We contribute to local industries and communities, and provide products that satisfy the world.
Contribution to local industries and communities
Sawafuji was honored by Ota City and Isesaki City,
Gunma Prefecture, where it is in the neighborhood, as
a company contributing to industrial development.   Wewere also awarded the “certificate of cooperation” fromthe Gunma Prefecture Violence Elimination Promotion
Center.

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

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

Get-togethers with the people
from sheltered workshops

Gunma Interactive Festival

Aiming to live together in harmony withthe people, society and the Earth

Supplied
power tothe fair site
Isesaki City’s certificate recognizing
Sawafuji as a company contributing toindustrial development

Certificate of cooperationfor violence elimination
campaign

Cleanup activity near our factory

Participated in Ota
local teachers’ fair

Digest Edition

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

CSR Report 2014

FAX. +81-276−56−6413
FAX. +81-276−56−7394

CSR of SAWAFUJI

President’s Message

Since its establishment in 1934, Sawafuji Electric Co., Ltd. has steadily
supplied its electric equipment, generator, refrigerator and services forcustomers in more than 100 countries overseas, as well as Japan.
We will continue in the future to fulfill our social responsibility from a
global perspective based on our business philosophy, and strive to
become a trusted company.
Despite the prevailing uncertainty factors with sluggish economic growthin China and other newly developing countries, the Sawafuji Group will

Basic Philosophy
Company Policy (established in July 1960)●● Let’s proceed with research, practice skills and make rapid progress
brightly.
●● Let’s keep responsibility toward and faith with customers andcontribute to the society.
●● Let’s establish bright workplace based on labor-management
cooperation and mutual trust.

Sawafuji Electric Co., Ltd.
President   Hideki Ueda
establish a system as a global enterprise through reinforcement of thetechnologies, restructuring of Nitta Plant, reinforcement of the sales
system and focusing on education of our human resources.
We will also make solid commitment on “customers first” and “quality
first” by introducing the thorough TQM activities, and make every effort
to make our entire Group grow even further.
We would appreciate your frank opinions on this report about Sawafuji’sefforts for CSR.

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

SAWAFUJI ELECTRIC CO., LTD. produces good products, performssocial responsibility as a corporation 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.

CSR Efforts

Under its basic philosophy, Sawafuji will endeavor to continuously
raise corporate value by fulfilling corporate social responsibility incooperation with many stakeholders.
We believe our relationship with our suppliers is important, so wehave asked our suppliers to work with us to fulfill our corporate social
responsibilities.

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

Suppliers

Publicinstitutions

TopicsTQM toward reinforcement of the structure

Sawafuji has introduced TQM (total quality management) in order
to meet our customers’ expectations.  We invite instructors from theUnion of Japanese Scientists and Engineers and all executives andall department heads are learning the TQM method with the goal of
stable, continued growth of the Company.

Dialogue with stakeholders

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

Local
communities

CSR

Distributors
and Dealers

Employees- Net sales: 28,280 million yen- Ordinary income: 328 million yen

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, andcontribute to the development of these fields.

Relations with Shareholders and Investors

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

IR information

Sawafuji believes that it is important manner for the shareholders andinvestors to better understand Sawafuji.
As a part of our investor relations (IR) activities, we issue a biannual

Sawafuji which has established systems to sell commercial partsand components, collect market information and provide services byusing the networks of its distributors and dealers to fulfill its social
responsibilities in every business situation.
In FY 2013, the Company held meetings at its 10 bases nationwide,
explaining our policies and strengthening communication with our
distributors.

Relations with SuppliersAwarded the QC Circle Kaoru Ishikawa
Award Encouragement Prize

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 of cooperating
associations of Sawafuji, and joint training sessions on a regular basis,
and information exchange meetings on a monthly basis.

The Orange Circle in the Plant and Manufacturing
Department was awarded the “QC Circle Kaoru
Ishikawa Award Encouragement Prize” in 2013.  This
was the first time Sawafuji won this prize, and it wasan honorable and significant achievement.

