From Sango the Muffler Company to
Sango the Environmental Company

SANGO Group Report2022

Inquiries
ESG Promotion Section,
Corporate Planning Division,

Sango Co., Ltd.
1-3-1 Mutsuno, Atsuta-ku, Nagoya, Aichi, JAPANTEL: +81-52-882-3593 FAX: +81-52-872-6890

https://www.sango.jp/en

Photo: Path to the biotope at Sango’s Head Off ice

Together with our team members around the world and for the good of
our local communities, we aim to achieve sustainable growth under thebanner of "Sango the Environmental Company".

CONTENTS
Company
Creed

SANGO WAY

(general rules for actions)

Code of Conduct

Since Sango's founding in 1928, the family-like bond and teamwork of our employees has been our
driving force as we engage in the manufacture of such automotive parts as mufflers and exhaust
manifolds, stamped parts, and products of secondary steel processing. I would like to express myheartfelt gratitude for the growing ties that have been created with our customers up to now.
In June of 2021, we announced our Mid-term Management Plan 2025, which lays out a strategy
in consideration of the drastic changes to our business environment, including the growing useof electric vehicles (EVs) and push for carbon neutrality.
F r o m a g l o b a l p e r s p e c t i v e, a s w e s t r i v e t o b u i l d a b u s i n e s s fo u n d a t i o n t h a t e m b ra c e stransparency, not only are we working to enhance ESG (Environment, Social, and Governance)areas, we are also steering our corporate activities towards contributing to the achievement of
the UN’s Sustainable Development Goals (SDGs) with a particular emphasis on 12 of these goals.
We, the Sango Group, aim to make broad contributions to society, respond to the expectationsof our customers and business partners, and earn your esteem.

Kozo Tsunekawa Chairman｜

CSR Policy

Corporate
Principles

Top Message

01

Corporate Policy

02

Long-term Plan 2030

Approach to Achieve a
Sustainable Society

03- 04Mid-term Management Plan 2025

Towards Achievement of
Sustainable Growth
as a Company

05- 06

Fiscal Year Policies

Efforts to Achieve Our
Corporate Vision

Com p a ny Cr e e d｜Three intertwined elements of prosperity
Prosperity for our country,

・Case 1
Commercializing the FP35:
a piping system for thearchitecture industry

07

・Case 2
Sango’s Development:
working towards
electrification

08

Future Talk

for our company and for ourselves.

Long-term environmental vision:

With the current increase in EVs and carbon neutrality movement, as well as various recent changes inmarket conditions and everyday living conditions, we here at the Sango Group are faced with the urgent
task of responding to these changes on an unprecedented scale. In order to respond flexibly to theseenormous changes in our business environment, we are placing at the core of our business, Sango’s
metal forming technology cultivated over long years of experience in the exhaust business, which
incorporates an integrated approach from material processing to part manufacturing, and along with ourexpertise and experience in environmental technology. We will take on initiatives to address the earth’s
environmental issues and create products that will contribute to the world’s environmental needs.
In addition, as we look to achieve the SDGs aimed at realizing a sustainable society, as each
employee takes on these goals, we will promote socially responsible activities and build
harmonious relationships with local communities.
In April 2022, we have established the Code of Conduct, a guideline that includes the respectfor human rights and compliance with laws and rules. By following this guideline, Sango’s
employees will further promote the strengthening of our corporate compliance.
Thus, by changing from “Sango the Muffler Company” to “Sango the Environmental Company”, wewill be in cooperation with not only the automobile industry, but all local communities as well.
Along with our steady contributions to our customers, we will continue both deepening our efforts
for new business projects aimed at the future and the development of new technical innovation.
W i t h h e a r t fe l t s i n c e r i t y, w e a s k fo r ev e n d e e p e r s u p p o r t a n d e n c o u ra g e m e n t f r o m o u r
customers and business partners in our efforts.

Takashi Tsunekawa Executive President

Sango Environmental
Challenge 2050

■ Co r p o rat e Pr i nc i p le sWith a steadfast commitment to the preservation of ourfamily-like bond and teamwork, and the development of ourhuman resources, manufacturing skills, and environmental
policy, we shall persevere in our challenge to create Sango
products that contribute to the global society.

09- 10

Paving the way for Sango’s future11- 12ESG Activity ReportCreation of Sango
products that contributeto the global society
Human
Manufacturing Environmental
Resource
Skill
PolicyDevelopment Development

Family-like bond. Teamwork■ L o n g - t e r m Plan 2 0 3 0・Environment

13- 14・Social15- 20・Governance21- 22Company Prof ile

23- 24

Product Overview

25

A look at Sango by number

26

Opening new paths for the Sango Group with new ideas and decisive action
・A corporate group where its employees and companies take on inspirational challenges to achieve new progress
・A corporate group that offers new value to fields other than automotive, achieving a safe and secureenvironment and way of life

■ M i d - t e r m M an ag e me nt Plan 2 0 2 5
Bas ic s trateg ies⑴Business structure reform

Reform the exhaust business and enhance other business to cover its reduction

Twelve Goals Associated with Sango’s Operation and Activities

Management
policyBasic outline(Enhancements for 2025)⑵Strengthen engineering and R&D capabilities

Invest resources in the strengthen business field and technics⑶Earnings structure reform

Reduce fixed costs, create a proper business and products portfolio⑷Promote manufacturing innovations that ensure safety and quality
Develop manufacturing technics⑸Enhance human resource development and workplace capabilities
Reevaluate the human resource system, improve workplace culture01

SANGO Group Report 2022 02

Sango is addressing the social responsibility in terms of the three pillars of Environment, Social and Governance. In 2021, Sango has identified the linkage of its operation and activities to the 17 global SDGs, then established twelve key themes. We will promote awareness of SDGs
internally at Sango to become a company that can bring about a good future for every employee and make the company essential to society.

To be a company that
contributes to society,is trusted, and grows
sustainably

SANGO WAY
Code of Conduct

Which Sango’s
activities are linked
to SDGs?

Sango SDGs Action Policy

CompanyCreed

CSR Policy

Corporate
Principles

Based on Sango’ s Corporate Principles, we shall consider the earth
and the environment as we aim to be a company in harmony withlocal communities, and through our growth, contribute to the creation of a sustainable society.

Future Talk

Long-term Plan 2030
Mid-term Management Plan 2025

Key Themes

Fiscal Year Policies

Sango
Environmental
Challenge 2050

And now, we have taken aim at spurring an evolution into "Sango the Environmental Company". Linking our business to the international targets, SDGs (Sustainable Development
Goals), we strive to grow into a corporation that will be essential to the world.

・A corporate climate of respect for diversity and social rules
・Responsibility as a manufacturer and consideration of the environment

Twelve Goals Associated with Sango’s Operation and Activities

E

S

G

Environment

SocialGovernanceFundamental
approaches

Environmental challenge

Higher customer satisfaction

Corporate governance

Human-friendly workplace

Participation in local communities

Compliance

Employees

Customers

Local communities. A range of. Striving for mutual. Delivering satisfaction. Actively participating

work-styles toaccommodate diverse
members and theirlifestyles

development throughstrong partnerships
built on trust andfairnessthat goes beyond
customer
expectations throughsafe, high quality
products

in social contribution
activities as a good
corporate citizen andcommunicating withthe local community
through dialog. Development of a safe
work environment
where everyone canwork with peace ofmind. Development of
products that arefriendly to people andthe environment. Promoting
manufacturing that isfriendly to the local
environment

SDGs Broaden our horizons toward international goals

Achieve gender equality

Responsibility for both manufacturing andconsumption

・Ensure gender equality in work responsibilities

・Develop products to meet emissions regulations
・Improve yield rates and productivity to reduce CO 2・Identify Environmental Aspects for ISO14001 and reduce risk

Ensure availability of safe water and sanitation for all■ CSRStands for Corporate
Social Responsibility.

Make cities and human settlements sustainable

・Develop products to meet emissions and noise regulations
・Carry out activities to achieve the Sango Environmental Challenge
・Reduce defects/scrap through quality improvement activities (kaizen)

Pay taxes

Oh, now I know what
each abbreviation/wordmeans?

■ ESG

Refers to Environment, Social, Governance andinitiatives taken in consideration of these standards.

・Process waste water to clean it, manage chemicals, eliminate volatileorganic substances
・Support installation and set standards of processing equipment forplant water/chemical waste
・Re-use coolant for equipment

Ensure access to clean energy for all

・Install low energy consumption production equipment
・Develop products to meet emissions/fuel efficiency regulations
・Promote use of renewable energy

Take specific action to combat climate change

・Provide lighter weight parts, install low-energy use equipment
・Improve productivity to reduce CO 2 emissions
・Roll out our Green Purchasing Guidelines

Protect the abundance of our terrestrial ecosystems

・Continue our tree planting activities
・Carry out activities to remove regulated
non-native species
・Build plants that do not adversely affect the nature■ SDGsSustainable Development Goals are made up of
17 goals and 169 targets. The global targets
adopted by the United Nations is set by the aim
to create a better, more sustainable world byyear 2030.

