KIMURA UNITY Report
２０２３

Environment︓“Contribution to Solving
Global Environment Issues”

Customer value︓

Road Traffic Safety︓“To help realize our customersʼ
success ensures our stable
growth"“Achieve a Society with No
Traffic Accidents”

Management
Philosophy
Decent Work︓

Safety and Health︓“For Everyone to Shine”--Talented and Shine Human
Resources Development--“Ensure a Healthy and Safe
Work Environment”

Corporate governance︓“Fair and Sound Business
Practice”

KIMURA UNITY GROUPＣＯＮＴＥＮＴＳ
TOP MESSAGE．．．．．．．．．．．．．．．．．．．．．．．．．． 1 〜 2

CORPORATE INFORMATION．．．．．．．．．．．．．．．．．．．．．．．．．．

3〜7

・Management Philosophy･Operating Style･Corporate Codes of Ethics 〔 p.3 〕
・Business Fields･Affiliated Companies 〔 p.3 〕
・Business Overview (The Origin of Each Business, and Today) 〔 p.4 〜 5 〕
・KIMURA UNITY History of Challenges with Reliability and Responsibility
over the past 140 years (Colorology of Key Events and Milestones with
its Trends in Sales) 〔 p.6 〜 7 〕

CORPORATE PURPOSE OF KIMURA UNITY GROUP．．．．．．．．．．．．．．．．．．． 8 〜 9．．．．．．．．．．．．．．．．．．．．．．．．．． 10 〜 42

CHALLENGE FOR VALUE CREATION
・Identifying Challenges 〔 p.10 〕
・KIMURA UNITY Group’s Materiality 〔 p.11 〕
Initiatives for Materiality－ Customer Values－ Road Traffic Safety－ Environment－ Decent Work (Job Satisfaction)－ Safety and Health－ Corporate Governance〔 p.40 〜 41 〕
・Value Creation Story〔 p.12 〜 15 〕
〔 p.16 〜 19 〕
〔 p.20 〜 25 〕
〔 p.26 〜 29 〕
〔 p.30 〜 33 〕
〔 p.34 〜 39 〕

・Initiatives in Each Business 〔 p.42 〕

FINANCIAL AND NON-FINANCIAL INFORMATION
・Key Financial Data．．．．．．．．．．．．．．．．．．．．．． 43 〜 47

〔 p.43 〜 46 〕

・Key Non-Financial Data 〔 p.47 〕

STRATEGY．．．．．．．．．．．．．．．．．．．．．．．．．． 48 〜 71

・Medium-Term Management Plan 2023 〔 p.48 〜 49 〕
・Business Strategy 〔 p.50 〜 60 〕
・DX(digital-transformation) Strategy 〔 p.61 〜 71 〕

APPROACH TO SUSTAINABLE DEVELOPMENT GOALSDOMESTIC AND OVERSEAS BASES．．．．．．．．．．．． 72 〜 75．．．．．．．．．．．．．．．．．．．．．．．．．． 76

TOP MESSAGE
We aim to realize a corporation under
our management philosophy bynurturing people in an environment
where each individual can take onchallenges while being aware of theirown growth, leading to further
contributions to our customers.
Thereby, we will continue to be acompany of choice by stakeholders,
contributing to the sustainable
development of society and the earth.
代表取締役 会長

代表取締役 社長

Chairperson

President

Yukio Kimura

Shigehiro Naruse

On the basis of “One Team Management by Total Participation,” we formed the Medium-Term Management
Plan 2023 on the concept of promoting business strategies that go beyond the scope of existing businesses.
In FY 2022, the second year of the project, we addressed ourselves to achieving the goal with the policy of『Everyone steadily realizing “Normal Evolution” ---without being complacent with the status quo.』With the rapid and drastic changes that we are confronted in the business environment of today, it has
become very diﬃcult to accurately understand the diverse customer needs with limited resources of the
management layer. It is essential to have on-site experts involved to respond to the detailed customer needs
by providing unfailing meticulousness ﬁt for the requirements placed on the products and services by“One-Team Management by Total Participation.”
In order to further enhance the management of “One-Team with Total, Active and Responsible Participation,”even in the environment where changes takes place on a daily basis, it is essential for us to be particular about
the “quality” of actions to meet the expectations of our customers with both the management and front-line
members who understand the “Gemba” best. We continue to work on “how to further increase the value of
our company,” to respond even to the ﬁne detailed needs of customers.
We are always willing to change ourselves without ever being satisﬁed with the present state for yet anotherimprovement and put our steps forward.
We were able to achieve the new record highs in both sales and proﬁts in ﬁscal 2022. I am convinced it is dueto the “quality” of the action plan at “Gemba” and “Change” in the management that brought us steadyprogress of “normal evolution.”
In order to further solidify our growth, in ﬁscal 2023, we will enhance the “One-Team management with theparticipation of all employees” and “normal evolution” in FY 2023. We aim not only to improve ourorganizational strength, but also to reach the target where all of us grow together with all team member.
By creating an environment where each individual can take on challenges while being aware of their own
growth, nurturing “people.” We believe our “people” are the assets and greatest competitive advantages.
We are committed ourselves to make further contributions for the beneﬁt of customers under ourmanagement philosophy.
Kimura Unity Report 2023

1

TOP MESSAGE
THE VISION OF KIMURA UNITY GROUP
Since its inception, our group have addressed to meet the expectation of customers under the management
philosophy by expanding business ﬁelds to such areas as logistics services, auto-related services and products, total
car services, mobiles, information system and staﬃng services. In the course of business activities, we have also been
engaged in the contribution of local communities in road traﬃc safety and environmental protection initiatives.
Confronted with increasing uncertainty about the future business today, we have reorganized our vison and speciﬁc
direction in order to steadily achieve medium- to long-term growth and development toward the future.
We worked on and consider, “What do we exist for?---”How do we contribute to customers and local communities?”――to envision and clarify the direction for the coming future. This time, we have declared that we formulated six
materiality issues out of various social issues we are facing today as important and high priority issues for us to address
through our business activities. Each of these eﬀorts being closely related to our business activities, each and every
employee is aware that they are connected not only to our daily work but also to the local communities we ﬁnd
ourselves. We will promote our initiatives to solve those speciﬁc issues.
Restructuring the company's growth strategy and value creation story based on the materiality formulated, we will
clarify the path toward our goal through growth and development for the realization of a sustainable society. We aim
to be the Group of choice for stakeholders in 150, 160 years after our founding, and beyond.

FY2023 Priority Implementation Item 1: Create a workplace culture where everyone wants to continue
working for a long time (Decent Work: For Everyone to Shine)
We are the Group with “One-Team management by total, active and responsible Participation,” where our frontline
members are sensitive enough to understand customer needs, and particular about providing reliable services best ﬁt
for the customer. We believe in the fact that the basis of trust and reliability comes from “people” after all. With this dayof changing times, the people working in the workplace are diversifying, and many people of diﬀerent ages, genders,
nationalities with diﬀerent work style backgrounds are working together. That is all more the reason why it is essential
to have a pleasant workplace culture where everyone wants to continue working for a long period of time.
As we promote people-centered management, each person is able to express his or her opinions freely, think forthemselves and work, help each other with colleagues, and achieve their goals as a team.
As we achieve each goal, we work to create a workplace culture where everyone wants to continue working for a longtime through daily work that gives them a sense of gratitude from colleagues and contribution to the team, sharing a
sense of achievement and satisfaction.

FY2023 Priority Implementation Item 2: Product Thinking:“Endless Pursuit of the Ideal Product”(Customer Value: To help realize our customers’success ensures our stable growth)
The Group have been engaged in four businesses: logistics, automobiles, information services and human resources,
which deliver a wide range of products and services. In order to always provide the best products and services tocustomers in various industries, it is essential that we always ask ourselves with an awareness, “What is our product?”
and what customer value we are trying to provide for the beneﬁt of our customers. When considering the promotionof automation in the logistics ﬁeld, it is an indispensable topic with high customer interest, due to the shortage of
personnel of today. However, we do not simply believe that introducing automated equipment will solve the problem.
It is inevitable that there will be work that links people and machines, in case where this link should not go well, we
would not be able to produce the expected results even if we invest in automation equipment. End result would bea failure, not being able to live up to the expectations of our customers.
We consider how the movement of people will change at worksite to improve, evaluating the value at the operationsite including the pre- and post-processes, and whether or not it will maximize the performance of machines andhuman intelligence to meet the expectation of customers. The whole process of our endeavors reﬂect on our productthat includes our power of challenge to materialize the improvement of operation to provide the best merchandise
to customers.
This mindset of ours applies to other business divisions, and we will continue to be conscious of “what our products are”
and continue to address improvement of products and services so that customers will choose us, saying, “We want to
entrust our company.”

2

Kimura Unity Report 2023

CORPORATE INFORMATIONManagement Philosophy

The Company exists for the customers and prospers together alongside our employees.

Operating Style
1. Create customer value
2. Strengthen proﬁtable foundations

Corporate Codes of Ethics

3. Enhance organizational performance with motivatedpersonnel
4. Maintain our actions and commitment to sustain
an eco-friendly environment and fulﬁll our corporatesocial responsibility

1. Perform fair and healthy business activities in compliance with laws, regulations and other social ethics.
2. Contribute to society by providing excellent goods and services.
3. Value the individual characters of our employees and realize a motivated, creative work environment.
4. Contribute to improving satisfaction, and create values for customers, business partners and stockholders.
5. Aim to become a good “corporate citizen” that contributes to local communities.
6. Maintain our commitment to preserve the global environment and create a prosperous and livable society.
7. Contribute to economic and social development respecting cultures and customers of each country or region.

Business Fields
Realizing our customer value through the four multiplex services of“Logistics Services,”“Total Car Services,”“Information Services”and“Staffing Services

Logistics Services

Total Car Services

Providing services to optimize the logistics systemwith an emphasis on “Standardization,”“Continuous Improvement” and“IT based Logistics

Offering comprehensive car services to help customers
with the improvement of car maintenance quality,
safety enhancement and cost reduction, so thatthe customers can become enriched intheir car-oriented lifestyle

Information Services

Staffing Services

Drawing on our expertise in our logistics
services accumulated over many years inorder to offer diverse solutions throughconsulting, system development andsystem maintenance services

Providing tailored services for supporting
corporate management with multifacetedhuman resources strategies fit forcustomer needs

Aﬃliated Companies

Consolidate Subsidiary Companies
TIANJIN KIMURASHINWA LOGISTICS CO., LTD.
China

〔Logistics Services〕

Guang z hou Guangqi
Kimura Shinwa Store Co., LTD.
China

〔Logistics Services〕

KIMURA, INC.
USA

〔Logistics Services〕

Logistics
Services

Total Car
Services

KIMURA UNITY
CO., LTD.
Information
Services

SUPER JUMBO CORPORATION
Nagoya City

〔Total Car Services〕

BUSINESS PEOPLE CO., LTD.
Nagoya City

〔Staffing Services〕

Aﬃliated company accounted for using the equity method
U-netrance Co.,Ltd.
Toyota City 〔Logistics Services〕

TK Logistica de Mexico S. de R.L. de C.V.
Mexico〔Logistics Services〕

TK Logistica do Brasil Ltda.
BRASIL〔Logistics Services〕

TTK Asia Transport（Thailand）Co.,Ltd.
Thailand〔Logistics Services〕

TTK Logistics（Thailand）Co.,Ltd.
Thailand〔Logistics Services〕

KOI Holdings. LLC （Two Other companies）
USA〔Logistics Services〕
Kimura Unity Report 2023

3

CORPORATE INFORMATION
BUSINESS OVERVIEW（The Origin of Each Business）
LOGISTICS SERVICES BUSINESS
Going back over the history of our company, we always come to our root back in 1881, when
the founder started a box manufacturing business engaged in supplying wooden boxes mainly
for textile wholesale companies. In 1950, we had an encounter with Toyota Motor Corporation(Currently TOYOTA MOTOR CORPORATION), and that was the impetus for us to start delivering
wooden boxes for auto parts. In 1952, we established KIMURA BOX Limited Partnership Company.
It was the expertise and the spirit of manufacturing that our forerunners had developed sharing
among them in the initial period development, which have been inherited as our corporate DNA
to this day. With the rise of corrugated cardboard, which took the place of wooden boxes, westarted a packaging business in line with a transport business as our new business in 1959. Thisbusiness has grown to be a logistics business, currently the main pillar of ours. Thanks to kind
support and understanding of our stakeholders, we succeeded in expanding business overseas.
In 2000, we began 3PL, which was not conﬁned to the automotive industry but entered into nonautomotive industries (currently NLS business), and has expended and grown on a large scale.
※ : Third-party logistics, or 3PL, is a system where an outside organization provides logistics services in general
to companies that need inventory management and distribution.

TOTAL CAR SERVICES BUSINESS
During the changing period of declining wooden box needs, we established a totally diﬀerent
business of car servicing and maintenance under the name of “TOYOPET Service Shop” in 1958,
in an eﬀort to ﬁnd a way out of the wooden box business, which lasted from its foundation.
We also made an important decision to start in the same year. That is to initiate an insurance agent
business with the view to being of help for the sake of customers against risks in the event of traﬃc
accidents. We were encouraged by our philosophy: “It takes buyerʼs view to make sales.” In 1973,
due to the growing interest in leasing service by customers, we started a car leasing business, andsubsequently, we also started the upstream business of car sales business in 1976. Following thatevent, we began the sales of car supplies and accessories in1997, thus cementing the foundation of
the total car services, the result of which formed the Total Car Services Business of today.
The essence of business always lies in the philosophy, “It takes buyerʼs view to make sales.”With the essential value of business kept in mind, we always give considerations with buyerʼs view
and put the essence into practice in our business conduct. This has been always true for other sales
activities.
Good results will come by with the basic mindset of “It takes buyerʼs view to make sale.”-----Excerpt from “KIMURA UNITY CENTENIAL HISTORY OF PROGRESS”

INFORMATION SERVICES BUSINESSThe roots of Information Services Business dates back to the time when we introduced a computer(IBM S/3-10) in1971, mainly for the in-house sales management and salary calculation.
Later, we began to undertake entrusted calculation business from outside, leading us to the currently
the main business, of logistics systems development alongside in-site training and guidance focusedon the information areas. In so doing, we have been taking an important part for Toyota Sales
Company (Currently TOYOTA MOTOR CORPORATION) in an area of overseas projects.

STAFFING SERVICES BUSINESS
Established as an aﬃliated company under the name of “Business People Co., Ltd.” in 2002, webegan staﬃng services so as to meet a wide variety of demands on human resources.
We were expanding our scale of business steadily. However, due to the shrinkage of the temporary
staﬃng market caused by the Lehman Shock, we turned our direction, and are now in the processof going toward promoting the structural reform of business focused on the areas of business
contracting, recruitment services and human resource development through education andtraining enriched in contents focused on the market needs.

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Kimura Unity Report 2023

BUSINESS OVERVIEW (at Present)

Corresponding
ESG SDGs

We provide high-quality services by utilizing our know-how and advanced skills we have accumulated anddeveloped as a logistics partner for major automobile manufacturers. The scope of business includes all areasof logistics business such as planning of logistics center and operation to Kaizen (improvement) of logistics
centers not to mention, arranging transportation. We also design and manufacture logistics equipment andincidental equipment such as dollies, carts and storage equipment ﬁt for the needs of customers.

Operation of Logistics Center

We provide a total support to meet the needs of quality improvementof logistics that includes a series of operations such as purchasing,storage, receiving and shipping, distribution processing and transportand delivery together with design of business, operation andinformation systems, thus contributing to cost reduction.

On-site Operation in Warehouse

S

Logistics Equipment/ Incidental Equipment

We plan, design and manufacture logistics equipment
and ancillary equipment to meet customer needs ﬁt
for the characteristics of products and parts that
includes follow-up services, which materialize highquality and low cost.

E

4WS Dollies
Work Dollies
Containment Equipment
Ancillary Equipment

Export Packaging/Packing
Transport and Delivery

Equipment/Packaging Heavy Wight Item

Kimura Unity oﬀers a menu of optimized solutions handling all aspects of the vehicle-related needs such as
car leasing, maintenance, insurance, sales of car, and car supply and accessories, accident prevention
consulting and driver safety service, which are all focused on after sales service markets.
For corporate customers, we have a car management service, while providing car life services for individual
customers.

S

Car Management Services (For Corporate Customers) Car Life Services (For Private Customers) Support System
With a car management service that provides
a comprehensive car management for corporate
customers, we build optimal vehicle management
system that realizes safety, quality improvement,compliance, and cost reduction.
Vehicle Procurement
Car Lease
Car Rental
Sale of Cars

From purchasing a car to insurance,
maintenance, sale, and replacement,
we oﬀer a wide range of services as alifelong partner that supports the car lifeof our customers.
Car Sales
Car PurchasePrivate Car Lease
Insurance Agency
Periodical Legal Car Inspection･
Inspection/Maintenance
Sheet Metal Repair
Car Supplies

Insurance Coverage
Issuance of Cards

Car Maintenance
Periodical Legal Car Inspection･
Inspection/Maintenance
Visiting Inspection
Sheet Metal Repair

We provide services to build
the optimal vehicle
management system for ourcustomers.
E
Call Center

Operation Center

DSS(Driver Safety Services)

Based on our past achievements of building logistics systems in Japan and overseas, we provide optimal
systems for our customers, from consulting to system development and maintenance services.

Consulting / System development

With the combined wisdom and expertiseof two businesses (logistics andautomobiles), we propose and build acomposite system that contributes tooperational eﬃciency and quality
improvement.

Maintenance Service

We provide optimal maintenanceservices to realize stable system
operation ﬁt for the customer's
operating environment.

Dispatch System Specialist

Engineers with high IT technology andlogistics know-how support consulting
and system development to solve various
problems.

As a staﬃng consultant that connects people and jobs in specialized ﬁelds, Kimura Unity proposes solutions
for securing, utilizing and training human resources while helping forward-looking company become morecompetitive.

Temporary Staﬀ Placement

We select motivated staﬀ after careful screening
and due consideration through interviews bycoordinators with the customerʼs view point. We
provide one-on-one training and education withdetailed follow-up supports. Kimura Unity wastes
no time before responding to a wide range ofcustomersʼ needs utilizing our strength of mobility
in a more proactive manner.

Job Seeker Referral Services
Our dedicated consultants
determine the needs ofcustomers and thenrecommend highly
matching jobseekers using
an eﬀective and thoroughreferral system.

S

E

S

Hiring Support Services

We contribute to theimprovement of total performance
undertaking the work of humanresources personnel that includes
such jobs as creating recruitment
advertisements and job interviews.

Kimura Unity Report 2023

5

CORPORATE INFORMATION
Trust and Responsibility throughout 140 years of history of challenges（Colorology of Key Events and Milestones in KIMURA UNITY GROUP HISTORY with its Trends in Sales）
KIMURA UNITY GROUP has grown and expanded its business ﬁelds from container equipment and products
to packaging, forwarding, vehicle maintenance, insurance, vehicle leasing, and information services.
Unit: Millions of Yen
60,00055,00050,000【March 1951】
Established KIMURA Container
Manufacturing Limited
Partnership Company

45,00040,00035,000【November 1958】
Started Vehicle MaintenanceBusiness

30,000【May 1971】
Started Information Services
Business

25,00020,00013,06915,000【March 1959】
Started Packaging and
Forwarding Businesses

10,0005,000
Fiscal YearLS

Logistics Services
物流サービス

3,292

10

31

187

724

1881

1951

1955

1960

1965

1881
FoundedContainer
Manufacturing
Business inNaka-ku, Nagoya

1951
Established KIMURA
Container
Manufacturing
Limited Partnership
Company

1881
Started Agricultural
Equipment Business

TCS

Total Car Services
自動車サービス

I S

Information Services
情報サービスSS

Staﬃng Services
人材サービス

6

6,265

Kimura Unity Report 2023

1970

1969
Separated into 8group companies

1975

1980

1973
Established
KIMURA UNITY
CO., LTD.

1959
Started Packaging and
Forwarding Business

1958
Started Car Maintenance,
Insurance Agent Business

1967
Started Traﬃc
DisasterPrevention

1973
Started Car
Leasing
Business

1971
StartedInformation
Services Business

1976
Started Car
Sales Business

1978
Started System
Development forOverseas
Operation BasesWe will continue to strive for further growth with the support of our stakeholders.
Non-Consolidated

Consolidated

57,082

59,13951,78248,021【December 2000】
Tied a business partnership withTOYOTA TSUSHO CORPORATION【May 2002】
Established an aﬃliated company,
KIMURA INC. in North America

34,730【February 1993】
Nishiki Headquarters Building
Completed

28,719【August 2018】
Established a joint venture, KOI
Distribution, LLC. in USA

24,36814,73835,39814,430【January 2005】【November 2005】
Established an aﬃliated company, Established an aﬃliated company,
Guang z hou Guangoi KIMURATIANJIN KIMURA SHINWA
SINWA STORE CO., LTD.
LOGISTICS CO., LTD.

1985

1990

1995

2000
2005
2010
2015
2020
2021
2022
2000
Tied a business partnership1990
with TOYOTA TSUSHOTrade Name2006
CORPORATION
1995
2013
2016
2021
changed to
Listed on the First Started Electric
Listed on the
Change ofChange of
2001
KIMURA UNITY
second section of Listed on the Second Section of thePower Sales
Representative
Representative
CO., LTD.
the Nagoya Stock Section of the Tokyo Tokyo and that of BusinessDirectors
Directors
1991
Exchange Market Stock Exchange arket Nagoya Stock(Change of President)(Change of President)
2014
Exchange Markets
Consolidated 8
2003
The
Nishikigroup companies
Transferred Transport Business
Headquarters acquired
to U-net Transa certiﬁcate of ISO39001
2000
Full-scale Start of 2003
NLS Business
The Toyota Plant
2001
acquired a certiﬁcate
Established a joint of ISO14001
2013
venture company
2004
Started logistics businessin Brazil
Established a
at KIMURA INC.
2002
joint-venture company Separated the transport 2018
Established a joint
Established a joint
in Mexico
division from the joint
venture company
venture company
venture company in2005
in Thailand
in USA
Thai and established an
Established two
Established anaﬃliated company aﬃliated companies in new joint venturecompany in Thailand
in North America China
2006
1994
1997
2013
2003
Merged with aStartedStarted sales
Made KIMURA subsidiary company, Made Super-Jumbo
Parking Lot
business ofCo., Ltd. a subsidiary
Leasing CO., Ltd. Kimura Leasing
business
Auto Supplies
company
a fully owned
Service Co., Ltd.
subsidiary
2005
MaintenanceManagement
1997
2014
2002
Department acquired
The Information
Logistics Planning Started
a certiﬁcate of ISO9001
Department acquired
Department of the Maintenance
The Kariya Businessa certiﬁcate of ISO27001
Information
Services
Center acquired aServices Divisioncertiﬁcate ISO14001
acquired a certiﬁcateof ISO9001
2002
Established asubsidiary company
and started staﬃng

2016
Opened Kansai andKanto business
oﬃces

Kimura Unity Report 2023

7

THE PURPOSE OF KIMURA UNITY GROUP
Kimura Unity Group has reexamined the strengths of our group to identify values
to provide for society, and has established our group purpose.

