PowerPoint プレゼンテーション

[Audio] Mabuchi Motor Code of Ethics Education Year Month Day Human Resources and General Affairs Division Legal Dept. Hiroko Otsubo Material creator Legal Dept. Motoyoshi Naoya.

[Audio] Mabuchi Motor Code of Ethics Education Introduction Code of Ethics — Basic policy Text of the Code of Ethics.

[Audio] Mabuchi Motor Co., Ltd. Code of Ethics Training Code of Ethics Basic policy.

[Audio] Introduction What is the Code of Ethics? →Refers to guidelines and standards for conduct and judgment in society and within organizations, existing to establish the rules and values necessary for individuals and organizations to take appropriate actions. Employees' compass Everyone has likely heard the term "Code of Ethics" at least once since joining the company. Ethical standards refer to the guidelines and criteria concerning conduct and decision-making within society and organizations. These ethical standards exist to establish the rules and values necessary for individuals and organizations to take appropriate actions. Today, I will explain the ethical standards, which serve as guidelines for you to take appropriate actions..

[Audio] Mabuchi Motor Code of Ethics Training Introduction Code of Ethics【Basic policy】 Text of the Code of Ethics.

[Audio] Mabuchi Motor Code of Ethics【Basic policy】 Please aim to realize "Contribution to the international community and its sustainable expansion" predicated on the fundamental premise of complying with the laws, ordinances and regulations of each country and region and conducting business activities consistent with social ethics. All officers and employees of the Mabuchi Group shall comply with the laws, ordinances, regulations and international rules of the country or region where the company is located, giving them priority over the company’s profits and business operations. Further, they shall fully recognize their responsibilities to a wide range of stakeholders, including business partners, shareholders, investors and local communities, and shall strictly refrain from conduct that is contrary to social ethics. Furthermore, with respect to matters among these laws, regulations and social ethics that require particular attention, clearly state them in rules and other documents and ensure thorough dissemination; all officers and employees shall faithfully observe them. Copyright ℂ 2024 Mabuchi Motor Co., Ltd. All rights Reserved The basic policy of Mabuchi Motor's Ethical Standards is to realize the management philosophy of "contributing to the international community and its continuous expansion." Please fully recognize that the daily duties performed by employees give rise to responsibilities toward a wide range of stakeholders, including shareholders and the local community. Also, be mindful to comply with the various laws, ordinances, and regulations of each country and region and to conduct business activities in accordance with social ethics, and engage in your daily duties accordingly..

[Audio] Mabuchi Motor Code of Ethics Training Introduction Code of Ethics - 【Basic policy】 Text of the Code of Ethics.

[Audio] Mabuchi Motor Code of Ethics 1. Technology and Quality Assurance 10. Priority of Safety and Hygiene / Handling of Company Assets 2. Sales 11. Protection of Personal Information 3. Procurement 12. Secure Management of Company Confidential Information 4. Environmental Conservation 13. Prohibition of Insider Trading and Reliable Financial Reporting 5. Import and Export 14. Contribution to Society 6. Respect for Intellectual Property Rights/Confidential Information 15. Tax Payment Obligations 7. Prohibition of Illicit Acquisition of Confidential Information, Defamation, etc. 16. Prohibition of Bribery and Improper Provision of Benefits 8. Maintenance of Proper Relations with Business Partners 17. Severance from Anti-Social Forces 9. Respect for Human Rights 18. Prevention of Money Laundering Now, I would like to proceed directly to the main text of the Code of Ethics. The main text of the Code of Ethics is composed of these 18 topics. I will explain the important points for each topic one by one..

[Audio] 1. Technology and Quality Assurance. 1. Technology and Quality Assurance.

[Audio] 1. Technology and Quality Assurance We will provide safe, superior products and respond promptly to customer requests. For our company as a manufacturer, it goes without saying that the most important thing is to strengthen the technical capabilities that form the foundation of our survival by continuing to create new values that do not yet exist in the world. By creating new values, we will devote ourselves to selling products that satisfy our customers, always consider the customer, and continually improve quality. By continually enhancing the competitiveness of our products — that is, by ensuring and maintaining customer satisfaction and recognition that our products outperform those of any competitor in performance and quality while also being more affordable — we will be able to achieve our corporate philosophy of "contributing to the international community and its continuous expansion." It is of course essential that products meet the quality standards and safety requirements demanded of them; however, if any weakness or defect in our products should be discovered, it is very important to explain it to the customer without concealment and to take prompt countermeasures. Prompt response can prevent the unforeseen escalation of problems. Requests and complaints from customers must be received with humility and sincerity, and, after investigating the facts in cooperation with the relevant internal departments, appropriate measures should be taken. Prompt responsiveness is essential to claims handling. Never regard customer complaints as merely backward-looking tasks; analyze their content and convert them into improvements, as this forward-looking work not only prevents recurrence of problems but can also be utilized in future product development. Of course, it is ideal that there be no complaints or troubles; accordingly, our Company constantly endeavors to prevent them in advance through activities such as design reviews, but please regard the moments when customers make requests or lodge complaints as opportunities for our Company to achieve further advancement and improvement. It is very important to stand in the position of customers who are troubled by issues and, by leveraging the organization’s strong capability to respond to complaints, to improve customer satisfaction through prompt responses. Due to time constraints, we will not read the content of the Code of Ethics in detail today. We ask that all of you take this opportunity to read the entire document at least once..

