We contribute to local industries and communities, and provide products that satisfy the world.
<2018 Japan Floods Support Activities>

SpecialFeature Donation of ENGEL refrigerators to Hiroshima City and 3 other municipalities

As a disaster recovery support activity following the heavy
rain in western Japan that occurred in July 2018, throughour agency Nakayoshi Engineering Corporation, we donated
10 ENGEL “MT60F” refrigerators, which were installed in theHiroshima City Council of Social Welfare, Kure City Council ofSocial Welfare, Kumano Town Council of Social Welfare, andSaka Town Council of Social Welfare in Hiroshima Prefecture.
We will continue to contribute to society in various ways throughour products.

Contribution to Local Industries and Communities
We were awarded the Industrial Development Contributing
Company Award by the neighboring cities of Ota and Isesaki,
Gunma Prefecture.

Sawafuji works hard to deepen ties with the local community.
Our efforts include get-togethers with people in welfare
facilities, cleaning the area near our factory, volunteer activity
and the participation in local events.

CSR 2019
ReportDigestEdition

Aiming to live together in harmony with the people, society and the Earth
Ota City’s certificate recognizing
Sawafuji as a company contributing
to industrial development

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

Cleanup activity near our factory

Participated in Ota local teachers’ fair

Provision of Products That Satisfy the World
Sawafuji’s products are helpful to people around the world.

Generator

Refrigerator

ELEMAX generators actively being used inVietnam

ENGEL refrigerators are actively used incampsites

ELEMAX generator     SH3900

ENGEL refrigerator     MT45F-P

Automotive electrical equipmentStarterAlternator

Computer for onboard use   W E B S I T E

http://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 Control 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’sMessage

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 service. 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.
Amidst uncertainties such as the trend of economic leveling and slowing in domestic and overseas economic
conditions, trends in the trade policies in each country, the UK’s exit from the EU, and the situation in NorthKorea, the Sawafuji Electric Group aims to become an “Electricity-related” solutions company utilizing the coretechnologies we have cultivated.
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 goodproducts, 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 aims to become an “Electricity-related”
solutions company utilizing the coretechnologies we have cultivated.

(Established in October 1990       Revised in April 2001)

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”

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”

Creating products thatare attractive tocustomers

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.

Relations with
Shareholders
and Investors

Implement measures toimprove ES while training
peopleSuppliers

Relations
withSuppliers

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, health ofemployees and to provide a rich workspace environment.
We are committed to personnel training based on our policy of employment stability.

Localcommunities

CSR

RelationswithEmployees

Employees

Earnings
Results forFY 2018

History of sales turnover

Changes in the ordinary profit(million yen)(million yen)

40,000

0

1,000
500

10,000
2014

2015

2016

2017

2018 (FY)0654

432409

2014

2015

2016

78855120172018 (FY)

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

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

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

20,000

Human rights

Safety and sanitation management and health care

Sawafuji Group strived to improveearnings in all our operations,improve business efficiency andproductivity, and reduce costs.
Consolidated earnings results for FY
2018 (123th term) were as follows.
- Amount of sales: 31,151 million yen- Ordinary income: 788 million yen

29,746 29,117 27,361 30,868 31,151
30,000

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 a biannual Shareholders Newsletter in addition tomaterials 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.

Employment

Dialogue with
Stakeholders

50,000IR information

Sawafuji pursue fairness in the transaction process and procure optimal articles. To this end, we establish
trusting relationships with our suppliers under the basic philosophy of “mutual trust and prosperity,” and aim for
mutual development and growth.
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.

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

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 withDistributors
and 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 2018, 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.

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.

Relationswith
Customers

Relationswith Globaland Local
Communities

Sawafuji contributes to the community and internationalsociety by conducting itself as an engaged member ofthe community with due consideration for environmentalconcerns.
Major efforts made during FY 2018 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 a 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, managingand reducing substances thatdamage the environment, and wealso are providing miniaturized andlightweight products that are energy
efficient, 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 Electric 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 meetcustomer 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 envrionment-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 Akihiko Yoshikawa