ENVIRONMENTAL
SOCIAL
GOVERNANCEREPORT
2021

INTRODUCING ESG REPORT AND METHODOLIGCAL NOTE

NOTEĞƐƉŝƚĞ ƚŚĞ ĐŽŶƟŶƵŝŶŐ ƵŶĐĞƌƚĂŝŶ ĐŽŶĚŝƟŽŶƐ
ĚƵĞ ƚŽ ƚŚĞ ƉĂŶĚĞŵŝĐ͕ ǁŚŝĐŚ ƐƟůů ĂīĞĐƚĞĚ
ŽƵƌ ƉůĂŶƚƐ ĂŶĚ ƉĞŽƉůĞ͕ ϮϬϮϭ ƐĂǁ Ă ŐŽŽĚƌĞĐŽǀĞƌǇ ŝŶ ƚŚĞ ŵĂƌŬĞƚƐ ĂŶĚ ŝŵƉŽƌƚĂŶƚ
ĐŚĂŶŐĞƐ ĞƐƉĞĐŝĂůůǇ ĨƌŽŵ Ă ^ƵƐƚĂŝŶĂďŝůŝƚǇ
ƉĞƌƐƉĞĐƟǀĞ͘ tŝƚŚ ƚŚŝƐ ESG ReportĂůďĞŝƚďĂƐĞĚŽŶƚŚĞGRI international
standard͕dƐƵďĂŬŝEĂŬĂƐŚŝŵĂǁĂŶƚƐƚŽďŽƚŚŝůůƵƐƚƌĂƚĞƚŚĞĚĞĐŝƐŝŽŶƐƚĂŬĞŶŝŶϮϬϮϭƚŚĂƚǁŝůůŚĂǀĞĂĨƵŶĚĂŵĞŶƚĂůĂŶĚĚĞĐŝƐŝǀĞ
ŝŵƉĂĐƚ ŽŶ ƚŚĞ ĐŽŵƉĂŶǇ ŝŶ ƚŚĞ ǇĞĂƌƐ ƚŽĐŽŵĞ͕ ƚŚĞ ŽƌŐĂŶŝǌĂƟŽŶĂů ƐƚƌƵĐƚƵƌĞƐ ĂŶĚƌĞƐŽƵƌĐĞƐ ĚĞƉůŽǇĞĚ͕ ƚŚĞ ŵĂŝŶ ƌĞƐƵůƚƐ
ĂĐŚŝĞǀĞĚ ŝŶ ƚŚĞ ǇĞĂƌ 2021 ĂŶĚ ƚŚĞƚĂƌŐĞƚƐďŽƚŚŝŶƚŚĞůŽŶŐƚĞƌŵ; Medium
Term Plan 2021-2023 ĂŶĚƌĞĨĞƌƌŝŶŐ
ƚŽƚŚĞǇĞĂƌ2022Ϳ͘dŚŝƐZĞƉŽƌƚĞŵďŽĚŝĞƐ
ŽƵƌ Ăŝŵ ƚŽ ĐŽŶƟŶƵĞ ŐƌŽǁŝŶŐ ĂƐ ĂŶĞŶǀŝƌŽŶŵĞŶƚĂůůǇƌĞƐƉŽŶƐŝďůĞĂŶĚĞƚŚŝĐĂůůǇ
ƐŽƵƌĐĞĚ ďƵƐŝŶĞƐƐ͕ ƚŚĞƌĞĨŽƌĞ ƌĞĂĸƌŵŝŶŐ
ŽƵƌ ĐŽŵŵŝƚŵĞŶƚ ƚŽ ƚƌĂŶƐƉĂƌĞŶĐǇ͕ƐƵƐƚĂŝŶĂďŝůŝƚǇ ĂŶĚ ŐŽŽĚ ŐŽǀĞƌŶĂŶĐĞ͕ƉĂƌƟĐƵůĂƌůǇ ŝŶ ŵĂƩĞƌƐ ŽĨ ƐƵƐƚĂŝŶĂďůĞĂŶĚ ƉƌŽĮƚĂďůĞ ŐƌŽǁƚŚ͕ ĂƩĞŶƟŽŶ ƚŽ ŽƵƌ^ƚĂŬĞŚŽůĚĞƌƐ͕ ĂŶĚ ƚŚĞ Vision Zero’s
Approach ;ĞƌŽ ĂĐĐŝĚĞŶƚƐ͕ ĞƌŽŽĐĐƵƉĂƟŽŶĂů ŝůůŶĞƐƐĞƐ͕ ĞƌŽ ǁĂƐƚĞƐ͕ ĞƌŽŝŶĞƋƵĂůŝƟĞƐ͕ ĞƌŽ ůĂĐŬ ŽĨ ŬŶŽǁůĞĚŐĞͿ͘METHODOLOGICALESG

INTRODUCING

 ΀'Z/ϭϬϮͲϰϱ΁dŚĞ ŽŶƐŽůŝĚĂƚĞĚ ŝƐĐůŽƐƵƌĞ ŽĨ EŽŶͲ&ŝŶĂŶĐŝĂů ^ƚĂƚĞŵĞŶƚ ;ŚĞƌĞŝŶĂŌĞƌ Statement
or ESG ReportͿ ĐŽŵƉůŝĞƐ ǁŝƚŚ 'Z/ ^ƚĂŶĚĂƌĚ ĂŶĚ ǁŝƚŚ ƚŚĞ ůŽĐĂů ůĂǁƐ ĂŶĚ ƌĞŐƵůĂƟŽŶƐ ƚŚĞĚŝƐĐůŽƐƵƌĞ ŽĨ ŶŽŶͲĮŶĂŶĐŝĂů ŝŶĨŽƌŵĂƟŽŶ͘ &Žƌ dƐƵďĂŬŝ EĂŬĂƐŚŝŵĂ͕ ƚŚĂƚ ^ƚĂƚĞŵĞŶƚ͕ ǁŚŝĐŚ
ĐŽŝŶĐŝĚĞƐ ǁŝƚŚ ƚŚĞ ^' ZĞƉŽƌƚ ĂŶĚ ŝƐ Ă ƐĞƉĂƌĂƚĞ ƌĞƉŽƌƚ ĨƌŽŵ ƚŚĞ &ŝŶĂŶĐŝĂů ZĞƉŽƌƚ͕ ƌĞƉƌĞƐĞŶƚƐ
ƚŚĞ ƌĞƐƵůƚ ŽĨ ƚŚĞ ĐŽŵŵŝƚŵĞŶƚ ƚŽ ŶŽƟĨǇ ŝƚƐ ƐƚĂŬĞŚŽůĚĞƌƐ ŽĨ ƚŚĞ ƉĞƌĨŽƌŵĂŶĐĞƐ ĂŶĚ ƌĞƐƵůƚƐ
ĂĐŚŝĞǀĞĚŝŶƚŚĞƐƵƐƚĂŝŶĂďŝůŝƚǇĂƌĞĂ͕ĂůƌĞĂĚǇƵŶĚĞƌƚĂŬĞŶŝŶƉƌĞǀŝŽƵƐǇĞĂƌƐ͘
΀'Z/ϭϬϮͲϰϲ΁dŚĞ^ƚĂƚĞŵĞŶƚĐŽŶƚĂŝŶƐĚĂƚĂĂŶĚŝŶĨŽƌŵĂƟŽŶƌĞĨĞƌƌŝŶŐƚŽdƐƵďĂŬŝEĂŬĂƐŚŝŵĂŽ͘
΀'Z/ϭϬϮͲϰϲ΁>ƚĚ͘ĂŶĚŝƚƐƐƵďƐŝĚŝĂƌŝĞƐĂƐŽĨĞĐĞŵďĞƌϯϭ͕ϮϬϮϭ;ŚĞƌĞŝŶĂŌĞƌTsubaki Nakashima or TNͿ͕ĂƐƉƌĞƐĞŶƚĞĚŝŶƚŚĞŶŶƵĂů&ŝŶĂŶĐŝĂůZĞƉŽƌƚ͘[GRI
102-47] The Report is ďĂƐĞĚŽŶĂŵƵůƟͲƐƚĂŬĞŚŽůĚĞƌĂƉƉƌŽĂĐŚŝŶǀŽůǀŝŶŐƚŚĞũŽŝŶƚĂŶĂůǇƐŝƐ
΀'Z/ϭϬϮͲϰϳ΁ŽĨĂĐƟŽŶƐƚĂŬĞŶŝŶƌĞƐƉĞĐƚŽĨƚŚĞŵĂŝŶƐƚĂŬĞŚŽůĚĞƌƐǁŝƚŚǁŚŽŵƚŚĞŽŵƉĂŶǇŝŶƚĞƌĂĐƚƐ͘&ŽƌƚŚĞĚĞƚĂŝůƐŽŶƚŚĞŵĂƚĞƌŝĂůƚŽƉŝĐƐ͕ƐĞĞƚŚĞƐƉĞĐŝĮĐƉĂƌĂŐƌĂƉŚƐ͘ ΀'Z/ϭϬϮͲϱϬ΁ ΀'Z/ϭϬϮͲϱϭ΁ ΀'Z/ϭϬϮͲϱϮ΁ dŚĞ ϮϬϮϭ ^' ZĞƉŽƌƚ͕ ƉƌĞƉĂƌĞĚ ĂŶŶƵĂůůǇ ŽǀĞƌ ƚŚĞĐĂůĞŶĚĂƌǇĞĂƌ͕ƌĞƐƉĞĐƚƐƚŚĞƐĂŵĞĚĞĂĚůŝŶĞƐĂƐƚŚĞŶŶƵĂů&ŝŶĂŶĐŝĂůZĞƉŽƌƚ͘
΀'Z/ϭϬϮͲϱϰ΁dŚĞ^ƵƐƚĂŝŶĂďŝůŝƚǇZĞƉŽƌƚŚĂƐďĞĞŶƉƌĞƉĂƌĞĚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞ^ƵƐƚĂŝŶĂďŝůŝƚǇ
΀'Z/ϭϬϮͲϱϰ΁ZĞƉŽƌƟŶŐ ^ƚĂŶĚĂƌĚƐ ŽĨ ƚŚĞ 'ůŽďĂů ZĞƉŽƌƟŶŐ /ŶŝƟĂƟǀĞ ;'Z/Ϳ ;ŝŶ ĂĐĐŽƌĚĂŶĐĞͲĐŽŵƉƌĞŚĞŶƐŝǀĞŽƉƟŽŶͿ͘ dŚĞ ƉƌŽĐĞƐƐ ƐƵŐŐĞƐƚĞĚ ďǇ ƚŚĞ ϭϬϬϬW^ ƉƌŝŶĐŝƉůĞƐ ;ŝŶĐůƵƐŝǀŝƚǇ͕ ŵĂƚĞƌŝĂůŝƚǇ͕ ĂŶĚƌĞƐƉŽŶƐŝǀĞŶĞƐƐͿǁĞƌĞĂůƐŽĐŽŶƐŝĚĞƌĞĚŝŶƚŚĞĚŽĐƵŵĞŶƚ͘dŚĞ^ƵƐƚĂŝŶĂďŝůŝƚǇZĞƉŽƌƚŝƐĚƌĂǁŶƵƉĂĐĐŽƌĚŝŶŐƚŽĂƐǇƐƚĞŵŽĨŝŶĚŝĐĂƚŽƌƐ;<W/Ͳ<ĞǇWĞƌĨŽƌŵĂŶĐĞ/ŶĚŝĐĂƚŽƌƐͿ ǁŚŝĐŚ ŵĞĂƐƵƌĞ ƚŚĞ ĐŽŵƉĂŶǇ͛Ɛ ƉĞƌĨŽƌŵĂŶĐĞ ĂŶĚ ƚŚĞ ĚĞŐƌĞĞ ŽĨ ĂĐŚŝĞǀĞŵĞŶƚ ŽĨŽďũĞĐƟǀĞƐƉƌĞǀŝŽƵƐůǇĞƐƚĂďůŝƐŚĞĚĨŽƌĂƌĞĂƐŝŶǁŚŝĐŚƚŚĞŽŵƉĂŶǇŚĂƐŵĂũŽƌŝŵƉĂĐƚ͘dŚĞ<W/ƐĂƌĞĚĞĮŶĞĚŽŶƚŚĞďĂƐŝƐŽĨ͗ƚŚĞ ĂŶĂůǇƐŝƐ ŽĨ ƚŚĞ 'Z/͕ ĂŶ ŝŶƚĞƌŶĂƟŽŶĂů ŽƌŐĂŶŝǌĂƟŽŶ ǁŚŝĐŚ ĚĞǀĞůŽƉƐ ƵŶŝǀĞƌƐĂůůǇĂƉƉůŝĐĂďůĞŐƵŝĚĞůŝŶĞƐĨŽƌĚƌĂǁŝŶŐƵƉƐƵƐƚĂŝŶĂďŝůŝƚǇƌĞƉŽƌƚƐ
ƚŚĞĚĞŵĂŶĚƐƌĞĐĞŝǀĞĚĨƌŽŵƐƚĂŬĞŚŽůĚĞƌƐ
ƚŚĞĞǆƉĞƌŝĞŶĐĞƚŚĞŽŵƉĂŶǇŚĂƐŐĂŝŶĞĚŝŶƚŚĞĮĞůĚŽĨƐƵƐƚĂŝŶĂďŝůŝƚǇĂŌĞƌƚŚĞĂĐƋƵŝƐŝƟŽŶŽĨW'ƌŽƵƉ͘dŚĞƐĐŽƉĞŽĨƌĞƉŽƌƟŶŐŽĨƚŚĞEŽŶͲ&ŝŶĂŶĐŝĂů^ƚĂƚĞŵĞŶƚĐŽŝŶĐŝĚĞƐǁŝƚŚƚŚĞŶŶƵĂů&ŝŶĂŶĐŝĂůZĞƉŽƌƚ͘

5ĐŽŵƉĂŶǇ ǁŝƚŚ ƉƌĞƐĞŶĐĞ ƐƉƌĞĂĚĂĐƌŽƐƐ 3 continents ;ƐŝĂ͕ ƵƌŽƉĞĂŶĚ ŵĞƌŝĐĂͿ ƚŚĂƚ ŝƐ ƐƚƌŽŶŐůǇ ĂŶĚĚĞĚŝĐĂƚĞĚůǇ ĐŽŵŵŝƩĞĚ ƚŽ ƐĞƌǀŝŶŐ
its Customers͕ ĐƌĞĂƟŶŐ Ă ǁŽƌŬĞŶǀŝƌŽŶŵĞŶƚ ǁŚĞƌĞ ŝƚƐ EmployeesĐĂŶĨĞĞůŵŽƟǀĂƚĞĚƚŽĚŽƚŚĞŝƌďĞƐƚ͕ƌĞƐƉĞĐƟŶŐthe Environment with theŚŝŐŚĞƐƚ ƐƚĂŶĚĂƌĚƐ ŽĨ ^ƵƐƚĂŝŶĂďŝůŝƚǇ͕ĚŽŝŶŐ ŝƚƐ ƉĂƌƚ ĞǀĞƌǇ ĚĂǇ to makethe world better than it is;ƚŚŝƐ ƌĞƐƉĞĐƚ ĂŶĚ ĐŽŵŵŝƚŵĞŶƚ ŝƐĐĞŶƚƌĂů ƚŽ ƚŚĞ ƐƵĐĐĞƐƐ ŽĨ our 20
factories͕ ŝŶ Ăůů ƚŚĞ ŽŵŵƵŶŝƟĞƐŝŶ ǁŚŝĐŚ ǁĞ ŽƉĞƌĂƚĞ͘ tĞ ĂƌĞ Ămanufacturer of precision balls,

rollers, ball screws and blowersǁŝƚŚ ůŽĐĂů ŵĂŶƵĨĂĐƚƵƌŝŶŐ ĂŶĚůŽĐĂůƐŽƵƌĐŝŶŐ͕ƐŚŽƌƚůĞĂĚƟŵĞƐĂŶĚĚĞƚĂŝůĞĚ ƐĞƌǀŝĐĞ͕ ƚŚƌŽƵŐŚ Ă well-organized manufacturing and sales
network͕ŵĞĞƟŶŐƚŚĞŶĞĞĚƐŽĨŽƵƌSUSTAINABILITYĂƐ ƚŚĞ ƐŝŵƵůƚĂŶĞŽƵƐ ĂĐŚŝĞǀĞŵĞŶƚ ŽĨ ĞĐŽŶŽŵŝĐƉƌŽƐƉĞƌŝƚǇ͕ ƚŚĞ ĐƌĞĂƟŽŶ ŽĨ Ă ŚĞĂůƚŚǇ͕ ƐĂĨĞ͕ ĂŶĚ ůŽǁĞŶǀŝƌŽŶŵĞŶƚĂů ŝŵƉĂĐƚ ĞŶǀŝƌŽŶŵĞŶƚ͕ ǁŚĞƌĞ
ĞǀĞƌǇŽŶĞŝƐĞƋƵĂů͕ǁŝƚŚĞƋƵĂůƌŝŐŚƚƐĂŶĚĚƵƟĞƐ͕ĞƋƵĂůŽƉƉŽƌƚƵŶŝƟĞƐ͘KƵƌŐŽĂůŝƐZKĂĐĐŝĚĞŶƚƐ
;ĂŶĚ&h>>ĐŽŵƉůŝĂŶĐĞǁŝƚŚůĂǁƐĂŶĚƌĞŐƵůĂƟŽŶƐͿ͕ZK ŚĂƌŵ ƚŽ ƉĞŽƉůĞ͕ ZK ĚĂŵĂŐĞ ƚŽ ƚŚĞĞŶǀŝƌŽŶŵĞŶƚ͕ ďƵƚ ĂůƐŽ͕ ZK ŝŶĞƋƵĂůŝƚǇ ĂŶĚZK >ĂĐŬ ŽĨ ŬŶŽǁůĞĚŐĞ͕ ǁŚŝĐŚ ŵĞĂŶƐ ĞƋƵĂů
ŽƉƉŽƌƚƵŶŝƟĞƐƚŽŐƌŽǁ͕ĨŽƌĞǀĞƌǇďŽĚǇ͘THE HIGHEST QCDS
(Quality, Cost, Delivery
time, and Service),
to be the Best-in-Class

Ball

Manufacturer,

Customer and MarketŽƌŝĞŶƚĞĚ͕ ĐŽŶƟŶƵŽƵƐůǇ
ŝŵƉƌŽǀŝŶŐƉƌŽĚƵĐƚƐ͕ƉƌŽĐĞƐƐĞƐ ĂŶĚ ƐĞƌǀŝĐĞ͘

ONE TEAM SPIRITǁŚŝĐŚƵŶĚĞƌƉŝŶƐŽƵƌĐŽƌƉŽƌĂƚĞĐƵůƚƵƌĞ͕ŽƵƌŝĚĞŶƟƚǇ
ĂƐĂĐŽŵƉĂŶǇ͘ŶĚƚŚĞǁŚŝĐŚ ŚĂƐ ďĞĞŶ ƚĂŬŝŶŐ ƐŚĂƉĞ ƐŝŶĐĞ ϮϬϮϬ͕ ĂŝŵƐƚŽ ĚĞǀĞůŽƉ ŽƵƌ ƉĞŽƉůĞ͕ ƉƌĞƉĂƌĞ ŽƵƌ ƚĂůĞŶƚƐ ĨŽƌƚŚĞ ĐŚĂůůĞŶŐĞƐ ŽĨ ƚŽŵŽƌƌŽǁ͕ ĐƌĞĂƟŶŐ sĂůƵĞDĂŶĂŐĞƌƐ ƚŚĂƚ ĐĂŶ ďĞ ƐƵŵŵĂƌŝǌĞĚ ĂƐ ƚŚĞ ƐƵŵŽĨĂŶŝŶĚŝǀŝĚƵĂů͛ƐƉƌŽĨĞƐƐŝŽŶĂůƐŬŝůůƐĂŶĚĂďŝůŝƟĞƐ͕ƚŚĞŝƌ ŚƵŵŝůŝƚǇ ĂŶĚ ĂďŝůŝƚǇ ƚŽ ĂĐŚŝĞǀĞ ƌĞƐƵůƚƐ͕ĂůůŵƵůƟƉůŝĞĚďǇƚŚĞŝƌƉŽƐŝƟǀĞĂƫƚƵĚĞ͘TN ACADEMYdƐƵďĂŬŝEĂŬĂƐŚŝŵĂ͛ƐŽǀĞƌĂůůŽĨ ƚŚĞ ZĞŐŝŽŶƐ ĂŶĚ 'ůŽďĂů ĞƌĂŵŝĐ ƵƐŝŶĞƐƐ͕ĚĞƐŝŐŶŝŶŐ ĂŶĚ ĚƌŝǀŝŶŐ ƚŚĞ ŽŵƉĂŶǇ ƚŽ ĂŶƟĐŝƉĂƚĞƚŚĞ ŵĂƌŬĞƚ ŶĞĞĚƐ͕ ƐĂƟƐĨǇ ƚŚĞ ƵƐƚŽŵĞƌƐ͛ĞǆƉĞĐƚĂƟŽŶƐ͕ ĮŶĚ ŶĞǁ ƵƐƚŽŵĞƌƐ͕ DĂƌŬĞƚƐ ĂŶĚƵƐŝŶĞƐƐKƉƉŽƌƚƵŶŝƟĞƐ͘that is our goal to be more and more a truly
global company ǁŝƚŚĂŶŝŶƚĞƌŶĂƟŽŶĂůŵĞŶƚĂůŝƚǇ͕ĚĞĞƉůǇƚƌĂŶƐĨŽƌŵŝŶŐŽƵƌŽƌŐĂŶŝǌĂƟŽŶƚŽďĞĂůǁĂǇƐ
ŽŶĞƐƚĞƉĂŚĞĂĚŽĨĐŽŵƉĞƟƚŽƌƐ͕ĂďůĞƚŽƐĞŝǌĞĞǀĞƌǇ
ŽƉƉŽƌƚƵŶŝƚǇ ĨŽƌ ĐŚĂŶŐĞ ƚŽ ďĞ ďĞƩĞƌ͕ ƐƚƌŽŶŐĞƌ͕ŵŽƌĞĂǁĂƌĞ͘dŚĞĂƌŵĞĚĂƌŵŽĨƚŚŝƐƚƌĂŶƐĨŽƌŵĂƟŽŶ
is the Monozukuri ƵŶĚĞƌƐƚŽŽĚĂƐĂƐĞƚŽĨƉƌŽĐĞƐƐĞƐ͕ǁŚŝĐŚ ŝŶ ŝƚƐĞůĨ ŝŶĐůƵĚĞƐ ĂĐƟǀŝƟĞƐ ŽĨ ƚŚŽƵŐŚƚ͕ƌĞͲŵŽĚĞůŝŶŐ͕ ŽƌŐĂŶŝǌĂƟŽŶ͕ ĂĐƟŽŶ͕ ĐŽŶƟŶƵŽƵƐ
ŝŵƉƌŽǀĞŵĞŶƚ ĂŝŵĞĚ Ăƚ ƚŚĞ ƌĞĂůŝǌĂƟŽŶ ŽĨŚŝŐŚͲƋƵĂůŝƚǇƉƌŽĚƵĐƚƐ͘SUSTAINABLE
CHANGINGƵƐƚŽŵĞƌƐ͕ĂŶĚĂĐŚŝĞǀŝŶŐƉƌŽĮƚĂďůĞ
ŐƌŽǁƚŚ͕ŝŶĐƌĞĂƐŝŶŐŽƌƉŽƌĂƚĞǀĂůƵĞ͘Ɛ ƐŽĐŝĂů͕ ŝŶĚƵƐƚƌŝĂů͕ ƚĞĐŚŶŽůŽŐŝĐĂů
ĂŶĚůŝĨĞƐƚǇůĞĐŚĂŶŐĞƐĂƌĞƉƌŽŐƌĞƐƐŝŶŐ
ŐůŽďĂůůǇ͕ǁĞŚĂǀĞĚĞĐŝĚĞĚƚŽmakethe foundation of corporate
value realization more solidand current:

PRECISION FORGROWTHthrough development in Profit generation,
Sales, Marketing, Business Development,
Geographical areas͕ƐƚƌĞŶŐƚŚĞŶŝŶŐĂƌŶŝŶŐWŽǁĞƌ

CHANGINGSUSTAINABLE
WORLD

MESSAGE FROM THE PRESIDENT AND CEO

Tsubaki Nakashima is a global

A
AND

7

in addressing the ongoing climate and social changes and what part we must responsibly play.

&Žƌ ƚŚŝƐ ƌĞĂƐŽŶ͕ ƐƚĂƌƟŶŐ ĨƌŽŵ Our Sustainable Development model is based on three fundamental pillars:ϮϬϮϭ ǁĞ ŚĂǀĞ ƐƚĂƌƚĞĚ Ă ƉĂƚŚ ŽĨsustainable development thatǁŝůů ĂůůŽǁ ƵƐ ƚŽ ŝŵƉƌŽǀĞ ƚŚĞƉĞƌĨŽƌŵĂŶĐĞ ŽĨ ŽƵƌ ĨĂĐƚŽƌŝĞƐ͕ ŝŶĂůůƌĞƐƉĞĐƚƐ͘dŚĞƌĞĐĞŶƚůǇĐƌĞĂƚĞĚ
Sustainability Committee isƌĞƐƉŽŶƐŝďůĞ ĨŽƌ ĂƐƐŝƐƟŶŐ ƚŚĞDĂŶĂŐĞŵĞŶƚ ŽŵŵŝƩĞĞ ďǇĨƵůĮůůŝŶŐĂƉƌĞƉĂƌĂƚŽƌǇ͕ĐŽŶƐƵůƚĂƟǀĞ
ĂŶĚ ĂĚǀŝƐŽƌǇ ƌŽůĞ ŝŶ ĂƐƐĞƐƐŵĞŶƚƐ
based on our Corporate Governance,a responsible use of resources andĂŶĚĚĞĐŝƐŝŽŶͲŵĂŬŝŶŐƉƌŽĐĞƐƐĞƐǁŝƚŚTN Quality Management System,
energies, as well as tracking andISO 14001, ISO 45001, ISO 50001,
reducing Green House Gas (GHG)ƌĞŐĂƌĚ ƚŽ ŶǀŝƌŽŶŵĞŶƚĂů͕ ^ŽĐŝĂů
ĂŶĚ'ŽǀĞƌŶĂŶĐĞŝƐƐƵĞƐ͕ƌĞůĂƚĞĚƚŽand other internal and external
emissions, allows us to lessendƐƵďĂŬŝEĂŬĂƐŚŝŵĂďƵƐŝŶĞƐƐĂŶĚŝƚƐstandards (i.e., GRI).
our climate change impact andƉƌŽǀŝĚĞ ŝŵƉŽƌƚĂŶƚ ŽƉƉŽƌƚƵŶŝƟĞƐ
ĞŶŐĂŐĞŵĞŶƚǁŝƚŚĂůůƐƚĂŬĞŚŽůĚĞƌƐ͕to help drive momentum forƚŚĞ ŽƌƉŽƌĂƚĞ 'ŽǀĞƌŶĂŶĐĞ ŽĨ ƚŚĞŽŵƉĂŶǇ͕ĂŶĚƚŚĞƌĞǀŝĞǁŽĨƐĐĞŶĂƌŝŽƐ
global climate ĂĐƟŽŶ͘ĞŶǀŝƐĂŐĞĚ ŝŶ ƚŚĞ ƉƌĞƉĂƌĂƟŽŶ ŽĨƚŚĞ DĞĚŝƵŵ dĞƌŵ ĂŶĚ ƵƐŝŶĞƐƐWůĂŶƐ͕ ďĂƐĞĚ ĂůƐŽ ŽŶ ƚŚĞ ĂŶĂůǇƐŝƐŽĨ ƐŝŐŶŝĮĐĂŶƚ ŝƐƐƵĞƐ ĨŽƌ ƚŚĞĐƌĞĂƟŽŶŽĨůŽŶŐͲƚĞƌŵǀĂůƵĞ͘

INTEGRATEDGOVERNANCE
SYSTEM

1

SUSTAINABLE
MONOZUKURI

Paris Agreement and the AGENDA 2030ŽĨƚŚĞhŶŝƚĞĚ

COMMUNICATION
AND BRAND
UnitedIDENTITY
Nations Sustainable Development Goals (SDGs)

EĂƟŽŶƐĂŝŵƚŽƐƚƌĞŶŐƚŚĞŶƚŚĞŐůŽďĂůƌĞƐƉŽŶƐĞƚŽƚŚĞƚŚƌĞĂƚŽĨ ĐůŝŵĂƚĞ ĐŚĂŶŐĞ ďǇ ŬĞĞƉŝŶŐ Ă ŐůŽďĂů ƚĞŵƉĞƌĂƚƵƌĞ ƌŝƐĞƚŚŝƐ ĐĞŶƚƵƌǇ ǁĞůů ďĞůŽǁ ϮΣ ĂďŽǀĞ ƉƌĞͲŝŶĚƵƐƚƌŝĂů ůĞǀĞůƐ͘dƐƵďĂŬŝ EĂŬĂƐŚŝŵĂ ƌĞŝƚĞƌĂƚĞƐ ŝƚƐ ƐƵƉƉŽƌƚ ĨŽƌ ƚŚĞǁĞďĞůŝĞǀĞƚŚĂƚĐŽŶƟŶƵŽƵƐĂŶĚŽŶĞͲƚŽͲŽŶĞĐŽŵŵƵŶŝĐĂƟŽŶďĞƚǁĞĞŶƚŚĞCompany and our Stakeholders willďĞ ĞƐƐĞŶƟĂů ƚŽ ŵĂŬĞ ŶĞǁ ƐǇƐƚĞŵƐ͕processes, behavior models fullyĞīĞĐƟǀĞĂŶĚƚŽŝŶĐƌĞĂƐĞĂǁĂƌĞŶĞƐƐ͕bringing the Company to an evenŵŽƌĞ ŝŶƚĞƌŶĂƟŽŶĂů ĂŶĚ ŵŽĚĞƌŶdimension, immediately visible,
ƌĞĐŽŐŶŝǌĂďůĞ͕ĂŶĚĂƩƌĂĐƟǀĞ͘

2

3

PRECISION FORAANDSUSTAINABLE
CHANGINGĂŶĚ ŽƵƌ ĞŶǀŝƌŽŶŵĞŶƚĂů ƐƵƐƚĂŝŶĂďŝůŝƚǇ ŐŽĂůƐ ĂƌĞ ŝŶ ůŝŶĞ ǁŝƚŚŐůŽďĂůƐƵƐƚĂŝŶĂďŝůŝƚǇƚĂƌŐĞƚƐ;Paris AgreementͿ͘dŚĞǀŝƐŝŽŶ͕ƚŚĞ ĂǁĂƌĞŶĞƐƐ ŽĨ ƚŚĞ ŵŝƐƐŝŽŶ ǁĞ ǁĂŶƚ ƚŽ ĂĐĐŽŵƉůŝƐŚ͕ĐŽŵďŝŶĞĚ ǁŝƚŚ ŽƵƌ ĚĂŝůǇ ĐŽŵŵŝƚŵĞŶƚ͕ ƚŚĞ ǁŽƌŬ ŽĨ ŽƵƌǁŽŵĞŶ ĂŶĚ ŵĞŶ ǁŝůů ŶŽƚ ŽŶůǇ ĂůůŽǁ ƵƐ ƚŽ ŽǀĞƌĐŽŵĞ ƚŚĞĂĚǀĞƌƐŝƟĞƐ ŽĨ ƚŚĞƐĞ ǇĞĂƌƐ͕ ďƵƚ ǁŝůů ĐƌĞĂƚĞ ƚŚĞ ĐŽŶĚŝƟŽŶƐĨŽƌ ƌĞƐƉŽŶƐŝďůĞ͕ ƐƵƐƚĂŝŶĂďůĞ ĂŶĚ ƉƌŽĮƚĂďůĞ ĚĞǀĞůŽƉŵĞŶƚ͘

MESSAGE FROM THE PRESIDENT AND CEO

Like TSUBAKI NAKASHIMA, we haveclear in mind what our responsibility is

DirectorĂŶĚZĞƉƌĞƐĞŶƚĂƟǀĞǆĞĐƵƟǀĞKĸĐĞƌ͕K
Koji Hirota

CHANGINGSUSTAINABLE
WORLD

9

Founded in 1934 by Kosaburo Chikamori, Toyo Steel Ball Seisakusho started manufacturing
steel balls for bicycles. In 1954 the Company changed name to Tsubakimoto Steel Ball
Manufacturing Co., Ltd. and in 1958 began mass production of nylon, stainless, brass, andother special balls such as tungsten carbide balls. In 1961 the Company was listed on thesecond section of both the Tokyo and Osaka Stock Exchanges. In 1973 it started manufacturing
and sale of ceramic balls.

OUR COMPANYOUR PRODUCTS

More recently, in 1996 the Company has been merged with Nakashima Seisakusho Co., Ltd.,and finally Tsubaki Nakashima Co., Ltd. was established, starting a long process of acquisitions(USA, India, China, Poland, Taiwan, UK, Thailand which ended in 2017 with the acquisitionof Precision Bearing Components, Group of NN Inc.).

We are a specialized manufacturer of PRECISION BALLS AND ROLLERS as well BALLSCREWS AND OTHER MECHANICAL PARTS, headquartered in Nara, Japan. In addition
to Japan, we manufacture in the United States, Italy, Poland, Slovakia, The Netherlands,
Bosnia, United Kingdom, China, Thailand, India and Taiwan. The industry’s mostwell-established production network enables us to respond to various customer
needs, local procurement, quick delivery, and superior customer support.

AT A GLANCE

We produce a broad range of HIGH-QUALITY PRECISION BALLS, rollers andball screws with more than 20,000 product types. Utilizing various materials
including CERAMICS AND STEELS, in a range of sizes to meet our customers’
specific requirements. We have been a pioneer in the mass production ofceramic balls utilizing our manufacturing know-how and process technology
in various areas. Our development capabilities and industry-leading productline-up allow us to fulfill a variety of needs from global customers, which enables us
to support new demands from a variety of end-market products and uses.