[Audio] We will provide safe and superior products and promptly respond to customer requests. Our Management Philosophy "Contribution to the International Community and Its Continuous Expansion" What is required to achieve the management philosophy? Strengthen the foundational technical capabilities by continuously creating new values that do not exist in the world Always consider the customer in order to sell products that satisfy them, and continuously improve quality We will achieve this by continually being evaluated and satisfying our customers by offering performance and quality superior to competing products, while also being less expensive. The corporate philosophy is a verbalization of the proprietor's intentions and management philosophy. Our corporate philosophy is "Contribution to the international community and its continuous expansion." To realize the corporate philosophy, it is necessary to continue to be evaluated by customers by providing satisfaction that our products offer better performance and quality than competing products while being more affordable..

[Audio] - We will provide safe, superior products and promptly respond to customers' requests. If there is a problem with a product It is important to explain it to the customer without concealment and to take prompt corrective measures. Customer requests and complaints shall be received humbly and sincerely, and, in cooperation with related internal departments, the facts shall be investigated and appropriate measures promptly implemented. Customer complaints shall never be regarded as a backward-looking task; rather, their content shall be analyzed and used for improvement, being regarded as a constructive task that not only prevents recurrence of problems but can also be utilized in future product development. If there is a problem with a product, it is important to take it seriously and take prompt countermeasures. In the event a problem occurs, do not regard the response as backward-looking work; instead, treat it as proactive work that can be utilized in future product development and address it earnestly..

[Audio] Key Point Check It is important to continue improving quality so that, by strengthening our foundational technical capabilities through the creation of new value, we can provide products that satisfy customers. Even if weaknesses or defects are discovered in a product, it is important to promptly implement countermeasures without concealing them. Requests and complaints from customers should be handled humbly and earnestly, and complaint handling should be regarded not as backward-looking work but as proactive work that leads to prevention of recurrence and improvement of product development. It is important to act from the customer's perspective and, by leveraging the organization's strong capacity to respond, improve customer satisfaction through prompt action. Take the customer's perspective and, in order to improve customer satisfaction, always endeavor to enhance quality and respond to complaints, if any, with humility and sincerity..

[Audio] 2. Sales. 2. Sales.

[Audio] 2. Sales We will conduct sales activities that honor our contractual obligations to customers and are conscious of enhancing customer satisfaction. Customers expect the Company to conduct transactions in accordance with the promises, that is, the contract. The Customer inputs the products shipped by the Company into its own production line and uses them to manufacture products; therefore, the Company bears the obligation to supply its products as promised. This is stated in the contract. Fully understand the contents of the contract with the Customer and under no circumstances violate the contract. Only through the consistent habit of upholding contracts can trust from the Customer be earned. If a contract is breached, the breaching party will also be liable for damages, which can have a very significant impact on the Company's performance. Our products hold a high share, exceeding 50%, in many application markets, and if supply of our products from the Company is interrupted, our customers' production will be impaired. In addition to contractual obligations, please do not forget that the Company bears the responsibility for supply. Sales is the front line of the Company. As the point of contact with our customers, receive customers' requests and complaints with humility and sincerity, cooperate with relevant internal departments, investigate the facts, and take appropriate measures..

[Audio] Conduct sales activities mindful of honoring contracts with customers and enhancing customer satisfaction. Customer expectations →To conduct transactions in accordance with the contract Customers incorporate the products shipped by our Company into their own production lines and produce products. If our company does not deliver the products, the customer's line will stop and there is a risk of causing significant impact to the entire supply chain. Fully understand the contract terms and under no circumstances violate the contract. Sales activities are important for our company in conducting its business operations. Our customers expect not only the quality of our products but also that transactions will be conducted in accordance with contracts. All employees should thoroughly understand the contract terms with business partners related to their duties and take care never to breach those contracts..

