CSR Report 2010
Digest Edition

Aiming to live together in harmony with the people, society and the EarthCSR of Sawafuji Electric
Greetings from the President
Since its establishment in 1934, Sawafuji Electric Co., Ltd. has
steadily developed its electrical equipment, generator and refrigerator
businesses, and provided products and services for customers inmore than 100 countries overseas, as well as Japan.
We will continue to operate the above businesses and strive togrow as a global corporation, through CSR activities in line with ourmanagement philosophy.
To cope with the severe business environment amid the worldwide
economic downturn, the entire Sawafuji Electric Group will implement
activities to achieve a V-shaped recovery in earnings under its basic

Together with Shareholders and Investors
principle of “Sun Sun Action.”
We regard the global rise in popularity of hybrid and electric vehicles
as a chance to use our motor technologies and make great strides.
We will help to achieve a sustainable society through our efforts toreduce environmental burdens of our related products and production
activities.
We would appreciate your frank opinions on this report about Sawafuji
Electric’s efforts for CSR.

1. Let’s push ahead with research, improve technologies and leap
forward brilliantly.
2. Let’s fulfill our duty to customers and keep our faith with them andcontribute to society.
3. Let’s establish an even more comfortable workplace through thecooperation and mutual trust between employees and management.

Management Philosophy (established in October 1990 revised in April 2001)

Sawafuji Electric will manufacture quality products, fulfill its
corporate social responsibilities and provide prosperity to all partiesconcerned.
- Making an impression on customers- Keeping nature environment clean- Provide prosperity to those involved in the Company’s business

CSR Efforts

CSR: Corporate Social Responsibility
Shareholders andinvestors

Customers

CSR
Localcommunities

1) Creation of useful products and services2) Coexistence with the global environment

Employees3) Contribution to society; ensuring confidence inthe Company
4) Realization of an excellent working environment

Distributors andDealers

Suppliers
Publicinstitutions

Earnings results for FY 2009
follows:- Net sales: 22,750 million yen- Ordinary income: -908 million yen
To turn this situation around, the entire Sawafuji Electric Group is
implementing various emergency measures for improving profitability
and making varied reform efforts toward a V-shaped earnings recovery.

equipment for trucks and buses, engine generators and vehiclemounted refrigerators, and contributes to the development of thesefields.

Development of products that satisfy customers

Monozukuri for customers

Sawafuji Electric is working hard every day to manufacture products
requested by customers “Only make what is needed, when needed,in the quantity needed.”Together with Local Communities
Basic policy on activities for contributing to society- To contribute to society broadly from the viewpoint of CSR;
- To maintain a good relationship and seek coexistence with localcommunities; and- To further communication with the local population and conduct
activities beneficial to local communities as a local community

Major efforts made during FY 2009 are as follows:- Donation of generators and refrigerators to the Indonesia Red
Cross Society in relation to the disaster caused by the massive
earthquake off Sumatra

Chubu-region working-level meeting of agents
Workshop for the assembly and disassemblyof starters

Working-level meeting of agents at Sawafuji ElectricWorkshop for the assembly and disassembly ofrefrigerators

Together with Suppliers
We at Sawafuji Electric pursue fairness in the transaction process andprocure optimal articles. To this end, we establish trusting relationships
with our suppliers under the basic philosophy of “mutual trust andprosperity,” and aim for mutual development and growth.
We are actively communicating with our suppliers by holding
procurement policy briefings, general meetings of cooperating
associations of Sawafuji Electric, and joint training sessions on aregular basis, and information exchange meetings on a monthlybasis.

We also actively cooperate with our suppliers in areas such as quality
improvement and cost reduction.

Together with Employees
Sawafuji Sun Sun (3×3) Action
For three parties (individuals, workplace, the Company)
Three parties (executive officers, managers, employees)
under a unified effort
Sun Sun Action
logo markSawafuji Electric strives to provide products, Monozukuri (Japanesestyle manufacturing), and services that meet customers’ needs, withthe highest priority given to customer satisfaction and trust.

Sawafuji Electric conducts social activities in line with its “Basic policyon activities for contributing to society.”

Sawafuji Electric which has established systems to sell commercial
parts and components, collect market information and provide
services by using the networks of its distributors and dealers to fulfill
its social responsibilities in every business situation.
In FY 2009, the Company held meetings at its 10 bases nationwide,
explaining our policies and strengthening communication with ourdistributors.
We also held technical lectures to enhance services at these
distributors and dealers.

