Sango th e Envi r o nm e n t al C o m p a n y ,a p r o f e s s io n a l

manufacturing corporation and a vibrant workplace.

Placement of ERP system before the 2025 Digital Cliff
A new p e r so n n e l syste m la u n c h e d i n 2 0 2 2

03 | SANGO Group Report 2023

For details, please refer to page 9.

Product Overview
A Look at Sangoby the Numbers●

Company Profile●

To e n s u r e t h a t w e c o n t i n u e t o b e a “ p r o f e s s i o n a l
manufacturing corporation," it is essential to havetalented people who are willing to take on challenges
w i t h o u t f e a r o f fa i l u r e . T h e m a n u fa c t u r i n g s e c t o r h a s
been conservative in Japan. Sango Group also
followed a seniority-based wage system for a longtime. Since this system does not nurture young
people, we started a new personnel system in 2022.
We h a v e a l s o e s t a b l i s h e d a n o t h e r s y s t e m t h a t a l l o w ssenior members once they reach retirement age tocontinue working with no problems using theirkn o w l e d g e a n d a b i l i ti e s .
Sango Group has established a corporate cultureof teamwork to solve problems through a QC activity
c a l l e d " W AY ² ” . W o r k i n g w i t h a c a r i n g a n d g e n e r o u s
attitude, not only for ourselves but also for othersaround us, is a thought from which we can build atight bond between the company and employees. I
believe this kind of thinking will lead to improvede m p l oye e e n g a g e m e n t.
My hope is that the new personnel system will
create a trend in which employees can identify witht h e d i re c t i o n o f t h e c o m p a ny, ta ke p r i d e i n t h e i r w o r k ,f e e l p e r s o n a l g r o w t h , a n d , m o s t i m p o r t a n t l y, l i k e t h ecompany. And as other employees around them are

Governance(Installation of 2,000 t large presses at Fukuda Plant)

Although demand of exhaust systems is still increasing, iti s i n ev i ta b l e t h a t e l e c t r i fi ca t i o n o f ve h i c l e s i s g o i n g to
become the norm in the future. Honestly, we do not know
yet how much the market will shrink. Under thesecircumstances, we keep taking actions to obtain business inemerging markets, like Africa and Southeast Asia, where
the demand for vehicles with internal combustion engines
is expected to increase.
On the other hand, in regions such as China and Europe,
it is clear that the progress of EVs has intensified. In order
to cover this business area, we are strengthening
automotive body products that will remain even if
electrification accelerates. Since last year, we have madelarge-scale investments, including installing large pressmachines weighing 2,000 tons and constructing new
facilities, a press building and a mold building, at Fukuda
Plant. In Japan, we have already received orders for bodyshell parts, such as dash panels and roof side inners.
In addition to automotive parts, we are developing a
construction piping system called FP35. Utilizing thetechnology that we have cultivated in the automotive andsecondary steel industries, as well as our technology tomake pipes from plates, we will provide unique ferritic
stainless-steel piping systems. We hope to steadily gain
market experience and take the next step.

To c r e at e a v i b ran t w o r kp lac e ,a new p e r s o n ne l sy s t e m i sb e i ng l au nc he d .

Since its founding in 1928, Sango Group has valued thefamily-like bond and teamwork of its employees as it has
worked on automobile parts, such as mufflers and otherexhaust components, as well as press parts. While theautomobile industry is undergoing a period of majorchange, such as EVs and carbon-neutrality, it is necessaryt o r e s p o n d t o c h a n g e s i n s o c i e t y. N ev e r t h e l e s s , I w i l lcontinue to maintain the management style that values not
only the well-being of employees but also the well-being of
their families, as past presidents have.
Under the motto "with an upbeat outlook of joy, vitality,h u m i l i ty, a n d s i n c e r i ty," I i n te n d t o g r o w o u r b u s i n e ss
continuously and steadily, like a tree carving its age rings.
Thank you for extending your continued understanding andsupport toward the Sango Group.

SocialPo i n t●

Revised business port folio in
preparat ion for ac c elerat ing
elec t rificat ion

For details, please refer to page 10.

For details, please refer to pages 5-6.
Environment

Achievin g ca r bo n n e u tra li ty by 2 0 5 0Strengthening the automotive body and press business●For details, please refer to pages 7-8 and 11-12.

s i m i l a r ly i n fl u e n c e d , t h e w h o l e w o r k p l a c e w i l l b e c o m evi b ra n t.

Special Feature

Sango Group, a corporation in business for over 95 years,
is so good at manufacturing automotive exhaust parts thati t i s k n o w n a s " S a n g o t h e M u f fl e r C o m p a n y." We h a v e
responded to society's environmental issues, such as strict
emission standards for CO 2 (carbon dioxide), NOx (nitrogenoxide) and noise pollution, with advanced technologies. In
2017, we formulated the long-term vision "Sango
Environmental Challenge 2050" to contribute to therealization of sustainable societies by creating threevalues: the reduction of environmental burdens throughbusiness activities, the expansion and creation of markets
for products that contribute to the environment, and thepreservation of the natural environment.The CO 2 reduction
target was further revised in 2022, and we aim to achieve a
50% reduction by 2030 and carbon neutrality by 2050. To
reach this goal, each corporate division has set detailed
targets. We are continuously improving environmental
management systems and promoting businesses that areenvironmentally friendly throughout the product life cycle,
f r o m m a t e r i a l p r o c u r e m e n t t o d e s i g n , m a n u fa c t u r i n g ,usage, disposal, and recycling.
Our tree-planting project began in 2006 at ECO35, thec u r r e n t h e a d o f fi c e i n A t s u t a W a r d , N a g o y a . W e h a v eplanted more than 320,000 trees in Japan and overseas,leading to CO 2 absorption and capture. At the ECO35 foresta n d b i o t o p e i n t h e c i t y c e n t e r, w e h o l d ev e n t s f o r t h ecommunity, our employees, and their families, such as
firefly watching. I also participated in the firefly watching
this year and enjoyed it. During my lunch break, I
sometimes take a walk to a shrine forest, also known aschinju-no-mori, near my office. The forest is quiet and cool,and it also absorbs CO 2 . It is a very pleasant place. Our

