YOKOREI Integrated Report 2021
Fiscal Year Ended September 30, 2021

YOKOREI Business Features
Corporate Philosophy

Refrigerated Warehousing Business

Food Sales Business

YOKOREI Business Vision 2030 – Aspiration

YOKOREI Business Vision 2030 – Aspiration

Since our founding, YOKOREI has acted upon the policy that “companies are social institutions andprofits are a measure of their service” and we aim to be a company that is loved by our customers andour region.

—Y OKOREI was launched with the goal of being a company that benefits society.
—W e position profits as a measure of our service to society.
— F or us, “service” means fulfilling our social responsibilities by incorporating “customer
satisfaction,” “activities that contribute to local communities,” and “environmental
conservation activities” into all of our business activities.
Our mission is to become ever more meaningful as a company that can contribute to social development
both in Japan and overseas through our business activities.

Contents
YOKOREI Business Features�����������������������������������

1Compliance and Risk Management���������������������� 19

YOKOREI Value Creation Process��������������������������

2

Environmental and Social Initiatives��������������������� 20

Risks & Opportunities, Response Measures,
Materiality��������������������������������������������������������������

4

Message from the President����������������������������������

6

Overview of the Medium-Term Management
Plan (Phase )����������������������������������������������������������

8

Financial Strategy��������������������������������������������������� 11

Refrigerated Warehousing Business – 2030 Vision

Food Sales Business – 2030 Vision

We promise to provide
smart cold services
combining tradition and innovation.

We will realize distinctive food value
together with customers,preserve our close relationship with producers,
and add to the richness of the world’s tables.

YOKOREI and its network of overseas subsidiaries provide
refrigerated and frozen warehousing for marine, agriculturaland l­ivestock products, along with related businesses.

YOKOREI and its subsidiaries in Japan and overseas provide
processing, sales, and import/export services for marine,
agricultural, and livestock products.

Composition of Sales (FY9/21)

Composition of Sales (FY9/21)

Financial and Non-Financial Highlights���������������� 24
Refrigerated
Warehousing Business

Main Consolidated Financial Indicators���������������� 26
Share Trends by Business��������������������������������������� 28

25.5%

Stock Information�������������������������������������������������� 29

Food Sales BusinessNote: Revenue from Other
Businesses segment excluded

74.5%

Note: Revenue from Other
Businesses segment excluded

Corporate Data������������������������������������������������������� 30

Business Review������������������������������������������������������ 12
Corporate Governance������������������������������������������� 14
16
Message from an Outside Director������������������������������������������ 18
Directors, Auditors and Corporate Officers����������������������������

About this report
This report has been prepared to help our stakeholders better understand our medium- to long-term growth strategy. In line with this goal,
this report presents information on financial factors, including financial performance and corporate strategy, as well as non-financial factors,
such as information on governance reform, environmental and social matters, in an integrated fashion.
In preparing this report, we have made reference to the Global Reporting Initiative (GRI) standard and international reporting frameworks,
including those provided by the International Integrated Reporting Council (IIRC).
* In June 2021, IIRC and SASB were reorganized as the Value Reporting Foundation (VRF).

Industry-Leading Storage Capacity and Rate of Adoption of
Natural Refrigerants
Proactive capital investment is an integral part of YOKOREI’s
growth strategy. We currently have over 1.0 million tonnes ofstorage capacity worldwide and a rate of adoption for naturalrefrigerants of about 64%. This extensive storage capacity allows
us to maintain our position as an industry leader, and supports
stable growth.

Refrigerated Warehouse Storage Capacity
Proportion of Natural
Refrigerant Use – Approx. 64%(Thousand tons)

1,200
1,000

Product Procurement Capabilities to Meet Diverse Needs
One of YOKOREI’s strengths is the procurement capabilities
provided by its extensive trading network, allowing us to respondaccurately to product needs in Japan and overseas. We importproducts from around the world, mainly Northern Europe andSoutheast Asia, as well as Russia, North America, South America,and Australia. We also procure domestic products from acrossJapan, mainly through our sales offices in producing regions, andsupply them to our trading partners in Japan and overseas.

The YOKOREI Group’s Principal Overseas Network

Storage Capacity –Approx. 84% Increase

Salmon(2000-2021)

Crab

Mackerel

800

Salmon
Pork

600

Crab
FlatfishAtkamackerelMackerel

400

Shrimp

Crab

Pork
Beef

Chicken

Scallop Eel
Chicken

Pork

200

Chicken

Beef

0

2000

2005

2010

2015

2020

2021

YOKOREI Capacity (CFCs)
YOKOREI Capacity (Natural Refrigerants)
Note: YOKOREI capacity figures for both CFCs and natural refrigerants include overseas facilities.

SalmonImportExportYOKOREI Integrated Report 2021

1

YOKOREI Value Creation Process
YOKOREI conducts business to ensure a stable food supply for Japan, contributing to environmental
responsiveness and communities. By utilizing its accumulated resources to the greatest extent possible andaddressing a broad range of social challenges, YOKOREI generates social and economic value.

Inputs (FY2021)

Business Model

OutputOutcome Solar power generating capacity: 19
locations, 6.5 MW Construction of eco-friendly logistics
centers CO2 reductions: 2,220 tonnes annually Increase handling volume of ASC and
CoC certified marine products.

 Natural refrigerant implementation
rate: 64% Green management certification:
Japan Association of Refrigerated
Warehouses

FY2021 Net Sales

Refrigerated Warehousing Business Refrigerated Warehousing
Business ¥28.2 billion
 Food Sales Business ¥82.4 billion Acquire CoC certification for morebusiness offices.
 Full utilization of non-edible portions offarm-raised salmon trout (supplements,
fish meal, raw material, etc.)

Customs
Clearance
Freezing

Manufacturing CapitalR efrigerated warehouses: 49 locations in Japan, five in Thailand, total
storage capacity 1.05 million tonnes Sales business: 27 locations in Japan, one in Thailand

Refrigerated
Warehousing Business
25.5%

Warehousing

Sorting

Storage

Shipping

DeliverySales
Breakdown Norway salmon trout farm production: approximately 10,000
tonnes annually Top market share in Thailand for trade refrigerated
warehousing (30 years since launch)

Food Sales Business
74.5%

 Marine products buying rights (Tohoku and Kyushu offices) Ownership of difficult-to-acquire Norwegian salmon
trout farm (Hofseth Aqua AS)

Harmony with the Global
Environment

Varied service lineup Domestic (Kyushu) and overseas fish farming business

Development Capital

Food Sales Business Capital investment: ¥13.7 billion

Create a Rewarding
Workplace EBITDA: ¥9.2 billion Proactive adoption of new IT system,
first in industry Construction of new logistics centersat a pace of one center per year

Provide Better Quality
and Service

Planning andDevelopment

Cultivation /Procurement /Production

Processing /Manufacturing

Sales

DeliveryFood Sales Business

Human Resource Capital 1,652 employees

Develop together
with Communities Human resources supporting “Yokorei
Quality” Localized operations in Thailand(Major distribution center manager and all
employees are Thai nationals)

Strengthen the Business
Foundation and Ensure
Soundness
Social and Relationship-Related Capital

Refrigerated Warehousing Business

Materiality¥110.7 billion

Logistics Outsourcing Service
YLS (YOKOREI Logistics System)• Customs Clearance Service• Storage Operations• Delivery Service
ICT Service
YIS Service:
YOKOREI Information System• Loading and unloading
records• Real-time customs clearance
status and inventory data
computers in real time

The Medium-Term Management Plan (Phase ) “The Power to Create”

Natural Capital

Natural Capital Solar power generating capacity: 21 locations,
7 MW CO2 reductions: 3,200 tonnes annually Natural refrigerant implementation rate: 70%
 Continue acquiring green management
certification for all refrigerated warehouses

Manufacturing Capital Refrigerated warehouses: 52 locations in Japan, fivein Thailand, total storage capacity 1.1 million tonnes Sales business: 30 locations in Japan, one in Thailand Expanded original product sales Development of original products Expanded sales channels in ASEAN region Construction of new logistics centers Additional facilities in ASEAN region
to establish a temperature-controlled
logistics network Advancements in automation

Development Capital EBITDA: ¥11.0 billion Capital investment:¥30.0 billion (over three years) Investment in IT and robotics:¥0.6 billion (over three years)

Human Resource Capital

Vision 2030

For a brighter
food future Deep cultivation of employee operations

Marine Products Business
Livestock Business
Agricultural Produce Business Enhance value by securing and training
specialist personnel Proportion of employees who express job
satisfaction of 80% or higher

Social and Relationship Related Capital

The Business Foundation that Supports YOKOREI Quality Production, sales, and logistics business offices
throughout Japan, from Hokkaido to Kagoshima Business partner network in Japan and overseas

Three Reform

EnginesOrganizational

Reform Entry into the ice-making business

Financial Capital Maintain long-term, stable dividends

 1% of profit donated to charity

Consciousness Reform
Financial Capital No loss posted since listing Stable capital supported by closely connected
Refrigerated Warehousing and Food Sales businesses

Management mindful ofcapital efficiency andfinancial soundness

Promote mutual ties
sectors, and continue
down barriers between

between businessmeasures to break
departments

System Reform
Create structures to develop the next
generation of managers and professionals

Economic Value Net sales: ¥120.0 billion Operating income: ¥5.0 billion Long-term, stable dividends

2

YOKOREI Integrated Report 2021

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Risks & Opportunities, Response Measures, Materiality
YOKOREI has determined the risks and opportunities for its business from issues currently facing society,and identified the important management issues (materiality).

Social Theme

Climate change

Natural disasters

Economic situation andthe business environment

Securing human resources

Product quality and safety

4

Risks & Opportunities ( = Risk,  = Opportunity)

Principal Measures Decrease in fish catches and production volume due tochanges in the natural environment, outbreaks of diseaseor pests Increase in procurement cost of farmed fish and livestock
due to rise in feed costs (plants, animals) Decline in storage demand for marine, livestock, or
agriculture products Increase in refrigeration costs (electricity rates) due tohigher temperatures Increase in electricity rates as a result of climate change
regulations Greater opportunities for environment-friendly
management (facilities) Increase in warehouse utilization and operating rate due
to preference for companies that emphasize
environmental considerations
 Decrease in energy costs from use of energy-efficientequipment Production of environment-friendly farmed
fish (acquire ASC certification)
 Decentralization of business base (suppliers,
production/storage) Proactive introduction of energy-efficientequipment to reduce greenhouse gas
emissions Installation of rooftop solar panels toincrease generation of renewable energy Switch to renewable energy Switch to natural refrigerants to reducegreenhouse gas emissions Decrease in marine, livestock, or agriculture products Interruption of logistics function Increase in demand for disaster-resistant facilities Formulate BCP Construct natural disaster-resistantrefrigerated warehouses Develop aquaculture business in countries
and areas with few natural disasters Develop new suppliers and production
centers (diversification of risk)

Harmony with the Global
Environment

Create a Rewarding
Workplace Decrease in storage volume due to freight owners
strengthening their inventory management Increase in food material purchase price Changes in tax rates Companies from other industries entering thetemperature-controlled logistics market Increase in food storage demand with enhanced
processing of frozen foods Increase in demand for facilities with exceptional logistics
efficiency Greater logistics demand with increase in e-commerce Build refrigerated warehouses Accumulate information Acquire certification under theComprehensive Logistics Efficiency Act Provide consolidated, multi-distribution
logistics
 Expand Customs Clearance Business Division Difficulties continuing refrigerated warehouse business Construction delays Cost increase Intense competition to hire and retain workers due toJapan’s decreasing birthrate and aging population, andpopulation decline Proactively introduce systems for laborsavings and automation
 Formulate long-term refrigerated warehouse
construction plan Support creation of workplaces comfortablefor women and many types of employees Strengthen internal education system Promote DX Decline in consumer trust in brand Gain in consumer trust in YOKOREI quality

Materiality

Provide Better Quality
and Service

Develop together
with Communities Implement food defense measures at all
business locations
 Quality control through employee operations
 Management through the Food Quality
Control Department

Strengthen the Business
Foundation and Ensure
Soundness

YOKOREI Integrated Report 2021

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Message from the President

Hiroyuki Matsubara
President andRepresentative Director

YOKOREI contributes to a safe, secure, and stable supply offood as experts in food distribution that is kind to people,
things, and the globe.
Since our founding more than 70 years ago in 1948, we at
YOKOREI have remained true to our corporate principles,always aware that we are a company that exists for thecommunity and fulfilling our role as a corporation that
supports Japan’s dietary life.
Food distribution has recently been undergoing majorchanges, and the means of distribution have become
increasingly diverse, as the way that people purchasegoods has been shifting from store-based shopping tointernet shopping (e-commerce) and home delivery.
Corporations, too, have left far behind the days when we

6

pursued profits alone to instead place priority on global
environmental issues and thus achieve business
management that is sustainable and in harmony withsociety through our social contributions and corporate
governance.
YOKOREI has continued to pursue business activities thatare kind to the environment and that protect food stability
in Japan by valuing our connections to local communities.
In our ongoing efforts to support Japan’s dietary life, weare striving to make further progress toward enriching theworld’s dining tables.

