January 19, 2021

Mikuni Corporation

News Release
Notice Regarding "Supplier CSR Guidelines”
Mikuni Corporation (hereinafter referred to as "the Company") believes that it isimportant to report on its social responsibilities to its shareholders and otherstakeholders, and in 2020, the Company compiled a CSR Report. The CSR Report is areport that organizes qualitative information on our relationship with society, which wehave had few opportunities to report.
We believe that social responsibility is fulfilled throughout the entire supply
chain, and we conduct our activities with a strong awareness that we are a member of a
global industry. In order to share these ideas and awareness with our suppliers, we havedisclosed the "Mikuni Supplier CSR Guidelines" to our suppliers.
We are pleased to announce that we have decided to make the "Mikuni Supplier
CSR Guidelines" available again on our website. We will continue to work together with
our suppliers to become a sustainable company that is needed by society.

Mikuni
Supplier CSR Guidelines

July - 2020
Mikuni Corporation

Contents
I. Foreword

1

II. Mikuni's CSR

2III. Mikuni's Procurement Policy

3

IV. Supplier CSR Guidelines

4

1. Product Safety and Quality

4

2. Human Rights and Working Conditions

5

3. Environment

6

4. Compliance (Business Ethics)

7

5. Responsible Raw Material Procurement

8

6. Risk Management (Business Continuity)

9

V. Requests to Suppliers

10I. Foreword
Dear Suppliers,
Thanks to your continuous support, Mikuni will celebrate its 100th anniversary in 2023.
Under our medium-term management plan, "Vision 2023," which will conclude in the fiscal year 2023.
Mikuni is working on a group-wide theme of "Breakthrough and Pride," which consists of"Breakthrough" to open up the future and surpass the past, and "Pride" to express our confidence,
resolve, and spirit. Today, there are concerns about the impact of the global spread of a novel
coronavirus, but we continue to base all of our activities on "safety and quality," "compliance,""education and health," and our corporate philosophy of "With a global perspective, Mikuni willcontribute to the realization of an affluent society by making full use of our human resources andtechnology."
In recent years, as the impact of corporate activities on society has increased, corporate social
responsibility (CSR) has been in the spotlight as the impact of corporate activities on society has
increased. In the automotive parts industry, the Japan Auto Parts Industries Association (JAPIA)
published the CSR Guidebook in 2008, which has deepened its understanding of CSR and expanded
CSR awareness throughout the industry.
Internationally, the Sustainable Development Goals (SDGs) were unanimously adopted by all UN
member states in 2015 with the aim of achieving a sustainable, diverse and inclusive society where
no one is left behind. In the same year, countries agreed to the Paris Agreement, which stipulates
that they must limit the pre-industrial temperature increase to less than 2 degrees Celsius and makecontinuous efforts to limit it to 1.5 degrees Celsius, and society's expectations of companies havebecome even clearer.
Society's expectations are not limited to one company but the entire supply chain. We have reacheda point where a company's scandals - with which we have no direct capital relationship and withwhich we have no direct business relationship - could affect our global customers' business becausesuch a company was part of our supply chain.
Recognizing that Mikuni is a member of the global corporate supply chain, we have promoted our
CSR philosophy. We have recently compiled the Mikuni Supplier CSR Guidelines, which outline the
CSR philosophy and practices shared with our suppliers.
We would like to ask our suppliers to understand the purpose of this initiative and to work together
with us to meet the expectations of society, based on the concept of CSR.
Let's work together to become a "sustainable company needed by society."

July, 2020
Koji NAKAMURA
Executive Officer
In charge of Purchasing
Supply Chain Division
Mikuni Corporation

Mikuni Supplier CSR Guidelines｜1II. Mikuni's CSR
Based on our corporate philosophy, "Safety and Quality," "Compliance," "Health and Education," arethe foundation of all our activities, and Mikuni is promoting our business activities intending tobecome a sustainable, highly profitable company needed by society.
Mikuni recognizes its responsibility as a global company to its present and future stakeholders, and inorder to fulfill this responsibility, Mikuni has established various policies, such as the Compliance Codeof Conduct and Action Guidelines, Basic Quality Policy, Basic Environmental Philosophy andEnvironmental Policy, Basic Safety Philosophy and Health and Safety Policy, and Basic Information
Security Policy and Guidelines for Action , etc., and each and every employee of the Mikuni Group
works "diligently" to fulfill this responsibility.

[ Corporate Philosophy ]With a global perspective,
Mikuni will contribute to the realization of an affluent society
by making full use of our human resources and technology.

[ Management Policies ] Management that learns from the market, whether internal or external, with "our customers first"
in mind.
 Management for manufacturing and service with the highest priority to Quality, with due
consideration to both safety and protecting and improving the environment.
 Management that aims at "providing a company that adds value to the lives of our employees." Management that abides by the laws, values individual initiative and mutual trust, and treatsother parties with dignity and respect.
 Management that pursues dreams, promotes increased effort for self-improvement and meetschallenge of ambitious goals.