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.

We also held technical lectures
to enhance services at these
distributors and dealers.

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

Associations of Sawafuji autumn seminarand promotes other CSR management efforts with the focus on talks
with the stakeholders.

History of sales turnover

Changes in the ordinary profit and loss ()
1,500

50,00040,00030,00020,00022,75027,479 29,200

29,179 28,280

906

1,000

944

684

500

328

0

10,000
2009

2010

2011

2012

2013 (FY)△1,000

2009

△908

2010

2011

Relations with Employees

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 of employees and to provide a richworkspace environment.

Diversity of employment efforts

Employment

Safety and sanitation management and health care

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

(million yen)(million yen)0

Relations with Customers

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 sheltered workshops- Volunteer for cleanup activities and traffic safety near our factory- Offering vaccines to the children of the world- Participating in local events

Technical lectures to enhance services

Earnings Results for FY 2013

Sawafuji Group strived to improve earnings in all our operations,improve business efficiency and productivity, and reduce costs.  
Consolidated earnings results for FY 2013 (118th term) were as
follows.

Sawafuji contributes to the community and international society byconducting itself as an engaged member of the community with due
consideration for environmental concerns.
Major efforts made during FY 2013 are as follows:

Relations with Distributors and Dealers

Customers
Shareholders
and Investors

Relations with Global and Local Communities

20122013 (FY)

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 todifficulties.

Human rights

We maintain a corporate environment conducive to eliciting the desire towork through our response for human rights and a fair personnel system.

Environmental Report

In 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.

To support employees’ diverse working style, we have developed,
employing disabled people, offering child-care leave and volunteer
leave system.
We give preference to safety in all matters, and our objective is tocreate a workplace where our employees can perform their duties insafety and with enjoyment.
We make every effort to give consideration to our employees’ health,because we believe the health of each employee is paramount.

We have compiled the results ofour environmental work in a reportthat is presented as part of our
CSR report.

Solar power panels are installed on
the roof of our factory

CSR of SAWAFUJI

President’s Message

Since its establishment in 1934, Sawafuji Electric Co., Ltd. has steadily
supplied its electric equipment, generator, refrigerator and services forcustomers in more than 100 countries overseas, as well as Japan.
We will continue in the future to fulfill our social responsibility from a
global perspective based on our business philosophy, and strive to
become a trusted company.
Despite the prevailing uncertainty factors with sluggish economic growthin China and other newly developing countries, the Sawafuji Group will

Basic Philosophy
Company Policy (established in July 1960)●● Let’s proceed with research, practice skills and make rapid progress
brightly.
●● Let’s keep responsibility toward and faith with customers andcontribute to the society.
●● Let’s establish bright workplace based on labor-management
cooperation and mutual trust.

Sawafuji Electric Co., Ltd.
President   Hideki Ueda
establish a system as a global enterprise through reinforcement of thetechnologies, restructuring of Nitta Plant, reinforcement of the sales
system and focusing on education of our human resources.
We will also make solid commitment on “customers first” and “quality
first” by introducing the thorough TQM activities, and make every effort
to make our entire Group grow even further.
We would appreciate your frank opinions on this report about Sawafuji’sefforts for CSR.

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

SAWAFUJI ELECTRIC CO., LTD. produces good products, performssocial responsibility as a corporation 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.

CSR Efforts

Under its basic philosophy, Sawafuji will endeavor to continuously
raise corporate value by fulfilling corporate social responsibility incooperation with many stakeholders.
We believe our relationship with our suppliers is important, so wehave asked our suppliers to work with us to fulfill our corporate social
responsibilities.

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

Suppliers

Publicinstitutions

TopicsTQM toward reinforcement of the structure

Sawafuji has introduced TQM (total quality management) in order
to meet our customers’ expectations.  We invite instructors from theUnion of Japanese Scientists and Engineers and all executives andall department heads are learning the TQM method with the goal of
stable, continued growth of the Company.