Rewarding work and economic growth・Promote a safe, reliable work environment
・Promote hiring of people with disabilities

Promote peace and justice for all

・Establish/train everyone in Code of Conduct,raise awareness of legal compliance, provide
internal control system
・Comply with all laws and carry out audits byprofessional

How does Mid-term
management plan
2025 link to SDGs?
*Continue to pages
05-06■ Carbon Neutrality

It means the emissions of greenhouse gases
balanced by absorption and removal are to be
zero. The Government of Japan has declared thatJapan would realize carbon-neutrality by 2050.
Sango had already worked incarbon neutrality as actions tominimalize CO2 in “Sango
Environmental Challenge 2050”.
*Further information on page 11

03

Provide quality education for all

・Provide training by job level and type and for selected members
・Provide basic technical training and expert training
・Pass on skills to next generation through skill tests

Product Overview
A look at Sango

Relationswithstakeholders

Suppliers

Reduce inequality within and among countries

・Promote work opportunities for seniors
・Implement wage rate reviews and revisions regularly

Company Prof ile

Three pillars
supporting
the policy

Business policies
and prof it plans

Ensure healthy lives and promote well-being for all

・Take measures for COVID-19 infection
・Act to prevent traffic accidents to/from work and at work
・Develop products to meet emissions, noise regulations

Governance

To be a company that contributes to society,is trusted, and grows sustainably=SocialCSR Policy

Seeking prof its

Corporate value+

Environment

Sango‘s Corporate Social Responsibility
Solving social problems

Company Visions

Sango Group has established the "Sango Environmental Challenge 2050" in 2017, to
contribute to make a society sustainable through both economic growth and conservation of the
global environment, anticipating the global conditions of 2050. We have worked to minimize
CO 2 emissions. The activity is linked to the current Carbon Neutrality movement with our
initiatives: "Creating environmentally friendly production sites", "Environmentally friendly
products", and "Tree planting". In 2018, not only to pursue profitability, but also to increase
our corporate value, we established our CSR Policy as a company that contribute to theresolution of social issues. Sango's CSR policy is supported by the three pillars of E (Environment), S (Social), and G (Governance). Together with our employees, suppliers, customers, and local communities, we are taking initiatives to achieve a sustainable society.

Sustainable Development Goals (SDGs) taken up by Sango

Top Message

Approach to Achieve a
Sustainable Society

This comprehensive paper is edited to present how the Sango Group takes actions toward achievement of SDGs and carbon
neutrality through its operation and employees’ daily activities, in addition to show CSR initiatives based on ESG pillars. We
will continue our effort to provide corporate information and show our posture towards social issues to our stakeholders
both accurate and clearly, so that they shall sympathize with our visions and actions.

SANGO Group Report 2022 04

Top Message

Towards Achievement of Sustainable Growth as a Company
To plan sustainable growth for our company and to face social issues such as the achievement of carbon neutrality, we are aiming totransform the company to "Sango the Environmental Company" from previously known "Sango the Muffler Company" by year 2050.

o the ntal
g
n
a
S
onme
r
i
v
n
E
a ny
Comp

In June 2021, Sango spelled out its vision for year 2050. We plan to further hone our environmental technology, exemplified by our expertise in the manufacture of such exhaust system components as catalytic converters, heat collectors and others. Also, we will strengthen
the manufacturing skills that we have gained through long years of experience in metal forming and processing to take on the challengeof new fields, including electric vehicles (EVs). Through our corporate activities, we will strive to not only contribute to the achievement ofcarbon neutrality and SDGs, but also execute the evolution of Sango into a people-oriented and attractive company. We will take up initiatives that will result to be "Sango the Environmental Company".

02 Be a company capable of sustainable economic activity

2021(Once in a century
transformation)

Company reform of theprof it structure

Introductionof the SDGs

What are the concrete
approaches? *Continue
to pages 07-08

Utilizing manufacturing skills Sango has gained
through long years of experi ence into the development ofenvironmentally conscious products
05

Product Overview
A look at Sango

CSR

Read page 04
for details

Company Prof ile

SDGs,

Utilization of corecompetencies todevelop business

Fusion of environmental
business and technology

Governance(Decrease in gasoline
engine vehicles)

CASE

the social
needs

Sango s(Sale of gasoline engine
vehicles prohibited)Social

l
Globa
s
d
n
e
tr

Acceleration ofElectrif ication

EV Shift(Net zero CO 2 emissions)Contribution to asustainable societyoS a n g u f fl e rM
the any
Comp

2025

2030

Environment

a company where it is rewarding
03 Be
to work (that inspires smiles)

Carbon Neutral
Society

Sango
Environmental
Challenge 2050

a company essential to society
01 Be
by using our manufacturing skill

Future Talk

2050

Our Target Company Image

Company Visions

From "Sango the Muffler Company" to "Sango the Environmental Company"

Company image aimed with Sango
Environmental Challenge 2050
To be “Sango the Environmental Company”, we will aim todevelop environmentally conscious products, including pureemission products for Internal Combustion Engine vehicles aswell as keeping in view zero emissions products for Electricand Fuel Cell vehicle.

SANGO Group Report 2022 06

Top Message

Efforts to Achieve Our Corporate Vision
Commercializing the FP35:
a piping system
for the architecture industry

Case 1

Sango’s Development:

Products Being Developed

working towards
electrification

Case 2Motor shafts

Reduction gears

In October 2020, the Japanese government
declared the Carbon Neutrality to reduce greenhouse gas emissions to net zero by 2050. Thisdeclaration has had an impact on an automotive
industry that is currently undergoing drastic
market changes including car electrification.

As the move toward car electrification continues, some new units will be needed, and others
will no longer be needed at the same time. For
example, a motor and battery are needed to
power a vehicle with a motor, but an FC stack
and a hydrogen tank are also needed for a fuelcell powered electric vehicle. In addition, withelectric motors, improved electric economy is
the key concept rather than fuel economy.

Value Creation

Electrified
vehicleGasoline

EngineFuel tankHybridEngine + Motor

Fuel tank + Battery

PHV

Engine + Motor

Fuel tank + Battery

BEV

Motor

Battery

FCEV

Motor

FC stack + Hydrogen tank

Examples of Sango’s Initiatives

We are advancing product development on all units needed for electrification.
Unit

Components

Application of existing technology
Wire rod heat treatment

Development ofmotor shafts

Motor

Pipe plating
Cold forging
Thin plate precision press

FC frame development

Thick plate press and joining technology

3

Development at Sango Group is focused on motor shafts and motor
cores. It is not limited by the type of electricity storage nor generation method. Though cars may fly in the future, we believe that if noalternatives to motors emerge, motor shafts and motor cores willcontinue to be in demand. To improve electric economy, we areaiming for lighter weight and higher performance for the next generation of motor units with long shafts made of seam-welded pipeusing our plastic pipe forming technics and differential thickness
drawn shafts made with our secondary processing and cold forging
technologies. Another goal is to contribute to carbon neutrality bypromoting LCA 1 . We aim to develop manufacturing methods withhigh material yield and reduce annealing 2 (or annealing-free)through innovations in plastic forming and collaboration with steel
manufacturers. It is good for the environment not only with electric
end products but also with the production site where the parts are
manufactured by taking eco-friendliness into account.
1. LCA ‒ Life Cycle Assessment. A concept that quantitatively expresses and evaluates theenvironmental impact of all processes, from the extraction of raw materials necessary for a
product to the use and disposal of the product.
2. Annealing ‒ The annealing is a heat treatment process that conditions and softens the
structure of the iron material prior to plastic working, to make it easier to process.

Strength

1

Strength2

Strength3

Sango Strengths

Sango's pipe processing
technology developed in theautomotive exhaust f ield

Strength1

Improved service life andreduced CO 2 emissions using
ferritic stainless steel

Strength2

Labor saving at construction
sites (-70% compared to thecurrent) through prefabrication of units that can beassembled on-siteStrength3

Development Team: Technical Strategy Section, Engineering Dept.

07

3. Sango also develops FC
frames *Continue to page 13

From raw materials to finishedproducts, product developmentwith unified production system

Product Overview
A look at Sango

Sango Strengths

Company Prof ile

FC stack

Development of motor cores

Value Creation

GovernanceThe development faced some difficulties due to a lack of know-how
in the field. However, the team members’ persistent efforts have
paid off. We at Sango make every effort in response to market
demands by making the most use of our manufacturing capabilities.
All of this aims at our customer satisfaction.

Unit

Drive motors

SocialThe development is carried out with Shin Nippon Air Technologies
Co., Ltd., a company engaged in construction and maintenance work,
launching a joint press release in September 2021. Now, we are in
the process of establishing a supply system as we build a trackrecord in small-scale projects by tackling the issues on our way.

VehicleMotor shafts

Environment

Sango has started commercializing initiatives besides the automotive related. Through our ferritic stainless-steel pipes, integration ofpipes and mechanical joints, and full-prefabrication pipe systems
above all else, we propose solutions to such issues as the constructor worker shortage by reducing construction labor and extending
the service life of buildings themselves.

Changes in Automotive Drive Units
for Electrification

Motor cores

Sango
Environmental
Challenge 2050

Current Trends and Needs

Transaxles forhybrid vehicles

Future Talk

Current Trends and Needs

At the same time, one of the challenges in thearchitecture industry is the shortage of workers
due to an aging workforce.

Motor coresCompany Visions

Generator motors

Give proposals on weight
reduction and performancethrough plastic pipe forming
and cold forging technologies
Manufacturing process achieving a high material yield andannealing-free production
Development Team: Precision Steel Products & Chassis Development Section,
Vehicle Body & Precision Steel Products Development Dept.

SANGO Group Report 2022 08

TAMAMURAYAMAGUCHISAKATABANNOSAKATA

KONDO

My assessment of the Future Creation Project
proposal is that it’s not quite there yet. (laughs) For
m e , t h a t’ s b e c a u s e t h e r e a r e a l r e a d y s i m i l a rtechnologies, and the idea isn’t radical enough for2050. But I do think that for the participants, just being
able to raise their hand to take challenges and of itself
has the power to change the future of the company. I’msure their experience will prove useful in the future.