TSUBAKI NAKASHIMATSUBAKI NAKASHIMA AT A GLANCEOUR HISTORY

11

6

ASIA

20 PLANTS

6

AMERICA

JAPAN

4

4

GLOBALPRESENCE

dƐƵďĂŬŝEĂŬĂƐŚŝŵĂŽ͘>ƚĚ͘ŝƐŚĞĂĚƋƵĂƌƚĞƌĞĚŝŶEĂƌĂ͕:ĂƉĂŶ͕ǁŝƚŚŽĸĐĞƐŝŶKƐĂŬĂ͕
Singapore, Seoul and 20 plants in 12 Countries: Japan, United States, Italy, Poland,
Slovakia, The Netherlands, UK, Bosnia, China, Thailand, India and Taiwan.
This enables Tsubaki Nakashima to respond to variousĐƵƐƚŽŵĞƌŶĞĞĚƐ͕ůŽĐĂůƉƌŽĐƵƌĞŵĞŶƚ͕ƋƵŝĐŬĚĞůŝǀĞƌǇ͕ĂŶĚƐƵƉĞƌŝŽƌĐƵƐƚŽŵĞƌƐƵƉƉŽƌƚ͘

TSUBAKI NAKASHIMA AT A GLANCETSUBAKI NAKASHIMAEUROPE

13

TSUBAKI NAKASHIMA
Okayama, JAPANKrasnik, POLAND

Sechibaru, JAPAN

Koriyama, JAPANKatsuragi, JAPANEUROPE

Sault St. Marie - MI, USA

Kysucke, SLOVAKIANORTH AMERICA

Erwin - TN, USA

Worthing, UK

Mountain City - TN, USA

Pinerolo, ITALY

Cumming - GA, USA

Konjic, BOSNIAASIAGLOBALPRESENCE

TSUBAKI NAKASHIMA AT A GLANCE

Veneendaal, NETHERLANDS

Silvassa, INDIA

20 PLANTS
Chongquing, CHINA

Kunshan, CHINA

Taichung, TAIWANTaicang, CHINA

Rayong, THAILAND
15

N
U
M
B
E
R
S

20

plants12

2.999

67.926

GLOBALORGANIZATIONBELONGING TOREVENUES

countries

employees

31

TSUBAKI NAKASHIMA AT A GLANCETSUBAKI NAKASHIMA
MJPY

different
nationalities
17

NO MAN IS AN ISLANDNO MANIS AN
ISLANDIn thelast months of 2021
Tsubaki Nakashima started toƌĞĚĞƐŝŐŶ ŝƚƐ KƌŐĂŶŝǌĂƟŽŶ͕ ǁŚŝĐŚ ǁŽƵůĚ ƚŚĞŶďĞĐŽŵĞ ŽƉĞƌĂƟŽŶĂů ĂƐ ŽĨ :ĂŶƵĂƌǇ ϭ͕ ϮϬϮϮ͘ dŚĞĐŽƌƉŽƌĂƚĞ ƐƚƌƵĐƚƵƌĞ ŽĨ ƚŚĞ ĐŽŵƉĂŶǇ ŝƐ ŵĂĚĞ ƵƉ ŽĨ ĂŚŝŐŚͲůĞǀĞů ĐŽŵƉĂŶǇ ŽƌŐĂŶŝǌĞĚ ďǇ Ă Board of Directors madeƵƉŽĨϳŵĞŵďĞƌƐĂŶĚďǇĂ Management Committee ;ŵĂĚĞƵƉŽĨϲŵĞŵďĞƌƐͿ͘ dƐƵďĂŬŝ EĂŬĂƐŚŝŵĂ͛Ɛ ŵŝĚͲƚĞƌŵ ƉůĂŶ ďĞĂƌƐ ƚǁŽ ŝŵƉŽƌƚĂŶƚ
ǁŽƌĚƐ͕ TRANSFORM NEXT͕ ƐŝŐŶŝĨǇŝŶŐ ƚŚĞ ĐŽŵƉĂŶǇ͛Ɛ ĐŽŵŵŝƚŵĞŶƚ ƚŽ ĂĐŽŶƟŶƵŽƵƐ ƉƌŽĐĞƐƐ ŽĨ ƐƵƐƚĂŝŶĂďůĞ ƚƌĂŶƐĨŽƌŵĂƟŽŶ ĂŶĚ ƌĂƟŽŶĂůŝǌĂƟŽŶ͘ĐĐĞůĞƌĂƟŶŐƚŚĞŐƌŽǁƚŚ͕ƐƚƌĞŶŐƚŚĞŶŝŶŐƚŚĞĞĂƌŶŝŶŐƉŽǁĞƌŽĨŽƵƌZĞŐŝŽŶƐĂŶĚ'ůŽďĂůĞƌĂŵŝĐƵƐŝŶĞƐƐƵŶĚĞƌƚŚĞŐƵŝĚĂŶĐĞŽĨĂƐŝŶŐůĞ>ĞĂĚĞƌ͕ƚŚĞChief Growth
Officer ǁŚŽůĞĂĚƐ 5 RegionsĂŶĚͬŽƌƵƐŝŶĞƐƐĞƐ dƌĂŶƐĨŽƌŵŝŶŐƚŚĞŽŵƉĂŶǇŝŶĂƐƵƐƚĂŝŶĂďůĞǁĂǇ͕ĞǆĞĐƵƟŶŐŽƵƌƐƚƌĂƚĞŐŝĐƉƌŽũĞĐƚƐ͕ƌĞĨŽƌŵŝŶŐŽƵƌďƵƐŝŶĞƐƐǁŝƚŚƚŚĞƐƵƉƉŽƌƚ ŽĨ ŽƵƌ Monozukuri Team ǁŝƚŚ ϱ KƉĞƌĂƟŽŶĂů &ƵŶĐƟŽŶƐ ;ƐƵƐƚĂŝŶĂďůĞ
ĚĞǀĞůŽƉŵĞŶƚ͕ĞŶŐŝŶĞĞƌŝŶŐ͕ƉƵƌĐŚĂƐŝŶŐ͕ƋƵĂůŝƚǇ͕ƉůĂŶƚŵĂŶĂŐĞŵĞŶƚĂŶĚĐŽŶƟŶƵŽƵƐŝŵƉƌŽǀĞŵĞŶƚͿ͕ƵŶĚĞƌƚŚĞŐƵŝĚĂŶĐĞŽĨŽŶĞǀŝƐŝŽŶĂƌǇ>ĞĂĚĞƌ͕ƚŚĞChief Transformation
Officer  ĞǀĞůŽƉŝŶŐ ĂŶĚ ƐƚƌĞĂŵůŝŶŝŶŐ ŽĨ WůĂŶŶŝŶŐ Θ WƌŽŵŽƟŽŶ ^ƚƌƵĐƚƵƌĞ ĨŽƌDĂŶĂŐĞŵĞŶƚŽŶƚƌŽůDΘ͕ƵŶĚĞƌƚŚĞŐƵŝĚĂŶĐĞŽĨƚŚĞChief Financial Officer͕ǁŚŽǁŝůůǁŽƌŬǁŝƚŚƚŚĞChief Human Resources Officer ƚŽĚƌŝǀĞƐƵƐƚĂŝŶĂďůĞƐƚƌĂƚĞŐŝĞƐ͘19

Finance andAdministration

Transformation

GrowthChiefTransformation Officer

Chief
Growth Officer

Key
Account Managers

Monozukuri
CFO
CHRO

VP Monozukuri
VP Engineering, R&D
VP Purchasing and Supply Chain
Quality & Laboratory
Continuous Improvement
and Plant Management

Japan

China

Global CeramicBusiness

EuropeNO MANIS AN
ISLAND

Americas

NO MAN IS AN ISLAND • ORGANIZATIONAL CHARTTSUBAKI NAKASHIMA
CEO21

SALES
OF CERAMICBALLS

INCREASED BY
67.9 BILLION
25%* UP YOY 37.5% UP YOY

SALES OFMEDICAL DEVICE
BUSINESS

SALES IN ASIA
[ EXCL. CHINA
AND CERAMIC ]COMBINED SALESFOR THE GROWTHSTRATEGIES ACHIEVED

OPERATING
PROFIT
ACHIEVED

INCREASED BY
58.5% UP YOY

INCREASED BY
25.8% UP YOY

12.0 BILLIONINCREASE

5.82 BILLION
56%* UP YOY

SALES & OP

FOR THE SIXTHCONSECUTIVEQUARTER

2021 RESULTS: SALES AND OP

SALESACHIEVED*
Excluding“FX impact”
23

OUR PRODUCTS

MEDICAL PRODUCTS

SPECIALLY MANUFACTUREDPRODUCTSPRECISION
CERAMIC BALLSPRECISIONSTEEL BALLSCMM REFERENCEBALLSBESPOKETOOLING FEATURES
TO DESIGNPRECISION ROLLERSAND STAMPINGSTSUBAKINAKASHIMA

WIND TUNNELSOLIDPLASTIC BALLSBALL SCREWSOTHERSGLASS BALLSPRODUCTSFOR ELECTRIC
POWER INDUSTRY

YS
A
W
L
BAL
LARGE SCALEBLOWERSPRODUCTS

25

25

OUR PRODUCTSTSUBAKINAKASHIMAPRECISIONSTEEL BALLSPRECISIONROLLERSAND STAMPINGS

Bearing Steel Balls, Stainless Steel Balls, Carbon SteelBalls, Chrome Steel, Nickel Chrome Molybdenum
Steel, Tungsten Carbide Alloy Balls, Non-ferrous Metal
Balls are used in a variety of products for everyday
use – these include home electronics such as airĐŽŶĚŝƟŽŶĞƌƐ͕ ƌĞĨƌŝŐĞƌĂƚŽƌƐ͕ ĂŶĚ ǀĂĐƵƵŵ ĐůĞĂŶĞƌƐ Ͳ ƚŽĞŶƐƵƌĞ Ă ƋƵŝĞƚ ŽƉĞƌĂƟŽŶ͘ dŚĞ ŚŝŐŚ ƉƌĞĐŝƐŝŽŶ ŽĨ ŽƵƌprecision components ensures the highest durability andƋƵĂůŝƚǇƚŽŵĞĞƚŽƵƌĚŝǀĞƌƐĞĐůŝĞŶƚ͛ƐŶĞĞĚƐ͘KƵƌŝŶĚƵƐƚƌǇƉŽƐŝƟŽŶĂƐƚŚĞůĂƌŐĞƐƚŝŶĚĞƉĞŶĚĞŶƚŵĂŶƵĨĂĐƚƵƌĞƌŽĨƉƌĞĐŝƐŝŽŶrollers allows TN theŇĞǆŝďŝůŝƚǇ ƚŽ ŽīĞƌ ƉƌŽĚƵĐƚƐ ŵĂƚĐŚŝŶŐ Ă ǁŝĚĞ ƌĂŶŐĞ ŽĨ ĐƵƐƚŽŵĞƌ ƐƉĞĐŝĮĐĂƟŽŶƐ͘ KƵƌ ƌŽůůĞƌƚĞĐŚŶŽůŽŐŝĞƐŚĂǀĞďĞĞŶƉƌŽǀĞŶƚŽĐƌĞĂƚĞůŽǁĞƌĨƌŝĐƟŽŶ͕ďĞĂƌŚĞĂǀŝĞƌůŽĂĚƐ͕ĂŶĚǁŝƚŚƐƚĂŶĚƚŚĞŵŽƐƚƐĞǀĞƌĞĐŽŶĚŝƟŽŶƐ͕ĞŶƐƵƌŝŶŐƚŚĂƚďĞĂƌŝŶŐƐĐŽŶƚĂŝŶŝŶŐdEƌŽůůĞƌƐŚĂǀĞƚŚĞůŽŶŐĞƐƚƉŽƐƐŝďůĞ
ƐĞƌǀŝĐĞůŝĨĞ͘KƵƌĨƵůůǇĂƵƚŽŵĂƚĞĚ͕ĚĞĞƉͲĚƌĂǁŶƚƌĂŶƐĨĞƌĂŶĚĚŝĞpressing technology allows us
to manufacture a wide variety of precision sheet metal parts, including tapered and sphericalƌŽůůĞƌ ĐĂŐĞƐ ĂƐ ǁĞůů ĂƐ ŽƚŚĞƌ ƉƌŽĚƵĐƚƐ ĨŽƌ ĂƵƚŽŵŽƟǀĞ ĂŶĚ ŝŶĚƵƐƚƌŝĂů ŵĂƌŬĞƚƐ͘ dŚŝƐ ƉƌŽĐĞƐƐĚĞůŝǀĞƌƐŚŝŐŚƉƌĞĐŝƐŝŽŶĂŶĚŝŵƉƌŽǀĞƐŽǀĞƌĂůůƉƌŽĚƵĐƚƉĞƌĨŽƌŵĂŶĐĞ͘PRODUCTS

27

OUR PRODUCTSPRECISION
CERAMIC BALLS&ŝŶĞĐĞƌĂŵŝĐƐĂƌĞůŝŐŚƚĂŶĚƚŽƵŐŚ͘/ŶĂĚĚŝƟŽŶƚŽŚĂǀŝŶŐĞǆĐĞůůĞŶƚŝŶƐƵůĂƟŶŐƉƌŽƉĞƌƟĞƐ͕ƚŚĞǇŚĂǀĞĞǆĐĞůůĞŶƚǁĞĂƌƌĞƐŝƐƚĂŶĐĞ͕ŚĞĂƚ
resistance ĂŶĚĐŽƌƌŽƐŝŽŶƌĞƐŝƐƚĂŶĐĞ͘dĂŬŝŶŐĂĚǀĂŶƚĂŐĞŽĨƚŚĞƐĞĐŚĂƌĂĐƚĞƌŝƐƟĐƐ͕ŽƵƌĐĞƌĂŵŝĐďĂůůƐĂƌĞƵƐĞĚŝŶďĞĂƌŝŶŐƐĨŽƌƐƉŝŶĚůĞ
ŵŽƚŽƌƐŽĨŵĂĐŚŝŶĞƚŽŽůƐ͕ƚƵƌďŽĐŚĂƌŐĞƌƐ͕ĂŶĚĚĞŶƚĂůĚƌŝůůƐƚŚĂƚƌŽƚĂƚĞ Ăƚ ŚŝŐŚ ƐƉĞĞĚƐ͘ ĞƌĂŵŝĐ ďĂůůƐ ĂƌĞ ĂůƐŽ ƵƐĞĚ ĂƐ ĐŚĞĐŬďĂůůƐŝŶŵĞƚĞƌŝŶŐƉƵŵƉƐĨŽƌŇƵŝĚĐŽŶƚƌŽůŝŶǁĂƚĞƌƚƌĞĂƚŵĞŶƚĂŶĚĨŽŽĚĂƉƉůŝĐĂƟŽŶƐ͘KƵƌĐĞƌĂŵŝĐďĂůůƐĂƌĞŝŶĚŝƐƉĞŶƐĂďůĞĨŽƌĐƌĞĂƟŶŐƚŚĞĨƵƚƵƌĞĨŽƌĞŶǀŝƌŽŶŵĞŶƚĂůůǇĨƌŝĞŶĚůǇĂƉƉůŝĐĂƟŽŶƐsuch asǁŝŶĚƉŽǁĞƌŐĞŶĞƌĂƚŽƌƐ͕ĞůĞĐƚƌŝĐǀĞŚŝĐůĞƐ͕ĂŶĚƐĞŵŝĐŽŶĚƵĐƚŽƌŵĂŶƵĨĂĐƚƵƌŝŶŐĞƋƵŝƉŵĞŶƚƚŚĂƚƐƵƉƉŽƌƚƐϱ'ƚĞĐŚŶŽůŽŐǇ͘

TSUBAKINAKASHIMAPRODUCTS

29

IV therapy check valves
High speed dental drills

OUR PRODUCTS

Example of applications

Xray markers
Surgical instruments

SOLID
PLASTIC BALLSMEDICAL
PRODUCTSFDA Registered for Contract
Cleanroom Injection Molding^ŽůŝĚƉůĂƐƟĐďĂůůƐĂƌĞĂůŝŐŚƚͲǁĞŝŐŚƚĂůƚĞƌŶĂƟǀĞƚŽŵĞƚĂůďĂůůƐ͘>ĞƐƐƚŚĂŶϭͬϲƚŚƚŚĞǁĞŝŐŚƚŽĨŵĞƚĂůĂŶĚƚŚĞǁĞŝŐŚƚŽĨĂůƵŵŝŶƵŵ͕ĂĚǀĂŶĐĞƐ ŝŶ ƉůĂƐƟĐ ŵĂƚĞƌŝĂů ĨŽƌŵƵůĂƟŽŶƐ ĂŶĚ ƚŚĞƌŵŽƉůĂƐƟĐƉƌŽĚƵĐƚƐĐĂŶĞǀĞŶŽƵƚƉĞƌĨŽƌŵŵĞƚĂůŝŶĐĞƌƚĂŝŶĂƉƉůŝĐĂƟŽŶƐ͘dŚĞďĂůůƐĐĂŶďĞƵƐĞĚŝŶĂƉƉůŝĐĂƟŽŶƐƌĞƋƵŝƌŝŶŐůŝŐŚƚǁĞŝŐŚƚ͕ŶŽŝƐĞ
ƌĞĚƵĐƟŽŶ͕ĐŽƌƌŽƐŝŽŶƌĞƐŝƐƚĂŶĐĞŽƌĐŽůŽƌ͘ŽŵŵŽŶĂƉƉůŝĐĂƟŽŶƐĂƌĞůŝŐŚƚǁĞŝŐŚƚďĞĂƌŝŶŐƐ͕ĐŚĞĐŬǀĂůǀĞƐ͕ĂŶĚƉůƵŐďĂůůƐ͘

TSUBAKINAKASHIMAPRODUCTStĞƐƉĞĐŝĂůŝǌĞŝŶŚŝŐŚƋƵĂůŝƚǇ͕ƉƌŝĐĞĐŽŵƉĞƟƟǀĞ͕ŝŶũĞĐƟŽŶŵŽůĚŝŶŐ ŽĨ ƉůĂƐƟĐ ƚƵďĞƐ͕ ƉĞƚƌŝ ĚŝƐŚĞƐ ĂŶĚ ŽƚŚĞƌ ƉůĂƐƟĐ
ĚŝƐƉŽƐĂďůĞƐ͘ tĞ ĞŵƉůŽǇ ƐƚĂƚĞ ŽĨ ƚŚĞ Ăƌƚ ŝŶũĞĐƟŽŶŵŽůĚŝŶŐĂŶĚĐůĞĂŶƌŽŽŵƚĞĐŚŶŽůŽŐǇǁŝƚŚĂĚǀĂŶĐĞĚƐŬŝůůƐ
ǁŚĞƌĞ ƟŐŚƚ ƚŽůĞƌĂŶĐĞ͕ ƐƉĞĐŝĂů ĐŽůŽƌ͕ ĐůĂƌŝƚǇ Žƌ ůŝŐŚƚ
ƚƌĂŶƐŵŝƩĂŶĐĞ ĂŶĚ ůŽƚͲƚŽͲůŽƚ ŝŶƚĞŐƌŝƚǇ ĂƌĞ ĐƌƵĐŝĂů͘ ^ŽŵĞƐƉĞĐŝĂůƚǇ ŝŶũĞĐƟŽŶ ŵŽůĚĞĚ ƉůĂƐƟĐ ƉĂƌƚƐ ĐĂŶ ďĞŵĂŶƵĨĂĐƚƵƌĞĚŝŶŽƵƌůĂƐƐϴŽŵƉůŝĂŶƚ͕/^Kϭϯϰϴϱ͗ϮϬϭϲĞƌƟĮĞĚ͕&ƌĞŐŝƐƚĞƌĞĚĐůĞĂŶƌŽŽŵ͘

Medical tester
Analysis and diagnostics
Airways and respiratory
Endoscopic irrigation
and washing
Disinfection machines
Haemodyalisis
Blood processing equipment
Saline washing and cooling
Tumour ablation31ůŽŶŐƐŝĚĞŽƵƌƐƚĂŶĚĂƌĚƐĞůĞĐƟŽŶŽĨƉƌĞĐŝƐŝŽŶďĂůůƐ͕ŽƵƌ^ƉŚĞƌŝĐdƌĂĨĂůŐĂƌďƌĂŶĚĐĂŶƐƵƉƉůǇĂǁŝĚĞƌĂŶŐĞ
ŽĨƐƉĞĐŝĂůůǇŵĂŶƵĨĂĐƚƵƌĞĚŵĞƚƌŽůŽŐǇƉƌŽĚƵĐƚƐƚŚĂƚŵĞĞƚƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐŽĨĚĞŵĂŶĚŝŶŐĞŶŐŝŶĞĞƌƐĂĐƌŽƐƐĂůůƐĞĐƚŽƌƐŽĨŝŶĚƵƐƚƌǇ͘BESPOKETOOLINGFEATURESBALLSCREWS

to designdŽŽůŝŶŐĂůůƐĨŽƌŐĞŶĞƌĂůƉƵƌƉŽƐĞƵƐĞŝŶ:ŝŐƐĂŶĚĮǆƚƵƌĞƐ͕^ƉŚĞƌŝĐĂůWůƵŐ'ĂƵŐĞƐĨŽƌŐĂƵŐŝŶŐŝŶƚĞƌŶĂůďŽƌĞƐ͕^ƉĞĐŝĂůƚǇdƵŶŐƐƚĞŶĂƌďŝĚĞďĂůůƉƌŽĚƵĐƟŽŶ͘

GLASS
BALLS

tĞŚĂǀĞĞƐƚĂďůŝƐŚĞĚĂŶŝŶƚĞŐƌĂƚĞĚŵĂŶƵĨĂĐƚƵƌŝŶŐƐǇƐƚĞŵƐƚĂƌƟŶŐǁŝƚŚƚŚĞŽƌŝŐŝŶĂůŵĂƚĞƌŝĂů͘
ǇĂƉƉůǇŝŶŐŽƵƌƉƌŽĚƵĐƟŽŶƚĞĐŚŶŽůŽŐŝĞƐŽĨƚŚĞƐƚĞĞůďĞĂƌŝŶŐďĂůůƐŝŶƚŽƚŚŝƐƐǇƐƚĞŵ͕ǁĞĐĂŶŽīĞƌǇŽƵŚŝŐŚͲƋƵĂůŝƚǇƉƌŽĚƵĐƚƐĂƚĂůŽǁƉƌŝĐĞ͘h<^ĂůŝďƌĂƟŽŶͲŽƵƌůĂďŽƌĂƚŽƌǇĐĂŶƐƵƉƉůǇh<^ĐĞƌƟĮĞĚŵĞĂƐƵƌĞŵĞŶƚĐĞƌƟĮĐĂƚĞƐĨŽƌďĂůůƐĨƌŽŵϭŵŵƵƉƚŽϲϬŵŵĂŶĚŽīĞƌĂŵĞĂƐƵƌĞŵĞŶƚƵŶĐĞƌƚĂŝŶƚǇĂƐĂĐĐƵƌĂƚĞĂƐцϬ͘ϬϬϬϮϱŵŵ͘

TSUBAKINAKASHIMACMM
REFERENCE
BALLS

for setting precision
measuring equipment

PRODUCTSOUR PRODUCTS

SPECIALLY MANUFACTUREDPRODUCTStĞŚĂǀĞĂŶƵŶƉĂƌĂůůĞůĞĚůŝŶĞƵƉŽĨƐŵĂůůƚŽůĂƌŐĞƉƌŽĚƵĐƚƐ͕ŚĞĂǀǇůŽĂĚƉƌŽĚƵĐƚƐ͕ĂŶĚŚŝŐŚƉƌĞĐŝƐŝŽŶƌŽůůĞĚƉƌŽĚƵĐƚƐ͘dŚĞƐĞĂƌĞŽŌĞŶƵƐĞĚŝŶŵĂĐŚŝŶĞƚŽŽůƐ͕ĞůĞĐƚƌŝĐŝŶũĞĐƟŽŶŵŽůĚŝŶŐŵĂĐŚŝŶĞƐ͕ƐĞŵŝĐŽŶĚƵĐƚŽƌŵĂŶƵĨĂĐƚƵƌŝŶŐĞƋƵŝƉŵĞŶƚ͕ŝŶĚƵƐƚƌŝĂůƌŽďŽƚƐ͕ĂŶĚĂĚǀĂŶĐĞĚŵĞĚŝĐĂůĞƋƵŝƉŵĞŶƚ͘

BALL
WAYS

dŚĞĨĞĂƚƵƌĞƐŽĨƚŚŝƐƉƌŽĚƵĐƚĂƌĞϰĞƋƵĂůůŽĂĚĐĂƉĂĐŝƟĞƐŝŶϰĚŝƌĞĐƟŽŶƐ͕ŚŝŐŚŵŽŵĞŶƚůŽĂĚĐĂƉĂĐŝƚǇ͕ƚƵďĞƚǇƉĞ͕ǁŚŝůĞĂůƐŽƉƌŽǀŝĚŝŶŐůŽŶŐůŝĨĞ͕ŚŝŐŚƌŝŐŝĚŝƚǇ͕ĂŶĚŚŝŐŚͲƐƉĞĞĚƌƵŶŶŝŶŐ͘dŚŝƐƉƌŽĚƵĐƚŚĂƐĂŶĞƐƚĂďůŝƐŚĞĚƌĞƉƵƚĂƟŽŶĨŽƌĞĂƐĞŽĨĐĞŶƚĞƌŝŶŐŝŶŵĂĐŚŝŶĞƌǇ͘>ŝŬĞĂůů^ĐƌĞǁƐ͕ĂůůtĂǇƐĂƌĞƵƐĞĚŝŶĂǁŝĚĞƌĂŶŐĞŽĨŝŶĚƵƐƚƌŝĞƐ͘33

dŚĞ ŝƌŽŶ ĂŶĚ ƐƚĞĞů ŝŶĚƵƐƚƌǇ ƌĞƋƵŝƌĞƐ ƐƚĂďůĞ ŽƉĞƌĂƟŽŶ ƵŶĚĞƌŚĂƌƐŚĐŽŶĚŝƟŽŶƐŽĨŚŝŐŚƚĞŵƉĞƌĂƚƵƌĞĂŶĚŚŝŐŚƉƌĞƐƐƵƌĞ͘tĞƉƌŽǀŝĚĞƐĂĨĞĂŶĚƌĞůŝĂďůĞƉƌŽĚƵĐƚƐƚŚĂƚĂƌĞƌĞƐŝƐƚĂŶƚƚŽǁĞĂƌĂŶĚĐŽƌƌŽƐŝŽŶ͕ŚŝŐŚƚĞŵƉĞƌĂƚƵƌĞĂŶĚƐƉĞĐŝĂůŐĂƐĞƐ;Ğ͘Ő͘K'͕>'͕
&'Ϳ͘tĞĂůƐŽƉƌŽǀŝĚĞƉŽƐƚͲĚĞůŝǀĞƌǇƐƵƉƉŽƌƚƚŽŵĞĞƚŝŶĚŝǀŝĚƵĂů
ĐƵƐƚŽŵĞƌ ŶĞĞĚƐ͘ dǇƉŝĐĂů ĂƉƉůŝĐĂƟŽŶƐ ĂƌĞ͗ /& ŽĨ K'͕ K'ďŽŽƐƚĞƌĨĂŶ͕ƐƚĞĂŵĞǆŚĂƵƐƚĨĂŶ͕ĚƵƐƚĐŽƌƌĞĐƚŽƌĨĂŶ͕ĚŝƌĞĐƚĚƵƐƚĐŽůůĞĐƟŽŶ ĨĂŶ͕ ŚǇĚƌŽĐŚůŽƌŝĐ ĂĐŝĚ ƌĞĐŽǀĞƌǇ ĨĂŶ͕ EϮ ƉƵƌŐĞ ĨĂŶ͕ƉƌĞŚĞĂƟŶŐĨĂŶ͕h&͕ĐŽĂůĞǆŚĂƵƐƚŵĂĐŚŝŶĞ͘PRODUCTSFOR ELECTRIC POWER
INDUSTRYůĞĐƚƌŝĐŝƚǇ ĚĞŵĂŶĚƐ ŝŶĐƌĞĂƐĞ ǇĞĂƌĂŌĞƌǇĞĂƌ͘^ƚĂďůĞƉŽǁĞƌƐƵƉƉůŝĞƐǁŝůůďĞĐŽŵĞ ĞǀĞŶ ŵŽƌĞ ŝŵƉŽƌƚĂŶƚ ĂƐŐůŽďĂůƉŽǁĞƌƌĞƋƵŝƌĞŵĞŶƚƐĞǆƉĂŶĚ͘KƵƌƉƌŽǀĞŶƚƌĂĐŬƌĞĐŽƌĚŽĨƉƌŽĚƵĐƚƐ
ĂŶĚ ƐĞƌǀŝĐĞƐ ǁŝƚŚŝŶ ŶƵĐůĞĂƌ ĂŶĚƚŚĞƌŵĂůƉŽǁĞƌƉůĂŶƚƐĚĞŵŽŶƐƚƌĂƚĞŽƵƌĐŽŵŵŝƚŵĞŶƚƚŽŽƵƌĐƵƐƚŽŵĞƌƐŵĞĞƟŶŐ ƚŚŽƐĞ ƌŝŐŽƌŽƵƐ ĚĞŵĂŶĚƐ͘

TSUBAKINAKASHIMA

WIND
TUNNELOTHERS

PAFtĞŚĂǀĞĚĞǀĞůŽƉĞĚĂŶŽƌŝŐŝŶĂůŚŝŐŚ ĞĸĐŝĞŶĐǇ ƚǇƉĞ ƚƵƌďŽ ĨĂŶƚŚĂƚŵĂƚĐŚĞƐƚŚĞĞĸĐŝĞŶĐǇŽĨĂŶ ĂŝƌĨŽŝů ĨĂŶ͘ /ƚ ŝƐ ƉĞƌĨĞĐƚ ĨŽƌĐƵƫŶŐ ĚŽǁŶ ƚŚĞ ŝŶŝƟĂů ĂŶĚƚŚĞƌƵŶŶŝŶŐĐŽƐƚƐ͘

IDF

HIGH
PRESSURE
BLOWERĞƌĂŵŝĐ Žƌ ŚĂƌĚĞŶĞĚ ƉůĂƚĞƐ
ĐĂŶďĞĂƩĂĐŚĞĚƚŽƚŚĞŝŵƉĞůůĞƌ
ƐƵƌĨĂĐĞƐƚŽƉƌĞƉĂƌĞƚŚĞƉƌŽĚƵĐƚ
ĨŽƌƵƐĞŝŶĂŶĂďƌĂƐŝǀĞ
ĞŶǀŝƌŽŶŵĞŶƚ͘

MULTI-STAGE
IMPELLERPRODUCTS(stainless steel)OUR PRODUCTSLARGE SCALEBLOWERStŝŶĚ ƚƵŶŶĞůƐ ƉƌŽǀŝĚĞ ǀĂůƵĂďůĞ ŇŽǁĚĂƚĂ ƚŚĂƚ ĐŽŶƟŶƵĞ ƚŽ ŝŵƉƌŽǀĞ ƵƉŽŶĚĞƐŝŐŶƐŽĨĂƵƚŽŵŽďŝůĞƐ͕ŵŽƚŽƌĐǇĐůĞƐ͕ƐƉŽƌƚǁĞĂƌ͕ĂŶĚďƵŝůĚŝŶŐƐ͘dƐƵďĂŬŝEĂŬĂƐŚŝŵĂďůŽǁĞƌƐƉƌŽǀŝĚĞĐŽŶƐŝƐƚĞŶƚĂŶĚĂĐĐƵƌĂƚĞǁŝŶĚŇŽǁƚŚĂƚƐƵƉƉŽƌƚƚŚĞĞǀŽůƵƟŽŶŽĨƚŚŝƐƚĞĐŚŶŽůŽŐǇ͘ZĞůŝĂďůĞǀĞŶƟůĂƟŽŶŝƐĐƌŝƟĐĂůŝŶŵĂŶƵĨĂĐƚƵƌŝŶŐĂƉƉůŝĐĂƟŽŶƐ
ƚŚĂƚŝŶĐůƵĚĞƐƚĞĞůĂŶĚĐŚĞŵŝĐĂů
ƉƌŽĐĞƐƐŝŶŐĂƐǁĞůůĂƐƐƵďǁĂǇƐĂŶĚƌŽĂĚƚƵŶŶĞůƐ͘dƐƵďĂŬŝEĂŬĂƐŚŝŵĂ͛ƐŚŝŐŚͲƋƵĂůŝƚǇďůŽǁĞƌƐĚĞůŝǀĞƌƚŚĞĚƵƌĂďŝůŝƚǇĂŶĚƐĂĨĞƚǇĚĞŵĂŶĚĞĚŝŶƚŚĞƐĞĞŶǀŝƌŽŶŵĞŶƚƐ͘KƵƌŵĞƟĐƵůŽƵƐĚĞƐŝŐŶĂŶĚĐŽŶƐŝƐƚĞŶƚƐƵƉƉŽƌƚĂůůŽǁĐƵƐƚŽŵĞƌƐƚŽŵĂǆŝŵŝǌĞƚŚĞŝƌĞƋƵŝƉŵĞŶƚ
ĨŽƌĞŶĚƵƌŝŶŐƉĞƌĨŽƌŵĂŶĐĞ͘DƵůƟͲƐƚĂŐĞŝŵƉĞůůĞƌŝƐ Ă ĐĞŶƚƌŝĨƵŐĂů ĨĂŶĐŽǀĞƌŝŶŐ Ă ǁŝĚĞƌĂŶŐĞ ŽĨ ďůŽǁĞƌĂƉƉůŝĐĂƟŽŶƐ͘

FAN FOR METROdŚĞǀĂŶĞƐŽĨƚŚĞƚƵƌďŽƚǇƉĞĨĂŶƐĨŽůůŽǁƚŚĞĚĞƐŝŐŶŽĨĂŶĂŝƌƉůĂŶĞǁŝŶŐƐ͘dŚŝƐĨĂŶŚĂƐďĞĞŶ ƉƌŽǀĞŶ ƚŽ ŚĂǀĞ ƚŚĞŚŝŐŚĞƐƚ ĞĸĐŝĞŶĐǇ ǁŝƚŚŵŝŶŝŵĂů ŶŽŝƐĞ ĂŵŽŶŐ ĂůůĐĞŶƚƌŝĨƵŐĂůďůŽǁĞƌƐ͘35

PRECISION BALLS
STEEL
BALLS

CERAMICBALLSPLASTICBALLSSTEEL BALLS

69%

OTHER
BALLS

ROLLERS

13%

LINEAR BUSINESSROLLERS
CERAMICBALLS

11%LINEAR& BLOWER

7%[ BY PRODUCT - FY 2021 ]TSUBAKINAKASHIMA

BUSINESSLINEARBLOWER

33% EUROPE
25% JAPAN
19% CHINA
19% US
4% ASIAOUR PRODUCTS • BUSINESS OVERVIEWPRECISION COMPONENTS BUSINESS[ BY REGION - FY 2021 ]37

TSUBAKINAKASHIMAPRODUCTS UNIVERSE

OUR PRODUCTSAPPLICATIONS39

CORPORATE VALUESAt Tsubaki Nakashima, we have closelyaligned our Management Statements,
Codes, Policies and Systems withŝŶƚĞƌŶĂƟŽŶĂůůǇ ƌĞĐŽŐŶŝǌĞĚ ƐƚĂŶĚĂƌĚƐ ƚŽ
help ensure that we serve the role thatsociety expects of us. Tsubaki Nakashima
also understands and respects theůĂǁƐ ĂŶĚ ƌĞŐƵůĂƟŽŶƐ ŝŶ ƚŚĞ ĐŽƵŶƚƌŝĞƐ
and regions in which it operates.

CORPORATESOCIALRESPONSIBILITY
INTERNATIONAL
STANDARDSCULTUREETHICS AND
VALUES

41

PROFITABLE AND
SUSTAINABLE GROWTH

WITH AN UNWAVERING COMMITMENTTO IMPROVEMENT, PRODUCTAND CREATING EXCELLENCEOUR VISIONCORPORATE VALUESCORPORATE• OURVALUESVISIONACHIEVE

SHAREHOLDER VALUE

WITH AN INCREASING DEDICATION TO

SUSTAINABILITYWITHIN ITS LEADERSHIP, OPERATIONS,EMPLOYEESAND INVESTMENTS.
CULTURE ETHICS AND
VALUES

43

TRUST OF OURSTAKEHOLDERSGROWING AND THRIVINGWITHIN OUR COMMUNITIESAND HELPING TO CREATEA MORE SUSTAINABLE

OUR MISSIONCORPORATE VALUES • OUR MISSIONBUILDING THE

WORLD

CULTURE ETHICS AND
VALUES

45

CULTURE ETHICS AND
VALUESOUR POLICYCORPORATE VALUES • OUR POLICYTSUBAKI NAKASHIMA WILL CONTINUE TO IMPROVE ITS OWN INTEGRATED CORPORATE
GOVERNANCE SYSTEM, ORGANIZATION, PROCESSES, PRODUCTS, AND SERVICES AIMINGTO CONTINUE TO GROW AS AN ENVIRONMENTALLY RESPONSIBLE AND ETHICALLY AWARE
BUSINESS. THE COMPANY THEREFORE REAFFIRMS ITS COMMITMENT TO TRANSPARENCYAND GOOD GOVERNANCE, PARTICULARLY IN MATTERS OF SUSTAINABLE AND PROFITABLEGROWTH, ATTENTION TO OUR STAKEHOLDERS, AND THE COMPANY’S VISION ZERO’SAPPROACH (ZERO ACCIDENTS, ZERO OCCUPATIONAL ILLNESSES, ZERO WASTES,ZERO INEQUALITIES, ZERO LACK OF KNOWLEDGE). TSUBAKI NAKASHIMA VISION IS TO
MAINTAIN AND IMPROVE ITS POSITION AS A LEADING MANUFACTURER OF HIGHQUALITY, HIGH-PRECISION COMPONENTS THROUGH SUSTAINABLE, CONTROLLED AND
PARTICIPATORY PROCESSES, WITH A HIGH FOCUS TO THE CUSTOMERS AND ALL
STAKEHOLDERS NEEDS AND TO GLOBALLY PREVENT ALL NEGATIVE IMPLICATIONS.
THE IDENTIFICATION OF THE EXPECTATIONS OF THE STAKEHOLDERS, THE ANALYSISOF THE REQUIREMENTS AND NEEDS, THE DEFINITION OF ATTAINABLE CHALLENGING
AND MEASURABLE OBJECTIVES, THE DEFINITION OF CLEAR TIMEFRAMES AND RESOURCES
MUST GUIDE THE COMPANY TOWARDS CONTINUOUS AND SUSTAINABLE IMPROVEMENT(PEOPLE, PLANET AND PROSPERITY), INTEGRATING THE SYSTEMS IN USE AND
ALIGNING THE INTEGRATED CORPORATE GOVERNANCE SYSTEM WITH INTERNATIONALLY
RECOGNIZED STANDARDS TO HELP ENSURE THAT TSUBAKI NAKASHIMA SERVESTHE ROLE THAT SOCIETY EXPECTS. IN PARTICULAR, THE COMPANY IS COMMITTEDTO PROVIDING SAFE AND HEALTHY WORKING CONDITIONS, RESPECTING THE
ENVIRONMENT, AND RESPONSIBLY USING THE AVAILABLE NATURAL RESOURCES, IN FULLCOMPLIANCE WITH THE STATUTORY, REGULATORY, ORGANIZATIONAL AND CUSTOMERREQUIREMENTS, ASSESSING RISKS TO THE PRODUCTS, SERVICES, ENVIRONMENT AND
TO ITS EMPLOYEES, SETTING TARGETS AND MEASURING THE PERFORMANCE, AND
ENCOURAGING THE ACTIVE PARTICIPATON OF EMPLOYEES AND THEIR REPRESENTATIVES.

47

tĞǁŝůůTRANSFORMŽƵƌŽŵƉĂŶǇŽŶĂCONTINUOUS ďĂƐŝƐƚŽŵĂŬĞƚŚĞBEST PRODUCTS ŝŶƚŚĞǁŽƌůĚ͕ŝŶĂSUSTAINABLE WAY.

