Environmental & Social Report 2014

Environmental & Social Report 2014 Gazing at the bright future of man and society Contents

through the development and production of Message from the top 03

FY 2013 Targets and Results Commitment to Continually 06 transmissions Improving Business Operations

Connecting the engine to the drive wheel and delivering power Environmental Activities 07 Material Balance 09 smoothly to the road. Environmental Management 11 The transmission is the“ unseen lead”, matching the driving System

conditions with the optimal gear change ratio, Product Initiatives 13

which plays a major role in the car’s driving and environmental Production Process 19

performance. Distribution Eﬀorts 25

We, at JATCO, will strive to develop and produce transmissions Environmental Communication 26 that are smoother and more environmentally friendly. Global Features Environmental Conservation 27 Through this activity we not only support the global automotive Activities Overseas

industry, but also enhance people’s driving lives. Social Activities 29

Responding to Emergencies 31

Working with Suppliers 33

Employees and our Workplace 34

Community Relations 37

Environmental Data from our 39 Production Bases

Environmental Activities 41

Corporate Information 42

Editorial Policy

In this, the tenth edition of our Environmental and Social Report, we aim to foster a better understanding of JATCO’s approach to contributions to the environment and our society. This report is intended for all of our stakeholders, including customers, suppliers, employees and our local communities. Through this report, we hope to foster a better understanding of JATCO’s continued initiatives towards environmental and social improvements, and the contributions they have made. We also hope that your opinions and input will provide an opportunity for us to identify new challenges to address in our future initiatives. We look forward to receiving your honest comments and feedback.

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01 JATCO Environmental & Social Report 2014 JATCO Environmental & Social Report 2014 02 Message from Message from the top the top

Questions for the CEO JATCO’s aim toward becoming a “good corporate citizen” Questions for two members of What is the significance of such activities going forward. Q the goal to become the JATCO has a large number of outstanding employees. JATCO’s Top Management Team When each individual employee takes action with the “global No. 1 automatic desire to be of service to the world, I am confident that This is what we would like JATCO to be like. transmission manufacturer?” JATCO will then present an image of a “good corporate citizen.” Companies have to continue growing constantly. I think that the raison d’etre of a company is to transform the profits gained through the growth process into value, What is the value that JATCO and to contribute to the sustainable development of society by fulfilling its responsibilities as a corporate Q provides to society? citizen. JATCO is a manufacturer that specializes in the Going forward, I am certain that automatic transmissions production of automatic transmission systems. To date, will continue to play an increasingly important role as our we have provided the world many innovative products. trump card for realizing the production of vehicles that are Of these, our CVTs have captured 49% of the market clean and have low fuel consumption. For manufacturing share, and we have developed a full line-up that covers companies, the key to solving social problems is vehicles ranging from mini cars to 3.5-liter class vehicles. technological prowess. To date, JATCO has commercialized the world’s first Going forward, JATCO continues to occupy a position forms of technology for reducing CO2 emissions, such in the expanding automotive market where it can aim for as its CVTs and transmission for hybrid vehicles. Even the top place. That is why we have established the goal so, we are keeping up our efforts in the development of becoming the “global No.1 automatic transmission of transmission technology that can further reduce the manufacturer” as we head toward further growth. Our burden on the environment. We also have to continue concept of “No.1 in the world” here does not refer to to spur on the evolution of transmission systems so quantitative indicators. Rather, we would like to create an that they can meet the needs of diversifying automotive environment where all employees can work dynamically, electric technology, such as electric vehicles and fuel and to achieve a presence that is recognized by everyone cell vehicles. It is our responsibility to enhance our around the world. Our aim is to become a No. 1 company technological prowess and reflect the needs of customers with substance, and a company that will make people in our products, in order to provide the innovative think, “I want to work at JATCO.” products that only JATCO is capable of creating. This is also the value that we provide to society. To fulfill that responsibility, we have pushed for the What is JATCO like as a evolution of our corporate philosophy and reviewed our Q “good corporate citizen?” code of conduct. By having each individual employee exert his or her leadership qualities, and constantly think of the customer’s perspective, we aim to achieve In addition to our domestic development and production victory on the global stage through our technological bases, JATCO also has development bases in South prowess. I hope that we can continue to be a company Korea, the U.S., France, Russia and Spain, as well as where such capable human resources work together production bases in Mexico, China and Thailand. We dynamically as a team. This will drive us toward have expanded our business globally. Depending on the “providing value to our customers, to automotive country or region, I believe that there are differences in culture and to society,” which is our mission. I believe history, culture, ways of thinking, as well as in the ideal that this is also the state of JATCO’s Monozukuri as image of a citizen that is expected by society. However, we aim to achieve ideal growth as a “good corporate I hope that JATCO will develop a presence that is well citizen.” loved by local residents, and that people will be glad that JATCO is located there. Providing employment is a heavy social responsibility that companies carry, while environmental conservation activities such as green procurement and energy/ resource conservation are also of great importance. We must also take care not to neglect giving consideration to local residents, through initiatives such as ensuring safety and preventing noise pollution near production plants. Furthermore, I also believe that we should continue contributing to society in ways that meet the needs of the country or region. Examples of such social contribution activities include cleaning of the local areas, and carrying Teruaki Nakatsuka out volunteer activities at schools and homes for the President and elderly. We will further strengthen our support systems for Chief Executive Officer

03 JATCO Environmental & Social Report 2014 JATCO Environmental & Social Report 2014 04 Commitment to Continually Message from the top FY 2013 Improving Business Operations Targets and Results Committed to continually reducing environmental load based on the Questions for the COO PDCA Cycle. Striving toward a “society where automobiles and the environment coexist in harmony” At JATCO, we have initiatives each year to reduce environmental load. We call these initiatives“ Environmental Objectives , and we What is the role of transmissions in Furthermore, from the supply-chain perspective, we are strive to achieve them. By looking at the yearly results of previous initiatives, we are able to set goals for the following years, helping us Q the automotive society in the future? also actively advancing efforts to promote the modal shift for to constantly improve our environmental performance. transportation toward railway and ferries (reducing reliance on ground transportation), and to improve carrying efficiency Global automobile production and ownership volume are Environmental through cargo consolidation. These may be humble and low- Items Targets FY 2013 Results Evaluation FY 2014 Goals expanding mostly in emerging markets, and vehicles with objectives key initiatives, but we believe that such efforts to reduce automatic transmission systems in particular are becoming environmental burden in terms of transportation form an mainstream. Although there are emerging markets where ■Periodic reassessment ■ Periodic reassessment ■ Periodic reassessment audit: important part of JATCO’s activities. audit: Continue registration audit: Continue registration Continue registration manual vehicles still maintain a large market share, the need ■ Internal environmental audits:1 ■ Internal environmental audits: 1 ■ Internal environmental audits: 1 for automatic vehicles is expected to increase further in the Periodic reviews ○ ■ Environmental Integration ■ Environmental Integration ■ Environmental Integration Continued improvement future. Committee meetings: 2 Committee meetings: 2 Committee meetings: 2 of the Environmental On the other hand, there are growing concerns about the What should we strive toward with ■ Management reviews: 1 ■ Management reviews: 1 ■ Management reviews: 1 Management System adverse impact of automobile popularization and the rise Q regard to “automobiles and the in CO2 emission levels on the environment. As a result, new environment coexisting in harmony?” Internal environmental ■ 3 persons have completed ■ Required staff ■ Required staff environmentally friendly technologies, such as hybrid vehicles, auditor training the course ○ I always tell the employees to carry out their work from an electric vehicles, plug-in hybrid vehicles and fuel cell vehicles, environmental perspective. are facing increasingly diverse challenges. JATCO, which When we look at the overall environment of the Earth, we plays a key role in the automotive industry, is no exception. Zero notices from can see that the problem of CO2 emissions is becoming more the government and ■ Number of notices: 0 ■ Number of notices: 0 ○ ■ Number of notices: 0 One of the answers that we have come up with is the CVT. serious in tandem with the increase in energy consumption public offices We have developed products such as the Jatco CVT7 and activities in each country. Although economic development is Jatco CVT8, which have brought about greater improvements Continued management of great importance, it is also our responsibility to ensure that ■ Percentage of periodic ■ Number of periodic ■ Number of periodic in fuel and driving performance through a larger transmission of significant ○ future generations can inherit a healthy natural environment revisions: 100% revisions: 100% revisions: 100% gear ratio coverage, smaller and more compact vehicle sizes, Compliance with laws environmental aspects from us. JATCO, as a company, as well as all the employees and reduction in friction loss. In Europe, the combination with and preventive measures working here, have to be committed to tackling the problem for environmental issues diesel engines, which have outstanding fuel performance, has Environmental law- of global warming as members of the global community. ■ Number of claims: 0 ■ Number of claims: 0 ○ ■ Number of claims: 0 been highly appraised. Of course, we have also not forgotten related training Of course, it is important to focus on quality and safety about providing support for electrification. We have a line-up as a Monozukuri company. However, I think that constant of transmission systems for hybrid vehicles that harness our consideration of the environment is also important when Prevention of unique single-motor, dual-clutch system. ■ Class B accidents: 7 ■ Class B accidents: 3 ○ ■ Class C accidents: 12 thinking about JATCO’s Monozukuri As I have explained so environmental incidents As we continue to enhance the basic function of far, the provision of products with excellent environmental transmission systems, which is to transmit engine torque performance, and the reduction of environmental burden in (power) efficiently to the tires, we will continue to carry out Implementation of energy- production and logistics processes, are the two prongs of saving measures technological innovation from the perspective of “total energy ■ 53.06t- CO 2 /100 million yen ■ 46.32t- CO 2 /100 million yen ○ ■ 46.57t- CO 2 /100 million yen JATCO’s environmental contribution efforts. ■ Energy per unit of net management,” in order to effectively utilize energy from the sales (CO2 conversion) Going forward, JATCO will continue to take an environmental entire vehicle without wasting any of it, through means such Implementation of waste stance, develop human resources who are capable of Effective use of as energy recovery. We also aim to achieve greater balance reduction measures ■ 2.0% reduction ■ 6.0% reduction compared ■ 2.0% reduction compared creating new technologies, and fulfill our responsibility as resources ○ between fuel performance and driving performance. ■ Reduction of general compared to FY 2012 to FY 2012 to FY 2013 a corporation. By sharing our stance not only with our waste emission rate employees, but also with JATCO’s affiliated companies, I am confident that we will be able to move closer to our goal of What is demanded of JATCO’s ■ Recycling rate ■ Maintain 100% rate ■ Maintain 100% rate ○ ■ Maintain 100% rate realizing a “society where automobiles and the environment Q Monozukuri? coexist in harmony.” Eco-friendly design It is very important to provide environmentally friendly (contributions to ■ Individual (product) ■ Individual (product) ■ Individual (product) transmission systems, and at the same time, build production environmental protection challenge targets: challenge targets: ○ challenge targets: and distribution processes that impose a low burden on the and automobile fuel 100% achievement rate 100% achievement rate 100% achievement rate Technological efficiency improvements) environment. development to reduce At JATCO, our production processes are constantly evolving environmental load Reduction and ■ Maintaining 100% product ■ Maintaining 100% product ■ Maintaining 100% product as we pursue initiatives such as the introduction of energy management of compliance with compliance with compliance with environmentally conservation facilities, the development of efficient work environmental laws and environmental laws and ○ environmental laws and hazardous substances regulations regulations regulations processes, and the streamlining of production processes. used in products Of course, this stance remains unchanged at our production facilities overseas, including JATCO Mexico, S.A. de C.V., JATCO (Guangzhou) Automatic Transmission Ltd., and External disclosure ■ Publication of Environmental ■ Environmental Report: ■ Publication of Environmental of information and Social Report published February 2014 ○ and Social Report JATCO (Thailand) Co., Ltd. While keeping in mind the Coexistence with characteristics of each country and region, such as peripheral the local community, infrastructure and energy conditions, we will keep up our society, and nature Communication with ■ Number of events held: 8 ■ Number of events held: 14 ■ Number of events held: 8 global production activities with the aim of providing high local communities ○ quality products in a timely manner at locations close to our Seiji Honda customers. Chief Operating Officer Evaluation: ○ : Achieved target; × : Did not achieve target

05 JATCO Environmental & Social Report 2014 JATCO Environmental & Social Report 2014 06 Environmental

Environmental Activities Activities Fulﬁlling the vision of a society where automobiles and the environment can coexist in harmony with eco-friendly products and equipment

JATCO technologies are hard at work in the ﬁght to reduce the environmental impact of automobiles

Today, as debate takes place on the urgency of protecting our environment globally, a variety of initiatives are being implemented around the world in order to reduce the environment impact of human society. One such initiative can be found in the environmental performance of automobiles, a mode of transportation that forms an integral part of our lives. Advancements in transmissions, and in particular continuously variable transmissions (CVT), both key to enhancing drivability and fuel efﬁciency, have garnered strong attention in this regard. As a global leader in automotive transmissions and the only company offering a full line-up of CVTs, spanning from small to large vehicles, JATCO is helping to reduce the environmental impacts of automobiles on our planet by supplying transmissions with superior environmental performance to automakers throughout the world.

Being more considerate of the environment in our global business activities

JATCO is currently in the process of expanding its production sites globally in order to deliver a stable supply of transmission products to its automaker customers around the world. These production sites adopt the same environmental preservation measures that we use in Japan to help minimize their impact on the natural environment. They also proactively employ their own ideas when itscomes to safeguarding the environment. JATCO Mexico has already obtained ISO14001 certiﬁcation for its environmental management system and soon our other production sites will follow suit. This is because we want to produce eco-friendly transmissions using eco-friendly means. In this sense, we are ﬁrmly committed to rolling out a production style at all of our sites around the world that mitigates impact on the environment.

Environmental Policy JATCO s role in the future of the automobile and environment JATCO Realizing a society where automobiles and the environment coexist in harmony Environmental ◆Technology…Development of transmissions with high energy-transfer efficiency Policy As people and society’s awareness toward environmental preservation grows, car buyers are now ◆Pollution Prevention…Preventing environmental problems and strict compliance more determined than ever to purchase an automobile that is fuel efﬁcient and considerate of the with laws and regulations environment. That is, a green car that has less of an impact on the environment and offers ◆Effective Use of Resources…Minimizing the use of resources and energy excellent fuel economy. JATCO continues to tackle the many challenges associated with building ◆Continuous Improvement…Improving the effectiveness of the Environmental Man- the ideal vehicle, one which balances environmental performance with driving performance. agement System JATCO has continuously carried out research on the environment and fuel economy, and the technology and experience honed over many years by JATCO as a transmission maker has already taken form in such products as the Jatco CVT7, the Jatco CVT8, and the Jatco CVT8 HYBRID. JATCO will continue to contribute to the future of the automotive society by developing revolutionary new technologies for electrically powered vehicles such as hybrid vehicles (HEV), electric vehicles (EV), and fuel cell vehicles (FCV). Our unwavering commitment to monozukuri as part of our vision to achieve a society where automobiles and the environment can coexist in harmony remains unhindered and steadfast.

