YAMAZEN
2022 Integrated Report

YAMAZEN CORPORATION
2-3-16 Itachibori, Nishi-ku, Osaka

This Integrated Report contains forward-looking statements
regarding financial conditions and business performance.
Description of the forward-looking statements and theirunderlying assumptions involve uncertainties and certain risks
due to factors including changes in the business environment.

YAMAZEN
2022 Integrated Report
April 1, 2021 - March 31, 2022

Purpose

Pioneering a new future,with you all
Nobody knows what the future will hold 100
years from now–that’s why Yamazen willkeep finding the optimal solutions.
By connecting with the latest business“frontline” information and further refining our“problem-solving skills” and “people skills”,
we will continue solving new challenges tosurpass all barriers.
Not only everyone involved with Yamazen,
but also everyone who lives beyond, we have
and will continue pioneering a new future,with you all.

Corporate Philosophy
Management of Fostering Personnel
To make active use of personnel, andto foster independent and virtuous
employees

Management of Breaking ThroughTo challenge, innovate and create

Together with our stakeholders around the world,
the entire Yamazen Group is Pioneering a new

Management of Trust

To respond to the needs andexpectations of society and contributeto themfutureCover: About “Pioneer”

The Group currently operates under a four-region system that includes Japan, North

This comes from one of Takeo
Yamamoto’s life lessons: “Destiny is

America, Europe, and Asia. We have 65 offices in major industrial cities in 15 countries

something that you pioneer yourself.”

and regions overseas, where we provide services with a community-based sales

This spirit of pioneering—along with thecapacity to think and act—are legacies ofsystem and advanced engineering capabilities.
The Group is committed to pioneering a new future with stakeholders around the world

Takeo Yamamoto that are part of the
YAMAZEN
2022 Integrated Report
April 1, 2021 - March 31, 2022

by constantly creating new value through our products and ideas.
01 INTEGRATED REPORT 2022

company’s essence. They have been
passed on to our employees, and form thefoundation of Yamazen’s growth today.

INTEGRATED REPORT 2022

02

CONTENTS
A Value Creation
Story

Growth Strategy

Our History: Innovation and Creativity

05

Our Business: Business Developing
Through People Challenging Themselves, Thinking, and Acting

07

Issue Awareness and the Process of Value Creation

09

Future World Outlook, Materiality, Vision 2030

11Interview with CEO

13

Interview with CFO and President of Corporate Administration H.Q.

19

Green Strategy

23

Accelerating ESG and carbon neutral initiatives

Human Resource and Organizational Development Strategies

Corporate
Governance

Data Section

27

Assembling and training a diverse, Independent and virtuous employees whochallenges themselves and thinks while taking action

IT (DX) Strategies

30

Aiming to maximize customer value by promoting DX strategies that leverage
digital technology

Logistics Strategy

33

Management Team51

Corporate Governance System

53

Interview with Outside Director

58

Most Recent 11 Years of Financial Data

59

Non-financial Highlights

61

Consolidated Financial Statements

63

Organization / List of Overseas Offices

66

Domestic Group Companies

67

Company Overview / Investor Information

68

Aiming to establish the next generation logistics system: Creation of new value
in “logistics”

Business
Portfolio

At a Glance

35

Interview with President of General Sales H.Q.

37

Machine Tools Division H.Q.

39

We are issuing this Integrated Report starting with the FY2022 in order to further deepen our

Our website contains a variety of information

stakeholders’ understanding of the corporate value and medium- to long-term growth potential of

about the Yamazen Group, including

Industrial Tools & Equipment Division H.Q.

41

the Yamazen Group. In compiling the report, we referred to the Value Reporting Foundation (VRF)’ s“Sustainability” and “Investor Relations.”“International Integrated Reporting Framework” and “Guidance for Collaborative Value Creation.”

Please refer to it in conjunction with this report.

Overseas Production Equipment Business

43

Building Materials Division H.Q.

45

Home Products Division H.Q.

47

CROSSING as a Sales Strategy

49

Editorial policy

Cautionary note concerning forward-looking statements
This Integrated Report contains forward-looking statements regarding the Company’s plans, forecasts,

https://www.yamazen.co.jp/english/

strategies, and performance. They contain judgments made based on the information currently
available. Please be aware that actual performance may differ substantially from these projections due
to a variety of risks and uncertainties. Factors that may affect future prospects include, but are notlimited to, the economic environment in which the Company’s business operates, competitive pressure,

IR

CSR

related laws and regulations, changes regarding product development, and fluctuating exchange rates.
Note: The content of this Integrated Report is based on the results of FY2021 (April 1, 2021 to March 31, 2022). However, some
information from after April 2022 is also included. Factors that may affect future prospects include, but are not limited to, theeconomic environment in which the Company’s business operates, competitive pressure, related laws and regulations, changes
regarding product development, and fluctuating exchange rates.

03 INTEGRATED REPORT 2022

INTEGRATED REPORT 2022

04

A Value Creation Story

Our History

Yamazen’s 75-year history has been one of innovation and creativity, always striving to generate new products and open new markets.
Since Takeo Yamamoto founded Yamazen Tool Manufacturing & Sales Co., Ltd. in May 1947, the Company has expanded its areas ofbusiness to include cutting tools, machine tools, housing equipment and materials, and home products. Moving forward, we will continue
to work with innovation and creativity as a business that responds swiftly to changes in the world while aiming for sustainable growth.

Innovation and Creativity

Pioneer

1955 1961

1962 1966

1987 1993

1994 1996

Changing Management

Corporate Renewal

Based on the business philosophy of “You only havea business when you respond to the needs ofcustomers and make them happy,” the Company
actively took steps to expand the range of products
it offered. The Tokyo Branch was opened in 1957,
followed by branches in Nagoya, Fukuoka, andSapporo. At once, we put a national system in place.

During our 15th year, we became the firstcompany in the cutting tool distribution industry
to be listed on the stock exchange in Japan. We
continued to pursue a multi-location policy,
opening sales bases not only in major regions
throughout Japan, but also overseas, with
branches in Chicago, London, and Bangkok.

Moving towards a new stage in the business, in 1988
we launched “ZEUS PLAN,” our long-term
management plan. In 1991, we updated the corporate
logo with the introduction of visual identity (VI) andcompleted the construction of a new headquarters
building in Osaka. However, this period was also
affected by the collapse of Japan’s bubble economy.

1947 1954
Company Established / Building the Foundation

Toward Listing

After World WarⅡ, when Osaka was far from
revitalized and just beginning to recover, rather thancutting tools, what it needed most was hand tools likehammers and shovels. Yamazen Tool Manufacturing& Sales Co., Ltd. was established and made its
full-scale start in May 1947 with the urgent aim of
selling goods required for the restoration of daily life.

Growth and Development

1997 2005
Increasing Social Responsibility

Through reforms such as restructuring the Production
Equipment Division and the establishment of the Overseas
General Sales H.Q., the Company achieved profitability in
FY1995 for the first time in three years. We established a new“Management Philosophy” and the “Yamazen Employee Codeof Conduct,” with the entire company taking a step forward
and undertaking the challenge of creating a corporate renewal
period that would lead the Company into the next generation.

The Industrial Systems Administrative Division(now the Industrial Tools & Equipment Division
H.Q.) established an “Environmental Team” andentered the environmental business in earnest.
In 2002, the Company obtained ISO14001
certification for all of its offices in Japan. With
the aim of fulfilling our corporate social
responsibilities and boosting corporate value,
we established our “Environmental Policy” andthe “Yamazen Group Corporate Activity
Charter.” These form the foundation of our ESG● When Yamazen Tool Manufacturing& Sales Co., Ltd. was established● Main products when thecompany was founded● The new Nagoya Branch building ● The Company’s booth at the 3rdTokyo International Trade Fair

● When the Chicago Office was
openedactivities.

● PR bus advertising housing
equipment● Singapore Office● Completion of new headquarters
building in Osaka

1967 1974

1975 1979

1980 1986

2006 2021

Development Takes Off

Hard Times and Rebuilding

Restoring Confidence

Era of Innovation

The overseas network expands along with the
double-digit growth of existing divisions suchas machine tools, industrial equipment, tools,
and residential equipment. We also entered
new business markets such as real estate.

Just as we began aggressively investing in real estate andexpanding, the Company was faced with the biggest crisis since
its founding, with enormous liabilities due to the oil crisis. Those
were the circumstances under which the first Doterai-Ichi trade
show was held in 1975. It went on to play a major role in the
Company's rebuilding. Along with this, the Company's
three-as-one business model of business partners, manufacturers,
and Yamazen was promoted and caught on nationwide.

We worked to downsize over-extended areas andreturn to our core business, with its focus on
production equipment and consumer goods.
Confidence in the business was gradually restoredwith the generous assistance of major financial● New Management
Philosophy handbook● Shanghai Office2022 -We began to rebuild a sound financial base during thisperiod, divesting of such negative past legacies as idle
real estate and unprofitable businesses from theexcessive business diversification during the higheconomic growth period and the bubble economy
period. We also accelerated our global expansion in
support of transferring domestic manufacturing overseas.

The capital investment appetite

Towards a Sustainable Society

cooled significantly in the wake of the
global COVID-19 pandemic

We defined our purpose as “Pioneering a new
future, with you all” and created CROSSING
YAMAZEN 2024, a new medium-term
management plan, to help realize it.

institutions and the understanding and support of
suppliers and customers. Sales growth of our core434,744 million yen
11,234 million yen
Net sales

501,872 million yen

products through the nationwide expansion of(Millions of yen)

Doterai-Ichi trade shows contributed greatly to our

500,000

rebound, and in 1986 dividend payments were
● Tokyo/Osaka Stock ExchangeFirst Section promotion party

Both sales and profit fell significantly
due to the Global Financial Crisis that
occurred the previous year

made for the first time in 11 years.
● Expanded Osaka Corporate H.Q.
● First product● Second Osaka Doterai-Ichi trade showcatalogue forhome appliances“State of emergency”
issued amid the prolonged
recession following the collapseof Japan’s bubble economy

400,000
Operating proﬁt

17,133 million yen

242,791 million yen(4,698) million yen(Millions of yen)

15,000241,410 million yen
836 million yen● Start of the “Green Ball Project”

Net sales (right axis)
Operating profit (left axis)

300,000“State of emergency”

10,000issued amid the recession
triggered by the oil crisis

200,000

91,249 million yen(1,521) million yen

5,000

100,000
0

Consolidated(5,000)Fiscal year

1947

※

1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995

Development Takes Off

Hard Times and Rebuilding

Restoring Confidence

Changing Management

Corporate Renewal※ The closing date of our fiscal year changed from September

20 to March 31 in FY1989. As such, there are two sets ofyear-end figures for that fiscal year.

05(Left)INTEGRATED REPORT 2022

September 21, 1988 to September 20, 1989

(Right) September 21, 1989 to March 31, 1990

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Increasing Social Responsibility
BT21 Plan

Medium-Term
Management Plan 2003

Vision
2002

2021

0

Era of Innovation
Change Value
100

GVP15

VISTA-3S

Amazing Act
2015

ONEXT YAMAZEN
2018

CROSSING YAMAZEN
2021

Transitional Medium-Term Management Plan
INTEGRATED REPORT 2022

06

A Value Creation Story

Our BusinessBusiness Developing Through People
Challenging Themselves, Thinking, and Acting

Pioneer

Production Equipment Business● Sales composition by division

Consumer Goods

20.9%
104,866 million yen

Production Equipment

Home Products
Division H.Q.

28.5%

Machine Tools
Division H.Q.

62,169 million yen
Other

1.3%

Building
Materials
Division H.Q.

MachineTools
Business

Overseas Production
Equipment Business

501,872

18.4%

million yen

By using machine tools in production and processing systems,

Major products

we respond to customer needs that change with the times, andlathes, CNC grinding machines, CNC milling

Industrial
Tools &
Equipment
Businessmachines, EDMs, conventional machine tools, 3D

achieve enhancements in productivity, pursue reductions inmachines (presses, shirring machines, bending

36.9%
185,017 million yen● Yamazen Group’s global network

machines, die-casting machines, CAD/CAM,

Japan and overseas, that require a high degree of specialization.

equipment, machine tools accessories)

We offer a broad lineup that includes consumables and incidental equipment, so as tobe able to respond to the highly diversified needs of production sites. In addition, we
provide total support for each stage, from the planning and operation of production
sites, and the creation of environments, including production efficiency improvements
involving automation and labor-saving initiatives, as well as improving the production

Overseas
Production
Equipment
Businessmachines, laser cutting machines), injection molding
machine tool accessories (industrial robots,

relation to which we offer proposals as a producer of comprehensive systems.

Industrial Tools & Equipment
Division H.Q.

printers), metal forming and plate processing

information to provide support for manufacturing sites, both inenvironment and providing cutting-edge technologies, to BCP countermeasures, in

6,661 million yen

Include machine tools (machining centers, CNC

promote high added-value, proposal-based marketing. We
costs, and combine peripheral equipment, services and

143,157 million yen

FY2021
Consolidated Net Sales

12.4%

Yamazen is a unique specialty trading company that has proved itself both supporting worldwide manufacturing with “Production Equipment” that includes machine
tools, cutting tools, and industrial equipment, and contributing to the richness of people’s lives with “Consumer Goods” including housing equipment and materials
and home products. Combining the knowledge and expertise of our various divisions—including Machine Tools Division H.Q., Industrial Tools & Equipment Division
H.Q., Building Materials Division H.Q., and Home Products Division H.Q.—we work to create new value that will drive the development of industrial society.

We support reciprocal business between Japan and the rest of the world.

measuring equipment, automation peripheral

Major products
Include material handling (distribution equipment),mechatronics (mechatronics equipment, robots,
automation software, labor-saving equipment), aids
for environmental improvement, cutting tools,
auxiliary tools, work tools, electric tools, measuring
equipment, fluid devices (compressors / painting
equipment, pumps, blast equipment, fluid couplings,
heating / cooling equipment, stirrers / mixers),
industrial equipment (welding / generators, metal
forming / sheet metal / steel processing machines,
washing machines, safety / hygiene / security), steel
frame processing machines, facility air conditioning
equipment (air conditioning / HVAC equipment, clean
room equipment), BCP-related services

Major productsThis includes assistance in overseas relocation of Japanese andSales and overseas application and technicalinternational companies, international procurement of products, parts and

CNC milling machines, EDMs, 3D printers, injection

services regarding machining centers, CNC lathes,materials, trilateral transactions, total planning of production equipment

molding machines, die-casting machines, machineand systems for factories, and consulting regarding international

tools, measuring instruments, measuringtransactions. With many years of experience and expertise in overseas

mechatronics equipment, and aids fortool accessories, NC tooling, auxiliary tools, cutting
equipment, work tools, material handling,

markets, we aid the development of local communities and industries.

environmental improvement

In this business we propose new products and systems that assist in the

Major products

Consumer Goods Business
Europe2 countries
2 businesslocationsAsia
11 countries
and regions
46 businesslocationsNorth America
1 country
15 businesslocationsJapan
53 businesslocations

Building
Materials
Business

15

16

local companies
overseas

65

overseas businesslocations53

domestic
business
locations

118

total
business
locationsenvironment, and that take into account such issues as the environment,
zero-carbon societies, health, and barrier-free living. We have focused on
Net-Zero Energy Houses (ZEH) and the house remodeling business, as

Central andSouth America
1 country
2 businesslocationswell as on the non-housing market in recent years, providing optimal
solutions to customers in our role as a high-functionality trading company.

Home
Products
Businesscountries and regions
overseas

creation of housing and societies that are kind to both people and the

We combine the trading company functions of retail

Sales and related work and services for kitchenequipment, cooking equipment, bathroom
equipment, washbasin equipment, water boiling
equipment, sanitary equipment, air-conditioning andventilation equipment, solar power generation,
storage batteries, floor heating, solar thermal water
heating equipment, stored-heat heating systems,
plumbing equipment & materials, interiorarchitectural materials, exterior architectural
materials, nursing care equipment, interiors, window
frames, exteriors, foundations, ancillary construction
materials, construction materials, construction
equipment, structural building frames, cutting
tool-related, office equipment, home equipment, IoT
equipment, and BCP-related equipment

Major products

distribution and logistics with the manufacturer functions ofPlanning, development and sales of products

planning and developing original products, handling a wide

equipment / cooking / audio-visual / lighting),

lineup of useful products that are familiar to us from daily life.

daily necessities, exteriors, gardening /including home appliances (fans / heating
indoor furniture, outdoor / leisure goods, kitchen /These range from electrical appliances, interior and exterior

agriculture, health equipment, hygiene /products and leisure products, to disaster prevention goods.

supplies for disaster preparedness

healthcare, tools, car / motorcycle supplies, andAs of the end of June 2022

07 INTEGRATED REPORT 2022

INTEGRATED REPORT 2022

08

A Value Creation Story

Issue Awareness and the Process of Value Creation

Value Creation Process

PioneerManagement
resources

For sustainable growth, we allocate management resources as needed to each business area, improving socialand economic value while addressing materiality and raising capital. The result is a “Value Creation Cycle,” withreinvesting as a management resource. Yamazen seeks to maximize our corporate value by steady profit growththrough business expansion, providing high value-added products and services and reducing capital costs.

Pioneering business activities
Natural capital

Materiality

Natural capitalGreen business
Renewable energy

Production Equipment

Business expertise
Product development capacity
Brand power

Independent and virtuous employees
Diversity
Challenging, and thinking while taking action

Manufacturing capital･ Harmony with the natural environment･ Improved quality of life
･ Improved job satisfaction･ Improved supply chain productivity･ Revitalized local communities

Worldwide manufacturingIntellectual capital

Human capitalSocial value

Page 11

Industrial
Machine Tools Tools & Equipment
Division H.Q. Division H.Q.
Page 39

Futureworld
outlookOverseas Production
Equipment Business

Page 41

Valuecreation

Page 43

Building Materials
Division H.Q.

Page 11(Network capital)

Domestic and overseas bases
Engineering capabilities
Domestic and overseas logistics bases

Page 45

Social capitalIntellectual capital

Vision 2030

Home Products
Division H.Q.
Page 47

Human capital

Page 12

Economic value
Net sales
600 billion yen
Operating profit 21 billion yen

Worldwide enriched lives

Sales partners, suppliers,
contract manufacturers
Global network

Consumer Goods

Financial capital

Reduced cost of capital

ROE 10.0%

Robust financial foundation
Disciplined financial management

Manufacturing capital(Network capital)

Basic operating cash flow
18 billion yen* Figures are from the published forecast
for FY2024

Social capital

Environment Page 23

Society

Page 62

Governance Page 51

Sustainability
Developing human resources Page 27

Financial capitalManagement resource reinvestment
09 INTEGRATED REPORT 2022

INTEGRATED REPORT 2022

10

A Value Creation Story

Future World Outlook, Materiality, Vision 2030

FutureWorld
Outlook,
Pioneer
Materiality

To better understand customers’ needs, we imagined their worldview in the future (2030) and identified
various issues that must be addressed accordingly.
Addressing them will be about delivering value to our customers—the Company’s materiality.
Working on the following five materialities will allow us to realize the Company’s vision for 2030.

Yamazen and the 2030 World Outlook

01

02

03

04

05

Growing
decarbonization
demandAdvance ofdigitizationand smarttechnologies

Changes in
consumer
behavior

Changes in thedomestic andworld economy

Expandinggovernancerequirements

Identificationof keyissuesIdentificationof keyissuesIdentificationof keyissuesIdentificationof keyissuesIdentificationof keyissuesWorldwide
manufacturing

We aim to realize our vision
through addressing materialities

Vision 2030

Leading worldwide manufacturing and enriched lives
Expandinggreen business

Digitization to maximize
customer value

Realization of sustainableprocurement and supply●Support the reduction ofgreenhouse gas emissions
throughout the supply
chain●Reduce the Company’s
greenhouse gas emissions●Recycle resources andreduce waste●Expand digital services andpromote data utilization to
improve customer value●Utilize data safely andsecurely●Ensure a supply chain free of humanrights, labor and environmental issues●Establish a stable supply system withattention to economic security and othergeopolitical risks●Respond to business continuity risks inthe supply chain as relates to disasters,
accidents, pandemics, problems
regarding products and information
technology, etc.
●Implement quality control of products andservices and disclose related information

Realization of arewarding workplace●Maintain a work environment that encourages Independent andvirtuous employees and cultivates Yamazen-style Well-Being●Develop, educate, and build the capacity of human resources●Promote Diversity & Inclusion

Materiality (Key Issues)
11 INTEGRATED REPORT 2022

Establishment ofa transparent
governance system●Improve disclosure offinancial and non-financial
information and strengthenmarket dialogue●Strengthen system ofcorporate governance●Formulate risk
management and strategy
pertaining to laws,
regulations and standards

Yamazen has continually been a contributor to society,satisfying numerous user expectations in the two domains of
Production Equipment that support manufacturing,and Consumer Goods that enrich everyday living.
Moving forward, we will create new value by exceeding andintegrating these two boundaries to lead worldwide
manufacturing and enriched lives.

Management of Fostering Personnel
To make active use of personnel, and tofoster independent and virtuous employees

Worldwide
enriched lives

INTEGRATED REPORT 2022

12

Y A M A Z E NInterview withCEO

We will work to strengthen our“comprehensive strength”
through “CROSSING” to realize
our purpose of “Pioneering a
new future, with you all.”
The new medium-term management plan “CROSSING

contribute to society. I would like to put this into practice through a new way offor sound growth and development. This is “Management of Fostering

management. Furthermore, through the establishment of the vision, we would

Personnel,” “Management of Breaking Through” and “Management of Trust.”

like all employees to share the same direction, be in agreement and combine

Our generation has followed in the footsteps of the founder while engaging intheir strengths.

these items as our own approach, but considering the significant changes in

The “pioneering” in our new purpose of “Pioneering a new future, with you all”

the business environment surrounding the next generation, such as the large

is Yamazen’s management philosophy, and could be considered to be ouramount of information and the diversification of values, I have strongly felt theDNA. “With you all” is an important phrase for our company. It indicates thatneed for a unifying force for systematically maintaining the DNA that has

employees, shareholders, partners handling the supply chains in Yamazen’s

existed since the Company was founded.

businesses and various other stakeholders are “together,” and “together” also

In particular, we have strived to develop and utilize “independent and virtuous

includes the people beyond those with direct relationships inside and outside

employees” who think for themselves, take initiative in their work and take on

the Company. By verbalizing our purpose and vision, and continuing dialogue

challenges to create, and we strongly feel that utilizing people whowith a wide range of stakeholders, we aim to spread our intention to “move in

independently gain skills and fully drawing out the abilities of such independent

YAMAZEN 2024” (hereinafter, “New Medium-Termthe same direction and create new value together.”and virtuous employees is a management capability that is newly required, andManagement Plan”) started in FY2022 for the realization ofSince Yamazen was founded, its basic management approach has been to aimthat it is essential to have management that can increase the unifying force.

the purpose and vision newly established in April 2022.
We asked President & CEO Yuji NAGAO about the strategic
direction of Yamazen aimed at stable and sustainablegrowth, including “fostering personnel” which will serve as
the source of corporate value that is the foundation for this.

Representative Director,
President & CEOQ
A

Please provide a review of business activities and performance in FY2021.

The Production Equipment Business performed well due to the recovery in companies’ willingness to make capital
investments in the manufacturing industry. In the Consumer Goods Business, the Building Materials Business andthe Home Products Business also had strong performance, with consolidated net sales exceeding ¥500.0 billion
for the first time in three years, and net sales and profit both reached the second highest levels on record.

Q
A

Please tell us about the background for establishing the new purpose and vision,and the thoughts that went into these.

In order to realize sustainable growth as a specialized trading company handling thedifferent business domains of Production Equipment and Consumer Goods, we
believe that verbalization is required to reaffirm the value of “pioneering a new future,with you all.” We had a strong desire to bring together the strengths not only within theGroup but also including those of our partners who handle the supply chains with us.

