GAMBARE!! JAPANESE MONODZUKURI「解 体 新 書」2 0 2 1Integrated Report

Integrated Report (this document)This report describes the process behindproviding value (value creation) to society
through our business.

Annual Securities Report
This report is prepared in accordance with
Article 24 of the Financial Instruments andExchange Act and is required to be submitted
to the Kanto Local Finance Bureau.

Corporate Governance Report
This report provides information about
TRUSCO's approaches and systems related
to corporate governance.

TRUSCO NAKAYAMA Corporation
Tokyo Head Office
TRUSCO Fiorito Bldg., 4-28-1, Shimbashi, Minato-ku, Tokyo 105-0004
Osaka Head Office
TRUSCO Glen Check Bldg., 1-34-15, Shinmachi, Nishi-ku, Osaka-shi, Osaka
550-0013

Published: August 2021
Editor and Chief: Atsushi Shimozu
General Manager ofCorporate Planning Division
Production Partner: Dai Nippon Printing Co., Ltd.
1,749 2,550 issues

Our Policy

Business must serve people and society

Corporate Message

GAMBARE!! JAPANESE MONODZUKURI

Logistic Centers Planet Saitama (Satte City, Saitama)
2

Integrated Report 2021

Common Sense Might Change
Our Principle Remain Unchanged- To become a company needed by both our customers and society We have built a unique system for the supply of professional tools since our founding with the aim of supporting Japanese manufacturing, “Monodzukuri,” through abusiness supplying PRO TOOL. As one of the last wholesalers in the industry, we
believe that the principle of business is to “deliver the products that our customers
need faster and more reliably than anywhere else,” and we have focused on improving the convenience of our customers.
In 2020, common sense has been turned upside down by the Covid-19 pandemic,
and we learned it became absurdity. However, our business principles have notchanged due to the pandemic. We believe that “unchanging principles” are “highconvenience,” “prompt and reliable delivery,” “abundant selection and inventory,”“reasonable prices,” “kindness, politeness, security,” and “digital power.” We
believe that these are the demands of the market that will never change, even if thetimes change.
We are at a time when our digital and mechanical technologies are being transformed as a result of Covid-19. This will lead to another industrial revolution. We
will continue to aim to be a company that is needed by our customers and society,keeping in mind that “common sense sometimes completely change, but the principles remain unchanged”.

President

Tetsuya Nakayama

Locations where stock
center constructionis planned
Integrated Report 2021

3

TRUSCO Integrated Report

Integrated Report 2021

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02
03
05

Distribution Strategy .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 32
Sales Strategy .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 38
Digital Service Strategy .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 44
Human Resources/Financial Strategy .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 50

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To Achieve “Our Ambitions” (Value Creation) 11
Business Flow
12.  .  .  .

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Be an Ultimate Master Wholesale(Management Policy).  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .

The Nakayama visually impaired welfare
foundation.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .

72

Corporate Data

Map of Bases .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 74
A Glance at TRUSCO Through Numbers.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 80
Results Data .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 82
History. .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 88

Integrated Report 2021

Cautionary Information Regarding
Forward-Looking Statements
This Integrated Report contains forward-looking statements
regarding our future plans, strategies, and performance.
These statements are based on our assumptions and plans
based on current information. It contains risks and uncertainties related to economic trends and market demand. Therefore, please be aware that planned and actual results may
differ, and that strategies may change.

Reference Guidelines· “Guidance on Integrated Disclosure and Dialog for Co-Creation” (Ministry of Economy, Trade and Industry)· “International Integrated Reporting Framework” (International Integrated Reporting Council (IIRC))◀ OPENA Company
With Assets

We must be able to secure company buildings, information systems, vehicles, and other important assets
without relying on others. Owning assets means thatthey remain after depreciation, so money is not wasted. Instead of aiming for short-term profits, we stick tobeing “a company with assets” in order to have a longterm perspective of improving corporate value and to
improve convenience for our customers. (See p.59)

Decisive
Management

It is also important to make a “quit” decision with pursuing our mission and value to society even in the growthof sales increase. Making a “quit” decision such as
the abolition of delivery receipts and draft has charged
things drastic. We will continue pursuing the core valueby always deeply looking at the essence of things.

OPEN ▶ Organizational Chart

Owning our own buildings allows us tostrengthen functionality(Planet Saitama Distribution Center)

Corporate Data

This Integrated Report cover TRUSCO's business operations
from January 1, 2020 to December 31, 2020.

