[Backcover Story] Overseas Contribution Activities: The Philippines
NKC will begin using this CSR Report to introduce the activities of our overseas offices and plants via "featurearticles." As the first shot at this, we want to present the bigger social contribution activities of our Philippines operations in this year's report.
●Aid for typhoon and earthquake victims
Like Japan, the Philippines live with the risk of earthquakes andtyphoons. 2013, in fact, saw heavy damage from both in many
locations across the country. To provide aid to the disaster victims,
NKC's operating base in the Philippines conducted various activities, amongst which were a fund-raising marathon and the collection and distribution of supplies.

●Donations to local elementary schools
NKC's local offices in the Philippine periodically conduct activities
to help elementary schools that lack capital or materials necessary
for them to operate. This includes donating books, chairs andother school items, and serving lunches.

Donated books for students

Lunch in the classroom

May … Posted advertisement in Shinosaka Station

Oct. … Made e-Globaledge Corp. a consolidated subsidiary●Tree planting
In the interest of environmental protection, NKC's local offices in
the Philippine plant mangroves and other tree species.
Participants from the charity
marathon2015 CSR
ReportApril 2014 - March 2015
Activities Report

Staff and collected relief supplies

Dec. … Made Suda Shoji, Inc. a consolidated subsidiary

TABLE OF CONTENTS

Volunteers after a day of tree planting■Editorial policy
NKC prepares and releases this CSR Report in order toshare information on our CSR activities with our customers,
communities that host our operations and others who havea vested interest in us. If you have any thoughts or opinions
about our CSR activities, please share them with us either
via the questionnaire included with this report or via our
corporate website, so that we can reflect them in future
activities.
This report can also be viewed and downloaded from our"CSR & Environment[Their E-site has an "Environmental
Policy" page, but no CSR reports for viewing or download.
page of our corporate website.

■Corporate profile

Established: June 19, 1941
Capital: 2,512.50 million JPY
Representative: Tatsuo Nakanishi, President
Employees; About 2,000
Line of business: Manufacture and sale of bearing retainers,
conveyor systems, sash rollers, pressed metal products, etc.

Feb. … Feted 10th year of business at Wuxi Plant (China)• Period reported: April 2014 - March 2015
• Scope: NKC Head Office, all offices and plants in Japan,

some offices and plants overseas• Date released: 09/15/2015 (Next report slated for releasein June 2016)• Send inquiries to: CSR Group, Head Office Management
Dept., Nakanishi Metal Works Co., Ltd.
3-3-5 Tenmabashi, Kita-ku, Osaka 530-8566
TEL: 06-6351-4832 FAX: 06-6351-7822
URL: www.nkc-j.co.jp
Consideration for the environment was shown in the preparation of this report.

Mar. … Built daycare center at Nabari Plant

Message from the President
CSR Activities
CSR Management
Work Customs & Practices
Occupational Safety & Health
Environmental Protection
Social Contributions

2
3
4-5
6-7
8-9
10-13
14-15

• Final word
In FY2014, we added new members to the NKC Group through M&A.
Each of these companies has built a distinctive corporate culture and hasmuch to teach us, so our job is to share and permeate that throughout
the group so as to enhance our corporate value.
In our midterm business plans, we are targeting sales of 100 billion JPY. We

NKC Vision
A company that constantly
reinvents itself and its
employees are proud to bea part of

1. Principal Mission
2. Compliance with Laws andSocial Norms
3. Information Disclosure
4. Providing a Good Workplace
Environment
5. Environmental Protection
6. Social Contributions
7. Opposition to Antisocial
Inﬂuence
8. International Contributions
9. Promoting Corporate Ethics
10. Enforcement

2
Customers

Suppliers
Local
communities
Globalenvironment
Tatsuo Nakanishi, President＜＜NKC's CSR Policy＞＞

CSR is formulated on the idea that a company can contribute to the sustainable development of society by responsibly and faithfully conducting
business activities with regards to their stakeholders, i.e., shareholders, employees, customers, etc. (See below figure.)
At NKC, we conduct activities based on the flowing CSR policy.

CSR activities at NKC draw their basic concepts from NKC's Vision and Code of Conduct.
Our mission in those activities is to meet the expectations of all of our stakeholders.

Shareholders

Important Fields

Employees

NKC Code of Conduct

See pg. 2

CSR management

Educate workforce in work-related legalities.

Establish BCPs for natural disasters at offices/plants in Japan.
Start developing BCPs at overseas offices/plants.

Compliance

Risk management

Work customs andpracticesWork safety and health• Evaluate compliance with environmental regulations.
• Take preventative measures to protect the environment.
• Impart general environmental education.
• Impart advanced environmental education.
• Impart education and training aimed at acquiring environmental
licenses.
• Reduce CO2 emissions.
• Reduce waste.
• Take part in Fun to Share campaign.
• Create food recycling group.

Environmental education

Environmental load reduction
Environmental protection

Environmental protection• Continually implement and improve an internship program.
• Provide student aid via fundraising.
Strengthen disaster preparedness and cooperate in emergencies
both in Japan and overseas.
Promotion of learning

FY2014
Result

○

○

○

○

○

: Greater efforts needed to achieve target / × : Not implemented• Introduced LED lighting and took other energy-conservation measures.
• Reduced metallic waste, etc.
• Took part in carbon offset initiative. [Special Feature]• Took part in Fun to Share campaign.
• Created food recycling group.
• Donated money and services to hosting local communities.
• Supported blood-drive and fundraising activities of charity organizations.
• Cleaned up and beautified local areas.
• Hired elderly/handicapped persons and accepted interns.
• Donated canes to the needy.
• Cooperated in environmental education events organized by NPOs.
• Managed a scholarship fund for internships and plant tours.
• Strengthened disaster preparedness of local hosting communities.
• Provided relief to disaster-stricken areas.

Imparted general/field-specific environmental education.

○

○

○

○

• Provided regular health exams and personal interviews.
• Promoted mental health awareness via training, etc.
• Improved workplace environments.
• Developed workplace environments for less fatigue/stress by adding rest areas,
improving staircase handrails, etc.
• Underwent environmental audits (ISO14001 recertification/internal).
• Nabari Plant was conferred MOE award.
• Centrally managed licensed personnel in a database.
• Compliant with noise/vibration regulations.
• Compliant with wastewater regulations.
• Verified operations of industrial waste handlers at their sites.
• Used public certification system for selecting industrial waste handlers.

○• Implemented awareness activities on driving etiquette.
• Took part in safe-driving contest sponsored by Osaka Pref.

7

○

12

11 - 12

11

10

9

8

8

8

8

7

○

○

7

6

5

4

4

3

3

○

○

○

○

○

Self-grade• Implement fire patrols. (Verified use of electrical equipment, wiring, etc.)• Conducted fire drills (alarms, firefighting and evacuation).

• Imparted training to new recruits in the Philippines.
• Imparted follow-up training for 2nd and 5th year employees.
• Expanded target management system.
• Started training for new managers/supervisors.
• Launched general commission on work safety/health/environment.
• Launched overseas commission on work safety/health/environment.
• Applied safety standards.
• Stepped up work safety/health training for 7 important jobs at NKC.
• Conferred Zero Accident Awards to Kawachi Plant and the Shiga Plant.
• Analyzed alertness and near misses. Commended the Mie Plant.
• Conducted internal audit of work safety/health.
Verified regulatory compliance using government-issued check list, and collected
information on regulatory updates, etc.

• Started encouraging working from early morning.
• Promoted diversity in our workforce. (Certified as "Leading Company for
Women."Registered "Declaration of Gender Equality .")Adopted flash drive management policy.

• Imparted training for new recruits.
• Educated persons in charge on work-related laws (Security export controls,
Subcontractor Act).
• BCPs established by local offices and group companies.
• BCP development started at 2 sites in the Philippines.
• Continued activities for enhancing resilience to disasters. (Purchased additional
emergency supplies, conducted internal audit of appendices and circulated awarenessinformation.)

Conducted internal audits of group company payment practices.

Achieved better-than-expected results / 〇: Achieved target as stated /Disaster relief• Support social contribution activities implemented bygovernments and other organizations.
• Increase social welfare for the elderly and handicapped.
Interaction with hosting local
communities

Environmental management

Creating comfortableworkplaces

Road safety

Fire prevention

Regulatory compliance

Verify the state of regulatory compliance via internal audits.

Regulatory compliance

Personal health management

Remove unsafe equipment and eliminate unsafe behavior.

Accident prevention• Conduct fire safety inspections.
• Implement fire patrols.
• Conduct fire drills.
• Provide instruction in safe driving.
• Promote safe-driving awareness activities.
• Provide regular/special health exams.
• Provide mental health exams.
• Conduct environmental health patrols.
• Conduct follow-up interviews on lifestyle-related diseases.
• Improve workplace environments.
• Improve work methods.
• Accept audits to update ISO14001 certification.
• Conduct internal audits.
• Propose improvements.

• Promote a system of work safety/health management.
• Document NKC work safety/health standards.

Plan and implement level-based and elective internal training.

Workforce training

Work safety/healthmanagement

Provide forms of employment/treatment that consent various
ways of working.

Human resource utilization

Improve information security and maintain/improve officeequipment/environment.

Improve operational efficiency and build a compliance system byimplementing internal controls.

Internal controls

Target[Newly added in FY2015] Start involvement in social contribution activities by offices/plants
overseas.

Strengthen disaster preparedness and cooperate in emergencies both in Japan and overseas.

• Continually implement and improve an internship program.
• Provide student aid via fundraising.

• Support social contribution activities implemented by governments and other organizations.
• Increase social welfare for the elderly and handicapped.

• Take part in Fun to Share campaign.

• Reduce CO2 emissions.
• Reduce waste.

• Impart general environmental education.
• Impart advanced environmental education.
• Impart education and training aimed at acquiring environmental licenses.

• Evaluate compliance with environmental regulations.
• Take preventative measures to protect the environment.

• Conduct fire safety inspections.
• Implement fire patrols.
• Conduct fire drills.
• Provide instruction in safe driving.
• Promote safe-driving awareness activities.
• Provide regular/special health exams.
• Provide mental health exams.
• Conduct environmental health patrols.
• Conduct follow-up interviews on lifestyle-related diseases.
• Improve workplace environments.
• Improve work methods.
• Accept periodic audits for ISO14001 certification.
• Conduct internal audits.
• Propose improvements.

