Securities Code: 2874

YOKOREI Integrated Report 2022
Fiscal Year Ended September 30, 2022

Corporate Philosophy

At a Glance
2023

Net Sales (FY9/22)

Operating Income (FY9/22)

75th Anniversary

115.2 billion yen

4.25 billion yen

EBITDA (FY9/22)

Composition of Sales (FY9/22)

Since our founding, Yokorei has acted upon the policy that“companies are social institutions and profits are a measure of their service”
and we aim to be a company that is loved by our customers and our region.
— Yokorei was launched with the goal of being a company that benefits society.

Domestic Network
Refrigerated Warehousing Business Number oflogistics center and sorting spots (as of September 2022)

10.6 billion yen

Food Sales Business

73.9%

Sales
Breakdown

49 bases
27 bases

Refrigerated
Warehousing Business(5 customs clearance bases)

26.1%

Food Sales Business— We 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 tosocial development both in Japan and overseas through our business activities.

Refrigerated Warehousing Business

Food Sales BusinessYokorei and its network of overseas

Yokorei and its subsidiaries in Japansubsidiaries provide refrigerated

and overseas provide processing,and frozen warehousing for marine,

sales, and import/export services

agricultural and l­ivestock products,

for marine, agricultural, and livestockalong with related businesses.

products.

Industry-Leading Storage Capacity and Rate of Adoption of
Natural Refrigerants

Product Procurement Capabilities to Meet Diverse Needs

Proactive capital investment is an integral part of Yokorei’s growth strategy. We
currently have over 1.0 million tonnes of storage capacity worldwide and a rate ofadoption for natural refrigerants of about 68%. This extensive storage capacity
allows us to maintain our position as an industry leader, and supports stable growth.

Refrigerated Warehouse
Storage Capacity(Thousand tons)

Storage Capacity

1,200

Approx. 83%
Increase(2000-2022)

1,000

Yokorei Capacity (HCFCs)
Yokorei Capacity (Natural Refrigerants)

Proportion of
Natural Refrigerant Use
Approx. 68%

800
600
400

One of Yokorei’s strengths is the procurement capabilities provided by its
extensive trading network, allowing us to respond accurately to product needs
in Japan and overseas. We import products from around the world, mainly
Northern Europe and Southeast Asia, as well as North America, South America,and Australia. We also procure domestic products from across Japan, mainly
through our sales offices in producing regions, and supply them to our trading
partners in Japan and overseas.

The Yokorei Group’s Principal Overseas Network

SalmonCrab

Mackerel

Salmon0CrabFlatfish

Pork

Mackerel

Shrimp

Crab

Pork

Atka
mackerel
Beef

Chicken

Scallop Eel
Chicken

200
2005
2010
2015
2020
2021
2022
Note: Yokorei capacity figures include those of overseas consolidated subsidiaries.
* Effective from the fiscal year ended September 30, 2021, the non-consolidated subsidiary PAX
FREEZER Co., Ltd. is excluded from the scope of calculation.

ImportExport

Pork

Chicken

Beef
SalmonContents
1

At a Glance

16

Financial and Non-Financial Highlights

32

Main Consolidated Financial Indicators

About this report

2

Yokorei Growth Trajectory

18

Business Activities

34

Non-Financial Data

4

Message from the President

18 / R efrigerated Warehousing Business35

6

Yokorei Value Creation Process

20 / F ood Sales Business

External Recognition, Investor FAQ,
Attestation of Validity

8

Changes in the Business Environment,
Risks & Opportunities

Corporate Governance36

Share Trends by Business24 / D irectors, Audit & Supervisory Board
Members, Corporate Officers

37

Stock Information

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 reforms,
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 IFRS Foundation

38

Corporate Data

22

10

Materiality

12

Overview of the Medium-Term
Management Plan (Phase I)

27

Compliance and Risk Management

Financial Strategy

28

Environmental and Social Initiatives

14

Editorial Policy

YOKOREI Integrated Report 2022 was compiled as a financial and non-financial information report for Yokorei Co., Ltd. The report is focused on activities in FY2022 (from October 1, 2021 to September 30,2022) and some reports from after October 2022 are included. Moreover, department and job titles of related parties are those at the time of the activity. We also provide comprehensive and detailed
information for our stakeholders to better understand our company on our website (https://www.yokorei.co.jp/en/).

Disclaimer

This report contains statements about Yokorei and Yokorei Group Companies’ future plans, strategies, performance forecasts, and outlooks. These are projections based on our beliefs and assumptions using
the information currently available to the Company at the time of compilation.

26 / M essage from an Outside Director

YOKOREI Integrated Report 2022

1

Yokorei Growth Trajectory

2013 Dec.

Wang Noi 2nd Distribution
Center completed (Thai Yokorei).

2008 Jul.

For more than seven decades since its founding in 1948, Yokorei has
remained true to its corporate principles, continually being a conscious
company that exists for the community, and fulfilling its role of supporting
Japan’s dietary life through food distribution. This section presents thehistory of value creation at Yokorei over the years.

Tokachi 2nd Logistics
Center completed.

the2015 Aug.

0.7 million ton

Bangpakong 2ndDistribution
Center completed.

mark.

Listing moved to First Section of1991 the Tokyo Stock Exchange.

2005 Sep.

1999 Aug.

Kazo Logistics Center
completed.

Net sales

Miyakonojo Logistics
Center completed.

2020 Feb.

Tsukuba Logistics
Center completed.
The Company
storage capacity passed
the

1.0 million ton
mark.

0.9 million ton
mark.

The Company’s
storage capacity passed
the

the

The Company’s
storage capacity passed
the

The Company’s
storage capacity passed

Anniversary

0.8 million ton
mark.

The Company’s
storage capacity passed

75th

70th

Anniversary

The Company’s
storage capacity passed
the

2023

2018

0.6 million ton

Moved to Prime Market of2022 Tokyo Stock Exchange

mark.

0.5 million ton
mark.

1995 Mar.

Rokko Logistics Center
completed.
The Company’s
storage capacity passed
the

0.4 million ton
mark.

Listed on Second Section of1962 Tokyo Stock Exchange.
1948 Yokorei Established'48 '49 '50 '48'51 '49'52 '50'53 '51'54 '52'55 '53'56 '54'57 '55'58 '56'59 '57'60 '58'61 '59'62 '60'63 '61'64 '62'65 '63'66 '64'67 '65'68 '66'69 '67'70 '68'71 '69'72 '70'73 '71'74 '72'75 '73'76 '74'77 '75'78 '76'79 '77'80 '78'81 '79'82 '80'83 '81'84 '82'85 '83'86 '84'87 '85'88 '86'89 '87'90 '88'91 '89'92 '90'93 '91'94 '92'95 '93'96 '94'97 '95'98 '96'99 '97'00 '98'01 '99'02 '00'03 '01'04 '02'05 '03'06 '04'07 '05'08 '06'09 '07'10 '08'11 '09'12 '10'13 '11'14 '12'15 '13'16 '14'17 '15'18 '16'19 '17'20 '18'21 '19'22 '20'23 '21'24 '22'25 '23 '24 '25

1950

1960

1970

1980

1990

2000

2010

2020

Needs required of Yokorei
Refrigerated
Warehousing Business
Food Sales BusinessFood-related needs
arising from post-war
rapid economic
growth andurbanization

Refrigerated warehouse business launched to store
fresh marine products.

Marine products such as fish and shrimp, importantsources of protein for Japanese facing food shortages
in the post-WWII period, which were landed in
Yokohama are sold to wholesalers nationwide.

Reliable and safe,
high-quality foodinfrastructure

Yokorei responded to growing needs for quality control with
employee-centered operations built on accumulated productknowledge and technical skills, along with natural convection
cooling to allow for long-term storage without loss in quality.
Yokorei adopted strict food defense measures to mitigate therisk of contamination from foreign substances. An integrated,in-house management system was put in place for the entire
distribution process, including import/export, storage, sorting,freezing, and sales, to ensure a safe and reliable food supply.

Yokorei is reducing GHG emissions by replacing conventional
freezers with equipment using natural refrigerants. Solar
power systems have also been installed on rooftops at 17
facilities in Japan, and two distribution centers overseas.

Environmentallyfriendly food
distribution

Yokorei is utilizing a procurement and supply structure thattakes into account the impact on the environment andecosystems, including proactively handling the Marine
Stewardship Council (MSC) and Aquaculture StewardshipCouncil (ASC) certified products.

Business History
1950-1990’s
1948

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

1953

Nov.

Corporate name changed to Yokohama Reito Co., Ltd.

1989

Dec.

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

1994

2

May

Feb.

Fukuoka Logistics Center and Ishikari Logistics Center
completed.

1997

Jul.

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

1998

Mar.

Tokyo 2nd Logistics Center completed.

2000-2010’s
2003

Aug.

Tsurugashima Logistics Center completed.

2007

Mar.

Yokohama Logistics Center completed.

2008

Dec.

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

2020’s2016

Mar.

Syvde Eiendom AS (Kingdom of Norway) became asubsidiary.

Jul.
Jul.

Jan.

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

HIYR AS (Kingdom of Norway) established.

Feb.

Tsukuba Logistics Center completed.

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

May

Yokohama Mirai HRD and Yokohama Mirai Satellite
completed.

2009

Jun.

Alliance Seafoods Inc. established.

2011

Oct.

Wang Noi Distribution Center completed (Thai Yokorei).

Aug.

Tokachi 3rd Logistics Center completed.

Dec.

Best Cold Chain Co., Ltd. established (currently aconsolidated subsidiary).

Nov.

Tokachi Sorting Spot completed.

2017

Jun.

2012

Aug.

Kimobetsu Logistics Center completed.

2018

Feb.

2013

Jul.

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

May

Yokorei makes its 70th anniversary.

* Name changed to Yokorei (THAILAND) Co., Ltd. on Dec. 1, 2021.

Nov.

Meiko Logistics Center completed.

2014

Apr.

Diamond Tokachi Co., Ltd. established.

Apr.

Ishikari 2nd Logistics Center completed.

Jul.

Yumeshima Logistics Center completed.

Oct.

Miyakonojo 2nd Logistics Center completed.

2020

Jun.

Nagasaki Sorting Spot completed.

Jan.

Fukuoka ISLAND CITY Logistics Center completed.

Satte Logistics Center completed.

Jul.

Kesennuma Sorting Spot II completed.

Tokyo Haneda Logistics Center completed.

Aug.

Hirado Ice Factory completed.

Sep.

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

2021

YOKOREI Integrated Report 2022

3

Message from the President

For a brighter food future– Yokorei will ensure a stable

food supply to help support a sustainable society
long-term visions for the decade until 2030—Yokorei BusinessC reating social value through sustainable management

Vision 2030 and Yokorei Sustainability Vision 2030. “We promise to

We are also making various efforts regarding sustainability. As aprovide smart cold services combining tradition and innovation,”food-related company, we know that the risks and opportunities

was set the aspiration for our Refrigerated Warehousing Businessof climate change are a key management issue. As part of ourand “We will realize the distinctive food value together withcommitment to “Harmony with the Global Environment,” one ofcustomers, preserve our close relationship with producers, andour key material issues, we expressed our support for the Task

add to the richness of the world’s tables” for our Food Sales

Force on Climate-related Financial Disclosures (TCFD) and joined

Business and are promoting various measures to realize these

the TCFD Consortium in December 2021.  See p. 28-29 for details.

goals.
In addition, under the Sustainability Vision 2030 “For a brighter

in April 2022 we shifted all six of our refrigerated warehouses infood future – Yokorei will ensure a stable food supply to help

the Hokkaido to virtually 100% renewable energy power. This

support a sustainable society,” we aim to achieve qualitative andswitch to renewable energy is expected to reduce annual CO2

quantitative targets for five material issues.  See p. 12 for details.

emissions by approximately 8,200 tons.

Hiroyuki Matsubara
President andRepresentative Director, CEO Our mission to provide a stable supply of safe andreliable food products

environmental, social, and economic issues.

Since Yokorei’s founding in 1948, we have followed our corporatekind to the environment and that protect food stability in Japanphilosophy that “companies are social institutions and profits are

by valuing our connections to local communities. In our ongoinga measure of their service,” and have always held being a company

efforts to support Japan’s dietary life, we are striving to makethat benefits the region as an important value. In 2023, we willfurther progress toward enriching the world’s dining tables.

Yokorei has continued to pursue business activities that arecelebrate our 75th anniversary as a company engaged in the

4food distribution industry and playing a role in supporting the Vision for 2030

food industry in Japan.

The Yokorei Group’s business environment remains uncertain,

Currently, the food distribution industry is approaching aclouded by the yen’s continued depreciation, rising electricity

turning point. The way people purchase goods is shifting fromcosts due to soaring energy prices, and the prolonged crisis instore-based shopping to internet shopping (e-commerce)

Ukraine.

making distribution more complicated and diverse. Companies

In countries around the world, large-scale natural disasters andneed to acknowledge this change and learn to deal with it.

environmental problems are becoming more serious each year,

However, an even greater change is occurring as the worldand efforts toward carbon neutrality are accelerating. In Japan,

moves to solve the biggest issues facing it. Within thispopulation decline and low food self-sufficiency are major issues.

environment, it is crucial for companies to actively incorporate

In this environment, the Yokorei Group announced insustainable management practices that enable them to tackle

November 2020 that were are advancing policies outlined in two

As one of our concrete efforts to decarbonize our operations,

In addition, due to progress in ESG-related disclosures, Yokorei Steady progress of the Medium-Term Management
Plan – “The Power to Create”

was selected for the first time as a constituent of the “FTSE

As the first stage toward the realization of each vision, the Yokorei

provider FTSE Russell. We will continue to strengthen our ESG

Group is promoting the Medium-Term Management Plan

initiatives to realize a sustainable society and increase our(Phase I) “The Power to Create”, which ends in 2023.

corporate value.

Blossom Japan Sector Relative Index” established by global index

In the Refrigerated Warehousing Business, we will expand ourIn the area of governance, we have established a Sustainability

refrigerated warehouse network through aggressive

Committee that the President and Representative Director chairs,

development of eco-friendly distribution centers and continue to

we have implemented the PDCA (plan-do-check-adjust) process,invest in digital transformation (DX) and IT robotics to achieve

and our Board of Directors has set up a structure for identifying

greater productivity with a smaller workforce. In the Food Sales

and monitoring the status of our risks and opportunities.

Business, we will expand cooperation between business locations

 See p. 22-29 for details.

and promote a shift from quantity to quality while expanding
sales of strategic business products such as Norwegian salmon, Message to Stakeholders who Co-create Value

which is one of our strengths, and building a stable procurement

As experts in food distribution that are kind to people, things, andand supply network for food material.

the globe, we will take into consideration environmental andWhile the promotion of each of these objectives steadily showssocial problems, and actively work to achieve sustainable

results toward achieving our quantitative targets, the Yokorei

development goals (SDGs), while broadly expanding business.

Group is aiming for consolidated net sales of ¥124,000 million,

We will also contribute to a safe, secure, and stable supply of food,operating income of ¥5,000 million, ordinary income of ¥5,200

with an eye toward the 80th and 100th anniversary of themillion, and ¥3,400 million in profit attributable to owners of thefounding of the Company.

parent in the fiscal year ending September 30, 2023.
 See p. 13 for details.

