Tsubaki Nakashima : ESG REPORT 2022

2022

INTRODUCING ENVIRONMENTAL SOCIAL GOVERNANCE

2022 has been a difficult year for Tsubaki Nakashima for both exogenous and endogenous reasons. In particular, the economic and political instability linked to the war in Ukraine exponentially increased energy costs, impacting business and market in general.

From the point of view of sustainability and of the sustainable development strategies decided by the company in 2021, the results have been seen: TSUBAKI

NAKASHIMA HAS STRENGTHENED, AWARENESS OF THESE ISSUES HAS INCREASED,AND MANY ACTIVITIES HAVE BEEN UNDERTAKEN. In our Mid-TermStrategy, we outline a policy of enhancing our contribution to and engagement with the SDGs (Sustainable Development Goals) through business activities. This policy is an expression of our commitment.WEWILLCONTRIBUTE

TO RESOLVING MAJOR SOCIAL ISSUESbypromotingadecarbonized and recycling-basedsociety, and by establishing a resilient value chain, including promoting sustainable raw materials procurement.

Achieving a decarbonized society is a long-term endeavor, but we also believe PROMOTING GHG (Greenhouse gas) REDUCTIONS

WILL PRESENT NEW BUSINESS OPPORTUNITIES.

We will aggressively promote businesses that contribute to global GHG (Greenhouse gas) reductions. With this ESG Report based on the GRI Standard, Tsubaki Nakashima wantstobothillustratethedecisions taken in 2021 and developed in 2022, that started to impact the company - last year and in the years to come-, the organizational structures and resources deployed, the main results achieved in the year 2022 and the targets both in the long term (Medium Term Plan 2021 - 2023) and referring to the year 2023.

INTRODUCING ESG &

REPORT

This Report embodies OUR AIM

TO CONTINUE GROWING AS AN ENVIRONMENTALLY RESPONSIBLE AND ETHICALLY SOURCED BUSINESS, therefore reaffirming our commitment to transparency, sustainability, and good governance, particularly in matters of sustainable and profitable growth, attention to our Stakeholders, and the Vision Zero's Approach (Zero accidents, Zero occupational illnesses, Zero wastes, Zero inequalities, Zero lack of knowledge).

METHODOLOGICAL NOTE

INTRODUCING ESG REPORT

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NOTE

The Disclosure of Non-Financial Statement (hereinafter "Statement" or "ESG Report") complies with the GRI Standard (see below) and with the local laws and regulations concerning the disclosure of non-financial information.

For Tsubaki Nakashima that Statement coincides with the ESG Report and represents the result of the commitment to notify its

The Sustainability Report is drawn up according to a system of indicators (KPI - Key Performance Indicators) which measure the

METHODOLOGICAL

GRI 2

GRI 202

GRI 205

GRI 301

GRI 304

GRI 308

GRI 403

GRI 406

GRI 409

GRI 413

GRI 416

General Disclosures 2021

Market Presence 2016

Anti-corruption 2016

Materials 2016

Biodiversity 2016

Supplier

Enivornmental

Assessment 2016

Occupational

Health and

Safety 2018

Non-discrimination 2016

Forced or

Compulsory

Labor 2016

Local Communities 2016

Customer

Health and

Safety 2016

GRI 3

GRI 203

GRI 206

GRI 302

GRI 305

GRI 401

GRI 404

GRI 407

GRI 410

GRI 414

GRI 417

Material Topics 2021

Indirect Economic Impacts 2016

Anti-competitive Behavior 2016

Energy 2016

Emissions 2016

Employment 2016

Training

and Education 2016

Freedom of

Association and

Collective

Bargaining 2016

Security Practices 2016

Supplier Social Assessment 2016

Marketing and Labeling 2016

GRI 201

GRI 204

GRI 207

GRI 303

GRI 306

GRI 402

GRI 405

GRI 408

GRI 411

GRI 415

GRI 418

Economic Performance 2016

Procurement Practices 2016

Tax 2019

Water

and Effluents 2018

Waste

2020

Labor/Management Relations

2016

Diversity and Equal Opportunity 2016

Child Labor 2016

Rights of

Indigenous

People 2016

Public Policy 2016

Customer

Privacy 2016

stakeholders of the performances and results achieved in general and in the sustainability area.

The Statement contains data and information referring to Tsubaki Nakashima Co. Ltd. and its subsidiaries as of December 31, 2022 (hereinafter "Tsubaki Nakashima" or "TN").

THE REPORT IS BASED ON A MULTI-STAKEHOLDER APPROACH involving the joint analysis of actions taken in respect of the main stakeholders with whom the Company interacts. For the details on the material topics, see the specific paragraphs.

The 2022 ESG Report, prepared annually over the calendar year, respects the same deadlines as the Annual Financial Report.

The Report has been prepared in accordance with the Sustainability Reporting Standards of the Global Reporting Initiative (GRI)

(in accordance-comprehensive option).

company's performance and the degree of achievement of objectives previously established for areas in which the Company has major impact.

The KPIs are defined based on:

THE ANALYSIS OF THE GRI, an international organization which develops universally applicable guidelines for drawing up sustainability reports.

THE DEMANDS RECEIVED FROM STAKEHOLDERS.

THE COMPANY HAS GAINED EXPERIENCE IN SUSTAINABILITY.

INTRODUCING ESG REPORT

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Tsubaki Nakashima is a

MANUFACTURING COMPANY that operates on three continents (Asia, Europe and America) and is STRONGLY COMMITTED to serving its customers, creating a work environment in which its employees can feel motivated, respectful of available resources

and ENVIRONMENT which does its part every day to contribute to a truly sustainable future; this way of being and acting is fundamental to the success of our 20 PLANTS, in the countries and communities in which we operate.

We are a manufacturer of precision balls, rollers, ball screws

and blowers, very high precision components for the metrology sector but also of medical devices with regional production and procurement, short lead times and accurate, through a network of production and well-organized sale that meets the needs of our customers.

PRECISION FOR A

AND

As social, industrial, technological and lifestyle changes proceed globally, we have decided to make THE FOUNDATIONS OF BUSINESS VALUE REALIZATION more solid and current:

1. SUSTAINABILITY, as the simultaneous achievement of economic prosperity, creation of a healthy, safe, and low environmental impact, where everyone is equal, with equal rights and duties, equal opportunities. In our vision, zero impact, in a holistic sense, is fundamental: VISION ZERO for us is zero accidents, zero damage to people and environment, but also zero inequalities and zero lack of knowledge, which means equal opportunities

for our employees.

2. THE HIGHEST QCDS (Quality, Cost, Delivery, and Service), to be the best-in-class, customer- and market-oriented ball manufacturer by

continuously improving products, processes, and services.

3. ONE TEAM SPIRIT, which is the basis of our corporate culture, of our corporate identity.

CHANGING

SUSTAINABLE

WORLD

1. TRANSFORMATION, that is, being more and more a global company with an INTERNATIONAL MENTALITY every day, precisely by continuously transforming our organization to ALWAYS BE ONE STEP AHEAD, capable of seizing opportunities to be better, stronger, more aware. The armed branch of this transformation is the MONOZUKURI understood as a set of processes, which encompasses activities of thought, remodeling, organization, action, continuous improvement aimed at the creation of high-quality products.
2. The orientation towards continuous GROWTH, in terms of commercial solidity and profit, to anticipate market needs, satisfy customer expectations, find new customers, new markets and new business opportunities. As Tsubaki Nakashima, we are aware of the RESPONSIBILITY we have towards the people who work for us and the world around us.

CEO MESSAGE

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