As for the current business environment that the Groupis operating in, COVID-19 vaccinations are spreading, and
it is expected that the business environment will also start
to recover. Even so, the state of infections, such as spreadof variants and breakthrough infections, is continuallychanging, and it is necessary to still pay close attention to
conditions.
It is also important to resolve numerous issues so thatcompanies can generate sustainable growth, and theseinclude ones related to environmental measures, such as
the movement toward decarbonization to put into effect
the government’s 2050 Carbon Neutral declaration, fallingbirthrate and graying of society, and work style reforms.
In 2020, the Group announced the YOKOREI Business
Vision 2030 and YOKOREI Sustainability Vision 2030, thelong-term direction the Group is moving over the coming
decade through 2030, and formulated a medium-term
management plan (phase 1) “The Power to Create,” thefirst stage toward realizing this vision that extends through2023. With the goal of “creating a business model” for the
Refrigerated Warehousing Business and “creating new
food value” for the Food Sales Business, we are working
to implement priority measures to achieve not only thequantitative targets but also the sustainability targets by
the final year (FY2023).
For the Refrigerated Warehousing Business, we will workto generate sustainable growth by aggressively investing¥30.0 billion over three years, which includes building new
refrigerated warehouses, the core of the Group’s profits.
Expecting continuing growth in demand for refrigerated
warehouses due to greater use of frozen foods ande-commerce, we will continue to build new refrigerated
warehouses at logistics centers and expand our network of
refrigerated facilities. Investments will also be made in DX
and IT robotics in order to reduce labor and personnel,
increase energy efficiency, and promote diversity.
For the Food Sales Business, we will work to generate
sustainable growth by building a stable food resource
procurement and supply network.
During the COVID-19 pandemic, purchasing costs
overseas have risen for various reasons, including a decline
in production volume caused by worker shortages andincrease in shipping costs due to a scarcity of oceancontainers. On the other hand, in Japan, conditions are
such that it is difficult to pass on price increases to selling
prices, making it important to secure stable resource
purchasing routes. Therefore, we will not only focus on our
unique business product-related efforts that employ ourown procurement and sales channels but also move

forward with securing resource procurement routes andexpanding sales channels, including exports, both in Japanand overseas. Overseas, we will secure marine resourcesthat possess added value, such as Norway salmon, and inJapan, we will build cutting-edge sorting and freezing
facilities in leading fish landing ports and establish abusiness model in which we conduct the whole processfrom purchasing marine products to freezing, storing, andselling them.
As a food-related company, we know that the risks andopportunities of climate change are a key management
issue. Based on the recommendations of the Task Force on
Climate-Related Financial Disclosures (TCFD), we haveassessed the risks and opportunities from the impact ofclimate change and have set “Harmony with the Global
Environment” as one of the key materialities, or themes, inrealizing sustainable growth of the Company, and we are
expanding our initiatives for the future growth of ourbusiness. A specific initiative right now is to reduce ourgreenhouse gas emissions per storage capacity by 40%
from 2015 levels and to attain a natural refrigerant
implementation rate of 80% or higher utilizing energy
more efficiently. This will be done by reducing ourconsumption, using more renewable energy, andtransitioning to natural refrigerants.
Also, in the area of governance, we have established a
Sustainability Committee that the President andRepresentative Director chairs, we have implemented the
PDCA (plan-do-check-adjust) process, and our Board of
Directors has set up a structure for identifying andmonitoring the status of our risks and opportunities.
While broadly expanding business, we will take into
consideration environmental and social problems, actively
work to achieve sustainable development goals (SDGs),
and contribute to a safe, secure, and stable supply of foodas experts in food distribution that is kind to people, things,
and the globe with an eye toward the 80 and 100 year
anniversary of the founding of the Company.
I humbly ask all of you to bestow us with your firm support.

Hiroyuki Matsubara
President andRepresentative Director

YOKOREI Integrated Report 2021

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Overview of the Medium-Term Management Plan (Phase )Review of the Previous Medium-Term Management PlanYOKOREI Business Vision 2030 —Quantitative Targets—

The supply-demand balance for refrigerated warehouses was tight, and the global business environment
for food procurement and sales weakened. YOKOREI will streamline and restructure the food sales
structure to achieve the next stage of growth.

Previous Medium-Term Plan Policy

Refrigerated Warehousing
Business
Actively pursue initiatives tostrengthen our capability to meet
refrigerated network needs, andenhance efficiency in lowtemperature logistics

Result(1) N etwork base built to meet
diversifying customer needs, andprovide optimal logistics services
with value-added operations.
(2) Introduction of ICT has reduced lost
time, and contributed to laborsavings (cargo navigation system,
truck reservation system, worksite
support system, etc.).

Challenges(1) A ssess changes in customer needs
and market trends, and utilize
the service characteristics oflogistics centers to acquire newcustomers.

Corporate philosophy

Companies are social institutions, and profits are a measure of their service

Refrigerated Warehousing Business – 2030 Vision

Business
Activities

Food Sales Business – 2030 Vision(1) S egment net sales ¥40 billion, with segment earnings* of¥10 billion.
(2) M ultifunctional and automated refrigerated warehouse centersBuild 10 new centers by 2030 (increase in warehousecapacity of 250,000 tons)

Environmental
Activities

Business
Activities(1) S egment net sales: ¥130 billion(2) S egment profit margin*: 3.0% or higher(1) N atural refrigerant implementation rate: 80% or higher (currently 64%)
(2) S olar power generating capacity: 10 megawatts (currently 6.5MW)

Companywide Quantitative Targets Consolidated net sales: ¥170 billion(2) E xpand use of IT and robotics tocontend with labor shortages.

 Consolidated operating income: ¥10 billion* Segment earnings are before the exclusion of non-allocable
operating expenses (management division expenses) EBITDA: ¥17 billion

YOKOREI Sustainability Vision 2030

Food Sales Business
Establish a vertically integrated
business model with consideration
for sustainability

Evolution of Business
Foundations• Evolution through working-stylereforms and inclusion• Strong financial base• Building of strategic ICT8(1) S trengthened purchasing power
through partnerships with suppliersin Norway, Peru, and Malaysia, as
well as eel farms.
(2) E xpanded domestic production
base (Nagasaki Sorting Spot) andboosted cooperation withproduction areas in Japan.

(1) P romotion of flexible working
styles increased the proportion of
women in executive positions.
(2) C apital procured for growthinvestments.
(3) R enovation of core systems andutilization of ICT enhanced work
efficiency.

(1) C hange supply destinations andproducts in response to socialchanges.
(2) E stablish a sales model that is not
susceptible to external businessconditions.
(3) R evise sales composition bybusiness type.

Corporate philosophy

Companies are social institutions, and profits are a measure of their service

Sustainability Vision

For a brighter food future – YOKOREI will ensure a stable food supply tohelp support a sustainable society

Materiality

Qualitative Aims

Quantitative Targets

Harmony with the
Global Environment

A im for efficient use of energy, with consumption reductions and greater use ofrenewable energyR educe greenhouse gas emissions by transitioning to natural refrigerants
 L essen the environmental load through proper waste disposal, and use ofrecyclable materials
 S trive to conserve marine ecosystems

 Reduce greenhouse gas emissions perstorage capacity by 40% compared to2015 levels Natural refrigerant implementation
rate of 80% or higher

Create a Rewarding
Workplace S trengthen measures to cope with labor shortages
P rovide a rewarding work environment Implement diversity measures, including supporting active roles for womenC ontinue measures for workplace health and safety Proportion of employees who express
job satisfaction of 80% or higher Double the number of female
managers compared to fiscal 2020
levelsProvide Better Quality
and Service

 S trive to ensure a stable food supply
R educe food wasteE stablish systems to provide safe products and services
T otal commitment to food safety

Develop together with
CommunitiesP romote the revitalization of local industry
E stablish a cooperative framework for the entire supply chain with consideration
for the environment and society

Strengthen the Business
Foundation and Ensure
SoundnessE stablish a BCP structure (to cope with natural disasters, pandemic response,
information security, etc.) S trict adherence to legal compliance S trengthen SDG-related measures, and proactively provide disclosureC onduct ongoing measures to enhance corporate governance(1) D evelopment of personnel tosupport globalization.
(2) A dapt to utilization of IT anddigitization.
(3) D esign systems to capitalize on
diverse working styles.

YOKOREI Integrated Report 2021

9

Financial Strategy

Overview of the Medium-Term Management Plan (Phase )Overview of the Medium-Term Management Plan
– General and Business-specific Policies
The Medium-Term Management Plan – General Policy“The Power to Create”
Target FY2023 (Revised)

Net sales:¥120 billion

Operating income:¥5 billion

EBITDA:¥11 billion

Shareholders’ Equity Ratio:
Maintain in the mid 40% range

Refrigerated Warehousing Business

Food Sales BusinessBusiness-specific Policy
Create a business model that anticipates changes in thebusiness environment, and provide new value to customers.

Business-specific Policy
Break away from the past, utilize strengths and connections,and create food value adapted to the needs of the times.

Net sales target: ¥30 billion

Net sales target: ¥90 billion

Segment operating income* target: ¥6.7 billion

Segment operating income* target: ¥1.7 billion

Organizational Change in the Refrigerated Warehousing Business
New initiatives in the Japan business (Creation of the Customs Clearance Business Sector and Just-in-Time Logi Department to accentuate YOKOREI’s
strengths.)

Customs Clearance Business Sector – Business Plan

Just-in-Time Logi Department – Business Plan

Objective: Expand revenue in the customs clearance business by gaining
customers other than YOKOREI’s existing customers.

Objective: Increase revenue by providing YOKOREI’s uniqueconsolidated logistics service combining storage (DC) and transit (TC).

Business plan
basic strategy

Business plan
basic strategy

Expand business to the greater Kanto and Tokai regions

Operate existing centers as combined centers

Handling of new products and expansion to new locations

Accumulate know-how in consolidated, multi-distribution logistics

Acquire AEO certification to enhance service quality andprofessionalism, and increase sales

Progressively develop locations in other regions to expand sales

Business Foundation

Create human resources to support globalization, and ceaselessly pursue reforms
that enhance enterprise value.