Even the chefs at our recreational facilities are
regular employees at our company
TRUSCO Resort and Spa Hakone/Karuizawa(From left to right: Sous-chef Toshiro Sato, Head
Chef Taro Kinoshita, and Sous-chef Kan Iizuka)

The Nakayama
visually impaired
welfare foundation

We have published our first Integrated Report in the hopethat our investors, shareholders, and other stakeholders
will better understand our business and the process ofvalue creation. “GAMBARE!! JAPANESE MONODZUKURI” is our corporate message. In the Integrated Report, we emphasize and express the story behind our vision, which is to be a company that will continue to be ofservice to the manufacturing industry in Japan that always
provides the highest level of convenience. The sourceof competitiveness for an organization is its originality.
Therefore, we are building an original business model thatmakes full use of products, logistics, and digital technologies. We hope that this report will give you some insight
into our business and our approach to gaining a competitive advantage.

Emphasison Regular
Employment

We have a responsibility to provide workplaces
where staff members can work with stability andpeace of mind. We should not take away the goodness from people's lives even if doing so increases
profits. TRUSCO has no temporary employees. Parttime employees are limited to housewives, students,
and the elderly, while heads of households are hired
as full-time employees.

Building a distribution system by strengthening our wholesale operations

Relationships with
Stakeholders

Period Covered by the Report

Choosing majority solutions result in ordinary results.
This is because the will of the majority is not always
right.

Environmental
Efforts

Editorial Policy

Creativity inManagement

From the Top Message in FY2003

Corporate
Governance

4

21
22

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Corporate

Product Strategy.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .

Shushazentaku

Human Resources/
Governance andFinancialSocial Contributions

Helping People and Society- Value Creation Model - .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 14
Becoming the Company We Want to Be- Capability Target -.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 16
Thinking Outside the Box- A History of Value Creation - .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 18

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When you make a decision, you should ask yourself
whether it is right or wrong, good or bad, and always
choose what is right rather than focusing on whether
it is profitable. Making a decision based on whether itwill be profitable often results in a bad decision.

Digital Service

For the Embodiment of “TRUST COMPANY”(Corporate Governance and Social Contributions) 61
Corporate Governance
62
Environmental Efforts
68
Relationships with Stakeholders
69

Spirit of Management

Sales

Top Message
Organizational Chart .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .
Origin of the Corporate Name TRUSCO andSpirit of Management .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 09
Company Overview.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 10
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Company Earning Your Trust

Distribution

Our Policy

COMPANY

Products

Table of Contents

TRUST

Corporate
MissionOur company was founded as Nakayama Kiko Shokai in
1959 before it was incorporated as Nakayama Kiko Co.,
Ltd. in 1964.
The company then changed its name to TRUSCO
NAKAYAMA Corporation in 1994.
TRUSCO was coined from the words “Trust” and “Company” to convey our commitment to building a company
that earns trust.
This name demonstrates our corporate approach to earn
the trust of everyone we associate with in order to become a company that continues to grow in the future.

Value Creation

Origin of the Corporate Name TRUSCO

Top photo: Final note payable (August 2003)
Bottom photo: Final note receivable(December 2005)

Integrated Report 2021

9

President*1 Board Brain

Organizational Chart

At TRUSCO Nakayama, we call outside directors “Board Brains.” This term alludes to our hopethat they will provide advice and support based on their abundant experience and knowledge,
and contribute to the Company’s development.

As of July 1, 2021

AdvisorAdvisorTakashi Nakai

Born December 24, 1958
62 years old; 40 years and 3 months
at Trusco

Outside Director

Born January 16, 1955
66 years old; 43 years and 3 months at Trusco

Born November 15, 1949
71 years old

Born August 19, 1953
67 years old

Born March 5, 1962
59 years old

Career Summary
1978: Joined the Company
1996: Tokyo Branch Office Manager
1998: General Manager, Corporate Planning Department
1999: E xecutive Officer & Head of the
Corporate Planning Division
2003: Executive Officer & Head of the Corporate Planning Division
2004: Division Head, Distribution Dept.
2007: Executive Director & Division Head,
Product Division
2017: Senior Executive Director & General
Manager of the Business Management Department
2019: Senior Executive Director & Assistant to the President
2020: Advisor (present)

Career Summary
1975: Joined McKinsey & Company
1996: Founded ForeSight & Company
President (present)
2016: O utside Director of the Company(present)
2017: F ounded the Society for Problem
Solving Proficiency
Proficiency, Representative Director(present)

Career Summary
1976: ‌Joined Hagihara Industries Inc.
1984: ‌President of Hagihara Industries Inc.
2010: ‌President & CEO of Hagihara Industries Inc.
President & Executive Officer
2016: Chairman (present)
2016: ‌Outside Director of the Company(present)
2018: President of Toyo Heisei Polymer,
Co., Ltd. (present)
2020: ‌Representative Director of DyDo
GROUP HOLDINGS INC.
Outside Director of the Company(present)

Career Summary
1984: ‌Joined Nissan Motor Co., Ltd.
2001: ‌Joined LVJ Group K.K. (currently
Louis Vuitton Japan K.K.)
2009: ‌Representative Director, ShaldanCo., Ltd.
2010: Joined S.T.CORPORATION
2013: ‌Director, Representative Executive
Officer and President, S.T.CORPORATION (present)
Director, Shaldan Co., Ltd. (present)
2020: ‌Outside Director of the Company(present)

Advisors
We have established the position of Advisor. Advisors serve the purpose of advising executive
level managers based on their knowledge and experience. Although the mandatory retirement
age for our executives is 65, they can remain employed until the age of 70 if they so desire.

