased productivity and reduced defect rates, which
will increase profitability and, in turn, improve worker treatment. We intend to make further efforts to respect humanrights, which is fundamental to these processes. We will also promote efforts to respect human rights by regularly
sharing and utilizing investigation results across the MIKI HOUSE Group in order to develop a common
understanding within the Group.
6. Training and Education
The MIKI HOUSE Group strives to increase ethical awareness among Group employees by continually providing
training on areas such as the SDGs (UN Sustainable Development Goals), respect for human rights, discriminationand harassment, and corruption. In 2023, we conducted an employee survey. We aim to increase employee awarenessof respect for human rights by reviewing, and providing feedback on, the results of the survey. We believe that these
efforts in relation to training and education of the MIKI HOUSE Group’s employees will help promote awareness ofhuman rights among our business partners and other stakeholders.
7.

Future Initiatives of the MIKI HOUSE Group
Towards achieving our corporate mission of “bringing smiles to the futures of children and their families” throughhigh-quality manufacturing which supports the healthy and prosperous growth of children and puts children first,
which we have consistently pursued since our founding, the MIKI HOUSE Group intends to pursue various activities
and initiatives in order to remain a corporate group that is indispensable to society in the future.

In particular, we intend to continually work on cooperation with business partners by implementing procurement
activities based on our CSR procurement policy, promoting human rights due diligence, and promoting responsible
employment of foreign workers, while focusing on (a) continuous information collection from and follow-up with
supplier factories that utilize the Technical Intern Training Program, (b) promotion of outreach efforts in respect ofoverseas business partners and secondary business partners, and (c) promotion of the highly effective operation ofcomplaint handling mechanisms.
In terms of our value chain as a whole, we intend to work on the prevention of forced labor and other human rights
violations in our sales process leading up to the delivery of goods to consumers.
This Statement was prepared in consultation with a third-party non-governmental organization (NGO), The Global
Alliance for Sustainable Supply Chain. The NGO periodically performs an evaluation of the MIKI HOUSE Group’sefforts. We will take their evaluations into consideration in promoting and expanding our efforts to respect humanrights.
This Statement was approved by the Board of Directors of MIKI SHOKO CO., LTD. on August 26, 2024.
Executive Director/General Manager of President’s Office
Akio Mitsukawa