We contribute to local industries and communities,and provide products that satisfy the world.
What Sawafuji Can Do for Disaster Relief
Under our concept of “What Sawafuji can do,” as part of our social contribution
activities we have built disaster volunteer vehicles to help respond to the increasing
number of natural disasters in recent years.
Sawafuji’s products include generators and refrigerators that can be used in theevent of a disaster, and the basis of our activities is to be able to provide them“quickly and easily” according to the needs of the affected areas.
Going forward, should a disaster strike, Sawafuji’s head office will be used as ahome base and we will carry out our disaster relief activities using disaster volunteer
vehicles as mobile support bases that can be immediately moved around thecountry.

Contribution to Local Industries and Communities
We were awarded the Industrial
Development Contributing Company
Award by the neighboring city of Isesaki.

Sawafuji works hard to deepen ties with the local community. Our efforts include
get-togethers with people in welfare facilities, environmental risk patrols around ourfactories, as well as volunteer activities and participation in local events.

Isesaki City’s certificate recognizing Sawafuji as
a company contributing to industrial development

Environmental risk patrols around our factories

Christmas visit to a welfare facility

Aiming to live together in harmony
with the people, society and the Earth

Sawafuji’s products are helpful to people around the world.

Generator

Refrigerator

Starter

Alternator

Computer for onboard use

ELEMAX generator
SH3900

ENGEL refrigerator-freezer
MT45F

Motors forhybrid vehicles

Motors forelectric vehicles

Battery packELEMAX generator
SHX7000DiS

Pacificool refrigerator-freezer
Matte blackWEBSITE

https://www.sawafuji.co.jp/en/csr/

On our company’s web site above, we have introduced in detail the contentsof our Social Compliance Report and our Environmental Report.
Thank you for reading them over along with this digest version.

3 Nittahayakawa-cho, Ota-shi, Gunma 370-0344, Japan

Inquiries:
Sustainable Strategy Department
TEL. +81-276-56-7130

ReportD i g e st Ed i ti o nProvision of Products That Satisfy the World
Automotive electrical equipment

CSR2023

SearchCSR of SAWAFUJI

President’s
Message

Since our foundation in 1934, SAWAFUJI ELECTRIC CO., LTD. has been devoted to our craftsmanship and inmeeting the expectations of our world-wide customers in providing good products and services. We will continue
to communicate with all stakeholders and aim to remain the kind of company society can trust.
The recent economic situation, both in Japan and abroad, showed signs of recovery from the impact of theCOVID-19 pandemic. However, energy and raw material prices continued to soar due to the sharp depreciationof the yen and the prolonged situation in Ukraine, as well as rising logistics costs, and the business environment
remains challenging. At the same time, corporate social responsibility, including the resolution of ESG issues suchas carbon neutrality, is becoming more important.
Sawafuji will respond flexibly to these changes in the economic and social environment.
Sawafuji Electric Co., Ltd. President & Executive Officer President Masao Inoue

Company Policy

Management Creed

1. Let’s proceed with research, practice skills and make
rapid progress brightly.
2. Let’s keep responsibility toward and faith withcustomers and contribute to the society.
3. Let’s establish bright workplace based on labormanagement cooperation and mutual trust.

Sawafuji produces good products, performs social
responsibility as a corporation and provides prosperity toall people concerned.
* Make an impression on customers.
* Bring purity to nature.
* Bring prosperity to people engaged in the company work.

(Established in July 1960)

Basic
Philosophy(Established in October 1990

Revised in April 2001)

Medium to long-term management plan
Sawafuji, living with electricity
Becoming a global Sawafuji
through innovative technology

SAWAFUJI
VISION

Direction to aim forElectricity

Storage

Usage

Earnings
Results for
FY 2022
Dialogue with
Stakeholders

Technology to store
created “electricity”
Technology to create amore comfortable living
environment using“electricity”

What we aim to be by 2030

Sawafuji’s Purpose:

Continuing to playa role in solving
problems in a working
mobility society

Lowearnings

Product
strengthdeclineSlogan:Advancing energy
conversion technologies
to solve the problems ofmobility and professional
users working aroundthe world

Sawafuji Group strived to improveearnings in all our operations, improvebusiness efficiency and productivity, andreduce costs. Consolidated earnings
results for FY 2022 (127th term) were asfollows.
- Net sales: 29,340 million yen- Operating income: 238 million yen

What we
aim to be

Highearnings
Value
creation Active
and investment
Virtuous
cycle - Human
resources
Product - R&D
strength - Equipment
improvement
Ability to propose productsthat exceed expectations

Each individual changes awarenessand behavior, and concentrates all
their efforts
Becoming a brilliant andattractive Sawafuji

What wewant to beExistingHigh
growthUnder its basic philosophy, Sawafuji will endeavor
to continuously raise corporate value by fulfilling
corporate social responsibility in cooperation withmany stakeholders.
We believe our relationship with our suppliers isimportant, and therefore ask for their understanding
and cooperation in fulfilling their own corporate socialresponsibilities.

Electricsystems

Interim Target:
FY2024 medium
term plan
Consolidated
operating income

Shareholders andInvestors

CSR(million yen)

26,655 28,761 29,340

800

Employment400

10,000

200
2018

2019

2020

2021

2022 (FY)

0383

233

238

22018

2019

2020

2021

2022 (FY)

Sawafuji conducts lectures at autumn seminar with affiliates, periodical information exchange meetings with thelocal residents, friendship meetings with people in nearby welfare facilities and promotes other CSR management
efforts with the focus on talks with the stakeholders.

