Hino Motors Asia Ltd.

HINO Way. Hino Motors Manufacturing (Malaysia) Sdn Bhd.

[Audio] Our Agenda today is to explain about Hino Way. This is Hino way's triangle. Hino consists of three parts. First is the Hino Credo, Second is Hino Sustainability Policy and Third, Hino Code of Conduct. We will explain you about all the 3 components of HINO ways. First, Hino Credo. Hino Credo consists of the Corporate mission and the Core principles. Second , Hino Sustainability Policy, which is the "Company's declaration" for realizing a sustainable society. And Third , Hino Code of Conduct. It refer to the "Standards of conduct" expected for each Hino employees..

[Audio] HML revised and introduced the "New Hino Way" for three reasons. First reason, The entire Hino Group needs to position compliance as the foundation of all activities. Second reason, To be a "Solution company", in the an era of rapid change, Hino needs to change from being a hardware-centric company to being reborn as a company focusing to solving customer business challenges. Third reason. The society values have evolved from Corporate Social Responsibility to Sustainable Development Goals. and other ideas centered on sustainability. Hino must redefine our points to connect with society..

[Audio] The structure has been changed. The new structure consist of triangular Hino way. Based on the new structure, the company's vision and corporate strategy will be formulated based on the values, decision standards, and code of conduct of the New Hino Way. Based on the structure, the Mid-term plan and Annual policies will be formulated. Based on the new structure, we have organized the relationship with the HMA's policy system. We positioned the Aim of HMA as a response to the Hino sustainable Policy. The Code of Ethics is positioned as a standard for our judgment and action based on the Hino Code of conduct. In addition, HMA company policy and the unit annual policy are established based on the Headquarter policy. Under these policies, there are working regulations, and then there are individual annual targets or we call it Mendan, as well as our daily work activities as our day-to-day business activities..

[Audio] Lets try to understand the contents of the Hino Way. We will start from the Hino Credo. Hino Credo is Company's constitution and basis for judgment and action, and it consists of Two Pillars. There are "Corporate mission" and "Core principles"..

[Audio] The first pillar of HINO Credo is the Corporate Mission. Slight modifications have been made to the Hino Corporate Mission by revising sentence that was starting with "To" to sentence that starts with "We" 'Hino Corporate mission is We make a better world and future by helping people and goods get where they need to go'..

[Audio] Next , the second pillar of the HINO Credo is Core Principles. The "Core Principles" connected to three common values. The Core Principles, have been revised to become the basis how we make decisions and our actions. Hino three common values are Integrity, Contribution and Empathy..

[Audio] The first core principle is Integrity. Integrity is the company key value. Integrity is about "We are committed to acting with integrity and in a compliant manner". Compliance is the basis of all corporate activities. The Integrity is not something that is instructed or given by others, but is necessary for each organization and individual to think about it. You can see from the picture, our employee demonstrate sincerity with our customer. He working with integrity by following the company procedure step by step to reduce mistake and risks, which in return contribute to quality products for customer. The employee show high good responsibility that suits to environment and society..

[Audio] The second core principle is contribution. The Hino Motors environments is undergoing major changes such as electrification, autonomous driving and realizing carbon neutrality. In this revolution period, Hino Motors must reborn as a company that solves customers' business challenges, becoming more than just a hardware-centric company. In other words, we must become indispensable for our customers and society. We will listen to the issues and problems that our customers and society are facing, and think seriously and solve them. In this revised Core Principles, Hino group has declared the contents to both society and customers. Contribution Core Values can be divided into 2. First, "We support a future society by committing to safety and environmental sustainability." Hino's products and services are responsible for the social infrastructure that supports the flows of people and goods, directly impacting on social safety and the future environment. For examples, our products and services include preventing traffic accidents, reducing air pollutant emission, carbon dioxide from trucks and buses, and manufacturing plants. Example of this content shown you in, the truck automated driving project. Second. "We support the businesses of our customers by commit to quality and professionalism." Hino Motors is a commercial vehicle manufacturer. Therefore, our customers are professionals in each business. In order for, Hino group to be selected as a B to B company business partner. We must focus on high quality that will satisfy our customers. We must also have professional awareness to provide optimal products and services from the customer's standpoint. To supporting our customers' businesses has very heavy meaning; we need to be determined. For example, you can see from this photo about our "Field mechanic system" activity. We start oversea mechanical support team since 1964 , to help our customer as professional..