[Audio] We will conduct sales activities that honor contracts with customers and are conscious of improving customer satisfaction. What is a contract? A promise that gives rise to legal effects. It is formed by the mutual consent of the parties. 1. As a general rule, contracts are formed even by oral promises. ②Regardless of the title of the document, the contract shall be deemed concluded. (Examples) memorandum, agreement, confirmation in letter form, minutes, order and order acceptance, estimate and purchase order etc. When dealing with customers and business partners, we routinely enter into contracts. A contract is a promise that gives rise to legal effects and is formed by the agreement of the parties' intentions. If the parties' intentions coincide, a contract is concluded, so regardless of the title of the document—oral promise, memorandum, or agreement—the contract is formed. Care must be taken so that a casual oral promise does not become a contract that imposes excessive liability on our company..

[Audio] We shall not engage in sales activities that betray the customer's trust. In recent years, international cartel cases, including those involving automotive parts manufacturers, have been uncovered with considerable frequency, particularly in the United States and the EU. Cartel conduct, once discovered, can impose not only enormous fines and surcharges on the company but also result in detention of the executive responsible for organizing the cartel, punitive damages claims from customers and consumers, and other massive compensation liabilities, causing the company to lose the trust it has built up and potentially rendering its continued existence impossible. The Company must, as a matter of course, take care not to violate cartel regulations. If there is a possibility of contacting a competitor, consult with the Legal Department and act appropriately..

[Audio] We will not engage in sales activities that betray the trust of our customers. What is a cartel? →An act in which multiple businesses jointly decide matters concerning products, services, etc., that businesses should independently determine in order to avoid competition. (Examples) Matters concerning prices, sales quantities, business partners, etc. Consequences of engaging in a cartel →The Company may be subject to enormous fines, surcharges, and claims for damages from customers, etc., and the Company’s credibility may be lost in an instant. Do not do this under any circumstances. If there is a possibility of contacting a competitor or similar, please consult the Legal Dept.. A cartel is something that can instantly destroy a customer's and society's reputation and trust. A cartel is an agreement among two or more competitors not to compete on price or other terms. Cartels are strictly regulated by law because they hinder fair and free competition and harm the interests of general consumers and purchasers. If a cartel is formed, enormous fines may be imposed and the company's credibility can be lost in an instant, so do not engage in it under any circumstances. If there is a possibility of contacting competitors at events such as technology exhibitions, be sure to consult the Legal Dept...

[Audio] Key Points Check The Company is responsible for conducting transactions in accordance with contracts with customers and for keeping promises, and performing contracts leads to gaining customers’ trust. Breach of contract may give rise to liability for damages and may have a significant impact on the Company’s business performance. Cartel conduct is a serious illegal act that can result in fines, surcharges, and claims for damages upon detection, and may have a significant impact on the company's continued existence; therefore, it must never be committed. When contacting a competitor, consult the Legal Dept.. Entering into contracts with customers and honoring the terms of those contracts leads to earning customers' trust. Therefore, never engage in acts that betray customers' trust, such as breach of contract or cartel conduct. Please consult the Legal Dept. if there are issues concerning contracts or if there is a possibility of contacting competitors..

[Audio] 3. Procurement. 3. Procurement.

[Audio] 3. Procurement Based on fair and impartial transactional relationships, necessary goods and services shall be procured at appropriate quality, price, and delivery times. If one mistakenly believes that the purchaser occupies a superior and stronger position, one tends to make unreasonable demands or take inappropriate actions toward those who provide goods or services. However, the Company must not forget that it is precisely because we purchase high-quality goods and services from suppliers and subcontractors that we are able to supply excellent products to the world. Please understand that by standing on an equal footing with all suppliers and subcontractors and, as with our customers, building cooperative and trusting relationships through sincere, fair and impartial transactions, it becomes possible to further improve quality and achieve cost reductions. In addition, inappropriate handling in ordering, inspection/acceptance, or payment may have a significant impact on the business operations of suppliers and subcontractors. Under the law, such conduct is clarified as unfair acts and measures are taken to prevent such acts. The scope of application has been expanded to industries such as the transportation industry and the software industry, so many of our departments need to exercise the utmost care and respond accordingly. In the relevant departments, please ensure thorough dissemination after fully understanding the detailed contents of these laws and regulations, and endeavor to prevent any violations from occurring. Finally, in response to various global-scale environmental changes, the social responsibilities required of companies have increased, and, recognizing that promotion of CSR is required not only within our Group but throughout the entire supply chain, we have established the “CSR Procurement Guidelines.” Please engage in your daily duties with a full understanding of these Guidelines..