Consolidated operating results for FY2021

Funding

During the current period (the fiscal year ended September2021), circumstances remained severe, including restrained
long-term social and economic activity because of COVID-19.
Because the food related industry, which the YOKOREI Groupis part of, was strongly impacted by the COVID-19 pandemic,
demand for prepared dishes and food delivery services
increased, but there continued to be no sign of a recovery forrestaurants and bars as they remained closed or reduced
operating hours and serving alcoholic beverages was stillprohibited because the number of areas under a declarationof a state of emergency or semi-state of emergency increased
and the length of the declarations were extended.
In this environment, the Group formulated the mediumterm management plan (phase I) “The Power to Create,”the last year of which is 2023. Under the policy of “creating
a business model” for the Refrigerated Warehousing
Business and “creating new food value” for the Food Sales
Business, we worked to implement priority measures toachieve not only business targets but also sustainability
targets by the final fiscal year (FY2023).
As a result, our consolidated operating results for thecurrent period were net sales of ¥110,782 million (down
3.7% from the prior year), operating income of ¥2,562
million (down 24.9%), ordinary income of ¥2,762 million(down 25.4%), and profit attributable to owners of theparent of ¥3,605 million (up 54.0%).
We also recorded extraordinary profit of ¥2,646 million
from the transfer of shares of HIYR AS (the holding
company of Hofseth Aqua AS) and Syvde Eiendom AS due
to the restructuring of the Norway aquaculture business,
an impairment loss of ¥598 million because of revisions to
the Kimobetsu Logistics Center business plan, and a loss of¥234 million on the removal of the closed Hakozaki
Logistics Center.

Because we raised funds for plant and equipment investment,
our long-term loans payable as of period-end totaled¥35,316 million. On September 27, 2021, we issued No. 1
Unsecured Subordinated Bond with Deferred Interest Clause
and Prepayment Clause (Sustainability Bond) to reinforce ourfinancial base, strengthen and accelerate sustainability
management, and diversity fund raising.

Investment strategy
We are making planned investments in equipment and IT
deemed necessary to increase our corporate value. As one
element of those investments, we completed constructionof the Fukuoka ISLAND CITY Logistics Center in January
2021 and Kesennuma Sorting Spot II in July of the same
year. Also, we are taking a scrap-and-build approach to bothrebuilding and replacing aging centers that were constructedduring Japan’s economic boom. In our new facilities, we are
installing cutting-edge equipment in line with the facilities’functions and implementing initiatives to reduce labor andpersonnel and to be mindful of the environment by using
natural refrigerants in consideration of the environmental
impact of CFC gases, incorporating solar power generation
systems, and introducing cargo navigation systems. As aresult, plant and equipment investment for the current
period totaled ¥13,744 million.

Shareholder return policy
In recognition that the shareholder return is a key management
issue, our basic policy is to maintain a stable dividend. Inline with this policy, we did not revise the dividend forecast
that we announced on November 13, 2020, and so ourannual dividend was ¥23 per share.

* Segment earnings are before the exclusion of non-allocable operating expenses (management division expenses)

TSR (10 years, including dividend)
350

The Business Foundation that Supports YOKOREI Quality—Three Reform Engines—

YOKOREIDividend-included TOPIX

300
250
200

YOKOREI is pursuing reforms in three areas – consciousness, organization, and systems – as the engine to bolster andenhance its business foundation.
Example Measures

150
100
50

 Promote open communication, and emphasize dialogue

Consciousness Reform

Organizational Reform Management mindful of capital efficiency and financial soundness
 Foster awareness of sustainability throughout the company, centered on a new promotion
organization Promote mutual ties between business segments, and continue measures to break down barriers
between divisions
 Continue reforms to achieve a consultative-style sales structure Strict adherence to business portfolio management

System Reform
100(Year)

2011/92012/92013/92014/92015/92016/92017/92018/92019/92020/92021/9TSR (Total Shareholder Return): Factors in capital gains and dividends when measuring the total return generated by a stock
TSR is calculated by YOKOREI using cumulative dividends and share price fluctuations whereas TOPIX is calculated using share prices indices including dividends (formulated by the Company based mainly on Japan ExchangeGroup, Inc. (JPX) data)
Graph values are indexed market prices in terms of TSR, with September 30, 2011 closing price data set at 100 (holding period through end-September 2021)

Share Performance (Total Shareholder Return)
Investment period Reform human resource system to improve productivity and produce solution-oriented personnel

YOKOREI Create structures to develop the next generation of managers and professionals

Dividend-included TOPIX

1 year

3 Years
Cumulative

5 Years
Annualized

Cumulative

10 Years
Annualized

Cumulative

Annualized

-0.3%

-3.8%

+1.3%

-6.8%

-1.4%

+85.5%+6.4%+27.5%+19.9%+6.2%+71.7%+11.4%+231.2%+12.7%YOKOREI Integrated Report 2021

11

Business Review
Refrigerated Warehousing Business: Business Strengths / Results by Segment

Completion of the Fukuoka ISLAND CITY Logistics Center

Providing high quality services
Cargo Friendly Cooling Method

Frozen foods,
other:

Fishery
products:

38.6%

13.4%

 Efficient operations generate earnings

Operating income(¥ million)(¥ million)

30,0007,000

25,000

6,000
5,000

20,000

13.5%

5,000

34.5%

0

3,000
2,000
1,000
2017

2018

2019

2020

2021

Kesennuma Sorting Spot II

Completion of the Hirado Ice Factory and Entry into the Ice Making Business

4,000

15,000

Livestockproducts:

In July 2021, YOKOREI completed construction of the Kesennuma Sorting Spot II in
Kesennuma (Miyagi Prefecture). The center’s automated, integrated processing line forfresh fish, from sorting to freezing, packing, and stacking, provides labor savings andoperations with fewer personnel. This automation, together with freezing facilities areable to handle up to 180 tonnes–the highest class among the Company’s centers–allows
for a three-fold increase in production volume with the same number of employees
compared to previous methods.

 Highly skilled

Net sales

Fukuoka ISLAND CITY Logistics Center

Completion of the Kesennuma Sorting Spot II Accumulated product knowledge and expertise

10,000Agricultural
products:

In January 2021, YOKOREI completed construction of the Fukuoka ISLAND CITY Logistics
Center in the Island City district of Fukuoka (Fukuoka Prefecture). This new center is thefifth of the Company’s logistics centers to receive certification under the Comprehensive
Logistics Efficiency Act. The significant boost in logistics efficiency is expected to reduce
CO2 emissions by 68%, and truck wait times by 70%. The center has received an overall
assessment rank of “A” (very good) from CASBEE Fukuoka, an organization that evaluates
and rates the environmental performance of buildings.

Employee Operations

 Allows for long-term, high-quality storage by naturalconvection cooling method(Helps prevent drying, freezer burn, and color fade-out)

Composition of warehousing
volume by product

Topics in FY9/21

0

2017

2018

2019

2020

2021

In August 2021, YOKOREI completed construction of the Hirado Ice Factory in Hirado(Nagasaki Prefecture). This fully automated, unmanned ice factory operates 24 hours aday, and is one of the largest in the country. The facility is also environment-friendly,
incorporating non-fluorocarbon, high-efficiency natural refrigerant ice freezers withexcellent energy saving effect.

Food Sales Business: Business Strengths / Results by Segment

Hirado Ice Factory

Acquisition of an Eel Farm
Strengthening of Overseas Business Strategy

Quality Controls Deliver Safe and Reliable Food to Your Table

YOKOREI is drawing on the strengths in handling marine
products that it has had since its founding to bolster its
overseas business strategy. The facilities
are in Thailand, which serves as a hub
for trade in Southeast Asia, and Norway,
where farming of salmon and trout is anational business.

YOKOREI’s sales managers centrally manage food procurement,from the selection of producers in countries around theworld, to import, storage, andsale. This allows us to ensure
traceability throughout theprocess, and guarantee safety
and reliability.

Net sales

Operating income(¥ million)(¥ million)

150,000

2,000

Agricultural
products, other:Livestockproducts:

2.2%

21.4%

Eel Farm

Business Restructuring in Norway

1,500
100,000

In September 2021, YOKOREI sold its entire holdings (50% of shares) in HIYR AS, a joint subsidiary under Hofseth Aqua AS,
which operates a salmon and trout aquaculture farming business in Norway, to Hofseth International AS (HI), the major
Norwegian marine products processing company that had been its partner in the venture. Hofseth Aqua AS has become a nonconsolidated subsidiary, but YOKOREI will remain a shareholder with just over a 14% stake in HI, and as a business partner
providing a stable supply of salmon and trout, will continue efforts to expand sales in Norway and the ASEAN region.

1,000
500

50,0000

Fishery
products:

76.4%

12

Mitsuba-tei brandof domesticallyraised eel

Acquired ASC certification, CoC certificationand secured traceability

Hofseth Aqua’s salmon and trout aquaculture farmComposition of sales by product

In July 2021, YOKOREI acquired an eel farm in Miyazaki (Miyazaki Prefecture). The
Company has offered the “Mitsuba-tei” brand of domestically raised eel since 2018,selling products to supermarkets and volume retailers throughout Japan. This acquisitionof a portion of the culture farm (approximately 1 hectare) from Harada Eel Farm, where
the Company raises the eels for its brand products under contract, marks YOKOREI’s
formal entry into the domestic eel farming business. Taking full control over the eel
farming operations will allow the Company to maintain stable and sustained production
and supply of high-quality eel, as well as increase production volume from the current
level of 50 tonnes annually to the 100 tonnes level.

0

2017

2018

2019

2020

2021

-500

2017

2018

2019

2020

2021

YOKOREI Integrated Report 2021

13

Corporate Governance
Basic Policy for Corporate GovernanceMatters Related to Independent Officers

YOKOREI aims to respond to the trust placed in us by a wide range of stakeholders and to realize sustainable growth and raise
medium- to long-term corporate value. We also aim to practice transparent and fair management and we are always working
to improve corporate governance by making decision making swifter and strengthening oversight functions. In addition, under
the Companies Act, we have adopted the institutional format of a company with a board of auditors.

Mototsugu Sakai was appointed at the 72nd (FY2019) General Shareholders Meeting, Yosuke Horiai was appointed at the 73rd
(FY2020) General Shareholders Meeting, while Mitsuhiro Honda and Yoriko Sakamoto were appointed at the 74th (FY2021)
General Shareholders Meeting. All four individuals are independent officers in their capacities as outside directors.
Independent officers Keizou Inoue, Eizo Tanahashi, and Hisao Munakata were appointed outside auditors at the 73rd (FY2020)
General Shareholders Meeting.

Corporate Governance Structure

Name

General Meeting of Shareholders
Nomination/dismissal
Nomination/
dismissal

Nomination/
dismissal

Board of Directors
Audit
Reports

Nominating & Remuneration
Advisory Committee
Chairman and representative director, president and representative director

Accounting Auditors(external auditors)

Board of Auditors(4 auditors, all outside auditors)

Consults

Internal Audit Department

Executive Management
Committee

Reports

Business Sector

Instructions

Guidance

From his abundant experience as a certified public accountant
and his considerable knowledge of corporate finance, we deemthat Mr. Horiai will provide the Board of Directors with valuable
opinions and advice on all aspects of business management.

NameReason for selection

Keizou Inoue

From his experience with corporate management and auditing,
we deem Mr. Inoue capable of fulfilling supervisory functions
with regard to business execution.

Eizo Tanahashi

We deem Mr. Tanahashi capable of utilizing his specialized
knowledge and experience as an attorney to support our
auditing systems.

Hisao Munakata

Mr. Munakata has had a career in key positions at the Defense
Agency (now the Ministry of Defense), including Vice Chief ofStaff and Inspector General of the North Eastern Army in the
Ground Self-Defense Force. We deem him capable of utilizing his
wealth of experience and insights of crisis management tosupport our auditing systems.

Mr. Honda has held various important taxation-related positions
at the National Tax Agency and is currently active in various
capacities, including as a professor at the University of Tsukuba
Mitsuhiro Honda Graduate School. Because of his abundant experience, we deemthat Mr. Honda will provide the Board of Directors with valuable
opinions and advice on all aspects of business management.
Because of her abundant experience as an educator andextensive knowledge and experience as an attorney, we deem
Yoriko Sakamoto that Ms. Sakamoto will provide the Board of Directors withvaluable opinions and advice on all aspects of business
management from various perspectives.

