Report 2 0 1 5
Aiming to live together in harmony withthe people, society and the EarthDigest Edition

CSR of SAWAFUJI

President’s
Message

Since its inception in 1934, Sawafuji Electric has provided products and services to customers in Japan aswell as in more than 100 nations overseas, through true manufacturing with the three businesses of electricalcomponents, generators, and refrigerators.
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.
Amid the standstill of emerging economies and opaque factors such as the slowdown of growth in the Chinese
economy, the Sawafuji Electric Group will establish a system as a company that promotes globalization
by enhancing technical strength, structural reform at the Nitta plant, strengthening the sales structure,emphasizing human resource development, and fully incorporating TQM activities with a thorough “customerfirst” orientation.
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 good
products, 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 companywork.

(established in July 1960)

BasicPhilosophy

CSR Efforts(established in October 1990  revised in April 2001)

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.

Customers
Shareholders
and Investors

Localcommunities

CSR

1) Creation of useful products and services2) Coexistence with the global environment3) Contribution to society;ensuring confidence in the Company4) Realization of an excellent working
environment

Suppliers

Publicinstitutions

Distributorsand Dealers

Employees

80th Anniversary CeremonySpecialFeature

Dialogue withstakeholders

Earnings
Results forFY 2014

Sawafuji Electric celebrated the 80th anniversary since its founding
in 1934, commemorating the year by holding an 80th Anniversary
Ceremony and a Light Sports Tournament.

TQM toward reinforcement of the structure

The scene of the Anniversary Ceremony venue

Sawafuji has introduced TQM (total quality management) in order to meet our customers’ expectations.  Weinvite instructors from the Union of Japanese Scientists and Engineers and all executives and all department
heads are learning the TQM method with the goal of stable, continued growth of the Company.
Sawafuji conducts lectures at autumn seminar with affiliates, periodical information exchange meetings
with the local residents, friendship meetings with the people in the neighboring community workshops andpromotes other CSR management efforts with the focus on talks with the stakeholders.
Sawafuji Group strived to improveearnings in all our operations,improve business efficiency andproductivity, and reduce costs.  
Consolidated earnings results for FY
2014 (119th term) were as follows.
- Net sales: 29,746 million yen- Ordinary income: 432 million yen

History of sales turnover

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

50,0001,500

40,00030,000 27,479

29,20029,179 28,280 29,746

1,000

20,000

906

944
684

500

328

10,000
02010

2011

2012

2013

2014

(FY)

02010

2011

2012

2013

432

2014

(FY)

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

Development of productsRelations
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
RelationswithShareholders
andInvestors
Relations
withDistributors
andDealers

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 2014 are as follows:
Refer to the last page of this booklet- Working with the Japanese Red Cross Society
in their blood donation drives- Get-togethers with the people from shelteredworkshops- Volunteer for cleanup activities and traffic
safety near our factory- Offering vaccines to the children of the world- Participating in local events

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 2014, 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

Relations
withSuppliers

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 exchangemeetings 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

We give preference to safety in all matters, and our objective is to create a workplace where our employees
can perform their duties in safety and with enjoyment.
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, 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 have compiled the results of our environmental work in a report thatis presented as part of our CSR report.
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.
We received a letter of appreciation from Hiroshima City forour donations of generators and refrigerators in the wake ofthe heavy rains and landslides in Hiroshima.

Sawafuji works to strengthen our ties with the local community.
Our efforts include get-togethers with the people from shelteredworkshops, cleaning the area near our factory, volunteer activity
and participating in local events.

Get-togethers with the people
from sheltered workshops
Ota City’s certificate recognizing
Sawafuji as a company contributing
to industrial development

Gunma Interactive FestivalIsesaki City’s certificate recognizing
Sawafuji as a company contributing
to industrial development

Suppliedpower tothe fair site
Traffic Safety Town Watcher Award

Letter of Appreciation for Landslide
Disaster Recovery Support (Hiroshima City)

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

Automotive electrical equipment

Refrigerator

Starter

Generator actively involved in a rally in Mongol

Refrigerator for leisure

Generator being used for cleaning work

Refrigerator for leisure

Alternator

Computer for onboard use

WEBSITE

http://www.sawafuji.co.jp/kankyo/kankyo_index.php

All contents of the Social Report, Environmental Report, andother materials are posted on Sawafuji’s website ( JAPANESE).

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