Awards for Product Safety

Awarded at the 12^th Annual Product Safety Award in 2018, and two-time award winner of the Ministry of Economy, Trade and Industry Award

NITORI Holdings Co.,Ltd recieved the 2018 Product Safety Award, in recognition of the points below.Also, this is the second time recieving the Minisitry of Economy,Trade and Industry Award in the Major Corporation Retail Business division since 2016^(*).

Note: Once awarded this award, the system does not allow you to apply for the award the following year, which is why 2018 is the second time we won the award, since 2016.

1. Expanding the scope of quality assurance manual to prevent silent change in the supply chain.

We require the “ Quality Assurance Manuals,” which is originally required for the first manufacturer, to be instructed to the second manufacturer as well as companies that make parts. This avoids quaily changes within the supply chain and ensure product safety.

2. Developing safety evaluation, by implementing technology evaluation meetings at overseas bases.

We implement the same technology evaluation meetings held here in Japan, at our overseas bases(Shanghai, Ho Chi Minh). By using video calls from Japan, we refer to the past cases of troubles that we had, to instruct and offer support to factories and manufacturers. By implementing such meetings close to the production sites, we are able create a system to effectively evaluate the safety of actual products, as well as precisely determine issues that need attention, and expedite notification to manufacturers.

3. Expansion of instruction on technology, management and quality improvement to our oversea suppliers.

We have over come the walls between corporations to provide instruction in technology and business management for our subcontractors overseas, as well as our suppliers who have business with other companies. In our seminars for managers and executives, we strive to coach them where labor environment and social responsibility are concerned.

Minister of Economy, Trade and Industry Award at the 10^th Awards for Best Contributors to Product Safety (FY2016)

NITORI Holdings Co., Ltd. received the Minister of Economy, Trade and Industry Award in the large retailer category at the 10^th Awards for Best Contributors to Product Safety (FY2016), in recognition of the points outlined below. This is the fifth time the Company has received an award since the 2^nd Awards (FY2008) and the first time the Company has won the Minister of Economy, Trade and Industry Award.

1. Initiatives to ensure safety through unified collaboration

In an attempt to create a new business model for “ product safety and quality improvement,” NITORI has established a “unified collaboration structure” with suppliers based on the idea that the responsibility of the manufacturer for product safety and the responsibility of the seller for product safety are “inseparable and are not allowed to be separated or left to others.” NITORI has established a quality manual for purchasing safe products and provided guidance to suppliers on production technologies and process management aimed at maintaining product safety.

2. Initiatives to thoroughly assess technologies and prevent accidents

When selecting products to sell, NITORI performs the usual strength tests, and also considers the environment of the user and conditions of use, verifies the functions and structure of products, and tests their durability at technical assessment meetings. By assessing safety based on risk thresholds, dismantling products to assess their structure, and using endurance testing machines to assess their durability, NITORI identifies any potential problems and takes steps to prevent accidents in advance.

3. Initiatives across entire supply chain through management training and plant audits

NITORI educates its suppliers about the importance of manufacturing safe products. By providing technical guidance to plants and guidance on maintaining product safety to plant management, NITORI seeks to prevent product accidents. NITORI also audits manufacturers and provides guidance on how to improve.

Director-General for Commerce, Distribution and Industrial Safety Policy Award at the 8^th Awards for Best Contributors to Product Safety (FY2014)

NITORI Holdings Co. Ltd. received the Director-General for Commerce, Distribution and Industrial Safety Policy Award at the Ministry of Economy, Trade and Industry 8^th Awards for Best Contributors to Product Safety (FY2014), in recognition of the points outlined below. Having received an award in the retailer category at the 7^th awards, this time our award was in the manufacturer and importer category. This is the first time awards have been presented to the same company for manufacturing and retailing and we have won awards two years in a row.

1.Working with suppliers to create a culture of product safety

We work with all of our suppliers to create a culture of product safety, combined with an air of friendly competition through activities such as global retail group activities, QC group contests and visits to the best plants.