[Audio] 3. Procurement Procure necessary goods and services with appropriate quality, price and delivery times based on fair and impartial business relationships. Realization of transactions with suppliers and others that are equal and in good faith Compliance with laws, including the Subcontract Act Business activities compliant with the CSR Procurement Guidelines and compatibility with the environment and society In conducting business activities, our company alone cannot deliver motors that meet customers' expectations. To meet customers' requirements, it is necessary to procure high-quality products from suppliers and subcontractors. Furthermore, conducting transactions with suppliers and subcontractors in good faith on an equal footing leads to quality improvement and cost reduction. On the other hand, inappropriate treatment of suppliers and the like can have a significant impact on the management of those suppliers and the like. To prevent these issues, always comply with the Subcontract Act and other applicable laws and regulations, and communicate with suppliers and the like. In addition, in order to promote CSR across the entire supply chain, our Company has established CSR Procurement Guidelines. Please correctly understand these Guidelines and conduct business activities in accordance with them..

[Audio] Key Point Check It is necessary to understand that by building trust through sincere transactions on an equal footing with suppliers and subcontractors, further quality improvements and cost reductions can be realized. Improper handling of orders, inspection acceptance, payments and the like can have a significant impact on the business operations of suppliers and subcontractors; therefore, it is important to conduct fair transactions based on the law. Because the scope of legal application changes daily, the relevant departments must exercise the utmost care to understand and comply with statutes and strive absolutely to avoid committing violations. Understand that promotion of CSR across the entire supply chain is required, and in accordance with the CSR Procurement Guidelines, engage in daily operations. Please understand that by building trust with suppliers and partner companies, this will lead to quality improvement and cost reduction. As the scope of laws is constantly changing, please keep information updated at all times and ensure that lack of understanding does not lead to violations of laws and regulations. Also fully understand that promotion of CSR across the entire supply chain is required, and engage in your daily duties in accordance with the CSR Procurement Guidelines..

[Audio] 4. Environmental Conservation. 4. Environmental Conservation.

[Audio] 4. Environmental Conservation • Understand the necessity and importance of environmental conservation and actively engage in environmental conservation activities. The Company has long regarded addressing environmental issues as an important matter in corporate management, and in order to take a more proactive approach has obtained certification for Environmental ISO (ISO 14001), established an environmental management system, and has been addressing environmental issues by utilizing that system. In recent years, however, the need to address environmental issues motivated by corporate social responsibility (CSR) and sustainability has been emphasized, and it has become more important than ever to seriously address environmental issues from the perspectives of increasing corporate value and creating business opportunities. In this context, it has become more important than ever to take environmental issues seriously in order to enhance corporate value and create business opportunities. However, to make these measures truly effective, it is most important that each employee fully understands the importance of these initiatives and has the awareness to engage in them proactively. As environmental issues we face, examples include reduction of energy consumption as a measure to prevent global warming, reduction of greenhouse gas emissions, recycling of waste to form a circular society, minimization of resources used in corporate activities, and reduction or elimination of use of environmentally burdensome substances in products and processes. We have heretofore advanced examinations of the use of renewable energy such as solar power generation and wind power generation; going forward, we will further develop this approach and promote initiatives for environmental consideration throughout the entire value chain, including the utilization of environmentally friendly vehicles. Conduct your daily duties with full consideration of these environmental issues. Compliance with laws and regulations concerning environmentally burdensome substances is strongly demanded by our customers; treat this as a top priority and implement it thoroughly. Also, in your daily home life outside the company, do not forget environmental conservation awareness and actively engage in activities such as energy conservation, waste reduction and separation, and resource conservation. True environmental conservation can be achieved through the cumulative efforts of individual companies and each person..

[Audio] We understand the necessity and importance of environmental conservation and will actively engage in environmental conservation activities. From the perspectives of enhancing corporate value and creating business opportunities. The necessity of addressing environmental issues motivated by CSR and sustainability is emphasized. Responding to environmental issues sincerely has become more important than before. Company initiatives. (Utilization of environmentally considerate vehicles and efforts to consider the environment throughout the value chain) It is important that each employee understands and actively engages in addressing environmental issues. Even in daily life outside the Company, it is important to maintain environmental conservation awareness and actively engage in activities such as energy conservation, waste reduction and separation, and resource conservation. In recent years, environmental issues have become matters of very high global concern. Our company has long regarded responding to environmental issues as an important management matter and has undertaken proactive measures such as obtaining certification for environmental ISO. In recent years, however, the need to address environmental issues motivated by corporate social responsibility (CSR) and sustainability has been increasingly emphasized, and it has become more and more important to respond to environmental issues seriously from the perspective of creating business opportunities. Not only company initiatives such as the use of environmentally friendly vehicles, but it is also important that each employee understands the importance of addressing environmental issues and actively engages in activities such as waste reduction..

