Having passed the milestone of half a century since our founding,

in 2018 Nifco celebrated its 51st year in business. To achieve

sustainable growth and evolution for the coming 50 years, we

will work to see that each and every employee changes the way

he or she thinks. We want to internalize the kind of brand value

where Nifco ideas excite the world, evolving to the point hearing

our name makes people in the world brim with anticipation. And

we came up with a new corporate philosophy, new corporate logo,

and new slogan, which embody this strong will and passion.

Encapsulated in this new slogan is our commitment to Nifco’s

stakeholders. Our mission is to impart a sense of amazement

and joy to the world, the kind where people exclaim, “Wow, I

really wasn’t expecting that!” The new slogan “WOWING THE

WORLD” exemplifies these strong convictions.

Editing PolicyThe Susta inabi l i ty Po l icy is an or ig ina l document developed within the Nifco Group around priority CSR themes. It is available on the Web. In editing the document, we have striven to exhaustively cover information that should be disclosed to all of the stakeholders who have an interest in the businesses of the Nifco Group.

・Applicable ScopeHead Office (Yokosuka)Sagamihara Engineering CenterNagoya Plant

・Applicable PeriodApril 2017 to March 2018

The ideas and technological innovations that drive our businesses

Industrial Plastic Parts and Components BusinessThe products that we offer range from our main line of business, namely products for automotive exteriors, interiors, engines, fuel systems, and electrical components, to products in our consumer electronics, office automation, household equipment, and fashion and sports hardware businesses. Nifco’s strengths are its ideas, technological expertise, and development capabilities. Our industrial fasteners, in which we enjoy about a 70% market share, help companies in the automotive and consumer electronics industries to curb their costs and improve their production lines. Our fuel system products have been very well-received by clients and customers as products that comply with environmental regulations. Furthermore, we are in the process of diversifying our businesses by, for example, applying our wealth of technological knowhow to seismic dampers for homes and buckles for fashion and sports products.

Bed and Furniture BusinessNifco’s consolidated subsidiary Simmons Co., Ltd. and its related affiliates manufacture and sell beds and import and sell furniture in Japan and other Asian countries.

Bed and Furniture Business¥25,121 million

Industrial Plastic Parts and Components Business¥246,046 million

Sales byBusiness Type

(FY2017)

Contents

Top Message・・・・・・・・・・・・・・・・・・・・・・2

Environmental Management Is a Driver of Growth・・・・・・・・・・・3

Environmental Management・・・4

Nifco’s Environmental Policies・・・・・・・・・・・・・・・・・・・・・・・・・・・・4

Frameworks to Promote Our Environmental Policies・・・5

ISO 14001・・・・・・・・・・・・・・・・・・・・・・・・5

FY2017 Activities and Results・・・・・・・・・・6

Low-Carbon Society Initiatives・・・・・・・・・・・・・・・・・・・・・・・・7

Recycling-base Society Initiatives・・・・・・・・・・・・・・・・・・・・10

Promoting Environmental Management・・・・・・・・・・・・・・・・12

Social ContributionInitiatives・・・・・・・・・・・・ ・・・・・・・・・・14

Environment-Related Data・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・15

Status of ISO 14001 Certification・・・・・・・・・・・・・・・・・・・15

Environmental Accounting・・・・・・・・・・・・・・・・・・・・16

Main Environmental Laws and Regulations that Apply・・・・・・・・・・・・・・・・・・・17

General Info about the Company・・・・・・・・・・・・・18

Company Overview・・・・・・・・・18

Business Network・・・・・・・・・・・・18

1

Since our founding, one of our core management principles has always been to ascertain what our customers want as quickly as possible, respond to those needs, and prosper together with our customers.

In recent years, the problems of global warming and energy have become so important that the United Nations have made them one of their 17 Sustainable Development Goals (SDGs). These issues and targets are unavoidable in corporate management as well. Nifco has so far tried to strike a balance between attention to the global environment with the needs of society by responding to a broad range of customer needs in the domestic and foreign automotive, consumer electronics, household equipment, home appliance, fashion and sports hardware industries, and others.