The purpose and vision were established in response to an uncertain andsuch as the digital and green transition.

unpredictable era, and also the strong sense of danger that there would be no

To transform this sense of danger into an opportunity for the next generation,business in the future simply by extending the current business as theas a specialized trading company focused on two business domains, we needenvironment surrounding the Company has been undergoing dramatic changes

to re-examine our presence in society and how we can utilize our strengths to

13 INTEGRATED REPORT 2022

The Production Equipment Business performed well due to therecovery in companies’ willingness to make capital investments
resulting from the revitalization of the manufacturing industry associatedwith the resumption of economic activity inside and outside Japan due
to increased COVID-19 vaccinations worldwide and the relaxation of
restrictions on people’s movement.
In the Machine Tools Business in Japan, there was a marked recovery
due to growth in orders for machine tools for processing parts for the
automotive industry, semiconductor manufacturing equipment andconstruction machinery. In the Industrial Tools & Equipment Business inJapan, sales grew for cutting tools for processing semiconductormaterials and components for industrial robots, and sales were alsostrong for environmental improvement devices, material handlingequipment and automation equipment for production and logistics
facilities, etc.
In the Overseas Production Equipment Business, there was capital
investment, mainly by customers in the automotive, semiconductor andmachinery manufacturing industries and by companies providing
electronics manufacturing services (EMS), and the four overseas

regional headquarters all had strong sales of machine tools, cutting
tools and accessories, mechatronics and other products.
In the Consumer Goods Business, the Building Materials Business saw
strong sales of equipment for air conditioning and water and seweragesystems backed by replacement of housing equipment and expanding
renovation demand, and in the non-residential sector, orders forcommercial air-conditioning equipment and new energy equipment,such as for solar power and storage batteries, have increased. In the
Home Products Business, although stay-at-home demand ran its
course, sales through e-commerce sites, television shopping channels,
etc. were robust, and sales of private-brand products also grew.
In terms of the general trend, stay-at-home demand during the
COVID-19 pandemic was apparent in FY2020, and the Home Products
Business achieved net sales of over ¥100.0 billion for two consecutive
fiscal years, providing stable support of business performance. This isconsidered to be the result of our product development capabilities,
which are based on a consumer perspective developed over a long
period, being well regarded in general, and we would like to continue tofurther strengthen this grounded product development in future.
INTEGRATED REPORT 2022

14

Y A M A Z E NInterview withCEO

Furthermore, the employees in our expansive network of locations in Japan and abroad have

As a result, although we fell slightly short of record performance, we reached consolidated net

sales activities based on information obtained from sales activities while using IT

The form the Yamazen Group should take as a business that responds to change

worked hard based on the belief of “protecting the business and working for the customer.” In

sales of over ¥500.0 billion for the first time in three years, and both net sales and profit were

to communicate organized information more widely and more efficiently.

involves being committed to being customer-oriented and exhibiting

particular, there were many locations overseas where it was difficult to work at the office dueat the second highest levels on record. Although it was a difficult business environment, I

I believe “live information” required for conducting business can only be obtained

comprehensive strength to continue evolving as an organization providing

to lockdowns, and although other companies brought personnel back to Japan, Yamazen

again felt the ability of our business sites to transform risks into opportunities.

from the workplace. For our business as a specialized trading company, the mostsolutions to the issues facing our customers. In that respect, the merging of theimportant thing is to actually visit business locations in the field, grasp the true

manpower and IT that are Yamazen’s strengths serves as the source of

information and unique, recent information, share the information, and responddifferentiation of the Yamazen Group, and this is perceived to be an initiative thatsensitively to changes in the markets.

should be strengthened more quickly going forward.

staff independently devoted themselves to dealing with customers in all overseas locations.
Consolidated statements of income(Millions of yen)

Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

Net sales by businessAnnounced Target Change fromYoY Change(Revised onTargetFebruary 9, 2022)(Millions of yen, %)Fiscal year ended
March 31, 2021

Fiscal year ended
March 31, 2022

YoY Change

Net sales

434,744

501,872–

500,000

0.4%

Machine Tools Division H.Q.

103,629

143,157–

Gross profit

62,67272,738–––161,430

185,017–[Gross profit margin][14.4%][14.5%]–––

Industrial Tools & Equipment
Division H.Q.

Selling, general andadministrative expenses

51,43855,604–––

Production Equipment
Business Total

265,059

328,174–

Building Materials
Division H.Q.

Operating profit

11,234

17,133–16,000

7.1%

58,741

62,169–[Operating profit margin][2.6%][3.4%]–[3.2%]–

Home Products Division H.Q.

103,379

104,866–

Non-operating
profit or loss

(24)

(39)

–

–

–

Consumer Goods
Business Total

162,121167,036–

Ordinary profit

11,20917,093–16,000

6.8%

Other Divisions

7,563

6,661

–

84

754

–

–

Total

434,744

501,872–

7,572

12,023–

11,000Extraordinary
profit or loss
Profit attributableto owners of parent

Q
A

–
9.3%

* “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020) has been applied
from the beginning of FY2021, and the figures for FY2021 are figures after applying the accounting standard.
For this reason, the year-on-year change is not shown.

Direction and concept of the New Medium-term Management Plan

Seeking new value created by CROSSING values.

Overview of PURPOSE / VISION / STRATEGY / TACTICSPURPOSE

Pioneering a new future, with you all

What are your thoughts on initiatives to be strengthened and accelerated by the New
Medium-Term Management Plan, and on the growth of the next generation?

VISION“CROSSING” is a management strategy that uncovers the overall value created while division

Leading worldwide manufacturing and enriched lives

headquarters deepen their mutual understanding, cooperate and inspire each other. In addition tobreaking away from the fixed ideas of one’s own department, we aim to exhibit comprehensive strength

Strategies for realizing our corporate vision

with a view to company-wide and overall optimization, in addition to being thoroughly customer-

STRATEGY

oriented as we strive to combine the manpower and digital technology that are Yamazen’s strengths.

Customer closeness strategy

on the three business strategies of “close customer relationship strategy,”

people, products, services, information, etc. across the boundaries of production“transformation strategy” and “digital integration strategy,” and is made up of aequipment and consumer goods to thoroughly engage our customers in order to“talent management strategy” as a management foundation strategy for

produce a variety of innovations and exhibit our comprehensive strength. It

supporting these.

means using the know-how and experience matching the characteristics ofThe basis of this company-wide strategy is the belief that it is good to breakproducts and markets in each division headquarters, as well as their respective

away from traditional fixed ideas and transform ourselves to provide new value tocustomers and users, as management resources shared across the entire

customers and users, and at the same time, aspire to contribute to society bycompany to enhance the non-financial capital that is Yamazen’s unique strength.

growing together with business partners who are moving in the same direction.

We will understand the issues

Rather than just providing

We will strengthen customer

Although “CROSSING” was mentioned as a slogan in the previous medium-term

In FY2021, I encouraged the approach of a “new reality” in the sales field during

directly faced by customers

goods that sells products, we

contact points utilizing digitalworldwide from a customer

will provide total solutions fortechnology, provide new solutions,the issues including productconnect the “knowledge” obtained

Close customer
relationshipstrategy

Transformation
strategy

STRATEGY-based measures
Focus areas and key measures

Digital integration
strategy

management plan, the New Medium-Term Management Plan was entitled

the COVID-19 pandemic. “New reality” is a term I coined, and it refers to aperspective, and will present“CROSSING YAMAZEN 2024” to further entrench this concept to exhibit ourcomplex sales method that involves responding to customers in person andmeasures to resolve these issues,

manufacturing, engineering andthere to real human resources,

to realize a Win-Win relationship.

green business.

and create new added value.

comprehensive strength. The New Medium-Term Management Plan is centeredproducing results quickly in order to provide advanced proposals and conduct

15 INTEGRATED REPORT 2022

Digital convergence strategy

Talent management strategy“CROSSING” refers to a management strategy that involves the crossing of

TACTICS

Transformation strategy

Talent management
strategy
We will accelerate and further expand thetransformation to “human resource management”
strengthening the creation of a company enablingsustainable growth based on the human resources
philosophy of “Cultivate personnel who challengethemselves and think while taking action” andthe personnel management policy of “Employees
challenging themselves. Thinking while taking action.”

INTEGRATED REPORT 2022

16

Y A M A Z E NInterview with

CEO

Q
A

Based on the New Medium-Term Management Plan, what are the assumptions about the businessenvironment and the key points of the financial results forecast for FY2022?

While there are some causes for concern such as depreciation of core systems and rising logistics
and purchasing costs, we will execute specific tactics aimed at the realization of the figures in theplan in accordance with our business strategy. Furthermore, with regard to fostering personnel,

Q
A

Please provide a message for stakeholders.

We aim to increase customer value by concentrating on the customer’s perspective and the market’s
perspective and focusing on our role as a “useful company.” To realize this, we will embrace thechallenge of creating new value with upstream and downstream stakeholders in the distribution

which is the source of corporate value, we aim to produce personnel who take on challenges

channels by fully utilizing our raison d’être as a trading company. Furthermore, we will use thewithout fear of failure, and we will work on reforming our personnel system to that end.

publication of our first integrated report as an opportunity to strengthen dialogue with capital markets.

We have set net sales of ¥530.0 billion, operating profit of ¥16.0 billion, and profit

personnel who take on challenges without fear of failure. It is my belief that the Company

This marks the first time the Yamazen Group has published an integrated

such as coordination with upstream and downstream markets, theattributable to owners of parent of ¥11.0 billion in FY2022 as quantitative targets in thecannot grow without the growth of individual employees, and we will actively implement

report. The process of establishing our purpose and vision ahead of thisdevelopment of personnel who support the creation of new businesses,

New Medium-Term Management Plan “CROSSING YAMAZEN 2024.” In FY2022, wethe HR system reforms, and improve skill training and knowledge training necessary for

was an opportunity for us to re-examine what our potential is as we aim toand the direction of sustainable growth.

will execute specific tactics aimed at the realization of the figures in the plan inachieving this.

fulfill our raison d’être for society and enhance corporate value aimed at

A strong point of the Group is its comprehensive strength of flexibly

accordance with our business strategy. As the assumptions for this, we have considered

In addition, as I mentioned earlier, it is necessary to maintain Yamazen’s DNA, and tosustainable growth.

providing the value desired by customers by concentrating on the

depreciation of core systems, which is expected to have a significant impact, risingsystematically develop management personnel for creating the unifying force to fully

During that process, we realized how coordination aiming in the same

customer’s perspective and the market’s perspective, and thereby

logistics costs, purchasing prices and personnel expenses, and rising operatingdraw out the abilities of independent and virtuous employees. In FY2022, with me

direction as the stakeholders who handle the supply chains with us

focusing on our role as a “useful company.” We consider this thoroughexpenses with a view to the resumption of face-to-face sales activities in this age of living

serving as the university president, we launched the Independent and Virtuous Employee

increases the breadth of our social contributions. For example, by bringing

process and results to be the source of corporate value. We willwith COVID-19.

University to develop and train the next generation of management personnel. As asystem integrators, who are handling the manufacturing processes instrengthen the new initiative of dialogue with capital markets, andFor growth investments, we plan to accelerate investments aimed at the realization ofmanagement executive, I would like to commit everything to the development andorder to automate production lines, into the Group and gathering theirembrace the challenge of creating new value with our stakeholders indigital, green and global strategies. In particular, the green strategy is expected tocreation of human resources who will be responsible for the next generation.

know-how, we are able to increase the efficiency of users’ business sites

order to realize our purpose of “pioneering a new future, with you all.”generate a considerable amount of environmental business globally as the trend ofThrough such company-wide strategies, we will provide opportunities and situations for“together.” As another example, the provision of renewable energy anddecarbonization accelerates worldwide. Yamazen newly established the Green Recovery

personnel to pioneer based on personal skills, and develop personnel who think while

the promotion of increased sales of energy-saving equipment with

Business Department in April 2021, and is accelerating initiatives related to ESG andtaking action toward self-realization. We will also strive to realize systems and foster a

upstream and downstream market partners contributes to maintaining thecarbon neutrality across all division headquarters.

culture that enables people to form their career paths and pioneer their own lives without

global environment “together.” Because we are a trading company

In addition, we will gain trust by embracing the challenge of innovation and creation,

any gender bias.

positioned midstream, I feel that we can make many proposals to resolve

meeting expectations and contributing to society. The very first step the YamazenGroup’s management takes to achieve this is fostering personnel. As this is the sourceof corporate value and leads to “strength” as non-financial capital, we will actively work

issues facing society. In this respect, the three years covered by the New
Targets announced in the New Medium-term Management Plan “CROSSING YAMAZEN 2024”

Medium-Term Management Plan are a very important period for us to
specifically provide the benefit of our comprehensive strength.

(Millions of yen)

Fiscal year ended
March 31, 2022

Fiscal year ending
March 31, 2023

Fiscal year ending
March 31, 2025
(final year of plan)

Net sales

501,872

530,000

600,000

instead of just typical employees, and this means that they think for themselves, takeOperating profit

17,13316,00021,000particular, and engage in sincere dialogue with capital markets about how

initiative in their work and take on challenges to create. We also have a philosophy of

Operating profit margin

3.4%

3.0%

3.5%

the Group can be useful for and contribute to society and the people living

Ordinary profit

17,09316,00021,000

Profit attributable toowners of parent

12,023

11,00014,000to strengthen human capital.
Yamazen has a management philosophy of having independent and virtuous employees

thinking while taking action rather than just taking action. This involves thinking forthemselves, then acting. “Employees taking on challenges and thinking while taking
action” is a vital factor in the Yamazen Group’s fostering of personnel. We must produce

17 INTEGRATED REPORT 2022

Through this first integrated report, I would like the Yamazen Group tostrengthen how we convey information on non-financial capital in

in it. In addition to providing deeper understanding of the Yamazen Groupto a wide range of stakeholders, we will strive to provide an understandingof the current conditions of the Group’s initiatives to be useful for society,

INTEGRATED REPORT 202218

Days Sales Outstanding (DSO)

Cash Conversion Cycle (CCC)

Quick ratio (%)

Working capital (Millions of yen)Days Inventory Outstanding (DIO)

Interview with CFO

0.3

Days Payable Outstanding (DPO)
0.2

110.0 days

0.0 days

15,000

140.0
135.9

(1.5)

90.0 days

We will strive to enhance
corporate value from theperspective of our
stakeholders.

(2.0) days

132.2

13,000

130.0

(2.1)
(2.9)

(2.7)

124.5

11,00070.0 days(4.0) days

121.0
118.8

9,000
(4.7)

50.0 days(5.2)(6.0) days
30.0 days(6.7)

VISTA-3S

FY2014FY2015

Amazing Act 2015

FY2016114.2

FY2012 FY2013

FY2014

110.0

104.4

10.0 days
FY2012 FY2013

115.7

109.4

5,000

(7.6)

(8.0) days
FY2011

120.0

112.8

7,000

(5.4)

128.9

FY2017 FY2018 FY2019ONEXT YAMAZEN 2018

FY2020

FY2021CROSSING YAMAZEN 2021

100.0

3,000
FY2011VISTA-3S

FY2015

Amazing Act 2015

FY2016FY2017 FY2018 FY2019ONEXT YAMAZEN 2018

FY2020

FY2021CROSSING YAMAZEN 2021

Director and Executive Officer; CFO; CIO; President of Corporate
Administration H.Q.

Masamichi YAMAZOE

Key Business Models by
Segment

manufacturers using a wholesale business model of providing building
materials and equipment primarily for individuals’ homes. Although it is abusiness that sells the products of so-called national-brand manufacturers,
our strength is timely delivery from distribution centers nationwide according● Production Equipment Businessto the schedules of construction sites. It uses an efficient business model thatIn the Japanese market, a wholesale business model through business partners

does not involve carrying inventory and requires very little working capital.

that conduct business in each region nationwide is most common. Mainly, there

The Home Products Business has had a wholesale business model since it wasconditions, has led to being trusted by our customers and business partners,

are many types of product models handled by the Industrial Tools & Equipment

launched, as well as aspects of a fabless manufacturer that outsources theand I am grateful that this has led to being supported by many shareholders.

Division Headquarters, and the lineup of popular products has been expanded

development and manufacture of private-brand products (hereinafter, “PB

During the land and real estate boom caused by the “Plan for Remodeling theSuch non-financial capital that does not appear on the balance sheets is theto enable prompt delivery to users, but a unique characteristic of Yamazen is

products”). The percentage of PB products is rising year by year, and PB products

Japanese Archipelago” in the 1970s, Yamazen conducted a full-fledged entry

source of our added value, and this has created profit and led to thethat we have comparatively little inventory due to appropriate inventory control.

now account for 60% of net sales of the business. The profit margin of the business

into areas related to construction and real estate, but faced a management crisis

accumulation of financial capital, bringing us to where we are today.

Furthermore, another strength of our company is uncovering latent andis higher than in other businesses, but it is a business characterized by high logistics

from 1975 due to the construction recession brought about by the oil shock in

Even looking at the past few years when business was expanding, the cashdifficult-to-identify customer needs, selecting products and manufacturers, andexpenses and sales promotion expenses related to e-commerce, in addition to1973. When I joined the Company in the early 1980s, “eliminate accumulated

conversion cycle (hereinafter, “CCC”) remained negative, and our analysis

providing optimal logistics. In this way, we have a business model that

requiring considerable inventory. Accordingly, there is a relatively large amount oflosses and restore dividends” was a catchphrase within the Company.

indicates that we have the ability to generate considerable positive cash with theemphasizes turnover of invested capital through the optimization of inventory.

invested capital, and cash flow is affected by seasonal factors and sales trends.

Although we withdrew from the real estate business after that, the processing ofcurrent business portfolio. In particular, the Machine Tools Business (Production

Meanwhile, in overseas markets, we conduct direct sales to users. For thesereal estate assets and non-performing loans within the Company continued, andEquipment Business), which basically operates under a business model in whichusers, we use a business model that covers an extensive range from sales to

we focused solely on pursuing profit and enhancing financial capital, including

it does not carry inventory, and the Building Materials Business (Consumer

installation and service of products from manufacturers we do business with.

thorough collection of trade receivables by the sales team during that period. The

Goods Business) contribute to maintaining a sound CCC. During several years

We are engaged in realizing a more profitable model and generating long-term

liquidation of assets was completed immediately before the global financial crisis

from FY2014 when the Machine Tools Business accounted for a relatively highcash flow by amply assigning human resources with engineering skills toin 2008. Due to the impact of the financial crisis, revenue decreased significantly

share of sales, CCC was significantly negative, but growth thereafter in the Home

increase the loyalty of users. At present, exports of products from Japanese

In addition to the COVID-19 pandemic, the impact of the increasing seriousness ofwith consolidated net sales decreasing by 25.9% year on year to ¥241.4 billion in

Products Business (Consumer Goods Business) has resulted in this being at a

manufacturers account for the majority of business, but the technical level of

the Ukraine situation and other factors has led to shortages of raw materials,

FY2009, but profit attributable to owners of parent was over ¥400 million, andlower level, albeit in the negative range. The characteristics of the key businesslocal manufacturers overseas is rising, and we would like to strengthen sales of

disruptions in logistics, etc., resulting in continued uncertainty. However, net sales

the equity ratio was 30.9%, enabling us to overcome this major financial crisis

models by segment are explained in the following section.

overseas products utilizing our network and earn steady profits.

and operating profit both reached the second highest levels on record in FY2021,

with an improved financial position.

We are working to further strengthen our financial base through a balanced

Yamazen celebrated its 75th anniversary in May 2022, and as a result of suchapproach utilizing a business model with a relatively low profit margin but without● Consumer Goods BusinessWith respect to stability of our external credit fundamentals, which we emphasize as

continuous efforts, we have been able to maintain a certain level of stability inbusiness assets, and a business model with a high profit margin but requiring

The Building Materials Business and the Home Products Business have thea trading company, we have maintained our target issuer credit rating of A (A- fromterms of finance and cash flow in recent years. Employees working as one toselling expenses, and through launching new business models such as fee-same roots, but their business structures are completely different. The

R&I and A from JCR in FY2021) by increasing retained earnings.

strengthen our financial base, including in periods of difficult management

based businesses.

Building Materials Business sells to builders, developers and housing

In terms of cash flow, the COVID-19 pandemic has also had an impact, and with theThorough Enhancement of Financial Capital

19 INTEGRATED REPORT 2022

Consolidated Financial Results for
FY2021

following only FY2018.

INTEGRATED REPORT 2022

20

Interview with CFO

exception of core systems, etc., we were unable to carry out business investment

added “ROE maintained above the cost of shareholders’ equity” as a new indicatorand M&A as planned in the previous medium-term management plan and the cashin the New Medium-Term Management Plan. At present, Yamazen’s shareholders’balance was higher than anticipated. However, because we plan to shift theequity cost is estimated to be just over 7%, and ROE of around 10% is required

investment budget to carry out investment in the new medium-term management

when the lower limit of the equity spread is 2% (ROE was 10.9% in FY2021).

plan “CROSSING YAMAZEN 2024” (hereinafter, “New Medium-Term Management

To improve medium- to long-term ROE, through measures to address the materiality

Plan”) that started in FY2022, the cash balance is expected to return to the(key issues) identified in the process of formulating the New Medium-Term

anticipated level in the period covered by the New Medium-Term Management Plan.

Management Plan, we will endeavor to achieve sustainable growth through theOverview of targets announced for new management indicators
Indicator(Millions of yen)

FY2021(76th term performance)

FY2022(first year of plan)

FY2024(final year of plan)

Return on equity
(ROE)

10.9%

9.0%

10.0%

Basic operating
cash flow

12,052

14,00018,000Equity ratio

39.9%

40% - 45%

further enhancement of profitability and reduction of business risks, and the“CROSSING YAMAZEN 2024”

reduction of the cost of shareholders’ equity by promoting active dialogue with

● Overview of growth investment budget and investment policy

capital markets.

The breakdown of the growth investment budget in the New Medium-Term

From FY2022, we have confirmed that there will be an increase in depreciation

Management Plan is ¥10.0 billion for IT investment, ¥10.0 billion for investment● Approach to new management indicatorsburden related to core system upgrades and logistics investment. In addition,

in logistics, facilities, etc. and ¥20.0 billion for business investment.

In order to enhance financial capital, we have continued our financial policy of

because we will implement business investment based on our digital strategy, andWith regard to DX and system investment, core systems covering thegenerating cash by minimizing working capital and increasing turnover, andalthough the increase in the depreciation burden will not remain temporary, we have

Production Equipment Business in Japan were upgraded as the first step, andleading to continuous business development while further enhancing

allocating it to the repayment of financial liabilities. As a result, we have emphasized

positioned it as fuel for sustainable growth in profit.

they began operating in August 2022. Following this, the second step andshareholders’ equity.

ROA, total asset turnover, cash flow margin, etc. as financial indicators. Even after

As has been the case in the past, we do not intend to use excessive financial

investment in core systems in overseas locations will be necessary, and we will

In FY2021, we executed a new capital policy by issuing recapitalization

the repayment of interest-bearing debt other than lease liabilities in FY2014, we haveleverage in management. Considering the current condition of the Company’s

make enhancements related to DX, infrastructure and security for items thatconvertible bonds combining funding, which avoids dilution as much as

endeavored to enhance financial capital, and our analysis indicates that financial

business and the relationships we have built up with stakeholders, maintaining

are directly linked to strengthening sales capabilities.

possible, with the purchase of treasury stock. Under the New Medium-Term

capital has been maintained at a level that does not cause significant damage.

financial soundness is viewed as being extremely important. We would like toWith regard to logistics, facilities, etc., Yamazen’s logistics tend to haveManagement Plan, we recognize that an urgent issue is the overall

Now that equity has been accumulated based on a sound approach, we are

implement flexible financial measures while giving due consideration to maintaining

reduced productivity due to individualized optimization as a result of the diverse

enhancement of corporate value while maintaining our shareholder returnconsidering the need for management that is conscious of equity spread, and haveand improving the level of our issuer credit rating.

products handled by each division headquarters and having differing logistics

policy as we conduct business investment based on a growth strategy aiming

volume, distribution frequency and required storage and transportation

to create new value.

functions. We will continue investment for strengthening the logistics
Approach to medium- and long-term enhancement of corporate value
Key issues
Customers● Digitization to maximize
customer value

Suppliers● Establishment of a transparent
governance system

Addressing issues

Nations andlocal communities

Stakeholders

Financial
institutions● Realization of a rewarding workplace

In recent years, the natural and social environments surrounding our businessWith regard to business investment, we have carried over the content that wehave changed significantly, and the speed of the change is accelerating. A highlevel of governance is required to achieve stable and continuous growth, andinto the New Medium-Term Management Plan. When formulating the New

we recognize that there is a growing need for accountability to stakeholders.

SG&A
expenses - otherMedium-Term Management Plan, we held repeated discussions on the needWith the transition to the Prime Market in April 2022, Yamazen has come tofor business investment for future value creation in division headquarters, andpublish an integrated report. With this publication, we have found that it isalthough there is a possibility of some amount of additional investment, we will

important to frankly convey our views on the financial and non-financial capitalpromote business investment within the scope of liquidity on hand and freethat Yamazen has accumulated through ups and downs, the current state of

cash flow during the period that are available for investment.

its financial strategy based on this, and the direction for the future.

SG&A expenses personnel expenses

Interest
Taxes

ROE maintained
above the costof shareholders’equityHow are we taking on the challenge to create value with our stakeholders,ProfitTo Our Stakeholders

Shareholders’equityOptimize shareholders’ equity
Increased growth rate

Boost sustainable growth potential by improving dialogue and reducing business risks

21 INTEGRATED REPORT 2022

establishing logistics sites by function.
were unable to implement during the previous medium-term management plan

Shareholders

Reduced cost of shareholders’ equity● Publication of the integrated report

Cost of sales
Stakeholder satisfaction● Realization of sustainableprocurement and supply

Other business
partners
Employees andtheir families

Net sales● Expanding green business

management system (LMS) that controls these upstream portions andCapital and shareholder
returns policy

including measures that are currently being implemented, such as DX and new
business investment? To provide a deeper understanding of Yamazen, we
would like to strengthen communication of information, including information● Shareholder return policy and capital policy

regarding financial and non-financial capital, and create media that conveys

Yamazen’s basic policy is to establish a stable financial base, improve“pioneering a new future, with you all,” our stakeholders.

profitability, and return profits taking the profit level into consideration, based

Upon reaching our 75th anniversary, we would like to actively engage inon the continuation of stable dividends to shareholders with a dividend payout

initiatives to further enhance corporate value in line with the perspective of ourratio of around 30%. Internal reserves are allocated to effective investment

stakeholders. Please continue to support the Yamazen Group.
INTEGRATED REPORT 2022

22

GrowthStrategy

Accelerating ESG and carbon
neutral initiatives

Green Strategy

The Company’s environmental activities started with registration of ISO14001 certification when the COP3 “Kyoto Protocol” of 1997 was ratified. In addition to
the Company’s own energy saving and decarbonization activities, we started the “Eco-BRAND Campaign” in 2005, which is the predecessor of the “Green
Ball Project,” and quickly focused on the effect of energy-saving equipment on reducing emissions, working to promote the sales of environmentally friendly
equipment. In 2021, we established the Green Recovery Business Department (hereinafter, “GRB Dept.”) under the General Sales H.Q. as a dedicateddepartment engaging in new decarbonization business, and it has led companywide carbon neutrality promotion activities including all business divisions.

