Supply Chain Management Implementation Status and Performance

Impact

Number of prospective supplier factories that underwent CSR pre-assessments: 14factories

Number of Tier 1 suppliers subject to periodic audits: 38factories

Number of "Critical" and "Major" non-conformities identified: 157

Implementation of CSR Procurement Audits and Improvement Efforts Domestically and Internationally

Mizuno's CSR procurement audits cover not only the company itself but also overseas branches, domestic and international subsidiaries, as well as procurement sources of licensees and sales agents. Our CSR procurement efforts include two forms: pre-evaluation conducted before starting transactions with suppliers and regular audits of ongoing suppliers.

Implementation Status of CSR Pre-Assessments for Prospective Supplier Factories

In FY2025, we conducted pre-assessments (audits) of 14 prospective new suppliers.
For detailed information on the number of suppliers by pre-assessment rating category, please refer to the ESG Data.

Social / Mizuno

In recent years, there has been an increasing trend of new supplier candidates who have already undergone assessments by third-party auditing organizations. By reviewing and evaluating the results of audits conducted by these external organizations against Mizuno's standards, we determine whether the new supplier candidates meet the requirements to begin business transactions.

Corrective Action When the CSR Audit Result is Below B

If a factory receives a rating below B in the prior evaluation, we provide feedback on the results and discuss specific and feasible corrective and improvement measures with the supplier for the items deemed non-compliant. While respecting the supplier's autonomy in creating corrective and improvement plans, we conduct periodic checks and offer advice as needed, following up until they achieve a rating of B or higher, which is a prerequisite for commencing business.

Audits and Corrective Actions for Tier-1 Suppliers

In fiscal year 2025, including assessments by external auditing organizations, a total of 79 suppliers (7 domestic and 72 overseas) were evaluated.
The number of suppliers by evaluation grade based on these results is shown below.
The graph below shows the country distribution of the 38 suppliers that underwent direct audits.
For detailed information on the number of suppliers by rating category, please refer to the ESG Data section.

Social / Mizuno

Number of Audits and Average Scores by Country（FY2025）

graph：Number of Audits and Average Scores by Country

Audit Status for Suppliers Employing Foreign Technical Intern Trainees

As of April 1, 2025, Mizuno had 106 suppliers located in Japan. Among them, 34 suppliers employed a total of 433 foreign technical intern trainees. Of these, 15 suppliers were designated as key suppliers subject to audits, with 191 foreign technical intern trainees working at those facilities.
In FY2025, six audits were conducted. Five suppliers received a Grade A rating, while one supplier received a Grade C rating.For the supplier that received a Grade C rating, we implemented corrective actions and verified through a follow-up audit that the supplier had improved to Grade A.The foreign technical intern trainees employed by these suppliers consisted of 32 individuals from Myanmar, 24 from Vietnam, 13 from Indonesia, 13 from Cambodia, and 7 from Thailand.

Main Monitoring Contents

We conduct monitoring by categorizing audit items into the areas of human rights, labor practices, occupational safety and health, and environmental impact.
In fiscal year 2025, as shown in the table below, some suppliers had items identified as “critical” or “major.” We have provided appropriate advice and recommendations to support corrective actions and improvements.

Number and Percentage of Factories with Non-Conformities in Critical and Major Items in Audits (FY2025)

