We contribute to local industries and communities,and provide products that satisfy the world.
What Sawafuji Can Do for Disaster Relief
Under our concept of “What Sawafuji can do,” as part of our social contribution
activities we have built disaster volunteer vehicles to help respond to the increasing
number of natural disasters in recent years.
Sawafuji’s products include generators and refrigerators that can be used in theevent of a disaster, and the basis of our activities is to be able to provide them“quickly and easily” according to the needs of the affected areas.
Going forward, should a disaster strike, Sawafuji’s head office will be used as ahome base and we will carry out our disaster relief activities using disaster volunteer
vehicles as mobile support bases that can be immediately moved around thecountry.

Aiming to live together inharmony with the people,
society and the EarthContribution to Local Industries and Communities
We were awarded the Industrial
Development Contributing Company
Award by the neighboring city of Isesaki.

Sawafuji works hard to deepen ties with the local community. Our efforts include
get-togethers with people in welfare facilities, environmental risk patrols around ourfactories, as well as volunteer activities and participation in local events.

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

Environmental risk patrols around our factories

Christmas visit to a welfare facility

Provision of Products That Satisfy the World
Sawafuji’s products are helpful to people around the world.

Automotive electrical equipment

Generator

Refrigerator

Starter

Alternator

Computer for onboard use

ELEMAX generator
SH3900

ENGEL refrigerator-freezer
MT45FMotors forhybrid vehicles

Motors forelectric vehicles

Battery pack

ELEMAX generator
SHX7000DiS

Pacificool refrigerator-freezer
Shine red × MetallicWEBSITE

Digest Edition

https://www.sawafuji.co.jp/en/csr/

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.

3 Nittahayakawa-cho, Ota-shi, Gunma 370-0344, JapanCSR
Report2022

SearchInquiries:
Environment Safety Department
TEL. +81-276-56-7334   FAX. +81-276-58-2154CSR of SAWAFUJI

President’s
Message

Since our foundation in 1934, SAWAFUJI ELECTRIC CO., LTD. has been devoted to our craftsmanship andin meeting the expectations of our world-wide customers in providing good products and services. True to ourcorporate philosophy, we foster communication with our stakeholders based on a global perspective as wework to remain the kind of company that the public can trust.
When we see the economic situation, the recovery of the economic environment is still weak both in Japanand overseas. On top of that, there is still a semiconductor shortage, raw material prices continue to rise, andalso there is the impact of the situation in Ukraine, we have to say so uncertainty lies ahead. On the other
hand, movements toward energy conversion, such as carbon neutrality and electrification, are expanding
globally, and companies are increasingly required to fulfill their social responsibilities with regard to social
issues such as the Sustainable Development Goals (SDGs). Sawafuji Group will respond flexibly to thesechanges in the economic and social environment.
Sawafuji Electric Co., Ltd. President & Executive Officer President Masao Inoue

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 produces good products, performs social
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.

(Established in July 1960)

BasicPhilosophy

Sawafuji, living with electricity
Becoming a global Sawafuji
through innovative technology

SAWAFUJI
VISION

Technology to convert any form

Technology to store created

Storage “electricity”
Usage

Technology to create a more
comfortable living environment
using “electricity”

Sales

Sales

Profitability-V isualize the profit structure and fully implement reform
activities to build a robust profit structure.
-R ealize a system that enables us to offer products at
optimal prices globally. Reliability

Profitability

Contribution tocarbon neutrality

Electrical, spare partsand power generation:
Profit reform

Reliability

Shareholders andInvestors

Suppliers

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

Publicinstitutions

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, the health ofemployees and to provide a rich workspace environment.

Operating income by year(million yen)(million yen)

50,000RelationswithEmployees

26,655 28,761

800
600

20,000400

10,000

200
2019

2020

2021 (FY)

0671
447

383

233
2
2017

2018

2019

2020

2021 (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

Sawafuji’s development department continues to take on the challenge of contributing to a sustainable society
by strengthening our development system with electrification technology as our core product, and developing
value-added products that meet the needs of our customers.

Monozukuri

Sawafuji strives every day to achieve craftsmanship capable of moving our customers emotionally.

