Daido Kogyo Group Sustainability Management Action Guidelines (Rev.1.4)
May 7, 2024

Daido Kogyo Group Sustainability Management Action Guidelines
Chapter 1 Background of this Action Guidelines
Based on our founding spirit of ̀̀Daido Chien,'' which is ̀̀To unite for a great
purpose and strive to realize lofty ideals,'' we have established a mission (i.e. ourmission as a company), a vision (i.e. the future and society we want to realize),values (i.e. principles of behavior for workers), we will continue to provide joy,possibility, and the natural environment of the future to every corner of theearth. We will continue to take on the challenge of new technology andcontribute to the development of society through the continuous growth ofpeople and businesses.
The Daido Kogyo Group has deﬁned the following four points as its basic
sustainability policy.
① Contribute to a sustainable society development via technological innovation.
② Establish sustainable production systems.
③ Develop diverse human resources and improve satisfaction of engagement.
④ Establish a governance system for fair, sound, and transparent corporate
operation.
To contribute to the realization of a sustainable society by promoting thecorporate activities based on our mission, vision, values, and basic sustainability
policy, we have established the following more speciﬁc action guidelines
common to the group.
Chapter 2 General Matters
To ensure that eﬀorts are strengthened in accordance with this action guidelines,
we will do followings:① Assign a director in charge of sustainability management.
② A Sustainability Committee will be formed to identify risks related to overallsustainability management activities, regularly evaluate performance, and1

Daido Kogyo Group Sustainability Management Action Guidelines (Rev.1.4)
May 7, 2024

consider countermeasures for newly discovered issues.
③ Regularly publish the achievements of sustainability management activities.
④ Regularly conduct educational activities related to sustainability managementfor our employees, including executives.
⑤ Strive to disseminate sustainability activities to external stakeholders.
⑥ Establish a system that allows employees to voluntarily report or seek advice
regarding situations that violate or have the potential to violate this action
guidelines and take necessary corrective measures. This system shall notcause any disadvantage to whistleblowers or those seeking advice.
Chapter 3 Action Guidelines Related to Safety and Quality Issues
We stipulate followings as action guidelines related to safety and quality insustainability management.
① To meet the needs of society and customers, we develop and provide
products and services that environmentally friendly products and services
that save energy, save resources, and protect the environment. We also strive
to develop and provide products and services that can be used universally
regardless of age, gender, disability, etc.
② We strive to provide appropriate information regarding products andservices to all stakeholders in a timely and fair manner.
③ We produce and provide products and services that meet the safety laws andregulations set forth in each country and region, as well as the safety
requirements of business partners.
④ To ensure the quality of products and services, we establish and operate aquality assurance system, grasp the situation in a timely and appropriatemanner and take measures against quality issues, and regularly review thequality assurance system.
Chapter 4 Action Guidelines Related to Human Rights and Working
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Daido Kogyo Group Sustainability Management Action Guidelines (Rev.1.4)
May 7, 2024

From the standpoint of supporting the Universal Declaration of Human Rights,
we stipulate followings as action guidelines regarding human rights and theworking environment as part of sustainability management.
① We will not discriminate against people based on race, ethnicity, national
origin, religion, or gender including speciﬁc minority groups in all
employment situations, including application, hiring, promotion, wages,
dismissal, retirement, work assignments, human resource development,punishment, etc.
② We will not tolerate any form of harassment in the workplace based on
race, ethnicity, national origin, religion, gender, including speciﬁcminority groups, etc.
③ We do not permit the labor of children under the workable age according
to the laws and regulations of each country and region.
④ We ensure that all labor shall be voluntary and that employees are free toleave their jobs with advanced notice, and we do not engage in forcedlabor.
⑤ We shall comply with the laws and regulations of each country and regionregarding beneﬁts, including minimum wages, overtime, wage
deductions, etc.
⑥ We will comply with the laws and regulations of each country and region
regarding the determination of employees' working hours, including
overtime, and working conditions, including the provision of holidays andannual paid leave.
⑦ We recognize the right of employees to freely associate employee union inaccordance with the laws and regulations of each country and region. And
we engage in honest consultation and dialogue with employee
representatives or employees.
⑧ We will prioritize ensuring the safety and health of employees on the job
and strive to understand and respond appropriately to situations related
to the prevention of industrial accidents and disasters.
⑨ We aim to avoid the use of raw materials that cause social problems suchas human rights violations, including conﬂict minerals.