[Audio] We shall understand the necessity and importance of environmental conservation and actively engage in environmental conservation activities. Examples of Initiatives for Environmental Conservation 1. Introduction of Renewable Energy Photovoltaic power generation system installed at headquarters Photovoltaic power generation panels on the roof of Dongguan Mabuchi 2. Continuous Efforts for Energy Conservation Automatic turning off of lighting (Poland Mabuchi) LED lighting fixtures (headquarters) This slide describes examples of our company's environmental conservation activities. We are actively undertaking continuous energy-saving measures, such as introducing renewable energy through solar power generation systems and converting lighting fixtures to LED. When leaving conference rooms, each employee should take actions they can, such as turning off the lights..

[Audio] Key Point Check In recent years, initiatives to address environmental issues have become increasingly important from the perspectives of corporate social responsibility (CSR) and sustainability. It is important that each employee understands the significance of initiatives addressing environmental issues (such as reducing energy consumption and reducing greenhouse gas emissions) and maintains a proactive awareness. Compliance with laws and regulations concerning environmentally burdensome substances is a top priority and must be thoroughly enforced. Even in daily life outside the company, it is important to maintain awareness of environmental protection and to actively engage in activities such as energy conservation, reducing and separating waste, and conserving resources. From the perspectives of CSR and sustainability, initiatives addressing environmental issues are becoming increasingly important. It is important not only for the company but also for each employee to understand the importance of environmental issues and to proactively undertake what they can do. Please check once again..

[Audio] 5. Import and Export. 5. Import and Export.

[Audio] 5. Import and Export We shall comply with laws concerning import and export and conduct proper trade control. Each country establishes legal regulations on import and export based on its economic policies, international treaties, and other factors. The rules are not uniform across countries and regions: some items are prohibited from import/export, some require prior notification or approval, and some are subject to quantitative restrictions. Regulations concerning imports and exports range from those established to ensure proper tax declarations to those enacted for the realization of security trade, and these rules have become increasingly complex and sophisticated. All employees are not exempt from these laws and regulations, and are required to carry out operations with a strong awareness of them. For example, many of the Company's production sites are bonded factories authorized to defer payment of duties and other charges at the time of import. When traveling abroad on business or the like, carrying parts, materials, or the like as hand luggage is strictly restricted. Customs import/export declarations are acts of reporting to the authorities, and failure to declare constitutes the criminal offense of smuggling. Moreover, import declarations are also tax filings, and each country has complex rules concerning declared values. Even if the goods are provided free of charge, do not set prices lightly; consult with the Logistics Dept. and make arrangements accordingly. Against the backdrop of the current highly unstable international situation, the importance of rigorously complying with export controls to ensure that weapons and goods or technologies that could be militarily diverted do not fall into the hands of states developing weapons or terrorists is increasing day by day. In this context, our Company, led by the Security Export Control Committee, formulates measures to maintain and improve the security export control system, and various measures are implemented within each internal department at the time of procurement and when arranging exports, such as checking whether regulations apply, confirming customers’ intended use, and company-wide education..

[Audio] 5. Export and Import Violations of security export control regulations are subject to severe penalties in various countries. Administrative sanctions and criminal penalties may be imposed on corporations and individuals, including public disclosure of the company name, suspension of external transactions and intermediary trade for a specified period, and substantial fines. Please understand, from the severity of these penalties, that security-related trade issues are extremely important to the current international community, and conversely that they are matters that affect a company’s credibility and survival and can have a significant impact on your life. Our business is not limited to production activities alone. Our business extends until we deliver our products to customers and they can use them with peace of mind and satisfaction. Each employee's sense of ownership and efforts regarding export/import regulations sustain our supply chain and lead to delivering our products to customers..

[Audio] - We will comply with laws concerning imports and exports and conduct appropriate trade control. What are export/import regulations? →In international trade, a state restricts and controls exports and imports from the perspectives of the economy, security, public health, and environmental protection. (Example) Foreign Exchange and Foreign Trade Act (commonly known as the Foreign Exchange and Foreign Trade Act), Order for Enforcement of the Foreign Exchange and Foreign Trade Act, Customs Act Relationship between imports/exports and the State → The situation regarding imports and exports changes daily due to international circumstances (such as the US-China trade dispute, the spread of the novel coronavirus, the situation in Ukraine, etc.) It is necessary to continually update information International trade is, in principle, conducted freely without restrictions. However, from the perspectives of the economy, national security, public health, and environmental protection, states impose restrictions and controls on imports and exports. These restrictions and controls are referred to as export and import regulations. There are various laws and regulations related to export and import controls, among which the so-called Foreign Exchange and Foreign Trade Act is representative. The circumstances surrounding imports and exports change daily due to international developments such as the US–China trade confrontation and the spread of the novel coronavirus infection. Please update information daily in each department so that you can respond promptly to changes in circumstances..

