Aiming to live together in harmony with the people, society and the EarthCSRReport2016
Digest Edition

CSR of SAWAFUJI

President’sMessage

Since our beginning 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 service.
We will continue going forward as well in our aim to be a company that is trusted by society, fulfilling our social
responsibilities under the global perspective of our management philosophy.
Beginning with China, and in newly developed nations and in other countries in Asia where there is no end
in sight of an economic recovery and where the future condition is uncertain, the SAWAFUJI ELECTRIC
GROUP, with technological advancements and with our newly rebuilt Nitta plant, we continue to meet ourcustomers expectations of a strong sales system and of attaching much value in training our personnel. In thisway, we are establishing ourselves as a business enterprise moving towards globalization order.
We would appreciate your frank opinions on this report about Sawafuji’s efforts for CSR.
Sawafuji Electric Co., Ltd. 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 acorporation and 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)

BasicPhilosophy

Our Policy of Long Term Operation

SAWAFUJI
VISIONCSR Efforts

In order to achieve a figure which
aim of the three businesses,
Sawafuji multilaterally captures
the customer’s needs and trends,
then challenge to complete theachieving. Because of this, we are
driven to strengthen our businessactivity by “providing customervalue,” “having innovative changes”
and by “combining your and ourindividual and diverse strengths.”(established in October 1990 revised in April 2001)

Be shine by self, be attractive Sawafuji for all of stakeholders
Our inspired image
for business[A business for generators]
Lead to the technology
oriented business, makes
a world No. 1 of power
generation equipment,such as could convert
all the energy
into electricity.

Providing customer value[A business forelectrical components] Working closely with our customers,
A business striving
we consider the needs of society
for safety, reliability
and work to develop new values
and protecting
through the eyes of our customers.
the environment
in the area of
Innovative changes
transportationequipment field.
By adding innovative changes on ourmanagement system, we enforce
our business competitiveness.

[A business for refrigerators]
A business providing portablerefrigerator/freezer, which could
be used in any place, functioning
not only as refrigerator/freezer
but also as warmer.

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, so we have asked our suppliers to workwith us to fulfill our corporate social responsibilities.

Combining individual and diverse
strengths

Supporting individual growth, we areworking hard to have a well-organized
operation that is both slimmed down andhas good “footwork.”

Customers
Shareholders andInvestors

Local
communities

CSR

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

Suppliers

Publicinstitutions

Employees

Dialogue withstakeholders

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.

Earnings
Results for
FY 2015

Sawafuji Group strived to improveearnings in all our operations,improve business efficiency andproductivity, and reduce costs.
Consolidated earnings results for FY
2015 (120th term) were as follows.
- Net sales: 29,117 million yen- Ordinary income: 409 million yen

History of sales turnover

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

50,0001,500

40,00030,00029,20029,179 28,280 29,746 29,117

20,000944684500

10,000
0

1,000

2011

2012

2013

2014

2015 (FY)

0328
2011

2012

2013

43240920142015 (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

Relations
withCustomers

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

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.

Relations
with Globaland LocalCommunities

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 2015 are as follows:

Please refer to the last page of this booklet- 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

Relations
withShareholders
andInvestors
Relations
withDistributors
andDealers

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

IR information

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.
Sawafuji which has established systems to sell commercial parts andcomponents, collect market information and provide services by using thenetworks of its distributors and dealers to fulfill its social responsibilities inevery business situation.
In FY 2015, 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.
Technical lectures to enhance services

RelationswithSuppliers

Sawafuji pursue fairness in the transaction process and procure optimalarticles. 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 of cooperating 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.
Holding procurement policy briefings

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.

Employment

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

RelationswithEmployees

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.

Safety and sanitation management and health care

Our aim is to raise awareness of “Safety First” and of providing a safe work environment where work can bedone with ease of mind.
We make every effort to give consideration to our employees’ health, because we believe the health of each
employee is paramount.

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 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 our environmental work as an
Environmental Report that we have presented in the CSR report.

Please refer to the web version that we have introduced on the last page.

Solar power panels are installed on
the roof of our factoryWe contribute to local industries and communities, and provide products that satisfy the world.

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, and we received an award for traffic
accident prevention activities from the Ota Police Station andthe Ota Chamber of Commerce and Industry.

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.

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

Get-togethers with people in welfare
facilities

Gunma Interactive Festival

Traffic Safety Town Watcher AwardIntersection street surveillance activity

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 actively being used for
emergency-related illnesses for things suchas heatstroke

ELEMAX generator

ENGEL refrigerator

Automotive electrical equipment

Starter

Alternator

Computer for onboard use

WEBSITE

SH3900

MD14F

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. +81-276−56−7394