SUSTAINABILITY
sŝƐŝŽŶĞƌŽtŝƚŚŽƵƌĐƌĞĂƟǀŝƚǇǁĞǁŝůůPROVIDE OUR CUSTOMERS WITH THE HIGHEST QCDS;ƋƵĂůŝƚǇ͕ĐŽƐƚ͕ĚĞůŝǀĞƌǇ͕ĂŶĚƐĞƌǀŝĐĞͿ͕ĚƌĂǁŝŶŐŝĚĞĂƐĨƌŽŵŽƵƌ^ƚĂŬĞŚŽůĚĞƌƐ͘WƌŽĮƚĂďůĞ
ĂŶĚƐƵƐƚĂŝŶĂďůĞ
ǀĂůƵĞDĂƌŬĞƚ
ŽƌŝĞŶƚĞĚGROWTHQCDSKƉĞƌĂƟŽŶĂů
ĞǆĐĞůůĞŶĐĞ

ŽŶƟŶƵŽƵƐŝŵƉƌŽǀĞŵĞŶƚ

'ůŽďĂůƌĞĂĐŚ͕>ŽĐĂůĚĞƉƚŚ

dEƵůƚƵƌĞ

TRANSFORMATIONONE TEAM

MonozukuriKƌŐĂŶŝǌĂƟŽŶĂůƌĞŵŽĚĞůŝŶŐsс΀2н,н΁ǆtĞǁŝůůĐƌĞĂƚĞĂƚĞĂŵǁŽƌŬͲŽƌŝĞŶƚĞĚĐƵůƚƵƌĞͲONE TEAM SPIRIT ͲĐŽŶǀŝŶĐĞĚƚŚĂƚƚŚĞVALUEŽĨŽƵƌƉĞŽƉůĞŝƐƚŚĞŝƐƚŚĞƐƵŵŽĨƚŚĞŝƌCOMPETENCES͕HUMILITY
AND ABILITYƚŽĂĐŚŝĞǀĞƌĞƐƵůƚƐ͕ǁŝƚŚƉŽƐŝƟǀĞATTITUDE.
tĞĂŝŵƚŽďĞĐŽŵĞĂTRULY GLOBAL COMPANY ǁŝƚŚĂŶŝŶƚĞƌŶĂƟŽŶĂůŵŝŶĚƐĞƚ͕ĚĞĞƉůǇTRANSFORMING ŽƵƌŽƌŐĂŶŝǌĂƟŽŶƚŽƐƚĂǇŽŶĞƐƚĞƉĂŚĞĂĚŽĨƚŚĞĐƵƌǀĞ͘

CORPORATE VALUES • MANAGEMENT PRINCIPLESŽŵƉůŝĂŶĐĞ

tĞĂŝŵƚŽďĞĂŽŵƉĂŶǇƚŚĂƚĐŽŶƟŶƵĞƐƚŽĂĐŚŝĞǀĞSUSTAINABLE AND PROFITABLE GROWTH.

MANAGEMENT
PRINCIPLES
49

Re
ali
za
tio

prod
uct
ivit
g
e
d
e
(
l
S
o
w
c
o
i
n
a
k
l
•
f
o
D
e
n
v
o
i
e
t
l
opme yCreant)ronment • Social • Profit)
i
v
n
E
(
e
f
i
l
lity ofauq(Environment)
d
f
n
a
o
y
t
t
socie
men
d
e
e
ocial)
z
S
v
i
n
•
o
o
r
t
n
carb
Imp
nme
e
o
r
d
i
(Env
of a
y
t
n
cie
tio
o
a
s
z
ted
ali
n
e
e
i
R
or
g
clin
y
c
re
a
f
no

Tsubaki Nakashima has set

5 MATERIAL
ITEMS
as a framework for itsƐƵƐƚĂŝŶĂďŝůŝƚǇĂĐƟǀŝƟĞƐCORPORATE VALUES • 5 MATERIAL ITEMSENVIRONMENTDEVELOPMENTPROFIT
SOCIAL

ImprovementofĂŶĚ ŝŶ ĂĚĚŝƟŽŶ ƚŽ ƚŚĂƚ͕ ŝƚ ŚĂƐ ƐĞƚ ƚŚĞ sales of ceramic balls of ourŐƌŽƵƉĂƐ^ƵƐƚĂŝŶĂďŝůŝƚǇWĞƌĨŽƌŵĂŶĐĞdĂƌŐĞƚƐ͕ǁŝƚŚƚŚĞĂŝŵƚŽĐŽŶƟŶƵĞƚŽ ĐŽŶƚƌŝďƵƚĞ ƚŽ ƚŚĞ ŐůŽďĂů ĞŶǀŝƌŽŶŵĞŶƚ ďǇ ĐŽŶƟŶƵŽƵƐůǇ ĞǀŽůǀŝŶŐworld-class products and manufacturing technologies. The Company
ŝƐ ĐŽŵŵŝƩĞĚ ƚŽ ŝŶĐƌĞĂƐŝŶŐ ŝƚƐ ĐŽŶƚƌŝďƵƟŽŶ ƚŽ ƚŚĞ ĞŶǀŝƌŽŶŵĞŶƚ ďǇĚĞǀĞůŽƉŝŶŐ ĐĞƌĂŵŝĐ ďĂůůƐ ƚŚĂƚ ŝŵƉƌŽǀĞ ĞŶĞƌŐǇ ĂŶĚ ĞŶǀŝƌŽŶŵĞŶƚĂů
ƉĞƌĨŽƌŵĂŶĐĞ͘ dƐƵďĂŬŝ EĂŬĂƐŚŝŵĂ͛Ɛ ĐĞƌĂŵŝĐ ďĂůůƐ ĂƌĞ ůŝŐŚƚǁĞŝŐŚƚ͕ƐƚƌŽŶŐ͕ ůŽŶŐͲůĂƐƟŶŐ͕ ŚŝŐŚůǇ ŝŶƐƵůĂƟŶŐ͕ ǁĞĂƌͲƌĞƐŝƐƚĂŶƚ͕ ŚĞĂƚͲƌĞƐŝƐƚĂŶƚ͕ĂŶĚ ĐŽƌƌŽƐŝŽŶͲƌĞƐŝƐƚĂŶƚ͕ ĐŽŶƚƌŝďƵƟŶŐ ƚŽ ĞŶĞƌŐǇ ĐŽŶƐĞƌǀĂƟŽŶ ŝŶǀĂƌŝŽƵƐ ƉƌŽĚƵĐƚƐ͕ ĂŶĚ ĂƌĞ ĞǆƉĞĐƚĞĚ ƚŽ ŐƌŽǁ ŝŶ ƚŚĞ ǁŝŶĚ ƉŽǁĞƌ
ŐĞŶĞƌĂƟŽŶ͕s͕ĂŶĚŵĞĚŝĐĂůĂƉƉůŝĐĂƟŽŶƐ͘

MANAGEMENT
PRINCIPLES
51

ESG

Products and Services
Business Operations alignedwith global social trends

EN
Productivity Innovation
VIR
and Competitiveness
ON
Strategic MarketingME
Effective use of energy and resourcesNT

Productivity Improvement - Motus 4.0

Climate change

68

CORPORATE VALUES • SDG TICK NOTICESCORPORATE SOCIALREPONSABILITY THEMES

Contributing to the environment(procurement, products)
Respect of human rights
Diversity
Training and development,
employees engagement
Supply Chain

SO
CI
AL

Product Quality and Development
ComplianceManagement Systems

GOV
ERN
ANCE

SDG TICK NOTICES

53

OUR
QUALITYMISSIONIS

TO SUPPORTTHE ORGANIZATION TOQUALITYQ
QUALITYTSUBAKI NAKASHIMA QUALITY MANAGEMENT SYSTEM AND QUALITY ORGANIZATIONS ARE DESIGNEDTO ACHIEVE CUSTOMER SATISFACTION, ONE OF THE CORE COMMITMENTS INCLUDED INOUR CORPORATE MANAGERIAL STATEMENTS.

ESTABLISH
ANDIMPROVE
EFFECTIVE QUALITY
FRAMEWORKS ANDTECHNICALKNOWLEDGE

WITH THE GOAL OF
FACILITATINGTHE OVERALL SUCCESSOF OUR INTERNALAND EXTERNALCLIENTS55

QUALITYPOLICYS
M
A
R
T

SPECIFICĞƐƉĞĐŝĮĐŝŶǁŚĂƚĞǀĞƌǁĞĐŽŶƚƌŽů͕ĂŝŵŝŶŐƚŽŵĂŝŶƚĂŝŶĂŶĚŝŵƉƌŽǀĞŽƵƌůĞĂĚŝŶŐƉŽƐŝƟŽŶŝŶƚŚĞŵĂŶƵĨĂĐƚƵƌŝŶŐŽĨŚŝŐŚƋƵĂůŝƚǇĂŶĚŚŝŐŚƉƌĞĐŝƐŝŽŶĐŽŵƉŽŶĞŶƚƐ͘QUALITYQ/Ŷ ĂĐĐŽƌĚĂŶĐĞ ǁŝƚŚ ŽƵƌ YƵĂůŝƚǇ WŽůŝĐǇ͕ ǁĞ ŚĂǀĞ ĞƐƚĂďůŝƐŚĞĚ Ă ƐǇƐƚĞŵ ƚŚĂƚ ĞŶĂďůĞƐ ƵƐ ƚŽ ĐŽŶƐŝƐƚĞŶƚůǇ
manufacture high-quality products that meet Customers’ expectationsĂƚĂůůŽƵƌƐŝƚĞƐ͘/ŶϮϬϭϵ͕ǁĞƌĞŶĞǁĞĚ ŽƵƌ YƵĂůŝƚǇ DĂŶĂŐĞŵĞŶƚ ^ǇƐƚĞŵ ĂŶĚ ĞƐƚĂďůŝƐŚĞĚ Ă global QMS͕ ǁŽƌůĚǁŝĚĞ͘ dŚŝƐ ĂůůŽǁƐ ƵƐ ƚŽ ƵŶŝĨǇ
ƚŚĞƋƵĂůŝƚǇŽĨƉƌŽĚƵĐƚƐŵĂŶƵĨĂĐƚƵƌĞĚĂƚĂůůŽƵƌƐŝƚĞƐ͘ƐŽĨƚŚĞĞŶĚŽĨDĂƌĐŚϮϬϮϬ͕ 19 of our 22 global sites
had obtained ISO ϵϬϬϭ ĐĞƌƟĮĐĂƟŽŶ ĂŶĚ ϭϳ ƚŚĞ /d& ϭϲϵϰϵ ĐĞƌƟĮĐĂƟŽŶ͘ Ɛ <W/Ɛ ĨŽƌ ŵĂŝŶƚĂŝŶŝŶŐ ĂŶĚŝŵƉƌŽǀŝŶŐ ƋƵĂůŝƚǇ ŐůŽďĂůůǇ͕ ǁĞ ŚĂǀĞ ƐĞƚ ƚĂƌŐĞƚƐĨŽƌ ƚŚĞ ŶƵŵďĞƌ ŽĨ ĐŽŵƉůĂŝŶƚƐ͕ ŝŶƚĞƌŶĂů ĚĞĨĞĐƚ ƌĂƚĞ͕ ĂŶĚ
EY ;ĐŽƐƚ ƌĞůĂƚĞĚ ƚŽ ƋƵĂůŝƚǇ͕ ŝŶĐůƵĚŝŶŐ ĐŽŵƉůĂŝŶƚ ŚĂŶĚůŝŶŐͿ͕ ǁŚŝĐŚ ĂƌĞ ůŝŶŬĞĚ ƚŽ ŝŵƉƌŽǀĞŵĞŶƚ ĂĐƟǀŝƟĞƐ͘/ŶƚĞƌŶĂů ĂƵĚŝƚƐ ĂŶĚ ĂƵĚŝƚƐ ďĂƐĞĚ ŽŶ ŝŶƚĞƌŶĂů ĂƵĚŝƚ ŐƵŝĚĞůŝŶĞƐ ĂƌĞ ĂůƐŽ ĐŽŶĚƵĐƚĞĚ Ăƚ ĞĂĐŚ ƐŝƚĞ ĂƐƋƵĂůŝƚǇͲƌĞůĂƚĞĚ ĂƵĚŝƚƐ͘ /Ŷ ďŽƚŚ ĂƵĚŝƚƐ͕ ǁĞ ŝŵƉƌŽǀĞ ƚŚĞ ĂĐĐƵƌĂĐǇ ŽĨ ƚŚĞ ĂƵĚŝƚ ďǇ ĐŚĞĐŬŝŶŐ ƋƵĂůŝƚǇ ĨƌŽŵ ƚŚĞƚŚƌĞĞ ĂƐƉĞĐƚƐ ŽĨ ƋƵĂůŝƚǇ͕ ƉƌŽĚƵĐƚƐ͕ ĂŶĚ ƐǇƐƚĞŵƐ͘ Ɛ ŽĨ ƚŚĞ ĞŶĚ ŽĨ DĂƌĐŚ ϮϬϮϬ͕ ǁĞ ŚĂĚ ϭϬϴ ĞŵƉůŽǇĞĞƐ
ǁŝƚŚĂƵĚŝƚŽƌƋƵĂůŝĮĐĂƟŽŶƐŐůŽďĂůůǇĂŶĚϴŝŶ:ĂƉĂŶ͘

MEASURABLE KƵƌƉƌŽĐĞƐƐĂŶĚƉĞƌĨŽƌŵĂŶĐĞŵƵƐƚďĞŵĞĂƐƵƌĞĚ͕ĂƐƚŚĞĐƵƐƚŽŵĞƌƐ͛ƐƉĞĐŝĮĐĂƟŽŶĂŶĚƉĞƌĨŽƌŵĂŶĐĞĞǀĂůƵĂƟŽŶƐĂƌĞŵĞĂƐƵƌĂďůĞ͘
ACHIEVABLEĂŶĚĐůĞĂƌůǇĚĞĮŶĞĚŐŽĂůƐĂƌĞƚŚĞŬĞǇĨŽƌĚƌŝǀŝŶŐĐŽŶƟŶƵŽƵƐŝŵƉƌŽǀĞŵĞŶƚŝŶƚŚĞĐŽŵƉĂŶǇ͛ƐŽǀĞƌĂůůƋƵĂůŝƚǇĂŶĚƐĞƌǀŝĐĞƉĞƌĨŽƌŵĂŶĐĞ͘
RELEVANT &ŽĐƵƐĂŶĚĚƌŝǀĞĂĐƟŽŶƐŽŶƌĞůĞǀĂŶƚƌŽŽƚĐĂƵƐĞƐƚŽĞǆĐĞĞĚƚŽŽƵƌĐƵƐƚŽŵĞƌƐ͛ĂŶĚƐƚĂŬĞŚŽůĚĞƌƐ͛ĞǆƉĞĐƚĂƟŽŶƐ͘

TIME ƐƚĂďůŝƐŚĂŶĚĚĞůŝǀĞƌŽŶĐůĞĂƌŝŵƉƌŽǀĞŵĞŶƚĂŶĚďƵƐŝŶĞƐƐĚĞǀĞůŽƉŵĞŶƚƉƌŽũĞĐƚƟŵŝŶŐĞǆƉĞĐƚĂƟŽŶƐƚŽĐƌĞĂƚĞƚƌƵƐƚĂŶĚĞŶŚĂŶĐĞŽƵƌƉĂƌƚŶĞƌƐŚŝƉǁŝƚŚŽƵƌĐƵƐƚŽŵĞƌƐĂŶĚƐƚĂŬĞŚŽůĚĞƌƐ͘57

QUALITY PERFORMANCEThe Global Quality scorecard has been developed
to make the data available and easily monitorable

Supplier Quality Manual to help to consolidatea stronger Supplier base

The Internal Global Audit Team competencies
have been strengthened by specific training,
working on the development of tools able toŝŶĐƌĞĂƐĞ ƚŚĞ ĞīĞĐƟǀĞŶĞƐƐ ĂŶĚ ƚĞĐŚŶŽůŽŐŝĐĂůcontent of the process

CONTINUOUS
IMPROVEMENTQUALITY

Our Quality
Management
System uses theRisk-BasedThinking
approach:Q/ŶƚĞƌŵƐŽĨƉƌŽĚƵĐƚƐ͕ƐƵƉƉŽƌƚĐŽŶƟŶƵĞĚto the local Quality department for Claims
management and custom type-approvalĂƵĚŝƚƐ͕ĐŽŶƟŶƵŝŶŐƚŚĞĚĞǀĞůŽƉŵĞŶƚof the APQP methodology (Advance
Product Quality Planning).
Investments werealso made in

ATP
COMMON
QMS

Digital Quality
development.

ZERO DEFECTAPPROACH

59

Identification of Critical Processes. In the precision ball manufacturing process,balls, the main product of our group, process design is more important than product design in quality control.
Our group manufactures many of the machines used in manufacturing in-house, and some of theŝŶƐƉĞĐƟŽŶ ĞƋƵŝƉŵĞŶƚ ŝƐ ĂůƐŽ ŵĂŶƵĨĂĐƚƵƌĞĚ ŝŶͲŚŽƵƐĞ ƚŽ ŵĂƚĐŚ ƚŚĞ ŵĂŶƵĨĂĐƚƵƌŝŶŐ ŵĂĐŚŝŶĞƐ ĂŶĚ ƉƌŽĚƵĐƚ
ƐŚĂƉĞƐ͘ tĞ ƵƐĞ ĐŽŵŵĞƌĐŝĂůůǇ ĂǀĂŝůĂďůĞ ĂĐŽƵƐƟĐ ŵĞĂƐƵƌŝŶŐ ŝŶƐƚƌƵŵĞŶƚƐ ĂŶĚ ĚĞǀŝĐĞƐ ĨŽƌ ŵĞĂƐƵƌŝŶŐ ůŽĂĚƐ
and dimensions in order to meet external standards, but we also manufacture parts that cannot be handledďǇ ĐŽŵŵĞƌĐŝĂůůǇ ĂǀĂŝůĂďůĞ ƉƌŽĚƵĐƚƐ͕ ƐƵĐŚ ĂƐ ƚŚĞ ŝŶƐƉĞĐƟŽŶ ŽĨ ƚŚĞ ĂƉƉĞĂƌĂŶĐĞ ŽĨ ƐƉŚĞƌĞƐ͕ ĂŶĚ ĐƵƐƚŽŵŝǌĞ
ƚŚĞŵ ĨŽƌ ŵŽƌĞ ĞĸĐŝĞŶƚ ŵĞĂƐƵƌĞŵĞŶƚ͘ tĞ ĂůƐŽ ƉĞƌĨŽƌŵ appropriate maintenance and checks oninspection equipment to achieve higher quality control.

ǁĞŚĂǀĞŝĚĞŶƟĮĞĚƉƌŽĐĞƐƐĞƐƚŚĂƚĂƌĞƉĂƌƟĐƵůĂƌůǇƉƌŽŶĞƚŽƋƵĂůŝƚǇƉƌŽďůĞŵƐĂƐĐƌŝƟĐĂůprocesses, and are working to strengthen quality monitoring and process improvement.
/ŶƚŚĞĮŶĂůĐůĞĂŶŝŶŐĂŶĚƉĂĐŬĂŐŝŶŐƉƌŽĐĞƐƐĞƐ͕ǁĞĂƌĞƐƚƌĞŶŐƚŚĞŶŝŶŐƚŚĞŵĂŶĂŐĞŵĞŶƚŽĨ ĞĂĐŚ ƚƌĞĂƚŵĞŶƚ ƐŽůƵƟŽŶ ĂŶĚ ƉƌĞǀĞŶƟŶŐ ŝŶƐƵĸĐŝĞŶƚ ĂƉƉůŝĐĂƟŽŶ ŽĨ  ĂŶƟͲĐŽƌƌŽƐŝŽŶoil with an automatic alarm system, installing automatic abnormality monitoring
equipment ŝŶ ƚŚĞ ƉƌĞƐƐŝŶŐ ƉƌŽĐĞƐƐ͕ ĂŶĚ ŝŶƐƉĞĐƟŶŐ ƚŚĞ ŵĂŶĂŐĞŵĞŶƚ ƐƚĂƚƵƐ ŽĨ ƚŚĞŚĞĂƚ ƚƌĞĂƚŵĞŶƚ ƉƌŽĐĞƐƐ ďĂƐĞĚ ŽŶ Y/ϵ͘ tŝƚŚ ƌĞŐĂƌĚ ƚŽ ƌĂǁ ŵĂƚĞƌŝĂůƐ͕ ŝŶ ĂĚĚŝƟŽŶ ƚŽ
encouraging raw material manufacturers to conduct their own audits and strengthen
their audits, we audit raw material manufacturers and check the quality of materials
when we receive them.

Tracking system

Our group has introduced a tracking
system to check all manufacturing
processes. This prevents mistakes suchas mixing the wrong raw materials orƐŬŝƉƉŝŶŐƉƌŽĐĞƐƐĞƐ͘/ŶĂĚĚŝƟŽŶ͕ƚŚĞƐǇƐƚĞŵ
ĂƵƚŽŵĂƟĐĂůůǇ ŽƵƚƉƵƚƐ ĚĂƚĂ ŽŶ ǁŚŝĐŚprocess the product has gone throughĂŶĚ ǁŚŝĐŚ ŝŶƐƉĞĐƟŽŶ ŝƚ ŚĂƐ ƵŶĚĞƌŐŽŶĞ͕making it possible to go back and checkthe details of the process when there is anŝŶƋƵŝƌǇĨƌŽŵƚŚĞĐƵƐƚŽŵĞƌĂŌĞƌƐŚŝƉŵĞŶƚ͘In order to reduce human error
to zero͕ ǁĞ ĂƌĞ ĂŝŵŝŶŐ ƚŽ ĂƵƚŽŵĂƟĐĂůůǇ
ĐĂƉƚƵƌĞ Ăůů ŝŶƐƉĞĐƟŽŶ ĚĂƚĂ͕ ĂŶĚ ƉůĂŶ ƚŽĂĐŚŝĞǀĞ ĂƵƚŽŵĂƟĐ ĚĞƚĞƌŵŝŶĂƟŽŶ ŽĨ ĂůůŝŶƐƉĞĐƟŽŶĚĂƚĂďǇϮϬϮϮ͘CUSTOMER COMPLAINTSCOST OF NON QUALITYQUALITY WASTESDEFECTIVE PARTSPER BILLION

-34%
-8%
-4%
-19%

QUALITY
CONTROL
INITIATIVESQUALITYQ

Development of in-house manufacturing equipment. Due to the simple spherical shape of precision

Process for responding to quality complaints
In the event of a quality problem, including a quality claim, we have our own riskŵĂŶĂŐĞŵĞŶƚ ƐǇƐƚĞŵ͕ ĂŶĚ ĞĂĐŚ ƐŝƚĞ ĮƌƐƚ ĐŽŶĚƵĐƚƐ Ă ƌŝƐŬ ĂƐƐĞƐƐŵĞŶƚ͘ Ɛ Ă ƌĞƐƵůƚŽĨ ƚŚĞ ƌŝƐŬ ĂƐƐĞƐƐŵĞŶƚ͕ ŝĨ Ă ĐĞƌƚĂŝŶ ƐƚĂŶĚĂƌĚ ŝƐ ĞǆĐĞĞĚĞĚ͕ ƚŚĞ ŵĂƩĞƌ ŝƐ ƌĞƉŽƌƚĞĚto the Risk Management Committee ĨŽƌ ĞĂƌůǇ ƌĞƐŽůƵƟŽŶ ŽĨ ƚŚĞ ƋƵĂůŝƚǇ ƉƌŽďůĞŵ͘This process is shared globally.

MAIN QUALITY INDICATORS
2021 VARIATIONPLANTS CERTIFIED
ACCORDINGTO THE IATF
STANDARDS

+25%
61

HIGH
PERFORMANCELOW ALLOYSTEELFAILUREANALYSISSTEEL
BENCHMARKCERAMIC
MATERIALS

LOW NOISEPRODUCTGLOBALQUALITYANDQUALITY

STANDARDIZATIONCENTRAL LAB

ORGANIZATIONMANUFACTURING
PROCESSANALYSIS
AND TESTINGSEFFICIENCYAND EFFICACYMEDIUM TERM PLAN
PROJECTS

324
100 %
9.872

Quantity
per year
Plan / Act
Hours

2021
Main
Laboratory
Indicators[ Japan + Italy units ]
63

2023

MEDIUMTERMPLAN

MID-TERM STRATEGY

2021

65

TN

‘S
VALUE

Accumulation of

PRODUCTION
KNOW-HOW

by In-house Equipment,

SYNERGY GENERATION
byGlobal One
Management TeamHIGHEST QUALITY
and Widest
PRODUCT LINEUP

2021

2023

MEDIUMTERMPLANOUTSTANDING POSITIONSTABLE AND STRONG
CASH FLOW
GENERATIONCREATION FRAMEWORK

MID-TERM STRATEGYQUALITY
COST
DELIVERYSERVICE

Strongest Global
Footprint for

LOCAL
PROCUREMENT
and LOCAL SALESIN A NICHE MARKET
ROBUSTSHAREHOLDERPOLICYSTABLEPERFORMANCE
with Strong
CUSTOMERRELATIONSHIP

67

MID-TERM STRATEGY

2021

2023

MID STRATEGYTERMPOLICY

Expansion of

EXPANSION

CERAMIC
BUSINESS

and global
development ofMore focus on

EXPANSIONof strengthening in

MEDICAL DEVICE
BUSINESSELECTRICAL
VEHICLESASIAN MARKETS

and WIND ENERGYGLOBALSUSTAINABILITYSYSTEM

VISION ZEROAPPROACH

ENVIRONMENT SOCIAL& GOVERNANCE STRATEGYSUSTAINABILITY
PROJECTS

in Monozukuri, through

RESPONSIBLE USE
OF ENERGY,SLUDGE RECYCLING,
IMPROVEMENT
OF MATERIAL YIELD,
and ERGONOMICS
69

GLOBALSUSTAINABILITYSYSTEM(based on ISO 14001,
ISO 45001,
ISO 50001)

MONOZUKURIPROJECTS
Energy Management
and Responsible use of resources
Sludge recycling
Improvement of material yield
Ergonomics

TN
ACADEMYTRAINING
PLANS

ONE TEAM
MANAGEMENTSYSTEMEMPLOYEES’SATISFACTIONENVIRONMENTAL SOCIALAPPROACH

ZEROACCIDENTS
ZEROOCCUPATIONALILLNESSESZEROWASTESZEROINEQUALITIESZEROLACKOFKNOWLEDGE
CORPORATEGOVERNANCE
Further strengthening of governance
Promotion of compliance
Strengthen the Risk Management
Committee
Strengthen the operationof the certified Whistleblowing
Compliance Management System(WCMS)

GOVERNANCE

MID-TERM STRATEGYVISIONZERO

2021

2023

MID STRATEGY
TERM

71

GrowingNEW
plants

MID-TERM STRATEGY

Konjic, Bosnia and Herzegovina

2021

2023

MEDIUMTERMPLAN

Silvassa, India

73

R&D

Promoting
Inclusion & Diversity

BEST
IN CLASSBALL
MANUFACTURERTECHNOLOGYINNOVATIONMONOZUKURIINNOVATION

Talent and knowledge
acquisition

MID-TERM STRATEGYHR

Human Resource Training& Development

Strengthen R&D Systems

EQUITYNet D/E
Ratio Improvement

STEEL BALLSHigh performance balls
Countermeasure of Scratch
Innovation of Sphericalconfiguration at press stage

Image Inspector (Ceramic/Steel)Automatic Transfer
Auto Grinder
Automatic Packaging

IMPROVE STEEL BALL PROTIFABILITY
US and China

CERAMIC BALLSNew Ceramicmaterials/sourcing
Shorten grinding time

PROFIT MARGIN
DEVELOPMENT

INCREASE
CASH GENERATIONCAPABILITY

REMODELING
Roller businessLinear business75

MONOZUKURI
Making of things͗ŝŶ:ĂƉĂŶĞƐĞ͕DŽŶŽǌƵŬƵƌŝŝƐĂ ĐŽŵƉŽƵŶĚ ǁŽƌĚ ĐŽŵƉƌŝƐŝŶŐ mono ǁŚŝĐŚ
means thing and zukuriǁŚŝĐŚŵĞĂŶƐĐƌĞĂƟŽŶ.
The concept embraces more than the literalŵĞĂŶŝŶŐ͘ /ƚ ŽīĞƌƐ ƚŚĞ ŝĚĞĂ ŽĨ ƉŽƐƐĞƐƐŝŶŐ ƚŚĞ
spirit to produce excellent products and theĂďŝůŝƚǇ ƚŽ ĐŽŶƐƚĂŶƚůǇ ŝŵƉƌŽǀĞ Ă ƉƌŽĚƵĐƟŽŶ
system and process. The meaning is aƐǇŶƚŚĞƐŝƐŽĨƚĞĐŚŶŽůŽŐŝĐĂůĂďŝůŝƟĞƐ͕ŬŶŽǁͲŚŽǁĂŶĚ Ă ƐŝŶĐĞƌĞ ĂƫƚƵĚĞ ƚŽǁĂƌĚƐ ƉƌŽĚƵĐƟŽŶ
ǁŝƚŚ ƉƌŝĚĞ͕ ƐŬŝůů ĂŶĚ ĚĞĚŝĐĂƟŽŶ ĂŶĚ ƚŚĞƉƵƌƐƵŝƚ ŽĨ ŝŶŶŽǀĂƟŽŶ ĂŶĚ ƉĞƌĨĞĐƟŽŶ͘MONOZUKURI

is the essence of Monozukuri, as the Art andScience of Manufacturing. It is an approach to
manufacturing based on the Lean Principles in the
management of the factories, Lean Manufacturing,^D ƐǇƐƚĞŵƐ͕ dŽƚĂů WƌŽĚƵĐƟǀĞ DĂŝŶƚĞŶĂŶĐĞ ĂŶĚŽŶƟŶƵŽƵƐ /ŵƉƌŽǀĞŵĞŶƚ͕ ǁŝƚŚ ƚŚĞ Ăŝŵ ƚŽƐƚĂŶĚĂƌĚŝǌĞ ŽƵƌ ŽƉĞƌĂƟŽŶƐ ĂƌŽƵŶĚ ƚŚĞ ǁŽƌůĚ͕
control the use of the resources (Materials,
Machines, Men), guaranteeing the best quality,ďĞƐƚƐĞƌǀŝĐĞ͕ďĞƐƚĚĞůŝǀĞƌǇĂŶĚĐŽƐƚĐŽŶƚƌŽů͘ŶĚŝƚŝƐĂůƐŽWĞŽƉůĞŵĂŶĂŐĞŵĞŶƚ͕ŐŽŽĚǁŽƌŬĞŶǀŝƌŽŶŵĞŶƚ͕ĂŶĚ ĂƫƚƵĚĞ DŽƚƵƐ ŝƐ Ă >ĂƟŶ ǁŽƌĚ ǁŚŝĐŚ ŵĞĂŶƐ
ŵŽǀĞŵĞŶƚ͕ŝŶƚŚĞŵĞĂŶŝŶŐŽĨƚƌĂŶƐŝƟŽŶĨƌŽŵŽŶĞƉŽŝŶƚƚŽĂŶŽƚŚĞƌ͕ƚƌĂŶƐĨŽƌŵĂƟŽŶ͕ĨƵƚƵƌĞŽƌŝĞŶƚĂƟŽŶ͘MONOZUKURI approach and the artof the OBSERVATION, together withthe #motus4.0 rules, will generatea manufacturing DNA, resilient
for any challenges in the futureŵĂƌŬĞƚƐ͕ ŐƵĂƌĂŶƚĞĞ ƚŚĞ ĐŽŶƟŶƵŽƵƐ
growth of our Company.

77

Sustainability System)

ACCOUNTING ACCURACYCONFIDENTIAL AND RELEVANT
INFORMATIONPROTECTION OF PERSONAL DATAPERSONNEL POLICIESAND LABOUR STANDARDS(i.e. equal opportunities, inclusionand diversity, freedom of association,
child labor)

SOCIAL POLICIES(i.e., Goal and Gainsharing programs,
Awards)RELATIONS WITH SUPPLIERS AND
INTERLOCUTORS OF THE COMPANYRELATIONS WITH THE AUTHORITIESAND COMMUNITIESCORPORATEGOVERNANCE

Tsubaki Nakashima has adopted

Manualaof Compliance,
Code of Business Ethics
and related Policies
addressed to all those who haveĞŵƉůŽǇŵĞŶƚ͕ĐŽůůĂďŽƌĂƟŽŶ͕ĐŽŶƐƵůƚĂŶĐǇ͕ŽƌŽƚŚĞƌƌĞůĂƟŽŶƐŚŝƉƐ
with the Company. The Manualof Compliance, Code of Business
Ethics and related policies dictates
the rules of correctness and transparencyƚŚĂƚĚŝƐƟŶŐƵŝƐŚƚŚĞĐŽŵƉĂŶǇ͛Ɛ
work and is based on a seriesof principles with values, which
are then declined within the code.