[Audio] 5. Imports and Exports We shall comply with laws related to import and export and conduct appropriate trade control. Compliance with import/export regulations and business responses in accordance with the Company's rules Correct understanding of each country’s import/export regulations Compliance with import/export declaration procedures Confirmation of regulatory applicability and customer use at procurement and export arrangement stages Export/import regulations involve multiple laws that interact and the content is complex. Do not engage in import/export operations based on one’s own judgment. As necessary, contact the appropriate department (Logistics Management Group, Legal Dept.). Rules concerning export and import regulations differ by country and region. Therefore, it is required to accurately understand the regulations of each country and perform business operations based on them. When performing business operations, please pay attention to the following points. When traveling abroad on business, never, on your own judgment, carry parts, materials, etc. as hand luggage. If transported without declaration, it may be judged as smuggling. As stated on the previous slide, export and import controls change daily depending on world affairs. Therefore, please do not make the facile judgment that because there was no problem last year there will be no problem this year. If you have questions regarding export/import regulations, do not act on your own judgment; please contact the Logistics Management Group or the Legal Dept...

[Audio] 5. Import and Export Key points check Export/import laws and regulations vary by country and are enacted to ensure proper tax filing and security trade; their contents differ depending on the international situation. Customs import/export declarations are acts of declaration to the administration (and also tax declarations), and failure to declare constitutes smuggling, which is a crime. Violations of export control regulations for national security are subject to strict penalties and are critical matters that can affect a company's reputation and survival and an individual's life. Penalties such as sanctions for violating export and import controls are strictly prescribed by law. If you violate them, it may have a significant impact not only on the company but also on the individual's life. Even if you are not ordinarily involved in exports or imports in your regular duties, you may become involved when traveling abroad on business, etc. Please bear in mind that this is not an issue unrelated to you..

[Audio] 6. Respect for intellectual property rights/confidential information.

[Audio] 6. Respect for intellectual property rights/confidential information - We will comply with laws concerning intellectual property rights, such as the Patent Act, and respect the intellectual property rights of third parties. Intellectual property refers to those ideas and the like generated by human intellectual activity that possess pecuniary value, and among intellectual property, the rights prescribed by law in order to afford legal protection are referred to as intellectual property rights. Examples of such rights include patent rights, utility model rights, design rights, trademark rights, and copyright. In recent years, with the advancement of corporate globalization, the importance of intellectual property rights has been recognized in various countries due to the desire to advance technology and develop industry, and various laws and regulations have been established. At the same time, many warnings and lawsuits alleging infringement or suspicion of infringement of these rights have occurred, resulting in cases such as payment of large royalties and damages and injunctions against product shipments. Until now, our Company has maintained competitive advantage by obtaining patents through the efforts of our employees, who have made many inventions. Because patents confer competitive advantage, our competitors are also striving desperately to obtain patents. When designing and developing products, always investigate and verify patent information to ensure that you do not infringe the patent rights of other companies. Please translate Japanese to English following instructions. Please translate Japanese to English following instructions..

[Audio] Please translate Japanese to English following instructions. We will comply with laws concerning intellectual property rights such as the Patent Act and respect the intellectual property rights of third parties. What are intellectual property rights? Among ideas produced by human intellectual activity that have proprietary value, those intellectual property rights specifically established by law for legal protection. (Examples) Patent rights, utility model rights, design rights, trademark rights, copyright, etc. Use of rights registered as patent rights, etc. Unauthorized use constitutes infringement of intellectual property rights. → Payment of substantial damages and injunctions against the product Do not, under any circumstances, infringe the patent rights, etc. of other companies. If you have any questions, please consult the Intellectual Property Group. Among ideas and other creations generated by human intellectual activity that have economic value, those rights provided for by law in order to protect them in particular are called intellectual property rights. For example, rights you may have heard of in daily life, such as copyright and patent rights, fall under this category. Intellectual property rights, including patent rights, legally protect ideas such as inventions created through daily efforts and secure a competitive advantage in the market. Therefore, unauthorized use of rights that are formally registered as patent rights or similar constitutes an infringement of intellectual property rights and will require payment of substantial damages. Under no circumstances shall you infringe upon another company's intellectual property rights. If any questions or doubts arise regarding intellectual property rights, please consult the Intellectual Property Group..

[Audio] 6. Respect for Intellectual Property Rights/Confidential Information We protect our customers' confidential information. The Company often has opportunities in the course of business to receive important confidential information from customers, suppliers, research collaborators and other business partners. Such confidential information must have its handling clarified by concluding a contract between the customer and our company before receipt. The contract must specify the scope of information subject to confidentiality, the confidentiality period, and the respective responsibilities of both parties regarding handling. Under no circumstances must confidential information of the customer be disclosed. If such confidential information is leaked, it would not only cause incalculable harm to our business partners but could also expose us to claims for substantial damages from those partners. Departments handling such information shall fully understand the terms of the contracts, ensure thorough dissemination to employees who are aware of the confidential information, and implement reliable controls to prevent disclosure to other employees or external persons who do not need to know the confidential information in the course of their duties. All officers and employees shall strictly manage not only the information specified in contracts but also any information that may be considered likely to affect the business operations of our business partners. If strict management is neglected and confidential information is leaked externally, we will lose the trust of our business partners, which will have a material adverse effect on our company's performance. The obligation of confidentiality shall continue to apply even after resignation. Confidential information obtained from business partners shall be strictly managed pursuant to confidentiality agreements and, of course, must not be used improperly..