We have continued to engage in business in a manner that is attentive to global environmental concerns. This means that we continue to design, develop, procure the raw materials for, produce, and distribute of products intended to conserve resources and energy and to prevent pollution of the environment. In addition, with compliance to laws, regulations, and corporate ethics at the core of our values, we are engaged in efforts to improve workplace tasks, reduce CO2 emissions, and recirculate resources

in cooperation with our suppliers. We also dedicate considerable resources to providing that meet in-house standards that thoroughly encompass all relevant laws and regulations as well as the desired specifications of our customers. At the same time, efforts are proceeding at our various business offices and centers as well. In fact, for three years in a row we have been ranked as an S Class business for excellence in energy saving in the “Business Operator Classification Evaluation System” that is part of the energy-saving policy framework of the Ministry of Economy, Trade and Industry's Agency for Natural Resources and Energy. (See p.9)

In 2018, Ni fco marked i ts 51st anniversary. To give shape to our commitments for this new phase in our history, we have established a new corporate philosophy.

We have also released the 2nd-stage targets for our Mid to long term management plan “Nifco Innovation Plan 2020”

We will continue our commitment to meeting the needs and wishes of our customers and other stakeholders. At the same time, we aim to be a company that is trusted by society at large, and will continue to make bold advancements under the slogan “WOWING THE WORLD.”

Toshiyuki YamamotoPresident & CEO

Top Message

Reliably meeting the needs of society, markets, and our customers in an environmentally-conscious manner

MissionN i f c o g e n e r a t e s i d e a s a n d cultivates technology to turn your expectations into excitement.

VisionDriving change with growing inventiveness

Values-This is Nifco-Be proactive and break throughCommunicate and collaborateChallenge and innovate

1. Driving further growth of our existing technologies and fostering innovation with new technologies to enhance new product development

2. Focusing on growth markets and growth regions to cultivate markets that leverage Nifco’s strengths

3 . I n v e s t i n g m a n a g e m e n t resources focused on achieving an effective return on invested capital with emphasis on ESG (environmental, social and governance)

4. Establishing a management base in line with company growth

2

These are in ternat iona l ta rgets adopted at the 2015 United Nations summit to be achieved by 2030. They consist of 17 goals and targets in 169 categories to be met in order to achieve a sustainable future. Nifco cont inues to contr ibute to these Sustainable Development Goals.

Nifco’s SDGs Initiatives

Good health and well-being

● Sponsorship of Ultra-Trail Mt. Fuji, Hakuba International Trails, and other such events

● Compl iance w i th laws and regulations regarding pollution

Responsible consumption and production

● Reducing waste in manufacturing processes● Using sprue and f lashing that has been

pulverized in a granulating machine for use as recycled material

● Proper management through the Environmental Substances of Concern Control System (N-SOC)

Quality education

● Cultivating global human resources through a trainee program in which people are exposed to different cultures and value systems

Climate action

● Reducing energy in production processes● Contr ibuting to better fuel eff iciency

in automobiles by offering lightweight alternatives to metal products

Clean water and sanitation

● Converting the cooling towers in our mold cooling systems from an open design to a sealed design, greatly reducing the amount of water used

Partnerships for the goals

● In conjunction with apparel makers, pushing for the production of cord locks made of nylon manufactured from pelletized fishnets recovered in Chile

Industry, innovation and infrastructure

● Efforts at converting the Sagamihara Engineering Center into a “smart factory”

Environmental Management Is a Driver of Growth

We began growing globally in 1983 and subsequently expanded into North America, Europe, and Asia. As a result of these efforts, by the fiscal term ending in March 2018, overseas sales volume accounted for about 70% of our total. As we promote our global businesses, we are increasingly directing our attention to the trends towards addressing environmental problems―particularly in Europe―rooted in the awareness that environmental problems are issues common to the all of humanity.