Incentives

Directors in charge, corporate officers (execution of business)
Instructions

Mr. Sakai possesses broad experience from working in the
Compliance Division at another company and we deem him
Mototsugu Sakai capable of sufficiently fulfilling his role in our corporate
governance framework.

Yosuke Horiai(12 directors (4 of whom are outside directors); decides on business execution,
supervises the execution of duties by directors)

Audit

Reason for selection

To further clarify the relationship between directors’ remuneration and the value of our shares and to increase awareness of ourdesire to improve our financial performance and its contribution to increasing the value of our shares, the December 19, 2014,
Annual General Meeting of Shareholders passed a resolution to introduce a stock compensation system.

Reports

Corporate Management Sector

Nominating and Remuneration Advisory Committee
Directors

Number of Outside Directors

Maximum Number of Directors Stipulated in Articles ofIncorporation

15 members

Term of Office Stipulated in Articles of Incorporation

2 years

Chairperson of the Board

President

Number of Directors

12 members

Number of Outside Directors

4 members

Number of Independent Directors

4 members

Number of Outside Directors

4 members

Number of Outside Auditors

4 members

Four of the YOKOREI Group’s 12 directors are outside directors, and all 4 auditors
are outside auditors. We are practicing sound management by incorporating
outside perspectives.

Analysis and Evaluation of the Effectiveness of the Board of Directors
We conduct an anonymous survey of all directors in order to assess the overall effectiveness of the Board of Directors and,as a commitment to improving Board functions, we strive to identify issues and make ongoing improvements. While we haveconfirmed the effectiveness of our current Board of Directors and are confident that it is operating appropriately overall, we
will strive to distribute important reference material as quickly as possible and ensure more active discussions from broad
points of view.

Independence Standards and Qualifications for Independent Outside Directors
Based on the Tokyo Stock Exchange’s criteria for independence, we have stipulated Standards for Outside Director Independence
and we select candidates who meet these standards.

14

To strengthen the Board of Directors’ audit function and accountability and expand its scope of review, on October 25, 2019,
we established a Nominating and Remuneration Advisory Committee as an advisory body to the Board, and a majority of thecommittee’s members are independent outside directors. This advisory committee will report to the Board on matters concerning
the appointment and resignation of directors and auditors, and on the content of discussions regarding remuneration and related
issues, and it will ensure the fairness, transparency, and objectivity of procedures related to the nomination and remunerationof directors and auditors.

Matters Related to Director Compensation
Directors’ remuneration is determined by the Board of Directors, limited to the scope passed by resolution at the General
Shareholders Meeting, and based on the results of discussions and deliberations by the Nominating and Remuneration Advisory
Committee (which has independent outside directors comprising a majority of its members). Director compensation is comprisedof base compensation that is a fixed amount, performance-based compensation that reflects business results for one fiscal year,
and restricted stock compensation that reflects medium- to long-term business results. The rough ratio of base compensationand performance-based compensation, which are monetary compensation, and restricted stock compensation, which is nonmonetary compensation, is 6:2:2 if performance targets are met. Outside director and corporate auditor compensation are only
comprised of base compensation of a fixed amount.

For details on our corporate governance, please see our Corporate Governance Report.
https://www.yokorei.co.jp/en/company/governance/pdf/governance.pdf

YOKOREI Integrated Report 2021

15

Corporate GovernanceDirectors, Auditors, Corporate Officers (as of Dec. 22, 2021)
Directors

Auditors

Chairman and Representative Director

President and Representative Director

Executive Vice President and Director

Standing Statutory Auditor (Outside)Standing Statutory Auditor (Outside)

Auditor (Outside)

Toshio Yoshikawa

Hiroyuki Matsubara

Yuji Inoue

Keizou Inoue

Shuzo Hayashi

Eizo Tanahashi

Number of the Company’s shares held: 137 thousand
Board of Directors meeting attendance: 13 times / 13 times

Number of the Company’s shares held: 48 thousand
Board of Directors meeting attendance: 13 times / 13 times

Number of the Company’s shares held: 45 thousand
Board of Directors meeting attendance: 13 times / 13 times

Number of the Company’s shares held: 1 thousand
Attendance at Board of Auditors meetings: 10 times / 10 times

Number of the Company’s shares held: —Attendance at Board of Auditors meetings: 10 times / 10 times

Number of the Company’s shares held: 4 thousand
Attendance at Board of Auditors meetings: 13 times / 13 times

Apr. 1968 Joined the Company
Sept. 1992 Sapporo Sales Office General Manager at the Company
Dec. 1992 Sapporo Sales Office General Manager and Director at
the Company
Dec. 1996 General Affairs Dept. General Manager and Managing
Director at the Company
Dec. 2003 President and Representative Director at the Company
Dec. 2015 Chairman and Representative Director at the Company(current)

Apr. 1979 Joined the Company
Dec. 2003 Ishikari Logistics Center General Manager at the Company
Dec. 2011 General Affairs Dept. General Manager and Corporate
Officer at the Company
Dec. 2013 Chief of Corporate Management Sector and Director in
charge of internal affairs, compliance, and affiliate
management at the Company
Feb. 2016 General Manager of Kanto Block, Satte Logistics Center
Launch Preparation Committee Chair, and Director at theCompany
Dec. 2017 Deputy Chief of Corporate Management Sector, Public
Relations and IR Dept. General Manager, and Director in
charge of affiliate management at the Company
Sept. 2018 Chief of Corporate Management Sector and Director in
charge of affiliate management at the Company
Apr. 2019 Chief of Cold Logistics Business Sector, Cold Logistics Sales
Dept. General Manager, and Director at the Company
Dec. 2019 Chief of Corporate Management Sector, Medium-Term
Management Plan Promotion Committee Chair, andPresident and Representative Director at the Company
Oct. 2021 President and Representative Director at the Company(current)

Apr. 1978 Joined the Company
Dec. 2003 Tokyo Plant General Manager and Corporate Officer at
the Company
Apr. 2012 Chief of Cold Logistics Business Sector, General Manager
of Kanto Block, and Director in charge of subsidiaries’
cold logistics businesses at the Company
Dec. 2015 Chief of Cold Logistics Business Sector and Managing
Director in charge of cold logistics business at theCompany
Dec. 2017 Chief of Corporate Management Sector, Chief of Cold
Logistics Business Sector, Cold Logistics Sales Dept.
General Manager, and Managing Director at theCompany
Apr. 2019 Managing Director in charge of all sectors at theCompany
Dec. 2019 Executive Vice President and Director in charge ofbusiness sectors, Public Relations and IR Dept., and SDGs
promotion at the Company
Oct. 2021 Executive Vice President and Director in charge ofbusiness sectors, Public Relations and IR Dept., SDGs
promotion, and Medium-Term Management Plan
Promotion Committee Chair at the Company (current)

Jan. 2008 Head Office Accounting Dept. Manager at National
Federation of Agricultural Cooperative Associations
Jan. 2010 Head Office Operation Audit Dept. Manager at National
Federation of Agricultural Cooperative Associations
Jun. 2012 Statutory Auditor at Zen-noh Butsuryu K.K.
Jun. 2018 President and Representative Director at Z-BS INC.
Dec. 2020 Auditor at the Company (current)

Dec. 2011 Utsunomiya Office Manager at The Norinchukin Bank
Dec. 2014 Sales Dept. Manager and Director at Nikken Lease Kogyo
Co. Ltd.
Feb. 2016 Fisheries Credit Dept. Manager at Agriculture, Forestry
and Fisheries Credit Foundations
Dec. 2020 Auditor at the Company (current)

Oct. 1987 Passed bar exam
Apr. 1990 Registered as attorney
Apr. 2000 Opened Tanahashi Ozawa Law Offices (present-day Ginza
Imperial Law Office) (current)
Sept. 2005 Auditor at Marubeni Construction Material Lease Co., Ltd.
Dec. 2009 Auditor at the Company (current)Managing Director

Director

Director

Koji Ochi

Naotaka Yoshikawa

Mikio Hanazawa

Number of the Company’s shares held: 25 thousand
Board of Directors meeting attendance: 13 times / 13 times

Number of the Company’s shares held: 14 thousand
Board of Directors meeting attendance: 13 times / 13 times

Number of the Company’s shares held: 33 thousand
Board of Directors meeting attendance: 13 times / 13 times

Apr. 1984 Joined the Company
Dec. 2009 Corporate Officer at the Company, seconded to Alliance
Seafoods Inc., and Managing Director at Alliance
Seafoods Inc.
Dec. 2011 Director at the Company, seconded to Alliance Foods Inc.,and Executive Vice President and Director at AllianceFoods Inc.
Oct. 2016 General Manager of Keihin Block and Director at theCompany
Apr. 2017 Deputy Chief of Corporate Management Sector, General
Affairs and Human Resources Dept. General Manager,
and Director in charge of internal controls, compliance,
and affiliate management at the Company
Apr. 2019 Chief of Corporate Management Sector and Director in
charge of affiliate management at the Company
Dec. 2019 Chief of Food Sales Business Sector, and Director at theCompany
Dec. 2021 Chief of Food Sales Business Sector, General Manager ofDomestic Production Area Sales Group, and Managing
Director at the Company (current)

Jul. 1998 Joined the Company
Apr. 2011 Yokohama Logistics Center General Manager at theCompany
Dec. 2017 General Manager of General Affairs and Human
Resources Dept. and Corporate Officer at the Company
Dec. 2019 General Manager of General Affairs and Human
Resources Dept., Investment and Loan Dept. General
Manager, Domestic Investment and Loan Management
Office General Manager, and Director at the Company
May 2020 Investment and Loan Dept. General Manager, Overseas
Business Dept. General Manager, and Director at theCompany
Oct. 2021 Deputy Chief of Food Sales Business Sector, Business
Planning Dept. General Manager, Consumption Area
Sales Business Dept. General Manager, and Director at theCompany (current)

Apr. 1983 Joined the Company
Oct. 2007 Koyasu Logistics Center General Manager at the Company
Dec. 2013 General Manager of Chukyo and Tokai Block, Komaki
Logistics Center General Manager, and Corporate Officer
at the Company
Dec. 2015 General Manager of General Affairs and Human
Resources Dept. and Director at the Company
Feb. 2016 Chief of Corporate Management Sector, General Manager
of General Affairs and Human Resources Dept., andDirector in charge of internal controls, compliance, andaffiliate management at the Company
Apr. 2017 Chief of Cold Logistics Business Sector, General Manager
of Keihin Block, and Director at the Company
Sept. 2018 General Manager of Meat Business Group, and Director
at the Company
Oct. 2021 Risk Management Dept. General Manager, and Director
at the Company (current)

Corporate Officers
Auditor (Outside)

Corporate Officer

Shigetaka Senda

Corporate Officer

Masakazu Oda

Number of the Company’s shares held: —Attendance at Board of Auditors meetings: 10 times / 10 times

Corporate Officer

Masato Iwakura

Corporate Officer

Narito Nakao

Mar. 2003 GSDF Staff Office, Defense Dept. Manager at Defense
AgencyAug. 2006 Deputy Chief of Staff of the GSDF at Defense Agency
Jul. 2007 Tohoku Region Inspector General at Ministry of Defense
Oct. 2009 Director at PSC Jieitai-Kazoku-Kai, and Consultant at The
Japan Steel Works, Ltd. (current)
Apr. 2018 New Business Development Advisor at safety NET K.K.
Part-time lecturer, Tokyo Campus of Shiseikan University(current)
Dec. 2020 Consultant at Pasona Group Inc. (current)
Auditor at the Company (current)

