Integrated Report 2021
Sustainability Report

Achieving sustainable growth as
a company indispensable to society

Disclosure Policy

01

Contents

MILBON Report 2021 : Sustainability Report

Our integrated report for FY 2021 consists of two parts:a Letter and a Sustainability Report.

For FY 2021, we are issuing two separate editions of ourintegrated report: the Letter and the Sustainability Report.
The Letter edition is drafted as a report for the familiesof Milbon employees.

The MILBON Report 2021
(Letter edition),
focusing on the highlights of FY 2020 designed
specifically for employees’ families

The Milbon Report 2021
(Sustainability Report edition),disclosing detailed information witha special focus on our sustainability strategy

The year 2020 was an unprecedented one, as society.SYJLWFYJI7JUTWY

experienced a great upheaval due to the COVID-19 pan-

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easier-to-understand look at our situation in FY 2020 for our
employees’ families to address their concerns and worries.

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Therefore, while this is a report for all our stakeholders, we

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drafted the Letter in a compact, 16-page tabloid format

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to be approachable for those unfamiliar with integrated

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previous fiscal year, a message from the president, andinformation regarding our employees’ work.
In the Sustainability Report, we focus on our strategies
and initiatives for sustainable growth, as well as the five

Disclosure Methods

key challenges for sustainable growth that we established

Online publication (PDF) andtabloid-size (406mm x 272mm) printed documentin FY 2020. It is available in PDF format in landscape orientation, enabling easy viewing on a desktop or laptop computer. This edition is not printed on paper for distribution.
In FY 2021, our integrated report will consist of these two
editions. While this style of reporting may seem different
from business norms, we hope that it will provide a deeper understanding of the Company to all our stakeholders.

Main Content• Highlights of 2020

Disclosure Methods

Online PDF version
Main Content• Sustainability strategy• Messages to the families of our employees• Financial and non-financial capital• Our response to COVID-19 and our• Section overviews and sustainability

employees’ thoughts and actions• Medium- to Long-term growth strategy• Fundamental information re-familiarizing

readers with Milbon

initiatives

Contents/Value Creation Process

Contents

MILBON Report 2021 : Sustainability Report

Contents

02

Value Creation Process

Key Sustainability Challenges and Six Financial and Non-financial Capital
In its efforts to achieve sustainability, Milbon has re-evaluated the issues from among the activity goals listed in its ESG/SDGs Matrix* thatare highly relevant to its business activities and for which its stakeholders have high expectations. In December 2020, Milbon selected five
key challenges from three topics: solving social issues, achieving sustainable business growth, and building an internal foundation. In thisedition, we will examine the Company’s efforts to achieve sustainable value creation and outline the five key challenges to sustainability.

01

Disclosure Policy

02

Value Creation Process

03

Message from the President

Strengthening Financial andNon-financial Capital

Financial Capital
P06

06

Financial Strategy

08

Sustainability Highlights
2020–2021

Manufacturing
Capital

09

R&D

P09, 10, 11, 12

11

Production System

13

Going Digital

14

Corporate Branding

15

Human Resource Development

17

Educational Support for Salons

19

Corporate Governance21

Initiatives Promoting Sustainability

Human Capital

22

Financial Highlights

P12, 15, 16

23

Non-Financial (Environmental/Social)
Highlights

Social Capital

24

Company Overview andStock Information

Natural Capital
P10, 11, 12Intellectual
CapitalP13, 14

P10, 11, 13, 14,
17, 18

Five Key Sustainability Challenges*

1

Realize spiritualrichnessthrough beauty
Co-creating value with stakeholders:“Creating Communities of Beauty and Soul”

Achieving both sustainable business growth andsolving social issues

2
3

Promote recycling
in manufacturing
and consumption activities
Practice people-friendly
procurement

To become the world’s No. 1
professional hair care manufacturer
through our dedication and educational

Foundation of the Company's sustainablebusiness growth

4
5

Milbon’s
Global Vision

Construct a fair andflexible management
structure
Realize work
environments withenhanced job satisfaction* The five key challenges are chosen from those issues defined in
Milbon’s ESG/SDGs matrix and incorporated into its business operations.
https://www.milbon.co.jp/pdf/esg-sdgsmatrix.pdf (in Japanese only)

support toward local beauty industries
across the globe.

Message from the President

MILBON Report 2021 : Sustainability Report

Contents

03

Achieving Sustainable Growth as a Company
Indispensable to Society

From an industry perspective to theperspectives of customers and society at large
From last year onward, we began receiving many messagesof concern regarding the effects of the COVID-19 pandemic on our business performance. We are happy to reportthat we were able to stem the impact of the pandemic in
FY 2020, with consolidated net sales down only 1.5% andoperating income down only 5.3% year on year.
We would never have been able to achieve this result
without substantial efforts from our partner salons anddistributors in their business operations, as well as thegenerous support from our shareholders and investors, andthe customers who use Milbon products. I believe this isalso the result of each employee paying close attention to
the needs of our customers, thinking about what they canand should do for them, and taking action, all while activities
were restricted due to the pandemic. As such, I would liketo express my sincere gratitude to all our stakeholders.
The whole social environment has been undergoingsome major changes with the declining birthrate, aging
population, and more diversified lifestyles. Amid thesechanges, Milbon has, as its growth strategy since the 2010s,
Ryuji Sato
President and CEO

been working on business structural reforms with the three
aspects: “beyond Japan,” “beyond hair,” and “beyond an
industry-perspective.” The most important among these forMessage from the President

Contents

MILBON Report 2021 : Sustainability Report04

the Company and the beauty market to grow sustainably inthink about what we are able to do for the sustainable de-the future is to go “beyond an industry-perspective,” shift-velopment of society as a whole. Rather than taking actions

ing to the perspectives of customers and society at large.

specifically to meet SDGs and ESG expectations, we will

Milbon set out its five key sustainability challenges in 2020

Since its foundation, the Company has always stoodcontribute to people and society in good faith through our(see diagram below). We recognize that all of these chal-in salons and hairstylists’ shoes. We have been providing

business activities as any proper company should do. It islenges are essential for us to achieve sustainable growth

products and services that propel business growth andmy responsibility as an owner of the Company to maintainin the future. In particular, contributing to the “realization

develop the industry, and in turn, we have also continued

this sense of ethics, which a company should hold withoutof spiritual richness through beauty” is unique to us and it

to grow.

exception, as well as to permeate and thoroughly implement

is what we can achieve through our core business.

However, society today is rapidly changing with tech-

Bringing spiritual richness to society through beauty

this change of perspective throughout the Group.

nological innovations in IoT and AI, and with products andservices unbounded by industry limits being created on a

Five Key Sustainability Challenges

daily basis. In such a world it is clear that neither salons

The five key challenges for solving social problems, achieving sustainable business growth, and building an internal foundation

nor Milbon can expect to grow if we stick with an industry-only perspective.
That is why it is important to think about things fromthe standpoint of an end user, that is, each consumer whocomes to the salon. As such, we, together with salons andhairstylists, will think and act on what is expected of us,

Achieving both sustainable businessgrowth and solving social issues

2

Promote recycling
in manufacturing
and consumption
activities

what we can do, and what we should do. I believe that
continuing to provide products and technical services that
respond to the needs of customers’ lives will lead to thesustainable development of the beauty market as a wholegoing forward.
And, of course, society is the backdrop to every consumer. That is why adopting a customer perspective leads
to a social perspective. From a social perspective, we canFoundation of the Company's
sustainable business growth4Construct a fairand flexible
management structure

1

3

Practice
people-friendly
procurement

5

Realize work
environments withenhanced job
satisfaction

Realize spiritualrichnessthrough beauty
Co-creating value
with stakeholders:“Creating Communities
of Beauty and Soul”*The specific goals for each issue are available online. https://www.milbon.co.jp/company/sustainability (in Japanese only)Message from the President

MILBON Report 2021 : Sustainability Report

Contents

05

Becoming beautiful plays a significant role in enriching

demic, we have formulated and drastically pushed forward

Arena,” where professional stylists from all over the world

people’s lives. By expressing your individual way of life

our “18-Month Missions!” initiative. Our official online store

can come together. These digital services, which provide

through hair design and makeup, it gives you confidence“milbon:iD,” which has been in full swing since June 2020,

scores of videos and virtual content, allow hairstylists atand thus nurtures spiritual richness, and this spiritual rich-is a bridge that connects salons with their customers es-

different life stages or with different work styles to learn

ness emanates to bring cultural richness to society andpecially when those customers cannot visit the salon. The

and develop without being restricted by time or location. Byeven brings peace. I believe bringing this about is our main

service strengthens the relationship between people whooffering this digital education content, we further supportrole and the greatest benefit that the salons and Milbon

love Milbon products, the salons they frequent, and thethose hairstylists who want to deepen their knowledge tobring to society.

Company. As of May 2021, the number of salons signed

better respond to their customers’ concerns and demands.