Recognition of Risks and Opportunities
Internal/
External

Risk

Opportunities (positive factors)

Risks (negative factors)

Transition

・Increased sale of summer products (air-conditioning, fans, etc.)
・Expansion of opportunities to sell products reducing environmental impact
・Penetration and expansion of the Green Ball Project・Reduction of sales of winter products (kotatsu, heaters, etc.)
・Increase of development costs for products reducing environmental impact
・Increased energy and logistics costs

Physical・Increase in sales of products supporting BCP.ERS
・Expansion of BCP.ERS demand・Expansion of sales of products related to disaster prevention

・Ensuring the safety of employees, company buildings and various facilities
・Measures to address domestic and overseas supply chains (product procurement)
・Establishment of a robust product supply system (information and logistics networks)

Transition

・Growing momentum for procurement of renewable energy and demand related to energy saving
・Diversification of renewable energy procurement such as PPA model business
・Growing momentum of energy saving renovations and decarbonization

・Introduction of carbon pricing (carbon tax)
・Heightened social needs for curbing emissions
・Criticism of products with large environmental impact

Physical・Expansion of demand for measures against climate disasters (BCP)・Occurrence of demand for emergency disaster restoration and demand for relief

・Interruption or suspension of social infrastructure (electric power, water, etc.)
・Interruption or suspension of transportation infrastructure (railways, highways)
・Interruption or suspension of information infrastructure (broadcasting, communication, etc.)

Internal
environment

Disclosure Methods Related to Climate Change Risks
External
environment

Method of disclosure of emissions calculation
Environmental initiatives began in FY2000 with activities to obtain and maintain ISO certification. However, in addition to energy saving activities in
the Company as a measure to address increasingly severe global warming, we have made the transition to decarbonization activities throughout

As transition risk associated with climate change, we have analyzed

IPCC report. We anticipate the scale and frequency of natural disasters

the entire value chain, and changed course toward activities in accordance with the Greenhouse Gas Protocol in support of TCFD since FY2022.

internal and external risks and opportunities based on the IEA’s scenarios

such as typhoons, floods, droughts and water shortages, and sequentiallyof the average temperature rising by 1.5℃ and 4.0℃. Due to a lack oftake steps to address them, such as naturally securing the lives andresources, we are currently working hard to aggregate the financial impact

livelihoods of employees, securing and decentralizing electricity and dataof these risks and opportunities. Meanwhile, as physical risks, we similarly

communication infrastructure, securing product purchasing supply chains,

analyze the internal and external risks and opportunities based on theand building multiple delivery systems by decentralizing logistics sites.

Upstream
Scope 3

Numerical indicators are in accordance with the Greenhouse Gas Protocol

Our Company

Due to the nature of being a trading company, the Company’s Scope 1
and 2 emissions could be considered to be relatively low for the size of

1 Raw materials

2 Capital goods

Scope 2

Direct greenhouse gas
emissions fromoperators

Indirect emissions fromusing energy supplied byother companies

Fuel combustion andindustrial processes

the business. We recognize that it is our social responsibility to utilize ourcharacteristics as a distribution trading company to promote

3 Energy related

decarbonization of the entire supply chain involving suppliers and buyers.

Downstream
Scope 3

Scope 19 Transportation 10 Processing ofand delivery

Electricity usage
Steam usage

Strategic Map

Scope 34 Transportation

11 Use of finished 12 Disposal ofgoods

and delivery

6 Business

5 Wastetrips

7 Commuting

to workfinished goods

8 Leased 14 Franchises 15 Investments

finished goods

In order to minimize recognized risks and turn them into

13 Leased assets

assetsopportunities, we are actively engaged in carbon neutrality

Reducing CO2 emissions by 50% by 2030
Switch to renewable energy
at all global locations
Branding
as needed

As a distribution trading company, we emphasize how wesuppliers and buyers. As we implement our Green Growth

cloud service provided by Zeroboard, Inc., and enables determination of the total volume by having key locations

Strategy, we are engaged in (1) PPA model business as a

and group companies worldwide input data, and the visualization of progress of decarbonization using monthly“sales promotional planning activity.”(See Green Ball Project on page 24)

BCP
countermeasures

Governance System

the Chief Executive Officer (CEO). The managing body is theonce per year. In addition, practical operation is carried out by theEnvironmental Committee chaired by a Director and Executive

Monitoring

Executive Committee, and confirms policies, directions and progressRole

The chief operating officer responsible for climate change issues is

Officer. It holds meetings four times per year, making discussion of

Executive
Committee

the content of policies and identifying issues with members selected
Administration H.Q. serves as the secretariat, and the GRB Dept.
serves as the driver in the General Sales H.Q., with each providing

Managingfrom each department. The CSR Promotion Office in the Corporate

Decision-making body Decision-maker Meetings

Board ofDirectors

Environmental
Committee

specific directions on practical administration to the departments(Secretariat)

under them, and requiring them to report on progress. We have

CSR Promotion Officeestablished a system for the Board of Directors to monitor theper year. In this way, the entire company works as one to address
climate change issues while applying the PDCA cycle.
23 INTEGRATED REPORT 2022

Working

direction and whether activities are carried out appropriately once

GRB Dept.

General Sales H.Q.
Corporate
Administration Each business Yearround
H.Q. Eachdivision
divisions
Affiliates

RenewableenergyFactories andwarehouses

Buildings andstoresSales campaign for eco-friendly equipment

In-house wheelingGreen Power Certificate
J-Credit

Offset logistics emissions from original products

Energy-saving modifications of company
power plants provided free of charge

Pass on environmental value as anincentive for customers

Creating our own environmental value! Make the eco-friendliness of our Carbon offset certification markproducts stand out from the crowd!

(1) PPA model business(2) Sales promotional planning activity

In October 2021, we joined a PPA model business through a business alliance withThe Green Ball Project that has been running since 2008 focuses on the effect of environmentally

Daigas Energy Co., Ltd., which is an operating company in the Daigas Group. The mainfriendly products reducing emissions (baseline comparison method, program-type reduction

Executive Committee

targets are supplier manufacturers of the Company and factory users, and we aim to

activity), and has counted the cumulative contribution to reduction in emissions using theEnvironment Committee

use the Company’s technology and funding to support procurement of renewable

Company’s proprietary calculation method (GBP Protocol). As a distribution trading company, byenergy and decarbonization by business partners, at the same time as contributing to

expanding the use of products with low environmental impact, we contribute to curbing emissions

the reduction of supply chain emissions that fall within the Company’s own Scope 3.

in “C11: Use of finished goods,” for which the total amount is difficult to ascertain.

ACTION

Representative Once
Director,per
Executive Officer year

Four
times
per
year

Renovation andreinforcement

Sales Promotional
Planning

Board of Directors

Representative Once
Director,per
President & CEO year

Director andExecutive Officer

Development
Business

PPA business model, renovate energysaving equipment, in-house power plant“development business” and (2) Green Ball Project as aand yearly comparisons. Along with this, we also aim to strengthen activities through collaboration by providing itto the Company’s supply chain for a charge or at no charge.

Switch at domestic
locations as needed

conduct business in a way that we collaborate with

Company’s Scope 1, Scope 2 and Scope 3 emissions by category. This is a partially customized version of the

Boost the ESG score!

Renewable energy / emissions allowancebusiness,” “sales promotional planning” and “branding.”

We have introduce a SaaS-type decarbonization calculation application as a “GBP App” for ascertaining the

SROI (Social Return On Investment)

Environmental Value(CN) from the three perspectives of “development

Introduction of a dedicated app as a tool for counting emissions

Publicity through IR, PR, and recruitment

CHECK(Secretariat)
CSR Promotion
Dept.

GRB Dept.

Corporate
Administration
H.Q.

General
Sales
H.Q.

PLAN



(See Unique Engagement on page 25)

DO
INTEGRATED REPORT 2022

24

Environment TOPICS

Carbon Neutral Roadmap
50% reduction of CO2 emissions in FY2030, aiming to achieve carbon neutrality in FY2050!
Due to resources, FY2020 is used as the base year for determining the Company’s emissions. The figures include some currently being aggregated, but we aim to reduce the01

Major domestic sites gradually switching to electricity from renewable energy
Plans for nationwide rollout starting with sites under control of Osaka Corporate H.Q.

total amount by 50% by FY2030 and be effectively carbon neutral by FY2050. Much of the Company’s Scope 1 is accounted for by gasoline consumption such as sales vehicles.
We will sequentially replace existing hybrid vehicles with EVs. Furthermore, much of Scope 2 is accounted for by electricity consumption in offices and logistics facilities, and we
aim to significantly reduce CO2 emissions in the medium- to long-term by switching to electricity from renewable energy and introducing energy-saving air-conditioning andIn order to reduce the Company’s Scope 2 emissions (indirect emissions fromlighting. Due to a lack of resources, Scope 3 is currently being aggregated, but we aim to halve these emissions by FY2030 and reduce them to net zero by FY2050.

energy), we switched the power of Buildings 1, 2 and 3 of the Osaka Corporate
H.Q. to “D-Green RE100” electricity from renewable energy from Osaka Gas

Achieving carbon neutrality±ZERO
Total emissions in FY2050

Scope 1:
Gasoline andnatural gas

Compared to FY2020(100)%Net zero!*1

Scope 2:
Usage of electricity
and heat

Other
C1: Raw materials
C5: Disposal

Category

Emission source

Unit

Base year
FY2020

Scope 1

Gasoline, gas

t-CO2

2,819

2,411

KPI

Gasoline consumptionℓ

942,030

799,979

400,000

0

KPI

Hybrid vehicle
implementation rate

%

87.0

88.0

50% EVs

100% EVs

Scope 2

Electricity and heat use

t-CO2

5,182

5,181

2,000

0

KPI

Power consumption

MWh11,349

11,77911,00010,000

Scope 3All categories

t-CO2

50%

±0%

Total emissions in FY2030

KPI

Emissions arising from logistics

t-CO2

Being aggregated of t-CO2
Compared to FY2020 (50)%KPI

Emissions arising from wastet

KPI

GBP reduction effectt-CO2

C11: Usage

Total CO2 emissions

C4, 9: Transportationand delivery

C6, 7: Commuting,etc.

FY2020 total emissions (base year)

Being aggregated of t-CO2

t-CO2

Elapsed year Interim target
FY2021
FY2030Being aggregated Being aggregated

1,200

15,907

50%

±0%

171

197

50%

±0%

34,31940,701

50%

±0%

50%

±0%

* Countries covered: Japan, China, South Korea, Taiwan, Thailand, Vietnam, Philippines, Singapore, Malaysia, Indonesia, India, USA, Mexico,
Germany, Czech. * Calculation method: In accordance with the Greenhouse Gas Protocol, Scope 1 and Scope 2 are actual emissions, and Scope
3 is currently being aggregated centered on categories (hereinafter, “C:”) C1: Raw materials, C5: Disposal, C6 and 7: Commuting, etc., C4 and 9:
Transportation, and C11: Use. However, C1: raw materials and C11: use only include original the Company-branded products, and we areconsidering calculation using emission factors for each product for some time. We have set KPIs to achieve these, and also manage their progress.

*1. Net zero means the actual reduction of emissions aswell as offsets through the use of carbon credits, etc.

November 4. This is expected to reduce annual emissions by 595t-CO2. This014,100Being aggregated Being aggregatedCo., Ltd. in July 1, 2022, and did the same in the Logis Osaka (Daito-shi) on

Final target
FY2050electricity satisfies the requirements of “RE100” because the electricity fromrenewable energy is supplied with non-fossil certification with tracking
information. In this way, the Company is proceeding to switch the major sites it
owns (Nagoya, Kyushu, Hiroshima, etc.) to electricity from renewable energy.

02“DayZpower” PPA model introduced in major supplying manufacturer
Supporting decarbonization of suppliers“DayZpower,” which is a joint brand of the Company and Daigas

Unique Engagement (Collaboration) Initiatives in Environmental Activities – YAMAZEN’s WAY

Energy Co., Ltd., introduced a 439KW solar power facility at the Kaisei
Mill (Ashigara, Kanagawa) of Nippon Paper Crecia Co., Ltd., aStart of provision of “GBP App” to companies
participating in Green Ball Project at no charge!

It is assumed that Category 11: Use of finished goods in Scope 3 accounts for much of the Company’s

mid-sized company in the Nippon Paper Group, which is also a supplieremissions. In order to reduce emissions in this category, which are difficult to identify and aggregate, weof the Company, and concluded a PPA agreement for the supply of

believe it is our responsibility as a distribution trading company to sell and promote energy-saving equipment

electricity from renewable energy for 20 years. This is expected to have

As a distribution trading company, we aim tobalance decarbonization activities andeconomic activities through engagement(collaboration) with the supply chain!

with low environmental impact. We began the aforementioned Green Ball Project in 2008, and havethe effect of reducing annual emissions by 197t-CO2.

endeavored to spread environmentally friendly products with supporting manufacturers, participating(Scheduled to go online in March 2023)

business partners and users. The “GBP App” mentioned above is being provided from FY2022 to companies

Supporting the introduction of renewable energy for suppliers

participating in the project, and we will support determination of the total amount of emissions using thecontributes to the reduction of CO2 through supply chain collaboration

Greenhouse Gas Protocol and visualization of the contribution to reduction using the GBP Protocol.

including the Company.

GHG Protocol + GBP Protocol*2 The reduction effect is calculated bystringently evaluating performance based on
the Company’s “GBP Protocol” as aprogram-type project reduction using abaseline comparison for the reduction.

(Emissions)

Reduction*2 is calculated together forcontrol of “C11. Use of finished goods”

GBP App
Scope 1

Scope 2

Scope 3

Shared Platforms

sions

e emisBaselin

Project

Emission
reductionsemission

GBP reduction effect03

Biodiversity initiatives also begun
Supporting “The Nature Conservation Society of Japan,” contributing to preservation of ecosystems

We support “The Nature Conservation Society of Japan”
The Company has made donations to “The Nature Conservation Society ofJapan” since 2020, and will contribute to the preservation of precious
ecosystems by raising awareness for a variety of nature protection issues andWe provide the Green Ball Project Application (GBP App), the Company’s dedicated app

While it is a matter of course to curb and reduce emissions within the Company, in addition,

for visualization of internal emissions and progress management of reductions, towe aim to produce further effects by vigorously focusing on the sale of environmentallycompanies participating in the Green Ball Project at no charge, supporting the visualization

friendly products to curb emissions in Scope 3 “Category 11: Use of finished goods,” thatof emissions and the visualization of reduction effects in the downstream supply chain.

are the greatest source of emissions as a distribution trading company.

25 INTEGRATED REPORT 2022

supporting beach cleaning activities, etc. In FY2022, we plan ongoing activities
in Yakushima and Amami Oshima, which are natural World Heritage sites.

INTEGRATED REPORT 2022

26

GrowthStrategy

Human Resource and Organizational
Development Strategies

Management of Fostering Personnel 2030
Assembling and training a diverse, independentand virtuous employees* who challengethemselves and think while taking action* Independent and virtuous employees refer to self-reliant human resources with the unique philosophy of the Group, who autonomously challenge themselves and think
while taking action in the workplace as unexpected changes become normalized in order to respond to change with agility and flexibility, and always serve the customer.

“Autonomous flexibility to change” is required for the Company to achieve sustained growth and development in a society undergoingsignificant changes. Developing diverse human resources as independent and virtuous employees and bringing together their ability toautonomously challenge themselves and think while taking action enables the enhancement of corporate value starting with human resources.
The Company believes that it is because they are independent and virtuous employees rather than just employees means that people alone
are the greatest management resource creating new added value by autonomously and agilely responding to change.

Pioneering a
new future,withyou all

Assembly of Diverse Knowledge and Experience: Diversity & Inclusion
In order to continue creating innovation that speedily responds to change and provides
inspiration to customers, we will thoroughly increase diversity and assemble its strengths.

For Assembling Diverse Human Resources and Their Strengths
Constant Approach to Human Resource Strategy and Organizational Development Strategy

PurposeBusiness strategy

Enhancing social value
Boosting economic value

Pioneering a new
futureWith you all

CROSSING

Handling change

Under the new medium-term management plan entitledcoming era. To achieve this, it is necessary to establish a base for“CROSSING YAMAZEN 2024” (hereinafter “New Medium-Term

assembling the strengths of human resources backed by a highManagement Plan”), we will establish a worker-friendly environment

level of specialized skills. For this reason, the Company has

in which a variety of employees with “specialized knowledge andsignificantly reformed the HR system for strongly promoting

experience” can work together, in order to promote diversity.

Developing
human
resources

Employeefriendliness

Assembling

Diversity

With you all

Enhancinghuman capital

Autonomy Challenging, andthinking while taking action

Diversity

diversity and inclusion.

and experience is necessary to continue creating results in theGetting results

Developing
human resources

Personnel
strategy

Continuing to create new value by assembling diverse knowledge

STEP 1Developing the Environment│CROSSING YAMAZEN 2024

Transforming HR management
to promote diversity
Establishing a new in-house expert qualification system
Integration of career-track and noncareer-track positions
Reforming the role-based personnel grading system

STEP 2Going Deeper and Further│Medium-Term Management Plan 2027

Improving our ability torespond to changes worldwide
and so create new value
Shifting to the Yamazen-style person-centric job
system and assigning the right people forthe right jobs at the right pay at the global level

STEP 3Evolution│Medium-Term Management Plan 2030

Further expanding the field of value creation
with the strong centrifugal force of diversity andIndependent and virtuous employee’s mindset
Becoming an HR development-oriented company
that attracts and assembles knowledge and experiencefrom both inside and outside the organization

Introducing a multi-path HR system
High level of expertise × management skills

Organizational
development
strategy

Assembling

Enhancingorganizational capital

Provide opportunities

CROSSING YAMAZEN 2024
Employee-friendlinessCorporate culture Realize a rewarding workplace for better cohesion

Stimulation of Diverse Human Resources

Professional Positions and Human Resources

To connect “diversity of knowledge and experience” to value creation as a management
strategy, we implemented major reforms of the HR system this spring aimed at rewards andtraining by thoroughly emphasizing specialized skills, and established the foundation for this.

In reforms of the HR system, we adopted a multi-path
HR system for management personnel. This is thecornerstone of Yamazen-style job types, and we must
continue enhancing value that can be provided tocustomers through more advanced specialization to
respond to changes in diversifying customer needs.

Human Resources Philosophy and Personnel Management Policy Supporting “Management of Fostering Personnel 2030”
The buds of change are always in the front line that is in contact
Human
resources philosophy

with society. To respond to such diverse buds, we must generate
new added value, serve customers and create inspiration. To

Personnel
management policy

and a personnel management policy that encourage challenging
oneself and thinking while taking action rather than results, andCore personnel systemthought it is necessary to change minds, change behavior and

Recruitment / Development / Engagement strategy

Basic strategy and policy for HR system / evaluation system /target management system

Employees challenging themselves.
Thinking while taking action.

Challenge

Tackle big goals and difficult tasks head on.

think while taking action,” last year, we altered the personnel

Think and Act

Thinking for themselves, then acting. And thinking while they’re taking action.

management policy from “Emphasis on roles and results” to- Manage in a way that trains people to challenge themselves and think while taking action.

- Then recognize those who challenged themselves, thought, and took action but didn’t quite deliver.

“Employees challenging themselves. Thinking while taking action.”- First recognize those who have delivered by challenging themselves and thinking while taking action.

- Don’t recognize those who didn’t challenge themselves or think while taking action.

philosophy of “Cultivate personnel who challenge themselves and

27 INTEGRATED REPORT 2022

MeasureTimes held

Participants

Management personnel Round table meeting

35

693 in total

Former clerical workers Round table meeting

1265

Former clerical workers Career development training

3

222

Personnel management policy

Cultivate personnel who challenge themselves and think while taking action

achieve this, we newly presented a human resources philosophy

foster a new culture. In light of this, under the human resources

Priority Measures “With You All”

Rewarding work

Autonomy

Trust in Management / Unifying Abilities
Trust in management and unifying abilities are vital for diverse independent and virtuous
employees to vibrantly exhibit their skills in the workplace. In order to increase thisthrough reform of the HR system, we implement management education in parallel.
Times held

Education type

Times held

Leadership training

13

Lecture on fostering personnel

12

Conference on “Employees challenging
themselves. Thinking while taking action.”

6

Evaluator training

6

Conference on new HR system

31

Education type

Number of people inprofessional positions

70

Deep Pool of Core Human Resources (Emerging Leader Management Personnel)
Core human resources with anadvanced combination of humanskills and conceptual skills under thefunctional grade system andtechnical skills under the qualification
system are the strong foundation
supporting the sustained growthand development of the Company,
and we will thoroughly hone them as
the essence of the succession planin an era of intense change.

Professional positions

Management positions

196 leaders
7 of whom are
women

ChiefsCoordinators

Stage ofemployees actively
challenging
themselves while
thinking andtaking action
Stage of developing thecapacity of employees tochallenge themselves while
thinking and taking action

INTEGRATED REPORT 2022

28

GrowthStrategy

Pioneering a
new future,withyou all

Training independent and virtuous employees and encouraging them to challenge themselves and think while taking action
There is value that can only be provided by Yamazen. Unprecedented value that is useful for customers in an era of intense change iscreated by individuals who challenge themselves and think while taking action, and the organization that encourages this. For this reason, we
train independent and virtuous employees who provide inspiration to society based on Yamazen’s Thinking and Taking Action philosophy.

IT (DX) Strategies

Aiming to maximize customer value by promoting
DX strategy that leverages digital technology

The Company perceives DX to be innovation, and is proceeding with a digital integration strategy (DX strategy) for creating
new added value by strengthening contact points with customers utilizing digital technology, providing new products andnew services, and connecting the knowledge obtained from there to real human resources. “Integration” means the organic
combination of technology, organization and culture for bringing about innovation (DX) (creating solutions).

Providing a Place for Employees to Challenge Themselves and Think While Taking Action to Train independent and virtuous employees

Embracing Change

For a company to achieve sustained growth and development, each individual must handle

These all being implemented by independent and virtuous employees and the organization

In the VUCA* era, the Company has called for being a business that

Sensitively watching constantly changing trends and selecting the move tochange by autonomously continuing to update their own skills. Only then can they challenge

will enable reform into an organization able to handle change with both creativity andresponds to change.

make in the flow of the industry and the conditions surrounding business,themselves and think while taking action in each workplace based on agile decisions andefficiency.

The business environment is steadily undergoing changes including macro,considering what to use as a strength, how to use it and how to change,

judgment in an era of intense change. To achieve this, it is necessary for

To this end, under the New Medium-Term Management Plan, we will promote organizationindustry and negotiation details, such as Society 5.0, the metaverse, XaaS

and utilizing digital technology to embrace challenges, in other words,■ independent and virtuous employees to resonate with the purpose and have their

management reform for autonomous leadership thinking while taking action to ensure

and CASE. In particular, social innovation brought about by digitalreforming business models means “handling change,” and the Company’s

employees challenge themselves and think while taking action in the workplace, elicit thetechnology is breaking down barriers in all industries since the COVID-19

DX strategy involves experimenting and thinking while taking action for this.

desire to grow more and seek to enhance rewarding work that matches this desire.

pandemic, and the advantage and permanence of existing products andown strong motivation, and■ the organization to provide opportunities and places leading to the enhancement of skills.

services built up to date are being shaken.
Developing
human
resources

Rewarding
work

STEP 1Developing the Environment│CROSSING YAMAZEN 2024

STEP 2

Provide opportunities

Autonomous employees challenging
themselves and thinking while taking action

Pioneering a new future

Establish the Yamazen HR
Development Systemon a global level

Thoroughly encourage on-site practice of employees challenging
themselves while thinking and taking action based on the Yamazen philosophy
Introduction of the Yamazen-style system of target management: “Statement of Policy on
Employees Challenging Themselves While Thinking and Taking Action / Reporting Form”
Introduction of evaluation standards at the management level
for Yamazen’s Thinking and Taking Action philosophy

Going Deeper and Further│Medium-Term Management Plan 2027

Foster a culture of thinking and acting at
the global level that autonomously boosts
the professional capacity to respond to change

STEP 3Evolution│Medium-Term Management Plan 2030

Transform the organization into one that exerts
a strong cohesive force both internally and externally
Create an organizational culture that evolves andgrows autonomously by transforming implicit
knowledge of responding to change into
organizational knowledge on a global level

Basic Policy and Implementation Measures
Naturally, in order to respond to changes, we must be aware of the signs and content of the changes.
Our DX strategy towards the achievement of this promotes measures that are centered on the “utilization of data” for each point in the value chain.