Development of products

Sawafuji’s development department continues to take on the challenge of contributing to a sustainable society bystrengthening our development system with electrification technology as our core product, and developing valueadded products that meet the needs of our customers.

Monozukuri

Sawafuji strives every day to achieve craftsmanship capable of moving our customers emotionally.

Quality control system and Service network

Human rights

We maintain a corporate environment conducive to eliciting the desire to work through our response for humanrights and a fair personnel system.

Diversity of employment efforts

To support employees’ diverse working style, we have developed, re-employing retired people, employing disabledpeople, offering child-care leave and volunteer leave system.
Under the concept that “Safety takes precedence over all business”, we are developing safety activities with theaim of “An environment where people can work with peace of mind”.
We value each of our employees and make every effort to ensure that they stay healthy.

Sawafuji strives to provide products and services that meet customers’ needs, with the highest priority given tocustomer expectations and trust.

Relations
withCustomers

Sawafuji values the self-reliance and creativity of each of its employees.
We have established the following systems and measures to ensure the safety of the workplace, the health ofemployees and to provide a rich workspace environment.

671

600

20,0000Relations
withSuppliers

1,000

31,151 29,995

Sawafuji believes that it is important manner for the shareholders and investors to better understand Sawafuji.
As a part of our investor relations (IR) activities, we issue Shareholders Newsletter in addition to materials released
at the time of business results announcements.
The newsletter, which contains topics on our environmental activities and new products, is intended to help
shareholders and investors broadly understand our activities.

Safety and sanitation management and health care(million yen)

30,000IR information

Sawafuji is committed to practicing fair business processes and procuring optimal products. To do so, we build
trusting relationships with our suppliers, endeavoring to develop and grow together, in line with our core philosophyof “mutual trust and mutual prosperity”.
We are actively communicating with our suppliers by holding procurement policy briefings, general meetings ofcooperating associations of Sawafuji, and joint training sessions on a regular basis, and information exchange
meetings on a monthly basis.
We also actively cooperate with our suppliers in areas such as quality improvement and cost reduction.

Employees

Operating income by year

40,000To ensure fairness and transparency, Sawafuji discloses appropriate information in a timely manner to shareholders
and other stakeholders.

Sawafuji which has established systems to sell commercial parts and components, collect market information andprovide services by using the networks of its distributors, and dealers to fulfill its social responsibilities in every
business situation.
In FY 2022, the Company held meetings at its 10 bases nationwide, and explained our policies and strengthenedcommunication with our distributors.
We also held lectures to enhance services at these distributors and dealers.

RelationswithEmployees

Localcommunities

Net sales by year
50,000- Working with the Japanese Red Cross Society intheir blood donation drives- Get-togethers with people in welfare facilities.
- Volunteer for cleanup activities and traffic safety
near our factory- Offering vaccines to the children of the world- Participating in local events

We are committed to personnel training based on our policy of employment stability.

1) Creation of useful products and services2) Coexistence with the global environment3) Contribution to society;Distributors
ensuring confidence in the Company
and Dealers
4) Realization of an excellent working
environment

Publicinstitutions

Sawafuji contributes to the community and internationalsociety by conducting itself as an engaged member ofthe community with due consideration for environmental
concerns.
Major efforts made during FY 2022 are as follows. Moreinformation can be found on the last page of this report.

Relations withDistributors
and Dealers

Solidify our corporate base, transform our businessportfolio, and become a global Sawafuji* Pie chart: Sales percentage image

Customers

Suppliers

Relations withShareholders
and Investors

Long-term Initiative “Challenge 2030”

Awareness and behavior change

PreviousLow negative Restrained
growth cycles investment

We aim to become an “Electricity-related”
solutions company utilizing the coretechnologies we have cultivated.
Technology to convert
Creation any form of energy into
“electricity”

CSR Efforts

Medium to long-term management plan
— Long-term Initiative “Challenge 2030”

Relationswith Globaland Local
Communities

Sawafuji continues to improve ourselves by creating a quality control system that conforms to the ISO 9001
management system. We have also created a service network enabling prompt response to difficulties.

Environmental
ReportIn 1997, Sawafuji obtained the ISO
14001 Environmental Management
System certificate. Since then, it hasdone its utmost to achieve environmental
activity goals, which are set every FY, inline with the Environmental Policy.
Major efforts include reducing CO2 inproduction activities, managing andreducing substances that damage
the environment, and we also areproviding miniaturized and lightweight
products that are energy-efficient, have
low emission and that conserve on
resources and water.
We have compiled the results of ourenvironmental work in an environmental
report, which is included in the CSR
Report published on our corporatewebsite.
* Please refer to the web version that
we have introduced on the last page.

Environmental Policy
Sawafuji is committed to playing a vital role in building a society
designed to pass on a healthy environment to future generations,so we work to provide products and services that meet customer
expectations through safe manufacturing practices and to develop nextgeneration technologies for a new society driven by environmentallysound energy.
1. We are committed to “carbon neutrality” through the use of sustainableenergy.
2. We develop and design technologies that will not only enhance
performance but also reduce the environmental burden.
3. We are committed to protecting the environment by assessing the impactof our production activities, products, and services on the surrounding
environment, resources, climate change, and the ecosystem as we workwith an eye to preventing pollution and making continuous improvements.
4. We comply with environment-related laws and regulations as well asprescribed requirements while ensuring that each employee fulfills his or
her social responsibility.
5. We actively foster communication among local communities as a good
corporate citizen.
Established in May 1997
Revised in June 2022

Sawafuji Electric Co., Ltd.
President & Executive Officer President

Masao Inoue