For the beauty market to continue growing sustainably

up to “milbon:iD” has reached approximately 1,800, whilein times to come, salons must become “communities of

the number of registered users is approximately 60,000.

beauty and soul:” places of support for people’s well-being,

Furthermore, Milbon launched two other digital plat-

places essential to the lives of salon customers and theforms in April and June 2021. One is an educational support

Nobody knows when the COVID-19 pandemic will come to a

local community, lifetime partners to each individual cus-

website, “education:iD,” which provides hairstylists with op-

complete end, but we are now, slowly but surely, improving

tomer. We will work to create a number of such commu-

portunities for self-development not hindered by time andour business foundation in order to achieve medium- tonities in society. In achieving this, promoting digitalization

place. The other is a virtual event space, “Milbon Digital

long-term growth based on the perspectives of customers

Towards a new medium-term management planis particularly important. Salons are businesses that serveand society at large. We will continue to write this story

customers in person. But in order to be more attentive toof further dramatic growth in the next medium-term man-the customers’ needs, it is imperative to create an environ-agement plan due to start in FY 2022. It will be based onment that can respond to the various needs and concerns

the results of our “18-Month Missions!” initiative while weof the customers. Digitalization can realize more frequent

tackle the five key sustainability challenges establishedinteraction with the customers, 24 hours a day, 365 daysat the end of 2020 to contribute to a more sustainablea year, not just when they visit the salon in person once

society.

or twice each month.

This report sets out the latest Company-wide and de-This is why we have been making preparations for digi-

partmental efforts to achieve sustainable growth. Highlights

talization for some time now. And in response to structuralof the previous year’s business activities are discussed inchanges in the social environment propelled by the pan-detail in our “Letter” edition.

Financial Strategy

MILBON Report 2021 : Sustainability Report

Financial CapitalContents

06

Building upon the Company’s Strengths
to Achieve Medium- to Long-Term Business Growth

Promoting structural reforms
based on our “18-Month Missions!”

Masahiro Murai
Executive Director
Chairman of the SDGs
Promotion Committee

have been actively deployed in a wide range of fields. These
include enhanced training for new employees and in-housetraining through online training programs. Meetings have

To realize sustainable growth amidst accelerating changes

been held online both internally and externally and work

to the fabric of society fomented by the COVID-19 pandemic,

has been done remotely owing to major restrictions on

Milbon has been moving forward with the following fourmovement during the pandemic. In addition, our official

themes in mind: 1) enhancing resilience in an unstable busi-

online store “milbon:iD,” which enables stylists and salon

ness environment, 2) expanding digital activities, 3) evolving

customers to connect with each other even when they are

customer relationships, and 4) realizing social innovation.

not present at the salon, began operations in June 2020.

All four areas are progressing without major setbacks.

We also launched the education:iD and Milbon Digital Arena

Our challenge in the future is to properly control selling, gen-platforms in April and June 2021, respectively, to support

eral and administrative expenses as a part of reducing fixedstylists’ education and fulfill the need to host educationalcosts, one of the key measures for enhancing resilience inevents online.

an unstable business environment. Efforts are underway to

We were able to implement a wide array of digital

reduce fixed costs in both domestic and overseas logistics,

measures in such a short timeframe because we began

including a review of the current system. For example, we

focusing on the importance of future digitalization wellhave improved efficiency in the logistics system in the Unit-

before the pandemic. We recognize, however, that saloned States by consolidating the logistics bases. Previously

businesses require physical interaction, and they will not

split across two locations on the east and west coasts ofreadily accept digitalization if it is pushed simply for the

the United States to accommodate goods directly shipped

Company’s sake. We will therefore continue to give duefrom Milbon, we have consolidated into one location in line

consideration to the conditions of salons and hairstylists,

with the transition toward a distributor model. Moreover,and together we will create a better business structure

we believe there is still room for improvement in Japan,that optimally combines the physical with the digital. Thisand we are currently working to make further adjustments

co-creation with stakeholders will ensure that salons willin accordance with advice from experts in the field.

evolve into “communities of beauty and soul,” leading toWith regards to increasing digital activities, digital tools

successful social innovation.

Financial Strategy

MILBON Report 2021 : Sustainability Report

Financial CapitalContents

07

on basic research and product development in collab-enhance our pure earning power by creating a systemoration with overseas branch offices, the Innovationin which every employee, from management to thoseCenter will promote more in-depth product research andat each business site, works to achieve specific goals.

Revenues and profits declined in FY 2020 due to thedevelopment with more long-range goals in mind. We

Of course, for a company to achieve growth, it ispandemic, but consolidated net sales in FY 2021 arealso plan to establish a new training center for our Field

essential to simultaneously create economic value andexpected to increase by 6.9% to a record high of 38.2

Persons. We have outgrown the current Osaka training

help build a sustainable society. Milbon began rolling out

billion yen. Operating income is also expected to risecenter, and by moving to a new center equipped with the

its Company-wide initiatives toward SDGs in FY 2019,

by 0.4% to 6.42 billion yen due to our efforts at struc-

latest facilities, we expect to accelerate the growth ofcreating the “ESG/SDGs Matrix” that shows the efforts

tural reform.

our human resources who will lead the next generation.

being taken to achieve sustainability. In tandem with

Proactive growth investment
for a new stage of growth

Capital expenditure was limited to approximately
1,900 million yen in FY 2020, however, in FY 2021 weplan to make a growth investment of 7,488 million yen
to lay the foundation for medium- to long-term growth.

initiatives based on this “ESG/SDGs Matrix,” we selected

Reviewing of key indicatorswith the aim of shifting toa business focused on capital efficiency

For example, we will further improve and enhance

five key sustainability challenges at the end of FY 2020
after reevaluating the issues that are highly relevant
to our business and which our stakeholders are mostconcerned about.

the various digital platforms mentioned above to makeIn the medium-term management plan set to start in FY

We have set specific goals and have begun activi-

the systems more effective and convenient. In our over-2022, we are planning to formulate a financial strategy

ties in collaboration with salons, distributors, and stake-seas business, we will expand the Thailand factory andwith return on invested capital (ROIC) as its key index.

holders, including our employees. We are also working

establish a new factory in China. Furthermore, following

Following its listing, the Company has increased rev-

to strengthen corporate governance as one of the fivethe establishment of Regional R&D in the United States,

enues and profits with a tendency to emphasize net

key challenges. As such, in FY 2021 we achieved ourwe will promote product development in each country

sales and operating income as KPIs.

goals of appointing women directors and increasing

by opening R&D bases adjacent to the factories in China
and Thailand in FY 2022.

However, to achieve medium- to long-term growth
while maintaining an appropriate growth investment

the number of outside directors to one-third of the total
number of directors.

In Japan, in addition to establishing our Aoyama

strategy in this uncertain business environment, it isMilbon will continue to improve its capabilities from

Sales Office, we are planning to acquire land in the To-

important to focus on capital efficiency, or how much

both financial and non-financial perspectives to meet

kyo metropolitan area for our new Innovation Center.

profit is being generated from capital invested. We be-

the expectations of its stakeholders. We look forward

While the Central Research Institute is currently working

lieve that the introduction of an ROIC ratio will further

to your continued support.

MILBON Report 2021 : Sustainability Report

Contents

08

Sustainability Highlights 2020–2021
Environment

SocialGovernance2020 Jan.

Education and Promotion of Sustainability
Jan. 2020: Announced sustainability goals
for each department

Feb.

Feb. 2020: Made a keynote speechat the M.I.E Forum for hiring people
with disabilities

Mar.

Mar. 2020: Introduced restricted

P.20 stock compensation scheme

2020: Published the March issue of
P.21 Mar.
our internal newsletter, Yomu Milbon

Apr.
May
June

P.11

June 2020: Started low-energy
manufacturing to reduce CO2 emissions

July

May 2020: Published the May issue of
Yomu Milbon

P.13 June 2020: Launched milbon:iD
P.25

Signed the United Nations Global Compact

Stated the Milbon Health
Declaration (in-house)

July 2020: Published the July issue of
Yomu Milbon

Aug.
Sept.

Sept. 2020: Published the September issueof Yomu Milbon

Sept. 2020: Funded an
additional endowed course
at Kansai University

Oct.
Nov.
Dec.

P.10

2021 Jan.

P.12

Feb.

Dec. 2020: Received the 33rd Hiroshi Itagaki
Student Encouragement Award from The
Japanese Society for Alternatives to Animal
Experiments

Began video distribution for overseas
subsidiaries
Nov. 2020: Published the November issue of
Yomu Milbon

Dec. 2020: Released

Dec. 2020: Established the five key

P.14 a special short film “On the Way

P.02 sustainability challenges

Home from the Salon”

Jan. 2021: Launched factory energy
management systems (FEMS) in production
plants to visualize power consumption

Feb. 2021: Completed third-party

Mar. 2021: Released the 2021 Milbon
Sustainability promotional video in-house

P.20 evaluation and assessment ofMar. 2021: Recognized as“Certified Health & Productivity Management
Outstanding Organizations”

Mar.

P.25

Apr.