p r o d u c t s , ex h a u s t s y s t e m s , a r e a l s o e n v i r o n m e n t a l l yfriendly with forest-like functions, for example, silencing,cooling, and purifying the air. We have been contributing tosociety with our environmental products and will continue
to make products to achieve a decarbonized society.

Future Talk

To a c h i ev e ca rbon ne utra li ty *1
t h r o u g h ma nuf a cturi ng a ndt r e e - p l a n t i ng a cti vi ti e s

If companies fail to proceed with DX,*² they will lose theirinternational competitiveness after 2025. The "2025 Digital
Cliff," the issues that Japan will face regarding its aging IT
systems and human resources, is an imminent problem for
us. Since last July, we have established a company-wide
project team to develop ERP,*³ a system that centrally
manages core business processes, such as accounting,procurement, human resources, and sales. This system
improves the accuracy of data analysis and leads to quickb u s i n e s s d e c i s i o n - m a k i n g . To i m p r o v e o p e r a t i o n a le f fi c i e n c y , w e w i l l d e p e r s o n a l i z e a n d s t a n d a r d i z e
o p e ra t i o n s s o t h a t a j o b w i l l b e d o n e i n t h e s a m e w a y
regardless of who does it, and then we will apply this tothe system.
Through the digitalization of production processes andthe use of VR to verify the movement of robots, we will also
accelerate DX in manufacturing and accomplish a smart
factory. But that does not mean that we just need a handfulof IT engineers. It is important for all employees to improvet h e i r I T s k i l l s . Fo r t h i s r e a s o n , a d e t a i l e d e d u c a t i o n a lcurriculum will be provided to employees of different levels.

Top Message

In June 2021, Sango Group announced its Midterm Management Plan 2025 with the aim of transforming to "Sango theEnvironmental Company” by 2050. In 2022, we were affected by the COVID-19 pandemic, semiconductor shortages and theconflict in Ukraine. Despite these events, we were able to recover in 2023. I would like to express my heartfelt gratitude to all
our business partners and employees around the world.
While continuing our contribution to the environment, we will reform the structure of our business in anticipation of aslowdown in our automotive exhaust business, and we will promote digital transformation (DX). Furthermore, we will
introduce a new personnel system to encourage employees to experience satisfaction in their work.

E f f i c i e nt l y p r o p e l DX an d
E RP i n manuf ac t ur i ng

Company Visions

Toward creating a brighter future, we will be

Terminology*1. Carbon neutrality
Reducing emissions of greenhouse gases, such as CO 2 , andabsorbing the amount that was emitted to reach net zero*2. DX (Digital Transformation)
Transforming organizations and companies’ business models
a n d d r i v i n g o p e ra t i o n a l r e fo r m s b y u s i n g d a t a a n d d i g i t a ltechnologies*3. ERP (Enterprise Resources Planning)
A system for integrating core operations, such as accounting,human resources, production, purchasing, and sales, toimprove efficiency and centralize information and data

SANGO Group Report 2023 | 04ESG Social

Hierarchy level

Programs for each level (group and online training)

Generalemployees

・Developing problem solving (basic)

・Workmanship Training Course

・Introduction to TPS・Introduction to QC

・New employee training

・How to make work arrangements

・Basics in logical thinking and expressions

・Business manners

New employees

Initiatives for Workplace Dialogue

S tate o f s afe ty t rai n i n g

Sa fety t ra i n i n g

Support Employees' Mental and Physical Health

Improving the Manufacturing
Site by Using Data
Since 2018, we have solved workers' problems using data,such as collecting data on production facilities andrecording videos to analyze the factors that cause frequent
shutdowns, and we map and monitor the status ofproduction lines, mainly at the Fukuta Plant.
Since 2022, we have been using AI to analyze themovements of workers to prevent injuries. From theresults of the analysis, we implemented tools and systems
t h at e n a ble wor ke r s to h a n dle obje c t s u s in g n a tu ra l
movements. In addition, we
have introduced simple
mechanical devices (karakuri ) tosolve problems at low cost. From
now on, we will focus primarilyon the digitalization of the
production status management
board and the visualization of
production lines to promote
the improvement of work
styles in accordance with thetrends of the times.