Verify the state of regulatory compliance via internal audits.

Remove unsafe equipment and eliminate unsafe behavior.

• Promote a system of work safety/health management.
• Document and apply NKC work safety/health standards.

Plan and implement level-based and elective internal training.

Provide forms of employment/treatment and environments that consent various ways of working.

Improve information security and maintain/improve office equipment/environment.

• Conduct activities for making BCPs a regular practice at offices/plants in Japan.
• Continue to encourage group companies to develop BCPs.
• Continue to encourage overseas offices/plants to develop BCPs.

Educate workforce in work-related legalities.

FY2015
Target• Improve operational efficiency and build a compliance system by conducting internal audits.
(Manage trade secrets. Comply with Subcontractor Act.)• Ensure the appropriateness of business by putting internal controls in place.

• Quick rundown
About 10 years ago, we started CSR activities for and with our stakeholders and, as of 2015, we are participating in
the United Nations Global Compact and throwing our support behind their principles and activities. Our CSR efforts
have been ranked AA -- the second highest grade possible -- by major banks in Japan. I am greatly pleased by such anassessment because, for one, it is hard for even large listed companies to attain this kind of raking and, two, they have
objectively judged our efforts as heading in the right direction both in terms of benefitting society and growing ourorganization.

Important fields

Page• Results of CSR activities and future topics
For some time now, we have been pushing energy conservation as part of our CSR in relation to the environment,
but what should be pointed out is that, through those efforts, we managed to keep the rise in energy costs, whichcame because of the power shortages after the Great East Japan Earthquake, to about 25%.
Also, we have begun looking inward at ourselves, rather than just outside the company, for ways to improve our
CSR. At our Head Office, while incessantly working to improve the workplace environment, we are consolidating andoutsourcing non-core operations and concentrating our workforce in core operations. With regards to shorter working hours, we analyzed the situation in Sweden where people work 1,500 hr/year and starting promoting efforts toeliminate overtime so that employees at NKC work less than 1,900 hr/year. Then, we are encouraging our workforce
to use the free time they are gaining to bettering themselves through study that can improve their lives.
All of the CSR activities mentioned above are, when looked at individually,rather simple and plain and certainly not anything that will revolutionize
the workplace, but if you compare things to how they were 10 years ago,
you can see just how big of a change has been made.

                  

NKC is always looking ahead; we never accept things as they are.

Social contributions3• Final word
In FY2014, we added new members to the NKC Group through M&A.
Each of these companies has built a distinctive corporate culture and hasmuch to teach us, so our job is to share and permeate that throughout
the group so as to enhance our corporate value.
In our midterm business plans, we are targeting sales of 100 billion JPY. We

NKC Vision
A company that constantly
reinvents itself and its
employees are proud to bea part of

1. Principal Mission
2. Compliance with Laws andSocial Norms
3. Information Disclosure
4. Providing a Good Workplace
Environment
5. Environmental Protection
6. Social Contributions
7. Opposition to Antisocial
Inﬂuence
8. International Contributions
9. Promoting Corporate Ethics
10. Enforcement

2
Customers

Suppliers
Local
communities
Globalenvironment
Tatsuo Nakanishi, President＜＜NKC's CSR Policy＞＞

CSR is formulated on the idea that a company can contribute to the sustainable development of society by responsibly and faithfully conducting
business activities with regards to their stakeholders, i.e., shareholders, employees, customers, etc. (See below figure.)
At NKC, we conduct activities based on the flowing CSR policy.

CSR activities at NKC draw their basic concepts from NKC's Vision and Code of Conduct.
Our mission in those activities is to meet the expectations of all of our stakeholders.

Shareholders

Important Fields

Employees

NKC Code of Conduct

See pg. 2

CSR management

Educate workforce in work-related legalities.

Establish BCPs for natural disasters at offices/plants in Japan.
Start developing BCPs at overseas offices/plants.

Compliance

Risk management

Work customs andpracticesWork safety and health• Evaluate compliance with environmental regulations.
• Take preventative measures to protect the environment.
• Impart general environmental education.
• Impart advanced environmental education.
• Impart education and training aimed at acquiring environmental
licenses.
• Reduce CO2 emissions.
• Reduce waste.
• Take part in Fun to Share campaign.
• Create food recycling group.

Environmental education

Environmental load reduction
Environmental protection

Environmental protection• Continually implement and improve an internship program.
• Provide student aid via fundraising.
Strengthen disaster preparedness and cooperate in emergencies
both in Japan and overseas.
Promotion of learning

FY2014
Result

○

○

○

○

○

: Greater efforts needed to achieve target / × : Not implemented• Introduced LED lighting and took other energy-conservation measures.
• Reduced metallic waste, etc.
• Took part in carbon offset initiative. [Special Feature]• Took part in Fun to Share campaign.
• Created food recycling group.
• Donated money and services to hosting local communities.
• Supported blood-drive and fundraising activities of charity organizations.
• Cleaned up and beautified local areas.
• Hired elderly/handicapped persons and accepted interns.
• Donated canes to the needy.
• Cooperated in environmental education events organized by NPOs.
• Managed a scholarship fund for internships and plant tours.
• Strengthened disaster preparedness of local hosting communities.
• Provided relief to disaster-stricken areas.

Imparted general/field-specific environmental education.

○

○

○

○

• Provided regular health exams and personal interviews.
• Promoted mental health awareness via training, etc.
• Improved workplace environments.
• Developed workplace environments for less fatigue/stress by adding rest areas,
improving staircase handrails, etc.
• Underwent environmental audits (ISO14001 recertification/internal).
• Nabari Plant was conferred MOE award.
• Centrally managed licensed personnel in a database.
• Compliant with noise/vibration regulations.
• Compliant with wastewater regulations.
• Verified operations of industrial waste handlers at their sites.
• Used public certification system for selecting industrial waste handlers.

○• Implemented awareness activities on driving etiquette.
• Took part in safe-driving contest sponsored by Osaka Pref.

7

○

12

11 - 12

11

10

9

8

8

8

8

7

○

○

7

6

5

4

4

3

3

○

○

○

○

○

Self-grade• Implement fire patrols. (Verified use of electrical equipment, wiring, etc.)• Conducted fire drills (alarms, firefighting and evacuation).

• Imparted training to new recruits in the Philippines.
• Imparted follow-up training for 2nd and 5th year employees.
• Expanded target management system.
• Started training for new managers/supervisors.
• Launched general commission on work safety/health/environment.
• Launched overseas commission on work safety/health/environment.
• Applied safety standards.
• Stepped up work safety/health training for 7 important jobs at NKC.
• Conferred Zero Accident Awards to Kawachi Plant and the Shiga Plant.
• Analyzed alertness and near misses. Commended the Mie Plant.
• Conducted internal audit of work safety/health.
Verified regulatory compliance using government-issued check list, and collected
information on regulatory updates, etc.

• Started encouraging working from early morning.
• Promoted diversity in our workforce. (Certified as "Leading Company for
Women."Registered "Declaration of Gender Equality .")Adopted flash drive management policy.

• Imparted training for new recruits.
• Educated persons in charge on work-related laws (Security export controls,
Subcontractor Act).
• BCPs established by local offices and group companies.
• BCP development started at 2 sites in the Philippines.
• Continued activities for enhancing resilience to disasters. (Purchased additional
emergency supplies, conducted internal audit of appendices and circulated awarenessinformation.)

Conducted internal audits of group company payment practices.

Achieved better-than-expected results / 〇: Achieved target as stated /Disaster relief• Support social contribution activities implemented bygovernments and other organizations.
• Increase social welfare for the elderly and handicapped.
Interaction with hosting local
communities

Environmental management

Creating comfortableworkplaces

Road safety

Fire prevention

Regulatory compliance

Verify the state of regulatory compliance via internal audits.

Regulatory compliance

Personal health management

Remove unsafe equipment and eliminate unsafe behavior.

Accident prevention• Conduct fire safety inspections.
• Implement fire patrols.
• Conduct fire drills.
• Provide instruction in safe driving.
• Promote safe-driving awareness activities.
• Provide regular/special health exams.
• Provide mental health exams.
• Conduct environmental health patrols.
• Conduct follow-up interviews on lifestyle-related diseases.
• Improve workplace environments.
• Improve work methods.
• Accept audits to update ISO14001 certification.
• Conduct internal audits.
• Propose improvements.

• Promote a system of work safety/health management.
• Document NKC work safety/health standards.

Plan and implement level-based and elective internal training.

Workforce training

Work safety/healthmanagement

Provide forms of employment/treatment that consent various
ways of working.

Human resource utilization

Improve information security and maintain/improve officeequipment/environment.

Improve operational efficiency and build a compliance system byimplementing internal controls.

Internal controls

Target[Newly added in FY2015] Start involvement in social contribution activities by offices/plants
overseas.

Strengthen disaster preparedness and cooperate in emergencies both in Japan and overseas.

• Continually implement and improve an internship program.
• Provide student aid via fundraising.

• Support social contribution activities implemented by governments and other organizations.
• Increase social welfare for the elderly and handicapped.

• Take part in Fun to Share campaign.

• Reduce CO2 emissions.
• Reduce waste.

• Impart general environmental education.
• Impart advanced environmental education.
• Impart education and training aimed at acquiring environmental licenses.

• Evaluate compliance with environmental regulations.
• Take preventative measures to protect the environment.

• Conduct fire safety inspections.
• Implement fire patrols.
• Conduct fire drills.
• Provide instruction in safe driving.
• Promote safe-driving awareness activities.
• Provide regular/special health exams.
• Provide mental health exams.
• Conduct environmental health patrols.
• Conduct follow-up interviews on lifestyle-related diseases.
• Improve workplace environments.
• Improve work methods.
• Accept periodic audits for ISO14001 certification.
• Conduct internal audits.
• Propose improvements.

Verify the state of regulatory compliance via internal audits.

Remove unsafe equipment and eliminate unsafe behavior.

• Promote a system of work safety/health management.
• Document and apply NKC work safety/health standards.

Plan and implement level-based and elective internal training.

Provide forms of employment/treatment and environments that consent various ways of working.

Improve information security and maintain/improve office equipment/environment.

• Conduct activities for making BCPs a regular practice at offices/plants in Japan.
• Continue to encourage group companies to develop BCPs.
• Continue to encourage overseas offices/plants to develop BCPs.

Educate workforce in work-related legalities.