Outside Director
Board Brain(BB)*1
ForeSight & Company, Ltd.
President

Outside Director
Board Brain(BB)*1
Hagihara Industries Inc.
Chairman

Kenichi Saito

Kuniaki Hagihara

Career Summary
1981: Joined the Company
1984: Director
1987: Executive Director
1991: Representative Director
Senior Executive Director
1994: President (present)

General Meeting of
Shareholders

Board of Auditors Meeting

AuditorBoard of Directors Meeting
President

Born March 30, 1956
65 years old

Born January 3, 1958
63 years old

Born March 13, 1962
59 years old; 37 years and 3 months at Trusco

Born January 27, 1947
74 years old

Career Summary
1978: Joined Kyowa Bank, Ltd. (currently
Resona Holdings, Inc.)
2003: Chief Credit Officer of the Osaka No.
3 Loan Department, Resona Bank,
Ltd.
2007: Full-time Auditor of the Company(present)

Career Summary
1981: Joined Nomura Securities Co., Ltd.
2001: Head, IB Consulting Office, Nomura
Securities Co., Ltd.
2009: Managing Director of IB Business
Development Department, Nomura
Securities Co., Ltd.
2012: Director of Nomura Investor Relations Co., Ltd.
2015: Advisor of Nomura Investor Relations Co., Ltd.
2018: Full-time Auditor of the Company(present)

Career Summary
1984: Joined the Company
1998: Branch Office Manager, Fujisawa Sales Office
2000: Branch Office Manager, Kanagawa Branch
2003: Executive Officer & Jonan Branch
Office Manager
2004: Executive Officer & General Manager, Corporate Planning Division
2007: Director & General Manager, Business Management Department
2014: Executive Director & General Manager,
Business Management Department
2016: Executive in charge of PT. TRUSCO
NAKAYAMA INDONESIA
2017: Executive Director & General Manager, Sales Department
Executive in charge of TRUSCO NAKAYAMA CORPORATION (THAILAND) LIMITED
2020: Executive Director & General Business Director
2021: Full-time Auditor of the Company (present)

Career Summary
1971: Joined Tohmatsu Aoki & Co.
(currently Deloitte Touche Tohmatsu
LLC)
1973: Registered as Certified Public Accountant
2012: Part-time Auditor, Trusco Nakayama
Corporation (present)Part-time Auditor, Trusco Nakayama
Corporation (present)Part-time Auditor, Yushin Precision
Equipment Co., Ltd. (present)
2013: Part-time Auditor, Fujio Food System
Co., Ltd.
Part-time auditor, Yushin Precision
Equipment Co., Ltd. (present)
2018: Part-time Auditor, SymEnergy Inc.

Internal Auditing Office(3 staffs)
President

Outside Director
Board Brain(BB)*1
Director, Representative Executive Officer
and President, S.T.CORPORATION

Tetsuya Nakayama

Full-time Auditor

Full-time Auditor

Akira Takada

Masaki Matsuda

Takako Suzuki

Full-time Auditor

Tadahisa Yabuno

Part-time Auditor

Hiroho Kamakura

Department General Manager
Director
General Manager of the Business
Management Department andGeneral Manager of the Digital
Service Strategy Department

Atsushi Kazumi
Born September 10, 1970
50 years old; 28 years and 3 months
at Trusco

Business Management Dept.
Corporate Planning Division

Administration Division

General Manager of the Corporate Planning Division

General Manager of the Administration Division and Manager of the Property Section

Atsushi Shimozu
Born December 25, 1978
42 years old; 19 years and 3 months at Trusco
Career Summary
2002: Joined the Company
2011: Branch Office Manager, Edogawa Branch
2013: ‌Deputy Manager, Management Planning
Section2014: Section Manager, Osaka management Section
2021: ‌Manager of the Corporate Planning/IR Dept.
2021: ‌General Manager of the Corporate Planning Division and Manager of the Corporate Planning/
IR Dept.
2021: ‌General Manager of the Corporate Planning
Division (present)
Corporate Planning/IR Dept.
Secretarial Section.
Human Resources Development Section.
Recruitment Section.
CSR Section(19 employees)