A I a na lysis o f wo r ke r s’ move me n t s

Since 2020, under the Sango Health Declaration, which states that a healthy mind and body are the origin of everything, we havebeen pursuing health management activities. In order to support the mental and physical health of our employees on a daily
basis, we have nurses stationed at each plant. We also promote in-house walking, diet improvements, and proper dental care.
In FY2022, we started new activities to support our workplaces, such as analyzing the results of a group stress check analysis
and holding interviews with group members to provide time to think about the work environment.
In recognition of our continued efforts, we were certified as a
Health & Productivity Management Outstanding Organization in
HealthHealthcounseling2023. Going forward, we will continue to promote the health ofpeopleconsultants
sites (Industrial
officesCounselor 1 person)
individuals and our workplaces and will take on the challenge ofimproving our corporate value from a health perspective.

6

Assisting Customers Recoveringfrom Natural Disasters
Companies are required to fulfill their social responsibilities tosupply products. In times of emergencies, we support ourcustomers with our technology and production capacities. In April
2022, flooding around the eastern South African city of Durban
affected Toyota South Africa Motors (Pty), Ltd. (TSAM). In
response to the request from our customer, Sango sent fiveengineers to the site in two teams for about three months to assist
the restoration of 76 facilities on 12 lines.
Furthermore, to support the backup production of parts,
approximately 40,000 parts were
Facilities where
produced and delivered in approximately
we support restoration
efforts
two months by the Komeno Plant inJapan. We will continue to be a company
that customers can trust.

76

8

We Won the "Technology Development
Award" with Long Shaft
As a company whose strength is its integrated production, from materials to
products, we are developing and producing products that satisfy our customers.
In April 2023, we received the Technology Development Award from JTEKTCorporation. The award was granted in recognition of a low cost andhigh-accuracy product achieved through the integrated production of materials
and long shafts that utilize ourcompany’s technology. The fact thateach department within the company
communicated effectively with thecustomer’s design department
and the production technology
department to implement production
preparations within a short delivery
period was also recognized.
Awa rd c erem ony

Product Overview
A Look at Sangoby the Numbers

15 | SANGO Group Report 2023

"crashing with a heavy object," "colliding witha vehicle," "falling," "electric shock," and"contact with heated objects."

Company Profile

Fo c us on 1 -on-1 di a logues*The six items are "pinching/entanglement,"

GovernanceDue to the diversity of people, values, and working styles,
the way we communicate is changing. In our manufacturing
w o rk p laces i n 2 020, w e started a w orkplace dia logu einitiative called “1 on 1.” at our manufacturing workplaces in
2020. In 2022, we implemented to administrative workplaces
the same opportunity for management and subordinates toengage in dialogue, calling it "Mane-talk." The aim is to build
a relationship based on psychological security and tosupport workers’ growth through a combination of coaching
and feedback by supervisors from dialogues.
In 1-on-1 dialogues, an employee chooses conversation
topics, such as business consultations or sometimes
private subjects, and it is a place for the superiors to
discuss and give advice to their subordinates. We aim to
im p r o v e t h e r e l a t i o n s h i p s b e t w e e n s u p e r i o r s a n dsubordinates and enhance satisfaction in workplaces.

Trainees abroad

49

Social・Toyota Production System (TPS)

in the safety survey

Environment

・Leadership・Developing problem solving (application)

Midcareer
selection
training

287

Together with our suppliers, we systematically promote activities toensure the safety of our colleagues and to create comfortable andsafe workplaces by deepening our awareness of safety. In FY2022,
we conducted a survey of 49 suppliers and discussed safety with allof them. In FY2023, we will check safety activities with our supplierson site in order to work toward
the same goal.
Companies participatedSpecial Feature・Midlevel employee training

National Trade Skill Tests

Midlevel
employees

Educational correspondence courses

・Quality control (QC) advisor training

Training for managerial
candidates

Public certifications

・Creative problem solving (application)

・Practice on-the-job training

Education for responding to globalization (language)

・New chiefs training

Compliance・Executive and managerial training

Chief position145

Self-development courses Training for select employees

・Communication

Managers

Number oftraining courses

Since FY2022, we have been conducting safety training using
virtual reality (VR) equipment to achieve the goal of zero disasters.
The training is based on six items* related to fatal accidents, suchas falling from a height or colliding with a vehicle. With the realistic
images in VR, it is now possible to experience dangers that areclose to the actual experience,
which was not possible before.
participants
I n FY 2 0 2 2 , 2 8 7 m a n a g e r s
participated in the program, andin FY2023, it will be implemented
for general workers to raise thesafety awareness of all employees.

Future Talk

Based on one of the pillars of our company’s corporate principles, human resource development, we
provide education covering a wide range of topics, from new and midcareer employees to managers. To
achieve the goal of our new human resources system, which began in FY2023, we have partially reviewed
our training system. Now we implement training based on roles and "selective education" for those whoare motivated and want to learn overseas or outside the company, as well as promoting and supporting
self-directed learning.

Strengthening Safety

Top Message

Safety Training Using VR

Company Visions

Sango Training System

SANGO Group Report 2023 | 16

ESG Social

3

Appropriate management of the aquatic environment

4

Promotion of resource recycling

5

Control of chemical substances*

6

Creation of a society in harmony with nature

7

Managing the products design and development stages

Manufacture

After activities

Assembly
Use of fossil fuels
and electricity

Use(Customer)

93

Each municipality has a certification system for companies
and organizations working on the SDGs. In Sango Group
from 2022 to 2023, registration was completed in Aichi
Prefecture, Miyoshi City, Shimotsuma City, and Inabe City.
Group companies and factories in other regions have also
registered. Through registration, our group's activities arepresented, and its contribution to the region is clearly
indicated on the website, which is expected to improve
corporate recognition.
As part of our internal efforts, we have implemented activities
in which all employees fill out the SDGs Action Statement
sheet to raise the awareness of individuals. We h o p e t h a tt h e s m a l l a c t i o n s t a k e n b y e a c h e m p l o y e e , discussing
the statement at meetings and encouraging its implementation,
will be a major force toward realizing a sustainable society.
We will continue to act for the planet and for the future.