FY2015
Target• Improve operational efficiency and build a compliance system by conducting internal audits.
(Manage trade secrets. Comply with Subcontractor Act.)• Ensure the appropriateness of business by putting internal controls in place.

• Quick rundown
About 10 years ago, we started CSR activities for and with our stakeholders and, as of 2015, we are participating in
the United Nations Global Compact and throwing our support behind their principles and activities. Our CSR efforts
have been ranked AA -- the second highest grade possible -- by major banks in Japan. I am greatly pleased by such anassessment because, for one, it is hard for even large listed companies to attain this kind of raking and, two, they have
objectively judged our efforts as heading in the right direction both in terms of benefitting society and growing ourorganization.

Important fields

Page• Results of CSR activities and future topics
For some time now, we have been pushing energy conservation as part of our CSR in relation to the environment,
but what should be pointed out is that, through those efforts, we managed to keep the rise in energy costs, whichcame because of the power shortages after the Great East Japan Earthquake, to about 25%.
Also, we have begun looking inward at ourselves, rather than just outside the company, for ways to improve our
CSR. At our Head Office, while incessantly working to improve the workplace environment, we are consolidating andoutsourcing non-core operations and concentrating our workforce in core operations. With regards to shorter working hours, we analyzed the situation in Sweden where people work 1,500 hr/year and starting promoting efforts toeliminate overtime so that employees at NKC work less than 1,900 hr/year. Then, we are encouraging our workforce
to use the free time they are gaining to bettering themselves through study that can improve their lives.
All of the CSR activities mentioned above are, when looked at individually,rather simple and plain and certainly not anything that will revolutionize
the workplace, but if you compare things to how they were 10 years ago,
you can see just how big of a change has been made.

                  

NKC is always looking ahead; we never accept things as they are.

Social contributions

3

ＣＳＲ経営-CSR Management-

We conduct business through sound practices, in full compliance with the law and with a high standard of ethics.

Internal Controls

内部統制

FY2014 internal audits

Internal Audit Plans<Subject>
Payment practices of 1 group company<Findings>
Issues were detected and the below improvements wereverified.
• Operating flow was changed to ensure smoothtransactions.
• The operations manual was revised to prevent business
operations from being dependent on any single person.

The scope of internal audits, past and present, are as follows.

Compliance●New recruit training
raining that new recruits undergo every year when joining thecompany was imparted during this subject fiscal year to 32 highschool and college graduates. The program lasts 5 days and serves
to familiarize recruits with corporate systems at NKC and teachthem about important legal matters related to their duties as amember of society and the bare minimum that they need to know
to engage in work. After completing this initial training, newrecruits are taught more basics via foreign language training
overseas and/or job training at plants in Japan, and are thenassigned to a department.
Training program• Explanation of corporate rules• Safety and environmental education• CSR training• English language training• Mental health training, etc.

<Until FY2013>
Audits of payment
practices intendedfor Head Officeand plants in Japan<FY2014><After FY2015>

Audits of payment Audits of payment
practices intended practices intended
for offices/plants
for importantgroup companies in Japan in line with

the Subcontractors Act

コンプライアンス●Internal training in work related laws and regulations
There are numerous laws and regulations that have to be upheld
when performing one's duties, but particularly in regards to
subcontractor business transactions and security export controls,
we believe that continuing education for persons engaged in thoseareas of operation is necessary to ensure appropriate handlingand, therefore, encourage participation in outside learning
opportunities. As a result, not only has there been an increase in
the number of inquiries from persons in charge asking how to do
things properly but also internal audits have shown improved
understanding of indicated matters. Nonetheless, for a company
doing business globally via multiple offices just in Japan, it isimportant to conduct business not only in line with laws andregulations but also with a high standard of ethics. Therefore, wewill be working to improve awareness in this area through internal
training

Participation in outside seminars<Subcontractor business
transactions>• FY2012 … 13 persons• FY2013 … 12 persons• FY2014 … 4 persons<Security export
controls>• FY2013 … 9 persons• FY2014 … 8 persons
English class at the Head Office4Starting in 2015,
we are stepping up
internal training
and periodicallychecking its
effectiveness inpenetrating thenecessary mindset.

リスク管理[Special Feature] BCP for natural disasters[What does "BCP" mean?]
BCP is short for "Business Continuity Plan.
" It is what businesses use to plot contingencies
against foreseeable risks that could shut down
their operations like natural disasters,
epidemics and serious accidents, and quickly
recover business in the event thereof.
At NKC, we have formulated and adopted a BCP on
natural disaster hypotheticals, though earthquakes are obviously
our first concern.

"Harada-kun," BCP awareness mascot● BCPs established for almost all business●BCP development started at business sites over-sites in Japan
BCPs were established for important administrative andproduction sites such as our Head Office and plants in Japan
during the course of FY2013. In FY2014, 2 branch offices inJapan established BCPs, which means that almost all of ourbusiness sites in Japan have a BCP in place. Also, in parallelwith the establishment in 2 branch offices, 1 group company
adopted a BCP.

seas
BCPs have been sequentially established by our businesssites in Japan and since we expected all domestic sites tohave a BCP by the end of FY2014, we started developing
plans at our business sites overseas. Outside Japan, the risks
that threaten corporate operations differ according tocountry. For this reason, we began by identifying foreseeable risks, all the while bearing natural disasters in mind, inorder to carefully develop BCPs based on a correct understanding of the situation in each country where we haveoperations.

<Until FY2012>
Establishedcompany-wide
BCP at the
Head Office<FY2013>
Established
BCPs at 5
major plants<FY2014>
Established
BCPs at 2
branch offices

CSR Management

CSR Management●Internal audits
At NKC, we place importance on operating audits as an internal control tool and use them to check and monitor the operations andorganizational structures of departments. On a particular note, because of increasingly stiffer regulations in Japan's Subcontractor Act
that have emerged in recent years, we have been making sure that payment practices are appropriate. During the subject fiscal year, wefollowed up on payment operations of a group company to verify their regulatory compliance and correct any irregularities, if necessary.

Risk Management<FY2014><After FY2015>

Established
BCPs at2 businesssites in thePhilippines

Establish BCPs
at all remaining
business sites
in the Philippines

Business sites with a BCP conduct preparedness activities so that plans work in an emergency.

Diffusion ofPhilippine BCP
as model forbusiness sites
in other countries* For descriptions ofthese activities,
see below.

●Continually planning and conducting activities for enhancing our resilience to disaster (Japan)
Since FY2013, we have been undertaking various activities to augment the effectiveness of our BCP. For example, in FY2014, we
conducted activities, such as evacuation drills at the Head Office and 5 major plants, to make the workforce aware of our BCP.
And, we are continuing preparedness activities on a regular basis so that, in an emergency, "lives are protected" and "business cancontinue" as best possible.
Main preparedness activities• Evacuation drills• Additional purchases of emergency
supplies• Internal audits• Awareness-oriented publications

Fire drill at the Head Office

Emergency supplies

Awareness-oriented publication●Information security maintain/improve office equipment/environment
At NKC, we have continually taken measures against information leaks and, in FY2014, we restricted use of flash drives. This included
distributing company-issued flash drives, prohibiting the use of personal flash drives for copying data from company computers,andmaking these rules known to the workforce. Going forward, we will continue to take measures against information leaks.

5

ＣＳＲ経営-CSR Management-

We conduct business through sound practices, in full compliance with the law and with a high standard of ethics.

Internal Controls

内部統制

FY2014 internal audits

Internal Audit Plans<Subject>
Payment practices of 1 group company<Findings>
Issues were detected and the below improvements wereverified.
• Operating flow was changed to ensure smoothtransactions.
• The operations manual was revised to prevent business
operations from being dependent on any single person.

The scope of internal audits, past and present, are as follows.

Compliance●New recruit training
raining that new recruits undergo every year when joining thecompany was imparted during this subject fiscal year to 32 highschool and college graduates. The program lasts 5 days and serves
to familiarize recruits with corporate systems at NKC and teachthem about important legal matters related to their duties as amember of society and the bare minimum that they need to know
to engage in work. After completing this initial training, newrecruits are taught more basics via foreign language training
overseas and/or job training at plants in Japan, and are thenassigned to a department.
Training program• Explanation of corporate rules• Safety and environmental education• CSR training• English language training• Mental health training, etc.

<Until FY2013>
Audits of payment
practices intendedfor Head Officeand plants in Japan<FY2014><After FY2015>

Audits of payment Audits of payment
practices intended practices intended
for offices/plants
for importantgroup companies in Japan in line with

the Subcontractors Act

コンプライアンス●Internal training in work related laws and regulations
There are numerous laws and regulations that have to be upheld
when performing one's duties, but particularly in regards to
subcontractor business transactions and security export controls,
we believe that continuing education for persons engaged in thoseareas of operation is necessary to ensure appropriate handlingand, therefore, encourage participation in outside learning
opportunities. As a result, not only has there been an increase in
the number of inquiries from persons in charge asking how to do
things properly but also internal audits have shown improved
understanding of indicated matters. Nonetheless, for a company
doing business globally via multiple offices just in Japan, it isimportant to conduct business not only in line with laws andregulations but also with a high standard of ethics. Therefore, wewill be working to improve awareness in this area through internal
training

Participation in outside seminars<Subcontractor business
transactions>• FY2012 … 13 persons• FY2013 … 12 persons• FY2014 … 4 persons<Security export
controls>• FY2013 … 9 persons• FY2014 … 8 persons
English class at the Head Office4Starting in 2015,
we are stepping up
internal training
and periodicallychecking its
effectiveness inpenetrating thenecessary mindset.

リスク管理[Special Feature] BCP for natural disasters[What does "BCP" mean?]
BCP is short for "Business Continuity Plan.
" It is what businesses use to plot contingencies
against foreseeable risks that could shut down
their operations like natural disasters,
epidemics and serious accidents, and quickly
recover business in the event thereof.
At NKC, we have formulated and adopted a BCP on
natural disaster hypotheticals, though earthquakes are obviously
our first concern.