Senior Executive Officer
General Manager of the ProductDepartment

Career Summary
1993: Joined the Company
2001: Branch Office Manager, Tsuchiura Sales Office
2002: Branch Office Manager, Kanazawa Sales Office
2006: Branch Office Manager, Osaka Branch
2010: Section Manager of Catalog Media Section and DOTKUL Section
2013: General Manager, e-commerce Sales Division
2014: General Manager, e-Business Sales Division
2017: Executive Officer and Head e-commerce manager, e-Business Sales Division
2017: Executive Officer & General Manager, Information Systems Division
2019: Executive Officer & General Manager, Information Systems Department
2019: Director & General Manager, Information Systems Department
2020: Director, General Manager of the Business Management Department and General Manager ofthe Digital Service Strategy Department & General Manager of the Digital Promotion Division
2021: Director, General Manager of the Business Management Department and General Manager ofthe Digital Service Strategy Department (present)(88 employees in total)*2

Accounting Division

Tatsuya Nakayama
Born August 4, 1985
35 years old; 8 years and 3 months
at Trusco

Digital Service Strategy Department

Product Dept.

(46 employees in total)

Information Systems Division

Digital Promotion Division

General Manager of the Accounting
Division

General Manager of the Information
Systems Division

Mikio Adachi

Tetsuhiro Mori

Born September 20, 1969
51 years old; 27 years and 3 months at Trusco
Career Summary
1994: Joined the Company
2002: B‌ ranch Office Manager, HC Nagoya Sales Office
2004: B‌ ranch Office Manager, HC Niigata Sales Office
2007: Branch Office Manager, HC Tokyo Branch
2008: Branch Office Manager, Kobe Sales Office
2011: ‌Planet South Kanto Logistic Center Manager
2013: ‌Planet North Kanto Logistic Center Manager
2016: G‌ eneral Manager, Factory Sales Division (Central Japan)
2018: G‌ eneral Manager, Factory Sales Division (Shinshu, Hokuriku, and Tokai)
2019: ‌General Manager of the Administration Div.
2021: ‌Manager of the Property Section Manager of the General
Affairs Division and Manager of the Property Section (present)

Born March 27, 1966
55 years old; 2 years and 6 months at TRUSCO
Career Summary
2019: Joined the Company
2019: Manager of the Financial Management Section
2021: ‌General Manager of the Accounting Division(present)

Tokyo Management Section, Osaka Management Section
Personnel Section, Health care Section, Property Section
TRUSCO Resort and Spa Hakone
Kyoto Kaguraoka Rengetsuso
TRUSCO Resort and Spa Karuizawa(33 full-time employees; 15 part-time staff)

Accounting Section.
Finance Section.
(18 full-time employees; 1part-time staff)

Director
General Manager of theDistribution Department

Career Summary
2013: Joined the Company
2018: ‌Branch Office Manager, Internet Sales Tokyo Branch
Division 1
2019: General Manager of Corporate Planning Division andAccounting Division
2021: ‌Senior Executive Officer & General Manager of the
Product Department (present)

Hideki Naoyoshi
Born December 7, 1971
49 years old; 27 years and 3 months
at Trusco

Tokyo Product Division

Osaka Product Division

Distribution Reorganization Division

General Manager, Digital Promotion
Division

General Manager, Tokyo Product Division

General Manager, Distribution Reorganization Division

General Manager of Factory Sales Division
and East Japan Distribution Division

Takayuki Kimura

Atsuhiro Yamanaka

Yutaka Yoneda

General Manager of the Osaka Product
Division and Manager of the Orange Book
SectionKiyonori Unto

Born September 21, 1974
46 years old; 23 years and 3 months at Trusco
Career Summary
1998: ‌Joined the Company
2008: ‌Branch Office Manager, Tsuchiura Branch
2012: Branch Office Manager, Minamiosaka Branch
2018: Section Manager, Sales Planning Section
2021: General Manager, Digital Promotion Division

Born November 6, 1975
45 years old; 22 years and 3 months at Trusco
Career Summary
1999: Joined the Company
2005: Branch Office Manager, Shiga Sales Office
2010: Section Manager, Recruitment Section
2013: ‌Section Manager, Management Planning Section
2017: ‌General Manager, Tokyo Product Division (present)

Born February 23, 1976
45 years old; 23 years and 3 months at Trusco
Career Summary
1998: Joined the Company
2008: Branch Office Manager, Kumagaya Branch
2012: Branch Office Manager, Yoyama Branch
2016: Manager of the Tokyo PB Product Dept. andManager of the PB Product Design Section
2021: ‌Deputy General Manager of the Osaka Product Division
2021: General Manager of the Osaka Product Division
and Manager of the Orange Book Section (present)