At the same time, our corporate values are such that we strive to get good products at inexpensive prices to customers in as timely a manner as we can. To accomplish these goals, our mission is to work at ISO 14001 initiatives, to comply with

Energy Saving Act, and to steadily p romote energy conser va t ion efforts. We are confident that by cutting down on waste materials by reducing defective products and offering lightweight products (good products), by cutting down on energy consumption via highly efficient production (inexpensive), by reducing surplus stock and transport (timely), and by making o ther such improvements, we con t r ibu t ing to env i ronmenta l conservation. In order to implement these efforts steadily but surely, we have put in place mechanisms so that people performing all kinds of tasks in our businesses do them in close cooperation. In addition, we have implemented PDCA cycles in accordance with environmental management systems. We also

mandate month ly repor t s and conduct biannual reviews of energy savings based on yearly plans.

To c o n t i n u e o u r g r o w t h i n a sustainable way going forward, we have incorporated environmental, soc ia l and governance (ESG) management into our Mid to long term management plan. So far we have worked to reduce CO2

emissions by developing products that are lighter and by improving p r o duc t i on e f f i c i enc y, bu t t o con t r ibu te to the Sus ta inab le Development Goals, Nifco shall decide on priority issues it should address and implement the right measures to address them.

As a global company, we will take action on environmental issues andcontribute to the Sustainable Development Goals (SDGs).

Front row from left:Masaharu Shibao　Director & Executive Managing OfficerToshiyuki Yamamoto　President & CEOFukuo Iwasaki　Director & Senior Executive Managing OfficerBack row from left:Kotaro Suzuki　Chief Information Officer & Head of AdministrationToshiki Yauchi　Director & Executive Managing Officer

3

As its fundamental philosophy of environmental management,

Nifco has established the following environmental policies. In its

group-wide efforts to realize them, Nifco’s goal is to improve its

environmental conservation efforts even more productive.

Nifco’s Environmental Policies

◆ Business principlesNifco Group aims to become an excellent global company achieving realization of a richer society by taking care of the global environment and providing customers with products full of creative and delightful functions.

◆ Fundamental environmental policyWe realize that conservation of global environment is one of the most important common issues that all human beings face, and we devote ourselves to conservation of environment in all aspects of our business activities.Nifco endeavors to establish and maintain systems to reduce impacts of our business on the environment in relation to manufacture and sales of resin molded products, electronic parts, packaging materials and other products, as well as of all our business activities in connection with them.

◆ Code of Conduct1　We comply with all laws, regulations and rules in relation to the environment, and strive

for environmental conservation.2　We set our objectives and goals of environmental management, fulfill them, and review

those objectives and goals periodically in order to continuously improve our systems and prevent pollution.

3　We make efforts to reduce the amount of plastic material waste generated from resin molding processes and other waste in general.

4　We endeavor to save resources and energy.5　We give the environment and resource conservation significant consideration when we

develop and provide our products.6　We take measures to raise awareness among all our employees about the conservation

of the environment, and take part in social activities as a member of the local community.

7　We document this environmental policy and make it thoroughly known to all our employees so that we can fully implement and maintain the policy. We will disclose the policy in response to requests from outside parties.

Environmental Management

4

Frameworks to Promote Our Environmental PoliciesAt Nifco, we have established a system by which Environmental Managers are chosen at all business offices that have been certified and company-wide progress can be checked at a monthly system maintenance meeting. In the 2017 fiscal year, our Head Office, the Sagamihara Engineering Center, and Nagoya Plant all implemented programs in environmental management systems as specified in the 2015 version of the ISO 14001 standards.

ISO 14001Nifco obtained ISO 14001 certification in March 2001. We currently operate according to the environmental management standards of the 2015 version of ISO 14001, using it to make continual improvements and to work towards environmental conservation. To continue to strike a balance between corporate activities and environmental conservation, and to minimize our impact on the environment via programs based on the PDCA (Plan, Do, Check, Act) cycle, we are pushing forth with efforts to continually improve our operation in accordance with the demands of the ISO 14001 standards.