Introduction of evaluation standards for competency inYamazen’s Thinking and Taking Action characteristics

CROSSING YAMAZEN 2024

* VUCA: An acronym of the first letters of Volatility, Uncertainty, Complexity, and Ambiguity.
It refers to a situation in which the way to proceed is unclear, and it is difficult to predict the future.

Centralization of information● Maintenance of business processes /input data through the introduction of
an integrated core business system

Priority Measures “Pioneering a New Future”● Building a new, data-driven
management infrastructureStandardization and consolidationof business processes● Introduction of integrated core businessand new logistics systems, reduction of
back-office operations and shift to highvalue-added operations by promoting
company-wide BPR

Deepen existing businessNew business creation● Use data for customer closeness strategy● Sequential launch of BtoB and D2C websites
needed for better customer engagement● Enhance sales and product development
capabilities by leveraging new
data-driven management platforms(including utilizing AI)● Creation of new business utilizing datafrom on-site KAIZEN activity andfacility IoTDevelopment of independent and virtuous employees
In order to measure the effect of the independent and virtuous employee development measures and to set issues, we conduct a proprietary engagement survey called the “Independent
and Virtuous Employee Awareness Survey.” We develop highly skilled independent and virtuous employees through specific measures for verifying hypothesis and resolving issues.

Suppliers andmanufacturers

Intensive Encouragement of Embracing Challenges and Thinking

YamazenSales / business
partners

Consumers

The most significant benefit of embracing challenges and thinking is when it leads to improvements in customer value. It is the quantity and quality of the challenging spirit and action taking of independent and virtuous employees who respond to changes on thefront lines of the workplace that are the seeds for innovation. In order to encourage this, we have made a self-declaration of “challenge and action targets” in the “Challenge and Action Declaration Form,” which is our proprietary target management system.

In order to “pioneer a new future, with you all”: “mental and physical health management” that supports fostering of personnel × ease of work × job satisfaction
In order to play an active role in our workplace through demonstrating initiative in embracing challenges and taking
actions, it is necessary to have both good physical and mental health. Towards the acquisition of certification in the
Ministry of Economy, Trade and Industry’s Certified Health & Productivity Management Outstanding Organizations

Yamazen Health Management Declaration
Yamazen’s most value assets are its personnel. At the very beginning of our management philosophy,
personnel, and to foster independent and virtuous employees.” Based on this philosophy, we

and have applied for certification. Through the promotion of efforts that will make specific contributions to improved

recognize that the promotion of employee health is important for the happiness of employees andperformance of each individual employee, which will lead to an increase in corporate value.
29 INTEGRATED REPORT 2022

Transformation into a Data-Driven Company That Makes Decisions Based on Data

Specifically, we are promoting the following measures (development) in order to realize improvements in productivity and in the quality ofdecision making through the “centralization of information” and the “standardization and consolidation of business processes.”

we mention “management of fostering personnel” as well as our philosophy of “to make active use of

Recognition Program (Large Company Section), we have published the Yamazen Health Management Declaration,
physical and mental health within the Company, we will improve productivity through improvements in the1their families, which will lead to each and every employee working enthusiastically, and “creating a
rewarding workplace,” and are addressing this matter as an important management issue.

1

Maintenance of business processes / input data through the introduction of an integrated core business system

We will renovate the core systems that underpin our growth strategy with the objective of improving productivity and increasing profitability.

INTEGRATED REPORT 2022

30

2

3

Building a new, data-driven management infrastructure

Sequential launch of BtoB and D2C websites needed for better customer closenessWe will build a data platform in order to arm ourselves with information, will contribute to business management through the visualization of

We will develop products for enterprise and professional customers, as well as for consumers, and will

management information such as profits by segment, and will realize the provision of useful information to people in charge of sales.

actively expand the sale of such products. We will use search and purchase history as well as review data for“Yamazen Bizcom,” ane-commerce website forenterprises and sole traders
operated by the Home
Products Division Headquarters

product development, and in addition, will reduce lost opportunities through the optimization of inventory.

Selling Goods (Goods-Dominant-Logic)

Front
Systems that attract customers
by offering convenienceand functionality

Recommended products
and services

Nurture leads

Post stories of successTargetingSelling Services (Service-Dominant-Logic)

Measure performance

etc.

4

Creation of new business utilizing data from on-site KAIZEN activity and facility IoT

We will improve productivity through the visualization, etc., of on-site KAIZEN activities at small to medium sized manufacturers, and will realize a manufacturing support ecosystem.

BI / ML*

IoT
Data-driven management platform (YAMAZEN Data Platform)
MiddleCore system insupport of data-driven
management

Data platforms

Process data
(convert to valuable information)

Connect data

Collect and display
data

Organization and Human Resource Development / Governance

Data analytics platform for data scientists

Data analytics platform for all employees

In order to ensure the success of DX, we believe that it will be essential to promote steady digitalization (governance), as well as to create a

Analyze data and model logic

Make data visual

human resources and management (digital native) environment that will allow for the generation of ideas which will lead to breakthroughs.
As the word “digital native” suggests, it is our intent for digital technology to be used natively as standard practice. Specifically, we aim tostay up to speed with the changes in the world, with respect to our affinity, approach and ideas for digitalization.

Back
System to help improve
the productivity ofvarious operations(Core) business system
CRM / MA

Integrated
core business system

New logistics system

New HR system

1

Establishment of DX Strategy Methodology

1Compliance with the Digital Governance Code (DX certification)* BI/ML: Business Intelligence/Machine Learning

3

Reduction of indirect operations and shift to high added value work through the company-wide promotion of BPR

We will proceed with the reviewing of existing processes, with a focus on indirect operations, will promote the reduction of man-hours
through the use of RPA (Robotic Process Automation) and API (Application Programming Interface), and will aim to improve productivity.

2

Promotion of PoC and agile development

For the steady development on what should be done in order to improve

Through trial and error, we will work

corporate value, we have redefined our business strategy and investment

towards the establishment of an agile

management process from the point of view of “digital governance,” andway of doing things (methodology) thathave undergone an objective evaluation (DX certification). We aim to brush up

will allow us to take on new challenges.

on this further through its expansion and permeation across the Company.

2

Creation of New Business through Marketing Based on Data

2

Systems towards Promotion of DX Strategy, Securing and Training of Digital Human Resources1

Formation of a dedicated organization

Specifically, we are promoting the following measures (development) in order to create a mechanism that will contribute to the further strengthening of our sales
capabilities, as well as to promote the “deepening of existing business” and “new business creation” through strengthening contact points with customers.

1

Utilize data for close customer relationship strategy

2

Enhance sales and product development capabilities by utilizing
new data-driven management platforms (including AI)

3

Collaboration with external organizations andestablishment of an organization

On April 1, 2021, we established the “Digital Transformation Strategy Dept.” at

In regard to the (collaborative) robot business, which offers an

the Corporate Planning Headquarters (now the General Sales Headquarters) as

alternative to a labor force, an area in which demand across society

a functional organization that integrates business and IT systems.

is increasing, we have constructed an ecosystem “Yamazen FA /Sler Association” with robot manufacturers and group of companies

We will realize a win-win relationship by utilizing data such as the information obtained directly

We will analyze customer requirements to improve responsiveness, such2from customers and sales information to ascertain the needs in the business situations

as using AI to provide a fast response to customer requests, from the

Beginning with the “Digital Transformation Strategy Dept.,” we will start to develop DX human resources, including

directly faced by customers, from the perspective of customers, and present solutions.

information accumulated in the sales support system and core systems.

“business leaders” who will take charge of actual DX promotion, as well as “analyst leaders (citizen data scientists)”

Bottoming up of data utilization skills

having control programs / AI, and are developing automation andlabor saving solutions for our sales network (customers).

who will nimbly respond to signs of change, take the initiative in encouraging action being taken on-site.
Yamazen’s strengths

Further strength
Board of Directors

Representative Directors

Sales force backed by a trackrecord and extensive experience

Data-driven sales andmarketing activities

Executive Committee
Management Meeting

General Sales H.Q.

Analyst leaders

CIO:
Data science research
Executive Officer;
President of Corporate Administration H.Q.

Digital Transformation Strategy Dept. Head of DX: General Manager ofAll employees
Improve IT literacy

Business leaders
Data analytics research

Digital Transformation Strategy Dept.
April 2021
● Develop “Analyst Leaders” who quickly recognize signs of change
Established the Digital Transformation Strategy Dept. at Corporate Planning H.Q.
and take the initiative to encourage action in the workplace
Machine Tools Division Headquarters’ portal website “zenassist+.”Contains the latest information on manufacturers and the products handled by the Machine Tools Division Headquarters, as well as subsidy information, etc.

31 INTEGRATED REPORT 2022

September 2021
Transferred to General Sales H.Q. along with reorganization● In support of this, cultivate a digital, self-driven
culture (mindset) that voluntarily tackles change

The “General Meeting of Yamazen FA / Sler Association” was held in June 2022.
Approximately 40 full member and associate member companies participated.
INTEGRATED REPORT 202232

GrowthStrategy

Aiming to establish the next generation logistics system:
Creation of new value in “logistics”

Logistics Strategy

For the Yamazen Group, which is a specialized trading company that develops wide ranging businesses in both production equipment and consumer
goods, the further development and expansion of logistics functions is an incredibly important management issue that concerns the foundation ofmanagement and business. We will increase the efficiency of logistics through cross-divisional logistics crossing and logistics DX initiatives, and at
the same time, will also focus on reducing environmental impact, and will pursue the establishment of a next generation logistics system.

Improved Efficiency of Logistics Business and Contribution to Sustainability

Realization of Logistics Crossing and Making Logistics Profitable
In the first term with a goal of 2024, we will focus on the three initiatives of cross-divisional logistics

logistics and the conversion of transportation and delivery to AI through the introduction of a logistics

crossing, logistics DX, and the reduction of environmental impact.

management system (LMS). In terms of measures to reduce environmental impact, we are

In regard to logistics crossing, we will promote the cross-divisional use in relation to 117 bases byaccelerating efforts to contribute to the conservation of the environment through promoting effortsbusiness division, with a focus on building material depots, which we have across Japan, and infor railway transportation between bases, the achievement of carbon neutrality through theaddition, will prepare the installation of import container devanning warehouses. In terms of delivery,

expansion of combined freight, and for the “RE100” international environmental initiative.

we will expand the delivery routes of the Production Equipment Business, and will strengthen last

In the second term, which will end in 2027, we will pursue the achievement of profit at YAMAZEN

mile delivery and the assisted home delivery network across business divisions. In addition, we will

LOGISTICS CO., LTD. While investing management resources in the development of a transportation

In recent years in Japan, under the background of demand for

the Task Force on Climate-related Financial Disclosure (TCFD),

promote the introduction of state of the art material handling equipment, and will aim at also crossing

and delivery management system (TMS), we plan to work on the construction of new systems that

supply chain optimization in corporate management andand the achievement of carbon neutrality by 2050, have become

into the business side of promoting sales through labor saving, the expansion of volume handled,will allow us to receive orders from external companies for inventory management, cargo handling,

concerns about labor shortages due to restrictions on working

areas of strong demand in the logistics world.

the verification of automation, and the establishment of showrooms. Furthermore, we will endeavor

as well as transportation and delivery arrangement services.

hours for drivers (2024 issue), the construction of a sustainable

Based on such medium- to long-term trends, the Group has

to create new value in logistics through various measures such as for strengthening the supply chain

Then in the third term, which extends to the goal of 2030, we aim to evolve into a platformer for joint

logistics network has emerged as an industry-wide challenge.

formulated a three-term, nine-year logistics strategy in the form

with suppliers and customers, including acting as logistics agent for trading partners.

inventory management and joint transportation and delivery which specializes in the production

In addition, contributing to the sustainability of the economy andof backcasting from the vision for 2030, and is currently actively

In relation to logistics DX, we have adopted the policy of focusing our efforts on the optimization ofequipment industry, building materials industry, and home products industry.

society, such as the Sustainable Development Goals (SDGs),

investing management resources in such efforts.

Challenging towards a Logistics Revolution That Extends beyond the Boundaries of Companies and Industries

Aiming to become a transportation and delivery platform business for specific industries
Third Term
5 Curb Scope 3 emissions

4 Identify the extent of and control commuting emissions

Home appliances / furniture /household goods industry

Establish Industry-Specific Joint Transportation
and Delivery Scheme (2028-2030)

Aim to develop a platform that can handle joint transportation and delivery operations,while establishing a position unifying transportation and delivery in specific industries,
including sorting, packing and bundling, joint delivery, and pre-order shipment

Manufacturers, wholesalers,
online retailers

Home Products

1 New logistics bases operational

2 AI transportation and delivery

3 Automatic handling of cargo

Second Term

Making Yamazen Logistics
Profitable (2025-2027)

LMS

Obtain permits for warehousing business and consigned freight forwarding

Logistics
Management Systembusiness, develop a system allowing manufacturers, business partners, andsame industry wholesalers to contract transportation and delivery services
1 Obtain permits and licensing

2 Develop new logistics bases

3 Logistics sales

3 Reduce waste produced and use of consumables

TMS

Warehouse
Management System

Transport
Management System

Building Materials

exaggeration to see that the increased
sophistication of logistics functions is the
key to sustained growth and improved
corporate value. Moving forward, we will
focus on improving the efficiency oflogistics processes through the making offull use of AI and ICT, and will work on a

Tools and equipment /hardware industry
Manufacturers, wholesalers,
online retailers

Saitama, our 12th logistics base in Japan. Conveniently located within
an approximately 40 kilometer distance from the city, it will become a strategic distribution base that will deliver the products
handled by our Industrial Tools & Equipment Division Headquarters to eastern Japan. In addition to a logistics management
system (LMS) and warehouse management system (WMS), we will introduce state of the art material handling equipment andsystems and aim to improve the productivity of warehouse logistics and to realize efficient and timely product delivery. “Logis

container round use, as well as joint

Shin-Tokyo” also plays the role of model base for “green logistics,” an area in which the Company is strengthening its efforts.
* Scheduled to enter into full-scale operation in January 2023.

beyond the boundaries of companies andindustries.
We are aiming to further strengthen thelogistics system through allocating
logistics investment in the new mediumterm management plan to construction of

Production Equipment

2 Reduce emissions from energy use at bases

TOPIC 2Introduction of the “t-Sort”
robot sorter at Logis Kanto
In November 2021, “Logis Kanto,” our largest logistics base inJapan, commenced RaaS operation of the next generation
robot sorter “t-Sort.” In recent years, under the background of chronic labor shortages, the Japanese logistics

management, as well as theindustry has faced strong demand for initiatives towards the automation and improved efficiency of logistics work.

establishment of systems such as a

The introduction of “t-Sort” on this occasion was intended to respond to such social issues, and in addition to further

Industrial Tools & Equipment Logis, Home Products Logis, andlogistics management system (LMS) and

improving work efficiency and realizing a significant reduction in sorting errors, shipping errors are now approaching

Building Materials Depot to share use between divisions ofa warehouse management system (WMS),

zero. The Company is not only using “t-Sort” to improve internal operations, but is also providing cutting edge

117 bases nationwide to complement each other’s strengths

and the introduction of a logistics

1 LMS operating

forecasting system (SCM).

First Term

Manufacturers, wholesalers, online retailers

In July 2021, we established “Logis Shin-Tokyo” in Kitamoto-shi,

market trends, including modal shifts,

logistics personnel, health and safety

Housing equipment / air conditioning /building materials industry

Establishment of “Logis Shin-Tokyo,”our 12th logistics base in Japan

logistics revolution that takes into accountlogistics bases, the recruitment of

1 Reduce transportation and delivery emissions

TOPIC 1transportation and delivery that go

Yamazen
Logistics

WMS

For the Yamazen Group, it is no

Logistics Crossing
Between Divisions (2022-2024)

2 Logis Shin-Tokyo operating

technology to suppliers and customers for the making of proposals for automation and labor savings in logistics.

3 Enhance HR

33 INTEGRATED REPORT 2022

INTEGRATED REPORT 2022

34

YAMAZEN

At a Glance(Millions of yen)

Trends in Net Sales by Business

105,768
81,746

MachineTools
Business

51,49552,64059,98281,75688,39988,39964,944■ Machine Tools Business■ Industrial Tools & Equipment Business■ Building Materials Business ■ Home Products Business

78,214* The total amount of net sales includes “Others, as well as adjustments and eliminations.”

60,007600,000
526,364

FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021

107,511

107,618

114,557

122,314133,227

148,967

161,075

176,265

162,962
141,885

157,648

500,000

472,191

370,338

107,511[28.8%]

99,335

93,173
79,95075,54874,37592,312

88,642

71,463

63,848200,000

100,000

63,1650

FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021

295,055 308,146
238,957

235,807348,81064,944[14.9%]

81,746[18.3%]

122,314[28.1%]

133,227[29.7%]

447,698

88,399[17.8%]

114,557[29.0%]

107,618[29.1%]

74,375[18.8%]

107,796[24.7%]

161,075[32.4%]

176,265[33.5%]

99,335[19.9%]

88,642[16.8%]

148,967[33.3%]

93,173[20.8%]

71,463[15.9%]

75,548[20.4%]

50,519[13.6%]

53,337[14.4%]

63,064[15.9%]

58,962[13.6%]

56,400[12.6%]

58,171[13.0%]

58,415[11.7%]

77,104[20.7%]

74,592[20.1%]

76,625[19.4%]

74,616[17.1%]

75,159[16.8%]

79,151[17.7%]

6,249[1.7%]

6,600[1.8%]

6,644[1.7%]

7,168[1.6%]

8,067[1.8%]

8,188[1.8%]FY2012

105,768[20.1%]

81,756[18.3%]

79,950[21.4%]FY2011
Transitional
Medium-Term
Management Plan

447,774

59,982[15.2%]

52,640[14.2%]

300,000

107,796

Production
Equipment
Business

395,249
372,830
51,495[13.8%]FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021

Overseas
Production
Equipment
Business

400,000

501,872

497,963435,803

Industrial
Tools &
Equipment
Business■ Overseas Production Equipment Business■ Others, as well as adjustments and eliminations (Millions of yen)

FY2013

VISTA-3S

FY2014FY2015

Amazing Act 2015

FY201688,399[18.7%]

162,962[34.5%]

63,848[13.5%]

92,312[18.4%]

63,165[14.6%]

62,169[12.4%]

87,521[18.6%]

103,379[23.8%]

104,866[20.9%]

9,404[2.0%]

7,563[1.7%]

6,661[1.3%]

82,156[16.5%]

87,095[16.6%]

8,581[1.7%]

9,627[1.8%]ONEXT YAMAZEN 2018

141,885[32.6%]

58,741[13.5%]

60,054[12.7%]FY201860,007[13.8%]
157,648[31.4%]

58,965[11.2%]FY2017

78,214[15.6%]

434,744

FY2019FY2020

FY2021CROSSING YAMAZEN 2021

370,676
328,174

315,210302,187

265,059

248,915

Trends in Operating Profit by Segment■ Production Equipment Business■ Building Materials Business ■ Home Products Business ■ Others, as well as adjustments and eliminations (Millions of yen)
* The total amount of operating profit includes “Others, as well as adjustments and eliminations.”

17,133

FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021

17,997

15,38363,06450,51953,33758,96256,40058,171

58,41558,96560,05458,741

62,16913,25813,130

Building
Materials
Business

12,091

11,234

13,494

10,528
9,562

9,756

15,543
6,593
13,01011,3188,095

FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021

7,933

7,830

1,493

2,170

11,128

77,10474,592

76,62574,61675,15979,151

82,15687,095

104,866

87,521

3,570

Home
Products
Business(2,256)FY2011FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021

Transitional
Medium-Term
Management Plan

VISTA-3S

1,700

2,130

1,646

1,873

(1,800)(2,085)(1,761)FY2012

10,373

9,673
2,250

1,759

1,118

103,379

35 INTEGRATED REPORT 2022

13,113

FY2013

FY2014
Amazing Act 2015

1,362

1,434

1,532

1,422

2,467

2,797

2,677

3,002

(1,700)(1,492)(1,726)(2,080)FY2015FY2016FY2017FY2018ONEXT YAMAZEN 2018

1,655

6,052

5,801

2,284
(1,522)FY2019(3,170)

FY2020(4,413)

FY2021CROSSING YAMAZEN 2021

INTEGRATED REPORT 2022

36

Interview with President of General Sales H.Q.

Based on our corporate philosophy of“pioneering,” we will engage in efforts
to acquire new revenue sources while
thoroughly strengthening our earning
capabilities.

result in priority being given to profit for one’s own department only, and we will not be able to

The “close customer relationship strategy” aims to extensively investigate customer

achieve CROSSING in the truest sense of the word. By thinking within a broader framework thatneeds and increase sales by strengthening direct contact points with customers andconsiders division headquarters rather than one’s own department, and the entire company

increasing our levels of expertise. This is to ensure the thorough encouragement of sales

rather than the division headquarters, we will deepen partnerships with other departments, otherpersonnel to engage in a paradigm shift from product-out to market-in thinking. Because

division headquarters, and Group companies, enabling us to demonstrate the “comprehensive

we have a tendency to make proposals for what we want to sell and for whatstrength” that cannot be realized by individual departments alone. Therefore, we plan to examine

manufacturers want us to sell, this measure is based on the sense of urgency that we will

the incentive system and other mechanisms that would promote company-wide optimization.

not be able to survive unless we accurately ascertain diversifying customer needs and

The “Total Factory Solutions Division Headquarters” (hereinafter, “TFS Div. H.Q.”) is a regional

continue to make proposals to solve them. We will clarify the targets by industry, and will

headquarters that symbolizes CROSSING. At our company, a regional headquarters is thestrategically carry out proposal activities while honing our expertise. Overseas, we willorganization in charge of a given area, however, the TFS Div. H.Q. is the sole one that is

promote localization through the training of local employees, and will expand the scopeorganized by function and expertise. Each section has been staffed with persons with expertiseof our business by targeting not only Japanese companies, but also local companies.

in machinery, mechanical engineering, and home construction. We form dynamic teams that

The “transformation strategy” aims to increase profits based on a new earnings structure

meet the needs of customers, and use our comprehensive strength to make optimal proposals.

through major transformations from our current business structure. Rather than simply

Representative Director, Executive Officer; President of General Sales H.Q.

Kimihisa SASAKI

purchasing and selling products, this involves transforming to a system that strengthens

Organization of the General Sales H.Q.

the development of original products, engineering services, green businesses, etc., andwhich allows for the provision of total solutions. Furthermore, instead of simply extending

Board of Directors

existing businesses, we will also launch businesses with new earnings structures, such

General Sales H.Q.
Logistics Construction
Security
Corporate Sales
DigitalPlanning Supervision Export Control Marketing Statistics Transformation GRB Dept.*
Dept.
Dept.
Dept.
Dept.
Dept. Strategy Dept.

believe that the realization of this will require both values that will not change as well as
values that should be changed.
One unchanging value of the Company is our corporate philosophy of “pioneering,”
which has been handed down successively from our founder. The Company, in
addition to gradually expanding the range of products it sells from tools, which were

established strengths of the Company, and the provision of digital services that makestrengthen profitability. In order to strengthen profitability, we must reform our earnings
structure. While continuing our commitment to the usual product selling business, inaddition to product sales, it will be necessary to provide the high added value services
required by customers and the market, in other words, to offer both products andservices. Although we have only recently started initiatives such as our entry into thePower Purchase Agreement (PPA) business, the strengthening of engineering skills forautomation and labor savings, as well as the launch of a service sales platformworld, not just within Japan.
In addition, without overlooking any changes with respect to our customers andOsaka, Tokyo, Kitakanto/Tohoku,
Nagoya, Kyusyu, Hiroshimabusiness, we would like to change our values in order to produce new value to realize
the 2030 vision.

sold at the time of its founding, to machine tools, housing equipment and general
consumer goods, has expanded its sales area for production equipment around the

6 regional H.Q. in Japan

Towards the Realization of“CROSSING YAMAZEN 2024”

TFS Div. H.Q.

Home Products Division H.Q.

Management Plan”), which was formulated by backcasting from our 2030 vision. We

General Sales Headquarters to improve corporate value, it is essential that we

Building Materials Division H.Q.

management plan “CROSSING YAMAZEN 2024” (hereinafter, “New Medium-Term

to provide added value to customers, through real individual strengths, which are theIndustrial Tools &Equipment Division H.Q.

Based on our new purpose and vision, we have started our new medium-term

The “digital integration strategy” aims to differentiate ourselves from the competition, andbusiness of purchasing products and selling them to generate profit. In order for the

Machine Tools
Division H.Q.

