Mikuni : CSR Report 2021

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2021

MIKUNI Group

Contents

			Contents	01
			Message from Top Management	02
			Corporate Information	03
			History	05
	L E		Mikuni Group	07
	O F I		Business Models	09
	P R		CSR Approach	11
			Identifying Environmental Issues	15
			Carbon Minimization	16
			Our Products	17
			Digital Transformation	19
			Environmental
E	ENVIRONMENTAL
	Environmental Management	21
			Structure Targets and Results	22
			Compliance Evaluation	24
S			Social
OS C I A L		Employees	27
	Suppliers	35
			Local Communities	36
			Governance
G	E
A N C		Corporate Governance	37
	ER N		Compliance / Risk Management	38
	GOV		Business Continuity	39
			Data
	DATA		ISO Certification Status	41
		Material Balance	42
			Environmental Data	43

English version

ENVIRONMENTAL

E

S O C I A L S GGOVERNANCE

M I K U N I C S R

Editorial note

This report is published to introduce Mikuni Group's CSR initiatives, to improve communication with its stakeholders, and to deepen their understanding of Mikuni Group.

Reporting scope and boundaries

In this report, the philosophy, policies, etc., are common to the entire Mikuni Group, and the activity reports are of consolidated companies in principle.

Reporting period

This report covers the following period. However, where it is appropriate to present historical background and data or recent examples, we report on content outside of this period.

April 1, 2020 - March 31, 2021

Publication

Current issue: September 2021

Next issue : September 2022 (scheduled)

Guidelines used as reference

This report uses the following guidelines as a reference.

• Ministry of the Environment (Japan): Environmental Reporting Guidelines (2018 Edition)
• Global Reporting Initiative (GRI): Sustainability Reporting Standards
• Japan Auto Parts Industries Association: CSR Guidebook(2010)

This booklet is a reference translation of the Japanese version of the CSR Report issued in September 2021.

01 | MIKUNI 2021 CSR REPORT

Message from Top Management

Dear Readers,

I would like to express my sincere gratitude for your continued support of the activities of Mikuni.

Our first CSR Report was published in 2020. Before we have been focusing on reporting our environmental activities in the Environmental Report, but now we thought it was important to report not only on the environment but also on our social responsibilities to our stakeholders more broadly, so we compiled the CSR Report by organizing information on our relations to the local communities and corporate governance in addition to what we had reported in the Environmental Report. In the process of compiling this report, we reaffirmed that the steady implementation of our action plan based on our corporate philosophy, "with a global perspective, Mikuni will contribute to the realization of an affluent society by making full use of our human resources and technology" will enhance our own value and lead to the realization of the Sustainable Development Goals (SDGs).

The social chaos caused by the spread of COVID-19 and the impact on the economy due to restrictions on our daily activities have prompted a transformation of lifestyles, including the way we work, and raised people's health awareness. On the other hand, the frequent occurrence of natural disasters in various parts of the world has raised concerns about climate change and accelerated the global movement toward decarbonization (carbon neutrality). As we expand our business globally, we are constantly aware that no country or company can be sustainable without addressing these global issues. We hope that this CSR Report will convey to you the awareness that underlies the activities of the Mikuni Group.

To contribute to the goal of carbon neutrality by 2050 set by Japan and other countries,

Mikuni will continue to promote carbon minimization.

In this CSR Report, we have disclosed the CO2 emissions of Mikuni's global production sites. Based on this quantitative information, Mikuni will strive to achieve carbon minimization by minimizing not only the CO2 emitted during the manufacturing process, but also the actual CO2 emissions throughout the product life. We will soon finalize a plan to reduce CO2 emissions, including Scope 3. We look forward to hearing your frank opinions.

Mikuni will continue to think seriously about changes in the environment surrounding the company and various issues considering its own social responsibility.

We would like to ask for your continued support.