P.18 education:iD

Apr. 2021: Launched

May

P.12

May 2021: Installed water purifying
equipment to reduce CO2 emissions

June

P.10

June 2021: Launched RSPO-certified (RSPO
Credit) “milbon” Luxury Line

Board effectivenessMar. 2021: Appointed a female outside director

P.20 and achieved the Board consisting of one-third
outside directors

May 2021: Published Vol. 1 ofYomu Milbon 2021
June 2021: Launched

P.18 Milbon Digital Arena

R&D

売上高研究開発費率
R&D Expenditure as a Percent of Net Sales

Research and Development Systems
Contributing to Society and the Beauty Market

09

Contents

MILBON Report 2021 : Sustainability Report

Manufacturing Capital

研究開発費推移R&D Expenses (Millions of Yen)

2018

4.2

2018

1,479

2019

4.2

2019

1,534

2020

1,581

2020

4.4

（年）

Evolving our basic research and TAC Product Development System in accordance with ever-changing
markets

Evolving basic research and launching local R&D
overseas, aiming for sustainable growth

as regenerative medicine. We have also gone beyond

Milbon also considers it an important duty to contributeachieving a product lineup that better aligns with local

Milbon uses its proprietary TAC Product Development

to hairstylists and the beauty market by linking basic re-needs. We have done this by setting up R&D branch offices

System to create new products. This system harnesses

search results to the creation of new, appealing products.

in the interest of conducting research and development

the expertise and beauty techniques of hairstylists who

In our basic research, we leverage leading-edge technolo-

suited to these local needs, such as the various hair types,

combine outstanding technique and thought leadership ingies and joint research with external organizations. Going

climates, cultural atmospheres, styling cultures and legal

a number of fields, including coloring and hair care. Milbon

forward, we intend to continue linking this to our productrequirements that will vary between countries and regions.

researchers scientifically analyze this knowledge to develop

development as we incorporate new technologies, suchinnovative products.
We start by listening to the salons to discover new

From B to B to C – TAC Product Development System

MILBONplans and detect market changes that will lay the foundations for the future of the beauty market. At our institute,
we combine stylists’ successful techniques with science
to transform the sensibilities of TAC hairstylists into concrete, appealing products. This process, which we call thefusion of science and sensibility, facilitates the application

development of products for sale domestically in Japan,

Leading
Hairsylists

TAC ProductDevelopment
SystemCASE
BasicResearchat Central
Research
InstituteSPring-8
External ResearchInstitutes

of sophisticated techniques possessed by only the mosttalented stylists at each salon.
By applying these development methods, we are able
to quickly and flexibly respond to ever-changing markets
and consistently provide products that satisfy hairstylists
and the customers they serve.

Creating products for stylists, revealing the beauty of their customers

We conduct basic
research on hair using
SPring-8, the world’s
highest performancelarge-scale synchrotron
radiation facility locatedin Harima Science
Garden City, Hyogo
Prefecture.

Established R&D branch offices overseas,launching R&D tailored to each country/region
Regional R&D - North America

Regional R&D - China

Regional R&D - Thailand
Source: RIKEN*A TAC (Target Authority Customer) hairstylist is a stylist who is widely admired by our target customers.

R&D

Contents

MILBON Report 2021 : Sustainability Report

Manufacturing Capital

Research and Development Systems
Contributing to Society and the Beauty Market

10

Adoption
Rateパンフレットへのof FSC-CertifiedFSC
Paper
in New Product
商品化粧箱、認証紙採用率Cosmetic Boxes and Pamphlets (%)
2019
2020

6.5
10.8

2021

56.0

(Target)Launched society-oriented R&D with industry–academia collaboration

sale of products for which animal testing was conducted has

tend, showing a high interest in beauty and cosmetics. The

also been banned since 2013. The world is coming to follow

Cosmetology and Cosmetics course was newly created,

We are also advancing society-oriented initiatives in our

the mindset of no animal testing in developing cosmetics.

expanding the scope of the aforementioned engineering

In the interest of safety research for ensuring higher

series. It aims to generate greater interest in the beauty

development activities.
In the interest of utilizing sustainable resources, we

product safety without animal testing, we established themarket among more students and build a wider understand-joined the Roundtable on Sustainable Palm Oil (RSPO) in

Milbon Advanced Beauty Science Laboratory at the Kansai

ing, therefore broadening the scope of talent that can be2019, and as of FY 2021, a portion of our products on sale

University Center for Innovation & Creativity.

active in the various roles of beauty markets in the future.

FSC certification logo indicates that a product is derived

Received the 33rd Hiroshi Itagaki Student Encouragement Award from the JSAAE recognition of collaborative research results

we will build a research and development system that con-from forest wood that was appropriately managed. Our

In November 2020, the results of collaborative researchrate of adoption for new product cosmetic boxes was 10%

between our institute and Professor Hideki Yamamoto of thein 2020, and is expected to be 56% in 2021. We intend to

Faculty of Environmental and Urban Engineering at Kansai

raise this rate further.

University received the Hiroshi Itagaki Student Encourage-

carry the organization’s certification logo. We are also working to utilize more Forest Stewardship Council-certified paper
in product information pamphlets and cosmetic boxes. The

Furthermore, in collaboration with Kansai University, we
are advancing research on alternative methods to animal
testing.

RSPO Trademark Logo
9-2994-19-100-00

Through this sort of industry–academia collaboration,
tributes to beauty markets and society at large.

ment Award at the 33rd Annual Meeting of The JapaneseSociety for Alternatives to Animal Experiments.
In addition, Kansai University established an endowed

There are a number of cam-

lecture series on Cosmetology and Cosmetics Engineeringpaigns attempting to protectwith the support of Milbon in 2019, and in 2020, it offeredanimals against animal testinga new Cosmetology and Cosmetics course, giving broad-active around the world. In the

er-based lectures on beauty markets.

European Union, the testing of

The Cosmetology and Cosmetics Engineering series wascosmetics and their raw ma-

offered to graduate students to cultivate future researchers

terials on animals has been

in beauty and cosmetics, but a number of undergraduate

banned by law since 2009, andstudents also sent inquiries requesting permission to at-

Established the Milbon Advanced Beauty Science Laboratory at the Kansai University
Center for Innovation & Creativity

KansaiUniversity
Industry–academia
collaboration

Production System

Manufacturing Capital

Natural CapitalSocial CapitalStrengthening Productivity,
Reducing Environmental Impact, and Ensuring Safety

Contents

MILBON Report 2021 : Sustainability Report

Production Volume (Millions of yen)
2018

40,4442019

39,926

2020

38,43411

CO2 Emissions / Adjusted (t-CO2)
2019
2020

4,399
3,912

Factories conscious of quality, efficiency,
the environment, and people

as barcode readers and inspection cameras on all production

and safety. Our off-site work support and intake program forlines, and linking systems for automated warehouses, transportpersons with disabilities has attracted attention as part of Mie

At the Milbon Yumegaoka Plant, we have established a manufac-

equipment, and manufacturing equipment. We also consistently

Prefecture’s M.I.E Model (also known as the Mie Inclusive Em-

turing system that produces safe, reliable products based on Good

work to enhance productivity by improving production systems,

ployment project).

Manufacturing Practices (GMP), an international standard for the

implementing C3 activities* in which all employees get together

manufacturing and quality control of pharmaceuticals enforced

and develop ideas to improve efficiency and reduce costs.

Going forward, we will pursue greater evolutions in quality,
enhance support for overseas plants, evolve online support tech-by the World Health Organization (WHO). We have achieved both

In addition, we have established a system making employee

nology, reduce waste disposal volumes, and improve space pro-high quality and high efficiency through actions like measuringsafety and security our top priority, recognized in its ISO 45001

duction efficiency. In addition, we plan to create smart factories

the total amount of raw materials used, installing equipment suchcertification for management systems of occupational healththat make full use of IoT over the medium to long term throughthe introduction and application of robotics technology.

Features of the Yumegaoka Plant
Multi-product variable volume production / high efficiency• Three types of automated warehouses and automatic transport equipment are linked with computers, systematizing on-site logistics from the arrival of raw materials to the shipment of products.
• Uniform-shape tanks holding from 100 kg to 4,000 kg form a system enabling flexible adaptationof production volumes according to demand.
Quality management• A s a GMP-compliant plant, we pay detailed attention to quality, including eliminating windows,
installing clean rooms, and conducting zone-based management.

*C3 activities: C3 stands for Change, Challenge and Customer, and it refers to activities
that aim to enhance productivity

Striving to reduce energy consumption
through low-energy manufacturing methods
At the Milbon Yumegaoka Plant, we are taking a holistic
approach to reducing energy consumption. The Technology
Development Group, which conducts research on production
processes and develops new production technologies, has
set an annual CO2 reduction target of 5,500 kg and is proceeding with various initiatives to achieve this target. First,

Environmental consciousness

we have installed solar power generation systems at the• Our systems break down and purify factory wastewater using bacteria. We take actions in consideration of the environment by recovering and neutralizing ammonia gas generated in the production
process as well as fully treating harmful gases.
• We are also actively engaged in energy-saving activities such as installing ecological equipment, including
cold water thermal energy storage, solar power generation equipment, and wind power generation equipment.