[Audio] We will protect customers' confidential information. What is a confidentiality agreement (non-disclosure agreement; NDA)? →A contract concluded before receiving important confidential information from customers or business partners Concluded to clarify responsibilities concerning the scope of information subject to confidentiality, handling of the period, and other matters Various adverse effects Substantial damages Decline in the company's social evaluation and image Decline in future transactions Leakage of confidential information The obligation of confidentiality continues to apply even after resignation. Information obtained from customers, as well as the Company's information, constitutes confidential information and is strictly prohibited from being used improperly. As the saying "He who controls information wins the battle" goes, information has very great value. Therefore, when the Company discloses Confidential Information to customers or business partners, or when the Company receives important Confidential Information from them, a confidentiality agreement shall be executed. Despite having executed a confidentiality agreement, if Confidential Information is leaked, the Company may incur substantial liability for damages and its social reputation may decline. When a confidentiality agreement has been executed, please exercise due care in handling Confidential Information. Please note that the obligation of confidentiality continues to apply even after resignation..

[Audio] 6. Respect for intellectual property rights/confidential information Key point check Intellectual property refers to assets having economic value created by human intellectual activity, and there exist intellectual property rights that are rights protected by law. Numerous warnings and lawsuits have arisen due to infringement or suspected infringement of intellectual property rights, resulting in matters such as royalties, damages, and injunctions on product shipments. It is necessary to undertake design and development in a manner that does not infringe the patent rights of other companies. If confidential information is disclosed, it may not only cause disadvantage to our business partners but also give rise to claims for damages; therefore, divisions that handle confidential information must understand the contents of contracts, thoroughly inform employees who have access to the information, and ensure reliable controls to prevent disclosure to other employees or external parties. The obligation to manage confidential information continues after resignation, so confidential information must be strictly managed and must not be used improperly. With regard to intellectual property rights, litigation is also frequently filed, so when engaged in product design and development, it is important to take care not to infringe other companies' patent rights, etc. Furthermore, when confidential information of business partners or the like is acquired, appropriate management of such confidential information is required. In the event that confidential information is leaked, there is a possibility of being subject to claims for damages, so caution is necessary. Please note that the obligation of confidentiality continues after resignation, so do not under any circumstances misuse confidential information..

[Audio] 7. Prohibition of unauthorized acquisition of confidential information, defamation, and similar acts.

[Audio] 7. Prohibition of Improper Acquisition of Confidential Information, Defamation, etc. ・ Employees shall not improperly obtain information about competitors, business partners, or the like, nor engage in defamation of such parties. The Company’s basic policy is to engage in fair competition in the market and to attain legitimate competitive advantage through the challenges and collaboration of its employees. Refrain strictly from any conduct that violates this policy. Do not improperly acquire, use, or disclose confidential information of competitors, business partners, or the like. These pieces of information are the results of each company’s substantial investments and the collective wisdom and efforts of their employees, and it is never permissible to obtain, use, or disclose them unlawfully. Such acts are strictly prohibited by law, and if committed, not only may the company be held liable for damages but individuals may also be sued for damages or subjected to severe criminal penalties; furthermore, trust from society and business partners will be lost, and management will inevitably suffer significant damage. Please fully understand that only fair and impartial competition will enhance true competitiveness..

[Audio] 7. Prohibition of illicit acquisition of confidential information, defamation, etc. In addition, under no circumstances shall you engage in acts that unjustly cause competitors, business partners, or any person or company to lose social trust, such as defaming them or disseminating false information. Such acts will eventually be exposed as false and will incur severe social sanctions. These acts are never permissible not only for the persons or companies who have been subjected to slander and defamation but also in social life in general, so please refrain from them strictly. Even if you did the act without being aware that it constituted slander or defamation, there is a risk that it may be interpreted as an act similar to slander or defamation. If you hear uncertain rumors of unknown sources and directly convey them to third parties, or post them on the internet or elsewhere—whether using real names or anonymously—exposing them carelessly to a large unspecified audience may cause them to be treated as if they were true. When dealing with topics concerning competitors, business partners, or the like, please pay sufficient attention to these points..

