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Basic Policy on Product Safety

Having adopted the following the Basic Policy on Product Safety, Canon Machinery Inc., shall adhere to its corporate philosophy and contribute to the enrichment of society by delivering advanced, high-quality products and services that safely meet customer needs. We shall abide by this policy as a member of the Canon Group.

1. Compliance with Laws and Regulations

Canon Machinery shall act in conformity with all laws, regulations, policies, guidelines, and other rules governing product safety. We shall implement employee educational and training programs focused on these laws and regulations and on corporate rules in order to instill a good understanding of product safety throughout the Company.

2. Ensuring Product Safety

Canon Machinery shall make every effort to ensure that we provide our customers with safe products. To that end, we shall endeavor to constantly improve on safety by conforming to our own safety standards in addition to the safety requirements established by laws and the industry.
To support the safe and correct use of our products, We shall provide the necessary warning labels and indications on products and in instruction manuals as part of our precautionary measures against product-related accidents.
We shall implement educational and training programs for employees and other relevant personnel to ensure product safety and prevent product-related accidents.

3. Responding to Product-related Accidents

Canon Machinery shall develop a system for promptly gathering information on accidents involving our products. In the event of a serious accident caused by one of our products, we shall, as required by law, promptly report the incident to an administrative agency through Canon Inc., and shall inform affected customers as appropriate
Should a product related accident occur, we shall take all necessary measures, including recalls and free repairs.

4. Formulating Our Voluntary Action Plan

Canon Machinery shall aim to instill a corporate culture that respects customers and product safety by implementing a Voluntary Action Plan for Product Safety according to our stated policy and shall undertake constant improvements to ensure its effectiveness.

March 28, 2016

Takashi Kanzaki
President
Canon Machinery Inc.

Voluntary Action Plan for Product Safety

Canon Machinery Inc. has adopted a Product Safety Policy in keeping with its corporate philosophy in order to contribute to social enrichment by delivering advanced, high-quality products and services that safely meet the needs of our customers. Under this policy, we formulated the Voluntary Action Plan for Product Safety shown below. We shall implement it in collaboration with the other corporate members of the Canon Group.

1. Compliance with Laws and Regulations

Canon Machinery shall abide by all relevant laws, regulations, guidelines, and rules concerning product safety in addition to complying with the Policy on Product Safety and the Voluntary Action Plan for Product Safety. Toward this end, we shall compile and standardize the education and training programs required to impart a good understanding of the laws and regulations mentioned above and provide these programs to our employees.

2. Ensuring Product Safety

  1. Compliance with and Revision of Our Safety Standards
    1. To ensure the safety of our products, we shall unerringly follow our own safety standards in addition to legal and industrial safety requirements.
    2. In the interests of ensuring product safety, we shall pursue product development, design, and production in a manner that satisfies our own safety standards as well as legal and industrial safety requirements while ensuring conformity with standards and requirements at each stage prior to shipment.
    3. We shall continually review and revise our safety standards to maintain consistency with societal developments and technical progress.
  2. Using Labeling to Prevent Product-related Accidents
    1. Canon Machinery shall provide customer-friendly precautionary labels and indications on packages and delivery specifications while ensuring ease of noticing, reading, and understanding the instructions.
    2. In the interests of preventing product accidents, we shall constantly improve on our labeling and seek to devise easier-to-understand labels.
  3. Ensuring Product Safety and Accident Prevention through Education and Training
    1. Utilizing our quality education system for our employees, Canon Machinery shall continually implement education and training in product safety technologies.
    2. For businesses that purchase our products, we will continue to provide the required information on product safety.

3. Responding to Product-related Accidents

  1. Establishing a Framework for Gathering Product-related Accident Information
    1. Canon Machinery shall compile product accident information and other quality-related information—including opinions on quality and information on product defects that could cause accidents—from within our company and from outside organizations, such as businesses that purchase our products, industry organizations, public institutions, and their employees. Toward this end, we shall implement a system that compiles information from external entities and communicates information to relevant internal organizations.
    2. We shall utilize our IT management system to ensure expedited communication and sharing of collected information.
    3. Important information, specifically information on product-related accidents, shall be reported to upper-level management in order to prompt a Company-wide response.
    4. Following analysis of the collected information, we shall implement appropriate countermeasures and make the necessary modifications in product development, design, and production in addition to affixing warning labels and meeting delivery specifications.
  2. Providing Information to Customers
    1. Canon Machinery shall promptly and appropriately provide information regarding serious product accidents to customers.
    2. Investigations to determine the cause of serious product accidents, the provision of information and the consideration and implementation of response measures will be handled appropriately by the employee in charge of the product business and the Quality Assurance Division Manager.
  3. Responding Appropriately to Product-related Accidents with Inspections, Recalls and Repairs
    1. In the event of a product-related accident, Canon Machinery shall immediately take steps to prevent a recurrence by launching an investigation into the cause of the accident and take appropriate measures, including product inspections, recalls and repairs.
    2. We will manage the progress of product inspections, recalls and repairs and take all measures necessary to promote their implementation.

4. Ensuring the Effectiveness of Our Voluntary Action Plan for Product Safety

  1. To ensure the effectiveness of the Voluntary Action Plan for Product Safety, Canon Machinery shall have in place a framework while continually reviewing and organizing its internal rules.
  2. We shall conduct internal audits and other periodic monitoring efforts to ensure the effectiveness of the Action Plan by undertaking any necessary improvements.
  3. Top management shall periodically review the Action Plan and implement necessary revisions.