"Harada-kun," BCP awareness mascot● BCPs established for almost all business●BCP development started at business sites over-sites in Japan
BCPs were established for important administrative andproduction sites such as our Head Office and plants in Japan
during the course of FY2013. In FY2014, 2 branch offices inJapan established BCPs, which means that almost all of ourbusiness sites in Japan have a BCP in place. Also, in parallelwith the establishment in 2 branch offices, 1 group company
adopted a BCP.

seas
BCPs have been sequentially established by our businesssites in Japan and since we expected all domestic sites tohave a BCP by the end of FY2014, we started developing
plans at our business sites overseas. Outside Japan, the risks
that threaten corporate operations differ according tocountry. For this reason, we began by identifying foreseeable risks, all the while bearing natural disasters in mind, inorder to carefully develop BCPs based on a correct understanding of the situation in each country where we haveoperations.

<Until FY2012>
Establishedcompany-wide
BCP at the
Head Office<FY2013>
Established
BCPs at 5
major plants<FY2014>
Established
BCPs at 2
branch offices

CSR Management

CSR Management●Internal audits
At NKC, we place importance on operating audits as an internal control tool and use them to check and monitor the operations andorganizational structures of departments. On a particular note, because of increasingly stiffer regulations in Japan's Subcontractor Act
that have emerged in recent years, we have been making sure that payment practices are appropriate. During the subject fiscal year, wefollowed up on payment operations of a group company to verify their regulatory compliance and correct any irregularities, if necessary.

Risk Management<FY2014><After FY2015>

Established
BCPs at2 businesssites in thePhilippines

Establish BCPs
at all remaining
business sites
in the Philippines

Business sites with a BCP conduct preparedness activities so that plans work in an emergency.

Diffusion ofPhilippine BCP
as model forbusiness sites
in other countries* For descriptions ofthese activities,
see below.

●Continually planning and conducting activities for enhancing our resilience to disaster (Japan)
Since FY2013, we have been undertaking various activities to augment the effectiveness of our BCP. For example, in FY2014, we
conducted activities, such as evacuation drills at the Head Office and 5 major plants, to make the workforce aware of our BCP.
And, we are continuing preparedness activities on a regular basis so that, in an emergency, "lives are protected" and "business cancontinue" as best possible.
Main preparedness activities• Evacuation drills• Additional purchases of emergency
supplies• Internal audits• Awareness-oriented publications

Fire drill at the Head Office

Emergency supplies

Awareness-oriented publication●Information security maintain/improve office equipment/environment
At NKC, we have continually taken measures against information leaks and, in FY2014, we restricted use of flash drives. This included
distributing company-issued flash drives, prohibiting the use of personal flash drives for copying data from company computers,andmaking these rules known to the workforce. Going forward, we will continue to take measures against information leaks.

5

労働慣行

-Work Customs & Practices-

Human resource
resource utilization
utilization
Human

人材活用

●Encouraging early morning work

NKC is promoting diversity in its workforce and creating workplace environments where each and every
employee can be who they are.

Human Resource Development

人材育成●Training for new recruits in the Philippines
Given that continuous study and practice are instrumental to learning English, English language studies are imparted to new recruits soonafter they enter the company as a part of that process.
In FY2014, a month-long training program in the Philippines was started in addition to English lessons at our Head Office.

Work Customs & Practices

Work Customs & Practices

As part of the company's efforts to help employees properly
balance their work and personal lives, NKC is encouraging its
people to come to work early. This is being done by paying a special allowance for work done between 5:00 and 7:00 in the morning, and serving breakfast at the Head Office cafeteria to early-bird
employees who cannot eat at home. This new arrangement has
been introduced on a trial basis, but plans are to continue thepractice if liked by those working the early morning hours.
Additionally, we are taking the environmental consequences of thisearly morning work program into consideration by using a garbage
disposer sold by the EPD Room to convert raw food waste frombreakfast into bio-compost.

Example breakfast
Philippine Plant visited during training in the Philippines●Promotion of diversity in our workforce
NKC has been certified twice under programs aimed at the empowerment of women in the workplace, for its efforts to promote workforce diversity. The company is also creating workplace environments that respect differing values and draw out the skill and motivationof every individual.
Certifications acquired in FY2014
・Certified as a "Leading Company for the Empowerment of Women"
by Osaka City certificate
・Registered "Declaration of Equal Opportunity Employment" with Osaka Pref.certificate●Follow-up training<For 2nd year employees>
Every year, follow-up training is imparted to employees starting their second year with the company, to go over basic operating andcommunication procedures again. In the program, same-year employees form groups and together solve problems. It is meant to reinforce the importance of looking outward and working with others on the job.
<For 5th year employees>
Training for employees who have been with the company for 5 years is based on a "360˚ evaluation" in which the employee is evaluated by superiors, colleagues and others with whom he/she engages via work. By learning what others think of you, employees recognize their strengths and weaknesses, and learn what it takes to be a leader in the workplace.

<Logos and Certificate>●Expanded target management system
Target management had long been a responsibility of managers and supervisors, but in order to better understand how superiors determine work priorities and what is important, it was decided to expand target management to chief class employees starting in FY2015.
But, before the new system was introduced, presentations were given 2 times at every business site in FY2014 to explain the purposeand details of the new system, how to set targets and other relevant matters.

"Declaration of Equal Opportunity
Employment" logo

"Leading Company for the Empowerment of
Women" logo

"Leading Company for the Empowerment of
Women" certificate●Training for newly appointed managers and supervisors
Special training in target management was imparted to employees who were newly appointed to manager and supervisor positions in
FY2014. The program consisted of both theoretical and practical training in the roles of managers/supervisors, personnel evaluations,target setting and management, document preparation and more.

Projects launched under certification programs• To encourage more women to join the workforce In FY2013, we began analyzing the corporate environment from theperspective of "training," "systems" and"facilities" in search of ways that would encourage more women to join the workforce. In FY2014, we updated rules on childcare
leave to benefit parents more and remodeled restrooms. For FY2015 and beyond, plans have been crafted to build childcare
centers at some plants, explore the possibilities of providing educational structures, and more.
• Support for work-life balance
Besides our efforts to bring more women into the workforce, NKC continues to push for lesser overtime work and encourage
employees to take paid holidays. The shorter working hours that result from these efforts are expected to get dads more
involved in raising children and family activities.
6

7

労働慣行

-Work Customs & Practices-

Human resource
resource utilization
utilization
Human

人材活用

●Encouraging early morning work

NKC is promoting diversity in its workforce and creating workplace environments where each and every
employee can be who they are.

Human Resource Development

人材育成●Training for new recruits in the Philippines
Given that continuous study and practice are instrumental to learning English, English language studies are imparted to new recruits soonafter they enter the company as a part of that process.
In FY2014, a month-long training program in the Philippines was started in addition to English lessons at our Head Office.

Work Customs & Practices

Work Customs & Practices

As part of the company's efforts to help employees properly
balance their work and personal lives, NKC is encouraging its
people to come to work early. This is being done by paying a special allowance for work done between 5:00 and 7:00 in the morning, and serving breakfast at the Head Office cafeteria to early-bird
employees who cannot eat at home. This new arrangement has
been introduced on a trial basis, but plans are to continue thepractice if liked by those working the early morning hours.
Additionally, we are taking the environmental consequences of thisearly morning work program into consideration by using a garbage
disposer sold by the EPD Room to convert raw food waste frombreakfast into bio-compost.

Example breakfast
Philippine Plant visited during training in the Philippines●Promotion of diversity in our workforce
NKC has been certified twice under programs aimed at the empowerment of women in the workplace, for its efforts to promote workforce diversity. The company is also creating workplace environments that respect differing values and draw out the skill and motivationof every individual.
Certifications acquired in FY2014
・Certified as a "Leading Company for the Empowerment of Women"
by Osaka City certificate
・Registered "Declaration of Equal Opportunity Employment" with Osaka Pref.certificate●Follow-up training<For 2nd year employees>
Every year, follow-up training is imparted to employees starting their second year with the company, to go over basic operating andcommunication procedures again. In the program, same-year employees form groups and together solve problems. It is meant to reinforce the importance of looking outward and working with others on the job.
<For 5th year employees>
Training for employees who have been with the company for 5 years is based on a "360˚ evaluation" in which the employee is evaluated by superiors, colleagues and others with whom he/she engages via work. By learning what others think of you, employees recognize their strengths and weaknesses, and learn what it takes to be a leader in the workplace.

<Logos and Certificate>●Expanded target management system
Target management had long been a responsibility of managers and supervisors, but in order to better understand how superiors determine work priorities and what is important, it was decided to expand target management to chief class employees starting in FY2015.
But, before the new system was introduced, presentations were given 2 times at every business site in FY2014 to explain the purposeand details of the new system, how to set targets and other relevant matters.

"Declaration of Equal Opportunity
Employment" logo

"Leading Company for the Empowerment of
Women" logo

"Leading Company for the Empowerment of
Women" certificate●Training for newly appointed managers and supervisors
Special training in target management was imparted to employees who were newly appointed to manager and supervisor positions in
FY2014. The program consisted of both theoretical and practical training in the roles of managers/supervisors, personnel evaluations,target setting and management, document preparation and more.

Projects launched under certification programs• To encourage more women to join the workforce In FY2013, we began analyzing the corporate environment from theperspective of "training," "systems" and"facilities" in search of ways that would encourage more women to join the workforce. In FY2014, we updated rules on childcare
leave to benefit parents more and remodeled restrooms. For FY2015 and beyond, plans have been crafted to build childcare
centers at some plants, explore the possibilities of providing educational structures, and more.
• Support for work-life balance
Besides our efforts to bring more women into the workforce, NKC continues to push for lesser overtime work and encourage
employees to take paid holidays. The shorter working hours that result from these efforts are expected to get dads more
involved in raising children and family activities.
6

7

安全衛生

-Occupational Safety and Health-Work Safety & Health Management

安全衛生管理●General commission on work safety, health and environments
Four times a year, representatives from NKC's 6 plants in Japan gather for each a general commission on work safety, health and environments and a meeting on work safety, health and environments. The commission rotates the meeting venue amongst the participating
plants each time and combines the meeting with a plant tour. The purpose is to raise the bar on safety and health by sharing information,
learning about and witnessing the activities of other plants.

NKC promotes activities intended to prevent accidents and disasters so that our workforce can feelsafe and secure at work.

防災管理

Preparedness for Emergencies●Fire patrols
Periodic patrols are conducted according to an annual action plan for checking how hazardous materials that could lead to fire are managed and the condition of electrical equipment and wiring. Moreover, smoking areas are routinely checked and firefighting equipment issubjected to legally mandated inspections and servicing, in an effort to prevent fires.