Technology Development Center building as a measure topromote energy creation. The amount of power these systems generate is equivalent to approximately 40% of the building’s electricity consumption. For production technologies, wehave been working to develop a low-energy manufacturing

Production System

Manufacturing Capital

Natural CapitalStrengthening Productivity,
Reducing Environmental Impact, and Ensuring Safety

Social Capital

MILBON Report 2021 : Sustainability Report

Contents

12

Expected Annual CO2 Emissions Reductions
from Low-Energy Manufacturing Methods

Expected Annual Water Consumption
Reductions from Water Purifying Equipment

2,500 kg-CO

Approximately

2

1,000 tons

emissions reduction of 2,000 kg by utilizing this method in

Trials to reduce plastic use by altering container
molding methods

New hiring and cultivation of non-Japanese talent,
updating equipment for safer operation

producing some of our oxidants from April 2021. Combined

In reducing waste volumes, our action policy is to improve

As part of our initiatives toward diversity and inclusion, wewith other low-energy manufacturing methods, we plan tosales forecast precision and extend quality assurance peri-

aim to create a work environment where everyone can work

method reducing steam usage. We forecast an annual CO2

reduce our annual CO2 emissions by 2,500 kg. In the future,

ods in order to reduce waste of raw materials, products, andcomfortably. For people with disabilities, we are working to

we will achieve further reductions by expanding the scope

resources. As part of this policy, we are working to reduce

maintain continuous employment at the statutory rate of 2.3%

of products applicable to energy reduction, and beginningwaste at the time a product is discontinued by making highlyor higher, collaborating with local organizations, and using

research on the use of boiler waste heat for power generation.

precise production volume and shipment plans with a view

active participation in training and lectures to improve the skills

to discontinuation.

of employees guiding and supporting their work. In addition,

We have also installed new water purifying equipment at
our manufacturing building. By conducting a review of our

For the reduction of container and packaging materials,

with the aim of creating an environment enabling positive andwater purification methods and selecting equipment more

we are altering our container molding methods, conducting

long-term employment for diverse human resources, we aresuited to Milbon, we expect to reduce annual water usage

prototyping and studies that will lead to reduced plastic use

working to hire new talent from outside Japan with great careby approximately 1,000 tons. We have installed a factory

while cutting costs. Currently, we are looking to implement

to their cultivation, including drafting easy-to-understand man-energy management system (FEMS) to visualize power

these methods in containers for the Aujua brand. At the sameuals even for those less familiar with the Japanese language.

consumption of each area of the plant. We are using this in-time, we are conducting research on containers containing

As for the labor environment, we have achieved mechanization

formation to explore specif-

plant-derived cellulose nanofibers and verifying plastic reduc-in our Compounding (Weighing) Division that handles heavy goods,

ic energy-saving measurestion in the neck portion of refill pouches by changing the filling

enabling safer operation for workers, and we have established aand take action to reduce

method. For products using alu-energy usage further.

minum pouch containers, we are

Furthermore, we areworking to replace the materials

currently in the process

in our existing aluminum pouchesof transferring technolo-

for aluminum-metalized pouches.

gies to overseas plants,

By unifying pouch materials

and in May 2021, we for-and using a single material, we

mulated an action plan

FEMS

Test prototype for reducing plastic
in the neck portion of refill pouches
Solar power generation system

Water purifying equipment

remote work environment at the Purchasing Division.

are taking action toward higher
recycling rates.

for technology promotion
Thailand Factoryat our Thailand Factory.

Going Digital

Intellectual Capital

Promoting Digital Strategies Enabling Customer
and Society-Oriented Value Creation

13

Contents

MILBON Report 2021 : Sustainability ReportSocial Capital

Number of milbon:iD Registered Users (As of May 2021)

SalonsNumber of Customers

1,757

59,405

Steady implementation of medium-term digital strategy

creation of customer and social value by working toward DX

products in-salon. Our “milbon:iD” service was launched with

Based on its current Change the Stage—18-Month Missions!

in our business models, enabled through a fusion of customer

this issue in mind.

medium-term strategy formulated in 2019, Milbon is pushingexperiences and data accumulated from each of these sources.

digital transformation (DX) that will lead to business models

However, we are looking to use “milbon:iD” not to simply build
an e-commerce platform, but to expand the business domain ofwith perspectives on customers and society. We launched themilbon:iD—linking salons and customers

salons. Among the service and retail industry, salons are a special“milbon:iD” official online stores in 2020 as a customer touch-“milbon:iD” is an online store available exclusively to customers

kind of channel: they combine in-person services, assignment

point, and in April and June 2021, respectively, we launched anof salons dealing in Milbon products. While Milbon handles siteof a primary responsible staffer, and regular visits with a broad

education support app “education:iD” and the “Milbon Digital

operation, ordering, and delivery processes, we use a productdemographic target segment, regardless of gender or age.

Arena,” a virtual event space as hairstylist touchpoints. We are

distribution system similar to our usual sales model in which

We believe that “milbon:iD” will maximally leverage thealso enhancing our digital area marketing systems for individual

customers order through the salons they frequent, contributing

strengths of salons, becoming a key companion aiding theirsalon market analysis. Our Field Activity DX, which will serve as

to sales growth for these salons. Approximately 60% of thosecontinued future growth.

sales tools for our employees and as internal touchpoints, ispurchasing salon-exclusive products discontinue their purchases

We will work to make iD a link between salons and cus-to launch in spring 2022, and we are steadily taking measures

within one year for reasons like poor coordination of salon visits

tomers, enhancing our services and contributing to the Milbon

in preparation. Going forward, we intend to promote greaterand product depletion, as well as difficulties purchasing heavier

mission, the “realization of spiritual richness through beauty.”

The Milbon Digital Strategy
Customertouchpoints

The “milbon:iD” Mechanism
Sale

An official online store for customers
milbon:iD (Launched June 2020)
A learning tool for hairstylists
education:iD (Launched April 2021)

Hairstylist
touchpoints

A virtual space linking the world’s hairstylists to the future of beauty
Milbon Digital Arena (Launched June 2021)
Helping to solve problems through visualization of the market
surrounding individual salons
Digital Area Marketing

Internal
touchpoints

Sales tool for employees
Field Activity DX (To launch spring 2022)

Data +
Customerexperience

Promoting DX in
businessmodelsCreating
customer/social
value

Salon Customers
milbon:iD

Merchandise
shipment

Settlement
agencyPayment

Salon

InvoiceInvoice
Payment Sales distributors

Corporate BrandingIntellectual CapitalSocial Capital

MILBON Report 2021 : Sustainability Report

Branding Activities to Bring Customers Closer

Contents

14

Special Short Film
“On the Way Home from the Salon”(As of Two Months after Release)

Total Views

2.7 million
Positioning of corporate branding
in the B2B2C business model and value to be createdare building a co-creative relationship between the brandand our customers.

Special Short Filmfacturer. Though we have made a great effort to under-

Special short film: The value ofa salon visit under the new normal

stand end users through our strong relationships of trust

Since our founding, one of Milbon’s most important values

In this special short film presented by Milbon, we offer a chance
to share in the joy of meeting your new self after a haircut,
even if you are feeling a little self-conscious about it, and toshare in the new feelings felt after a salon visit.

with salons, we now think it is important to develop thishas been to “inspire beauty through hairstylists and sa-

one-way process into interactive communication. We arelons.” Our belief remains unchanged even after the drastic

therefore taking on the challenge of new initiatives to better

shift in consumer lifestyles due to the pandemic. In fact,

understand end users with the help of salons, under one

we believe that this pursuit should be even more resoluteof our mainstay brands, Aujua, which has just celebrated

during these periods.

The nature of the B2B2C model with salon-exclusive products has led to a gap between end users and the manu-

10 years on the market.

With this in mind, we posted a special short film, “On theThrough small meetups, social media, and other chan-

Way Home from the Salon” on December 21, 2020 on ournels connecting us with Aujua fans, so-called “Aujuanistas,”

official social media accounts and on YouTube. This short

we are able to elicit valuable feedback on our products.

film presents our desire to show support to people living

Among other things, such feedback deepens understandingtrue to themselves and to invite them back to the salon andthat can be leveraged in R&D. Through such measures, weenjoy the bliss of finding a hairstyle that truly suits them.
Two months since its release, the video has gained
more than 2.7 million views. Viewers offered a variety ofobservations about this short film—“it reminded me of how
exciting it is to go to a salon;” “being a hair stylist andbringing smiles on customers’ faces is wonderful!” We
believe that this short film helped people to recognize thevalue salons bring to society via beauty, and to recognize
the value that we want to create in society.

Product website: https://www.aujua.com/ (in Japanese only)

Special website: https://milbon-brand.jp/(in Japanese only)Human Resource Development

Contents

MILBON Report 2021 : Sustainability Report

Human Capital

15

採用社員数（人）Number of New Employees

Cultivating Employees Who Contribute toSociety through Beauty

2018

54

2019

61

2020

62

Overview of Human Resource Development Structure
Second-Year Activities and Beyond

First-Year Activities
Approx. 3 months

Approx. 3 months

Approx. 3 months

Understanding the Company andour business

Development of applied skills forindividual salonsSelf-analysis for improvement

Milbon Person Training
Generalcareertrack
Joining
MilbonAdvanced beauty
technique acquisition

The beauty
industry

Training for salon
problem solving
Beautytechniques

Research
careertrack

Field Persons Training

Follow-Up Training

OJT
Experience real
success andfailure in the fieldJob
assignment

Promotion Candidate Training
This training supports the growth of future Milbon
leaders and helps them understand the new
responsibilities required of them in their next role.

Product Developer Training
Cultivate an understanding of productdevelopment by experiencing all stepsof development to determine thetrainee’s suitability

About
MilbonFollow-up training is conducted in the second and fifth yearof employment, designed to support problem-solving skillsof employees who have field work experience.

Learn the necessary steps for creating Milbon productsJob
assignment

Self-Development Support System / Open Training
Any employee may opt in to these training programs basedon their desire to grow and take on new challenges.

Milbon Person Training Overview

The Milbon Way

Using The Milbon Way as a guide, trainees learn the
Company’s mission and the mindset required for Milbon
employees. Trainees also learn everything they need toknow to provide educational support to salons, from
how to use Milbon products to the beauty techniques
used by stylists at work. Proficiency is checked using
an internal certification system.

The Milbon Way is a handbook containing the core values that every employee is expected to share. It was compiledby the president himself in 2012 and has been revised in line with the times based on the theme of “continuity
and change.” All Milbon employees carry this important handbook.
In 2020, an employee awareness survey was carried out among all Milbon employees, including
those based overseas. The assessment of employees’ understanding and application to theirwork of The Milbon Way produced an average rating of 4.15 domestically and 4.20 overseas (outof 5). This result was extremely high compared to similar surveys carried out at other companies.