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Daido Kogyo Group Sustainability Management Action Guidelines (Rev.1.4)
May 7, 2024

⑩ We will not make forced or high-pressure demands regarding existingrights and interests related to environmental assets, including land,forests, water resources, etc.
Chapter 5 Action Guidelines Related to Consideration for the GlobalEnvironment
We stipulate followings as action guidelines to contribute and to reducing theburden on the global environment as part of sustainability management.
① Build an environmental management system based on the laws andregulations of each country and region, and continuously operate andimprove the system.
② We manage greenhouse gas emissions associated with our business activities
and promote reduction activities. We also promote the eﬀective use ofenergy in combination with the introduction of renewable energy.
③ We properly dispose waste in accordance the laws and regulations of eachcountry and region. We also promote eﬀorts to eﬀectively utilize resources,
including recycling, and reduce waste.
④ We shall comply with the laws and regulations of each country and region
regarding the prevention of pollution of air, water, soil, etc., and will strive
conduct continuous monitoring and reduction of pollutants to prevent
environmental pollution.
⑤ We reduce emissions of hazardous substances based on the laws andregulations of each country and region. We also identify and safely manage
substances that may have a serious impact on human health or theenvironment and shall not use prohibited substances on products or inmanufacturing processes.
⑥ We strive to conduct business activities that are considerate not only ofoccupational safety but also of the local environment, including reducing
noise and vibration etc.
⑦ We recognize the signiﬁcance of maintaining biodiversity and animalwelfare.

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Daido Kogyo Group Sustainability Management Action Guidelines (Rev.1.4)
May 7, 2024

Chapter 6 Action Guidelines Related to Risk Management including CrisisManagement
We stipulate followings as action guidelines for practicing risk management as
part of sustainability management.
① In preparation for emergency situations, we develop basic policies andaction plans for emergencies, and consider ways to respond to various
anticipated emergencies.
② To smoothly respond to emergencies, a reporting ﬂow should beestablished in the event of an emergency, a system should be establishedto ensure timely and appropriate information transmission,countermeasures should be promptly considered and decided upon, andinstructions should be issued.
③ To improve crisis management, we evaluate and analyze the performanceof activities after the emergency has subsided and strive to accumulate
response knowledge.
④ We appropriately strengthen information security, including password
management and media management, regarding the use of information
systems associated with corporate activities.
Chapter 7 Action Guidelines Related to Compliance
We stipulate followings as action guidelines for thorough compliance insustainability management.
① We develop and operate policies, systems, reporting systems, andawareness-raising systems to ensure thorough compliance.
② We comply with the competition laws of each country and region and avoid
unfair trade methods such as private monopolies, cartels, bid rigging, abuseof a dominant position, and transactions that result in conﬂicts of interest.
③ To prevent corruption, we will strive to build transparent and fairrelationships with political and administrative authorities regarding political5

Daido Kogyo Group Sustainability Management Action Guidelines (Rev.1.4)
May 7, 2024

contributions and donations in accordance with the laws and regulations ofeach country and region. Furthermore, for the purpose of obtaining ormaintaining unfair proﬁts or preferential treatment, we will not provide orreceive entertainment, gifts, or money that deviates from conventional social
norms to business partners.
④ Personal information of customers, third parties, and our own employees, aswell as conﬁdential information of customers and third parties, shall beobtained through legitimate methods, strictly managed, and properly
handled and use only within the appropriate scope and strive to prevent
leaks.
⑤ We protect the intellectual property rights that we own or belong to ourcompany, and strive to prevent the illegal acquisition, use, and infringementof third-party intellectual property.
⑥ We prohibit insider trading and strive to eradicate it.
⑦ We shall not engage in any acts that may be related to the interests of antisocial forces.
⑧ To ensure thorough security trade control, we implement appropriate
procedures and controls regarding the import and export of technologies
and goods regulated by the laws and regulations of each country and region.
Chapter 8 Action Guidelines Regarding Information Disclosure
We stipulate followings as action guidelines for appropriate information
disclosure as part of sustainability management.
① To properly disclose information to all stakeholders, including customers,
end users of the products and services we provide, suppliers, andshareholders, we will provide necessary information in a timely andappropriate manner in accordance with the laws and regulations of eachcountry and region.
② When disclosing information through websites, social media, etc. on theInternet, we do so with the awareness that the content and impact may
remain permanently, and we appropriately manage the content of disclosure.

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Daido Kogyo Group Sustainability Management Action Guidelines (Rev.1.4)
May 7, 2024

Chapter 9 Deployment to Consolidated Subsidiaries and Suppliers
We stipulate followings as action guidelines to promote the spread ofsustainability management activities globally, including our business partners.
① We disseminate the above-mentioned Sustainability Management Action
Guidelines to domestic and overseas group companies and strive toeducate employees, including executives, while at the same time
investigating and understanding the actual situation at each groupcompany and making improvements as necessary.
② We disseminate the procurement guidelines based on the abovementioned Sustainability Management Action Guidelines to our majordomestic and overseas suppliers, request their approval, and build asystem to investigate and understand the actual situation at each supplierand request implementation of improvements as necessary.

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