Sumitomo Electric Device
Innovations, Inc. (SEDI)
Summary of BusinessContinuity Plan (BCP)SEDU Confidential

CONTENTS
Ⅰ:BCP Policy
Ⅱ:Overview
１，Fundamental Policyof Risk Management
２，Risk Management
３，Risk Assessment
Ⅲ:Incident Management Plan （IMP) for
Natural Disasters
Ⅳ:Business Recovery PlanSEDU Confidential-2-

Ⅰ:BCP Policy
We have established a Business Continuity Plan to continue
essential operations even in the event of natural disasters suchas earthquakes, infectious diseases such as new strains ofinfluenza, or accidents such as fire, and to ensure promptrecovery from any suspension of our business. We will continue
to promote our business continuity management (BCM) forcontinuous improvement. To improve the effectiveness of BCM,
we will continue to provide practical training and education andstrive to respond to various risks.

SEDU Confidential-3-

Ⅱ:Overview (Risk Management System, Risk
Understanding and Evaluation, etc. )1.

Basic Policy for Risk Management① Ensuring the Safety of Human Life
Our top priority is to ensure the safety of customers, employees, business
partners, etc.
② Stable Supply of Products and ServicesWe will continuously supply the products and services necessary to society
domestically and overseas.
③ Compliance and Respect for Corporate Social Responsibility
In addition to emphasizing compliance with laws and corporate ethics, weadhere to “the Sumitomo Corporate Philosophy,” “the Sumitomo Spirit,” and“the Sumitomo Electric Group Charter of Corporate Behavior.”
We will fulfill our corporate social responsibility by acting under our Charter.

SEDU Confidential-4-

Ⅱ:Overview-2, Risk Management(1) Understand, analyze, and evaluate the risks associated withmanagement, take mitigation measures, and minimize each risk
according to the evaluation results.
(2) The main target is risk management in the following categories.
Category
External Risk

SubcategoryNon-financial risk
Financial risk

Sub-Subcategory●Disaster risk, Social crime risk
●Political and country risk
●Credit risk
●Product quality and safety risk

Applicable◎◎●Occupational accidents, Equipment
accidents, Safety risk
●Environmental risk
●Compliance risk
Internal Risk

Operational risk

●Risk of violation of regulations●Labor/human rights/personalinformation risks●Risk of unreliability of financial
information and asset security risk
●Information/Communication system risk
●Intellectual property risk
●Reputation risk, etc.

SEDU Confidential-5-◎

(3)Risk Management System
In collaboration with the Sumitomo Electric (SEI) Group’s risk
management system,
SEDI has the management organization below.
①Risk Management Office （Risk Management Standard)②Risk Management Group③Natural Disasters (Earthquakes) BCP Committee④Infectious Disease Control Secretariat( Infectious Disease Control Action Plan）

ー SEDI in SEI Risk Management System ー
SEI Board of Directors

SEI Management Meeting

SEI Compliance Committee
CSR Committee
Public Relations Committee
Company-wide Environmental Committee（Risk Management Committee)

Group-wide risk management
activities

SEI Risk Management
Working-level Committee
SEI Compliance / Risk Management Office

SEI Corporate Staff

ＲＭ

Business Division, Sales Division, R&D Division

ＲＭ
Business Unit

SEDI
SEDU Confidential

ＲＭ

Affiliates

RM:Risk Manager

ＲＭ-6-

Ⅱ:Overview ｰ３，Risk Assessment
We are implementing the following actions based oncompany rules. ( Risk Management Guidelines)①We conduct risk analysis and evaluation once a year
based on the company guidelines and identify essentialrisks.
②For significant risks, we set deadlines to consider
countermeasures and take mitigation measures.
③We report significant risks to the SEI business division,
which identifies the most critical risks that the businessdivision should focus on, and counter measures to reducerisks.
The next slide shows the risk analysis method.
SEDU Confidential-7-

Risk Analysis Method
Ａbusiness Unit
Risk details

Supplementary explanation

Suspension of operations
and shipment due tocountry risk

（１）Request for improvements topower companies; installation of inhouse power generation（２）・・・・

設備重大トラブル、自然災
Riskclassification
害（地震）、火災・爆発等の工場停止（１）重要予備品整備、（２）他社による代替出荷、（３）・・・・

Extracting significant risk

Risk Analysis I (Individual)
Impact Freque(D)ncy(F)（１） ①Large scale
Disaster earthquakes
Risks②Storms and floods(Typhoon…
（２）法務 ①ＰＬ
リスク
②リコール
Points
Impact(Ｄ）

５

10~50 Billion
Yen３

1~10 Billion Yen

２

10 Million Yen ~1 Billion Yen

SEDU Confidential

1

3

2

2

4

2

1

2

2
Points12Frequency（Ｆ）

３twice a year ormore

２

１0.8

Once every one
to three years ormore

SenarioImpactXF
requency=Importance

Countermeasures to beimplemented

EffectivenessofCountermeas
uresCountryrisk

Suspensi
on ofInfrastru
cture

10×1=10

Double track
supply line

0.9

Suspension
ofOperations

Bigearthq
uakes

5×1＝5

①Preventive
maintenance.

①～③0.9④0.8△ Effectiveness of
5×0.8＝
新製品
需要予①開発のｽﾋﾟｰﾄﾞ（Guidelines
for significantrisks） PointsCountermeasures）

Once every three
to ten years or
more
Fewer than once
every ten years

測誤り、 4
開発遅 108
れ20451032.4

3621.6246

10.8

1230.8123の売り
10Ｄ 上げ計
画未達（ 5成Impact

50 Billion Yen ormore.

Less than 10
Million Yen

3Risk Analysis II（Common）

１０１

Importance(D×F)

Significant Risk-8-ｱｯﾌﾟ②需要動向の的
30
0.8
確な把握
15
③計画立案とト
0.9
レース

Ｆ（Frequency）

9

Fully effective
Partially effective

1.0

No effect

1.2

Worse(countermeasures are lagging,etc.)Ⅲ:Disaster/Incident Response Plan・ We have established a management system and behavioral guidelines based on
the Disaster/Incident Response Plan (IMP). We conduct regular training to prevent
disasters and prepare for disasters or major disruptions. （ Disaster/IncidentResponse Plan（IMP））

Ⅳ:Business Recovery Plan
1. To prepare for a disaster or significant disruption, we have established abusiness continuity plan (BCP), reviewed yearly, including the recovery plan.
(Business Continuity Plan for a large-scale Earthquake Disaster)
2. Procedures and recovery periods for 100% recovery in a functional outage
have been established and reviewed once a year.
3. To prepare for an infectious disease outbreak (pandemic), we haveestablished a business continuity plan for infectious diseases and reviewed
it once a year.
( Business Continuity Plan for Infectious Disease (Infectious Disease BCP))SEDU Confidential-9-https://www.sedi.co.jp/

SEDU Confidential