[Audio] The third core principle is Empathy. Our empathy statement is "We respect diversity and inclusion, and build a safe and secure working environment. This corporate culture is part that took most time to discuss, and the project members exchanged opinions about the good and bad points of Hino and what the company should be in the future. We would like to share the common key words that emerged from these discussions; In terms of people and individuals, the words such as "respect for each other", "mutual trust", "gratitude and compassion" and " challenge" have been selected. And in terms of teams, "teamwork" and "shared sense of purpose", "creation together", and "empathy". From these words, it was considered necessary for everyone in Hino to think, collaborate and grow as a team. Hino try to create a better workplace, a safe and secure workplace. The company committed to respect diversity, recognize the unique of every individual, and stand by each other. Also, committed to create an open workplace where we collaborate, learn, and cooperate with colleagues. In both of 2 picture below , it shows the workplace that emphasis with empathy which means we respect with diversity in nationality, race and tradition and languages and stand by for each other. Also, open workplace and open communicate between colleague can encourage them to be unique and feel safe to speak out with each other. This connect with common value of empathy that Hino build a safe work environment.

[Audio] HINO credo states that "We makes a better world and future by helping people and goods get where they need to go" as our corporate mission. HINO Group is determined to contribute to the realization of a sustainable society through solving issues and challenges in relation with flows of people and goods. To achieve it, we all employees of HINO Group, will act with integrity in accordance with the spirit of this Sustainability Policy. Sustainable policy consists of four parts: 1. Basis for Corporate Activities; There are 6 activities 2. Working Environment and Corporate Culture ; There is 1 activity 3. Providing Values for a Sustainable Society ; There are 3 activities 4. Crisis Management and Role of Senior Management ; There are 3 activities.

[Audio] Basis for corporate Activities. There are 6 activities related with "Basis for corporate activities". First, Compliance. We comply with laws and regulations, as well as their spirit, social norms and company rules, and carry out our corporate activities in a fair manner. Second, Safety and Quality of our products and services. We pass on our technology and skills, and keep creation, innovation and kaizen for providing products and services which are safe, high-quality, and useful for the business of our customers. Third, Environmental management. In order to contribute to the realization of a sustainable world that is prosperous and pleasant to live in, we proactively work to minimize environmental impacts resulting from our operations, as well as to develop and provide our customers with environmentally friendly products and services. Forth, Respect for Human Rights. We understand internationally recognized human rights, and respect and protect the human rights of all those involved in our corporate activities. We do not tolerate discrimination on the basis of race, religion, ideology, gender, age, nationality, disability or any other grounds, nor any behavior contrary to respect for human rights, including child labor, forced labor and harassment. Fifth. Fair Transactions and Responsible purchasing activities. We aim to build relationships of trust with our business partners for mutual development through fair transactions and We conduct response purchasing activities to ensure that the suppliers in our supply chain also share the values set forth including this Policy, but not limited to the commitment to compliance, safety and quality, minimize environmental impact, and respect for human rights. Sixth, Disclosure and Dialogue with Stakeholders. Based on the recognition that the trust from society is essential for our corporate activities, we disclose corporate information appropriately and foster mutual understanding and trust through honest communication with our stakeholders. We maintain honest and fair relationships with government agencies and public authorities..

[Audio] Next is "Working Environment and Corporate Culture". There is 1 activity, that is Working Environment and Corporate Culture to Respect Employees. It's consist of We are committed to the psychological , physical safety and health of employees and build a safe and secure working environment. We respect diversity and create a workplace where every employee can flourish and grow. Next part is "Providing Values for a Sustainable Society". There are 3 Activities, First, contribution for a sustainable society through our business. We actively engage in solving issues and challenges of our customers or society through our business activities supporting flows of people and goods. Second, engagement in community and contribution to its development that is ・We respect the culture and customs of each country and region in which we do business. ・We collaborate with stakeholders to improve local communities as well as to build a sustainable society that is welcome everyone to live in. Third, relationships of trust with customers We earn the trust of our customers as a true business partner by humbly listening to our customers, by considering issues and challenges from their point of view, and working together to solve them..