Human Resource Development

MILBON Report 2021 : Sustainability Report

Human Capital

Cultivating Employees Who Contribute toSociety through Beauty

Contents

16

Education and Training Expenses
per Employee (2020)

76,186 yen
Focusing on cultivation of people embodying
The Milbon Way

open training programs, establishing a mechanism wherea bird’s-eye perspective of the Company. This is so that we

employees with the desire to take on new challenges cancan achieve sustainable growth as a company and cultivate

In the people-driven beauty industry where customers areseek out growth.

next-generation leaders. In parallel with the above-men-linked to hairstylists in a tangible way, we want to maximize

We believe that emphasizing the motivation and growthtioned efforts to create transferable knowledge and skills,

the value that stylists offer. It is this Milbon belief that hasof our employees will ultimately be the driver of corporate

we are exploring the potential of fostering employees who

led to the core, people-driven business models of the Field

value, and that this is therefore an essential investment.

can play an active role in various departments and being

Person System and the TAC Product Development System,and our greatest focus is on cultivating people.

more active in job rotation.

Future goals: eliminating generational gaps
and cultivating leaders

around nine months. For the first three months, they developWith the number of consolidated employees reaching 1,000,

Launched local human resource development
operations at overseas subsidiaries

a strong understanding of The Milbon Way, and a thoroughit is critical to improve our human resource development

The number of overseas Milbon subsidiaries, and their num-

understanding of salon and hairstylist work. Over the next

methods, steadily improving the capabilities of young em-

ber of their employees, are growing as we advance withsix months, they are split into two divisions—field persons

ployees especially as their numbers increase in the Group,

our full-scale global expansion. Therefore, the localization

and research—and hone their practical skills so that theyand closing generational gaps.

of new employee hiring and employee development will be

After an employee is hired, they undergo training forcan embody The Milbon Way in each department. ThroughUntil now, while we have treasured the experience andan important topic going forward. As mentioned above, inthis training, we work to foster the ability of all employees

unique qualities each employee has cultivated in their work,

our people-driven business model, we must build a system

to think and act for themselves.

there is also the perspective that siloing of knowledge andwhere training can utilize local resources to cultivate core

As for the embodiment of The Milbon Way, we haveskills has become an issue in our personnel development

Milbon values, most importantly The Milbon Way. We havebuilt an education system that offers consistent support

for young employees. Therefore, in many of our training

begun to localize our new employee development systems

over the long term. This includes follow-up training pro-

programs, we are working to build transferable knowledge

starting with our distribution subsidiary in South Korea, andgrams, including our second and fifth-year annual training

and skills for Milbon’s employees to absorb. For our lead-looking ahead, we aim to build systems equivalent to ours

programs that follow their new hire training, and promotion

ership, we will build an environment that clearly showsin Japan in as many countries and regions as possible.

candidate training for those who are to be promoted. We

the goals to reach for and that can consistently cultivate

have also created an environment where employees canleadership talent.

grow according to their own skills with our self-development

We also believe that it is important for each employee

support system. Simultaneously, we offer Milbon-original

to gain experience in a variety of departments and cultivate

Educational Support for SalonsContents

MILBON Report 2021 : Sustainability ReportSocial Capital

Contributing to Hairstylists’ Growth andthe Creation of Social Value

Number of Participants for Salon
Education-Related Events
2018

19,392
27,936

2019
2020

8,862

17

Number of Registrants on Digital Arenaand education:iD (as of June 2021)

12,234

Helping stylists form lifelong bonds
with their customers

ing birthrates and an aging population, as well as the trend toward

increasing their repeat rates and “knowledge sales*” rates, sup-smaller market sizes for consumer activity, customers tend to

porting better productivity. In this system, we certify those who

In its support for hairstylists and salons, Milbon provides ahave longer relationships with their salons, even working with one

have acquired specialized knowledge, techniques, and counselingwide range of educational opportunities, including those insalon and hairstylist for their entire lives. In order to be attentive

capabilities via our Milbon curriculum as so-called “Sommeliers,”

beauty techniques and knowledge as well as career devel-to the lifelong needs of their customers and their beauty these

specialists in each of four categories: hair care, cosmetics, hairopment. The strengths of our educational support stems

hairstylists must be multi-talented—able to assist in everythingcoloring, and design. Those who have acquired “Sommelier” cer-not only from the universally applicable content we offer,from hair care to skin care. They also need to continue to improvetification under three or more categories may undergo further

including fundamental beauty techniques, but also from ourtheir skills, including handling the hair changes that come withtraining and be certified as a ”Beauty Sommelier.” We believe that

implementation of education programs designed to stay halfage, and counseling customers to uncover their deeper concerns.

these newly minted Beauty Sommeliers will become what we calla step ahead of the curve to cultivate best-selling hairstylists.

As a mechanism to develop these multi-talented human“Beauty Partners” to their customers, building lifelong relationships

Our vision for this kind of best-selling hairstylist is rooted inresources, we offer the “Beauty Sommelier Training System.”and bringing spiritual richness to the world through beauty. Realiz-

being multi-talented. In recent years, against a backdrop of declin-

This training supports stylists in building customer trust, thereby

ing this spiritual richness is our No. 1 key sustainability challenge.
* “Knowledge sales” refer to product sales that utilize a stylist's expertise to provide
technical information so as to better benefit the customer

What is a Beauty Sommelier?
To cultivate hairstylists with the highest degree of customer satisfaction, we seek to develop the four elements listed
below in our Beauty Sommeliers as customers’ partners:

1 A partner not just for hair, but for all aspects of beauty
communicate on styling and image,2 Can
possesses strong beauty creativity
understand motivations and underlying needs,
3 Can
and can offer proposals tailored to these needs
4 Fosters lifelong beauty from a customer perspective

ミルボン製品ができるまでの全ステップを学ぶ
Advanced Learning Process to Earn Beauty Sommelier Certification
Four categories
Hair care
Cosmetics
Hair coloring
Design logic

Three curricula

1
2
3

Sommelier certification

Knowledge

Learning: Digital Testing: Digital

Cosmetics Sommelier certification

Techniques

Learning: Digital Testing: In-Studio

Hair Coloring Sommelier
certificationCounseling

Design Logic Sommelier
certification

Learning: Digital Testing: In-Studio

BeautySommeliercertification

Hair Care Sommelier certification

Next step after
three certifications

MCM(MilbonCounseling
Method)Acquiring three Sommelier certifications
unlocks participation in MCM workshops

Courses for each of the four major categories are available in the order of Knowledge, Techniques, and Counseling. Course attendees are required to pass
the certification tests for each of the courses to proceed to the next step.

Educational Support for SalonsContents

MILBON Report 2021 : Sustainability ReportSocial Capital

18

Contributing to Hairstylists' Growth andthe Creation of Social ValueAt Milbon Digital Arena, hairstylists experienceeducation and events as avatars in a virtual space.

Digitalization to expand self-development opportunities not hindered by time or place

help salons become communities of beauty and soul inAgainst the backdrop of work style reforms, the trend of

11 (Sustainable cities and communities).

Visualizing stylist growth and management online:
education:iD

attention. While acquiring knowledge and improving skills

Milbon Digital Arena: a virtual education space

The education:iD is an online service visualizing hairstyl-

take time, Milbon has worked to make that learning time

Milbon Digital Arena is a virtual space where users can ex-

ists’ skill improvement. It assigns a user ID to each stylist

more efficient for hairstylists. We have taken steps toperience a variety of educational services and events. Theyand offers them access to online skill training courses andimplement digital education tools as quickly as possible,

can participate as virtual avatars in a three-dimensional,

records of their learning history, as well as application andeven before the COVID-19 pandemic, to establish a systemcomputer-generated virtual event space connecting stylists

payment for in-person events on the website.

offering self-development unhindered by time or place. We

around the world to the future of beauty.

four-language support.

their local areas, which we believe will contribute to Goallong working hours for stylists has attracted significant

We launched the website in April 2021 with certification

already provide two digital education support tools to thisAt Milbon, we had previously focused on in-person

curricula for Hair Care and Hair Coloring Sommeliers. Going

end: Milbon Digital Arena, which offers hands-on educa-

events like seminars and contests, with some work to-

forward, we will enhance this content further and, over time,tion in a virtual space, and education:iD, which allows 24/7

ward utilizing digital technologies. However, the spread of

unify our existing seminar and event registration services

access to digital learning content like educational videos

COVID-19 led to a number of cancelled events in 2020, andon the education:iD platform. Currently, the platform only

and manages the user’s skill improvement on a website.

given the unlikely near-term resolution of the pandemic, wehosts free videos available, but we will expand this to include

These digital programs were pre-launched in spring 2021

immediately accelerated our shift to digital toward hosting

paid video content. Furthermore, we will promote overseas

and have already attracted applications from 12,234 people.

events in the following year.

expansion, build platforms in a number of countries, andIn the future, we plan to further enhance our content. We

For Milbon Digital Arena in particular, we have createdalso expect to expand overseas with our educational efforts

a three-dimensional space with a sense of realism to instill

service targetingin the digital space, and we expect to create opportunities

presence and excitement in participants. This follows ourAsia for launchfor hairstylists to communicate with each other. This willcompany policy of making ample investment and providing

around 2022.

lead to the formation of a new educational platform forhigh-quality services. We have incorporated a number ofhairstylists.

functions into the Milbon Digital Arena. By enabling chat

These efforts not only build toward Goal 4 (Quality ed-

over voice and text, we have also devised ways to engenderucation) and Goal 8 (Decent work and economic growth)

empathy via communication between participants and toof the SDGs in the beauty market overall, but they also

accommodate users from Asia and all over the world via

contribute to local beauty markets, beginning with our

The education:iD uses a website to help hairstylists
manage their own progress.