CORPORATE GOVERNANCE

HEALTH, SAFETY AT WORK,ENVIRONMENTAL PROTECTION,RESPONSIBLE USE OF NATURALRESOURCES (through the GlobaldŽĐŽŶĚƵĐƚďƵƐŝŶĞƐƐĂŶĚŐƌŽǁŽŶĂŐůŽďĂůƐĐĂůĞ͕ƚŚĞ'ƌŽƵƉŝƐǁŽƌŬŝŶŐƚŽƐƚƌĞŶŐƚŚĞŶŝƚƐŚŝŐŚůǇƚƌĂŶƐƉĂƌĞŶƚĂŶĚŽďũĞĐƟǀĞIntegrated Corporate
Governance System.
/ŶĂĚĚŝƟŽŶ͕ǁĞŚĂǀĞĞƐƚĂďůŝƐŚĞĚa System with a sense of unityďǇƌĞĂůŝǌŝŶŐĂŐƌŽƵƉĐŽŵƉĂŶǇŵĂŶĂŐĞŵĞŶƚĨƵŶĐƟŽŶǁŝƚŚĞĸĐŝĞŶĐǇĂŶĚĞǆƉĞƌƟƐĞ͘

ORGANIZATIONAL MODEL
AND SUPERVISORY BODIESREPORTING IN CASE OF VIOLATIONS
OF THE PROVISIONS OF THE CODE
TRANSPARENCY ANDCOMPLETENESS OF INFORMATION

79COMPLIANCE PROMOTION SYSTEM

The Board of Directors͕ĐŽŶƐŝƐƟŶŐŽĨϳŝƌĞĐƚŽƌƐ;ŝŶĐůƵĚŝŶŐĨŽƵƌŽƵƚƐŝĚĞŝƌĞĐƚŽƌƐͿ͕ŵĂŬĞƐĚĞĐŝƐŝŽŶƐŽŶďĂƐŝĐŵĂŶĂŐĞŵĞŶƚƉŽůŝĐŝĞƐĂŶĚƐƵƉĞƌǀŝƐĞƐƚŚĞĞǆĞĐƵƟŽŶŽĨďƵƐŝŶĞƐƐďǇƚŚĞǆĞĐƵƟǀĞKĸĐĞƌƐ͘ĂĐŚŽĨƚŚĞŽƵƚƐŝĚĞŝƌĞĐƚŽƌƐŚĂƐŚŝƐŽƌŚĞƌŽǁŶĂƌĞĂŽĨĞǆƉĞƌƟƐĞĂŶĚďĂƐĞĚŽŶƚŚĞŝƌĞǆƚĞŶƐŝǀĞĞǆƉĞƌŝĞŶĐĞĂŶĚǁŝĚĞƌĂŶŐĞŽĨŬŶŽǁůĞĚŐĞ͕ƚŚĞǇƉƌŽǀŝĚĞĂĚǀŝĐĞĂŶĚĞǆĐŚĂŶŐĞŽƉŝŶŝŽŶƐŽŶŵĂŶĂŐĞŵĞŶƚ͕ƚŚĞƌĞďǇĨƵůĮůůŝŶŐƚŚĞƐƵƉĞƌǀŝƐŽƌǇĨƵŶĐƟŽŶ͘

CORPORATE GOVERNANCE

Our Corporate Governance System ĐŽŶƐŝƐƚƐŽĨƚŚĞŽĂƌĚŽĨŝƌĞĐƚŽƌƐ͕EŽŵŝŶĂƟŽŶŽŵŵŝƩĞĞ͕ŽŵƉĞŶƐĂƟŽŶ
ŽŵŵŝƩĞĞ͕ĂŶĚƵĚŝƚŽŵŵŝƩĞĞĂƐƐƵƉĞƌǀŝƐŽƌǇďŽĚŝĞƐ͖DĂŶĂŐĞŵĞŶƚŽŵŵŝƩĞĞ͕^ƵƐƚĂŝŶĂďŝůŝƚǇŽŵŵŝƩĞĞĂŶĚZŝƐŬDĂŶĂŐĞŵĞŶƚŽŵŵŝƩĞĞĂƐďƵƐŝŶĞƐƐĞǆĞĐƵƟŽŶďŽĚŝĞƐ͘tĞŚĂǀĞĂĚŽƉƚĞĚƚŚĞŽƌŐĂŶŝǌĂƟŽŶĂůĚĞƐŝŐŶŽĨĂĐŽŵƉĂŶǇǁŝƚŚĂŶŽŵŝŶĂƟŶŐĐŽŵŵŝƩĞĞ͕ĞƚĐ͕͘ďĞĐĂƵƐĞǁĞďĞůŝĞǀĞƚŚĂƚƚŚĞƐĞƉĂƌĂƟŽŶŽĨƐƵƉĞƌǀŝƐŝŽŶĂŶĚĞǆĞĐƵƟŽŶŝƐĂŵĞĂŶƐŽĨĞŶŚĂŶĐŝŶŐĐŽƌƉŽƌĂƚĞǀĂůƵĞďǇƐƚƌĞŶŐƚŚĞŶŝŶŐƚŚĞƐƵƉĞƌǀŝƐŽƌǇĨƵŶĐƟŽŶĂŶĚĞŶƐƵƌŝŶŐƉƌŽŵƉƚŵĂŶĂŐĞŵĞŶƚ͘

The Nomination CommitteeĐŽŶƐŝƐƚƐŽĨƚǁŽŽƵƚƐŝĚĞŝƌĞĐƚŽƌƐ;ŝŶĐůƵĚŝŶŐƚŚĞŚĂŝƌŵĂŶͿĂŶĚŽŶĞŝŶƐŝĚĞŝƌĞĐƚŽƌ͕ĂŶĚŵŽƐƚŽĨƚŚĞĐŽŵŵŝƩĞĞŵĞŵďĞƌƐĂƌĞŽƵƚƐŝĚĞŝƌĞĐƚŽƌƐƚŽĞŶƐƵƌĞƚŚĞĂƉƉƌŽƉƌŝĂƚĞŶĞƐƐŽĨŶŽŵŝŶĂƟŽŶƐ͘dŚĞEŽŵŝŶĂƟŽŶŽŵŵŝƩĞĞĚĞĐŝĚĞƐƚŚĞĚĞƚĂŝůƐŽĨƉƌŽƉŽƐĂůƐĨŽƌƚŚĞĞůĞĐƟŽŶĂŶĚĚŝƐŵŝƐƐĂůŽĨŝƌĞĐƚŽƌƐ͘The Compensation CommitteeĐŽŶƐŝƐƚƐŽĨƚǁŽŽƵƚƐŝĚĞŝƌĞĐƚŽƌƐ;ŝŶĐůƵĚŝŶŐƚŚĞŚĂŝƌŵĂŶͿĂŶĚŽŶĞŝŶƐŝĚĞŝƌĞĐƚŽƌĂŶĚŚĂƐĂƐǇƐƚĞŵƚŽĞŶƐƵƌĞƚŚĞĂƉƉƌŽƉƌŝĂƚĞŶĞƐƐŽĨƌĞŵƵŶĞƌĂƟŽŶ͖ŝƚĚĞƚĞƌŵŝŶĞƐƚŚĞďĂƐŝĐƉŽůŝĐǇŽŶƌĞŵƵŶĞƌĂƟŽŶ͕ĞƚĐ͘ĨŽƌŝƌĞĐƚŽƌƐĂŶĚǆĞĐƵƟǀĞKĸĐĞƌƐĂŶĚƚŚĞĂŵŽƵŶƚŽĨƌĞŵƵŶĞƌĂƟŽŶĨŽƌĞǀĞƌǇŽŶĞ͘The Audit CommitteeĐŽŶƐŝƐƚƐŽĨƚŚƌĞĞŽƵƚƐŝĚĞŝƌĞĐƚŽƌƐ͘dŚĞƵĚŝƚŽŵŵŝƩĞĞŝƐĐŽŵƉŽƐĞĚŽĨƚŚƌĞĞŽƵƚƐŝĚĞŝƌĞĐƚŽƌƐ͕ĞĂĐŚŽĨǁŚŽŵŚĂƐĂĚŝīĞƌĞŶƚĂƌĞĂŽĨĞǆƉĞƌƟƐĞ͕ĂŶĚŝƐĂƉƉŽŝŶƚĞĚďĂƐĞĚŽŶƚŚĞďĞůŝĞĨƚŚĂƚĂƵĚŝƚƐĨƌŽŵǀĂƌŝŽƵƐƉĞƌƐƉĞĐƟǀĞƐĂƌĞƉŽƐƐŝďůĞ͘dŚĞƵĚŝƚŽŵŵŝƩĞĞĂƵĚŝƚƐĂŶĚƐƵƉĞƌǀŝƐĞƐƚŚĞĞǆĞĐƵƟŽŶŽĨďƵƐŝŶĞƐƐďǇƚŚĞŝƌĞĐƚŽƌƐĂŶĚǆĞĐƵƟǀĞKĸĐĞƌƐĂŶĚĚĞĐŝĚĞƐŽŶƚŚĞĐŽŶƚĞŶƚŽĨƉƌŽƉŽƐĂůƐĨŽƌƚŚĞĂƉƉŽŝŶƚŵĞŶƚĂŶĚĚŝƐŵŝƐƐĂůŽĨ ƚŚĞ ĂĐĐŽƵŶƟŶŐ ƵĚŝƚŽƌ ƚŽ ďĞ ƐƵďŵŝƩĞĚ ƚŽ ƚŚĞ 'ĞŶĞƌĂů DĞĞƟŶŐ ŽĨ ^ŚĂƌĞŚŽůĚĞƌƐ͘ /Ŷ ĂĚĚŝƟŽŶ͕ ǁĞ ŚĂǀĞĞƐƚĂďůŝƐŚĞĚĂƐǇƐƚĞŵŝŶǁŚŝĐŚĂĨƵůůͲƟŵĞĂƐƐŝƐƚĂŶƚƚŽƚŚĞƵĚŝƚŽŵŵŝƩĞĞĂƐƐŝƐƚƐƚŚĞƵĚŝƚŽŵŵŝƩĞĞ͘

CORPORATEGOVERNANCE

hŶĚĞƌ ƚŚĞ ƐƵƉĞƌǀŝƐŝŽŶ ŽĨ ƚŚĞ WƌĞƐŝĚĞŶƚ ĂŶĚ ZĞƉƌĞƐĞŶƚĂƟǀĞ ǆĞĐƵƟǀĞ KĸĐĞƌ͕ ǁŚŽ ŝƐ ŝŶ ĐŚĂƌŐĞŽĨ ŽǀĞƌĂůů ŵĂŶĂŐĞŵĞŶƚ͕ ĐŽŵƉůŝĂŶĐĞ ŝƐ ƉƌŽŵŽƚĞĚ ŵĂŝŶůǇ ďǇ ƚŚĞ ǆĞĐƵƟǀĞ KĸĐĞƌ ŝŶ ĐŚĂƌŐĞ ŽĨ ,Z͕ŽŵƉůŝĂŶĐĞ Θ ^ƵƐƚĂŝŶĂďŝůŝƚǇ ;,ZKͿ͘ /Ŷ ĂĚĚŝƟŽŶ͕ ĂŶ Internal Audit Office ŚĂƐ ďĞĞŶ ĞƐƚĂďůŝƐŚĞĚĚŝƌĞĐƚůǇƵŶĚĞƌƚŚĞWƌĞƐŝĚĞŶƚĂŶĚZĞƉƌĞƐĞŶƚĂƟǀĞŝƌĞĐƚŽƌƚŽĐŽŶĚƵĐƚŝŶƚĞƌŶĂůĂƵĚŝƚƐĂŶĚĐŽŶĮƌŵƚŚĞƐƚĂƚƵƐ ŽĨ ĐŽŵƉůŝĂŶĐĞ͘ /Ŷ ĂĚĚŝƟŽŶ͕ ĂŶ ĂƐƐŝƐƚĂŶƚ ƚŽ ƚŚĞ ƵĚŝƚ ŽŵŵŝƩĞĞ ŚĂƐ ďĞĞŶ ĞƐƚĂďůŝƐŚĞĚ ƵŶĚĞƌ
ƚŚĞ ĚŝƌĞĐƚ ƐƵƉĞƌǀŝƐŝŽŶ ŽĨ ƚŚĞ ƵĚŝƚ ŽŵŵŝƩĞĞ ƚŽ ĂƵĚŝƚ ƚŚĞ ĐŽŵƉůŝĂŶĐĞ ƐƚĂƚƵƐ ŽĨ ĚŝƌĞĐƚŽƌƐ ĂŶĚŽƚŚĞƌŽĸĐĞƌƐ͘dŚĞ/ŶƚĞƌŶĂůƵĚŝƚKĸĐĞ͕ƚŚĞƵĚŝƚŽŵŵŝƩĞĞĂƐƐŝƐƚĂŶƚ͕ĂŶĚƚŚĞĂĐĐŽƵŶƟŶŐĂƵĚŝƚŽƌ
ƐŚĂƌĞ ŝŶĨŽƌŵĂƟŽŶ ĂƐ ŶĞĐĞƐƐĂƌǇ ƚŽ ƐƚƌĞŶŐƚŚĞŶ ĐŽŽƉĞƌĂƟŽŶ͘ tĞ ĐŽŶĚƵĐƚ compliance training
for all employees ƚŽ ƉƌĞǀĞŶƚ ƚŚĞ ŽĐĐƵƌƌĞŶĐĞ ŽĨ ŶŽŶͲĐŽŶĨŽƌŵŝŶŐ ƉƌŽĚƵĐƚ ŝƐƐƵĞƐ ĂŶĚ ŽƚŚĞƌ
ĐŽŵƉůŝĂŶĐĞƉƌŽďůĞŵƐƚŚĂƚĐŽƵůĚĚĂŵĂŐĞƚŚĞƚƌƵƐƚŽĨƐƚĂŬĞŚŽůĚĞƌƐ͘81

Our goal is ZERO accidents(zero incidents with employees,ĐƵƐƚŽŵĞƌƐ͕ŝŶǀĞƐƚŽƌƐ͕ĂŶĚĐŽŵŵƵŶŝƟĞƐ͕etc.) ZERO harm to people andZERO damage to the environment.
But also, ZERO inequality
and ZERO Lack Of Knowledge,ǁŚŝĐŚŵĞĂŶƐĞƋƵĂůŽƉƉŽƌƚƵŶŝƟĞƐto grow, for everybody.

APPROACH

TN VISION ZERO APPROACH

VISIONZEROTN
To deliver the TN 5 ZERO’s,ǁĞĐĂƌĞĨƵůůǇƉůĂŶŽƵƌŽƉĞƌĂƟŽŶƐand processes, with the aimƚŽŝĚĞŶƟĨǇŝŶŐƉŽƚĞŶƟĂůŚĂǌĂƌĚƐand eliminate or minimize
managing risks at every stage,
ĐƌĞĂƟŶŐĂƐƵƐƚĂŝŶĂďůĞĨƵƚƵƌĞfor our stakeholders.

83

SUSTAINABILITY (ESG)
context, concretizing it in a SWOT analysis, a strategic planning
tool used to evaluate the strengths (Strengths) the weaknesses(Weaknesses), the opportunities (Opportunities) and the threats(Threats) that characterize a company to facilitate decisionmaking processes and achieve business objectives,
concerning Sustainability (Environment, Social, Governance).

TSUBAKI NAKASHIMACONTEXTANALYSIS

TN CONTEXT ANALYSISThe Company Management has decided to draft the document
integrating the GRI Standard with the principles of Integrated
reporting in order to provide the widest information to its
Stakeholders and with the aim of highlighting the creation ofvalue over time. The integrated report is a new approach tocorporate reporting that aims to emphasize the link between
strategy, financial performance and the social context in which
the company operates. The objective of the Framework is todefine the guiding principles and contents that are part of an
integrated report and the main purpose is to demonstrate
to financial capital providers, through an improvement in thequality of information, how an organization is able to create
value over time. The company has made an objective analysis of the

SWOT Analysis started from thealignment between Managerial
Statements, Strategy andSustainability (ESG) Targets,with the ZERO Approach.
Safe and healthy plants(Zero accidents and ZeroŽĐĐƵƉĂƟŽŶĂů ŝůůŶĞƐƐĞƐ – ZeroŝŶĞƋƵĂůŝƟĞƐ)andlowenvironmental impact (Zerowastes) - Improving EnergyĞĸĐŝĞŶĐǇ ĂŶĚ ĐŽŶƐƵŵƉƟŽŶ͖
Common system, ƉůĂƞŽƌŵ ĂŶĚ
standards to manage and sustain
Sustainability (ĞƌŽ ůĂĐŬ ŽĨŬŶŽǁůĞĚŐĞ), in complianceǁŝƚŚ ƚŚĞ ůĂǁƐ ĂŶĚ ŽďůŝŐĂƟŽŶƐ͘

85

ApplyGRI Standards;^'ZĞƉŽƌƟŶŐͿŽŵƉĂŶǇŝĚĞŶƟƚǇ͕sĂůƵĞƐĂŶĚWƌŝŶĐŝƉůĞƐ͕^ƵƐƚĂŝŶĂďŝůŝƚǇWŽůŝĐǇ͕DĂŶĂŐĞƌŝĂů^ƚĂƚĞŵĞŶƚƐ

Commonsystem͕ƚŽŵĂŶĂŐĞ^ƵƐƚĂŝŶĂďŝůŝƚǇŝŶĂůůƚŚĞWůĂŶƚƐĂŶĚƚƌĂŝŶĂŶĚŵĂŬĞĞŵƉůŽǇĞĞƐĂǁĂƌĞŽĨŝƚ;͞ĞƌŽůĂĐŬŽĨŬŶŽǁůĞĚŐĞ͟ͿŝŶĐŽŵƉůŝĂŶĐĞǁŝƚŚƚŚĞůĂǁƐĂŶĚŽďůŝŐĂƟŽŶƐ͖ŚĂǀĞ^ĂĨĞĂŶĚ,ĞĂůƚŚǇƉůĂŶƚƐ(Zero accidents eĞƌŽŽĐĐƵƉĂƟŽŶĂůŝůůŶĞƐƐĞƐͿƌĞƐƉĞĐƟŶŐƚŚĞƉĞŽƉůĞĂŶĚŐŝǀŝŶŐƚŚĞƐĂŵĞŽƉƉŽƌƚƵŶŝƟĞƐĞƌŽŝŶĞƋƵĂůŝƟĞƐͿĂŶĚǁŽƌŬƚŽŚĂǀĞĂůŽǁĞƌĞŶǀŝƌŽŶŵĞŶƚĂůŝŵƉĂĐƚ;Zero wastesͿ

CONTEXT ANALYSIS
DEFINITIONTARGETTN CONTEXT ANALYSIS

Build
a commonground:Improve
Energy efficiency
and consumption;^ƵƐƚĂŝŶĂďůĞĞǀĞůŽƉŵĞŶƚͿV = (C2 + H + A) x AsĂůƵĞс;ŽŵƉĞƚĞŶĐŝĞƐн,ƵŵŝůŝƚǇнďŝůŝƚǇͿǆƫƚƵĚĞ
;dEĐĂĚĞŵǇͿ87

Global Sustainability System and Minimum Technical Standards
Road to full integration

Pressure from Stakeholders to be more sustainable“Green” incentives (potentially)

Cultural and Linguistic barriersBest practices as opportunity to accelerate the growth in Company
culture and actions

SWOT

Common EU Regulations (for EU Region)
Digitalization
ESG (GRI) as a new Standard to improve

CONTEXT ANALYSISSWOTANALYSIS

Lack of resources (including Professionals)
in some geographical areas
Higher cost of energy and natural resources
Higher cost of waste disposal, like grinding sludge
Reduced mobility due to the PandemicW

TN CONTEXT ANALYSIS

Energy not always perceived as an opportunity – sensitivity increased

INTERNAL ORIGIN

INTERNAL ORIGIN

Process to standardize systems, materials, equipment, machines,
manufacturing flow, etc.

EXTERNAL ORIGINO

Old plants and old machines, almost everywhere, increase the safety
risks and use of energy, as well as the potential environmental impacts

Many of the plants have an ISO Certification
In general, request for certification increasing

EXTERNAL ORIGINSHigh support from the CEO - Company is very oriented to compliance,
respect of people and Sustainability

T
89

The Group places great
importance on maintaining andbuilding relationships of trust with
its stakeholders based on longterm collaboration.. Tsubaki

Nakashima interacts with numerous
subjects, worldwide; the Company
ďĂƐĞƐ ŝƚƐ ƌĞůĂƟŽŶƐŚŝƉƐ ŽŶ ƐŽůŝĚ
pillars such as respect for people,
safety at work, the quality ofƐĞƌǀŝĐĞƐŽīĞƌĞĚ͕ĂƩĞŶƟŽŶƚŽƚŚĞ
environment, transparency inƌĞůĂƟŽŶƐŚŝƉƐĂŶĚ^ŽĐŝĂů
Responsibility. The stakeholder
engagement activity made itƉŽƐƐŝďůĞ ƚŽ ĚĞĮŶĞ ƚŚĞ ƌĞƉŽƌƟŶŐ
perimeter and to build astakeholder
mappingthatŝĚĞŶƟĮĞƐ ƚŚĞ ƐƵďũĞĐƚƐ ůŝŶŬĞĚ ƚŽ
the company by relationshipsof different nature and in turninserted in wider networks ofŝŶƚĞƌƌĞůĂƟŽŶƐ͘dƐƵďĂŬŝEĂŬĂƐŚŝŵĂ
ŝĚĞŶƟĮĞƐ ŝƚƐ ƐƚĂŬĞŚŽůĚĞƌƐ ďǇ
dividing them into two maincategories: internal and externalƐƚĂŬĞŚŽůĚĞƌƐ͕ ĨŽůůŽǁŝŶŐ ƚŚĞ /^Krequirements.

are represented not only by shareholders and company management, but above all by employees
and collaborators, the heart of the company, who are in direct contact with customers every day,ƌĞƉƌĞƐĞŶƟŶŐ dƐƵďĂŬŝ EĂŬĂƐŚŝŵĂ͘ dŚĞ ĐŽŵƉĂŶǇ ƐƚƌŽŶŐůǇ ďĞůŝĞǀĞƐ ŝŶ ƚŚĞ ŝŶƚĞŐƌĂƟŽŶ ĂŶĚ ĐŽŶĐƌĞƚĞŵŽƟǀĂƟŽŶ ŽĨ ŝƚƐ ĞŵƉůŽǇĞĞƐ ďǇ ƐƟŵƵůĂƟŶŐ ƚƌĂŝŶŝŶŐ Ăƚ ϯϲϬΣ ĂŶĚ ŝŶ ƉĂƌƟĐƵůĂƌ ŽŶ ĨƵŶĚĂŵĞŶƚĂů
issues such as safety at work and the principles established by the highest ethic’s standards.
^ŚĂƌĞŚŽůĚĞƌƐ ĂŶĚ ĐŽŵƉĂŶǇ ŵĂŶĂŐĞŵĞŶƚ ŐƵŝĚĞ ƚŚĞ ƐƚƌĂƚĞŐǇ ĂŶĚ ŽƉĞƌĂƟŽŶƐ ŽĨ ƚŚĞ ŽŵƉĂŶǇin compliance with and sharing ethical and moral principles.

OUR STAKEHOLDERSOUR STAKEHOLDERS

INTERNAL STAKEHOLDERS

EXTERNAL STAKEHOLDERS

include suppliers and contractors, who are selected through a precise evaluation system, as well asďĂƐĞĚ ŽŶ ĐŽŵƉůŝĂŶĐĞ ǁŝƚŚ ƚŚĞ ƉƌŝŶĐŝƉůĞƐŐŽǀĞƌŶĞĚ ďǇ ŽƵƌ YD^ ĂŶĚ '^^͗ ďĞŝŶŐ Ă ƐƵƉƉůŝĞƌ ŽĨ dƐƵďĂŬŝ
EĂŬĂƐŚŝŵĂ ŵĞĂŶƐ ĐŽŵŵŝƫŶŐ ƚŽ extend the same ethical principles that guide the company alsoƚŽŝƚƐƐƵƉƉůǇĐŚĂŝŶĂŶĚĂůŽŶŐƚŚĞĞŶƟƌĞǀĂůƵĞĐŚĂŝŶ͘ƌĞůĞǀĂŶƚĞǆƚĞƌŶĂůƐƚĂŬĞŚŽůĚĞƌŝƐƚŚĞƵƐƚŽŵĞƌƐ͘ŽƚŚĐĂƚĞŐŽƌŝĞƐŽĨƐƚĂŬĞŚŽůĚĞƌƐ;ŝŶƚĞƌŶĂůĂŶĚĞǆƚĞƌŶĂůͿŚĂǀĞůĞŐŝƟŵĂƚĞĞǆƉĞĐƚĂƟŽŶƐƌĞŐĂƌĚŝŶŐƚŚĞǁŽƌŬŽĨdƐƵďĂŬŝEĂŬĂƐŚŝŵĂĂŶĚ͕ŝŶƌĞůĂƟŽŶƚŽƚŚĞŵŽƐƚƌĞůĞǀĂŶƚƐƚĂŬĞŚŽůĚĞƌƐ͕ƚŚĞƉŽƐƐŝďŝůŝƚǇŽĨĞǆƉƌĞƐƐŝŶŐŽƉŝŶŝŽŶƐĂŶĚƐƵŐŐĞƐƟŽŶƐ͕ďŽƚŚŝŶĐůĞĂƌĂŶĚĂŶŽŶǇŵŽƵƐ;ŝ͘Ğ͘^ƵƌǀĞǇƐͿ͕ƚŚƌŽƵŐŚǀĂƌŝŽƵƐƐŚĂƌŝŶŐƚŽŽůƐŵĂĚĞĂǀĂŝůĂďůĞďǇƚŚĞĐŽŵƉĂŶǇĂŶĚǁŝƚŚƉĞƌŝŽĚŝĐŵĞĞƟŶŐƐ͘dŚĂŶŬƐƚŽƚŚĞƐĞlistening processes, theĐŽŵƉĂŶǇŚĂƐƚŚĞŽƉƉŽƌƚƵŶŝƚǇƚŽƵŶĚĞƌƐƚĂŶĚƚŚĞŝƌŶĞĞĚƐĂŶĚĞǀĂůƵĂƚĞƚŚĞŵƚŽŝŵƉƌŽǀĞŝƚƐĂĐƟǀŝƟĞƐand its impact on them. In general, stakeholder involvement takes place in compliance with theƉƌŝŶĐŝƉůĞŽĨŝŶĐůƵƐŝǀĞŶĞƐƐ͕ƚŚƌŽƵŐŚǁŚŝĐŚdƐƵďĂŬŝEĂŬĂƐŚŝŵĂƵŶĚĞƌƚĂŬĞƐƚŽĞŶĐŽƵƌĂŐĞƚŚĞĂĐƟǀĞ
ƉĂƌƟĐŝƉĂƟŽŶŽĨĂůůŝŶƚĞƌŶĂůƐƚĂŬĞŚŽůĚĞƌƐŝŶĐŽƌƉŽƌĂƚĞůŝĨĞĂŶĚƐƚƌĂƚĞŐŝĐĚĞĐŝƐŝŽŶƐ͘

91

EngagingThird Parties

Workingwith Suppliers

CONFLICTS
of interest

Personal Relationships and Family MemberstĞĂƚdƐƵďĂŬŝEĂŬĂƐŚŝŵĂĂƌĞĂĐƟŶŐƚŽƉƌŽƚĞĐƚƚŚĞƉĞƌƐŽŶĂůĚĂƚĂŽĨŽƵƌ ƵƐƚŽŵĞƌƐ͕ ƵƐŝŶĞƐƐ WĂƌƚŶĞƌƐ͕ ĂŶĚ ŵƉůŽǇĞĞƐ ƚŽ ƌĞǁĂƌĚ ƚŚĞŝƌƚƌƵƐƚĂŶĚ fulfill our social responsibility͘dŚĞĂƚĂWƌŽƚĞĐƟŽŶWŽůŝĐǇ ƐƚĂƚĞƐ ƚŚĞ ƌƵůĞƐ ĂƉƉůŝĐĂďůĞ ŝŶ Ăůů ƚŚĞ ŽƵŶƚƌŝĞƐ ǁŚĞƌĞ ǁĞŽƉĞƌĂƚĞ͕ ĂŶĚ /ŶĚŝǀŝĚƵĂů 'ƌŽƵƉ ĐŽŵƉĂŶŝĞƐ ĂƌĞ ŶŽƚ ĞŶƟƚůĞĚ ƚŽĂĚŽƉƚ ƌĞŐƵůĂƟŽŶƐ ƚŚĂƚ ĚĞǀŝĂƚĞ ĨƌŽŵ ŝƚ͘ ǀĞƌǇ hŶŝƚ ŵƵƐƚ ŝĚĞŶƟĨǇ
all applicable International ;ZĞŐŝŽŶĂů͕ EĂƟŽŶĂů ZĞŐƵůĂƟŽŶƐ͕ŽĚĞƐĂŶĚ>ĂǁƐ͕Ğ͘Ő͘'WZŝŶƵƌŽƉĞ͕ĐƚŽŶWƌŽƚĞĐƟŽŶŽĨWĞƌƐŽŶĂů
/ŶĨŽƌŵĂƟŽŶ ;WW/Ϳ ŝŶ :ĂƉĂŶ͕ ĂƚĂ WƌŽƚĞĐƟŽŶ >ĂǁƐ ŝŶ h^͕ ĞƚĐ͘Ϳ͕ǁŝƚŚ ǁŚŝĐŚ ŝƚ ŵƵƐƚ ĐŽŵƉůǇ͘ dŚĞ ĂƚĂ WƌŽƚĞĐƟŽŶ WŽůŝĐǇ ĞǆƚĞŶĚƐƚŽĂůůƉƌŽĐĞƐƐŝŶŐŽĨƉĞƌƐŽŶĂůĚĂƚĂ͘/ŶĐŽƵŶƚƌŝĞƐǁŚĞƌĞƚŚĞĚĂƚĂŽĨůĞŐĂů ĞŶƟƟĞƐ ŝƐ ƉƌŽƚĞĐƚĞĚ ƚŽ ƚŚĞ ƐĂŵĞ ĞǆƚĞŶƚ ĂƐ ƉĞƌƐŽŶĂů ĚĂƚĂ͕ƚŚĞĂƚĂWƌŽƚĞĐƟŽŶWŽůŝĐǇĂƉƉůŝĞƐĞƋƵĂůůǇƚŽĚĂƚĂŽĨůĞŐĂůĞŶƟƟĞƐ͘PERSONAL DATA
protection

SPECIFIC POLICIESOur Tracking Regulations’ PolicyƐƵƉƉŽƌƚƐdƐƵďĂŬŝ
EĂŬĂƐŚŝŵĂ ƉƌĂĐƟĐĞ ƚŽ ƉĂƌƟĐŝƉĂƚĞ ŝŶ ƌĞůĞǀĂŶƚŝŶƚĞƌŶĂƟŽŶĂů ĂŶĚ ĐŽŵŵƵŶŝƚǇ ĂĐƟǀŝƟĞƐ ĂŶĚ ŝŶ ƚŚĞĚĞǀĞůŽƉŵĞŶƚ ŽĨ ƌĞƐƉŽŶƐŝďůĞ ůĞŐŝƐůĂƟŽŶ͕ ƌĞŐƵůĂƟŽŶƐ͕ƐƚĂŶĚĂƌĚƐ ĂŶĚ ƚĞĐŚŶŽůŽŐǇ͘ ŶĚ͕ Ăƚ ƚŚĞ ƐĂŵĞ ƟŵĞ͕ ŝƚĚĞŵĂŶĚƐ ƚŽ ĞǀĞƌǇ ŽƌŐĂŶŝǌĂƟŽŶ ƚŽ ĂƉƉůǇ ƚŚĞ ŽƌƉŽƌĂƚĞ
ƉƌŽĐĞƐƐ ƚŽ ĞŶƐƵƌĞ ƚŚĂƚ ƚŚĞ ŝŶĨŽƌŵĂƟŽŶ ƌĞŐĂƌĚŝŶŐ >ĂǁƐĂŶĚ ZĞŐƵůĂƟŽŶƐ ŝƐ ĂĐĐƵƌĂƚĞ ĂŶĚ ƌĞĐĞŝǀĞĚ ŝŶ Ă ƟŵĞůǇŵĂŶŶĞƌ͕ ĂŶĚ ĨŽƌ ƵŶĚĞƌƐƚĂŶĚŝŶŐ ƚŚĞ ĂƉƉůŝĐĂďŝůŝƚǇ ŽĨ/ŶƚĞƌŶĂƟŽŶĂů͕ ZĞŐŝŽŶĂů͕ EĂƟŽŶĂů͕ ŽŵƉĂŶǇ ĂŶĚ ŽƚŚĞƌĂƉƉůŝĐĂďůĞ ƌĞƋƵŝƌĞŵĞŶƚƐ ŝŶ ƚŚĞ ƐƉĞĐŝĮĐ ŽƌŐĂŶŝǌĂƟŽŶĂů
ĞŶǀŝƌŽŶŵĞŶƚ͕ ĂƐ ǁĞůů ĂƐ ĂƵƚŚŽƌŝǌĂƟŽŶƐ͕ ƉĞƌŵŝƚƐ͕ůŝĐĞŶƐĞƐ ŶĞĞĚĞĚ ƚŽ ŽƉĞƌĂƚĞ ƚŚĞ KƌŐĂŶŝǌĂƟŽŶ ŝŶĐŽŵƉůŝĂŶĐĞ ǁŝƚŚ >ĂǁƐ ĂŶĚ ZĞŐƵůĂƟŽŶƐ͕ ŬĞĞƉŝŶŐƚƌĂĐŬŽĨƚŚĞŵ͘

SPECIFIC POLICIESdƐƵďĂŬŝ EĂŬĂƐŚŝŵĂ ŝƐ ƉƌŽĂĐƟǀĞ ŝŶ ŵĂŬŝŶŐ ƐƵƌĞ ƚŚĂƚ ƉĞƌƐŽŶĂů ƌĞůĂƟŽŶƐŚŝƉƐ
ĂŶĚ ĂĐƟǀŝƟĞƐ ĚŽ ŶŽƚ ŝŶƚĞƌĨĞƌĞ ǁŝƚŚ ƚŚĞ ĂďŝůŝƚǇ ƚŽ ŵĂŬĞ objective businessdecisions ŽŶ ďĞŚĂůĨ ŽĨ dƐƵďĂŬŝ EĂŬĂƐŚŝŵĂ͘ dŚĞ ŽŵƉĂŶǇ ŬŶŽǁƐ ĂŶĚ ĂǀŽŝĚƐ
ƚŚĞŬŝŶĚƐŽĨƐŝƚƵĂƟŽŶƐƚŚĂƚĐĂŶƉƌĞƐĞŶƚLAW
and regulation

PROTECT
well beingdŚŝƐ ƉŽůŝĐǇ ƐĞƚƐ additional expected standardof behaviorĨŽƌƚĞĂŵŵĞŵďĞƌƐĂŶĚĂůůƐƚĂŬĞŚŽůĚĞƌƐ
ǁŚŝůĞ Ăƚ ǁŽƌŬ͕ ŚĞůƉŝŶŐ  Ăůů ƚŚĞ ĞŵƉůŽǇĞĞƐ ƚŽ ĐŽŵƉůǇ
ǁŝƚŚ ĂƉƉůŝĐĂďůĞ ůĂǁƐ ĂŶĚ ƌĞŐƵůĂƟŽŶƐ͕ ŐƵŝĚŝŶŐ ƚŚĞĚĞĐŝƐŝŽŶͲŵĂŬŝŶŐ ƉƌŽĐĞƐƐ͕ ƌĞŝŶĨŽƌĐŝŶŐ ƚŚĞ ĐŽŵŵŝƚŵĞŶƚƚŽ ŝŵƉĞĐĐĂďůĞ ĐŚĂƌĂĐƚĞƌ͘ /ƚ ŝŶĐůƵĚĞƐ ƌĞƋƵŝƌĞŵĞŶƚƐ
ĚƌŝǀĞŶ ďǇ ůĂǁ͕ ĂŶĚ ƌĞƋƵŝƌĞŵĞŶƚƐ ĚƌŝǀĞŶ ďǇ dƐƵďĂŬŝ
EĂŬĂƐŚŝŵĂ ŽĚĞ ŽĨ ƵƐŝŶĞƐƐ ƚŚŝĐƐ͕ ƉŚŝůŽƐŽƉŚǇ͕ ĂŶĚ ĐƵůƚƵƌĞ ĂŶĚ ďǇ dƐƵďĂŬŝ EĂŬĂƐŚŝŵĂŵĂŶĂŐĞŵĞŶƚƐƚĂƚĞŵĞŶƚƐ͘ƐƉĂƌƚŽĨƚŚĞdƐƵďĂŬŝEĂŬĂƐŚŝŵĂƚĞĂŵ͕each employee takes
care of himself/herself and each other͘dƐƵďĂŬŝEĂŬĂƐŚŝŵĂƉƌŽŵŽƚĞƐƐĂĨĞƚǇ͕ŚĞĂůƚŚ͕ĂŶĚƐŽĐŝĂůƌĞƐƉŽŶƐŝďŝůŝƟĞƐďĞĐĂƵƐĞƉĞŽƉůĞŵĂƩĞƌʹŶŽƚũƵƐƚƚŽƚŚĞŽŵƉĂŶǇ͕ďƵƚƚŽĨĞůůŽǁƚĞĂŵŵĞŵďĞƌƐ͕ĨƌŝĞŶĚƐ͕ĨĂŵŝůŝĞƐ͕ĂŶĚĐŽŵŵƵŶŝƟĞƐ͘93dƐƵďĂŬŝ EĂŬĂƐŚŝŵĂ ;dEͿ ŝƐ ĂŶ ŽƌŐĂŶŝǌĂƟŽŶ
ĐŽŵŵŝƩĞĚ ƚŽ ƚŚĞ respect of human rights andƵƉŚŽůĚŝŶŐ ůĂďŽƵƌ ƐƚĂŶĚĂƌĚƐ͘ dŚŝƐ ƌĞƐƉĞĐƚ ĂŶĚĐŽŵŵŝƚŵĞŶƚ ĂƌĞ ĐĞŶƚƌĂů ƚŽ ƚŚĞ ƐƵĐĐĞƐƐ ŽĨ dEĞŶƟƟĞƐ ŝŶ Ăůů ƚŚĞ ĐŽŵŵƵŶŝƟĞƐ ŝŶ ǁŚŝĐŚ ŝƚŽƉĞƌĂƚĞƐ͘ >ĂďŽƵƌ ^ƚĂŶĚĂƌĚƐ WŽůŝĐǇ ŝƐ ĂůŝŐŶĞĚ ǁŝƚŚƚŚĞ ƉƌŝŶĐŝƉůĞƐ ĞƐƚĂďůŝƐŚĞĚ within the Universal
Declaration of Human Rights ĂŶĚ ŝŶ ĐŽŵďŝŶĂƟŽŶwith TN Managerial Statement and Codeof Business Ethics͕ ƌĞŝŶĨŽƌĐĞƐ ƚŚĞ ĐŽŵŵŝƚŵĞŶƚ
to ensuring all internal and external stakeholders
are treated with dignity ĂŶĚ ƌĞƐƉĞĐƚ͘ Ɛ ƉĂƌƚ ŽĨĚƵĞ ĚŝůŝŐĞŶĐĞ ǁŚĞŶ ĞŶƚĞƌŝŶŐ ĂĐƋƵŝƐŝƟŽŶƐ͕ newŽƉĞƌĂƟŽŶƐ ĂŶĚ ŽƚŚĞƌ ĐŽŶƚƌĂĐƚƵĂů ĂƌƌĂŶŐĞŵĞŶƚƐ͕
Tsubaki Nakashima seeks to abide by theƌĞƋƵŝƌĞŵĞŶƚƐ ƐĞƚ ŽƵƚ ŝŶ ƚŚŝƐ ĚŽĐƵŵĞŶƚ ƚŽ ĞŶƐƵƌĞ
any labour standards and human rights issuesĂƌĞ ŝĚĞŶƟĮĞĚ ĂŶĚ ĂƐƐĞƐƐĞĚ͘ dŚĞ ƉƵƌƉŽƐĞ ŽĨ ƚŚŝƐWŽůŝĐǇ ŝƐ ƚŽ ƐĞƚ ŽƵƚ ƚŚĞ ƌĞƐƉŽŶƐŝďŝůŝƟĞƐ ŽĨ dƐƵďĂŬŝ
EĂŬĂƐŚŝŵĂ͕ ŝƚƐ ŵƉůŽǇĞĞƐ ĂŶĚ ƐƐŽĐŝĂƚĞƐ ŝŶŽďƐĞƌǀŝŶŐĂŶĚƵƉŚŽůĚŝŶŐŽƵƌƉƌŝŶĐŝƉůĞƐǁŝƚŚƌĞƐƉĞĐƚto labour standardsĂŶĚŚƵŵĂŶƌŝŐŚƚƐ͘

SPECIFIC POLICIES

CHILD
labourTsubaki Nakashima does not accept
child labour. ŚŝůĚ ůĂďŽƵƌ ŝƐ ĚĞĮŶĞĚ ĂƐ ǁŽƌŬƵŶĚĞƌƚĂŬĞŶ ďǇ Ă ĐŚŝůĚ ǁŚŝĐŚ ƚŚĞ ĐŚŝůĚ ŝƐ ůĞŐĂůůǇ
prohibited from undertaking or is likely to beŚĂƌŵĨƵů ƚŽ ƚŚĞ ŚŝůĚ͛Ɛ ŚĞĂůƚŚ Žƌ ƉŚǇƐŝĐĂů͕ŵĞŶƚĂů͕ ƐƉŝƌŝƚƵĂů͕ ŵŽƌĂů͕ Žƌ ƐŽĐŝĂů ĚĞǀĞůŽƉŵĞŶƚ͕Žƌ ŝŶƚĞƌĨĞƌĞƐ ǁŝƚŚ Ă ŚŝůĚ͛Ɛ ĞĚƵĐĂƟŽŶ͘ dƐƵďĂŬŝEĂŬĂƐŚŝŵĂƐƵƉƉŽƌƚƐƚŚĞhŶŝƚĞĚEĂƟŽŶƐĂŶĚ/>KĐŽŶǀĞŶƟŽŶƐƐƉĞĐŝĨǇŝŶŐ͗ The right of the

All actions concerning
the child shall take full accountof his or her best interests.

