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Seeking to Realize Inherent Potential of Energy Procurement Activities Introduction • Profile • Basic Procurement Policy • What We Ask of Our Suppliers • Major Procurement Items Procedures • Selling Products to Chugoku Electric • Standard Procurement Procedures New Suppliers Sought Import Action Program • Summary • List of Overseas Products Available for Purchase • Main Items Purchased from Overseas Notice • Main Procurement Plan of Materials and Equipment in Fiscal 2009 • Publication of Procurement Information Copyright(c) The Chugoku Electric Power Co.,Inc.

We ask of our suppliers:   Chugoku Electric aims to establish mutual trust with our suppliers, to build a trade relationship which allows both parties to prosper in the long term.   To this end, we believe that it is important to fulfill social responsibilities demanded of a corporation in addition to securing quality and reducing costs, and we ask all suppliers to act on the following. 1. Adherence to legal regulations and social standards of conduct     Observing all laws, regulations, and morals in countries and regions of supplier operations - All laws (countries, regional common law, trade laws, copyrights, labor laws, personal information protection laws, antitrust laws, subcontractor protection laws) and social morals. - Prohibition of child labor and forced labor - Prohibition of discrimination on the basis of gender, disability or race. Consideration for disadvantaged persons. - Protection of human rights in consideration for laws and cultures of individual countries. - Protection of the freedom to form unions and right of group negotiations, and protection of laborers rights.   2. Securing of safety and healt     Upholding laws and regulations regarding safety and health, upholding social rules, and abolishment of labor accidents and public accidents through creation of a safe and clean work environment.   3. Active efforts in environmental problems     Working towards creating a society that is able to continue developing, reduce environmental loads involved in various business activities, in addition to active efforts to creating products and work methods that are considerative for the environment. - Effort to acquire the international standard for environmental management system approval (ISO 14001) - Performing “green procurement” and active efforts in creating environmental products.   4. Management and protection of information     Appropriate management of information gained through transactions, and protection of secrecy.   5. Securing appropriate quality     Building a quality assurance structure for maintaining appropriate quality - Continued supply of materials and services that satisfy specifications and quality sought for by Chugoku Electric. - Upholding safety standards - Continued maintenance and improvement of technical ability - Effort to acquire the international standard for quality control and quality assurance (ISO9001)   6. Supply at a reasonable price     To continually provide materials and services at an appropriate competitive price, and efforts towards continued cost reductions.   7. Adherence to deadlines     Following delivery and work period deadlines, and creation of a stable supply / service structure.   8. Provision of good after-sales services     Fast and appropriate service during disasters, accidents, and other emergency situations, cooperation in maintenance, and appropriate response and guarantee when claims and problems occur.