Management Philosophy

PurposeKIMURA UNITY GROUP
realizes society enrichedin Dream, Comfort andSecurity by respecting
humanity and solvingsocial issues by the values
created through people topeople linkage.

“The Company exists for thecustomers and prospers together
alongside our employees.”
Competitive Advantage
of KIMURA UNITY
１.Faith in Responsibility and Trust backed
by 140-year History of Progress

２.A bond of mutual trust between laborand management, a strong sense of unitythat grows together with employees(Build rapport and develop great relationships
with team members)

３.Continuity to face challenges sincerely
and honestly

４.Capable of handling problem-solving for
improvement and optimization, providing
creative suggestions by diverse humanresources

SOCIAL ISSUES FACING KIMURA UNITY
・Recruitment diﬃculties due to the decreased working population caused by declining
birthrates and aging population
・Advancement of DX that contributes to work style reform and productivity improvement
・Rise in labor costs due to amendments to the Temporary Staﬃng Act and rising minimum
wages
・The rapid development of e-commerce logistics due to the spread of corona and theresulting large ﬂuctuations in the amount of incoming and outgoing shipments
・Initiatives toward SDGs such as carbon neutrality and improvement of expected value forsocial contribution
・Creation of new business opportunities through the development of CASE/MaaS・Increased business opportunities due to the spread and expansion of eco-friendly vehicles
such as EVs/FCVs, and expansion of business areas that require expertise such as aiming
due to the spread of safety devices
・Shift from system of self-suﬃciency to external transfer due to the spread of cloud systems
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Kimura Unity Report 2023

Kimura Unity Group's Strengths and Purpose ― Raison D'être
Since its founding, we have consistently placed importance on “people” and “people-to-people relationships,”
and we have made every eﬀort to move forward with a strong desire to “do something about problems” andto “be of help” to all stakeholders, including customers, team members (all employees), business partners,
shareholders, and local communities. We have been doing our utmost to help all of our stakeholders. This
corporate culture will never change, and we aim to make people throughout the world happy.
Our strengths are “responsibility and trust backed by our 140-year history,” “a sense of unity that grows
together with employees based on bonds of mutual trust between labor and management,” “the ability tocontinue to sincerely address issues,” and “the ability to optimize improvements and proposals to solve
problems through a diverse workforce.” These strengths, accumulated by our forerunners, and our management
philosophy of “It takes buyerʼs view to make sales” bornfrom our strong desire to be of service to our customers,
have led to our reputation as an “indispensable company”
and “a company we are happy to entrust” among ourcustomers. We have established Kimura Unity's Purpose
based on our management philosophy, the strengths wehave cultivated. We have also considered the social issues
we faced and solved to clarify what value we can provide
to society through series of management discussions.
We are fully resolved to achieve sustainable growth as agroup with this Kimura Unity Group Purpose at the coreof our management.

EPISODE ： “IT TAKES A BUYER’S VIEW TO MAKE SALES”〔Excerpt from a story “Today makes Tomorrow” ---KIMURA UNITY CENNTENIAL HISTORY OF PROGRESS〕
We exist for the benefit of customers is the corporate DNA handed down through generations since its
foundation of KIMURA UNITY.
“Being of help with the view of customers”has always been our mindset throughout our history, we willcontinue to be of service with this basic attitude of“It takes a buyʼs view to make sales.”This happened long ago when some transport company was working on packaging “on-vehicle tools for a car” in theauto parts warehouse on the premises of a major auto sales company.
Those packaged sets were loaded on tracks for shipping to a car assembly plant in the Kanto District of the car sales
company. It took approximately 5 to 7 days to complete the whole process of all those logistic operations in thosedays. Then-President of ours was spoken to and asked by manager of the auto sales company if he was interested indoing the job by any chance. He took it as a great and challenging opportunity to be of help to customers. In no time
without hesitation, President decided to live up to the expectation of the customer.
We completed the packaging operation of on-vehicle tools by four-thirty P.M. after receiving those parts for
packaging at 1 P.M. on the same day. Following that, we immediately loaded all the sets packaged on tracks, andshipped for the assembly plant in Kanto District. The trucks ran all through the night for the destination by way of
TOKAI-DO, an arterial road, and arrived at the main entrance of the assembly plant before 9 oʼclock A.M. the nextmorning, and waited for the opening of the gate.
Upon completing the delivery of all sets of on-vehicle parts without fail, our members
cleaned up the worksite with the cleaning tools and equipment they took with them.
After conﬁrming the cleanliness of the work-site, they came back with the feelingachievement and satisfaction. It was not the speed of operation which was rated, but
the sincere attitude of our team members responding to the needs of the customer inthe most natural manners with fresh sensitivity and active intelligence.
Highly eﬃcient and impeccable performance meeting the needs of customer gained
the conﬁdence of the Auto Sales Company, which brought us many future orders as adesignated contractor for the Auto Sales Company.
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INITIATIVES FOR VALUE CREATIONIDENTIFYING MATERIALITY ISSUESThe Group have come to strongly recognizes the necessity of working on the SDGs since the beginning of
our CSR promotion, which encouraged us to declare the statement, which reads ”We will contribute to thesustainable development of society and the earth through CSR activities based on the perspective of the
Sustainable Development Goals (SDGs).”In FY 2018, we identiﬁed materiality issues yet to be clariﬁed for a better implementation of our initiatives.
This time, we evaluated the appropriateness of the materiality process, results and issues of materiality.
We had a series of discussions and considerations to review our activities at the Sustainable Committee,
which was founded in October 2021.
Six items of materiality described here are based on discussions on what social issues we are confronted
with what value we can provide from our strengths and resources for the solution. Setting 169 achievementtargets of SDGs, based on CSR and ESG guidelines (GRI standards, ISO 26000, etc.), as well as Toyota
Environmental Challenge 2050, etc., we have identiﬁed “Six Materiality Issues” that should be prioritized toaddress for the betterment of society and stakeholders.

PROCESS FOR IDENTIFYING MATERIALITY
STEP

Identifying Social Issues Surrounding Us

Based on our value creation story for realizing our purpose and international

norms such as GRI standards and ISO 26000, we comprehensively extract social

1

issues surrounding our group from the perspective of both the importance formanagement and impact on stakeholders.

STEP

Identifying Priority Social Issues

Evaluate the importance of the comprehensively identiﬁed social issues

surrounding the Group based on reference to SDGs, which is the common to2language to all of us in the world, and identify the issues that the Group willaddress through its business endeavors.

STEP

Systematizing as Important Issues (Management Materiality)

3

Priority Issues are organized and integrated from the perspective of the Groupʼsapproach in terms of management strategy, which are to be systematized into
six items as important management issues.
Six Material Issues our group address

Six material issues that our group is addressing

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MATERIALITY (Key Sustainable Issues) OF KIMURA UNITY GROUP

Materiality Management Cycle
Board of Directors
Determine Annual Policy
based on Materiality＜Roles＞

・Identifying Materiality、Setting targets
・Confirmation of progress

In response to the annual
policy, deploy the initiatives
within each business unit,
headquarters and businessdepartment.
→ Formulation of “Business
Headquarters Policy”(Formulation of “Our SDGs”)“Sustainability Committee”＜Roles＞
・Sharing the progress of each materiality
・Since materiality is not something that is immutable, we periodically give a review
considering the social trends and needs, changes in our internal environment, etc., andprovide revisions as needed.

“Subcommittees”

Chair of Materiality
Subcommittee 2:
Mr. Kinoshita, Head of LS
Headquarters

Chair of Materiality
Subcommittee 1:
Mr. Koyama, Head ofCorporate Management
Headquarters
responsible for Environment(General Administration
Department), Corporate
Governance (General
Administration Department) and
Decent Work (HR Department)

responsible for Safety and
Healths (SQ Promotion
Department), Customer Value(TCS Supervising Department)

Chair of Materiality
Subcommittee 3:
Mr. Iinaga, Head of TCS
Business Headquarters
responsible for Road
Traffic Safety (TCSSupervising Department)

Materiality Promotion
Mr. Kamata, Senior Operating Officer in charge of DX

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INITIATIVES FOR VALUE CREATION
Challenges for Materiality
Customer Value“To help materialize our customer’s success ensures our stable growth”
Upholding our principles of“Contribution to the Success of Customers,”
all Kimura Unity Group Companies leverage our expertise andknow-how which have been fostered by“Digital Technology + On-site
Capability (skills acquired and developed at worksites to work on
improvements with self-motivated actions.”In this way, we resolve
issues for customers and achieve our corporate growth.
Takeshi Kinoshita Executive Vice President, Head of LS Business Headquarters

In order to achieve management goals, we continue to promote “One Team Management with the participationof all employees,” while creating friendly corporate culture where people are considerate of other members.

We are always prepared to be of help to our customers, oﬀering supports and solutions for the materialization of
success.

Major KPI
(Acquire New (Progressive) Opportunities)

Quantitative Aspect

By solving customer problems,

・Total Amount of Sales of the Group⇒ Compared to the Medium Term Plan in FY 2023
Sales Amount (FY2030) : 120% or more・Operating Profit Ratio⇒ Operating Profit Ratio (FY2030) : 8% or more

(Improved productivity by expanding strategies, etc.)

Qualitative Aspect
12・Realization of R&D and value provision utilizing Automation, Robotization, AI, etc.
・Realization of new service development and provision of the value through the
deployment of CASE/MaaS for the next-generation in the mobility society.

Kimura Unity Report 2023

〖Customer Value〗
Logistics Services Business

The environment surrounding the logistics industry has become increasingly severe in the face of chronic labor shortages,

including a shortage of truck drivers due to the 2024 problem that will cause major damage to the transportation industry,
CO₂ reduction from an environmental perspective, and cost increases due to soaring raw material and labor costs.

The automobile industry, which is the main customer of our logistics services business, is also undergoing major changes
in the environment, such as the accelerated production of electric vehicles (EVs).

In light of these changes in the business environment, the Group aim to improve the eﬃciency of logistics operations inwarehouses based on “logistics services + IT,” as well as overall optimization involving transportation and delivery, whichis the pre- and post-process (to reduce the burden on drivers and CO₂ reduction, etc.). We will improve added value forcustomers, securing the business performance through further sales expansion. In the logistics services business, “people”

are one of the most important management resources and it is the key factor to the business continuity and development.
Creating a safe and pleasant working environment for employees is essential to ensure the high retention rate. All of us as
one team will continue to grow and respond to customers' issues and concerns from the customer's perspective.

In addition, our worksite experts on Logistic Service and sales staﬀ will work together to develop various improvement

proposals so as to meet the expectation of customers with our strength, that is operational expertise and wisdom cultivatedbased on the Toyota Production System. Furthermore, we will further strengthen collaboration with the information

services business and human resources services business, as part of our eﬀort to promote sales expansion activities in eacharea.

For the future to come, we will continue to promote sustainability initiatives, as well as advance various R&D and DX
deployments, in order to become a group that is chosen by both customers and employees.

Total Car Services BusinessWe contribute to the realization of “Dreams, Comfort and Security in the car-oriented lifestyle” by creating new value by
combining digital technology and services, while providing trinity (service, sales, and assistant) centered on our own
maintenance shop.

We provide a car management service that utilizes the system “KIBACO” (Our unique vehicle management service) to manage“people, organizations, and vehicles,” mainly for corporate customers who use vehicles nationwide. For the sake of corporate
customers and private customers located in and around the area of our servicing workshop, we provide values thatmaterialize safety and comfort as well as cost reduction through services including leasing, Insurance and others to eﬃciently
cope with problems of customers. We are always ready to be of help to meet the needs of customers. In addition, in a world
where vehicles are changing from vehicle ownership to usership, we will promote DX for “KIBACO” and strengthen our
response to “EV vehicles and next-generation vehicles” to response to more sophisticated needs.

We will contribute to address the realization of a new mobility society through MaaS and other technologies.

Information Services Business

By strengthening collaborated challenges with the logistics service business and promoting logistics DX (Deepening of IT +logistics operations), we will promote the creation of “higher quality, higher productivity, and more rewarding logistics
worksites for operators.”

With Kimura's system development capabilities cultivated through over more than half a century history, we will support ourcustomers' transformation by expanding to new customers while participating in new system development for existingcustomers.

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INITIATIVES FOR VALUE CREATIONNews & Topics FY 2023

〖Customer Value〗

Acquisition of Patent Rights with respect to “Warehousing/ShippingWork Time Management System”--Realization of operation that achieves both minimum personnel and guaranteed shipping delivery date-In March, 2023, we obtained a patent for a system that realizes optimal time management for warehousing
and shipping/receiving operations at logistics sites.
■Summary of Patent

Patent Number : 7239652

Date of Patent Right Acquisition : March 6, 2023

Title of Invention : Shipping Management Device

Development BackgroundAt logistics sites, work plans are primarily made based on past results, but it is extremely diﬃcult to carry out work asplanned as the work volume as well as and the type of work changes daily. For this reason, we deploy a larger numberof personnel on-site than needed to ensure delivery times, but this used to cause increase of logistics costs, which use
to be a long-standing issue in personnel management and delivery date control of logistics sites.

System Overview

In response to these issues, we developed this system based on the concept of realizing an operation that balances
minimum personnel that guarantees the time of delivery.
This newly developed system makes it possible to calculate optimal required time with its logic. This can be liked withthe existing system used by customers. In case where volume of work and type of work change on a daily bases, theoperation is possible due to the streamlining the movement of personnel and by the appropriate control of equipment.
Under these conditions, this system makes it possible to arrange the most suitable personnel assignment to guarantee
the time of delivery and to create a work schedule with higher accuracy than ever before.
In addition, by managing the progress in real time based on this highly accurate work plan, it has become possible tohave the required man-hours visible and to always operate with the minimum number of personnel while guaranteeing
the time of delivery.

Future Deployment

The system developed this time was produced from our accumulated experience and know-how that we have been
involved in the logistics industry for an extended period of time. Even in the current situation where there is a shortageof personnel, we can use our on-site wisdom and capabilities through this system to provide high-quality services ﬁt forour customers' needs. We address to strengthen the promotion of our DX strategy, while making full use of our strengths
in “logistics operations + IT” to further serve our customers on a deep and profound level.

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Kimura Unity Report 2023

Major Initiatives Carried Out〖Customer Value〗

Meeting Customer Needs
Eﬀorts for Disaster Mitigation through Public-Private Co-Creation
We are considering the possibility of utilizing the co-creation service called “Gyaku-Propo, or Reverse Proposal,” in which companies
present social issues of interest and local governments propose plans and ideas for solving them, to apply the knowhow we haveaccumulated over many years in the logistics industry regarding appropriate personnel allocation to environmental improvementfor disaster mitigation, such as guiding residents to evacuation sites in the event of a major disaster. We are currently cooperating
in an experimental test to build a contingency simulation system (disaster drills, etc.) that incorporates the opinions of local
governments as part of eﬀorts to co-create between the public and private sectors.

Screen image currently underdevelopment

This initiative is a disaster mitigation eﬀort that utilizes our self-developed personnel deployment
Management System [Smart Casting Board] to optimize the management of supplies and logistics,
and to visualize the evacuees at evacuation centers in the event of a disaster, as well as theconsideration given to each location by rescue workers and others.
We are committed to protecting the lives and prosperity of local residents from large-scale disasters
and contributing to the maintenance and development of a sustainable society.

★Link to Disaster Reduction Project： https://gyaku-propo.com/project/project008※What is “Gyaku-Propo” ?

“Gyaku-Propo” is a public-private “co-creation” type platform provided by SOCIAL-X, Inc.
This is an innovative system for solving social issues, in which companies propose social issues they are interested in, andlocal governments provide plans and ideas for solving them, reversing the conventional system in which the idea-giverand the idea-selector are on opposite sides.

Smart Casting Board (Appropriate Personnel Deployment Management System)

Visualization of Man-Hours
Makes It Easier to Work

Simplify personnel management, which
has become increasingly complex due
to recent changes in work styles.
And make also more effective use of
the skills of team members.
This system makes it possible to assign
tasks that match the skills of eachworker, contributing to the realizationof a rewarding workplace and thecreation of new jobs.

The number of man-hours required foreach process can be checked at a glanceon the Smart Casting Board, and thecreation of a human resource support
plan is possible with a single mouse click.
It is also easy to transfer people between
processes.

Not only can the number of man-hours
per process be checked, but also reﬂectedon the Smart Casting Board through ahealth check taken each morning when
the workers arrive at work. This allows
supervisors to immediately see the healthstatus of their members.

Initiatives to promote contributions to communities, companies, and workers throughWebsite Platform “MINNA NO BA, (or the Squire for ALL)”As part of our community engagement, we promote our initiatives to disseminate information via website in areas where the
KUC Group Companies are located. Utilizing the website service “MINNA NO BA” provided by CUUSOO Co., Ltd, we have enhanced
our services for the beneﬁt of companies and private individuals.
For issues such as “Improvement of Work Environment and Recruitment,” we address creating “Working Ease Communities andEnvironment.” Since it is not an easy case where the solution is to come by one single company, we work on together with people
and companies in communities under the key word of “Safety.”①. Contribute to the local community by matching between situation wanted people living in the community with helpwanted companies that are conducting business activities in the same community and promoting employment.
②. Contributing to creating local communities and workplaces with good a working environment.

③. Promote business matching by communicating the appeal of a company's products, services, events, etc.
Our group will continue to promote contributions to local communities including companies and workers, providing a positive
addition to building relationships with both customers and employees for their satisfaction.
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INITIATIVES FOR VALUE CREATION
Challenges for Materiality
Road Traffic Safety“Achieve a Society with No Traffic Accident”
Contribute to creating a sustainable mobility society where there is no
traffic casualty. Utilizing our advanced car management system basedon know-how we acquired through a series of traffic accident
prevention measures for over half a century, the Group will strive toprovide excellent customer services that will change human andcorporate behaviors so as to achieve a motorized society free of traffic
accidents.
Koichi Iinaga Managing Director, Head of TCS Business Headquarters

With the slogan “Providing Dreams, Comfort and Security for the car-oriented lifestyle,” our Group initiated providing
traﬃc safety and disaster prevention services in 1967 with a business organization specializing in reducing traﬃc

accidents. Since then, we have been vigorously engaged in the initiatives to contribute to a safe and secure automobile
society for our customers and local communities.

Now that the automobile society has entered a period of drastic shift of mobility trends “from Ownership to Usership,”
we began to provide “KIBACO,” a unique cloud-based vehicle management system that manages “vehicles, people,

and behavior” for the sake of customers. “KIBACO” oﬀers new high-quality services that achieve “safety and security”
at “appropriate vehicle costs.” “KIBACO” also includes a “one-point advice service with traﬃc accident prevention

videos” and “a system that provides excellent discount rates of automobile insurance for users who have achieved

speciﬁc targets for accident reduction.” We will continue to work on together with customers to eliminate accidents.
In addition, we launched the “Respect the Law 38” project in 2021 to disseminate ”Pedestrian Priority“ in accordancewith Article 38 of the Road Traﬃc Act in local communities. We also started the “100 Days Accident-Free Campaign”
in 2012 to challenge with customers to achieve 100 days without accidents. This challenge initiated with thecooperation of the police authority and industry organizations; we will further address the realization of a motorizedsociety with No Traﬃc Accidents.

Major KPI
Quantitative Aspect
Qualitative Aspect

16（Realizing a “safe and secure” motorized society through the use of “KIBACO”）

・Reduction of fatal accidents and serious injury
For the change of human and organizational behavior
Number of vehicles managed by “KIBACO”(FY 2022 Results: 38,410 units)⇒ Number of vehicles managed by “KIBACO” (FY 2030) :70,000 units

・Enhanced Efforts for Zero Traffic Accident to “Achieve a Society with No Traffic Accident”- “Respect the Law 38” (Road Traffic Law Article 38 Pedestrian Priority), Promotion of
Public Awareness Activities- Promoting “the 100-Day No-Accident Campaign”- Provision of unique traffic accident prevention activities through the “Traffic Disaster
Prevention Service (DSS)”

Kimura Unity Report 2023

〖Road Traﬃc Safety〗
Providing Service Fit for Customers

As a member of the automobile society, in 1967 when after-sales service for automobiles was still insuﬃcient, the Groupestablished a specialized organization for traﬃc accident prevention (now called Driver's Safety Service (DSS)). We have been
engaged in safety activities aimed at eradicating accidents. In addition, we have always been close to our customers andsolved their problems by operating our own maintenance shops and providing a response and support at the time of accident
and also traﬃc disaster prevention services.

Promoting business development in various positions such as vehicle leasing, vehicle maintenance, and insurance agency,

we have developed from both customer and professional perspectives based on the know-how we have cultivated throughcustomer business operations and ﬁeld operations centered on our own maintenance factories. By providing services, we willcontinue to develop services focused on “safety and security.”“ＫＩＢＡＣＯ”

Our logistics service business grew from manufacturing wooden boxes, and later on, we began to use wooden boxes for

packaging auto parts, which paved the way for the market of auto services. Entering the age of high economic growth age,
we grew to be a company that also provides information services in order to respond to the diversiﬁcation and expansionof the business structure of our customers. The current vehicle management service (CMS) was born by integrating theknow-how and strengths acquired through these business needs. And the vehicle management system “KIBACO” willcontinue to deepen with the aim of creating a ﬂexible system conﬁguration.