Values That Will Not Change andValues That Should Be Changed

as businesses using recurring billing.

use of these strengths. We aim to analyze the transaction data obtained through productsales websites and service sales websites such as “Yamazen Bizcom,” which waslaunched in May 2022 for the Home Products Division Headquarters, as well as“next-generation B2B websites,” etc., designed for the Industrial Tools & Equipment
Division Headquarters, use the analysis results in the development of new products, andimprove the efficiency and sophistication of marketing through the use of the knowledge
obtained from the data. At the same time, we will also promote the improved productivityof business processes through upgrading our integrated core systems and theintroduction of AI / RPA / EDI, as well as the strengthening of personnel management

4 regional H.Q. overseas

through the introduction of a new human resources system.

North America, Taiwan,
China, ASEAN

Production Equipment
Business

Consumer Goods
Business* Green Recovery Business Dept.

To Our Stakeholders

markets, we have cultivated businesses and markets while constantly responding to

The essence of “CROSSING” is to improve our “comprehensive strength.” We are aiming tochanges, including the development of original products, entering into the environmental

create new value that cannot be provided by an individual division headquarters alone throughbusiness, and launching e-commerce websites. Through these activities, employees

CROSSING between division headquarters and affiliated companies. We believe that there arehave fully honed their “individual ability” to think for themselves and act as “independent

three important concepts and actions for this, namely always thinking from the customer’sand virtuous employees.” We believe that this corporate philosophy, which has been

perspective, thinking about the optimal solutions for the needs of our customers, andhanded down from our past leaders, is a core competence that must be passed on

furthermore, thinking about company-wide optimization rather than individualized optimization.

As company-wide business strategies aimed at realizing the corporate vision, we have“pioneering.” By supporting such employees through the General Sales Headquarters, weforever, including to the employees who will join the Company in the future.

The operating results of the Company based on management accounting are recorded by

the “close customer relationship strategy,” “transformation strategy,” and “digital

aim to be a company where there is an outpouring of various ideas from the workplaces.

On the other hand, what should be changed are the values accompanying our typicaldivision headquarters and department. However, if we continue to follow this approach, it will

integration strategy.”

37 INTEGRATED REPORT 2022

Three Business Strategies Towards theRealization of Our Corporate Vision

We are aware that the role of the General Sales Headquarters is to thoroughly strengthen
our earnings capabilities. By fully implementing the three business strategies at sites, wewill strengthen our stable sources of profit for the future, and in addition, will obtain newsources of profit, which will contribute to improved corporate value. The Company has alarge number of employees who are enthusiastic about the corporate philosophy of

INTEGRATED REPORT 2022

38

Business Portfolio

Machine Tools Division H.Q.

We will realize the strengthening andexpansion of the Yamazen ecosystem*,and will aim to become a division
headquarters that is useful to customers.

Main Policy

Major Measures

Close customer relationship strategy
Executive Officer; President of
Machine Tools Division H.Q.

Katsuhiko
NAMARI

Grow together with users, manufacturers, andbusiness partners to pioneer new value centered on
the improvement of user satisfaction. Our company willlead the growth of the entire ecosystem by providing
high value added solutions for customer issues.

Transformation strategy
Aim to break away from low added value sales of the usual
product sales, and shift to high added value sales that combine
products and services into sets that solve customer issues.

Strengths

・Sales capabilities that can identify and solve customer issues
・The ability to attract customers to exhibitions, seminars, etc., and a network of personal contacts
・A sales system that provides courteous and flexible services, and responds to customer needs
・Various types of data and business know-how obtained from business operations over a long period of time

Opportunities

・Expansion of the market for electrification-related parts, such as batteries, motors, and inverters, due to the shift to electric vehicles (EVs)・Growth in new product technologies, such as 3D printers and IoT・Increase in demand for energy-saving replacements in response to climate change
・Strong need for automation due to labor shortages

YamazenEnhance proposal making capacity(1) Improve user satisfaction

Vision for 2030

Background: Smart manufacturing industry
Automotive industry transformation(2) Shift to engineering trading company

Users
Domestic users
Largecompanies

as for improved productivity, automation, responses to climate change,

Other growth industries

Business
partners

Small andmedium-sizedcompanies
Semiconductors

will shift to a business model that directly incorporates user needs, such

Automobiles

In order to accelerate and expand the business of the ecosystem, we

Food, medicine, cosmetics

Background: Smart manufacturing industry

・Proposal of complex machine tool layouts that aresuited to customer needs
・Proposal of systems that enable thesynchronization of machine tools
・Expansion of lineup of green products that realize
decarbonization for customers

Expand green
product lineup

・Increased orders for green products

Digital integration strategy
Utilize internal digital data and customer
operation data from new services to improve
internal efficiency as well as to improve
productivity across our customers’ value chains.

Build a data-driven
sales system

・Strengthening of “zenassist+” content
・Strengthening of internal data infrastructure・Strengthening the foundation for the sharing ofsales knowledge
・Optimization of behavior management

portal website “zenassist+,” as well as at exhibitions, seminars, etc.
In our shift to an engineering trading company, we will increase sales of packages
that include software for synchronizing multiple devices, and will provide support

・Changes in the balance of power due to the restructuring of manufacturers
・Intensified competition due to the rise of price-competitive Asian manufacturers, particularly those from China
・Postponement of active capital investment due to long delivery time frames for machinery, high raw material prices, labor shortages, and other uncertainties

Manufacturers

・Support of business partners for creating user proposals

Shift to engineering
trading company

Growth Strategy Towards 2030

・Decrease in metal processing related to internal combustion engine manufacturing due to the shift to electric vehicles (EVs)

Risks

・Enhancement of the content of solutions for user issues

Improve user
satisfaction

Customer datacollection platform* Ecosystem: Refers to the business ecosystem of groups that share the same interests as the Yamazen Machine Tools Division Headquarters. An integrated group of users, manufacturers, business partners, system integrators, etc.

Qualitative Objectives

At present, we are encountering dramatic changes in the market environment,

for user automation. In order to realize this, we aim to raise the level of ourincluding the slowing growth of the automobile internal combustion engine partsin-house technology, and to strengthen our partnerships with system integrators.

market, the rapid expansion of the electric vehicle (EV) parts market, sudden

As we increase the number of green products, we will enhance our lineup ofchanges in semiconductor supply and demand, as well as the response to ESGs.

machines with a high level of energy savings in order to support users’ ESG

In order to realize the growth and expansion of the entire ecosystem that theinitiatives. To achieve this, we aim to build a data-driven sales system that makes

Company is aiming for, we will enhance the platform for providing information touse of information from SAP and SFA business negotiations, as well as customer

users, while strengthening our existing sales channels, in order to improvedata. Furthermore, in addition to our typical machine tool sales, we will launchcustomer satisfaction. Specifically, we will maximize satisfaction by expanding the

new services that make use of our network, and will develop them as new pillars

scope of information provided on our comprehensive manufacturing supportof business.

TOPIC

In May 2021, we entered into a sales collaboration agreement with the aluminum cutting firm HILLTOP
Corporation. HILLTOP Corporation is a company that has strengths in the provision of a wide variety of

etc. (1), and will aim to resolve issues through advanced proposal

aluminum machined parts with a short delivery time, and has developed “COMlogiQ,” a service for external

capabilities that make use of our engineering skills (2, 3). In conjunction

sales of systems that automatically generate machining programs, which is their area of expertise. This service

with this, we will establish a data infrastructure that enables us to(3) Expand green products(4) Customer data collection platform(5) Building a data-driven sales system

can significantly reduce the time spent on machining programs for machining users, and can contribute to theanticipate user needs (4), and through the accumulation of success andBackground: Growing demand for environmental
responsivenessBackground: Changes in value chain

Background: Improving productivity ofvalue chain

improved efficiency and productivity of production sites. In this way, we will continue to develop products andmanufacturers that directly solve user issues, and will realize a Yamazen that is even more useful to our

failure patterns, we will aim to realize data-driven sales activities that can
provide proposals with the appropriate content and timing (5).

39 INTEGRATED REPORT 2022

customers. (The image on the left is a “COMlogiQ”-compatible, 5-axis machine of Brother Industries, Ltd.)Web platforms

INTEGRATED REPORT 2022

40

Business Portfolio

Industrial Tools & Equipment Division H.Q.

We solve customer issues utilizing our
excellent engineering skills, solid distribution
base, and unique product appeal.
Director and Executive Officer;
President of Industrial Tools &Equipment Division H.Q.

Main Policy

Major Measures

Qualitative Objectives

Close customer relationship strategy

Next-generation B2B
catalog website

・Expand our distribution inventory and product database, create an online
catalog, and build a website in the next fiscal year in order to increase
online (including EDI) order amounts (rates) as soon as possible.

Strengthen expertise・Strengthen our expertise in solutions. Strengthen specialist
education and assign specialist human resources.

Strengthen functions

・S trengthen engineering functions, such as construction, processing, system
integration, and maintenance. Establish the visualization and operations related to CO2
reductions at medium-sized manufacturers, and propose and execute reduction plans.

Strengthen productdevelopment

・Provide private-brand products and exclusive productsthat will contribute to the addition of user functions and the
reduction of costs, as well as provide new added value.

Build a data-driven
sales system

・Build a system that makes use of digital data, without
relying on individuals for knowledge regarding users
and products, to realize optimal proposals.

Consolidate standard andnon-standard operations

・Promote the specialization and automation of businesssystems, and the redistribution of human resources.

Realize win-win relationships by using our business
partners to understand the needs directly faced byusers, and presenting measures to resolve issues.

Kenji
GOSHI

Transformation strategy
Ensure that the Company possesses a total solutions
function, in addition to product sales, for the issues
directly faced by business partners and users, suchas those related to engineering and green businesses.

Digital integration strategy

Strengths

Opportunities

・Close relationships with leading manufacturers across a wide range of product fields
・The ability to broadly identify the needs of small and medium-sized enterprises and local users through our network of cutting tool wholesalers
・A real platform function that matches the needs of users and manufacturers (Doterai-ichi and other exhibitions)・A network of various construction companies and system integrators

・Strong need for automation due to labor shortages
・Global trends towards carbon neutrality
・Increased demands for the utilization of digital technologies such as EC, EDI, and traceability management

Realize improved productivity across the relevant
value chains through the digitalization of our own
services through the new website, as well as thedigitalization of business partner operations.

Growth Strategy Towards 2030

・Expansion of markets related to semiconductor manufacturing equipment due to strong demand for semiconductors

Risks

・As digitalization leads to a reduced distance between manufacturers and users, the value of providing information as a trading company decreases
・Emergence of e-commerce platforms that enter the trading area of cutting tool wholesalers
・Decrease in metal processing related to internal combustion engine manufacturing due to the shift to electric vehicles (EVs)・Shortage of successors and other business succession issues for small and medium-sized enterprises

Vision for 2030

Manufacturers

YamazenEnhance proposal making capacity(2) Enhanced specialization (industry / product categories)
Background: Smart manufacturing industry
Automotive industry transformation(3) Enhanced functionality

the incorporation of decarbonization in that industry, we aim to strengthen our expertise

Semiconductors

Business
partners

Small andmedium-sizedcompanies

Other growth industries

With regard to the conversion of the manufacturing industry to smart manufacturing andLargecompanies

Automobiles

platform (1), and to improve the productivity of value chains.

In conjunction with this, we will establish a data infrastructure that enables us toanticipate needs, accumulate success and failure patterns, and aim to realize data-

41 INTEGRATED REPORT 2022

know-how required for system upgrades by users. These packaged products facilitate

manufacturers, namely the conversion of manufacturing sites to smart manufacturinginitial introduction, and we make proposals that resolve the issues faced by each user.

sites, the need for a response to decarbonization, and the digitalization of value chains,

As specific examples, we provide “EYEbeGENESIS,” an AI-based image inspection

we will strengthen our distribution base by updating our next-generation B2B catalog

device that enables the automation of visual inspections through the use of new

website during FY2023, and will realize improved convenience for business partners

technology that AI can build with just a small amount of information and at a significant

and users, as well as improved productivity through digitalization.

cost reduction, as well as hold “Decarbonization Solutions Exhibitions” across JapanTo respond to user needs, which are becoming increasingly sophisticated, we will workfor exhibiting packages that support decarbonization management for small toto strengthen our specialization and functions by recruiting external human resources inmedium-sized manufacturers.

TOPIC

In September 2022, we launched the AI-based image inspection device “EYEbeGENESIS.” Equipped with thelatest third-generation AI, it facilitates decisions that are difficult with conventional algorithms, and through theaddition of a learning function, it has specifications that allow users to configure various settings and to improve
configuration, we have realized a significant cost reduction compared to conventional products on the market. In(4) Providing original products
Background: Increasing demand for cost reductionand environmental responsiveness(1) Providing an efficient
web platform
Background: Digitizing the value chain(5) Building a data-driven sales system
Background: Digitizing thevalue chain

the future, it is expected that image-based solutions will be used in various situations in society, and in the
manufacturing industry, growth of “image × automation” products will become a major trend due to the increasingneeds for automation and labor savings on a global level. By also proposing integration functions for peripheral

driven sales activities that can provide proposals with the appropriate content and timing
based on data (5).

We will develop and provide package solutions that include the equipment andIn order to provide solutions that solve the issues facing small to medium-sized

the capabilities without the support of engineers. Regarding the price, through our ingenuity in the equipment(2) and functions (3) in accordance with user needs, and in addition, provide original
products in response to the growing needs for cost reductions and the environment (4).

and strengthening partnerships with construction companies and system integrators.

Domestic users

Food, medicine, cosmetics

Background: Smart manufacturing industry
Growing demand for environmental responsivenessFor wholesale and product sales, we aim to improve efficiency through the online

Users

the cutting and measuring fields, forming specialist teams through professional training,equipment, including the Company’s robots, we will be able to provide optimal factory solutions for users.
Web platforms

INTEGRATED REPORT 2022

42

Business Portfolio

Overseas Production Equipment Business

Through “Made with YAMAZEN,”
we will accelerate worldwide
manufacturing that has been
supported by Made in Japan.

15
16Europe2 countries
2 businesslocationscountries and regions
overseas
local companies
overseas

65

overseasbusiness
locations

Main Policy
Close customer relationship strategy
Director and Executive Officer; Vice
President of General Sales H.Q.
(in charge of overseas business)Asia
11 countries
and regions
46 businesslocations

Koji
KISHIDA
North America
1 country
15 businesslocations

Build specialist systems for key industries, have an
in-depth understanding of customer needs, and utilize
digital data to provide optimal proposals and products.

Transformation strategy
Central andSouth America
1 country
2 businesslocations

Provide total solutions that resolve a wide range
of issues through engineering (services) andproducts (goods), etc., offering automation andenergy savings from upstream to downstream.

As of June 30, 2022

Digital integration strategy

Strengths

・Strategy of overseas bases with showroom functions
・Experience and know-how accumulated in the overseas business that has been cultivated over more than 60 years
・Abundant service capabilities through site-trained engineers・Superior technical proposals and sales capabilities that can handle the applications required by users

Opportunities

・Bold challenges in new fields that are not bound by existing markets, including entry into the booming semiconductor industry
・Entry into the automation and labor-saving business, which is increasing due to chronic labor shortages
・Changes in needs from the selling of products to the selling of services, and the need for advanced engineering functions
・M&A regarding overseas business partners where there are reports of succession issues

Risks

・Growth of overseas local business partners that make use of their geographical advantage and financial strength
・Decrease in metal processing that arises due to changes in the automobile market caused by the shift to electric vehicles (EVs)・Decline in the value and competitive advantage of Made in Japan due to improving quality of overseas manufacturers
・Disruptions of supply chains and other disadvantages arising from sudden fluctuations in exchange rates

Vision for 2030

In addition, we will build a “Global to Global” system that will allow us toprovide product groups and technical services branded with the name of aJapanese manufacturer to users in many countries around the world. Our

Identify “customers who should make purchases, productsthat should be sold, and the appropriate timing” from
customer behavior history, external information, etc., andrealize improved productivity through the use of digitalization.

Major Measures

Qualitative Objectives

Promote localizationof management

・Localization of sales / engineering / management / information business functionsin Taiwan, Shanghai, Shenzhen, Thailand, India, and the United States
・Expansion of the training system, and establishment of fair labor and remuneration systems
・Enhancement of local export management systems for security exports

Conduct geographic
expansion andrestructuring oftarget markets

・[Expansion]: Development of new areas based on potential for the future (Europe
also functions as a base for the collection of front-line information)・[Restructuring]: Review of the locations of bases (profitability / productivity)
・Review of the positioning of the Chinese market from the perspective of the expansion strategy
・Establishment of a global marketing team and related operations

Diversify markets
and business types

・Development of markets related to electric vehicles (EVs), medical care, aircraft,
semiconductors, electronics, and the 3Cs (computer-related equipment,
communication (mobile phones), and consumer electronics) at existing bases
・Development of products in line with diversification (metal-forming
machines, die-casting machines, molding machines, etc.)

Further enhancecooperation with
manufacturers

・As a measure for global manufacturers, the realization of strengthened solidarity with
manufacturers through the establishment of an overseas manufacturer advisory board
・Holding of a manufacturer / Yamazen joint overseas strategy meeting

Growth Strategy Towards 2030

new markets, something that has previously been led by overseas local subsidiaries. In
other words, we will match the needs and seeds in each region around the world, and willcontinue to provide new added value to users through the allocation of the optimal

We will promote the further improvement of our position as the world’s largest technology

resources to the optimal location, and in the optimal form (products and services). The

and trading company for production equipment business. Yamazen will further advance

execution of this with a sense of speed will absolutely require the promotion of localization

the business experience that it accumulated overseas over many years, and will continue

in a manner suitable for each country and region.

its presence in the center of the market in each country and region around the world. Our

In addition, we will actively approach the semiconductor manufacturing market in ouroverseas local subsidiaries and Japanese headquarters will work together to realize “ONEsearch for new business areas. We will make this a new pillar of our business in the near

YAMAZEN.”

future. We will actively procure from outside the Company the resources that are

In order to achieve this, we will firstly establish a global marketing team at thenecessary due to changes in the market but are not held by our company, and will create

headquarters, which will allow us to share both inside and outside Japan our approach to

new value by partnering with suppliers.

VOICE

YAMAZEN SPIRIT for Me

The Overseas Production Equipment Business will establish the Company’s

company will take the lead in supply chain management that can provide

position as the world’s largest “total solutions provider” technology trading

guidance amid this wave of increasing global uncertainty, and through “Madecompany that has “user-oriented sales” and “advanced engineering functions”

with YAMAZEN,” we will further strengthen worldwide manufacturing that has

up in past accomplishments we are always focused on growing our company for the future. This in itself is the character of our company,

with our global network. You can see that no matter the topic, Yamazen is

been supported by Made in Japan.

and can be said to be the YAMAZEN SPIRIT. I am proud to continue to be a part of this organization. We consider manufacturers andinvolved in manufacturing around the world.

In addition, we will continue to provide added value to users through theusers, who are our customers, to be our important partners. Gaining the trust of such partners is the source of our business. Since weSpecifically, we are aiming for “YAMAZEN everywhere in the world” through thethorough strengthening and deepening of the engineering skills that are

aggressive development of sales in Europe, which is expected to see growth inrequired for automation and labor savings. In addition, by continuing to search

the decarbonization business, and in emerging regions such as Africa and thefor new business areas, we will lead worldwide manufacturing with “YAMAZEN,

Middle East, which are gaining prominence as we enter a new era.

no matter what the product or service.”

43 INTEGRATED REPORT 2022

The interesting aspect and strength of Yamazen can be traced to the fact that it is not an owner-driven company. We do not depend on
an owner, but rather our employees themselves always aim to be number one based on their own intentions. Without becoming caught

are a multinational company, we have an abundance of cultural diversity. The unique stimulation and ideas that arise from this are
incredibly important in the modern age, where the globalization of business has become commonplace. It can be said that possessing alarge number of bases around the world means we have a precise compass. Yamazen’s strength comes from the ability to move
forward while identifying various indicators that help guide our path in this chaotic era that is full of uncertainties for tomorrow.

James Hansen
COO & Executive Vice President, North America
Regional Headquarters, YAMAZEN, INC.

INTEGRATED REPORT 2022

44

Business Portfolio

Building Materials Division H.Q.

We contribute to the realizationof enriching lifestyles and asustainable society.

Main Policy

Major Measures
Strategy by segment:

Close customer relationship strategy
Executive Officer; President of
Building Materials Division H.Q.

Kazuhiko
TORIGOE

Secure resources for the core sales businessthrough the establishment of a sales support
system, and strengthen relationships withcustomers with a focus on priority areas.

Classify all customers into segments, anduse data to propose sales strategies and to
make proposals with high added value

Strengthen the sales support system:
Strengthen the sales support system through the enhancement of
in-sales construction monitoring and cost estimation capabilities

Enhance the total support function:

Transformation strategy
Build a system that, through the strengthening ofengineering functions and the development of original
products and services, will allow us to make optimal
proposals that combine products and services.

Strengths

Opportunities

Risks

・National-level proposal sales system through the placement of sales bases and engineers in compliance with the Construction Business Act
・Top-class distribution levels in Japan for housing equipment, air-conditioning equipment, and smart energy equipment
・Construction network through the Yamazen Health and Safety Council, which is led by our company
・Organizational sales capabilities through builders covering wide areas, a business promotion team that specializes in mass retailers, and line sales

・All companies have started specific initiatives towards becoming carbon neutral
・Increased demand for replacements with energy-saving equipment owing to soaring electricity costs
・Acceleration of the review of residential performance due to the mandating of energy-saving standards for new homes
・Changes in the competitive environment due to the review of various trading partners caused by supply shortages

・Decrease in new home construction due to the declining birthrate and aging population
・Difficulties in product supply and soaring material prices due to infectious diseases, geopolitical risks, and depreciation of the yen
・Postponement of active capital investment due to uncertainties such as in relation to the COVID-19 pandemic, high raw material prices and labor shortages
・Restrained purchasing related to housing, renovations, and durable consumer goods due to soaring consumer prices and declining real wages

Vision for 2030

Manufacturers

Business
partners

YamazenSubusers

Users

New
construction Remodeling

Downstream development

Background: Shortage of construction personnel
and consolidation of business partners

business (1), for which market growth is expected, we will develop our

Downstream development

the reorganization of industry players due to the decrease in new housing
construction. In addition, we will prepare internal systems and(5) Inside sales / EC sales system in place
Upstream development

Background: Expanding needs to focus
on sales in new fields

Non-residential

business domains upstream and downstream (2, 3, 4) in conjunction with

Residential(4) Construction capabilities / logistics network in place

In addition to expanding the non-housing business and renovation(personalized) Develop(2) Establish housing sector market share
Background: Greater need for environmental
responsiveness, including ZEH

and estimates, construction management, various applications, andafter-sales maintenance, we aim to be a leading company that can make(3) Original product development / strengthen market development(1) Establish non-residential business

optimal proposals that combine the sale of both products and services.

Background: Greater need for environmental responsiveness
Diversification of living environment

Background: Non-residential sector’s
growing demand

45 INTEGRATED REPORT 2022

Create added value services:
Through internal crossing, we will discover new
business combinations to produce services with added
value that can be differentiated from the competition

Strengthen information communication abilities:

Digital integration strategy
Conduct efficient sales activities based on theuse of past sales results as well as thinking
and action history data. Connect “awareness”
to new business through data analysis.

Strengthen our ability to communicate information, such as promoting theuse of grants and subsidies, how to respond to legal amendments, etc.

Implement PDCA through the use of data:
Identify points from the huge volume of data that willlead to productivity improvements and increased
profitability, and implement the PDCA cycle

Growth Strategy Towards 2030

・All customers are categorized into segments,and optimal proposal activities are performed
for each segment through data analysis
・Construction of a system that allows our sales
staff to dedicate themselves to sales activities
・Able to be of further use to ourstakeholders through the enhancementof engineering functions・E stablishment of a development
system, and provision of products
and services with high added value
・Possession of proposal skills that allow
for a prompt response and that produce
a high level of customer satisfaction
・The next steps become clear,enabling us to provide services andproposals ahead of our competitors

provide a high level of heat insulation, energy savings, energy creation and storage,
design, etc. with an optimal cost balance, and with a focus on the strengthening of
the “ZePlus” business that makes proposals a step ahead of ZEH with an eye towards

Amid calls for carbon neutrality, large companies have established specialized

the mandating of compliance with energy-saving standards in 2025. In the non-departments and are conducting in-house awareness-raising activities, however, we

residential sector, we are focusing on supporting multiple efficiency improvements forhave heard that small to medium-sized enterprises are not well versed in the specificair, water, and heat through the use of grants, subsidies, and tax incentives, with a

responses that should be taken. The division headquarters, by refining the “energy-

focus on energy-saving proposals through the updating of air-conditioning equipment,saving proposal skills” that have been cultivated up to now and promoting the “Green

which is our specialty. In addition, we make use of the flexible ideas of our younger

Ball Project” with suppliers and customers, will support the visualization of global

employees to develop original products and services, with the goal of achieving

warming prevention activities. In the housing sector, we will create proposals thatsustainable growth together with our suppliers and customers.

Strengthen Develop

e-commerce functions (5) for the expansion of sales into new areas. By
strengthening and supplementing engineering functions such as design

Enhance the total support function, including planning anddesign, cost estimates, construction management, various
applications, after-sales maintenance, etc.