Corporate Governance

MILBON Report 2021 : Sustainability Report

19

Contents

Improving Effectiveness and Transparency

We consider enhancing corporate governance to be of the

Corporate Governance Framework (As of March 31, 2021)

utmost importance for our management. We aim to sustain-

Governance Structure

ably grow our corporate value by increasing the transparency,

Term of Office for Directors

2 years

fairness, and effectiveness of management.

Executive Officer System

AdoptedFor details, please visit the link below for our
Corporate Governance Report.

Accounting Auditor

https://www.milbon.co.jp/english/ir/management/
management_04.html

Directors and Corporate Auditors (As of March 31, 2021)

Company with a board of corporate auditors

Voluntary Advisory Committees Established Nomination and Compensation Committees
GYOSEI & CO.

Including Three Outside Directors*1 Maximum number of directors stipulated in the Articles of Incorporation: 15*2 Maximum number of auditors stipulated in the Articles of Incorporation: 4*3 For details on how we are interpreting the corporate governance code, see the Company’s website or Corporate Governance Report
Meeting Attendance in FY 2020

Board of Directors Board of Corporate Auditors

President and CEO

Ryuji Sato

Senior Executive
Director

NoboruShigemune

In charge of FP Global Sales and Educational
Planning

13/13

Executive Director

In charge of Corporate Administration, Corporate
Masahiro Murai Strategy Development, Internal Audit, Finance,
and Cosmetics Planning

13/13

Director

Teruo Murata

13/13

Yasuhumi
TakedaKazunobu
Director
Konoike
Independent Outside Shoichiro
Director
Takahata
Independent Outside
Taizo
Director
Hamaguchi

Director

Independent Outside
Director
Corporate Auditor
Independent Outside
Corporate Auditor
Independent Outside
Corporate Auditor

Director of Development Headquarters and in
13/13
charge of Business Development
General Manager of Information System and in
13/13
charge of CS Promotion
Certified Public Accountant, President of the
12/13
Management Strategy Research Institute
Advisory Member of ITOCHU-SHOKUHIN Co.,
13/13
Ltd., Outside Director of EPARK, Inc.
External Director of Japan Finance Corporation
Tsuneko Murata Outside Director of Fujikura Ltd.
(New appointment)
Outside Director of Kakuyasu Group Co., Ltd.
Mitsuru Oshio

13/13

Number of
Corporate Auditors: 3*2

Including Two Outside
Corporate Auditors

Reason for Appointment
Ryuji Sato has wide-ranging experience in sales, product development, marketing, corporate planning, and other fields. Since his appointment as president and CEO in 2008, he has demonstrated strong leadership and contributed to the Company’s growth.
Noboru Shigemune has held positions of responsibility in many different divisions, including marketing, corporate planning, accounting,and sales, giving him abundant experience of and insight into the operations of the entire company. He has contributed to the Company’s
growth as General Manager of the sales divisions.
Masahiro Murai has served as a manager in the Company for many years, primarily in charge of administrative divisions, and he hasabundant experience and wide-ranging knowledge of all facets of administration. He is currently developing the Company’s personnel
framework and financial strategy.
Teruo Murata has served as a manager in Production Headquarters for many years and has significantly contributed to building up theCompany’s production platform. Currently, he is further enhancing production systems with an eye toward increases in the supply of
products to domestic and overseas markets.
Yasuhumi Takeda has abundant experience in and wide-ranging knowledge of product development and he has contributed to theCompany’s growth for years.
Kazunobu Konoike has a track record of developing overseas markets as president of the Company’s first overseas subsidiary, as well
as experience as Manager of Corporate Strategy Development Department.
Shoichiro Takahata has built up knowledge of finance and accounting as a Certified Public Accountant and also has a broad perspective
and abundant experience as the president of the Management Strategy Research Institute.

13/13

Director of Production Headquarters

Number of Directors: 9*1

Taizo Hamaguchi has abundant experience as an executive of a major trading company and as an executive of a food products wholesaler.
Tsuneko Murata has experience serving as legal department manager at Panasonic, as well as director and auditor of the Japan Pension
Service. She possesses experience serving as outside director of two companies listed on the First Section of the Tokyo Stock Exchange,and has experience in the areas of legal affairs, management, and auditing.
Mitsuru Oshio has served as branch manager in a number of regions across Japan, as a director of the Company since 2012, as well as(New appointment) Manager of the Corporate Strategy Development Department. From these and other roles, he has abundant experience in and a broad
insight into the Company’s businesses and business models.

Keisuke Endo

Lawyer13/13

8/8

Keisuke Endo offers legal knowledge and experience as a qualified lawyer.

YoshihikoOkuda*

Certified Public Tax Accountant

10/10

4/4

Yoshihiko Okuda offers knowledge and experience of accounting and tax matters as a certified public tax accountant.
*Information is as of the candidate taking office on March 26, 2020

Corporate Governance

MILBON Report 2021 : Sustainability Report

Contents

20

Improving Effectiveness and Transparency
Milbon appoints its first female director, with outside directors one-third of all directors

We appointed Ms. Tsuneko Murata as our first female director (outside) in March 2021. With her appointment, wehave increased the number of independent outside directors to three, now comprising one-third of the total numberof directors. We hope that each of our outside directors will utilize their experience and achievements and take aneutral, objective standpoint in providing valuable opinions and enrich the Board of Directors. All three members
have also been selected to join the Nominations and Compensation Committee, with the aim of further improving
effectiveness and transparency in strengthening our corporate governance. Currently, there are eight male andone female directors. However, female executives have been selected for our unique program for cultivating future
managers. We will continue to explore the topic of ensuring diversity.
Improving objectivity and transparency through third-party Board effectiveness assessments

Once a year, we conduct an assessment and analysis of the Board of Directors’ effectiveness. The results are sharedat Board of Directors meetings and used as the basis for discussing improvement measures. The assessment of
the Board of Directors’ effectiveness for FY 2020, conducted from January to February 2021, was outsourced toan external organization, with all directors and corporate auditors asked to complete a questionnaire. Responses
trended toward showing improvement in clarity of agenda item standards versus the previous year.
Going forward, we will continue striving to improve corporate governance by resolving the issues identified inthis assessment, and further promote management aimed at the sustainable improvement of corporate value.

In April 2020, we launched a new compensation
Directors

Fixed compensation

an update to our previous compensation system.
The new system is comprised of not only fixedcompensation but also stock compensation andperformance-based compensation. This system
was designed so that director compensation canfunction better as a sound incentive in the interestof sustainable corporate growth.

Message from the New Outside Director
Profile: An experienced manager, serving as legal department

manager at Panasonic Corporation and as director and auditorof the Japan Pension Service. She has also served as outside
director of two companies listed on the First Section of theTokyo Stock Exchange and possesses a wide range of knowledge in the areas of legal affairs, management, and auditing.

To contribute to the evolution and deepening of Milbon-style
corporate governance
As of March 2021, I have taken a new role as outside director for Milbon. Revisions to Japan’s Companies Act came into effect in 2021, with revisions also
made to Japan’s Corporate Governance Code. This has led to calls for reformin corporate governance in both form and substance. In FY 2018, Milbon introduced interviews with outside directors for Board effectiveness assessments. In
FY 2020, the Company tasked an outside body with an objective assessment.
I believe it is outstanding that Milbon is progressively taking such advanced
initiatives. I myself have also seen the Board of Directors consistently discuss
actions to take in response to issues that have been identified and show sincerity in working to improve its effectiveness. For myself, I will be proactive incontributing to a greater evolution and deepening of this Milbon-style corporate
governance.

Offer constructive opinions that lead to improved corporate value
from an outside perspective

Introduction of performance-based compensation systemsystem for directors (excluding outside directors),

Tsuneko Murata

PerformanceStockbasedcompensationcompensation• Fixed Compensation (Monetary Compensation)

Fixed amount based on position.

• Performance-Based Compensation (Monetary Compensation)

Set amount based on position and business performance multiplied by aperformance coefficient (0–200%).
Performance coefficient: A variable, performance-based figure calculatedwith the weighting of the previous fiscal year’s target achievement ratio of
60% for net sales, 30% for operating income, and 10% for profit attributableto owners of parent.

• Stock Compensation

Grant Company shares to the value of 20% of monetary compensation.

I believe the role of outside directors is to ensure that we convey needed opinions,even if management may find them difficult to hear. It is critical to be mindful tonever fall into the paralysis of a “see no evil, speak no evil, hear no evil” mindset,
and to express both aggressive and conservative opinions from perspectives
on compliance and risk management. Even from my standpoint as an outside
director, I believe it is also important to understand the situation in the field. I will
listen attentively to local input and pay close attention to the actual conditions
on the ground to offer constructive suggestions and advice.
I am committed to improving Milbon’s corporate value as well as the soundness and transparency of its management so that the Company can grow sustainably. In doing so, I hope to create a pleasant workplace for its employees
and earn the trust of all stakeholders, including shareholders, customers, salons,and business partners.