07 JATCO Environmental & Social Report 2014 JATCO Environmental & Social Report 2014 08 Environmental Material Balance Activities 10 Users s/year ton Steel/ Steel plate 107,000 *Photographs for illustration purposes only JATCO Environmental & Social Report 2014 Report Social & JATCO Environmental Global Automakers Delivery Destination Assembly Factory *The values shown are based on global data in FY2013. Ship Rail ● ● 25 year s/ Efforts ton P. Distribution Truck Air

Further details Product Aluminum ● ● 39,000 Transportation 19 P. Process Raw materials

Production Production s Further details kL her Final Test 284 Ot tons L/year k Directly waste 21,521 reclaimed *Photographs for illustration purposes only 13,100 Kerosene Main Assembly 3 3 m m tons

LPG 6,263 Water 3,409,000 14,148,000 discharge Natural gas Sub Assembly 3 Nm kWh stage Gas Machining manufacturing Electricity 671,866,000 1,533,199,000 emissions We conduct a consistently efﬁcient and high-quality manufacturing process from raw materials to the assembled product. Furthermore, we strive meticulously to reduce environmental load at every stage of the manufacturing process. Energy

33 2 Materials -CO /year year

ecycling-oriented society, ecycling-oriented JATCO society, is committed to the appropriate use of 3 / /year 2 r 3 3 m m m P. Suppliers Production plants (production process) tons Working with Working CO Water for Water Further details Water supply Water Groundwater industrial use 363,000 954,000 2,403,000 460,912 emissions 13 Procurement P Product P. Initiatives Further details strive to understand the emissions of the various the various of the emissions to understand strive each its goal of building a R&D r Water resources Water 23 resources and the reduction of emissions. and the reduction resources JATCO generates a variety of waste by-products in the course of conducting its business. course of conducting in the waste by-products a variety of generates JATCO To Material Balance Material We substances associated with our business activities our business with associated substances Process P. Production Further details Ofﬁces INPUT OUTPUT JATCO Environmental & Social Report 2014 Report Social & JATCO Environmental

09 Activities Environmental Environmental Environmental Management System Activities 12

a efﬁcient epresent r Policy licy Environmental r Po Items Demand Demand Customer Uppe JATCO Environmental & Social Report 2014 Report Social & JATCO Environmental s entire organization. Among also support the planning and

Corporate Philosophy We s eight business units, including product Promotion of Energy-saving esources. esources. Improvement of fuel efficiency r

Development of New Technology PR Local Reduction of environmentally harmful materials Environmental Communication Each Department (Function)’s Environmental Activities management of environmental activities at our overseas bases. management of environmental use of our global warming, environmental preservation, and the the three most important issues, which are the prevention of management based on its functional hub. These high-level perspective, we aim to implement planning and these, the Environmental Planning Subcommittee focuses on each of ’ JATCO management across ’ JATCO development, manufacturing and procurement. From continuous improvements to activities, enable JATCO aims increasingly to create effective and provide value for stakeholders. We consider that this is the role JATCO environmental should fulfil in order to work towards realizing society. a sustainable Green Green Purchasing Distribution

P planning strategic

Main EMS spiral Environment- Sub EMS spiral chemical related substances materials and production Management of Environment- gional P P P A CD re Cross-functional activities Cross-functional related related product D D D planning technology the Environment- Environment- manufacturing to long-term - A om C C C Medium- strategy to long-term environmental nt fr s mid ’ The driving public, local communities, automakers, and other interested parties The driving public, local communities, automakers, fere le is dif Corporate Competitiveness ro and Laws Issues l Conditions Creating and providing environmental value to build a sustainable society Creating and providing environmental value Regulations Environmental Environmental eview the company r s Environmental Activities s Environmental Fuji Area Yagi Area Kyoto Area Socia Stakeholders CSR Kakegawa Area s mid- to long-term strategy. ’ ithin this subcommittee, there are eight smaller nmental strategy. nmental strategy. Its W o Each Region’s Environmental Activities Medium- Diagram Strategy / Promotion Environmental to Long-Term ’ Overview of JATCO The fundamental concept behind our environmental activities concept behind our environmental The fundamental JATCO Environmental Planning Subcommittee Planning Subcommittee Environmental JATCO subcommittees, each one being used to expand environmental In 2008 JATCO established an Environmental Planning JATCO has established environmental committees activities that suit the region. region, carrying out environmental in each JATCO interlinks two types of PDCA spiral, being the overall PDCA cycle (the main EMS spiral) and region/department the (function) PDCA (the cycle sub by EMS spiral), providing consistency in the direction of each initiative. By carrying out ■ ■ Subcommittee to envir the company environmental environmental management conducted by the EMS in that this conditions and top policies before it must review and promote subcommittee is tasked with considering such things as social Department In charge of Production Administration Offices environmental energy Sachio Kanazashi Production Administration Section Environmental Policy Environmental Environmental Committee Environmental JATCO’s environmental policy is ‘realizing a society where Among our overseas facilities, JATCO Mexico and JATCO Continuous Improvement: Increasing EMS effectiveness Technology: Development of a transmission with high Among domestic group companies, JATCO Engineering has ISO14001 accreditation. independently obtained Guangzhou obtained ISO14001 certification in 2011 and 2013 respectively, while JATCO Thailand is develop currently an EMS working in order to to obtain ISO14001 certification in FY2015. automobiles and the environment coexist in based on this environmental policy: harmony’, and - transmission efficiency - Pollution Prevention: Prevention of environmental accidents, adherence to laws and regulations - Effective Use of Resources: Promotion of energy - conserva tion, reduction of waste - JATCO is proactively these four pillars. through environmental activities based on promoting environmental initiatives Environmental Site Manager Site Environmental Environment Supervising Manager Supervising Environment pillars: technology, pollution prevention, effective use of resources and continuous company improvement. As that a easy them making by globalized been have standards is expanding to globally, understand with JATCO’s the charts. predominant This enabled use all of our colleagues globe flow to approach their work across with a unified perspec- the tive. JATCO will continue to evolve and improve, so you can expect great things from us. Each factory/division (division policy) (division factory/division Each Top Management Top (President and CEO) Manager-Section (Section initiatives plan) initiatives (Section Manager-Section Each Executive responsible (department policy) (department responsible Executive Each Quality Supervising Manager Supervising Quality Environmental Management System Management Environmental and manage to identify a system Building load environmental We are stationing site supervisors in each region to promote regional management. in each region site supervisors We are stationing former’s medium- to and is considering the Subcommittee has been established The Environmental Planning strategy. long-term environmental Offices JATCO’s management system combines systems for managing both the environment and quality, and is in the third year of operation. Although many may think that the management methods differ between environment considerably and quality, there are actually many points in common. (environment) and JATCO ISO/TS16949 (quality) has ways, accredita- many in similar are ISO14001 requirements their and tions, including process focus, effective use of resources and continuous improvement. This enables management to be carried out using the same system. Environmental policy is also simplified using four Changes to JATCO’s management system Quality Policy O Quality Management Committee Management Quality Integration of Quality and Environmental Management Integration of Quality and Environmental JATCO Environmental Management Environmental JATCO TC JATCO has integrated its quality and environmental manage- JATCO has integrated its quality and environmental ment systems. JATCO’s headquarters and each of its domestic locations have locations domestic its of each and headquarters JATCO’s obtained ISO14001 accreditation. Manage- Environmental the promote to structure staffing The ment System (EMS) includes one Manager and 13 Site Supervisors, Environment and, based on the authority Supervising EMS the promoting is Manager, Supervising Environment the of in each production location and department. Environ- Executive the promotion, EMS overall for addition, In mental Committee consisting of the Environment Supervising and review overall the out carries Supervisors Site and Manager evaluation. The committee also has the staff structure in place to make follow-ups regarding the EMS. In this way, unifying the corporate direction and promoting across EMS company-wide shared a operating by cooperation multiple production locations establishing and by hand, other the On EMS. JATCO the of features functions are the major location, production each in committees environmental regional environmental activities that make the best use of the features of the region are also being carried out. 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11 Activities Environmental Environmental Product Initiatives Activities 14

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Product 10 JATCO Environmental & Social Report 2014 Report Social & JATCO Environmental ) % -liter engine classes 5 . 2 40 - to 0 . 2 Conventional CVT reduction

for improvement 8 Conventional CVT Greater than (comparison with conventional CVT Jatco CVT * Results of evaluation at US Comb (comparison with our conventional CVT of the same class) * 8 6 4 2 0 40% reduction in friction compared to similar engine class CVT, 40% reduction in friction the CVT8 provides enhanced transmission efficiency and improved the CVT8 provides enhanced fuel economy. 10

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7.0 6.0 % increas 17 ( ＞ atures ge Fe – balancing environmental performance with poweronmental performance with power performance poweronmental performance with environmental – balancing Low features Low In addition to compliance with the world's laws and regulations, we take a mid- to government long-term look at policy, conditions, and technological trends to plan the next economic trends, generation of products. social While cars are markets, international and domestic in ways of variety used in a Product planning that responds to customers’ needs w d w d Ne Ol O Ol Ne Jatco CVT8 Increases Increases gear ratio in 2.0- to 2.5-liter class engines to a world leading 7.0, providing powerful, improved fuel efficiency and less noise at highway speeds fuel efficiency improved Jatco CVT 8 – balancing environmental Jatco CVT 8 – balancing power performance with TC The Jatco CVT8 was developed to update the existing line-up to handle the wide range of engines in the volume zone of 2.0 to 3.5 liters. This CVT model offers the superior perfect blend of environmental far performance compact design and that retains the smooth and seamless shifting power all of in a a CVT. best-in-class This gear ratio performance and signiﬁcant is its design. thanks to greater efﬁciency achieved throughout reduction in made friction possible by its ■ ＜ Voice JA

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Engine revolutions Features of the Jatco CVT7 Features Reduced the overall size and weight of the unit by making pulleys more Improves start-line and acceleration performance using the world’s Improves start-line and acceleration performance widest gear ratio coverage compact friction Improves Improves fuel economy and transmission efficiency through Jatco CVT7, aiming to further reduce fuel consumption Jatco CVT7, aiming emissions by automatically turning off the engine when the car is stopped. JATCO has been an early adopter also that of experience driving comfortable a with this customers providing technology, achieves low fuel consumption maintaining transmission through oil such pressure when measures auxiliary pump stopped to ensure as using restarting is an smooth, and engaging the clutch on inclined roads to prevent the car from slipping backwards. Through fresh, out-of-the-box thinking, JATCO developed its Jatco CVT7 with the world’s highest gear ratio coverage. To endow this transmission environmental with performance, JATCO dramatic worked improvements to produce revolutionary in an new auxiliary expanded gearbox gear ratio coverage, and friction-reducing technology structure that pleasant drive. that results in better fuel efficiency and a more allows In recent years, there has been an vehicles increase equipped in with the an number "idling of stop" feature to reduce CO ■ ■ ＜ Idling stop control ■ (fiscal year) 380Nm 2009-2012 emissions is improved 2 s environmental performance s environmental 350Nm JATCO is dedicated to making products with reduced environmental load by reducing fuel consumption further. fuel consumption load by reducing environmental with reduced products dedicated to making is JATCO Product Initiatives Product with less of products development Ongoing load environmental 2000 2002-2006 250Nm 0 Aiming to improve CVT Aiming to improve Nm The most crucial issue in recent years to control global environ- global control to years recent in issue crucial most The mental changes caused by CO automobile fuel economy. In order JATCO to began tackle early this development problem, on environmental CVTs performance. with JATCO advanced released a 2 liter metal belt-drive CVT class in 1997, ahead of the rest of the world, and through repeated improvements, went on to achieve a full line-up of CVTs that covers mini 2009 in again updated then was line-up standard The vehicles. vehicles to 3.5-liter class with the development of the Jatco CVT7, and in 2012 with the Jatco CVT8, CVTs with auxiliary gearboxes. Achieving lower ever fuel consumption environmental impact JATCO as the CVT brand with the top contributes share in to CVTs units million 4 approximately produced JATCO world. the reducing in FY2013, bringing the total number of vehicles in the market units. equipped with JATCO’s CVTs to over 21 million The world’s only manufacturer offering a full The world’s only line-up of CVTs 100 200 300 400 JATCO Environmental & Social Report 2014 Report Social & JATCO Environmental

13 Activities

Environmental

Environmental Product Initiatives Activities 16 ) adjust emissions High gear 2 within the field (■ Can be freely used Good fuel efficiency zone Downhill making it possible to Speed of car Fuel cut region (conditional) Fuel cut region (conditional) Braking operation innovations in transmissions to stable manner (engine brake and fuel cut) Able to use constant engine braking to descend a downhill road in a smooth, JATCO Environmental & Social Report 2014 Report Social & JATCO Environmental Low gear Possible to intentionally use the zone where the engine produced good fuel efficiency T

technical Engine revolution CV Flat road driving conditions, s emissions. 2 Can only be used on a fixed line 4th Uphill UpshiftUpshift

Improvements to the belt CVT Improvements to the belt AT Improvements to the step Control technology improvements Measures for hybrid systems Further measures to reduce CO Further measures ■ ■ ■ ■ Improved transmission efﬁciency, wide-range conversion, lightweight Improved transmission efﬁciency, conversion, lightweight Multi-stepped AT, wide-range stop control Expansion of lock-up area, neutral idling control, idling Optimized transmission for hybrid cars 3rd reduce CO We will pursue further Engine high-output zone Good fuel efficiency zone Increased engine speed mode the most suitable gear for the 2nd Speed of car At fixed engine speeds it is possible to use the engine powerful high-output zone efficiently ower P Eco mode Eco 1st Downshift