Qualitative Objectives

TOPIC

We launched the Smart Energy Promotion Dept. in April 2022 with the objective of providing a total support service for“self-consumption solar power generation.” As both large companies and small to medium-sized enterprises are searching forspecific measures towards achieving carbon neutrality, it is a specialist team that proposes optimal plans that meet the wishesof each company. As energy prices continue to increase at a fast rate, by installing storage batteries as a mechanism that isable to both reduce electricity costs and contribute to the environment, the number of customers positioned as the Company’s
targets of new value creation, such as use as a disaster prevention base in the region, has also increased. Large-scale projects
require complex meetings covering topics such as the use of subsidies and discussions with electric power companies,
however, we will promote proposals that lead to the maximization of customer satisfaction from a professional perspective.

INTEGRATED REPORT 2022

46

Business Portfolio

Home Products Division H.Q.

We provide value andreasonably priced products to all
customers, both B2C and B2B!
Director, Executive Officer;
President of Home Products
Division H.Q.

Naonori
NAKAYAMA

Main Policy

Major Measures

Qualitative Objectives

Close customer relationship strategy

Develop new channels and our
e-commerce website “Yamazen Bizcom”:

・The Company’s e-commerce
website “Yamazen Bizcom” operates
as one of the pillars of our business

Sales
channels

Maximize LTV* by building medium- tolong-term customer contact points,
with a focus on the Company’s
e-commerce websites of new channels.

Focus on expanding the website

Develop new customers (small and mediumsized enterprises, educational corporations, etc.):
Recruit dedicated staff, and develop new customers

Transformation strategy
Logistics

To significantly expand sales, complete an
immediate delivery structure and systemthrough efficient logistics throughout Japan.

Introduce logistics systems, andwarehouse expansion / systems:
Invest in logistics functions and systems that can handle
the sales (quantities) expected for 10 years from now

Establish the Marketing Office:Digital integration strategy

Strengths

Opportunities

Risks

・Diverse sales channels, such as mass retailers, home centers, mail order, and e-commerce (own websites and marketplace websites)
・Ability to make diverse proposals through the handling of both private-brand products and national-brand products
・Agile product development system that meets the needs of consumers
・Inventory stock and logistics system that can provide same-day shipping (winner of the Rakuten Asuraku Award in 2017, 2020, and 2021)

・Expansion of new consumption behavior of Generation Z
・Expansion of opportunities for product development due to the diversification of consumer needs
・Expansion of demand for corporate e-commerce purchase demand in response to labor shortages and business streamlining
・Expansion of e-commerce purchase demand in the elderly demographic

・Decline in consumption due to a shrinking domestic population and increased interest in saving and the sharing economy
・Pressure on earnings due to sudden exchange rate fluctuations (depreciation of the yen), increasing resource prices, and soaring logistics costs
・Changes from existing consumer purchasing channels due to technological innovation
・Reputational risk due to human rights and environmental issues within supply chains

Vision for 2030

Suppliers

YamazenIn the e-commerce market, which is seeing intensified competition, we willbuild solid in-house commerce (1). In addition, through Yamazen’s original
PB products, we provide the values of “making life more convenient andenriching” and “reasonable prices for such good products” to consumers(2), engage in product development and the expansion of promotions that
capture the needs of markets (3, 4), and enhance a logistics system that
supports an increase in product sales (5). In (2) in particular, the current
level of recognition of the Yamazen brand is around 70%*, however,through promotional activities in the future, we aim to increase our level ofrecognition to 95% in 2030, and at the same time, to further spread theawareness that “YAMAZEN products are of good value.”(3) Establish a data-driven productdevelopment system
Background: Responding to the ongoingdiversification of consumer
needs (including new era /ethical consumption trends)(2) Building / recognition of the
Yamazen home product brandBackground: PB products are provided by all players,
including EC and mass retailers.
Intensified competition increases theneed to establish a competitive
advantage through branding

Mass retailers /hardwarestoresUsers(5) Establish a logistics system

Consumers

Background: Need for an optimized logistics
system to accommodate new
product lines and sales channels

Corporations /Municipalities

EC / mail order(4) Shift to next generation promotion
Background: Responding to the diversification of promotional
activity, including new digital marketing efforts
and brick-and-mortar stores as exhibition spaces

Japan

Yamazen EC

Overseas(1) In-house to business commerce throughdevelopment of Yamazen Bizcom
Background: Intensifying competition in the
direct-to-consumer EC market due to theentry of new players including mass retailers

Product
development

Accurately understand the needs of customers
and consumers, and continue to provide
optimal products to markets, throughdigitalization of all transactions across channels.

Recruit marketing personnel to use internaland external data

Brand building:
Convey internally and externally the value provided
by the Home Products Division Headquarters・S ales to small to medium-sizedenterprises as well as toeducational corporations
・Strengthening of our logistics sites,
material handling, etc., and constructionof efficient logistics structures / systems
・Shift to marketing, productdevelopment, sales promotion
activities, etc. that utilize data
・Examination of building
Yamazen original brands* LTV (Life Time Value) indicates the profit that can be earned from a customer over the course of a lifetime.

Growth Strategy Towards 2030

In order to acquire corporate demand (B2B), we launched our e-commerce
website “Yamazen Bizcom” in May 2022. Our targets are mainly small to
medium-sized enterprises and educational corporations, and we are increasing

We aim to further improve Yamazen’s original PB products. We plan to place aour direct contact points with customers. In particular, we hope to contributeperson in charge of home appliances overseas in order to improve quality andto cost reductions and productivity improvements of small to medium-sized

to increase the speed of development. In addition, we established theenterprises, etc. We are also focusing on product development for B2B.

Marketing Office this fiscal year and will promote product development andIn addition, we are rebuilding our logistics system. In order to achieve this, wesales promotion activities that make use of data. Furthermore, through the useare proceeding with the introduction of the Company’s WMS (Warehouseof social media and the updating of product websites, we aim to improve

Management System) at all logistics sites, a review of the placement and size

services for consumers and to increase brand recognition.

of our sites, and automation of material handling.

TOPIC

Over the past few years, we have focused on the development of Yamazen original PB products, with cooking
appliances being a product category that we have strengthened. The “reduced smoke meat grill” that we launched inJuly 2020 has been very well received due to its function of reducing smoke by around 70%, meeting the needs ofconsumers wishing to enjoy their “time at home” during the COVID-19 pandemic. We have also released the second
and third editions of the “reduced smoke meat grill,” and in addition to being featured in television commercials, theseproducts have been covered by various media outlets, leading to them becoming products that have contributed tothe improvement of the YAMAZEN brand. In the future as well, in order to continue the development of products thatmake “life more convenient and enriching,” we newly established the Marketing Office in April 2022, and arestrengthening product development from a more consumer-oriented perspective, through the utilization of data.

* According to research by NOVASELL INC.

47 INTEGRATED REPORT 2022

INTEGRATED REPORT 2022

48

Business Portfolio

CROSSING as a Sales Strategy

The Total Factory Solutions Division Headquarters (hereinafter, “TFS Div. H.Q.”), as a symbolic organization of“Doterai Ichi,” an exhibition and sales event for which the Company acts as secretary. The event is

CROSSING, partners with domestic group companies such as domestic business divisions as well as overseas
Case 1: TFS Div. H.Q.

Proposal of totalsolutions for
production sites

sponsored by local business partners, and is held with the cooperation of manufacturers. This exhibition

headquarters, and proposes total solutions for production sites, including in relation to automation. In addition,

Case 2: Doterai Ichi

and sales event, which is held with the “trinity” of business partners, manufacturers, and Yamazen, has

we have launched the “Yamazen FA / Sler Association,” an external network that is focused on external Sler,

A real platform forthe revitalizationof the regional
economya history extending across 40 years or more, and has permeating as a real platform for the revitalization

propose systems that are suited for a variety of uses, and endeavor to resolve our customers’ “problems.”
In order to strengthen our approach to the three product industry (food, medicine, and cosmetics) and thelogistics industry as our fields of particular focus, we have put together a dedicated team and are cultivating
new customers.
Yamazen FA / Sler Associationof the local economy. It has been well received by visitors as an event at which they can purchase
everything from machine tools to household appliances at special prices. Due to the impact of
COVID-19, a hold was placed on in person events, however the first in person event in three years washeld in 2022. 5,902 business partners and 42,546 manufacturers have participated since FY2009.

◎ 32 full member companies ◎ 19 associate member companies

Cooperating with external networks

Overseas Production Equipment Business

Overseas regional H.Q.

Domestic
Group Companies◎ 15 countries◎ OGAKI MACHINE&TOOLS CO., LTD.

◎ 16 local companies◎ 65 business locations

TFS
Div. H.Q.
Cooperating withoverseas regional H.Q.

Machine
Tools
Division
H.Q.

Industrial
Building
Tools &
Materials
Equipment
Division H.Q. Division H.Q.

◎ TOHO INDUSTRIAL CO., LTD.

◎ ISHIHARA-GIKEN CO., LTD.
Cooperation withdomestic Group companies

1976

History of Doterai Ichi

View of the “76 Osaka Doterai
Ichi,” which was held in 1976

April 1975 - The first “Doterai Ichi” was held at the Nishinihon Yamazen
Logistics Center located in Higashiosaka-shi. At that time, the exhibition andsale event was a rare opportunity to “see, touch, and confirm,” and becamea major topic of discussion in the industry. The following year, the “76 Osaka

2022

Doterai Ichi” was held at the same venue, with the name of “Osaka”
Yamazen Group

incorporated into the event name, and orders to a value of ¥1.0 billion wereView of the “Osaka Doterai Ichi,”received. In October of that year, the “Autumn Osaka Doterai Ichi” event was

TOPIC
Establishing the “LABO” to further enhancevarious services associated with growing demand
for robot systems, from proposals to support
Yamazen has established an Engineering Support Dept. with theobjective of providing more specialized support to the salesorganization. The main duties of the department will be to provide(1) a robotics service, (2) support for the deployment of FA
facilities and associated parts and materials, (3) quality
management, and (4) an information dissemination service. This
team of highly experienced technical staff will work to resolve thevarious “problems” faced by those at manufacturing sites. The“LABO” is equipped with the latest collaborative robots fromvarious manufacturers, and is not only a space for conducting
pre-deployment tests, investigating feasibility, creating proposals,
enabling inspections, and providing demonstrations, but is also avenue for enabling users to experience the operation of the actual
equipment and a school for instructing operators. In addition, as
an engineering organization it is actively engaged in technicaldevelopment, including thatof peripheral equipment.
Going forward, we will build
even more closely
integrated solutions, andpromote automation andlabor-saving measures in a
In the “LABO,” highly experienced technical staff
wide range of industries.
conduct pre-deployment testing and feasibility studies

49 INTEGRATED REPORT 2022

which was held in 2022

held at the Osaka Trade Fair Center (known at the time as Asashiobashi).
This “Osaka Doterai Ichi” triggered “Doterai Ichi” to spread across Japan.

Exhibiting at “FOOMA Japan 2022”(international food exhibition)
The Company exhibited at “FOOMA Japan 2022” (hereinafter,“FOOMA”), which was held at Tokyo Big Sight for four days
between June 7 (Tuesday) and June 10 (Friday), 2022. Since
exhibiting for the first time at FOOMA 2021, we have received
many requests from the food industry for the automation of“boxing-up” processes. At this year’s exhibition, we
strengthened our lineup of products for “picking, packing, andpalletizing,” including mobile robot packagers, fully automatedweighing and packaging equipment, fully automated boxforming equipment, AI external inspection devices, andpalletizers. The TFS Div. H.Q. responded to customers
concerned about automation and labor-saving issues at foodindustry production sites by proposing systems, from packaging
to boxing-up to transportation, including collaborative robot
systems designed with safety in mind, and automated lines thatcan be implemented even where space is limited.

AI external inspection device and “TECHMAN” collaborative robot exhibited at “FOOMA
JAPAN 2022” (left) / Female sales staff responsible for collaborative robot sales (right)

VOICE
Doterai Ichi is a space for
networking with business partners
and educating employees
Masamitsu ISHIZAWA, Senior Managing Executive Officer,
NITTO KOHKI CO., LTD.

to the event, we receive many requests from business partners . This isa time when I really feel the close ties between ourselves and thebusiness partners . In addition, the Doterai Ichi contains all the elements
for marketing activity PDCA. Through the tripartite structure, which
fosters a sense of solidarity and relationships of trust between thebusiness partners, the manufacturers and Yamazen, we refine our ideasof how we can make Doterai Ichi a success, work together with

It is no exaggeration to say that the Company itself has grown alongsidebusiness partners on marketing activities aimed at users, and join our

the Doterai Ichi. I think we have exhibited at every event since its

strength to achieve our goals. Furthermore, we also listen to theinception. Its appeal lies in the fact that it is a large tradeshow attended

opinions of users, which leads to improvements in our products. To put

by many users, so one can expect attendance to generate results. We

it another way, it is both a space to educate employees in marketing

exhibited a variety of products, including couplers and pumps, but work

activities, and an important space for gathering hints for producttools for use in factories had the highest order rates of all our products.

development.

These are items that are difficult to understand without actually seeing,

I also believe that Doterai Ichi helps revitalize local economies andtouching, and operating for yourself, and you could say that it isindustries by supporting regional manufacturing through the sale ofprecisely “because this is Doterai Ichi that such products sell.”

products to users. Going forward, we at NITTO KOHKI will work in the

For business partners , it is kind of a “seasonal event,” so to speak, sosame spirit as business partners and Yamazen to ensure that this is amuch so that they build it into their annual schedules. As we get closer

trade show at which users always find new value.

INTEGRATED REPORT 2022

50

Management Team

Corporate GovernanceDirectors(as of June 29, 2022)

Apr. 1977 Joined the Company
Apr. 2011 Vice President; Vice President of Housing
Equipment & Materials Division H.Q.
Apr. 2012 Vice President; Vice President of Building
Materials Division H.Q. and General Manager
in charge of Higashi Nippon Region
Apr. 2013 Senior Vice President; President of Building
Materials Division H.Q. and General
Manager in charge of Nishi Nippon Region
Apr. 2014 Senior Vice President; President of
Building Materials Division H.Q.
Jun. 2014 Director and Senior Vice President
Apr. 2015 Managing Director and Senior Vice President
Apr. 2016 Director and Executive Officer; Presidentof Production Equipment
Apr. 2017 Representative Director, President &CEO (to present)

Representative Director /President / CEO

Yuji NAGAO

Director / Executive Officer / CIO / CFO /President of Corporate Administration H.Q.

Masamichi YAMAZOE

Director / Executive Officer / Vice
President of General Sales H.Q.

Koji KISHIDA

Representative Director / Executive
Officer / President of General Sales H.Q.

Kimihisa SASAKI

Apr. 1982 Joined the Company
Apr. 2015 Vice President; General Manager of Legal& Credit Department of Administration H.Q.
Apr. 2016 Corporate Officer; General Manager ofInternational Administration Departmentof Administration H.Q.
Apr. 2017 Corporate Officer; Vice President of
Administration H.Q. and General
Manager of International Administration
Department
Nov. 2017 Corporate Officer; President of
Administration H.Q.
Apr. 2018 Executive Officer; CFO
Jun. 2018 Director and Executive Officer
Apr. 2020 Director and Executive Officer; CIO,
President of Corporate Planning H.Q. and
CFO, President of Administration H.Q.
Oct. 2021 Director and Executive Officer, President ofCorporate Administration H.Q. (to present)

Director / Executive Officer / President ofIndustrial Tools & Equipment Division H.Q.

Kenji GOSHI

Apr. 1983 Joined the Company
Apr. 2016 Corporate Officer; Vice President of Machine Tools
Division H.Q. (in charge of overseas business),
General Manager of International Department andPresident of YAMAZEN (KOREA) LTD.
Oct. 2016 Corporate Officer; Vice President of Machine Tools
Division H.Q. (in charge of overseas business) and
President of YAMAZEN (KOREA) LTD.
Apr. 2018 Executive Officer; President of
Production Equipment Business H.Q.
Jun. 2018 Director and Executive Officer
Apr. 2020 Director and Executive Officer; Vice President ofGeneral Sales H.Q. (in charge of overseas
business) and General Manager of the International
Department, Machine Tools Division H.Q.
Apr. 2021 Director and Executive Officer; Vice President ofGeneral Sales H.Q. (in charge of overseas business);
President of Total Factory Solutions Division H.Q.
and General Manager of the International
Department, Machine Tools Division H.Q.
Oct. 2021 Director and Executive Officer; Vice President ofGeneral Sales H.Q. (in charge of overseas business)
Apr. 2022 Director and Executive Officer; Vice President of General
Sales H.Q. (in charge of overseas business) (to present)

Director / Executive Officer / Presidentof Home Products Division H.Q.

Naonori NAKAYAMA

Apr. 1980 Joined the Company
Apr. 2013 Vice President; Vice President of Osaka
Regional H.Q.
Apr. 2015 Senior Vice President
Apr. 2016 Corporate Officer
Apr. 2017 Executive Officer; President of Osaka
Regional H.Q.
Jun. 2017 Director and Executive Officer
Apr. 2018 Director and Executive Officer; Presidentof Osaka Regional H.Q.
Jun. 2019 Resigned as Director
Executive Officer
Apr. 2020 Executive Officer; President of General
Sales H.Q. (to present)
Jun. 2020 Director
Apr. 2021 Representative Director (to present)

Apr. 1982 Joined the Company
Apr. 2013 Vice President; General Manager of Planning
Department, Marketing Administrative Divisionof Industrial Tools & Equipment Division H.Q.
Apr. 2014 Vice President; Vice President of Industrial Tools & Equipment
Division H.Q., President of Marketing Administrative Division
and General Manager of Planning Department
Apr. 2016 Corporate Officer; Vice President of Industrial Tools& Equipment Division H.Q. (in charge of Japan),
General Manager of Strategy Administrative
Division of Production Equipment and General
Manager of Business Promotion Department
Apr. 2017 Executive Officer; CIO, President of Corporate
Planning H.Q. and General Manager of Strategy
Administrative Division of Production Equipment
Jun. 2017 Director and Executive Officer
Apr. 2018 Director and Executive Officer; Presidentof Corporate Planning H.Q.
Apr. 2020 Director and Executive Officer; President of Industrial
Tools & Equipment Division H.Q. (to present)
Apr. 1987 Joined the Company
Apr. 2015 Vice President; General Manager of Sales
Division, Home Products Division H.Q.
Apr. 2016 Corporate Officer; Vice President ofHome Products Division H.Q. andGeneral Manager of Sales Division
Oct. 2017 Corporate Officer; Vice President ofHome Products Division H.Q. (in chargeof sales) and General Manager of Sales
Division 2
Apr. 2018 Corporate Officer; President of Home
Products Division H.Q.
Apr. 2021 Executive Officer; President of Home
Products Division H.Q.
Apr. 2022 Executive Officer; President of Home
Products Division H.Q. (to present)
Jun. 2022 Director (to present)

Outside Director

Atsuko SUZUKI

Director (Full-time Audit andSupervisory Committee Member

Satoshi MURAI

Apr. 1986 Joined Matsushita Electric Industrial Co., Ltd.
(currently Panasonic Holdings Corporation)
Apr. 2008 Director and Manager of the CSR Office(resigned in December 2014)
Apr. 2010 Outside Director and Auditor, Nara
Women’s University (resigned in
December 2012)
Jan. 2015 Joined Asahi Breweries, Ltd.
Apr. 2015 Manager of the Social Environment
Department
Oct. 2015 Manager of the Sustainability Promotion
Section, Olympic/Paralympic Promotion
Headquarters (concurrently held)
Apr. 2017 Director and General Manager of the CSR
Division of Asahi Group Holdings, Ltd.
May 2019 Resigned from Asahi Breweries, Ltd.
Jun. 2020 Outside Director of the Company (topresent)

Outside Director

Hirohiko SUMIDA

Apr. 1981 Joined the Company
Apr. 2014 Vice President; General Manager ofTokyo Administration Department of
Administration H.Q.
Apr. 2017 Corporate Officer; Vice President of
Administration H.Q. (stationed in Tokyo)
and General Manager of Tokyo
Administration Department
Oct. 2017 Corporate Officer; Vice President of
Administration H.Q. and General
Manager of Human Resources
Department
Apr. 2019 Corporate Officer; Vice President of
Administration H.Q.
Jun. 2019 Director (Audit and Supervisory
Committee Member) (to present)

Outside Director (Audit andSupervisory Committee Member)Feb. 1991 Joined Mitsubishi Corporation
Jan. 2003 General Manager of Strategic IT Planning andSolution Business Unit, Living Essentials Group
Apr. 2008 CIO of Living Essentials GroupFeb. 2011 Joined Toyo Kohan Co., Ltd.
Apr. 2011 Executive Officer, Chief and General
Manager of President’s office
Apr. 2012 Executive Officer, Chief of Strategic Planning Division andGeneral Manager of Business Development Department
Jun. 2012 Director
Apr. 2013 Director and Executive Officer, Chief ofStrategic Planning DivisionJun. 2014 Representative Director and President
Jun. 2014 Corporate Officer of Toyo Seikan Group Holdings, Ltd.
Jun. 2018 Director, Toyo Kohan Co., Ltd. (resigned in March 2022)
Jun. 2018 Executive Vice President and Director, Toyo SeikanGroup Holdings, Ltd. (resigned in June 2022)
Jun. 2022 Outside Director of the Company (to present)
Apr. 1995 Joined Chuo Audit Corporation(Renamed to Misuzu Audit Corporationin September 2006)
Apr. 1998 Registered as Certified Public
Accountant
Jul. 2007 Resigned from Misuzu Audit Corporation
Aug. 2007 Representative Director and Partner of
ASUKA Consulting INC. (to present)
Representative of Yoshinori TSUDA CPA
Office (to present)
Jun. 2013 Outside Audit & Supervisory Board
Member of the Company
Jun. 2016 Outside Director (Audit and Supervisory
Committee Member) (to present)

Yoshinori TSUDA

Apr. 1994 Graduated from the Supreme Court
Legal Training and Research Institute
Registered with Osaka Bar Association
Joined Chuo Sogo Law Office, P.C.
(currently Chuo Sogo Law Office, P.C.)(to present)
Apr. 2006 Registered as attorney in the state of
New York
Apr. 2008 Part-time lecturer at the Graduate
School of Law / Faculty of Law, Kyoto
University
Jun. 2021 Outside Director (Audit and Supervisory
Committee Member) (to present)
Outside Director (Audit andSupervisory Committee Member)

Naoko NAKATSUKASA

Skill Matrix
Skills (Knowledge, Experience, Capabilities, Etc.)

Position in the
Company

Name

GeneralManagement

Sales andMarketingGlobalRepresentative Director,
President & CEO

Yuji NAGAO

〇

〇

〇

Representative Director

Kimihisa SASAKI〇〇

Director

Masamichi YAMAZOE〇

Director

Kenji GOSHI〇〇

Director

Koji KISHIDA

〇

〇

〇

Naonori NAKAYAMA

〇

〇

〇

Director

Finance andAccounting

Legal and Risk
Management

Personnel and Human
Resource Development

ESG andSustainability

〇

〇

〇
〇

〇

〇

〇
〇

Position in the
Company

Skills (Knowledge, Experience, Capabilities, Etc.)
Name

Outside Director

Atsuko SUZUKI

Outside Director

Hirohiko SUMIDA

Director Full-time Audit andSupervisory Committee Member

Satoshi MURAI

Outside Director Audit andSupervisory Committee Member

Yoshinori TSUDA

Outside Director Audit andSupervisory Committee Member

Naoko NAKATSUKASA

GeneralManagement

Sales andMarketingGlobal〇〇〇Finance andAccounting

Legal and Risk
Management

Personnel and Human
Resource Development

〇
〇

〇
〇
〇

〇

ESG andSustainability〇〇〇* The skill matrix does not represent all of the knowledge of each Director.

51 INTEGRATED REPORT 2022

INTEGRATED REPORT 2022

52

Corporate Governance System

Corporate Governance

Basic Approach to Corporate GovernanceCommittee consists of at least three Directors, selected by a resolution of the Board of

mainly execute the core business for which they are responsible, but as members of the

Directors, of whom a majority are independent outside Directors. The chairperson of the

Executive Committee they have a responsibility for the overall management of theCommittee is selected by a resolution of the Committee from among those Committee

Company that transcends the duties of which they are in charge.

The Company recognizes that improving the fairness and transparency of management, and maintaining and enhancing a business management structure that is able to respond precisely and promptly to changes inmembers who are independent outside Directors. Note that this is not a legally mandated

Full-time Officers: managers nominated by the Executive Committee as individuals withthe business environment, is the most important issue that it faces. With the aim of establishing a business entity that is widely trusted and supported by society, and for which society has great expectations, theCommittee.

a high level of insight or expertise in specific geographical areas or specialist fields, who

Company and Group companies have set up various committees to promote CSR (Corporate Social Responsibility) activities. In addition, it has stipulated the “Yamazen Group Corporate Activity Charter,” and is[Accounting Auditor]

serve for a period of one year. Together with the Corporate Officers, they form thebuilding a corporate governance system that not only performs crisis management and ensures compliance with laws and regulations but that is also capable of meeting the trust placed in it by society. (As of June 29, 2022)

For further details, please refer to the Securities Report and the Corporate Governance Report.
│

Securities Report│ https://www.yamazen.co.jp/archives/001/202206/ce0b70a37b9ad5ef7a41cd4f46840a481d40c47664f5a4c219741032437b6b96.pdf (only in Japanese)│ Corporate Governance Report │ https://www2.jpx.co.jp/disc/80510/140120220531565402.pdf (only in Japanese)

Overview of Corporate Governance System
With the aim of strengthening Board of Directors functions for supervising management and of speeding up decision-making, the Company has adopted a company with an Audit and Supervisory Committee, whereby an Audit andSupervisory Committee consisting of three Directors who are Audit and Supervisory Committee Members (including two who are Outside Directors) works to audit and supervise the execution of duties by the Board of Directors.