SPECIFIC POLICIES

createPOSITIVE
relationships

Tsubaki Nakashima values the power of Collective know-how. The Company
grows the business and improves the work environment by buildingƉŽƐŝƟǀĞĂŶĚĞŶĚƵƌŝŶŐƌĞůĂƟŽŶƐŚŝƉƐ͘/ŶƐƉĞĐŝĮĐ͕ƚŚĞƉŽůŝĐǇĚĞƚĞƌŵŝŶĞƐthe general rules in terms of Diversity, Inclusion
and Opportunity, and Harassment-free Workplace͘child to be protectedfrom economic
exploitation,from performing any
work that is likely
to be hazardous
or interferes withthe child’s education,or is harmful toa child’s healthor physical, mental,
spiritual, moral
or social
development.

LABOUR
standards

95

Politicalbeliefs
or activity

EQUAL
opportunities
Parental
StatusPhysicalfeatures

MaritalStatusDisability

Conflictof interest

Victimization

Age

Impairment

GenderReligious
beliefs
or activity

SPECIFIC POLICIESFamilyResponsibilities

SexualOrientation

SPECIFIC POLICIESdƐƵďĂŬŝ EĂŬĂƐŚŝŵĂ ƌĞĐƌƵŝƚƐ͕ ĚĞǀĞůŽƉƐ͕ ĂŶĚ ƉƌŽŵŽƚĞƐ ƉĞƌƐŽŶŶĞů ŽŶ ƚŚĞ ďĂƐŝƐ ŽĨ ŵĞƌŝƚ͘ tĞ ǁĂŶƚ ƚŽ ŵĂŝŶƚĂŝŶĂ ǁŽƌŬ ĞŶǀŝƌŽŶŵĞŶƚ ĨƌĞĞ ĨƌŽŵ ĚŝƐĐƌŝŵŝŶĂƟŽŶ ĂŶĚ ŚĂƌĂƐƐŵĞŶƚ͘ ƋƵĂů ŽƉƉŽƌƚƵŶŝƚǇ ŵĞĂŶƐ ƚƌĞĂƟŶŐ
ŝŶĚŝǀŝĚƵĂůƐ ĨĂŝƌůǇ ĂŶĚ without discrimination in all aspects ŽĨ ƚŚĞŝƌ ĞŵƉůŽǇŵĞŶƚ͘ ŝƐĐƌŝŵŝŶĂƟŽŶ ŵĞĂŶƐ
ƚƌĞĂƟŶŐ ĂŶ ŝŶĚŝǀŝĚƵĂů ůĞƐƐ ĨĂǀŽƌĂďůǇ ƚŚĂŶ ŽƚŚĞƌƐ ŽŶ ŐƌŽƵŶĚƐ ƉƌŽŚŝďŝƚĞĚ ďǇ ůĂǁ͘ 'ƌŽƵŶĚƐ ŽĨ ƵŶůĂǁĨƵůĚŝƐĐƌŝŵŝŶĂƟŽŶŝŶĐůƵĚĞ͗

Ethnicity

INCLUSION
and diversity

Criminal
recorddƐƵďĂŬŝ EĂŬĂƐŚŝŵĂ ŝƐ ĐŽŵŵŝƩĞĚ ƚŽ supporting the values ŽĨ ĚŝǀĞƌƐŝƚǇĂŶĚ ŝŶĐůƵƐŝŽŶ ƚŚƌŽƵŐŚ ƚŚĞ ĂĚŽƉƟŽŶ ŽĨ ĐŽƌƉŽƌĂƚĞ͕ ŽƌŐĂŶŝǌĂƟŽŶĂů ĂŶĚŵĂŶĂŐĞŵĞŶƚ ƉƌŽĐĞƐƐĞƐ ďĂƐĞĚ ŽŶ ƌĞƐƉĞĐƚ ĨŽƌ ƉĞŽƉůĞ͛Ɛ ƌŝŐŚƚƐ ĂŶĚ ĨƌĞĞĚŽŵ͘ dŽƚŚŝƐ ĞŶĚ͕ ƚŚĞ ƉĂƚŚ ƚĂŬĞŶ ĂŝŵƐ ƚŽ ĚĞǀĞůŽƉ ƚŚĞ ǁĂǇƐ ŝŶ ǁŚŝĐŚ ĚŝǀĞƌƐŝƚǇ ŝƐƐƵĞƐ
ĂƌĞ ĂĚĚƌĞƐƐĞĚ͕ ŵŽǀŝŶŐ ĨƌŽŵ ĂŶ ĂƉƉƌŽĂĐŚ ĚĞƐŝŐŶĞĚ ƚŽ ƐĂĨĞŐƵĂƌĚ ĂŶĚŝŶƚĞŐƌĂƚĞ ĚŝǀĞƌƐŝƚǇ͕ ƚŽ Ă ƉƌŽĂĐƟǀĞ ƐƚƌĂƚĞŐǇ ƚŽ ŽǀĞƌĐŽŵĞ ĐƵůƚƵƌĂů ƐƚĞƌĞŽƚǇƉĞƐ
ĂŶĚ ƚŽ ŝĚĞŶƟĨǇ ĂŶĚ ĂĚĚƌĞƐƐ ƚŚŽƐĞ ĨĂĐƚŽƌƐ ƚŚĂƚ ƉƌĞǀĞŶƚ ŝŶĐůƵƐŝŽŶ ŝŶ ƚŚĞǁŽƌŬƉůĂĐĞ͘ dŚĞ ĐŽŵƉĂŶǇ ŽƉĞƌĂƚĞƐ ŝŵƉĂƌƟĂůůǇ ĂŶĚ ĚŽĞƐ ŶŽƚ ƚŽůĞƌĂƚĞ ĂŶǇ ĨŽƌŵŽĨ ĚŝƌĞĐƚ Žƌ ŝŶĚŝƌĞĐƚ ĚŝƐĐƌŝŵŝŶĂƟŽŶ͘ /ƚ ĂůƐŽ ƉƌŽŵŽƚĞƐ ĐŽŶĚŝƟŽŶƐ ƚŚĂƚ ĞŶĂďůĞƚŚĞ ĞůŝŵŝŶĂƟŽŶ ŽĨ ĐƵůƚƵƌĂů͕ ŽƌŐĂŶŝǌĂƟŽŶĂů ĂŶĚ ŵĂƚĞƌŝĂů ďĂƌƌŝĞƌƐ ƚŚĂƚ ůŝŵŝƚ
ƉĞŽƉůĞ͛Ɛ ĨƵůů ƉĂƌƟĐŝƉĂƟŽŶ ĂŶĚ ĨƵůů ƉŽƚĞŶƟĂů ǁŝƚŚŝŶ ƚŚĞ ŽƌŐĂŶŝǌĂƟŽŶ͘dEƐĂĨĞŐƵĂƌĚƐƚŚĞǀĂůƵĞŽĨŝƚƐƐƚĂīĂŶĚƉƌŽŵŽƚĞƐƚŚĞƉƌŽƚĞĐƟŽŶŽĨƚŚĞŝƌƉƐǇĐŚŽƉŚǇƐŝĐĂů͕ŵŽƌĂůĂŶĚĐƵůƚƵƌĂůŝŶƚĞŐƌŝƚǇƚŚƌŽƵŐŚǁŽƌŬŝŶŐĐŽŶĚŝƟŽŶƐƚŚĂƚƌĞƐƉĞĐƚŝŶĚŝǀŝĚƵĂůĚŝŐŶŝƚǇĂŶĚƌƵůĞƐŽĨĐŽŶĚƵĐƚ͘97

WORKING
FREEDOM
of association conditionsRISK
BARGAINING
management

The Tsubaki Group’s regional Presidents and'ůŽďĂů ĨƵŶĐƟŽŶĂů DĂŶĂŐĞƌƐ ŝŶ ĐŚĂƌŐĞ ŽĨŵĂŶƵĨĂĐƚƵƌŝŶŐ͕ƋƵĂůŝƚǇ͕ƐĂůĞƐ͕ƚĞĐŚŶŽůŽŐǇ͕ĮŶĂŶĐĞ͕and human resources are responsible foranalyzing and assessing the individual risksŝŶŚĞƌĞŶƚ ŝŶ ŽƵƌ ďƵƐŝŶĞƐƐ ĂĐƟǀŝƟĞƐ͘ tŚĞŶ ĂƐŝŐŶŝĮĐĂŶƚ ƌŝƐŬ ŝƐ ŝĚĞŶƟĮĞĚ͕ ƚŚĞ Risk
Management Committee (RMC) is convened toreview the risk analysis and assessment
conducted in each region and report theƌĞƐƵůƚƐ ƚŽ ƚŚĞ DĂŶĂŐĞŵĞŶƚ  ŽŵŵŝƩĞĞ ;DͿ͕ƚŚĞ ĞǆĞĐƵƟǀĞ ďŽĚǇ͘ /Ŷ ĂĚĚŝƟŽŶ ƚŽ ĚŝƐĐƵƐƐŝŶŐand deciding how to respond to such risks,ƚŚĞ D ǁŝůů ƉƌŽŵƉƚůǇ ƌĞƉŽƌƚ ƚŽ ƚŚĞ ŽĂƌĚ ŽĨ
Directors and take countermeasures in theevent that a serious loss is expected to occur.

SPECIFIC POLICIESKŶĞ ŽĨ ƚŚĞ ŽďũĞĐƟǀĞƐ ŽĨ dƐƵďĂŬŝ EĂŬĂƐŚŝŵĂ͛Ɛ ĂĐƟǀŝƚǇ ŝƐ ƚŽ make the environments
cleaner, more efficient and above all safe ĂŶĚǁĞĐĂŶĐŽŶĮŐƵƌĞƚŚŝƐŝŶƚŚĞƉƌĞǀĞŶƟŽŶĂŶĚĂĚŽƉƟŽŶŽĨĞŶǀŝƌŽŶŵĞŶƚĂůůǇĨƌŝĞŶĚůǇƚĞĐŚŶŝƋƵĞƐĂŶĚƐƵƐƚĂŝŶĂďůĞĂƉƉƌŽĂĐŚĞƐ͘hŶĚĞƌƚŚĞ ĚŝƌĞĐƟŽŶ ŽĨ ƚŚĞ K ĂŶĚ DĂŶĂŐĞŵĞŶƚ ŽŵŵŝƩĞĞ͕ ƚŚĞ dƐƵďĂŬŝ EĂŬĂƐŚŝŵĂ͛Ɛ &K ͲŝƌĞĐƚŽƌŝŶĐŚĂƌŐĞŽĨŽƌƉŽƌĂƚĞWůĂŶŶŝŶŐ͕ƵƐŝŶĞƐƐ^ƚƌĂƚĞŐǇ͕ĂŶĚDΘͲŝƐƌĞƐƉŽŶƐŝďůĞĨŽƌƉƌŽŵŽƟŶŐ^'͕ǁŝƚŚƚŚĞƐƵƉƉŽƌƚŽĨƚŚĞ/ŶǀĞƐƚŽƌZĞůĂƟŽŶĞƉĂƌƚŵĞŶƚ͘,ZKʹŝƌĞĐƚŽƌŽĨ,ƵŵĂŶZĞƐŽƵƌĐĞƐ͕ŽŵƉůŝĂŶĐĞĂŶĚ^ƵƐƚĂŝŶĂďŝůŝƚǇʹĐƌĞĂƚĞĚƚŚĞOne Team management^ǇƐƚĞŵ ĂŶĚ ƚŚĞ 'ůŽďĂů ^ƵƐƚĂŝŶĂďŝůŝƚǇ ^ǇƐƚĞŵ ŝŶ ŽƌĚĞƌ ƚŽ ŐƵŝĚĞ ƚŚĞ ĚŝƌĞĐƟŽŶ ŽĨ ŐůŽďĂůĂĐƟǀŝƟĞƐ͕ŝŶƚŚĞƌŝŐŚƚǁĂǇ͘KƵƌ'ůŽďĂůKƉĞƌĂƟŽŶƐ͛ŝƌĞĐƚŽƌŵĂŶĂŐĞƐƐƉĞĐŝĮĐ^ƵƐƚĂŝŶĂďŝůŝƚǇ
ƉƌŽũĞĐƚƐ ;Ğ͘Ő͘ tĂƐƚĞ ƌĞĚƵĐƟŽŶ͕ ŶĞƌŐǇͿ͘ dŚĞ ĞƐƚĂďůŝƐŚĞĚ ĚŝƌĞĐƟŽŶ ŝƐ ŝŶĐŽƌƉŽƌĂƚĞĚ ŝŶƚŽƐƉĞĐŝĮĐĂĐƟǀŝƟĞƐĂƚƚŚĞWůĂŶƚůĞǀĞůƚŚƌŽƵŐŚĞĂĐŚZĞŐŝŽŶĂůWƌĞƐŝĚĞŶƚ͘

SPECIFIC POLICIES

Tsubaki Nakashima supports a person’s right to come together with others
to promote, pursue, and defend common interests. Our company strives toƉƌŽǀŝĚĞĞŵƉůŽǇĞĞƐǁŝƚŚĂƉĂǇĂŶĚďĞŶĞĮƚƐƉĂĐŬĂŐĞŝŶůŝŶĞǁŝƚŚŵĂƌŬĞƚƉƌĂĐƟĐĞƐ
and adapted to their skillset and performance. Wages and benefits are equal
or superior to the applicable minimum legal and regulatory requirements andƐŚĂůů ĐŽŵƉůǇ ǁŝƚŚ ŶĞŐŽƟĂƚĞĚ ĂŐƌĞĞŵĞŶƚƐ ǁŝƚŚ ůĞŐĂůůǇ ĞƐƚĂďůŝƐŚĞĚ ƚƌĂĚĞ ƵŶŝŽŶƐ͘

ENVIRONMENT
and regulation
SOCIAL&GOVERNANCE
promotion
structure99

Risk Management Process
and Committee (RMC) are:dŽƉƌŽǀŝĚĞƚŽDĂŶĂŐĞŵĞŶƚŽŵŵŝƩĞĞƟŵĞůǇĂŶĚƚƌĂŶƐƉĂƌĞŶƚŶŽƟĐĞŽĨƐŝŐŶŝĮĐĂŶƚŝƐƐƵĞƐ
To ensure fair and well considered handlingŽĨƵƐƚŽŵĞƌĐůĂŝŵƐĂŶĚͬŽƌŽƚŚĞƌƌĞůĞǀĂŶƚŝŶƚĞƌŶĂůŝƐƐƵĞƐ͕ŵŝŶŝŵŝǌŝŶŐƉŽƚĞŶƟĂůŝŵƉĂĐƚƐ
To ŐƌŽǁƚŚĞ;ƌŝƐŬͿĐŽŶƐĐŝŽƵƐŶĞƐƐ
ŽĨƚŚĞĞŶƟƌĞKƌŐĂŶŝǌĂƟŽŶRISK MANAGEMENT SYSTEM

The main goals considered for the

The Risk Management Process is a tool toŵĂŶĂŐĞƚŚĞŚŝŐŚƉŽƚĞŶƟĂůĨƵƚƵƌĞƌŝƐŬŝŶĂĚǀĂŶĐĞ͘/ŶĐĂƐĞƚŚĞĐĂƐĞŚĂƉƉĞŶĞĚĂůƌĞĂĚǇǁŝƚŚŽƵƚĂůĞƌƚĂŶĚƚŚĞŶƚŚĞƌŝƐŬƉƌŽďĂďŝůŝƚǇŝƐϭϬϬй;ďĞĐĂƵƐĞŝƚŚĂƐĂůƌĞĂĚǇͿƚŚŝƐƉƌŽĐĞƐƐƐŚĂůůďĞƵƐĞĚƚŽĂŶĂůǇǌĞ
ŝƚƐĐŽŶŶĞĐƚĞĚŝŵƉĂĐƚƐŵĂŶĂŐŝŶŐĂŶĚŵŝŶŝŵŝǌŝŶŐƚŚĞ ƌĞůĂƚĞĚ ĨƵƚƵƌĞ ĐŽŶƐĞƋƵĞŶĐĞƐ͘ /Ŷ ĐĂƐĞ ƚŚŝƐĐĂƐĞǁŝůůŚĂǀĞŶŽĐŽŶŶĞĐƚĞĚĐŽŶƐĞƋƵĞŶĐĞƐ͕ŝƚ͛Ɛ
a fact and TN management shall follow theƌĞŐƵůĂƌ ďƵƐŝŶĞƐƐ ŇŽǁ ƉƌŽĐĞƐƐ ƚŽ ŵĂŶĂŐĞ ĂŶĚƚŽŶĞŐŽƟĂƚĞƚŚĞƐƉĞĐŝĮĐŽƵƚĐŽŵĞ͘RISK
MANAGEMENT

101

Risk Management Process are:
The Risk Management
Process approach isĂƉƉůŝĐĂďůĞƚŽĂůůƉŽƚĞŶƟĂů
issues connected to each
aspect of the business;KƉĞƌĂƟŽŶƐ͕YƵĂůŝƚǇ͕WƵƌĐŚĂƐŝŶŐ͕^ƵƐƚĂŝŶĂďŝůŝƚǇ͕dĂǆ͕ĞƚĐͿŝ͘Ğ͘ĐƵƐƚŽŵĞƌĐůĂŝŵƐͬĂůĞƌƚƐ͕ǁĂƌƌĂŶƚǇĮĞůĚƌĞƚƵƌŶƐ͕ŝŶƚĞƌŶĂůǁĂƐƚĞǀĂůƵĞ͕ŝŶƚĞƌŶĂůĚĞĨĞĐƚĂŶĂůǇƐŝƐ͕ƐƵƉƉůŝĞƌƋƵĂůŝƚǇƉĞƌĨŽƌŵĂŶĐĞ͕ŝŶƚĞƌŶĂůŽƌĞǆƚĞƌŶĂůĂƵĚŝƚƌĞƐƵůƚƐ͕ŵĂƚĞƌŝĂůƐŚŽƌƚĂŐĞͲĐŽƐƚƐƵƉƉůǇŝƐƐƵĞƐ͕ĐƵƐƚŽŵĞƌŝŶƐŽůǀĞŶĐǇ͕ĞŶǀŝƌŽŶŵĞŶƚĂŶĂůǇƐŝƐ͕ĞƚĐ͘To use the IATF Quality
SystemƚŽĚĞĮŶĞprocedures and rules
to be applied (referringƚŽŝŶƚĞƌŶĂƟŽŶĂůƐƚĂŶĚĂƌĚƐĨŽƌZŝƐŬDĂŶĂŐĞŵĞŶƚͿ

TSUBAKI NAKASHIMALOCAL PLANTS ;WŽƚĞŶƟĂůƌŝƐŬƐͿ

Risk Management processŇŽǁƐŚŽƵůĚmirror

TN OrganizationǁŝƚŚůŽĐĂů͕ƌĞŐŝŽŶĂů͕ŐůŽďĂů͕macro-region͕
corporate levelsdŽĂƉƉůǇPDCA cycle andRisk Potential Severity,
defining the time frame
to complete RiskDĂŶĂŐĞŵĞŶƚWƌŽĐĞƐƐ͘RISK
MANAGEMENTdŽďĞƩĞƌĚĞĮŶĞ'ůŽďĂů&ƵŶĐƟŽŶƐ͛ƌŽůĞŝŶƐŚŽƌƚͲŵĞĚŝƵŵĂŶĚůŽŶŐƚĞƌŵ͕raising Organization
awareness ƚŚƌŽƵŐŚƐƉĞĐŝĮĐtraining sessions ;ŝ͘Ğ͘ĚƵƌŝŶŐƚŚĞŶĞǆƚ'ůŽďĂůDĞĞƟŶŐƐͿĂŶĚĚĂŝůǇƐƵƉƉŽƌƚ͘

RELATED GLOBALFUNCTIONSRISKASSESSMENTRISKANAYSISRISK MANAGEMENT SYSTEM

Main pillars of

REGIONS& DIVISIONSRISK MANAGEMENTCOMMITTEETSUBAKI NAKASHIMAMANAGEMENT COMMITTEERISKMANAGEMENT

103

The Group operates, trains, and secures human resourcesďĂƐĞĚ ŽŶ ƵŶŝĮĞĚ ƌƵůĞƐ͕ ǁŝƚŚ ƚŚĞ Ăŝŵ ŽĨ ĞŶƐƵƌŝŶŐ ƚŚĂƚ ĂůůĞŵƉůŽǇĞĞƐ ǁŽƌŬŝŶŐ ĂƌŽƵŶĚ ƚŚĞ ǁŽƌůĚ ĐŽŶƟŶƵĞ ƚŽ movetoward the future as a single One Team. Our Group hasĚĞǀĞůŽƉĞĚƚŚƌŽƵŐŚƚŚĞĂĐƋƵŝƐŝƟŽŶŽĨĐŽŵƉĂŶŝĞƐŝŶ:ĂƉĂŶĂŶĚ ŽǀĞƌƐĞĂƐ͘ /Ŷ ƉĂƌƟĐƵůĂƌ͕ ƚŚĞ ĐŽƌƉŽƌĂƚĞ ĐƵůƚƵƌĞ ŽĨ ƚŚĞ
W ĚŝǀŝƐŝŽŶ ŽĨ EE ŽƌƉŽƌĂƟŽŶ ŽĨ ƚŚĞ hŶŝƚĞĚ ^ƚĂƚĞƐ͕ǁŚŝĐŚũŽŝŶĞĚƚŚĞ'ƌŽƵƉŝŶϮϬϭϳ͕ĚŝīĞƌĞĚŐƌĞĂƚůǇĨƌŽŵƚŚĞĐƵůƚƵƌĞ ƚŚĂƚ ŚĂĚ ďĞĞŶ ŶƵƌƚƵƌĞĚ ŵĂŝŶůǇ Ăƚ dƐƵďĂŬŝEĂŬĂƐŚŝŵĂ͛Ɛ ŚĞĂĚƋƵĂƌƚĞƌƐ ŝŶ :ĂƉĂŶ͕ ĂŶĚ ŝƚ ďĞĐĂŵĞ
ŶĞĐĞƐƐĂƌǇ ƚŽ ĚĞǀĞůŽƉ ĂŶĚ ĚĞƉůŽǇ ƵŶŝĮĞĚ ƌƵůĞƐ͕ ĐŽƌƉŽƌĂƚĞ
ĐƵůƚƵƌĞ͕ ĂŶĚ ŽƌŐĂŶŝǌĂƟŽŶĂů ƐǇƐƚĞŵƐ ĨŽƌ ƚŚĞ ĞŶƟƌĞ 'ƌŽƵƉ͘Ɛ Ă ƌĞƐƵůƚ ŽĨ ƐƵďƐĞƋƵĞŶƚ ĞīŽƌƚƐ͕ ǁĞ ĨŽƌŵƵůĂƚĞĚ ƵŶŝĮĞĚ
ƌƵůĞƐ ;One Team Management System) based on theĐŽŶĐĞƉƚ ŽĨ ͞KŶĞ DĂŶĂŐĞŵĞŶƚ н KŶĞ KƉĞƌĂƟŽŶ сKŶĞ dĞĂŵ͟ ĂŶĚ KŶĞ dƐƵďĂŬŝ EĂŬĂƐŚŝŵĂ ĐƵůƚƵƌĞ ƚŚĂƚĞŵďƌĂĐĞƐ ĂŶĚ ŚĂƌŵŽŶŝǌĞƐ ĚŝīĞƌĞŶĐĞƐ ŝŶ ƌĂĐĞ͕ ůĂŶŐƵĂŐĞ͕ĂŶĚ ĐƵůƚƵƌĞ͘ /Ŷ ĂĚĚŝƟŽŶ͕ ďĂƐĞĚ ŽŶ ŽƵƌ KŶĞ dĞĂŵDĂŶĂŐĞŵĞŶƚ ^ǇƐƚĞŵ͕ ǁĞ ƌĞƐƉĞĐƚ ĚŝǀĞƌƐŝƚǇ ĂŶĚ ƉƌŽŵŽƚĞƚŚĞĐƌĞĂƟŽŶŽĨǁŽƌŬƉůĂĐĞƐƚŚĂƚƌĞĂůŝǌĞƚŚĞ Vision Zero.

OUR COMMITMENT TO PEOPLEOUR COMMITMENT
TO PEOPLE

105

Respect for diversity is a cornerstone of Tsubaki Nakashima
Management Philosophy, and our personnel policies reflect it.
Diversity is the inclusion of individuals of different genders, national
origins, religions, regions, educations, social statuses, and LGBT,
regardless of whether these traits are innate or acquired, visible, or invisible.
The Group has manufacturing bases not only in Japan, but also in the
United States, Italy, Poland, Slovakia, the United Kingdom, Bosnia, theNetherlands, China, Thailand, India, and Taiwan, and in each of thesecountries, local employees take the lead in conducting activities. We
aim to utilize diverse values in our business and promote diversity byappointing suitable personnel to Leadership Positions regardlessof nationality, promoting the activities of women, and employing people
with disabilities. In our Group we have 31 different nationalities.

Diversity iskey, always.

OUR COMMITMENT TO PEOPLE

INCLUSIONAND DIVERSITY

107

MEDIAN AGE
BY REGION

DĞŶ ƐƟůů ƌĞƉƌĞƐĞŶƚ ϳϰй ŽĨ ƚŚĞ ĞŶƟƌĞ ƉŽƉƵůĂƟŽŶ ĂŶĚ ǁŽŵĞŶ Ϯϲй͖ dƐƵďĂŬŝ EĂŬĂƐŚŝŵĂ ŝƐ Ă ŵĂŶƵĨĂĐƚƵƌŝŶŐ
ĐŽŵƉĂŶǇ͕ ĂŶĚ ǁĞ ďĞůŝĞǀĞ ƚŚĂƚ ƚŚĞ ĞīŽƌƚƐ ŵĂĚĞ ŝŶ ƌŐŽŶŽŵŝĐƐ ĂůůŽǁĞĚ ŵĂŶǇ ǁŽŵĞŶ ƚŽ ũŽŝŶ ƵƐ͕ ĂůƐŽŝŶĂĐƟǀŝƟĞƐƚŚĂƚǁĞƌĞŚŝƐƚŽƌŝĐĂůůǇƉĞƌĨŽƌŵĞĚďǇŵĂůĞƉĞƌƐŽŶŶĞů͘dŚĞŵĞĚŝĂŶĂŐĞŝŶŽƵƌWůĂŶƚƐŐƵĂƌĂŶƚĞĞƐĞǆƉĞƌŝĞŶĐĞ͕ŬŶŽǁůĞĚŐĞĂŶĚĐŽŵŵŝƚŵĞŶƚ͕ĞǀĞƌǇǁŚĞƌĞ
2020

2021

AGE

46
MEN

OUR COMMITMENT TO PEOPLE

WORKFORCE COMPOSITION
AND SERVICE PERIOD

34,5

JAPAN
GCB
EUROPECHINAAMERICAS

WOMEN

22,5%

45%

67,5%

90%

/Ŷ ŵŽƐƚ WůĂŶƚƐ͕ ǁŽŵĞŶ ƉůĂǇ ŬĞǇ ŵĂŶĂŐĞƌŝĂů ƌŽůĞƐ ĂƐ ŵĂŶĂŐĞƌƐ͕ ĚĞƉĂƌƚŵĞŶƚ ŚĞĂĚƐ͕ ĂŶĚ ƐƵƉĞƌǀŝƐŽƌƐ͖ ŝŶDŽƵŶƚĂŝŶ ŝƚǇ ;ŵĞƌŝĐĂƐͿ͕ ZĂǇŽŶŐ ;dŚĂŝůĂŶĚͿ͕ tŽƌƚŚŝŶŐ ;ƵƌŽƉĞͿ͕ <ƵŶƐŚĂŶ ;ŚŝŶĂͿ ǁŽŵĞŶ ŝŶ ŵĂŶĂŐĞƌŝĂůƉŽƐŝƟŽŶƐĂƌĞĞǆĐĞĞĚŝŶŐϰϬйŽĨƚŚĞƚŽƚĂů͘OUR COMMITMENT
TO PEOPLE

23

11,5

JAPAN

GCB

EUROPECHINAAMERICAS>ĞŶŐƚŚŽĨƐĞŶŝŽƌŝƚǇĚĞƉĞŶĚƐŽŶƚŚĞƉůĂŶƚ͛ƐĂŐĞ͕ďƵƚŝŶŐĞŶĞƌĂůǁĞĐĂŶƐĂǇƚŚĂƚŝŶŵŽƐƚŽĨŽƵƌĨĂĐƚŽƌŝĞƐƚƵƌŶŽǀĞƌŝƐŶŽƚĂŶŝƐƐƵĞĂŶĚ͕ŝŶŐĞŶĞƌĂů͕ŝƚ͛ƐŶŽƚŝŶŇƵĞŶĐŝŶŐ
ƚŽŽ ŵƵĐŚ ƚŚĞ ŐŽĂůƐ ĂŶĚ ƚĂƌŐĞƚƐ ƐĞƚ ƵƉ͘ /Ŷ ŵĞƌŝĐĂƐ ZĞŐŝŽŶ ǁĞ ŽďƐĞƌǀĞĚ ĂĐŽŶƐŝƐƚĞŶƚ ŝŶĐƌĞĂƐĞ ŽĨ ƚƵƌŶŽǀĞƌ ĚƵĞ ƚŽ ƚŚĞ ƵŶĨĂǀŽƌĂďůĞ ;ĨŽƌ ƚŚĞ ŽŵƉĂŶǇͿ>ĂďŽƵƌŵĂƌŬĞƚ͘109

PEOPLEDEVELOPMENT&ŽƌƚŚĞĚĞǀĞůŽƉŵĞŶƚŽĨŽƵƌWĞŽƉůĞ͕ǁĞŚĂǀĞĞƐƚĂďůŝƐŚĞĚĂŶĞĚƵĐĂƟŽŶ
ĂŶĚ ƚƌĂŝŶŝŶŐ ƐǇƐƚĞŵ ĂŶĚ ƉƌŽǀŝĚĞ ŽƉƉŽƌƚƵŶŝƟĞƐ ĨŽƌ Ăůů ĞŵƉůŽǇĞĞƐ
ƚŽ acquire the knowledge, skills, and techniques necessary to
perform their duties accurately and promptly͕ ďŽƚŚ ŝŶƐŝĚĞ ĂŶĚŽƵƚƐŝĚĞ ƚŚĞ ǁŽƌŬƉůĂĐĞ͘ dƐƵďĂŬŝ EĂŬĂƐŚŝŵĂ ĐĂĚĞŵǇ ;dE ĐĂĚĞŵǇͿĂŝŵƐƚŽĞŶŚĂŶĐĞƚŚĞĐƵƐƚŽŵĞƌǀĂůƵĞǁĞĐƌĞĂƚĞ͘dŽƚŚŝƐĞŶĚ͕ǁĞƚĞĂĐŚ
ŽƵƌDĂŶĂŐĞƌƐĂŶĚdĂůĞŶƚƐďĂƐŝĐƚĞĐŚŶŽůŽŐǇĂŶĚƐŬŝůůƐĂŶĚŚĂǀĞƚŚĞŵĞǆƉĞƌŝĞŶĐĞ DŽŶŽǌƵŬƵƌŝ ;ƚŚĞ Ăƌƚ ĂŶĚ ƐĐŝĞŶĐĞ ŽĨ ŵĂŶƵĨĂĐƚƵƌŝŶŐͿ ďǇƉĞƌĨŽƌŵŝŶŐƐƉĞĐŝĮĐŵĂŶƵĨĂĐƚƵƌŝŶŐĂŶĚŵĂŶĂŐĞƌŝĂůƚĂƐŬƐƐƚĞƉďǇƐƚĞƉ͘dŚŝƐ ŚĞůƉƐ ƚŚĞŵ ƚĂĐŬůĞ ũŽďƐ ĨƌŽŵ ĚŝīĞƌĞŶƚ ĂŶŐůĞƐ͘ ŵƉůŽǇĞĞƐ ĂůƐŽůĞĂƌŶ ďǇ ŵĂƐƚĞƌŝŶŐ ĞƐƐĞŶƟĂů ƐŬŝůůƐ ĨŽƌ ŵĂŬŝŶŐ ŵĂŶƵĨĂĐƚƵƌŝŶŐ ŵŽƌĞĞĸĐŝĞŶƚǁŝƚŚƚŚĞtĞ ďĞůŝĞǀĞ ƚŚĂƚ ƚŚĞ Value ŽĨ ŽƵƌ DĂŶĂŐĞƌƐ ƐŚŽƵůĚ ďĞ ƚŚĞ ƌĂƟŽ ďĞƚǁĞĞŶ Competencies,
Humility and Ability ƚŽ ŽƉĞƌĂƚĞ͘ ,ŽǁĞǀĞƌ ŽŶůǇ ŽƵƌ Attitude ĐĂŶ ďĞ ƚŚĞ ƌŝŐŚƚ ŵƵůƟƉůŝĞƌƚŽ ĂĐŚŝĞǀĞ Žƌ ŶŽƚ ƚŚĞ ƐƵĐĐĞƐƐ͘ dŚŝƐ ŝƐ ƚŚĞ ƌĞĂƐŽŶ ǁŚǇ dƐƵďĂŬŝ EĂŬĂƐŚŝŵĂ ĚĞĐŝĚĞĚ ƚŽ ůĂƵŶĐŚ
ĂŶĂŵďŝƟŽƵƐ<ŶŽǁůĞĚŐĞWůĂƞŽƌŵƚŽĞŶƐƵƌĞĂĐŽŵŵŽŶƚĞĐŚŶŝĐĂůĂŶĚŵĂŶĂŐĞƌŝĂůŬŶŽǁůĞĚŐĞ͖ŝŶƚŚĞ ĮƌƐƚ ƌŽƵŶĚ ǁĞ ŝŶǀŽůǀĞĚ WůĂŶƚ ŵĂŶĂŐĞƌƐ͕ ǁŚŽ ƉůĂǇ ĂŶ ŝŵƉŽƌƚĂŶƚ ƌŽůĞ ŝŶ ƚŚĞĞǆĞĐƵƟŽŶ ŽĨ ďƵƐŝŶĞƐƐ Ăƚ ĞĂĐŚ ƐŝƚĞ͕ ĂŶĚ dĂůĞŶƚĞĚ ŵƉůŽǇĞĞƐ ;ƐĞůĞĐƚĞĚ ĂŌĞƌ Ă ƐĞǀĞƌĞ ƉƌŽĐĞƐƐ
ĂŶĚƐƉĞĐŝĮĐKƌŐĂŶŝǌĂƟŽŶĂůŽŵƉĞƚĞŶĐǇƐƐĞƐƐŵĞŶƚƐͿ͕ǁŝƚŚŽŶůŝŶĞĂŶĚ͞ŝŶƉƌĞƐĞŶĐĞ͞ĐŽƵƌƐĞƐ
ĐŽŶĐĞƌŶŝŶŐWůĂŶƚDĂŶĂŐĞŵĞŶƚ͕WĞŽƉůĞŵĂŶĂŐĞŵĞŶƚ͕ƚŚŝĐƐ͕^ĂĨĞƚǇĂŶĚ,ĞĂůƚŚ͕ŶǀŝƌŽŶŵĞŶƚ͕YƵĂůŝƚǇĂŶĚďĂƐŝĐ&ŝŶĂŶĐĞ͘ĂĐŚƉůĂŶƚĚĞƐŝŐŶƐĂƉĞŽƉůĞĞǀĞůŽƉŵĞŶƚƉůĂŶĂƚĂůůƚŚĞůĞǀĞůƐ͕ŝŶĂůŝŐŶŵĞŶƚƐǁŝƚŚŽƵƌYƵĂůŝƚǇDĂŶĂŐĞŵĞŶƚ^ǇƐƚĞŵĂŶĚ'ůŽďĂů^ƵƐƚĂŝŶĂďŝůŝƚǇ^ǇƐƚĞŵ͘TN

100% OF OUR EMPLOYEES

took part in training courses, during2021, for an average of more than 40hours per person, 60% of which werededicated to Compliance, Health, Safety
and Environment.