Items	Audit item	Audit Requirements	Number of Critical Items	Number of Major Items	Percentage of Applicable Suppliers (%)
Human Rights	Forced Labor / Slave Labor / Migrant Labor	Improper wage deductions		1	0.6%
	Freedom of Association	Mechanism for resolving worker grievances between factory management and worker representatives		2	1.3%
	Freedom of Association	Method for selecting worker representatives		2	1.3%
	Discrimination / Harassment / Gender	Discriminatory Treatment	2		1.3%
	Discrimination / Harassment / Gender	Harassment		1	0.6%
Labor Practices	Employment Contract	Workersʼ Employment Contracts		2	1.3%
	Employment Contract	Workersʼ social insurance		3	1.9%
	Working Hours	Method of recording working hours		2	1.3%
		Working Hours and Overtime Hours		16	10.2%
		Workersʼ access to leave		8	5.1%
	Compensation	Method of wage payment		3	1.9%
		Minimum Wage	3		1.9%
		Workersʼ social insurance		9	5.7%
		Overtime pay		7	4.5%
		Wage statements		1	0.6%
Safety and Health	Work Environment	Periodic health checkups for workers exposed to hazardous environments		7	4.5%
		Regular health checkups		2	1.3%
		Provision of personal protective equipment (PPE)		10	6.4%
	Chemical Substances	Safety Data Sheets (SDS) for chemical substances		6	3.8%
	Chemical Substances	Labeling of chemical substances		10	6.4%
	Fire Safety	Certificates/permits for building safety		6	3.8%
		Emergency exits and evacuation routes		5	3.2%
		Fire extinguishers		4	2.5%
		Fire inspection certificates/permits		6	3.8%
		Signage and markings for exits and emergency exits		11	7.0%
		Access to fire extinguishers, fire hydrants, and fire alarms		3	1.9%
		Fire safety training		3	1.9%
		Direction of emergency exit door opening	4		2.5%
Environment	Management Systems	Environmental Manager		2	1.3%
	Management Systems	Environmental permits		2	1.3%
	Pollution Prevention	Monitoring of noise impact on local communities (noise measurement at boundaries)		2	1.3%
		Waste storage areas		4	2.5%
		Transportation and Disposal of Waste		2	1.3%
		Monitoring of wastewater discharge		4	2.5%
		Management of discharge limits for pollutants in discharged wastewater/sewage		1	0.6%
	Chemical Substances	Measures to Prevent Chemical Spills		1	0.6%

Details of Non-Compliance Related to Human Rights

In recent years, with the remarkable rise in human rights awareness, cases of suppliers suppressing employee rights have become increasingly rare.
Under these circumstances, eight human rights-related issues were identified during audits conducted in FY2025. Of these, one case concerned deficiencies in the method used to select employee representatives. As of the end of March 2026, corrective action had not yet been verified, and the supplier is continuing its remediation efforts.

Corrective actions for all other findings have been completed and verified.

Non-Compliance Issues Other Than Human Rights

In fiscal year 2025 audits, non-compliance issues unrelated to human rights were identified in the areas of “occupational safety and health” and “labor practices”.
Specific cases are shown in the table below.

Audit Category	Specific Non-Compliance Case	Number of suppliers	Percentage of Applicable Suppliers (%)
Labor Practices	Do working hours and overtime comply with legal requirements?	16	42.1%
Occupational Safety and Health	Are adequate guards or devices installed for moving/rotating parts of machine, pulleys and belts or any other dangerous parts of machines?	13	34.2%
Occupational Safety and Health	Are exits and fire exits identified with sign or indicator lamps?	11	28.9%
Occupational Safety and Health	Is personal protective equipment (PPE) in fully acceptable condition provided for workers?	10	26.3%
Occupational Safety and Health	Are chemicals properly labeled?	10	26.3%
Labor Practices	Are all workers provided with social insurance that meets local legal requirements?	9	23.7%
Labor Practices	Are workers available to take one day off in seven?	8	21.1%
Labor Practices	Are overtime wages paid in accordance with applicable laws and regulations?	7	18.4%
Occupational Safety and Health	Are periodic medical examinations arranged for workers exposed to hazardous working conditions?	7	18.4%
Occupational Safety and Health	Are Safety Data Sheets (SDSs) for chemicals maintained in the local language?	6	15.8%
Occupational Safety and Health	Are dangerous/ hazardous substances safely and securely stored? And is fire-extinguishing equipment appropriate there?	6	15.8%
Occupational Safety and Health	Are all site buildings structurally safe, inspected and have certificate/license issued by local government authority?	6	15.8%
Occupational Safety and Health	Where required by applicable local laws or regulations, does the facility maintain a valid fire inspection certificate and/or operating permit issued by the relevant local fire authority?	6	15.8%