●Firefighting dills●Overseas commission on work safety, health andenvironments
As a way to improve work safety and health, the 7 overseas plantsof the NKC Group share information and learn about what eachother is doing 6 times a year via teleconferencing. Moreover,Head Office staff visits the plants every other year to verify thesituation in person.

●Use of safety standards
In compliance with occupational safety and health laws and codes,
NKC prepares and applies safety standards and health protocols
with content that is both standardized for the entire group andspecific to individual plants.

災害の防止

（2）

（3）

（5）

（6）

●Zero accident awards
The number of accidents that result in near-injury and worse aretabulated on an annual basis for each plant separately, and plantsthat attain a zero accident record for the year are given an award
and all employees in their workforce are given a memento of
their achievement. In FY2014, awards were given to Kawachi
Plant and the Shiga Plant.

(1) Forklift safety training at the Shiga Plant(2) Safety training for grinding stone change-out at the Nabari Plant(3) Welding training at the Mie Plant(4) Safety training for operating cranes andrigging slings at the Kawachi P;ant(5) Press safety training at the Osaka Plant(6) Industrial robot safety training at the Tenma Plant●Analyses of alertness and near misses
As part of the effort to improve work safety and health, NKC analyzes alertness and near misses. Emphasis is placed on risks that
only factory workers would recognize and sampling is done on aplant basis. The plant that scores the highest is given an award andall employees in their workforce are given a memento of theirachievement. In FY2014, the award went to the Mie Plant.

●Internal audits of work safety and healthEvery plant in the NKC Group includes periodic workplace patrols in its annual action plan and any unsafe acts or situations discovered inpatrols are noted and improved. Additionally, Head Office staff conduct an internal audit once a year to raise the bar on work safety andhealth across the group and in every workplace.

Regulatory compliance

法令遵守

Every plant prepares a list of safety regulations that they use to assess and verify their compliance therewith. This list is checked in internal audits, as well. Head Office staff routinely collects information on regulatory updates, which they share with the general commission
on work safety, health and environments.
Safety laws and regulations that require NKC's compliance
Laws
Industrial Safety and Health Law/Labor Standards Act/Labor Contract Act/Health
Promotion Act/Fire Services Act/Poisonous and Deleterious Substances Control
Act/Electric Utility Industry Law/High Pressure Gas Safety Law/etc.

8

Ordinances
Osaka Municipal Fire Prevention Ordinance/Fire Fighting Union in Hirakata& Neyagawa Municipal/Nabari Municipal Fire Prevention Ordinance/ etc.

●Awareness activities
At every plant in the NKC Group, road safety seminars are periodically staged with the cooperation of local police. Moreover,driving behaviors are observed to raise awareness of the importance of road safety and improve how employees drive. Additionally, all employees who cycle to work are required to get bicycle
insurance in order to make them aware of the company's concerns over road safety.

●Participation in contests
Through the Head Office, NKC takes part in safe driving contests
organized by the Osaka Prefectural Police and others, to raiseawareness of road safety. An award ceremony was held at the
Osaka Plant in FY2014 to recognize 9 employees who exhibited
exemplar driving skills and behavior during a safe driving campaign
in autumn.

健康管理

Health Management●Health management
NKC provides the regular and special health exams required bylaw and coordinates with physicians specialized in industrial medicine to follow-up on personal interviews and results. Moreover, asseasonal measures in health management, activities are conducted
to raise awareness of ways to avoid heat exhaustion in summer
and the flu in winter.

Occupational Safety and HealthOccupational Safety and Health●Upscaled training in work safety and health
NKC has identified 7 jobs that present a particularly high degree of risk. In addition to legally mandated employee training, NKC isrequired to provide work-specific safety training to persons who perform dangerous jobs at least once a year, in order to enhance safety
awareness and skill. Moreover, training records are managed in a database and blocks are in place to prevent even licensed personnel
from performing certain jobs if they have not completed the routine safety training.

Fire extinguisher drill
at the Osaka Plant

交通安全Road Safety

Accident Prevention

7 risky jobs at NKC（1）• Operating forklifts• Operating cranes• Rigging slings• Pressing work including mold mounting,（4）
adjustment and removal• Changing out and testing grinding stones• Gas and arch welding• Operating industrial robots including teaching and adjustments

Every plant in the NKC Group prepares a manual of alarm, firefighting and evacuation procedures and periodically conducts firefighting drills based on firefighting plans. At the
Nabari Plant, representatives from the local fire department witness firefighting drills conducted at an employee dormitory every year. Moreover, at a contest where businesses
Fire hose drill at thecompete to see who operates indoor fire extinguishers the best, NKC posts good results
Tenma Plant
every year.

●Mental health
To prevent psychological disorders, awareness activities andmental health exercises are imparted amongst the workforce.
Moreover, every employee undergoes a mental health exam aspart of the company's EAP. Private counseling by an industrial
health specialist is also provided as needed to help the workforce
stay mentally fit.

●Environmental health activities
In an effort to improve workplace environments, NKC periodically measures noise levels, vibrations, lighting and other environmental
factors that cause health damage.

Providing a Good Workplace Environment

快適環境づくりWhen it comes to providing workplace environments, NKC aims at a comfortable environment where employees suffer minimally fromjob fatigue and stress. The company exams workplaces from the 4 perspectives of "workplace management," "improvements to work
procedures," "providing and maintaining facilities and equipment that allows operators to recover from both physical and mental fatigue,"and "maintaining and managing other facilities and equipment." In the process, problems are identified and corrective measures taken to
fix them.
Primary action taken in FY2014 to improve workplace environments• Lessened steel door weight to reduce the load placedon employees.
• Improved doorknobs to facilitate opening/closing.
• Added and remodeled rest areas.
• Improved water supply equipment and routing.
• Updated bulletin boards.
• Repaired and resurfaced floors and pavements.
Improved rest area at• Improved and repaired staircase handrails.
the Nabari Plant

Improved doorknob at
the Shiga Plant

Improved floor at
the Osaka Plant

9

安全衛生

-Occupational Safety and Health-Work Safety & Health Management

安全衛生管理●General commission on work safety, health and environments
Four times a year, representatives from NKC's 6 plants in Japan gather for each a general commission on work safety, health and environments and a meeting on work safety, health and environments. The commission rotates the meeting venue amongst the participating
plants each time and combines the meeting with a plant tour. The purpose is to raise the bar on safety and health by sharing information,
learning about and witnessing the activities of other plants.

NKC promotes activities intended to prevent accidents and disasters so that our workforce can feelsafe and secure at work.

防災管理

Preparedness for Emergencies●Fire patrols
Periodic patrols are conducted according to an annual action plan for checking how hazardous materials that could lead to fire are managed and the condition of electrical equipment and wiring. Moreover, smoking areas are routinely checked and firefighting equipment issubjected to legally mandated inspections and servicing, in an effort to prevent fires.

●Firefighting dills●Overseas commission on work safety, health andenvironments
As a way to improve work safety and health, the 7 overseas plantsof the NKC Group share information and learn about what eachother is doing 6 times a year via teleconferencing. Moreover,Head Office staff visits the plants every other year to verify thesituation in person.

●Use of safety standards
In compliance with occupational safety and health laws and codes,
NKC prepares and applies safety standards and health protocols
with content that is both standardized for the entire group andspecific to individual plants.

災害の防止

（2）

（3）

（5）

（6）

●Zero accident awards
The number of accidents that result in near-injury and worse aretabulated on an annual basis for each plant separately, and plantsthat attain a zero accident record for the year are given an award
and all employees in their workforce are given a memento of
their achievement. In FY2014, awards were given to Kawachi
Plant and the Shiga Plant.

(1) Forklift safety training at the Shiga Plant(2) Safety training for grinding stone change-out at the Nabari Plant(3) Welding training at the Mie Plant(4) Safety training for operating cranes andrigging slings at the Kawachi P;ant(5) Press safety training at the Osaka Plant(6) Industrial robot safety training at the Tenma Plant●Analyses of alertness and near misses
As part of the effort to improve work safety and health, NKC analyzes alertness and near misses. Emphasis is placed on risks that
only factory workers would recognize and sampling is done on aplant basis. The plant that scores the highest is given an award andall employees in their workforce are given a memento of theirachievement. In FY2014, the award went to the Mie Plant.

●Internal audits of work safety and healthEvery plant in the NKC Group includes periodic workplace patrols in its annual action plan and any unsafe acts or situations discovered inpatrols are noted and improved. Additionally, Head Office staff conduct an internal audit once a year to raise the bar on work safety andhealth across the group and in every workplace.

Regulatory compliance

法令遵守

Every plant prepares a list of safety regulations that they use to assess and verify their compliance therewith. This list is checked in internal audits, as well. Head Office staff routinely collects information on regulatory updates, which they share with the general commission
on work safety, health and environments.
Safety laws and regulations that require NKC's compliance
Laws
Industrial Safety and Health Law/Labor Standards Act/Labor Contract Act/Health
Promotion Act/Fire Services Act/Poisonous and Deleterious Substances Control
Act/Electric Utility Industry Law/High Pressure Gas Safety Law/etc.

8

Ordinances
Osaka Municipal Fire Prevention Ordinance/Fire Fighting Union in Hirakata& Neyagawa Municipal/Nabari Municipal Fire Prevention Ordinance/ etc.

●Awareness activities
At every plant in the NKC Group, road safety seminars are periodically staged with the cooperation of local police. Moreover,driving behaviors are observed to raise awareness of the importance of road safety and improve how employees drive. Additionally, all employees who cycle to work are required to get bicycle
insurance in order to make them aware of the company's concerns over road safety.

●Participation in contests
Through the Head Office, NKC takes part in safe driving contests
organized by the Osaka Prefectural Police and others, to raiseawareness of road safety. An award ceremony was held at the
Osaka Plant in FY2014 to recognize 9 employees who exhibited
exemplar driving skills and behavior during a safe driving campaign
in autumn.

健康管理

Health Management●Health management
NKC provides the regular and special health exams required bylaw and coordinates with physicians specialized in industrial medicine to follow-up on personal interviews and results. Moreover, asseasonal measures in health management, activities are conducted
to raise awareness of ways to avoid heat exhaustion in summer
and the flu in winter.

