Relationships with Suppliers

• Basic Approach
• CSR Procurement
• Participation in Supply Chain Sectional Meeting
• Promotion of Local Procurement
• Supplier Selection Policy
• Compliance with Subcontract Act of Japan
• Green Procurement
• Response to Responsible Minerals Procurement

Basic Approach

The MinebeaMitsumi group's business is supported by relationships with numerous suppliers. Our group has adopted the "Basic Procurement Policies" and building a healthy partnership based on these. In order to promote CSR throughout our supply chain, we distribute the "MinebeaMitsumi Group CSR Procurement Guidelines*" to our suppliers and are striving to facilitate their understanding and cooperation.
We are creating a framework for global CSR procurement in order to promote CSR throughout our global supply chain.

Basic Procurement Policies (move to company site)

CSR Procurement (move to company site)

CSR Procurement

MinebeaMitsumi Group CSR Procurement Guidelines

Considering the global scope of our group's business activities, we believe it is important to promote CSR throughout our supply chain. In March 2012, we took steps to establish a framework for CSR procurement with the formulation of the "MinebeaMitsumi Group CSR Procurement Guidelines" based on the "MinebeaMitsumi Group Code of Conduct^*."

The "MinebeaMitsumi Group CSR Procurement Guidelines" is available in Japanese, English, and Chinese version and revised as necessary. When the Guidelines are revised, we distribute it to suppliers around the world and ask for their understandings and cooperation again.

MinebeaMitsumi Group Code of Conduct (move to company site)

CSR Procurement (move to company site)

Operation of CSR Procurement

We established the "MinebeaMitsumi Group CSR Procurement Self-assessment Checklist"^* in 2013 and have asked our suppliers to complete it. Questions on the checklist are divided into the five categories of "General Promotion of CSR," "Human Rights and Labor," "Health and Safety," "Environmental Conservation," and "Ethical Management" to assess risks in the supply chain. In addition to providing feedback of the results to our suppliers, we investigate the cause of any issues when the results do not meet with our requirement, and after consultation with the supplier, we prepare for specific countermeasures. By communicating individually, we are able to confirm the subsequent improvement situation in detail.
To date, there have been no major compliance violations that conflict with the "MinebeaMitsumi Group CSR Procurement Guidelines."

Before starting business with our suppliers, we confirm:

• whether we can do business continuously
• whether they can agree and cooperate with us on our CSR Procurement Guidelines.
• whether they can comply with our Green Procurement Standard, etc.

After confirmation, we conclude a basic transaction agreement and aim to improve CSR activities with our suppliers.
In order to promote initiatives across the entire supply chain, we make requests similar to those in our CSR Procurement Guidelines to our suppliers' supply chains, and ask them to confirm the status as appropriate.

Expansion of CSR Procurement

Considering the human rights movements in the world and for promoting our company's policy of "Responsible Procurement," we acquired agreements on the following three items regarding "Human Rights and Labor" from 4,698 suppliers around the world.
From 2021, it is essential for us to obtain a written pledge from a supplier to start business. In FY2023, 177 new suppliers submitted the pledge.

1. A promise to comply with the requirements set forth under MinebeaMitsumi's "CSR Procurement Guidelines":
   (1) Freely Chosen Employment, (2) Prohibition of Child Labor, (3) Prohibition of Discrimination,
   (4) Prohibition of Harsh or Inhumane Treatment, (5) Minimum Wages, (6) Working Hours, and
   (7) Freedom of Association
2. Request that your supply chain comply with the "CSR Procurement Guidelines" established by our company.
3. There are no violations by your company or your supply chains, and if any violations are discovered, they must be reported to us without delay.

Activities on CSR Procurement

In 2023, we reviewed and revised the questions regarding "General Promotion of CSR" in the "MinebeaMitsumi Group CSR Procurement Self-Assessment Checklist" to grasp further detailed status of CSR promotion.
With this revised latest version of the "MinebeaMitsumi Group CSR Procurement Self-Assessment Checklist," the survey was conducted among 567 major suppliers of our 11 Japanese and overseas bases with a focus on bases that have newly become part of our Group through business integration, and gained response rate of 100%.
With the reviewing of their answers, 149 companies were identified to be improved. We will continue monitoring their progress periodically until these improvement measures are completed.