Correction Status of Non-Conformities

In the CSR audits conducted between April and September 2025, a total of 222 non-conformities were identified. As of March 31, 2026, corrective actions had been verified for 145 of these cases (65%).
Furthermore, among the suppliers audited during the fiscal year, there were no cases in which business relationships were terminated due to failure to achieve the evaluation grade required for continued transactions.

For details on the correction status of non-conformities, please refer to the ESG data.

Response to Secondary and Tertiary Suppliers

For secondary and tertiary suppliers—those who do not have direct business relationships with us but supply raw materials, components, semi-finished products, or labor to our primary suppliers—we seek to identify and address any potential concerns by collecting information through our primary suppliers.

Since FY2017, we have expanded the scope of our audits to include secondary and tertiary suppliers. The main targets include plating factories for golf iron heads and tanning factories for leather used in baseball gloves and shoes.

Details of the actions taken in each fiscal year are provided below.

FY	Actions Taken
2017	We conducted audits of two suppliers involved in golf component manufacturing. In addition, to better understand the actual working conditions at secondary and tertiary suppliers outside of component manufacturing, we visited the production sites of a metal processing facility in Japan and a fabric dyeing facility in Thailand.
2018	We conducted CSR audits of suppliers involved in golf club component manufacturing and plating processes for golf clubs in China, leather tanning in Vietnam, upper (vamp) manufacturing for shoes, and rubber outsole manufacturing for shoes.
2019	We conducted audits of suppliers involved in golf club component manufacturing, as well as upper (vamp) and sole manufacturing for shoes. Among these, non-conformities were identified during audits of suppliers engaged in golf component manufacturing, sole production, and upper (vamp) processing.
2020	We conducted follow-up audits of suppliers where non-conformities had been identified in FY 2018 and FY 2019, and confirmed that the issues had been corrected. Additionally, we conducted audits of suppliers involved in golf club manufacturing.
2022	We conducted an audit of a supplier involved in golf club component manufacturing and identified non-conformities. As a result, we scheduled a follow-up audit for FY 2023.
2023	We conducted a follow-up audit of a supplier involved in golf club component manufacturing, where non-conformities had been identified during the FY 2022 audit, and confirmed that the issues had been corrected. We also reviewed the transaction status of secondary and tertiary suppliers in the apparel, footwear, and equipment categories, as well as the necessity of future audits. Based on this review, we considered future management approaches.
2024	In relation to product procurement by our U.S. subsidiary, we investigated the first- to third-tier suppliers to ensure compliance with U.S. customs regulations and the Uyghur Forced Labor Prevention Act. As a result, we confirmed that no procurement was made from suppliers banned by U.S. Customs and Border Protection.
2025	We conducted an audit of one supplier involved in the manufacture of golf components and confirmed that corrective actions had been completed for all 13 items identified as non-conformities. We also re-examined the transaction status of secondary and tertiary suppliers for apparel, footwear, and equipment products, and assessed the need for future audits.

* We were unable to conduct audits in fiscal year 2021 due to preventive measures against the spread of COVID-19.

Communication with Suppliers

To promote CSR procurement activities—including the protection of human rights and occupational health and safety for workers at contracted factories, as well as the advancement of environmental conservation efforts at those sites—we actively engage in communication with suppliers and local staff involved in production.

During audits, we assess the current conditions of suppliers through employee interviews and on-site visual inspections. Based on these findings, we provide feedback during the closing meeting of each audit, identifying any non-conformities with our requirements and offering guidance to support necessary corrective actions.

Closing Session of the Audit

Interview Sessions with Foreign Technical Trainees