[Audio] The last part is "Crisis Management and Role of Senior Management". In this part we have 2 activities, There are: First Through crisis management. Second Roles and attitude of senior management. About, through crisis management. We identify key risks that pose a threat to civil society and corporate activities, and ensure crisis management to minimize damage and prepare for business continuity in the event of an emergency. And, About, role and attitude of senior management The senior management takes the initiative in realizing the values of this Policy and ensures that this Policy is comprehended throughout the company and group companies. It also establishes and operates an effective governance system to ensure the soundness, efficiency, and transparency of corporate management. In the event that violation of the spirit of this Policy occurs, the senior management proactively take responsibility to respond to the situation, including resolving the problem, investigating the causes, and preventing the problem from recurring . That's all for Hino Sustainability Policy..

[Audio] Now, lets continue the third pillar of the HINO Ways which is Hino Code of Conduct. The HINO Code of Conduct is Standards of conduct for each and every one of us. It consists of three parts. First, related to compliance with laws, regulations and standards. Second, related to contribution to our customers and society and last one, related to creation of a healthy workplace..

[Audio] The Code of Conduct sets out the model behaviors that each employee is expected to follow. However, because of the complex and changing environment, the Code of Conduct does not cover every situation in our work. To ensure that we act with integrity, all of us must always keep the three questions as mentioned earlier. The answers to the questions will help you determine if you are "doing the right thing"..

[Audio] First question is "Are you complying with laws and ethical norms?" Second is "Are your actions in line with Hino's mission and core principles?" Third is "Can your family be proud of the action, inaction, judgement, or decision you are about to make in your work?" If you have any small concerns about your actions or decisions, you should not keep it to yourself and you should speak up. When we do "Speak-up" Your opinion will save the company from a crisis. The company will protect you. You can consult with your supervisors, CCO and compliance officers, or HINO Global Compliance Hotline or NAVEX The company will not tolerate any disadvantage or revenge against anyone who speaks-up. If someone speaks up to you, say Thank you for letting me know this If you are a supervisor or a manager in a workplace, your subordinates may speak up to you. In that case, you should first express your gratitude, and then take what is said to you seriously and think of solutions together. Of course, if it is difficult to deal with the problem by yourself, or you do not have the authority to solve the problem, you should not keep it to yourself. You should also consult with your supervisors, any other department designated in each company, or HINO Global Compliance Hotline, Navex.

[Audio] As mentioned earlier, the Code of Conduct consists of three parts. Part 1 Comply with laws, regulations, and standards Part 2 Contribution to Our Customers and Society Part 3 Creation of a Healthy Workplace.

[Audio] Part 1. Comply with laws, regulations and standards. Item 1. Relates to actions towards safety, environment and quality. Our commitment to compliance will extend to every stage of Hino's operations, ranging from product planning and development to production, logistics, sales, and services. We will comply with all laws and regulations relating to safety and the environment not only in Japan but also in other relevant countries such as the United States manufacturing. We will also earn the trust of customers and society by pursuing high quality so that customers can feel safe and assured while using our products and services. In addition, we will never falsify or fabricate safety, quality, and performance inspections or test results, and we will obtain, record, and store data in an appropriate manner..

[Audio] Part 1. Comply with laws, regulations and standards. Item 2. Relate to fair trade. We will comply with all antitrust and competition laws and other trade practices laws in Japan and other jurisdictions in which Hino operates and will act in the spirit of those regulations. We will comply with the terms of contracts with our business partners. We will promote business activities in a fair manner through business relationships. In all transactions with overseas customers, we will comply with regulations regarding imports and exports (e.g., laws and regulations concerning import and export controls and customs), all international rules (including trade agreements and tax treaties), and all other applicable regulations (including anti-dumping laws and agency protections laws) in all relevant jurisdictions. As an organization, we will take a resolute stand against organized violence and criminal behavior by organized criminal groups. If we receive an unreasonable, illegal, or unethical demand, we will immediately consult with the department in charge, and work with the relevant authorities in order to swiftly resolve the issue. We will not do business with terrorist organizations or those involved in terrorist organizations, nor with individuals or organizations involved in money laundering, and we will comply with all applicable economic sanction measures. When, in the course of our work, we become aware of any material fact regarding Hino or its business partners that will significantly affect investment decisions and which has not been disclosed to the general public ("insider information"), we will not purchase or sell stock or bonds of Hino or such other company, nor will we encourage others to trade, based on such information until the "insider information" is disclosed to the public. In addition, we will not disclose the "insider information," such as planned announcements of new products or undisclosed financial results, to anyone within or outside Hino (other than as necessary to conduct our business), including our families, until the "insider information" is disclosed to the public. 4We will handle all "insider information" concerning Hino or its business partners appropriately and in compliance with the applicable laws and regulations and Hino's internal rules.