Registration certificate issuance ceremony in Shimotsuma
City in November 2022

Miyoshi City registration certificate■ The SDGs with a high rate of declaration on the SDGs Action
Statement sheet

31%
Members of

41

17%

15 %

Sango
SDGs

departments made declarations

Product Overview
A Look at Sangoby the Numbers

We promote quality activities under the Sango Basic Quality Policyof "Pursuing the Highest Quality." We hold special events every
November during Quality Month. In 2022, we held a Quality
Exhibition for suppliers for the first time in two years at the TPS
Promotion Center in the Toyota Technology Center, and 93 people
participated. Participants learned the importance of following andenforcing basic rules. In addition, participants also visited the
Quality Learning Center, which has the goal of passing down
important quality issues from thepast in order to prevent them fromoccurring again. It was a goodparticipants
opportunity to remind people of theimportance of quality. As for
employees, we held online andsatellite quality exhibitions to raise
quality awareness.

Sango's SDGs

Company Profile

Quality Exhibitions for Suppliers

Quality Learning Center in Sango

17 | SANGO Group Report 2023

Before activities in May 2023 at Miyoshi Plant

Governance

For Sango and its suppliers to solve ESG issues andachieve the SDGs that create a sustainable society,
we have issued the Sango Group Supplier
Sustainability Guidelines. We promote understandingof the guidelines by holding seminars with major
suppliers. These guidelines set policies on humanrights, labor, the environment, compliance, and otherissues. In addition to social issues, we ask our
suppliers to consider environmental issues, such as
water use and biodiversity, and comply with laws andregulations.

Activities by GSC members in June 2023

Transport*The items "2. Reduction of greenhouse gases (GHGs)" and "5. Control of chemical
substances " are the most important as we have presented specific requests.
* "5. Control of chemical substances" is mandatory and is the most important item.

Sango Group Supplier
Sustainability Guidelines

sites

conducted
the activities

SocialReduction of greenhouse gases (GHGs)*

5

Environment2

Our company(Supplier) Transport

Special Feature

Establishment of an environmental management system

N2O

CH4

Future Talk

1

CO 2

Sango Group promotes activities to control exotic organisms, such as Coreopsis lanceolata, in cooperation with local
communities, the government and companies. This activity started in 2016 at the Miyoshi Plant in Sango. In 2022, it was carriedout at the following five sites: Miyoshi plant, Yawatayama Plant, Inabe Plant, Sango Hokkaido and GSC (Guangzhou, China).
Furthermore, with the support of Toyota Motor Corporation and neighboring companies that promote the SDGs, the circle ofactivity has been expanded.
The exotic plants that need to be eliminated are so strong that they can upset the balance of the local ecosystems. We do
this activity to prevent the spread of exotic organisms and protect valuable indigenous species and native ecosystems.

Top Message

Removal of Invasive Alien Species

The growing severity of environmental issues poses new risks for companies. Since 2018, we have issued the "Sango Group
Green Purchasing Guidelines" to promote environmental management with our suppliers, as we actively promote procurementof environmentally friendly parts and materials, and work to
improve environmental conservation.
■ Cons e r v a t i on a ct i v i t i e s ca r r i e dout t hr oug hout t he s up p l y cha i n
In April 2023, we revised Sango Environmental Challenge
2050 to clarify the content and reflect requirements basedon current social trends. We share them with suppliers. We
will continue to implement conservation activities
HFC PFC SF6
throughout the supply chain and promote sustainable
environmental conservation activities.
Greenhouse gases (GHGs)

Requests to our suppliersCompany Visions

Sango Group Green Purchasing Guidelines

Promote understanding of the
Sango Group Code of Conduct
The Sango Group Code of Conduct is a collection of guidelines and points of attention that each of us
should take as a standard and serve as a compass in our daily work and life. We translated the leaflets,
which we distributed in Japan in April 2022, at each oversea business entity, and we handed them out
to local employees. We will continue our activities to promote understanding among all employees of
the Sango Group Code of Conduct.
Leaflets distributed
to all group members

SANGO Group Report 2023 | 18

ESG GovernanceAppoint/
Dismiss

Cooperate

F in a n c i a l A u dit o rs

Audito rs
Repor tExecutive Personnel Plan Committee
Compensation Plan Committee

Board of Directors
Decision-making/Supervising

Discuss/
Appoint/ Report
Dismiss

Audit
Cooperate

Appoint/
Supervise
Repor tExecutive PresidentManagement Meeting
Profit Planning Meeting

Sango Group Audit OfficeDirect/Supervise

Repor tExecution Meeting

Internal Audits

Each Division

Compliance education at domestic group companies■ Compliance Awareness Survey 2022
Do you know how to use
the whistleblowing system?
Yes, I do.