Dialogue with stakeholders

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

Local
communities

CSR

Distributors
and Dealers

Employees- Net sales: 28,280 million yen- Ordinary income: 328 million yen

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, andcontribute to the development of these fields.

Relations with Shareholders and Investors

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

IR information

Sawafuji believes that it is important manner for the shareholders andinvestors to better understand Sawafuji.
As a part of our investor relations (IR) activities, we issue a biannual

Sawafuji which has established systems to sell commercial partsand components, collect market information and provide services byusing the networks of its distributors and dealers to fulfill its social
responsibilities in every business situation.
In FY 2013, the Company held meetings at its 10 bases nationwide,
explaining our policies and strengthening communication with our
distributors.

Relations with SuppliersAwarded the QC Circle Kaoru Ishikawa
Award Encouragement Prize

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 of cooperating
associations of Sawafuji, and joint training sessions on a regular basis,
and information exchange meetings on a monthly basis.

The Orange Circle in the Plant and Manufacturing
Department was awarded the “QC Circle Kaoru
Ishikawa Award Encouragement Prize” in 2013.  This
was the first time Sawafuji won this prize, and it wasan honorable and significant achievement.

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.

We also held technical lectures
to enhance services at these
distributors and dealers.

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

Associations of Sawafuji autumn seminarand promotes other CSR management efforts with the focus on talks
with the stakeholders.

History of sales turnover

Changes in the ordinary profit and loss ()
1,500

50,00040,00030,00020,00022,75027,479 29,200

29,179 28,280

906

1,000

944

684

500

328

0

10,000
2009

2010

2011

2012

2013 (FY)△1,000

2009

△908

2010

2011

Relations with Employees

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 of employees and to provide a richworkspace environment.

Diversity of employment efforts

Employment

Safety and sanitation management and health care

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

(million yen)(million yen)0

Relations with Customers

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 sheltered workshops- Volunteer for cleanup activities and traffic safety near our factory- Offering vaccines to the children of the world- Participating in local events

Technical lectures to enhance services

Earnings Results for FY 2013

Sawafuji Group strived to improve earnings in all our operations,improve business efficiency and productivity, and reduce costs.  
Consolidated earnings results for FY 2013 (118th term) were as
follows.

Sawafuji contributes to the community and international society byconducting itself as an engaged member of the community with due
consideration for environmental concerns.
Major efforts made during FY 2013 are as follows:

Relations with Distributors and Dealers

Customers
Shareholders
and Investors

Relations with Global and Local Communities

20122013 (FY)

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 todifficulties.

Human rights

We maintain a corporate environment conducive to eliciting the desire towork through our response for human rights and a fair personnel system.

Environmental Report

In 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.

To support employees’ diverse working style, we have developed,
employing disabled people, offering child-care leave and volunteer
leave system.
We give preference to safety in all matters, and our objective is tocreate a workplace where our employees can perform their duties insafety and with enjoyment.
We make every effort to give consideration to our employees’ health,because we believe the health of each employee is paramount.

We have compiled the results ofour environmental work in a reportthat is 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
Sawafuji was honored by Ota City and Isesaki City,
Gunma Prefecture, where it is in the neighborhood, as
a company contributing to industrial development.   Wewere also awarded the “certificate of cooperation” fromthe Gunma Prefecture Violence Elimination Promotion
Center.

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

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

Get-togethers with the people
from sheltered workshops

Gunma Interactive Festival

Aiming to live together in harmony withthe people, society and the Earth

Supplied
power tothe fair site
Isesaki City’s certificate recognizing
Sawafuji as a company contributing toindustrial development

Certificate of cooperationfor violence elimination
campaign

Cleanup activity near our factory

Participated in Ota
local teachers’ fair

Digest Edition

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

CSR Report 2014

FAX. +81-276−56−6413
FAX. +81-276−56−7394