I humbly ask all of you to bestow us with your firm support.

Hiroyuki Matsubara
President andRepresentative Director, CEO

YOKOREI Integrated Report 2022

5

Yokorei Value Creation Process
Yokorei conducts business to ensure a stable food supply for Japan, while bearing in mind the importance ofenvironmental conservation and connections with local communities. Yokorei generates social and economic value by
utilizing its accumulated resources to the greatest extent possible and addressing a broad range of social challenges.
Business Model

Outputs

Natural Capital

FY2022 Net Sales Solar power generating capacity: 19 locations, 6.5 MW¥115.2 billion

Refrigerated Warehousing Business Energy consumption: 141,881 MWh Water consumption: 362,598 m

3Manufactured Capital Refrigerated warehouses:

49 locations in Japan, five in Thailand, total storage
capacity 1.04 million tonnes

Outcome

Customs
Clearance /Freezing

Warehousing

Sorting

Storage

Shipping

Delivery Food Sales
Business

Sales
Breakdown Refrigerated
Warehousing
Business

26.1%¥30.0 billion

73.9%¥85.2 billion Sales business:

27 locations in Japan, one in Thailand

Varied service lineup Marine products sorting and freezing facilities:
Six locations in Japan

Materiality Ice factory:• Logistics Outsourcing Service

One location in Japan
11 locations in Japan (Tohoku, Kyushu) Domestic (Kyushu) and overseas fish farming business

Food Sales Business Capital investment:¥7.0 billion

Human Capital

Provide Better Quality
and Service

1,639 employees (consolidated)
Human resources supporting “Yokorei Quality”

Cultivation /Procurement /Production

Planning andDevelopment

Processing(consignment)

Sales

DeliveryHuman resource development via enhanced

Develop together
with Communities

education and training

Expanded personnel structure in ASEAN region(including Thai subsidiary)

Strengthen the Business
Foundation and
Ensure Soundness

YLS (Yokorei Logistics System)• Customs Clearance Service• Storage Operations• Delivery Service• ICT Service

YIS Service (Yokorei Information System)• Loading and unloading records•R eal-time customs clearance status andinventory data computers in real time

• Consolidated, multi-distribution
logistics service
Logistics efficiency through DC(storage) and TC (transit) / Support forenvironmental management

Marine Products(Employee operations, etc.)

Food Sales
Business

Create a Rewarding
Workplace

Refrigerated
Warehousing BusinessHarmony with
the Global Environment Marine products buying rights:

Livestock

Natural Capital

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

Inputs (FY2022)

 Solar power generating capacity:

20 locations, 7 MW (+1 location/+0.5MW
compared to FY9/22)

 CO2 reductions from solar power:

3,200 tonnes annually (2,855t in FY9/22)

 Natural refrigerant implementation rate:
70% (+1.9ppt from FY9/22)

 GHG emissions (per storage capacity, comparedto FY9/15):
30% reduction (31% reduction in FY9/22)

Manufactured Capital Expanded logistics network from new

refrigerated warehouses:
50 locations in Japan, five in Thailand, total
storage capacity of 1.07 million tonnes (+1location/+30,000t compared to FY9/22)

 Labor savings from advancements in
automation Additional facilities in ASEAN region Expanded strategic business product sales Development of original products such as
in-house brands

and development of specialist personnel Proportion of employees reporting job
satisfaction:
70% or higher (+3.9ppt from FY9/22)

positions: 10% (+2.8ppt from FY9/22)

Agricultural Products

 ocial and Relationship
S
Capital Business offices rooted in in production, sales, and logistics

The Business Foundation that

regions throughout Japan, from Hokkaido to Kagoshima Business partner and supplier network in Japan and overseas Revitalization of local industries Reduction in food waste Stable food supply through building of a

Supports Yokorei Quality

sustainable supply chain 1% of profit donated to charity
 Sponsor contracts

Three Reform Support activities utilizing business assets

EnginesFinancial Capital(food items and storage) Stable business foundation supported by closely connected
Refrigerated Warehousing and Food Sales businesses Appropriate capital structure Systematic capital investment

For a brighter
food future Proportion of women in career-trackSocial and Relationship Capital

Financial Capital

Vision 2030

Human Capital Deep cultivation of employee operations Greater enterprise value through securing Long-term credit rating: A Capital ratio:

Maintain at mid-40% level (46.8% in FY9/22)

Consciousness Reform

Organizational

Management mindful of capitalefficiency and financial soundness

Promote mutual ties
continue measures to break

Reform Continue long-term, stable dividends

System Reform

between business sectors, anddown barriers between departments

Create structures to develop the next
generation of managers and professionals

 Long-term, stable dividends

Economic Value Net sales: ¥124.0 billion Operating income: ¥5.0 billion* Unless otherwise indicated, outcomes are FY9/23 target
figures in the Medium-Term Management Plan (Phase I).

 Value Creation Process for a “Brighter Food Future”

continues to generate the value that will contribute to a brighter

Yokorei determines the most important aspects of the capital it

food future in 2030.

has acquired over its 75-year history, amplifies them into strengths,

6

The Refrigerated Warehouse Business offers a high level ofsupply chain management for marine, livestock, and agricultural

service for a wide range of needs in temperature-controlled

products encompasses everything from product planning,logistics, providing high-quality services for a variety of logistics

development, and procurement to processing (consignment),

processes, including storage, customs clearance, and transport.

sales, and distribution.

and builds business models that utilize these assets. By focusing Business Modelon the three “reform engines” (consciousness reform,

Through its two main businesses of refrigerated warehousing and

The Food Sales Business is built on the strength of its

organizational reform, and system reform) that support the

food sales, Yokorei contributes to a safe, reliable, and stable foodprocurement capabilities, utilizing a network able to precisely

management foundation underpinning Yokorei Quality, Yokorei

supply for Japan and the world as it continues to build trust.

meet food product needs in Japan and overseas. The integrated

YOKOREI Integrated Report 2022

7

Changes in the Business Environment, Risks & Opportunities
Yokorei has determined the risks and opportunities for its business from issues currently facing society, and identified theimportant management issues (materiality).

Social Theme

Risks & Opportunities: RiskPrincipal Measures

Materiality: Opportunity

 ecrease in fish catches and production volume due to changes in the natural environment,Doutbreaks of disease or insect pests
Increase in procurement cost of farmed fish and livestock due to rise in feed costs (plants, animals)
Increase in cost of introducing decarbonization and energy-saving equipmentIncrease in cost of electricity to operate refrigerated warehouses due to introduction of carbon
pricing

Climate change(Global warming)

Increase in cost of electricity to operate refrigerated warehouses due to higher temperatures ise in demand for temperature-controlled storage of food items due to higher averageRtemperatures
Rise in demand for eco-friendly refrigerated warehouses and logistics services• Strengthen handling of eco-friendly products (ASC and MSC certified products)• Diversify supply chains• Build and operate eco-friendly refrigerated warehouses that contribute to decarbonization• Proactive
introduction of energy-efficient equipment to reduce GHG emissions

Harmony with the Global
Environment• Installationof rooftop solar panels to increase generation of renewable energy• Switch
to renewable energy• Switch
to natural refrigerants to reduce GHG emissions• Implement measures for greater logistics efficiency in cooperation with cargo companies,
and reduce GHG emissions

Rise in demand for eco-friendly products (such as marine products with eco-label certification)Decrease in energy costs from use of energy-efficient equipmentIncrease in prices for marine, livestock and agricultural products due to declines in catches andproduction yields, and higher procurement costs for alternative productsDecrease in sales from suspension of refrigerated warehouse operations or supply chain disruptions

Natural disasters

Increase in repair costs for damaged facilities and equipment

Create a Rewarding
Workplace• Formulate BCP• Construct natural disaster-resistant refrigerated warehouses• Develop aquaculture business in countries and areas with few natural disasters• Diversify supply chains and develop relationships with new suppliersIncrease in demand for disaster-resistant facilities

S lowdown in cargo movements and decline in storage volume due to markets adjusting to supply
and demandIncrease in product procurement costs due to soaring prices of raw materials and fuel
Increase in construction costs for refrigerated warehouses due to rise in prices

Economic situation and thebusiness environmentIntensification of competition due to companies from other industries entering the temperaturecontrolled logistics market
Deterioration in earnings due to sudden exchange rate fluctuations
Increase in food storage demand of highly processed foods such as frozen food• Build refrigerated warehouses• Accumulate information• Acquire certification under the Act on Advancement of Integration and Streamlining ofDistribution Business• Provide consolidated, multi-distribution logistics services• Expand customs clearance business• Foreign exchange contract trading• Price adjustments to pass on rising costs• Diversification of suppliers and customers, revision of product balanceRising demand for facilities with exceptional logistics efficiency due to increase in e-commerceDifficulties continuing refrigerated warehouse business due to shortage of warehouse workers
L oss of workers due to a lack of measures to provide an appropriate work environment or make
improvements

Securing human resourcesIncrease in costs due to intensification of competition to hire and retain workers as a result of Japan’s
decreasing birthrate and aging population, and population declineDecline in consumer trust due to customer complaints regarding product or service quality
Gain trust in Yokorei quality and brand by enhancing customer satisfaction

Product, service quality and safety8Gain trust by providing appropriate disclosure to stakeholders

Provide Better Quality
and Service

Develop together
with Communities• Proactively introduce systems for labor-savings and automation• Support creation of workplaces comfortable for women and many types of employees• Strengthen internal education system• Promote DX• Enhance name recognition through branding• Food defense measures for all refrigerated warehouses• Improve quality of frozen foods through employee operations• Management through the Quality Control Department• Strengthen education and training for quality control• Strengthen relationships with contracted manufacturers• Timely and appropriate disclosure

Strengthen the Business
Foundation and Ensure
Soundness

YOKOREI Integrated Report 2022

9

Materiality
Yokorei sets long-term targets and determines the KPI to achieve them based on the needs of stakeholders in relation to
the materiality themes.

Materiality

Harmony with the
Global Environment

Yokorei’s Response• Lessen the environmental load by
operating environment friendly
refrigerated warehouses• Reduce GHG emissions throughcooperation with other companies• Establish an environment-conscious
supply chain

Relevant Capital /Stakeholders• Capital: Natural,
Manufactured• Stakeholders: Shareholders
and investors, customers,
suppliers, partnercompanies

Stakeholder Needs• Reduction in GHG
emissions• Eco-friendly products
and services

Long-Term Targets
Relative to Materiality• Enhance energy efficiency to
reduce energy consumption, andincrease use of renewable energy• Facilitate shift to naturalrefrigerants to reduce GHG
emissions• Appropriate processing andrecycling of waste to lessen
environmental load
• Protect marine ecosystems

FY9/22 Results

FY9/23 Measures

KPI•N atural refrigerant conversion
completed at one facility• S witched to 100% renewableenergy in real terms at six
refrigerated warehouses in the
Hokkaido region• E nhanced logistics efficiency(Implemented certification planunder the Act on Advancement• Complete construction ofenvironment friendly
refrigerated warehouse(natural refrigerants used,
increased solar power
generating capacity)• Continue handling ASC/MSC certified marine
products• Enhance logistics efficiency(palletized cargo, responseto regulatory changes in
2024, expand consolidated
multi-distribution logistics
services)• Natural refrigerant
implementation rate
• Solar power generation
capacity and output• GHG emissions perstorage capacity• Procurement amount of
ASC/MSC certified
marine productsof Integration and Streamlining ofDistribution Business; Provided

consolidated multi-distribution
logistics services)• Increased handling volume of
ASC/MSC certified marine products

Create a Rewarding
Workplace• Change consciousness (promote open
communication and emphasize
dialogue)• Implement measures for labor savings• Provide a work environment suited to
employee diversity• Secure global human resources• Strengthen cooperation with othercompanies• Capital: Human, Social and
Relationship• Stakeholders: Employees,
partner companies• Working environments
comfortable for
employees• Improvement in job
satisfaction• Strengthen measures to cope withlabor shortage• Provide a comfortable work
environment• Implement measures to secure
employee diversity, including
promoting active roles for women• Ensure and ingrain occupational
health and safety• S econd “job satisfaction survey”
conducted•A utomation system introduced•A dvancements in DX• Reform systems to
improve job satisfactionand establish more
comfortableenvironments• Continue introducing
automation systems• Establish structures tosupport active roles forfemale and older
employees• Formulate career plans• Recruit global humanresources• Proportion of employeeswith job satisfaction• Proportion of women in
career-track positions• Number of women in
management positions• Employment ratio of
persons with disabilities• Number and proportionof employees taking
child-care leave, andreturn rate

• Deepen Yokorei quality• Strengthen education and training• Invest in IT and robotics• Develop original products• Capital: Human,
Manufactured• Stakeholders: Employees,
partner companies,
customers, suppliers• Safe and reliable food• High-quality products,
storage and logistics
services• Enhanced skills• Provide stable supply of food• Reduce food waste• Establish a structure to provide
safe products and services•A dvancements made inautomation•H uman Resources Development
Center established (Education
strengthened)•D eveloped and expanded sales of
Yokorei brand products• Increased number of requests for
product analysis test (2.6 times
YoY)• Expand aquaculturebusiness• Strengthen relationships
with contracted
manufacturers• Strengthen training infood labeling• Conduct more thoroughinspections of in-houseproducts• Number of automation
systems installed• Number of employees
completing trainings,
and cumulative hours• Build refrigerated warehouses inregions throughout Japan• Social contribution program throughdonations and sponsorships• Capital: Manufactured,Social and Relationship• Stakeholders: Local
communities, employees• Vibrant local
communities• Job creation• Strengthen partnerships• Support revitalization of local
industries• Establish a cooperative framework
for environmentally and sociallyconscious supply chains overall•C onstruction started on threerefrigerated warehouses•M arine products buying rights
acquired in area where ice factory
was built (Hirado)•D onations (23 times)• S ponsorships (for sports,
education and culture,environmental activities)• S upport activities throughdonations of food material andstorage space (food banks,
cafeterias providing meals tochildren)• Build new refrigerated
warehouses• Social contribution
program utilizing businessassets• Continue sponsorships• Number of donations
and amount• Organizational reform (Strengthen
coordination by breaking down barriers
between business divisions)• Reform of the personnel system• Improve capital efficiency and maintainfinancial soundness• Capital: Financial, Human• Stakeholders: Shareholders
and investors, employees• Corporate growth• Shareholder returns• Maintain and improvetransparency ofcorporate management• Enhance corporate governance• Establish BCP structures (natural
disaster response, data
management)• Ensure legal and regulatorycompliance• Strengthen initiatives for SDGs andprovide proactive disclosure•P ersonnel system reforms started• S DGs conference held, withfollow-ups• S ustainability Committee began
conducting activities• Various policies formulated• S elected for inclusion in FTSE
Blossom Japan Sector RelativeIndex• Design new personnel
system• Revise and strengthen
BCP strategies• Increase dividends with
75th anniversary dividend• Formulate new mediumterm management plan

• Credit rating (Japan
Credit Rating Agency)• Capital ratio• ESG evaluation
organization score

Provide Better
Quality and Service

Develop together
with Communities

Strengthen theBusiness Foundationand Ensure Soundness

10

YOKOREI Integrated Report 2022

11

Overview of the Medium-Term Management Plan (Phase I)
Review of the Previous Medium-Term Management Plan

Overview of the Medium-Term Management Plan – General and Business-specific Policies

The supply-demand balance for refrigerated warehouses was tight, and the global business environment for foodprocurement and sales weakened. Yokorei will streamline and restructure the food sales structure to achieve the nextstage of growth.
Previous Medium-Term Plan Policy

Results

Challenges

Refrigerated Warehousing Business(1) Network base built to meet diversifying customer needs, andprovide optimal logistics services with value-added operations.
(2) Introduction of ICT has reduced lost time, and contributed tolabor savings (cargo navigation system, truck reservation
system, worksite support system, etc.).