Engine revolution Flat road CVT vehicle Step AT vehicle so that the 4-speed AT and CVT efficiency range stage, when range. In the Engine revolution Engine revolution 4-speed AT flexibly to differing driving styles, reducing fuel consumption. ■ CVTs can easily select CVTs and Engine Coordinated Control of step ATs, with every 〉 widened, at and wide efficiency 〈High gear multistep Pulley on the input side Pulley on the input side add and fuel-efficient to Steel belt design, AT the gear ratio has been

step Belt CVT mechanism Steel belt 7-speed The CVT can take advantage of its stepless ratio gear the choose to ability changing gear is it thus, situation; driving the suits best that run to ratio gear ideal matchingthe constantly the automobile in the most fuel efficient way. fixed Characteristics of a CVT ■ output side 〈Low gear〉 Pulley on the What is a CVT? Fuel efficiency improvement of the step AT Fuel efficiency improvement starting, accelerating or cruising at high speed. transmission is smooth RWD their We are working to improve the fuel Multistepping and wider range of gear ratio Multistepping and . as a base unit AT 7 FR Flow of electricity Clutch for drive and gear change Energy regeneration by disconnecting the engine Secures applicability Secures Transmission Engine Motor Flow of electricity drive and motor drive Highly responsive power-assisted drive Clutch for switching engine

＞ Flow of electricity Engine drive through direct connection with the engine ＞ TCO is dedicated to making products with reduced environmental load by reducing fuel consumption further fuel consumption load by reducing environmental with reduced to making products TCO is dedicated JA Product Initiatives Product with less of products development Ongoing load environmental Flow of electricity HYBRID (hybrid transmission for FWD vehicles) HYBRID (hybrid transmission 8 Motor drive even after disconnecting the engine Hybrid transmission for RWD vehicles Jatco CVT Improves fuel economy in the city with the use 2-clutch system of a proprietary 1-motor long-standing our by possible made system clutch the of control Advanced automatic transmission development experience improves efﬁciency during motor use transmission Clutch and motor replace the torque converter, making the unit lighter and more compact, providing for easier installation Improves fuel economy in the city with proprietary 1-motor 2-clutch system the use of a The technology of the advanced Jatco CVT8 base unit helps improve fuel efficiency highway speeds and reduce noise at The combination of CVT and motor provides a response and direct feeling of acceleration quick Clutch and motor replace the torque converter, making the unit lighter and more compact, providing for easier installation Creating a specialized transmission to meet market needs a specialized transmission Creating Realizes the following operations by using a motor and two clutches for driving and regenerration. ■ ■ ■ ■ ■ ■ ■ A hybrid transmission using our proprietary system using our proprietary A hybrid transmission ＜＜ To meet the needs of the growing hybrid car market, JATCO has developed a hybrid transmission unit for FWD and RWD RWD and FWD for unit transmission hybrid a developed has JATCO market, car hybrid growing the of needs the meet To vehicles. JATCO Environmental & Social Report 2014 Report Social & JATCO Environmental

15 Activities Environmental Environmental Product Initiatives Activities 18

will continue to Collection Reman plant We JATCO Environmental & Social Report 2014 Report Social & JATCO Environmental Reman CVTs/ATs CVTs/ATs for reuse Testing Shipment Assembly Collection Exchange of parts Survey disassembly Inspection of parts Washing of parts Shipment Remanufacturing Operations bases are located in Japan Remanufacturing Operations Process Since 1989, Remanufacturing Operations (“Reman”) has been repair disassembly, for market the from units CVT/AT collecting and quality assurance to supply to the Through this business, we help market to preserve the global environ- once again. ment by reusing necessary resources. ■ Remanufacturing system Remanufacturing and Mexico; furthermore, we have negotiated a technical improve improve the recycling rate for products that we have collected repair repair products collected from the market. for environmental preservation. for environmental assistance agreement with a local repair company in China to

s ’ oduct Reuse % by weight in 95 CVT/AT units for placement ufacturing business where Something that can still be used will be reused We have developed a reman- ucts. we collect and repair used in the market as new prod- (CVT/AT)

, Recycle cyclable materials from the pr cyclable materials from re JATCO Products Products JATCO . e 2006 ealized a non- FY CVT/AT CVT/AT recycling rate of over Recycle for use as new resources By using development stages, we have achieved our r duc represent three key words necessary to create Re s approach to 3R activities is in the diagram below. s approach to 3R activities 3Rs of our products 3Rs that have a long life span. In 2003, we exchange guarantee for CVT oil. we are developing products By improving the durability Reduce waste by long-term usage 3Rs of production “ Promotion of reuse of resources that had been discarded that of resources of reuse Promotion “ JATCO’ The The a recycling-oriented society. Reduce, Reuse, and Recycle. ■

) ions pt em ) 5 Supplier Data entry ex Customers e e luding usag

usag xc Shipping (e In charge of IMDS e e e Entry Situation request Tomohiko Saduka us use us

use us ducing ducing in in R&D Management Department in in in

y re y re Data import longer longer longer longer longer Currentl No No No No No Currentl Jatco educe use of environmentally hazardous r Green IMDS server Testing inspection s) purchasing the IMDS function Purchasing Data Acceptance entry rm educe the use of environmentally hazardous r educing the use of enviromental load e r fo

Entry request Verifying JES M9001 compliance using (plat chrom Substances

substances

m ed * Check compliance with JES M9001 (IMDS Data Design materials ov materials d solder points in initiatives to import Arrange for Arrange for xavalent Manufacture supplementary Customer IMDS system diagram ppr directly procured (automaker)

substances substance Status of efforts to Key euse ratios by 5 Regulated He -Lea Mercury Lead Cadmiu Asbestos A * r ■ ■ in our transmission units transmission in our Act on the Evaluation of Chemical Substances and Regulation of Their Manufacture, etc 2 *

2 * their reduction. The cooperation of compliance, GHS handle cannot suppliers JATCO Since activity. is essential activities for own, its on requirement, a become will this which will move forward with even closer cooperation with suppliers. 3Rs JES

ecycling and r CSR: Customer Specific Requirements, items requested by individual customers do not 6 * “ M9001. these in the in the design

educed use of r do not supply JES “ GHS: Globally Harmonized System of Classification and Labelling of Chemicals 4 to protect people’s 4 * * M9001 . 6 * do not allow a list of controlled chemical 1 * “ . 3 * GADSL: Global Automotive Declarable Substance List SDS: Safety Data Sheet IMDS: International Material Data System 1 3 5 * * * eductions, it is important that we r JATCO JATCO is dedicated improving its Product Initiatives Product hazardous of environmentally reduction the Promoting the and substances substances from the development stage. substances from educe the use of environmentally r Regulations on chemical substances are directive, EU-ELV the becoming with as such year, every tougher REACH regulations, and CSR The latest information on shared laws and with regulations related is departments, system is used to survey and monitor the inclusion of and the about bring to IMDS substances hazardous environmentally Moving forward with stronger supplier cooperation governs the use of some 150 substance groups (2,700 controlled controlled substances under JES

Glossary manage environmental load substances in transmissions O

Reduction and thorough management of environmentally hazardous substances management of environmentally Reduction and thorough TC environmentally hazardous substances. hazardous environmentally to JATCO technical standards to JATCO We Activities to raise environmental awareness Management of chemical substances according together with legislations from various countries. JATCO carries year to stay ahead out appropriate reviews more than once a of global environmental laws and promote the substances common to the auto industry in Japan, the U.S. internally and externally according according to our internal technical standard M9001 substances) based on GADSL and Europe, and the Chemical Substance Control Law and Europe, and the Chemical Substance hazardous substances hazardous and manufacturing divisions, use Efforts Efforts to health and the environment through labeling for safe handling and the preparation of SDS In pursuing such The management and reduction of environmentally hazardous substances is a key supply chain-related measure suppliers. involving In order to further raise environmental awareness, JATCO is stressing the importance of green purchasing and initiatives to reduce environmental channels as hazards the JATCO Quality through Forum, which such involves internal and external stakeholders. both JATCO is also working to develop a GHS procurement procurement and inspection divisions, and these in the production and shipping divisions. these in the production Voice JA JATCO Environmental & Social Report 2014 Report Social & JATCO Environmental

17 Activities Environmental Environmental Production Process Activities 20

and 33% 40% 33% 43% ▲ ▲ ▲ ▲ Shipping Shipping 3,260 tons 100 tons we are now emmissions , 2 6% t / year hot forging

3.5 modules and production is × 66. New line New line 1,740 t / year 4,164 Palletizing 27 units 2009, work after Palletizing he JATCO Environmental & Social Report 2014 Report Social & JATCO Environmental t Visual emissions emissions inspection 2 2 ooled ough materials. However 3.5 modules r line line c × 100% Visual inspection emissions by approximately 100 tons per 2 Conventional 2,919 t / year Conventional 6,244 t / year ave emissions using residual heat emissions using residual h emissions by production design emissions by production echnology Division was involved in the product 2 2 T In FY 2013 CO In FY 2013 CO Cold press Cold press emissions emissions esource conservation esource 2 2 reduction to the machining/heat treatment treatment to the machining/heat reduction 2 Cycle time the past, we Reduction in CO Machining line educed annual CO eheated it to process Number of machines 49 units Annual CO Annual CO Heat treatment line Heat treatment process now being largely expanded due to its popularity. From the now being largely expanded due to its popularity. to drastically reduce production design phase it became possible cycle time required the number of machines and to shorten the machining points to in the pulley machining line, by reducing reduced when the minimum. The cycle time was then further line were refined. necessary conditions for the heat treatment CO As a result, we have succeeded in reducing by approximately 3,260 tons per year. r design of Jatco CVT 7 from its early product development stage. development its early product design of Jatco CVT 7 from line through production design production line through ■ In The Production from the forging process the forging from CO Reduced CO year. r This new CVT went into production in changing to a heat method treatment (self-annealing) that uses the heat remaining from the forging process. By doing so, it is This has eliminated physical distribution between lines and now possible to use one line instead of two for heat treatment. Lubrication process Lubrication

Integrated line

Shot blast Shot blast 68 tons reduced by approximately 100 tons / year by approximately reduced 2 are are developing

Heat treatment CO emissions generat- We Heat treatment 2 emissions through new Press

2 case Reduced thickness transmission s resources at each stage of Press ocesses for energy efﬁciency and r ocesses for energy esources. esources. r emissions Cut 2 educed CO r educing methods and innovative methods Cut In FY 2013 CO educed environmental load (management r reduction through the usage of compact, through reduction azardous azardous materials), and utilization of idle facilities to 2 educe production processes as well as introducing and h r bar steel bar steel Forging process integrated line integrated Forging process Striving to improve pr Striving to improve op priorities include Acceptance of Acceptance of Conventional line New line JATCO has employed lightweight casing parts in the next-gen- the in parts casing lightweight employed has JATCO of development the During 2013. FY in announced CVT eration this new CVT, the R&D Division and Production Technology Division collaborated intensively on ‘production design’ from the very beginning. By reducing the general thickness on using the optimum configuration and production, clearance a weight of saving of 5% limits was achieved during compared with previous CVTs in the same class. CO ed during parts production were thus substantially reduced, and an emissions reduction of 68 tons per possible. year was made performed at JATCO where the Production Technology Division Technology the Production where performed at JATCO Integrated production from raw materials to completed unit is ■ Environment-responsive production technology production Environment-responsive CO lightweight parts new product and technology developments. and technology new product T considers the limits of the Earth technology, technology, effectively effectively use (recycle) our of highly efﬁcient, load-r to converting to energy and resource-saving equipment. converting to energy and resource-saving

Monozu- GK) , asures to asures properly 5S, JIT 5S, Sales company Overall Field eness optimization Incoming orders Incoming orders management em D st , JATCO is , JATCO s QC High Sy competitiv 1 . t d added-value an r production No

s ty Vehicle manufacturer Vehicle Engineering Customer orders Customer orders d' activitie are are also taking me rl d orde omptly in a streamlined manner. omptly in a streamlined xe Wo We profitabili Managemen JEPS Fi

Delivery Higher Full participation (communication, cooperation) Full participation (communication, control Speed Flexibility Production Base enhancement (TQM, SQC, BM, QCC, TPM, QCC, BM, SQC, Base enhancement (TQM, System) is a no-waste system each of where process Fixed production Fixed production Assembly ased on the rebuilt system, JATCO will deploy its deploy will JATCO system, rebuilt the on ased purchasing purchasing materials, machining, and assembly, shipment As JATCO continues with processes in innovations pursuit to of achieving its the Environmental Management two Monozukuri System and the “unlimiteds”, Quality Manage- the ment System were integrated to simplify shared management and application specific systems while keeping the improvement of management efficiency and easing of mind. work On-site flow verification meetings in were also commenced in four global locations from FY2013 to further accelerate innovation. B kuri in the JATCO time, same the At standard. the as JEPS facilities,using global supply increasing by information and chain, goods of flow the tooptimize aims including for overseas theeffectiveness and efficiency of manufacturing processes so asto promote savings in energy and resources contribute to automotive culture and society. and in turn ﬂows smoothly and pr Production Production JEPS Innovation Our Environment Management System and Quality Management System will serve as the foundation for JEPS, as we pursue further improvement and continue to provide value to our customers, to automotive culture and to society. continue to provide value to our customers, to automotive culture “

Machine finishing eductions eductions in environmental load during production with the need for Fixed production plan Fixed production plan r unlimited World’s No.1 in Monozukuri World’s Heat treatment “ “ in Monozukuri creative thinking creative by diverse knowledge and bold, Monozukuri innovation driven by the world's finest operations Stock production

The world's best products produced produced The world's best products Stock production plan Raw processing (machining) Reduce lead-time to society provide value to our customers, provide to automotive culture and to automotive culture thorough elimination of waste thorough To

, as well as energy introduce saving and equipment. resource oduction. Forging/Casting Vision *By only having fixed production, the total lead-time is reduced *By only having fixed production, Mission JATCO JATCO aims to balance the need for Production Process Production to be the Aiming manage chemical substances and reduce waste. and reduce manage chemical substances advancing with upgrades of technologies and facilities and facilities technologies of with upgrades advancing efﬁciency What we value After Before improvements improvements s Monozukuri ’ isualization of unlimited challenge and ecognize the gap between the ideal state of Monozukuri Unlimited synchronization with our customers - with our customers Unlimited synchronization QCD innovation JATCO are in pursuit of these three synchronizations. in pursuit of these three are JATCO reducing production lead time. production reducing to synchronize COSTS by offering reasonably price products; reasonably COSTS by offering to synchronize by our customers; JATCO JEPS Activity Conceptual Diagram JEPS Activity Conceptual r ) V ) ) ) ocess efﬁcacy of pr Aiming to be the World’s No. 1 World’s Aiming to be the for quality, for cost quality, and Our delivery. JEPS (JATCO Excellent pr To Q: to synchronize QUALITY that emphasizes the value desired The target of JEPS is to achieve the following two JATCO JATCO strives to become the top Monozukuri company ■ (2 (1 Target of JEPS Target ■ JEPS (JATCO Excellent Production System) Excellent Production JEPS (JATCO and innovations, we can raise the level of efficiency and C: features within the entire supply chain. within the entire features D: to synchronize the time of DELIVERY to our customers, and the current situation, visualize the hidden weak points and actively make improvements. By repeating these improvements By repeating actively make improvements. JATCO Environmental & Social Report 2014 Report Social & JATCO Environmental