Occupational Safety and HealthOccupational Safety and Health●Upscaled training in work safety and health
NKC has identified 7 jobs that present a particularly high degree of risk. In addition to legally mandated employee training, NKC isrequired to provide work-specific safety training to persons who perform dangerous jobs at least once a year, in order to enhance safety
awareness and skill. Moreover, training records are managed in a database and blocks are in place to prevent even licensed personnel
from performing certain jobs if they have not completed the routine safety training.

Fire extinguisher drill
at the Osaka Plant

交通安全Road Safety

Accident Prevention

7 risky jobs at NKC（1）• Operating forklifts• Operating cranes• Rigging slings• Pressing work including mold mounting,（4）
adjustment and removal• Changing out and testing grinding stones• Gas and arch welding• Operating industrial robots including teaching and adjustments

Every plant in the NKC Group prepares a manual of alarm, firefighting and evacuation procedures and periodically conducts firefighting drills based on firefighting plans. At the
Nabari Plant, representatives from the local fire department witness firefighting drills conducted at an employee dormitory every year. Moreover, at a contest where businesses
Fire hose drill at thecompete to see who operates indoor fire extinguishers the best, NKC posts good results
Tenma Plant
every year.

●Mental health
To prevent psychological disorders, awareness activities andmental health exercises are imparted amongst the workforce.
Moreover, every employee undergoes a mental health exam aspart of the company's EAP. Private counseling by an industrial
health specialist is also provided as needed to help the workforce
stay mentally fit.

●Environmental health activities
In an effort to improve workplace environments, NKC periodically measures noise levels, vibrations, lighting and other environmental
factors that cause health damage.

Providing a Good Workplace Environment

快適環境づくりWhen it comes to providing workplace environments, NKC aims at a comfortable environment where employees suffer minimally fromjob fatigue and stress. The company exams workplaces from the 4 perspectives of "workplace management," "improvements to work
procedures," "providing and maintaining facilities and equipment that allows operators to recover from both physical and mental fatigue,"and "maintaining and managing other facilities and equipment." In the process, problems are identified and corrective measures taken to
fix them.
Primary action taken in FY2014 to improve workplace environments• Lessened steel door weight to reduce the load placedon employees.
• Improved doorknobs to facilitate opening/closing.
• Added and remodeled rest areas.
• Improved water supply equipment and routing.
• Updated bulletin boards.
• Repaired and resurfaced floors and pavements.
Improved rest area at• Improved and repaired staircase handrails.
the Nabari Plant

Improved doorknob at
the Shiga Plant

Improved floor at
the Osaka Plant

9

環境保全

-Environmental Protection-

Environmental Management環 境 管 理

NKC is helping to protect the global environment by reducing environmental load across all
business operations.

環境管理

Our environmental slogan at NKC is to "pass on a clean Earth to future generations." With this in mind, we devised an environmental
policy for directing environmental efforts at protecting the entire planet and built an environmental management system to implementthat policy.

NKC Environmental Policy (excerpt)

法令遵守Regulatory Compliance●Compliance with noise and vibration regulations

Noise and vibrations were measured at all plants subjected to regulations and all sites cleared the specified standards

Regulatory standards that plants must clear<Principle>
Protect the global environment by reducing the environmental load exerted by our products, services and business operationsin Japan and abroad.
<Approach>(1) Build, maintain and improve an environmental(4) Build production systems of low environmental load.
management system.
(5) Cooperate in environmental protection activities of(2) Prevent pollution as required by law.
national, regional and local governments, etc.
(3) Make this environmental policy known to plant

Sitepersonnel via environmental training.
<Requirements placed on our workforce>
1. CO2 reduction(1) Turn off unnecessary lights.
(2) Turn off lights during lunch.
(3) Shut power off to PCs if not planning on using them for
30 min or more.

(4) Set coolers to no lower than 28˚C and heaters to nohigher than 20˚C.
2. Landfill waste reduction
Separate waste by material as indicated.
* Slogan: "When sorted, waste is a resource. Whenmixed, it's just trash"

Site

ISO14001 certification

Verification method

ResultOsaka, Mie and Nabari Plants

Acquired in 2006

Tenma Steel, EPD Room

Acquired in 2009

Renewal audit by DNV(Third party certification
organization)

Cited non-compliances: 0

Head Office, Jig Plant, Shiga Plant, Kawachi Plant

Not acquired

Internal audits byassigned department

Minor things only

●Management of licensed personnel
NKC encourages its workforce to seek licensing in pollution (noise, vibrations, and water and air pollution) prevention, energy management, designated industrial waste management, etc., and centrally manages licensed personnel in a database.

10

Vibration (dB)
Daytime Nighttime
60
65

Head OfficeQuasi-industrial Zone

Osaka Plant

Quasi-industrial Zone

65

60

55

65

60

Nabari Plant

Not Zoned

60

55

50

65

60

Mie Plant

Quasi-industrial Zone

65

60

55

65

60

Shiga Plant

Industrial Zone

70

65

60

70

65

Kawachi Plant

Quasi-industrial Zone (Plant)
Category 1 Residential
District (Parts Warehouse)

65

60

55

65

60

55

50

45

60

55

●Compliance with wastewater regulations
Quality was measured of wastewater released from all plants subjected to regulations and all sites cleared the specified standards. Notethat the Nabari Plant, Shiga Plant and Kawachi Plant are not subjected to these regulations.

Regulatory standards that plants must clear
Standard
Site
Head Office

FY2014 audit findings

Noise level (dB)Nighttime
55
60

Early morning/
evening

Daytime65

H ion
concentration

BOD(mg/L)

SS(mg/L)

Dissolved
Fe content (mg/L)

n-hexane(mg/L)

N content(mg/L)

P content(mg/L)

5～9

600

600

10

None

None

None

150

20

None

None

Osaka Plant

5.7 ～ 8.7

300

300

None

5 (Mineral oil)
30 (Animal/Vegetable oil)

Mie Plant

5～9

120

600

10

5

●On-site verifications of industrial waste handlers
The biggest issue concerning industrial waste treatment for NKC
is not to be embroiled in illegal dumping. We, therefore, visited all
17 industrial waste handlers with whom we contract and verified
that they are treating our industrial waste properly.

Environmental Protection

Environmental Protection●Environmental audits: ISO14001, internal audits and renewal audits
In order to verify that the environmental management system we built works properly, we have Head Office specialist do internal audits
and outside certification organizations conduct renewal audits as specified in ISO14001.

Zoning●Certification system for industrial waste handlers
Under this system, prefectures and designated cities screen andcertify industrial waste handlers that clear stricter standards thanthose of ordinary permits. NKC contracts with 12 of the 26 handlers certified under this system.

11

環境保全

-Environmental Protection-

Environmental Management環 境 管 理

NKC is helping to protect the global environment by reducing environmental load across all
business operations.

環境管理

Our environmental slogan at NKC is to "pass on a clean Earth to future generations." With this in mind, we devised an environmental
policy for directing environmental efforts at protecting the entire planet and built an environmental management system to implementthat policy.

NKC Environmental Policy (excerpt)

法令遵守Regulatory Compliance●Compliance with noise and vibration regulations

Noise and vibrations were measured at all plants subjected to regulations and all sites cleared the specified standards

Regulatory standards that plants must clear<Principle>
Protect the global environment by reducing the environmental load exerted by our products, services and business operationsin Japan and abroad.
<Approach>(1) Build, maintain and improve an environmental(4) Build production systems of low environmental load.
management system.
(5) Cooperate in environmental protection activities of(2) Prevent pollution as required by law.
national, regional and local governments, etc.
(3) Make this environmental policy known to plant

Sitepersonnel via environmental training.
<Requirements placed on our workforce>
1. CO2 reduction(1) Turn off unnecessary lights.
(2) Turn off lights during lunch.
(3) Shut power off to PCs if not planning on using them for
30 min or more.

(4) Set coolers to no lower than 28˚C and heaters to nohigher than 20˚C.
2. Landfill waste reduction
Separate waste by material as indicated.
* Slogan: "When sorted, waste is a resource. Whenmixed, it's just trash"

Site

ISO14001 certification

Verification method

ResultOsaka, Mie and Nabari Plants

Acquired in 2006

Tenma Steel, EPD Room

Acquired in 2009

Renewal audit by DNV(Third party certification
organization)

Cited non-compliances: 0

Head Office, Jig Plant, Shiga Plant, Kawachi Plant

Not acquired

Internal audits byassigned department

Minor things only

●Management of licensed personnel
NKC encourages its workforce to seek licensing in pollution (noise, vibrations, and water and air pollution) prevention, energy management, designated industrial waste management, etc., and centrally manages licensed personnel in a database.

10

Vibration (dB)
Daytime Nighttime
60
65

Head OfficeQuasi-industrial Zone

Osaka Plant

Quasi-industrial Zone

65

60

55

65

60

Nabari Plant

Not Zoned

60

55

50

65

60

Mie Plant

Quasi-industrial Zone

65

60

55

65

60

Shiga Plant

Industrial Zone

70

65

60

70

65

Kawachi Plant

Quasi-industrial Zone (Plant)
Category 1 Residential
District (Parts Warehouse)

65

60

55

65

60

55

50

45

60

55

●Compliance with wastewater regulations
Quality was measured of wastewater released from all plants subjected to regulations and all sites cleared the specified standards. Notethat the Nabari Plant, Shiga Plant and Kawachi Plant are not subjected to these regulations.

Regulatory standards that plants must clear
Standard
Site
Head Office

FY2014 audit findings

Noise level (dB)Nighttime
55
60

Early morning/
evening

Daytime65

H ion
concentration

BOD(mg/L)

SS(mg/L)

Dissolved
Fe content (mg/L)

n-hexane(mg/L)

N content(mg/L)

P content(mg/L)

5～9

600

600

10

None

None

None

150

20

None

None

Osaka Plant

5.7 ～ 8.7

300

300

None

5 (Mineral oil)
30 (Animal/Vegetable oil)

Mie Plant

5～9

120

600

10

5

●On-site verifications of industrial waste handlers
The biggest issue concerning industrial waste treatment for NKC
is not to be embroiled in illegal dumping. We, therefore, visited all
17 industrial waste handlers with whom we contract and verified
that they are treating our industrial waste properly.

Environmental Protection

Environmental Protection●Environmental audits: ISO14001, internal audits and renewal audits
In order to verify that the environmental management system we built works properly, we have Head Office specialist do internal audits
and outside certification organizations conduct renewal audits as specified in ISO14001.