Masaya Okada

Born June 26, 1973
47 years old; 23 years and 3 months at Trusco
Career Summary
1998: ‌Joined the Company
2011: ‌Branch Office Manager, Yamaguchi Branch
2012: ‌Branch Office Manager, Ube Branch
2013: Section Manager, Human Resources Development Section, Section Manager, Secretary
Section, and Section Manager, Environmental
Management Section
2019: General Manager, Information Systems Division(present)

Born August 17, 1976
44 years old; 21 years and 3 months at Trusco
Career Summary
2000: Joined the Company
2008: Section Manager, Recruitment Section
2010: Branch Office Manager, Itabashi Branch
2015: Planet Tohoku Logistic Center Manager
2016: Planet Saitama Preparation Room Manager
2018: Planet Saitama Logistic Center Manager
2021: ‌General Manager, Distribution Reorganization
Division (present)

Born February 9, 1962
59 years old; 34 years and 7 months at TRUSCO
Career Summary
1986: Joined the Company
1996: Branch Office Manager, Fukui Sales Office
2004: ‌Branch Office Manager, Chiba Sales Office
2008: ‌Branch Office Manager, Okayama Branch
2011: ‌General Manager, Factory Sales Division (EastJapan)
2013: General Manager, Overseas Division
2019: General Manager of Factory Sales Division andEast Japan Distribution Division (present)

Tokyo NB Product Section Tokyo PB Product Section
PB Product Design Section.
Tokyo Supplier Development Section.
Overseas Purchase Section.
Representative Office Germany (Düsseldorf)(78 employees)

Osaka NB Product Section., Osaka PB Product Section.,
PB Quality Assurance Section., and Stock Management Section
Osaka Supplier Development Section.
Product DB Platform Development Section.
Orange Book Section.
Orange Book.com Section.
Customer Consulting Section. (91 employees)

IT Planning Section.
System Management Section.
Data Management Section.
(33 employees)

Digital Promotion Section.
UX Platform Development Section.
(13 employees)

Representative Office Germany (Düsseldorf)

Trusco Nakayama Health Insurance Association

Representative Office Manager

Manager

Norihiro Higashi

Akiko Tani

Born October 16, 1978
42 years old; 17 years and 3 months
at Trusco

Born May 6, 1981
40 years old; 8 years and2 months at TRUSCO
2 employees on loan

Integrated Report 2021

*2 includes staff on loan in each figure provided.

Logistics Planning Section.
Delivery Management Section.
Logistics Platform Development Section and P Aichi
Preparation Section.
(11 employees)

Factory Sales Division and Distribution Division

12 branches and 3 distribution centers
East Block
Sapporo, Hachinohe, Sendai, Akita,
Koriyama, Mito, Utsunomiya, Isezaki
Niigata, Niigata-kita, Okaya, and Ueda
(142 full-time employees; 24 part-time staff)
P Hokkaido, P Tohoku, and P North Kanto(66 full-time employees; 131 part-time staff)

Executive Officer and General Manager, Factory Sales Division
General Manager of the Tokyo Metropolitan Area Distribution Division

General Manager of Factory Sales Division
and Distribution Division (Chubu, Kinki)

General Manager of Factory Sales Division
and West Japan Distribution Division

Hiroaki Imagawa

Masato Otani

Yoshihiro Fujimoto

Born January 22, 1963
58 years old; 35 years and 3 months at Trusco
Career Summary
1986: Joined the Company
1996: Branch Office Manager, Maebashi Sales Office
1997: Branch Office Manager, Ota Sales Office
1998: Branch Office Manager, Tokyo Branch
2004: Executive Officer & General Manager, NB Product Division
2007: Director & General Manager of Sales Department
2013: Executive Officer & General Manager, Factory Sales
Division (East Japan)
2016: ‌Executive Officer & General Manager, Accounting Division
2019: Executive Officer & General Manager, Corporate Planning Division
General Manager, Accounting Division
2019: Executive Officer & General Manager of both the
Factory Sales Division and Tokyo Metropolitan
Area Distribution Division (present)

Born October 24, 1967
53 years old; 30 years and 3 months at Trusco
Career Summary
1991: Joined the Company
2008: ‌Branch Office Manager, Kagoshima Sales
Office2012: Branch Office Manager, Chiba Branch
2014: ‌Section Manager for the Personnel Section and
Healthcare Section
2018: ‌General Manager, Factory Sales Division (Kinki
Area)
2019: General Manager of Factory Sales Division andDistribution Division (Kinki)
2021: General Manager of both the Factory Sales Division
and Distribution Division (Chubu, Kinki) (present)