Quality control system and Service network

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.
Under the concept that “Safety takes precedence over all business”, we are developing safety activities withthe aim of “An environment where people can work with peace of mind”.
We value each of our employees and make every effort to ensure that they stay healthy.

1,000

30,868 31,151 29,995

Human rights

Safety and sanitation management and health care

Earnings
Results for
FY 2021

Relations
withCustomers

Relations
withSuppliers

Sawafuji is committed to practicing fair business processes and procuring optimal products. To do so, webuild trusting relationships with our suppliers, endeavoring to develop and grow together, in line with our corephilosophy of “mutual trust and mutual prosperity”.
We are actively communicating with our suppliers by holding procurement policy briefings, general meetings ofcooperating 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.

Employees

Net sales by year

2018

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 Shareholders Newsletter in addition to materials
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.

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

Sawafuji Group strived to improveearnings in all our operations,improve business efficiency andproductivity, and reduce costs.
Consolidated earnings results for FY
2021 (126th term) were as follows.
- Net sales: 28,761 million yen- Operating income: 383 million yen

2017

IR information

Employment

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.

0To ensure fairness and transparency, Sawafuji discloses appropriate information in a timely manner toshareholders and other stakeholders.

Sawafuji which has established systems to sell commercial parts and components, collect market informationand provide services by using the networks of its distributors, and dealers to fulfill its social responsibilities inevery business situation.
In FY 2021, the Company held online meetings as a measure to prevent infections, and explained our policies
and strengthened communication with our distributors.
We also held online lecture meetings to enhance services at these distributors and dealers.

Customers

Dialogue with
Stakeholders

30,000- 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 withDistributors
and Dealers- Aim to contribute to society and achieve sustainablegrowth by clarifying the relationship between our businessactivities and carbon neutrality, developing products that
help the environmental improvement, and reducing theenvironmental impact of our business activities.
-F ocus on human resource development while implementing
measures to make the company a place where employees
can work permanently with a smile.

Earnings
management
capabilities

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, and therefore ask for their understanding
and cooperation in fulfilling their own corporate social
responsibilities.

40,000

Sawafuji contributes to the community and internationalsociety by conducting itself as an engaged member ofthe community with due consideration for environmental
concerns.
Major efforts made during FY 2021 are as follows.
More information can be found on the last page of thisreport.

expected)

Electric: Assortment andcompetitiveness
Refrigeration: Improvementof product quality

Reformimplementation
capability

Revised in April 2001)

Relations withShareholders
and Investors- Aiming to create attractive products that lead to kotozukuri(creation of stories) by identifying customer’s “to be” (what’sNew product andbusiness planningcapabilities

Direction to aim forElectricity

CSR Efforts

Medium to Long-term
Initiatives

We aim to become an “Electricity-related”
solutions company utilizing the coretechnologies we have cultivated.
Creation of energy into “electricity”(Established in October 1990

Relationswith Globaland Local
Communities

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 prompt response to difficulties.

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 thatdamage the environment, and wealso are providing miniaturized andlightweight products that are energyefficient, have low emission and thatconserve on resources and water.
We have compiled the resultsof our environmental work in
an environmental report, whichis included in the CSR Reportpublished on our corporate website.
* Please refer to the web version that
we have introduced on the last page.

Environmental Policy

Sawafuji is committed to playing a vital role in building a society
designed to pass on a healthy environment to future generations,so we work to provide products and services that meet customer
expectations through safe manufacturing practices and todevelop next-generation technologies for a new society driven byenvironmentally sound energy.
1. We are committed to “carbon neutrality” through the use of sustainableenergy.
2. We develop and design technologies that will not only enhance
performance but also reduce the environmental burden.
3. We are committed to protecting the environment by assessing
the impact of our production activities, products, and services on
the surrounding environment, resources, climate change, and theecosystem as we work with an eye to preventing pollution and making
continuous improvements.
4. We comply with environment-related laws and regulations as well asprescribed requirements while ensuring that each employee fulfills hisor her social responsibility.
5. We actively foster communication among local communities as a good
corporate citizen.
Established in May 1997
Revised in June 2022

Sawafuji Electric Co., Ltd.
President & Executive Officer President

Masao Inoue