2.Verifying product safety from different angles

We verify product safety through measures such as dismantling products and structural analysis, as well as durability and stress tests. We then collate the resulting product safety data and incorporate it into assessment standards in order to improve product safety.

3.Improving organizational capabilities across all workplaces through human resource development

We develop human resources both in Japan and overseas on a medium- to long-term basis in line with our in-house accreditation system for product safety and quality engineers. In addition, we develop human resources with the goal of improving organizational capabilities across all workplaces from production to distribution and our stores.

Director-General for Commerce, Distribution and Industrial Safety Policy Award at the 7^th Awards for Best Contributors to Product Safety (FY2013)

NITORI Holdings Co. Ltd. received the Director-General for Commerce, Distribution and Industrial Safety Policy Award at the Ministry of Economy, Trade and Industry 7^th Awards for Best Contributors to Product Safety (FY2013), in recognition of the points outlined below.

1.Establishing a vertically-integrated product safety assurance system

We have established a vertically-integrated product safety assurance system that runs from development to sales. Measures at the product development stages include checking specifications using the FMEA method and testing durability using in-house testing facilities. Measures at the production stages meanwhile include providing onsite guidance at suppliers’ plants.

2.Providing safety information to prevent accidents caused by product degradation

We provide adequate safety information on a timely basis in order to prevent accidents or issues from product degradation over time. Safety information is provided through measures such as mailing maintenance information direct to customers who have purchased our products.

3.Establishing a traceability system linking together product manufacturing and purchasing records

We have established a system that links together manufacturing records, including parts, materials and manufacturing lots with customer purchasing records based on membership cards, so that we can ensure traceability from manufacturing through to usage, and respond in the event of an emergency.

Director-General for Commerce, Distribution and Industrial Safety Policy Award at the 5^th Awards for Best Contributors to Product Safety (FY2011)

NITORI Holdings Co. Ltd. received the Director-General for Commerce, Distribution and Industrial Safety Policy Award at the Ministry of Economy, Trade and Industry 5^th Awards for Best Contributors to Product Safety (FY2011), in recognition of the points outlined below.

1.Thorough technical evaluations conducted prior to approval of products for manufacturing

NITORI conducts technical evaluations on safety and quality of products before actually approving manufacturing. If the results indicate that the products are faulty, they will not be approved and improvements will be requested. After improvements are made, re-evaluation will be conducted to thoroughly check products scheduled to be manufactured have no safety and quality problems.

2.Strengthening of factory production and quality management of suppliers

When choosing a business supplier, NITORI evaluates the attitude and compliance of factory production/quality management beforehand. After business commences, we strengthen the production/quality management system of our suppliers by conducting onsite confirmations, seminars, lectures and tests.

3.Fostering technical specialists that can evaluate quality

Since FY2007, NITORI has been operating a system of authorizing quality management specialists and striving to improve knowledge of quality technology. In addition, we also conduct various types of production/quality management education and training to renew employees' awareness of safety and quality.

Silver Prize Winner in “The 2^nd Awards for Corporations Implementing Superior Product Safety Measures” of the Minister of Economy, Trade and Industry (FY2008)

NITORI received the Silver Prize at the Ministry of Economy, Trade and Industry 2^nd Awards for Best Contributors to Product Safety (FY2008): Large-Retailer Division.

Based on impartial consideration, this award is granted annually to manufacturers, importers, and retailers that stand out in taking safety measures for their products or services. NITORI was selected as the recipient of the Silver Prize in recognition of its strict measures for accident prevention, accident response and personnel development from 2005 to 2008.

On November 17, the awards ceremony was held as part of The 3^rd Seminar for Product Safety Overhaul. The deputy director-general for product safety and distribution policy of the Ministry of Economy, Trade and Industry presented award certificates and a commemorative plaque to the winners. At NITORI, we are determined that all of our employees continue to participate actively in product safety efforts and we're pushing forward with measures to meet our customers' expectations and desires.