[Board of Directors]

Election / Dismissal

Cooperation

Audit & Supervisory Committee Members.

Audit and Supervisory

Audit /
Supervision

Consultation

Directors(Excluding Audit and Supervisory
Committee Members)(Of which, 2 Outside Directors)

Committee

Furthermore, pursuant to the provisions of item 6, Paragraph 13 of Article 399 of the Companies

Board of Directors

Directors (Audit and Supervisory Committee Members) (Of which, 2 Outside Directors)

Act, the Board of Directors has delegated certain important matters of business execution to theThrough attendance at the monthly meetings of the Board of Directors and its own audit
activities, the Audit and Supervisory Committee audits and supervises the legality of executionof duties by Directors, as well as the reasonableness and appropriateness of its decisionmaking and management judgments.

Selection /Dismissal /Supervision

Representative Director
and President

Various committees
regarding CSR promotion
activities

Executive Committee
Management Meeting• Environment Committee• Disclosure Committee• Investment & Loan Committee• Export Control Committee• Risk-Management Committee, etc.

Business divisions
Staff divisions
Affiliated domestic andoverseas companies

Compliance Committee[Audit and Supervisory Committee]

Internal Audit Dept.

Discussion andreporting ofimportant matters

Internal audit

Internal Control Committee

and Audit and Supervisory Committee Members exercise their audit and functions.

Cooperation

Instruction / Report

Executive Committee are submitted to the Board of Directors, thus ensuring that outside Directors

Accounting Auditors

Representative Director and President. Comprehensive reports on matters determined by the

Cooperation

ReportNomination and Remuneration Committee

Committee Members) was 11, of which four were outside Directors, with two of these four being

supervisory functions, in other matters the Company seeks to speed up decision-making by thequarterly review services.

[Executive Committee][System for the Execution of Business]

In accordance with the management policy and management objectives, etc. of the Company, thisBy separating roles and responsibilities into supervision of management (monitoring) andbody deliberates and determines basic and important matters relating to the execution of theexecution of business (management) in order to enhance the flexibility of management, theCompany’s business, and is attended by the Representative Directors and Corporate Officers.

Company has introduced a Corporate Officer system. With the aim of strengthening “earnings[Management Meeting]capabilities” and “productivity,” the Company has also introduced a full-time officer structure as

This is held on a monthly basis as a body for the submission of reports related to execution of

its unique system for senior management.

business, exchanging information, and other activities, and is attended by Representative(Overview of Corporate Officer and Full-time Officer Structure)

Directors, Corporate Officers, Full-time Officers, and Full-time Audit and Supervisory Committee

Corporate Officers: managers nominated by the Board of Directors and tasked withMembers.

Election / Dismissal

Management Supervision

Securities Report submitted on June 29, 2022 (including Directors who are Audit and Supervisoryenhancing deliberations of highly important items by the Board of Directors and strengthening its

serving concurrently as Directors), and the number of Full-time Officers was 19.

Basic Policy on Remuneration For Directors and Other Officers

General Meeting of Shareholders
Election / Dismissal

Directors make up one-third of the Directors of the Company. The number of Directors in theCommittee composed of the all Representative Directors and Corporate Officers. With the aim ofcharge. As of June 29, 2022, the number of Corporate Officers was 12 (including six

provisions of the Financial Instruments and Exchange Act, audits of the internal control system, andChart of governance structure

management matters, and supervise the execution of business. In order to ensure theRepresentative Director and President, conditional on a decision being obtained from an Executive

Management Meeting, and have responsibility for executing the duties of which they are in

executing the core business of the Company, who serve for a period of one year. They

The Board of Directors meets on a monthly basis in order to make decisions on important
effectiveness of the Board of Directors supervisory function, as a rule, independent outside

The Company has appointed Deloitte Touche Tohmatsu LLC to perform accounting auditor audits
pursuant to the provisions of the Companies Act, audits of the financial statements pursuant to theBased on the Company having designated further increases in corporate value as an importantfactors. The proportions of each are based on levels at competitors, etc., and in the event that the

management issue, and its belief that further improvements in corporate value should be sought,reference value for consolidated ordinary profit is fully achieved, “fixed remuneration would be

the Company’s basic policy on remuneration, etc. for Directors (excluding Directors who are Audit

60-70%” and “performance-linked remuneration 30%-40% (with monetary remuneration accounting

and Supervisory Committee Members; hereinafter the same shall apply), is to maintain a

for approximately 80% and non-monetary remuneration accounting for approximately 20%).”remuneration structure that raises awareness of the need to contribute to increases in corporate[Fixed Remuneration]

value and improve corporate performance not only from a short-term perspective but over the“Regular remuneration (monetary remuneration)” consists of “basic remuneration,” “representative

medium to long-term.

remuneration,” “director remuneration,” and “remuneration for duties,” with reference levels for eachRemuneration, etc. for Directors consists of an appropriate combination of a set amount of “fixed

position set out in the Internal Regulations for Directors. Regular remuneration is paid at a set time

remuneration” of fixed amount, and “performance-linked remuneration” in which the amounts paid

every month.

vary in accordance with performance and other factors. In this way, the Company aims to secure[Performance-linked remuneration]competent personnel, generate an incentive to improve corporate value, and build a remuneration

The Company’s performance-linked remuneration consists of “bonuses (monetary remuneration),”system that works to increase corporate value further.

which is short-term incentive remuneration that varies in accordance with corporate performance“Performance-linked remuneration” is not paid to outside Directors.

for each fiscal year and other factors, and “share-based remuneration (non-monetary

Remuneration, etc. for Directors of the Company is decided in accordance with the Policy on

remuneration),” which is medium to long-term incentive remuneration, such as shares, etc. of theDetermining Director’s Remuneration, etc. and associated procedures, with the Board of Directors

Company paid after retirement from the position of Director.

taking into account corporate performance, the scale of the business and various other factors

The indicator used for performance-linked remuneration is “consolidated ordinary profit,” which isduring the process of determining the amounts involved.

used to evaluate the Group earnings power, and enables the contributions of Directors of theCompany to the overall management to be measured.

Accounting audit

Composition of Remuneration for Directors and Other Officers

・Bonuses (monetary remuneration)

The Nominating and Remuneration Committee deliberates on matters related to the nominating

Remuneration, etc. for Directors consists of a “fixed amount” of fixed amount and “performance-

The amount paid is determined on a number-of-months-payable basis in accordance withand remuneration of Directors and others, and submits reports to the Board of Directors. The

linked remuneration” in which the amounts paid vary in accordance with performance and other“consolidated ordinary profit, etc.” set out in the Internal Regulations for Directors. This

[Nominating and Remuneration Committee]

53 INTEGRATED REPORT 2022

Execution of Business

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54

Corporate GovernanceCorporate Governance System

remuneration is paid at a time every year.

Company converted at the market price, granted through this trust to Directors in accordance with・Share-based remuneration (non-monetary remuneration)

performance-linked bonuses for Directors and other officers and “consolidated ordinary profit, etc.”

Under this remuneration system, funds provided by the Company are used to acquire shares of theset out in the Share Benefit Regulations for Directors and other officers.

Company through a trust, with shares of the Company, and money equivalent to shares of the

As a rule, Directors shall receive the Company’s shares, etc. upon retirement.

Initiatives to Enhance the Effectiveness of the Board of Directors■ Based on analysis of the results of the questionnaire survey and related deliberations by the Board of

Overview of initiatives■ As a means of enhancing the effectiveness of the Board of Directors, since 2017 the Company has

FY2021 Total amount of remuneration, etc.
Directors and other officers
category

Total amount of
remuneration, etc.
(millions of yen)

Directors* Excluding Audit and Supervisory
Committee Members and outside Directors.

Directors(Audit and Supervisory Committee Members)

implemented an annual questionnaire survey of the effectiveness of the Board of Directors,

Total amount of remuneration, etc. by type (millions of yen)
Number of eligible Directors
Fixed remuneration
Performance-linked remunerationand other officers
Regular remuneration (monetary remuneration) Bonuses (monetary remuneration) Share-based remuneration (non-monetary remuneration)

320

227

93

–

6

27

18

8

–

1

26

26

–

–

5

* Excluding outside Directors.

Outside Director

Corporate Governance Functions and Roles Fulfilled by Outside Directors
The Company has appointed four outside Directors. These include two Directors
who are Audit and Supervisory Committee Members.

questionnaire survey, and countermeasures are formulated and implemented with the aim of

Details of criteria and policy relating to independence
from the Company when appointing outside Directors

expectations appropriately, and to be ensuring its own effectiveness.
■ Moreover, based on the results of the questionnaire survey, the following issues were recognized as
issues to be given priority going forward◎ Approach to shareholders (including institutional and individual investors) and dissemination of
information

improving the effectiveness of the Board of Directors.
■ The Board of Directors of the Company plans to continue these self-assessments going forward in■ The main process is implemented as follows.

◎ Formulation and execution of training plans for Directors and other officers◎ Formulation and implementation of plans for meetings to exchange opinions with outside Directors

Status of measures implemented to address issues recognized in the past

Implementation process■ In response to issues recognized in previously implemented questionnaire surveys on theeffectiveness of the Board of Directors, we have implemented the following matters with the aim of

Plan

Do

Check

ActionStudy countermeasuresand schedule them

Implement
countermeasures

Evaluate effectivenessof implementation

Analyze / Evaluate /Recognize issues

improving effectiveness.

Issue recognized

Evaluation of the effectiveness of the Board of Directors for FY2021■ The questionnaire survey on the effectiveness of the Board of Directors for FY2021 was implemented

Measures implemented to address issue

Appropriate discussions on the

Established the Nominating andnominating and remuneration of Directors

Remuneration Committee

Discussions from a medium to long-term

Created more opportunities to share

perspective on the medium to long-term

information, such as by implementing

vision, sustainability and other mattersregular meetings to exchange opinions

Formulation and implementation of training

Implementation of web-based training forplans for Directors and other officers

Directors and other officers

During the selection process, a pool of candidates whose independence can be ensured is created within March 2022 by an external agency so as to improve the transparency of the evaluation. The mainreference to various regulations concerning independence, such as the regulations, etc. of the Tokyo

questions were as follows.

Atsuko SUZUKI possesses abundant experience and broad insight into strategic

Stock Exchange. After comprehensive consideration of each person’s experience, expertise, character,◎Functions and roles of the Board of Directors / composition and scale of the Board of Directors /CSR/ESG development aimed at bolstering a company’s social standing, namely ininsight, and other attributes, individuals are selected based on their ability to speak and act appropriately inAppropriateness of items for resolution

・Board of Directors Regulations reviewed and revised

the form of past experience promoting diversity, formulating CSR policy andoperation of the Board of Directors / cooperation with audit bodies / relationship with outsideby the Board of Directors (ensuring

・Annual schedule for Board of Directors drawn up

ways that enhance functions for the supervision and oversight of the Company’s management.

Directors / relationship with shareholders and investors

sufficient time for discussion)・Revision of method for reporting to Board of Directors

Reason for appointment

promoting ESG strategy at other companies. Her active advice at meetings of theBoard of Directors offers an independent perspective separate from management
involved in execution of business, helping to tie CSR activities into the Company’sbusiness operations, and further enhancing the corporate governance of the Group.
Hirohiko SUMIDA possesses keen insight and abundant experience
gained through his service as a representative director and president at

Hirohiko
SUMIDA■ In addition, issues to be given priority are determined based on the issues derived from theorder to enhance its functioning.

Notes:
1. As a result of performance in the fiscal year under review, performance-linked share-based remuneration did not occur and thus no amount is recorded above for share-based remuneration.
2. In accordance with a resolution of the Board of Directors passed at a meeting held on November 10, 2021, a Nominating and Remuneration Committee was established as a non-legally mandatory advisory body.
Bonuses in the fiscal year under review were determined after being reviewed by this committee.

AtsukoSUZUKI

conducting analysis and evaluation of the results.

Directors, the Board of Directors was analyzed and assessed to be fulfilling its roles and meeting

Cooperation between supervision or audits by outside Directors andinternal audits, audits by the Audit and Supervisory Committee andaccounting audits, and relationship with internal control departments

another company, in addition to which he has wide-ranging insights into

Outside Directors who are Audit and Supervisory Committee Members receive advance explanations, at

IT. The Company judges that his pertinent advice on matters concerning

the Audit and Supervisory Committee, of Board of Directors resolutions and important matters reported tothe overall management of the Company will improve the effectivenessof the decision-making and supervisory functions of the Board of

Basic Approach to Internal Control Systems and Status
of Implementation

the Board of Directors, as well as receiving reports on the content of the Management Meeting and other

Directors, and further enhance the corporate governance of the Group.

important meetings attended by Full-time Audit and Supervisory Committee Members, and conduct audit

The Company accepts that, in an increasingly global and diversified business environment, internal control and compliance are important management

Yoshinori TSUDA possesses expertise and professional ethics

and supervisory functions by exchanging information and opinions with Accounting Auditors and theissues, to which end it has set up an “Internal Control Committee.” It also believes that in order to establish a “business entity that is widely trusted andformed as a certified public accountant, and a wealth of experience

Internal Audit Department.

supported by society, and for which society has great expectations,” it is essential that the Company engage proactively and consistently in CSR initiatives.

In order to ensure correct statements and behavior, the Company has also designated the Corporate

With the aim of rolling out specific and effective activities for thoroughly instilling this policy within the Group, it has set up a Compliance Committee.

Yoshinori
as an outside auditor at other companies. Based on this, he
TSUDA
provides suitable advice on ensuring the appropriateness offinancial statements and auditing in general.

Planning Department as the contact point for the appropriate and timely exchange of information, which is

Naoko NAKATSUKASA possesses expertise and professional ethics

carried out after outside Directors have fully understood resolutions by the Board of Directors and reports

form as an attorney-at-law and a wealth of experience as an outsideof important matters. Moreover, the Company provides detailed explanations in advance of Board of

Naoko
director and outside auditor at other companies. Based on this, she
NAKATSUKASA
provides valuable advice and appropriate audits and supervision indeliberations on proposals at meetings of the Board of Directors.

Directors resolutions and reported matters, as well as enabling cooperation with relevant departments, asnecessary. Furthermore, the Audit and Supervisory Committee cooperates as appropriate with the

For details of the status of implementation, see the Corporate Governance Report on the corporate website.
│ Corporate website│ https://www.yamazen.co.jp/english/ir/governance.html│ Corporate Governance Report │ https://www2.jpx.co.jp/disc/80510/140120220531565402.pdf (only in Japanese)

Corporate Administration H.Q. to enhance the effectiveness of audit and supervisory functions.
55 INTEGRATED REPORT 2022

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Corporate GovernanceCorporate Governance System

Addressing Business Risk

Corporate Governance

The Group operates Production Equipment Business and Consumer Goods Business both in Japan and overseas, and faces a variety of risks. Of these,

Building a corporate governancesystem that considers a wide
range of stakeholders

the main risks that are considered to have a potentially material impact on investment decisions are the following. The Group has put in place required risk
management systems, and reviews risks continuously. The issue of whether appropriate policies have been formulated and executed to counter theserisks is evaluated by the Board of Directors etc., and in this way it works to avoid the occurrence of risks and to respond appropriately to emerging risks.

Important risks and their countermeasures

Independent outside Director

Major risk category
Risk subcategory

Risk details

Interview with outside Director

Atsuko SUZUKI

Measures to address risk

(1) Risks associated with business environment, etc.
a. Changes in business conditions● Significant changes in demand caused by trends in corporate attitudes tocapital investment and personal consumption● Pursue specialization to address diverse needs● Open up new markets by accelerating overseas expansion

b. Country risk

● Soaring procurement and distribution costs, as well as delays in supply of product,
arising from the situation in Russia and Ukraine and other political/social conditions● Obtain appropriate information on country riskc. Foreign exchange rate volatility● Major foreign exchange gains or losses caused by significant fluctuations in foreign exchange rates, anddeclines in sales caused by customers holding back from purchasing products handled by the Company● Implement forward exchange contracts and other measures for import/exporttransactions denominated in foreign currencies(2) Risks associated with operation of the business

Anticipating the Possibilities Presented by a “Manufacturing
Trading Company” That Is Useful to Many
I assumed office as an independent outside Director of Yamazen in June 2020. Due

a. Response to new business models● Expected results are not obtained from investment in the business● Implement measures based on business investment frameworkb. S ecuring and developing human resources● Difficulty in obtaining competent personnel due to the declining birthrate,
aging of the population, and the shrinking of the workforce● Draw up and execute strategies based on personnel management policy● Promote diversity, beginning with participation of women in the workplacec. Credit● Lines of credit to business partners both in Japan and overseas as a result of a variety of marketing activities● Default, etc. by business partners occurring as a result of unforeseen circumstances● Implement credit management based on internal management regulations

d. Product liability, etc.

● Significant costs following the occurrence of major recalls or productliabilities, and impairment of corporate brand value● S et out quality management regulations and establish Quality Management and Product Liability Committee● Take out product liability insurance● Establish Crisis Management Committee as a structure for use in times of emergency

idea of a trading company with strengths in manufacturing was very attractive to me.

● Leakage, falsification or loss of personal or corporate information as a resultof unauthorized access or other incidents● Opportunity losses and loss of social trust caused by systems-related suspension of operations● Formulation of information systems management regulations and information security regulations● Strengthen information security, put backup systems in place● Implement regular employee education

specialized trading company with particular expertise in the manufacturing domain,e. Information systems andinformation security risks(3) Other risks

partly to my previous career at a manufacturer, even before I assumed office I had been
painfully aware that there is added value in the process of delivering a product to thecustomer that is difficult for the manufacturer alone to realize. This is precisely why I was

After I assumed office, two points left a strong impression. The first was that, as a
Yamazen has an extraordinarily wide range of stakeholders, from multinational companies
that exemplify the global economy to small and medium-sized enterprises with close ties

● Establish Internal Control Committee and Compliance Committee● Formulate and abide by Yamazen Group Corporate Activity Charterto specific regions. The second was Yamazen’s thoroughly customer-oriented approach.

b. Share price fluctuations● Changes in share price based on fluctuations in market price of stocks held
● Impairment of Group’s pension asset value caused by stock market slump● Review all shareholdings on a regular basis to confirm the reasonableness ofmaintaining or reducing holdings

point that it has become systemic, with a focus on creating added value by being usefulc. Impairment losses on non-current assets● Recognition of necessary impairment losses arising from trends in theeconomic environment and a decline in economic value● Implement measures based on capital investment frameworkd. Natural disasters, epidemics, etc.

● Damage arising from large-scale natural disasters or pandemics● Delays in product delivery caused by supply chain interruptions● Suspension of major trade shows due to the spread of COVID-19● Promote countermeasures such as business continuity planning (BCP)● S upport the introduction of BCP throughout the supply chain (for small and medium-sized enterprises)● Use the Crisis Management Committee, etc. to implement initiatives to address change● Physical risks caused by natural disasters● Sales opportunity losses caused by strengthening of laws and regulations or supply chain regulations● Decline in social trust caused by insufficient engagement with social issues● Promote global diffusion of energy saving equipment● E nter the renewable energy business by establishing the Green Recovery Business (GRB) Dept.

e. Climate change risk

TOPIC

Initiatives to thoroughly instill compliance

The Company conducts a variety of compliance-related educational activities.“Compliance leaders” have been selected from each division
headquarters, regional headquarters, and group company, and in FY2022 an in-house lawyer implemented training for these individuals. Based on
this, after reflecting on the content of their own training, compliance leaders are themselves implementing compliance training for all group employees,
including those overseas.To ensure that the training is not just a formality, employees are required to think about and engage in it themselves.

57 INTEGRATED REPORT 2022

management about a view of the world that is focused on their own era,
about the gap that exists between such issues and the current situation, andabout what can be done to close it. I believe that the incorporation of specificstrategies and initiatives led to tremendous value being generated by theprocess itself. Now we are heading into the stage of putting this initiative into
practice, and what I want to see at any rate is highly effective engagement.

interested in Yamazen, which is a trading company that can provide added value, and the● Punishment by regulatory authorities, impairment of corporate brand value,and loss of social trust in the event of violations of official regulations● Infringement of official regulations in Japan and overseas caused by theenactment of new official regulations and other developmentsa. Complianceturn management ideas into reality, but to engage seriously withThis customer-oriented approach has been built into the front line of the business to theto the customer. This is a great example of “dedication to our customers.”
I believe that there are so many areas in which we can incorporate this value of “being
useful” based on flexible thinking, such as leveraging relationships with a wide range ofstakeholders in order to take on the challenge of building new value chains, or promoting
new investments in DX and green businesses. That is where I feel the tremendous
potential of the Yamazen Group.

High Marks for the Process of
Formulating the Purpose and Vision

Strengthening the External Governance System
for Capital Markets, etc. as an Urgent Issue
There are a number of stages of development in a government system, and based on
its thoroughly customer-oriented approach, Yamazen has put in place an appropriate
system of internal governance that is centered on governance with respect to customers
in particular. On the other hand, I think it is fair to say that the Company has only justbegun the process of building a system of governance to address external factors, suchas capital markets.
There was a time when the mainstream approach was that customer value equaled
corporate value, but this is an era in which sustainable growth cannot be expected if acompany is unable to build appropriate relationships with many stakeholders, including
society, the global environment, employees, and shareholders. Solid engagement withcapital markets is also an important element of this.
Going forward, it will be even more important to enter into dialogue with capital markets
about Yamazen’s intangible strengths, such as its investment strategy, its strategy for
new businesses, and its promotion of fostering personnel. That is because these are thewellspring of Yamazen’s earnings capabilities, and the foundation for sustainable

In April 2022, Yamazen established its purpose and vision. My sense is thatgrowth.

these were carefully drawn up, and I also give high marks to the process of

As a first step towards building an external governance system, I think the publishing of

consideration that created them. That is because many of those responsible

the Company’s first integrated report, with a focus on the things that we wanted capitalfor the next generation were closely involved in that process.

markets to know and understand about Yamazen, had special significance. I expect thisI feel that those responsible for the next generation should not only work to

to lead to new dialogues with many stakeholders, beginning with capital markets.
INTEGRATED REPORT 2022

58

Data Section

Most Recent 11 Years of Financial Data

Most Recent 11 Years of Financial Data
Medium-Term Management Plan

(Millions of yen)

FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

66th

67th

68th

69th

70th

71st

72nd

73rd

74th

75th

76th

VISTA - 3S

Amazing Act 2015

ONEXT YAMAZEN 2018

CROSSING YAMAZEN 2021

Consolidated operating results (by fiscal year)
Net sales

372,830

370,338

395,249

435,803447,774

447,698

497,963526,364

472,191

434,744

501,872

Gross profit

47,57147,03150,20856,08157,542

57,906

63,516

69,62663,301

62,67272,738Operating profit

10,528

9,756

9,562

13,13013,258

13,113

15,383

17,997

12,091

11,234

17,133

Ordinary profit

11,155

10,351

9,838

13,33013,503

12,931

15,152

17,85911,895

11,20917,093

Profit attributable to owners of parent

4,933

6,249

5,515

5,851

9,192

8,518

10,205

12,184

8,088

7,572

12,023

Consolidated cash flows (by fiscal year)
Basic operating cash flow*1

8,666

6,152

7,569

10,209

9,702

8,664

12,267

14,378

9,054

11,623

12,052

Cash flows from operating activities

5,005

10,027

9,677

12,575

10,465

8,248

8,001

9,306

13,39913,566

7,054

Cash flows from investing activities

283

143

(373)

422

1,534

(213)

2,223

(965)

(1,866)(3,911)(2,766)

Cash flows from financing activities(5,355)(5,005)(3,995)(5,260)(4,149)(5,324)(5,948)(5,808)(6,382)(5,062)

967

Free cash flow

5,288

10,171

9,304

12,997

11,9998,034

10,224

8,340

11,533

9,654

4,288

Total assets

157,560

160,178

179,088

200,301

208,404

219,598

246,923

245,595

230,320

245,937

282,654

Equity43,46751,39355,78564,962

67,27475,43584,36892,77095,056

107,155

112,741

Interest-bearing liabilities

5,609

3,450

2,516

267

5,784

5,671

5,521

5,119

4,974

4,768

14,681(18,748)(27,324)(34,593)(46,531)(47,541)(50,687)(55,154)(58,670)(63,411)(69,709)(66,472)

Net assets per share (yen)*3

463.43547.93594.75692.59717.25804.25891.87980.691,007.30

1,135.52

1,268.98

Earnings per share (yen)*3

52.60

66.63

58.80

62.38

98.01

90.82

107.79128.80

85.60

80.25

133.74

Dividends per share (yen)