Yours sincerely,

Hisataka IKUTA

President, CEO & COO

17 GOALS TO TRANSFORM OUR WORLD

MIKUNI 2021 CSR REPORT | 02

Corporate Information

	Profile	As of March, 2021
	Name of Company	MIKUNI CORPORATION
	Establishment	October 1, 1923
	Incorporation	October 1, 1948
	Representative	Masaki IKUTA Chairman Hisataka IKUTA President, CEO&COO
	Address	Mikuni Building, 6-13-11 Sotokanda, Chiyoda-ku, Tokyo 101-0021, Japan
	Capital	JPY 2,215.3 million
	Stock Listed	First Section of Tokyo Stock Exchange
	Number of employees	7,489 (consolidated) 1,933 (non-consolidated)*Includes temporary employees

Main Line of Business

Manufacture and sale of fuel supply devices and engine functional parts

for various types of automobiles, motorcycles, and general purpose engines, control devices for gas appliances, welfare and care equipment,

and spray equipment

Import and sales of aerospace equipment, parts and materials, lawn mowers and turf-care equipment

Business Domain

Mikuni Group has expanded its business into various fields. The following is a breakdown of its business domain.

69

for Automobiles

for Motorcycles / Power Products

Products for Motorcycles and Power Products > > >

Electronic Control	Plastic	Engine ECU
Throttle Body	Intake Manifold

We develop a wide range of products from intake system and valve system products for large motorcycles to fuel injection systems for small motorcycles, and manufacture and sell them around the world. For overseas customers, we directly sell products developed and manufactured by local Mikuni Group companies to customers in each region. We also supply intake systems, valve systems, and pump systems to outboard motor manufacturers.

03 | MIKUNI 2021 CSR REPORT

We develop and manufacture electronically controlled fuel injection systems and components for various engines, as well as automotive parts such as carburetors and pumps. In particular, our superior "engine control technology" contributes greatly to the reduction of CO2 emissions, and is therefore attracting high expectations from the industry.

Products for Automobiles > > >

Electronic Control	Plastic	Electric	Valuable Valve	Vacuum Pump
Throttle Body	Intake Manifold	Oil Pump	Timing System

Based on the fluid control, electromagnetic drive, and calibration technologies that we have accumulated over the years, we evaluate and analyze the entire system and vehicle.

We are working on the development of environmentally friendly, high-performance automotive products. We have a lineup of many system products to achieve energy conservation and low emissions.

2% 3%

19%

2020

CONSOLIDATED

SALES

69%	86,962	7%
MILLION YEN

For the fiscal year ended March 31, 2021

We develop and manufacture gas control equipment such as gas shut-offsafety devices, functional parts for household water equipment used in bathrooms, toilets, and kitchens, and auxiliary parts for fuel cells.

Financial Highlights

■ Consolidated Sales	■ Balance Sheet	for the fiscal year ended March 31, 2021
(Millions of yen)

150,000
100,000
5,000
0	18/3	19/3	20/3	21/3
17/3

• Consolidated Operating Income

(Millions of yen)

5,000
4,000
3,000
2,000
1,000
0	18/3	19/3	20/3	21/3
17/3

（Millions of yen）

Current asset

Fixed asset

Total assets

Current liabilities

Fixed liabilities

Net Assets

Total liabilities and net assets

Shareholder's equity ratio

Net assets per share

End of	End of	Change
March 2020	March 2021	in amount
43,178	46,474	3,295
47,217	47,417	199
90,396	93,891	3,495
31,206	31,218	11
32,462	34,276	1,814
26,726	28,396	1,669
90,396	93,891	3,495
28.6％	29.4％	―
767.72 Yen	822.12 Yen	―

Household

Appliances

Device

Products

	Safety Shut-off Device	Proportional	Pilot Solenoid
7for Gas Appliances	Gas Control Valve	Valves
Aircraft Parts	We import large-sized castings and
Import and	large-sized precision castings with complex
Sales	shapes from U.S. manufacturers and other
sources, and sell them to major Japanese

19heavy industry manufacturers engaged in

aerospace business.

DEVICES for Comfortable Life

IMPORT/AEROSPACE

3 2

We purchase turf-care equipment from domestic and overseas manufacturers and sell them to domestic golf courses and stadiums.

Mikuni Life & Auto, a group company, manufactures and sells driving assistive devices that assist the driving of people with disabilities as well as products to assist wheelchair users in getting on and off the vehicle.

IMPORT/TURF-CARE

WELFARE VEHICLES/ NURSING EQUIPMENTS

MIKUNI 2021 CSR REPORT | 04