Born September 10, 1971
49 years old; 26 years and 3 months at Trusco
Career Summary
1995: Joined the Company
2012: Branch Office Manager, Kagoshima Branch
2015: Branch Office Manager, Fukuoka Branch
2018: General Manager, Factory Sales Division (Chugoku/Shikoku/Kyushu)
2019: ‌General Manager of Factory Sales Division andWest Japan Distribution Division (present)

11 branches and 7 distribution centers
Tokyo Metropolitan Area Block
Kashima, Omiya, Satte, Chiba, Matsudo, Tokyo,
Jonan, Kawasaki, Atsugi, Shizuoka, and Fuji
(159 full-time employees; 32 part-time staff)
P Saitama, P East Tokyo, P Tokyo, P South Kanto,
Utsunomiya STC, Oyama STC, and Omiya STC(178 full-time employees; 305 part-time staff)

8 branches and 3 distribution centers

8 branches and 5 distribution centers

17 branches and 6 distribution centers

Central Block
Toyama, Kanazawa, Fukui
Hamamatsu, Nagoya, Okazaki,
Komaki, and Yokkaichi(122 employees,
28 part-time workers)

Kinki Area
Ryuo, Kyoto, Osaka,Higashi-Osaka, Minami-Osaka,
Kobe, Akashi, and Wakayama(117 employees,
10 part-time workers)

West Block
Yonago, Okayama, Hiroshima, Fukuyama, Ube,
Shunan, Takamatsu, Tokushima, Matsuyama,
Fukuoka, Kokura, Tosu, Nagasaki, Kumamoto,
Oita, Kagoshima, and Okinawa(141 full-time employees; 30 part-time staff)

P Tokai, P Nagoya,
and Toyohashi STC(54 employees,
150 part-time workers)

P Shiga, P Osaka, P Kobe,
and East-Osaka STC
Nara STC(145 employees,
234 part-time workers)

P Sanyo, P Kyushu, Okayama STC, Hakata STC,
Takamatsu STC, and Kurume STC(41 full-time employees; 75 part-time staff)

Sales Dept. (51 employees in total)*2Home Center Sales Division and Distribution Divisione-Business Sales Division

Overseas Division

Director, General Manager of the Sales Department,
General Manager of the Home Center Sales Division,and General Manager of the Distribution Division

General Manager of the e-Business Sales
Division

General Manager of the Overseas Division andSection Manager of the Overseas Sales Section

Masashi Yamamoto

Born May 27, 1973
48 years old; 25 years and 3 months at Trusco
Career Summary
1996: Joined the Company
2004: Branch Office Manager, Numazu Sales Office
2010: Head, Corporate Auditor's Office
2010: Section Manager, General Affairs Section
2014: Planet Tohoku Logistic Center Manager
2018: G eneral Manager, Tokyo Metropolitan Area
Distribution Division
2019: General Manager of Overseas Division and Marketing
Division
2020: General Manager, e-Business Sales Division(present)

Naotsugu Kamijo

Born July 7, 1969
51 years old; 28 years and 3 months at Trusco
Career Summary
1993: Joined the Company
2002: ‌Branch Office Manager, HC Niigata Sales Office
2004: Branch Office Manager, Osaka Branch
2008: Section Manager, Personnel Section
2008: ‌Section Manager for the Personnel Section and Healthcare Section
2013: General Manager, Corporate Planning Division
2017: ‌Executive Officer & General Manager, Corporate Planning Division
2019: ‌Executive Officer & General Manager, Business
Management Department
2019: ‌Director & General Manager, Business Management Department
2020: Director & General Manager, Sales Department
Executive in charge of TRUSCO NAKAYAMA CORPORATION(THAILAND) LIMITED. (present)
Executive in charge of PT. TRUSCO NAKAYAMAINDONESIA (present)
2021: ‌Director, General Manager of the Sales Department
General Manager of the Home Center Sales Division, andGeneral Manager of the Distribution Division (present)

Kazuo Nakai

5 branches and 3 distribution centers
HC Tokyo, Okazaki, Fukuoka,
HC Osaka, and Okinawa
Holds positions at three locations, including theFactory Sales Division.
(35 full-time employees; 2 part-time staff)
HC East Japan Distribution Center
HC West Japan Distribution Center
HC Kyushu Distribution Center(37 full-time employees; 164 part-time staff)

P (Planet) and STC (Stock Center) are abbreviations for our distribution centers.