Corporate Officer

Hiroto Ikeda

Corporate Officer

Naoto Negishi

Corporate Officer

Akihiko Tanaka

Corporate Officer

Mitsutaka Hoshi

Corporate Officer

Yutaka Yoshida

Corporate Officer

Akiko Komatsu

Corporate Officer

Takuji Uchiyama

Corporate Officer

Hajime Izu

Corporate Officer

Yoshiaki Hoshino

Hisao Munakata

Director and Auditor Skill Matrix
We have identified skill fields (knowledge, experience, skills, etc.) that directors and auditors should possess and the following
are the fields that each director and auditor is particularly expected to contribute to.
Name
Chairman and Representative Director

Toshio Yoshikawa
President and Representative Director

Hiroyuki Matsubara
Director

Director

Director (Outside)

Kenji Furuse

Hiroshi Okada

Mototsugu Sakai

Number of the Company’s shares held: 18 thousand
Board of Directors meeting attendance: 13 times / 13 times

Number of the Company’s shares held: 10 thousand
Board of Directors meeting attendance: 13 times / 13 times

Number of the Company’s shares held: 3 thousand
Board of Directors meeting attendance: 13 times / 13 times

Apr. 1986 Joined the Company
Oct. 2001 Sasebo Sales Office General Manager at the Company
Jul. 2015 General Manager of Kyushu Group. and Kyushu Sales
Dept. General Manager at the Company
Dec. 2015 General Manager of Kyushu Group and Corporate Officer
at the Company
Sept. 2018 Internal Audit Office General Manager and Corporate
Officer
Dec. 2019 General Manager of Domestic Production Area Sales
Group, and Director at the Company
Oct. 2021 Chief of Corporate Management Sector, AEO
Management Dept. General Manager, and Director at theCompany (current)

Apr. 1996 Joined the Company
Apr. 2011 Nagoya Logistics Center General Manager at theCompany
Dec. 2017 General Manager of Keihin Block, Tokyo Haneda Logistics
Center Launch Preparation Committee Chair, andCorporate Officer at the Company
Dec. 2019 Director in charge of Norway business at the Company
May 2020 Overseas Strategy Division General Manager (stationed in
Norway) and Director at the Company (current)Jul.

2005 Compliance and Operation Audit Dept. Manager (Main
Office) at National Federation of Agricultural Cooperative
Associations
Jan. 2006 Supervision and Audit Operations Bureau Chief at
National Federation of Agricultural Cooperative
Associations
Oct. 2008 Full-time Auditor at Z-BS INC.
Jun. 2014 Resigned as Full-time Auditor at Z-BS INC.
Dec. 2015 Director at the Company (current)
Jul. 2020 Director at Certified Management Support NPO Club
(current)

Executive Vice President and Director

Yuji Inoue

Corporate
management

Legal affairs
and internal
controls

Crisismanagement

Personnel &humanresources

Financialaccounting &taxation

Refrigerated
Warehousing
Business

Food Sales
Business

Overseasbusiness





























Managing Director

Koji Ochi
Director

Naotaka Yoshikawa
Director

Mikio Hanazawa
Director

16

Director (Outside)

Yosuke Horiai

Mitsuhiro Honda

Yoriko Sakamoto

Number of the Company’s shares held: —Board of Directors meeting attendance: 9 times / 10 times

Number of the Company’s shares held: —Attendance at Board of Directors meetings: —Number of the Company’s shares held: —Attendance at Board of Directors meetings: —Oct. 1980
Jul. 1988
Mar. 1989
Dec. 2020

Apr. 1984 Joined National Tax Agency
Jul. 2010 Assistant Regional Commissioner (Management andCoordination) , Takamatsu Regional Taxation Bureau
Jul. 2012 Professor, Graduate School of Business Sciences, Tsukuba
University (current)
May 2013 International Tax Advisor, TOMA Consultants Group Co.,
Ltd. (current)
Mar. 2016 Outside Audit & Supervisory Board Member, Roland DG
Corp. (current)
Apr. 2016 Lecturer, Professional Graduate School, Meiji University(current)
Apr. 2017 Research Grant Selection Committee Member, Institute ofTax Research and Literature (current)
Jun. 2018 Outside Audit & Supervisory Board member, Yuasa
Trading Co., Ltd. (current)
Jun. 2021 Tax Advisor, Grant Thornton Yamada & Partners (current)

Apr. 1995 Assigned to No. 1 Nippori Elementary School,
Arakawa-ku, Tokyo
Sept. 2011 Passed bar exam
Dec. 2012 Joined Rokuta Law Office (current)
Jun. 2016 Outside Audit & Supervisory Committee Member,
Watahan & Co., Ltd.
Apr. 2018 Mediation Committee Member, Tokyo Family Court(current)
Jun. 2021 Outside Director, Watahan & Co., Ltd. (current)

Joined Shinko Kansa Hojin
Moved to Ota-showa Kansa Hojin
Opened Horiai Accounting Office (current)
Director at the Company (current)



























Yosuke Horiai
Director (Outside)Mitsuhiro Honda
Director (Outside)Yoriko Sakamoto

Standing Statutory Auditor (Outside)

Shuzo Hayashi
Auditor (Outside)

Eizo Tanahashi
Auditor (Outside)

Hisao Munakata

Director (Outside)

Keizou Inoue

Hiroshi Okada

Standing Statutory Auditor (Outside)

Director

Mototsugu Sakai
Director (Outside)Kenji Furuse

Director (Outside)

Director (Outside)













YOKOREI Integrated Report 2021

17

Corporate Governance

Message from an Outside Director

In October 2020, YOKOREI launched its medium-term
management plan (phase I) “The Power to Create,” thefinal fiscal year of which is FY2023.
Under the policy of “creating a business model” for the
Refrigerated Warehousing Business and “creating new
food value” for the Food Sales Business, the Company isworking to reach the quantitative targets and sustainability
targets for the final fiscal year (FY2023).
In addition to undertaking planned construction of new
refrigerated warehouses (Fukuoka ISLAND CITY Logistics
Center and Kesennuma Sorting Spot II) and increasing
overseas purchasing power (Norway, Peru, and Malaysia),
YOKOREI has acquired an eel farm and expanded into theice making business by constructing the Hirado Ice Factory.
The Company also plans to build new refrigerated
warehouses in the cities of Chiba and Eniwa in FY2023.
Although the COVID-19 pandemic is sure to impact
earnings, the Company will appropriately make planned
investments and undertake stable, sound management.
The business environment will probably remain harsh, but
I expect that the Company will create a system that makes
it possible to adapt the Refrigerated Warehousing BusinessOutside Director Mototsugu Sakai
and Food Sales Business to changes in the environment
and undertake management that generates synergies
between the two businesses in order to maintain management that can adapt to changes in the environment.
I previously worked at the National Federation of Agricultural Cooperative Associations (ZEN-NOH) and now support
food related small and medium-sized enterprises (SME) at an NPO. I took up the position of outside director in December
2015. I would like to use the experience related to operations in the fields of not only food development and sales but
also compliance and audits that I acquired during my time at ZEN-NOH and extensive knowledge gained as a SME andretail marketing consultant to provide useful comments and confirm progress in implementing the medium-term
management plan at Board of Directors meetings and support the further expansion of the Company’s business.
YOKOREI’s Board of Directors generally undertakes appropriate decision-making through open discussions. I think,however, that it would be more desirable if there were deeper deliberations among departments. The key role of outside
directors is to verify and guarantee that the Board of Director conducts appropriate and proper decision-making. The
Company provides material for Board of Directors meetings in advance and shares summaries of deliberations, butdevising ways to provide advanced explanations of important agenda items and achieve other objectives would further
deepen understanding of those items. I also think that Board of Directors meetings are conducted in an extremely open
manner because participating directors are provided with opportunities to make comments while the chairman works
through the agenda.
I hope that Board of Directors meetings become even more lively by expanding deliberations and reports related tomedium- and long-term issues, the orientation of the corporate strategy, the response to the main risks that impact
business, and other issues.
The Company is focusing on promoting businesses that take the global environment into consideration, based on theslogan, “For a brighter food future — YOKOREI will ensure a stable food supply to help support a sustainable society,”
which appears in the YOKOREI Sustainability Vision 2030. “Harmony with the Global Environment” has been positioned
as one of the materialities in this vision, and the Company aims to reduce GHG emissions 40% (compared to 2015)
throughout its refrigerated facilities by having all facilities obtain green management certification and introducing solar
power systems and natural refrigerant air conditioning systems (they have been introduced at 64% of facilities). One
important future issue is how the Company communicates its efforts to implement ESG management, and I hope thatthe Board of Directors continues to deliberate on progress toward achieving its targets. In regard to governance, aSustainability Committee was launched, and I would like the Board of Directors to monitor its activities.

18

Compliance and Risk Management
Internal Control System Operation
By stipulating a Code of Conduct in line with the Company’s policies and basic management policies, sharing the spirit of thecode with all employees, including executives, and continuing to communicate that into the future, the Company is working tothoroughly adopt the stance that all business activities are premised on adherence to laws, regulations, and social ethics.
The Representative Director designates the director in charge of compliance as the person responsible for efforts throughout
the Company related to the compliance system, and the Management Division undertakes various efforts including maintaining
the compliance system, ascertaining problems, and conducting training for employees. Directors in charge of operations analyze
the unique compliance risks for the operations they are in charge of and strive to implement necessary responses. In order tofurther strengthen internal controls, including maintaining a system of internal controls for financial reporting, the Basic Policyon the Operation of Internal Controls System was formulated, and a resolution to revise some of the provisions of that basic
policy was passed at the Board of Directors meeting held on November 25, 2021.
Working with the Corporate Management Headquarters, auditors and the Internal Audit Department examine the state ofcompliance and report on that to the Board of Directors, and the Board of Directors regularly reviews the compliance system
and works to ascertain and resolve problem points.
As one part of efforts to maintain the internal control system, an Internal Control Committee was created to identify laws andregulations that departments should adhere to and risks that could impact the business and propose and order necessary responses.

For the Company’s Basic Policy on the Operation of Internal Controls System, please see the following website.
https://www.yokorei.co.jp/en/company/governance/pdf/internalcontrols.pdf

Basic Policy for Risk Management
YOKOREI is tackling the risk surrounding its business by engaging in risk management aimed at preventing said risk in advanceand minimizing damage should it occur. We manage risk under a basic policy based on our Risk Management Rules. This policy
includes basic objectives and guidelines for action.

(1) Basic Objectives
The objectives of our risk management activities are to reduce the loss of management resources, including people
and objects, due to the various risks we face through our business activities, to enable a swift recovery fromemergency situations and ensure such a situation does not reoccur in the future, and to secure sound management
and revenues.
(2) Guidelines for Action
S tay highly conscious of risk and continuously work to enhance measures for preventing it and capacity for
responding to it.
Conserve and appropriately allocate management resources to secure sound management and profitability.
Maintain the health and safety of employees and their families.
Prioritize the recovery of humanitarian and social considerations when responding to emergency situations.
Practice risk management that improves the Company’s reputation within society.
Practice risk management that reflects societal demands concerning risk.

For details on our risk management, please see the following website.
https://www.yokorei.co.jp/en/ir/policy/riskmanagement/

YOKOREI Integrated Report 2021

19

Environmental and Social Initiatives
Basic Policy

Measures to Address Climate Change

YOKOREI, in accordance with its corporate principle of contributing to society through the logistics business, addresses theenvironmental and social issues demanded of a corporation, maintains quality controls for food safety and security, and conducts
business in an environmentally responsible manner. We also contribute to society through support of educational, cultural, andsports programs, as well as disaster relief activities. In addition, we receive visits to our logistic centers from overseas companies.

The globally critical issue of climate change could have a serious impact on YOKOREI’s business activities. YOKOREI recognizes
that abnormal weather and natural disasters due to climate changes are both a risk and opportunity for the Company’s businessactivities, and considers and implements appropriate countermeasures.