UNIVERSITY PARTNERSHIPS

2020 2021

INTERNSHIP STUDENTS
INDUSTRIAL PhD PROGRAM

4
0
1

8
3
1

UNIVERSITY PROGRAMS

5

12 140%RESEARCH GRANTSOUR COMMITMENT
TO PEOPLE

V = (C2+h+A) x A

OUR COMMITMENT TO PEOPLE

Tsubaki Nakashima holds a variety of (virtual) meetings andseminars for representatives from our global sites. Some areĨƵŶĐƟŽŶ ƐƉĞĐŝĮĐ͕ ĨŽƌ ĂƌĞĂƐ ƐƵĐŚ ĂƐ ŵĂŶƵĨĂĐƚƵƌŝŶŐ͕ ƋƵĂůŝƚǇ͕ĞŶŐŝŶĞĞƌŝŶŐ͕ ƐĂůĞƐ͕ ĮŶĂŶĐĞ ĂŶĚ ĂĐĐŽƵŶƟŶŐ͕ ,Z͕ ƐƵƐƚĂŝŶĂďŝůŝƚǇ͘KƚŚĞƌƐ ĂƌĞ ĨŽƌ ŐůŽďĂů ƉƌŽũĞĐƚƐ ŝŶǀŽůǀŝŶŐ ŵĂƩĞƌƐ ƐƵĐŚ ĂƐ^ƵƐƚĂŝŶĂďŝůŝƚǇ ƐǇƐƚĞŵƐ͕ YƵĂůŝƚǇ DĂŶĂŐĞŵĞŶƚ ^ǇƐƚĞŵ͕ ^ƵƐƚĂŝŶĂďŝůŝƚǇDŽŶŽǌƵŬƵƌŝWƌŽũĞĐƚƐĂŶĚƐŽŽŶ͘ǀĞƌǇǁĞĞŬ͕ĂƚůĞĂƐƚŽŶĐĞ͕ƚŚĞƌĞǁĞƌĞǀŝƌƚƵĂů ŵĞĞƟŶŐƐ ǁŝƚŚ Ăůů ĞƐƚĂďůŝƐŚŵĞŶƚƐ ƚŽ ĚŝƐĐƵƐƐ ƚŚĞ ĞǀŽůƵƟŽŶŽĨ ƚŚĞ ƉĂŶĚĞŵŝĐ͕ ĐŽƵŶƚĞƌŵĞĂƐƵƌĞƐ͕ ĂŶĚ ƚŽ ĂƐƐŝƐƚ ĐŽůůĞĂŐƵĞƐ͘

VARIATION

100%
300%
0%

111

Respect and Honest
Communication

Integrity

Courage
Customer Focus

Continuous Innovation

DELIVERY
Results Orientation
Driving Change

Influence
Vision, purpose
and relationships

Strategic Thinking

GROWTH

Value-Based
Decision Making

CulturalSensitivity

INSPIRATIONPEOPLE

Comfort around authority

People Management

OUR COMMITMENT
TO PEOPLE

Conflict Management

FROM MANAGEMENT PRINCIPLESTO MANAGEMENTCOMPETENCIESGLOBAL TALENTdƐƵďĂŬŝEĂŬĂƐŚŝŵĂŚĂƐƐŝƚĞƐĂƌŽƵŶĚƚŚĞǁŽƌůĚƚŽĂĐĐƵƌĂƚĞůǇŝĚĞŶƟĨǇĂŶĚƐǁŝŌůǇĂŶĚŇĞǆŝďůǇŵĞĞƚƚŚĞ ĐŚĂŶŐŝŶŐ ŶĞĞĚƐ ŽĨ ĐƵƐƚŽŵĞƌƐ Ăƚ ĚŝīĞƌĞŶƚ ƟŵĞƐ ĂŶĚ ŝŶ ĚŝīĞƌĞŶƚ ƌĞŐŝŽŶƐ͘ The TN
Group currently employs about 3,000 people.  ŚŝŐŚͲƉĞƌĨŽƌŵŝŶŐ͕ ĚŝǀĞƌƐĞ ǁŽƌŬĨŽƌĐĞ
ŝƐĞƐƐĞŶƟĂůĨŽƌĂĐŚŝĞǀŝŶŐǀĞƌƟĐĂůŝŶƚĞŐƌĂƟŽŶ͕ŵĂŬŝŶŐŝƚǀŝƚĂůĨŽƌŽƵƌŽƉĞƌĂƟŽŶƐĚŝǀŝƐŝŽŶƐŝŶ:ĂƉĂŶĂŶĚ ĐŽŵƉĂŶŝĞƐ ŽǀĞƌƐĞĂƐ ƚŽ ďĞ ŽŶ ƚŚĞ ƐĂŵĞ ƉĂŐĞ ŝŶ ƚĞƌŵƐ ŽĨ ďƵƐŝŶĞƐƐ ǀŝƐŝŽŶ ĂŶĚ ƉŽůŝĐŝĞƐ͘
Organizational Capability Assessment ƉƌŽĐĞƐƐ ŝƐ Ă ƉƌŽŐƌĂŵ ƐƵƉƉŽƌƟŶŐ ƚŚĞ ŝĚĞŶƟĮĐĂƟŽŶŽĨdĂůĞŶƚƐƚŽďĞƚƌĂŝŶĞĚĂŶĚĂĐĐŽŵƉĂŶŝĞĚƚŽƚŚĞŶĞǆƚƐƚĞƉƐŽĨƚŚĞŝƌĐĂƌĞĞƌŝŶŽƵƌŽŵƉĂŶǇ͘OUR COMMITMENT TO PEOPLELEADING BY EXAMPLESELECTING MANAGERS,DIRECTORS AND EXECUTIVESdƐƵďĂŬŝEĂŬĂƐŚŝŵĂƐĞĞŬƐƚŽƉƵƚŝƚƐĞůĨŝŶƚŚĞďĞƐƚƉŽƐŝƟŽŶƚŽĂĐŚŝĞǀĞƚŚĞDŝĚͲdĞƌŵ'ŽĂůƐďǇƌĞǀŝĞǁŝŶŐ
ŽƌŐĂŶŝǌĂƟŽŶƐ͕ ƌŽůĞƐ͕ ĂŶĚ ŚƵŵĂŶ ƌĞƐŽƵƌĐĞƐ ĨƌŽŵ Ă ŐůŽďĂů ƉĞƌƐƉĞĐƟǀĞ ĂŶĚ ŵĂŬŝŶŐ ĂĚĂƉƚĂƟŽŶƐƚŚĂƚďĞƐƚƐĞƌǀĞŽƵƌďƵƐŝŶĞƐƐƐƚƌĂƚĞŐŝĞƐĂŶĚƚŚĞĞǀĞƌͲĐŚĂŶŐŝŶŐďƵƐŝŶĞƐƐĞŶǀŝƌŽŶŵĞŶƚ͘dŚĞĐŽŵƉĂŶǇƐƉĞĐŝĮĞƐ ƚŚĞ ƌŽůĞƐ ĂŶĚ ƌĞƋƵŝƌĞŵĞŶƚƐ ĨŽƌ ŬĞǇ ƉŽƐŝƟŽŶƐ ŝŶ ƚŚĞ ŐůŽďĂů dE 'ƌŽƵƉ͘ /ƚ ĞƐƚĂďůŝƐŚĞƐ
ƐƵĐĐĞƐƐŝŽŶƉůĂŶƐĂŶĚŚĂƐƐǇƐƚĞŵƐŝŶƉůĂĐĞƚŽĞŶƐƵƌĞƚŚĂƚƚŚĞďĞƐƚƉĞŽƉůĞĨŽƌƚŚĞƐĞƉŽƐŝƟŽŶƐĂƌĞƐĞůĞĐƚĞĚǁŝƚŚŽƵƚƌĞŐĂƌĚƚŽĐŽŶƐŝĚĞƌĂƟŽŶƐƵĐŚĂƐĂŐĞ͕ŐĞŶĚĞƌ͕ĂŶĚŶĂƟŽŶĂůŝƚǇ͘/ŶĞĂĐŚĞŶƟƚǇ͕ƉĞƌƐŽŶŶĞůƌĞǀŝĞǁƐ(Organizational Competency Assessment and Performance Evaluation)ƚŚĂƚĨŽĐƵƐƉƌŝŵĂƌŝůǇŽŶŵĂŶĂŐĞƌƐŝŶĞĂĐŚďƵƐŝŶĞƐƐĂŶĚĨƵŶĐƟŽŶĂƌĞĐŽŶĚƵĐƚĞĚƚŽŝĚĞŶƟĨǇĐĂŶĚŝĚĂƚĞƐĨŽƌĨƵƚƵƌĞŵĂŶĂŐĞŵĞŶƚƉŽƐŝƟŽŶƐ͘

113

ABI

LIT

RNA
N

Y

ION

AT
OTI

NEG

MOTUS 4

COBASIC FINANCE

MM

UN

20
plant

E

representedNC

29
talents

LIA

7regions

YEAR 1TN ACADEMY

MP

49
participants

.0

CO

ICA
TIO

N

QUALITY

OUR COMMITMENT TO PEOPLE

TAI
N

GOVE

SUS

TY

SAFE

The TN Academy is the TsubakiEĂŬĂƐŚŝŵĂWůĂƞŽƌŵƚŽĞŶƐƵƌĞĂ ĐŽŵŵŽŶ ƚĞĐŚŶŝĐĂů ĂŶĚŵĂŶĂŐĞƌŝĂůĚĞǀĞůŽƉŵĞŶƚ͘dŚĞdEĐĂĚĞŵǇĐŽŶĐĞƉƚŝƐďĂƐĞĚŽŶ ŝĚĞŶƟĨǇŝŶŐ ƚŚĞ dƐƵďĂŬŝEĂŬĂƐŚŝŵĂĐƵůƚƵƌĞ͕ƌƵůĞƐĂŶĚƚŽŽůƐĂŶĚƉƌĂĐƟĐĞƐƚŽďĞƵƐĞĚŝŶ ĞĂĐŚ ŽƌŐĂŶŝǌĂƟŽŶ͘ /ƚ ŝƐĂŝŵĞĚĂƚĂƐĞůĞĐƚĞĚĂƵĚŝĞŶĐĞŽĨ ƉĂƌƟĐŝƉĂŶƚƐ ǁŚŽ͕ ŝŶ ƚŚĞĨŽůůŽǁŝŶŐ ǇĞĂƌ͕ ǁŝůů ŚĂǀĞ ƚŽĚŝƐƐĞŵŝŶĂƚĞ ǁŝƚŚŝŶ ƚŚĞŝƌƌĞƐƉĞĐƟǀĞŽƌŐĂŶŝǌĂƟŽŶƐǁŚĂƚƚŚĞǇ ŚĂǀĞ ůĞĂƌŶĞĚ Ͳ ƐŽƌƚ ŽĨŵďĂƐƐĂĚŽƌƐ Ͳ ͕ ƵƐŝŶŐ Ăůů ƚŚĞŵĂƚĞƌŝĂů ĂůƌĞĂĚǇ ƉƌĞƉĂƌĞĚĂŶĚ ĂǀĂŝůĂďůĞ͘ /Ŷ ƚŚŝƐ ǁĂǇ͕ĚƵƌŝŶŐƚŚĞĐŽƵƌƐĞŽĨƚŚĞDdWϮϬϮϭͲϮϬϮϯ͕ ƚŚĞ ĐƵůƚƵƌĞ ǁŝůůďĞ ĚŝīƵƐĞĚ ĂŶĚ ĐŽŵƉůĞƚĞůǇĂďƐŽƌďĞĚ ďǇ Ăůů ƉĂƌƟĐŝƉĂŶƚƐ͘/Ŷ ϮϬϮϭ ĂŶ ŝŵƉŽƌƚĂŶƚ ƉƌŽũĞĐƚŽĨƌĞƐĞĂƌĐŚĂŶĚŝŶŶŽǀĂƟŽŶŽĨƉƌŽĚƵĐƚƐĂŶĚƉƌŽĐĞƐƐĞƐĂŶĚŽĨƉƌĞƉĂƌĂƟŽŶ ĨŽƌ ƚŚĞ ŝŶƐĞƌƟŽŶŽĨ ŶĞǁ ĞŶŐŝŶĞĞƌƐ ǁĞŶƚ ŽŶ͕ŝŶǀŽůǀŝŶŐ ƚŚĞ hŶŝǀĞƌƐŝƚǇ ŽĨ dƵƌŝŶ
;/ƚĂůǇͿ ĂŶĚ ƵďůŝŶ ;/ƌĞůĂŶĚͿ͘

CE

TN

FROM
CORPORATEYEAR 2
TN ACADEMYDEPLOYMENT

managers
115dŚĞĐƌŝƚĞƌŝĂĨŽƌĞǀĂůƵĂƟŶŐĞŵƉůŽǇĞĞƐǁŚŽǁŽƌŬĂĨƵůůĚĂǇĂŶĚĞŵƉůŽǇĞĞƐǁŚŽǁŽƌŬƐŚŽƌƚĞƌŚŽƵƌƐĂƌĞŝĚĞŶƟĐĂů͘dŚŝƐǁĂƐĚŽŶĞƚŽĞŶƐƵƌĞĂůĞǀĞůƉůĂǇŝŶŐĮĞůĚǁŚĞŶŝƚĐŽŵĞƐƚŽĂĚǀĂŶĐĞŵĞŶƚĂŶĚƉƌŽŵŽƟŽŶƐ͘ŵƉůŽǇĞĞƐĂƌĞĞǀĂůƵĂƚĞĚ ;WĞƌĨŽƌŵĂŶĐĞ ǀĂůƵĂƟŽŶ ĂŶĚ ŽŵƉĞƚĞŶĐǇ ƐƐĞƐƐŵĞŶƚ ƉƌŽĐĞƐƐͿ ďĂƐĞĚ ŽŶ ƚŚĞŝƌ ĂĐŚŝĞǀĞŵĞŶƚƐ ǁŝƚŚreƐƉĞĐƚ ƚŽ ŐŽĂůƐ ;Goals and Objectives ProcessͿ ĂŶĚ  ďĂƐĞĚ ŽŶ ƚŚĞŝƌ ďĞŚĂǀŝŽƵƌƐ ĂŶĚ ĐŽŵƉĞƚĞŶĐĞƐ͕ ǁŝƚŚƌĞƐƉĞĐƚƚŽƚŚĞϭϱdƐƵďĂŬŝEĂŬĂƐŚŝŵĂŽŵƉĞƚĞŶĐŝĞƐ͕ĚŝǀŝĚĞĚŝŶϱĐĂƚĞŐŽƌŝĞƐůŝŶŬĞĚƚŽƚŚĞDĂŶĂŐĞƌŝĂů^ƚĂƚĞŵĞŶƚƐ͘

PURPOSES
Leverage a single toolĨŽƌŝĚĞŶƟĮĐĂƟŽŶŽĨƉĞƌĨŽƌŵĂŶĐĞƌĞůĂƟǀĞƚŽĂƐƐŝŐŶĞĚŐŽĂůƐĂŶĚƌĞůĞǀĂŶƚĐŽŵƉĞƚĞŶĐŝĞƐ
for the prior year

SMART

Everyone hasŐŽĂůƐƚŚĂƚƐƵƉƉŽƌƚoverall Goals

Create, maintainaligned globalƉĞƌĨŽƌŵĂŶĐĞĞǀĂůƵĂƟŽŶƉƌŽĐĞƐƐ
ǀĂůƵĂƚĞĂŶĚĚĞǀĞůŽƉone set ofcompetencies ĂĐƌŽƐƐdƐƵďĂŬŝEĂŬĂƐŚŝŵĂ

Simplicity

PURPOSES OF THE GOALS AND OBJECTIVE PROCESSTranslate financial targets
in individual and specific tasks
Address the issues we have in every organization(e.g.: Quality, Forecast accuracy, OEE, Productivity…)

Goals must be connectedto the strategy (MTP) and BP

Tsubaki Nakashima is serious about keeping all forms of discrimination and unfair
practices out of its operations around the world. This stance is reflected in ourparticipation in the United Nations Global Compact and in the Tsubaki Nakashima
Group Policies regarding Human Rights and Labor Standards, which articulates Tsubaki
Nakashima’s strong convictions in areas such as respect for human rights, preventionof all forms of harassment and discrimination, respect for local culture and customs,
prohibition of child and forced labor, and maintenance of positive labor-management
relations. Tsubaki Nakashima Human Resources Function, working in concert with the
HR departments of our global affiliates, guides initiatives to prevent humanrights abuses, discrimination, and unjust labor practices. Tsubaki Nakashima has
identified human rights risks such as child labor, forced labor, other exploitative labor,
workers’ rights, labor conditions, discrimination, and harassment as business risks.
All personnel are regularly notified of disciplinary actions and other actions takenby the company in response to incidents of discrimination, unfair labor, harassmentand other human rights abuses to prevent similar incidents in the future.

OUR COMMITMENT TO PEOPLEEVALUATION SYSTEMRESPECTINGHUMAN RIGHTS

Goals must be the resultof a discussion between employee and manager
117

3.

INITIATIVES

WITH

FOR

4.

1. Training initiatives [ Bosnia ]2. Celebrating Dussehra Pooja [ India ]3. Christmas with kids [ Bosnia ]4. Experiences with schools [ Japan ]5. Staff picture [ India ]6. Staff picture [ Poland ]7. Boot truck discounts [ US ]8. Employee Satisfaction Survey

4.

PEOPLEOUR COMMITMENT TO PEOPLE

1.

5.

EMPLOYEESATISFACTIONSURVEY
2.

8.

6.
7.
119

SATISFACTIONSURVEYEMPLOYEESATISFACTIONSURVEYGOOUR COMMITMENT TO PEOPLEEMPLOYEEGOALS& OBJECTIVESPEPERFORMANCE EVALUATIONAND ORGANIZATIONALCAPABILITY ASSESSMENT

121

COVID 19

27,4%

42,6%

36,6%

21,6%

43,1%

8,4%

2021

2019

2021

59,5%

70,0%

86,9%

91,6%

79,7%

14,2% 6,1%

93,9%

11,8%

58,0%

66,3%

85,5%

88,2%

18,7%

6,2%

53,4%

75,1%

81,8%

93,8%

45,5%

19,3%

7,2%

76,2%

73,5%

93,9%

92,8%

28,4%

47,6%

17,2%

6,8%

52,1%

76,0%

79,7%

93,2%

COMPETENCES

30,1%

42,7%

19,3%

7,9%

63,1%

72,8%

87,3%

92,1%

TRUST

30,0%

39,2%

21,4%

9,4%

55,5%

69,2%

81,8%

90,6%

27 QUESTIONS
8 CATEGORIES

FULLY
AGREE

TEAM

27,7%

MY JOB

30,3%

44,8%

QUALITY

28,0%

SUSTAINABILITY

38,6%

AGREE

21,9%

PARTIALLYAGREE

EMPLOYEESATISFACTIONSURVEYOUR COMMITMENT TO PEOPLE

ETHICS2019

DISAGREE
123

OUR COMMITMENT TO PEOPLE

BX Award is recognizing the results of peers and colleagues in our group who haveachieved excellence and serve as inspiration and example for others. We want
to inspire and celebrate positive behaviour, results and successes. Thriving as a
Company and acting as a worldwide leader in our business segment can only berealized by showing exceptional results and world-class excellence in all the things wedo, independent from the role we fulfill in the Corporate – Region/Division – Plant orlevel of responsibility we hold. Our goal is that every employee step on board and feels
the spirit of being part of a winning team.

Tsubaki Nakashima aims to recognize and reward excellence across the Organization,
inspiring us to be better, to think bigger and to continue to grow, profitably
through the TN Best Plant Award, which recognizes the continuous pursuitof excellence in every aspect of the business including customers,
employees, and environment.

125

N

EUROPE

CHINA

11 19

NUMBEROF ADVANCEDNOMINATIONSBY REGION

12 12

N

JAPAN

AMERICA

17 54

11 30

120

GCB

4

NUMBEROF AWARDEDEMPLOYEESBY REGION

5OVERALL
YEAR REPORT
2021

6

2 10 1EUROPE

3

3 3
CHINA

NUMBER OF AWARDED EMPLOYEES PER QUARTER

3

7 14 12 21
JAPAN
Q1

Q2

0
Q3

2 1
GCB

2

15

55

27

26

20
12

10

Q4
Q1

Q2

Q3

Q4

BIGGEST CONTRIBUTORJAPAN
THE MOST CONSISTENTCHINA:
3 NOMINATIONS, 3 PLANTS,
3 EMPLOYEES EACH QUARTER
THE MOST AWARDEDEMPLOYEES IN 1 QUARTERJAPANPARTICIPATED IN EACH QUARTEREUROPE CHINA JAPANREGION WITH NO SUBMISSION
IN A QUARTER
AMERICANUMBEROF ADVANCEDNOMINATIONS

36

31

15 15 0 0
AMERICASSOME INTERESTING FACTSOUR COMMITMENT TO PEOPLEBX AWARD WINNERS
IN KONJIC (BOSNIA)TOTALNUMBEROF AWARDEDEMPLOYEES127

OUR COMMITMENT TO PEOPLE

KATSURAGIJAPANPEOPLEPROFIT

PLANET

Commitment
Courage
One Team’s attitude
TOTAL% of BP achievement
OP% 2021 > 2020
Flex vs. OT
TOTALContinuous improvement
Covid-19 containment
Use of resources
TOTAL

FINAL SCORE

4
3
3
3,3
4
4
4
4,0
4
3
3
3,3

TJB

10,7
129

OUR COMMITMENT TO PEOPLE

KATSURAGI
JAPAN

TJB

SUSTAINABLE DEVELOPMENT
AND USE OF NATURALRESOURCESRECYCLING OF SLUDGES“BRIQUETTING”

REUSE OF WASTED WATER
GREENER ADDITIVESIN COOLANTS

131

PEOPLEPROFIT

PLANET

Commitment
Courage
One Team’s attitude
TOTAL% of BP achievement
OP% 2021 > 2020
Flex vs. OT
TOTALContinuous improvement
Covid-19 containment
Use of resources
TOTAL

FINAL SCORE

4
4
4
4,0
4
3
4
3,7
4
4
4
4,0

TCT

OUR COMMITMENT TO PEOPLE

TAICANG
CHINA

11,7
133

OUR COMMITMENT TO PEOPLE

TAICANG
CHINA

TCT
135

PEOPLEPROFIT

PLANET

Commitment
Courage
One Team’s attitude
TOTAL% of BP achievement
OP% 2021 > 2020
Flex vs. OT
TOTALContinuous improvement
Covid-19 containment
Use of resources
TOTAL

FINAL SCORE

TCC
4
4
4
4,0
4
4
4
4,0
3
4
4
3,7

TCC ACHIEVED A HIGHERPROFITABILITY STEP BY STEP
TCC HAS ACHIEVED
A SIGNIFICATIVE INCREASEIN PRODUCTION VOLUMEAND PRODUCTIVITYOUR COMMITMENT TO PEOPLE

CHONGQINGCHINA

TCC COMPLETED A HUGE QUALITY
IMPROVEMENT IN EXTERNALRETURN / COMPLAINTSAND INTERNAL REWORK

11,7
137

OCCUPATIONAL

SAFETY&HEALTH

The core component of this effort is the Tsubaki Nakashima Global Sustainability System,
according to the 3 most important ISO Standards of which one of them is ISO 45001(OCCUPATIONAL HEALTH AND SAFETY), established in FY2018 and progressively deployed in
all the factories. GSS (in its SH portion) is covering safety, health, fire/disaster prevention,and facilities; this original Tsubaki Nakashima program is based on an occupational safety
and health management system that also conforms to International Labour Organization(ILO) guidelines. Since that program came into effect, we have enforced the GSS Manualand Procedures and manage our workplaces with the idea that every workplaceis responsible for maintaining its own safety.

ESH & E ISO CERTIFICATIONS
13 PLANTS
HAVE
5 PLANTSHAVE
3 PLANTS
HAVE

14001

13 PLANTS
21

OCCUPATIONAL SAFETY AND HEALTH

Tsubaki Nakashima believes that providing and maintaining a safe and healthy work
environment and promoting physical and mental well-being are the foundation of a healthy
company. Accordingly, understanding that safety and health are the lifeblood of the company,
we have instituted safety and health systems and activities at our sites around the world, sothat our employees and partners can enjoy working as part of a team in a healthy
environment and in the knowledge that they are safe and secure.

WITH ESH & E CERTIFICATIONS

45001

CERTIFICATES

50001

139

REGION

ACCIDENTS OCCUPATIONALREPORTEDDISEASESLOWER THAN THE
NATIONAL AVERAGE
AND IN COMPARISON TO 2020.

OCCUPATIONAL SAFETY AND HEALTH

OCCUPATIONAL
ACCIDENTS

THE FREQUENCY AND SEVERITY OF
OCCUPATIONAL ACCIDENTS IN MOST OFTSUBAKI NAKASHIMA’S PLANTS WERE

FIRES

JAPAN

11

0

0

CHINA

7

0

0

GCB

0

0

0

EUROPE

21

0

3

AMERICAS

14

1

1

OCCUPATIONAL

SAFETY&HEALTH141

DIRECT RESPONSIBILITYMANAGEMENT& COMMITTEE

CEO
COO

STAFF SUPPORTMONOZUKURIFINANCE

EA / JCPRESIDENTHR &SUSTAINABILITY

MAINTENANCE

ENGINEERINGSALES

SUPPLYCHAIN

CGO[ 2022 ]CTO

OCCUPATIONAL SAFETY AND HEALTHACCOUNTABILITYPYRAMIDREGIONAL / DIVISIONALPRESIDENT
PLANT MANAGER
HEAD OF DEPARTMENT
SUPERVISOR – TEAM LEADER/SHIFT LEADER
WORKER

OCCUPATIONAL

SAFETY&HEALTH

143

Starting in 2019, we have developed a system of internal standards, based on international
technical regulations (ISO) pertaining to safety, health and the environment, which is called
Minimum Technical Standard, in order to:
Ensure all
Tsubaki Nakashima
Plants run the businessin a manner that results in

Injury Free, Incident Free and noadverse environmental impacts,
in full compliance with TN
Management Principles,/ŶƚĞƌŶĂƟŽŶĂů^ƚĂŶĚĂƌĚƐĂŶĚůŽĐĂů>ĂǁƐ͘

SAFETYMANAGEMENTINITIATIVES

Minimum Technical Standards
is a method of establishing uniformity of minimum expectations,

OVER 43 MINIMUMTECHNICAL EHS & E STANDARDS developed.
a Procedure containing the International Minimum Standards
a Visual example of what we are talking about
a detailed and complete training session, with pictures and drawings
each MTS has adjoining MTS Implementation Checklist

OCCUPATIONAL SAFETY AND HEALTH

Tsubaki Nakashima seeks to improve its safety and health programs around the world byholding regular meetings at all the organizational levels to share information, discuss issues
and opportunities to improve to achieve ZERO Accidents and ZERO Occupational Illnesses.
At the Management Committee level, during the bi-weekly meeting, our Executives update
one another about actions being taken and discuss issues to identify opportunities for
improvement. At the Regional and operational level, Managers, Supervisors, Workers’
Representatives and Sustainability Representatives also meet regularly to share information(Sustainability Committee). According to the Global Sustainability System, an annual
Management Review has been prepared in every plant and consolidated at Global Level.

Clearlystate TN Plants’obligation to developa Sustainability Plancomplying with the
Minimum Technical^ƚĂŶĚĂƌĚƐ

Ensureall Tsubaki
Nakashima Plants

utilize consistent EHS &Energy standards andestablish/share
Best Known
Methods145

Tsubaki Nakashima analyzes all occupational injuries and accidents, identifies causes, andmakes plans for preventing similar incidents. Occupational accidents are reported in the formof Preliminary Accident Report and Root Cause Analysis which describes accident causes,
countermeasures, and actions that all sites are to take to prevent similar accidents in the future.
These reports are placed on the intranet (One Team Software) and discussed with employees.

PROFESSIONAL DEVELOPMENT
THROUGH SAFETY AND HEALTH TRAINING

Tsubaki Nakashima considers safety and health training vital for protecting employees.
The training curriculum is tailored to the position, roles, and responsibilities of employees.
Training for non-management employees focuses on practical techniques such as risk
assessment and hazard prediction. Training for managers and supervisors focuses onleadership. All Group companies use the Training Plan to include specific EHS training.
Our Chief HR Officer provided training concerning the Global Sustainability System andMinimum Technical Requirements to the Management Committee, Regional Presidents
and all the HR & Sustainability Team members.

OCCUPATIONAL SAFETY AND HEALTHRAISING EMPLOYEE
AWARENESS WITH ACCIDENT REPORTS

TSUBAKI NAKASHIMAENGINEERING MANUAL

In 2021 we implemented our Safety Engineering
Manual, a detailed guidance on how machine
guarding and electrical safety is to be set up
and maintained to ensure employee protection.

147

During 2021 and as part of the
TN Academy,a specific chapter
was dedicated to Ergonomics.
Even if the work activities carriedout in our plants do not expose
employees to significant risks totheir musculoskeletal system, theidentification of categories of hazards
and risks, their measurement, and thesubsequent re-design of workstations
on a human scale are very importantto prevent accidents and occupational
diseases. The training course introduced
Ergonomics as an applied science,
anthropometry, the potential
consequences on the worker’s
body, the different categories
of risk (from repetitive movements,from incongruous posture, fromhandling loads, to pulling andpushing), and then analyzed which
are the principles for a correct designof workplaces that reduce risks
and increase productivity.

OCCUPATIONAL

SAFETY&HEALTH

ergon
ERGONOMICSOCCUPATIONAL SAFETY AND HEALTH

SAFETY ERGONOMICS

nomos

ergon
TN

149

2.

INITIATIVES

5.

SAFETY&HEALTH

1. / 2. Health Reward Program and Psychological Suppport [ US ]3. Vaccines for Covid and Flu [ US ]4. Participations to Tata Run [ India ]5. Employee motivation program [ India ]6. Fire safety training [ India ]OCCUPATIONAL SAFETY AND HEALTH

1.

6.

5.
3.

4.

151

While the impact of the spread of coronavirusŝŶĨĞĐƟŽŶŝŶϮϬϮϬĐĂƵƐĞĚĂŶĂďƌƵƉƚĂŶĚƐŝŐŶŝĮĐĂŶƚ
ƐůŽǁĚŽǁŶ ŝŶ ƚŚĞ ŐůŽďĂů ĞĐŽŶŽŵǇ͕ ϮϬϮϭ ŽŶ ƚŚĞŽƚŚĞƌ ŚĂŶĚ ƐĂǁ Ă ƌĞĐŽǀĞƌǇ ƚŚĂƚ ŵĂĚĞ ƵƉ ĨŽƌŵƵĐŚŽĨǁŚĂƚŚĂĚďĞĞŶůŽƐƚŝŶƚŚĞƉƌĞǀŝŽƵƐǇĞĂƌ͘hŶĨŽƌƚƵŶĂƚĞůǇ͕ ƐƵĐĐĞƐƐŝǀĞ ǀĂƌŝĂŶƚƐ ŽĨ ƚŚĞ ǀŝƌƵƐ͕ ŝŶƉĂƌƟĐƵůĂƌ ƚŚĞ ŽŶĞ ĐĂůůĞĚ KŵŝĐƌŽŶ͕ ĐŽŶƟŶƵĞĚ ƚŽŵŽǁ ĚŽǁŶ ƉĞŽƉůĞ͕ ĂŶĚ ĂůƐŽ ŽƵƌ ĞŵƉůŽǇĞĞƐ͖ŐůŽďĂůůǇ;ĂŶĚĂůƐŽŝŶŽƵƌĐĂƐĞͿ͕ƚŚĞŶĞǁǀĂƌŝĂŶƚƐŚĂǀĞŵĂŝŶůǇ ƐƉƌĞĂĚ ƚŽ ƵƌŽƉĞ ĂŶĚ ƚŚĞ hŶŝƚĞĚ ^ƚĂƚĞƐ͘/Ŷ ƚŽƚĂů͕ ĂƐ ŽĨ ĞĐĞŵďĞƌ ϯϭ͕ ϮϬϮϭ͕ ŶĞĂƌůǇ
ϭ͕ϲϬϬ ĞŵƉůŽǇĞĞƐ ŚĂĚ ƚĞƐƚĞĚ ŶĞŐĂƟǀĞ͕ǁŚŝůĞ ϰϲϰ ŚĂĚ ƚĞƐƚĞĚ ƉŽƐŝƟǀĞ͕ ƐŚŽǁŝŶŐƐǇŵƉƚŽŵƐ ƚŚĂƚ ǁĞƌĞ ŶŽƚ ƉĂƌƟĐƵůĂƌůǇƐŝŐŶŝĮĐĂŶƚ Žƌ ůŝŬĞůǇ ƚŽ ůĞĂĚ ƚŽ ƐĞƌŝŽƵƐĐŽŶƐĞƋƵĞŶĐĞƐ͘ Ɛ ŽĨ ĞĐĞŵďĞƌ ϯϭ͕ ϰϰϴĞŵƉůŽǇĞĞƐ ǁĞƌĞ ĨƵůůǇ ƌĞĐŽǀĞƌĞĚ ĂŶĚ ŽŶůǇϭϲ ǁĞƌĞ ƐƟůů ƉŽƐŝƟǀĞ ĂŶĚ ƚŚĞƌĞĨŽƌĞ ŝƐŽůĂƚĞĚĂƚ ŚŽŵĞ͘ DŽƐƚ ĞŵƉůŽǇĞĞƐ ŚĂǀĞ ďĞĞŶǀĂĐĐŝŶĂƚĞĚ͕ ĂŶĚ ƉƌŽŐƌĞƐƐŝǀĞůǇ ƚŚĞ ŶƵŵďĞƌŽĨŝŶĨĞĐƟŽŶƐŝƐĚĞĐƌĞĂƐŝŶŐ͘REGION% OF VACCINATED

JAPAN

84,85%

CHINA

95,33%

GCB

82,5%

EUROPE

83,34%AMERICAS48%

RESPONSE TO THE CORONAVIRUS PANDEMIC 2021

RESPONSE
TO THE CORONAVIRUS
PANDEMIC 2021

dŚĞ ĂǀĂŝůĂďŝůŝƚǇ ŽĨ ǀĂĐĐŝŶĞƐ ĂŶĚ ƉƌŽŐƌĞƐƐŝǀĞǀĂĐĐŝŶĂƟŽŶĐĂŵƉĂŝŐŶƐ͕ĐŽŵďŝŶĞĚǁŝƚŚƐƚĂīĂǁĂƌĞŶĞƐƐ ĂĐƟǀŝƟĞƐ͕ ƚŚĞ ƉƌĞǀĞŶƟŽŶ ĂŶĚƉƌŽƚĞĐƟŽŶŵĞĂƐƵƌĞƐĂĚŽƉƚĞĚĂŶĚƚŚĞŐƌĞĂƚŇĞǆŝďŝůŝƚǇ ŽĨ ŽƵƌ ŐůŽďĂů ƉƌŽĚƵĐƟŽŶ ƐǇƐƚĞŵ͕ǁŚŝĐŚŝƐŽŶĞŽĨƚŚĞ'ƌŽƵƉ͛ƐƐƚƌĞŶŐƚŚƐ͕ŵĂĚĞŝƚƉŽƐƐŝďůĞƚŽŵĞĞƚƚŚĞƵƐƚŽŵĞƌƐ͛ŶĞĞĚƐ͘dŚĞ ZŝƐŬ DĂŶĂŐĞŵĞŶƚ ŽŵŵŝƩĞĞ;ƐͿĐŽŶƟŶƵĞĚƚŽŵŽŶŝƚŽƌƚŚĞƐƚĂƚĞŽĨŝŶĨĞĐƟŽŶƐĂƌŽƵŶĚ ƚŚĞ ŐůŽďĞ ǁŚŝůĞ ŝŵƉůĞŵĞŶƟŶŐŝŵƉƌŽǀĞŵĞŶƚƐ ĂŶĚ ƚŽ ƉƵƚ ƉƌĞƉĂƌĂƟŽŶƐ ŝŶƉůĂĐĞ ƚŽ ƌĞƐƉŽŶĚ ŝŵŵĞĚŝĂƚĞůǇ ŝŶ ƚŚĞ ĞǀĞŶƚŽĨĂǁŽƌƐĞŶŝŶŐŽĨƚŚĞĐƌŝƐŝƐ͘153

INTERNATIONAL EVENTS AND EXTERNAL INITIATIVESINTERNATIONALEVENTS AND
PARTICIPATION
IN EXTERNALINITIATIVES

155

INTERNATIONAL EVENTS AND EXTERNAL INITIATIVESIN 2021 TSUBAKI NAKASHIMA TOOK PART TO
MANY EVENTS SUCH AS IN ATLANTA, RUSSIA,SPAIN, COLOMBIA AND GERMANY. WE ARE
MEMBERS OF GLOBAL VISION ZERO COUNCILAND OF THE SAFETY GOVERNANCE FOUNDATION.