19 Activities Environmental Environmental Production Process Activities 22

e little “ switched 124 tons

Department We . The NAS is 2 . In charge of have been working Production Administration

environmental energy Nobuyuki Himata have therefore made

We Production Administration Section We eal time and implemented r emissions were reduced by 2 JATCO Environmental & Social Report 2014 Report Social & JATCO Environmental reduced by approx. by approx. reduced -type energy and accounts for a CO re eductions through lighting r s core energy saving measures that have lighting, carried out light thinning and turned share share of energy consumption at the company emissions we 2 are are promoting the same activity for the entir we okyo Electric Power Company, Incorporated since efﬁcient T emission signiﬁcant

In FY 2007, we collaborated with CHUBU Electric In FY 2013 CO 2 emissions reductions made through lighting improvements made through emissions reductions 2 things make a big difference rather been implemented systematically. Lighting is a typical with The companies from different industries. FY 2005 to install NAS battery equipment* are are one of ’ JATCO Power Co., Inc. to observe the combustion conditions of JATCO, JATCO, we have been actively promoting collaboration with company. electricity is at its peak. This helps the power plants control charged at night, when demand for electricity is at its lowest, a system to sustain the most suitable state of combustion. CO As a new global environmental conservation approach for to energy off off certain lights, while ensuring a bright enough environment. of 332,000 kWh In FY 2013, these efforts resulted in savings output and enables an efﬁcient use of electricity and the power is used during the when day, demand for CO Collaboration with companies in other business Collaboration with companies in other ﬁelds approximately 124 tons. approximately as a whole including factories. an aluminum-melting furnace in in power consumption, while improvements improvements to ceiling lighting in our factories. improvements at various factories improvements Presently, Presently, program there in which individuals and organizations could collect points through ecological activities and then exchange the points for goods. environmental in experience any have not do I While management or ISO planning and proposal, blessed with a great environment, and I hope to work I am with the members of my group to fulfill our goals. 70 60 50 40 0 33 14,168 tons .. 244,906 tons (Fisical year) 245 / 100 million yen) 46 46 2 00 .. 259 consumption rate 51 2 emissions per sales (100 million yen) Emissions 2 2 was approximately (tons of CO CO 1

CO 44 51

.. 275 50 50 ■■ emission reduction of 2 00 .. emissions of approximately of emissions approx. CO 267 2 53 53 re 44 .. reduced by approx. reduced 235 54 54 consumption rate: CO 11 / 100 million yen. 2 .. 2 228 consumption rate* 56 56 2008 2009 2010 2011 2012 2013 Intensity Trends NAS battery: a liquid sodium and liquid sulfur storage battery using a special ceramic CO 2 2

emissions we 2 1 2 * * 22 .. 284 emissions reduction targets for each site, 55 55 2007 2 emissions were 2 99 .. 284 5757 2006 My name is Himata and I was assigned here in July. Before that I was assembly, maintenance and modification. involved in machinery design, Before being assigned here, I worked with machinery used in cosmetics manufacturing. The company had regarding a the high environment. level There of was a awareness unique All employees working to fulfill energy-reduction goals In FY 2013 CO 00 .. internal environmental website for sharing as well as for 310 66 66 2005 Emissions and CO 2 reduction targets reduction In FY 2013 CO Glossary 2 O 0 CO Energy efficiency activities undertaken at facilities Energy efficiency 350 300 250 200 (Thousands of tons) Energy-saving activities at all sites CO JATCO sets CO 244,906 tons. The CO 46 tons / 100 million yen. Using FY 2005 levels as a standard, this is an improvement of 29.8%. Our aim for FY 2020 achieve 46.2 tons of CO is to JATCO carries out an prior evaluation equipment. For equipment in operation, we are taking steps to when installing new switch to energy- and resource-saving equipment that has low environmental impact. We will continue technological innovation to reduce the environmental impact at to actively pursue all our facilities CO in resulted 2013 and FY in activities plants. JATCO’s domestic business and not only those in charge of environmental conservation implement and with up come employees of number large a but energy-saving ideas. The ideas that were practice and proven actually to be significantly put effective are featured into on the boosting employee motivation. The energy saving ideas implemented in FY 2013 resulted in approximately 14,168 tons. ■ TC Voice JA

asting, c 50 tons educing CVT r In charge of Unit Engineering Section, Yuuichi Akiyama Production Technology emissions of 50 tons annually, tons 50 of emissions 2 Assembly Process Engineering Department Die-cast molds fabricated using the direct mold carving process emissions reduced by approx. by approx. emissions reduced 2 In FY 2013 CO ronmental load ronmental The scope of technological development is not limited to The molds used by JATCO for die casting and forging involve complex shapes, so electro-discharge machining (EDM) has been the conventional manufacturing method. This consumes method a lot of power, and the graphite used as electrode material and the sludge generated during EDM become indus- of process the promoting currently are we Therefore waste. trial direct mold carving directly at the Machining Center. Machining At the Center, reductions in improvements in machining machining programs and cutting conditions time CO of reductions through in resulted has and has significantly reduced the amount of industrial waste. and has significantly reduced the amount of production production lines but also includes activities to develop elemental technologies for bringing about innovation in parts and units. units as well as highly efficient next-generation units based greenhouse greenhouse gases emissions 50% by the year 2050. These measures include purchasing molten metal for die Pursuing groundbreaking technological Pursuing groundbreaking development Utilizing direct mold carving to reduce to reduce mold carving Utilizing direct envi on these activities. Product development from the Production The Production The Engineering Production Division is constantly for searching new technological as breakthroughs part of its plans to reduce The division aims to successfully develop the next version of generation vacuum carburizing furnaces, and eliminating the shaving process for gear parts, developing next- eliminating the shaving process unit weight through thin-wall die-casting and new materials. unit weight through Division can also contribute to reduction in environmental loads. in environmental Division can also contribute to reduction esource conservation activities throughout the entire organization. the entire throughout conservation activities esource

I believe that a line that is kind to the environment Compact facilities emphasizing flexibility were also proposed from last Standard Line year (JSL) framework, allowing based JGZ/JMEX on SITE#2 to the achieve the JATCO number one area efficiency. benchmark for Using a small conditioning area can means also that be reduced lighting to energy conservation. and contribute air to also produces stable quality. 130 tons emissions 2 are are making improvements to our production technology in

emissions. emissions reduced by approx. by approx. emissions reduced 2 2 ocess, expanding our energy efﬁciency and r ocess, expanding our reduction through final tester reduction 2 Not only are we making improvements to the products themselves, we are also streamlining the production Production Process Production We pr order to create a production line with lower environmental load lower environmental line with a production to create order emissions by 130 tons annually. educe lead time, which in turn will also help us 2 r (Final testers were reduced by aggressively carrying product both in improvements achieve to activities out performance and productivity.) Annual reduction of 130 tons 2. Environmental improvement by hydraulic press-in to servo press-in changing from (Electricity consumption, heat generation, and noise were controlled by switching hydraulic pumps used for product press-in to servo motors.) The Assembly Process Engineering Section of Unit the Engineering numerous environmental activities. Department has 1. CO carried out Initiatives to reduce environmental impact in assembly processes

In FY 2013 CO are working to reduce overall environmental loads throughout the production process production the loads throughout environmental overall to reduce working are We are aiming to achieve a higher target through bold reduction by reducing the final tester and valve tester reduction by reducing are are making changes to the processes and methods used 2

CO We oice Hydraulic press fitting is the conventional press fitting method used during the assembly times, all process. at pressure oil maintain to pump a requires machinery Hydraulic press fitting lot a producing and noise creating electricity, of lot a consuming of heat even when not being used. By converting to electric servo motors, which by not having a pump running constantly consume less power, and create less heat and noise, we are contributing to a better environment. The involvement of the Production Technology Division in the product of beginning very the from process design’ ‘production design is part of the proactive way that we enable ments improve- to both product performance and productivity. result, As we a can now drill down accuracy product of individual parts, and performance reduce product performance to the tests by front-loading (conducting in-process) the assembly accuracy testing, shortening the final tester/control valve tester cycle time. The number of testers required has been reduced, reducing CO and by collaborating with the R&D and Production divisions. and by collaborating with the R&D and Production proposals for all parts the Production Technology Division handles Technology for all parts the Production proposals We Shortening the lead time of our next generation CO CVT units and reducing Environmental improvements by converting from Environmental improvements by hydraulic to servo press fitting CO to manufacture our next generation CVT units in order to significantly further curb our CO V AT J JATCO Environmental & Social Report 2014 Report Social & JATCO Environmental

21 Activities Environmental Environmental Production Process Activities 24

and 0 0 0 0

Amount 1 0.001 of waste transfers 00 00 00 soil 00 00 00 00 00 99% (vs. FY 2000) water 100% (vs. FY 2000) 50 70 10 s production sites 51 29 0.3 67.7 eduction in FY 2010. Emissions volume atmosphere Unit: kg / year (dioxins mg-TEQ / year) esult, we were able to achieve r 943 JATCO Environmental & Social Report 2014 Report Social & JATCO Environmental ー 1,779 1,978 22 reduced by reduced 43,569 Amount handled 142,508 104,708 re eliminated by handled at ’ JATCO re

2 Chemical substance eduction in emissions by the year 2010 (compared r n-hexane dioxin ethylbenzenexylene 3,031 toluene 1,3,5- benzene 1,2,4- trimethylbenzene trimethylbenzene （mg-TEQ/year） ction by FY 2006 and a 99% r substances we edu In FY 2013 3 hazardous air polluting In FY 2013 3 hazardous In FY 2013 VOC emissions we In FY 2013 VOC emissions Class I Class I PRTR substance handling and emissions volumes (FY 2013) ances into the environment oved management of emissions of specific chemical substances into the environment Chemical 98% r Specified Chemical Chemical substance management Chemical substance processes production activities from hazardous air polluting substances hazardous Designated Substances Designated Substances Classification Eliminated the use of 3 maintained that success in FY 2013. In FY 2006 JATCO achieved a 100% elimination of the emissions of 3 hazardous air polluting substances* ■ As a measure to protect against soil and groundwater pollution, As a volatile organic compound (VOC)As a volatile organic compound activities based on the measure, The amount of chemical substance emissions and transfers subject to PRTR* to FY 2000) were conducted. As a Managing Volatile Organic Compounds Managing Volatile against soil Measures contamination and groundwater substances management PRTR in Japan are shown in the graph below. In FY 2013, N,N- the use of chlorinated organic solvents was abolished. As these for VOC 30% action plan of Japan Auto Parts Industries Association (JAPIA), aiming a solvents had been used in the past, JATCO is currently monitoring is currently solvents had been used in the past, JATCO dicyclohexylamine, 1,2,4-Trimethylbenzene, and n-hexane revisions made to Chemical Substance Control Law. made to Chemical Substance Control revisions were added were to list of chemical controlled substances based on its records and the environment for any signs of impact. for any signs and the environment its records

d (Fisical year) zero 100% ecycling. r 2013 0 2012 educe waste by 14% (vs. FY 2005) r s of waste and instead 0 2011 into the waste reduction Direct landfill volume ‘zero' Direct 0 landﬁll 2010 0 ecycling and material r 2009 initiatives, JATCO is driving forwar

3 2008 ect landﬁll waste wa o at our business sites in Japan. 8 . PRTR: The Pollutant Release and T impr a law to promote ransfer Register, 3 Hazardous air pollutants: dichlor tetrachloroethylene omethane, trichloroethylene, 2007 1 2 activities * * achieve recycling rate was achieve recycling zero emission of waste zero 5 emissions at each of our business sites, we 2006 “

2 zero zero emission 6 “ 2005 esult of these efforts, we were able to cut the amount of In FY 2013 r 88 ） In FY 2013 achieved dir t 2004 In FY 2013 total waste was reduced by In FY 2013 total waste was reduced （ Glossary are are implementing internal activities to educe CO

0 r 90 80 70 60 50 40 30 20 10 By incorporating Trends in direct landfill waste (Japan) in direct Trends Setting easily practiced rules for Setting easily practiced separating waste Waste reduction activities reduction Waste 100 Zero emission Zero All employees participate in waste reduction are are taking various energy-saving measures. Each business site To sets its own targets and each worksite posts its own ideas that for energy preservation. for energy preservation. have been implemented to raise motivation and share methods have been implemented to raise motivation and share landﬁll-bound waste to zer goal. As a System (ISO 14001), we are promoting activities to achieve this ways and devising ways to do this. There are some waste We no option but to dispose of. Such waste materials that we have assessing whether it can be reduced, reused or used in other promotion promotion management of the Environmental Management criteria so that it can be recycled. % recycling rate Achieved 100% recycling As part of its is disposed of in accordance with the established separation with efforts to avoid the incineration or take measures such as thermal achieved a recycling rate of 100% at our business sites in Japan. achieved a recycling Also, to effectively collect waste for use as resources, we have strict collect waste for use as resources, Also, to effectively ■ measures measures for separating our waste. Through these activities, we “