DOImplementationand operation

ActionReview bymanagement

Plan

Continuous Improvement

CheckCheck and

corrective action

Head OfficeSagamihara Engineering

CenterNagoya Plant

Environmental Manager

TopManagement

System Maintenance

Meeting

System Maintenance

Meeting

System Maintenance

Meeting

ISO 14001 Structural Chart

Model of the ISO 14001 improvement cycle

5

FY2017 Activities and Results

Topics Initiative Organizations Target Result Assessment Pagedescribed

Low-C

arbon Society Initiatives

Development and proposal of environmentally-conscious products

Head Office 33 projects/year

33 projects/year ○

P7Nagoya Plant 20 projects/

year20 projects/

year ○

Energy Saving

Head Office 37projects/year

38 projects/year ○

P8Sagamihara Engineering Center

23 projects/year

25 projects/year ○

Nagoya Plant 58 projects/year

79 projects/year ○

Monitoring of CO2 emissions Company-wide 6,681t/year 6,673t/year ○ P9

Monitoring of gasoline use Company-wide 82.7 kl/year 83.1 kl/year × P9

Recycling-base Society Initiatives

Reduction of Material Waste Company-wide Less than

4.5t/monthLess than

3.8t/month ○ P10

Making Delivery Packages Returnable Company-wide 8 projects/

year10 projects/

year ○ P10

Decrease of Defect Rate in Processes

Sagamihara Engineering Center

5 projects/year

5 projects/year ○

P10Nagoya Plant 24 projects/

year24 projects/

year ○

Monitoring of Tap Water Use Company-wide 26,235㎥/

year21,537㎥/

year ○ P11

Monitoring of Total Emissions Company-wide 851.4t/

year899.5t/

year × P11

Promoting Environm

ental M

anagement

Continuous Improvement of Environmental Management Systems

Company-wide Monitored monthly

Executed monthly ○ P12

Better Guidance on Supplier Visits

Head Office 3 companies/year

3 companies/yearyear ○

P12Sagamihara Engineering Center

1 company/year

1 company/year ○

Nagoya Plant 2 company/year

2 company/year ○

Substances of Concern (SOC) management

Company-wide Monitored monthly

Executed monthly ○ P13

Social Contribution

Initiatives

Local Cleanup Activities

Sagamihara Engineering Center 1 time/year 1 time/year ○

P14Nagoya Plant 2 times/year 2 times/year ○

Trial Work ProgramSagamihara Engineering Center 2 times/year 2 times/year ○ P14

Nagoya Plant 2 times/year 2 times/year ○ P14

Regional Vitalization Company-wide 25 projects/year

27 projects/year ○ P14

6

The position of Nifco is that the prevention of global warming is an issue common

to all humankind. It is our belief that in trying to realize a carbon-free society, our

steady efforts to contribute to the reduction of carbon emissions will lead to the

sustainable growth of our company. We are continually working to address these

issues in all aspects of our business, most prominently in the development of

environmentally-friendly products.

Low-Carbon Society Initiatives

66% lighter

Plastic brackets

Gasoline tanks

Nipples

Cleared the newest exhaust gas regulations

* These are a set of regulations established by China that, compared with conventional regulations, are 40% to 50% more stringent with regards to emissions of carbon monoxide (CO), nitrogen oxides (NOx), hydrocarbons (HC), and other substances.

Development and proposal of environmentally-conscious products

Example 1:Changing the brackets fastened to brake oil tanksfrom metal to plastic

Topic: Reducing Product Mass (automotive products)

Effect: Conventional part (metal) weight…200g

Developed product (plastic) weight…67.2g

*Nifco has made it possible produce compnents 40% lighter in weight.

Example 2:“Development of gasoline tank

nipples that comply with the new China VI Emission Standards.”

Topic: Producing products with low levels of transpirat ion of hydrocarbons (HC) to the outside of vehicles

Effect: Our products cleared the China VI Emission Standards’ which is one of the most stringent set of exhaust gas regulations in the world.

7

Energy Saving

Example 1:Conversion of 22 mercury lamps at the Nagoya Plant’s molding factory to LED lighting

Topic: Conversion of lighting equipment to LED

Effect: A 70% reduction in electricity consumed compared to previous; a savings of 13,647.5 kWh per year.