With “KIBACO” as a platform, we will continue to contribute to society by providing “safe and secure vehicle management”
in addition to “cost reduction,” “compliance,” and “quality improvement” for the beneﬁt of our customers.

News & Topics FY 2023
【 The Industryʼs First 】--Insured alcohol check option, collaboration
with Tokyo Marine & Nichido Co., Ltd.
In consideration of the situation where serious accidents are caused under alcohol inﬂuence, we have additionallydeveloped an “alcohol check option.” That is an insurance attached to “KIBACO,” a corporate vehicle management
system that promotes safe driving and supports corporate compliance through cloud services.
It has been materialized in collaboration with Tokyo Marine & Nichido Fire Insurance Co., Ltd.
Features of the alcohol check option
1. Enabling to structure business in accordance with regulation revisions

・Even in the case of a direct trip or return, a photo of the driver's face is sent to the administrator, making it possible
to conduct a non-face-to-face roll call.
・Roll call results are also stored on the cloud for one year in accordance with the revised regulations.

2. Compatible with all breathalyzers

・Compatible with all breathalyzers on the market.

Driver・ Register alcohol check on the spot・ Attachment function for photos taken
・ Easy reporting by smartphone

Administrator

・ Notification by email when driving under the
influence of alcohol
・ Roll call contents can be checked on the cloud・ Enabling to customize to suit your company

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INITIATIVES FOR VALUE CREATIONNews & Topics FY 2023

〖Road Traﬃc Safety〗【 The Industryʼs First 】Launch of EV car rental service that gets cheaper the more you drive
We work on the campaign “RESPECT THE LAW 38” (hereinafter referred to as Respect 38) to disseminate thephilosophy and practical actions in accordance with Article 38 of the Road Traﬃc Law to “protect pedestrians
crossing at a cross walk.”
In order to further promote this initiative, we have launched the campaign “EV rental car service, the more you
drive, it gets the cheaper” for the ﬁrst time in the industry for the beneﬁt of companies that support “Respect 38.”
Objectives:

・Eliminate traﬃc accidents at a crosswalk with increased awarenessof “Respect 38” activities.
・Contribute to the further spread of EVs with more companies toexperience electric vehicles (EV), and actively exposing EVs to society．

Major Initiatives Carried Out
Road Traﬃc Safety initiatives for Eradicating Accidents
Aiming to materialize Zero Accidents Society
INITIATIVE TO PROMOTE “RESPECT THE LAW 38” : (Short name: Respect 38)
In order to protect people in a footpath across a road, we launch the respect the law 38 project and develop the challenge topromote understanding and permeation of the “3 principles” and “8 action guidelines,” as part of initiative to disseminate thephilosophy and practical actions for Article 38 of the Road Traﬃc Act to Society.
We aim to realize a friendly society without accidents.
＜３ Principles＞/ Give Priority to Pedestrians/ Communicate that Pedestrians have priority/ Spread Pedestrian Priority＜８ Action Guidelines＞/ The driver of vehicle shall turn oﬀ the accelerator, whenseeing the ﬁrst ◇ mark/ The driver shall slow down when seeing the second ◇ mark/ The driver shall stop and give way to a pedestrian when
there is a pedestrian in and around the cross walk
/ When the driver of vehicle does not know whether there isa pedestrian or not, he or she shall proceed at the speed atwhich the vehicle can be stopped/ When overtaking a vehicle in front of you at a pedestriancrossing, stop the car/ The driver shall keep the car away from pedestrians/ Apply the brakes early to avoid being rear-ended by a vehicle
behind/ When starting, thoroughly check the surroundings such as
ped estrians※ Diamond-shaped traffic signs
painted on the road, notifythat you are approaching toa pedestrian crossing soon.

★ Special site : https://respect-38.com/

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Kimura Unity Report 2023

２. Let’s change ！

１. Let’s talk ！
We want you to empathize withthe wishes for Traffic Safety!
Let’s talk with Enthusiasm!
Within the company, thoughpromotion materials, motion
pictures ! Let’s share the earnest
desires for the realization.

Sharing the Desire and put into
Action! Recognize ◇ mark, besure to step off the accelerator.
Stop to protect and ensure thesafety of pedestrians at crossing.

This markis the trigger

Turn the Cycleof Act 38 ！
４. Let’s make a chain ！

３. Let the people know ！

The chain that makes us connectedwith business partners, family andfriends for this initiative! Throughleaflets, videos website let thepeople know our initiative for
Traffic Safety.

Heighten the Safety Awarenessthrough the Mark for changing
Behaviors. Put the mark and QR
cord in your business card fordissemination.

Major Initiatives Carried Out〖Road Traﬃc Safety〗

Safety challenges to eliminate traﬃc accidents
100-day Zero Accident Campaign
The 100 Days Zero Accident Campaign was launched in ﬁscal 2012 with the aim of being of help to corporate customers who
support us through the initiative to prevent traﬃc accidents. We aim to achieve zero accidents together with all participants,
thereby contributing to the creation of society free of traﬃc accidents.
In FY 2022, we had the 11th campaign during the period from Sept. 2nd to Dec. 10, aiming to achieve zero accidents for 100
days with the participation of companies.
In the campaign, based on the concept of eliminating accidents by changing awareness,behavior, and making the behavior a habit. One-minute danger prediction training was
conducted by motion picture as well as online seminars led by expert instructors, andtraﬃc safety goods provided. We also implemented new initiatives such as assessing thelevel of safety management systems, lending safety equipment, while holding a drawing
contest.
The appreciation ceremony held as a closing ceremony every year was canceled this time
due to the inﬂuence of the “CORVID-19,” but we were able to successfully complete thecampaign as many customers have achieved 100-day accident-free periods.

DSS (Drivers･Safety･Service)
Our Total Car Services Business provides DSS (Drivers･Safety･Service) that includes contents such as “Safe Driving Education,”“Driving Aptitude Diagnosis” and “Road Traﬃc Accident Recurrence Prevention Education” in the most appropriate manners
adjusting to the need of each customer.
Main Curriculum〔Safe Driving Education〕

・Manager ／ Supervisor Seminar
・General Employee Seminar
・New Employees Seminar〔Driving Aptitude Diagnosis〕〔Accident Recurrence Prevention Seminars〕

・Driving Character Diagnosis
・CTR Driving Aptitude Inspection(Metropolitan Police Department System)
・Visual Recognition Ability Test

・Counseling for Recurrence of Accidents
・Daily Management Advice for Superior
・Reinforcement Seminar for Recurrence
Prevention

Safety Message
For more than 40 years, we have been providing the broadcast of “Safety Message” of Aichi Prefectural Police twice in themorning and once in the evening on Tokai Radio Broadcasting.
The contents of the safety message that is broadcast are also posted on our website as “Traﬃc safety news,” calling actively
for traﬃc safety.
【 Sponsorship for Radio Message since 1978 〜 】

Radio Personality：Police Oﬃcer, Traﬃc and General Aﬀairs
Division, Aichi Prefectural Police Headquarters

Traﬃc Safety News (Excerpt from contents in FY2022)
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INITIATIVES FOR VALUE CREATION
Challenges for Materiality
Environment“Contributing to Solving Global Environmental Problems”
The Group will commit to such issues as global warming as part ofcorporate responsibilities with initiatives in the development andprovision of eco-friendly logistics materials, car maintenance servicing,etc. towards the objectives of materializing the environmental protection
such as the reduction of CO₂ and resource circulation.

Yukihiro Koyama Executive Vice President, Head of Management Headquarters

The Group has established an “Environmental Policy” in order to pass on the global environment in a better condition
to the next generation. Establishing a promotion system in accordance with the policy, we are committed toenvironmental conservation as an active member of society to prevent any incidents that may impede the progress.
We will work on environmental conservation such as CO₂ reduction and resource recycling so that our businessactivities and the services, products and merchandises we provide would not burden the global environment.

We will commit ourselves to implement environmental management in which the company, society, and the global
environment continue to exist in harmony. We will make environmentally friendly proposals (※1) to our customers.
(※1) Proposal Samples

・Reducing CO₂ by the reduced weight of product (including material weight itself) and reviewing
speciﬁcations, while cutting down on the number of transportation vehicles by improving transport
eﬃciency.
・Reducing the number of vehicles used by customers and promoting x-EV (environmentally friendly
vehicles)Major KPI
Quantitative Aspect
Qualitative Aspect

20（Strengthen efforts to reduce in-house CO₂ emissions）
Conservation of the global environment through our business activities

・Reducing CO₂ emissions（FY 2018 results : 3,710 t-CO₂）
Compared to FY2018⇒ FY 2030 :FY 2050 :50% reduction
100% reduction

・Converting to recycled materials and eliminating plastics by improving packaging
specifications for a recycling-oriented society.
・Mobility concept through zero-emission factories, provision of next-generation
mobility sharing services, etc. Contribution to (Regional Smart Initiative)

Kimura Unity Report 2023

〖Environment〗

ENVIRONMENTAL POLICYThe KIMURA UNITY GROUP have established an environmental policy and are committed tothe preservation of the global environment and to achieving this policy through its businessactivities.
１.We recognize that our group's business is deeply related to the global environment, and we will work torealize this environment preservation through our business activities.

２.We will comply with environmental laws and regulations and other requirements to which we agree, andstrive to prevent environmental pollution.
３.We will accurately assess the environmental impact of our business activities, set environmental objectives
and targets, conduct improvement activities, and engage in sustainable environmental improvement.
４.Provide education on the environment and raise awareness of environmental measures.

Climate Change Risk and Response

The Group have established a Sustainability Committee, chaired by the president in order to respond not only to physical risks
such as wind and ﬂood damage caused by climate change, but also respond to transitional risks such as various systems andbusiness environments to curb climate change. We control and promote environmental responses through the businessactivities of each division of our group.

We are promoting carbon initiatives in order to mitigate climate change with the focus on “energy saving” by promoting theswitch to equipment with high environmental performance, the use of renewable energy, raising awareness of energy

conservation during operation, side by side improving the environmental performance by renovating existing properties.

In addition to achieving the goal of keeping the increase in global average temperature to less than 2℃ above pre-industrial

levels, which was concluded in the Paris Agreement, There is also a demand for achieving net zero greenhouse gas emissions
by the end of this century.

Our Group aims to achieve “Zero CO₂ emissions by 2050.” In addition to the various business activities, we have cultivated todate, we are leveraging our ability to develop new methods, products, and services with an eye toward next-generation

automobiles. We will push forward in our eﬀorts toward the goals up to the implementation plan. Furthermore, as an interim
target for ﬁscal 2030, we have set a target of reducing CO₂ emissions by 50% compared to ﬁscal 2018. We will proceed withstep-by-steps and for the reduction of CO₂ emission.

Realization of a Recycling-oriented Society

In order to eﬀectively use limited resources and to realize a recycling-oriented society, we are eliminating and/or streamlining
packaging materials, using materials with low environmental impact, reducing the amount of product materials used, while
decreasing waste through thorough separation.

We are working on the eﬀective use of resources, such as product design that is easy to recycle and reuse.

Compliance with Laws and Regulations related to Chemical Substance Management and the Environment

In order to strengthen the management of chemical substances contained in products, we have established the “Management
Procedures for Chemical Substances Contained in Products” that stipulates management procedures for chemical substances
contained in products both domestically and overseas.

We are engaged in the implementation of chemical substance to thoroughly ensure that we do not use prohibited substancesin accordance with domestic and international prefectural police laws, related industry standards, and customer requirements.

Kimura Unity Report 2023

21

INITIATIVES FOR VALUE CREATIONNews & Topics FY 2023

〖Environment〗

Introduction of Low Carbon Equipment
We invested in replacement renewal of processing machines as a low-carbon facility.
Reasons for the Investment on Equipment
In order to respond to the need for shorter delivery of time and complex processing in small quantity, it has become
necessary to have an increased frequency of processing high-tension materials. As Kimura Unity Group publicized
the sustainability policy in “the Medium-Term Management Plan 2023,” in March 26, 2023, we have replaced withlow carbon laser processing machines in Inazawa Plant, in Inazawa City, Aichi Pref. and also in our overseas subsidiary
KIMURA, INC., in USA. By introducing new equipment, we will further improve our production technology andestablish a new mass production system to expand sales of the high-quality products that are required. Electricity
consumption will be reduced by approximately 20%, while CO₂ emissions will be expected to reduce approximately
9 tons annually. It will mitigate the environmental impact. The machinery introduced this time falls under the categoryof decarbonized equipment that meets the standards set by the Ministry of the Environment, which is a “low-carbon
facility” that has higher energy eﬃciency than the conventional type, thus providing a positive addition to the
reduction of electricity consumption.
The Group will continue to reduce energy consumption and replace with environmentally friendly, low-carbon
equipment in order to contribute to a sustainable society.
※High-tension materials mean the steel with higher strength (tensile strength) than general steel materials. As the high strength of thestructure, the durability of the product (harder to break) is increased. Since the thickness of the pipe used for each corner of a work piececan be made thinner, there are beneﬁts such as “weight reduction of the product.”Description of Equipment
Domestic (Inazawa City)
Equipment Name

Two-D Fiber Laser Processing Machine

Overseas Aﬃliated Company (South Carolina, USA)
Two-D Fiber Laser Processing Machine

海外

Start of Operation March, 2023

September, 2022

Amount of Total
Investment
Electricity
Consumption

Approx. 100 million yen

CO₂ Emissions

Approx. 5t Reduction/year(Compared to Current Equipment) Approx. 4t Reduction/year(Compared to Current Equipment)

Approx. 90 million yen

Approx. 20% Reduction(Compared to Current Equipment) Approx. 20% Reduction(Compared to Current Equipment)

Major Eﬀects of Introducing Alternative Equipment［Productivity］Capable of processing at higher speeds than current equipment (Domestic Equipment ‒ approx. 5 times faster,overseas Equipment‒approx. 7 times faster)・Shorter Production Lead Time・Improved Production Eﬃciency by Just-In-Time Production System and One-Piece-At-A-Time Production System［Cost］Cost eﬃciency enabling to process thick materials and 100% in-house production, which gives a new perspective on
in-house production and outsourcing processing costs are reduced to zero.
・Due to the introduction of new equipment, in-house production of parts has been made possible.
・Widen a scope of processing capability (e.g. Thick Sheet Metal etc.), in-house production［Environment］Reduction of Electricity Consumption

Reduced consumption of electricity in both domestic and overseas production bases by 20%, the annual reductionof CO₂ emission (by 5t in domestic and by 4t overseas respectively)

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Kimura Unity Report 2023

Major Initiatives Carried Out〖Environment〗

BUSINESS ACTIVITIES FRIENDLY TO THE ENVIRONMENT
Initiatives for Environmental Management
With the growth of world-wide interest in global environment, we are expected to develop eco-friendly business activities that
contribute to the reduction of carbon dioxide emission and the eﬀective use of natural resources, etc. In the present society
where the social value of a company is closely related with its eﬀort toward environmental measures, we have developed
company-wide activities for environmental preservation following the acquisition of ISO14001(Environmental Management
System) at the Toyota Plant and the Kariya Sales Oﬃce.
ISO14001 Acquired at

Date of Acquisition

Toyota Plant
Kariya Sales Office

August 21, 2003

Date of Expiry
August 20, 2024

September 29, 2005

September, 28 2023

Registration Number
JUSE-EG-117
JUSE-EG-244

Packaging Services Friendly to the Environment
At the packaging service division, we have been engaged in creative Kaizen eﬀorts for better packaging speciﬁcations anddimensions based on customer needs friendly to the environment. The basic concepts focused in this endeavor underpin oureﬀorts for the improvement in “packaging speciﬁcations with no use of packaging materials and/or package downsizing,”
depending on the item and also “reuse and recycle” and “use of materials with low environment impact, etc.”
In consideration of those assessment items for improvement, we would like to continue to make more concrete proposals inline with the sustainability development for the environment friendly to the earth.

■Improvement Example１: Reviewed Packaging Materials (Change of Packaging Speciﬁcations and Materials)【Before Kaizen】

Packaging operation was made for each item
individually using air caps, and placed horizontally.

【Kaizen Suggestion】

Reduction of plastic waste by changing packaging
speciﬁcations to use cardboard dividers and pads.

■Improvement Example２: Reviewed Packaging Materials (Change of Packaging Speciﬁcations and Materials)【Before Kaizen】

Positioning parts sideways, using inner separatorsand pads with poly chloride sheet【Kaizen Suggestion】

Changing packaging speciﬁcations to positioning
parts vertically by using dunnage receptacles madeof corrugated cardboard for parts acceptance will
reduce the use of pads and poly chloride sheet.

■Improvement eﬀect
・Reduced Interior Packaging Cost
・Reduction of environmental impact during on-site packing and packaging material disposal. (Reduced Waste Disposals)
Kimura Unity Report 2023

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INITIATIVES FOR VALUE CREATION
Major Initiatives Carried Out〖Environment〗

BUSINESS ACTIVITIES FRIENDLY TO THE ENVIRONMENT
Introduction of Solar Photovoltaic Generation Facilities
We promote the introduction of a Solar “Photovoltaic Generation System” to reduce environmental loads associated with ourbusiness activities.
Solar Photovoltaic generation has been in operation in our facilities at the Kamioka Logistics Warehouse, the Inuyama Plant
and the Nagoya Kita Business Oﬃce. It is our corporate social responsibility to continue to promote and disseminate“renewable energy” friendly to the environment. We actively contribute to environmental conservation.

Kamioka Logistics Warehouse

Inuyama Plant

Inazawa Plant

Nagoya Kita Business Oﬃce

Chemical Substance Management
The paints and thinners used in the painting operations for containers and ﬁxtures as well as auto servicing and mobile
maintenance work contain substances subject to notiﬁcation by PRTR Law (Pollutant Release and Transfer Register Law).
We monitor and measure the volume and quantity of emissions from our facilities into the atmosphere, etc., which is to bereport to the government.
In FY2017, we established the “Product Chemical Substance Management Procedures,” which stipulates management
procedures for chemical substances contained in products in Japan and overseas, to strengthen chemical substancemanagement at our company and related partner companies, and to ensure “non-use of prohibited substances in accordancewith relevant laws and regulations in Japan and overseas, complied with industry standards, and customer requirements.”

Guidelines for Management of Chemical Substances
Contained in ProductsManagement Procedure

Certiﬁcate of Non-Use ofProhibited Substances

Waste Reduction / Reinforcement of Managing Fuction
As activities for reducing waste, we promote thorough separationof waste, reuse of carried-in wooden pallets, and recycle of scrap
metals and waste plastic etc.
Also, in order to reduce the risk regarding industrial waste, we
reinforce our managing function of waste materials by monitoring
industrial waste operatorʼs operation as well as computerizing
management by creating database of industrial waste
management form (Manifest).

Industrial Waste Data Control Screen and Manifest Input Screen

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Kimura Unity Report 2023

〖Environment〗

BUSINESS ACTIVITIES FRIENDLY TO THE ENVIRONMENT
Environmental Conservation Initiatives
We pursue environmental initiatives to reduce energy consumption required of business activities to minimize theadverse eﬀect on global warming.

【 Energy Consumption in FY2022 in accordance with Energy Saving Act 】

Electricity 5,919,791 kwh

ＣＯ２ Emission

Gas

230 t（in LPG Gas Unit）

Gasoline/ Light Oil/ Kerosene

3,014 t-CO2

11,307 ℓ

CO２ Discharge Amount (Adjusted Value)（Unit： ｔ-CO2 ）5,000

We continue to work on the reduction of CO₂ emission by actively
promoting energy saving activities such as replacing the existing facilities
equipment into energy saving type.

4,000

3,472

3,359

3,130

3,014

2019

2020

2021

FY2022

3,000
2,000
1,000

◇ In regard to CO₂ Emission coeﬃcient, we apply the publicized value adjusted
in accordance with “Act on Promotion of Global Warming Countermeasures.”

Output of Industrial Waste

1,864 t0

Amount Industrial Waste Discharged（Unit： ｔ ）

3,000

2,200

Although the amount of output has been increasing due to the expansionof our facilities, we continue to promote recycling and re-use of wooden
pallets and scrap metals so as to reduce industrial waste output.

2,000

1,988

1,864

2021

FY2022

1,440
1,000

0

2019

2020

山路を登りながら◇ “Factories, etc.” (a person who establishes a factory or oﬃce or other business establishment) as deﬁned by the Act on the Rational Use of Energy
is a target business ﬁeld. However, “Transportation” is not applicable.
◇ As stipulated by the Act on the Rational Use of Energy, energy (electricity, heat, and fuel) used by the entire business (head oﬃce, plants, branches,sales oﬃces, stores, etc.) is subject to management, and energy (※1) used outside our oﬃces, such as sales vehicles, is not included above.
(※1) is not included because it is not within the scope of the report. However, energy used outside of our oﬃces is strictly controlled and we are
striving to reduce the consumption.

“Energy used outside our oﬃces” shown in (※1) above．．．．． Gasoline, diesel fuel309,022 ℓ

Kimura Unity Report 2023

25

INITIATIVES FOR VALUE CREATION
Challenges for Materiality
Decent Work (Job Satisfaction)“For Everyone to Shine”
The Group will strive to create a rewarding work environment where all people grow andmake a challenge, sharing the management principles, while promoting“Total Participation
with All People as One Team.”
Yukihiro Koyama Executive Vice President, Head of Management Headquarters

Towards the material issue of “making every human resource into a brilliant human resource,” the Group will create

an environment in which all people who share the management philosophy, “The Company exists for the customers
and prospers together alongside our employees” and work together can grow and take on challenges by promoting“One-Team management by Total Participation.” In addition, as part of our eﬀorts to promote “Diversity and Inclusion,”
we have established a policy of “Respect for human rights” based on Clause 3 of the Kimura Unity Group Corporate

Ethics Code, “Respect the personality and individuality of employees, and realize a work environment full of autonomy

and creativity.” At the same time as promoting the creation of a workplace culture in which employees are encouraged,
we will promote the acceptance of diverse human resources, including the active participation of women, and thecreation of an environment in which they can thrive.