, arm W In charge of environmental energy Kiyohiko Hasegawa Production Administration Section Production Administration Department between June and September ofﬁces Conservation activities in the ofﬁce Conservation activities clothing. From December to March we participate in and encourage our employees to wear Cool Biz friendly light Biz, encouraging our employees to wear more clothes if they clothes more Biz, encouraging our employees to wear We launched a dedicated environmental intranet site to awareness raise among environmental employees. website is This updated with internal external event and information, as well as content such as JATCO eco test and Ecodrive test that help employees learn more about environmental issues. To raise awareness of energy efficiency, we posted on the website a case study conducted in the company titled Presenta- Study Case Efficiency “Energy tion 2013". The knowledge gained from this is being spread whole company. throughout the JATCO has begun announcing the consumption previous within day’s the power energy-saving company activities by in visualizing our actual a power use. This allows all employees to easily check bid the power consump- to promote tion in the various regions and serves as a guide saving. for energy With this initiative, energy-saving activities by individual employees. we aim to promote voluntary temperatures temperatures in our Implementation of Cool Biz and Warm Biz of Cool Biz and Warm Implementation Visualization of power consumption to Visualization of power consumption activities promote voluntary energy-saving activity through Employee awareness website the environmental As part of our energy conservation efforts, we raise temperature. feel cold, and allowing us to lower the set air-conditioning esource conservation activities throughout the entire organization. the entire throughout conservation activities esource Regardless of the fact that it is such a large company, large a such is it that fact the of Regardless the plant’s environment such activities Environmental area. each in maintained has been extremely as well energy conservation and resource are also progressing steadily. I find this truly amazing. conservation I think that a large part of this can be attributed to the dedication and efforts of working here. each and every As a person member of the environmental division, I aim to awareness, environmental raising further to contribute which is where one of JATCO’s strengths lies. 5.0 tons Green roof Green are are making improvements to our production technology in

emissions reduced by approx. emissions reduced 2 ocess, expanding our energy efﬁciency and r ocess, expanding our Not only are we making improvements to the products themselves, we are also streamlining the production Production Process Production We pr order to create a production line with lower environmental load lower environmental line with a production to create order emissions by approximately five tons per year. 2 Since September, I have working transfer as from a Aichi temporary Machine remained the industry. same as it was My prior to my job transfer, in has the environmental division. However, the significantly larger scale of JATCO took me by surprise. For example, even the simple act of walking around the vast grounds of the plant once feels as if it has an scattered also are offices The diet. my on effect actual across various locations, and it is not easy to move from place to place. Ever-expanding scope of activities to further raise environmental awareness In FY 2013 CO O Conducting various environmental activities environmental Conducting various Rooftop solar panel array Expanding the J-ESCO team overseas Installation of solar power generation system Installation of solar greening and rooftop On the roof of the head office building we have installed a 10kW a installed have we building office head the of roof the On solar power generation system that takes advantage of sun’s the renewable energy. This energy is used building’s air conditioning. The to introduction of this system power has the cut annual CO JATCO Plant Tec, which began at JGZ, has established energy an conservation equipment auditing team (the department. team) in cooperation with the JATCO Engineering J-ESCO Service Company. J-ESCO is an abbreviation of JATCO Energy Activities commenced this year with the goal to work towards the effective use of energy by carrying out energy conservation equipment auditing at overseas sites as well. A decision was made to start up a J-ESCO team at JGZ first, and Mr. Huang and Mr. Ma (an interpreter) were dispatched to Japan to study auditing skills. Over the long two-month period, both worked the on score test high a achieve to able were and diligently, very their understanding. One month later, they carried out an audit of equipment on-site at JGZ, where the workers greatly encouraged were to have new reliable partners. In addition, we used the inherent nature of plants to lower the lower to helped has that roof green a implement to temperature of requirements power the reducing temperature, building’s the the air conditioning in summer. TC Voice JA JATCO Environmental & Social Report 2014 Report Social & JATCO Environmental

23 Activities Environmental Environmental Distribution Efforts / Environmental Communication Activities 26

JATCO Environmental & Social Report 2014 Report Social & JATCO Environmental s Kambara area site, has JATCO been participating ’ funds used to purchase the plants also came from the sale of recycled aluminum cans collected in-house. aluminum recycled website. http://www.jatco.co.jp/ENGLISH/society/reports.html 2013 with many employees participating as volunteers. The Our booth at the 43rd Tokyo Motor Show Tokyo Our booth at the 43rd At JATCO The various initiatives contained in the Environmental and Distribution of plants Disclosure in the website Disclosure Exhibit at the 43rd Tokyo Motor Show Distribution of plants (Kambara area) in initiatives run by the local government to help clean up Koike River, River, as well as giving away potted plants to local children, Social Report can be downloaded at the following JATCO since FY 2004. These activities were performed on July 7, JATCO exhibited at the 43rd Tokyo Motor Show held at the Tokyo International Exhibition Center through December 1, 2013. In addition to displaying the Jatco from November 22 CVT8 HYBRID transmission for vehicles, the Jatco hybrid CVT7 with auxiliary front gearbox for mini wheel and compact front wheel drive drive vehicles, and the Jatco CVT8 mid- for to large-sized front wheel drive vehicles, the exhibit also displayed a future CVT concept model and initiatives to reduce booth The transmissions. JATCO’s of impact environmental the was very popular with the show’s visitors.

enamed the Environmental r focus. eport was r JATCO uses various communication channels to help people understand communication channels to help uses various JATCO to the environment. its approach Environmental Communication Environmental Making the environment the origin of our communication the origin the environment Making this 2009 eleasing baby ﬁsh into the river From From JATCO actively shares its commitment to the environment actively shares JATCO on interaction Communication activities centred Every year since 1999, Jatco has been inviting local kindergar- tenstudents to help release baby Riveras Ayu a way to restock fish the fish population, into and the date for the Tajuku this year was June 21, 2013. This year’s event, the 15th, took number large A playground. Children’s Sakaemachi the at place of kindergarten children participated in the eventand helped to the with purchased were fish baby The fish. 350 around release proceeds from an in-house aluminum can recycling program. Caravan (Fuji area) and Social Report, of which the social pages covering our social activities, were given more social activities, were every year since 2005 in an effort to help people understand its in an effort every year since 2005 and day cares in Shizuoka Prefecture in order to foster greater The company has been publishing its Environmental Report JATCO is an annual co-sponsor of the Shizuoka Environmental Ayu (sweetfish) baby fish released into rivers Performance by the Shizuoka Environmental Caravan Performance by the Shizuoka Environmental r Children Publication of Environmental and Social Reports Publication of Environmental Co-sponsor of the Shizuoka Environmental broad environmental commitment. environmental broad Caravan. These activities involve mascot performances and the handout of environmental picture books at mainly kindergartens awareness awareness toward the environment in children. Our involvement to help children think more about the natural environment. think more to help children in this fun and enlightening program is part of our commitment Activities Environmental

, . a (Fiscal year) esin t r 4 . 11 and JR train

. 2 t 2 educe waste. . r 13 t by 83.3%* annually with the help of our 7

. 2 15 1994 t 0 . 4 eusing the materials in other r t 5 . eceived assistance from the 8 (research conducted by the Japan Freight Railway r ed to achieve load efﬁciency 2 s supply parts from the Hiroshima area. ’ t emissions that accompany distribution ecycle the base material and 2 .

r 8 2 emissions by 75%. 2 t 3 . 1 2007 2008 2009 2010 2011 2012 2013 ） t Specifically, Specifically, the transport of products to our customers In FY 2005, we switched from truck to train for the educe CO will continue to promote this modal shift and reduce the （

8 6 4 2 0 r Trends in reuse and recycling of resin containers of resin and recycling in reuse Trends 16 14 12 10 raditionally, resin raditionally, containers and protective resin cushioning educed to 16 containers, cutting CO during transportation and storage. When these have become unusable due to deterioration or age, in the past T Reuse and recycling of resin containers of resin Reuse and recycling materials are used to protect products from damage since 2004 we have been number of trucks requir result, result, the daily shipment volume of seven 10 ton trucks was products, products, and have we had discarded them as industrial waste. However production production base by truck to the Hiroshima (780 km) and The supply parts that were delivered from the Shizuoka manufacturer manufacturer to domestic customers. We transportation of 546 tons-CO Company). Modal shift ■ Okayama (680 km) areas were subject to this change. As *The comparison between truck transport of 3,276 tons-CO To r processes, processes, we are improving our transport methods and have implemented a modal shift since Furthermore, Furthermore, in early 2006, we switched to using trains for the Okayama area and further expanded our modal shift system. distribution of JATCO reducing CO reducing in the Kyushu area is now done by ferry instead of truck, thus (Fiscal year) 66 .. 71 71 2013 emissions 2 29% (vs. FY 2009) 00 .. km) . 81 81 2012 66 .. After cleaning 78 78 reduced by reduced 2011 re Before cleaning Before 66 .. ) ÷ Shipment Volume (1000t 87 87 2010 2 emissions rate (index) emissions we 2 2 JATCO is moving forward with the rationalization of its logistics system as a means to reducing its impact on the its to reducing system as a means of its logistics with the rationalization moving forward is JATCO transmission components and units. the transport of from environment Distribution Efforts Distribution associated loads the environmental Reducing with transportation 100 2009 reduction in transport reduction emissions (t-CO 2 In FY 2013 CO 2 Promoting the improvement of shipping and packaging materials the improvement Promoting Trends in the CO in Trends Switching to improved transportation systems transportation Switching to improved 90 80 70 60 110 100 rate over the past five years. This Japan target only. There was covers a 12% improvement logistics over the previous in realizing an average year in FY2013. The goal was achieved by 7.9% reduction over five years. The delivered packaging for purchased parts is currently reduce to measure efficiency loading a as improved being the number of trucks used. *CO JATCO has established a green logistics target to achieve a annual reduction in its CO greater than 1% average ■ CO Improved packaging for purchased parts Activities to clean containers are also being promoted. Activities to clean containers are Examples so far have not only improved cargo transport efficiency by by cargo transport efficiency Examples so far have not only improved safety in handling cargo. eliminating wasted space, they have also improved JATCO Environmental & Social Report 2014 Report Social & JATCO Environmental

25 Activities Environmental Environmental

Environmental Conservation Activities Overseas Activities Global Features JATCO’s sites around the world are each joining in initiatives to reduce our environmental load. Environmental Conservation Activities Overseas

Mexico China

At JATCO Mexico, employees are highly motivated to address global environmental protection issues as a key social JGZ’s environmental management system responsibility of the company. JATCO Mexico’s environmental management system JGZ began building its environmental management system from 2013, and acquired the ISO14001 accreditation in March 2014. In order to realize a society where automobiles and the environment Since its establishment in April 2003, JATCO Mexico representatives from each department and is headed coexist in harmony, JGZ has established an environment committee and has been engaged in a variety of environmental by the company President and Vice-President. The ISO office for the operation of its environmental management system. activities, including establishing environmental policies, Committee comprehensively debates, assesses, and The environment committee is composed of a general manager, respec- conserving energy from the power supply side, and tracks activities related to the environment. The tive assistant general managers, and representatives from each depart- improving the company’s recycling rate through waste Environmental Legal Requirements Subcommittee is ment. It manages, assesses and follows up on environmental activities sorting. In particular, starting in 2009 the company comprised of managers in charge of the environment comprehensively. Environmental policy ISO14001 certification worked to construct an environmental management as well as members drawn from production, occupa- An engineering department has been set up in the ISO office to carry out system, which underwent a review in March 2010 and tional safety and health, finance, and other depart- assessments on compliance with environmental regulations as well as obtained ISO14001 certification in May 2011. From ments. The Subcommittee determines, assesses, and other everyday tasks. this point forward, JATCO Mexico will operate this applies legal and other requirements pertaining to the system as it strives for continuous improvement and environment. Finally, the Energy Conservation JGZ’s energy conservation activities works to achieve “a society where the environment Subcommittee deliberates and promotes the efficient and automobiles coexist in harmony”. management of electrical power, water, gas, and other 2014 In order to mitigate environmental pollution, JGZ has Items Judge The company has set up three committees to operate power sources at each shop. Targets Results put in place energy conservation activities starting in CO2 emissions generated its environmental manage- ↓ 3,100T 1111.9T ○ 2014. Its goal is to reduce energy consumption by 3% from sales activities ment system: the Environ- in comparison to the previous year. Waste reduction volume ↓ 31T 30.21T ○ mental Committee, the *The data is consolidated up until August. Environmental Legal Requirements Subcommit- tee, and the Energy Thailand Conservation Subcom- mittee. JATCO Thailand, where production began in 2013, aims to In these ways, JATCO (Thailand) Co., Ltd. has put in The Environmental lessen its environmental impact through measures under place environmentally friendly improvement measures Committee is composed of the banner JATCO Thailand Green Action, as follows. together with local companies. ISO14001 certification Key members behind construction of the environmental management system 1. Purchase molten metal instead of aluminum ingots Continuous improvement initiatives at JATCO Mexico 2. Introduce vacuum carburizing heat treatment equipment JATCO Mexico establishes environmental objectives every fiscal year as the company seeks to reduce its environmental 3. Treat plant wastewater load. The company also subjects its environmental management system to continuous improvements, conducting an 4. Recycle resources through separation and Pot for molten aluminum annual review and setting objectives for the next fiscal year. collection In FY2013, JATCO (Thailand) Co., Ltd. used 1,135 tons 5. Maximize greenery on plant grounds 2013 Items Judge of molten aluminum and emitted 2,825 tons of CO2. Targets Results ％ Improvement Compliance of legal 100% 100% ( 398/398 ) ー ○ ■Purchasing system for molten aluminum ingots requirement Aluminum molded by an aluminum ingot manufacturing company was re-melted by JATCO and used to make components. Electrical energy 147 Kwt 140 Kwt Reduce 4.76% ○ Aluminum ingot manufacturing company JATCO consumption per unit* Previous Aluminum Solidification system scrap Melting Transport Melting Machining Amount of CO2 and molding 0.0710 ton 0.0687 ton Reduce 3.23% ○ emission per unit* JATCO purchases molten aluminum still in a liquid state from the aluminum ingot manufacturing company, Water consumption per unit* 0.255 m 3 0.248 m 3 Reduce 2.74% ○ which conserves energy by eliminating the need to solidify and re-melt the same aluminum. Aluminum ingot manufacturing company JATCO ％ recycling of industrial 87.95% ( FY2013 ) 90.12% Increase 2.17% ○ Currently Aluminum Solidification and Solidification and waste recycling molding molding system scrap Melting Machining Transport * Units produced: Generated per unit of CVT produced Evaluation/○:Achieved target: ×:Did not achieve target