B A N N O

How does Sango plan to address the SDGs?

SAKATAThe SDGs, in simple terms, are about being kind tosociety and the planet. There are 17 goals set out thatare subdivided into smaller targets, so that they can bel i n k e d t o s p e c i fi c a c t i o n s . I n o r d e r t o e n c o u ra g e
employees to make it their own issue, we havepresented a clear statement of which goals Sango will
focus on as a company and which goals factor into eachdepartment’s priority policies.

At Sango we’ve been contributing to the environmentt h r o u g h ex h a u s t g a s p u r i fi c a t i o n w i t h o u r m a i n
product, mufflers. However, mufflers will no longer
be necessary for battery electric vehicles (EV). That’s
w h y I w a n t t o k n o w w h a t fi e l d s w i l l m a k e u p t h epillars of our business going forward.

YAMAGUCHI

Of course, developing new eco-friendly products isimportant. But I’m also interested in how to makeenvironmental considerations in the manufacturing
process since I work in the production department.

SAKATA

Sango has always been an environmentally conscious
company and has been involved in various environmental
initiatives even before SDGs and carbon neutrality cameto the forefront. Right now, we’re working to minimize
CO 2 emissions and with other efforts in five key areas:
life cycle from material procurement to design andmanufacturing, product performance, emissions fromproduction activities, tree planting and biotope activities,
and environmental management systems.

From time to time, I’d like employees to check on the
direction the world and the company are heading inand relate that to their work. I think it’s important tounderstand where you stand in the present moment,
then work toward moving into the future.

YAMAGUCHI

I took childcare leave myself when my third childwas born. I received considerable help from mysupervisor, subordinates, and colleagues. I think
it would be great to have a system where work is
re g u l a r ly s h a re d a c ro ss d e p a r t m e n t s s o t h a twhen someone takes childcare leave, they can
ask other departments to come and support
them. I’m sure that a flexible organization likethat would be better able to respond to changes
in society.

TAMAMURA

I want to challenge myself in an active way andaccomplish what I set out to do. I want to contributeto the development of new business for the company
and if I can achieve that, I can grow as well.

B A N N O

First, I want to get more efficient at the things I do
every day. If I’m overwhelmed by daily work, I won’t
have the time to take on new challenges. So, I’d liketo start by getting better bit by bit at things I do often.

K O N D O

Right now, I’m raising a child which is a challenge
itself, so I can only take on added challenges thatare within my means. I want to come up with new
ways to do things and to look at things fromdifferent perspectives so that my work doesn’t get
stale. I want to always keep a positive attitude.

YAMAGUCHI

I’d like to master the Toyota Production System.
Particularly, I want to make more use of digitaltechnology to shorten lead times.

SAKATA

Personally, I’d like to change the entire businessso that the future Sango can survive. I also wantto create a company’s atmosphere where
employees have intrinsic motivation. The era ofsteady growth is over, so both the company andindividuals must respond to that change.
The important thing for us is to become a company
needed by society. That’s the same for individual
people, too. Everyone has to raise their personalvalue to their company and to society. I know that allof you will eventually become leaders. I hope that as
you do that you remain being excellent people aswell. To do that, I’d like you to broaden the scope ofyour activities to include hobbies and community
involvement, and I hope you will place importance on
getting directly involved with many kinds of people.

Product Overview
A look at SangoYAMAGUCHI

Recently, more and more men are taking childcare
leave, even at Sango. I would like to see the company
create an atmosphere where people feel free to takechildcare leave without worrying about what others
think. I believe that such a work environment will
make it easier for women to work in the future, too.

What challenges do you want to take on?

Company Prof ile

TAMAMURA

What comes to my mind with the word "environment"in Sango is our tree-plating activity, that is trying toplant 350,000 trees, a monumental number of trees.
The project aims to create a forest resilient toenvironmental changes by growing seedlings fromlocally collected seeds. I’ve been really impressed by
how serious the project is.

K O N D O

We will be making major changes to ourpersonnel system so that people who take on
added challenges will be valued. Our company
has to change in step with the times.

GovernanceB A N N O

In the Mid-Term Management Plan 2025 there is thetagline of “Sango the Environmental Company,” butwhat does this mean, and in what areas are efforts
being made toward this?

It’s no longer possible for a company to grow simply
by performing the task at hand. If things go on as they
are today, Sango will tumble-down. We must change.
The first step to changing Sango is for many of ouremployees to have a proper sense of crisis like this.

SAKATA

SocialK O N D O

SAKATAAt Sango we have an atmosphere where people
who raise their hand to volunteer for something
end up having a hard time. If we could change it,so that people who take on new challenges in
addition to their regular duties could receive
added support from people around them, I thinkthat Sango’s future could be more vibrant.

Environment

The “Sango the Environmental Company” tag came fromour previously widespread image of “Sango the Muffler
Company.” When electrification and carbon neutrality
tendency grew among society, it looked unfavorable toour exhaust business. Yet, we’ve seen it as a business
opportunity, to develop environmental technology andmanufacturing skills, challenging ourselves to branch
into the EV field and other new fields with environmentaltech as the key. “Sango the Environmental Company”
represents our strong will to contribute to society andthe community through the environmental business.

What exactly does “Sango theEnvironmental Company” mean?

Before, we worked on digitizing the company rules
and regulations. It was a major challenge. To
digitize huge volumes of articles that all employees
read on paper previously, we had to coordinate
with other departments. It was a struggle. But we
got more positive feedback than we thought wewould. The feeling we got from doing it is the kindof thing that gives us motivation to make changes.

TAMAMURA

Sango
Environmental
Challenge 2050

How can we change Sango?

We should also review the system to make it easier totake childcare leave and other kinds of leave, as well.
It’s also important to build strong relationships withpeople around us as we work. As a company, we want
to change our personnel system and work style toreflect the needs of our employees.

Future Talk

T h i s g ro u p o f yo u n g e m p l oye e s f ro m va r i o u s d e p a r t m e n t s a n d a n
executive had an open, passionate talk about what kind of company
Sango should become and how to make their work more exciting.

After about six months of discussions and many
twists and turns, as one potential business modelfor 2050 we ended up proposing a service thatsenses peoples’ five senses and links that withm e d i c a l c a r e a n d c o m fo r t a b l e s l e e p. We a l s ocreated a roadmap of what we would do by when.

SAKATA

Company
Visions

Paving t he w a y f o r Sa n go’s f u tu r eLast year, I participated in the Future Creation Project
which was a project to draw up a Sango’s businessmodel for 2050. To participate, the conditions werethat we should not be bound by the current Sango,
and that we should treat it as if it would affect us. The
company sent out a call for people aged 25-35, andseven people, including myself, were selected.

Top Message

TAMAMURA

From Sango the Muffler Company to Sango the Environmental Company

Future Ta l k

Changing myself
Changing the company

By taking on these challenges,
what will change?
Director

YAMAGUCHIIn terms of challenges, I’m concerned that employee
training is now standardized. Even if basic programs suchas safety are mandatory for all employees, it would benice if we could draw our own career plans and choose
individual training areas accordingly.

SAKATA Hiromi
Responsible for all corporate
affairs. Enjoys fishing, watchingm o v i e s , p l a y i n g t h e p i a n o, a n dmany other hobbies.

Cost Planning Group 2,
Cost Planning Dept.

Receiving & Dispatching Section,
Toyohashi Manufacturing Dept.

Consolidated Accounting Group,
Accounting and Finance Dept.

Development Group 2,
Technical Strategy Section

KONDO KayoYAMAGUCHI Koji

BANNO Fumiya

TAMAMURA Atsuhiro

Has been with the company fornine years. Working hard to raise a
2-year-old boy while working full time.

Father of three children, 15 years
with the company. Runs marathons
as a hobby.

S a n g o e m p l o y e e f o r fi v e y e a r s .
Has recently gotten into collecting
stamps from shrines.

Has been with the company for five
years. Korean food is his recent
craze.

* M as ks w e re re move d to take p h o to s . T h e t i t l e an d d e p ar t me n t l i s te d fo r e ac h e mp l oye e was c u r re n t at t h e t i me o f t h i s i n te r v iew.

09

SANGO Group Report 2022 10

“Sango Environmental Challenge 2050”
CO 2

Environmentally responsible
production sites

Plan

Check

Do

Waste
TargetOverburdenISO14001

Development and design of high added value
products that contribute to customers'
environmental values→ Contribute to CO 2 reduction by improving
fuel efficiency

2
Minimization of
new vehicle
CO2 emissions

・Utilization of exhaust heat・Weight reduction

3

Minimization of
production activity
emissions (CO2, waste)

minimization of
production activity
emissions (CO2,waste)

Reduce emissions andwaste from production
activities throughinnovations in
manufacturingmethods

Total CO 2 emissions
t-CO2

35% reduction

50% reduction

Created a mid- to long-term plan for Sango Group and commenced operations

2013

2030

2013

Emission

2030

4. Challenge forcreation of asociety in harmony
with the nature

Preserve biodiversity
and protection of our
natural environment torealize a society where
humans and nature
co-exist in harmony

Absorptionmeans and to increase absorption of CO 2 by tree plantings. We aim to accomplish carbon neutrality
by 2050.
In 2021, we have acknowledged the needs to further enforce the activities through revisions of ourtargets and initiatives of the 1st Environmental Action Plan, as well as their progress. We will discussthem again to establish the 2nd Environmental Action Plan in 2022.