Example 2:Conversion of Nagoya Plant’s materials warehouse to LED lightingTopic: Conversion of lighting equipment

to LEDEffect: A 60% reduction in electricity

consumed compared to previous; a savings of 5,913 kWh per year.

Example 3:New installation of compressors in the Sagamihara Engineering Center

Topic: New compressor installationEffect: A 44% reduction in electricity

consumed compared to previous; a savings of 354,754 kWh per year.

Molding factory LED lighting

Electricity consumed

70％ reduction

Old factory warehouse LED lighting

Electricity consumed

60％ reduction

Compressors at the Sagamihara Engineering Center

Electricity consumed

44％ reduction

8

Monitoring of CO2 emissionsWe have achieved a reduction of 8t in CO2 emissions compared to the previous year. This is due to a reduction*1 in our emissions factor.

0

1,000

FY2013 FY2014 FY2015 FY2016 FY2017

2,000

3,000

4,000

5,000

6,000

7,000

8,000（ｔ）■Head Office　■Sagamihara Engineering Center　■Nagoya Plant　■Company-wide Total

522

2,324

3,063

5,909

7,223 7,021

397

2,922

923

2,418

3,680

1,350 1,4701,838

3,365

2,009

6,681 6,673

3,3223,904

Monitoring of gasoline useAs a result of monitoring the use of gasoline, we saw only a minor increase in use, namely 0.4 kl (4%).

FY2013 FY2014 FY2015 FY2016 FY20170.0

20.0

40.0

60.0

80.0

100.0

120.0（kl）■Head Office　■Sagamihara Engineering Center　■Nagoya Plant　■Company-wide Total

12.3 15.5

40.8

68.675.8

84.8

7.7

26.6 29.0

9.0

46.8

27.0

7.0

82.7 83.1

48.7

36.0

3.6

43.541.5

Winning for three years in a

row in the Business Operator Classification

Evaluation SystemS Class*2

(Since FY2015)

*1 The adjusted emissions factors were TEPCO Energy Partner 0.491→0.474 and Chubu Electric Power 0.482→0.480 (cited from values published by the Ministry of Economy, Trade and Industry)

*2 For three years in a row since FY2015 Nifco has been ranked as an S Class business for excellence in energy saving in the “Business Operator Classification Evaluation System” that is part of the energy-saving policy framework of the Ministry of Economy, Trade and Industry's Agency for Natural Resources and Energy

9

Molding PulverizationBlendedmaterials

Reusablematerials

Extraction

Sprue and flashing

Deliveryto customers

Products

Virgin

Nifco plant

Recoveryof

empty package

Customer

Delivery

Recycling-base Society Initiatives

Making Delivery Packages Returnable

Decrease of Defect Rate in Processes

Nifco is putting resources into initiatives that seek to create a society that, in

addition to using limited resources with high levels of efficiency, reproduces

resources in a sustainable manner to create a chain of recycling. In our business

activities, we promote the reduction, reuse, and recycling of resources.

Reduction of Material Waste

・The conventional plastic molding process left sprue and flashing (pieces that were unnecessary for the product generated during the plastic molding process) that were thrown away as waste.・As a result of improvements, we now pulverize the sprue and flashing left over

after molding right there and convert them to reusable materials.・We blend them with unmixed plastics (virgin materials) supplied by materials

manufacturers and reuse them. ・We have achieved moldinwg processes that do not yield waste. (We are

currently implementing this only in cases in which the product characteristics and needs can be satisfied.)

Overview：

E f f e c t :

・The conventional packaging for delivering products to customers was cardboard and similar materials, which meant that the customer had to throw the packaging away.・As a result of improvements and cooperation by

customers, we now have packages that are returnable, and as a result we have cut down on waste such as cardboard.・We have converted the packaging for

around 60% of our total delivered goods (8,000 cases) to returnable packages.

・To prevent trouble and complaints before they occur, using statistical methods we have implemented programs to constantly monitor the defect rate in processes at the various production facilities as well as initiatives to reduce defect rates. ・We have been successful in preventing the generation of defective products,

which have to be thrown away, and in preventing the waste of resources that would otherwise be taken up with major problems and complaints.