27 JATCO Environmental & Social Report 2014 JATCO Environmental & Social Report 2014 28 Social Activities Social Activities JATCO Recognizes the Importance of its People in Continuing to Provide Value-Added Transmission Units that Meet the Needs of Global Markets

providing facilities for these activities and giving plant tours The growth of each and every employee and sponsoring hands-on events, in essence undertaking produces a relationship of trust uniquely JATCO social contribution activities that leverage the resources cultivated from our business activities. As demands today call for a higher level of environmental Going forward, we wish to contribute to the sustainable performance from automobiles, JATCO’s transmission units development of society in order to pass on a rich and diverse are required in many markets around the world, including world to future generations. developed countries and emerging countries alike. In order to continually meet the expectations of these markets, it will be Keys to making further progress critical to provide superior transmission units at a lower cost and in a speedier manner. To that end, JATCO must continue to tackle even greater challenges. Collaboration with our suppliers, which provide us with JATCO values its employees so much that it refers to components, as well as our automaker customers is absolutely them as“ human assets. We also value the diversity of each essential to our business activities. The Great East Japan and every individual that is part of the JATCO family, and we Earthquake that struck Japan on March 11, 2011 brought strategically promote building positive workplace environments about significant damages to the plants of JATCO’s supplier so that we can utilize the strengths of every employee to the and customer companies. JATCO strived to provide information maximum extent possible in striving to achieve the shared goal on production and to ascertain the damages of each of its of sustainable growth. We believe that the constant evolution business locations as well as to provide assistance to restore and spirit to take on challenges exhibited by our employees the operations of damaged companies. In the earthquake will provide the impetus for JATCO to achieve sustainable that struck Eastern Shizuoka Prefecture later in March 2011, growth and by extension foster relationships of trust with its this time JATCO’s facilities suffered heavy damages and its Corporate Vice President Takeshi Kitajo stakeholders. customer as well as supplier companies came to the rescue to provide significant amounts of assistance to restore operations [JATCO’s various stakeholders] at our affected plants. As a member of the supply chain, today Building relationships with the local I now feel a renewed sense of importance in inter-company community first begins by making collaboration. Customers employees proud of the company During this disaster, we implemented the response plan ○Automakers (BCP) formulated to allow operations to continue smoothly in ○End-Users In order to build relationships of trust with our stakeholders, it the case of a major disaster, and our employees came togeth- will also be equally important to develop positive relationships er as one to take initiatives to enable prompt product supply. with the local community as a good corporate citizen. For The bond of solidarity and experiences in overcoming these JATCO to be a company that is well regarded by the local crises will without a doubt act as an important foothold for our community and local residents, however, first we need to future progress. Going forward, together with its stakeholders Shareholders Employees be a company that our employees are proud of. Employees JATCO will continue to promote the growth of its people in

JATCO that have pride in their company and that are active as order to provide value to its customers, automotive culture good corporate citizens with positive character in the local and society. community will help foster a relationship of trust with society, I believe. JATCO actively supports the social contribution activities of each and every one of its employees by

Community Suppliers

29 JATCO Environmental & Social Report 2014 JATCO Environmental & Social Report 2014 30 Social Activities BCM Responding to Emergencies and BCP Activities Planning for accidents and disasters to create thorough readiness Responding to Emergencies

Preparing for emergencies Safeguarding our employees and equipment

JATCO has prepared countermeasures against major impacts on production and supply caused by disasters Earthquake countermeasures for Ensuring the safety of our employees such as earthquakes, as well as epidemics, accidents, and other unforeseen troubles. buildings and equipment JATCO has developed detailed procedures on We have instituted a wide range of earthquake evacuation sites and evacuation methods in order to Initiatives toward BCM* countermeasures at our primary production sites in ensure the safety of its employees in the event of a Japan to prevent damage or injury to employees, large earthquake. equipment and buildings as well as ensure plant We also regularly hold training drills based on a Dealing with major earthquakes dealing with automobile manufacturers, suppliers, functions can be quickly restored. These measures wide range of scenarios, including disasters striking As one component of BCM, JATCO conducts disaster the community, and the media. Through repetition include seismic retrofitting of our buildings, securing during the daytime or nighttime, to make these prevention activities aimed at first-response rescue, of such training, we aim to ensure a rapid response. production equipment in place, and making sure procedures known to all employees. In addition, we secondary disaster prevention, and speedy and To roll out our BCM more smoothly, in 2011 we that nothing can fall from the ceiling or cranes. As a maintain stockpiles of supplies at our sites, such as effective recovery, all directed toward major (seismic expanded our BCM room, further strengthening member of the supply chain, we are also constantly water, food, helmets and blankets, to prepare for an intensity 6 or higher) earthquakes feared to strike our ability to respond to business continuity risks thinking up new measures so that any impacts on our emergency event where employees may not be able sometime in the near future. including emergencies. In addition, experience customers’ production are kept to a minimum. return home on the same day. As a first-response measure, in March 2010 we gained from this BCM development process is also completed preparations for an emergency earthquake utilized in the BCM development process of our notification system. We further enabled a system in overseas production bases including Mexico, China workplaces to confirm employees safety after an and Thailand. The JATCO Group will continue to incident, and worked to shorten the time required deploy BCM across all of its operations globally. to complete confirmations. Moreover, the disaster training we conduct every year incorporates the activities of our in-house firefighting team and involves participation by all employees. As one recovery measure, from FY 2008

we have conducted BCM training for all relevant Newly installed brace Disaster relief supplies stockpiled at one of our sites in Yokohama. divisions. In this training, each division coordinates among themselves to find solutions to anticipated Earthquake countermeasures at our problems facing business recovery, based on damage overseas sites assumptions from an earthquake. This includes BCM training implemented in the BCM room in October 2013 To prepare for unexpected earthquakes and other major disasters, BCM activities similar to those undertaken in domestic bases are expected to be deployed into JATCO’s ever-expanding overseas bases. In ■BCM Promotion Organization addition, JATCO Thailand, which began its operation in July 2013, have taken on the lessons from the serious Risk Management Global BCM Executive Committe flooding in 2011, and have increased the banking (the Secretariat foundation of the buildings) height by 50 cm in order to BCM Promotion Center The increased foundation height of the construction site. BCM Committee be more robust against tsunami and water damage. Individual Overseas Shared Risks Globally BRM Supply Stoppage / External Manufacturing Procurement / In-house Manufacturing BCM Investigative Commission Collaboration Production Control Department Influenza : Safety & Health Administration Floods : Production Administration Department Cooperating with local safety enhancements BCM Secretariat Unique Local Risks Strike : Human Resources Department Assisting with the evacuation of local Activities to promote BCP Massive Turnover : Human Resources Department Primary Risks community members (Business Continuity Planning) Stoppage of Power Supply : We have made plans to provide local community From FY 2008, we have undertaken efforts to promote Major Pandemic Part IT Risk Production Administration Department members with a place of refuge at our sites if they have the spread of BCP through training sessions aimed at Earthquake Purchasing Internal Fraud : Human Resources Department / Internal Audit no other evacuation site to go to following a large-scale local small and medium enterprises in Fuji City. JATCO natural disaster. As a member of the local community, supports the program by providing instructors.

*BCM: An abbreviation for“ Business Continuity Management, which refers to creating a business continuity plan (BCP) and conducting training exercises under we are always committed to helping those in need. Glossary this plan in preparation for addressing a situation where the company can no longer continue to operate due to a large-scale natural disaster or pandemic.

31 JATCO Environmental & Social Report 2014 JATCO Environmental & Social Report 2014 32 Social Social Social Activities Activities Working with Suppliers Activities Employees and our Workplace

Aiming for a partnership of mutual growth Aiming for safety ﬁrst in the workplace

Building upon a foundation of trust with our suppliers, we are working to maintain and strengthen cooperative Through workplace risk assessment activities and employee health care, we are creating workplaces in W relationships based on equal footing and aimed at mutual growth. which all employees can perform their jobs safely and comfortably. orking with Suppliers / Employees and our Workplace

JATCO’s commitment to maintaining and strengthening Procurement in the global marketplace Ensuring occupational safety its cooperative relationships with suppliers as well as contributing to the development of society With the expansion of production in Mexico, China and With the intention of prioritizing safety in all our work processes, Through the speedy implementation of “hard” countermea- Thailand, JATCO will promote local production and LCC in we have established “Absolute Safety” as our slogan, and are sures such as facility improvement and “soft” countermeasures Based upon our relationship of trust with our suppliers, JATCO is order to secure fairness and to shorten the distance of parts implementing safety initiatives with a focus on activities related such as education and guidance, we aim to move from a state working toward our shared growth and the achievement of a society transport in a global market. to on-site observation, such as risk assessment activities, of “zero accidents” to one of “zero danger.” where automobiles and the environment coexist in harmony. SESI*1, 5S patrols, safety patrols for plants (divisions), public Cooperation under fair, even, and transparent standards is vital EUROPE work inspections, and safety commitment inspections. to the achievement of those goals. That is why we implement and ・Germany ・Netherlands Work related particularly to processing glitches is accompanied follow clear rules (as exempliﬁed by Green Purchasing) for supplier by a high risk of work accidents occurring, as well as loss in North selection and commendation of excellent suppliers. China Japan America production activities. We therefore place an emphasis on In the future, as we expand our procurement from the global eradicating the need for such work. Thailand marketplace, JATCO will undertake the sharing of CSR (Corporate The risks that are identified through the implementation of these Social Responsibility) and continue contributing to the sustainable ASIA activities are recorded, and the degree of priority for responding ・India ・Indonesia development of society. ・Vietnam ・South Korea to the risk as well as the appropriate countermeasures are ・Taiwan determined based on the significance of the risk. A Safety check being carried out

Ensuring employees’ health (occupational health) Environment-related initiatives

Mental health initiatives Initiatives to improve employee lifestyle habits Managing environmentally hazardous substances Collaboration with suppliers To maintain the mental and phisical health of employees, we To counter metabolic syndrome and other lifestyle-related JATCO manages substances with environmental loads in its We will further promote Green Purchasing activities in response have partnered with an EAP *2 specialist organization to provide illnesses, JATCO offers health guidance to employees who are products based on the JES M9001 technical standards that to rising environmental consciousness around the world. a stress evaluation for all employees once per year. The results identified as in need based on health check-up results. We regulate the use of specified substances. In FY 2010, we In addition, we provide awards to recognize suppliers which have are provided as feedback to each employee so that they can be provide various forms of guidance, such as continuous support continued to pursue activities under this program together with made particular efforts towards JATCO’s aspiration to achieve a aware of their own stress level. Consultation, evaluation, and including follow-up after interviews, to steadily improve their suppliers, centered on the three items discussed below. society where “automobiles and the environment coexist in counseling services are also made available to employee family health condition and to achieve their health goals. 1. Global implementation of JATCO’s Green Purchasing harmony” and cooperate in our endeavors. Since FY2011, we members. Guidelines have also been recognizing suppliers which made contributions to Training sessions previously available to managers and supervi- We manage substances with environmental loads on a global business locations in Japan, Mexico and China, in addition to our basis including the Japanese headquarters and overseas sors have been expanded to cover regular employees aiming global awards. The scope will be further expanded to include afﬁliated companies. for early identification of those requiring observation, as well as 2. Standardizing the application of Green Purchasing to Thailand in FY2014. JATCO will continue to deepen its relation- preventive measures. new suppliers ships with suppliers to work on initiatives for the environment. We promote management of substances with environmental loads at new suppliers by asking them to submit Green Outline of Green Purchasing Procurement-related documents. The Green Purchasing activities for which we are asking your cooperation at this Guidance on preventing lifestyle-related illnesses 3. Conformance with the EU-REACH Regulation time, are the activities to promote environmental conservation through the products We have expanded the scope of items under management to purchased from our suppliers. Important activities include the following three items: include not only the data on chemical substances in products 1. Conﬁrmation of intention toward Green Purchasing Health education events but data on chemical substances in shipping parts and in 2. Development of an environmental management system From 2013, health education events are being carried out 3. Reporting on the usage conditions environmental impact substance packaging materials for transport and more recently supplies We favor those suppliers who aggressively promote Green Purchasing activities in during the National Labor Health Week (October 1 through 7). used in the production process (such as stationery including product purchasing. We also ask our suppliers to favor their suppliers who are Numerous activities were carried out in FY2014 for employee magic markers). We will continue with our persistent efforts to aggressively promoting Green Purchasing activities in product purchasing. reduce the use of environmental load substances. health education, including health lectures, the free distribution of relaxing goods, the promotion of sleep timers helpful in getting a good night's sleep, Supplier commendations and promoting a common vision JATCO and the production of Every year JATCO awards a select number of its suppliers at an awards ceremony to News an education video on express its thanks and recognize the continuing partnership. sleep created with the Although there were many ways in which these suppliers contributed, including new product development and production capacity expansion, JATCO and each of its suppliers PR department. always share the same vision that, through transmission units, help achieve a society “where automobiles and the environment can coexist in harmony”.

*1 SESI : An abbreviation for Safety Evaluation System, this is a system for quantitatively evaluating the level of safety in workplaces (JATCO safety evaluation Picture of the 2013 awards ceremony Glossary standards). *2 EAP : Employee Assistance Program

33 JATCO Environmental & Social Report 2014 JATCO Environmental & Social Report 2014 34 Social Activities Employees and our Workplace 36

) Kurumin “ Kumiko Torii DevelopmentDevelopment Global PersonnelGlobal Personnel (also known as Human Resources Department Next Generation Accreditation Mark Next Generation Accreditation JATCO Environmental & Social Report 2014 Report Social & JATCO Environmental have also positioned work-life balance

We upporting the promotion of diversity, and year s compatible with child and family care. compatible with child and family care. by year are enriching our programs to support work that is As one of its diversity initiatives, JATCO promotes employment opportunities without concern for nationality. The already has company employees from many nations, including China, South Korea, and exchange the promote to place in put been also have initiatives Mexico among of others. human resources and Furthermore, technology between the respective overseas bases. At times such as projects, the during relevant parties, including reviews members of for overseas new bases, come together as global JATCO, and work as one to resolve issues. circumstances. circumstances. as a measure Interaction among members of overseas sites Encouraging the activities of multinational human resources

t g fiscal year, it was held in Cambodia. Participants remarked that they confidence that they could work overseas were after actually “able to getting out gain of the countries first hand”. country and business global JATCO’s to contribute to continue experiencing will I foreign nurture that programs training executing and planning by are who personnel junior only not for global-mindedness new to the company, but also for all JATCO personnel. plans based on Japan’s Law for Measures to Support the Support to Measures for Law Japan’s on based plans Development of the Next Generation. In September 2013, as part of the Ministry of Health, Labor and Welfare’s Equality and Coexistence Promoting Company Awards, we were awarded “Chief of Shizuoka promoting equality the of Award” Excellency Bureau Labor company category, which is given of fulfilment to encourages that initiatives exemplary promote companies who potential of women. eaded human h teering TCO has launched S and values tha has changing times, new and

to work-life balance continue providin Diversity “ personnel and the creating creating ith that in mind, JA sponding of re Production Division Officers Purchasing Division Officers Sales & Marketing Division Officers Development Division Officers lobally and promote promote employment g and enthusiasm, and are expanding while management issue management established a actively as allow work tailored to individual employees we to business ed by f conﬁdence s initiatives have received praise from outside the company as well. s initiatives have received praise from outside the company as 008 our staf 2 elated initiatives. ﬂexibly JATCO is developing personnel who can be successful on a global scale. I am involved in this important task in the Human Resources Department, training and programs am running such as diversity, global communication, and improving skills, as understanding of cultural well as language education. A “second-year employees overseas training program” was launched from FY2013. The program is with targeted at all employees effect this For employment. their of year second the in are who Global Personnel Development ealizes the importance of the President r strive to create a workplace environment in which all FY Committee