*Carbon neutrality is to reduce the emissions of greenhouse gases, such as CO 2 , and absorb the amount that was emitted to reach net zero.

Reduction of environmental
burdens through businessactivities

Sango Environmental Challenge 2050 includes activities to minimize CO 2 emissions by every possible

5. Challenge forestablishment of anenvironmental
management system

Build a consolidated
environmental
management system,
manage environmental
risk, and carry out
prevention andcontinuous kaizen(strengthen operations
and management)
Action

Plan

Check

Do

Product developmentfor next-generation
vehiclesOf the items under consideration, one item has theprospect of transitioning to project implementation.

Development ofinnovative low CO 2
emission production
technology

CO 2 reduction achieved byincreased productivity:
Ex. Body shell -43%
CO 2 reduction achieved by using
multi-cavity mold in press products
Ex. Body shell -50%

Development for low
waste production
technologies

Waste reduction by improvementon coating rate in paint line
Ex. Exhaust pipe -79%
Waste reduction by applying supersonic cleaning
Ex. Battery clamp -33%

Reduction of CO2 emissions
in daily production activities(current mass productionlines and infrastructure)

Electricity -109Mwh
A new gas line to monitor amount of gas used
Renewal of 8 equipment

Promotion of the use ofrenewable energy

Implementation in FY2022 is under consideration

Reduction of waste indaily production
activities

Began a full-scale trial of purifying system(from Feb. 2021)

Reduction of water
consumption and waste
in the production
process

Conducted investigation of leakage, 3 times
Set an aim on introduction of the system to reusepurified water

Management andreduction ofenvironmentallyhazardous substances

Zero use of prohibited substances

Forest creation
activities aimed atincreasing the amountof CO 2 absorbed /sequestered*

Total number of trees planted: 311,558
Total amount of CO 2 absorbed/sequestrated: 523t

*Amount of CO2 absorbed /sequesteredis a value calculated by the company's
calculation formula, which corresponds
to CO2 absorbed by planting trees

Conservation of thenatural environment
through the developmentof a biotope within thecompany premises

Created 4 biotopes in head office, Yawatayama plant,
Miyoshi plant and STEM (Thailand) to link with sites
and ecosystem nearby to spread and protect
habitats.

Compliance with theenvironmental laws ofdifferent countries andregions and implementationof activities to prevent
environmental accidents

Implemented a periodic check (twice a year) on thestatus of compliance with environmental laws, tocorrect or prevent illegality.

Proactive disclosure ofenvironmental
information andenhancement ofcommunication

CDP Supply-chain Program result“Rank B” for Climate Change and Water category
Held the Environmental Exposition to spread theknowledge among employees

Product Overview
A look at Sango

Reduce discharge (CO2, waste, chemical substances, water, etc.)
in all business activities

Total wastet

Promoting projects to achieve each development
target (out of 7 development projects, 5 have met
target and 2 in suspension. We will use theknowledge for the future development.)

Company Prof ile

Consolidated management by Sango Group(from September 2019)

By promoting the Sango Environmental Challenge 2050 activities,
we aim to accomplish carbon neutrality.

11

3. Challenge for

Exhaust heat recovery device

Preservation of thenatural environment

Reduce emissions and waste fromproduction activities throughinnovations in manufacturingmethods

2 nd Challenge

Product developmentthat contributes totop-class fuel efficiency

GovernanceIn 2028,
350 thousand trees

3 rd Challenge

Five Challenges

Creation of a society
in harmony with
the nature［Number of trees planted］

Currently
310 thousand trees

4

Promote a business that isenvironmentally friendly
throughout their life cycle, frommaterial procurement todesign, manufacturing, usage,
disposal, and recycling.

Minimization of life
cycle CO 2 emissions

Sango
Environmental
Challenge
2050

Develop and design
high value-added
products that contributeto customers'
environmental values

Achieved 1 external environmental award

Social・Tree planting activities
・Biotope development activities
・Elimination of invasive species

Establishmentof anenvironmental
management
systemminimization of
new vehicle CO2
emissions

1 st Challenge

15

2. Challenge for

Promote a business that is environmentally friendly
throughout their life cycle, from material
procurement to design, manufacturing, usage,
disposal, and recycling

Environment

4 th Challenge
Preservation of biodiversity and protection of
our natural environment to realize a society
where humans and nature co-exist in harmony

Tree planting

Contributing to the sustainability ofsociety and customers

Unevenness

ActionEnvironmentallyfriendly products

Reduction of environmental burdens through business activities

Creation of an environmental management
system, control of environment risks, and theprevention of contamination in conjunction
w i t h c o n t i n u o u s i m p rove m e n t (e n h a n c e doperations and management).

Preservation of thenatural environment

minimization of life
cycle CO2 emissions

Sango Environmental Challenge 2050

5 th Challenge

CO 2Expansion and creation ofmarkets for products that contributeto the environment

1. Challenge towards the

Results for FY 2021, summary

Future Talk

Reduction of environmental
burdens throughbusiness activities

Initiative items forbusiness risks andopportunities

Five challenges for the"2050 Environmental Vision"Company
Visions

CO 2

Category
Expansion and creation ofmarkets for products that contributeto the environment

Sango Group has established a long-term environmental vision called “Sango Environmental Challenge 2050” in 2017. Towards
a better global environment in 2050, Sango Group will strive for a balance in economic growth and conservation of the environment. For the realization of a sustainable society, the Sango Group will work on five challenges to create three values.

■ Sango Group Targets in 2022: The 1st Environmental Action Plan (Mid- to Long-Term Environmental Action Plan), in summary

Top Message

Long-term environmental vision:

SANGO Group Report 2022 12

Top Message

Sango Environmental Challenge 2050
Environmental Product Development Subcommittee Activities Challenges 1 & 3

FC Stack Frame Development

Contributing to Carbon Neutrality through Power-saving Activities and Air Leakage Prevention
Sango as well, so we must work toward the lofty goal of virtually zero CO 2 emissions by 2050.

value. Our newly developed product is a skeletal frame (commonly known as aThis is why Sango is working to eliminate waste as an overall way to reduce energy consumption.

stack frame) for fuel cell (FC) generators that uses hydrogen as its energy

In particular, we are promoting (1) power-saving activities (turning off power when not in opera-

source. Sets of the main components used for the fuel cell stack of the newtion) and (2) air leakage prevention activities (improving air compressor efficiency).

model Toyota MIRAI are sold for applications for commercial vehicles, railroads,

In FY2021, employee efforts to turn off power resulted in a 5% reduction in CO 2 emissions and aships, stationary systems, etc.

The use of an acoustic camera allows
air leak detection in hard-to-find spots
like high places, etc.

Air leak
Sango
Environmental
Challenge 2050

The Carbon Neutrality declared by the Japanese government in October 2020 of course applies tohigh value-added products that contribute to our customers’ environmental

5% reduction in CO 2 emissions in air compressors use.

Hydrogen is expected to be utilized in the future as a carbon neutral energy

V O IC E

source that with zero CO 2 emission. We will promote the development of new
FC stack framehydrogen technologies and create products that help reduce CO 2 emissions.

Technical Strategy Section
We guarantee the precision and accuracy of each frame by carefully manufacturing each unit with corrective
processes for part installation, welding
distortion relieving, and fitting.

throughout the entire supply chain including materials and transportation. We are aiming to do soby incorporating items intended to reduce environmental load into our new production facilities.

1000

Zero waste
liquidand sludge

exceeded 310,000.

300

Not only are trees planted on our company premises,200

but in some areas, trees are planted in cooperation with

100
02007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

planting activities with the goal of increasing thePower transmission shaft(top: material, bottom: finished product)V O IC E
YAMADA Takahiro (left) and SONE Yoji (right)
Precision Steel Engineering Section

We will continue to minimize emissions (CO 2 waste)from production activities to reduce our environmental impact.

amount of greenery on the earth, thereby contributing tobiodiversity and CO 2 reduction.
Tree-planting activity at ECO35(current Sango Head Office) in 2006

Current planting site from a birds-eye view

Product Overview
A look at Sango

Sludge400

Company Prof ile

Waste liquid

2000

500

seedlings. In 2021, the total number of trees planted

in curbing global warming. Sango will continue tree

sions during transportation and production, as well as sludge or waste materials, and waste liquid,

Waste matter volume reduction (kg/year)

area to suit each condition. Every year, employees plant

523t-CO 2 /year

absorb and fix carbon dioxide (CO 2 ), which plays a partone-component lubrication process at our own plant. As a result, we were able to reduce CO 2 emisthereby contributing to the reduction of environmental impact throughout the supply chain.

600

c o m p a ny a s w e l l . B y c re a t i n g fo re s t s , t h e n ew t re e sversion coating called bonderizing which was applied at a plant outside our prefecture, to a simple

Nature Coexistence Subcommittee Activities Challenges 1 & 4

Biotope Award: Association Chairman’s Special Award Received
ECO35's biotope received the Association Chairman's Special Award at the 12-13th Biotope Awards
sponsored by the Japan Biotope Association. Based on the concept of restoring a rich natural landscape of forests, ponds, and rice fields in the heart of the city, our biotope was highly praised for creating and preserving a habitat for rare and endangered species in Aichi prefecture like the lightning bug,

0
Now

3.33

culture of tree planting is now spreading outside thedrivetrains. We changed the pre-cold forging lubrication process, going from using a chemical con-Previous

Leakage volume (L/min)Cumulative CO2 absorption/fixing by reforestation activities (t-CO2/year)

locations in each region, we plant trees native to thel o ca l g o v e r n m e n t s a n d i n d u s t r i a l p a r ks , s o t h a t t h e

One example of our efforts in FY2021 is how we manufactured power transmission shafts for car

0Compressed air

Governanceemissions made by our own plants through regular operation, but also CO 2 emissions and waste

75%

Leaked gas

in Japan and overseas since 2006. At our own plants and

The Environment Innovative Production Methods Subcommittee is working to reduce not only CO 2

reduction

March 19, 2022

SocialThe Sango Group has carried out tree planting activities

Efforts to Reduce Environmental Impact through Entire Supply Chain

100

Date

310,000 Trees Planted as Part of the Sango Tree Planting Activities

Environment Innovative Production Methods Subcommittee Activities Challenges 1 & 3

Duringtransportation
Duringproduction

Measurement data

Nature Coexistence Subcommittee Activities Challenges 1 & 4
Working on development

200

Plant Management Dept.