Climate Change-related Governance

Environmental Initiatives

The establishment of a Sustainability Committee to ensure appropriate oversight by the Board of Directors pertaining to assessment andmeasures relating to policies, strategies, risks and opportunities related to climate change, was approved at the Board of Directors meeting
held in September 2021. The Sustainability Committee comprises directors and corporate officers, and is chaired by the president. Goingforward, the Sustainability Committee will meet once every six months in principle to discuss relevant issues, report to the Board of Directors,
and revise strategies, targets, and plans as appropriate.

Use of Natural Refrigerants
YOKOREI recently introduced a highly efficient natural refrigerant air conditioning system that uses
two refrigerants (NH3 (ammonia) and CO2). In addition, we have constructed natural refrigerantsystems at existing facilities. The proportion of natural refrigerant used by the YOKOREI Group overall
is currently greater than 60%, compared to around 40% for the industry overall.
Highly efficient natural refrigerant air
conditioning system

Accelerate Japan Awards “2021 Bestin Sector/Industrial”

24th Ozone Layer Protection and Global Warming
Prevention Awards “Environment Minister’s Prize”

YOKOREI received the “2021 Best in Sector/
Industrial” prize at the Accelerate Japan awards
at ATMOsphere Japan 2021, an international
conference for natural refrigerants held on
February 15, 2021.

In September 2021, YOKOREI received the“Environment Minister’s Prize” in recognitionof its measures to eliminate fluorocarbons andcounter global warming in the Refrigerated
Warehousing Business.

YOKOREI Chairman Toshio
Yoshikawa (right) andHiroshi Ono, Director of the
Global Environment Bureau,
Ministry of the Environment

Green Management Certification
YOKOREI received its first Green Management Certification in 2008, andcurrently all refrigerated warehouse facilities in Japan, from Hokkaido to
Kagoshima, are certified. We are advancing voluntary, ongoing environmental
conservation activities and improving the internal environment and reforming environmental
awareness within the company by setting targets for environmentally friendly business management
and regularly assessing performance.

YOKOREI Group considers the risks and opportunities presented by climate change to be important management issues, and focuses on
conducting business in consideration of the global environment. Using the recommendations of the Task Force on Climate-related Financial
Disclosures (TCFD) as a reference, YOKOREI assesses the risks and opportunities of the impact from climate change, and incorporates
countermeasures into its business strategies.

Risk Management
YOKOREI considers climate change to be an important management risk, and has established a Sustainability Committee chaired by thepresident. This committee considers the impact on the Company’s business activities from physical risks such as abnormal weather due toclimate change, and transition risks such as government policies and regulations to promote the shift to a decarbonized society. It reports
its findings to the Board of Directors, and implements measures to manage climate change risk from a long-term perspective, including
revising business strategies as appropriate.

Indicators and Targets
Gold sticker certifying long-term registration

Installation of Solar Power Generation Systems
17 of our domestic logistics centers and 2 overseas logistics centers currently have solar power
generating systems. Electricity generated during the fiscal year ended September 2021 amounted to
5.49 million kilowatts, equivalent to a reduction of 2,220 tonnes in CO2 emissions.

Acquired ASC Certification and CoC Certification for
Sustainable Seafood
Norwegian firm Hofseth Aqua AS, YOKOREI’s partner in the aquaculture business, hasreceived Aquaculture Stewardship Council (ASC) certification for all its aquaculture
farms in Norway. It has also received Chain of Custody (CoC) certification for fish
distribution, processing, and retailing, and continues to promote the supply ofsustainable marine products with consideration for both the environment and society.

Issuance of the Industry’s First Sustainability Bonds
Based on the materiality priorities in the YOKOREI Sustainability Vision 2030, YOKOREI issued the industry’s first Sustainability Bonds (1stSeries Deferrable Interest and Callable Unsecured Subordinated Bonds) for the purpose of refinancing construction funds for selected projects(Fukuoka ISLAND CITY Logistics Center, Nagasaki Sorting Spot, and Kesennuma Sorting Spot II).
All of these projects conform to the environmental materiality priority of “Harmony with the Global Environment.” The sorting spot
projects in Kesennuma and Nagasaki are also consistent with materiality priorities related to social benefits, such as revitalization of local
communities, generating employment, and ensuring a safe food supply.
These Sustainability Bonds have received the highest evaluation of SU1 from Japan Credit Rating Agency, Ltd.

20

Strategies

The YOKOREI Sustainability Vision 2030 formulated in November 2020 establishes
quantitative targets for 2030 of reducing greenhouse gas emissions by 40% compared
to 2015 levels, and achieving a natural refrigerant implementation rate of 80% or
higher. The Refrigerated Warehousing Business is introducing energy-efficientequipment and freezers with zero global warming potential (GWP) to achieve thesegoals.
In August 2021, the Yokohama Mirai Satellite refrigerated warehouse and the
Yokohama Mirai HRD (Human Resource Development) training facility converted toelectric power from 100% renewable energy sources. Going forward, YOKOREI willcontinue to pursue measures to support a low-carbon economy, including proactively
installing rooftop solar panel systems, and eliminating fluorocarbons (CFCs) at existing
logistics centers.

Measures to Reduce CO2 Emissions through Greater Logistics Efficiency
Japan’s Ministry of Land, Infrastructure, Transport andTourism (MLIT), as part of a project to enhance efficiency
in logistics, passed the Comprehensive Logistics Efficiency
Act stipulating accreditation of logistics plans and assistance measures. YOKOREI’s Tokyo
Haneda Logistics Center received certification under this law in February 2018. In January 2021,
the Fukuoka ISLAND CITY Logistics Center became the fifth of the Company’s facilities to becertified. Both centers have improved efficiency by working with partner transport companies
to integrate widely distributed storage centers and transport networks. YOKOREI has also
introduced a truck reservation system that has reduced the number of vehicles entering andleaving warehouses and their travel distance, and provided labor savings. As a result of thesemeasures, CO2 emissions from the Tokyo Haneda Logistics Center have been reduced by around34%, and by approximately 68% at Fukuoka ISLAND CITY Logistics Center.

CASBEE Fukuoka assessment of Fukuoka ISLANDCITY Logistics Center

YOKOREI Integrated Report 2021

21

Environmental and Social Initiatives

Measures for Working Style Reforms

Contribution to Local Communities

The industrial world has been pursuing working style reforms in response to societal pressures for a better work-life balance.
YOKOREI is actively embracing measures to lessen the burden of physical tasks, as well as reduce administrative work.
Kesennuma, where the Kesennuma Sorting Spot II was recently built, is one of Japan’s premier areas for marine products.
However, the area’s population is declining and growing older, leading to such problems as an aging workforce to sort marine
products, and a worker shortage. In addition, the sorting and freezing of marine products is physically demanding work. The
majority of employees are men, and they need to continue at their jobs throughout the day.
Kesennuma Sorting Spot II utilizes a large-scale, automated sorting and freezing line that allows for a reduction in manpower,
and by greatly lessening the physical load of the work itself, allows the job to be performed by a broader range of workers,
regardless of age or gender. As a result, compared to previous methods, the facility is able to process three times the volume
with the same number of personnel.
The Cold Logistics Business Sector also used to print a large volume of request forms
and inspection confirmation certificates, but the Information Systems Department, incharge of system development for the refrigerated warehousing and food sales
departments, is working to make this system paperless by using digitization
technologies based on AI-OCR, automation of tasks with RPA, and a proprietary cargostorage and retrieval system. Together with the Food Sales Business Sector, thesemeasures will save around 1.1 million sheets of paper per year, equivalent to around
Kesennuma Sorting Spot II, automated sorting and
20% of the 5.5 million sheets regularly printed previously.
freezing line

As a company that deals with food, in recent years YOKOREI has been promoting food-related social
contribution programs to help resolve such major social issues as food loss, the cycle of poverty, andenvironmental problems. Food Bank Yokohama, a non-profit organization, has been receiving foodproducts that do not meet production standards or that would be discarded despite still being ediblefrom many companies and people. However, because the lack of storage facilities makes it difficult
to handle frozen products, the Food Bank was handling mostly room-temperature products. We havetherefore been allowing them to use our refrigerated warehouses to store frozen products, and thisenables them to accept and provide a wider variety of foods, including perishables.
In addition, we have started providing some of the products that we handle to children’s cafeterias,
and we are proactively implementing other social contribution programs aimed at breaking the cycleof poverty and reducing food loss.
In October 2020, we partnered with Food Bank Yokohama to take part in the Movement to Support
Children’s Futures, which is being promoted by the Yokohama FC and the Cabinet Office. The
National Movement to Support Children’s Futures is a joint government-public-people’s initiative
spearheaded by the Cabinet Office to bring about a society where all children can grow up to havetheir dreams come true. The Company has provided food products and contributed to the openingof a children’s cafeteria sponsored by the Yokohama FC.

Food Bank Yokohama

The “Genki Curry” children’s cafeteria.
YOKOREI supports the center’s activities by
donating meats (pork and chicken) to use as
ingredients.

Activities as a Corporate Supporter

Human Resources Development
YOKOREI maintains facilities for employee development and training. In April 2020,
we opened the Yokohama Mirai HRD (Human Resource Development) with facilities
as a system development center, and the Yokohama Mirai Satellite providing
employees with on-the-job training. Yokohama Mirai HRD incorporates an IT systemdevelopment center able to develop large-scale software to support future strategic
ICT investment. Yokohama Mirai Satellite functions as a satellite center for logistic
centers nearby, while also providing practical training for employees.

Supporting Food Bank Yokohama and Collaborating with the
National Movement to Support Children’s Futures

YOKOREI contributes to sports promotion and the community as an Official
Club Top Partner for its local soccer club Yokohama FC, as well as being a
corporate supporter of the Enoshima Aquarium. In March 2021, theCompany concluded a sponsorship contract with the Yokohama DeNA
Baystars professional baseball team.

©YDB

Enoshima Aquarium
Yokohama Mirai HRD

Yokohama Mirai Satellite

Diversity Initiatives
We are supporting the advancement of women in the workplace, the active recruitment of foreign nationals, the creation ofenvironments where people with disabilities can work freely, and other initiatives that ensure diversity with the aim of creating
workplaces where employees can fully demonstrate their capabilities and individuality.

Support for Opening of the Japan Shogi Association’s “Hokkaido Workshop”
YOKOREI provided support to launch the Japan Shogi Association’s “Hokkaido Workshop” in orderto preserve traditional culture, as well as use shogi to teach children and contribute to local
communities. This organization, run by the Japan Shogi Association, aims to teach courtesy andmanners through shogi, and help raise boys and girls who aspire to improve themselves physicallyand mentally. Opened in October 2020, the Hokkaido Workshop is the fifth in Japan, alongsideorganizations in Tokyo, Kansai, Tokai, and Kyushu.

First session held at Hokkaido Shrine in Sapporo

Support for the Yokohama Municipal Board of Education
Active Roles for Female Employees and Career Continuation Support
YOKOREI supports the active participation of women in all positions throughout thecompany. Much of the general work at YOKOREI involves handling heavy cargo, so these
positions have typically been filled mostly by men. However, labor-saving advancements
and automation in warehouses in recent years has expanded opportunities for women. We
are taking steps to provide a work environment more conducive to women, including
renovating changing rooms, and establishing policies for maternity and childcare leave, andshortened working hours.

YOKOREI provides support for the various events conducted by the Yokohama Municipal Board of
Education for the city’s 280,000 elementary, junior high, high school, and special education students.

Mental Education Fureai Concert

YOKOREI offers a work environment inwhich women can play an active role

Support for Communities with New Logistics Facilities
Following completion of construction of the Kesennuma Sorting Spot II and Hirado Ice Factory,
YOKOREI made a total of ¥15 million in donations to support these two communities.