(1) A ssess changes in customer needs and market trends,
and utilize the service characteristics of logistics
centers to acquire new customers.
(2) E xpand use of IT and robotics to contend with labor
shortages.

(1) Strengthened purchasing power through partnerships with
suppliers in Norway, Peru, and Malaysia, as well as eel farms.
(2) Expanded domestic production base (Nagasaki Sorting Spot)and boosted cooperation with production areas in Japan.

(1) C hange supply destinations and products in response
to social changes.
(2) E stablish a sales model that is not susceptible toexternal business conditions.
(3) R evise sales composition by business type.

(1) Promotion of flexible working styles increased the proportionof women in executive positions.
(2) Capital procured for growth investments.
(3) Renovation of core systems and utilization of ICT enhanced
work efficiency.

(1) D evelopment of personnel to support globalization.
(2) A dapt to utilization of IT and digitization.
(3) D esign systems to capitalize on diverse working styles.

Actively pursue initiatives to strengthen ourcapability to meet refrigerated networkneeds, and enhance efficiency in lowtemperature logistics

Food Sales Business

Establish a vertically integrated businessmodel with consideration for sustainability

Evolution of Business Foundations• Evolution through working-style reforms
and inclusion• Strong financial base• Building of strategic ICT(1) Segment net sales ¥40 billion, with segment earnings* of ¥10 billion

Business (1) Segment net sales: ¥130 billion
Activities (2) S egment profit margin*: 3.0% or higher(increase in warehouse capacity of 250,000 tons)* Segment earnings are before
the exclusion of non-allocable
operating expenses(management division expenses)(1) Natural refrigerant implementation rate: 80% or higher (currently 68%)  (2) Solar power generating capacity: 10 megawatts (currently 6.5MW)

Companywide Quantitative Targets
 Consolidated net sales: ¥170 billion  Consolidated operating income: ¥10 billion  EBITDA: ¥17 billion

Sustainability Vision
Materiality

12

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: ¥30.5 billion

Net sales target: ¥93.5 billion

Segment operating income* target: ¥6.7 billion

Segment operating income* target: ¥1.8 billion

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

Medium-Term Management Plan Priority Measures
Refrigerated Warehousing Business

Food Sales Business(1) Eco-friendly logistics centers• [Continue] Strategic investment centered on new logistics centers• [Accelerate] Utilize renewable energy• [Promote] Switch to natural refrigerants(1) Structural reforms for greater profitability•R evise inventory controls and other aspects of sales management structure• S trengthen and expand cooperation between business locations•O ptimize sales ratio by business type(2) Elevation of Yokorei Quality• Invest in IT and robotics• Focus human resources on advanced areas(2) Expanded sales of strategic business products• E xpand sales by leveraging food material procurement capabilities• Increase domestic & overseas sales of Yokorei frozen processed marine products(3) New business development in Japan• Expand consolidated, multi-distribution logistics services• Expand logistics network with new centers(3) Development of original products•D evelop Yokorei branded products•P roducts for prepared dishes, volume retail, etc.

(4) Overseas business expansion• Strengthen international logistics efforts based in Thailand(4) Development of sales channels•D eepen B2C business (e-commerce business, etc.)(5) Expanded sales channels overseas•P romote cooperation between Japanese business and Thai subsidiary tostrengthen business in the ASEAN region

Yokorei Sustainability Vision 2030
Corporate philosophy

Operating income:¥5 billion* Segment earnings are before the exclusion of non-allocable operating expenses (management division expenses)

Food Sales Business – 2030 Vision

Business (2) M ultifunctional and automated refrigerated warehouse centers
Activities
Build 10 new centers by 2030

Net sales:¥124 billion

Target FY2023 (Revised)Companies are social institutions, and profits are a measure of their service

Refrigerated Warehousing Business – 2030 Vision

Environmental Activities“The Power to Create”

Business Foundation

Yokorei Business Vision 2030 —Quantitative Targets—
Corporate philosophy

The Medium-Term Management Plan – General Policy

Companies are social institutions, and profits are a measure of their service
For a brighter food future– Yokorei will ensure a stable food supply to help support a sustainable society –Qualitative Aims

Quantitative Targets

Harmony with
the Global
Environment• Aim for efficient use of energy, with consumption reductions and greater use of renewable energy• Reduce greenhouse gas emissions by transitioning to natural refrigerants• Lessen the environmental load through proper waste disposal, and use of recyclable materials• Strive to conserve marine ecosystems• Reduce greenhouse gas emissions per storage
capacity by 40% compared to 2015 levels• Natural refrigerant implementation rate of
80% or higher

Create a
Rewarding
Workplace• Strengthen measures to cope with labor shortages• Provide a rewarding work environment• Implement diversity measures, including supporting active roles for women• Continue measures for workplace health and safety• Proportion of employees who express job
satisfaction at 80% or higher• Double the number of female managers
compared to fiscal 2020 levels

Provide Better
Quality andService• Strive to ensure a stable food supply• Reduce food waste• Establish systems to provide safe products and services• Total commitment to food safety

Develop together
with Communities• Promote the revitalization of local industry• Establish a cooperative framework for the entire supply chain with consideration for the environmentand society

Strengthen
the Business
Foundation and
Ensure Soundness• Establish a BCP structure (to cope with natural disasters, pandemic response, information security, etc.)• Strict adherence to legal compliance• Strengthen SDG-related measures, and proactively provide disclosure• Conduct ongoing measures to enhance corporate governance

The Business Foundation that Supports Yokorei Quality —Three Reform Engines—
Yokorei is pursuing reforms in three areas – consciousness, organization, and systems – as the engines to bolster andenhance its business foundation.
Example Measures• Promote open communication, and emphasize dialogue

Consciousness 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

Organizational Reform• Continue reforms to achieve a consultative-style sales structure• Strict adherence to business portfolio management

System Reform• Reform human resource system to improve productivity and produce solution-oriented personnel• Create structures to develop the next generation of managers and professionals

YOKOREI Integrated Report 2022

13

Financial Strategy
Yokorei’s Financial Logic Treefor investments in overseas businesses.

continue to face a difficult business environment characterized

Cash and cash equivalents at the end of the fiscal year

by soaring prices and logistics costs, and increasing consumer

amounted to ¥2,413 million. Working capital is mainly covered bycost-consciousness triggered by continued price increases.

operating revenue and short-term loans payable, but in order toIn this environment, the Group formulated the Medium-term

supplement liquidity and mobility, the Company has entered into

Management Plan (Phase I) “The Power to Create,” the last year of

a commitment line agreement totaling ¥12,000 million with its

which is 2023. Under the policy of “creating a business model” formain bank.

the Refrigerated Warehousing Business and “creating new food

Capital and investment funds are financed mainly by internal

value” for the Food Sales Business, we worked to implement

funds, long-term borrowings, and bonds. As a result of financing

priority measures to achieve not only business targets but also

for capital expenditures, the balance of long-term debt at the end

sustainability targets by the final fiscal year (FY2023).

of the period under review was ¥34,091 million. In addition, on

As a result, our consolidated operating results for the current

September 27, 2021, we issued 1st Series Deferrable Interest andperiod were net sales of ¥115,257 million (up 4.0% from the priorCallable Unsecured Subordinated Bonds to reinforce our financialyear), operating income of ¥4,252 million (up 65.9%), ordinary

base, strengthen and accelerate sustainability management, andincome of ¥4,999 million (up 81.0%). However, profit attributablediversity fund raising. These were the industry’s first Sustainability

to owners of the parent came to ¥3,317 million, 8.0% lower thanBonds for the purpose of refinancing construction funds forin the previous fiscal year when profit attributable to owners was

selected projects (Fukuoka ISLAND CITY Logistics Center,boosted by extraordinary income of ¥2,646 million related to the

Nagasaki Sorting Spot, and Kesennuma Sorting Spot II), based onreorganization of the Group’s Norwegian trout cultivation business.

the materiality priorities in the Yokorei Sustainability Vision 2030.

From the beginning of the fiscal year ended September 30, 2022

 Investment Strategy

the Company has applied the “Accounting Standard for Revenue
Recognition” (ASBJ Statement No. 29, March 31, 2020), etc. Owing

We are making planned investments in equipment and IT

to the change in the accounting standard, the year-on-year

deemed necessary to increase our corporate value. The major

percent change figures are based on differing calculation methods.

capital expenditures in this fiscal year were for the construction ofTSR (10 years, including dividend)350

Yokorei
Dividend-included TOPIX

Main Reference IndicesManagement Plan Targets[Yokorei Business Vision 2030]

Refrigerated Warehousing
Smart cold services combining
tradition and innovation• Environmental leader intemperature-controlled logistics• Drive high efficiency and diversity• Yokorei quality to the world

Food Sales• Achieve unique value adapted
to change• Accelerate global businessdevelopment• Sustainable food and regional
development• Operating income¥124.0 billion• Operating income¥5.0 billion• EBITDA

¥11.0 billion• EBITDA• Reduction in GHG emissions inrelation to storage capacity by 30%(compared to 2015 levels)• GHG emissions volume• Natural refrigerant
implementation rate
• Solar power generating
capacity and output• Increase in solar power generation
35% (compared to 2020 levels)• Procurement of ASC/MSC certified products• Solar power generating capacity of
7MW• Proportion of employees who
express job satisfaction at 70% or
higher• Proportion of
employees expressing
job satisfaction• Increase in proportion of womenin career-track positions from 5%
to 10%• Number of women in
management roles• Maintain the capital ratio in the
mid 40% range

Optimization ofCash Flow Allocation

Appropriate asset composition• Maintain a healthy financial base• Maintain shareholder’s equity ratio

Appropriate shareholder return• Improve profitability and capitalefficiency• Dividend payout ratio above agiven level• Net sales• Natural refrigerant implementation
rate of 70% or higher

Realize distinctive food value
and add to the richness of
the world’s tables• Expand TSR• Net sales• Continue planned growthinvestments• Payout ratio• Appropriate balance sheet control• Capital ratio• Credit rating(Japan Credit Rating
Agency)• Utilize interest-bearing debt
• Continue and increase long-term
stable dividends• Introduce products we handle
with complimentary products

Chiba Research Park Logistics Center, Eniwa Smart Logistics

interim dividend of ¥11.5 per share) for the fiscal year ended

Center (provisional name), Yumeshima 2nd Logistics Center

September 30, 2022. On May 13, 2023, a commemorative(provisional name), and Hakozaki Logistics Center (provisional

dividend of ¥1 per share will be gifted as a year-end dividend forname). We are also in the process of rebuilding centers andthe fiscal year ending September 30, 2023 to celebrate the 75th

250

replacing equipment. In our new facilities, we are installing

anniversary of Yokorei’s founding. As a result, the year-end

200

cutting-edge equipment in line with the facilities’ needs anddividend for the fiscal year ending September 30, 2023 is150

implementing initiatives to reduce labor and personnel and to be

expected to be ¥12.50, consisting of an ordinary dividend ofenvironmentally friendly by using natural refrigerants in¥11.50 and a commemorative dividend of ¥1.00. We also

consideration of the environmental impact of HCFC gases,

recognize that share buybacks are an option as a method ofincorporating solar power generation systems, and introducing

flexible capital policy.

300

100
50
0
(Year) 2012/9

2013/92014/92015/92016/92017/92018/92019/92020/92021/92022/9TSR (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 Exchange Group,
Inc. (JPX) data)
Graph values are indexed market prices in terms of TSR, with September 30, 2012 closing price data set at 100 (holding period through end-September 2022)

Investment period

1 yearcargo navigation systems. As a result, the total capital investment
for this fiscal year amounted to ¥7,068 million.

Our Total Shareholder Return (TSR) including dividends for the
past 10 years is shown on the graph. Although our TSR has
remained below TOPIX performance, we will implement growth

Share Performance (Total Shareholder Return)

14

Growth Potential

the food industries related to the Yokorei Group’s businessProfitability

refrigerated warehouses, and investment capital needs are mainly

Improving Return

Composition of Assets

economy to continue on a path toward normalization. However,Management Plan Targets /Individual Strategies

Business Strategies

Shareholder Return

capital needs are mainly for the construction and renovation ofProvide Better Quality
and Service

general and administrative expenses, etc. Moreover, equipment

sustain social and economic activity enabled the JapaneseStrengthen
the Business Foundationand Ensure Soundness

seventh wave of the pandemic, but government measures toMaterial Issues

Create a Rewarding
Workplacebusiness activities are mainly for product purchases, selling,

Harmony with
the Global Environment2022), there was a rapid resurgence of COVID-19 infections, aDevelop together
with Communities

Among the Group’s capital needs, working capital needs in

Strengthening
Management Resources

During the current period (the fiscal year ended September

E SG Funding

Increase
Corporate Value Consolidated Operating Results for FY2022

3 Years

5 Years

10 Years Shareholder Return Policy

strategies and appropriate financial and capital policies so that

In recognition that the shareholder return is a key management

we can expand our TSR by paying stable and continuous

Yokorei

+1.9%

−8.2%

−2.8%

−6.0%

−1.2%

+89.7%+6.6%

issue, our basic policy is to maintain a stable dividend. Based on

dividends and increasing corporate value.

Dividend-included TOPIX−7.1%+24.2%+7.5%+23.4%+4.3%+210.0%+12.0%

this policy, we declared a dividend of ¥23 per share (including an

Cumulative

Annualized

Cumulative

Annualized

Cumulative

Annualized

YOKOREI Integrated Report 2022

15

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

Net Sales

EBITDA

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

200,000

12,000171,772

160,000

139,970

120,000

115,025

110,782

115,257

80,00040,0000

2018/92019/92020/92021/92022/99,880

10,459

9,000

9,449

9,250

6,000

10,665

4,500

6,000

3,000

3,000

1,500

0

2018/92019/92020/92021/902022/93.4

4,825

2.8 4,774

Net sales totaled ¥115,257 million, an increase of 4.0% from the previous fiscal
year. During the COVID-19 pandemic, sales increased in both the Refrigerated
Warehousing Business and Food Sales Business.

⑤配当金／配当性向⑪自己資本比率

Shareholders’ Equity Ratio

Dividends per Share / Payout Ratio

(%)

(Yen)

50
40

Earnings before interest, taxes, and depreciation (EBITDA) were ¥10,665 million,
an increase of 15.3% from the previous fiscal year, as operating income
increased while depreciation decreased.