Further energy savings can be achieved by turning off the power to hydraulic pumps
and conveyors during breaks and to blowers and exhaust fans that aren’t being used.
We will continue to have all employees participate in taking action to eliminate wastewith the goal of achieving carbon neutrality.

NAKANO Hidenori (left) and
KATO Koji (right)

CO 2 emission reduction (ton/year)

DOZAKI Toru PE CN Promotion Group, TPM Promotion Section,

EnvironmentV O IC E

Future Talk

The Environmental Product Development Subcommittee designs and develops

Company
Visions

Environmental Product Development Subcommittee Activities Challenges 1 & 2PreviousNow

and for providing a place for hands-on environmental education such as rice planting and harvestingfor city elementary school children. It was selected as one of six finalists from all over Japan.
This effort has created a natural environment from a former factory site where there were noliving things. As we aim to be "Sango the Environmental Company", we will continue to work
toward preserving biodiversity and creating a society that coexists with the nature.
Biotope where the Heike fireflies live naturally(Sango Head Office)

13

SANGO Group Report 2022 14

Top Message

ESG Social
We take effort on human resources

Position・Introduction to TPS ・QC introductoryNew
employees

・New employee training ・How to make work arrangements
・Basics in logical thinking and expression ・Business manners

In FY2021, Sango updated our Safety Dojos facilitated in each plant.
In these training facilities, we explain points on preventing indust-

To prevent the spread of COVID-19, werial accidents in an easy-to-understand way over the display of

have formulated our own company

major accidents that occurred in plants in the past to enhance theguidelines since the beginning of thesafety awareness of our entire staff (a cumulative total of 2,732

p a n d e m i c . We h a v e r ev i s e d t h e mparticipants). Also, disaster simulation machines allow employees

many times in the process of imple-

to experience risks. Once they understand the fear, their conscious-

menting infection control measures. In

ness to act improves. At Sango, our entire company will continue toaddition, masks are distributed month-

aim for zero accidents.

ly to all employees. Since September 2020, we have been taking advan-

Introduced in September 2021

tage of our own manufacturing technology to produce masks in-house.
In FY2021, we began in-house testing using antigen test kits to preventthe spread of infection and ensure employee safety. In cases where an
course of their work, we actively test to reduce concerns for theemployee and their family and to ensure their safety. At the same time

Support System for Balancing Childcare/Nursing Care with Work

as national-level disease-prevention measures were issued in Japan,

Environment

employee comes in contact with a COVID-positive person during theSangoEnvironmental
Challenge 2050

employees.

Generalemployees

Pre-management
schooland conduct trainings for select・Mid-level employee training
・Toyota Production System (TPS) ・Leadership

Trainees inabroaddevelopment correspondence courses

Mid-level
employees

The National Trade Skill Test

p u b l i c c e r t i fi c a t i o n s , o f f e r s e l f -Educational correspondence course

Also, we give support to acquire

Sectionassistantmanagers

Public certifications acquisitio

the front line of workplaces.

・New executive training
・Mental health care management
・Practice on-the-job training
・Quality control (QC) leader

Problem solving course(basic and practical)

workers who can play active roles inManagers

Education for responding to
globalization (language)

receive basic trainings to become

・Executive and managerial training
・Communication
・CSR and complianceSelf-development courses Trainings for select employees

COVID-19 Response:
Use of Antigen Test Kits

Future Talk

ye e s to m a n a g e r s , o u r e m p l o ye e s

Programs for each position (group and online training)

Training for
managerial
candidates

development. From the new emplo-

Safety Training Held at Plants

Company
Visions

Sango Training System: Business skill improvement, through a variety of training

antigen test kits were also distributed to all employees who traveled onafter business trips to prevent the spread of infection. Going forward,

as for re-entry into the workforce. We also aim to provide a working environment where these systems are easy to use.

Sango’s Childcare Support Program
Shorter hours for childcare:

Nursing care leave: 730 days in total

For: Pregnant employees
Timing: Up to and including maternity
leave, one or more consecutive months,
as approved by the company

Until completion of 3rd grade of elementary school
1. Reduced fixed working hours (choice of5, 6 or 7 hours per day)
2. Use of flex time
3. Exemption from overtime, staggered
working hours, and working on holidays(Choice of 1. or 2., not both)

Reduced work hours for caregivers:

Childcare leave: Until child is 2 years oldInterview system:

Child sickness leave:
Until completion of 4th grade of elementary school, 5 days per year for one child,
10 days per year for two or more children(taken on a daily or hourly basis)

Miyoshi Plant

3 years from the start, on the below 1. or 2. (Choice of 1. or 2., not both)
1. Shortened fixed working hours (choice of 5, 6 or 7 hours per day)
2. Adoption of flex time
3. Exemption from overtime, from staggered working hours and from working on holidays

Nursing care leave:

Toyohashi Plant

2022 Certified Health & Productivity
Management Outstanding Organization Recognition Program

5 days per year for one family member needing nursing care, 10 days per year for two or
more family members needing nursing care (taken on a daily or hourly basis)

V O IC E

ITO Ayaka

Health Promotion Group,
Safety and Health Promotion Section

Thanks to the cooperation of our employees andtheir families, we have been able to prevent internal
infections that could affect our production. I would
like to thank everyone for their understanding.

At Sango, we act accordingly to the Declaration on Health, which states

Other Programs

that physical and mental health is the foundation for all activities. With

Comeback system:

this in mind, we are working to ensure the health of all our employees.

Employees who have left the company due to a spouse's transfer or providing nursing
care can rejoin when they are able to work again.

Since December 2021, we have established health consultation offices

New Fitness Room Built

Company Prof ile

to work toward addressing mental health issues. Nurses get
stationed at each plant to listen to matters employees are worried or

Telecommuting Program

New Office Incentive Award for
Creating an Easy-to-Work Environment

built on the first floor of thehave two industrial counselors on staff in our Safety and Health Dept.

Fukuta Plant's new Forest 35

These efforts have been recognized by the Ministry of Economy, Trade(Sango) building. The room offers

and Industry (METI), who have certified Sango as a Health & Produc-treadmills and various types oftivity Management Outstanding Organization once again for 2022.

weightlifting equipment, andreduce face-to-face contacts in the workplace as a measure to

Toyota Technical Center, one

prevent the spread of infection. At the start of the program, thereof our research and develop-

were many feeling that working from home would be a challenge.

ment bases, has been renova-

Some concerns were that certain jobs would be difficult to perform

ted into an office environment

from home and that there would be communication issues withdesigned to stimulate creativi-

Health consultation offices: 7

supervisors and coworkers. In response, we introduced a systemty. The building fosters activethat allows access to the in-house server and implemented Micro-

communication using internalCounselors on staff: 8(2 are industrial counselors)

soft Teams, so that computer-based work could be performed ins ta i rca s e s , d i g i ta l s i g n a g e,

the same environment as it would be in the office.

and open meeting spaces.

V O IC E

features equipment popular

OGAWA Hideaki

Human Resources and Labor Section

Our three plants are facilitated with fitness gyms

among women like the Core Trainer Chair and the Diet Trainer Core. There

Toyota Technical Center Building R

Our approach to work stylereform was recognized as a prime example of future office environment improvement and received the Chubu New Office Honorable
Mention from the New Office Promotion Association, which is a group

We work to improve our programs and create acomfortable workplace that continues eveninto post-pandemic life.

15

A new fitness room has beengoal is to handle workplace issues on a wide scale, and to do this wethat promotes the creation of comfortable and functional offices.
Sango will continue with work-style reform with the goal of improving our office spaces and the way we work in them.

V O IC E

Product Overview
A look at Sango

With COVID-19, we began a telecommuting program in May 2020 toconcerned about regarding their physical or mental health. Another

Governance

From pregnancy period to returning time
to work, 3 interviews are held with theemployee to confirm items to considerd u r i n g p r e g n a n c y a n d w h a t to ex p e c t
after returning to work, with the aim ofsupporting better balancing childcare andwork during pregnancy and parenting.

we will continue to take steps to prevent the spread of COVID-19.

Sango’s Caregiver Assistance Program

Pregnancy leave:

Socialbusiness for unavoidable reasons. Testing was conducted before andIn keeping with the diversity of our employees, we have established a support system for balancing work and childcare/nursing care, as wellis also an amply spacious stretching area, where users can get a complete
stretch using the built-in stretching poles and grid rollers. Changing rooms
and shower rooms are available, too. In total, Sango has three fitness
rooms and physical exercise facilities that our employees can use freely.

AOYAMA Tetsuya

Health Promotion Group,
Safety and Health Promotion Section

We plan to continue promoting healthmanagement to support Sango’s growththrough the health of our employees andworkplaces.