A poster of the whistleblowing system

Whistleblowing system - Consultation Flow

BranchInternal Control Committee

Headquarters

Establish a system to ensure that
employees carry out their work
fairly and justly in compliance withsocietal norms▶Compliance Committee

19 | SANGO Group Report 2023

Risk management
Upon the recognition andevaluation of various risks
surrounding the company,
establish a policy and system forcontrolsWorksuperior

Plant/Dept.
manager

Practice email is sent
VendorWarning image is displayed and log collection

Practice email is sent

Click an attachment
or URL

Plant counselor

Whistleblowing system

Collaborator

Internal contact

External contact

Human Resources and Labor
Section Labor Group*

Governance Group*

Law firm

Disciplinary Council

2022①Target ed at t ack emai l t rai n i n g
Th i s was i m ple m e n te d fo r all e m ploye e s as a c o u n te rm e as u re agai n s t c ybe rattac ks o ri gi n ating from ema ils. We willc o n ti n u e trai n i n g to i n c re as e s e n s i ti vi ty to dan ge ro u s e m ai ls an d preve n t dam age.

Employee
Concerned dept

2020

■ New initiatives from FY2022

An authority that controls work processes

Compliance0(％)

Our group is actively strengthening information security based on the guidelines of the Japan Automobile Manufacturers
Association as a countermeasure against the increasing number of cyberattacks each year.

Internal response
Caller/Consultor

2022

Internal Regulation/Compliance Committee

The target is about 2,100 employees
who have registered email addresses.

Employee
Employee

Product Overview
A Look at Sangoby the Numbers

We have set up an internal whistleblowing and consultation service called thewhistleblowing system for the purpose of preventing, detecting andcorrecting misconduct at an early stage to strengthen our compliance system.
In FY2022, in line with the enforcement of the revised Whistleblower
Protection Act, we revised the company regulations and established an
operational system that contributes to the protection of whistleblowers.

Union response

2020

Strengthening Information Security

Corporate governance
Establish a system to make transparent
and fair decisions in a quick and decisive manner

15

Company Profile

In accordance with its corporate governance system, our company
has established an internal system to promote compliance andrisk management in conformity with the principles of its internal
control system, which is to ensure the appropriateness of business
operations in the organization.

Whistleblowing System

30

24

15
0
(％)

45.9
Governance

30

55.8

60
45

45

The highest decision-making body in the Sango Group is the Board of Directors, which consists of ten directors, including threeexternal directors. It directs and decides on legal issues and critical matters concerning management, as well as serving as asupervisory entity. On the other hand, to ensure fairness and independence, our auditors, including external auditors, supervise
management and audit how directors execute their duties (as of July 2023).

Internal Control Committee

57.7

60

How high is your level ofawareness about compliance?
High

SocialOperating Offi cers

Environment

Committee

Audit

Special Feature

Discuss/Repor t/
ProposeFinancial audit

Appoint/
Dismiss

Repor tFuture Talk

Shareholders Meeting
Repor tBased on the group policy of "promoting
compliance and the creation of an open andenergetic workplace," we are engaged incompliance awareness activities throughoutt h e y e a r. I n FY 2 0 2 2 , i n r e s p o n s e t o t h eresults of the compliance awarenesssurvey, we focused on awareness-raising
activities in the workplace, including
compliance education for all employees ofdomestic group companies and declarations
from department managers to subordinates.
The lack of awareness about how to use
the whistleblowing system, which was
highlighted d u r i n g th e p revi o u s s u r vey i n
2 0 2 0 , wa s addressed by repeatedly making
it known through morning meetings anddistributing l e a fle ts . T h e re s u l ts o f th e
2 0 2 2 s u r vey s h o w e d t h a t e m p l o y e e s 'a w a r e n e s s o f compliance had improved.
We will continue to promote initiatives fromvarious angles to improve the awarenessof compliance among all employees.

Top Message

Compliance Awareness Activities

Sango has established the corporate governance system shown below. This system enables us to make transparent and fair decisions
quickly, taking into consideration all our stakeholders, including our employees, shareholders, customers, suppliers, and local communities.

Appoint/
Dismiss

Company Visions

Corporate Governance System[Sango Group] Targeted email training
for all employees
Information Systems Dept.
Inappropriate access to a suspicious email!

In the case of actual "targeted emails," they are dangerous because of virus infections.
We have sent a practice email to strengthen yourability to respond appropriately to targetedemails.
This is a training exercise, so there is no risk byclicking on attachments or URLs. Note that there
is no need to contact the Information Systems
Dept.
To help ensure the effectiveness of this training,please don't tell the people around you about it.

Collecting logs from displayed warning images②EDR: Enhanced Security with Endpoint Detection and Response
It is now possible to detect the occurrence of a cyberattack and minimize the damage by smoothly responding to the initial
response, in the event of an abnormal occurrence, with the infection containment function.

*The Governance Group conducts fact-finding investigations of legal violations, andthe Labor Group conducts fact-finding investigations of harassment/labor issues, etc.

SANGO Group Report 2023 | 20

ESG Governance
Board of Directors

A s o f J un e 2 9 , 2 0 2 3

Organization chart

C o r p o rate

Sales/Domestic andOverseas Business

Procurement/Quality
Assurance

En g i n e e r i n g

General Planning Dept.

Head of Sales Dept.

Quality Assurance Dept.

Product Planning Dept.

Production Management Dept.

ERP Promotion Sect.

PWT Sales Dept.

Purchasing Dept.

Prototype Dept.

Operations Consulting Dept.

BR Cost Reform Sect.

NBE Sales Dept.

Performance
Experiment Dept.