25
41.5

43.2

43.7

45.7

46.8

15

20

10

10

5
2018/92019/92020/92021/92022/923.0

Non-Financial Highlights
Natural Refrigerant Usage Rate
(%)

60

59.3

60.3

61.7

0

37.5

39.8

38.6

2018/940.8

2019/92021/92022/9

64.9

68.1

4

6

4,252

3

2,562 3,605

3,317

2,340
2018/92019/92020/9Net income

2
1

2021/92022/90

2020/92021/92022/9* Profit attributable to owners of parent

As net sales increased, operating income rose to ¥4,252 million, an increase of
65.9% year over year, but net income fell to ¥3,317 million, a decrease of 8.0%
year over year, because the previous year was affected by posting ¥2,646
million in extraordinary profit from the sale of shares in subsidiaries⑥設備投資額accompanying the restructuring of the Norwegian fish farming business.

* Effective from the fiscal year ended September 30, 2021, the non-consolidated subsidiary PAX FREEZER
Co., Ltd. is excluded from the scope of calculation.

3.0

3
2
1
0

2018/918,00060

15,00015,513
12,4797,500

13,744

9,000

6,000

7,068

6,000

15

3,000

0

0

2020/9

5,054

5,685

6,037

2019/92020/92018/92019/92020/92021/92022/9

Capital expenditures were ¥7,068 million, a decrease of 48.6% year over year.
The major capital expenditures in the fiscal year ended September 30, 2022,
were related to construction of the Chiba Research Park Logistics Center,
Eniwa Smart Logistics Center (provisional name), and Yumeshima 2nd
Logistics Center (provisional name).

⑩グリーン経営認証拠点数0

2018/92021/92022/9Depreciation was ¥6,413 million, a decrease of 4.1% year over year, due to the
opening of new business locations.

⑫電気使用原単位(kWh/ton)

(t)

2,855

900

2018/9

6,413

1,500

(locations)

0

6,688

4,500

(Tens of thousands of kilowatts)

384

2022/93,000

Per Unit Electricity Consumption

1,843

2021/9⑦減価償却費75

11,9602019/9ROE was 4.0%, a decrease of 0.5 percentage points year over year, because ofa decrease in net income.

(¥ million)

12,000

4.0

Payout ratio

1,791

429

2019/9Solar Power Generation (left)  

In the fiscal year ended September 30, 2022, the Company’s natural refrigerant
usage rate was about 68%, much higher than the industry average, which isaround 50%.

4(¥ million)

45

4.5

4.3

Operating income ratio

1,810

549

2,220 657

424

3,000

50
40

2,000
1,000

39

40

42

43

43

2020/92021/92022/9

0

20.3
19.9

19.5

20

0

20.5
20.0

30

19.8
19.2

19.4

19.0

10
2019/9

4.6

Number of Sites with Green Management Certification300

2018/95

Solar-cell Power Generation and Reduction of CO2 Emissions

600

20

3.7

(%)

30

2020/9(%)

Depreciation

Net income per share for the fiscal year ended September 30, 2022, was¥56.34, a decrease of ¥4.96 from the previous fiscal year, and the annual
dividend was ¥23, for a dividend payout ratio of 40.8%. The Company’s policy
is to maintain a stable, long-term dividend, paying dividends twice a year, at
mid-year and at year-end.

40

0

23.0

2.3

3,412

Return on Equity (ROE)(%)

Capital Expenditures⑨太陽光発電による発電およびCO2削減量⑧自然冷媒導入率

80

23.0

57.7

Dividends per share (left)  

Shareholders’ equity ratio was 46.8%, an increase of 1.1 percentage points year
over year.

23.0

20

30

0

23.0

3.0

3,385

3,343

Operating income

2018/92019/92020/92021/92022/918.5

2018/92019/92020/92021/92022/9Reduction of CO2 Emissions

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, 2022, their annual power generation totaled 6.57 million
kWh, which corresponds to a reduction of 2,855 tons in CO2 emissions.

* The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020), etc. effective from the beginning of the current fiscal year; and the figures for the fiscal year ended September
30, 2022, are after the application of the said accounting standards and others.

16④株主資本当期純利益率

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 unity electricity consumption
1% year over year by increasing energy efficiency. During the fiscal year ended
September 30, 2022, the volume of cargo handled increased due to a recovery
in cargo movement. However, due to energy saving efforts, per unit electricity
consumption decreased 2.1% year over year to 19.8 kWh/ton.
Per unit electricity consumption: An indicator showing how much electricity is used to handle one ton ofcargo. 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

YOKOREI Integrated Report 2022

17

Business Activities

Refrigerated Warehousing Businessgrowth of handling volume for frozen foods, one of the priority

Ltd., also posted gains in revenue and earnings as inbound andmeasures in the medium-term management plan.

outbound cargo volumes exceeded that of the previous fiscal

In addition, an upturn of in-port movement of goods following
the alleviation of delays in receiving cargo caused by the shortage

Business Vision 2030
We promise to provide smart
cold services combining
tradition and innovation.

Three Principles:• Utilize position as environmental leader to further strengthen the temperature-controlled
logistics business.
• Drive high efficiency and diversity at multifunctional logistics centers.
• Extend to the world the Yokorei Quality consistently chosen by stakeholders.

year, along with an increase in handling of mainstay items such as
livestock products.

of marine containers led to recovery in handling volumes, which

As a result, net sales in the Refrigerated Warehousing Businesshad been sluggish in the previous fiscal year, making a significant

segment amounted to ¥30,045 million (up 6.2% year on year), with

contribution to earnings.

operating income of ¥6,447 million (up 7.9%).

Yokorei’s consolidated subsidiary in Thailand, Thai Yokorei Co.,

Progress of Measures in the Medium-Term Management Plan

Business Strengths and Results Providing high quality services
Cargo Friendly Cooling Method

Employee Operations• Allows for long-term, high-quality storage by natural convection
cooling method
貨物にやさしい冷却方式(Helps prevent drying, freezer burn, and color fade-out)• Accumulated product knowledge and expertise• Highly skilled• Efficient operations generate earnings

MeasureFY9/22 Activities

FY9/23 Outlook

Eco-friendly
logistics centers(Expand)• Daikoku Logistics Center: Converted facilities to natural refrigerants (Naturalrefrigerant implementation rate increased 3.2 percentage points to 68.1%)• Hokkaido Region: Switched to 100% renewable energy in real terms• Completion of Chiba Research Park Logistics Center- Forecast to meet management plan target of 7.3MW solar power generating capacity- Natural refrigerant implementation rate expected to increase 0.9ppt to 69.0%

Yokorei Quality(Deepen)• Implementation of automation- Truck reservation system: Introduced at 10 locations-C argo navigation system: Introduced at 9 locations, start of in-house production-R obotic arms: Test operation conducted at one location-A utomation of administrative tasks with RPA: Implemented at 24 locations• Strengthened internal training• Further progress of automation- Truck reservation system: Introduction planned at 5 locations-C argo navigation system and electric movable racks: Introduction planned at 2 locations-R obotic arms: Introduction planned at 2 locations- E xpanded utilization of RPA

New businessdevelopment inJapan (Extend)• Shared issues raised through the Refrigeration Innovation Summit, andmeasures launched by regional block to provide solutions• Major contract acquired for the Consolidated Multi-distribution Logistics
Service• Accelerate provision of the Consolidated Multi-distribution Logistics Service• Introduce electric movable racks and palletized operations as response to the changes in
the logistics industry coming in 2024.
• P ropose labor-saving services utilizing RPA and other means as measure to cope with labor
shortages.

Overseasbusiness
expansion(Connect)• Preparations and surveys conducted for new refrigerated warehouses in the
ASEAN region• In collaboration with overseas subsidiary Best Cold Chain Co., Ltd.,established a cooperative framework for delivery operations at Yokorei(THAILAND) Co., Ltd.

• Expand refrigerated warehouse business in the ASEAN region

New Eco-Friendly Logistics Centers in Prime Locations
Composition of warehousing volume
by productFrozen foods,
other:

39.7%
Agricultural products:

13.8%

Fishery
products:

Net sales

Operating income(¥ million)(¥ million)

30,0007,000

25,000

6,000

13.9%

20,000

Livestockproducts:

15,000

32.6%

5,000
4,000

Chiba Research Park Logistics Center Completed

3,000

10,000

2,000

5,000
0

Yokorei, based on the principle of “Harmony with the Global Environment,” one of the materiality items in the Yokorei
Sustainability Vision 2030, is building new, environmentally friendly, state-of-the-art next generation refrigerated
warehouses.

1,000

2018

2019

2020

2021

2022

0

2018

2019

2020

2021

2022

The Chiba Research Park Logistics Center (Chiba-shi, Chiba Prefecture) was completed in March 2023. The
addition of this logistics center in the eastern Kanto region will provide a wide-area logistics network
extending from the Tokyo metropolitan area to northern Kanto. The center will have a one of the largest
solar power generation systems among Yokorei’s facilities, along with a large-capacity lithium-ion battery,making it the first Yokorei refrigerated warehouse cooled using batteries.
The Chiba Research Park Logistics Center Business Strengths

that all stowage operations in refrigerated warehouses are

Yokorei is an industry leader with more than one million tonnes of

performed mainly by Yokorei employees. Further, Yokorei isrefrigerated warehouse capacity, including overseas locations. Itsutilizing IT to achieve automation and labor savings, aiming tostrengths include storage systems utilizing advanced

establish a highly productive and profitable business.

technologies such as cooling through natural convection, andlogistics services.
Yokorei has three types of refrigerated warehouses (dockside
warehouses, logistics centers, and production area warehouses)18 Consolidated Operating Results for FY2022
The Refrigerated Warehousing Business segment achieved
revenue and earnings gains in FY9/22.

Construction Started on Eniwa Smart Logistics Center (provisional name)Construction of the Eniwa Smart Logistics Center (Eniwa-shi, Hokkaido) began in October 2021. Because
the area offers extremely good access to major sea and air routes through Tomakomai Port and New
Chitose Airport, many food manufacturers have production plants in the vicinity, making it a hub for foods
and food material produced in Hokkaido. The new logistics center incorporates global warming mitigation
measures including a solar power system, the first for a Yokorei facility in Hokkaido, as well as a system for
C-class (air conditioned) temperature control utilizing outside air during the winter. Completion isscheduled for the end of January 2024.

to handle a wide range of food storage and logistics needs. In

The movement of goods recovered, with inflows, outflows, andrecent years, Yokorei has begun operating state-of-the-art facilities

inventory volumes all exceeding the levels of the previous fiscal

such as the Tokyo Haneda Logistics Center, which combines theyear despite the continued impact from the COVID-19 pandemic.

benefits of a dockside warehouse and logistics center. AnotherIn particular, the “consolidated multi-distribution logistics service”

Construction of the Yumeshima 2nd Logistics Center began in July 2022 in the Yumeshima District ofKonohana-ku (Osaka-shi), the center of the Osaka Bay area and planned site of the 2025 World Expo. The newfacility is being built adjacent to the existing Yumeshima Logistics Center, and will strengthen the logistics

major feature that differentiates Yokorei from its competitors is

to support eco-friendly management, contributed to continued

network to meet growing demand in the Hanshin region. Completion is scheduled for the end of January 2024.

Conceptual drawing of the Eniwa Smart Logistics Center(provisional name)Construction Started on Yumeshima 2nd Logistics Center (provisional name)Conceptual drawing with the existing Yumeshima Logistics
Center (left) and the Yumeshima 2nd Logistics Center(provisional name) (right)

YOKOREI Integrated Report 2022

19

Business Activities

Food Sales Businessby the situation in Ukraine, and an increase in demurrage costs

the spread of COVID-19 infections. As a result, while sales ofowing to lockdowns in China, put downward pressure on

livestock products declined, earnings increased.

earnings. However, the marine products category as a wholemanaged to achieve revenue and earnings growth.

Business Vision 2030
We will realize distinctive food value
together with customers, preserve ourclose relationship with producers, andadd to the richness of the world’s tables.

Three Principles:• Break away from the past, change with the times, and achieve unique value

together with customers.
• Utilize every resource to accelerate global business development.
• Expand business on strength of practical experience with sustainable foodand regional development.

In the agricultural products category, sales of the mainstay
item, potatoes, were on a par with the previous fiscal year, but an

In the livestock products category, Yokorei implemented reforms

increase in trade volume for cabbage contributed to earnings,

to shift from quantity to quality in accordance with the medium-

resulting in gains in revenue and profit for the category overall.

term management plan. Sales of chicken products increased to

As a result, net sales in the Food Sales Business amounted torestaurants, the home meal replacement market, mass retailers,¥85,157 million (up 3.3% year on year), with operating income ofand pet food makers, while trading volume for pork to restaurants¥1,324 million (compared to an operating loss of ¥302 million in

declined as a consequence of the impact from measures to preventthe previous fiscal year).

Business Strengths and Results
Progress of Measures in the Medium-Term Management Plan Procuring High Quality Foods from Producing Areas in Japan and Overseas
Seamless Process from Procurement to Worldwide Sales

MeasureStrengthening the Overseas Business Strategy

Yokorei is the only listed company
with marine product buying rights
in 11 major fishing ports in Japan.
This has allowed Yokorei toestablish a seamless, end-to-end
framework from buying inmarkets to freezing, storage, andsale in Japan and overseas.

Yokorei is utilizing its establishedstrength in handling marine
products to enhance its overseas
business strategy. Along withfacilities in Thailand that form the
hub for business in the ASEAN
region, Yokorei operates a salmon
aquaculture business in Norway inpartnership with Hofseth Aqua AS.

海外戦略を強化

Hofseth Aqua AS’s salmon
and trout aquaculture farmComposition of sales by product
Agricultural
products, other:Livestockproducts:

Net sales

Operating income(¥ million)(¥ million)

150,000

2,000

2.1%
100,000

Fishery
products:

80.0%• Implemented inventory controls and other measures for the sales management structure• Strengthened and expanded internal coordination among business offices• Shifted focus in the livestock products category from quantity to quality

Expanded salesof strategic
business
products*• Expanded sales of Yokorei brand Trim C salmon and smoked salmon• Increased eel production with expanded capacity for company-owned culture farms in Japan• Developed nationwide mass retailers as a new sales channel for Norwegian salmon andPeruvian squid• E xpand sales of Yokorei brand products such as Norwegian salmon and eel(open new sales channels to mass retailers and restaurants, and cultivate
business with existing customers)• S ales in Japan of Peruvian squid processed as food material

Development oforiginal products• Launched Yokorei brand smoked salmon and dressed salmon• Expanded sales of Yokorei brand eel farmed at company-owned culture farms in Miyazaki
Prefecture• Commercialized saury and mackerel products bought and frozen by Yokorei•C ontinue to expand sales of Yokorei brand products at mass retailers•D evelop products with a story characteristic by utilizing marine products
buying rights to directly purchase food material, and collaborations withoverseas partners

Development ofsales channels• Opened sales channels with nationwide mass retailers, and steadily gained new customers• Established platform and other foundations to support start of e-commerce business andsales to ordinary consumers• Operations begun at the Hirado Ice Factory; Marine product buying rights acquired at Hirado
fish market• Participation in the aquaculture industry establishment project in Ibaraki Prefecture; Activities
begun to verify the commercialization of mackerel cultivation•C ontinue developing business with mass retailers and cultivating trade withexisting customers•C omplete final verifications to launch e-commerce business to ordinarycustomers• B egin sales of ice from the Hirado Ice Factory for fresh fish

Expanded sales
channels
overseas• Strengthened exports of scallops to China• Expanded trade volume for Peruvian squid• Bolstering of exports increased sales volume (up 18% YoY)

• S trengthen sales within Thailand• E xpand sales in the ASEAN region of marine products directly purchased andfrozen by Yokorei, as well as Norwegian salmon and Peruvian squid

Initiatives to Expand Sales Channels

1,000
500

50000

0

0

FY9/23 Outlook• E stablish a sales structure with greater coordination between sales offices in
production and consumption areas• S trengthen collaboration with overseas partners•D iversify sales channels and optimize balance (food material, restaurants,
HMR, mass retailers)* Salmon, shrimp, frozen processed marine products, farm-raised eel, etc.