INTERNATIONAL EVENTSAND PARTICIPATION
IN EXTERNAL INITIATIVES
157

OUR
ENVIRONMENT[ Koji Hirota • President and CEO ]Products provided by the Tsubaki
Nakashima Group, including
precision balls, contributeto improving the energy performanceĂŶĚĞĸĐŝĞŶĐǇŽĨĮŶĂůƉƌŽĚƵĐƚƐ͘For this reason, we believethat not only supplying
high-quality products, but also
giving due consideration
to the environment
in the manufacturing process
will help reduce the environmentalŝŵƉĂĐƚŽĨƚŚĞĞŶƟƌĞǀĂůƵĞĐŚĂŝŶ͘dƐƵďĂŬŝ EĂŬĂƐŚŝŵĂ ƐŚĂůů ĐŽŶƟŶƵĞ ƚŽ ŝŵƉƌŽǀĞ ŝƚƐ ŽǁŶ ŽƌŐĂŶŝǌĂƟŽŶ͕ ƉƌŽĐĞƐƐĞƐ͕ ƉƌŽĚƵĐƚƐ͕ ĂŶĚƐĞƌǀŝĐĞƐ͕ĂŝŵŝŶŐĂƚƌĞĂĐŚŝŶŐǌĞƌŽĚĞĨĞĐƚƐ͕ǌĞƌŽĂĐĐŝĚĞŶƚƐĂŶĚǌĞƌŽĞŶǀŝƌŽŶŵĞŶƚĂůŝŵƉĂĐƚĂŶĚƚŚĞ
improvement of the energy performance by means of:• the involvement, participation and co-responsibility of the employees and workersƌĞƉƌĞƐĞŶƚĂƟǀĞƐǁŚĞƌĞƚŚĞǇĞǆŝƐƚ͕ĐŽůůĂďŽƌĂƚŽƌƐĂŶĚƐƵƉƉůŝĞƌƐĂŶĚŽƚŚĞƌƌĞůĞǀĂŶƚƉĂƌƟĞƐǁŝƚŚƚŚĞŝŶƚĞŶƟŽŶŽĨŵĂŬŝŶŐƚŚĞŵĂǁĂƌĞŽĨƚŚĞŝƌŝŶĚŝǀŝĚƵĂůĚƵƟĞƐ͕ĂůƐŽƚŚƌŽƵŐŚƐƉĞĐŝĮĐĐŽŵŵƵŶŝĐĂƟŽŶŝŶŝƟĂƟǀĞƐ͕ǁŚŝůĞƉƌŽŵŽƟŶŐĂŚĞĂůƚŚǇĂŶĚƐĂĨĞďĞŚĂǀŝŽƌ͕ĂŶĚďĞŝŶŐĂǁĂƌĞŽĨƚŚĞƌĂƟŽŶĂůƵƐĞŽĨĞŶĞƌŐǇ
• embracing the philosophy of the 5 Z’s of sustainability approach, we strive to have Zero accidents,

OUR ENVIRONMENTTN ATMO SPHERE

Zero occupational illnesses, Zero wastes, Zero inequality and Zero lack of knowledge•ƚŚĞŝŵƉůĞŵĞŶƚĂƟŽŶŽĨĂůůƚŚĂƚŝƐŶĞĐĞƐƐĂƌǇƚŽŐƵĂƌĂŶƚĞĞƚŚĞ safeguarding of the environmentand health and safety in the workplaces• the development of production processes, oriented to continuous improvement of the safety,ĞŶǀŝƌŽŶŵĞŶƚĂů ĂŶĚ ĞŶĞƌŐǇ ƐƚĂŶĚĂƌĚƐ͕ ƚŽ ƌĞĚƵĐĞ ĂŶĚ ĞůŝŵŝŶĂƚĞ ƚŚĞ ŶĞŐĂƟǀĞ ŝŵƉĂĐƚƐ ŝŶ ĂŶĞĐŽŶŽŵŝĐĂůůǇĨĞĂƐŝďůĞŵĂŶŶĞƌ͕ďǇŵĂŬŝŶŐƉƌŽǀŝƐŝŽŶĨŽƌƚŚĞĂĐƋƵŝƐŝƟŽŶŽĨƉƌŽĚƵĐƚƐĂŶĚƐĞƌǀŝĐĞƐǁŝƚŚa view to improve the energy and environmental performances• the commitment to preventing defects, accidents, and environmental impactsƌĂƚŚĞƌƚŚĂŶŝĚĞŶƟĨǇŝŶŐƚŚĞŵ• a constant respect for company, customer and governmental health and safety,
environmental and energy requirements• a continuous improvement of the management and performances of health and safety,ĞŶǀŝƌŽŶŵĞŶƚĂůĂŶĚĞŶĞƌŐǇŵĂƩĞƌƐďǇůŽĐĂƟŶŐƚŚĞŶĞĐĞƐƐĂƌǇƌĞƐŽƵƌĐĞƐŝŶŽƌĚĞƌƌĞĂĐŚƚŚĞƐĞƚŽďũĞĐƟǀĞƐĂŶĚƚĂƌŐĞƚƐ͕ƵƐŝŶŐĂĚĞƋƵĂƚĞŵŽŶŝƚŽƌŝŶŐĂŶĚĞǀĂůƵĂƟŽŶƚŽŽůƐ
ůůƚŚĞĂďŽǀĞƚŽƐĂƟƐĨǇƚŚĞƌĞƋƵĞƐƚƐĂŶĚĞǆƉĞĐƚĂƟŽŶƐŽĨŽƵƌĞŵƉůŽǇĞĞƐ͕customers and shareholders in the best possible way, increasing theƌĞƉƵƚĂƟŽŶŽĨƚŚĞĐŽŵƉĂŶǇĂŶĚƐƚƌĞŶŐƚŚĞŶŝŶŐŽƵƌůĞĂĚĞƌƐŚŝƉƉŽƐŝƟŽŶ͘159

dƐƵďĂŬŝ EĂŬĂƐŚŝŵĂ ĐŽŶƐƵŵĞƐ ƌĞƐŽƵƌĐĞƐ ĂŶĚ͕ ŝŶ ƚŚĞ ƉƌŽĐĞƐƐ ŽĨ ĐŽŶĚƵĐƟŶŐ ďƵƐŝŶĞƐƐ ĂĐƟǀŝƟĞƐĂĐƌŽƐƐƚŚĞůŝĨĞĐǇĐůĞƐŽĨŝƚƐƉƌŽĚƵĐƚƐĂŶĚƐĞƌǀŝĐĞƐ͕ĞŵŝƚƐ','ƐĂŶĚŽƚŚĞƌĞŵŝƐƐŝŽŶƐƚŽƚŚĞĂŝƌ͕ůĂŶĚ͕ĂŶĚǁĂƚĞƌ͘&ŽůůŽǁŝŶŐƚŚĞƐƉĞĐŝĮĐĂƟŽŶƐŝŶĚŝĐĂƚĞĚďǇƚŚĞ/^KϭϰϬϬϭ͗ϮϬϭϱƐƚĂŶĚĂƌĚĂŶĚŽƵƌ'ůŽďĂů^ƵƐƚĂŝŶĂďŝůŝƚǇ ^ǇƐƚĞŵ͕ ǁĞ ŚĂǀĞ ĂƐƐĞƐƐĞĚ ƚŚĞ ĞŶǀŝƌŽŶŵĞŶƚĂů ŝŵƉĂĐƚƐ ŽĨ ŽƵƌ ďƵƐŝŶĞƐƐ ĂĐƟǀŝƟĞƐĂĐƌŽƐƐƚŚĞǀĂůƵĞĐŚĂŝŶƚŽƌĞĚƵĐĞŽƵƌŝŵƉĂĐƚƐ͘

LIFE CYCLE THINKING

dƐƵďĂŬŝͲEĂŬĂƐŚŝŵĂĚĞĮŶĞƐĂŶĞĐŽͲĐŽŶƐŝĚĞƌĂƚĞƉƌŽĚƵĐƚĂƐŽŶĞĨŽƌǁŚŝĐŚĞŶǀŝƌŽŶŵĞŶƚĂůŝŵƉĂĐƚƐĂƌĞĐŽŶƐŝĚĞƌĞĚĨƌŽŵƉƌŽĚƵĐƚĐŽŶĐĞƉƟŽŶƚŽŵŝƐƐŝŽŶĐŽŵƉůĞƟŽŶ͖ƚŚĂƚŝƐ͕ĂƚĞǀĞƌǇƉŚĂƐĞŽĨƚŚĞůŝĨĞĐǇĐůĞ͕ĨƌŽŵĚĞƐŝŐŶĂŶĚŵĂŶƵĨĂĐƚƵƌŝŶŐƚŽƚƌĂŶƐƉŽƌƚ͕ƵƐĂŐĞ͕ĂŶĚƌĞĐǇĐůŝŶŐ͘THINK
CHOOSE
CREATE
Tsubaki Nakashima takesĂůŝĨĞͲĐǇĐůĞƚŚŝŶŬŝŶŐĂƉƉƌŽĂĐŚŝŶĞīŽƌƚƐ ƚŽ ŵŝŶŝŵŝǌĞ ĐƵƐƚŽŵĞƌƐ͛ĞŶǀŝƌŽŶŵĞŶƚĂůŝŵƉĂĐƚƐďǇƉƌŽǀŝĚŝŶŐƉƌŽĚƵĐƚƐƚŚĂƚŽīĞƌĞŶǀŝƌŽŶŵĞŶƚĂůƉĞƌĨŽƌŵĂŶĐĞ͘ůŵŽƐƚĂůůŽƵƌƉƌŽĚƵĐƚƐĂƌĞϭϬϬйƌĞĐǇĐůĂďůĞʹǁĞƵƐĞƐƚĞĞů͕ƉůĂƐƟĐ͕ŐůĂƐƐ͕ĐĞƌĂŵŝĐ͕ĂůƵŵŝŶƵŵ͕and other material thatĐŽƵůĚŚĂǀĞĂƐĞĐŽŶĚůŝĨĞ͘OUR ENVIRONMENTUSE OF RESOURCES
AND SUSTAINABILITY/ŶŽƵƌ'ůŽďĂů^ƵƐƚĂŝŶĂďŝůŝƚǇ^ǇƐƚĞŵ͕ƐƉĞĐŝĮĐĂůůǇŝŶƚŚĞDŝŶŝŵƵŵdĞĐŚŶŝĐĂů^ƚĂŶĚĂƌĚƐƐĞƚƵƉ͕ǁĞĨŽĐƵƐŽƵƌĂƩĞŶƟŽŶŽŶDĂŶĂŐĞŵĞŶƚŽĨŚĞŵŝĐĂů^ƵďƐƚĂŶĐĞƐŝŶŵĂŶƵĨĂĐƚƵƌŝŶŐ͕ƌĞƉůĂĐŝŶŐŚĂǌĂƌĚŽƵƐƐƵďƐƚĂŶĐĞƐǁŝƚŚŶŽŶͲŚĂǌĂƌĚŽƵƐĂŶĚƌĞĐǇĐůĞƚŚĞŵŝŶƚŽthe process, as much as possible.

ůŝŵĂƚĞŚĂŶŐĞWŽůŝĐǇ͕
Life Cycle Assessments,WŽůůƵƟŽŶWƌĞǀĞŶƟŽŶΘŚĞŵŝĐĂůDĂŶĂŐĞŵĞŶƚOUR
ENVIRONMENT161DELIVER

USE RECYCLE
ƌĞƐƉŽŶƐŝďůĞƵƐĞŽĨŶĂƚƵƌĂůƌĞƐŽƵƌĐĞƐ͕ĂƐ ǁĞůů ĂƐ ŽĨ ŽƚŚĞƌƌĞƐŽƵƌĐĞƐŝƐŬĞǇ͕ŝŶŽƵƌĂƉƉƌŽĂĐŚ͘& REUSEKŝů͕ĐŽŽůĂŶƚƐĂŶĚŽƚŚĞƌƐƵďƐƚĂŶĐĞƐĂƌĞƌĞĐǇĐůĞĚĂƐŵƵĐŚĂƐƉŽƐƐŝďůĞ͘ůůŽƵƌƉƌŽĚƵĐƚƐĂƌĞƌĞĐǇĐůĂďůĞ͕ĂůŵŽƐƚϭϬϬй͘dŚƌŽƵŐŚƚŚĞĐƌĞĂƟŽŶŽĨĞĐŽͲĐŽŶƐŝĚĞƌĂƚĞƉƌŽĚƵĐƚƐ͕ǁĞĂƌĞĐŽŽƉĞƌĂƟŶŐǁŝƚŚŽƵƌƵƐƚŽŵĞƌƐƚŽĞǆƉĂŶĚŽƵƌĞŶǀŝƌŽŶŵĞŶƚĂůŝŵƉĂĐƚŵŝƟŐĂƟŽŶĞīŽƌƚƐďĞǇŽŶĚdƐƵďĂŬŝEĂŬĂƐŚŝŵĂ͛ƐĚŽŽƌƐ͘dŚĞ'ƌŽƵƉ͛ƐĐŽƌĞƉƌŽĚƵĐƚ͕ƉƌĞĐŝƐŝŽŶďĂůůƐ͕ĂƌĞďĂƐŝĐĂůůǇŵĂŶƵĨĂĐƚƵƌĞĚĂŶĚĚĞůŝǀĞƌĞĚŝŶƌĞŐŝŽŶƐĐůŽƐĞƚŽĐƵƐƚŽŵĞƌƐĨŽƌůŽĐĂůƉƌŽĚƵĐƟŽŶĨŽƌůŽĐĂůĐŽŶƐƵŵƉƟŽŶŝŶŽƌĚĞƌƚŽƌĞĚƵĐĞĞŵŝƐƐŝŽŶƐ͕ĂƐǁĞůůĂƐƉƌĞǀĞŶƚĚĂŵĂŐĞĂŶĚďƌĞĂŬĂŐĞĐĂƵƐĞĚďǇůŽŶŐͲĚŝƐƚĂŶĐĞƚƌĂŶƐƉŽƌƚĂƟŽŶ͘ůƚŚŽƵŐŚƚŚĞƉƌŽĐƵƌĞŵĞŶƚŽĨƌĂǁŵĂƚĞƌŝĂůƐ͕ŵĂŶƵĨĂĐƚƵƌŝŶŐ͕ƐĂůĞƐ͕ĂŶĚĂŌĞƌͲƐĂůĞƐƐĞƌǀŝĐĞĂƌĞĐĂƌƌŝĞĚŽƵƚĂƚĞĂĐŚƐŝƚĞĂĐĐŽƌĚŝŶŐƚŽƚŚĞĐŚĂƌĂĐƚĞƌŝƐƟĐƐŽĨĞĂĐŚƉƌŽĚƵĐƚĂŶĚƌĞŐŝŽŶ͕ŝŵƉŽƌƚĂŶƚǀŝƐŝŽŶƐĂŶĚĚŝƌĞĐƟŽŶƐŝŶďƵƐŝŶĞƐƐŽƉĞƌĂƟŽŶƐƐƵĐŚĂƐƉƵƌĐŚĂƐŝŶŐ͕ƋƵĂůŝƚǇĂƐƐƵƌĂŶĐĞ͕ĂŶĚƚĞĐŚŶŽůŽŐǇĚĞǀĞůŽƉŵĞŶƚĂƌĞĨŽƌŵƵůĂƚĞĚĂƚƚŚĞdƐƵďĂŬŝEĂŬĂƐŚŝŵĂ,ĞĂĚƋƵĂƌƚĞƌĂŶĚĐŽŵŵƵŶŝĐĂƚĞĚƚŽĞĂĐŚƐŝƚĞ͘OUR ENVIRONMENTdƌĂŶƐƉŽƌƚ ͬ sĂůƵĞ ŚĂŝŶ ʹ KƵƌ ŵŽƩŽ ŝƐ 'ůŽďĂů ZĞĂĐŚ ĂŶĚ >ŽĐĂůĞƉƚŚ͕ ǁŽƌŬŝŶŐ ƚŽ ƐĞƌǀĞ ŽƵƌ ƵƐƚŽŵĞƌƐ ĐůŽƐĞ ƚŽ ƚŚĞŝƌ ĨĂĐƚŽƌŝĞƐ͕ĂůƐŽƚŽƌĞĚƵĐĞƚƌĂŶƐƉŽƌƚĂƟŽŶĂŶĚŵĂƚĞƌŝĂůŚĂŶĚůŝŶŐ͘OUR
ENVIRONMENT
163

tĞ ĂƌĞ ĂĐƟǀĞůǇ ǁŽƌŬŝŶŐ ƚŽ ƌĞĚƵĐĞ ĞŶǀŝƌŽŶŵĞŶƚĂů ŝŵƉĂĐƚƐ ƚŚƌŽƵŐŚŽƵƚ ƚŚĞ ǀĂůƵĞ ĐŚĂŝŶ ďǇůĞǀĞƌĂŐŝŶŐ ŽƵƌ ĞĸĐŝĞŶƚ͕ ĐŽŵƉĂĐƚ͕ ĂŶĚ ƉƌĞĐŝƐŝŽŶ ƚĞĐŚŶŽůŽŐŝĞƐ ƚŽ ŝŵƉƌŽǀĞ ƚŚĞ ĞŶǀŝƌŽŶŵĞŶƚĂůƉĞƌĨŽƌŵĂŶĐĞŽĨŽƵƌƉƌŽĚƵĐƚƐ͕ƵƟůŝǌŝŶŐƌĞŶĞǁĂďůĞĞŶĞƌŐǇ͕ĂŶĚĞŶŚĂŶĐŝŶŐŽƵƌďƵƐŝŶĞƐƐĂĐƟǀŝƟĞƐŝŶŽƌĚĞƌƚŽĂĐŚŝĞǀĞŽƵƌƚĂƌŐĞƚƐ͘RESPONSIBLE SOURCING OF MINERALSOUR ENVIRONMENT

INDICATORS AND TARGETStŚĞƌĞ ŵŝŶĞƌĂůƐ ƐƵĐŚ ĂƐ ƟŶ͕ ƚĂŶƚĂůƵŵ͕ ƚƵŶŐƐƚĞŶ͕ ŐŽůĚ ;ϯd'Ϳ ĂŶĚ ĐŽďĂůƚ ĂƌĞ ŵŝŶĞĚ ŝŶĐŽŶŇŝĐƚͲĂīĞĐƚĞĚ Žƌ ŚŝŐŚͲƌŝƐŬ ĂƌĞĂƐ ƐƵĐŚ ĂƐ ƚŚĞ ĞŵŽĐƌĂƟĐ ZĞƉƵďůŝĐ ŽĨ ŽŶŐŽ ;ZͿ ĂŶĚĂĚũŽŝŶŝŶŐ ĐŽƵŶƚƌŝĞƐ͕ ƚŚĞ ƌĞǀĞŶƵĞ ĨƌŽŵ ƚŚĞ ŵŝŶŝŶŐ ĂŶĚ ƚƌĂĚŝŶŐ ŽĨ ƚŚĞƐĞ ŵŝŶĞƌĂůƐ ŝƐ Ă ƐŽƵƌĐĞŽĨ ĨƵŶĚŝŶŐ ĨŽƌ ĂƌŵĞĚ ŐƌŽƵƉƐ ĂŶĚ ĂŶƟͲŐŽǀĞƌŶŵĞŶƚ ĨŽƌĐĞƐ ĐĂƌƌǇŝŶŐ ŽƵƚ ĂƚƌŽĐŝƟĞƐ ĂŶĚ ŚƵŵĂŶƌŝŐŚƚƐĂďƵƐĞƐ͘DŝŶĞƌĂůƐƐŽƵƌĐĞĚĨƌŽŵƐƵĐŚĐŽŶŇŝĐƚͲĂīĞĐƚĞĚŽƌŚŝŐŚͲƌŝƐŬĂƌĞĂƐŚĂǀĞƚŚĞƉŽƚĞŶƟĂůƚŽƉƌŽŵŽƚĞĐŽŶŇŝĐƚ͕ŚƵŵĂŶƌŝŐŚƚƐǀŝŽůĂƟŽŶƐĂŶĚĞŶǀŝƌŽŶŵĞŶƚĂůĚĞŐƌĂĚĂƟŽŶ͘dƐƵďĂŬŝEĂŬĂƐŚŝŵĂĐŽŶƐŝĚĞƌƐŵŝŶŝŶŐƚŽďĞĂŶŝŶƚĞŶƐŝǀĞƉƌŽĐĞƐƐŝŶǀŽůǀŝŶŐƐŽĐŝĂůĂŶĚĞŶǀŝƌŽŶŵĞŶƚĂůƌŝƐŬƐ͕ĂŶĚďĞůŝĞǀĞƐ
ƚŚĞ ŵŝŶŶŐ ŽĨ ŵĞƚĂůƐ ĂŶĚ ŵŝŶĞƌĂůƐ͕ ŝŶĐůƵĚŝŶŐ ĐŽŶŇŝĐƚ ŵŝŶĞƌĂůƐ ;ϯd'Ϳ ĂŶĚ ĐŽďĂůƚ ŵŝŶĞĚ ŝŶ ƚŚĞ
Z͕ĂƐǁĞůůĂƐŽƚŚĞƌŵŝŶĞƌĂůƐŵŝŶĞĚŝŶŽƚŚĞƌƌĞŐŝŽŶƐ͕ŵƵƐƚďĞŵĂŶĂŐĞĚ͘dƐƵďĂŬŝEĂŬĂƐŚŝŵĂ͛ƐƉŽůŝĐǇ ŝƐ ƚŚĂƚ ǁĞ ǁĂŶƚ ŶŽ ƉĂƌƚ ŝŶ ĂŶǇ ŚƵŵĂŶ ƌŝŐŚƚƐ ǀŝŽůĂƟŽŶƐ Žƌ ĞŶǀŝƌŽŶŵĞŶƚĂů ĚĞƐƚƌƵĐƟŽŶ͘tŚŝůĞƐŽƵƌĐŝŶŐŵŝŶĞƌĂůƐƚŚĂƚŽƌŝŐŝŶĂƚĞŝŶĐŽŶŇŝĐƚͲĂīĞĐƚĞĚŽƌŚŝŐŚͲƌŝƐŬĂƌĞĂƐ͕ǁĞǁŝůůŶŽƚ͕ďǇĂŶǇŵĞĂŶƐ͕ƚŽůĞƌĂƚĞ͕ŬŶŽǁŝŶŐůǇƉƌŽĮƚĨƌŽŵ͕ĐŽŶƚƌŝďƵƚĞƚŽ͕ĂƐƐŝƐƚǁŝƚŚŽƌĨĂĐŝůŝƚĂƚĞƚŚĞĐŽŵŵŝƐƐŝŽŶďǇĂŶǇƉĂƌƚǇŽĨĂŶǇĨŽƌŵŽĨŚƵŵĂŶƌŝŐŚƚƐǀŝŽůĂƟŽŶƐŽƌĂďƵƐĞƐ͕ŽƌƐƵƉƉŽƌƚŽƉĞƌĂƟŽŶƐƚŚĂƚƌĞƐƵůƚŝŶƚŚĞĚĞŐƌĂĚĂƟŽŶŽĨƐŽĐŝŽĞĐŽŶŽŵŝĐĂŶĚĞŶǀŝƌŽŶŵĞŶƚĂůƐƚĂďŝůŝƚǇ͘OUR
ENVIRONMENT165

RESPONSIBLE
USE OF RESOURCES AND ENERGIES, AS WELL AS

TRACKING AND REDUCING GREEN HOUSE GAS (GHG)
EMISSIONS, WILL ALLOW US TO LESSEN OUR
CLIMATE CHANGE IMPACT AND PROVIDEIMPORTANT OPPORTUNITIES TOHELP DRIVE MOMENTUM FOR

GLOBAL
CLIMATEACTION.

THE RECENTLY CREATEDSUSTAINABILITYCOMMITTEEIS RESPONSIBLE FOR ASSISTING THE

SUSTAINABILITY

AS TSUBAKI NAKASHIMA, WE RECOGNIZE OURRESPONSIBILITY TO ADDRESS THE ENVIRONMENTAL
AND SOCIAL IMPACTS OF OUR BUSINESS. OUR
GLOBAL SUSTAINABILITY SYSTEM - A MULTISITEINTEGRATED SYSTEM BASED ON ISO 14001, ISO
45001, AND ISO 50001 - HAS BEEN IMPLEMENTED
IN ALL OUR FACTORIES IN THE WORLD. A

MANAGEMENT COMMITTEE BY FULFILLING
A PREPARATORY, CONSULTATIVE AND ADVISORY
ROLE IN ASSESSMENTS AND DECISION-MAKINGPROCESSES WITH REGARD TO

ENVIRONMENTAL,

SOCIAL AND
GOVERNANCE

ISSUES, RELATED TO TSUBAKI NAKASHIMA BUSINESSAND ITS ENGAGEMENT WITH ALL STAKEHOLDERS,
THE CORPORATE GOVERNANCE OF THE COMPANY, AND THE
REVIEW OF SCENARIOS ENVISAGED IN THE PREPARATION OF
THE MEDIUM TERM AND BUSINESS PLANS, BASEDALSO ON THE ANALYSIS OF SIGNIFICANT ISSUESFOR THE CREATION OF LONG-TERM VALUE.

167

VISIONZEROAPPROACH

ZEROACCIDENTSZEROOCCUPATIONALILLNESSESZEROWASTESZEROINEQUALITIESZEROLACKOFKNOWLEDGE

INSTITUTIONAL

CTO
Monozukuri

Sustainable
Development

CFO

CHRO

Sustainability
AdvisorSUSTAINABLE
DEVELOPMENT

G

M

C

GOVERNANCEMONOZUKURICOMMUNICATIONINTERNAL
TN ACADEMYSUSTAINABILITY
DEVELOPMENT

GCB

China

Americas

TJB

TJO

TCT

TAG

TEI

TEB

TJT

TSR

TCK

TAM

TES

TEU

TCC

TAE

TEP

TSI

TAC

TEN

TJS

EXTERNAL

INTEGATEDCORPORATEGOVERNANCE

Japan

TJL

SUSTAINABILITYSUSTAINABILITYCOMMITTEECEOEurope169

Documental
Level
1.0 Statement
1.1 Manual
2.0 Mandatory
Procedures
2.1 Company
Procedures

Reference
International
Standard

ONE TEAM MANAGEMENT SYSTEMENVIRONMENTENVIRONMENTENERGYISO 14001
ISO 50001

Type

SOCIAL

GOVERNANCE

Vision, Mission, Policy

HR
HEALTH & SAFETY

FINANCEQUALITY
ETHIC& COMPLIANCE

Manuals(scope & context)
Procedures
Guidelines
Specifications
Forms

ISO 9001
IATF 16949
ISO 45001

J-Sox
ISO 9001
IATF 16949
ISO 9100
ISO 13485
ISO 37000
ISO 37301

ONE
INTEGRATEDTEAMCORPORATEGOVERNANCE

4TIERSSUSTAINABILITYONE TEAM MANAGEMENT SYSTEM STRUCTURE

T1and T2 defined at Corporate Level
T3 and T4 integrated and/or definedat Regional and/or Local Level

T1
T2
T3
T4

Vision, Mission, Policy, Managerial
Statement, Manual(s)T1 defines the One Team Governance
System’s structure, principles, guidelines,
accountability and responsability

Corporate Policies

T2 defines Mandatory Procedures
and Policies

Instructions, Local Operative
Procedures, Best Practices

T3 is defined at local level (Region, Plant),
according to the local laws and T1 and T2

Forms and Records

T4 provides forms, records and evidences(Corporate - Region - Plant)

SUSTAINABILITY AUDITS 2021
Japan (4 plants)
9%28%

Americas (4 plants)
39%

Global Ceramic Business(2 plants)

19%

5%

Europe (7 plants)
China (3 plants)
171

PURPOSE

2022
Identification of Risks
and Opportunities(Planet, People, Profit

Sustainable
GovernanceStatus quo(KPIs and data collection)
Digitalization(2021-2023))
Sustainable
Awareness Training

SUSTAINABILITYNOVEMBER
2021

Quarter 1
2022

Quarter 4
2021

Management Review(Corporate)

TSUBAKI NAKASHIMA
Sustainable
Development Plan
(Corporate - Local)

One Team
Management
SystemTarget definition(Corporate - Local)

TN Academy(Level 1 and 2)

Tracking
and reporting

ESG
2021

SUSTAINABILITY
DEVELOPMENT
MODEL

173

SUSTAINABLE
DEVELOPMENT

Global CO2 emissions ŶĞĞĚ ƚŽ ďĞƌĞĚƵĐĞĚ ďǇ ϰϱй ďǇ ϮϬϯϬ ĨƌŽŵ ϮϬϭϬůĞǀĞůƐ;ůĂƐƚŽĸĐŝĂůĚĂƚĂĂǀĂŝůĂďůĞͿ

Carbon neutrality by 2050͗ ĐĂƌďŽŶ
ŶĞƵƚƌĂůŝƚǇ ŝƐ Ă ƐƚĂƚĞ ŽĨ ŶĞƚͲǌĞƌŽ KϮĞŵŝƐƐŝŽŶƐ͘dŚŝƐĐĂŶďĞĂĐŚŝĞǀĞĚďǇďĂůĂŶĐŝŶŐ
ĞŵŝƐƐŝŽŶƐŽĨKϮǁŝƚŚŝƚƐƌĞŵŽǀĂů͘

MEASURES FORENVIRONMENTALSUSTAINABILITY

Analysis of energy andenvironmental efficiency
measures alreadycarried out
Calculation of savings/
benefits obtained in termsof environmental impact
Re-calculation of KPIs

Calculation of multi-year
environmental sustainability
targets
Calculation of GHG reduction
goals with science-basedtargets
Drawing up theenvironmental sustainability
plan between plants

Analysis of the neededinterventions aimed
at reducing the carbon
footprint
Analysis of the interventions
aimed at reducing
the water footprint

ENVIRONMENTALTARGETS ACHIEVEDENVIRONMENTALTARGETSMEASURES FORENVIRONMENTALSUSTAINABILITYENVIRONMENTALTARGETS ACHIEVED

Carbon footprint
Water footprint
Other relevant
environmental impacts
Settingenvironmental KPIs
Benchmarking
between plants

ENVIRONMENTAL
STATE OF ART

1 ENVIRONMENTAL 2 DEFINITION OF THE
DATA
COLLECTIONENVIRONMENTALTARGETSTO BE ACHIEVEDENVIRONMENTAL
STATE OF ARTENVIRONMENTAL
STATE OF ART
OF THE GROUPSUSTAINABILITY
ROADMAP

3 DEFINITION AND 4 DEFINITION OF 5
CALCULATION OF
SUSTAINABILITYKPIS

SUSTAINABILITYTARGETS ANDGOALSSUSTAINABILITY

The Paris Agreement and the AGENDA
2030 ŽĨ ƚŚĞ hŶŝƚĞĚ EĂƟŽŶƐ Ăŝŵ ƚŽƐƚƌĞŶŐƚŚĞŶ ƚŚĞ ŐůŽďĂů ƌĞƐƉŽŶƐĞ ƚŽ ƚŚĞƚŚƌĞĂƚ ŽĨ ĐůŝŵĂƚĞ ĐŚĂŶŐĞ ďǇ ŬĞĞƉŝŶŐ ĂŐůŽďĂůƚĞŵƉĞƌĂƚƵƌĞƌŝƐĞƚŚŝƐĐĞŶƚƵƌǇǁĞůůďĞůŽǁ ϮΣ ĂďŽǀĞ ƉƌĞͲŝŶĚƵƐƚƌŝĂů ůĞǀĞůƐ͘ƐĂƌĞƐƵůƚ͕ƐĞǀĞƌĂůŐůŽďĂůŐŽĂůƐŚĂǀĞďĞĞŶƐĞƚƚŽĮŐŚƚĐůŝŵĂƚĞĐŚĂŶŐĞ͗MONOZUKURI
2030

AN
L
YP
T
E
I
TH BIL 22 030
N
A 0
SIGTAIN ON 2 TO 2
E
D US S ADS OCU RO
F ND
A
175

ENERGY

MATERIALS

Natural gas consumption
Other fuel consumption
Electrical energy consumption
Percentage of renewable energy
Raw materials quantity
Additives and chemicals quantity
Packaging materials quantity

TO CONSIDER FORSUSTAINABILITY
Scope 1 CO2
Scope 2 CO2
Scope 3 CO2

SUSTAINABILITY

WHAT IS IMPORTANT
ENVIRONMENTAL

CO2 EMISSIONS

Quantity of hazardous waste
Quantity of recycled waste

Volume of water usedfrom the mains and well
Volume of recoveredrain water
Volume of disposed water

WASTE

WATER

177

ENERGY

WASTE

Specific energy consumption (kWh/ton)
Percentage of renewable energy(% Green energy)

Hazardous waste(ton hazardous waste / ton)
Sludge (ton sludge / ton)
Percentage of recycled waste(% of recycled waste)

KPIS
Carbon footprint (ton CO2 / ton)
Scope 1 & Scope 2
total emissions (ton CO2)

Water footprint (m3 / ton)
Percentage of disposal water(% disposal water)

SUSTAINABILITYENVIRONMENTAL

CO2 EMISSIONS

WATER

179

CO2 EMISSIONS FOCUS
TN full control

The Paris Agreement ŝƐƚŚĞĮƌƐƚͲĞǀĞƌƵŶŝǀĞƌƐĂů͕ůĞŐĂůůǇďŝŶĚŝŶŐŐůŽďĂůĐůŝŵĂƚĞĐŚĂŶŐĞĂŐƌĞĞŵĞŶƚ͕ĂĚŽƉƚĞĚĂƚ ƚŚĞ WĂƌŝƐ ĐůŝŵĂƚĞ ĐŽŶĨĞƌĞŶĐĞ ;KWϮϭͿ ŝŶ ĞĐĞŵďĞƌ ϮϬϭϱ͘ dŚĞŶ ŝƚ ŝƐ ƚŚĞ ŵŽƐƚ ŝŵƉŽƌƚĂŶƚ ŝŶƚĞƌŶĂƟŽŶĂůĂŐƌĞĞŵĞŶƚƌĞŐĂƌĚŝŶŐĐůŝŵĂƚĞĐŚĂŶŐĞĂŶĚĞŶǀŝƌŽŶŵĞŶƚĂůƐƵƐƚĂŝŶĂďŝůŝƚǇ͘dŚĞWĂƌŝƐŐƌĞĞŵĞŶƚƐĞƚƐŽƵƚĂŐůŽďĂůĨƌĂŵĞǁŽƌŬƚŽĂǀŽŝĚĚĂŶŐĞƌŽƵƐĐůŝŵĂƚĞĐŚĂŶŐĞďǇůŝŵŝƟŶŐŐůŽďĂůǁĂƌŵŝŶŐƚŽǁĞůůďĞůŽǁϮΣĂŶĚƉƵƌƐƵŝŶŐĞīŽƌƚƐ ƚŽ ůŝŵŝƚ ŝƚ ƚŽ ϭ͘ϱΣ͘ Paris Agreement Target: limiting global warming to well below 2°C
above pre-industrial levels (1850-1900) dŽŵĞĞƚƚŚŝƐŐŽĂů͕ŐůŽďĂůKϮĞŵŝƐƐŝŽŶƐŶĞĞĚƚŽďĞƌĞĚƵĐĞĚďǇϰϱйďǇϮϬϯϬĨƌŽŵϮϬϭϬůĞǀĞůƐ͕ĂŶĚƌĞĂĐŚŶĞƚͲǌĞƌŽĞŵŝƐƐŝŽŶƐďǇϮϬϱϬ͕ĂƐƐƚĂƚĞƐďǇƚŚĞhŶŝƚĞĚEĂƟŽŶƐŝŶƚŚĞ^ƵƐƚĂŝŶĂďůĞĞǀĞůŽƉŵĞŶƚ'ŽĂůŶ͘ϭϯ͞ůŝŵĂƚĞĐƟŽŶ͘͟/ƚŝƐŝŵƉŽƌƚĂŶƚƚŽŶŽƚĞƚŚĂƚƚŚĞŐŽĂůŽĨƚŚĞWůĂŶĞƚ͕ƐĞƚďǇ
ƚŚĞWĂƌŝƐŐƌĞĞŵĞŶƚ͕ŝƐƌĞůĂƚĞĚƚŽƚŚĞĐŽŶƚĂŝŶŵĞŶƚŽĨƚŚĞƚĞŵƉĞƌĂƚƵƌĞŝŶĐƌĞĂƐĞďĞůŽǁϮĚĞŐƌĞĞƐĐŽŵƉĂƌĞĚ
ƚŽƉƌĞͲŝŶĚƵƐƚƌŝĂůůĞǀĞůƐ͘/ŶŽƌĚĞƌƚŽƉƵƌƐƵĞƚŚŝƐŐŽĂů͕ŐůŽďĂůKϮĞŵŝƐƐŝŽŶƐǁŝůůďĞƌĞĚƵĐĞĚďǇϰϱйŝŶϮϬϯϬĐŽŵƉĂƌĞĚƚŽϮϬϭϬ͘/ƚŝƐŝŵƉŽƌƚĂŶƚƚŽŶŽƚĞƚŚĂƚƚŚĞĮƌƐƚŐŽĂůŚĂƐĂƐŝƚƐƌĞĨĞƌĞŶĐĞǇĞĂƌƐƚŚĞƉĞƌŝŽĚϭϴϱϬͲϭϵϬϬ͕ǁŚŝůĞ
ƚŚĞƐĞĐŽŶĚƚĂƌŐĞƚŚĂƐĂƐŝƚƐƌĞĨĞƌĞŶĐĞǇĞĂƌϮϬϭϬ͘/ŶŽƌĚĞƌƚŽƐĞƚĂƌĞůŝĂďůĞĞŶǀŝƌŽŶŵĞŶƚĂůƐƵƐƚĂŝŶĂďŝůŝƚǇƚĂƌŐĞƚdEŚĂƐĐŚŽƐĞŶƚŚĞŵĞƚŚŽĚŽůŽŐǇƉƌŽƉŽƐĞĚďǇ^ĐŝĞŶĐĞĂƐĞĚdĂƌŐĞƚǁŚŝĐŚƉƌŽǀŝĚĞƐĐŽŵƉĂŶŝĞƐǁŝƚŚĂĐůĞĂƌůǇͲĚĞĮŶĞĚƉĂƚŚƚŽƌĞĚƵĐĞ ĞŵŝƐƐŝŽŶƐ ŝŶ ůŝŶĞ ǁŝƚŚƚŚĞWĂƌŝƐŐƌĞĞŵĞŶƚŐŽĂůƐ͘dĂƌŐĞƚƐĂƌĞĐŽŶƐŝĚĞƌĞĚ͚ƐĐŝĞŶĐĞͲďĂƐĞĚ͛ŝĨƚŚĞǇĂƌĞŝŶůŝŶĞǁŝƚŚǁŚĂƚƚŚĞůĂƚĞƐƚĐůŝŵĂƚĞƐĐŝĞŶĐĞĚĞĞŵƐŶĞĐĞƐƐĂƌǇƚŽŵĞĞƚƚŚĞŐŽĂůƐŽĨƚŚĞWĂƌŝƐŐƌĞĞŵĞŶƚʹůŝŵŝƟŶŐŐůŽďĂůǁĂƌŵŝŶŐƚŽǁĞůůͲďĞůŽǁϮΣĂďŽǀĞƉƌĞͲŝŶĚƵƐƚƌŝĂůůĞǀĞůƐĂŶĚƉƵƌƐƵŝŶŐĞīŽƌƚƐƚŽůŝŵŝƚǁĂƌŵŝŶŐƚŽϭ͘ϱΣ͘dŚĞƚĂƌŐĞƚƚŚĂƚdEŚĂƐƐĞƚŝƚƐĞůĨƵƐŝŶŐƚŚĞ^ĐŝĞŶĐĞĂƐĞĚŵĞƚŚŽĚŽůŽŐǇŝƐƚŚĞƌĞĨŽƌĞŝŶůŝŶĞǁŝƚŚƚŚĂƚŽĨƚŚĞWĂƌŝƐŐƌĞĞŵĞŶƚĂŶĚŝƐƚŚĞƌĞĨŽƌĞĂůƐŽŝŶůŝŶĞǁŝƚŚhEŐŽĂůϭϯ;ƚŽƌĞĚƵĐĞKϮĞŵŝƐƐŝŽŶƐďǇϰϱйŝŶϮϬϯϬĐŽŵƉĂƌĞĚƚŽϮϬϭϬͿ͘Why does TN only need to reduce its emissions by 27.5% if the UN
goal says 45%? Because TN has chosen 2019 as its base year and not 2010͕ƚŚĞďĂƐĞǇĞĂƌĐŚŽƐĞŶĨŽƌhEƚĂƌŐĞƚϭϯ͘ǇĞŶƚĞƌŝŶŐŝŶƚŽƚŚĞĐĂůĐƵůĂƟŽŶƚŽŽůƉƌŽƉŽƐĞĚďǇ^ĐŝĞŶĐĞĂƐĞĚdĂƌŐĞƚƚŚĞ^ĐŽƉĞϭĂŶĚ^ĐŽƉĞϮKϮĞŵŝƐƐŝŽŶƐŽĨϮϬϭϵ;dE͛ƐďĂƐĞǇĞĂƌͿĂŶĚdE͛ƐƉƌŽĚƵĐƟŽŶƐĂŶĚĐŚŽŽƐŝŶŐϮϬϯϬĂƐƚŚĞƚĂƌŐĞƚǇĞĂƌ͕ƚŚĞƚŽŽůĐĂůĐƵůĂƚĞĚƚŚĂƚƚŽďĞŝŶĐŽŵƉůŝĂŶĐĞǁŝƚŚƚŚĞWĂƌŝƐŐƌĞĞŵĞŶƚdEŵƵƐƚƌĞĚƵĐĞŝƚƐĞŵŝƐƐŝŽŶƐďǇϮϳ͘ϱй͘

SUSTAINABILITY

CO2 TARGET

HOW WASOUR TARGET
BUILT?