Zoning●Certification system for industrial waste handlers
Under this system, prefectures and designated cities screen andcertify industrial waste handlers that clear stricter standards thanthose of ordinary permits. NKC contracts with 12 of the 26 handlers certified under this system.

11

環境保全

-Environmental Protection-

NKC is helping to protect the global environment by reducing environmental load across all business operations.

環境教育

Environmental Education

In FY2014, we continued to impart general and field-specific environmental education, and centrally manage those records in a database.
Moreover, concerned personnel were summoned and tested on emergency response procedures in the event of a leak of spent oil,sulfuric acid, wastewater and other substances.

Environmental Load Reduction

環境負荷逓減●Measures against Climate Change
Again, in FY2014, we implemented a number of activities intended to conserve energy, but because of increased production turnout,
CO2 emissions from our operations increased 7.2% from the previous year.
Activities in FY2014[Special Feature] Carbon Offset Program
NKC signed a purchasing agreement with Iwate Prefecture under
their J-Ver Offset Credit program and was awarded a memorial
plaque from them to commemorate the initiative.
Iwate Prefecture's J-Ver Offset Credit program offers businesses a
way to offset CO2 emissions that they cannot reduce on theirown, by letting them purchase credits against increasing CO2
levels that are resulting from lumbering. The concept is modeled
after a similar program launched by Japan's Ministry of the Environment, to combat climate change and fund reconstruction
efforts in areas stricken by the Great East Japan Earthquake.
By purchasing J-Ver credits, NKC was able to offset a portion of
the CO2 emissions generated by lifters made by Kolec andgarbage disposers sold by the EPD Room. Offsets amounted to
34t-CO2 for the lifters and 40t-CO2 for the garbage disposers.
Memorial plaque presentation ceremony

Site

Main activities

Head Office Automated annealing furnace damper control. Replaced fluorescent lighting with LED lighting. Installed double-pane windows.
Osaka Plant Replaced high voltage transformers with amorphous models. Replaced fluorescent and mercury-vapor lighting with LED and electrode-less lighting.

Environmental Protection

環境保全

Replaced hydraulic injection molding machines with all-electric machines. EliminatedNabari Plant surfacing for radial retainers (eliminated continuous vibration unit). Painted plant exterior walls in insulating paint.
Replaced fluorescent and mercury-vapor lighting with LED and electrode-less lighting.

Mie Plant

Replaced electric and gas-burning air-conditioners with gas heat pump models. Replaced high voltage transformers withamorphous models. Replaced fluorescent and mercury-vapor lighting with LED and electrode-less lighting.

Shiga Plant

Replaced fluorescent and mercury-vapor lighting with LED and electrode-less lighting. Operated cranes using recycled energy.

●Participation in the MOE's "Fun to Share" program
All of NKC took part in the "Fun to Share" program promoted by Japan's Ministry of the Environment in the interest of creating a lowcarbon society. Again in FY2014, NKC took simple steps to reduce its CO2 emissions by setting coolers no lower than 28˚C and heaters
no higher than 20˚C.

Kawachi Plant Planted vegetation and bamboo as shields. Replaced fluorescent lighting with LED lighting.

●Creation of food recycling group

Double-pane windows
at the Head OfficePlant shield at
Kawachi Plant

High efficiency
transformer at the Mie plant

Activities in FY2014
Site
Head Office

12

Main activities

Environmental Protection

Environmental Protection●Waste Reduction
Like every year, we kept our waste recycling rate above 99.9% in FY2014,

One very significant undertaking inbuilding a recycle-oriented society is torecycle the vast amount of unsold foodsin stores, leftover foods on plates and fooddiscards from processing lines into feed
and compost so that it can be effectively
utilized.
At NKC, raw waste generated in the company cafeteria is composted with thegarbage disposer and supplied to growers
in Hyogo Prefecture. NKC then buys therice grown with that compost and serves itin the company cafeteria.
This food recycling group was created in
FY2014.

Reduced rubber waste via process improvements. Changed packaging fromwood to fiberboard. Automated waste treatment tabulations.

Osaka Plant

Reduced metallic waste via process improvements. Reduced pollution by eliminating surfacing.

Nabari Plant

Treated, recycled and reused effluent from retainer degreasing unit. Reduced pollution by eliminating surfacing.

Mie Plant

Reduced rubber waste via process improvements. Reduced pollution by eliminating surfacing.

Shiga Plant

Reduced wooden waste by modifying packaging procedures.

Kawachi Plant

Improved resin recycling rate. Reused fiberboard.

13

環境保全

-Environmental Protection-

NKC is helping to protect the global environment by reducing environmental load across all business operations.

環境教育

Environmental Education

In FY2014, we continued to impart general and field-specific environmental education, and centrally manage those records in a database.
Moreover, concerned personnel were summoned and tested on emergency response procedures in the event of a leak of spent oil,sulfuric acid, wastewater and other substances.

Environmental Load Reduction

環境負荷逓減●Measures against Climate Change
Again, in FY2014, we implemented a number of activities intended to conserve energy, but because of increased production turnout,
CO2 emissions from our operations increased 7.2% from the previous year.
Activities in FY2014[Special Feature] Carbon Offset Program
NKC signed a purchasing agreement with Iwate Prefecture under
their J-Ver Offset Credit program and was awarded a memorial
plaque from them to commemorate the initiative.
Iwate Prefecture's J-Ver Offset Credit program offers businesses a
way to offset CO2 emissions that they cannot reduce on theirown, by letting them purchase credits against increasing CO2
levels that are resulting from lumbering. The concept is modeled
after a similar program launched by Japan's Ministry of the Environment, to combat climate change and fund reconstruction
efforts in areas stricken by the Great East Japan Earthquake.
By purchasing J-Ver credits, NKC was able to offset a portion of
the CO2 emissions generated by lifters made by Kolec andgarbage disposers sold by the EPD Room. Offsets amounted to
34t-CO2 for the lifters and 40t-CO2 for the garbage disposers.
Memorial plaque presentation ceremony

Site

Main activities

Head Office Automated annealing furnace damper control. Replaced fluorescent lighting with LED lighting. Installed double-pane windows.
Osaka Plant Replaced high voltage transformers with amorphous models. Replaced fluorescent and mercury-vapor lighting with LED and electrode-less lighting.

Environmental Protection

環境保全

Replaced hydraulic injection molding machines with all-electric machines. EliminatedNabari Plant surfacing for radial retainers (eliminated continuous vibration unit). Painted plant exterior walls in insulating paint.
Replaced fluorescent and mercury-vapor lighting with LED and electrode-less lighting.

Mie Plant

Replaced electric and gas-burning air-conditioners with gas heat pump models. Replaced high voltage transformers withamorphous models. Replaced fluorescent and mercury-vapor lighting with LED and electrode-less lighting.

Shiga Plant

Replaced fluorescent and mercury-vapor lighting with LED and electrode-less lighting. Operated cranes using recycled energy.

●Participation in the MOE's "Fun to Share" program
All of NKC took part in the "Fun to Share" program promoted by Japan's Ministry of the Environment in the interest of creating a lowcarbon society. Again in FY2014, NKC took simple steps to reduce its CO2 emissions by setting coolers no lower than 28˚C and heaters
no higher than 20˚C.

Kawachi Plant Planted vegetation and bamboo as shields. Replaced fluorescent lighting with LED lighting.

●Creation of food recycling group

Double-pane windows
at the Head OfficePlant shield at
Kawachi Plant

High efficiency
transformer at the Mie plant

Activities in FY2014
Site
Head Office

12

Main activities

Environmental Protection

Environmental Protection●Waste Reduction
Like every year, we kept our waste recycling rate above 99.9% in FY2014,

One very significant undertaking inbuilding a recycle-oriented society is torecycle the vast amount of unsold foodsin stores, leftover foods on plates and fooddiscards from processing lines into feed
and compost so that it can be effectively
utilized.
At NKC, raw waste generated in the company cafeteria is composted with thegarbage disposer and supplied to growers
in Hyogo Prefecture. NKC then buys therice grown with that compost and serves itin the company cafeteria.
This food recycling group was created in
FY2014.

Reduced rubber waste via process improvements. Changed packaging fromwood to fiberboard. Automated waste treatment tabulations.

Osaka Plant

Reduced metallic waste via process improvements. Reduced pollution by eliminating surfacing.

Nabari Plant

Treated, recycled and reused effluent from retainer degreasing unit. Reduced pollution by eliminating surfacing.

Mie Plant

Reduced rubber waste via process improvements. Reduced pollution by eliminating surfacing.

Shiga Plant

Reduced wooden waste by modifying packaging procedures.

Kawachi Plant

Improved resin recycling rate. Reused fiberboard.

13

社会貢献

-Social Contribution-

We recognize the role that NKC plays as a member of the local communities that host our operations
and apply our wherewithal as a business to contribute to those communities.

地域参画Interaction with Hosting Local Communities●Community support
NKC supports local communities where we have business operations by donating money and manpower for festivals and otherevents near our facilities.

FY2014 community support activities (Abridged)

FY2014 charity support activities (Abridged)<Manpower support (Employee participation)>• Blood donation• ACCJ Kansai Charity Walk
(Support for workplace improvement for working women)<Financial support>• Tenjin-Matsuri Festival• Tenma Music Festival• Midosuji Illumination• Neyagawa-Matsuri Festival• Nabarigawa Fireworks Show
• Shimoda Dororinpic• Nobenojinja Akimatsuri(Fall Festival)●Support for charity
NKC indirectly contributes to social issues that we cannot solveon our own, by making financial and in-kind donations to charity
organizations involved in activities in Japan and abroad.

<Financial support>• Hilton Osaka Christmas Train• Radio Charity Musicthon• Medecins Sans Frontieres• Green Fund

Promotion of Learning

学術振興●Participation in environmental learning events organized by NPOsThe EPD Room, which deals in environmental
products, provided a helping hand in the "NushimaIsland Natural Energy Tours." Nushima Island islocated south of Awaji Island and is striving tobecome 100% self-reliant on renewable energy.
The tours were planned to get families from Hyogo
Prefecture to think more deeply about energy byvisiting demonstration facilities on the island. The
EPD Room made snowballs using a mobile battery
they sell, which turned out to be a big hit with the
Snowball tent operated by the EPD Roomorganizers and participants alike.
●Internships and plant tours
To assist young people in planning careers and hunting for jobs, NKC offers internships and plant tours.
●Management of a scholarship fund
NKC has created a scholarship fund that awards scholarships to students and provides grants to research institutes.