1,500

17.9%

FY9/22 Activities

Structuralreforms for
greater
profitability

2018

2019

2020

2021

2022

-500

2018

2019

2020

2021

2022

Yokorei is increasing business with mass retailers mainly for Norwegian salmon, while also working to diversify sales
channels, including partnership agreements with local governments, and making preparations for a full-fledged
e-commerce business.
Partnership Agreement Concluded with Ibaraki Prefecture for Aquaculture Industry Establishment Project Business Strengths

raising fish, processing, and shipping, ensuring strict quality

The strength of Yokorei’s Food Sales Business is its business

control to deliver high quality products to end users.

offices in production and consumption areas, along with its
ability to procure high-quality foods from production areas in Consolidated Operating Results for FY2022

Japan and overseas. In Japan, Yokorei has marine product buying

The Food Sales Business segment posted revenue and earnings

rights in major fishing ports in Tohoku and Kyushu, where

gains overall in FY9/22.

employees participate in auctions and buy fish.

20

In the marine products category, Yokorei strengthened

Further, Yokorei has established a seamless in-house structure

collaborations among production area sales offices and withfor the entire process from procurement to sales, freezing the fishoverseas partners in line with the measures in the medium-term

it has purchased at company sorting spots, storing it inmanagement plan. In particular, expanded trade with Hofseth forrefrigerated warehouses, and selling it in Japan and overseas.

Norwegian salmon led to higher sales to Japanese mass retailers

One focus area for overseas operations is the salmon aquaculture

and restaurants. Domestic and overseas sales of fish roe, Peruvian

business in Norway. Yokorei’s partner company Hofseth uniformly

squid, and other marine products also contributed significantly to

manages the entire process, from hatching of salmon eggs toearnings. At the same time, falling market prices for crab caused

In April 2022, Yokorei concluded a partnership agreement with Ibaraki Prefecture, which boasts the second
highest marine products landing volume in Japan, to establish an aquaculture industry. As a means of
securing new procurement routes for marine resources and part of its regional contribution program,
Yokorei will verify the potential for commercialization of mackerel cultivation in Ibaraki Prefecture.
Ibaraki Governor Kazuhiko Oigawa (left) and Yokorei
Chairman Toshio Yoshikawa (right)

Participation in Cookpad Exhibition and Sales Event
In June 2022, Yokorei participated in an exhibition and sales event sponsored by Cookpad Inc., held at the
SOGO Yokohama department store. Yokorei presented and sold its smoked salmon, as well as sliced salmon
and other products. The event was popular, and led to the start of sales of smoked salmon through the
Cookpad Mart e-commerce platform for fresh foods.
Yokorei brand package smoked salmon

YOKOREI Integrated Report 2022

21

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- toMototsugu Sakai was appointed at the 72nd (FY2019) General Shareholders Meeting, Yosuke Horiai was appointed at the 73rd (FY2020)

long-term corporate value. We also aim to practice transparent and fair management and we are always working to improve corporate

General Shareholders Meeting, while Mitsuhiro Honda and Yoriko Sakamoto were appointed at the 74th (FY2021) General Shareholders

governance by making decision making swifter and strengthening oversight functions. In addition, under the Companies Act, we have

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 audit & supervisory board members at

adopted the institutional format of a company with a audit & supervisory board.

the 73rd (FY2020) General Shareholders Meeting.

Corporate Governance Structure

General Meeting of Shareholders

Name

Reason for selection

Mototsugu Sakai

Mr. Sakai has a wealth of experience and extensive insights obtainedby holding key positions in the National Federation of Agricultural
Cooperative Associations, and he provides useful opinions andadvice on management in general to the Board of Directors, etc.

Yosuke Horiai

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

Nomination/dismissal
Nomination/
dismissal

Nomination/
dismissal

Audit

Consults

Audit

Reports

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

Internal Audit Department

Mitsuhiro Honda

Accounting Auditors(external auditors)

Audit & Supervisory Board(4 audit & supervisory board members,
all outside audit & supervisory board members)

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

Reports

Business Sector

Instructions

Guidance

Directors

Because of her abundant experience as an educator and extensive
knowledge and experience as an attorney, we deem that Ms.
Sakamoto will provide the Board of Directors with valuable opinions
and advice on all aspects of business management from various
perspectives.

Reason for selection

Keizou Inoue

From his experience with corporate management and auditing, wedeem Mr. Inoue capable of fulfilling supervisory functions withregard 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 of Staffand Inspector General of the North Eastern Army in the Ground SelfDefense Force. We deem him capable of utilizing his wealth ofexperience and insights of crisis management to support our
auditing systems.

Succession Planning

Directors in charge, corporate officers
Instructions

Yoriko Sakamoto

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 Graduate School.
Because of his abundant experience, we deem that Mr. Honda will
provide the Board of Directors with valuable opinions and advice on
all aspects of business management.

Name

We recognize that it is a top priority to foster a management team able to steadfastly achieve our business strategies based on our businessprinciples and with a focus on future developments. As such, we plan to carry out discussions on our Nominating and Remuneration

Reports

Advisory Committee (with more than one half of its members being independent outside directors) and we will deepen debate regarding

Corporate Management Sector

policies for fostering management and formulating a succession plan.

Nominating and Remuneration Advisory Committee

Number of Outside Directors

Maximum Number of Directors Stipulated in Articles of Incorporation

15 members

Number of Outside Directors

4 members

To strengthen the Board of Directors’ audit function and accountability and expand its scope of review, on October 25, 2019, we establishedTerm of Office Stipulated in Articles of Incorporation

2 years

Number of Outside Audit & Supervisory Board Members

4 membersa Nominating and Remuneration Advisory Committee as an advisory body to the Board, and a majority of the committee’s members are

Chairperson of the Board

President

Number of Directors

12 members

Number of Outside Directors

4 members

Four of the Yokorei Group’s 12 directors are outside directors, and all 4 audit &supervisory board members are outside audit & supervisory board members. We arepracticing sound management by incorporating outside perspectives.

Number of Independent Directors

4 members

independent outside directors. This advisory committee will report to the Board on matters concerning the appointment and resignation of
directors and audit & supervisory board members, 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 remuneration of directors and audit &supervisory board members.

Analysis and Evaluation of the Effectiveness of the Board of Directors

Matters Related to Director Compensation

In order to further improve the function of the Board of Directors, the Company conducts an annual survey of all directors, and the Board of

Directors’ remuneration is determined by the Board of Directors, limited to the scope passed by resolution at the General Shareholders

Directors discusses issues identified from the results of the survey to analyze and evaluate its own effectiveness. This fiscal year’s survey was

Meeting, and based on the results of discussions and deliberations by the Nominating and Remuneration Advisory Committee (which has

conducted in August 2022. As a result, we assessed that the Company’s Board of Directors is operating appropriately overall, and that theindependent outside directors comprising a majority of its members). Director compensation is comprised of base compensation that is a

Board’s effectiveness is ensured. We will continue to evaluate the Board of Directors on an ongoing basis to ensure a higher level of

fixed amount, performance-based compensation that reflects business results for one fiscal year, and restricted stock compensation that

effectiveness, as well as to promote early distribution of materials and more active discussions from broad points of view.

reflects medium- to long-term business results. The rough ratio of base compensation and performance-based compensation, which aremonetary compensation, and restricted stock compensation, which is non-monetary compensation, is 6:2:2 if performance targets are met.

Independence Standards and Qualifications for Independent Outside Directors

Outside director and audit & supervisory board member compensation are only comprised of base compensation of a fixed amount.

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

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

22

YOKOREI Integrated Report 2022

23

Corporate GovernanceDirectors, Audit & Supervisory Board Members, Corporate Officers (as of Dec. 22, 2022)
 Directors

 Audit & Supervisory Board Members

Chairman and Representative Director

President and Representative Director, CEO

Executive Vice President and Director

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

Auditor (Outside)

Number of the Company’s shares held: 160 thousand
Board of Directors meeting attendance (attendance rate):
13 times / 13 times (100%)

Number of the Company’s shares held: 66 thousand
Board of Directors meeting attendance (attendance rate):
13 times / 13 times (100%)

Number of the Company’s shares held: 58 thousand
Board of Directors meeting attendance (attendance rate):
13 times / 13 times (100%)

Number of the Company’s shares held: 1 thousand
Board of Directors meeting attendance (attendance rate):
13 times / 13 times (100%)

Number of the Company’s shares held: 0.4 thousand
Board of Directors meeting attendance (attendance rate):
13 times / 13 times (100%)

Number of the Company’s shares held: 5 thousand
Board of Directors meeting attendance (attendance rate):
13 times / 13 times (100%)

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 theCompany
Dec. 1996 General Affairs Dept. General Manager and Managing
Director at the Company
Dec. 2003 President and Representative Director, CEO 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, CEO at the Company
Oct. 2021 President and Representative Director, CEO at the Company(current)

Apr. 1978 Joined the Company
Dec. 2003 Tokyo Plant General Manager and Corporate Officer at theCompany
Apr. 2012 Chief of Cold Logistics Business Sector, General Manager ofKanto 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 the Company
Dec. 2017 Chief of Corporate Management Sector, Chief of Cold
Logistics Business Sector, Cold Logistics Sales Dept. General
Manager, and Managing Director at the Company
Apr. 2019 Managing Director in charge of all sectors at the Company
Dec. 2019 Executive Vice President and Director in charge of businesssectors, Public Relations and IR Dept., and SDGs promotion
at the Company
Oct. 2021 Executive Vice President and Director in charge of businesssectors, Public Relations and IR Dept., SDGs promotion, andMedium-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 Audit & Supervisory Board Member 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 Audit & Supervisory Board Member 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 Audit & Supervisory Board Member at Marubeni Construction
Material Lease Co., Ltd.
Dec. 2009 Audit & Supervisory Board Member at the Company (current)Managing Director

Director

Director

Auditor (Outside)

Corporate Officer

Shigetaka Senda

Corporate Officer

Naoto Negishi

Number of the Company’s shares held: 33 thousand
Board of Directors meeting attendance (attendance rate):
13 times / 13 times (100%)

Number of the Company’s shares held: 18 thousand
Board of Directors meeting attendance (attendance rate):
13 times / 13 times (100%)

Number of the Company’s shares held: 39 thousand
Board of Directors meeting attendance (attendance rate):
13 times / 13 times (100%)

Number of the Company’s shares held: 2 thousand
Board of Directors meeting attendance (attendance rate):
12 times / 13 times (92%)

Corporate Officer

Masato Iwakura

Corporate Officer

Mitsutaka Hoshi

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., andExecutive Vice President and Director at Alliance Foods 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, andDirector in charge of internal controls, compliance, andaffiliate 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
Jan. 2022 Chief of Food Sales Business Sector, and Managing Director
at the Company (current)

Jul. 1998 Joined the Company
Apr. 2011 Yokohama Logistics Center General Manager at the Company
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, General
Manager of Business Planning Dept., General Manager ofConsumption Area Sales Group, and General Manager ofConsumption Area Sales Business Dept., and Director at theCompany
Apr. 2022 General Manager of Business Planning Dept.; Deputy Chiefof Food Sales Business Sector; General Manager ofConsumption Area Sales Group, and General Manager ofConsumption Area Sales Business Dept. 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 ofGeneral Affairs and Human Resources Dept., and Director in
charge of internal controls, compliance, and affiliate
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 Responsible for Internal Control, Compliance; General
Manager of Risk Management Dept., and Director at theCompany
Apr. 2022 Director; Responsible for Internal Audit Dept., at theCompany (current)

Mar. 2003 GSDF Staff Office, Defense Dept. Manager at Defense Agency
Aug. 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)		
Audit & Supervisory Board Member at the Company (current)

Corporate Officer

Hiroto Ikeda

Corporate Officer

Akiko Komatsu

Corporate Officer

Takuji Uchiyama

Corporate Officer

Hajime Izu

Corporate Officer

Yoshiaki Hoshino

Corporate Officer

Shinya Seki

Corporate Officer

Masakazu Oda

Corporate Officer

Satoshi Yoshida

Corporate Officer

Narito Nakao

Director

Director

Director (Outside)

Number of the Company’s shares held: 22 thousand
Board of Directors meeting attendance (attendance rate):
13 times / 13 times (100%)

Number of the Company’s shares held: 14 thousand
Board of Directors meeting attendance (attendance rate):
13 times / 13 times (100%)

Number of the Company’s shares held: 5 thousand
Board of Directors meeting attendance (attendance rate):
12 times / 13 times (92%)

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.

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 the Company
Dec. 2022 Medium-Term Management Plan Promotion Committee
Chair, Chief of Corporate Management Sector, and Director
in charge of climate affairs at the Company (current)

Apr. 1996 Joined the Company
Apr. 2011 Nagoya Logistics Center General Manager at the Company
Dec. 2017 General Manager of Keihin Block, Tokyo Haneda Logistics
Center Launch Preparation Committee Chair, and Corporate
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 ClubMay 2022 Vice Chairman, Certified Management Support NPO Club
(current)

Toshio Yoshikawa

Hiroyuki Matsubara

Yuji Inoue

Keizou Inoue

Shuzo Hayashi

Eizo Tanahashi

 Corporate Officers
Koji Ochi

Naotaka Yoshikawa

Mikio Hanazawa

Hisao Munakata Director and Audit & Supervisory Board Member Skill Matrix
Kenji Furuse

Mototsugu Sakai

Director (Outside)

Director (Outside)

Director (Outside)

Number of the Company’s shares held: 1 thousand
Board of Directors meeting attendance (attendance rate):
13 times / 13 times (100%)

Number of the Company’s shares held: 0.4 thousand
Board of Directors meeting attendance (attendance rate):
9 times / 13times (90%)

Number of the Company’s shares held: 0.2 thousand
Board of Directors meeting attendance (attendance rate):
10 times / 13times (100%)

Oct. 1980 Joined Shinko Kansa Hojin
Jul. 1988 Moved to Ota-showa Kansa Hojin
Mar. 1989 Opened Horiai Accounting Office (current)
Dec. 2020 Director at the Company (current)

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)
Dec. 2021 Director at the Company (current)

Apr. 1995 Assigned to No. 1 Nippori Elementary School, Arakawa-ku,
Tokyo
Sept. 2011 Passed bar exam
Dec. 2012 Joined Rokuta-Sakamoto 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)
Dec. 2021 Director at the Company (current)

Yosuke Horiai

24

Hiroshi Okada

Mitsuhiro Honda

Yoriko Sakamoto

Legal affairs
Personnel &Financial
Refrigerated
Corporate
Crisisand internal
human
accounting & Warehousing
management
management
controls
resources
taxation
Business

Name
Chairman and Representative Director

Toshio Yoshikawa

President and Representative Director, CEO Hiroyuki Matsubara






















Food Sales
Business

Overseasbusiness

Executive Vice President and Director

Yuji InoueManaging Director

Koji Ochi









Director

Naotaka Yoshikawa









Director

Mikio Hanazawa









Director

Kenji Furuse

Director

Hiroshi Okada

Director (Outside)

Mototsugu Sakai

Director (Outside)

Yosuke Horiai

Director (Outside)

Mitsuhiro Honda

Director (Outside)

Yoriko Sakamoto

Standing Statutory Audit & Supervisory
Board Member (Outside)

Keizou Inoue

Standing Statutory Audit & Supervisory
Board Member (Outside)

Shuzo Hayashi

Audit & Supervisory Board Member (Outside) Eizo Tanahashi

Audit & Supervisory Board Member (Outside) Hisao Munakata























* The attendance of Outside Directors Mr. Mitsuhiro Honda and Ms. Yoriko Sakamoto at Board of Directors meetings is since their appointment as Outside
Directors (December 2021).