[Audio] Part 1. Comply with laws, regulations and standards. Item 3. Relate to respecting human rights and diversity. We will comply with the International Convention on the Elimination of All Forms of Racial Discrimination and Sustainable Development Goals ("SDGs"), and will understand and respect various individuality and differences such as race, religion, ideology, gender, age, nationality, and disability, among other characteristics. We will never tolerate any unfair treatment, such as prejudice or discrimination, nor will we commit such actions ourselves. In addition to respecting individual characteristics and differences, we will be aware of social and cultural differences and treat them with respect..

[Audio] Part 1. Comply with laws, regulations and standards. Item 4. Anti-bribery and corruption and distinction between public and private interests. We will not make demands from our customers, business partners, or stakeholders for personal profit or benefit. We will also sufficiently review and act cautiously before accepting offers of gifts and business entertainment from our customers, business partners, and stakeholders to ensure that such gifts and business entertainment are appropriate in light of legal, ethical, and social norms. Bribery of public officials, both in Japan and overseas, is not only severely punished in each country, but also interferes with the government's responsibility to serve the public interest and triggers serious political and social issues. In addition, in order to maintain transparent and fair relationships with politics (political parties) and administration (government agencies), it is necessary to be aware of the relevant laws and regulations in Japan and overseas and to properly consider whether the relationships with political and governmental actors are appropriate in advance, even if such relationships are part of customary business practices. We are responsible for taking actions that are in the best interests of Hino Group. If there is a conflict of interest between an individual's interests and the company's interests, we will report it to the supervisor in advance, and act appropriately to ensure that it does not undermine the fairness of the business or public trust in the company..

[Audio] Part 1. Comply with laws, regulations and standards. Item 5. About Management of Hino Group's assets and protection of intellectual property and personal data. We will carefully handle and properly manage Hino Group's assets and will use them only for the purposes permitted by the company. Assets include tangible assets such as land, buildings, machinery, equipment, inventory, computers, and cash, as well as intangible assets such as intellectual property (e.g., patents, trademarks, and copyrights) and confidential information. We will carefully manage confidential information in accordance with the company's rules and take all possible care on a daily basis to prevent the leakage of confidential information or other problems from occurring. In addition, we will comply with all relevant laws and regulations as well as internal rules and policies when collecting, storing, using, disclosing and destroying personal information..

[Audio] Part 1. Comply with laws, regulations and standards. Item 6, About accurate and complete financial reporting. To earn the trust and confidence of stakeholders inside and outside Hino Group, it is necessary to disclose Hino's operating results such as its business performance and financial position in an accurate and timely manner. To prevent inappropriate accounting practices and false reports, we will keep complete accounting and financial records and report in an appropriate and accurate manner, in accordance with laws, regulations, and internal rules..

[Audio] Part 2. Contribution to our customers and society. Item 7. About contribution to customers. A company can exist only when its work is necessary and useful for customers and society. By continuing to support our customers' businesses through our operations, each of us can contribute to the sustainable development of society, which will make for a more prosperous society around the world. To this end, it is important that each of us thinks from the customer's perspective, understands the needs of our customers, and responds to those needs, based on the principle of "valuing the work of our customers". In a changing society, we always consider how to best serve our customers and work tirelessly to provide them with better value..

[Audio] Part 2. Contribution to our customers and society. Item 8. About Contributing to society and local communities. By manufacturing commercial vehicles and unit components and providing various services, we aim to achieve our corporate mission "We make the world a better place to live by helping people and goods get where they need to go." As citizens, we also have an obligation to make contributions to improve society. Participating and cooperating in local activities and disaster recovery efforts can help us to become more aware of our own role in society and enrich our lives..

[Audio] Part 2. Contribution to our customers and society. Item 9. About initiatives for the preservation of the global environment. As set forth in the provision of "3. Environmental Management" of HINO Sustainability Basic Policy, it is our responsibility as members of society and inhabitants of our planet to give full consideration to environmental issues and minimize the environmental impact of our products and operations. The first step towards global environmental preservation is for each and every one of us to work with an awareness of environmental issues such as air and water pollution and climate change.