V O IC EDOZAKI Yoshito

Safety and Health Promotion Section
In addition to creating a safe and secure
workplace, we also offer activities aimed at
reducing employee stress and promoting
healthy bodies.

SANGO Group Report 2022 16

Top Message

ESG Social
Received Letter of Appreciationfrom Mie Prefectural Board of Education

Company
Visions

Sango’s Masks Pass JIS
Compatibility Inspection

Promotion of Sango Group Green Purchasing Guidelines
The growing severity of environmental issues poses new risks forSince FY2019, the Sango Inabe Plant has been accepting dual-system*

shortage in Japan. Initially, Sango began manufacturing masks forcorporate training for second- and third-year high school students

our own employees, but in December 2021, the masks were certified

who are looking for employment. In recognition of this, the Mie

as JIS T9001* Class II for medical use and general use. Since then,Prefectural Board of Education has presented the plant with a letter

we have begun to expand our sales channels outside the company.

of appreciation. During practical training, Sango supports students as

We will continue to focus on new product development and sales.

they get their first work experience by providing them with hands-on*JIS T9001 is a Japanese official
s t a n d a rd fo r m a s k q u a l i ty a n d
performance that was establishedin June 2021.

experience in production, prod-

HFC

with our suppliers, as we actively promote procurement of environmentally friendly parts and materials, and work to improveservation activities throughout the supply chain and continue to

CO 2

N2O

CH4

Own
company Transport

Requests to our suppliers

Reduction of environmental impact on water4

Promotion of resource recycling

5

Control of chemical substances*

6

Creation of a society in harmony with nature

repair. It will help the students
develop their career view and

Manufacture

work view.
*An education system that combines

Transport
Assembly
Use of fossil fuels
and electricity

Use

Sango-produced mask

Sango’s own mask production line that started
mass production in September 2021
(Sango Technical Research Institute).

Triple Awards in Three Consecutive Years(Customer)* "5. Control of chemical substances" is mandatory andis the most important item.
Conservation activities carried out throughout the supply chain

Working with Suppliers to Prevent Spread of COVID-19
With the goal of preventing the spread of COVID-19, Sango’s Procurement Dept. has shared information on our
they prevent not only infection but also reduce the number of people coming into close contact with the virus. To
further strengthen our countermeasures, we have conducted survey on how disease countermeasures are implemented, and the Procurement Dept. and the Safety and Health Dept. have collaborated to visit each supplier toSurvey conductedsuppliers: 52
Notices issued on disease
prevention measures: 12

Customers Publicly Acknowledge
Sango’s Quality

For the third year in a row, SIAP (India) won three awards fromToyota Kirloskar Motor (TKM) for QUALITY, Zero Defect Supplies, andSango Thai (STEM) received the ASEAN Regional

DELIVERY. Internally, SIAP carries out thorough quality checks andQuality Award from Nissan Motor Thailand. 10

ensures a zero outflow of defects by following standardized work

companies in the ASEAN region are selected forprocedures. This led to the achievement of 0 defects at the customer,t h i s a w a r d f o r ex c e l l e n t q u a l i t y. ST E M w a s

0 delivery delays, and the winning of these awards.

s e l e c te d i n t h e E n g i n e & D r i ve ca te g o r y a n d

SIAP will do their best under the concepts of Safety First and Cus-

received a trophy for being the best company.

tomer Satisfaction First.

The entire team will continue to work together
to further improve quality to deliver high quality
products to our customers.

(March 2020 to March 2022)

Governanceown efforts and on items to strengthen our countermeasures together with our suppliers. We have requested thatclassroom learning at schools withpractical training at companies

Social3(Supplier)uct measurement, and machine

Environment2

Establishment of an environmental
management system
Reduction of greenhouse gases (GHGs)

1

SF6

Greenhouse gases (GHGs)

environmental conservation. We will continue to implement conpromote sustainable environmental conservation activities.

PFC

Sango
Environmental
Challenge 2050

The Sango Mask Project was launched in 2020 amid a serious mask

Purchasing Guidelines" to promote environmental management

Future Talk

companies. Since 2018, we have issued the "Sango Group Green

conduct on-site inspections. In this way, we are actively working with suppliers to prevent the spread of infection.
Company Prof ile

Improvement of Operational Quality through ISO9001
message to "Bring about a reform in our operations to improve our work!” the company has been introducing activities aimed at enhancing theentire company’s quality of work, rather than just acquiring certification.
Commemorative photo after receiving the award in July 2021

The most prominent of these activities is called ISO9001 Company-wide Awareness Training. In it, all our employees learn that the keys to improving the quali-

Product Overview
A look at Sango

Sango began ISO9001 certification activities in May 2019 and obtained the certification in June 2021. Since the start, in line with the president's

ty of operations is (1) Compliance with rules and (2) Continuous improvement. As an example, one activity is the On-site Actions to Correct Inconsistencies. It
is conducted at each plant to ensure work is done according to rules set in the work procedures manual and other documents, and that when working, participants are sure to point out any areas for improvement. As a result, we received a good evaluation from the inspector at a periodic review held in March 2022.

V O IC E

HARADA Misuzu

ISO Certification Group,
Environment Certification Section

We will continue to take steps toimprove the quality of our operations.

Major Awards We Received for Technology Development and Quality Control in FY2021◆Sango Co., Ltd.
・Special CE Award and Quality Management Award from Toyota Motor Corporation
・VE Activities Award from Daihatsu Motor Co., Ltd.
◆Sango Hokkaido Co., Ltd.
・Best Quality Award from Toyota Motor Hokkaido, Inc.
◆Sanpuku Co., Ltd.
・Quality Excellence Prize from the Kyuaikai◆Arvin Sango Canada, Inc. (ASCI)
・Excellent Quality Award from TMNA (Toyota Motor North America)◆Guangzhou Sango Automotive Parts Co., Ltd. (GSC)
・Best Purchasing Partner Award for 2021 from Dongfeng Nissan (Dongfeng
Motor Company Limited)・Special VA Promotion Award from GTMC (GAC Toyota Motor Co., Ltd)・Quality Achievement Award from TMCAP (Toyota Motor (Changshu) Auto
Parts Co., Ltd.)◆Sango Turkey, Inc. (STI)・Supply Achievement Award and Project Management Achievement Award
from TME (Toyota Motor Europe)

Periodic review in March 2022

17

SANGO Group Report 2022 18

Bottle Cap Collection Box

Sango Group Code of Conductsocial contribution activities

ment and recycling by reducing CO 2 emis-in cooperation with local

sions from incineration. The profits from theentities. China Guangzhou

sale of the caps will be used to provide(GSC) participated in

vaccines to children around the world.

marine plastic waste clean-

Since 2009, we have installed collection

up activities in support ofboxes at each of our plants to gather plastict h e A l l -To y o t a H a r m o n yCleanup in October, 2021

In 2012, Sango Group established SANGO WAY. It’s a general rule to share the values and how to act as an employee working in the Sango
Group. SANGO WAY was created as a supporting backdrop for conduct (a foundation for value judgments) for the entire Sango Group, including
all domestic and overseas companies with a view to move forward in the same direction and to fully demonstrate the company’s strength.
This time, the Sango Group Code of Conduct (the Code) was established to cover not just work-related decisions, but also provide specificguidelines related such aspects as the respect for human rights and compliance with rules in every employee's business activities, social life,and daily life. The content was discussed in the CSR Committee and the Code was established with a formal announcement at the company
annual policy (hoshin) presentation in March 2022.

bottle caps. By 2021 we had reached acumulative total of one million caps. This

20.4 kg of marine plastic litter from the seashore and seabed of Shen-can be converted into polio vaccines forzhen City, Guangdong Province. The source of marine plastic waste

1,189 people and is equivalent to a reduction

Battle cap collection box
at Fukuta Plant

comes from our daily life and industry, which is causing serious oceanof 7,590 kg in CO 2 . Even the small efforts our employees make every

destruction. We are keenly aware that there is a strong need for ocean

day are linked to SDGs. We plan to continue efforts in this area.

◆What is Sango Group Code of Conduct?
CompanyCreed

It is a summary of basic guidelines
and specific points to keep in mind

communities and other companies.

in our daily life, social life, includ-

Unchanging philosophy
since company founding

ing daily business activities. The
Code is established for all employees

Sango Kanto donates Masks and Pedal-operated
Hand Antiseptic Stands to Shimotsuma City

STEM donates Hygiene, Toiletry,and other Goods to a Hospital
The spread of COVID-19 has

where Sango Kanto is

had a serious impact on

located, was the hostThailand, where STEM istown for the Republic

located. During this time,of Burundi's team ofthe local Chachoengsao

the Tokyo 2020 Olym-

Province built a field hospi-

pics and Paralympics.
To support this event,
Sango Kanto donatedtine of COVID-19 patients.
By receiving this notifica-

Guideline for amember of society

T h e d i f fe re n c e b e t w e e n S A N G O WAY
and the Code is that the Code includes
not only business conduct, but also, it’sa guideline to apply in our daily andsocial life.

Presentation of supplies to thegovernor on Aug. 2021

tion, STEM donated hygiene, toiletry, and other goods to the hospital.

were made by their Maintenance Group and painted in the Olympic

When STEM along with the union representatives gave the goods tocolors. Though the pre-games camp had to be cancelled, the donatedthe Governor of the Province, the Governor expressed his gratitude foritems were used in the city to prevent the spread of the COVID-19.

the donation. STEM will continue the efforts to cooperate with thelocal government and contribute to the community.

1 Respect of Human Rights

support this, we have sent a total of 24,032 seedlings over the past 10 years. Seeds collected in

As a member of the Sango Group, we shall behave in line with social decency,
respecting laws, company regulations and policies, devoting ourselves to our own
work duties.