YOKOREI Integrated Report 2022

25

Corporate GovernanceCompliance and Risk Management

Message from an Outside Director

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 the code with all
employees, including executives, and continuing to communicate that into the future, the Company is working to thoroughly adopt the
distribution based on ‘new capitalism’ paving the way to the
future” in which, aiming to solve social issues and achieve
economic growth by positioning such efforts per se as a sourceof value-added creation in the growth strategy, the public andCompany related to the compliance system, and the Corporate Management Headquarters undertakes various efforts including maintaining
the compliance system, ascertaining problems, and conducting training for employees. Directors in charge of operations analyze the uniquecompliance risks for the operations they are in charge of and strive to implement necessary responses. In order to further strengthen internal

investments and reforms over the medium to long term.

controls, including maintaining a system of internal controls for financial reporting, the Basic Policy on the Operation of Internal Controls

ShinNihon LLC, I opened the Horiai Accounting Office in 1989 toSystem 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.

practice as a certified public accountant and tax accountant. I

Working with the Corporate Management Headquarters, audit & supervisory board members and the Internal Audit Department examine

have been an outside director of the Company since December

the state of compliance and report on that to the Board of Directors, and the Board of Directors regularly reviews the compliance system and2020. Outside directors have the role of supervising management

works to ascertain and resolve problem points.

and confirming the process of management decisions. As apublic accountant and tax accountant, I do not makemanagement decisions as a management professional in theessential sense of the word. However, I do utilize my knowledge
and experience as certified public accountant and tax accountant

26

The Representative Director designates the director in charge of compliance as the person responsible for efforts throughout theprivate sectors cooperate in making planned and focused
After working for the company now known as Ernst & Young

Yosuke Horiai Outside Director

stance that all business activities are premised on adherence to laws, regulations, and social ethics.

As one part of efforts to maintain the internal control system, an Internal Control Committee was created to identify laws and regulations
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/csr/governance/corpgovernance/pdf/naibutose.pdf

We have shown our long-term direction in the Yokorei Businessin discussions and decision making regarding various corporate

Vision 2030, based on our corporate philosophy that “companies

activities at the Board of Directors meetings. Specifically, I would

are social institutions and profits are a measure of their service,” inlike to be actively involved in governance and support thethe aspiration of “We promise to provide smart cold services

Company in improving corporate value by closely monitoring

The Company has established the Yokorei Group Whistleblowing and Consultation Helpdesk in the General Affairs Department and Human

combining tradition and innovation,” in the Refrigerated

responses to Key Account Management (KAM) letters from theResources Department as an internal reporting system for legal violations and other compliance-related matters, which they work to prevent.

Warehousing Business; “We will realize distinctive food value

audit firm and working with the audit & supervisory board

Based on the Whistleblowing Process Rules, the Company also takes utmost care to protect providers of information, which includes not

together with customers, preserve our close relationship withmembers to oversee the Company’s management.

engaging in unfavorable treatment. In FY2022, the Helpdesk received three consultations (four in FY2021) and took appropriate actions,producers, and add to the richness of the world’s tables,” in the

The most important role of an outside director is to supervise

Food Sales Business; and “For a brighter food future – Yokorei will

management and confirm the management decision-making

ensure a stable food supply to help support a sustainable society”

process of a company, as described above. I believe that thein the Yokorei Sustainability Vision 2030. In November 2020, weCompany’s Board of Directors makes appropriate decisions

launched our Medium-term Management Plan (Phase I), “Thethrough open discussions. While the Company provides material

Power to Create,” which concludes in the fiscal year ending

for Board of Directors meetings in advance and shares summaries

September 30, 2023, and are working to achieve our quantitativeof deliberations, I believe that we will be able to make bettertargets of ¥124 billion in net sales, ¥5 billion in operating income,

judgments regarding decision-making if outside directors can¥11 billion in EBITDA, and a shareholders’ equity ratio in the mid-participate in meetings that lead to detailed decisions on what are

40% range, as well as our sustainability targets.

considered to be important matters. Moreover, the Board of

In terms of business performance, I believe the Company is

Directors meetings are conducted in an extremely open mannerconducting stable, sound management despite the uncertain

because participating directors are provided with opportunities toexternal environment, such as rising electricity prices. To further

make comments while the chairman works through the agenda.

increase corporate value in the future, the Company could

Going forward, to strengthen governance I will take an active

proactively share information between the Refrigerated

role in fulfilling my functions on the Board of Directors andWarehousing Business and Food Sales Business, and establish aensuring the effectiveness of internal audits and internal controls

system to develop new products for sale utilizing local

in accordance with the Corporate Governance Code. In particular,commercial products handled by the Refrigerated Warehousing

I will contribute to governance and the evaluation of the so-called

Business. In addition, I believe that we can contribute to the“control environment” (management’s intentions and stance,

Sustainable Development Goals (SDGs) of stable food supply byintegrity and ethics, corporate culture, management policy,

solving the problem of food waste due to various causes, formanagement strategy, effectiveness of the Board of Directors andexample, by utilizing our own refrigerated warehouses to sell

Audit & Supervisory Board, etc.) based on a sufficientfrozen food products. This seems to be in line with Prime Minister

understanding of business and management, and taking into

Fumio Kishida’s proposal for a “virtuous cycle of growth andaccount the importance of the control environment.

Internal Whistleblowing System

functioning as a hotline that can be accessed with peace of mind.

Basic Policy for Risk Management
The Company is tackling the risks surrounding its business by engaging in risk management aimed at preventing said risks in advance andminimizing damage should they occur. The Risk Management Committee, chaired by the Chief of Corporate Management Sector, meetsregularly (at least twice per year) to identify company-wide risks, discuss appropriate responses, and report to the Board of Directors.
Ultimately, the Board of Directors determines the company-wide risk management policy, and the Risk Management Department manages
the risks in accordance with our Risk Management Rules.
Risk Management Basic Policy(1) B asic Objectives
The objectives of our risk management activities are to reduce the loss of management resources, including people and objects, due to thevarious risks we face through our business activities, to enable a swift recovery from emergency situations and ensure such a situation does
not reoccur in the future, and to secure sound management and revenues.
(2) G uidelines for Action
Stay 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/csr/governance/riskmanagement/
YOKOREI Integrated Report 2022

27

Environmental and Social Initiatives
Environmental Initiatives

 Risk Management

Yokorei has installed a natural refrigerant air-conditioning system at its new refrigerated warehouse,
and is converting existing facilities to natural refrigerants. The natural refrigerant implementation
rate for Yokorei Group overall now exceeds 68% (as of the end of September 2022). In addition, solar
power systems have been installed at 17 logistics centers in Japan and two facilities overseas.
Electricity generated during FY9/22 amounted to 6.57 million kilowatts, equivalent to a reduction

MetricWasteemissions

FY2021
TargetResult5% reduction
from theprevious year

11.1%
reduction

FY2022
Target5% reduction
from theprevious year

* These figures account for all Yokorei locations in Japan (excluding
offices of the Food Sales Business and company headquarters).

of 2,855 tonnes in CO2 emissions. In addition, the Company has obtained Green Management Certification for all of its Refrigerated Warehousing Businessfacilities nationwide, and is promoting energy conservation and waste reduction initiatives based on its Environmental Conservation Action Plan.

Climate-related risk management process
1. Risk management method: Risks identified as climate-related are considered by the Sustainability Committee, and in cooperation with relevantinternal departments, are handled through a process of reduce, transfer, accept, or mitigate. The Sustainability Committee reports the results of its
considerations of climate-related risks to the Risk Management Committee, which reviews each matter, and a final decision on management policy
is made by the Board of Directors.
2. Prioritization: The Sustainability Committee determines the priority in which climate-related risks are to be addressed by the Company. Priority isdetermined based on an assessment of the potential financial impact, and the likelihood of the risk becoming manifest.
Integration with company-wide risk management

Measures to Address Climate Change

The Risk Management Committee meets regularly (at least twice a year) to assess the risks reported by corporate departments. The committee

 Support for the TCFD Recommendations

risks are examined and assessed in the same manner as other risks. The Board of Directors makes the final decision regarding company-wide risk

considers the overall risk to the organization, discusses the appropriate response, and reports its findings to the Board of Directors. Climate-related
management policy, and the risk is managed by the Risk Management Office based on risk management rules.

In December 2021, Yokorei announced its endorsement of the Task Force on Climate-related Financial
Disclosures (TCFD) and joined the TCFD Consortium. Yokorei recognizes the risk that climate change poses
for its business, while at the same time considers taking advantage of change to create new revenue opportunities to be a management priority, and Indicators and Targets

believes that proactive measures to address climate change will enhance corporate value over the longer term. Yokorei acknowledges the

Yokorei has set the following targets to mitigate and adapt to climate-related risk, as well as maximize climate-related opportunities.

importance of financial disclosure related to climate change, and will provide disclosure in line with the TCFD recommendations.

 Climate Change-related GovernanceYokorei established a Sustainability Committee in September 2021 to provide support for appropriate oversight by the Board of Directors regarding
evaluation and measures for policies, strategies, risks and opportunities related to climate change. Committee membership comprises directors,

TargetIndicator

Target 1 By 2030, GHG emissions reduction of 40% (compared to 2015 levels)

GHG emissions volume per storage capacity in the
Refrigerated Warehousing Business
Storage capacity of warehouses using naturalrefrigerants in the Refrigerated Warehousing BusinessElectricity production capacity of solar power systems
in the Refrigerated Warehousing Business

By 2030, natural refrigerant implementation rate of 80% (compared
Target 2 to 68% in 2022)
By 2030, solar power production capacity of 10MW (compared toTarget 3 around 6MW in 2022)

All three target figures are based on the Refrigerated Warehousing
Business, which has a high environmental load (accounting for 99%
of the Company’s GHG emissions).
* Projecting from the current rate of GHG emissions reductions, theforecast reduction by 2030 is 47% from 2015 levels, against a targetof 40%.

corporate officers, and heads of business departments, with the president serving as the committee chairperson. The Sustainability Committee
regularly discusses and assesses the impact on business from factors related to climate change (twice a year in principle), and reports material matters Measures to Mitigate Climate Change

to the Board of Directors. The committee also considers strategies for responding to specific risks and opportunities, sets targets, and reviews results

Yokorei supports policies based on the Paris Agreement and other accords concerning measures to prevent global warming. The Company also

to monitor progress. The Board of Directors, based on the climate change-related matters reported by the Sustainability Committee, reviews andsupports the Japanese government’s commitment to achieve decarbonization, and fully complies with legislation on climate change, including thedirects the Company’s strategies, business plans, and risk management policies.

Act on the Rational Use of Energy, and the Act on Promotion of Global Warming Countermeasures. The Company provides annual reports to thegovernment regarding its energy usage, progress with achieving energy efficiency targets, and the volume of GHG emissions.
Yokorei is making a particular effort to reduce GHG emissions in the Refrigerated Warehousing Business, mainly by introducing cutting-edge

 Strategies
Yokorei identifies the risks and opportunities from climate change on its businesses (Refrigerated Warehousing Business and Food Sales Business),and considers the impact based on chosen scenarios.
Yokorei has examined climate-related transition risks and physical risks, as well as opportunities, in line with the TCFD framework, and specified
them as per the following chart. After specifying the risks and opportunities, Yokorei envisioned multiple scenarios, concentrating on the two factorsof progress in government decarbonization strategies and rises in average air and seawater temperatures, and verified the Company’s resilience.

facilities and replacing existing equipment. In addition, the Company proactively participates in initiatives from the Ministry of the Environment.
Yokorei has received a ZEB (net Zero Energy Building) rating for the office building at the Chiba Research Park Logistics Center, and will switch toelectricity from renewable sources compliant with RE100 criteria for the power used at refrigerated warehouses in the Hokkaido region, and at the
Yokohama Mirai Satellite facility.
Environmental Assessments Received
Assessment

Risks and Opportunities
ChosenScenario

Specified Risks and Opportunities
Envisioned Scenario

Type

Transition Risk
Measures to reduce(Policy and Legal)
GHG emissions arestrengthened
Transition Risk
worldwide, and the
1.5°C
Japanese government (Policy and Legal)
Scenario
accelerates its
IEA NZE
decarbonization
Opportunity
2050
strategies. The degree(Products andof climate-related
Services)
physical risk remains at
the current level.
Opportunity(Markets)
Measures to reduce
GHG emissions
stagnate worldwide,
economic development
dependent on fossil
4°C
fuels continues to
Scenario advance, and the
IPCC
Japanese government
RCP8.5 shows few signs ofadvancing its
decarbonization
strategies. Climaterelated physical riskincreases.

Relevant Business
Segment

Countermeasures

Short to Medium• Curb power consumption utilizing system to make power consumption visible (BEMS)• Systematic introduction of facilities to reduce financial burdens

Refrigerated
Warehousing
Refrigerated
Warehousing

Call for reduction in GHG emissions from freezers and refrigerators, rising demand from
customers for refrigeration and freezing services that contribute to decarbonization.