Major KPI
Quantitative Aspect（Promotion of Diverse Human Resources）
・We will create an environment and corporate culture where all employees can work
worthwhile every day with a sense of purpose.

※ ”Work Satisfaction Index“ based on survey results by self-declaration Index
out of 5 points(Survey Target): Full-time employees
FY 2022 results 3.5 points⇨

FY 2030 results 4.5 points or more

Qualitative
Aspect・Develop the system to enhance and strengthen where the voices of people are widelylistened for the improvement in regard to human rights and job satisfaction that leads
to the creation of the most worthwhile workplace.

Work Satisfaction

Our group's greatest asset is our people, and we are committed to providing reliable services through the power of people

who can listen to our customers' concerns sincerely, and provide reliable services with a strong desire to solve and help ourcustomers, building up relationships of trust with our customers.

As a corporate group that value “people,” our greatest asset, we aim to help all employees who work with us to realize fulﬁlling
lives that are rewarding, and create new value to our company. This is the way to nurture people based on our management

philosophy, creating true competitiveness for our survival. To this end, we aim to foster an organizational culture based on ourmanagement philosophy and further strengthen our management foundation, with the goal of “making any human resources
shine through a worthwhile job” as one of our sustainability goals.

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Kimura Unity Report 2023

〖Decent Work〗In this day and age where the future is so uncertain with no role models, we need to leverage our strengths to the fullest

extent for the promotion of organizational power to be even stronger so as to continue to advance value creation eﬀorts forthe beneﬁt of our customers and society. To this end, we will work to create a rewarding work environment, side by sideworking to “strengthen recruitment and retention.”

We need to “train and educate human resources centered on leaders,” “further strengthening on-site capabilities.” We alsoneed to pursue the sense of satisfaction and contribution of all employees with non-regular employees included. While also
working to improve the satisfaction of customers. Thereby pursuing the excellence with all team members as ONE Team to
respond to customer problems.

Advancing Diversity and an Inclusive Society

Our group promote the cultivation of a corporate organization and enhancement of systems that enable continued growthby leveraging the diversity of each employee's individuality, regardless of nationality, gender, age, handicap, experience,

background, life stage, etc. As a concrete initiative, we focus on creating a system in which women can play an active role,“providing opportunities for female workers in their professional lives” and “creating an employment environment, which will
be conducive to balancing work and family life.”

We have formulated an action plan based on the Act on Promotion of Women's Participation and Advancement in the

Workplace (in accordance with Act on the Promotion of Women's Active Engagement in Professional Life) , and are working
towards its realization. In addition, when promoting core human resources such as managers, we evaluate the abilities andachievements of individuals fairly and equitably to promote them regardless of whether they are women or mid-career

employees. We are also working to create an environment where personnel with diverse backgrounds, such as local employees,
can play an active role in executives at overseas subsidiaries.

Promoting “Respect for Diversity,” we will continue to create an open workplace where frank and candid discussions are madeaccepting diverse values. We will actively work on diversity management so that each employee can enthusiastically take onchallenges and lead a fulﬁlling life.

Creating a system where each employee views management issues as their own and can take on challenges

We will continue to create an organizational culture that honors people who take on the challenge of tackling diﬃcult issues

as their own, and keep on the challenges even when they should fail. We will keep up to enhance the system that encourages
unending eﬀorts. Globalization, innovation, DX, etc. are all important management issues for our company. If we leave these
big words unaddressed, we will never ﬁnd a solution.

It is only when each member takes each issue as his or her own, people can put it into action, taking on challenges by pulling

far-reaching issues into familiar themes. By continuing to support such unﬂagging eﬀorts of each and every member, we aim tobecome a company where all employees feel excited and continue to advance towards the realization of a dream corporation.

Strengthen Promotion of DX (Digital Transformation)

We are strongly accelerating to promote DX toward “normal evolution” as stated in our company policy. We place particularemphasis on X (transformation). That is to say, changing the way to think and work, and will actively use D (digital) as a means

to an end. In this initiative, each division works closely with the information services business at its core, and strongly promotes
X to accurately grasp customer needs. The aim is nurture “Gemba personnel versed in systems” and/or “Gemba personnel
versed in systems to produce outputs,” which will strengthen the strategies of each business.

Concept on Human Resource Development

Considering the enhancement of human capital to be one of the important issues for our management foundation, we focus
on developing human resources to support our corporate growth strategy. We provide a variety of growth opportunities foreach and every employee to grow to be core human resource and professional who can play an active role globally.

The Company also conducts a variety of education and training programs including leadership training and self-participationtype seminars. In addition, a self-development supplementary learning system is available.

All those programs are designed for everyone to share a sense of accomplishment at each level of acquisition, which
encourages people to challenge for yet another big step forward.

Kimura Unity Report 2023

27

INITIATIVES FOR VALUE CREATION
Major Initiatives Carried Out〖Decent Work〗INITIATIVES TO PROMOTE DIVERSITY & INCLUSION
Respecting for diversity and creativity of all employees, we promote the initiatives to create work environment where diverse
human resources play an active role.

Promorting Female Employees Participation in TheHE Workplace
Our Initiatives for Promoting Work-Life Balance and Creating
Environment for Child Care and Family Care were evaluatedby Aichi Prefectural Government, which earned us “a certiﬁcateof recognition as an Excellent Company of Aichi where
Women Shine.” We were also recognized by Nagoya City
Government as an “Excellent Company in Promoting Womenʼs
Role in the Workplace.”
We continue to improve and settle an environment to promotewomenʼs participation vigorously in the workplace, and expand
it to an even larger extent.

Certiﬁcate issued as a leading
company where women shine
by Aichi Prefectural Government

Certiﬁcate issued as being “anexcellent corporation to promote
female employee participation in
the workplace” by Nagoya City
Government

Employment of the Disabled
Fiscal Year

2018

2019

2020

2021

2022

Legal Employment Rate for the disabled

2.00%

1.89%

1.94%

2.12%

2.00%

Due to business expansion, etc., the number of employees ﬂuctuates greatly during the period, and the average employment rate forpeople with disabilities has been sluggish. We continue to work on active employment by strengthening regular recruitment while
increasing the number of model workplaces that have improved the environment.

Continued Employment System (Work System After 60 Years of Age)
Fiscal Year

2018

2019

2020

2021

2022

Number of rehired employees

31

32

21

30

22

In line with the enforcement of the Act on Stabilization of Employment of Elderly Persons, we will continue to actively promote there-employment of elderly employees and provide opportunities for them to play an active role.

Child Care and Family Care Leave and Flexible Work System
2018

Fiscal Year
Sex

2019

2020

2021

Male

FemaleMale

FemaleMale

FemaleMale

2022

Female Male

FemaleNumber of people taking childcare leave

0

16

0

7

3

19

3

9

10

11

Number of employees who used reduced
working hours for childcare

0

9

0

10

0

9

0

10

0

12

Nursing care leave users

0

1

1

4

1

0

1

3

0

1

Number of people using reduced working
hours for nursing care

0

0

0

0

0

0

0

0

0

1

In order to support employees' work-life balance, we have introduced a childcare/nursing care system and a short-time work system.

Acquisition of Paid Leave
Fiscal Year

2018

2019

2020

2021

2022

Acquisition Rate of Paid Leave

71.7%

68.9%

71.0%

74.0%

72.0%

We promote systematic acquisition of annual paid leave.

We continue to actively promote initiatives to improve the rate of taking paid leave with labor-management cooperation.

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Kimura Unity Report 2023

〖Decent Work〗

Enhancing education and training systems
Feeling a sense of achievement and satisfaction, each member grows to be capable personnel member playing an activerole in a global arena. Education and training are prepared for each job category as well as classiﬁcation to acquire

professional skill and knowledge. Respecting self-motivated personnel development, we have a variety of correspondence
education courses readied for our members in accordance with the objective, career and job function.
Education and training system diagram

Sample of Seminar Material

Education and Training Tailored to Individual Skills
The purpose of human resource development is “to enable employees to acquire
the working knowledge and skills necessary to perform their duties,

improve their own abilities, and meet the needs of customers and employees.”※Education and Training are conducted based on the following policy.

(1) Nurture team members to be resourceful to survive in this era of ﬁerce
competition.

(2) Implement education and training systematically and continuously basedon the organized education system.

(3) Revitalize the organization by reforming the corporate culture to a rewarding
workplace where people learn from each other.
(4) Support employee job satisfaction and individual career-building eﬀorts.

(5) Implement education and training in close coordination with other humanresources development systems.

Implementation of forklift skills training
With permission and approval from the Aichi Labor Bureau, we have established
an indoor all-weather forklift training center, where we conduct not only

in-house training but also forklift skill training for the general public outside thecompany.

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29

INITIATIVES FOR VALUE CREATION
Challenges for Materiality
Safety and Health“Ensure a Healthy and Safe Work Environment”
With all people from top management to front line workers sharing the same principles insafety, the Group will promote implementation of mutually enlightening and safety-oriented
corporate culture to evolve and disseminate in every corner of the workplace with theemphasis on “the development of human resources, work style as well as our work
environment.” We commit to protecting and enhancing the physical and mental health of
all members.
Takeshi Kinoshita Executive Vice President, Head of LS Business Headquarters

Under the Safety and Health Policy, the Group positions occupational safety and health initiatives as the mostimportant management issue, and gives priority to ensuring the safety and health of all employees.

１. We will establish in-house standards as needed in addition to complying with laws and regulations related
to occupational safety and health, and strive to improve the level of management.
２. We will identify hazards and harmful factors in the workplace and to reduce those risks.

３. We will operate the occupational safety and health management system without fail and strive to improvesafety and health through continuous improvement.
４. We will strive to improve safety knowledge and raise the awareness through the education and training
necessary to ensure occupational safety and health.
５. We will maintain good communication with all employees and carry out occupational safety and healthactivities with the participation of all employees.
Based on the above ﬁve action guidelines, we aim for zero accidents.

Major KPI
（Raising safety awareness among all company employees and creating a safer workplace）

Quantitative Aspect

・Total Accident Frequency Rate （FY2022 results 0.58）⇒ FY2030 Frequency Rate:

0.3 or less・Number of lost-time accidents (FY2022 result : 1 Case)⇒ FY2030 Number of Case:

Zero case（Deepening Health Awareness of All Employees and Creating a Pleasant Work Environment）
・Health checkup re-examination follow-up rate （FY2022 results 82.5%）⇒ FY2030 :100 %※Complete Medical Check-up included

Qualitative Aspect
30

・Achieved zero occupational accidents by collecting opinions from workers,
continuous improvements and thorough prevention activities through top
management inspections.

Kimura Unity Report 2023

〖Safety and Health〗
Promotion of Safety and Health Activities

Based on the idea that “safety and health, quality, and compliance are the most important prerequisites for a company's

survival,” the people involved in the worksites and top management work together to promote safety and health activities.
Initiatives for Safety and Health are the foundation of corporate activities, which we consider as one of the most important

issues. We strive to maintain and improve the mental and physical health of all the people we work with, striving to create apeople-friendly, safe, and secure work environment.

・Regarding the safety activities for the operation sites, we have SQ (Safety and Quality) Promotion Department responsible
for the promotion of safety and quality within our group. Staﬀ members of SQ Promotion Department actually enter andsee the actual operation site ﬁrst hand and gather primary information on “working diﬃculty and potentially dangerous
work, etc.” from workers, and get informed of troubles of operation-sites while doing the work themselves, which will be
feedback for accident prevention activities. We are promoting activities aimed at achieving zero occupational incidents.

・In the event of a disaster or property damage at a work site, we hold a countermeasures meeting with people at on-site toprevent recurrence. In cases where there is a good countermeasure, we share the measures and knowhow group-wide asa lateral deployment to further enhance the safety.

・In addition, SQ Promotion Department conducts a “safety and health awareness survey” twice a year targeting all membersof the group, and the results are feedback to improve actions and behavior, not to say Safety awareness and mindset for
the realization of yet higher safety.
・For the interest of partner companies, we conduct a “safety level survey” every year, and share the survey results. That ispart of our joint eﬀorts with partner companies to further improve the level of safety awareness.

・In order to create a healthy workplace, we strive to improve the environment where it is easy for our team members towork in. We have health checks at the time of clock-in and clock-out, while encouraging to report injuries or poor health tosuperiors. In addition, we implement heat countermeasures on-site so that employees can work with vigor and a healthy
body and mind. We are always working on improving the working environment.
・In order to provide systematic and continuous care for mental health, and to enable each and every employee to lead ahealthy and lively social life, we have opened a “Mental Health Consultation Desk” since FY2009, with our sincere hope tohelp ease the Mental burden of each employee even a little. We also work to prevent mental health issues by having

counselors and mental health staﬀ regularly visit workplaces to understand employees' true feelings and report them to top
management. Furthermore, we have mental health training aimed at improving self-care and care by managers andsupervisors, and create regular information pages in the company newsletter by councilor.

Major Initiatives Carried Out
Create Safer Working Environment
We will further strengthen the importance of awareness in safety and health promotion through nurturing law-abiding personnel
and create more worthwhile workplaces where employees can work more safely and healthy conditions, mutually enlightening
orientation in safety. We will foster our corporate culture where all people from the top all way to the front-line operators sharethe same principles in safety and health.

Continued Implementation of Workplace Health and Safety Survey
We continuously conduct an awareness survey of all employees(including part-time employees and partner employees) on itemsof safety perception culture such as awareness of compliance withsafety rules, correct disaster reporting, awareness of walking safety,
and health promotion. In addition to raising safety awareness, we
aim to cultivate an open workplace culture where people havehonest, expressive communication. We have introduced this survey
to our overseas subsidiary companies such as TKSL in China and
KI in North America since FY 2012. We are promoting initiatives
throughout the Group.

Result of the 20th Awareness Survey

Survey Target: All people working in the Kimura Unity Group№ of Respondents: 4,753 people (Valid Answer: 4,743 people(99%) 4,350 people of Japan, 393 people of Overseas)
Survey Period: July 25, 2022 〜 August 30, 2022
Question Content:
1. Culture and Awareness of Observing Safety Rules
2. Correct disaster reporting status
3. Status of walking accident prevention
4. Health Promotion
Level of Awareness: 84.1 %Level of Compliance: 90.2 %Last Survey (83.9%)
Last Survey (89.1%)

Kimura Unity Report 2023

31

INITIATIVES FOR VALUE CREATION
Major Initiatives Carried Out〖Safety and Health〗

CREATING A SAFE WORKPLACE
Maintaining a Safe Workplace through Inspections by SQ Promotion Headquarters Manager
and Ensuring of Same
From the perspective of top management, led by the General Manager of the SQ Promotion Division, we will conﬁrm
examples of improvements in various workplace activities onsite and in person, and continue to follow up on feedback
from the workplace, leading to the strengthening of cheerful and energetic workplace capabilities. In addition, with theaim of raising awareness of safety, health, compliance, quality, productivity (cost reduction), directors and executiveoﬃcers also carry out on-site inspections, regular and continuous inspection activities.
We are also actively developing safety activities together with our customers side by side.

Head of SQ Headquarters on site for Inspection

Rate of lost-worktime injuries

Severity rate

（Severity rate: Seriousness of disaster）（Frequency rate: Disaster occurrence rate）
2.5

2.09

0.15

2.06

2.0

0.09

0.10

1.5
1.0

0.231

0.5

0.05

0.018

0.231

0.09

0.002

0.00

0.0
2018

2019

2020

2021

FY2022

2018

2019

2020

2021

FY2022※The values of “Rate of lost-worktime injuries” and “Severity rate” for overall industry are based on the researchby the Health, Labor and Welfare Ministry.

Number of disaster requiring down time in 2022: 2 cases (In 2021: 2 cases) It remains at the same level as the previous year.
consequently, holiday frequency rate is 0.231 (In 2021: 0.231) With intensity rate of 0.002 (In 2021: 0.018) and the severityof the disaster is slightly lower.

We strive to achieve “Zero Accident” at all workplaces by cause analysis to clarify the problems so as to prevent accidents
while making an eﬀort to prevent recurrence of disaster.

Initiatives for Improving Safety
Safety evaluation by item (out of 100 points)
FY2020
FY2021
FY2022

Traﬃc Safety

100
90
80

Total Score
Safety System

70
60
50

Labor Measures

Medical Check-up

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Kimura Unity Report 2023

SafetyAwareness

Safety Education

We continue to conduct an annual “Safety Level Survey” against
business partners. The result is fed back for achieving yet higher
level of safety.
In FY 2022, 95 companies were inquired into in the survey on
Safety, which resulted the overall average score of 87 points(out of 100 points), the same level as last year, and the safetylevel is maintained at a high level.
We continue to make further eﬀorts to attain a higher goal byproviding a follow-up measure periodically.

〖Safety and Health〗

CREATING A HEALTHY WORKPLACE
Employee Health Management and Improvement of Work Environment
We have introduced the following systems to “improve employee healthmanagement and the work environment” so that employees can work vigorously
and soundly both mentally and physically.
- Nurses visit workplaces to conduct health checkups- Conducting face-to-face meetings with industrial physicians for employees
who work long hours- Mental health activities include starting of the “Mental Health Consultation
Service” and conducting mental health seminar, etc.

Mental health seminar sceneCounseling and Mental Health Care

We believe that the most important thing is to systematically and continuously take care of company membersʼ
mental health so that each employee can lead a healthy and lively company life.
In FY 2009, the Group established a section to provide counseling and mental health consultation to improve thework environment where members can get oﬀ negative thoughts, anxiety, worries and anger so that they canremove the burden oﬀ the chest.

We also have a counselor page in our company
newsletter, to send out various information about
mental health care.

Article about mental health runs in a series of in-housenewsletters(Excerpt from the Company Newsletter 2022)

Activities for disease prevention and health promotion
In addition to ongoing activities, we are also working on new activities, such as promoting health through worksite
exercises to prevent diseases and promote health, besides activities to reduce smoking rates.
Health promotion activities “Deliver a newsletter”

Worksite Exercise

Exercise Scene

We implement “workplace exercise” with the participation of
all employees by distributing radio exercise CDs and DVD forstretching as needed.
Kimura Unity Report 2023

33

INITIATIVES FOR VALUE CREATION
Challenges for Materiality
Corporate Governance“Fair and Sound Business Practice”
The Group will continue to be the best partner for stakeholders by avoiding risks andpreventing misconduct and irregularities.
Through our compliance procedures. The Group also commit to strengthening our risk
management, maintaining an open and highly transparent management policy.
Yukihiro Koyama Executive Vice President, Head of Management Headquarters

Corporate governance is the cornerstone of business activities. In order to conduct fair and transparent management,
companies required to continue to improve their governance mechanisms, and governance organizations need to
predict and take measures from a medium-to long-term perspective to various ever-changing global risks andopportunities. To this end, it is essential to listen to stakeholders to understand their wide range of expectations.

Strengthening governance is one of the important issues for companies, and in order to become a company that istrusted by various stakeholders, it is necessary to establish a corporate governance system that ensures transparency
and discipline. The Company has been implementing initiatives to strengthen governance by monitoring internal
control with enhanced risk management systems, while reinforcing the linkage between the Nomination andCompensation Committee and the Board of Directors.

We will continue to work to strengthen governance for further enhancement of eﬀectiveness of the Board of Directors
by increasing its independence and diversity.

Major KPI
Quantitative Aspect
Qualitative Aspect

34（Establishing and Maintaining an Optimal Governance System）

・Compliance with each principle of revised corporate governance⇒ Compliance rate for each principle ︓ 100%・Thorough implementation of corrections for priority risks and matters pointed
out to improve⇒ Critical Deficiency : None

Correction of minor deficiencies ︓ 100%・Materializing functional enhancement by conducting effectiveness evaluations on
the board of directors and audit functions, and implementing improvement
measures based on the evaluation results

Kimura Unity Report 2023

〖Governance〗
Compliance with the Corporate Governance CodeWe monitor all items of the Corporate Governance Code at least once a year to conﬁrm our compliance status with the
Corporate Governance Code.

Strengthening Corporate GovernanceThe corporate governance system has a hybrid intuitional design that combines management and monitoring functionsorganized by a nomination committee and a compensation committee in a company with a board of corporate auditors.
The Company's Board of Directors makes important business decisions. We place the importance on high-quality

decision-making by leveraging the knowledge and expertise of outside directors and outside corporate auditors. The

Nomination and Compensation Committee, established to strengthen the supervisory function of the Board of Directors,
has outside members as the majority, and the chairperson is also selected from outside the company.

At this point, we believe that the current system is optimal as it emphasizes management functions while also ensuring

monitoring functions, as the Company has been working to strengthen corporate governance. From the perspective of further

strengthening our monitoring functions, we are continually considering the optimal structure, including organizational design,
the ratio of outside directors, the appointment of international directors, and increasing the ratio of female oﬃcers. The skills
and experience possessed by our directors and auditors are indicated in the skill matrix below.

We will respond to ever changing diversiﬁed business environment by the board of directors with expertise and extensive
experience of world excellence.

SKILL MATRIX OF DIRECTORS (Specialty and professional experiences of Directors and Audit & Supervisory Board Members)➀

Job Tile Classiﬁ-ca�onInternal
Director➁➂
Industrial/
Corporate
Knowledge/ Sales/
Management(Engineering/ Marke�ng
Produc)Name
Yukio Kimura○○

Shigehiro Naruse○○

Takeshi Kinoshita○○

Yukihiro Koyama○

Koichi Iinaga○○

Tadaaki Kimura○○

Yoshinori Hirano○

Outside Jun Eyama

Internal
Auditor○Eriko Suzuki Schweisgut○

Shin Yoshimura

○

④

⑤

Finance/
Accounts⑦

IT/DX

Overseas
Experience

○

⑧
Human
Resources
andLabor Aﬀairs

○
○

○

○

○
○

○

○
○

○
○

○

○
○

○

○
○

○
○

Hisashi Horiguchi○○

Outside Chikai Onoda○

Chieko Murata○

Division/Function

Legal
Aﬀairs➅Requirements➀ Corporate Management

Vast experience of management and achievement to realize sustainable growth strategies.

➁ Industrial/Knowledge/(Engineering/Production)

Industrial (and Production) Engineering Knowledge and experience in the ﬁeld of production (with build-in quality
expertise) and industrial engineering to carry out continuous improvement. Ensuring Safety, Security, andThorough Compliance are the key factors a company's survival.