TN full control

TN NOT full control
depends on
our supply chain

OUR TARGET: -27.5% Tons CO2 BY 2030 COMPARED TO 2019132.619182.923

166.276

190.849

169.204164.631160.058

155.485

150.911146.338141.765

137.192

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

181

2021

TARGET
2022

JAPAN

2,3

2,0

EUROPE

1,4

1,3

AMERICAS
25.855 TONS CO2
JAPAN29.894 TONS CO2

CERAMIC

35,9*

31,8

CERAMIC
3.261 TONS CO2

CHINA

2,3

2,0

AMERICAS

1,9

1,7

TSUBAKI NAKASHIMA

1,9

1,7

TOTAL QUANTITY OF CO2 TONS (SCOPE 1 AND SCOPE 2)
PRODUCED IN 2021
3.261

CHINA
73.336 TONS CO2EUROPE
58.503 TONS CO2

CARBON FOOTPRINT (TON CO2 / TON)SUSTAINABILITY

CO2 EMISSIONSQUANTITY OF CO2 TONS (SCOPE 1 AND SCOPE 2)
PRODUCED PER TON OF PRODUCT

73.336TSUBAKI NAKASHIMA
190.849 TONS CO2*the KPI concerning the ceramic region for 2021 has been adjusted with respect
to what was shown in the preliminary report “ESG_Report_2021_Digest”.
dŚŝƐŝƐĚƵĞƚŽĂĐŽƌƌĞĐƟŽŶŽĨƚŚĞŝŶƉƵƚĚĂƚĂŝŶƐĞƌƚĞĚĨŽƌƚŚĞĐĂůĐƵůĂƟŽŶŽĨƚŚĞĐĂƌďŽŶĨŽŽƚƉƌŝŶƚ;ƉƌŽĚƵĐƟŽŶĚĂƚĂĂƚƚŚĞĚĞŶŽŵŝŶĂƚŽƌĚŝīĞƌĞŶƚͿ͘

183

CO2 EMISSIONS OFSCOPE 1 AND SCOPE 2

comes from the energyĐŽŶƐƵŵƉƟŽŶ͗
Scope 1 emissions
are about Fossil fuelsĐŽŵďƵƐƟŽŶĂŶĚ
Scope 2 emissions
about electricityĐŽŶƐƵŵƉƟŽŶ͘/ŶϮϬϮϬĂĚƌŽƉŝŶK2
ĞŵŝƐƐŝŽŶƐŝƐŽďƐĞƌǀĞĚǁŚŝĐŚŝƐĚƵĞƚŽƚŚĞƉĂŶĚĞŵŝĐĨƌŽŵŽǀŝĚĂŶĚƚŚĞƌĞĨŽƌĞůĞƐƐƉƌŽĚƵĐƟŽŶ͘

CO2 TOTAL EMISSIONS - SCOPE 1 AND SCOPE 2 - IN TONS
182.923

166.276

190.849

169.204

SUSTAINABILITY

CO2 EMISSIONSCARBON FOOTPRINT (SCOPE 1 & SCOPE 2) TONS CO2 / TON PRODUCT
1,8

2,0

1,9

1,7

CARBON FOOTPRINTTARGET has alsoďĞĞŶƐĞƚ͕ǁŚŝĐŚŵƵƐƚƚŚĞƌĞĨŽƌĞƌĞŇĞĐƚƚŚĞƌĞĚƵĐƟŽŶŝŶK2͘
This parameter isĂŶŝŶĚŝĐĂƚŽƌŽĨƚŚĞ“environmental”
ĞĸĐŝĞŶĐǇŽĨƚŚĞ
company (amountŽĨK2ĞŵŝƩĞĚƚŽƉƌŽĚƵĐĞŽŶĞƚŽŶŽĨƉƌŽĚƵĐƚͿ͕ĂŶĚŝƚ͛Ɛ
able to represent
the SUSTAINABLE

TN IS COMMITTEDTO REDUCINGITS EMISSIONS IN 2022
FROM 190.849 TONS CO2
TO 169.204 TONS CO2.

īĞĐƟǀĞĂĐƟŽŶƉůĂŶƐĂŶĚƉƌŽũĞĐƚ͕ĐŽŶƟŶƵŽƵƐĐŽŶƚƌŽůĂŶĚŵŽŶŝƚŽƌŝŶŐŽĨK2ĞŵŝƐƐŝŽŶƐĚĂƚĂǁŝůůĂůƐŽĂǀŽŝĚƚŚĞ
green washingĞīĞĐƚ͘/ŶĂĚĚŝƟŽŶƚŽƚŚĞƚĂƌŐĞƚŽŶƚŽƚĂůK2ĞŵŝƐƐŝŽŶƐ͕Ă

GROWTHŽĨĂĐŽŵƉĂŶǇ͘

2019

2020
Lower emissions
due to pandemic

2021

2022

2019

2020

2021

2022
185

RELAMPING
WITH LED
LIGHTSSOLAR
ENERGYHEATTREATMENT
MAINTENANCE AND
OPTIMIZATION

35/342MONOZUKURIPROJECTSHEATTREATMENT

insulation

31%

FLASHING

electric
motors optimization

26%

GRINDING

pressure andelectric motors
optimization

19%

ENERGY BALANCELAPPING

CO2 REDUCTION GOAL
ENGINE
POWER
REDUCTIONCOMPRESSOR
MAINTENANCE
AND
OPTIMIZATION

IoT (INTERNET
OF THINGS)DEVICE SENSOR
AND AUTOMATIC
CONTROLSSUSTAINABILITY

HOW TO REACH 2022

PREDICTIVE
MAINTENANCE

included in BP2022(10,2% of the projects
are related to sustainability)
will generate

9.250 TON

CO2 REDUCTIONHEADING

time cycle
production
optimization optimization

14%

10%

2030

TARGET187

ENERGY INTENSITY (MWh / TON PRODUCT)2021

TARGET
2022

JAPAN

3,1

2,7

EUROPE

2,5

2,4

CERAMIC

49,5*

44,0

CHINA

2,2

2,0

AMERICAS

4,0

3,1

TSUBAKI NAKASHIMA

2,7

2,4

ENERGY CONSUMPTION BREAKDOWN 2021
JAPAN
15%

AMERICAS
21%

EUROPE
37%

CHINA
26%

CERAMIC2%% OF GREEN ENERGY = 26%
TSUBAKI NAKASHIMA 276.309 MWh

SUSTAINABILITY

ENERGYQUANTITY OF ENERGYCONSUMED PER TON OF PRODUCT*the KPI concerning the ceramic region for 2021 has been adjusted with respect
to what was shown in the preliminary report “ESG_Report_2021_Digest”.
dŚŝƐŝƐĚƵĞƚŽĂĐŽƌƌĞĐƟŽŶŽĨƚŚĞŝŶƉƵƚĚĂƚĂŝŶƐĞƌƚĞĚĨŽƌƚŚĞĐĂůĐƵůĂƟŽŶŽĨƚŚĞĐĂƌďŽŶĨŽŽƚƉƌŝŶƚ;ƉƌŽĚƵĐƟŽŶĚĂƚĂĂƚƚŚĞĚĞŶŽŵŝŶĂƚŽƌĚŝīĞƌĞŶƚͿ͘

189

OF REDUCING ENERGY CONSUMPTION BY 2022 AND, WITH A FOCUS ON SUSTAINABLE GROWTH,INTENDS TO ACHIEVE IT THROUGH A SET OF KEY ENERGY AND TECHNOLOGICAL INNOVATION PROJECTS.

ENERGY30%

SUSTAINABILITY

ENERGYGREEN

In order to achieve the CO2ƌĞĚƵĐƟŽŶƚĂƌŐĞƚ͕dEŚĂƐĂůƐŽƐĞƚŝƚƐĞůĨ ENERGY EFFICIENCY TARGETS͘dEŚĂƐĂůǁĂǇƐĨŽĐƵƐĞĚŽŶĞŶĞƌŐǇĞĸĐŝĞŶĐǇĂŶĚƌĞĚƵĐŝŶŐĞŶĞƌŐǇĐŽŶƐƵŵƉƟŽŶ͕ĂŶĚƚŚŝƐŝƐĞǀŝĚĞŶƚĨƌŽŵƚŚĞƚƌĞŶĚŝŶƚŚĞŐƌĂƉŚ͘dŚĂŶŬƐƚŽƚŚĞĂĐƟŽŶƐĐĂƌƌŝĞĚŽƵƚŽǀĞƌƚŚĞǇĞĂƌƐ͕ϮϬϮϭŝƐƚŚĞǇĞĂƌǁŝƚŚƚŚĞůŽǁĞƐƚŝŶĚŝĐĂƚŽƌ Žƌ ƚŚĞ ŵŽƐƚ ĞŶĞƌŐǇ ĞĸĐŝĞŶƚ ǇĞĂƌ͘ TN HAS SET ITSELF A CHALLENGING TARGET IN TERMS

ENERGY INTENSITY (MWh/ TON PRODUCT)
on the basis of the reduction in CO2 of Scope 1 and Scope 2 calculated by Science Based
Target, the relative reduction in energy consumption has been calculated

29%
28%

2.9

27%

2.7

26%
25%

2.5

24%
23%
22%
2019

2020

2021

2022

% OF RENEWABLE SOURCES /ŶĂĚĚŝƟŽŶƚŽĞŶĞƌŐǇĞĸĐŝĞŶĐǇĞīŽƌƚƐdEǁŝůůĂůƐŽĞŶŐĂŐĞin the TRANSITION TO RENEWABLE ENERGY͘&ŽƌƚŚŝƐƌĞĂƐŽŶ͕ŽŶĞŽĨƚŚĞŬĞǇƚĂƌŐĞƚƐŝŶƚŚĞĐŽŵŝŶŐǇĞĂƌƐŝƐƚŽ INCREASE

THE PERCENTAGE OF RENEWABLE ENERGY CONSUMED.

2019

2020

2021

2022
191

SUSTAINABILITY

ENERGYRENEWABLE ENERGY USEdƐƵďĂŬŝEĂŬĂƐŚŝŵĂĞǆƉĞĐƚƐŝƚƐĞŶĞƌŐǇƵƐĞƚŽŝŶĐƌĞĂƐĞĂƐƉƌŽĚƵĐƟŽŶŝŶĐƌĞĂƐĞƐin line with its long-term growth strategy. The use of renewable energy (energyĨƌŽŵŶĂƚƵƌĂůƐŽƵƌĐĞƐͿŝƐŽŶĞŽĨƚŚĞŵŽƐƚĞīĞĐƟǀĞǁĂǇƐƚŽƌĞĚƵĐĞ','ĞŵŝƐƐŝŽŶƐ͘
Accordingly, Tsubaki Nakashima is IMPLEMENTING PLANS to expand its useŽĨ ƌĞŶĞǁĂďůĞ ĞŶĞƌŐǇ ůŽŶŐͲƚĞƌŵ͘ ,ŽǁĞǀĞƌ͕ ƚŚĞƌĞ ĂƌĞ ŽďƐƚĂĐůĞƐ ƚŽ ĞǆƉĂŶĚŝŶŐƌĞŶĞǁĂďůĞĞŶĞƌŐǇƵƐĞ͕ŝŶĐůƵĚŝŶŐĐŽƐƚƐĂŶĚƐƵƉƉůǇůŝŵŝƚĂƟŽŶƐŝŶƐŽŵĞƌĞŐŝŽŶƐ͘
Recognizing that there is nothing one company alone can do about theseobstacles, we decided to declare our support for the important policyƌĞĐŽŵŵĞŶĚĂƟŽŶƐ ďĞƐŝĚĞ ĂƐ ŽŶĞ ƐŽůƵƟŽŶ͘ dŚĞ ƌĞĂůŝǌĂƟŽŶ ŽĨ ƚŚĞƐĞƌĞĐŽŵŵĞŶĚĂƟŽŶƐǁŝůů MAKE IT EASIER TO TAKE ACTIONS THAT MINIMIZE THE
IMPACT ON FUTURE CLIMATE CHANGE͘ ŽŽƌĚŝŶĂƚĞĚ ŐůŽďĂů ĂĐƟŽŶ ŝƐ ĞƐƐĞŶƟĂů
ƚŽĐŽŵďĂƚĐůŝŵĂƚĞĐŚĂŶŐĞ͘tĞĂƚdƐƵďĂŬŝEĂŬĂƐŚŝŵĂǁŝůůƚŚĞƌĞĨŽƌĞĐŽŶƟŶƵĞŽƵƌĞīŽƌƚƐ ƚŽǁĂƌĚƐ ĚĞĐĂƌďŽŶŝǌĂƟŽŶ͕ ŝŶĐůƵĚŝŶŐ ďǇ ƐƵƉƉŽƌƟŶŐ ĨƵƚƵƌĞ ƐƵĐŚƌĞĐŽŵŵĞŶĚĂƟŽŶƐ͘ /Ŷ ƐƉĞĐŝĮĐ͕ ĂĐĐŽƌĚŝŶŐ ƚŽ ƚŚĞ 'ůŽďĂů ^ƵƐƚĂŝŶĂďŝůŝƚǇ ^ǇƐƚĞŵ͕all our sites and businesses are IMPLEMENTING ENERGY-SAVING MEASURES andŝŶĐƌĞĂƐŝŶŐƚŚĞƵƐĞŽĨƌĞŶĞǁĂďůĞĞŶĞƌŐǇƚŽĂĐŚŝĞǀĞŽƵƌƚĂƌŐĞƚƐ͘/Ŷ ĞǀĞƌǇ ƉůĂŶƚ͕ ƚŽ ƌĞĚƵĐĞ ĮǆĞĚ ƉŽǁĞƌ ĐŽŶƐƵŵƉƟŽŶ͕ ǁĞ ŝŶƐƚĂůůĞĚ͕ ĂŶĚ ǁĞ ĂƌĞƉƌŽŵŽƟŶŐƚŚĞUSE OF LEDS FOR FLUORESCENT AND MERCURY LAMPS and the

INTRODUCTION OF HIGH-EFFICIENCY BOILERS, HYDRAULIC UNITS, AND OTHER
EQUIPMENT WITH LOW ENERGY CONSUMPTION ǁŚĞŶ ƌĞŶĞǁŝŶŐ ĨĂĐŝůŝƟĞƐ͘tĞŚĂǀĞĂůƐŽďĞĞŶǁŽƌŬŝŶŐŽŶ REDUCING FUEL CONSUMPTION by renewing orĞůŝŵŝŶĂƟŶŐ ďŽŝůĞƌƐ ĂŶĚ ƌĞĚƵĐŝŶŐ ĞůĞĐƚƌŝĐŝƚǇ ĐŽŶƐƵŵƉƟŽŶ ƚŚƌŽƵŐŚ ĞĸĐŝĞŶƚ
ŽƉĞƌĂƟŽŶ ŽĨ ĂŝƌͲĐŽŶĚŝƟŽŶŝŶŐ ĞƋƵŝƉŵĞŶƚ ĂŶĚ ĐŽŵƉƌĞƐƐŽƌƐ͖ ǁĞ ĂƌĞ ĂůƐŽƉƌŽŵŽƟŶŐ ƚŚĞ ŝŶƐƚĂůůĂƟŽŶ ŽĨ ƐŽůĂƌ ƉĂŶĞůƐ ĂŶĚ ƵƐĞ ŽĨ ĞůĞĐƚƌŝĐĂů ǀĞŚŝĐůĞƐ͘KŶ ƚŽƉ ŽĨ ŝƚ ĂŶĚ ƚŽ ƌĞĚƵĐĞ ĞŶĞƌŐǇ ĐŽŶƐƵŵƉƟŽŶ ŝŶ ŵĂŶƵĨĂĐƚƵƌŝŶŐ͕ Ă ƌĞĐĞŶƚůǇĐƌĞĂƚĞĚ WƌŽũĞĐƚ ŚĂƐ ďĞĞŶ ĚĞǀĞůŽƉĞĚ͕ ůĞĚ ďǇ DŽŶŽǌƵŬƵƌŝ͛Ɛ 'ůŽďĂů &ƵŶĐƟŽŶ͕ĂƐƐŝƐƚĞĚ ďǇ ƚŚĞ ,ZK͘ dŚĞ ŝŶƚĞƌŶĂƟŽŶĂů ƐƚĂŶĚĂƌĚ /^K ϱϬϬϬϮ ĚĞĮŶĞƐ Ăůů ƚŚĞƉƌŽĐĞƐƐůĞĂĚŝŶŐƚŽƚŚĞŝĚĞŶƟĮĐĂƟŽŶŽĨŽƉƉŽƌƚƵŶŝƟĞƐĨŽƌŝŵƉƌŽǀĞŵĞŶƚŽĨĞŶĞƌŐǇ
performance and the ENERGY AUDIT PROCESS is a simple chronologicalƐĞƋƵĞŶĐĞ ŽĨ ƐƉĞĐŝĮĐ ĂĐƟǀŝƟĞƐ ƚŚĂƚ ĂůůŽǁƐ ŽƵƌ WůĂŶƚƐ ƚŽ ŝŵƉƌŽǀĞ ƚŚĞŝƌ ĞŶĞƌŐǇƉĞƌĨŽƌŵĂŶĐĞ͕ƌĞĚƵĐĞĞŶĞƌŐǇĐŽŶƐƵŵƉƟŽŶĂŶĚŽďƚĂŝŶĞŶǀŝƌŽŶŵĞŶƚĂůďĞŶĞĮƚƐ͘KƵƌ 'ůŽďĂů ^ƵƐƚĂŝŶĂďŝůŝƚǇ ^ǇƐƚĞŵ ŝƐ ďĂƐĞĚ ŽŶ /^K ϭϰϬϬϭ ;ŶǀŝƌŽŶŵĞŶƚͿ͕
/^KϰϱϬϬϭ;,ĞĂůƚŚĂŶĚ^ĂĨĞƚǇͿĂŶĚ/^KϱϬϬϬϭ;ŶĞƌŐǇͿ͖ƚŚĞĨƵůůŝŵƉůĞŵĞŶƚĂƟŽŶof it allows our Plants:

TO BE COMPLIANT WITH MANDATORYAND VOLUNTARY STANDARDS ON ENERGYAND ENVIRONMENTAL ISSUESTO IMPROVE
ENERGY PERFORMANCETO INFORM SUPPLIERS
THAT PRODUCTS PURCHASEIS SUBORDINATETO ENERGY SAVINGTO ANALYZE PROCESSES FROMENERGY PERSPECTIVE AIMINGAT REACHING A DEEP KNOWLEDGE
TO IMPLEMENT/IMPROVEMONITORING SYSTEMOF ENERGY CONSUMPTIONSTO INTERNALLY COMMUNICATEAND SHARE ENERGYMANAGEMENT SYSTEMTO EVALUATE OPPORTUNITYTO BUY HIGHLY EFFICIENT PLANT
AND EQUIPMENT
193

WATER FOOTPRINT (M3 / TON PRODUCT)2021

TARGET
2022

JAPAN

3,3

3,2

EUROPE

3,1

3,1

CERAMIC

3,8

3,7

CHINA

3,3

3,3

AMERICAS

2,6

2,6

TSUBAKI NAKASHIMA

3,1

3,1

WATER CONSUMPTION BREAKDOWN 2021
AMERICAS
11%
JAPAN
14%
CHINA
34%

EUROPE41%% OF DISCHARGED WATER = 46%
TSUBAKI NAKASHIMA 317.226 M3

SUSTAINABILITYWATER

QUANTITY OF WATERCONSUMED PER TON OF PRODUCT195

WATER

is generated during processing. In order to reduce the amount of sludge generated, we are working toŝŵƉƌŽǀĞŽƵƌŵĂŶƵĨĂĐƚƵƌŝŶŐƚĞĐŚŶŽůŽŐǇ͘dŚĞǁĂƚĞƌͲƐŽůƵďůĞĐƵƫŶŐŇƵŝĚƵƐĞĚŝŶƚŚĞƉŽůŝƐŚŝŶŐƉƌŽĐĞƐƐis recycled by removing the shavings and returning them to the process, which leads to waterĐŽŶƐĞƌǀĂƟŽŶ͘ /Ŷ ĂĚĚŝƟŽŶ͕ ƚŚĞ ƐůƵĚŐĞ ŐĞŶĞƌĂƚĞĚ ŝƐ ĐŽŵƉĂĐƚĞĚ ƚŽ ƌĞŵŽǀĞ ƚŚĞ ǁĂƚĞƌ ĐŽŶƚĞŶƚ ĂŶĚ ƚŚĞƌĞƐŝĚƵĞŝƐƚƵƌŶĞĚŝŶƚŽǀĂůƵĂďůĞƌĞƐŽƵƌĐĞƐƚŽƌĞĚƵĐĞƚŚĞƚŽƚĂůĂŵŽƵŶƚŽĨǁĂƐƚĞ͘^ŝŵŝůĂƌĞīŽƌƚƐĂƌĞĂůƐŽďĞŝŶŐŵĂĚĞƚŽƌĞƵƐĞǁĂƚĞƌͲƐŽůƵďůĞĐƵƫŶŐŇƵŝĚƐŝŶƚŚĞďĂůůƐĐƌĞǁĐƵƫŶŐƉƌŽĐĞƐƐƚŚƌŽƵŐŚĮůƚƌĂƟŽŶĂŶĚĐŝƌĐƵůĂƟŽŶ͘

WATER FOOTPRINTPRESERVATION OF WATER RESOURCES

3,14

3,15

3,10

3,10

3,08

3,05
3,00
2,95
2,90

SUSTAINABILITYCOOLANTS In the manufacture of precision balls, coolant is used for processing, and sludge

2,88

2,85
2,80

Water and climate change, as well as other environmental factors, are closely linked. TsubakiEĂŬĂƐŚŝŵĂ͛ƐĨĂĐƚŽƌŝĞƐƌĞůǇŽŶǁĂƚĞƌƌĞƐŽƵƌĐĞƐ͕ĂŶĚƚŚĞƐƵƐƚĂŝŶĂďŝůŝƚǇŽĨǁĂƚĞƌƌĞƐŽƵƌĐĞƐƐƵďƐƚĂŶƟĂůůǇ
ĂīĞĐƚƐ ďƵƐŝŶĞƐƐ ĐŽŶƟŶƵŝƚǇ͘ 'ŝǀĞŶ ƚŚŝƐ͕ ǁĞ ĂƌĞ ǁŽƌŬŝŶŐ ƚŽ ƉƌĞƐĞƌǀĞ ǁĂƚĞƌ ƌĞƐŽƵƌĐĞƐ ďǇ ĂǀŽŝĚŝŶŐƵŶŶĞĐĞƐƐĂƌǇĐŽŶƚĂŵŝŶĂƟŽŶĂŶĚƵƐĞ͕ĂŶĚďǇƌĞĐǇĐůŝŶŐƚŚĞǁĂƚĞƌǁĞĚŽƵƐĞ͘tĞĂĐƟǀĞůǇƐƚƌŝǀĞƚŽŝŶĐƌĞĂƐĞ
ƚŚĞ ƌĂƚĞ ŽĨ ŝŶĚƵƐƚƌŝĂů ǁĂƐƚĞǁĂƚĞƌ ƚŚĂƚ ŝƐ ƌĞĐǇĐůĞĚ ŝŶ ŽƵƌ ƉƌŽĚƵĐƟŽŶ ƉƌŽĐĞƐƐĞƐ ĂŶĚ ƚŽ ŵĞĞƚ ƐƚƌŝĐƚ
ǁĂƚĞƌƋƵĂůŝƚǇƐƚĂŶĚĂƌĚƐ͘tĞĂƌĞĂůƐŽŵŝƟŐĂƟŶŐŽƵƌŽǀĞƌĂůů
environmental impacts, including by introducingŵŽƌĞĞŶĞƌŐǇĞĸĐŝĞŶƚǁĂƚĞƌƉƌŽĐĞƐƐŝŶŐĨĂĐŝůŝƟĞƐ͘KƵƌĞīŽƌƚƐĞǆƚĞŶĚďĞǇŽŶĚƚŚĞǁĂƚĞƌƵƐĞĚŝŶŽƵƌƉƌŽĚƵĐƟŽŶƉƌŽĐĞƐƐĞƐ͘tĞĞŶƐƵƌĞ
that all employees have access to safe
drinking water, as well as sanitary kitchensĂŶĚƌĞƐƚƌŽŽŵĨĂĐŝůŝƟĞƐ͘DŽƌĞŽǀĞƌǁĞŵĂŬĞour employees aware of the importance ofƐĂǀŝŶŐǁĂƚĞƌĂŶĚƉƌĞǀĞŶƟŶŐǁĂƚĞƌƉŽůůƵƟŽŶ͕ĂŶĚǁĞŝŶƐƚĂůůǁĂƚĞƌͲƐĂǀŝŶŐĮǆƚƵƌĞƐĂŶĚƐĂŶŝƚĂƟŽŶĨĂĐŝůŝƟĞƐ͘

2,75
2019

2020

2021

2022

M3 / TON PRODUCT197

RECYCLED RATE (%)
2021

TARGET
2022

JAPAN

51%

55%

EUROPE

33%

35%

AMERICAS
871 TONS CO2
JAPAN2.967 TONS CO2

CERAMIC

28%

30%

CERAMIC
163 TONS CO2

CHINA

36%

39%

AMERICAS

10%

11%

TSUBAKI NAKASHIMA

31%

33%

TONS OF RECYCLED WASTE
163

CHINA
2.931 TONS CO2EUROPE
4.208 TONS CO2

4.208

TSUBAKI NAKASHIMA
11.140 TONSŽƚŚƚŚĞĚĞĮŶŝƟŽŶŽĨǁĂƐƚĞĂŶĚŝƚƐĂĐƚƵĂůƉŽƐƐŝďŝůŝƚǇŽĨďĞŝŶŐƌĞĐǇĐůĞĚĚĞƉĞŶĚŶŽƚŽŶůǇŽŶŽďũĞĐƟǀĞĂŶĚŵĂƌŬĞƚĨĂĐƚŽƌƐ͕ďƵƚĂďŽǀĞĂůůŽŶƚŚĞůĞŐŝƐůĂƟŽŶŽĨĞĂĐŚĐŽƵŶƚƌǇ͘/ŶĚĞĞĚ͕ŝƚŝƐŶŽƚƵŶĐŽŵŵŽŶĨŽƌƚŚĞƐĂŵĞǁĂƐƚĞ ŐĞŶĞƌĂƚĞĚ ďǇ ƚŚĞ ƐĂŵĞ ƉƌŽĚƵĐƟŽŶ ƉƌŽĐĞƐƐ͕ ďƵƚ ŝŶ ĚŝīĞƌĞŶƚ ĐŽƵŶƚƌŝĞƐ͕ ƚŽ ŚĂǀĞ Ă ĚŝīĞƌĞŶƚ
ĐŽĚŝĮĐĂƟŽŶĂŶĚƚŚƵƐĞŝƚŚĞƌŚĂǀĞƚŽŐŽƚŽĚŝƐƉŽƐĂůŽƌďĞĂďůĞƚŽďĞƌĞĐŽǀĞƌĞĚ͘SUSTAINABILITYWASTE

QUANTITY OF RECYCLED WASTE

199

SUSTAINABILITYWASTERESOURCES/FORMINGA CIRCULAR ECONOMY% RECYCLED WASTEdŽĐŽŶƚƌŝďƵƚĞƚŽƚŚĞĨŽƌŵĂƟŽŶŽĨĂĐŝƌĐƵůĂƌĞĐŽŶŽŵǇŝŶǁŚŝĐŚǁĂƐƚĞŝƐŵŝŶŝŵŝǌĞĚ͕dƐƵďĂŬŝEĂŬĂƐŚŝŵĂŝƐǁŽƌŬŝŶŐƚŽƌĞĚƵĐĞĞŵŝƐƐŝŽŶƐĂŶĚƉƌĞƐĞƌǀĞǁĂƚĞƌƌĞƐŽƵƌĐĞƐŝŶŝƚƐƉƌŽĚƵĐƟŽŶƉƌŽĐĞƐƐĞƐ͘ZERO EMISSIONS

30%Ɛ ƉĞƌ ŽƵƌ sŝƐŝŽŶ ĞƌŽ ƉƉƌŽĂĐŚ͕ dƐƵďĂŬŝ EĂŬĂƐŚŝŵĂ ŝƐ ǁŽƌŬŝŶŐ ƚŽǁĂƌĚ ǌĞƌŽ ĞŵŝƐƐŝŽŶƐ ďǇ ƌĞĚƵĐŝŶŐŐĞŶĞƌĂƚĞĚďƵƐŝŶĞƐƐǁĂƐƚĞĂŶĚƌĞĐǇĐůŝŶŐ͘tĂƐƚĞƐĂƌĞŐĞŶĞƌĂƚĞĚŝŶŽƵƌƉƌŽĚƵĐƟŽŶƉƌŽĐĞƐƐĞƐ͕ŽĸĐĞƐ͕ĂŶĚŽƉĞƌĂƟŽŶƐ͘tŚĞƌĞǀĞƌƉŽƐƐŝďůĞ͕ǁĞƌĞĚƵĐĞ͕ƌĞƵƐĞ͕ĂŶĚƌĞĐǇĐůĞƚŚĞƐĞǁĂƐƚĞƐŽŶͲƐŝƚĞ͘WůĂƐƟĐƌƵŶŶĞƌƐĨƌŽŵŵŽůĚŝŶŐƉƌŽĐĞƐƐĞƐĂƌĞƌĞĐǇĐůĞĚ͕ĨŽƌĞǆĂŵƉůĞ͕ĂŶĚZĞDŝĚĂƉƌŽũĞĐƚŝƐĂƐŝŐŶŝĮĐĂŶƚĞǆĂŵƉůĞŽĨƚŚŝƐsŝƐŝŽŶ͘dŚĞƌĞŵĂŝŶŝŶŐǁĂƐƚĞƐ͕ŝŶĐůƵĚŝŶŐǀĂůƵĂďůĞǁĂƐƚĞƐ͕ĂƌĞƌĞĐǇĐůĞĚďǇĂĐŽŶƚƌĂĐƚŽƌ͘tĞĐĂƌĞĨƵůůǇƐŽƌƚĂŶĚƐĞƉĂƌĂƚĞǁĂƐƚĞƐĂŶĚƐĞůĞĐƚƚŚĞďĞƐƚĂǀĂŝůĂďůĞƌĞĐǇĐůŝŶŐŵĞƚŚŽĚƐĂŶĚĐŽŶƚƌĂĐƚŽƌƐĨŽƌĞĂĐŚƚǇƉĞ͘tĞǁŝůůĐŽŶƟŶƵĞƚŽƌĞĚƵĐĞǁĂƐƚĞƐĂŶĚƚŽǁŽƌŬĨŽƌŐĞŶĞƌĂůŝŵƉƌŽǀĞŵĞŶƚŝŶǁĂƐƚĞƉƌŽĐĞƐƐŝŶŐŵĞƚŚŽĚƐ͕ŝŶĐůƵĚŝŶŐďǇĂůůǇŝŶŐǁŝƚŚƌĞĐǇĐůĞƌƐ͘/ŶĞǀĞƌǇ/^KϭϰϬϬϭĞƌƟĮĞĚWůĂŶƚ;ϭϯĨĂĐƚŽƌŝĞƐ͕ŝŶƚŽƚĂůͿǁĞĞŵƉůŽǇĞĚĐŽŶƚƌŽůŵĞƚƌŝĐƐĂŶĚƐƉĞĐŝĮĐ<W/Ɛ͘

25%

20%

15%

10%

2019

2020

2021

2022
201

2.

3.

INITIATIVESANDPROJECTSSUSTAINABILITY

1.

SUSTAINABILITY

6.

4. / 5.

1. Energy analysis of the furnaces [ Poland ]2. New led lighting [ Okayama, Japan ]3. Air gun on grinding machines [ Taiwan ]4. / 5. Ducts and roof renewal [ Sechibaru, Japan ]6. 4BEE Project, apiary established by the factory [ Poland ]
203

3.

INITIATIVESANDPROJECTS5.

SUSTAINABILITY

1.

SUSTAINABILITY

4.

6.
7.

2.

1. Cleaning of the river near the factory [ Katsuragi, Japan ]3. New electric forklift [ India ]4. / 5. Improving of the buildings [ Slovakia ]2. Oxytrees project [ Poland ]6. Electric cars free charge in the factory [ Italy ]7. Bike to work, promoting the use of bikes [ Italy ]
205

207

TSUBAKI NAKASHIMA environmental sustainability goals are in line with global sustainability
targets (Paris Agreement).

THE GROUP REPORTED

It is important to engage our Suppliers in this fight against climate change
and in the transition to environmental sustainability and decarbonization. We believethat all of our suppliers must be committed to the same challenges as we are facing,in other words, those related to environmental sustainability. We also believe that
it is very important to share and support each other in this sustainability roadmap.

SUSTAINABILITYSUSTAINABILITY
AND SUPPLIERSCOMPLIANCE
AND ENVIRONMENTAL
LAWS AND REGULATIONZERO VIOLATIONSOF ENVIRONMENTAL
LAWS AND REGULATIONSIN FISCAL 2021

209

INDEX

PAGES

PAGES

INTRODUCING ESG REPORT AND METHODOLOGICAL NOTE

4-5

OCCUPATIONAL SAFETY AND HEALTH

138 - 151

MESSAGE FROM THE PRESIDENT AND CEO

6-9

RESPONSE TO THE CORONAVIRUS PANDEMIC 2021

152 - 153

TSUBAKI NAKASHIMA AT A GLANCE

10 - 17

INTERNATIONAL EVENTS AND EXTERNAL INITIATIVES

154 - 157

NO MAN IS AN ISLAND

18 - 21

OUR ENVIRONMENT

158 - 165

2021 RESULTS: SALES AND OP

22 - 23SUSTAINABILITY

166 - 209

OUR PRODUCTS

24 - 39

INDEX

210 - 211

CORPORATE VALUES

40 - 53

NOTES

214 - 217QUALITY

54 - 63

MID-TERM STRATEGY

64 - 75

MONOZUKURI

76 - 77

CORPORATE GOVERNANCE

78 - 81

TN VISION ZERO’S APPROACH

82 - 83

TN CONTEXT ANALYSIS

84 - 89

OUR STAKEHOLDERS

90 - 91

SPECIFIC POLICIES

92 - 99

RISK MANAGEMENT SYSTEM

100 - 103

OUR COMMITMENT TO PEOPLE

104 - 137

211

The graphic design and the graphic development of thecontents in this publication were thought and created by
MARIO BOIS, Italian eclectic artist, that expresses his
creativity in different fields, being: graphic designer, actor intheatre and film industry, journalist, director, author andpoet. Since 2021 he’s been working at new strategies andideas for an efficient, creative and impressive corporate
identity and communication for TSUBAKI NAKASHIMA.

213

NOTESNOTES