Equipment Dept.

New ProductDevelopment Dept.

FP35 Business
Promotion Sect.

Po w e r t rai n

Accounting and
Finance Dept.

Overseas and Domestic
Operations Sect.

DivisionD i re c t or
Administration

General Management, Group Audit

Hiromi Sakata

Representative Director &Executive Vice President

General Management, General Planning, Accounting and Finance,
Human Resources General Affairs, Human Resources Development Center,
Purchasing

Akichi Mizuno

Senior Managing Director

Sales/Domestic and Oversea Div., Purchasing

Shuichi Hase

Senior Managing Director

New Product Development, Quality Assurance, Engineering Div.,Powertrain Div.

Kenji Shindo

Senior Managing Director

Engineering Function (Project and Functional Support)

Yoshimitsu Tsunekawa

Senior Managing Director

Safety and Health, Production Div., Manufacturing Div.

Tetsuya Watabe

Director

ERP Promotion, BR Cost Reform, Information System,
Vehicle Body & Precision Steel Products Div.

Fumio Takemura

External Director

Toshio Nakao

External Director

M a n u fa c t u r i n g

Powertrain
Development Dept.

Plant Management Dept.

Systems Dept.

Powertrain No.1 Dept.

Fukuta Plant

Human Resources andGeneral Affairs Dept.

Powertrain No.2 Dept.

Safety and Health Dept.

CV Engineering Dept.

Human Resources
Development Center

Vehicle Body & Precision
Steel Products

Yawatayama No.2 Manufacturing Dept.

Vehicle Body & Precision
Steel Products Development Dept.

Toyohashi Management Dept.

Fukuta Management Dept.
Fukuta No. 1 Manufacturing Dept.
Fukuta No. 2 Manufacturing Dept.
Yawatayama Management Dept.

Yawatayama Plant

Yawatayama No.1 Manufacturing Dept.

Toyohashi Plant

Precision Steel Products& Chassis Development Dept.

Toyohashi Manufacturing Dept.
Miyoshi Management Dept.

Vehicle Body Dept.

Akihiko Nakamura

Secondary Steel Products
No.1 Manufacturing Dept.

Miyoshi Plant

External Director
Stamping Engineering Dept.

Secondary Steel Products
No.2 Manufacturing Dept.
Inaba Management Dept.

Aud i t ors

Komeno Manufacturing Dept.

Production Div.

Operating Off icers

Yasuhiko Koda

Operating Off icers

Eiichi Hayakawa

Hidekatsu Tsuzuki

Manufacturing Div.

Operating Off icers

Hidekatsu Tsuzuki

Operating Off icers

Masayuki Hirako

ASI, ASCI, SAM

Masayuki Hirako

Operating Off icers

21 | SANGO Group Report 2023

Product Overview
A Look at Sangoby the Numbers

Eiichi Hayakawa

Company Profile

Operating Off icers

Takashi Yamada

SAM

Powertrain Div.

ASCIYasuhiko Koda

ASI

Operating Off icers

Hiroki Ando

Procurement/Quality Assurance Div.

Operating Off icers

Yoshihito Yamaguchi

FP35 Business Promotion

Engineering Div.

NBE Sales

Operating Off icers

Koji Kubota

PWT Sales

Kenryu Kodama

Head of Sales

Takashi Yamada

Procurement/Quality Assurance Div.

Vehicle Body & Precision Steel Products Div.

Director

Information System

Tetsuya Watabe

BR Cost Reform

Senior Managing Director

ERP Promotion

Hiroki Ando

Head of Sales, PWT Sales, NBE Sales, FP35 Business Promotion

Manufacturing Div.

Senior Managing Director

Yoshimitsu Tsunekawa

Production Div.

Yoshihito Yamaguchi

Human Resources and General Affairs, Safety and Health, Human Resources Development Center

Safety and HealthSenior Managing Director

Kenji ShindoEngineering Function

Senior Managing Director

Shuichi Hase

Powertrain Div.

Akichi Mizuno(Project and Functional Support)

Koji Kubota

Accounting and Finance, System

Engineering Div.

Hiromi Sakata

Representative Director &Executive President
Representative Director &Executive Vice President

Quality Assurance

Kenryu Kodama

Field in charge of

New Product Development

Name

Sales/Domestic and Oversea Div.

Takashi Tsunekawa

Op e ra t i ng O ff ic e r s

Field in charge of

Post

Administration

Name

Purchasing

External Auditor

Human Resources Development Center

Kazuyuki Iwata

Human Resources General Affairs

External Auditor

Accounting and FinanceKatsushi Taniguchi

General Planning

AuditorGroup Audit

Tachiki Takahashi

Inabe Manufacturing Dept.

General Management

Post

GovernanceInabe Plant

Name

SocialRepresentative Director& Executive President

Environment

Takashi Tsunekawa

Special Feature

Post

P rodu c t i on

Future Talk

Name

Top Message

Sango Group Audit Office

Company Visions

E xe c ut i v e s

SANGO Group Report 2023 | 22

Company Prof ile
Main Products

Sango Co., Ltd.

Representative

President Takashi Tsunekawa

Mufflers

Toyota Motor Corporation

Exhaust pipes

Hino Motors, Ltd.

Exhaust manifolds

Daihatsu Motor Co., Ltd.