GHG emissions regulations

Food Sales

Rising demand from customers for environmentally certified products

Demand from customers forenvironmentally certified products

Medium to Long • Increase handling volume of environmentally friendly productsFrequency of wind and water damage

Short to Long• Construct disaster-resistance refrigerated warehouses

Frequency of abnormal weather

Short to Long• Develop aquaculture businesses in countries and areas less susceptible to natural
disasters

Refrigerated
Warehousing

Physical Risk
(Acute)Food Sales

Physical Risk
(Chronic)

Refrigerated
Warehousing

Physical Risk
(Chronic)

Food Sales
Refrigerated
Warehousing

Associated with severe rainstorms and more intense typhoons in Japan• D ecline in sales due to cessation of operations at refrigerated warehouses• G eneration of repair cost for refrigerated warehouse facilities
Associated with abnormal weather around the world• H igher purchase prices for marine, livestock, and agricultural products due to declines infish catches and production volumes• Increase in costs from procurement of alternative products
Associated with rising temperatures in Japan• Increase in electricity costs for operation of refrigerated warehouses
Associated with changes in the natural environment, generation of viruses, insect pests, etc.
• Higher purchase prices for marine, livestock, and agricultural products due to declines infish catches and production volumes• Rise in procurement cost for aquaculture and livestock products
Associated with rise in average temperature in Japan• Increase in demand for temperature-controlled handling of food products

Chosen scenarios: • WEO NZE 2050 scenario formulated by the International Energy Agency (IEA)• RCP 8.5 scenario formulated by the Intergovernmental Panel on Climate
Change (IPCC)

28

Timeframe

Associated with acceleration of curbs in GHG emissions• S trengthened calls for power savings in order to reduce electricity consumption• Increased cost for introducing equipment using natural refrigerants• Increased cost for introducing energy-saving equipment
Associated with carbon pricing (introduction of carbon tax / emissions trading)• Increase in electricity costs for operating refrigerated warehouses

Refrigerated
Warehousing

Physical Risk
(Acute)Opportunity(Products andServices / Market)

DriverSummary

Energy saving regulations
Carbon pricing• Introduction of solar power systems to generate renewable energy• Switch to renewable energy for electricity to operate refrigerated warehouses• Introduction of additional freezing and refrigeration equipment that contributes todecarbonization
Medium to Long • Cooperation with freight carriers to enhance efficiency through consolidation of
distributed storage locations and the transport network in order to curb GHG
emissions* CASBEE (Comprehensive Assessment System for Built Environment Efficiency) is a method of
evaluating and rating the environmental performance of buildings. The nationwide system wasdeveloped by government, industry, and academia based on guidance from the Ministry of Land,
Infrastructure, Transport and Tourism. A building’s environmental performance is rated on a five-point
scale based on an assessment of its environmental quality and impact. CASBEE Fukuoka provides
ratings based on the city of Fukuoka’s own priority criteria, in addition to environmental performance.

Business Location that Received the Assessment

CASBEE Fukuoka

A

Yokorei Fukuoka ISLAND CITY Logistics Center

CASBEEA

Yokorei Chiba Research Park Logistics Center

Measures for Sustainable Procurement

Short to Long

Rise in average temperature

Medium to Long • Decrease electricity costs by introducing energy-saving equipment

Rise in average temperature
Rise in ocean temperature

Medium to Long

• Strengthen cooperation with producers to ensure stable procurement• Diversify supply chains and develop relationships with new suppliers

Yokorei recognizes the importance of sustainable procurement that takes into account both the environment and society,and as such preferentially deals in marine products certified by the Marine Stewardship Council (MSC) and Aquaculture
Stewardship Council (ASC). The Company has also acquired MSC and ASC Chain of Custody (CoC) certification for
management of the processing and distribution process, working to procure and supply sustainable marine products. Of
marine products procured in FY9/22, around 38% of flounder and pacific ocean perch were MSC certified.
In addition, Hofseth Aqua AS, Yokorei’s partner in the Norwegian salmon business, in 2017 became the first salmon
aquaculture company in Norway to receive ASC certification for its fish farms. Currently, all of the company’s salmon
farms are ASC certified.
Procurement of Certified Marine Products
Certification

Rise in average temperature

Rank

Medium to Long • Increase temperature-controlled warehouse capacity to meet rising demand

Timeframes: S hort = 1-3 years (to 2025) Medium = 2030 (Same period as Japan’s NDC
intermediate target)
Long = 2050 (Same period as Paris Agreement and Japan’s declared NDC target)

Financial impact: The financial impacts of climate-relatedrisks and opportunities are currently being assessed andconsidered (disclosure scheduled for FY9/23).

2020

Tonnes and proportion of certified marine products*

2021

2022

ASC

501 (6.5%)

139 (10.5%)344 (22.0%)

MSC

164 (4.7%)

3,587 (19.5%)

5,264 (19.8%)* Proportion of certified marine
products among the items that
contain certified marine products

YOKOREI Integrated Report 2022

29

Environmental and Social Initiatives

Working Style Reforms and Health Promotion

Human Rights Initiatives

Yokorei actively pursues working style reforms that provide a better work-life balance, such as lessening

In recent years, relevant institutions and economic organizations in Japan have issued principles and guidelines regarding human rights, andthe burden on employees and reducing work hours.

measures to respect human rights have become important management concerns for Japanese corporations. Yokorei recognizes that respect for

Kesennuma, where the Kesennuma Sorting Spot II was recently built, is one of Japan’s leading areas forhuman rights is an important aspect of corporate activity, and supports the International Bill of Human Rights and ILO Declaration on Fundamental

marine products. However, the area’s population is declining and growing older, leading to such problems

Principles and Rights at Work, which represent the international community’s standards and philosophy regarding human rights. Yokorei pursues theas an aging workforce to sort marine products, and a worker shortage. In addition, the sorting and freezing

following human rights initiatives, based on the UN Guiding Principles on Business and Human Rights.
Of note, there were no reported incidents of human rights violations in FY2022.

of marine products is physically demanding work. The majority of employees are men, and they need to
Kesennuma Sorting Spot II, automated sorting line

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.
Yokorei is also automating administrative tasks with the company-wide introduction of RPA. During FY9/22, this system saved around 6,000 work
hours, supporting efforts for more highly productive operations. The Cold Logistics Business Sector, along with RPA, is enhancing operational
efficiency with the successive introduction of a paperless system for warehouse receiving operations using tablet devices.
In addition to these working style reforms, Yokorei is also focused on health promotion. Employees are a company’s most valuable asset, and by
maintaining and improving the health of its employees Yokorei aims to enhance labor productivity, and achieve sustainable growth as a company

 Respect for human rights
We prohibit the inhumane treatment of people, including all forms of discrimination, abuse, and harassment, as well as all forms of forced labor andchild labor, and respect the culture of every country and region in the world.

 Respect for collective bargaining and the freedom to unionize
We view collective bargaining as a fundamental right of workers and respect it as a means for labor and management to discuss work environments
and wage levels. We also respect the freedom to unionize.

with an attractive work environment. Yokorei has set KPI and will continue to pursue measures to support certification as a Health and Productivity

 Work hours and wages

Management Outstanding Organization.

Along with properly managing work hours to ensure that they do not exceed legal limits, we will prevent long working hours and overwork while

Human Resources Development

providing appropriate compensation that exceeds the minimum wage.

Yokorei conducts employee development and training at the Yokohama Mirai HRD (Human Resource Development) with facilities as a systemdevelopment center, and the Yokohama Mirai Satellite providing on-the-job training. In FY9/22, the HRD Center and Cold Logistics Business

See the following for details on initiatives regarding respect for human rights:

Headquarters collaborated on various internal trainings, including practical skills for forklift

https://www.yokorei.co.jp/en/csr/society/humanright/

operation, briefings on the introduction of RPA, and training for site managers.

Supplier Guidelines
https://www.yokorei.co.jp/en/csr/society/safety/supplier/pdf/supplier.pdf

Total Training Hours and No. of Trainees
Total Training Hours

No. of Trainees

FY9/21

13,198 hours

826 persons

FY9/22

10,765 hours

935 persons

Yokohama Mirai HRD

Yokohama Mirai Satellite

Contribution to Local Communities
Yokorei has donated a portion of its profit each year since 1973 as a way of giving back to the community. In FY9/22, the Company donated a total

Diversity Initiativesof ¥23,271,949 in support of 23 causes. As a foods company, Yokorei makes a particular effort to support food-related activities.

Yokorei strives to provide a pleasant work environment for all employees regardless of gender, nationality, or physical disability. Yokorei aims to create
workplaces where employees can fully demonstrate their capabilities and individuality.

 Donation to Meals on Wheels Japan
Yokorei supports the efforts of Meals on Wheels Japan, and made a donation as part of its food-based social action

 Active Roles for Female Employees and Career Support

program. Meals on Wheels Japan provides ongoing support to organizations engaged in meal delivery services, volunteer-

Yokorei has expanded opportunities for women in recent years with labor-saving advancements

run cafeterias providing meals to children, and other types of food-related activities as a means of addressing suchand automation of warehouse operations. The Company has also renovated changing rooms, as

problems as social isolation and child poverty. Along with the financial donation, Yokorei also began offering logistics

well as established policies for maternity and childcare leave, and shortened working hours, in

support, such as providing storage space for food utilizing the Company’s refrigerated warehouses.

order to provide a work environment more conducive to women throughout the organization. As
a result, at the end of September 2022, a total of 37 women were working on site in refrigerated
warehouses (increased 9 a year earlier), 11 were on child-care leave (increased 3 a year earlier), and19 were on reduced hours for child or nursing care (increased 2 a year earlier).

Yokorei offers a work environment in which anyone canplay an active role

 Donation to the “sweet heart project”
The “sweet heart project” assists facilities for persons with disabilities andother welfare centers by providing opportunities to make and sell cookies
and cakes. Along with product development and technical support for Introducing Automation and Labor Saving Systems

production, the project provides a wide range of support that includes a

Yokorei works to improve the work environment for truck drivers

structure for joint purchasing of ingredients, and expanding sales

and warehouse operations staff, and continue measures tochannels. Yokorei provides financial assistance, while also helping toensure sustained and stable logistics. In December 2017, Yokorei
developed and introduced the truck reservation system to reduce

Electric movable racks

Cargo navigation system

Truck reservation system

the amount of time trucks spent waiting, and to even out

A gift box of assorted sweets given out at the ceremony for thecooperation agreement with Ibaraki Prefecture for the aquacultureindustry establishment project. The “sweet heart project” and Yokorei
logo were printed on the carrying bag and box label.

Box of assorted sweets with amessage card distributed to new
employees during thewelcoming ceremony.

broaden the project activities by giving boxes of assorted sweets tovisitors or as sending products as thank-you gifts.

warehouse operations. This system is currently in operation at 10 business locations. Yokorei has introduced electric movable racks at its logistics
centers that significantly reduce the amount of time required for picking work. A cargo navigation system has been introduced at 9 locations. The
system, that works together with the movable racks, allows for labor savings and efficient warehouse operations.

30

YOKOREI Integrated Report 2022

31

Main Consolidated Financial Indicators
2022

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

Net sales

115,257

110,782

115,025

139,970

171,772

159,045

148,609

154,767

141,654

118,691

111,108

EBITDA

10,665

9,250

9,449

10,459

9,880

9,879

9,407

8,339

7,988

7,244

4,620

Operating income

4,252

2,562

3,412

4,774

4,825

5,179

5,169

3,874

4,105

3,729

1,083

Net income

3,317

3,605

2,340

3,385

3,343

3,360

2,932

2,517

1,835

2,308

199

Operating income ratio (%)

3.7

2.3

3.0

3.4

2.8

3.3

3.5

2.5

2.9

3.1

1.0

Return on sales (%)

2.9

3.3

2.0

2.4

1.9

2.1

2.0

1.6

1.3

1.9

0.2

Gross profit margin (%)

10.9

12.5

12.1

10.8

8.8

9.2

8.4

7.4

8.1

8.9

7.3

SGA ratio (%)

7.2

10.1

9.1

7.4

6.0

5.9

4.9

4.9

5.2

5.8

6.4

Total assets

179,021

178,203179,935

179,247

186,791

173,699

145,232

118,901

114,210

97,59390,937

Total shareholders’ equity

79,15777,55075,24874,122

72,18164,36961,13059,22857,79956,98955,716

Net assets

85,17082,56879,97580,58078,85869,68863,02762,322

59,63558,15955,639Interest-bearing debt

77,18579,33082,346

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

Shareholders’ equity ratio (%)

46.8

45.7

43.2

43.7

41.5

39.4

42.7

51.6

51.5

59.1

60.8

Debt/Equity ratio (%)

97.5

102.3

109.4

107.9

124.0

130.3

104.6

72.2

66.2

45.3

43.1

Capital expenditures

7,068

13,744

15,513

12,479

11,96010,21012,721

4,556

13,929

3,919

4,965

Depreciation

6,413

6,688

6,037

5,685

5,054

4,699

4,237

4,465

3,882

3,515

3,536

Return on equity (ROE) (%)

4.0

4.5

3.0

4.3

4.6

5.1

4.8

4.2

3.2

4.1

0.4

Return on total assets (ROA) (%)

1.9

2.0

1.3

1.8

1.9

2.1

2.2

2.2

1.7

2.4

0.2

Price/Earnings ratio — PER (times)

15.64

14.47

22.90

17.92

15.45

16.49

18.92

19.34

22.94

18.13

148.33

Price/Book value ratio — PBR (times)

0.62

0.64

0.69

0.77

0.70

0.82

0.89

0.79

0.72

0.73

0.54

Price/Cash flow ratio — PCFR (times)

5.34

5.35

6.13

6.76

6.43

7.41

7.92

7.08

7.44

7.70

7.64

Net income per share (EPS) (¥)

56.34

61.30

39.86

57.77

59.63

64.28

56.66

48.66

35.48

44.61

3.85

Book value per share (BPS) (¥)

1,422.83

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

Cash flow per share (CFPS) (¥)

164.85165.71148.95153.17143.25143.05135.39132.89109.38105.1375.00

Dividends per share (¥)

23.00

23.00

23.00

23.00

23.00

20.00

20.00

20.00

20.00

20.00

20.00

Payout ratio (%)

40.8

37.5

57.7

39.8

38.6

31.1

35.3

41.1

56.4

44.8

520.0

¥ million

 Net sales, operating income, and net income* Profitability ratios Total assets, total shareholders’ equity, andinterest-bearing debt

 Capital expenditures and depreciation

 Return indicators

 Investment indicators

 Per share value indicators

 Dividends and payout ratio 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*1 Net income on this page represents profit attributable to owners of parent.
*2 The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020), etc. effective from the beginning of the current fiscal year; and thefigures for the fiscal year ended September 30, 2022, are after the application of the said accounting standards and others.

32

YOKOREI Integrated Report 2022

33

Non-Financial Data

External Recognition

 Social Data

Selected as a constituent stock of the FTSE Blossom Japan
Sector Relative Index.

Human Resources

Workplace Safety

2022
1,639
5,475
36.4
12.1
13.5
7.8
2.2
2.1
114
7.6
11
1
10
28.2
3.5
100.0
0
1,928
18
8
6.45
253

No. of employees (consolidated basis)
Employee average annual income (thousand yen)
Average age
Average years of service
Male
FemalePercentage of employees with disabilities
Percentage of female managers
Number of recruits
Job turnover (retirement for personal reasons) (%)
Number of employees taking childcare leave
Male
FemalePercentage of employees taking childcare leave
Male
FemaleNumber of labor law violations
Annual number of scheduled working hours
Number of business accidents
Number of accidents resulting in business closures (4 days or more)
Workplace accident frequency rate (%)*2
Number of participants in training related to workplace health and safety

2021
1,652
5,423
35.9
11.8
13.1
7.6
2.2
2.2
127
4.9
8
1
7
21.1
3.2
100.0
0
1,920
15
3
5.50
-

2020
1,722
5,392
36.1
11.8
13.2
7.3
1.9
2.3
111
4.9
10
0
10
24.4
0.0
100.0
0
1,928
14
5
5.36
-

Scope*1
Yokorei and consolidated subsidiaries

Investor FAQQuestion 1*1 Items with nothing listed under Scope refer to Yokorei.
*2 Number of casualties due to occupational accidents/Total actual working hours×1,000,000

Answer“The year 2024 problem” refers to various issues that will arise after April 1, 2024, when a law related to work style reform
will cap the amount of overtime that truck drivers work. For example, distances that up to this point were covered by asingle driver will start to require switching with multiple drivers and breaks due to the limit on overtime hours, andYokorei’s network could be useful as a base for these activities. In addition, we believe that cargo navigation systems andtruck reservation systems on the part of refrigerated warehouses to reduce waiting times could help to solve theproblem. Although “the year 2024 problem” is not a problem that we can solve head on, we do see it as a great
opportunity for our business and will continue our efforts to help sort out the problem.