6

Born July 7, 1969
51 years old; 28 years and 3 months
at Trusco

Career Summary
1993: Joined the Company
2002: Branch Office Manager, HC Niigata Sales Office
2004: Branch Office Manager, Osaka Branch
2008: Section Manager, Personnel Section
2008: Section Manager for the Personnel Section and Healthcare Section
2013: General Manager, Corporate Planning Division
2017: Executive Officer & General Manager, Corporate Planning Division
2019: Executive Officer & General Manager, Business Management Department
2019: Director & General Manager, Business Management Department
2020: Director & General Manager, Sales Department
Executive in charge of TRUSCO NAKAYAMA CORPORATION (THAILAND) LIMITED. (present)
Executive in charge of PT. TRUSCO NAKAYAMA INDONESIA (present)
2021: Director, General Manager of the Sales Department General Manager of the Home Center
Sales Division, and General Manager of the Distribution Division (present)(2,513 employees in total)

The number of employees in parentheses is current as of January 1, 2021.

5

Kazuo Nakai

Distribution Department/Sales Department(169 employees in total)

Koshiro Aoyama

Director
General Manager of the Sales Department, General Manager of the Home
Center Sales Dept., and General
Manager of the Distribution Division

Career Summary
1994: Joined the Company
2003: Branch Office Manager, Amagasaki Sales Office
2007: Branch Office Manager, Kokura Sales Office
2010: Head, Corporate Auditor's Office
2011: Section Manager, Management Planning Section
2013: General Manager, Information Systems Dept.
2017: Executive Officer & General Manager, Information Systems Dept.
2017: Executive Officer & General Manager, Distribution Department
2019: D irector & General Manager, Distribution
Department
2021: Director, General Manager of the ProductDepartment and General Manager of Distribution Department
2021: General Manager, Distribution Department (present)

7

Born November 29, 1977
43 years old; 18 years and 3 months at Trusco
Career Summary
2003: Joined the Company
2014: Branch Office Manager, Kashima Branch
2017: Section Manager, Overseas Sales Section
2020: General Manager of the Overseas Division and Section Manager of the Overseas Sales Section (present)
Overseas Sales Section (overseas subsidiary service
center) (6 employees)

Overseas Subsidiaries
Officer in charge at TRUSCO NAKAYAMA Corporation:
Kazuo Nakai

TRUSCO NAKAYAMA CORPORATION(THAILAND) LIMITED.

PT. TRUSCO NAKAYAMAINDONESIA

3 branches, 1 section
Internet Sales Tokyo, Internet Sales Osaka
MRO Supply Tokyo, Sales Planning Section(60 full-time employees; 4 part-time staff)

President

Kazuaki Harada

President

Yohei Takuno

Born November 8, 1980
40 years old; 18 years and3 months at Trusco
Employees: 24

Born May 16, 1986
35 years old; 11 years and3 months at Trusco
Employees: 20(3 employees on loan and 21 local staff)(3 employees on loan and 17 local staff)

Naotsugu Kamijo, Director

Naotsugu Kamijo, Auditor

Integrated Report 2021

8

Company Overview Information current as of December 31, 2020■

Company Name

TRUSCO NAKAYAMA Corporation■

Head Store

4-28-1, Shimbashi, Minato-ku, Tokyo■

Head Offices

Tokyo Head Office: Trusco Fiorito Bldg., 4-28-1, Shimbashi, Minato-ku, Tokyo 105-0004 (registered ascompoany head office)Osaka Head Office: Trusco Glen Check Bldg., 1-34-15, Shinmachi, Nishi-ku, Osaka-shi, Osaka 550-0013■

Branches

Japan: 89 (2 head offices, 61 sales branches, and 26 distribution centers)
Overseas: 3: (TRUSCO NAKAYAMA CORPORATION (THAILAND) LIMITED, PT.TRUSCO NAKAYAMAINDONESIA, and Germany Representative Office (Düsseldorf)) (as of January 1, 2021)

■Capital$46 million; Listed on the First Section of the Tokyo Stock Exchange (Securities code: 9830)■ Shareholders’ equity ratio

63.7% (as of December 31, 2020)■

Employees

Consolidated: 2,786 (12 officers, 1,674 full-time employees; 1,100 part-time staff)■

FoundedMay 15, 1959■

EstablishedMarch 2, 1964

■ Closing date for fiscal year

December 31

■

Sales

Consolidated: $1,994 million (for Fiscal Year Ending December 31, 2020)/
Ordinary Income of $2,126 million planned for Fiscal Year Ending December 31, 2021■

Ordinary Income

Consolidated: $108 million (for Fiscal Year Ending December 31, 2020)/
Ordinary Income of $129 million planned for Fiscal Year Ending December 31, 2021

■

Bank

Deloitte Touche Tohmatsu LLC■

RatingA (Rating and Investment Information, Inc.)■

Suppliers

2,652 (2,440 in Japan, 212 overseas)■

Customers

Dealers of machine tools, construction materials, electrical materials, tubing materials, online shops,
and home centers etc.; about 5,515 customers■

Business Details■

Officers

Director. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Full-time Auditor

Masaki Matsuda

Kazuo Nakai (General Manager of theSales Department)