[Audio] Part 3. Creation of a healthy workplace. Item 10. About Safety and health. In order to conduct our operations and deliver the highest-quality products and services to our customers and society, it is essential that we ensure the safety of our workplaces. We will always strive to ensure safety by thoroughly implementing the 5S initiatives (Seiri (Sorting)/Seiton (Systematizing)/Seiketsu (Standardizing)/Seisou (Shining)/Shitsuke (Sustaining)) at our workplaces, anticipating risks and eliminating them in advance. In order to continue to achieve results while gaining a sense of fulfillment in our daily work, we will also consider and pay attention to the physical and mental health of not only ourselves but also our colleagues. The company will create a safe and healthy workplace for all of our employees while complying with the labor laws and regulations that govern occupational health and safety, employment, working conditions, and wages as well as internal employment policies..

[Audio] Part 3. Creation of a healthy workplace. Item 11. About mutual respect and human resources development. Work is performed by a team, not by one person. If there are colleagues who have concerns, we will stand by them, listen closely to their concerns, and work together to find specific solutions. We value everyone who works in the workplace, and we welcome diverse values and capabilities, as well as the experience and knowledge each person contributes. Differences in qualifications and positions within the company represent the weight of responsibilities within the company, not the weight of human value. We will prioritize the fair and impartial treatment of all employees. In order to gain the trust of all stakeholders, including customers and colleagues in the workplace, we will pay attention to not only our own work, but also seek to learn from colleagues engaging in previous and following processes, customers, as well as society as a whole, in both Japan and overseas. We will actually visit them, cultivate broad perspectives, accumulate many experiences, and continue to engage in healthy competition with colleagues. Based on the perspectives and experiences gained from these efforts, we will strive to do our utmost to improve our own capabilities..

[Audio] Part 3. Creation of a healthy workplace. Item 12. About dreams, goals and driving forces for the future. Each of us will regard the dreams and goals of our colleagues and other partners who work with Hino Group as our own, and we will work together to achieve them with a sense of collective ownership. As circumstances change, we will periodically reflect on whether it is necessary to adjust the dreams and goals we previously set. In doing so, we will make good use of the experience we have gained from past failures both inside and outside Hino by ourselves and our colleagues. We will never repeat the same failures..

[Audio] As a rule, if you have any doubt, concern, or find or suspect any violation, you generally should first consult your supervisor at your workplace. However, if you have any concern about doing so for various reasons or circumstances, you may consult the Hino Compliance Consulting Desk or the global or local reporting hotlines anonymously. Whistleblowers will be protected to the fullest extent possible. The information obtained during a report or consultation will be utilized only to the extent necessary for the company to conduct an investigation and take appropriate action. The Hino Compliance Consulting Desk or the global or local reporting hotlines, as well as the company, are strictly prohibited from divulging any confidential information. In addition, the company strictly prohibits retaliatory actions such as dismissal, discriminatory treatment, demotion, salary reduction, other adverse effects on personnel evaluation, unfavorable reassignment, divulgence of information on the whistleblower, or any other detrimental act against those who have reported any violation or potential violation in good faith. Should any retaliatory act occur, we will take strict measures against the violator(s).

[Audio] Managers and supervisors are expected to exercise ethical leadership in their workplaces. Managers and supervisors are required to create a workplace environment in which they listen to the opinions of each subordinate while setting examples for them, and in which employees can ask questions and make reports without hesitation. If a manager or supervisor discovers a problem or learns of one from another employee, the manager or supervisor will promptly report it to the appropriate person, such as our supervisors, any other department designated in each company, the Hino Compliance Consulting Desk, or the global or local reporting hotlines, confirm the facts, solve the problem, and take measures to prevent a recurrence. We will not tolerate retaliation against, or the detrimental treatment of, any person who has submitted a report, sought advice in good faith, and/or cooperated in an investigation..

[Audio] As to wrap up today, we can sensed that Hino's DNA is connected to the Corporate Mission and Core Principles of the New Hino Way. We also learn about Three keywords of common values, that is INTEGRITY, CONTRIBUTION, and EMPHATY. I would like you to keep in mind the reason for the existence of the Hino Group, together with these three key words can implemented in the workplace to make a better workplace..

HINO We make a better world and future by helping people and goods get where they need to go. Integrity We are committed to acting with integrity and in a compliant manner. Contribution We support a future society by committing to safety and environmental sustainability. We support the businesses of our customers by committing to quality and professionalism. Empathy We respect diversity and inclusion, and build a safe working environment..