Initiatives Promoting Sustainability

21

Contents

MILBON Report 2021 : Sustainability Report

Supporting Voluntary Employee Actions
toward Sustainability

Ongoing study sessions

ESG/SDGs matrix

We ensure that all employees are offered access to our

Supporting employee activities with our internal Yomu
Milbon web magazine

study sessions on sustainability, launched in 2019. In 2019,

We regularly publish our internal online newsletter, SDGs

relates to each of Milbon’s ESG topics, providing a visual-

we held study sessions for all employees in Japan. In Janu-

MAGAZINE—Yomu Milbon. It offers readers a look at our

ization of the key issues we should be addressing. We haveary 2020, we held a study session at our Chinese subsidiary.

internal sustainability activities and gives clear explanations

established specific targets for each key issue. Up-to-date

While we had planned to also hold in-person sessions at

on sustainability-related environmental changes in society.

information on progress toward these targets is available

other overseas locations, we switched to sessions using

This is part of our efforts to support voluntary employee

online since 2020.

video and remote conferencing tools due to the spreadactions toward sustainability. In the five issues publishedof COVID-19. In addition, we provide study sessions for

in FY 2020, we covered a wide range of topics, including

our new hires during their training so that they can utilize

breakdowns of internal sustainability cases, presentations

The ESG/SDG matrix shows how each of the 17 SDGs

MILBON ESG/SDGsマトリックス（2020年～2022年版）
7つの中核主題

ESG重要課題

主な目標（KPI項目）

ミルボン

the benefits of these sessions in their post-assignmentof advanced cases in Japan and overseas, and changing

activities.

trends among stakeholders. Employees have also voiced〇

次期経営幹部の育成
企業統治

●

〇

●

取締役会の実効性評価実施方法を検討し、機能の向上を図る。継続的な改善を行う。

●

取締役の業績連動報酬を経営指標に直接連動したものに見直す
コーポレート・ガバナンス

ガバナンス

●

取締役、監査役に対して年1回以上トレーニングを実施する

〇

●

内部統制

内部統制システムをより機能させるための体制の確立（規程の見直しを含む）
代表取締役、担当取締役による機関投資家との対話推進。

〇

IR（投資家との対話）

四半期ごとに機関投資家との対話内容をIRレポートにまとめて取締役会で報告

〇

●

〇

●

●

各調査機関からのESG調査に適宜回答することで、会社のESGに関する現状を把握するととも

組織統治に、各投資家からの期待を把握する。
サステナビリティ基本方針の策定

their suggestions for future topics, illustrating theimpor- ：監修）
（笹谷秀光氏

サステナビリティマネジメント体制の確立
サステナビリティ・マネジメント
サステナビリティ教育
統合報告書の発刊

tance of the publication. We have updated our topics for2021 and continue publishing new content in our magazines.

2020年〜2022年目標

社外取締役を3名に増員する

ESG/SDGs

マトリックス●=直接的に関連があると考えられる。 〇=間接的に関連があると考えられる。

SDGs 17目標との関連
E SG

有効なリスクマネジメント体制の確立
リスクマネジメント

BCP管理

コンプライアンス

公正な事業慣行

コンプライアンス対応力の強化

公正な取引の遵守

反社会勢力の排除

人権の尊重

反社会勢力の排除指針の策定

●

〇

●

リスクマネジメント体制をより実効性のあるものに強化する。
生産本部におけるBCPの確立〇

各部門におけるBCPの検討

〇
〇

●

●

〇

〇

〇

●

全社安全衛生委員会の継続実施〇

安全運転活動の推進

全社事故発生率〇〇％以下〇

ミルボンCDPの作成（ Carrer Development Program）
製品の安全性確保
経時、衝撃試験の体系化

WE Bサイト等を通じた企業理念の伝達

経営理念の訴求

ビジネスモデルへの理解促進

持続可能な消費環境配慮型容器などの開発

消費者に対するサービス支援

消費者目線の情報提供

製品の求めやすさ

購入経路の多様化

消費者データ保護およびプライバシー

データセキュリティとＰＢ保護

消費者教育および意識向上

消費者への美を通じた教育

多様な手段を用いた美容技術および知識の提供

ヘアドネーション活動の支援

イベント開催等による支援実施

各ブランドにおける容器資材の再検討と実装
アクセスしやすいBtoBtoCコミュニケーションツールの検討

E Cサイトの普及
個人情報データのセキュリティ強化

ゆめが丘エリアの地域活動支援

地域創生イベントへの積極的な参画と環境保護活動

各拠点地域社会における関係強化

地域美容室とのコラボレーションイベントの実施と地域貢献

セールスプリーチャーやサロンの異業種との繋がり スペシャリストカリキュラムを通じたオーガニックや美と健康、サスティナブルなコミュニティ確立

フォトレボ学生部門の活性化等を通じた教育支援

産業廃水のクリーン化

管理状況の調査、排水の無害化度合いを数値化、排水の回収業者の監査

大気汚染物質の無害化

〇

●

●

安全な職場環境の整備事業所(営業所等)排水のクリーン化

〇

〇

●

●

●

●

汚染の予防

〇

●

人権方針の策定
社内人権啓発運動の内容検討

美容学校への教育支援

〇

●

●

所定外労働時間の短縮、有給取得率70％以上

コミュニティと教育●●●

ミルボン健康宣言の策定と発信

コミュニティと地域活動

●

〇

〇

関係法令の把握と、対応プログラムの作成

サプライチェーンマネジメントシートの完成と、取組課題抽出

オーガニックを通じたコミュニティ●●

健康宣言の策定

コミュニティと「美」

コミュニティ

〇2020年度より発行を始め、継続して統合報告書を発刊する

CSR調達の推進

労働時間短縮・有給取得の促進

多様なキャリアパスモデルの実現

消費者課題

●

新入社員、海外駐在社員向けSDGs勉強会の実施

反社会勢力の排除指針の策定

人権方針の策定
社内人権啓発運動の実施

人権侵害加担の回避

従業員の健康・安全〇〇

原料調達のサプライチェーンマネジメントの実施 サプライチェーンマネジメントシートの完成と、取組課題抽出

あらゆる差別の禁止

人権●

サステナビリティ推進体制の確立
国連グローバル・コンパクトに署名する

階層型、部門別研修、従業員意識調査の継続実施

取引に関する法令の遵守と、社内浸透

サプライチェーンマネジメント

●

〇

〇

●

●
〇

〇
〇

●

Hidemitsu
SasayaCSR/SDGs
Consultant

カラー剤の下水廃棄のクリーン化方法の検討
生産工程における大気汚染物質の種類と対策を検討、排出状況の数値化

廃棄物の責任ある取り扱い

廃棄量と方法の把握

原料のトレーサビリティ確保

サプライチェーン詳細状況把握(Produced under
the direction of Hidemitsu Sasaya)
持続可能な原料調達

使用量が多い、もしくは製造に不可欠な原料とその持続可能性を把握

持続可能な資材調達

持続可能な資源の利用

Sustainability study session held January 2020 (Shanghai)

Topics encourage all employees to take ownership of social issues.

使用量が多い、もしくは製造に不可欠な資材とその持続可能性を把握

資材の脱プラスチック化、省プラスチック化 容器の省資源化、新資材の研究
持続可能な販促等製作物の提供

FSCマーク資材の使用、デジタル化移行の検討

Check below for details regarding the ESG/SDG matrix(in Japanese only):https://www.milbon.co.jp/pdf/esg-sdgsmatrix.pdf

Financial Highlights

22

Contents

MILBON Report 2021 : Sustainability Report

Sales by Segment (Millions of Yen)

Composition of Sales (Japan and Overseas) (Millions of Yen)

Permanent
Wave Products
1,372(3.8%)

Sales
overseas
5,844(16.4%)

Hair Coloring
Products
12,594(35.3%)

Cosmetic Products 360 (1.0%)
Other
262 (0.7%)
Net Sales
35,725

Hair Care
Products
21,135(59.2%)Net Sales
35,725

Sales
in Japan
29,880(83.6%)

11-Year Financial Summary
2010

2011

2012

2013

2014

2015

2016

2017 ※12018 ※2

2019

2020

Operating results (millions of yen)
Net sales
Gross profit
Operating income
Ordinary income
Profit attributable to owners of parent
Net assets
Total assets

19,74913,002
3,578
3,327
1,831
17,69920,843

20,526
13,620
3,792
3,545
2,304
19,05922,592

21,887
14,833
3,986
3,735
2,128
20,367
23,662

23,82916,174
4,302
4,059
2,516
22,14926,321

25,226
17,281
4,451
4,218
2,621
24,10428,13827,377
18,681
4,727
4,427
2,950
26,21230,79929,134
20,100
5,113
4,733
3,069
27,70632,44433,456
22,797
5,345
4,997
3,817
31,10337,64233,882
22,189
6,260
5,811
4,495
33,151
39,63436,26623,711
6,751
6,231
4,517
35,882
41,91235,72523,385
6,394
5,791
4,204
36,30843,075

Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Depreciation
Capital expenditure

2,433
(727)
(688)
1,010
940

3,157
101
(836)
1,014
528

2,977
(1,506)
(910)
952
840

3,511
(1,198)(1,387)
882
1,680

2,766
(1,236)(1,052)
1,008
1,028

3,895
(2,834)(1,135)
1,038
2,779

3,355
(4,366)(1,262)
1,083
4,262

4,346
(1,919)(1,317)
1,278
1,570

6,487
(1,202)(1,639)
1,380
1,149

4,486
(2,777)(1,869)
1,493
1,605

6,548
(161)
(3,416)
1,609
1,917

Per-share information (yen) *3
Earnings per share
Net assets per share
Dividend per share