Overview：

E f f e c t :

Overview：

E f f e c t :

10

Monitoring of Tap Water UseAt the Nagoya Plant, as a result of replacing the cooling tower for the air conditioning system with a cooling pump system and monitoring tap water use, we achieved a 4,698 m3 (18%) reduction from the previous year.

Monitoring of Total Emissions*1

The total emissions from three centers increased by 48.1 t year-on-year, but this was because we disposed all at once of molds that had not been used.*1: Total emissions = Total waste + Valuables

FY2013 FY2014 FY2015 FY2016 FY20170

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000（m3）■Head Office　■Sagamihara Engineering Center　■Nagoya Plant　■Company-wide Total

7,005

11,184

14,914

26,75629,958

3,623

9,7746,981

9,479

13,498

6,855 7,590

26,235

21,537

11,790

6,525 7,458 7,554

13,359

33,103

FY2013 FY2014 FY2015 FY2016 FY20170

100

200

300

400

500

600

700

800

900

1,000（ｔ）

258

■Head Office total waste　■Sagamihara total waste　■Nagoya total waste　■Head Office valuables　　■Sagamihara valuables　　■Nagoya valuables　■

12.4

214

38 322

195.5

781.9

898.6

808.0

92.61

210

48

29.20.8

191

34 321

232

660 150

143.2

899.5

286.3

72.50 136

112321

205.9

344

203

851.4

0

Total company-wideemissions

11

Continuous Improvement of

Environmental Management

SystemsAt Nifco, in order to make continual improvements to our envi ronmental management systems, we hold monthly system maintenance meetings in which all business offices participate. Furthermore, in order to identify problem spots in the system, once a year we have both internal and external audits conducted. In addition, at the end of the fiscal year the management team conducts management reviews. Through these reviews, we verify appropriateness, validity, and effectiveness.

Better Guidance

on Supplier VisitsNifco conducts environmental monitoring of our suppliers as a part of environmental conservation activities.In fiscal 2017, we had 75 companies perform voluntary monitoring. We then visited six companies who were given a score of 80 points or under, and advised improvements and made requests in accordance with various environmental laws and regulations.

75 companiesVoluntary monitoring

6 companiesVisiting and monitoring

80 points or under

A management review in progress

Visiting and instructing suppliers

Promoting Environmental Management

In addition to working at continual improvements in line with the environmental

managements systems based on ISO 14001, we are working with suppliers to

promote company-wide environmental management. We are also accelerating

efforts to bolster organizations so that they can meet the goals presented therein.

12

Substances of Concern (SOC) managementNifco was one of the first companies to engage in SOC management, having implemented the “NESP*” IT system in 2004. With the obsolescence of our old system, we are planning to gradually switch over to the latest “N-SOC” IT system. Our plan is to implement it domestically in FY2018, and to roll it out to our chief overseas centers from FY2019 to FY2020.Unlike the old system, we will be able to directly use IMDS, JAMA Sheet, and chemSHERPA, which are formats common to the industry. As a result, it will be possible to link up data with overseas centers within a day when needed. Accordingly, we will be able to promptly comply with ever stronger chemical substance-related laws and regulations in each country, and respond whenever necessary to laws and regulations of such countries in terms of ever-globalizing logistics systems.

Legal judgmentData obtained Immediate responseto judgment

N-SOC

Business clients/Customers

Domestic suppliers

Overseas centers

JAMA

chemSHERPA

IMDS

JAMA

chemSHERPA

IMDS

*Acronym for “Nifco Environmental Safe Parts” system

13

As well as striving to be a creative company that gives people excitement and joy,

Nifco works hard to be a good corporate citizen. As such, we conduct CSR activities

in areas where we do business that are intended to make local communities and all

other stakeholders prosper along with us.