4 Protection of Company Assets

Tohoku are grown into seedlings by Sango employees at each plant before they are shipped back to

We shall protect company assets and intellectual property, and not infringe on any
rights related to the intellectual property of a third party.

the tree-planting ceremony in Iwanuma City.
We have participated in the tree planting ceremony in Iwanuma City every year. In 2021, the 11-kilometer forest seawall stretching from Sendai Airport to Shinhama Park was completed. Seedlings, some as

Fiscal Year Policies

Company policy laid out in annual company plan (Hoshin)

5 Proper Information Management; Transparency, Responsibility of Disclosure
We shall take the utmost care when handling customer or private information, andalong with protecting it properly, for relevant customers, other employees, local
community members, we shall disclose information related to company activity fairly
and with transparency, at the appropriate time in the appropriate manner.

6 Fair and Impartial RelationshipAlong with endeavoring to carry out fair and impartial transactions with customers
and suppliers, we shall also strive to build a relationship of trust and achieve mutual
prosperity.

7 Environmental Preservation and Social Contribution Activities
Towards achievement of a carbon-free society, our entire company shall work
together to develop products that consider the environment, strive to promote
recycling, resource savings, and energy savings, as well as protect our naturalenvironment and contribute to the local community.

8 Business Operations Respecting the Culture and Customs of Other Countries
In each country we do business, we shall respect the local culture and customs andcontribute to local development.

◆Spreading Understanding of the Sango Group Code of Conduct Guidelines

small as 30 cm, were planted on a small hill. They will grow, make a forest, and function as a tideembankment. This would aid in preventing people and property from being swept away in case of atsunami. HIOKI Michitaka serves as Chair of the Forest Seawall Association, the organizer of the proj-

・A Code of Conduct Guidelines leaflet was distributed to all employees. To create a deeper understanding, the leaflet contains 8 elements of the Codewith detailed content.

ect. He thanked Sango, saying "We are grateful for your active participation from the early days of the・From now, we will carry out the employee training to create even more widespread understanding.

tree-planting festival, and for the continuous support in providing seedlings and cooperating with us.”
Tree planting ceremony in Iwanuma City, May 2014

19

Company directional goals

Product Overview
A look at Sango

In deference to human rights, we consider discrimination and how we express
ourselves. In addition, we have understanding for religious activity in moderation
and respect the freedom of religion.

We shall strive for a good lifestyle on a regular basis, working to improve the healthof mind and body and prevent illness, with priority given to ensuring safety so thateveryone can work safely and comfortably with peace of mind. We shall also follow
traffic rules and take care to drive considerately.

quake in 2011. Since then, a forest seawall project has initiated by planting trees along the coast. To

Mid-term Management Plan 2025

1 Respect of Human Rights 2 Compliance with Laws and Rules 3 Safety and Health 4 Protection of Company Assets
5 Proper Information Management; Transparency, Responsibility of Disclosure 6 Fair and Impartial Relationship
7 Environmental Preservation and Social Contribution Activities 8 Business Operations Respecting the Culture and Customs of Other Countries

3 Safety and HealthIwanuma City in Miyagi Prefecture was hit by the tsunami resulting from the Great East Japan Earth-

CSR PolicyLong-term Plan 2030

◆Sango Group Code of Conduct

2 Compliance with Laws and Rules

Ten Years of Seedlings Donations to Support Great East Japan Earthquake Recovery

Shared principles of all employees

Company Prof ile

10,000 masks and 5 pedal-operated hand antiseptic stands, which

How should we act as
a company?
(Corporate responsibility)

Company directional goals

P O IN T！

tal for temporary quaranDonation presented to Shimotsuma mayor
Kikuchi on July 2021

same values.

SANGO WAY
Code of Conduct

Corporate
Principles

GovernanceCity of Shimotsuma,in the Sango Group to share the

Guideline forbusiness

How should we act as
an individual?
(One's sense of ethics)

Socialprotection and will continue our activities in interaction with local

Environment

with Nature Working Group in China. The 32 participants collected

Sango
Environmental
Challenge 2050

caps, we promote environmental improve-

Future Talk

◆How the Sango Group Code of Conduct was establishedBy separating and collecting PET bottle
We often participate inCompany
Visions

Participated in Marine Plastic
Waste Cleanup

Top Message

ESG Social・Although this Code is a standard for individuals in the Sango Group, it is expected that our business partners will also follow the same standards.

SANGO Group Report 2022 20

Top Message

ESG Governance

Company
Visions

Corporate Governance System

Compliance Awareness Activities

Sango has established the corporate governance system shown below. This system enables us to make transparent and fair decisions quickly,

In line with the Sango Group’s policy of carry-taking into consideration all our stakeholders, including our employees, shareholders, customers, suppliers, and local communities.

ing out management reform in compliance with

ReportAppoint/Dismiss

workplaces, we have worked throughout the

Appoint/Dismiss

ReportExecutive Personnel Plan Committee
Compensation Plan Committee

Auditors
Audit

Board of Directors

Audit

Cooperate
Discuss/
Reportpliance. For the first time in FY2021, our President issued a video message of the compliancepromotion month, adding the voice of a top

Decision making/Supervising

Appoint/
Dismiss

year to raise employee awareness about com-

Sango
Environmental
Challenge 2050

Discuss/Repor t/
ProposeFinancial audit

Appoint/Dismiss

Cooperate

Financial Auditors

Future Talklaws and ordinances in our open and energetic
Shareholders Meeting

executive to convey our strong commitment tocompliance. One initiative we have taken is tocreate an atmosphere where employees canAppoint/Supervise

discuss compliance issues via morning meeting
Environment

topics and monthly KYT, which is a harassment
Committee

Executive President

awareness training based on actual cases thatManagement Meeting

We will continue to conduct educational activiReportties so that all employees can treat complianceDirect/Supervise

SocialProfit Planning Meeting

have occurred both inside and outside Sango.

Sango Group Audit Officeissues as relevant to their own work.

Internal audits

Execution Meeting
Monthly KYT activities

Operating Officers

The highest decision-making body in the Sango Group is the Board of Directors, which consists of eight directors including three external
directors. It directs and decides on legal issues and critical matters concerning management, as well as serves as supervisory entity. On theother hand, to ensure fairness and independence, our auditors, including external auditors, supervise management and audit how directors are

Since 2018, we have taken such initiatives, as laptop computers usage and Wi-Fi installation, to improve production and work-life balance at plants andGovernance

Sango's Digital Transformation (DX)

Executive Officers

offices. To achieve a sustainable growth, we will improve profitability and secure superiority over other companies by utilizing data and digital technologies from now on. We will implement the following three actions.

executing their duties.

Internal Control Committee

Internal Reporting System

Our Internal Control Committee implements legal compliance andWe have set up an internal whistleblowing and consultation service calledrisk management initiatives according to the corporate governancethe Sango☆Helpline for the purpose of preventing, detecting and correct-

sy s te m w i t h a b a s i c a p p r o a c h fo r i n te r n a l c o n t r o l sy s te m s toing misconduct at an early stage to strengthen our compliance system.

ensure the propriety of work carried out within the organization.

(3) Transformation of office
work (introduction ofsystem that will replace the"Host", etc.)

Sango DX Grand Design

Principal chief: Operating Officer
Mid-term management plan 2025

Promotion leader: System Department Manager
DX basic plan

(R&D, Production
preparation, Process)Production
andmanufacturing
team

Engineering
Department Manager

Plant Administration
Department Manager

Engineering
team

ERP team(Utilization/
application of data)
Enterprise Resource Planning
Department Manager

DX strategy

Engineering
team

Production andmanufacturing
team

IT infrastructure

DX promotion system

ERP
team
DX education program

Internal response

Union responseWorksuperior

BranchPlant/
Dept. manager

Caller/Consultor
Headquarters

Plant counselor

Product Overview
A look at Sango

Corporate governance
Establishment of a system to make transparent andfair decisions in a quick and decisive manner

Internal Reporting Consultation Service (Sango☆Helpine) Consultation Flow

(2) Concept of a smart factory
for the manufacturing
process overall / shift tounmanned plant

Implementation Structure (DX Promotion Meeting)Company Prof ile(1) Transformation of overall
work from the time Sangois awarded the business tomass production (activity
flow chart)

Efforts Toward Information Security Measures

Internal Control Committee
Authority that controls work processes

Internal repor ting system
Sango☆Helpline

Compliance

Risk management

Establishment of a system toensure that company
employees carry out their work
fairly and justly in compliancewith societal norms

Upon recognition andevaluation of various risks
surrounding the company,
establishment of a policy andsystem for control▶Compliance Committee▶Crisis Management Committee

Dept. to be
consulted
Involved person

the ongoing progress of digitization and Digital Transformation (DX) in operations. To
take up the major management challenge, information security is an important foun-

Internal contact

External contact

Governance Group*

Law firm

dation in our relationship of trust with our customers and all other stakeholders. We
are now working to enhance our overall information security through continuous

awareness, and vital countermeasure tools, all with the goal of steadily improving
Internal Regulation / Compliance Committee

Four Security Measure Areas
Technical measures

Personnel measures-Correct configuration, operation, monitoring, and implementation of security tools-Detection by periodic checks-Regulation compliance by each employee
Information security education-Spread awareness through education, etc.

(IT tools, etc.)(education, dissemination, instruction)

efforts in four areas based on our Fundamental Information Security Policy.
We provide all employees with annual security education, daily activities to raise

Human Resources andLabor Section Labor Group*

Disciplinary Council

Risks of cyber-attacks and information leaks have been steadily on the rise amidst

the level of information security management throughout the Sango Group.