Vehicle body products
Head Office

1-3-1 Mutsuno, Atsuta-ku,
Nagoya, Aichi, JAPAN
June 1, 1928

Incorporated

June 1, 1950

CapitalIsuzu Motors, Ltd.
SUBARU Corporation

Drawn pipes

Mazda Motor Corporation

Carbon steel pipes formechanical structures

Toyota Industries Corporation
Toyota Motor East Japan, Inc.
Toyota Auto Body Co., Ltd.

Construction piping system

Toyota Customizing & Development Co., Ltd.

Toyota Tsusho Corporation
Sumitomo Corporation

Consolidated: 8,129｜ Domestic and Overseas Companies｜

Asai Sangyo Co., Ltd.

Mizuho Bank, Ltd.

Metal One Corporation
CANOX Corporation

Began business relationship with Toyota Motor Corporation

Jun. 1950

Incorporated to form Sango Co., Ltd.

Sep. 1950

Established Takakura Plant (formerly Nagoya Plant and now the current
Head Office)Mar. 1954

Began production of muffler and exhaust systems

May 1962

Established the muffler and exhaust system laboratory at Nagoya Plant

Aug. 1967

Established Miyoshi Plant (it specializes in cold finished steel bars)

Nov. 1973

Completed the engineering and technical research center at Toyota Plant

May 1976

Introduced the Toyota Production System in Sango operations

Jan. 1987

Arvin Sango, Inc., a joint venture with Arvin Industries, was founded in
the United States (started overseas operations)

6,000
5,000
4,000

Aug. 1994

Built the Technical Center at Yawatayama Plant

Nov. 2008

Completed the Muffler Museum at Head Office (also known as ECO35)

Jun. 2015

B u i l t t h e 2 n d Te c h n i ca l C e n te r a t S a n g o' s Toyo ta Te c h n i ca l C e n te r
(formerly the Toyota Plant)

May 2016

Built the Guangzhou Sango R&D Center in China

Oct. 2017

Built the ASI Technical Center in the United States

Jun. 2021

Acquired ISO 9001/2015 certification

5,028
4,045

4,019

185-8 Oaza Koishihara, Buzen, Fukuoka,
828-0044
TEL: 0979-84-0735

B Sango Kanto Co., Ltd.

D SE Center

1100-5 Hanya, Shimotsuma, Ibaraki,
304-0005
TEL: 0296-45-0035

Room No. 1606, Shinjuku Mitsui
Building No. 2, 3-2-11 Nishishinjuku,
Shinjuku-ku, Tokyo, 160-0023
TEL: 03-5909-3935
FAX: 03-3347-1135

4,208

Sango Technical ResearchInstituteE17-12 Sakurada-cho, Atsuta-ku, Nagoya, Aichi,
456-0004
TEL: 052-884-3531

F Sango Partners Co., Ltd.

3,000

C

2,000

E

B

1-1 Miyashita, Fukuta-cho, Miyoshi, Aichi,
470-0294
TEL: 0561-34-8301

D

F

1,000
0

2018

2019

2020

2021

❶ Turkey (STI)

2022❹ Indonesia (SID)
PT. Sango Indonesia (IDN)

Sango Turkey, Inc. (TUR)

Secondary steel 7%
processing

Asia andAustralia

China 21%

❷ India (SIAP)

9%

Automobile parts 93%

Sales
composition
by region

Europe and Americas 26%

Xiangyang Sango Automotive Parts
Co., Ltd. (CHN)❸ Thailand (STEM)❼ Tianjin China (TSC)

Sango Thai Engineering& Manufacturing Co.,
Ltd. (THA)

Arvin Sango Canada, Inc. (CAN)❾ USA (f ive plants) (ASI)
Arvin Sango, Inc. (USA)+ R&D Center❿ Mexico (SAM)
Sango Auto Parts Mexico,
S.A. de C.V. (MEX)

Tianjin Sango Automotive Parts
Co., Ltd. (CHN)

❽

Japan

44%

* Results for Sango Co., Ltd. and consolidated subsidiaries for FY 2022

Head Off ice

Guangzhou Sango Automotive Parts
Co., Ltd. (CHN)+ R&D Center❻ Xiangyang China (XSC)

Sango India Automotive Parts
Pvt. Ltd. (IND)

Sales
composition bybusiness field*❺ Guangzhou China (GSC) ❽ Canada (ASCI)For more
information
visit our website

❼

❶
❷

❻
❺
❸
❹

1-3-1 Mutsuno, Atsuta-ku, Nagoya, Aichi,
456-0023, JAPANTEL +81-52-882-0035
FAX +81-52-882-3562
https://sango.jp/en

Product Overview
A Look at Sangoby the Numbers

Began business relationship with Toyoda Automatic Loom Works, Ltd.

Aug. 1937

6,754

41-2 Masago-cho, Tomakomai, Hokkaido,059-1373
TEL: 0144-51-5135

A

Company Profile

Sep. 1934(Billion yen)
7,000

C Sanpuku Co., Ltd.

GovernanceFounded Tsunekawa Ironworks and began the stamping business

A Sango Hokkaido Co., Ltd.

SocialBank of Nagoya, Ltd.

Sales (Consolidated)

23 | SANGO Group Report 2023

2438-1 Kamiaiba, Fujiwara-cho, Inabe, Mie,
511-0502
TEL: 0594-46-8635 (main)
FAX: 0594-46-8636

KYB Co., Ltd.