Local community cleanup around the Sagamihara Engineering Center

Local community cleanup around the Nagoya Plant

Trial Work Program

7th Hakuba International Trails

Nissan Cup Oppama Championship 2017

Social Contribution Initiatives

Local Cleanup Activities● In November 2017, six companies located at and

around the Sagamihara Engineering Center worked with each other, brought a total of 148 people together, and cleaned up the area around the center and the area around the parking lot in front of the center. We are currently trying to elevate the project to a regular event done in collaboration with neighboring companies,

● In FY2017, the cleaning project around the Nagoya plant was carried out twice, in spring and autumn, just like it is every year. The head of the office and head of the factory, along with 74 other participants from the various departments, picked weeds, cleaned up trash, and cleared dead leaves at the nearby parks, roads, pathways, and gutters.

Trial Work ProgramIn June of 2017 the Nagoya Plant accepted one student from the nearby Masutomi Junior High School for the trial work program. For three days, the student worked on assembly processes, specifically assembling small plastic components. The trial work program proved to be good in that the student learned how hard it is to work at the company yet how important the work is.

Regional Vitalization● Nifco was a sponsor of the Nissan Cup Oppama

Championship 2017, which was held from December 1 to 3, 2017. This event, which has nationwide participation, is a wheelchair marathon held by the Nissan Oppama Plant in cooperation with the community. Through its sponsorship, Nifco contributed to the regional vitalization.

● Nifco was a sponsor of the 7th Hakuba International Trails, which was held on September 10, 2017. There were several objectives behind our sponsorship. To begin with, it was an effort at branding our SPLC shoelaces, which are part of our speed training systems, a sales promotion event for the same, and a chance for the four runners from the company to enter the race and actually field test the laces to verify their performance.

14

Environment-Related Data

Name Location Date certified

Domestic (3 centers)

Head Office Yokosuka City February 2016

Sagamihara Engineering Center SagamiharaCity March 2002

Nagoya Plant ToyotaCity March 2001

Domestic Affiliated Companies (2 centers)

Nifco Yamagata Inc. Yamagata City March 2010

Nifco Kumamoto Inc. KoushiCity December 2010

Overseas Centers (19)

Nifco Taiwan Corporation Taiwan February 2004

Nifco Korea Inc. Korea January 2003

Nifco America Corporation U.S. July 2002

Nifco Poland Sp.z o.o. Poland July 2010

Union Nifco Co., Ltd. Thai June 2003

Nifco U.K.Ltd. UK October 2001

Nifco Manufacturing（Malaysia） Sdn. Bhd. Malaysia July 2006

Nifco Products Espana, S.L.U. Spain November 2003

Shanghai Nifco Plastic Manufacturer Co., Ltd. China December 2004

Dongguan Nifco Co., Ltd. China April 2004

Nifco （Thailand） Co., Ltd. Thai June 2006

Tifco （Dongguan） Co., Ltd. China January 2004

Beijing Nifco Co., Ltd. China July 2013

Nifco KTS GmbH Germany April 2015

Nifco KTW GmbH Germany December 2011

Nifco India Private Ltd. India March 2014

Nifco South India Manufacturing Private Limited India July 2014

PT. Nifco Indonesia Indonesia December 2014

Nifco（Jiangsu）Co.,Ltd. China September 2014

Status ofISO 14001 Certification

15

For the 2017 fiscal year, We performed environmental accounting by calculating the expenses that Nifco used for environmental conservation activities. The methods for summing these up followed the Environmental Accounting Guidelines 2005 released by the Ministry of Environment. With these methods we have ascertained the costs of environmental conservation activities at our offices (three offices operating programs), the cost of operating environmental management systems, the cost of developing environmentally-conscious products, etc., and these environmental costs, together with the effects of improvements in the form of energy savings, have had an effect. Going forward, we will efficiently pursue investments for environmental conservation and engage in environmental conservation activities as part of our push to make more beneficial improvements to our management indicators on this front.

*1: Expenses to prevent air pollution water pollution, and public nuisances in the form of noise and vibration pollution, etc.

*2: Expenses for global environmental conserviation, i.e. those related to global warming, energy saving, resource conservation, research into substances of concern, etc.