➂ Sales/Marketing

Solid knowledge and experience in understanding customer needs as essential requirements for sustainablegrowth.

➃ Finance/Accounts

Solid knowledge and experience in the ﬁnance and accounting ﬁeld; as we build a strong ﬁnancial foundation andformulate ﬁnancial strategies that promote growth investments to continuously improve corporate value andstrengthen shareholder returns in addition to accurate ﬁnancial reporting,➄ Legal Aﬀairs

Required solid knowledge and experience in the areas of corporate governance, risk management, andcompliance. Establishing an appropriate governance system is the foundation for sustainable improvement ofcorporate value, and it is essential to improve the eﬀectiveness of management supervision by the board of
directors.

➅ IT/DX

Knowledge and experience required of for further development. Corporate innovation through IT and DX isessential for future corporate growth.

➆ Overseas Experience

In order to formulate growth strategies and supervise management of international business, it is necessary tohave extensive knowledge and experience in overseas business management as well as international life, culture
and business environment.

➇ Human Resources andLabor Aﬀairs

In order to develop our business, it is necessary to formulate a human resources strategy that allows each
employee to maximize their abilities. Solid knowledge and experience in the ﬁeld of human resource development,
including promoting diversity is essential.

Kimura Unity Report 2023

35

INITIATIVES FOR VALUE CREATION〖Governance〗

CORPORATE GOVERNANCE

Board of Directors and Auditors
Chairperson of theBoard and
Representative
Director
Yukio Kimura

President andRepresentative
Director
Shigehiro NaruseOutsideOutsideDirector
Director
Yoshinori Hirano Jun Eyama

Title

Chairperson of the Board andRepresentative Director〔 As of July 1, 2023 〕
Executive Vice
President
Takeshi Kinoshita

OutsideDirector
Eriko Suzuki
Schweisgut

Executive Vice
President
Yukihiro Koyama

Standing
Statutory
AuditorShin Yoshimura

Name

OutsideOutsideCompany
Company
Auditor
AuditorHisashi Horiguchi Chikai Onoda

In charge of production, safety and quality of the group/ Head of LS Business Headquarters /Takeshi Kinoshita Head of SQ Promotion Headquarters and IS Business

Executive Vice President

Yukihiro Koyama
Koichi Iinaga
Tadaaki Kimura（※2）
Head of Administration Headquarters/ Head of Administration Dept. in charge of Planning andPromotion, responsible for promoting female employeesʼ initiative and active participation in theworkplace/ Managing Director of Kimura Unity Corporate Pension Fund/ CEO of KIMURA INC.
Head of TCS Business Headquarters/ In charge of Business Headquarters, and TCS Supervising Dept.
（※2）
CEO of Addlight Inc.

Outside Director（※1） Yoshinori Hirano Certiﬁed Public Accountant

Outside Director（※1）

Outside Director（※1）

Standing Statutory Auditor

OutsideCompany
Auditor
Chieko Murata

Role/ Responsibility/ Concurrently Held Principal Position

Executive Vice President

Director

Director
Tadaaki Kimura

Yukio Kimura

President and Representative Shigehiro Naruse
Director

Managing Director

Managing
Director
Koichi Iinaga

Jun Eyama

Eriko Suzuki
Schweisgut

CEO of Global Parts・Logistics Headquarters of Toyota Tsusho Co., Ltd.
CEO and Founder of Kind Capital Co., Ltd.

Shin Yoshimura

Outside Company（※1） Hisashi Horiguchi
AuditorOutside Company（※1） Chikai Onoda
AuditorOutside Company（※1） Chieko Murata
Auditor（※1）Independent Oﬃcer

Attorney at Law
Certiﬁed Public Accountant/ Licensed Tax Accountant
Licensed Tax Accountant（※2）

LS ：Logistics Services
IS ：Information Services

SQ ：Safety & Quality
TCS ：Total Car Services

Corporate Governance System
We maximize values for corporations “group,” stockholders and customers by swift and accurate information gathering, andprompt and rational decision-making. With the application of the Corporate Governance Code due to the enforcement ofrevised listing regulations, we are conducting disclosure based on each principle and are considering further enhancementof initiatives.

Board of Directors

Regular meetings of the Board of Directors are held once a month, and as required, a board meeting is held to supervise
and monitor decision-making on management strategy and performance of duties.

Outside Directors

We have two outside directors out of the eight directors to supervise the Company's business execution with a high levelof insight into management. Appointing outside directors, we strive to ensure the transparency of the Board of Directors
and mutual management supervision between directors, and a thorough implementation of compliance.

36

Kimura Unity Report 2023

〖Governance〗
Companywide Executive Oﬃcers Meeting/Business Headquarters Meeting
With the aim of speeding up decision-making, strengthening the supervisory system and reenforcing business execution,
the Company introduced an executive oﬃcer system in June 1999. The Company has also established a company-wide
executive oﬃcers' meeting, which consists of executive oﬃcers as well as directors. In addition, a business headquarters
meeting organized by directors, executive oﬃcers and executive members was founded to supervise to supervise
management and monitor the status of business execution.

Board of Auditors / Audit Oﬃce / Audit Firm
We have elected three outside corporate auditors in addition to one managing corporate auditor from our company toensure thorough supervision of the execution of duties and to enhance auditing. We strive to improve the eﬀectivenessof corporate governance by holding regular audit meetings of three parties, including Corporate Auditor, Audit Oﬃce,
and Auditing Firm so as to exchange information on the status of audits from each standpoint.

Corporate Governance System

For Increased Eﬀectiveness of Board of Directors

We implement eﬀectiveness evaluations of the Board of Directors with the goal of maintaining and enhancing the eﬀectivenessof the Board of Directors once a year. In order to ensure that the evaluation reﬂects the opinions of everyone participating in

the Board of Directors, we conduct a survey of all Directors and Auditors regarding the operation and functioning of the Boardof Directors and the results are reported to the board of directors to leverage the ﬁndings for a further improvement of ourmanagement.

Securing Risk Management System

In accordance with the “Risk Management Regulations,” we conduct risk management by holding regular risk management

committee meetings to investigate and evaluate risks, formulate countermeasures, and check the status of countermeasuresfor each department and division.

In addition to developing and thoroughly disseminating BCP (Business Continuity Plan), we conduct BCP-related training suchas safety conﬁrmation drills, evacuation drills, and communication training using satellite mobile phones.

In addition, in light of the recent occurrence of cyber security incidents, we will promote measures to strengthen security morestrongly than ever, by establishing internal rules, educating employees, and installing various defense systems.

Kimura Unity Report 2023

37

INITIATIVES FOR VALUE CREATION
Major Initiatives Carried Out〖Governance〗〖ガバナンス〗COMPLIANCE AND RISK MANAGEMENT
ComplianceInternal Control System
Internal Control Activities
In order to implement the Management Philosophy, the Code of Corporate Ethics, and corporate governance, the Group
formulated the “Basic Policy on the Internal Control System.” On that solid foundation, we have established and practiced
an internal control system with the main objectives of “Enabling and Improving the Eﬃciency of Operations,” “ensuring the
Reliability of Financial Reporting,” “Party Compliance with Laws and Regulations Concerning Business Activities,” and“Preservation of Assets.”

Internal Auditing Activities
The Group conducts risk assessments of companies and business processes on a consolidated basis. In addition, we selecttargets after considering comprehensiveness and risk reduction, and conduct internal audits for the purpose of ensuring
the reliability of existing reports, improving the eﬀectiveness and eﬃciency of operations, and complying with laws,
regulations, internal rules, etc. related to corporate activities.
Main Audit Activities Implemented in FY 2022
・Company-wide Control, IT (Information Technology) Control, Business Process Audits :〔 53 Bases 〕

・Subsidiary Audits : Business People CO., LTD. Super Jumbo CO., LTD. KIMURA, INC., TIANJIN KIMURA SHINWALOGISTICS CO., LTD. Guanzhou Guanqi KIMURA SINWA Store CO., LTD.
・Daily Audits :〔 58 Bases 〕,Speciﬁc Business Audits〔 4 Bases 〕

Thorough Implementation of ComplianceIn the midst of drastic changes in the environment surrounding our company, such as the development of corporate
globalization and the diversiﬁcation of deregulation by the government, we recognize that compliance with laws andregulations and thorough corporate ethics are the foundation of our corporate activities. Compliance seminar for
executives and individual training materials conducted on-site ensure unity of intent and compliance with laws andregulations within the Group.
In addition to striving to improve knowledge and awareness in order to prevent harassment and various labor issues
from occurring, we will continue to disclose information through “Compliance Support Mail” and “Personnel and Labor
Relation Mail,” etc.
We are trying to ensure that everyone is well informed of the rules and understood without fail.

Consultation Desk
We have established the Corporate Ethics Helpline as a complianceconsultation desk to promptly detect and prevent illegal andunethical acts.
Compliance Consultation Service System（Corporate Ethics Helpline）

Providing/＜In house ＞
Consultation
Internal Reporting Report
Information
Desk
GeneralAdministration Dept.

Counselor
Providing//Informant Consultation ＜Outside Company＞

External Reporting Report
Information Contact
Designated Social
Insurance and Labor
Consultant Oﬃce

Fact-ﬁnding Investigation
about the Incident※Anonymous Consultation Available

38

Kimura Unity Report 2023

Investigation
Team
Department
Manager orDesignated
Personnel

Ethics Oﬃcer(Head of
ReportAdministration
Headquarters）

President“Compliance Support Mail” and“Personnel and Labor Relation Mail”

We regularly distribute commentary basedon case studies.

〖Governance〗

Risk Management
Risk Management Initiatives
In order to maximize corporate (group) value, shareholder value, and customer value in a rapidly changing businessenvironment, we believe it is important to recognize the surrounding environment in a timely and appropriate manner andrespond accurately to various risks.
The Group analyzes risks and examines countermeasures in the relevant divisions and, when necessary, receives advice fromrelevant external organizations in response to risks related to important management decision-making, such as businessrestructuring, establishment of new bases including overseas, major capital investments, and alliances with other companies.
In addition, regarding risks related to business execution such as quality complaints and workplace accidents, departments
and staﬀ in charge working on risk management on a daily basis.

Initiatives for BCP (Business Continuity Plan)

We have formulated a BCP Action Plan for all business units with the aim of protecting the interests of all stakeholders by
ensuring the early restoration of our ability to supply products and provide services in the event that our company or ourcustomers' or suppliers' bases are stricken by a large-scale earthquake, tsunami, other disaster or accident, making businessactivities diﬃcult to continue.
We conduct BCP desk training to verify the eﬀectiveness of the initial response to the formulated BCP and to address areas for
improvement that have been clariﬁed, as well as conducting a comprehensive review and company-wide deployment of the“Earthquake Response Manual” (including various procedure manuals) and other documents in order to ﬁrmly establish andraise the level of activities.
For the purpose of raising awareness of various activities
related to disaster response and disaster prevention,
we have a publication corner set up to post newslettersas part of our eﬀorts to actively promote information
dissemination to all employees.

Information page on disaster prevention serialized in the company

newsletter（Excerpt from the 2022 internal newsletter）

Initiative for Improved Information Security

We have acquired international standard ISO27001 (ISMS) certiﬁcation in our information service business to maintain andcontrol the information risk of the “conﬁdentiality, integrity, and availability” of our customers' important personal informationand various information assets that belong to individuals and organizations by continuously maintaining to operate the“management system.” In addition, within the company, each department checks the level of understanding and thoroughness
of information security rules over the previous 22 items, such as “management,” “PC purchase,” and “introduction software
standards,” and clariﬁes areas for improvement. In so doing, we are working to steadily improve the level of information security.

Check Items for Information Security Rules (Excerpt from checklist)

Conﬁrmation Chart (Excerpt from charts for inhouse use )Kimura Unity Report 2023

39

INITIATIVES FOR VALUE CREATIONKIMURA UNITY VALUE CREATION STORYSOCIAL ISSUES FACING KIMURA UNITY•Recruitment diﬃculties due to the decreased working population caused by declining birthrates
and aging population•Advancement of DX that contributes to work style reform and productivity improvement•Rise in labor costs due to amendments to the Temporary Staﬃng Act and rising minimum wages•The rapid development of e-commerce logistics due to the spread of corona and the resulting
large ﬂuctuations in the amount of incoming and outgoing shipments•Initiatives toward SDGs such as carbon neutrality and improvement of expected value for social
contribution•Creation of new business opportunities through the development of CASE/MaaS•Increased business opportunities due to the spread and expansion of eco-friendly vehicles suchas EVs/FCVs, and expansion of business areas that require expertise such as aiming due to the
spread of safety devices•Shift from system of self-suﬃciency to external transfer due to the spread of cloud systems

Management Philosophy“The Company exists for thecustomers and prospers together
alongside our employees.”

Expansion of capital through continuous improvement of corporate value【Financial Capital】■Generate cash ﬂow for growthinvestment
・Sales Amount :Maintain Financial Base・Equity Ratio:
Maintain High Equity Ratio【Social Capital】■Trust and Responsibility Cultivatedin 140 Years of History of Progress■Capital tie-up with a company forthe purpose of overseas businessdevelopment■Building network relationships withvarious stakeholders■Relationships of trust withgovernment agencies【Human Capital】■Ability to improve and propose
optimization for solving customer
problems■Ability to tackle issues with a crossfunctional approach in company
wide■Management driving force byfront-line leaders【Intellectual Capital】【Natural Capital】■Provision of renewable energy
・Solar Power Generating
Capacity

INPUT
40

Kimura Unity Report 2023

Logistics Services
While maximizing the strengths of ourdiverse human resources, we will
accelerate our eﬀorts in DX and CN,
further improve the quality of logistics
operations, and provide new solutions
to regions and companies.

Staffing Services

Contribute to workers, customers, and local
communities by securing employment that
responds to diversifying work styles throughthe collective eﬀorts of the Kimura Unity
Group.

Information Services

Utilizing the logistics know-how cultivated overmany years in the automobile industry, etc.,
we will help solve social issues by providing
services as a set with IT.

Total Car Services
Through the evolution of solutions for DX (human/vehicle management) ×
Actual Sites (maintenance workshop), the promotion of CASE/MaaS･CN andthe eradication of traﬃc accidents, we provide Dreams, Comfort and Security
for the car oriented life style.

Other Services（Solar Power Generation Business）

Corporate Culture with All Team Members Working Together to Solve Customer Problems

Initiatives forManagement Foundationthat supports Value
Creation■Ability to optimize operations
based on TPS■Ability to develop IT solutions withthorough knowledge of logistics
operations■Promoting the use of IT and DX to
improve operational eﬃciency

Realizing customer value through multiple services

Management
QualityＩＳＯ

ＴＰＳManagement Philosophy / Operating Style
Safety / Quality

BUSINESS MODEL

Competitive Advantage of KIMURA UNITY

１. Faith in Responsibility and Trust backed by 140-year Historyof Progress
２. A bond of mutual trust between labor and management,a strong sense of unity that grows together with employees(Build rapport and develop great relationships with teammembers)
３. Continuity to face challenges sincerely and honestly
４. Capable of handling problem-solving for improvement andoptimization, providing creative suggestions by diverse
human resources

Stakeholder

Customer Values“To help realize ourcustomersʼ successensures our stable
growth”

Corporate GovernanceTwo-way Communication

Safety and Health“Ensure a Healthy
and Safe Work
Environment”

Growth Strategy

Decent Work“For Everyone to Shine”--Talented and Shine
Human Resources
Development--

DX Strategy

Environment“Contribution to
Solving Global
Environment
Issues”

Customers

Human Resources Strategy

Road Traffic Safety

KIMURA UNITY GROUP
realizes society enrichedin Dream, Comfort andSecurity by respecting
humanity and solvingsocial issues by the values
created through people topeople linkage.

Corresponding Thematic SDGs

Materiality“Achieve a Society
with No Traffic
Accidents”

PurposeEmployees

Business
Partners

Stockholders

Local
Communities

GlobalEnvironment“Fair and Sound
Business Practice”【Financial Capital】

Realization of sustainable growth・Consolidated Proﬁt
Capital that meets shareholder expectations
Maintain and improve eﬃciency
・Consolidated ROE
Diversiﬁcation that supports earnings stability
・Risk diversiﬁcation ratio
・Overseas business ratio【Social and relationship capital】

Contribution to society through activities toeradicate traﬃc accidents
・Achievement of Social Contribution
Activities【 Human Capital】

Strengthening diversity of human resources
・Ratio of female management positions
Improving employee job satisfaction andhappiness
・ES Survey Results
Increase safety and health awareness・Results of employee awareness survey
Protection of Workers' Rights
Providing a high-quality work environment
・Number of trainees enrolled【Intellectual Capital】

A lineup of services that provide customers
with “Dreams, Comfort and Security”
・IT improvement, etc.

With the Spirit of Total Participation as One Team

SDGs
BCP

(Business Continuity Plan)

Internal Control
SystemCorporate
Governance

Philosophy/ Corporate Code of Ethics / Management(Hand Book)/ Compliance【Natural Capital】

Business activities that consider the global
environment, including climate change
・Greenhouse Gas Reduction
・Replacement rate of EVs and FCVs in
company ﬂeet
・Ratio of renewable energy introduction

OUTCOME
Kimura Unity Report 2023

41

INITIATIVES FOR VALUE CREATION
Initiatives in Each Business
FY2022 sales results by business segment

LS※Occupancy ratio indicates the ﬁgure
before inter-segment oﬀset

Logistics Services
物流サービス

TCS

Total Car Services
自動車サービス

I S

Information Services
情報サービス

Total Car Services

23.8%

Total Sales

59,139

Information Services

3.0%

million yen

SS

Staﬃng Services

Logistics Services

2.6%

70.6%

Other

Staﬃng Services
人材サービス

0.1%

FY2022 Sales, Operating Income, Operating Proﬁt Ratio(Unit: Millions of yen)Segment

Sales

Logistics Services

42,264

3,848

9.1%

Total Car Services

14,232763

5.4%

Information Services

1,792

246

13.7%

Staffing Services

1,538

7

0.5%

46

13

28.3%

Corporate Total ※1△ 735△ 1,609－

Total Amount

59,139

3,269

5.5%

Ｏｔｈｅｒ

Operating Income Operating Profit Ratio※1 : including elimination adjustment

Priority Enforcement Strategy
Priority Enforcement Strategy
Marchndise/Item

Segment

Logistics Services

Packaging/Container
Equipment

Expanding
ToyotaStrategy

New Sales
Expansion
Strategy

Area
StrategyOverseas
Strategy

DigitalStrategy

○

○

○

○

○

Car Supplies

○
○
○
○

Insurance
Agency Fees○

Car Leasing
Car Maintenance○○

Car Sales

Total Car Services

○

Other

Information Services
Staffing Services
Other service (power sales business)

42

Kimura Unity Report 2023

○

○
○

○

○

FINANCIAL AND NON-FINANCIAL INFORMATIONKey Financial Data
Sales Trend
売上高の推移単位：百万円
Unit: Millions of Yen
60,00060,00040,00040,00040,846
38,73645,76840,84648,02145,76846,98348,02154,30952,81952,81948,85548,85546,98359,13957,082

57,082
51,78254,30951,78220,00020,00000
FY2013 2013年度
FY2014 2014年度
FY2015 2015年度
FY2016 2016年度
FY2017 2017年度
FY2018 2018年度
FY2019 2019年度
FY2020 2020年度
FY2021 2021年度
FY2022
2012年度Transitions in operating income, ordinary income, and net income
Operating Income

Unit: Millions of Yen

Ordinary Income

Current Net Income
3,670

4,000
3,000
2,000
1,000

3,269

2,754

2,812

FY2019FY2020

FY2021

FY2022

FY20219

FY2020

FY2021

2,938

2,433
2,555
2,434
1,963
2,022 1,949
2,229
1,723
1,935
1,657
1,603
1,520
1,689
1,711
1,548
1,451
1,226
1,042
1,030
1,018
840
2,132

3,965

2,181

2,471

0
FY2013

FY2014

Results

FY2015FY2013

FY2016FY2014FY2017FY2015FY2018FY2016FY2017FY2018FY2022

Fiscal Year ended ➝ (March 31, 2014) (March 31, 2015) (March 31, 2016) (March 31, 2017) (March 31, 2018) (March 31, 2019) (March 31, 2020) (March 31, 2021) (March 31, 2022) (March 31, 2023)
Amount of Sales

Unit: Millions of Yen

40,84645,76848,021

46,98348,85552,81954,30951,782

57,082

59,139Operating Income

Millions of Yen

1,689

1,520

1,949

1,711

1,548

2,229

2,555

2,434

2,938

3,269

Ordinary Income

Millions of Yen

2,132

2,022

1,935

1,963

1,723

2,433

2,754

2,812

3,670

3,965

Current Net Income

Millions of Yen

1,226

1,030

1,018

1,042

840

1,451

1,657

1,603

2,181

2,471

Total Assets

Millions of Yen

47,87351,03051,11750,95951,42951,61552,56154,061

56,024

57,770Net Assets

Millions of Yen

23,73726,656

26,251

26,78627,98628,52328,76330,73633,51935,114FY2013

FY2014FY2015FY2016FY2017FY2018FY20219

FY2020

FY2021

FY2022

Sales by Segment（Before Inter-Segment Offset） Fiscal Year ended ➝ (March 31, 2014) (March 31, 2015) (March 31, 2016) (March 31, 2017) (March 31, 2018) (March 31, 2019) (March 31, 2020) (March 31, 2021) (March 31, 2022) (March 31, 2023)

Logistics Services

Unit: Millions of Yen

28,03630,18031,635

31,11332,18636,021

37,63935,88540,97342,264

Total Car Services

Millions of Yen

11,544

14,344

15,078

14,571

15,092

15,02914,898

14,277

14,071

14,232

Information Services

Millions of Yen

1,070

1,102

1,162

1,149

1,400

1,599

1,583

1,409

1,495

1,792

Staffing Services

Millions of Yen

672

552

451

462

537

559

562

593

1,039

1,538

Ｏｔｈｅｒ Services

Millions of Yen

45

47

47

46

47

44

46

45

44

46

Intersegment Offset

Millions of Yen

△522

△458

△353

△359

△409

△435

△422

△429

△542

△735

Total AmountMillions of Yen

40,84645,76848,021

46,98348,85552,81954,30951,782

57,082

59,139FY2013

FY2014FY2015FY2016FY2017FY2018FY20219

FY2020

FY2021

FY2022

Investment on Plant and Equipment/Value Depreciation

Fiscal Year ended ➝ (March 31, 2014) (March 31, 2015) (March 31, 2016) (March 31, 2017) (March 31, 2018) (March 31, 2019) (March 31, 2020) (March 31, 2021) (March 31, 2022) (March 31, 2023)