[ Guidelines for Action ] Always keep in mind our commitment to our customer satisfaction.
 Always strive to improve, set challenges, and be creative.
 Always think in a positive manner.
 Always maintain high ethical standards and put oneself in another's place.
 Always set specific and lofty goals.

2｜Mikuni Supplier CSR Guidelines

III. Mikuni's Procurement Policy
Mikuni is working on "Sustainable Procurement" activities based on the following policies andguidelines based on our corporate philosophy: "With a global perspective, Mikuni will contribute to
the realization of an affluent society by making full use of our human resources and technology. "1. Open procurement
We will select excellent suppliers based on our own indicators to assess such areas as technologicaldevelopment capabilities, overseas expansion, and business management capabilities, in addition to
Q, C, and D (Quality, Cost and Delivery).

2. Promotion of cost reduction through mutual efforts
To improve quality and reduce costs, we will adopt positive improvement proposals offered bysuppliers from the product development stage.

3. Promotion of optimal global procurement
We are expanding our local production in response to customer requirements.
We are promoting optimal global procurement activities with the prospect of procurement fromsuppliers' overseas bases and direct supply to our overseas production bases.

4. Compliance- We will comply with international laws, regulations, and social codes, and conduct fairprocurement operations.
- To prevent the violation of laws and regulations and similar acts as well as strive for early
detection and rectification, we are operating an internal reporting system (Mikuni Helpline) by
designating an outside law firm and our in-house Compliance Committee Office as points ofcontact. This system is also available to Mikuni's suppliers.
( https://www.mikuni.co.jp/esg/purchase/ )5. Green procurement- We will promote green procurement activities in accordance with our environmental policy.

6. Initiatives to comply with the conflict minerals regulations- We are conducting supply chain surveys required by the conflict minerals provision of the U.S.
Dodd-Frank Wall Street Reform and Consumer Protection Act.
( http://www.jama.or.jp/c_minerals/index_e.html )Mikuni Supplier CSR Guidelines｜3IV. Supplier CSR Guidelines
We expect each of our suppliers to act in accordance with the following Supplier CSR Guidelines.

1. Product Safety and Quality
1) Provide products and services that respond to the needs of consumers andcustomers- Develop and provide "socially-beneficial products and services" based on consumers' andcustomers' needs.
* "Socially-beneficial products and services" include products and services which are easily used byeveryone regardless of age, gender, or disability or which are eco-friendly such as energy-saving,
resource-saving, and environmental protection.

2) Provide pertinent information on products and services- Provide customers with pertinent information* on your products and services.
* "Pertinent information" includes information on products and services, how to handle them, andinformation on accidents and malfunctions.

3) Ensure the quality of products and services- Establish and operate the company-wide quality management system.

4) Ensure the safety of products and services- Produce and provide products and services that comply with the safety laws and regulations ineach country and region.

4｜Mikuni Supplier CSR Guidelines2. Human Rights and Working Conditions
1) Elimination of discrimination- Do not discriminate based on race, ethnicity, nationality, religion, gender, and others in all
employment situations (*).
* "In all employment situations" is applications, hiring, promotions, wages, terminations, retirements, work
assignments, discipline, and others.

2) Respect for human rights- Do not allow any form of harassment in the workplace based upon personal characteristics, asprotected by local applicable laws and regulations, such as race, ethnic and national origin,religion, gender, etc.

3) Elimination of child labor- Do not allow to work children who have not reached the legal working age (*) according to thelaws and regulations of their country or region.
* "Working-age" is generally defined as the age specified in the International Labor Organization (ILO)
Conventions and Recommendations (ILO Convention No. 138: In principle, 15 years old).

4) Elimination of forced labor- Ensure that all labor is voluntary and that employees are free to leave their jobs and will not
engage in forced labor, slave labor, or human trafficking.

5) Wages- Pay wages in compliance with local applicable laws and regulations, including those relating tominimum wages, overtime hours, deductions, piece work rates, and other compensation
elements.

6) Working hours- Comply with applicable local laws and regulations governing employees' working hours,
including overtime work, holidays, annual paid days off, and others.

7) Dialogue and consultation with employees- Sincerely communicate and consult with employees or their representatives.
- Recognize employees' right to freely associate or not to associate by the laws and regulationsof their country or region.

8) Safe and healthy working environment- Place the highest priority on safety/health programs and policies at the workplace so that each
employee can work without undue concerns and strive to prevent accidents and injuries fromoccurring at the workplace.

