We contribute to local industries and communities and provide products that satisfy the world.
Special Feature: Exhibited at the 46th Tokyo Motor Show 2019
We exhibited our products at our company booth at Tokyo Big Sight (Tokyo InternationalExhibition Center) from Thursday, October 24 to Monday, November 4, 2019.
Under the theme of “Let’s Go - Cars of the Future, Energy of the Future”, we exhibited
HV/EV systems specialized for commercial vehicles, hydrogen production technology
with potential for FCV applications, and portable refrigerators that promise to help
enhance automotive lifestyles, introducing products and technologies that will contributeto the future of automotive society.

Aiming to live together in harmony withthe people, society and the EarthContribution 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 gettogethers with people in welfare facilities, cleaning the area near our factory, volunteer
activity and the participation in local events.

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

Volunteer activities at welfare
facilities

Cleanup activity near our factory

Participated in Ota local teachers’ fair

CSR 2020

Provision of Products That Satisfy the World

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

Automotive electrical equipment

Generator

Refrigerator

Digest Edition

StarterAlternator

24 V– 60 A

ELEMAX generators actively being used inVietnam

ENGEL refrigerators are actively used incampsites

Computer for onboard use

HV Motor

ELEMAX generator

ENGEL refrigerator

24 V– 5 kW   W E B S I T ESH3900

MT45F-Phttps://www.sawafuji.co.jp/kankyo/kankyo_index.php

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.

SearchInquiries:

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

Internal Audit Department
Environment Safety Department

TEL. +81-276-56-7338
TEL. +81-276-56-7334

FAX. +81-276-56-6413
FAX. +81-276-58-2154

CSR of SAWAFUJI

President’s
Message

Since our beginning in 1934, SAWAFUJI ELECTRIC CO., LTD. has been devoted to our craftsmanship andin meeting the expectations of our world-wide customers in providing good products and services. True toour corporate philosophy, we foster communication among our stakeholders across the globe as we work toremain the kind of company that the public can trust.
The Japanese economy has continued to recover moderately despite weak corporate profits, particularly inthe export, production, and manufacturing industries. Overseas, the American economy continues to recoversteadily, while Europe and emerging economies in Asia continued on a moderate recovery track. However,
due to the spread of COVID-19 and other factors, the economic outlook is increasingly uncertain.
We would appreciate your frank opinions on this report about Sawafuji’s efforts for CSR.
Sawafuji Electric Co., Ltd. President & Executive Officer President Akihiko Yoshikawa

Company Policy

Management Creed

1. Let’s proceed with research, practice skills andmake 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 ELECTRIC CO., LTD. produces good
products, performs social responsibility as a corporationand provides prosperity to all 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

Sawafuji, living with electricity
Becoming a global Sawafuji
through innovative technology

SAWAFUJI
VISION

Direction to aim for

We aim to become an “Electricity-related”
solutions company utilizing the coretechnologies we have cultivated.

(Established in October 1990

Medium-Term Management Policy

Based on the smiles of our employees, we will create a virtuous“Sawafuji Cycle” that will provide products that are truly attractive tocustomers in a timely manner, and which will in turn lead to profits.
Realization ofvirtuous“Sawafuji cycle”

Electricity

Usage

CSR Efforts

Technology to create a more
comfortable living environment
using “electricity”

Creating products thatare attractive tocustomers

Aiming to create attractive products thatlead to kotozukuri (creation of stories)
by identifying customer’s “to be” (what’sexpected)

Create strategies to sell

Create strategies that will sell from athorough analysis of winning and losing

Sales

Creating productsthat are attractive
to customers
Create strategies
to sellTechnology to convert any form ofCreation energy into “electricity”
Technology to store created
Storage “electricity”

Revised in April 2001)

Reliability

Profitability

Implement measures
to improve ES while
training people

Concentratedevelopment of profit
reform activities byvisualizing profit
structure without asanctuary

Under 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.

Implement measures toimprove ES while training
peopleSuppliers

CSREarnings
Results for
FY 2019

Changes in the ordinary profit(million yen)

Relationswith
Employees

1,000

654

20,000500

10,000
2015

2016

2017

2018

2019 (FY)

0409
2015

788
551
237

2016

2017

2018

2019 (FY)

Development of products

To be highly evaluated by customers around the world, the Development Division tackles development issues,
striving to establish its position as No. 1 of the industry in the fields of electric equipment for trucks and buses,
engine generators and vehicle-mounted refrigerators, and contribute to the development of these fields.

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 forhuman rights and a fair personnel system.

Diversity of employment efforts

To support employees’ diverse working style, we have developed, re-employing retired people, employing
disabled people, offering child-care leave and volunteer leave system.
Under the concept that “Safety takes precedence over all business”, we are developing safety activities withthe aim 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.

1,500

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

Safety and sanitation management and health care

History of sales turnover

0Relations
withSuppliers

Sawafuji is committed to practicing fair business processes and procuring optimal products. To do so, webuild trusting relationships with our suppliers, endeavoring to develop and grow together, in line with our corephilosophy of “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(million yen)

29,117 27,361 30,868 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.

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

Sawafuji Group strived to improveearnings in all our operations,improve business efficiency andproductivity, and reduce costs.
Consolidated earnings results for FY
2019 (124th term) were as follows.
- Amount of sales: 29,995 million yen- Ordinary income: 237 million yen

50,000IR information

Employment

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

Publicinstitutions

To ensure fairness and transparency, Sawafuji discloses appropriate information in a timely manner toshareholders and other stakeholders.

Relations withDistributorsand Dealers

Customers
Shareholders andInvestors- Working with the Japanese Red Cross Society
in their 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

Sawafuji which has established systems to sell commercial parts and components, collect market informationand provide services by using the networks of its distributors, and dealers to fulfill its social responsibilities inevery business situation.
In FY 2019, the Company held meetings at its 10 bases nationwide, explaining our policies and strengthening
communication with our distributors.
We also held technical lectures to enhance services at these distributors and dealers.

Focus on human resource development
and implementation of measures tocreate a company where employees canwork with a smile on a permanent basis

Dialogue with
Stakeholders

30,000Relations with
Shareholders
and Investors

Concentrate development of profit Visualize the profit structure and createa system in which we can offer optimalreform activities by visualizing
profit structure without a sanctuary global prices

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

40,000Relationswith Globaland Local
Communities

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 2019 are as follows.
More information can be found on the last page of thisreport.

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
has done its utmost to achieveenvironmental activity goals, which
are set every FY, in line with theEnvironmental Policy.
Major efforts include reducing CO2
in production activities, managing
and reducing substances thatdamage the environment, and we
also are providing miniaturized andlightweight products that are energyefficient, have low emission and thatconserve on resources and water.
We have compiled the resultsof our environmental work in
an environmental report, whichis included in the CSR Reportpublished on our corporate website.
* Please refer to the web version that wehave 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 todevelop next-generation technologies for a new society driven byenvironmentally sound energy.
1. We develop and design technologies that will not only enhance
performance but also reduce the environmental burden.
2. 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.
3. We comply with environment-related laws and regulations as well asprescribed requirements while ensuring that each employee fulfills his or
her social responsibility.
4. We actively foster communication among local communities as a good
corporate citizen.

Established in May 1997 Revised in January 2017
Sawafuji Electric Co., Ltd. President & Executive Officer President Akihiko Yoshikawa