Introducing Automation and Labor Saving Systems
YOKOREI works to improve the work environment fortruck drivers and warehouse operations staff, andcontinue measures to ensure sustained and stable
logistics. In December 2017, YOKOREI developed andintroduced the truck reservation system to reduce theElectric movable racks
Cargo navigation system
Truck reservation systemamount of time trucks spent waiting, and to even out
warehouse operations. This system is currently in operation
at 7 business locations. YOKOREI has introduced electric movable racks at its logistics centers that significantly reduce the amountof time required for picking work. A cargo navigation system that works together with the movable racks allows for labor savingsand efficient warehouse operations.

22

Kesennuma Sorting Spot II completion
ceremony

Social Welfare Activities
YOKOREI introduced a system in 1973 to annually return a portion of its earnings to society. Examples
include support for the Yokohama City Council of Social Welfare, the Fishing Boat Accident Orphans
Scholarship Association, and the Kanagawa Shimbun Public Welfare and Culture Corporation. In
March 2021, YOKOREI received a commendation from the mayor of Yokohama for contributions to
the Yokohama City Council of Social Welfare over more than forty years to support welfare programs
and medical care in the area.

YOKOREI Integrated Report 2021

23

Financial and Non-Financial Highlights
Financial Highlights①売上高（百万円）③営業利益／当期純利益・売上高営業利益率（百万円）（％）②利払前・税引前・減価償却前利益④株主資本当期純利益率

Net Sales

EBITDA

Operating Income / Net Income* / Operating Income Ratio(¥ million)(¥ million)(¥ million)

200,000
160,000

159,045

12,000171,772
139,970

120,000

115,025 110,782

9,879

9,880

6,000

10,459

9,449

9,000

9,250

4,500

6,000

3,000

40,000

3,000

1,500

0

0

0

80,0002017/92018/92019/92020/92021/92017/92018/92019/92020/92021/93.3

5,179⑤配当金／配当性向⑪自己資本比率

Shareholders’ Equity Ratio

Dividends per Share / Payout Ratio(%)(¥)(%)

50
40
30

Earnings before interest, taxes, and depreciation (EBITDA) were ¥9,250
million, a decrease of 2.1% from the previous fiscal year, as operating income
declined while depreciation increased.

25
39.4

41.5

43.7

43.2

45.7

20

10

10

5
2017/923.0

2018/92019/92020/92021/9

Shareholders’ equity ratio was 45.7%, an increase of 2.5 percentage points
year over year.

Non-Financial Highlights⑧自然冷媒導入率

0

(%)

80
59.3

60.3

61.7

37.5

31.1
2017/92018/939.8

2019/92020/92021/963.8

2,340
2017/92019/92020/92021/92020/92021/9

0

4

3.0

3
2
1
0

2017/915,513
11,96012,4797,500

13,744

0

0

4,699

5,054

5,685

6,037

2019/92020/92017/92018/92019/92020/92021/90

2017/92018/9

Capital expenditures were ¥13,744 million, a decrease of 11.4% year overyear. The major capital expenditures in the fiscal year ended September 30,
2021, were related to construction of the Fukuoka ISLAND CITY Logistics
Center, Kesennuma Sorting Spot II, Chiba Research Park Logistics Center(tentative name), and Eniwa Smart Logistics Center (tentative name).

⑩グリーン経営認証拠点数⑫電気使用原単位

Per Unit Electricity Consumption(kWh/ton)

0

1,843

384

2,220
1,791

429

2,100

1,810 549

424

2018/92019/92020/92021/9

50
40

1,400
700

2017/92021/9Depreciation was ¥6,688 million, an increase of 10.8% year over year, due
to the opening of new business locations.

(locations)

1,471

6,688

1,500

Number of Sites with Green Management Certification

600

2021/9

3,000

6,000
3,000

6,000
4,500

9,000

15

2020/9⑦減価償却費(¥ million)

10,2102019/9ROE was 4.5%, an increase of 1.5 percentage points year over year, becauseof an increase in net income.

(¥ million)

12,0002018/9Operating income ratio

Depreciation

60

(t)

Solar Power Generation (Left)  

In the fiscal year ended September 30, 2021, the Company’s naturalrefrigerant usage rate was about 64%, much higher than the industry
average, which is around 40%.

Net income

2019/9

1

4.5

4.3

Payout ratio

200

2018/92018/92

4.6(Tens of thousands of kilowatts)

376

2017/9

3,385

3

5.1

5

Solar-cell Power Generation and Reduction of CO2 Emissions

400

20

2,562 3,605

6

Capital Expenditures
18,000

30

2.3

3,412

4

As net sales declined, operating income fell to ¥2,562 million, a decrease of
24.9% year over year, but net income rose to ¥3,605 million, an increase of
54.0% year over year, as a result of posting ¥2,646 million in extraordinary
profit from the sale of shares in subsidiaries accompanying the restructuringof the Norwegian fish farming business.
⑥設備投資額15,000

45

3,343

3.0

(%)

* Profit attributable to owners of parent

75

Net income per share for the fiscal year ended September 30, 2021, was¥61.30, an increase of ¥21.44 from the previous fiscal year, and the annual
dividend was ¥23, for a dividend payout ratio of 37.5%. The Company’s
policy is to maintain a stable, long-term dividend, paying dividends twice ayear, at mid-year and at year-end.

40

0

23.0

⑨太陽光発電による発電および CO2 削減量

Natural Refrigerant Usage Rate

60

23.0
57.7

38.6

Dividends per share (Left)  

58.4

23.0

15

20

0

20.0

2.8 4,774

3,360

Operating income

Net sales totaled ¥110,782 million, a decrease of 3.7% from the previous
fiscal year. During the novel coronavirus pandemic, trade volume fell andsales declined as we moved forward with structural reforms to the Food Sales
Business and conducted sales that stressed profitability.

3.4

4,825

Return on equity (ROE)

(%)

0

38

39

40

42

43

21.5

30

20.5

20

20.0

10

19.5

0

2017/92018/92019/92020/920.7

21.0

2021/9

18.5

20.3

20.1
19.2
2015/92017/92019/919.4

2020/92021/9Reduction CO2 Emission

At present, 17 of our domestic logistics centers and 2 overseas logistics
centers are operating with solar-cell power generation systems. For the fiscal
year ended September 30, 2021, their annual power generation totaled 5.49
million kWh, which corresponds to a reduction of 2,220 tons in CO2 emissions.

All our facilities, except new ones, have received Green Management
Certification as business facilities that are implementing best environmental
practices of a certain level or higher.

The Company has set the goal of reducing per unit electricity consumption
1% year over year by increasing energy efficiency. During the fiscal year
ended September 30, 2021, the volume of cargo handled declined due tothe novel coronavirus pandemic, and per unit electricity consumption
increased 4.6% year over year to 20.3 kWh/ton.
Per unit electricity consumption: An indicator showing how much electricity is used to handle one tonof cargo. The lower the value, the greater the energy efficiency.
Per unit energy consumption for one year = Electricity used over the year ÷ Cargo handled over the year

24

YOKOREI Integrated Report 2021

25

Main Consolidated Financial Indicators
2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

Net sales

110,782

115,025

139,970

171,772

159,045

148,609

154,767

141,654

118,691

111,108

124,051

EBITDA

9,250

9,449

10,459

9,880

9,879

9,407

8,339

7,988

7,244

4,620

7,292

Operating income

2,562

3,412

4,774

4,825

5,179

5,169

3,874

4,105

3,729

1,083

4,193

Net income

3,605

2,340

3,385

3,343

3,360

2,932

2,517

1,835

2,308

199

1,668

Operating income ratio (%)

2.3

3.0

3.4

2.8

3.3

3.5

2.5

2.9

3.1

1.0

3.4

Return on sales (%)

3.3

2.0

2.4

1.9

2.1

2.0

1.6

1.3

1.9

0.2

1.3

Gross profit margin (%)

12.5

12.1

10.8

8.8

9.2

8.4

7.4

8.1

8.9

7.3

8.9

SGA ratio (%)

10.1

9.1

7.4

6.0

5.9

4.9

4.9

5.2

5.8

6.4

5.5

¥ million

Net sales, operating income, and net income*

Profitability ratios

Total assets, total shareholders’ equity, and interest-bearing debt
Total assets

178,203179,935

179,247

186,791

173,699

145,232

118,901

114,210

97,59390,93793,065

Total shareholders’ equity

77,55075,24874,122

72,18164,36961,13059,22857,79956,98955,71656,553

Net assets

82,56879,97580,58078,85869,68863,02762,322

59,63558,15955,63956,562

Interest-bearing debt

79,33082,346

79,94989,47883,84563,92742,78938,27425,81624,011

22,130Shareholders’ equity ratio (%)

45.7

43.2

43.7

41.5

39.4

42.7

51.6

51.5

59.1

60.8

60.4

Debt/Equity ratio (%)

102.3

109.4

107.9

124.0

130.3

104.6

72.2

66.2

45.3

43.1

39.1

Capital expenditures

13,744

15,513

12,479

11,96010,21012,721

4,556

13,929

3,919

4,965

8,389

Depreciation

6,688

6,037

5,685

5,054

4,699

4,237

4,465

3,882

3,515

3,536

3,098

Return on equity (ROE) (%)

4.5

3.0

4.3

4.6

5.1

4.8

4.2

3.2

4.1

0.4

3.0

Return on total assets (ROA) (%)

2.0

1.3

1.8

1.9

2.1

2.2

2.2

1.7

2.4

0.2

1.9

Price/Earnings ratio — PER (times)

14.47

22.90

17.92

15.45

16.49

18.92

19.34

22.94

18.13

148.3318.24

Price/Book value ratio — PBR (times)

0.64

0.69

0.77

0.70

0.82

0.89

0.79

0.72

0.73

0.54

0.54

Price/Cash flow ratio — PCFR (times)

5.35

6.13

6.76

6.43

7.41

7.92

7.08

7.44

7.70

7.64

6.50

Net income per share (EPS) (¥)

61.30

39.86

57.77

59.63

64.28

56.66

48.66

35.48

44.61

3.85

32.25

Book value per share (BPS) (¥)

1,383.60

1,321.34

1,336.12

1,321.87

1,298.88

1,198.56

1,185.23

1,135.88

1,114.84

1,068.19

1,085.92

Cash flow per share (CFPS) (¥)

165.71148.95153.17143.25143.05135.39132.89109.38105.13

75.00

90.43

Dividends per share (¥)

23.00

23.00

23.00

23.00

20.00

20.00

20.00

20.00

20.00

20.00

20.00

Payout ratio (%)

37.5

57.7

39.8

38.6

31.1

35.3

41.1

56.4

44.8

520.0

62.0

Capital expenditures and depreciation

Return indicators

Investment indicators

Per share value indicators

Dividends and payout ratio

M Methods of Calculating Main Financial Indicators
EBITDA = Operating income + Depreciation
Operating income ratio = Operating income/Net sales ×100
Return on sales = Net income/Net sales ×100
Gross profit margin = Gross profit/Net sales ×100
SGA ratio = Selling, general and administrative expenses/Net sales ×100
Shareholders’ equity ratio = Total shareholders’ equity/Total assets ×100
Debt/Equity ratio = Interest-bearing debt/Shareholders’ equity ×100
Return on equity (ROE) = Net income/Average shareholders’ equity ×100
Return on total assets (ROA) = Net income/Average total assets ×100
Cash flow per share (CFPS) = (Net income + Depreciation and amortization + Deferred income tax)/Outstanding shares* Net income on this page represents profit attributable to owners of parent.