Mikuni Supplier CSR Guidelines｜53. Environment1) Environmental management- To promote a wide range of environmental activities, comply with the laws and regulations ofeach country and region and establish a company-wide management system to operate andimprove it continuously.

2) Reduce greenhouse gas emissions- To contribute to global warming prevention, manage greenhouse gas emissions from ourbusiness activities and promote activities to reduce them. At the same time, we will makeeffective use of energy.

3) Prevention of environmental pollution of air, water, soil, and others- Comply with the laws and regulations of each country and region relating to the prevention of
air, water, soil, and other forms of pollution, and shall prevent environmental pollution throughcontinuous monitoring and reduction of pollutants.

4) Save resources and reduce waste- Comply with national and regional laws and regulations on proper waste disposal and recycling,and strive to reduce final waste disposal and water consumption through effective use ofresources.

5) Chemical substance management- Identify and safely control chemical substances that may cause environmental pollution or
severely impact human health.
- Do not contain chemical substances banned by the laws and regulations of each country or
region in your products.
- Do not use banned chemical substances in the manufacturing process. Concerning the chemical
substances designated by the laws and regulations of each country or region, monitor thenumber of emissions and report to the government by the laws and regulations.
- Manage chemical substances specified in "Mikuni's Green Procurement Guidelines."

6｜Mikuni Supplier CSR Guidelines

4. Compliance (Business Ethics)
1) Compliance with laws and regulations- Comply with the laws and regulations of each country and region.
- Establish and implement company-wide policies and systems, action guidelines, whistleblower

systems, education, and other mechanisms to ensure compliance.

2) Compliance with competition laws
- Comply with the competition laws of each country and region. And not engage in practices suchas private monopolies, unfair trade restrictions (cartels, collusive bidding, and others), unfair
trade practices, or abuse of our dominant position.

3) Anti-Corruption- Make political contributions and donations by the laws and regulations of each country andregion, and strive to create transparent and fair relationships with politics and government.
- Do not provide entertainment, gifts, or money to or from business partners to obtain or

maintain unfair benefits or preferential treatment.

4) Export controls- Perform proper export procedures and controls for exports of technology, goods, etc. that are
regulated by national or regional laws and regulations.

5) Eliminate anti-social forces- Eliminate anti-social forces and resolutely cut off relations with them.

6) Management of confidential information- Obtain personal information of our customers, third parties and employees, and confidential
information of customers and third parties in a legitimate manner, and strictly control, use andprotect such information to an appropriate extent.

7) Management of Intellectual Property- Protect your intellectual property rights that are owned by or belong to you and do not illegallyobtain or use third parties' intellectual property or infringe upon their rights.

Mikuni Supplier CSR Guidelines｜75. Responsible Raw Material Procurement
1) Avoid using raw materials that may cause social problems- Strive to avoid the use of raw materials (e.g., conflict minerals from the Congo*) that could
cause social problems in the procurement of mineral resources contained in products.
* Conflict minerals from the Democratic Republic of the Congo and surrounding countries that financearmed groups' activities in the region (gold, tantalum, tungsten, tin, and others.)

8｜Mikuni Supplier CSR Guidelines

6. Risk Management (Business Continuity)
1) Risk management system- Analyze the risks associated with business activities and establish and operate a company-wide
management system.

2) Development of BCP- Develop a Business Continuity Plan (BCP) for early recovery in response to a disaster, accident,
or other emergencies.

Mikuni Supplier CSR Guidelines｜9V. Requests to Suppliers
Mikuni is committed to CSR activities in order to meet the expectations of our customers and theinternational community. We ask all of our suppliers to understand this Supplier CSR Guideline andto make it well informed, not only within their own companies, but also to their suppliers.

1) Raise CSR awareness in your company- To promote CSR activities based on these guidelines, we ask you to raise CSR awareness withinyour company.
- In particular, we ask that you promote the creation of a corporate culture in which violations
do not occur, especially concerning compliance.

2) Spread CSR awareness to your suppliers- We ask that you also work to understand your suppliers' CSR activities' actual status and,if necessary, raise awareness of and provide support to them to spread and permeate
the CSR initiatives of your suppliers.

3) Measures to be taken in the event of non-compliance with laws and regulations- In the unlikely event that you or your suppliers should experience a breach of compliance that
may impact Mikuni or customers or have the potential to have a social impact, we request thatyou immediately report to Mikuni the cause of the breach and the results of the investigation.
At the same time, we also ask that you submit measures to prevent a recurrence.
- Mikuni will report the report's details to the relevant customer, and, depending on thecircumstances, may stop requesting you for new quotations or claim for financial damages.

10｜Mikuni Supplier CSR Guidelines

Mikuni Supplier CSR Guidelines｜11

Mikuni Supplier CSR Guidelines©2020 Mikuni Corporation
Contact : koubaibu@mikuni.co.jp
20201001en