In evelop ecognize the importance JATCO’s support for men’s participation in child following fathers for leave work of promotion the including care, childbirth and the awarding the raising in resulted program, hour working shortened of the target of age the “Next Generation for Accreditation Mark” (colloquially the known as “Kurumin”) by the Minister of Health, Labor and Welfare in 2009 and 2012. This mark recognizes companies that fulfill executing, and specified accomplishing general criteria, employer action including drafting, Diversity Steering We r O the President, d Organizational chart of the Diversity Steering Committee Respecting employee diversity Respecting employee Human Resources Department esource deployment without gender, nationality, or other bias. nationality, deployment without gender, esource Committee Chair Secretariat TC JATCO JATCO Work-life balance Work-life life. mindset that enables compatibility between jobs and private JATCO systems to can work with Voice good value to customers Undertaking diversity as a management issue Undertaking diversity To positioned diversity ■ incorporate diverse perspectives. W incorporate diverse perspectives. a variety of r by we Committee, r JA

elated to r and good conduct, the company aims to create an environment where employees feel motivated to carry out their duties. Training at our Mexican base Through these trainers support employees that have a to desire learn on their own, President’s Commendation President’s The Global President Award presented in commendation and of the achievements and good Executive Award are conduct of employees who have contributed to improving accurately By company. the of reputation and performance the evaluating, recognizing, and commending such achievements JATCO is advancing the development of local employees as manage- on-site of knowhow the transplant to efforts its of part ment and specialized skills that it has built up over many years sites, production overseas its to Japan in sites production its at so that they may be operated and implemented based on the same concepts and approaches. Already, JATCO Guangzhou same methods as in resource development initiatives using the is putting in to Guang- Japan, through the efforts of expatriates dispatched place human zhou from JATCO Japan. Starting from FY2013, the initiatives have been further expanded. Instructors from to JATCO months half a Japan and two for Mexico JATCO to dispatched were development the at aimed programs various in trainers as serve of Mexican supervisors. Currently, these being activities are also extended Thailand. to JATCO who have undergone development programs, JATCO aims to raise the level of, and to develop, all employees working at JATCO throughout the world. can take on their own. The program provides opportunities to work. Fostering the desire to learnFostering the desire Commendation System Providing support for the development of human Providing support for support overseas production sites resources who can To take a variety of courses, ranging from job-related content to JATCO JATCO has prepared educational courses that employees personal development programs not immediately

Through on-the-spot expressions of gratitude, we aim to promote a culture of praise and boost employee motivation to be proactive. esource esource exchange program with r mployees to thrive in whatever division to e JATCO practices JATCO respect for diversity along with human resource development matched to the times. Our goal Employees and our Workplace our and Employees growth support individual that for workplaces Aiming is to create workplaces that spur motivation to work and allow employees to experience growth as individuals. to experience growth motivation to work and allow employees workplaces that spur is to create esource esource exchange program with our overseas r help young employees grow quickly as global human enable new

Working toward a corporate culture of recognition and praise of recognition a corporate culture toward Working Respecting the independent growth of each individual Respecting the independent growth Efforts to develop human resources globally to develop human resources Efforts Thanks Award recipients Thanks Award and company life. offer offer guidance and advice to ensure a smooth entry into work “Thanks for the quick response on...” “Thank you for always brightening the workplace with These are the expressions of gratitude we your write and exchange cheerful greetings...” by card under the Thanks Card System introduced by JATCO. experiences that include everyday living. experiences that include which they are assigned, we implemented our Freshman mindset in participants, not only through work but also diverse its overseas locations. This program aims to instill a global JATCO JATCO operates a human To resources able to respond to our expanding overseas markets, to our expanding overseas markets, able to respond resources Human Thanks Card System Thanks Card Nurturing personnel with independence Dealing with globalization Dealing with globalization Global Education Program This program offers not only language study (English, Chinese, Leader system. Under this system, the senior employees who supervise new employees in their assigned divisions will directly Thai, etc.) but also communication training (assertiveness, locations To skills and mindset needed for globalization. debate, etc.) and overseas intercultural training to enhance the JATCO Environmental & Social Report 2014 Report Social & JATCO Environmental

35 Social Activities Social Activities Community Relations 38

除除削削 Kouji Obana 真真 External liaison officer 写写 ●●●●●●●●●●● General Administration Department

JATCO Environmental & Social Report 2014 Report Social & JATCO Environmental 後送 Internships for local technical high schools Kids Engineers 2014 Kids Engineers 2014 is an event for elementary school students school elementary for event an is 2014 Engineers Kids hosted by the Society of JATCO Automotive participated by hosting Engineers the class “What's of a Planetary Japan. Gear? Let's Break Down the Heart of an Automatic Transmis- beginning very the from event the supported has JATCO sion”. in the hope that participating children will become engineers that support Japan in the future. Internships for local technical high schools Cooperation with hands-on events To support the transfer of advanced skills and the early education of young technicians, the Ginou-Juku training centers held within our company dispatch lecturers to nearby technical high in high-level technical skills. schools to provide instruction In addition, we also arrange internships for local technical high intrica- the of understanding student deepen to order in schools cies of Monozukuri, from materials through to machining and assembly, enable a more workplace informed through the acquisition understanding of technical of and subject related practical of understanding deeper a the provide to and skills, choice. matter as well as help them make a career the expectations of those children. I am happy as long as happy am I children. those of expectations the as JATCO remains such gratitude gives rise to more gratitude and contributes a company, and to the development our of a society with abundance of spirit. Though the strength of each individual may be small, JATCO can serve as a powerful supporter for the community when the hearts of the work as one. I ask everyone for their cooperation. employees

We at JATCO are supported by countless people that people countless by supported are JATCO at We enable us to continue our production activities. We carry on our production activities company, grateful for the the employees, our community. families, I feel and that the the activities put employee that contribution feeling into form. Through activities those we see the smiles of our families and community, the and the strong, inquisitive eyes of children. We must keep those smiles going the and meet For abundance of spirit O TC Voice JA Supporting children’s facilities Supporting children’s facilities work at welfare Volunteer arriving via a Jatco bus Participating mothers and children Heavily tanned children worked on their “free studies” home- their out carried children The 2014. of summer the during work free studies surrounded by their many friends in the abundant nature at the foot of Mt. Fuji. JATCO was active in supporting this activity. kindergartens and preschools in Fuji City and Nantan City. kindergartens and preschools Support for the Free Forest Study Helpers Support for the Free Forest Study JATCO JATCO donates picture books and story books to At our locations in Shizuoka and Kyoto Prefectures, JATCO Support for child facilities Support for child facilities work at welfare Volunteer facilities, assisting with tasks such as mowing grass, washing windows, and raking leaves. employees carry out ongoing volunteer work at nearby welfare

Factory tours as a component of social Factory tours as education studies and environmental As a component of social studies and environmental education As a component of social for local elementary and welcome factory tours junior by the students and high their families. Our school children, tour moves from processing we to assembly sites as we explain the connection between manufac- of challenges the teach We shifting. gear of workings cars and transmissions turing and or also the importance of environmental the preservation, recycling the and facilities treatment water of overviews through process. Rapid Cleanup Mission near Fuji City Hall Participants of beech saplings planting project Factory tours Participation in the “Prefectural Rapid Cleanup Mission (Fuji City)” Many JATCO employees promoting are the “little proactively kindness” participating movement community that is easy to live in. and in to create a area can be passed down to future generations. can be passed down to future area Involvement in tree planting activities Involvement in tree JATCO is taking JATCO part in a project to plant native beech trees at the foot of Mt. Fuji to ensure that the natural wonders of the

egional activities aimed at cleanup, r Making ongoing contributions to the local community is a requirement for a good corporate citizen. for to the local community is a requirement Making ongoing contributions in our communities. out communication activities rooted we carry At JATCO, Community Relations Community Making efforts to contribute to society as a member of the community and environmental maintenance. we Moreover, actively participate in

Providing facilities to the community Providing Undertaking societal contribution rooted in communities rooted Undertaking societal contribution egularly perform mowing and garbage pickup around factory Cleaning of the Koikegawa river and potted flower gifting in the Kanbara area. JATCO Festa held at Yagi Area held at Yagi Festa JATCO grounds during lunch hour. during lunch hour. grounds holds a training get-together every October in Hakone, with while deepening communication. JATCO endorses the purpose while deepening communication. JATCO r We As one of its regular events, the Fuji City Foster Care Group Local cleanup activities Support for the Fuji City Foster Care Group Support for the Fuji City Foster Care Cooperation with events Cooperation with have established an Environment Day at each workplace to participants enjoying pools, hot springs, and meals together of the event and offers support by providing microbuses. support by providing of the event and offers beautiﬁcation, In addition to opening up facilities such as our gymnasiums and gymnasiums our as such facilities up opening to addition In tennis courts to employees, their families, and local residents, we undertake communication with local communities through events held on our company grounds. summer Jatco takes festivals part and in other local activity. buses as a part of our contribution to the regional events, providing shuttle JATCO Environmental & Social Report 2014 Report Social & JATCO Environmental

37 Social Activities Environmental Data from our Production Bases 40 ー 28 38 36 7.2 9.2 7.4 1.7 4.0 0.8 0.5 0.1 0.1 0.1 7.9 0.2 0.2 0.2 16.5 0.01 0.02 0.01 2.00 0.01 0.348 110.5 0.005 40.32 17.42 0.2125 124.22 negligible negligible negligible average below lower limit below lower limit ：： below lower limit below lower limit ND ：： ND

ー s 68 57 30

7.6 2.5 5.0 1.1 0.5 0.1 0.1 0.1 0.2 0.5 0.2 measured value measured value measured value measured measured value measured 41.4 12.7 0.25 0.84 0.01 0.02 0.01 2.00 10.7 0.01 0.021 239.5 57.64 50.02 131.39 negligible negligible negligible maximum average maximum average maximum average maximum ）））） ed value) 8.6 20 20 10） re 12 0.5 5 5 1 1 10 7.6 10 0.1 0.1 （ 7.5 （ 1.5 （（ 2.5 2.5 0.5 150 150 0.00 0.00 value value 1500 4 （ sulfur oxides ND sulfur oxides ND ー～ 450 5.8～：： value value regulation regulation regulation regulation (including ag (including agreed value) (including agreed 1 16 20 30 30 5 3 regulation regulation regulation (including agreed value) (including agreed value) (including agreed 3 3 1085.01～610.34 cm ／Ｈ／Ｈ 3 3 p/ ＮｍＮｍー 3 3 ｐｍｐｍ unit unit mg/L mg/L mg/L mg/L mg/L mg/L mg/L mg/L mg/L mg/L mg/L mg/L mg/L mg/L mg/L ｍｍ JATCO Environmental & Social Report 2014 Report Social & JATCO Environmental ｇ／ｇ／ー grou unit mg/L mg/L 10 mg/L 15 mg/Lmg/Lmg/L 150 320 150 Kg/hr Kg/hr 375 ｘｐｘｐｘＮｘＮ egulation values in parentheses are daily average are egulation values in parentheses not applicable r ｘｘ nitrogen compounds SOx nitrogen nitrogen compounds SOx nitrogen ： dust dust SO SO item NO NO ：： dust mg/m dust mg/m egulation values in parentheses are daily averages are egulation values in parentheses NO NO r NOx NOx item se item

2 2 facility name item unit facility name atmosphere water quality air and water quality atmosphere water quality Ltd. zinc soluble mangane soluble iron copper phenols extractive substance in normal-hexane zinc boron ﬂuorine suspended solids (SS) chemical oxygen demand (COD) suspended solids (SS) copper nitrogen nickel phosphor continuous carburizing furnace (11 units) biochemical oxygen demand (BOD) chemical oxygen demand (COD) compact boiler (11 units) chromium number coliform group aluminum-melting furnace (2 units) extractive substance in normal-hexane hydrogen ion concentration (pH) ion concentration hydrogen metal-heating furnace (2 units) ion concentration (pH) hydrogen biochemical oxygen demand (BOD) Yagi Area 68,277m JATCO ■ ■ ■ ■ ■ JATCO Mexico, Automatic buildings (total): (Guangzhou) grounds:233,323m S.A.de C.V. Transmission *Site data is not included for areas other than these listed, as our than these listed, for areas other is not included *Site data there. or wastewater emit waste does not directly company D D 32 62 57 ND ND ND ND 7.3 4.3 2.3 1.2 0.1 18.2 0.01 0.43 0.02 62.5 0.003 0.006 negligible negligible below lower limit ： below lower limit below lower limit ：： ND DN DN 66 83

ND ND ND ND ND 5.2 1.2 650 measured value measured measured value measured value measured 53.5 10.5 24.7 0.01 0.12 0.47 0.02 0.008 negligible negligible maximum average maximum average maximum average ） 8.6 7.5 10） 60） 15 3 2 1N 5 5 1 1N ～ 0.1 0.003 0.1 （（ 150 100 150 0.00 0.49 0.01 0.05 ND value value value 3000 sulfur oxides ND sulfur oxides ND 0.0005 ：： regulation regulation regulation regulation regulation 5.8 (including agreed value) (including agreed (including agreed value) (including agreed value) (including agreed 3 3 3 3 cm ／Ｈ／Ｈ／Ｈ 3 3 3 p/ ＮｍＮｍＮｍーｐｍｐｍｐｍ unit mg/L mg/Lmg/Lmg/L 2.5 0.5 mg/L 20 mg/L mg/L mg/L 80 mg/Lmg/L 0.05mg/L 0.5 ND ND ND ND mg/Lmg/Lmg/L 0.1 0.25mg/L mg/L 0.1 ND ND N/A ND ND ND ND ND ND mg/L 20（ mg/Lmg/L 0.001mg/Lmg/L 0.1 ND 0.05mg/L 0.01 ND ND ND ND ND ND ND mg/L mg/Lmg/L 10 100 ND 24.5 ND 17.5 ｍｍｍｇ／ｇ／ｇ／ grou ｘｐｘｐｘｐｘＮｘＮｘＮ nitrogen compounds SOx nitrogen nitrogen compounds SOx compounds nitrogen item unit item unit dust dust dust SO SO SO NO NO NO egulation values in parentheses are daily averages are egulation values in parentheses ：： r NOx NOx item