Physical measures

Organizational measures-Office access control- M a n a g e m e n t o f i n fo r m a t i o n d ev i c e s ,storage media (incl. transfer, disposal)-Rulemaking and rule-enforcement efforts-Establishment of emergency contact
system and emergency procedures-Detection by periodic checks(facilities, environment, media)(rules, evaluation, system)*Governance Group conducts fact-finding investigations of legal violations and Labor Group conducts
fact-finding investigations of harassment/labor issues, etc.

21

SANGO Group Report 2022 22

Company Name

Representative

Sango Co., Ltd.

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

Incorporated

June 1, 1950

Toyota Motor Corporation

Exhaust pipes

Hino Motors, Ltd.

Exhaust manifolds

Daihatsu Motor Co., Ltd.

Vehicle body products

Nissan Motor Co., Ltd.

Door impact beams

Mitsubishi Motors Corporation

Other automotive parts

Isuzu Motors, Ltd.

Cold forged products

Subaru Corporation

Cold finished steel bars

Mazda Motor Corporation

Drawn pipes

Toyota Industries Corporation

Carbon steel pipes formechanical structures

JTEKT Corporation

Machined/ground steel bar
products

Toyota Tsusho Corporation

Sales*

Non-consolidated gross sales: 225.7 billion yen
Consolidated gross sales: 502.8 billion yen

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

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

3-33 Akemi-cho, Toyohashi, Aichi, 441-8074
TEL: 0532-23-3515 (main)
FAX: 0532-23-3519▶Yawatayama Plant + R&D Center▶No. 3 Miyoshi Plant▶Inabe Plant▶Komeno Plant

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

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

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

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

Sumitomo Corporation
Asai Sangyo Co., Ltd.
Metal One Corporation
Canox Corporation

Main banks*as of March 31, 2022

History

Sales (Consolidated)

Founded Tsunekawa Ironworks. Began stamping businessSep. 1934

Began business relationships with Toyoda Automatic Loom Works, Ltd.

Aug. 1937

Began business relationships with Toyota Motor Corporation(Billion yen)
500
400

Incorporated to form Sango Co., Ltd.

300

Sep. 1950

Established Takakura Plant (former Nagoya Plant, current Head Office)200

Mar. 1954

Commenced production of the muffler and exhaust systems

May 1962

Established the muffler and exhaust system laboratory at Nagoya Plant

Aug. 1967

Established Miyoshi Plant (plant specializing 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)Aug. 1994

Built the Technical Center at Yawatayama Plant

Nov. 2008

Completed the Muffler Museum at the Head Office (former ECO35)

Jun. 2015

B u i l t t h e 2 n d Te c h n i ca l C e n t e r a t S a n g o' s To y o t a Te c h n i ca l C e n t e r(former Toyota Plant)
Built the Guangzhou Sango R&D Center in China

Oct. 2017

Built the ASI Technical Center in the United States

Jun. 2021

Archived ISO 9001/2015 certification

401.9

420.8

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

2017

2018

Secondary steel 9%
processing

2019

2020

Asia andAustralia

China 23%

B Sango Kanto Co., Ltd.

D SE Center

F Sango Partners

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

1 - 1 M i ya s h i ta , F u k u ta - c h o, M i yo s h i , A i c h i ,470-0294
TEL: 0561-34-8301

2021

C

8%

❶ Turkey (STI)❹ Indonesia (SID)
PT. Sango Indonesia (IDN)

Sango Turkey, Inc. (TUR)

Sales
composition bybusiness field*

Sales
composition
by region❷ India (SIAP)

Automobile parts 91%

Europe and Americas 25%

44%* Results for Sango Co., Ltd. and consolidated subsidiaries for FY 2021.

Head Office
1-3-1 Mutsuno, Atsuta-ku, Nagoya, Aichi,
456-0023, JAPANTEL +81-52-882-0035
FAX +81-52-882-3562

For more
information
visit our website❸ Thailand (STEM)F❺ Guangzhou China (GSC) ❽ Canada ( ASCI)
Guangzhou Sango Automotive Parts
Co., Ltd. (CHN) + R&D Center❼ Tianjin China (TSC)

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

Arvin Sango Canada, Inc. (CAN)❾ USA (5 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

❼
❻
❺

❶
❸

❹

23

B
D

Xiangyang Sango Automotive Parts
Co., Ltd. (CHN)❷

http://www.sango.jp/en

E❻ Xiangyang China ( XSC)Sango India Automotive Parts
Pvt. Ltd. (IND)Japan

17-12 Sakurada-cho, Atsuta-ku, Nagoya, Aichi,
456-0004
TEL: 052-884-3531

1 1 0 0 - 5 H a nya , S h i m o t s u m a , I b a ra k i ,304-0005
TEL: 0296-45-0035

100
0Sango Technical Research

E InstituteProduct Overview
A look at Sango

May 2016

404.5

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

A

Company Prof ile

Jun. 1950

502.8
388.0

C Sanpuku Co., Ltd.

GovernanceJun. 1928

A Sango Hokkaido Co., Ltd.

SocialDomestic and Overseas Companies

MUFG Bank, Ltd., Sumitomo Mitsui
Banking Corporation, Mizuho Bank,
Ltd., Bank of Nagoya, Ltd.

Non-consolidated: 2,746
Consolidated: 8,070

3-1 Konosu-cho, Toyota, Aichi, 471-0836
TEL: 0565-28-3535 (main)
FAX: 0565-28-9080

Environment

608 million yen▶Toyohashi Plant

KYB Co., Ltd.

Stainless steel piping system forthe construction industries

Capital

Number of Employees*

Mufflers▶Fukuta Plant

Sango
Environmental
Challenge 2050

FoundedCustomers (random order)▶Miyoshi Plant

Future Talk

Head Office

Main Products▶Toyota Technical Center + R&D Center

Company
Visions

Company Prof ile

Plants (Eight plants in central Japan)

Top Message

Company Prof ile❿❾

Countries where technicalassistance is provided toforeign companies
Mexico/Malaysia/Brazil/Indonesia/
Argentina/Taiwan/South Africa/
ThailandSANGO Group Report 2022 24

Company
Visions

Exhaust system

Environmen
Total number oftrees planted

Total amount of
CO2 discharged

Air gap manifolds

Catalytic converters(spin formed)

Urea SCR system

Exhaust control valves

119,522ｔ-ＣＯ₂

311,588*1

Heat collectors*1+167t, compared to the previous year

SocialNumber of employees

Average age

Average number ofyears at the company

8.8 %

16.2

Body and chassis

8,070

40.9 years old*1

Employment rate ofpersons with a disability
Roof side rails

Floor cross members

Radiator supports

Carbon steel pipes formechanical structure purposes

Rate of taking paid leave

*2

100 %

77.4 %

0.8 %+0.1%, compared to the previous year

Average overtime
work hours

*2,3

*2

Continuously attaining 100% since 2017

Number oftraining courses

Number of educationalcorrespondence courses

Reduction gears

Cold finished bars
(drawn)Steel wire for cold heading
and cold extruding (drawn)

65*2+3.8hrs, due to recovery inproduction from COVID-19 impact282+5 workers, compared to the previous year

G ove r na nce
Directors

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

8
Cold forged products-1.6% compared to the previous year

Number of workers who haveacquired the National Trade
Skill Test & certification qualification138+9 courses, compared tothe previous year

*2

Product Overview
A look at Sango

Propeller shafts

Raw material drawing
process and cold forging
technology applied toachieve difficult deephole forming

Secondary steel products

Cold finished bars

2.2 %25.0hrs/monthDifferential
intermediate shafts

Rate of returning towork after maternity leave

Front floor
reinforcements

Drive system

ITCC shafts-1.4 year, compared to the previous year

Company Prof ile

Door hinges+1.4%, compared to the previous year

*2

Door impact beams

Development of cold stamping technology
for Advanced High-Strength Steel (AHSS)
that can ensure quality and accuracy
Cross members*2

GovernanceA-pillars

Ratio of females inmanagement*2

SocialRatio of female employees

Environment

Dual mode mufflers(internal valve)523ｔ-ＣＯ₂

Sango
Environmental
Challenge 2050

Spin-formed sub-mufflers*1+12,304 trees, compared tothe previous year

+6,964 t-CO2, compared to the previous year,
due to production increment

Utilization of exhaust heat to speed upcabin heating and reduce environmental burden

Total amount of CO2 absorbed asa result of planting trees
Future Talk

Single wall tubular
manifolds

Top Message

A look at Sango by number, FY 2021

Product Overview

Number of cases
in internal reporting (Sango☆Helpline)

Number of Board of
Directors meetings held

Attendance rate at Boardof Directors meetings

15 / year

3
Number of teams participatedin the compliance trainings, in total

96.9 %
Number of employees who
took security trainings

Non-automotive products

Surgical masks:
JIS T 9001 class II

Stainless steel piping system:
FP35 for the construction industry

From our experience with pipe plastic forming technology inautomotive f ield, we have prolonged product life, and reduced CO 2 andlabor at construction site

32 / year+2, compared to the previous year,
due to increase awareness of the system

1,392 / teams
Held every month since 2020

2,213 / year

*1+936, compared to the previous year

*1 Results for all Sango Group (including directly hired temporary and part-time workers)*2 Results for Sango Co., Ltd., and group companies in Japan *3 Calculated as females in management/workers in managementx100(%)

25

SANGO Group Report 2022 26