Sumitomo Mitsui Banking
Corporation

Built the new press building at Fukuta Plant

Komeno Plant

1-1 Fujigaoka, Fujiwara-cho, Inabe, Mie,
511-0508
TEL: 0594-46-5135 (main)
FAX: 0594-46-3560

JTEKT Corporation

Main banks

History

May 2023

Inabe Plant

63 Ikemorida, Miyoshi-cho, Miyoshi, Aichi,
470-0224
TEL: 0561-33-3595 (main)
FAX: 0561-33-3594

AISIN Corporation

MUFG Bank, Ltd.

Including Temporary Employees(Periodic Employees, Etc.)

No. 3 Miyoshi Plant

5-35 Yawatayama, Miyoshi-cho, Miyoshi,
Aichi, 470-0224
TEL: 0561-32-3501 (main)
FAX: 0561-32-0235

Machined/ground steel bar
products*As of March 31, 2023

Jun. 1928

Yawatayama Plant/R&D Center

Non-consolidated: 2,790

Including Temporary Employees(Periodic Employees, Etc.)

3-33 Akemi-cho, Toyohashi, Aichi, 441-8074
TEL: 0532-23-3515 (main)
FAX: 0532-23-3519

Environment

Number of
E m p l o ye e s*

1-1 Miyashita, Fukuta-cho, Miyoshi, Aichi,
470-0294
TEL: 0561-34-0035 (main)
FAX: 0561-34-1240

Mitsubishi Motors Corporation

Other automotive parts
Cold finished steel bars

Non-consolidated gross sales:
304.5 billion yen
Consolidated gross sales:
675.4 billion yen

47 Inokuchi, Miyoshi-cho, Miyoshi, Aichi,
470-0224
TEL: 0561-32-3511 (main)
FAX: 0561-34-0157

Special Feature

Sales*

3-1 Konosu-cho, Toyota, Aichi, 471-0836
TEL: 0565-28-3535 (main)
FAX: 0565-28-4463

Toyohashi Plant

Nissan Motor Co., Ltd.

Door impact beams
Cold forged products

608.81 million yen

Fukuta Plant

Miyoshi Plant

Future Talk

FoundedToyota Technical Center/R&D Center

Top Message

Company Name

Customers (in random order)

Company Visions

Company Overview｜ P lan ts (eight plants in central Japan) ｜❿❾Countries where technicalassistance is provided
to foreign companies
Mexico/Malaysia/Brazil/Indonesia/
Argentina/Taiwan/South Africa/
ThailandSANGO Group Report 2023 | 24

Product Overview
Drive system

Company Visions

Body and chassis

A Look at Sango by the Numbers, FY2022
Environment

Roof side inners

Dash panels

A-pillars

ITCC shafts

Total number oftrees planted

Differential
intermediate shafts-24,204 t-CO 2 , compared to the previous year

Cross members

Door impact beams

Propeller shafts

Reduction gears+8,779 trees, compared to the previous year

*1

+74 t, compared to the previous year

Ratio of female
employees

Employment rate ofpersons withdisabilities

19.3

2.39 %

Door hinges

43.0years old*1

Exhaust systems

Male 23.3 %Female 100 %*2

Average overtime
work hours

100 %Continuously attaining 100% since 2017

Number of educationalcorrespondence courses

267

110

-15 employees, compared to the previous year

Governance
Catalytic converters(spin formed)

Urea SCR systems

Exhaust pipes and mufflers

Directors

Auditors(including 3 external directors)(including 2 external auditors)

Number of Board of
Directors meetings held

Attendance rate at Boardof Directors meetings

Secondary steel products

311Cold finished bars

Non-automotive
products

Carbon steel pipes formechanical structure purposes

Cold finished bars
(drawn)

Sa n g o d eve l o p s n o n-au tomot i vep ro d uc t s by u t i l i z i n g man u fact u ri n g
te c h n o l o g i e s t ha t we h ave cu l t i vated
i n t h e a u to m o t i ve f i el d.

Steel wires for cold heading
and cold extruding (drawn)

Surgical masks:
JIS T 9001 class II

Cold forged products

Construction
piping system FP35

Number of whistleblower
consultations on the Sango Helpline

62 cases/year*1

16 times/year

Number of teams that participatedin the compliance trainings in total

1,534 teams/year

Product Overview
A Look at Sango by the Numbers

145

86 %
Number of employees who haveacquired the National Trade
Skill Test & Certification qualification

Dual mode mufflers(internal valve)23.8 hrs/monthRate of taking paid leave

Company Profile

Heat collectors

Number of training
courses

Rate of returning to work
after maternity leave

Governance

1.5 %Rate of employees taking
childcare leave

SocialRatio of females inmanagement

7.5 %Environment

Average number ofyears at the company

Special Feature

Average age

8,129

Exhaust manifolds

597 t-CO2*1

SocialNumber of
employees

Front floor
reinforcements

320,367*1

Future Talk

95,318 t-CO2

Floor cross members

Total amount of CO2 absorbed andcaptured as a result of planting trees

Top Message

Total amount of
CO2 discharged

98 %Total number of employees who
participated in security training*1

Held every month since 2020

2 ,401 /year+188, compared to the previous year

*1 Results for all the Sango Group (including directly hired temporary and part-time workers (unmarked parts are values for Sango only)*2 Calculated as females in key positions ÷ employees in management × 100

25 | SANGO Group Report 2023

SANGO Group Report 2023 | 26