2 2 facility name facility name atmosphere atmosphere water quality extractive substance in normal-hexane phenols copper zinc soluble iron suspended solids (SS) chemical oxygen demand (COD) soluble manganese cadmium cyanogen organic phosphorus nitrate nitrogen nitrite nitrogen town gas boiler (1 unit) hydrogen ion concentration (pH) ion concentration hydrogen biochemical oxygen demand (BOD) chromium lead hexavalent chromium arsenic mercury alkyl mercury PCB trichloroethylene tetrachloroethylene carbon tetrachloride 1,1,1-trichloroethane ammonium nitrogen compact boiler (2 units) compact boiler (1 unit) guideline boron coliform group number coliform group ■ ■ ■ Area Area 14,954m Kyoto buildings (total): grounds:95,522m Kakegawa Bases 0 0 18 69 93 68 ND ND ND ND ND ND ND ND ND ND ND ND 7.5 1.6 1.5 1.0 ND ND ND ND 7.3 1.1 0.7 140 0.57 0.05 0.012 0.003 0.005 0.003 0.001 0.025 0.0064 below lower limit below lower limit ：： below lower limit below lower limit ND ：： ND

1 0 0 20 98 75 ND ND ND ND ND ND ND ND 7.9 2.6 2.1 ND ND ND ND ND ND ND ND

1.1 0.7 140 141 measured value measured value measured measured value measured value measured 0.57 0.03 0.06 0.007 0.013 0.003 0.009 maximum average maximum average maximum average maximum average ）） 8.6 7.6 8.6 30 15 20） 15） 15） 15） 5 5 3 2 5 2 5 8 ～～（ 0.1 0.004 （ 130 100 100 150 0.05 0.01 0.01 0.01 0.05 0.001 0.01 0.05 150 value value value value 3000 1000 0.045 0.013 sulfur oxides ND sulfur oxides ND ：： regulation regulation regulation regulation regulation regulation 5.8 5.8 (including agreed value) (including agreed value) (including agreed (including agreed value) (including agreed value) (including agreed 3 3 3 3 3 3 3 3 Nm cm cm ／Ｈ／Ｈ／Ｈ／Ｈ／Ｈ／ 3 3 3 3 3 p/ p/ ＮｍＮｍＮｍＮｍＮｍーーｐｍｐｍｐｍｐｍｐｍ unit unit mg/L 10 mg/L mg/L mg/L mg/L mg/L 10 mg/L 40（ mg/L 20（ mg/L mg/L 25 mg/L 20 mg/L mg/L 10 mg/L 10 mg/L 20（ mg/L 0.001 mg/L 100 1.1 0.9 mg/Lmg/L 0.02 mg/L 100 63.6 33.6 mg/L 20（ｍｍｍｍｍｇ／ｇ／ｇ／ｇ／ｇ／ ng-TEQ grou grou ｘｐｘｐｘｐｘｐｘｐｘＮｘＮｘＮｘＮｘＮ egulation values in parentheses are daily averages are regulation values in parentheses nitrogen compounds SOx nitrogen nitrogen compounds SOx compounds nitrogen item unit item unit dust dust dust dust dust SO SO SO SO SO NO NO NO NO NO ：： dioxins egulation values in parentheses are daily averages are egulation values in parentheses r NOx NOx item item

2 2 2 facility name facility name atmosphere water quality atmosphere water quality Area 58,033m soluble iron soluble manganese extractive substance in normal-hexane phenols copper zinc extractive substance in normal-hexane suspended solids (SS) suspended solids (SS) chemical oxygen demand (COD) coliform group number coliform group chemical oxygen demand (COD) coliform group number coliform group chromium boron boron metal-heating furnace (3 units) metal-heating furnace (1 unit) aluminum-melting furnace (1 unit) biochemical oxygen demand (BOD) ammonium nitrogen nitrate nitrogen nitrite nitrogen 1,1,1-trichloroethane dichloromethane ﬂuorine ammonium nitrogen nitrate nitrogen nitrite nitrogen compact boiler (6 units) ion concentration (pH) hydrogen biochemical oxygen demand (BOD) kerosene boiler kerosene (2 units) (pH) ion concentration hydrogen Area 66,756m ■ ■ ■ ■ buildings (total): Kambara grounds:78,423m buildings (total): grounds:67,698m Fujinomiya 0 22 32 28 79 41 ND ND ND ND ND ND ND ND ND ND ND 1.2 7.2 1.6 3.5 1.3 0.1 0.05 0.018 0.043 0.010 0.002 0.012 0.069 To Tokyo 0.0000014 To Numazu To Numazu To Numazu below lower limit below lower limit ：： ND 0 34 82 22 2.5 ND ND ND ND ND 7.4 2.6 4.9 2.0 0.1 ND ND ND ND ND 130 0.07 measured value measured measured value measured 75.3 0.029 0.004 0.048 0.043 0.043 0.069 0.0000014 maximum average maximum average ） sulfur oxides ND Station 8.6 R&D Center (Area B) ： 15） 10） 15 Yoshiwara 4 5 5 5 ～ 56 Head ofﬁce （ 150 150 150 100 0.05 ND 0.05 0.05 0.05 0.05 value value 3000 0.002 0.018 0.026 0.019 Area No.2 0.0048 5.8 regulation regulation regulation regulation (including agreed value) (including agreed (including agreed value) (including agreed 3 3 3 3 3 3 3 3 3 Nm Nm Nm cm ／Ｈ／Ｈ／Ｈ／Ｈ／Ｈ／／／ 3 3 3 3 3 p/ ＮｍＮｍＮｍＮｍＮｍーｐｍｐｍｐｍｐｍｐｍ unit mg/L 0.1 mg/L mg/L 0.1 mg/L 15 mg/L 20 mg/L 100 mg/Lmg/Lmg/L 0.3 0.02 10 mg/L 20（ mg/L 20（ｍｍｍｍｍ Route 1 ｇ／ｇ／ｇ／ｇ／ｇ／ ng-TEQ ng-TEQ ng-TEQ grou Vantec nitrogen compounds SOx nitrogen ： No.3 Area NOx Route 139 Area No.4 ｘｐｘｐｘｐｘｐｘｐｘＮｘＮｘＮｘＮｘＮ Okida Odori egulation values in parentheses are daily averages are egulation values in parentheses r item unit dust dust dust dust dust SO SO SO SO SO NO NO NO NO NO dioxins dioxins dioxins Area No.1 item Gakunan Railway Fuji Police Station

2 JR Tokaido Line JR Tokaido Shinkansen 2

facility name water quality atmosphere

Yoshiwara extractive substance in normal-hexane copper coliform group number coliform group nitrate nitrogen nitrite nitrogen zinc suspended solids (SS) ammonium nitrogen ﬂuorine drying kiln (1 unit) drying combustion furnace (1 unit) metal-heating furnace (6 units) steel-heating furnace (6 units) aluminum-melting furnace (10 units) dichloromethane boron trichloroethylene hydrogen ion concentration (pH) hydrogen compact boiler (22 units) biochemical oxygen demand (BOD) chemical oxygen demand (COD) Elementary School Elementary School To Shizuoka To Shizuoka To Nagoya To Shizuoka ■ ■ 389,403m buildings (total): Fuji Area [including head ofﬁce]

grounds:580,440m Environmental Environmental Data from our Production JATCO Environmental & Social Report 2014 Report Social & JATCO Environmental 39 Environmental Activities / Corporate Information 42 Shin-Yokohama Office JATCO USA, Inc. JATCO Atsugi R&D Center

Head Office and Fuji Area Kambara Area JATCO Environmental & Social Report 2014 Report Social & JATCO Environmental JATCO France SAS, Spain branch/Spain Shanghai branch/China Togliatti representative office/Russia Moscow representative office/Russia Motegi Proving Ground Fujinomiya Area Kakegawa Area NISSAN MOTOR CO., LTD. NISSAN MOTOR MITSUBISHI MOTORS CORPORATION SUZUKI MOTOR CORPORATION LIMITED DONGFENG MOTOR COMPANY RENAULT S.A.S Okazaki R&D Center Kyoto Area JATCO Mexico, S.A. de C.V. JATCO Yagi Area Tennessee Americas management office TCO Ltd Main Customers JATCO Engineering Ltd JATCO Ltd Tool JATCO Ltd Plant Tec JATCO JA Busan office JATCO Korea Service Corp./Korea JATCO (Guangzhou) Automatic Transmission Ltd./China JATCO France SAS/France JATCO (Thailand) Co., Ltd./Thailand Tennessee Americas management office/U.S.A. Busan office/Korea Shanghai branch Togliatti representative office representative Togliatti Moscow representative office okohama City, Kanagawa okohama City, Nantan City, Kyoto Nantan City, Kyoto City, Kyoto Kyoto City, Y Shizuoka Shizuoka City, Shizuoka Fujinomiya City, Shizuoka Kakegawa City, JATCO Ltd June 28, 1999 Japan 700-1, Imaizumi, Fuji City, Shizuoka, sale of Development, manufacture and components transmissions and automobile ¥29,935.3 million 13,797 (as of March 31, 2014) ¥602.5 billion (FY2011) ¥592.5 billion (FY2012) ¥710.9 billion (FY2013) JATCO Korea Engineering Corp. JATCO Korea Service Corp. ea Shizuoka Fuji City, is a environmental management system site ● *including afﬁliated companies

JATCO (Thailand) Co., Ltd. JATCO JATCO France SAS, Spain branch JATCO Enginneering Ltd/Japan JATCO Tool Ltd/Japan JATCO Plant Tec Ltd/Japan JATCO USA, Inc./U.S.A. JATCO Mexico, S.A. de C.V./Mexico JATCO Korea Engineering Corp./Korea JATCO (Guangzhou) Automatic Transmission Ltd. Transmission (Guangzhou) Automatic JATCO gi Proving Groundgi Proving Haga-gun, Tochigi TCO France SAS agi Area JA Y Kyoto Area Kambara Area Fujinomiya Area Kakegawa Area Head Ofﬁce and Fuji Ar Atsugi R&D CenterOkazaki R&D CenterMote Kanagawa Atsugi City, Aichi Okazaki City, Shin-Yokohama Ofﬁce

● ■ ■ ■ (consolidated) Consolidated Net Revenues (Reference) Locations ● *Out of the above locations, ■ ● ● ● Affiliated Companies/ Representative Offices etc. Company Name Established Head Ofﬁce Main Businesses Capital Number of Employees ● Corporate Proﬁle Corporate Global Network Corporate Information Corporate 7 certification izushima Area) certification 14001 certification 14001 (current: M , and Kambara Area 4 16949 , and formerly: Kyoto Area, Yagi Area) certification 3 , renewal assessment renewal assessment 2 renewal assessment , certification certification 1 9000 certification certification 14001 14001 14001 14001 14001 14001 14001 Diamondmatic Co., Ltd. Kyoto Area acquires Mitsubishi Motors Corporation Kyoto Plant Mitsubishi Motors Corporation Mizushima Plant Mitsubishi Motors Corporation Quality Initiatives Quality ISO ISO Affiliated firm JATCO Engineering Ltd Environmental and Environmental Acquires ISO/TS certification ( JATCO Guangzhou acquires ISO14001 ISO certification (current: Fuji Area, Kambara Area) Fuji Areas Nissan Motor Co., Ltd. Fuji Plant acquires Diamondmatic Co., Ltd. Mizushima Area JATCO Corporation acquires ISO JATCO Corporation acquires Acquires QS JATCO Mexico acquires ISO

Awarded Shizuoka Prefecture Governor's 14001 14001 of Industrial Waste acquires ISO acquires ISO acquires April: Medal for Distinguished Efforts in Proper Disposal (current: head office, Fujinomiya Area, Kakegawa Area) (current: head office, Fujinomiya acquires ISO acquires ISO February: December: March: November: February: February: December: June: November: December: January: ISO ISO May: May: February: awarded commendation as Excellent Energy Management Factories; awarded Agency for Natural Resources and Energy Director-General's Award Release of the environmentally superior Jatco CVT certification December: Mass production of transmissions for hybrid vehicles

2002 held in Kyoto 3 Rio de Janeiro effect in Japan enacted in Japan Earth Summit COP Nitrogen Oxides and held in Johannesburg Earth Summit held in Special Measures for Basic Environment Law period of Kyoto Protocol Agency (IRENA) established Revised Law Concerning Start of first commitment Kyoto Protocol takes effect Kyoto Protocol takes Particulate Matter goes into Total Emission Reduction of End-of-life Vehicle Recycling Law goes into effect in Japan International Renewable Energy

Corporate History Corporate JATCO USA Inc. established in USA TransTechnology Ltd and JATCO Corporation TransTechnology Ltd and JATCO Corporation Japan Automatic Transmission Co., Ltd. JATCO France SAS established in France Japan Automatic Transmission Co., Ltd. Japan Automatic Transmission

Begins operation as Yoshiwara Plant of aircraft Begins operation as Yoshiwara AT/CVT division of Nissan Motor Co., Ltd. Mitsubishi Motors Corporation established Mitsubishi Motors Corporation JATCO Korea Service Corp. established in Korea JATCO (Thailand) Co., Ltd. established in Thailand JATCO (Guangzhou) Automatic Transmission Ltd. JATCO Mexico, S.A. de C.V. established in Mexico JATCO Ltd merges with Diamondmatic Co., Ltd. JATCO TransTechnology Ltd AT/CVT division of Mitsubishi Motors Corporation JATCO Korea Engineering Corp.

established in China changes name to JATCO Ltd splits off to become Diamondmatic Co., Ltd. April: April: October: April: April: April:

May: Environmental Activities Environmental JATCO Environmental & Social Report 2014 Report Social & JATCO Environmental and Ford Motor Company and Ford Motor Company Mazda Motor Corporation (then: Toyo Kogyo Co., Ltd.), Mazda Motor Corporation established through merger of Nissan Motor Co., Ltd., established through merger July: division of Nissan Motor Co., Ltd. division of Nissan Motor splits off to become TransTechnology Ltd merge to form JATCO TransTechnology Ltd changes name to JATCO Corporation established in Korea April: January: June: October: May: September: October: August: 41 Head Oﬃce 700-1, Imaizumi, Fuji City, Shizuoka 417-8585, Japan PHONE +81-545-51-0047 FAX +81-545-51-5976 www.jatco.co.jp/ENGLISH