Company Equipment

Unit: Millions of Yen

1,223

1,539

708

1,571

994

1,351

1,666

1,608

1,220

1,256

Rental Assets

Millions of Yen

3,622

2,940

2,985

3,336

2,935

2,830

2,776

2,836

1,851

1,899

Total Capital Investment

Millions of Yen

4,846

4,480

3,694

4,908

3,930

4,182

4,442

4,444

3,071

3,156

Depreciation

Millions of Yen

1,084

1,297

1,406

1,321

1,375

1,424

1,562

1,553

1,766

2,054

Kimura Unity Report 2023

43

FINANCIAL AND NON-FINANCIAL INFORMATIONKey Financial Data
Changes in Return On Equity（ROE）
Unit: ％

8%
5.5%

6%

6.1%

5.4%
4.2%

4.0%

4.2%

FY2014FY2015FY2016

4%

7.1%

7.6%

5.6%

3.2%

2%
0%
FY2013

FY2017FY2018FY2019FY2020

FY2021

FY2022

Changes in Return On Assets（ROA）
Unit: ％

5%
4%
3%

4.0%
2.7%

2.8%
2.1%

2.0%

2.0%

FY2014FY2015FY2016FY2013

FY2014

2%

3.2%

3.0%

FY2019FY2020

FY2021

FY20219

FY2020

4.3%

1.6%

1%
0%
FY2013Index

FY2017FY2015FY2018FY2016FY2017FY2018FY2022

FY2021

FY2022

Fiscal Year ended ➝ (March 31, 2014) (March 31, 2015) (March 31, 2016) (March 31, 2017) (March 31, 2018) (March 31, 2019) (March 31, 2020) (March 31, 2021) (March 31, 2022) (March 31, 2023)
ROE

Unit: ％

5.5%

4.2%

4.0%

4.2%

3.2%

5.4%

6.1%

5.6%

7.1%

ROA

％

2.7%

2.1%

2.0%

2.0%

1.6%

2.8%

3.2%

3.0%

4.0%

4.3%

Ordinary Income to Net Sales

％

5.2%

4.4%

4.0%

4.2%

3.5%

4.6%

5.1%

5.4%

6.4%

6.7%

％

48.2%

50.5%

48.6%

49.8%

51.7%

52.8%

52.3%

54.4%

57.1%

57.9%

Persons

2,439

2,507

2,486

2,613

2,465

2,514

2,533

2,491

2,429

2,415

Equity Ratio
Number of Employees

44

Kimura Unity Report 2023

7.6%

Key Financial Data
Changes in Status with Major Business Partners, etc.
Unit: Millions of Yen
30,00025,00020,00017,227

17,796FY2013

FY2014

22,82923,155

19,124

18,82019,164FY2015FY2016FY2017FY2018FY2019

8,700

8,474

8,637

FY2017FY2018FY201925,57325,870

FY2020

FY2021

FY2022

7,932

7,834

FY2020

FY2021

21,307

15,00010,0005,000
0Status of NLS (New Logistics Services) Business
Unit: Millions of Yen
10,000

9,254

8,398

7,390

9,236

8,195

5,000

0
FY2013

FY2014

Status of Major Customers, etc.

FY2015FY2016FY2013

FY2014FY2015FY2016FY2017FY2018FY20219

FY2020

FY2022

FY2021

FY2022

Fiscal Year ended ➝ (March 31, 2014) (March 31, 2015) (March 31, 2016) (March 31, 2017) (March 31, 2018) (March 31, 2019) (March 31, 2020) (March 31, 2021) (March 31, 2022) (March 31, 2023)
Toyota Motor Corporation ※1 Unit: Millions of Yen

10,935

10,887

11,409

11,141

11,692

12,534

12,16911,882

13,214

12,205

Millions of Yen

6,292

6,908

7,714

7,678

7,472

10,295

10,986

9,425

12,35813,665

Millions of Yen

17,227

17,796

19,124

18,82019,164

22,82923,15521,30725,57325,870

％

42.2%

38.9%

39.8%

40.1%

39.2%

43.2%

42.6%

41.2%

44.8%

43.8%

Toyota Group ※2

Total AmountOccupancy Ratio※1 Sales to Toyota Housing Corporation, which was separated from Toyota Motor Corporation in October 2010, are included for convenience of comparison.
※2 Transactions of the Toyota Group include overseas subsidiaries of Toyota Motor Corporation

NLS (New Logistics Services)
FY2013
FY2014FY2015FY2016FY2017FY2018FY20219
FY2020
FY2021
FY2022Business Status
Fiscal Year ended ➝ (March 31, 2014) (March 31, 2015) (March 31, 2016) (March 31, 2017) (March 31, 2018) (March 31, 2019) (March 31, 2020) (March 31, 2021) (March 31, 2022) (March 31, 2023)
Sales of NLS BusinessOccupancy Ratio

Unit: Millions of Yen

7,390

8,398

9,254

9,236

8,700

8,474

8,637

7,932

7,834

8,195

％

18.1%

18.4%

19.3%

19.7%

17.8%

16.0%

15.9%

15.3%

13.7%

13.9%

Kimura Unity Report 2023

45

FINANCIAL AND NON-FINANCIAL INFORMATIONKey Financial Data
Changes in Net Assets and Net Income per Share
Net Assets per Share

Unit: Yen

Net Income per Share
150

4,000
108.87
3,000

91.48

2,000

60.13

50.81

68.66

100

66.43

42.67

42.21

43.19

955.36

1,068.26

1,028.37

1,052.09

1,102.39

1,128.10

1,138.61

1,218.95

1,360.63

1,507.55

FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

34.84

50

1,000

0

0

Changes in Dividends
Annual Dividend

Unit: Yen

Consolidated Payout Ratio

Dividend payout ratio : ％

60

60%

40

38.7%
32.0%

31.6%

20

0

38.6%

31.3%
26.6%

24.6%

30.1%

27.7%

40%

28.4%

20%

12.5

13.5

13.5

13.5

13.5

16

19

20

26

42

FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022FY2014FY2015

Information per ShareFY2013

FY2016FY2017FY2018FY20219

FY2020

FY20210%

FY2022

Fiscal Year ended ➝ (March 31, 2014) (March 31, 2015) (March 31, 2016) (March 31, 2017) (March 31, 2018) (March 31, 2019) (March 31, 2020) (March 31, 2021) (March 31, 2022) (March 31, 2023)
Net Income per Share

Unit: Yen

50.81

42.67

42.21

43.19

34.84

60.13

68.66

66.43

91.48

108.87

Net Assets per ShareYen

955.36

1,068.26

1,028.37

1,052.09

1,102.39

1,128.10

1,138.61

1,218.95

1,360.63

1,507.55

FY2013

FY2014FY2015FY2016FY2017FY2018FY20219

FY2020

FY2021

FY2022

Dividend

Fiscal Year ended ➝ (March 31, 2014) (March 31, 2015) (March 31, 2016) (March 31, 2017) (March 31, 2018) (March 31, 2019) (March 31, 2020) (March 31, 2021) (March 31, 2022) (March 31, 2023)
Consolidated Dividend Payout
Annual Dividend

Unit: ％

24.6%

31.6%

32.0%

31.3%

38.7%

26.6%

27.7%

30.1%

28.4%

38.6%

Yen

12.5

13.5

13.5

13.5

13.5

16

19

20

26

42

(Note) Net assets per share and net income per share are based on a 2-for-1 stock split of shares of common stock, eﬀective July 1, 2022.
For this reason, historical data is also presented adjusted for stock splits.

46

Kimura Unity Report 2023

Key Non-Financial Data
ISO26001
Core subjects
6.2
Organizational
Governance◇Actual Value of Kimura Unity Co.,Ltd.Alone

Activity Goal
Index

Results
Unit

FY2018FY2019FY2020

FY2021

FY2022

Number of Internal and External Director ( ): No. of External Director

Persons

8（ 2）

8（ 2）

8（ 2）

9（ 2）

8（ 2）

Number of Internal and External Auditor ( ): No. of External Auditor

Persons

4（ 3）

4（ 3）

4（ 3）

4（ 3）

4（ 3）

Time

1

1

1

1

1

％

97. 0

98. 0

99. 0

99. 0

91. 0

Strengthening Corporate GovernanceDialog with stakeholders
Number of Questionnaire Survey Conducted with Stockholders
Risk Management
Safety confirmation system training／Response rate on the first day
6.3
Human Rights

6.4
Labor Practices

Strengthening the Promotion of Diversity
Percentage of women in executives and management positions （ ※1）

％

1. 0

1. 0

1. 8

1. 8

1. 8

Employment rate of persons with disabilities

％

2. 00

1. 89

1. 94

2. 12

2. 00

Number of people rehired by the elderly

Persons

31

32

21

30

22

Number of International Trainees Enrolled

Persons

103

170

215

207

185

Supporting Diversified Work Innovation
Number of Employees （ ※2）

Persons

1, 624

1, 611

1, 633

1, 592

1, 597

Average Age

Years

43. 1

43. 0

43. 3

43. 6

43. 5

Average Length of Service

Years

18. 2

18. 0

18. 1

18. 4

18. 4

Male-Femail Ratio （Male Ratio）

％

85. 7

85. 5

84. 4

83. 5

82. 2

Number of employees using the childcare leave system

Persons

16

7

22

12

21

Number of users of the shortened working hours system for childcare

Persons

9

10

9

10

12

Number of users of the nursing care leave system

Persons

1

5

0

4

1

Number of users of the shortened working hours system for nursing care

Persons

0

0

0

0

1

％

71. 7

68. 8

71. 0

74. 0

72. 0

Total working hours per year （Average）Total

Hours

2, 0842, 0832, 0142, 0381, 993

Total Overtime Per Year （Average）

Hours

268

258

203

248

214

Frequency of Occupational Accidents （Frequency rate of time off work）－

0. 5300. 2200. 6900. 231

0. 231

Gravity of Occupational Disaster ( Severity Rate)－

0. 0200. 0100. 0230. 0180. 002

Department

27

36

29

26

22

Health Checkup Rate

％

98. 8

99. 3

98. 1

97. 7

98. 0

Rate of Health Follow-up Inspection

％

78. 2

82. 3

80. 1

84. 8

82. 5

5, 919, 791

Percentage of annual paid leave taken
Occupational Health and Safety

Ensuring the Safety of Employees

Inspection by the General Manager of SQ Promotion Headquarters
Ensuring the Health of Employees

6.5
Environment

Environment Protection (Conservation) Activity＜Energy Saving Activity＞
Energy Consumption （Total Amount of Electricity）

kwh

6, 730, 172

6, 459, 331

6, 607, 240

6, 533, 892

Energy Consumption （Total Amount of Gas） in terms of LPG

ton

165

175

174

210

230

CO₂ emissions total （Energy Origin）

t-Co2

3, 7373, 5043, 3943, 3073, 375ton

1, 1091, 4402, 2001, 9881, 864

Thousand ㎥

26. 7

25. 6

24. 0

31. 6

25. 8

＜Resource-Saving Activities＞
Industrial Waste Emissions （Total Amount）
Water Consumption （Total Amount）＜Measures against Environmentally Hazardous Substances＞

6.6
Fair Operating
Practices
6.7
Consumer Issues

Amount of Gasoline and Light oil Consumed （Within Our Facilities）ℓ

16, 177

11, 0369, 806

10, 153

11, 307

Amount of chemical substances discharged and transferred subject to PRTR㎏

16, 100

9, 5008, 0008, 70018, 000

Time

23

24

24

24

15

Consultations

0

0

0

0

0

Compliance
Number of in-house compliance training conducted
Improving Quality and Ensuring Safety
Number of incidents involving loss or leakage of personal information

6.8
Community
Involvement andExpansion

Continued Promotion of Company-wide Social Contribution Measures
Achievements in Social Contribution Activities （No. of Activities）

Consultations

38

37

29

19

24

Achievements in Social Contribution Activities （Cost of activities）

Thousand Yen

5, 0891, 581

10, 868920

1, 348（※1）
〔Reference〕As of April 2023, three female managers take an active role in the workforce.
（※2）The number of employees includes those dispatched the Company from outside the Company on loan and excludes those dispatchedfrom the Company to outside the Company.

◇Utilizing the framework of ISO 26000, an international standard on social responsibility, we organize the main activities and achievementsin accordance with the seven core themes
Kimura Unity Report 2023

47

STRATEGY
Medium-Term Management Plan 2023

In the Mid-Term Business Plan 2023, we bring out more of our core competence and potentials through “One-TeamManagement by Total Participation” that we had developed in the Mid-Term Management Plan 2020.
Accelerating innovation of the existing business model with the concept of “Value Area” as a keyword, the KIMURAUNITY GROUP aims to be a corporate group that will help bring happiness to employees, business partners, customers,
while further contributing to the development of the local communities as a public entity of society.

［Concept of Mid-Term Management Plan］
Promoting a business strategy beyond the scope of existing
business model based on the “One-Team Management byTotal Participation”(1) Promote “One-Team Management by Total Participation”
Aiming to be a “strong and friendly” company that responds
immediately to changes in the business environment, we
accelerate inter-departmental collaboration and inter-groupcollaboration with subsidiaries, make proposals that respondquickly to diversifying customer needs, promote employee
independence, and realize both employee growth andcompany growth.

(2) Promote Growth Strategy

While maximizing the strengths of our group, such as
information systems and smart operations, we will provide
services tailored to business characteristics that meet thetrue needs of our customers, with area as our keyword.
Through the contribution of our employees, we will realize
the growth of the company along with the growth andhappiness of our employees.

［Mid-Term Group Management Policy］

In order to steadily promote the concept of the mid-range
management plan, we will build services in new areas without
being bound by existing business areas and aim to become acomprehensive service company.

New value creation area through"Logistics DX x Staffing Services"

New value creation areas in a
mobility society

Information
Services

Logistics
Services

Total Car
Services
Staffing
Services

Mid-Term Group Basic Strategy

Strengthen IT and DX (Digital Transformation) initiatives in each business ﬁeld, promote operational eﬃciency andmarketing, and group management of “Self-Reliance” and “One Team” that transcends each ﬁeld･The synergistic
eﬀect of business division management will lead to further growth strategies.

Logistics Services Business・Further development, and preparation for ensured development by strengthening the foundation of existing
businesses with “Logistics Services + IT”
・Create new value as a group (collaboration with subsidiaries) with “Logistics Services + Staﬃng Services”
・Ensure the technology development for logistics services and products of the next-generation by investingin logistics IT and robot R&D

Total Car Services Business・Expand sales by strengthening area marketing centered on existing bases, while contributing to customers
with new value through “safe and secure automobile services + IT”

Information Services Business・With “IT + Logistics Service”, the operation function is to be driven centering on “Logistics Service Business”
by accumulating new know-how

Staﬃng Services Business・Strengthen human resources, which is the foundation of the logistics business, while reinforcing themanagement foundation through group-wide sales initiatives

Mid-Term Group Sustainability Policy

The KIMURA UNITY GROUP ensure even higher corporate value by implementing CSR activities linked with ourgroup business activities, and aim to co-create and share satisfaction with stakeholders.
Making our communities attractive and sustainable, we aim to be a good corporate citizenry helpful to provide
safety and comfort. As a corporation engaged in the car related industries, we actively continue to participate
in a road traﬃc accident eradication campaign as part of eﬀorts to protect health and to save lives of all citizens
so as to make all people happy.

48

Kimura Unity Report 2023

State of Progress on Medium-term Management Plan for FT 2023
Consolidated Results

Unit: million yen
Results
FY 2020

Consolidated Results

Results
FY 2021First Year-

Results
FY 2022
Second Year

Medium-term
management plan

Forecast
FY 2023
Third Year

Plan Progress Rate

(FY2023 Forecast/Medium-termManagement Plan)FY 2023
Third Year

100%

Amount of Sales

51,782

57,082

59,13960,00065,000 92.3%

Operating Income

2,434

2,938

3,269

3,600

4,000 90.0%

4.7%

5.1%

5.5%

6.0%

2,812

3,670

3,965

4,200

5.4%

6.4%

6.7%

7.0%

1,603

2,181

2,471

2,800

3.1%

3.8%

4.2%

4.7%

4.6%

5.64

7.11

7.55

8.06

8.00 100.8%%

Ordinary Profit%
Net Income Attributable to Ownersof Parent Company%
ROE（％）

By segment
Results
FY 2020

By Segment
Logistic Service
Business-

Information Service
Business

Staffing Service
Business

Other Service
Business

Intersegment Offset

Total

Results
FY 2022
Second Year

Forecast
FY 2023
Third Year

Plan Progress Rate

FY 2023
Third Year

Factor(FY2023 Forecast/Medium-termManagement Plan)
100%

42,26442,70045,300 94.3%□ pandemic and the situation in Ukraine, etc.

3,045

3,802

3,848

4,240

4,000 106.0%□ Management with Total Participation

Sales
Amount

8.5%

9.3%

9.1%

9.9%

14,277

14,071

14,232

14,600

545

657

763

810

950 85.3%

3.8%

4.7%

5.4%

5.5%

6.0%

Sales
Amount

1,409

1,495

1,792

2,030

2,000 101.5%

Operating
Income

103

88

246

270

150 180.0%

%

7.3%

5.9%

13.7%

13.3%

Sales
Amount

593

1,039

1,538

1,900

3,000 63.3%

Operating
Income

14

5

7

10

200 5.0%

%

2.4%

0.5%

0.5%

0.5%

Sales
Amount

45

44

46

45

11

13

15

25.0%

28.3%

33.3%

33.3%

Sales
Amount

△ 429

△ 542

△ 735

△ 1,275△ 1,245△ 1,286△ 1,628△ 1,609△ 1,745△ 1,315

Sales
Amount

51,782

57,082

59,13960,00065,000 92.3%

2,434

2,938

3,269

3,600

4,000 90.0%

51,782

2,555

2,434

Results

Results

Increased revenue effect. Improved profitability through□ cost reduction activities

Decrease in quantity due to the impact of the Covid-19□ pandemicof shortage of personnel due to rapid increase□ Impact
in demandin human resources recruitment costs due to□ Increase
shortage of human resources, etc.

Operating Proﬁt Ratio
Operating Income
59,13960,00065,000

6,000
4,000

2,938

to “Logistics Operations + IT” Services

15 100.0%

Operating
Income57,082

Increase in volume from major customers by□ strengthening customer proposal capabilities in regards

45 100.0%

1154,309□ Impact of decreased revenue

6.7%

24.4%

Sales Amount

Decrease in quantity due to the impact of the Covid-19□ pandemic

7.5%

%

Operating
IncomeImproved profitability by promoting One-Team

8.8%

%

Operating
IncomeDecrease in quantity due to the impact of the Covid-19

15,900 91.8%

Operating
Income40,0002,229

Unit: million yen

Medium-term
management plan

40,97380,00020,0003,000 93.3%

35,885

Unit: million yen
52,819

6.6%

Operating
IncomeSales Amount・Operating Income

60,0004,300 97.7%

Sales
Amount%Total Car Service
Business

Results
FY 2021First Year

6.2%

3,269

0

3,600

4,000

Medium-

2,000
0

7.0%
6.0%
5.0%

4.2%

4.7%

4.7%

5.1%

5.5%

6.0%

6.2%

4.0%
3.0%

Forecast term Plan

Results

Results

Results

Results

Results

Forecast

Mediumterm PlanFY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2023

FY 2018

FY 2019

FY 2020

FY 2021

FY 2022

FY 2023

FY 2023

Results【Sales Amount】

Results

Results

Expected to not reach the target due to the impact of the Covid-19
pandemic, the situation in Ukraine, etc.

【Proﬁt】

Although we anticipate that we will not achieve our proﬁt target atthe moment, we aim to achieve a proﬁt margin of 6% throughinitiatives such as increasing the improving management speed on
the front lines.
Kimura Unity Report 2023

49

STRATEGYBusiness Strategy 【Logistics Services Business】
BASIC POLICYWith our continuous improvement that respects and leads people to their full potential, combined with DX(Digital Transformation),
we continue to grow and to contribute the sustainable development of society.

〜 Evolving into a well-being state for customers, society, employees, and society through a logistics business focuses on people 〜
3 unique capabilities to be developed: ① Optimization of operating costs② DX for the future③ Contribution to the region by the entire Group

RECOGNIZING BUSINESS ENVIRONMENT AND ISSUES
Our Main Customer Segment: Automotive Industry

・The automotive industry is undergoing a major technological innovation called CASE in the ʻOnce-in-a-Century Transformation Periodʼ
・With the electriﬁcation of automobiles themselves (transition to HEV, PHEV, BEV, FCEV, etc.), changes are taking place in energy
infrastructure and materials.
・Toyota Motor Corporation, a major customer, has announced a strategy to expand the battery EV lineup to 30 types by 2030.

・Risks include a decrease in the number of component parts due to the electriﬁcation of automobiles, and the possibility of a corresponding
decrease in parts logistics. In addition, sluggish growth in automobile sales due to the spread of car sharing
・As for opportunities, increased demand for new materials, raw materials, and resources associated with the electriﬁcation of automobiles
would be included in addition to the creation of new business markets due to the spread of sharing

The Logistics Business Industry in which our company exists

・The decline in the working population has led to a serious labor shortage in the logistics industry, and “Labor Saving” and “Standardization”
are the keys to the issue

・From the viewpoint of labor saving, the automation of shelf transport robots and collaborative robots that work together in warehouses havebeen increasing advanced, and in transportation, transportation and delivery using automatic trucks and drones, self-propelled delivery
robots, etc. are being put to practical use
・From the standpoint of standardization, functions and information are shared beyond the boundaries of companies and industries, andlogistics eﬃciency is promoted through joint logistics that shares logistics functions

・In April 2024, there will be a so-called “24-year problem” in which the upper limit of overtime hours for drivers will be set at 80 hours on
average per month. In order to deal with this problem, securing human resources and digitalization are urgently needed in the logistics
industry.