15.00

15.00

15.00

20.00

30.00

30.00

32.50

36.00

30.00

20.00

35.00

Consolidated dividend payout ratio (%)

28.5

22.5

25.5

32.1

30.6

33.0

30.2

28.0

35.1

24.9

26.2

Return on assets (ROA, %)

7.4

6.5

5.8

7.0

6.6

6.0

6.5

7.3

5.0

4.7

6.5

Return on equity (ROE, %)

11.9

13.2

10.3

9.7

13.9

11.9

12.8

13.8

8.6

7.5

10.9

Equity ratio (%)

27.6

32.1

31.2

32.4

32.3

34.4

34.2

37.8

41.3

43.6

39.9

Net debt-to-equity ratio (DER, ×)

(0.4)

(0.5)

(0.6)

(0.7)

(0.7)

(0.7)

(0.7)

(0.6)

(0.7)

(0.7)

(0.6)

Consolidated financial position (as of the end of the fiscal year)

Net interest-bearing liabilities*2

Per-share information

Financial indicators*1 This indicator is calculated by deducting the change in working capital, etc. from cash flows from operating activities*2 This amount is calculated by deducting cash and cash equivalents from interest-bearing liabilities, including lease liabilities*3 This is calculated by deducting the number of treasury shares from the number of issued shares

59 INTEGRATED REPORT 2022

INTEGRATED REPORT 2022

60

Data Section

Non-financial Highlights

Item

Unit

CO2 emissions (Scope 1)

t-CO2

Hybrid vehicle implementation rate

FY2019%FY2020Graph

FY2021

–

2,819

2,411

83.0

87.0

88.0

CO2 emissions (Scope 2)

t-CO2

–

5,182

5,181

Power consumption

kWh–11,349,175

11,779,372

CO2 emissions arising from logistics

t-CO2

–

14,10015,907

t

213

171

197

Number of Green Ball projects participated inprojects

537

689

682

Amount of emissions reduced by Green Ball projects

t-CO2

39,83634,31940,701

Amount of waste produced

1

Graph

CO2 emissions

Graph 1CO2 emissions (Scope 1)

Graph 1CO2 emissions (Scope 2)CO2 emissions arising from logistics

Percentage of non-Japanese employees

Number of employees (non-consolidated)

Average years of service

Percentage of women in bulk of core human resources(next-generation management)

Percentage of persons with disabilities

Number of new graduates hired

Graph

Number of projects joined

Number of tons reduced(projects)
800(t-CO2)20,000689
Graph 1

14,10015,000

600

3,077

3,149

3,157

%

33.9

33.3

33.9

Total

1,711

1,736

1,712

Male

1,167

1,182

1,171

Female

544

554

541

Total

13.1

13.5

13.8

Male

15.4

15.6

15.8

Female

8.3

9.0

9.6

%

1.19

3.20

3.57

%

2.0

2.2

2.3

Total

106

91

59

Male

56

51

39

years

peopleFemale50

40

39,836

400

32

15

19

Male

24

12

18

Female

8

3

1

60.7

59.7

61.0

Total

31

46

52

Male

1

3

6

Female

30

43

46

%

97.0

100.0

92.0

people

109

113

121

Total

9

11

10

of which
Outsideof whichfemales

3

4

450,000

3,150

33.9

Percentage of non-Japanese employees

Percentage of paid leave taken

Number of employees taking parental leave

Percentage returning from parental leave
Cumulative number of students assisted by Takeo Yamamoto Scholarship Fund

Number of Directors

people%peoplepeople5,182

40,000

1

2

2

306

313

320

Remuneration for Directors who are Audit and Supervisory millions of yen
Committee Members (excluding Outside Directors)

24

24

27

Remuneration for Outside Directors

millions of yen

19

23

26

people

424

2,631

2,401

Number of employees receiving compliance training

61 INTEGRATED REPORT 2022

27.00

18.00

3,100

34,319

5,181
200

2,819

0

FY2019Graph

FY2020Graph 4

Male

0

FY2021

4

Female30,0003,050

20,000

3,000

9.00

2,411

FY2019

Graph

Male

Total

FY2020

FY2021

5

Graph

Number of employees taking
parental leave

Average years of service

FemaleFY2019FY20206

Total

Outside

15.4

15.8

10

46

50

15

9

13.1

13.5

13.8

10

9.0

9

40

31
46

30

8.3

Female

11

52
15.6

6

43

9.6

4

20

3

Graph 5Graph 7Graph

FY2020

FY2021

7

Cumulative number of students assisted
by Takeo Yamamoto Scholarship Fund

FY20196

3
FY2020TOPIC

FY2021

1
0

FY2019FY2020

FY2021

Takeo Yamamoto Commemorative Scholarship Fund

121

(people)120

113

Graph 6

110

0

2

2
1

FY2019

4

3

30

5

0

0

FY2021

Number of Directors(people)12(people)60(years)20

115

Remuneration for Directors (excluding Directors who are Audit millions of yen
and Supervisory Committee Members and Outside Directors)

3,157

3,149

10

Career-path hires

(%)
36.00

33.9

33.3

3,077

20

Total

(people)3,200

40,701
10,000Graph 3

peopleConsolidated number of employees(t-CO2)60,000682

537

Graph 2

people3

Consolidated number of employees /percentage of non-Japanese employees

15,9075,000

Number of employees (consolidated)

2

Number of Green Ball projects participated in /result in tons of reductions

109“I used my frustration at not being able to study enough, even though I wanted to, as wings for the business. I
want to encourage as many people as possible to study.” This fund, which carries on the wishes of the founder,

105

Takeo Yamamoto, was established in 1992. A cumulative total of 121 students have received scholarships fromthe fund, including those from Asia studying abroad, and are actively involved in various fields.
0

FY2019FY2020

FY2021

INTEGRATED REPORT 2022

62

Data Section

Consolidated Balance Sheets / Consolidated Statements of Income / Consolidated Statements of Comprehensive Income

Consolidated Balance Sheets

Consolidated Statements of Income

Consolidated Statements of Comprehensive Income(Millions of yen)

(Millions of yen)

(Millions of yen)

As of March 31,
2021

As of March 31,2022

As of March 31,
2021

AssetsLiabilities

Current assets

Current liabilities

Cash and deposits

63,73470,401

Notes and accounts receivable - trade86,607––

14,897

Notes receivable - trade

Gross profit

62,67272,738Valuation difference on available-for-sale securities

4,443

(968)

56,771

Selling, general and administrative expenses

51,43855,604

Deferred gains or losses on hedges

18

112

29

29

Operating profit

11,234

17,133Foreign currency translation adjustment

1,230

2,232

423

539

Remeasurements of defined benefit plans, net of tax

1,182

609

2,436

2,828

Total other comprehensive income

6,875

1,985

–

9,592

2,780

3,495

14,53014,102

32

32

9,901

6,525

127,749

148,933

12,000

Income taxes payable

Merchandise and finished goods

25,42536,819Contract liabilities

Other

3,837

7,530

Buildings and structures

Provision for bonuses
Provision for voluntary recall of goods
Other
Total current liabilities

8,211

7,809

Accumulated depreciation(4,128)(3,962)

Buildings and structures, net

4,082

3,847

Machinery, equipment and vehicles

497

590

Accumulated depreciation

(425)

(473)

Machinery, equipment and vehicles, net

71

116

Tools, furniture and fixtures

3,056

2,811

Retirement benefit liability

Accumulated depreciation(2,057)(1,940)Tools, furniture and fixtures, net

999

870

Land

3,717

3,696

Leased assets

5,398

5,599

(1,919)(2,243)

3,478

3,355

Accumulated depreciation
Leased assets, net
Other
Total property, plant and equipment
Intangible assets
Investment securities

Convertible-bond-type bonds with share acquisition rights

1,352

61

Dividend income

205

309

Comprehensive income

Subsidy income

178

80

Comprehensive income attributable to

Other

107

113

Comprehensive income attributable to owners of parent

14,438

13,9501,843

564

Comprehensive income attributable to non-controlling interests

92

152

1,774

277

Foreign exchange losses

65

288

27

37

1,867

604

11,20917,093

Total non-operating income

Interest expenses

10,040135

106

Lease liabilities

4,179

3,965

Other

Deferred tax liabilities

4,140

4,209

Total non-operating expenses

252

266

Other

1,849

1,764

Total non-current liabilities

10,55820,353Gain on sale of non-current assets

0

131

138,307169,286

Gain on sale of investment securities

106

627

Total extraordinary income

106

758

Loss on sale of non-current assets

0–Loss on retirement of non-current assets

10Loss on valuation of investment securities–

3

Loss on liquidation of subsidiaries

20

–

Other

–

0

Total extraordinary losses

21

4Profit before income taxes

11,294

17,847

Income taxes - current

3,590

5,307

Income taxes - deferred

48

422

Total income taxes

3,639

5,730

Profit7,654

12,117Long-term borrowings

Total liabilities
Net assets
Shareholders’ equity

977
12,864

Capital surplus

7,561

7,561

8,449

11,024Retained earnings

82,88792,545

Treasury shares(957)(6,957)

97,400101,058

Total shareholders’ equity

Ordinary profit
Extraordinary income

Extraordinary losses

749

16,336

Interest income–

13,09818,052Non-operating income

Non-operating expenses

Non-current liabilities

Share capital

Investments and other assets

7,909

7,909

Distressed receivables

78

72

Retirement benefit asset

1,977

4,460

326

335

Valuation difference on available-for-sale securities

8,891

7,922

Other

1,639

1,715

Deferred gains or losses on hedges

87

199

Allowance for doubtful accounts

(161)

(132)

Foreign currency translation adjustment

1,551

3,725

Total investments and other assets

21,91322,788Remeasurements of defined benefit plans

(774)

(165)

43,462

46,676

Deferred assets
Bond issuance costs

Total accumulated other comprehensive income

9,755

11,682–42

Non-controlling interests

474

626

Total deferred assets–

42

Total net assets

107,630

113,367

Profit attributable to non-controlling interests

81

93

245,937

282,654

Total liabilities and net assets

245,937

282,654

Profit attributable to owners of parent

7,572

12,023

Deferred tax assets

Total non-current assets

Total assets

63 INTEGRATED REPORT 2022

12,11751,531

12,000Property, plant and equipment

7,654Electronically recorded obligations - operating

Securities

Non-current assets

ProfitOther comprehensive income

Lease liabilities(411)

501,872
429,133

78,794

235,935

434,744
372,071

15,903(388)

Net sales

Fiscal year ended
March 31, 2022

Cost of sales–

202,475

Fiscal year ended
March 31, 2021

69,118

11,259Total current assets

Fiscal year ended
March 31, 2022

60,614

Electronically recorded monetary claims - operating

Allowance for doubtful accounts

Fiscal year ended
March 31, 2021

Notes and accounts payable - trade

Short-term borrowings

Accounts receivable - trade

As of March 31,
2022

Accumulated other comprehensive income

INTEGRATED REPORT 2022

64

Data Section

Consolidated Statements of Cash Flows

Organization / List of Overseas Offices

Data Section

Consolidated Statements of Cash Flows

Organization

List of Overseas Offices

As of October 31, 2022

As of June 30, 2022

(Millions of yen)

Fiscal year ended
March 31, 2021

Corporate Administration H.Q.

General Sales H.Q.

Tokyo Regional H.Q.
Kitakanto/Tohoku Regional H.Q.
Nagoya Regional H.Q.
Kyusyu Regional H.Q.

(42)
56
(1,000)
1,000
(234)
1,149
(7)
15
(402)
44
(4,178)456
374(2,766)

(178)
(438)
(29)
–
(2,268)(1,771)(0)(375)(5,062)926
5,518
68,385573
74,478

–
(457)
(29)
9,997
(1,841)(271)(6,006)
(423)
967
1,418
6,675
74,478–81,153ASEAN Regional Headquarters

YAMAZEN, INC.

YAMAZEN (THAILAND) CO., LTD.

(Chicago/United States)(Bangkok/Thailand)
Bangkok (Head Office), Pinthong, Korat, Yangon[Myanmar]

PLUSTECH INC.
(Chicago/United States)

YAMAZEN MEXICANA S.A. DE C.V.
(Silao/Mexico)
Silao (Head Office), San Luis Potosi

YAMAZEN VIET NAM CO., LTD.
(Ho Chi Minh/Vietnam)
Ho Chi Minh (Head Office), Hanoi, Hai Phong

YAMAZEN CO., LTD.

(Laguna/Philippines)

SOUZEN TRADING (SHENZHEN) CO., LTD.

YAMAZEN (SINGAPORE) PTE. LTD.
(Singapore)

YAMAZEN (MALAYSIA) SDN. BHD.
(Kuala Lumpur/Malaysia)
Kuala Lumpur (Head Office), Penang, Johor Bahru

PT. YAMAZEN INDONESIA

Total Factory Solutions Div. H.Q.

China Regional Headquarters

North America Regional H.Q.

YAMAZEN SHANGHAI TRADING CO., LTD.

Taiwan Regional H.Q.

Asean Regional H.Q.
Directly under the jurisdictionof the Head Office

Production Equipment
Business(Delhi/India)
Gurugram (Head Office), Chennai, Pune,
Bengaluru, Ahmedabad, Coimbatore

YAMAZEN MACHINERY &TOOLS PHILIPPINES INC.

(Shenzhen/China)
Shenzhen (Head Office), Kunshan

Hiroshima Regional H.Q.

YAMAZEN MACHINERY &TOOLS INDIA PRIVATE LTD.

Taiwan Regional Headquarters(Taipei/Taiwan)
Taipei (Head Office), Taichung, Chungli

China Regional H.Q.

(193)
329
(1,000)
–
(139)
165
(9)
19
(92)
55
(4,599)0
1,553(3,911)

North American Regional Headquarters
Chicago (Head Office), Milwaukee, Indianapolis,
Cleveland, Cincinnati, Detroit, Hartford, Knoxville,
Los Angeles, Atlanta, Dallas, Phoenix, Fort Myers,
Philadelphia

Other Businesses

Osaka Regional H.Q.

Home Products Division H.Q.

Building Materials Division H.Q.

17,847
2,028
344
(3)
646
18
(1,971)
(370)
277
(110)
(627)
3
0
(131)
(10,555)(10,538)
12,6802,348
11,889(4,834)
7,054

Industrial Tools &Equipment Division H.Q.

65 INTEGRATED REPORT 2022

11,294
2,054
620
(148)
338
(371)
9
(1,557)
1,774
17
(106)
–
1
(0)
2,125
2,302
(2,869)184
15,670(2,104)
13,566

Board of Directors

Machine Tools
Division H.Q.

Cash flows from operating activities
Profit before income taxes
Depreciation
Retirement benefit expenses
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in other provisions
Increase (decrease) in retirement benefit liability
Decrease (increase) in retirement benefit asset
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on sale of investment securities
Loss (gain) on valuation of investment securities
Loss on retirement of property, plant and equipment and intangible assets
Loss (gain) on sale of property, plant and equipment and intangible assets
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Other, net
Subtotal
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of securities
Proceeds from redemption of securities
Purchase of investment securities
Proceeds from sale and redemption of investment securities
Loan advances
Proceeds from collection of loans receivable
Payments of other investments
Proceeds from collection of other investments
Purchase of property, plant and equipment and intangible assets
Proceeds from sale of property, plant and equipment and intangible assets
Interest and dividends received
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Repayments of lease liabilities
Repayments of long-term borrowings
Proceeds from issuance of convertible-bond-type bonds with share acquisition rights
Dividends paid
Interest paid
Purchase of treasury shares
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents resulting from inclusion of subsidiaries in consolidation
Cash and cash equivalents at end of period

Fiscal year ended
March 31, 2022

Overseas Network(Shanghai/China)
Shanghai (Head Office), Hangzhou, Ningbo, Wuxi,
Wuhu, Chongqing, Chengdu, Xi’an, Guilin, Dalian,
Shenyang, Changchun, Tianjin, Qingdao

Directly under the jurisdiction of the Head Office

YAMAZEN (SHENZHEN) TRADING CO., LTD.

(Seoul/South Korea)
Seoul (Head Office), Busan(Shenzhen/China)
Shenzhen (Head Office), Guangzhou, Wuhan,
Dongguan

Consumer Goods
Business(Jakarta/Indonesia)
Jakarta (Head Office), Cikarang

YAMAZEN (KOREA) LIMITEDYAMAZEN EUROPE GmbH
(Stuttgart/Germany)
Stuttgart (Head Office), Prague [Czech Republic](As of June 30, 2022)

YAMAZEN EUROPE GmbHGermany

YAMAZEN, INC.
PLUSTECH INC.

SOUZEN TRADING (SHENZHEN) CO., LTD.
YAMAZEN (SHENZHEN) TRADING CO., LTD.

Czech Republic
China

YAMAZEN MACHINERY &TOOLS INDIA PRIVATE LTD.

MyanmarIndia

YAMAZEN (THAILAND) CO., LTD.

ThailandSouth Korea

YAMAZEN (KOREA) LIMITEDYAMAZEN SHANGHAITRADING CO., LTD.

U.S.A.

TaiwanYAMAZEN CO., LTD.

VietnamMexicoPhilippines

YAMAZEN
MEXICANA
S.A. DE C.V.

YAMAZEN MACHINERY &TOOLS PHILIPPINES INC.

YAMAZEN (MALAYSIA)
SDN. BHD.

YAMAZEN VIET NAM CO., LTD.

YAMAZEN (SINGAPORE)
PTE. LTD.

PT. YAMAZEN INDONESIA

Local companies

Overseas business locations

INTEGRATED REPORT 2022

66

Data Section

Domestic Group Companies

Domestic Group Companies

Company Overview(including non-consolidated subsidiaries, as of October 31, 2022)

YAMAZEN LOGISTICS CO., LTD.

Company Overview / Investor Information

Data Section

YAMAZEN CREATE CO., LTD.

Name

Sales
officesEstablished May 30, 1947

Established in 1993 as a spin-off from the Company’s

Launched by spinning out the Company’s lifestyle

Merchandise Management Dept./Logistics Div., andgoods business and sales promotion business in 1992

began trading in April 1994. Leveraging the logistics

as an independent operation. In 2012, this merged withstrategy know-how that it has accumulated over the

another Yamazen Group company, Yamazen Sogo

years, and with logistics systems that can respond toa variety of needs, it will forge ahead as a “bestlogistics partner that is always of use to its customers.”

Sharecapital¥7,909 million (as of March 31, 2022)

Fiscal year

From April 1 to March 31 of thefollowing year

locations)

Osaka Corporate 2-3-16 Itachibori, Nishi-ku,
Headquarters
Osaka 550-8660

Mizuho Bank, Ltd., Resona Bank,
Limited, Sumitomo Mitsui Banking
Corporation, MUFG Bank, Ltd.,
Mizuho Trust & Banking Co., Ltd.

Number of
3,157 (consolidated, as of March 31, 2022)
employees

Headquarter
Taiyo Seimei Shinagawa
location
Tokyo Corporate
Building, 2-16-2 Konan,
Headquarters
Minato-ku, Tokyo 108-8217

Stock exchange Tokyo Stock Exchange Primeon which listed Market

2-3-16 Itachibori, Nishi-ku, Osaka
550-8660, Japan

management, insurance, and leasing business, andhas formed an extremely unusual corporate foundation.

Head
OfficeNikken building F4, 2-1-9 Itachibori,
Nishi-ku, Osaka 550-0012, Japan

Status of Shares

TOHO INDUSTRIAL CO., LTD.

(as of March 31, 2022)

Total number of shares authorized

200,000,000 shares

Total number of issued shares

95,305,435 shares
5,062

Number of shareholders

Established in 1946. Became a member of

Established in 1959. Became a member of

the Group in 2005. While it handles a wide

the Group in 2017. Toho Industrial has anvariety of merchandise as a trading company

extensive track record and a high-levelspecializing in machines and tools, unusuallyexpertise in energy-saving technology, which

maintains an in-house service function.

Main
banks

Service Co., Ltd., to add a comprehensive building
Head
OfficeOGAKI MACHINE&TOOLS CO., LTD.

for a cutting tool trading company it also

Osaka, Tokyo, Kita Kanto / Tohoku (Saitama),
Nagoya, Kyushu (Fukuoka), Hiroshima, others
Domestic: 53 locations
Overseas: 16 local subsidiaries (65

YAMAZEN CORPORATION

Head
Office1-25 Kanda-cho, Ogaki City, Gifu
503-8513, Japan

it uses to help resolve technical issues related
to customers production lines and facilities.

Distribution of shares by type of owner
Individual / Other

Head
OfficeFinancial institutions
Other domestic
corporations
Foreign corporations, etc.

95,3056861-9 Morijyo, Imuro, Asa-cho,
Asakita-ku, Hiroshima 731-1142,
Japan

thousand shares

Securities companies
Treasury shares

ISHIHARA-GIKEN CO., LTD.

33,414 thousand shares[35.09%]24,768 thousand shares[25.98%]
16,770 thousand shares[17.59%]13,546 thousand shares[14.21%]524 thousand shares[0.54%]
6,281 thousand shares[6.59%]TRAVEL TOPIA INC.

Major shareholders
Number of shares held Percentage of shares held

Shareholder name(thousand shares)(%)

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

11,318

12.71

Yamazen Business Partners Shareholders' Association

8,993

10.10

Tokyo Yamazen Business Partners Shareholders' Association

6,078

6.82

Yamazen Employees' Investment Association

3,208

3.60

Custody Bank of Japan, Ltd. (Account in Trust)

2,555

2.87

Nagoya Yamazen Business Partners Shareholders' Association

2,297

2.58

Mizuho Bank, Ltd.

2,290

2.57

Resona Bank, Limited.

2,146

2.41

Hiroshima Yamazen Business Partners Shareholders' Association

1,556

1.74

Kyushu Yamazen Business Partners Shareholders' Association

1,400

1.57

Notes:
1. The Company owns 6,281,874 treasury shares, but these have been excluded from the list of major
shareholders.The 6,281,874 treasury shares do not include 180,000 shares held by the Board Benefit Trust(BBT).
2. The percentage of shares held is calculated after excluding 6,281,874 treasury shares.
3. The number of shares shown omits units of less than 1,000 shares.

Shareholder Notes
Established in 1974. Became a member of the Group in 1991. A

Established in 1977. Became a member of

the traveler’s point of view, and pays great attention to theinvolved in factory automation systems suchmanufacturing and installation.

arranging inspections, training, invitations and other events, Travel
Head
Office2500-4 Moro, Kanuma City, Tochigi
322-0026, Japan

Topia’s strengths include company trips that motivate employees,
and as a travel agency specialized in the manufacturing industry it

Head
OfficeNikken building F7, 2-1-9 Itachibori,
Nishi-ku, Osaka 550-0012, Japan

seeks to resolve customers’ issues through the power of travel.

PROCUEbyNET CORPORATION

From April 1 to March 31 of the following year
Notification
methodRecord date for dividends of surplus March 31 (for interim dividends, September 30)“ingredients” and “production” of the travel experience. In addition toas conveyor machinery and automatic lines.
It is engaged in everything from design to

Fiscal year

company that always places great importance on seeing things fromthe Group in 2019. An engineering company

Annual General Meeting of Shareholders Late June
Number of shares per unit 100

Administrator of theMizuho Trust & Banking Co., Ltd.
register of shareholders 1-3-3 Marunouchi, Chiyoda-ku, Tokyo

Stock exchange on which listed Tokyo Stock Exchange Prime Market

NIHON BUTSURYU SHINBUN CO., LTD.

In electronic form, through publication on the corporatewebsite at https://www.yamazen.co.jp/. (only in Japanese)(However, in cases where it becomes impossible to use
electronic notification, notification shall be made through thepages of the Nihon Keizai Shimbun.)Share Price Over Time
Stock price (yen)1,400

7,000,000

1,200

6,000,000

1,000

5,000,000

With a focus on its two specialist newspapers of “Monozukuri

800

4,000,000(manufacturing)” and “Jutaku & Kurashi Bunya (housing & living field),”600

3,000,000

covering the production equipment and consumer goods industries400

2,000,000

200

1,000,000

In 1955 it launched the “Kikai Kigu Shinbun (Machinery and Appliances

Established as a joint venture with

Newspaper)” in tabloid format. Established as Nihon Kikai Kigu Shinbun

NICHIDEN Corporation in 2006.

Co., Ltd. in 1968. In 1971 the name was changed to the current name.

Operates the PROCUEbyNET
e-commerce site that provides MRO(supplies) merchandise for factories.
Head
Office2-3-16 Itachibori, Nishi-ku, Osaka
550-8660, Japan

respectively, it has contributed to the industrial sector for more than halfa century by delivering information fresh from the front line.

Head
OfficeNikken building F7, 2-1-9 Itachibori,
Nishi-ku, Osaka 550-0012, Japan00

Apr. 2012

67 INTEGRATED REPORT 2022

Trading volume (shares)

Apr. 2013

Apr. 2014

Apr. 2015

Apr. 2016

Apr. 2017

Apr. 2018

Apr. 2019

Apr. 2020

Apr. 2021

INTEGRATED REPORT 2022

68