We continued to monitor 9 suppliers of U-Shin in Japan after we conducted the survey and requested to take improvement measures in FY2021, we confirmed that the implementation of improvement measures were completed at 7 suppliers in FY2022, and 2 suppliers in FY2023.

In-house Training Regarding CSR Procurement

We have our own training program regarding CSR procurement that all procurement members in all of group companies in Japan are required to take the training every year. Taking comprehension check is necessary after the training and the full score is required to complete the program.
In FY2023, all 475 procurement members completed the program.

Continuous Promotion of CSR Procurement

Participation in Supply Chain Sectional Meeting

We express our support to the United Nations Global Compact (hereinafter "UNGC") and participate in the sectional meeting regarding supply chain hosted by GCNJ (Global Compact Network Japan) that is a Japanese external body of the UNGC.
We continue to strive for fair transactions with our suppliers and promote CSR activities in the supply chain.

Promotion of Local Procurement

We promote local procurement to realize "Work in harmony with the local community" and "Promote and contribute to global society" defined in our company credo "The Five Principles" through our procurement activities.
For example, our purchase from local suppliers exceeds 50% in Thai Factory, which is our largest production site.

Supplier Selection Policy

Whenever our group initiates a relationship with a new supplier, we ask them to agree with our group's approach to materials procurement and we check new suppliers in accordance with certification standards to ensure compliance with our Basic Procurement Policies. Specifically, we confirm whether suppliers: can conduct business with us in a stable and continuous manner, can comply with our group's guidelines and standards on chemical substances in products, and can agree with "MinebeaMitsumi Group CSR Procurement Guidelines." If needed, we conduct the audit of suppliers’ production facilities.

CSR Procurement (move to company site)

Compliance with Subcontract Act of Japan

To ensure the establishment of fair and equitable trading relations with suppliers, our business sites implement self-auditing and conduct training on the Act annually.

We conduct self-audits to confirm the situation and strive to improve. In FY2023, we implemented the self-auditing at our 23 business sites.
Furthermore, in FY2023 we conducted the training online with 2,591 participants, and all of the participants passed the comprehension test.

Green Procurement

We have established and revised the guidelines and standards on chemical substances in products to ensure compliance with countries' laws and directives on chemical substances, to improve the level of customer satisfaction, and to reduce the use of substances having an environmental impact. Under these guidelines, we request our suppliers to provide products (raw materials, parts, components, and packaging materials) that are free of hazardous substances, and also to submit safety certifications, reports of analysis results, and other similar documentation.

Green Procurement (Environmental Activities) (move to company site)

Response to Responsible Minerals Procurement

In response to the disclosure rules of the Financial Regulatory Reform Act adopted by the U.S. Securities and Exchange Commission in August 2012, which requiring companies to disclose the use of conflict minerals from Democratic Republic of the Congo and its neighboring nations, we formulated the "MinebeaMitsumi Group Policy on Conflict Minerals*" in October 2012 and adding a section of "response to conflict minerals" to the "MinebeaMitsumi Group CSR Procurement Guidelines." Afterwards, our group reviewed the Guidelines in consideration of social trend regarding responsible minerals procurement in recent years. We request our suppliers to promote initiatives toward the non-use of tantalum, tin, tungsten, and gold and other minerals such as cobalt that are associated with conflict and CSR risks.

Additionally, we continue to respond to research requests from customers by providing a response using our research database.

CSR Procurement (move to company site)

* These names were changed from the "Minebea Group Code of Conduct," "Minebea Group CSR Procurement Guidelines," "Minebea Group CSR Procurement Self-Assessment Checklist," and "Minebea Group Policy on Conflict Minerals" in January 2017.

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