COMPETITIVE ADVANTAGE IN BUSINESS
3 Key Strengths Utilized in the Current Business・Human Resources Development: Initiatives for diverse human resources to grow and work better in our corporate culture that respects people
・Creation of Systems: Mechanisms and systems to continuously improve the quality of logistics

・Ingenious Tool Making: Tools and Equipment and Systems developed enable to make contribution

R&D and Investment for the Future

We have a team of specialists that meets the needs of customers, realizing “faster, cheaper, and more reliable logistics” through newtechnology research in such areas as robots, AI, and IoT, product development with new materials, through training curriculum development
for advanced skills so as to turn the cycle of PDCA at the actual operation-sites

TOPICS (Introduction of Initiatives)

Smart Casting Board (Appropriate staﬀ allocation management system)

We have been making eﬀorts in this process of improvement after improvement endlessly year by year so as tooptimize the allocation of personnel according to the ever-changing logistics needs. It was the target to “distributepersonnel more eﬃciently” in terms of eﬃciency and accuracy.
What we were concerned and particular about most was “the heart of people.” “How would people feel when they
were assigned to other processes?” “What is the condition of the receiving side?” We focused on the people so thatthey could make utmost performance. Everything was so arranged and “prepared for the people to demonstrate
their performance to create the maximum value.”

Screen of Smart Casting Board

Co-creation Initiatives for Disaster Mitigation with Local Governments (System Construction)

I want to help the people who live in this area, and I want the local businesses I have seen since I was a child tocontinue to be active and meet with us. We started this co-creation with the idea of “how can we make use of ourcompany's know-how in response to the recent earthquakes and ﬂoods that are becoming more and more severe?”

Leadership Education

Training to become managers who can achieve smart operations (operating warehouses with optimal staﬃng
while realizing customer expectations). In addition to management skills and know-how, we also provide humanresource development based on our unique “spirit of leadership” curriculum. We provide training that enables
participants to realize growth in both practical working knowledge and personality while preparing them for higher
level of operations and the next level of sales expansion.

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Screen in system development for
mitigation of disaster

Wrap-up Presentation of the Training
Seminar【Logictics Service Business】

VISION FOR THE FUTURE【Mid-Term Basic Strategy】

・Ensure and prepare for further development by strengthening the foundation of existing
businesses with “logistics services + IT”

・Create new value as a group (collaboration with subsidiaries) in “Logistics + Staﬃng Services”
・Improving Next-Generation Logistics Service and Product Development Capabilities throughR&D Investment in Logistics IT/Robots

IT+TPS Smart Operation
Sales Expansion contributing
to Areas

Promotion of Logistics DX

PRIORITY BUSINESS STRATEGY
Priority Business Strategy“Personnel

Development” that lays
the foundations andimplements strategies

Corresponding SDGs

Of the management resources (people, goods, money, and information),
human resource is only one that can grow by itself. As people grow, thespeed of growth will be accelerated, which also accelerates execution ofstrategies as it is an important factor as a driving force.

In order to realize customers satisfaction, it is essential to continuously

Promotion of DX:
IT+ Logistics

demonstrate maximum performance at minimum cost. We continue toimprove the quality of logistics by utilizing digital technology thatmaximizes human capabilities in accordance with the theory and practiceof Toyota Production System.

Priority Regions andUp till now, we have developed our business in Chubu District in the ﬁeld

Automotive Service

Kansai and the Kanto markets, targeting automobile parts shifting to EVs,

Kansai and Kanto

area units for the future to come.

Focus Domainsof service parts of automotive industries. We expand our eﬀorts to theParts centering around

while meeting the needs of evolving E-commerce business by setting small

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STRATEGYGROWTH STRATEGY 【Logistics Services Business】
Direction of Growth Strategy
In order to overcome the age of uncertainty with unpredictable times ahead of us, and to continue to growand develop our Group by establishing and executing a stronger growth strategy that will guide the future
expansion of the Logistics Services Division.

Toward hopeful Future
Listening to the voices of our employees, we will present the “Ideal Workplace” to be realized at Kimura Unity in ﬁve
years, giving everyone hope for the future.

Image of Kimura Unity in 5 years

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【Logictics Service Business】

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STRATEGYBusiness Strategy 【Total Car Service Business】
BASIC POLICY

We evolve solutions based on DX (human and vehicle management) x on-site (maintenance workshop), side by side providing

on-site support to customers when using cars by “KIBACO,” management system for “People･Organization･Cars.“ We would always

like to contribute to the solution of various problems such as safety, security and the reduction of cost so as to help support to deliverDreams, Comfort and Security in the car oriented lifestyle. We take the change from ownership to usership as a new challenge for new
development. We continue to develop “KIBACO,” while tackling ”initiatives for the promotion of DX for the next generation to come.”
Assuring the sustainable development of our Total Car Services, we continue to pursue for the realization of new mobility society,sharing the principles of CASE and MaaS.

RECOGNIZING BUSINESS ENVIRONMENT AND ISSUES

・Intensifying competition due to the shrinking aftermarket caused by declining birthrate and aging population, etc.
・Technological advances in automobiles and related services are accelerating・Advances in CASE/MaaS transforms Business Models and create new market areas

・Demands for the creation of a safe and secure automobile society through SDGs and carbon neutrality

COMPETITIVE ADVANTAGE IN BUSINESSEver since the days when automobile after-sales service was not fulﬁlled enough over 60 years ago,
we have always been of help to our customers at the time of troubles such as car breakdown andaccidents through establishing maintenance shops, oﬀering response to traﬃc incidents, road traﬃcincident prevention services and campaigns.

Business development in various positions such as vehicle leasing, vehicle maintenance, andinsurance agency

Service capabilities developed from a customer perspective and a professional perspective, based

Birth of a traﬃc disaster prevention service car
May 1976

on the know-how cultivated through a long period of on-site operations centered on customer
operations and in-house maintenance factories

We are the group that has been working on traﬃc safety for decades, believing that eradicating
accidents is for the betterment of the world
Strong commitment to developing services based on the premise of “safety and security,” such as
traﬃc disaster prevention and preventive maintenanceIntroduced state-of-the-art driving
aptitude tester (CRT)
Sep. 1989

TOPICS (Introduction of Initiatives)

Total support for ﬂeet management and safe driving

KIMURA UNITY GROUP started a joint eﬀort with SmartDrive Inc. in the domain ofdata platform, where we pursue new solutions to the services utilizing mobility
data provided by SmartDrive Inc. in our collaborated development.
we focus on data linkage and coordination in creating synergies with our cloud
based feet management system “KIBACO“ and “Mobility Data Platform” provided
by SmartDrive Inc. in the area of driving data acquisition and accumulation as wellas analysis.

Respect the Law 38

R 38 means to practice Article 38 of the RoadTraﬃc Act, “Pedestrians have priority at pedestriancrossings.” By spreading the circle of recognitionand communication that conveys its meaning andobtain the support of as many people as possible,
even one company, to prevent pedestrians frombeing involved in accidents. Activities were initiatedwith the goal of realizing a world that no accidents
exist. Japan is a car society that gives priority topedestrians rather than cars. It is a project launched
in June 2021 with earnest desire of protecting
pedestrians in mind.

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Total Support for Corporate Customers
in Problem-Solving

Other Data

Vehicle Data

KIMURA UNITY Co., Ltd.

SDGs Event
Dec. 2022

Truck Fes.

Feb. 2022

Mobility Data

【Total Car Services Business】

VISION FOR THE FUTURE＜Priority Strategy System for Value Creation in the Medium-Term Plan＞ ＜Value Creation for the Coming New Mobility Society＞
Area Strategy(Strengthened Proﬁtability Base)

Large Corporate Customers
using Vehicles Nationwide

In and Around the Area where
our own repair shop is locatedCorporate/Individual customers

Value Creation

Value Creation

Providing value through an optimalvehicle management system centeredon KIBACO, a management system forpeople, organizations, and vehicles

Providing on-site support tocustomers when using cars in theareas where our repair shop is
locatedDX( People･Car Management) x Actual Work-site (Repair-shop)

Deliver Services supporting Fleet Area Strategy
Service Development for the Car Society in the next generation
Ability to work closelywith customers to solve
problems

Developing services fromboth customer andprofessional point of view

Commitment to services
based on the premise of"safety and security"Three Competitive Advantages for Total Car Services

PRIORITY BUSINESS STRATEGY

Value Creation in the
New Mobility Society

Human
Axis
Changing Management
Needs

Fleet Strategy (Growth Strategy)

After theNext Plan
Fleet Strategy

Current
3-Year
Mid-range
Plan
Area Strategy

Car
Axis
Ownership

Changes in Car Society

In order to cope with further changes in the“automobile society” and new “management
needs,” we aim to develop business in the value
creation area in the new mobility society, after
the current three-year plan, where CASE/MaaS,
carbon neutrality and SDGs play an important role.

Priority Business Strategy
Fleet Strategy
・Pillar of Growth
Strategy・New BusinessDomainArea Strategy
・Strengthen
Revenue Base・Existing BusinessDomainServices supporting
the deployment of
Fleet and Area
Strategy

Initiatives for service
development
towards the next
generation of car
society

UsershipCorresponding SDGs

We provide a car management service that utilizes the system “KIBACO” tomanage “people, organizations, and vehicles,” mainly for large corporate
customers who use vehicles nationwide.
Realizing “safety and quality improvement, compliance, cost reduction, etc.”
by constructing the optimal vehicle management system for customers,
we expand earnings in new business areas centered on new customer
development.
For the sake of corporate customers and individual customers located inand around the area of our servicing workshop, we provide “New Added
Value” to eﬃciently cope with problems meeting the needs of customers
that includes an on-site support service, etc. when using a car.
Paying a close attention to each and every one of customerʼs car, we help
our customers to solve the problems in the realization of “safer and higher
quality, compliance and reduced cost.” Thus, we contribute to strengthening
revenue base within the existing business domain.
Traﬃc accident prevention services, insurance consulting, car maintenancecarried out in our own servicing workshop, maintenance management,
sale of car supplies, etc. are the services and functions of ours that make itpossible to provide new added values by the combination and linkage withmajor services of Feet and Area strategies and ensure the deployment ofstrategies.

Enrichment of the management function of “KIBACO” in the area of “People/Organization/Car” and enhanced service support for the use of car with ourown service factory as a key operation element, we have been engaged in
the research and development for high level of response to the servicing for
EX cars and vehicles with safety device to be realized.
These are part of our eﬀorts to cope with the changes from “ownership” to“usership” towards the next generation in the domain to support the caroriented life-style.
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STRATEGYGROWTH STRATEGY 【Total Car Services Business】
DIRECTION OF GROWTH STRATEGY
Looking to the future in two, three years or 5, 10 years ahead from now, what are the competitive advantages
we have to leverage for the contribution to society? And how should we hone those strengths, and whatvolume of proﬁt should we aim for?
We will rearrange our marketing strategy based on the needs for our system sales so as to envision a better
strategic planning for the growth of TCS.

Considering fleet strategy
as a perspective to be our
key growth strategy

FY 2018---

FY 2020---

BPO(CMS)

Sale of System (KIBACO)FY 2022---

Fleet Strategy

CustomerBusiness
AgencyKU

Positioned as a vehicle
management system usedin BPO services

Can it be used
as a standalone
system?

Launching a new businessthat can sell a system as asingle unit

FY 2021 Received
a contract for
substantial orders

BPO
Business

Kimura Unity Report 2023

(KIBACO×DX)Progress in FY 2022

Sunny
(Good Status)

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SystemSale
Business

Cloudy(We have yet to see
Sunshine)【Total Car Services Business】

Creating new value by combining with KIBACO 【Knowing What to sell and to Whom】
We have been working on “new value” that will hit new targets across the country in our project.
Themes that lead to solving customer needs andsocial issues for the future
SDGs

Carbon Neutral

CASE

MaaS

Conclusion that we have reached after considering---

Realization of both “safety” and “reduction of vehicles” is the response provided
by KIBACO as a new effective value.

This is a theme that we have been working on over the past extended period of time.
We would like to combine this theme with IT to raise the level of the service of KIBACO,
thereby providing new value in more effective and efficient manners for customers
nationwide.
【Conventional type of approach】【In the future】
Digital（DX)Analog(Guesstimate)out ofexperience

Fact and
Data

Manpower

System■ Description of New Value of KIBACO
Customer needs

Eliminate traffic
accidents

Value to provide by KIBACO
Utilizing the discount target
support system called“TEREMA” for excellent drivers
Traffic accident free and driverʼs evaluation records,
DSS safety education tailoredto each driver's individual
characteristics is provided.

Manage the progressof an accident
smoothly and
impeccably without
failManage vehicle
Management freeinspection dates,
license expiration
dates, and insurance
contracts without any
omissions or extra
effortCurrent
System×

Developed a TEREMA package menu for fixed point observationand provided a safety education plan that allows you to utilize
TEREMA at spots
Receive behavior data, engine ON/OFF, violation data, etc. from various
devices and combine it with KABACO's data to provide new value (whatto explore in the future)×

Accident Management to carry out
utilizing the handling accident
management function.

○

Progress Management by excellent
discount target support system○

Due date management using
dashboard○

Visualization of corporate
management risks using
securities folders
Expansion of shared carfunctions

Direction (draft)

Example 1: Traffic safety education tailored to characteristics of behavior,violations, day of the week, and time of day
safetyExample 2: Sharing knowledge through videos of accidents and dangerous
behavior of company carsquality
Example 3: Schedule inspection according to mileage
Example 4: Alert function when driving without roll call or daily inspection compliance

Improve the way you sell and present your Merchandise /service⇒ Review of promotion strategies such as website
renovation and web advertising○△

Operational support for intracompany car sharing using smart
keys

Modify some of the premium features and add them to thebasic features

×・Promote co-ownership operations by solving the issue of handing over shared car keys
・Improving compliance awareness by controlling the engine when a roll call is abnormal
or when a roll call is not performed

Eliminate complicatedCard freemanagement cards

Cardless payment with QR
payment

×

Refueling can be done using a QR code, reducing the man-hours involvedin managing the actual refueling card
⇒ No need to deal with lost cards or magnetic defective, Without
issuing a new card

Do away with
unproductive paper
work

Introduction of cloud contract
service by KIBACO×Managing contracts electronically through KIBACO becomes
possible, reducing the man-hours involved in managing physicalcontracts and affixing a seal to documents

Eliminate unusedcars

Car free(Cost reduction by
reduced cars)

Contract free

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STRATEGYGROWTH STRATEGY 【Total Car Services Business】
Features of KABACO and its Business Model～ Why “KIBACO”? What are the benefits? ～【TCSʼs Strategic Product︓CMS】
Customers

CMS Contract

Enabling CMS to use as an entry point, andincorporate in TCS products with high profit
margins

KUC

ALLTCS MAERCHANDIE/SERVICESCMS Commission【CMS Challenges】

Lease

Insurance

Maintenance

Off-Store
Sales

Car Rental

DSS

Car Sales

Sheet Metal
Maintenance

手数料

TargetingTarget of CMS used to be mainly customers witha certain level of scale (customers with a large
number of cars).

Customerneeds

Large Corpora�on
Approx. 12,000 Companies

Recourse

0.3%

The target of fleet strategy
in the current three-year
medium-term plan
Venture Business/Small andMedium Enterprises
Approx. 4198,000 companies

We have yet to approach enoughpotential customers.

Excerpt from the document of the Ministry of Internal Aﬀairs and Communications “2020 Economic Census/Basic Survey”

Drawing up future growth strategies, we would like to include venture businesses and small
and medium-sized enterprises across the country.
→ The SaaS business “KIBACO” is the key, as it is not possible to approach all of thepotential customers with human-driven services.
By connecting with new customers and increasing our market share in system sales,
we will increase touchpoints and expand sales of TCS products.

＜Image of product sales expansion＞<Hub Sites><Corporate Site><Service Sites>

KIBACO users

Expand sales of TCS products through digital X sales, with the
hub sites in Approach Point
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Business Strategy 【Staﬃng Services Business】
BASIC POLICY“The Three way Satisfaction Culture” --- made up of three parties including customers, “Kiratto” and our grouping companies.
We call a dispatch worker “Kiratto.”（☆”Kiratto” literary means “shining brightly”）① Focus on improving the retention rate and have them experience career development through accompaniment, support,
and training② Strengthen recruiting capabilities, execute and follow area expansion with overwhelming recruiting capabilities, and realize
timely personnel services③ Realize stable employment through area strategy and area sales expansion through joint eﬀorts with our logistics services
department

RECOGNIZING BUSINESS ENVIRONMENT AND ISSUES
Environmental changes in Japanese society

・Due to the declining birthrate and aging population, the decline in the working-age population will bring about labor shortages
in various industries, as well as shrinkage of the market. In addition, changes in the demographic structure will aﬀect the social
security system, by the increase of economic burden on young people.
・The population has been concentrated in urban areas, mainly in the three major metropolitan areas (Tokyo, Nagoya, and Osaka).
While this concentration of population in urban areas could cause an increase in the risk of infectious diseases and natural
disasters due to overcrowding in cities, traﬃc congestion, etc., lack of people to support the local economy and industry, due topopulation outﬂow in rural areas, could cause diﬃculties in maintaining communities.

Trends in the temporary staﬃng industry

・The revision of the Temporary Staﬃng Act has shifted to equal pay for equal work, and is moving toward stabilizing theemployment of non-regular employees.
・Employment insurance for non-regular employees and improvement of working conditions contribute to increasing labor wages
throughout society.
・Staﬃng industry is experiencing ﬂat growth.
・In temporary staﬃng, the market is becoming oligopolistic.

COMPETITIVE ADVANTAGE IN BUSINESS
Three strengths in our current business・Worksite: In the real operation sites, service education and trials are conducted.
・Human Resources Development: With the training know-how and in-house instructors of our group companies, can provide
practical education and training in the actual workplace + training know-how to develop personnel as immediate workforce.
・System: Through digital investment and internal communication, we have a system that allows human resources to realize
growth and contribute to customers.

TOPICS (Introduction of Initiatives)

Group-wide contribution to the development of areas

We designated the Kansai as a priority area, the second highest population density in Japan, andopened a new sales oﬃce in Amagasaki city in the Kansai District. We contribute to communities
by promoting employment and revitalizing corporate activities by practicing “Three Way
Satisfaction” by a three-sided beneﬁt of “workers,” companies of the area, “customers” and “ourgroup.” In addition, we set up a website called “Minna no Ba,” or square for everyone for further
deployment at 52 locations nationwide to further promote our area contribution activities.

Amagasaki Sales Oﬃce

Worker Dispatch Service with the beneﬁt of training where you can feel growthEntering an unfamiliar workplace for the ﬁrst time is something that everyone is defensive andnervous. In our group, we provide pre-employment education and work training so that
temporary staﬀ can ease such tension and continue working without stress from the ﬁrst day.
We see workers pleased, while the customers are also happy with increased retention.

Securing the employment of international technical trainees who have diﬃculty
returning to their home countries

Various eﬀorts have been made for the survival of companies due to the misfortune caused byCorona. Unfortunately, it also adversary aﬀects international technical trainees who study
practical skills in Japan and return home to contribute to the development of their countries.
We welcome them as members of our group and provide them an opportunity to acquire
packaging skill and technology.

Pre-employment Education

International Technical Trainees
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STRATEGYBusiness Strategy 【Staﬃng Services Business】
VISION FOR THE FUTURE
Community Development with “People” Oriented Initiatives:［“Three Way Satisfaction Culture” facilitate Regional Development］

We will provide a comfortable working environment, “listening and caring” to those who have joined and registered with our group.
Through the educational system of ours and work, they have a great opportunity to develop their skills and working knowledge and expand the areas
as to what they can do and what they want to do, which will increase our potential and lead to further growth. In so doing, we work to expand thescope of our contribution to further development of our customers' businesses, which in turn will lead to the growth of the region as a whole.

〈Regional Strategy〉 Reinforce Collaborative Relation with Human Resources BusinessWe aim to diﬀerentiate ourselves from other temporary staﬃng companies by launching a new service that enables appropriate cost management at
logistics sites through advanced human resource management that can respond to uncertain sales volumes on a moment-by-moment basis.
【”Human” Resources Development】【Development of Company】☆There is an environment for training and education
to learn skills and knowledge related to logistics
with excellent instructors.
☆Educational Curriculum of our own development
available (Leadership Development, Logistic Skills
Acquisition)☆We conduct aptitude tests and introductory cation
before joining the company to help people start towork as a human resource that meets customer
expectations☆Timesheet transaction is carried out by semiautomated OCR and digitalized processing.
☆Linked to sales on area sites☆Continue to introduce friends and increase thenumber of associates who work together☆Always work on for the improvement of ES throughthorough close-knit activities (interviews, LINE
groups【 Development of Customers andCommunities】【Growth Foundation】☆By absorbing the volume fluctuations of companies
within the area centered on our group bases, eachuseless cost is suppressed.
☆Contribute to customer business growth bysupporting the activation of inter-company
communication within the area.

PRIORITY BUSINESS STRATEGY☆Workplaces thoroughly create an organizational
culture that values people☆There is a workplace where leaders are made tounderstand the importance of organizational culture.
☆There are workplaces where a wide variety of humanresources can play an active role. (International
People, Senior Citizens and Women)☆There are sites that handle various products.
☆There are workplaces where people-friendly
workplace improvements are in progress.
☆Being in the customer's position, our groupcompanies takes the role of service research andeducation

Priority Business Strategy
Reinforcement of
Recruitment
Capabilities

Prioritize improvement of retention rate centered on listening attentively,

DiﬀerentiatedServices

Strengthen collaboration with our group and diﬀerentiate ourselves with

Area Sales Expansion

Enhance area sites and realize a stable supply of human resources toand achieving speedy and overwhelming hiring powerhuman resources services, being close to our customers.

customers in the area

（Follow up on “area sales expansion” by strengthening cooperation with
our group）

Growth of People
and Society

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Temporary employees (Kiratto) will receive the same training as ourgroup employees.