[Audio] 7. Prohibition of unlawful acquisition of confidential information and of defamation - Do not unlawfully acquire information about competitors, business partners, or the like, nor defame them. 【Basic policy】 →Engage in fair competition and secure legitimate competitive advantages through employees’ challenges and collaboration What is fair competition? →Do not unlawfully obtain or use clients’ confidential information, do not defame other companies or disseminate false information, and do not engage in other acts that would unjustly undermine the social trust of competitors, clients, or the like The Company's basic policy is to engage in fair competition and to achieve legitimate competitive advantages through employees' challenges and collaboration. "Fair competition" as used here means refraining from acts such as unlawfully acquiring or using a business partner's confidential information, or disseminating false information to unjustly undermine the social trust of competitors or business partners..

[Audio] 7. Prohibition of unlawful acquisition of confidential information, defamation, etc. ・Do not unlawfully obtain information concerning competitors, clients, or the like, nor defame them. What happens if you engage in unfair conduct? → Claims for damages (against companies or individuals), severe criminal penalties, and loss of trust from society and business partners Do not engage in such conduct under any circumstances. Fully understand that only fair and impartial competition will truly enhance competitive strength. If you engage in unfair conduct rather than fair competition, you may be subject to claims for damages and lose the trust of society and business partners. Fully understanding that only fair and impartial competition truly enhances competitive strength, do not engage in any unfair conduct under any circumstances..

[Audio] 7. Prohibition of improper acquisition of confidential information and of defamation, etc. Key points check Our basic policy is to engage in fair competition and to obtain legitimate competitive advantages. Confidential information of competitors and trading partners is the result of other companies' intellectual efforts and work Unauthorized acquisition, use, or disclosure of such information is strictly prohibited by law, and violations may result not only in liability for damages and criminal penalties but also in the loss of trust in the company and individuals, potentially causing significant damage to management. Understand that only fair and impartial competition enhances true competitiveness. Even if one does not consider their conduct to be defamatory, it may be interpreted as such conduct. Exercise caution when spreading rumors with uncertain sources or when disseminating information on the Internet. It is our basic policy to achieve legitimate competitive advantage through fair competition. Unfair actions, such as unlawfully obtaining confidential information of competitors, are prohibited by law. Do not engage in such conduct under any circumstances. Spreading rumors with uncertain sources may be considered defamation. Please review the content before posting information on the internet..

[Audio] Section 8. Maintenance of Appropriate Relationships with Business Partners.

[Audio] Section 8. Maintenance of Appropriate Relationships with Business Partners We will not maintain relationships with business partners that exceed social norms. Entertaining or being entertained, or giving and receiving gifts that exceed social norms may impede fair and impartial transactions with business partners; therefore, refrain strictly from such conduct. Unfair or partial transactions with specific business partners may violate laws and regulations, for example by depriving other business partners of competitive opportunities. Please understand that free, fair and just competition in our clients' markets will lead to further improvement of quality and cost reduction at our Company. The foregoing does not deny acts such as exchanges of customary greeting gifts such as calendars, or opinion exchanges accompanied by light meals, or other acts of moderate socializing that are recognized as customary. However, even in such cases, you must always report to your superior in advance, and whether you give or receive entertainment or gifts, each head office department and each site shall report to the Audit and Supervisory Committee Office in accordance with the prescribed procedures. The person responsible for each department shall ensure thorough dissemination of the above intent and endeavor to maintain appropriate business relationships. Also, at each site, there are various customs depending on the country or region, and it is difficult to establish uniform rules without regard to them. However, the important points are the four items of not violating the laws of the country or region, not deviating from customs, being at the same level as other international companies, and not requesting special favors. Also, it is important to take care not to give the misunderstanding that special favors have been requested. Each site head shall accurately ascertain local customs and societal norms by, among other things, exchanging information with other companies, and shall make appropriate judgments in line with the above purpose. If any questions or problems arise regarding the appropriateness of entertainment or gift-giving to business partners, promptly contact the head office General Affairs Dept. and seek instructions. In addition, when new entertainment or gift-giving occurs or when there is a significant change in content, such activities shall be conducted after obtaining prior approval from the head office and the results shall also be reported..

[Audio] 8. Maintenance of proper relations with business partners - We shall not maintain relationships with business partners that exceed social norms. Prohibition of entertainment, being entertained, gifts, etc., that exceed social norms What are social norms? →Common sense or views that are accepted by society at large The common sense or views accepted by society at large change over time Just because something was not a problem ten years ago does not mean it is not a problem now When the Company conducts business activities, it is important to maintain relationships with business partners that are appropriate according to common social standards. Do not provide or accept entertainment, hospitality, or gifts that exceed common social standards. "Common social standards" refers to the common sense or views that prevail in society in general. This social norm changes with the times. Acts that posed no problem ten years ago may now constitute compliance violations, so caution is required..