Lion dance at
Tenjin-Matsuri Festival

Hilton Osaka
Christmas Train

Radio Charity
Musicthon●Community cleanups and beautification
Most of NKC's business sites in Japan get involved in cleanup activities in neighborhoods near them. We have been continuing these
activities not only because cleaned roads and sidewalks benefit everyone but also because interacting with local residents doubly works
as a pipeline of communication. These activities vary in size and scope, and some even require the business site to register with local
authorities, but each business site handles the activities on its own.

<Scholarships>
NKC added 45 new students to its scholarship programin FY2014. Counting scholarship recipients who were
continuing their education from the previous fiscal
year, a total of 37,639,000 JPY in scholarship money
was provided to 105 students. Moreover, in September
2014, a get-together was held for the college andgraduate school students who were awarded scholarshipsthat year and company employees were on hand to provide
advice on job hunting.

Counseling from
employees to scholarshipstudents

Commemorative phototaken at scholarshipsocial<Research grants>
In FY2014, a record high 7 grant applications were received for research into the industrial sciences and
NKC doled out a total of 6,000,000 JPY to 6 of them (1,000,000 JPY each). The recipient institutions are
required to submit reports at each the halfway point and end of the fiscal year in order for NKC to verify
that the grant is being used meaningfully.

FY2014 activities<Volunteer activities>
Cleanup of roads around the business site
<Sponsorship of campaigns run by local governments, etc.>
Cleanup work by Tenma Steel• Osaka Marathon Cleanup (Osaka City)• Community-driven road beautification (Neyagawa City)• Biwako Cleanup Campaign (Shiga Pref.)• Adopt-a-Road Program (Osaka Pref.)Cleanup work by the Shiga Plant

Biwako Cleanup Campaign

Cleanup work by the Nabari Plant

ex-convicts, etc.) and seeking human resources from staffing cen-

災害支援

●Strengthening of the disaster preparedness of hosting local communi-●Social welfare support
NKC donated a large quantity of Hyokkorizue canes that groupcompany Neues handles, to local welfare centers, to assist handicapped and elderly person with walking.

ties
NKC donated about 2,500,000 JPY in emergencies supplies like mobile toilets to Osaka
City's Kita Ward. Future plans are to equip "Tsunami Evacuation Buildings" (registered buildings where anyone can flee in the event of a tsunami) with these kinds of emergencies supplies.
●Support for disaster-stricken areas
NKC donated financial aid to victims in Fukuchiyama, Kyoto Pref. and Hiroshima, Hiroshima
Pref., which were hit by flooding and landslides caused by heavy rains from a typhoon in August 2014.

Commendation received
from the head of Kita Ward

ters.
14

15

Social Contribution

Social Contribution●Job creation
NKC is helping to create jobs and stimulate local economies byordering work from local placement centers (elderly, handicapped,

Disaster Relief社会貢献-Social Contribution-

We recognize the role that NKC plays as a member of the local communities that host our operations
and apply our wherewithal as a business to contribute to those communities.

地域参画Interaction with Hosting Local Communities●Community support
NKC supports local communities where we have business operations by donating money and manpower for festivals and otherevents near our facilities.

FY2014 community support activities (Abridged)

FY2014 charity support activities (Abridged)<Manpower support (Employee participation)>• Blood donation• ACCJ Kansai Charity Walk
(Support for workplace improvement for working women)<Financial support>• Tenjin-Matsuri Festival• Tenma Music Festival• Midosuji Illumination• Neyagawa-Matsuri Festival• Nabarigawa Fireworks Show
• Shimoda Dororinpic• Nobenojinja Akimatsuri(Fall Festival)●Support for charity
NKC indirectly contributes to social issues that we cannot solveon our own, by making financial and in-kind donations to charity
organizations involved in activities in Japan and abroad.

<Financial support>• Hilton Osaka Christmas Train• Radio Charity Musicthon• Medecins Sans Frontieres• Green Fund

Promotion of Learning

学術振興●Participation in environmental learning events organized by NPOsThe EPD Room, which deals in environmental
products, provided a helping hand in the "NushimaIsland Natural Energy Tours." Nushima Island islocated south of Awaji Island and is striving tobecome 100% self-reliant on renewable energy.
The tours were planned to get families from Hyogo
Prefecture to think more deeply about energy byvisiting demonstration facilities on the island. The
EPD Room made snowballs using a mobile battery
they sell, which turned out to be a big hit with the
Snowball tent operated by the EPD Roomorganizers and participants alike.
●Internships and plant tours
To assist young people in planning careers and hunting for jobs, NKC offers internships and plant tours.
●Management of a scholarship fund
NKC has created a scholarship fund that awards scholarships to students and provides grants to research institutes.

Lion dance at
Tenjin-Matsuri Festival

Hilton Osaka
Christmas Train

Radio Charity
Musicthon●Community cleanups and beautification
Most of NKC's business sites in Japan get involved in cleanup activities in neighborhoods near them. We have been continuing these
activities not only because cleaned roads and sidewalks benefit everyone but also because interacting with local residents doubly works
as a pipeline of communication. These activities vary in size and scope, and some even require the business site to register with local
authorities, but each business site handles the activities on its own.

<Scholarships>
NKC added 45 new students to its scholarship programin FY2014. Counting scholarship recipients who were
continuing their education from the previous fiscal
year, a total of 37,639,000 JPY in scholarship money
was provided to 105 students. Moreover, in September
2014, a get-together was held for the college andgraduate school students who were awarded scholarshipsthat year and company employees were on hand to provide
advice on job hunting.

Counseling from
employees to scholarshipstudents

Commemorative phototaken at scholarshipsocial<Research grants>
In FY2014, a record high 7 grant applications were received for research into the industrial sciences and
NKC doled out a total of 6,000,000 JPY to 6 of them (1,000,000 JPY each). The recipient institutions are
required to submit reports at each the halfway point and end of the fiscal year in order for NKC to verify
that the grant is being used meaningfully.

FY2014 activities<Volunteer activities>
Cleanup of roads around the business site
<Sponsorship of campaigns run by local governments, etc.>
Cleanup work by Tenma Steel• Osaka Marathon Cleanup (Osaka City)• Community-driven road beautification (Neyagawa City)• Biwako Cleanup Campaign (Shiga Pref.)• Adopt-a-Road Program (Osaka Pref.)Cleanup work by the Shiga Plant

Biwako Cleanup Campaign

Cleanup work by the Nabari Plant

ex-convicts, etc.) and seeking human resources from staffing cen-

災害支援

●Strengthening of the disaster preparedness of hosting local communi-●Social welfare support
NKC donated a large quantity of Hyokkorizue canes that groupcompany Neues handles, to local welfare centers, to assist handicapped and elderly person with walking.

ties
NKC donated about 2,500,000 JPY in emergencies supplies like mobile toilets to Osaka
City's Kita Ward. Future plans are to equip "Tsunami Evacuation Buildings" (registered buildings where anyone can flee in the event of a tsunami) with these kinds of emergencies supplies.
●Support for disaster-stricken areas
NKC donated financial aid to victims in Fukuchiyama, Kyoto Pref. and Hiroshima, Hiroshima
Pref., which were hit by flooding and landslides caused by heavy rains from a typhoon in August 2014.

Commendation received
from the head of Kita Ward

ters.
14

15

Social Contribution

Social Contribution●Job creation
NKC is helping to create jobs and stimulate local economies byordering work from local placement centers (elderly, handicapped,

Disaster Relief

[Backcover Story] Overseas Contribution Activities: The Philippines
NKC will begin using this CSR Report to introduce the activities of our overseas offices and plants via "featurearticles." As the first shot at this, we want to present the bigger social contribution activities of our Philippines operations in this year's report.
●Aid for typhoon and earthquake victims
Like Japan, the Philippines live with the risk of earthquakes andtyphoons. 2013, in fact, saw heavy damage from both in many
locations across the country. To provide aid to the disaster victims,
NKC's operating base in the Philippines conducted various activities, amongst which were a fund-raising marathon and the collection and distribution of supplies.

●Donations to local elementary schools
NKC's local offices in the Philippine periodically conduct activities
to help elementary schools that lack capital or materials necessary
for them to operate. This includes donating books, chairs andother school items, and serving lunches.

Donated books for students

Lunch in the classroom

May … Posted advertisement in Shinosaka Station

Oct. … Made e-Globaledge Corp. a consolidated subsidiary●Tree planting
In the interest of environmental protection, NKC's local offices in
the Philippine plant mangroves and other tree species.
Participants from the charity
marathon2015 CSR
ReportApril 2014 - March 2015
Activities Report

Staff and collected relief supplies

Dec. … Made Suda Shoji, Inc. a consolidated subsidiary

TABLE OF CONTENTS

Volunteers after a day of tree planting■Editorial policy
NKC prepares and releases this CSR Report in order toshare information on our CSR activities with our customers,
communities that host our operations and others who havea vested interest in us. If you have any thoughts or opinions
about our CSR activities, please share them with us either
via the questionnaire included with this report or via our
corporate website, so that we can reflect them in future
activities.
This report can also be viewed and downloaded from our"CSR & Environment[Their E-site has an "Environmental
Policy" page, but no CSR reports for viewing or download.
page of our corporate website.

■Corporate profile

Established: June 19, 1941
Capital: 2,512.50 million JPY
Representative: Tatsuo Nakanishi, President
Employees; About 2,000
Line of business: Manufacture and sale of bearing retainers,
conveyor systems, sash rollers, pressed metal products, etc.

Feb. … Feted 10th year of business at Wuxi Plant (China)• Period reported: April 2014 - March 2015
• Scope: NKC Head Office, all offices and plants in Japan,

some offices and plants overseas• Date released: 09/15/2015 (Next report slated for releasein June 2016)• Send inquiries to: CSR Group, Head Office Management
Dept., Nakanishi Metal Works Co., Ltd.
3-3-5 Tenmabashi, Kita-ku, Osaka 530-8566
TEL: 06-6351-4832 FAX: 06-6351-7822
URL: www.nkc-j.co.jp
Consideration for the environment was shown in the preparation of this report.

Mar. … Built daycare center at Nabari Plant

Message from the President
CSR Activities
CSR Management
Work Customs & Practices
Occupational Safety & Health
Environmental Protection
Social Contributions

2
3
4-5
6-7
8-9
10-13
14-15