CSR

Report2011
Digest Edition

Aiming to live together in harmony
with the people, society and the EarthCSR of Sawafuji Electric
Greetings from the President
We offer our sincerest condolences to the people who suffered in theTohoku Earthquake, as well as their families.
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 strive to earn society’s trust by making diligent efforts to
fulﬁll our corporate social responsibility based on our businessphilosophy.
Sawafuji Electric Group confronted a harsh business climate due tothe global economic downturn. Overcoming that challenge required
us to work together to promote and implement our restructuring plan.

Sawafuji Electric Co., Ltd.
President Hideki Ueda
As a result, we achieved a V-shaped recovery in earnings.
Sawafuji Electric is utilizing its strengths to develop new markets,
products, and technology to solidify its base and achieve growthduring this major transformation occurring as a result of the economic
and technological reforms and reorganization.
We are also working to achieve a sustainable society through efforts
to reduce the environmental burden in our products and production
activities.
We would appreciate your frank opinions on this report about Sawafuji
Electric’s efforts for CSR.

Basic Philosophy
Business Principles (established in July 1960)

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 parties
concerned.
- Making an impression on customers- Keeping nature environment clean- Provide prosperity to those involved in the Company’s business

CSR Efforts

CSR Management (together with stakeholders)
CSR: Corporate Social Responsibility

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

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

Special Section
This special section examines the efforts Sawafuji Electric ismaking to fulﬁll its social responsibility. We hope this enhances yourunderstanding of and trust in these activities.

Response to the Tohoku Earthquake

We established an emergency relief ofﬁce immediately after thedisaster to determine the damage caused by the earthquake andtsunami, and to support the recovery and rebuilding efforts of ourdistributors, speciﬁed agents, and suppliers.
We are also selling generators to the domestic market to help alleviate
power shortages.

Factory tours

We conduct tours of our factory every year for the people at a nearby
sheltered workshops and local schools to strengthen communication
with the community. We also began factory tours for employee family
members in 2010.

Earnings Results for FY 2010
The economic climate for the Sawafuji Electric group in FY 2010 wascharacterized by a ﬂattening of the domestic recovery due to therecovery of the economies in the newly emerging nations and the stallof the economies in the industrialized nations.
With this economic climate as the basis, overcoming that challenge
required us to work together to promote and implement our restructuringplan. As a result, we achieved a V-shaped recovery in earnings.

Consolidated earnings results for FY 2010 (115th term) were as
follows:- Net sales: 27,479 million yen- Ordinary income: -906 million yen

Together with Customers
Sawafuji Electric strives to provide products and services thatmeet customers’ needs, with the highest priority given to customer
satisfaction and trust.

position as the industry’s No. 1 in the ﬁelds of electrical equipment
for trucks and buses, engine generators and vehicle-mounted
refrigerators, and contribute to the development of these ﬁelds.

Development of products that satisfy customersMonozukuri for customers

To be highly evaluated by customers around the world, the Development
Division tackles development issues every day, striving to establish its

Sawafuji Electric strives every day to achieve craftsmanship capableof moving our customers emotionally.

Together with Local Communities
Sawafuji Electric contributes to the community and internationalsociety by conducting itself as an engaged member of the community
with due consideration for environmental concerns.
Major efforts made during FY 2010 are as follows:- Offering vaccines to thechildren of the world- Working with the JapaneseRed Cross Society in theirblood donation drives- Participating in the National
Tree-Care Festival- Participating in local events

The National Tree-Care Festival

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

IR information

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.
As part of our investor relations (IR) activities, we issue a biannual
Shareholders 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
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 2010, 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.

Factory tours during technical lectures

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 holdingprocurement policy brieﬁngs, general meetings of cooperating
associations of Sawafuji Electric, and joint training sessions on a regularbasis, and information exchange meetings on a monthly basis.

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

Procurement policy brieﬁngs

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 markImplement 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 2010, our plants submitted
17,700 proposals, while our Administrative Division made 3,300.
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 values the self-reliance and creativity of each of itsemployees. We have established the following systems and measuresrelated to human rights, employment, and health and safety to ensurethat we provide a rich workplace environment that respects ouremployees’ character and personality.
- Respect for human rights
We 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 1997, Sawafuji Electric obtained the ISO 14001 Environmental
Management System certiﬁcate. Since then, it has done its utmost
to achieve 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 theenvironment, decreasing waste,saving resources and savingwater.
We have compiled the results ofour environmental work in a reportthat is presented as part of ourCSR 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
Sawafuji Electric was honored by Ota
City, Gunma Prefecture, where it isbased, as a company contributing toindustrial development.

Every year, we work to strengthen our ties with the local community. Our efforts include
get-togethers with the people from sheltered workshops, cleaning the area near ourfactory, and participating in local events.

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

Plant tour for neighborhood schools

Gunma Interactive Festival

Ota City’s plaque recognizing Sawafuji Electric as acompany contributing to industrial development

Cleanup activities around the park

Water quality surveys conducted by local non-proﬁtorganizations

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

Automotive electricalequipment

Generator

Refrigerator

Starter

Generator being used for cleaning work

Refrigerator mounted on a pleasure boat

Alternator

Generator used as a backup powersource for a boutique

Refrigerator for leisure

WEBSITE

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

All contents of the Social Report, Environmental Report, and other materials
are posted on Sawafuji Electric’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