26

YOKOREI Integrated Report 2021

27

Share Trends by Business

Stock Information (As of September 30, 2021)

Refrigerated Warehousing Business, Industry Comparison Warehousing Volume by Product (Excluding intersegment transactions)

Securities Code

2874

Stock ListingFirst Section, Tokyo Stock Exchange

Share Handling Agent

Mitsubishi UFJ Trust and Banking Corporation

Authorized Number of Shares

160,000,000 Shares

Number of Shares Outstanding

59,266,684 Shares

Share Trading Unit

100 Shares

Number of Shareholders

16,230Credit Ratings

Japan Credit Rating Agency, Ltd. Long-term: A-(Thousand tons)

2021
Fishery
products

YOKOREI (Share)
Japan Association of Refrigerated
Warehouses 12 cities

Livestockproducts

YOKOREI (Share)
Japan Association of Refrigerated
Warehouses 12 cities

Agricultural YOKOREI (Share)products
Japan Association of Refrigerated
Warehouses 12 cities
FrozenYOKOREI (Share)
foods, otherJapan Association of Refrigerated
Warehouses 12 cities
Total

185

(9.4%)

1,959
476(11.1%)(15.5%)(11.3%)

1,382

Japan Association of Refrigerated
Warehouses 12 cities

12,179-2.9%(-0.2pt)(9.4%)

490-2.6%(0.1pt)192(11.3%)(0.9pt)486(15.4%)(10.4%)(0.2pt)

0.1%

1,348

4.5%

(+0.9pt)

12,172(10.2%)

469(10.4%)

4,508-11.5%(-0.7pt)

217(16.1%)

1,345

-5.1%

(-0.2pt)-3.7%(11.1%)

208
2,036

-7.6%

4,662

2.5%

(-0.8pt)

-3.6%

1,243

9.9%

-13.5%
-5.7%

4,347

0.9%
(11.3%)

180

2019

YoY

1,920

-2.7%

4,705

YOKOREI (Share)(0.0pt)

-0.9%

1,209
534

2.8%
2.0%

4,306
187

2020

YoY

512

(10.6%)(As of August 13, 2021)

4,843

-4.1%

(+0.1pt)

-4.4%

1,406

(11.0%)

12,732

Principal Shareholders
Name

Refrigerated Warehousing Business, Industry Comparison Month-End Inventory Accumulation by Product (Excluding intersegment transactions)2021
Fishery
products

Livestockproducts

YOKOREI (Share)
Japan Association of Refrigerated
Warehouses 12 cities

6,090

YOKOREI (Share)

1,218Japan Association of Refrigerated
Warehouses 12 cities

8,838

Agricultural YOKOREI (Share)products
Japan Association of Refrigerated
Warehouses 12 cities
FrozenYOKOREI (Share)
foods, otherJapan Association of Refrigerated
Warehouses 12 cities
Total

827

959

(13.6%)(13.8%)(29.6%)

3,633

Japan Association of Refrigerated
Warehouses 12 cities

23,323-8.1%(0.1pt)-6.2%(-1.1pt)

1,325

1,022

2.4%

(0.5pt)614(13.7%)(0.0pt)

-5.8%

3,857

(-0.2pt)

The Master Trust Bank of Japan, Ltd.

5,275

8.93

2019

Matsuoka Co., Ltd.

2,551

4.32

The Dai-ichi Life Insurance Company, Limited

2,205

3.73

The Bank of Yokohama, Ltd.

2,176

3.68

The Norinchukin Bank

1,473

2.49

Hacchoko Co., Ltd.

1,411

2.39

(30.7%)YOKOREI Employee Shareholding Association

1,192

2.01

SAKATA SEED CORPORATION

1,022

1.73

15.0%

(+1.0pt)

DFA INTL SMALL CAP VALUE PORTFOLIO

1,014

1.71

YOKOHAMA SHINKO CO., LTD.

  892

1.51

4.2%

(+1.6pt)

24,764

1,152(12.7%)

981(29.1%)

3,367

-4.8%

(-0.7pt)

0.9%(15.6%)(14.0%)

9,070

-1.1%
(11.7%)

971
6,927

6.8%

5,243

-5.8%

-7.7%
-6.0%

3,329

-1.7%
(15.6%)(13.8%)

9,684

-2.6%
(12.2%)

896
6,508

-8.7%

5,153

YOKOREI (Share)2020(-0.2pt)

-6.4%

3,242
629

-7.7%

YoY

645

(12.4%)

5,198

2.9%

(+0.3pt)

0.8%

3,749

Note: The shareholding ratio has been calculated excluding treasury stock (211,025 shares).

(15.3%)

24,562

Breakdown of Shareholders by Type

Breakdown of Shareholders by Number of Shareholders
Held (Thousand shares)

Food Sales Business, Sales Volume and Unit Price by Major Product (Consolidated Basis)
(Tons)

2021

2020

YoY

Ratio of
Shareholding(Thousand tons)



YoY

Number of Shares
Held(Thousand Shares)

Treasury stocks: 211

Financial institutions: 30 0.2%

2019

YoY

 Pork

Sales Volume (Unit Price (Yen))

25,401(469)-5,529(-23)

30,930(492)-4,165(+1)

35,095(491)

 Chicken

Sales Volume (Unit Price (Yen))

11,617

(277)

358

(-10)

11,259(287)-1,531(-15)

12,790(302)

 Beef

Sales Volume (Unit Price (Yen))

2,657

(897)

-831

(-53)

3,488

(950)

-950

(-79)

4,438

(1,029) Salmon
Sales Volume (Unit Price (Yen))
and trout

7,065

(698)

-1,725

(-67)

8,790

(765)

-6,681(-176)

15,471(941)

 Scallop

Sales Volume (Unit Price (Yen))

4,721(1,036)

1,234(-115)

3,487(1,151)-1,585(+185)

5,072

(966)

 Mackerel

Sales Volume (Unit Price (Yen))

49,494

(177)

3,339

(-5)

46,155(182)-23,540(+5)

69,695(177)

 Shrimp

Sales Volume (Unit Price (Yen))

4,239(1,107)

-481

(147)

4,720

(960)

-713

(-147)

5,433(1,107)

 CrabSales Volume (Unit Price (Yen))

1,051(3,199)

-91

(673)

1,142

(2,526)-260(-760)

1,402(3,286)

 Squid

Sales Volume (Unit Price (Yen))

13,648

(358)

4,837

(-104)

8,811

(462)

1,234

(-62)

7,577

(524)

 AtkamackerelSales Volume (Unit Price (Yen))

9,831

(334)

-1,130(-21)

10,961(355)-3,728(-24)

14,689(379)

 EelSales Volume (Unit Price (Yen))

1,941(2,760)-174(-417)

2,115(3,177)188(-611)

1,927(3,788)Treasury stocks: 1

0.01%

Individuals and others:
15,849 97.7%

Financial instruments and exchange dealers:
23 0.1%

0.4%

Financial institutions: 15,670 26.4%
Individuals and others:
25,499 43.0%

Financial instruments and exchange dealers:
685 1.2%

Other domestic corporations:
173 1.1%
Foreign companies and foreigners:
154 0.9%

Foreign companies and foreigners:
6,108 10.3%

Other domestic corporations:
11,091 18.7%

Number of Shares Outstanding and Market Capitalization (Fiscal Year-End)

28

Number of shares outstanding (shares)
Market capitalization (¥ million)

2021

2020

2019

2018

2017

2016

59,266,684

59,266,684

59,266,684

59,266,684

53,436,216

52,456,229

52,56954,11061,341

54,58456,642

56,233

YOKOREI Integrated Report 2021

29

Corporate Data (As of September 30, 2021)
Trade NameYOKOREI Co., Ltd.

Head Office

7th Floor, Minato Mirai Grand Central Tower, 4-6-2 Minato Mirai,
Nishi-ku, Yokohama 220-0012
TEL. 045-210-0011 FAX. 045-210-0018
https://www.yokorei.co.jp/

EstablishedMay 13, 1948

Capital14,303.42 million yen

Number of Employees 1,652 (consolidated); 1,334 (non-consolidated)
Business Activities

1. Refrigerated and ordinary warehousing
2. Processing, sale, and import/export of marine products
3. Processing, sale, and import/export of agricultural and livestock products
4. Real estate leasing
5. Customs clearance
6. Freight forwarding and trucking
7. Restaurant and coffee shop management; food and drink sales
8. Other related businesses (business purpose in the Articles of Incorporation)

Contact
Public Relations and IR Dept.
TEL. 045-210-0011
Fax 045-210-0018

Company History
1948

1953

May

Nov.

Company established as Yokohama Reito Kigyo Co., Ltd.,
with business o­ perations centered on the sale and exportof frozen marine products, and the cold storage offrozen foods.

1962

Dec.

Listed on Second Section of Tokyo Stock Exchange.

Dec.

Thai Yokorei Co., Ltd. established (currently aconsolidated subsidiary).

1991

Mar.

Listing moved to First Section of the Tokyo Stock
Exchange.

1994

Feb.

Fukuoka Logistics Center and Ishikari Logistics Center
completed.

1995

Feb.

Rokko Logistics Center completed.
The Company’s storage capacity passed the 0.4 million
ton mark.

Jul.

Shibushi Logistics Center and Sasebo Cold Storage
completed; Sasebo Sales Office opened.

1998

Mar.

Tokyo 2nd Logistics Center completed.

1999

Aug.

Kazo Logistics Center completed.
The Company’s storage capacity passed the 0.5 million
ton mark.

2003

Aug.

Tsurugashima Logistics Center completed.

2005

Sep.

Miyakonojo Logistics Center completed.
The Company’s storage capacity passed the 0.6 million
ton mark.

2007

Mar.

Yokohama Logistics Center completed.

2008

Jul.

Tokachi 2nd Logistics Center completed.
The Company’s storage capacity passed the 0.7 million
ton mark.

Dec.

Apr.

Diamond Tokachi Co., Ltd. established.

Apr.

Ishikari 2nd Logistics Center completed.

Jul.

Yumeshima Logistics Center completed.

Oct.

Miyakonojo 2nd Logistics Center completed.

2015

Aug.

Bangpakong 2nd Distribution Center completed.
The Company’s storage capacity passed the 0.9 million
ton mark.

2016

Mar.

Syvde Eiendom AS (Kingdom of Norway) became asubsidiary.

Jul.

HIYR AS (Kingdom of Norway) established.

Jul.

Fjordlaks Aqua AS (Kingdom of Norway) became asubsidiary. (Currently Hofseth Aqua)

Aug.

Tokachi 3rd Logistics Center completed.

Nov.

Tokachi Sorting Spot completed.

2017

Jun.

Satte Logistics Center completed.

2018

Feb.

Tokyo Haneda Logistics Center completed.

May

YOKOREI makes its 70th anniversary.

Nov.

Meiko Logistics Center completed.

Jan.

Merger and integration of Alliance Seafoods Inc. andClover Trading Co., Ltd.

Feb.

Tsukuba Logistics Center completed.
The Company storage capacity passed the 1.0 million
ton mark.

May

Yokohama Mirai HRD and Yokohama Mirai Satellite
completed.

Jun.

Nagasaki Sorting Spot completed.

Jan.

Fukuoka ISLAND CITY Logistics Center completed.

Corporate name changed to Yokohama Reito Co., Ltd.

1989

1997

2014

2020

2021

Equity investment in Seiwa Food Corporation (Clover
Trading Co., Ltd.).

Jul.

Kesennuma Sorting Spot II completed.

Aug.

Hirado Ice Factory completed.

Sep.

HIYR AS and Hofseth Aqua AS removed from scope of
consolidation.

2009

Jun.

Alliance Seafoods Inc. established.

2011

Oct.

Wang Noi Distribution Center completed (Thai Yokorei).

Dec.

Best Cold Chain Co., Ltd. established (joint venture with
Nisshin Corporation).

2012

Aug.

Kimobetsu Logistics Center completed.

2013

Jul.

Yokorei Co., Ltd. (Kingdom of Thailand) established.

Dec.

Wang Noi 2nd Distribution Center completed (Thai
Yokorei). 
The Company’s storage capacity passed the 0.8 million
ton mark.