*3: Expenses for the processing, disposal, and recyclying of waste, and other recycling-related expenses.*4: Expenses for products, use of services, disposal, and materials recycling.*5: Expenses for management activities such as the operation of environmental management systems,

employee education, equipment management, and others.*6: Expenses for the research and development of products that contribute to environmental conservation.*7: Expenses related to volunteer activities to beautify and/or clean up the areas around offices, and to

contribute to local communities.

Environmental conservation costs ［yen］Category FY2013 FY2014 FY2015 FY2016 FY2017

Withinbusiness areaEnvironmental conservation costs

Costs of pollution prevention*1 19,613,096 34,723,432 36,077,730 39,129,688 23,317,750

Costs of global environment conservation*2

60,221,920 43,557,926 30,534,451 115,561,460 17,199,991

Costs of resource recycling*3 12,247,966 25,700,251 13,003,734 19,976,148 27,705,191

Subtotal 92,082,982 103,981,609 79,615,915 174,667,296 68,222,932

Upstream/downstream costs*4 321,599 309,000 0 0 0

Costs of management activites*5 2,603,791 10,076,436 16,514,851 9,523,088 1,232,856

Costs of research and development*6 70,500 0 0 0 0

Costs of social activism*7 2,654,067 2,565,512 548,000 0 556,475

Total 97,732,939 116,932,557 96,678,766 184,190,384 70,012,263

Effects of energy saving associated with environmental conservation activities ［kl］

Category FY2013 FY2014 FY2015 FY2016 FY2017

Effects attributed to energy conservation*8 315 89 110 114 137

*8: Converion of improvement activities to crude oil equivalend reduction (kl)

Environmental Accounting

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● Act on Rationalizing Energy Use (Energy Saving Act)● Fire Services Act● Waste Management and Public Cleansing Act (Waste Disposal Law)● Industrial Safety and Health Law● Air Pollution Control Law● Soil Pollution Countermeasures Law● Noise Control Law and Vibration Control Law● Act on Special Measures concerning Promotion of Proper Disposal

of Polychlorinated Biphenyl Waste (PCB Law) and Plant Location Law

● Poisonous and Deleterious Substance Control Act● Act Concerning Special Measures for Total Emission Reduction

of Nitrogen Oxides and Particulate Matter from Automobiles in Specified Areas (Automobile NOx & PM Law)

● Chlorofluorocarbons Emissions Law

Main Environmental Laws and Regulations that Apply

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Company OverviewCompany Name Nifco Inc. President & CEO Toshiyuki YamamotoEstablishment February 13,1967　Paid-in Capital ￥7,290 millionStock Listings 1st Board of Tokyo Stock Exchange (Securities Code: 7988)Net Sales ￥271 billion (consolidated) / ￥77 billion (non-consolidated) (As of the year ending in March 2018) Number of Employees 11,587 (consolidated) / 1,244 (non-consolidated) (As of the year ending in March 2018)Line of Business Manufacture and sales of synthetic resin products and molds (Industrial fasteners, precision plastic molds, etc.)

Business NetworkDomestic Centers: 13Head Office (Yokosuka)Tokyo HeadquartersNifco Technology Development Centre (Yokosuka)Nagoya PlantSagamihara Engineering CenterUtsunomiya Sales DepartmentHamamatsu Sales DepartmentOsaka Sales DepartmentHiroshima Sales DepartmentTohoku Sales DepartmentOta Sales DepartmentSaitama Sales DepartmentSuzuka Sales Department

Domestic Affiliates: 4 companiesNifco Yamagata Inc.Nifco Kumamoto Inc.Simmons Co., Ltd.Nifco Trading Ltd.

Overseas centers: 31U.S. (3)Mexico (3)UK (1)Germany (2)Poland (2)Spain (1)Korea (1)China (9)Hong Kong (1)Taiwan (1)Vietnam (1)Thailand (2)Malaysia (1)Indonesia (1)India (2)

Nifco Inc.5-3 Hikarinooka, Yokosuka-shi, Kanagawa Prefecture, 239-8560 JapanTelephone: +81-46-839-0225 (Switchboard)https：//www.nifco.com/en

General Company Information

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