Question 2

Please expound on the changes in the sales aspect of ESG management. Are customers showing
increasing demand for ESG-compliant refrigerated warehouses?

AnswerDemand for our eco-friendly refrigerators is increasing, especially among our major customers. As more and morecompanies comply with Scope 3 disclosure in the future, we expect that this trend will grow and our refrigerators will
become more competitive. Although we have long considered environmental conservation measures to be one of ourmost critical issues and have implemented a variety of initiatives, some of these efforts have gone unrecognized due toa lack of sufficient publicizing. Therefore, we are currently in the process of improving and enhancing the content of ourdisclosures and strengthening our appeal to customers.

Question 3

Please tell us how the steep rise in electricity costs has impacted your business performance, thestatus of price pass-ons, and the outlook for the next fiscal year.

AnswerElectricity costs increased significantly this fiscal year, about 26% from the previous year. Since electricity costs accountfor a large portion of expenses in the refrigerated warehousing business, we ask our customers to bear this cost. After
getting the green light from our customers — especially those who make up the highest amount of our sales — toproceed with price pass-ons, we were able to absorb the price increase this fiscal year. Since we expect this difficult
situation to continue into the next fiscal year and beyond, we will continue our efforts to negotiate price pass-ons. And
we will also continue to promote cost reduction efforts, such as utilization of energy-saving equipment and improvementof operational efficiency, as we have done for a long time.

 Environmental Data
Category
Environment-related
accidents
Air pollution

Waste

MetricClimate change

2020

2019

Scope*2

Notes

0

0

NOx (nitrogen oxide) emissions (t)

0 (0)

0

0

No applicable equipment

SOx (sulfur oxide) emissions (t)

0 (0)

0

0

No business sites with soot or smoke producing
facilities

0 (0)
0
0
2.0
3,093
3,246
1,688
1,664
1,406 / YoY-11.1%
1,582(YoY-5%)
1.4
1.6
0
0
362,598
291,080
248,269
223,565
103,628
67,515
10,701
-

0
0
3,046
1,821

Environmental law violation fine (yen)VOC (volatile organic compounds) emissions (t)Hazardous waste emissions (t)*3
Waste emissions (t)Recyclable
Non-recyclable

Water resources

2021*1

Waste emissions per unit of capacity (kg)
Water-related law violations (incidents)
Total water withdrawal (m3)
Tap waterIndustrial water
Ocean water
Greenhouse gas emissions (t-CO2)*6
Scope1
Refrigerated warehousing business sector
Food sales business sector
Corporate management sector
Scope2
Refrigerated warehousing business sector
Food sales business Sector
Corporate management sector
Scope1+2
Refrigerated warehousing business sector
Food sales business sector
Corporate management sector

479
402
60
17
58,69658,373
184
139
59,17558,775244
156

510
57,834
58,344-0

No applicable equipment

YokoreiYokorei*4

1,224
1.3
0
313,192
246,533
66,659584
57,22657,810-

Yokorei*4

Yokorei*5

Attestation of Validity
Yokorei*1 Numbers in parentheses are 2021 targets.
*2 Fields containing no text in the scope pertain to Yokorei and its consolidated subsidiaries.
*3 The FY2021 figure is due to the emission of PCB waste (transformers); hazardous waste emissions do not occur every year.
*4 Covers all 49 of Yokorei’s domestic Refrigerated Warehousing Business’s locations.
*5 Water withdrawals at offices of the food sales business sector and company headquarters are omitted because they account for less than 1% of total water withdrawals.
*6 GHG emissions are calculated by segment from FY2021.

 Governance Data
Prevention of Corruption Amount of political donations (yen)Number of employees disciplined and let go resulting from violations ofanti-corruption policies
Amount of fines for anti-corruption violations (yen)Board of Directors
Number of board meetings
Attendance of directors at board meetings (%)
Number of outside directors
Percentage of outside directors
IR Activities
Number of individual meetings with institutional investors and analysts
Number of small meetings

2022
0With “the year 2024 problem” approaching, please tell us about changes in customer needs, therefrigerated warehousing industry, logistics providers, etc.

2021
0

2020
0

0

0

0

0
13
98.7
4
33.3%
45
2

0
13
99.2
3
27.3%
39
2

0
13
100.0
2
20.0%
54
1

Scope*The YOKOREI Integrated Report 2022 is the third report produced and published by Yokorei since we began publishing integrated reports
in FY2020. Based on our policy that “companies are social institutions and profits are a measure of their service,” we continue to make
improvements to deepen stakeholders’ understanding of the value creation story Yokorei is pursuing by communicating our medium- andlong-term efforts to realize our sustainability vision: "For a brighter food future– Yokorei will ensure a stable food supply to help support asustainable society.”In the YOKOREI Integrated Report 2022, we have examined Yokorei’s business model and its value creation process in order to provide aneasy-to-understand guide. In addition, we explain our approach of resolving issues by clarifying materiality priorities and their relevanttargets, and by presenting our initiatives and KPIs for each fiscal year. Furthermore, in response to the demands of society, we have further
enhanced our disclosure of ESG information, including our stance on the environment, climate change, and human resources, as well as
information on corporate governance.
This report was produced under the leadership of the Public Relations and IR Department and through earnest discussions with therelevant departments. As the officer responsible for the production of the report, I attest that the process of preparing the report is legitimate
and that its content is accurate.
We hope that this report will help our stakeholders to better understand our Group’s medium- to long-term growth and the enhancementof our corporate value. We will continue striving to further strengthen our information disclosure and deepen our dialogue with our
stakeholders. We look forward to your continued support.

Naoto Negishi

Corporate Officer, General Manager of Public Relations and IR Department* Items with nothing listed under Scope refer to Yokorei.

34

YOKOREI Integrated Report 2022

35

Share Trends by Business

Stock Information (As of September 30, 2022)

 Refrigerated Warehousing Business, Industry Comparison Warehousing Volume by Product (Excluding intersegment transactions)(Thousand tons)

2022
Fishery
products

Livestockproducts

Agricultural
products

Yokorei (Share)
Japan Association of Refrigerated
Warehouses 12 cities
Yokorei (Share)
Japan Association of Refrigerated
Warehouses 12 cities
Yokorei (Share)
Japan Association of Refrigerated
Warehouses 12 cities

Frozen foods, Yokorei (Share)
other

Total

205

(10.3%)

1,997
480(10.9%)

Japan Association of Refrigerated
Warehouses 12 cities

4,912

Yokorei (Share)

1,474Japan Association of Refrigerated
Warehouses 12 cities

12,571(0.9ppt)(16.2%)

0.8%(-0.2ppt)

8.6%(0.7ppt)

476

187

9.7%

(0.6ppt)534(11.1%)(0.4ppt)

3.2%

1,382

(0.0ppt)(15.5%)-2.9%(-0.2ppt)-2.6%(0.1ppt)

12,179490(11.3%)

192(15.4%)

1,243

9.9%

(0.9ppt)

0.9%(11.3%)(9.4%)

4,347

-2.7%
(11.3%)

180
1,920

-0.9%

4,705

6.7%

2.8%
2.0%

1,209

4.4%
(11.7%)(9.4%)

4,306

3.4%(11.9%)

185

2020

YoY

1,959

2.5%

1,250
586

10.8%
1.9%

4,412
203

2021

YoY

486

(10.4%)

Securities Code

2874

Stock Listing

Prime Market, 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

15,682
Japan Credit Rating Agency, Ltd. Long-term: A-

Credit Rating(As of August 23, 2022)

4,662

2.5%

(0.2ppt)

0.1%

1,348

(11.1%)

 Principal Shareholders

12,172

Number of Shares Held(Thousand Shares)Name Refrigerated Warehousing Business, Industry Comparison Month-End Inventory Accumulation by Product (Excluding intersegment transactions)(Thousand tons)

2022
Fishery
products

Livestockproducts

Agricultural
products

Yokorei (Share)

6,106

Yokorei (Share)

1,219Japan Association of Refrigerated
Warehouses 12 cities

8,885

Yokorei (Share)
Japan Association of Refrigerated
Warehouses 12 cities

Frozen foods, Yokorei (Share)
other

Total

863

Japan Association of Refrigerated
Warehouses 12 cities

958(14.1%)

Japan Association of Refrigerated
Warehouses 12 cities

5,498

Yokorei (Share)

3,734Japan Association of Refrigerated
Warehouses 12 cities

23,5564.4%(0.5ppt)

0.3%(13.7%)(31.2%)

0.1%(-0.1ppt)-0.1%(1.6ppt)

1,218

959

10.3%

(0.4ppt)629(13.8%)(0.3ppt)

1.0%

3,633

(-0.2ppt)(29.6%)-8.1%(0.1ppt)-6.2%(-1.1ppt)

23,323

1,325(13.7%)

1,022(30.7%)

3,329

2.4%

(0.5ppt)-1.7%(15.6%)(13.8%)

9,684

-2.6%
(12.2%)

896
6,508

-8.7%

5,153

2.8%

-7.7%
-6.4%

3,242

6.7%
(15.9%)(13.6%)

8,838

-5.4%
(12.6%)

827

2020

YoY

6,090

0.5%

3,067
694

2021

YoY

614

(11.7%)

5,243

-5.8%

(0.0ppt)

-5.8%

3,857

(15.6%)The Master Trust Bank of Japan, Ltd. (Trust Account)

6,092

10.30

Matsuoka Co., Ltd.

2,569

4.34

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

Custody Bank of Japan, Ltd. (Trust Account)

1,468

2.48

Hacchoko Co., Ltd.

1,411

2.38

Yokorei Employee Shareholding Association

1,249

2.11

DFA INTL SMALL CAP VALUE PORTFOLIO

1,194

2.01

SAKATA SEED CORPORATION

1,022

1.72

Note: The shareholding ratio has been calculated excluding treasury stock (143,936 shares).

24,764

 Breakdown of Shareholders by Type

 Food Sales Business, Sales Volume and Unit Price by Major Product (Consolidated Basis) Breakdown of Shareholders by Number of

Shareholders Held (Thousand shares)(Tons)

2022

36

2021

YoY

Ratio of Shareholding

2020

YoY

■ Financial institutions:26

 Pork

Sales Volume (Unit Price (Yen))

18,809(453)-6,592(-16)

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

30,930(492)

C hicken

Sales Volume (Unit Price (Yen))

10,034(393)-1,583(116)

11,617

(277)

358

(-10)

11,259(287)

 BeefSales Volume (Unit Price (Yen))

2,988

(871)

331

(-26)

2,657

(897)

-831

(-53)

3,488

(950)

■ Treasury stocks:143

0.2%■ Treasury stocks:1

0.01%

0.2%

■ Financial instruments
and exchange dealers:19

27.8%■ Other domestic corporations:171■ Individuals and others:

1.1% Salmon
and trout

Sales Volume (Unit Price (Yen))

8,045

(953)

980

(255)

7,065

(698)

-1,725

(-67)

8,790

(765)

 Scallop

Sales Volume (Unit Price (Yen))

7,484(1,006)

2,763

(-30)

4,721

(1,036)

1,234(-115)

3,487(1,151) Mackerel

Sales Volume (Unit Price (Yen))

44,702(190)-4,792(13)

49,494

(177)

3,339

(-5)

46,155(182)

 S hrimp

Sales Volume (Unit Price (Yen))

4,532(1,206)

293

(99)

4,239

(1,107)

-481

(147)

4,720

(960)

 CrabSales Volume (Unit Price (Yen))

823(4,349)-228(1,150)1,051(3,199)

-91

(673)

1,142

(2,526)

 S quid

Sales Volume (Unit Price (Yen))

14,087

(402)

439

(44)

13,648

(358)

4,837

(-104)

8,811

(462)

A
 tka
mackerelSales Volume (Unit Price (Yen))

7,954

(354)

-1,877

(20)

9,831

(334)

-1,130(-21)

10,961(355)

 EelSales Volume (Unit Price (Yen))

1,612(3,463)

-329

(703)

1,941

(2,760)-174(-417)

2,115(3,177)■ Individuals and others:15,301■ Financial institutions:16,493

0.1%

23,491
39.6%■ Foreign companies
and foreigners：164

2.0%

1.0%

97.6%

■ Financial instruments
and exchange dealers:1,187■ Foreign companies and foreigners:■ Other domestic corporations:

10,930
18.5%

7,020
11.9%

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

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

2022

2021

2020

2019

2018

2017

59,266,684

59,266,684

59,266,684

59,266,684

59,266,684

53,436,216

52,21352,56954,11061,341

54,58456,642

YOKOREI Integrated Report 2022

37

Corporate Data (As of September 30, 2022)
 Basic Data
Trade Name

Yokorei 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/en/

EstablishedMay 13, 1948

Capital14,303.42 million yen

Number of
Employees

1,639 (consolidated); 1,326 (non-consolidated)

Business
Activities

1. Refrigerated and ordinary warehousing

6. Ice-making business2. Processing, sale, and import/export of marine products

7. Freight forwarding and trucking

3. P rocessing, sale, and import/export of agricultural andlivestock products

8. Real estate leasing

4. Customs clearance

10. Other related businesses (business purpose in the Articles ofIncorporation)

5. Aquaculture
Contact

Public Relations and IR Department TEL. 045-210-0011

9. Restaurant and coffee shop management; food and drink sales

Fax 045-210-0018

 Website Information

https://www.yokorei.co.jp/en/ir
Investor Relations
Management Policy

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 Group Companies Overview
Company Name

Thai Yokorei Co., Ltd.

Main BusinessFrozen and cold storage of food products, etc.

Address

18th Fl., Sindhorn Tower3, 130-132 Wireless Road, Lumpini, Pathumwan, Bangkok 10330 Thailand
TEL: +66(0)2-651-4515

Company NameBest Cold Chain Co., Ltd.

Main Business

Low temperature transportation of food products, etc.

Address

131 Moo1 Phahonyothin Road, Km 74, Sanubtueb, Wang Noi, Phra Nakhon Si Ayuttaya 13170 Thailand
TEL: +66(0)3-572-1031

Company Name

Yokorei (Thailand) Co., Ltd.

Main Business

Sale and import/export of food products

Address

18th Fl., Sindhorn Tower 3, 130 - 132 Wireless Road, Lumpini, Pathumwan, Bangkok, 10330 Thailand
TEL: +66(0)2-651-4518