(Growth of Kiratto = lead to growth of our company)

Corresponding SDGs

STRATEGYDX STRATEGY 【Information Services Business】
KIMURA UNITY’S DX STRATEGY
Today, digital technology has continued to make unprecedented
advances in content and speed.
Kimura Unity will actively leverage these latest digital technologies basedon the philosophy that we have cherished for many years. Our wisdom
combined with knowhow we have developed at our operation sites
over an extended period of time, we are committed to creating newvalues for our customers. We will contribute to society by solving
various social issues.
Takeshi Kamata Senior Operating Oﬃcer, IS Business Department＜Promotion System＞

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STRATEGYDX STRATEGY 【Information Services Business】
DX in logistics service businessSpeciﬁc items implemented in the past (Logistics Services Business)

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【Information Services Business】“Future direction” of DX in the logistics services business

Challenge for the Future: Themes 1 (Logistics Services Business)

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STRATEGYDX STRATEGY 【Information Services Business】
Challenge for the Future: Themes 2 (Logistics Services Business)

Challenge for the Future: Themes 3 (Logistics Services Business)

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【Information Services Business】

DX in total car services business

What is “KIBACO” that promotes DX?

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STRATEGYDX STRATEGY 【Information Services Business】
Cases that have been implemented to this day 1 (Total Car Services)

Cases that have been implemented to this day 2 (Total Car Services)

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【Information Services Business】

Cases that have been implemented to this day 3 (Total Car Services)

Themes to be promoted for the Future (Total Car Services Business)

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STRATEGYDX STRATEGY 【Information Services Business】
DX in the Automotive Services Business “Future Directions” 1

DX in the Automotive Services Business “Future Directions” 2

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【Information Services Business】

DX in Administrative and Indirect Operations

DX “Promotion Steps” in operating jobs in administrative and indirect division

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STRATEGYDX STRATEGY 【Information Services Business】
Action Implemented So Far (Administrative and Indirect Work)

Theme for the future (Management and Indirect Operation)

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【Information Services Business】

FUTURE DIRECTION Example of Initiatives 1 (Administrative and Indirect Work)

FUTURE DIRECTION Example of Initiatives 2 (Administrative and Indirect Work)

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APPROACH TO SUSTAINABLE DEVELOPMENT GOALS
Social Issues and SDGs(Key Action Items and Measures)：The most important issue that is the base to support the growth of the company：The most important issue that enables to balance the resolution of social issues with the growth of the company
ＥＳＧ

Latest Version of 『KUCG MATERIALITY』
Material Issues (Expectations and Trust in ourcompany)

ISO26000
7 Core Subjects“Contributing to provide solution to
the global environment issues”

Environment

Through our business activities such as thedevelopment and provision of environmentallyfriendly logistics materials and vehicle
maintenance, we strive to protect theenvironment through the reduction of CO₂ andrecycling resources. As a corporate
responsibility, we will contribute to solving
environmental issues such as global warming.

Key activity items and KPI

Goals『KUCGʻs Materiality』 Subsegment

Strengthening efforts to reduce
in-house CO₂ emissions
・Reduction of CO₂ emissions compared➣ FY2030:
to FY2018 ⇒(FY2018 results: 3,710t - CO₂)

Environment

E (Environment)・Achieving a shift to recycling andeliminating plastics by improving
packaging specifications towards a
recycling-oriented society

50%
reduction➣ FY2050: 100%
reduction

Reducing our CO₂ emissions by promoting
environmentally friendly business activities

・Contributing to realize the mobility
concept (smart regional initiative) bycreating a zero-emission factory andproviding next-generation with mobility
sharing services, etc.

Contributing to customers' reduction of CO₂
emissions by providing environmentally friendly
products and services“For everyone to shine”
Human Rights

S (Society)

Decent Work with employee-friendly environment

Labor Practices

Promoting the active participation ofdiverse human resources

We strive to create a rewarding workplace byCreate an environment and culture
promoting "One-Team management with Total
where all employees can work every
participation" in an environment, where
day with a sense of satisfaction.
everyone who shares the management
philosophy, can grow and take on challenges.
・”Work satisfaction index” (out of 5
points) based on survey results basedon employee self-reports (Target: fulltime employees)
FY2022 results: 3.5 points ⇒➣ FY2030:
4.5 points or more・Develop, enhance, and strengthen
systems that widely listen to voices
regarding human rights and job
satisfaction for further improvements.

Promote diversity and inclusion (promoting theactive participation of diverse human resources)

Promote work-life balanceStrengthen promotion of human resources
development“Ensure a Healthy and Safe Work
Environment”

Improving employee safety awarenessand creating a safe workplace
・Total incident frequency rate
(FY2022 results 0.58) ⇒➣ FY2030: 0.3 or less

Safety and HealthWith all people from top management to front
・Number of incidents resulting in lost
line workers sharing the same principles intime incident
safety with respect to the development of➣ FY2030: 0(FY2022 results: 1) ⇒human resources, workstyle as well as our work
environment, the Group promotes
Improving health awareness among all
implementation of mutually enlightening andemployees and creating a pleasantsafety-oriented corporate culture to evolve and workplace
inseminate in every corner of the workplace.
・Health checkup re-examination
We commit to protecting and enhancing thefollow-up ratephysical and mental health of all members.
➣ FY2030: 100%
(FY2022 results 82.5%) ⇒・Achieve zero occupational accidents
by continuing to implement
improvements based on feedback fromworkers and thorough prevention
activities through top management
inspections.

72

Create a work environment that takes humanrights into account

Kimura Unity Report 2023

Create a workplace where employees cancontinue to work in safety and healthAddressing social issues, our group have classiﬁed "important issues", and have indicated 169 goals of related issues.
Specific Measures

SDGs Perspective

RelatedBusiness

Energy consumption reduction in accordance with the Energy Saving Act

Group-wide

Expanding the introduction of solar power generation equipment

Group-wide

Promoting the conversion of forklifts to EV/FCVGroup-wide

Initiatives to reduce industrial waste emissions

Group-wide

Introduction of environmentally friendly equipment

Group-wide

●
6.3
6.4

●
7.2
7.3

●
12.4
12.5
12.6

●
13.1
13.2
13.3

●
12.4
12.5

●
13.3

●
17.16
17.17

Contributing to the enhancement of local infrastructure (Normal charging, asGroup-wide
well as emergency discharge in the event of disasters, etc.)
Research and Development; Developing products using new materials incollaboration with manufacturers from other industries

Logistics Services
Business

Environmentally friendly packaging specifications (Enhancement of reuse,recycle, de-plasticization or abolishing packaging material, etc.)

Logistics Services
Business, Total Car
Services BusinessContributing to the improvement of work efficiency, “using Smart Personnel
Allocation Management Board” (reducing overtime ⇒ reducing power
consumption)

Logistics Services
Business

Improving transportation efficiency at the time of Delivery

Logistics Services
Business

Providing environmentally friendly equipment

Logistics Services
Business

Promoting the use of KIBACO's “CO₂ report function”

Total Car Services
Business

Contributing to the environment by providing sharing services

Total Car Services
Business

Promote vehicle maintenance, using environmentally friendly parts at our own
maintenance factories

Total Car Services
Business

●
12.5

●
15.1

●
14.1

●
17.16

●
17.16

Promoting employment of international trainees
Creating a rewarding work environment where all employees can work withmind set at ease
Strengthening monitoring of harassment behavior

Logistics Services
Business, Staffing
Services Business,
Total Car Services
Business

●
4.7

●
8.8

●
10.2

●
8.5

●
10.2

●
8.5

●
10.2

●
8.5

●
10.2

●
8.5

●
10.2

●
8.8

●
10.2

●
17.17

Develop, enhance, and strengthen a system (Consultation desk) that widelylistens to voices regarding human rights.
Evaluating and improving the appropriateness of the gender ratio●
5.5Group-wide

Strengthening response to the Act on Promotion of Women's Participation andAdvancement in the Workplace
Creating a workplace environment where disabled and elderly people can work
Group-widewith peace of mind●
4.5

Enhancing a comfortable work environment
Review and update of work style reform related systems●
5.5Group-wide

Reducing overtime work and the promotion of taking paid leave
Planned and continuous implementation of stratified education and training
Planned, continuous implementation and enhancement of specialized education(including mental, leadership, specialized technology, IT human resources, etc.)

Group-wide, Staffing
services business●
4.4

Complete implementation of continuous safety and health awareness surveys
to improve safety awareness and behavior
Implement preventive activities by identifying potentially dangerous andharmful factors through safety and quality inspections conducted by top
management
Implement a “safety level survey” of our business partners every year.
Provide feedback on survey results and support further improvement of safetylevelGroup-wide
Reviewing the result of stress checks, implement work environment
improvement by visiting high-stress workplaces and listening to employees, etc.

●
3.4

We hold an in-house seminar to prevent mental health problems andrecurrence, so that we can work with vigor both physically and mentally.

Kimura Unity Report 2023

73

APPROACH TO SUSTAINABLE DEVELOPMENT GOALS
Social Issues and SDGs(Key Action Items and Measures)：The most important issue that is the base to support the growth of the company：The most important issue that enables to balance the resolution of social issues with the growth of the company

ＥＳＧ

Latest Version of 『KUCG MATERIALITY』
Material Issues (Expectations and Trust in ourcompany)

ISO26000
7 Core Subjects“To help realize customers successensures our stable growth”

Consumer Issues

Key activity items and KPI

Goals

Promote acquisition of new projects(net new projects)

Customer Value

・Group sales⇒
Upholding our principles of “Contribution to the Compared to the medium-term plan
Success of Customers,” all Kimura Unity Group for FY2030
Companies leverage our expertise and knowhow which have been fostered by “Digital
・Operating profit margin ⇒Technology + On-site Capability.” In this way,
(Improve productivity throughwe resolve issues for customers and achieve
strategy expansion, etc.)
our corporate growth.
・Realizing research and development
and providing value using Automation,
Robotization, AI, etc.

『KUCGʻs Materiality』 Subsegment

Contributing to the region by promoting
employment and supporting business
revitalization➣ FY2030: 120% or more

➣ FY2030: 8% or more

Providing services that exceed customer
expectations

・Developing new services andproviding value through the
deployment of CASE/MaaS for the
next-generation mobility society

S (Society)“Achieve a Society with No Traffic
Accidents”
Community
Participation

Realizing a “safe and secure”
motorized society through the use of“KIBACO”

Traffic Safety

Contribute to creating a sustainable mobility
・Reduction of fatal/serious injury
society where there is no traffic casualty.
accidents
Utilizing our advanced car management
Number of vehicles managed bysystems based on how-how acquired through a KIBACO ⇒➣ FY2030:
series of traffic accident prevention measures(FY2022 results: 38,410 units)
Number of managed
for over half a century, the Group strives tovehicles: 70,000
provide excellent customer service that will・“Achieve a Society with No Trafficchange human and corporate behaviors so as
Accidents” Strengthen initiatives toto realize a motorized society free of traffic
eliminate traffic accidents
accidents.
“RESPECT THE LAW 38” (Road Traffic
Act Article 38 Pedestrian priority)
Promotion of Awareness Activities
Promotion of 100-day Zero Accident
Campaign“Fair and Sound Business Practice”
The Group continues to be the best partner for
stakeholders, avoiding risks and preventing
misconduct and irregularities through ourcompliance procedures. The Group also
commits to strengthening our risk
management, maintaining an open and highly
transparent management policy.

Organizational
Governance

Building and maintaining an optimal
governance system
・Compliance with the principles of therevised Corporate Governance Code⇒G (Governance)

Corporate Governance・Thorough implementation ofcorrective actions for priority risks andpointed matters to improve ⇒Initiatives in traffic disaster prevention activities
tailored to customers

Activities to improve knowledge and skills of
traffic safety

Providing unique traffic accident
prevention activities through “traffic
disaster prevention services (DSS)”

Fair Business
Practices

Creating a safe and secure automobile society
with no accidents

Maintaining and building the optimal system forour company based on the corporate
governance required by society➣ FY2030:
Compliance rate for eachprinciple 100%

Implement evaluation in regard to theeffectiveness of Board of Directors and efforts
to work on improvement measures based on
evaluation results➣ FY2030:
Major deficiencies None

Continuous evaluation of the effectiveness of
the audit function

Correction of minor
deficiencies 100%

Advancing Enterprise Risk Management

・Achieve functional enhancement byconducting Effectiveness evaluations of
the Board of Directors and audit
functions and working on improvement
measures based on the evaluation
results.
Strengthening information security measures andraising employee awarenessThorough implementation of compliance74

Kimura Unity Report 2023

Addressing social issues, our group have classiﬁed "important issues", and have indicated 169 goals of related issues.
Specific Measures
Promoting employment in local communities through web services, etc.
Strengthen services to support customers in the mobility society with ourservicing factory as a core of the center in the areas (the service includes
rushing to the scene for tire sharing, and charging services etc.)
Contribute to increasing added value for customers through R&D anddevelopment and provision of technology that utilizes Automation, Robotization,AI, etc.

SDGs Perspective

RelatedBusiness
Logistics Services
Business, Staffing
Services Business,

●
8.5
8.8

●
2.4

Total Car Services
Business

●
3.6

●
9.1

Logistics Services
Business

Further advancement of logistics operations by promoting DX incorporated
with combines practical experience in logistics operations and IT

Logistics Services
Business, Information
Services Business

Leveraging KIMURA's strengths and supporting Customers' transformation by
participating in new growth fields

Logistics Services
Business, Information
Services Business

Providing proposals for appropriate insurance products through risk consulting Total Car Services
Businessto customers

●
3.4

●
1.4

●
17.16
17.17

●
11.a

●
8.4
8.5

●
9.1
9.4

●
8.5

●
9.1

●
11.2

●
17.16
17.17

●
13.1

●
17.16

●
10.2

●
17.16

●
3.4
3.6

Build and operate optimal mobility management Operations using “KIBACO,” aproprietary vehicle management system that enables the management of“Vehicles, People, Organizations and Behaviors.”

Total Car Services
Business●
3.6

Development of new services related to CASE/MaaS Deployment forincreasingly sophisticated next-generation vehicles

Total Car Services
Business●
3.6

Total Car Services
Business●
3.6

Total Car Services
Business●
3.6

Total Car Services
Business

●
3.6

●
17.16

●
7.1

●
9.1
9.4

●
11.2

●
9.4

●
11.2

●
13.1

●
17.16

●
17.16

Promotion of “RESPECT the LAW 38” (Road Traffic Law Article 38 Pedestrianpriority) campaigns
Implementation of 100-day accident-free campaign Activities

●
4.5

●
11.2

●
12.6

●
17.16
17.17

●
11.2

●
12.6

●
17.16

Support for local traffic safety and crime prevention, and strengthensponsorship those activities
Provision of accident prevention videos on the list by DSS
Providing unique traffic disaster prevention services by data transfer using“KIBACO”
Accident Reduction Management Menu (YMH) using superior automobile
insurance discounts
Strengthen promotion of safe driving and accident prevention education by
DSS

Strengthen promotion of safe driving and accident prevention education incollaboration with business partners

●
4.5

●
11.2

100% compliance with the revised Corporate Governance Code
100% compliance with the revised Corporate Governance Code (Prime
Requirements)
Conducting effectiveness evaluations and improvement measures based on
evaluation results (Evaluations shall be implemented by a third-party organization Group-wide
by FY2050)

●
10.3

●
12.6

●
16.7

Maintaining 100% corrective action rate for matters pointed out in accordancewith the evaluation
Thorough implementation of planned internal audits and corrective actions.
Execution rate of 100% must be maintainedStrengthening the activities of the risk management committee
Strengthening BCP promotion system

Group-wide

●
8.8

●
16.5

●
8.8

●
16.10

Strengthen to prevent information and data leakage incidents
Compliance with Japan Automobile Manufacturers Association, Inc (JAMA)
security guidelines※JAMA: Japan Automobile Manufacturers Association, Inc.

Continuous implementation of information security audits and eradication of
non-conformities

Information Services
Business●
4.7

Group-wide●
4.7

Thorough implementation of education and training regarding information
securityStrengthening the effectiveness of internal control audits
●
10.3

●
16.5

Thorough implementation of compliance education

Kimura Unity Report 2023

75

DOMESTIC AND OVERSEAS BASES( As of July 1, 2023 )DOMESTIC
18
13

21

4
20 1

2

17

3

22

6

8

9

Chubu District(Other than Aichi Pref.)Chubu District (Aichi Pref.)・Haruhi Parts Center・Oguchi Parts Center・Kasugai Parts Center・Tobishima Logistics Center・Kamigo Logistics Center・Tsutsumi Plant
・Motomachi Plant
・Takahama Plant

7

12
10

Domestic Bases (other than company-owned)

Bases in Toyota Motor
Corporation Site

《Aichi Prefecture》

11 Toyohasi Oﬃce
13 Komaki Oﬃce
14 Toyota Training Center
15 Hekinan Akashi Oﬃce
16 Otowa Oﬃce
17 Kasugai-Higashi Oﬃce
18 Fuso Oﬃce

14
5

19 Centrair Oﬃce
20 Nagoya-Ekimae Oﬃce

15
19

21 Inazawa West Logistics
Center(Opened in May, 2022)

16

Business People Co., ltd.
2

Kamigo Center

12 Super Jumbo Nakagawa Store
4
9Kansai Oﬃce

5 ･Auto Plaza Rabbit Toyota

Kyushu District・Fukuoka Oﬃce
・Fukuoka Karita
Oﬃce

Super Jumbo Co., ltd.

Headquarters
Kanto Oﬃce

Company Owned
Locations・Kansai Branch・West Japan Sales
Oﬃce
・Kobe Oﬃce
・Nanko Oﬃce
・Kumiyama Oﬃce
・Kobe Kita Oﬃce
・Kobe Nishi Oﬃce
・Neyagawa Oﬃce

Group Companies in Japan

22 Meiko-Yatomi Center(Opened in Nov. , 2022)

11

Kansai District

Kanto District・Tokyo Branch
・Kuki Oﬃce
・Yachiyo Oﬃce
・Inzai Oﬃce
・Atsugi Oﬃce
・Atsugi-Nairiku Oﬃce
・Zama Oﬃce
・Ashikaga Oﬃce
・Kitamoto Oﬃce
・Kasama Oﬃce
・Ohta Higashi-shinmachi Oﬃce
(Opened in May, 2022)
・Ibaraki Chuoh Oﬃce
(Opened in July, 2022)

・Kosai Oﬃce
・Tajimi Oﬃce・Manokamo Oﬃce
・Inabe Oﬃce
・Mizunami oﬃce
(Opened in May, 2023)

10 Yatomi Logistics Center

Super Jumbo Inazawa StoreSuper Jumbo Kariya Store

1 HEADQUARTERES

2 ･Shiga Sales Oﬃce

3 ･Nagoya Kita Sales Oﬃce

4 ･Inazawa Plant

5 ･Toyota Sales Oﬃce

6 ･Kamioka Logistics

7 ･Inuyama Sales Oﬃce

8 ･Meiko Sales Oﬃce

9

10 ･Yatomi Logistics･Head Oﬃce
･Nishiki Factory

Warehouse

OVERSEAS･Inuyama Plant･Auto Plaza Rabbit
Nagoya Kita Center･Meiko Plant･Inazawa Sales Oﬃce
･Auto Plaza Rabbit Inazawa
Head Center･Kariya Sales Oﬃce
･Auto Plaza Rabbit
Kariya Center

Consolidated Subsidiary Companies
Aﬃliated Companies Accounted for using the equity method･Toyota Plant

CenterInformation Service Business for Overseas:
71 countries have adopted information service from us,
for implementation, while 39 countries receive ourinformation support services.

USA

Subsidiary
Share 100%

America

China

MexicoThailand

KIMURA,INC.

Established in May 2002

Main business : Total Logistics Business that includes
warehousing and storage of containment andequipment manufacture

USA

BrazilAﬃliatedCompany
Share 24%

KOI Holdings,LLC （With 2 other companies）
Established in August 2018

Main Business : Warehousing and Packaging Operations

China

MexicoAﬃliatedCompany
Share 23%TIANJIN KIMURA SINWA LOGISTICS CO., LTD. “TKSL”

TTK LOGISTICS (Thailand) Co., Ltd.

Main Business : Warehousing and storage business, focusedon packaging operations

Main Business : Logistics Business focused on CKD packaging Main Business : In-house Logistics

Established in Jan. 2005

China

Subsidiary
Company
Share 59.3%

GUANG ZHOU GUANGQI KIMURA SHINWA STORE CO., LTD.
“GKSS”
Established in Nov. 2005

Main Business : Warehousing and storage business, focusedon packaging operations

76

ThailandSubsidiary
Company
Share 89.7%

Kimura Unity Report 2023

Established in Dec. 2002

ThailandAﬃliatedCompany
Share 23%

AﬃliatedCompany
Share 49%

TK Logistica de Mexico S. de R.L. de C.V.
Established in May, 2004

BrazilAﬃliatedCompany
Share 49%

TTK Asia Transport (Thailand) Co., ltd.

TK Logistica do Brasil Ltda.

Main Business : Milk-run and Relay Logistics

Main Business : Milk-run and Relay Logistics, CKD packaging

Established in Feb. 2013

Established in Nov. 2001

CORPORATE OUTLINE
Company Name:

ＫＩＭＵＲＡ ＵＮＩＴＹ ＣＯ．， ＬＴＤ．

Telephone:+81-52- 962-7051

Head Oﬃce:

3- 8-32, Nishiki, Naka-ku, Nagoya, Aichi Prefecture

President and Representative Director:
Date of Foundation:
Capital:October 1, 1973

Number of Employees:

3.59630 billion yen

Account Settlement Period:
Listing Open Stock Market:
Securities Code:

Shigehiro Naruse

9368

2,415 (As of March 31, 2023)
March 31 (Annually)

Tokyo Stock Exchange Standard Market
Nagoya Stock Exchange Premium Market

Reporting Period: FY 2022

(In principle, this report covers the period from April 1, 2022 through March 31, 2023).

※ It also includes some activities continuing from the past as well as more recent ones.

ＫＩＭＵＲＡ ＵＮＩＴＹ ＧＲＯＵＰ

Publication date: 2023.10.20 ＜Ver.2.0＞