Showing cost reduction activities using panels

Together with Customers
To be highly evaluated by customers around the world, theDevelopment Division tackles development issues every day, striving
to establish its position as the industry’s No. 1 in the fields of electrical

Sawafuji Electric believes that it is crucial to disclose its businessactivities to the shareholders and investors in a timely and appropriatemanner to further promote understanding of the Company.

CSR Management (together with stakeholders)

Under its basic philosophy, Sawafuji Electric will endeavor tocontinuously raise corporate value by fulfilling corporate social
responsibility in cooperation with many stakeholders.

In FY 2009, amid the worldwide economic slowdown, the Sawafuji
Electric Group decreased production due to a sharp decline indemand as well as unfavorable factors weighing on profitability,
including changes in demand structure, intensified competition andrises in materials prices.
Consolidated earnings results for FY 2009 (114th term) were as

IR information

As part of our investor relations (IR) activities, we issue a biannualShareholders Newsletter in addition to materials released at the timeof 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.

Together with Distributors and Dealers

Basic Philosophy
Business Principles (established in July 1960)

To ensure fairness and transparency, Sawafuji Electric discloses
appropriate information in a timely manner to shareholders and otherstakeholders.

- Provision of vaccines, which were bought using profits fromsales of collected plastic bottle caps, to 123 children throughout
the world (FY 2009)(in cooperation with an NPO)
- Participation in Gunma Chibikko Daigaku (children’s college)(Exhibition of refrigerators, andexperiments using supercooled
water in a hands-on children’sclassroom: photo)- Get-together meetings with shelteredworkshops(factory tours, recreation activities,etc.)

Implement three activities

Sawafuji Electric is promoting the “Sun Sun Action” as a bottom-up
activity with the participation of all employees, aiming for a company
that shines like the sun.
Related proposals and measures of all employees are visualized using
the bulletin board and groupware. In FY 2009, our plants submitted
13,559 proposals, while our Administrative Division made 3,040.
We have established the President’s Award for employees who comeup with excellent proposals, and it is given on the anniversary of ourfoundation.
Sawafuji Electric respects every employee’s independency andcreativity, and ensures the safety of the workplace and health ofemployees. For this, we have established the following systems andimplemented various relevant measures.
- Respect for human rightsWe have enacted the Corporate Ethics Principles aiming toensure the human rights of employees and an ergonomicallysound workplace.
- Diversity of employment
As part of measures to support employees in their diverse
working styles, we have established systems for employing
disabled people and offering child-care leave.
- Safety and sanitation management and health care
We conduct related education and seminars and physicalexaminations under the leadership of responsible committees.

Environmental efforts
In FY 1997, Sawafuji Electric obtained the ISO 14001 Environmental
Management System certificate. Since then, it has done its utmost toachieve environmental activity goals, which are set every FY, in linewith the Environmental Policy.
Major efforts include reducing CO2 in production activities, providing
miniaturized and lightweight products that are energy efficient,managing and reducing substances that damage the environment,decreasing waste, saving resources and saving water.
We release a summary of the above in the CSR Report as theEnvironmental Report.
Marunuma, Gumma PrefectureWe contribute to local industries and communities, and provide products that satisfy the world.
Contribution to local industries and communities
Sawafuji Electric was honored by Ota City, Gunma Prefecture, where itis based, as a company contributing to industrial development and as acompany with an excellent track record in employing the disabled.
The Company also received from Isezaki City, located near Ota City, anaward for its contribution to industrial development.

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

Every year we at Sawafuji Electric invite people fromsheltered workshops and hold get-together meetings.
In FY 2009, we invited people from five such workshops,and deepened exchange with them through factory
tours and recreational activities.

Ota City’s certificate recognizing Sawafuji Electric
as a company with an excellent track record inemploying the disabled

People from a sheltered workshop enjoying Tamaire.

Isezaki City’s certificate recognizing Sawafuji Electric as a company contributing to industrial
development, and a memento (a fabric designated as traditional craft)

Provision of products that satisfy the world
Sawafuji Electric’s products are helpful to people around the world.

Electrical equipment

GeneratorRefrigerator

Starter

Generator being used for cleaning work

Refrigerator mounted on a pleasure boat

Alternator

Generator being used at the plant site

Refrigerator for leisurePicture courtesy of adventurer Konosuke Hamada

Cover picture (Dakar Rally 2010) courtesy of Hino Motors, Ltd.

WEBSITE

http://www.sawafuji.co.jp/english/kaisya/report.html

All contents of the Social Report, Environmental Report, and othermaterials are posted on Sawafuji Electric’s website. We recommend
reading them together with this digest edition.

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