55.36
534.9422.73

69.68
576.2626.67

64.35
615.8427.50

63.69
563.4828.33

80.03
736.0534.00

90.10
800.51
37.00

93.73
846.1639.00

116.58949.9946.00

137.31
1,012.58
54.00

137.99
1,096.02
56.00

129.24
1,117.10
56.00

84.9
10.7
8.9
65.8
18.1
16.8
9.3
41.1

84.4
12.5
10.6
66.4
18.5
17.3
11.2
38.3

86.1
10.8
9.2
67.8
18.2
17.1
9.7
42.7

84.1
11.8
10.1
67.9
18.1
17.0
10.6
37.1

85.7
11.3
9.6
68.5
17.6
16.7
10.4
42.5

85.1
11.7
10.0
68.2
17.3
16.2
10.8
39.3

85.4
11.4
9.7
69.0
17.6
16.2
10.5
41.6

82.6
13.0
10.9
68.1
16.0
14.9
11.4
39.5

83.6
14.0
11.6
65.5
18.5
17.2
13.3
39.3

85.6
13.1
11.1
65.4
18.6
17.2
12.5
40.6

84.3
11.6
9.9
65.5
17.9
16.2
11.8
43.3

Financial indicators (%)
Equity ratio
Return on equity (ROE)
Return on assets (ROA)
Gross profit margin
Operating margin
Ordinary margin
Net profit margin
Dividend payout ratio (Consolidated)

Notes: 1. FY 2017 was an irregular accounting period consisting of 12 months and 11 days from December 21, 2016 to December 31, 2017. As for consolidated results, overseas subsidiaries used a 15-month accounting period from October 1, 2016 to December 31, 2017.
2. Because the Company implemented the early adoption of the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 30, 2018) and the associated Implementation Guidance (ASBJ Guidance No. 30, March 30, 2018) from January 1, 2019, FY 2018
results have been restated in accordance with the new standards.
3. In per-share information (yen), information for earnings per share and net assets per share retroactively reflect three stock splits implemented during the 11-year period. The details of these stock splits are as follows:
1) A 1 for 1.1 split implemented on December 21, 2010. 2) A 1 for 1.2 split implemented on December 21, 2013. 3) A 1 for 2 split implemented on January 1, 2018.

MILBON Report 2021 : Sustainability Report

Contents

23

Non-Financial (Environmental/Social) Highlights

Non-Financial Data

Environment

Unit
Energy consumption: Crude oil equivalent
Energy: Intensity*

1

2,215

2,134

kL/million yen

0.073

0.071

t-CO2

4,399

3,912

t-CO2/million yen

0.145

0.131

CO emissions (adjusted)
Electricity consumption

MWh

6,442

6,190

1

Electricity intensity*

MWh/million yen

0.212

0.207

Water consumptionm3

41,76740,445m3/million yen

1.374

1.354

Water consumption: Intensity*1

Society

2020

KL

2

CO2 intensity*1

2019

Unit

2019

2020

Number of employees (Consolidated)

910

975

Number of new employees

6162% of female employees

%

37.7

39.6

% of female managers

%

10.5

11.9

% of employees with disabilities

%

2.67

2.44

Turnover rate

%

2.00

3.02

Education and training expenses per employee*2

Yen

101,588

76,186

Number of beauty studios (Owned by Milbon)

Locations25

27

27,936

8,862

Number of Twitter followers

Approx. 90,000

Approx. 122,000

Number of Instagram followers

Approx. 30,000

Approx. 50,000

74,671

72,497

Number of salon education event participants*3

Number of FYB magazine views*

4Page views per month

About the Scope of Reporting• Data is listed from FY 2019, aggregated in anticipation of
publication of the 2020 integrated report.

• Energy consumption, CO2 emissions, and electricity con-sumption figures aggregated from FY 2019 and onward are
calculated as a total from all locations in Japan.
• Water consumption is calculated solely from plant usage.
We plan to enhance the data and scope of our reports going
forward.
*1 Each intensity value is calculated based on domestic sales revenue.
*2 Due to impact from the COVID-19 pandemic, education and training
programs were postponed and limitations were placed on movements
for these programs. Therefore, actual values including travel and transportation expenses were greatly decreased.
*3 Due to impact from the COVID-19 pandemic, events were canceled or
postponed. Therefore, actual values were greatly decreased. We are
currently expanding online events.
*4 The calculation method for this data has been changed since the previous
fiscal year’s integrated report. It has been changed from the number ofpage views during the month in which the integrated report was issued
to the average monthly page views for the year.

24

Contents

MILBON Report 2021 : Sustainability ReportCompany Overview and Stock Information(As of December 31, 2020)

Company Overview
Trade Name

Milbon Co., Ltd.

Established

July 1960

Capital

2.0 billion yen

Number of
Employees

Non-consolidated: 765
Consolidated: 975

Head Office

Kyobashi Edogrand, 2-2-1 Kyobashi,
Chuo-ku, Tokyo

Central Research Institute2-3-35 Zengenji-cho, Miyakojima-ku, Osaka

Branches

Saitama, Tokyo Aoyama, Tokyo Ginza,
Nagoya, Osaka, Hiroshima, Fukuoka

Sales Offices

Sapporo, Sendai, Niigata, Yokohama,Kanazawa, Shizuoka, Kyoto, Kobe,
Okayama, Matsuyama, Kumamoto

PlantsYumegaoka, Thailand

Subsidiaries

MILBON USA, INC./
Milbon Trading(Shanghai)Co., Ltd./
Milbon Korea Co., Ltd./MILBON(THAILAND)Co., LTD./MILBON MALAYSIA SDN. BHD./MILBON VIETNAM CO., LTD./MILBON SINGAPORE PTE. LTD./
Milbon (Zhejiang) Cosmetics Co., Ltd.

Representative
OfficesTaiwan, Hong Kong, Turkey, Indonesia,
Philippines, Europe

Stock Information
Stock listing
Stock code
Total number ofshares authorized
Number of shares
outstanding
Number ofshareholders

Principal Shareholders
Tokyo Stock Exchange,
First Section
4919

Number ofshares held
2,420,800

Shareholding
ratio
7.45 %

120,408,000

Konoike Asset Management Company

1,920,000

5.91 %

33,117,234

Keiko Murai

1,383,624

4.26 %

Maiko Kitajima

1,382,424

4.25 %SMBC Trust Bank Ltd. Designated Securities Trust

1,328,000

4.09 %

Custody Bank of Japan, Ltd. (Trust Account)

1,239,800

3.81 %SSBTC CLIENT OMNIBUS ACCOUNT

1,161,825

3.57 %

978,956

3.01 %

11,242

Shareholder
The Master Trust Bank of Japan, Ltd. (Trust Account)

MILBON Cooperating Companies Shareholding
J.P. MORGAN BANK LUXEMBOURG S.A.384513

965,000

2.97 %

Sumitomo Mitsui Trust Bank, Limited

934,400

2.87 %

Note: Shareholding ratios have been calculated based on the total number of shares outstanding excluding
treasury shares (614,837 shares).

Shareholding Ratio by Type of Shareholder
Share Price and Trading Volume

Share Price and Trading Volume

Foreign
Institutions
and Individuals
25.36%

(Yen)
7,000

Financial
Instruments
Business
Operators
0.98%
Financial Institutions
30.94%

Individuals
and Others
30.08%

Other
Companies
12.64%(Number of shares)
3,600,000

Share price
Trading volume

6,000

3,000,000

5,000

2,400,000

4,000

1,800,000

3,000

1,200,000

2,000

600,000

0 Dec.
2015

Dec.
2016

Dec.
2017

Dec.
2018

Dec.
2019

Dec.
2020

Mar.
2021

0

MILBON Report 2021 : Sustainability Report

Contents

25

Company Overview and Stock Information

External Assessments
Our unique business model wins the Porter Prize

Cooperation with the International Community
Joined the United Nations Global Compact

Milbon was awarded the Porter Prize 2020, a program spon-

Recognized as a “Certified Health & Productivity
Management Outstanding Organization” for 2021

sored by the School of International Corporate Strategy,

Milbon has been certified as an excellent corporation under

The UNGC is a voluntary initiative to encourage businesses

Hitotsubashi University Business School.

In May 2020, Milbon joined the UN Global Compact (UNGC).

the Certified Health & Productivity Management Outstand-worldwide to adopt sustainable and socially responsible

Since our establishment in 1960, we have been con-ing Organization Recognition Program for 2021 jointly im-

policies. As a signatory working to resolve social issues

sistently focused on stylists and salons. Revenues haveplemented by the Ministry of Economy, Trade and Industry

alongside salons and hairstylists based on the Milbon Basic

increased for 24 consecutive years since the Company's

and the Nippon Kenko Kaigi (Japan Health Council). In

Policy for Sustainability, we contribute to creating a sus-

listing to 2019, and Milbon has been recognized for the2020, we issued the Milbon Health Declaration, which seeks

tainable society by adhering to 10 UNGC principles related

uniqueness of its business strategy which supports thisto create a work environment where each employee canto human rights, labor, environment, and anti-corruption.

level of growth and maintains high profitability.

enjoy long-term employment in good mental and physical

Going forward, we will continue to use a business model

health and find fulfillment in their work. Beyond our pre-focused on stylists and salons and contribute to the real-vious efforts in the interest of employee health, we haveization of a rich society through beauty.

also taken actions amid the COVID-19 pandemic, including
implementing systems to promote preventative measuresand sharing information on health management. Goingforward, we will continue to work toward health and productivity management encouraging vitality and motivation
among our employees.

Ryuji Sato, President and CEO