Full-time Auditor

Akira Takada

Full-time Auditor

Tadahisa Yabuno

Atsushi Kazumi (General Manager of the Business
Management Department and General Managerof the Digital Service Strategy Department)Outside Director

Kenichi Saito
ForeSight & Company, Ltd.
President

Director

Hideki Naoyoshi (General Manager of theDistribution Department)

Outside Director

Kuniaki Hagihara(Chairman, Hagihara Industries Inc.)(

Helping People and Society - Value Creation Model -. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

)Senior Executive
Officer

Tatsuya Nakayama(General Manager of the Product Department)Outside Director

Takako Suzuki(President, S.T.CORPORATION)■

Executive Officer

Hiroaki Imagawa(General Manager of both the Factory Sales Division
and Tokyo Metropolitan Area Distribution Division)

Part-time Auditor

Hiroho Kamakura

Thinking Outside the Box - A History of Value Creation -1214. . . . . . . . . . . . . . . .

16. . . . . . . . . . . . . . . . . . . . . . .

18

Becoming the Company We Want to Be - Capability Target -■Integrated Report 2021

Founded as a latecomer to the industry,
thinking outside the box has been our core approach from the start.
We have provided a variety of unique services to meet the needs ofour customers and the manufacturing industry of the times.
In the future, we will continue to aim to be a company that always provides the highest level ofconvenience in order to continue to be of service to the manufacturing industry in Japan,
based on our belief that business must serve people and society.

Business Flow

As of July 1, 2021
Director

10(Value Creation)

Wholesale of machine tools, distribution equipment, environmental safety equipment, and other equipment, along with the planning and development of the products of company’s own brand TRUSCO

President Tetsuya Nakayama“Business must serve people and society”

To Achieve “Our Ambitions”

Mizuho Bank, Resona Bank, Bank of Tokyo-Mitsubishi UFJ, Sumitomo Mitsui Banking, Sumitomo Trust & Banking■ Accounting Auditor

Our Policy

Integrated Report 2021

11

Plugging into TRUSCO to start doing business with us

Customers[Manufacturers]

Sales Total

P.80$1,994 million
Products•Product Inventory(Approx. 440,000 Products, Approx.

2,440 companies•Product Data

These customers deal in welding
materials, welding machines, andhigh-pressure gas products.

No. of Companies: 4,951

We deliver PRO TOOL to factories and general consumers through online shops.

Sales: $359 million
Constitution ratio: 18.0%
No. of Companies: 171

Sales

Sales: $158 million

Pro Shops

Constitution ratio: 8.0%

These retailers focus on sales of PRO
TOOLs products for outdoor use.

No. of Companies: 105

Overseas Route

Outdoor Work, General Consumers, etc.

P.42

Delivering products to manufacturing sites around the world

Sales: $11 million
Constitution ratio: 0.6%
No. of Companies: 288

Overseas Dealers
Japanese and non-Japanesecustomers that deal in machinery
tools outside of Japan

Overseas Manufacturing Industry, etc.

Corporate Data

(Products and Sales)•Big Data Utilization
Sales: Approx. 120,000 daily
Estimates: 30,000 dailyHome Centers

The Nakayama
visually impaired
welfare foundation•Real Time Data Linkage

Manufacturing Industry,
General Consumers, etc.

Relationships with
Stakeholders

Digital Service

Online Shops

Home Center RouteWe sell products to general consumers
through home centers and pro shops.

found in the industry•One-stop Orderingetc.

(e-commerce/electronic purchases)

Approx. 2,650,000 deliveries/year•Sales Branches in Japan 61*•Overseas Subsidiaries: 2•More sales channels that normally

Manufacturing Industry,
Construction-related Businesses, etc.

Environmental
Efforts•Number of direct deliveries to users:

etc.

Corporate
Governance(TRUSCO delivery runs included in above: 110 (40.7%))

America, United Kingdom,
Italy, Israel, India, Austria,
Netherlands, Greece,
Switzerland, Spain, Thailand,
Denmark, Germany, New
Zealand, France, Vietnam,
Belgium, Poland, Malaysia,
Korea, Taiwan, and China

Welding Material Dealers

Constitution ratio: 73.4%

Distribution•Number of delivery runs 270(year on year +7 companies)

These customers deal in equipment andsecondary materials that are used byfactories in the manufacturing industry.

e-Business Route(Fixed-Cost Based Distribution with 2 runs a day)22 countries
212 companies

Sales: $1,465 million

Machinery Tool Dealers(Number of Items Available via TRUSCO Orange Book.Com
2,330,000 items)•Logistic Centers in Japan 26*•Same-day Delivery

Overseas Suppliers

We deliver PRO TOOL to factories,
construction sites and other manufacturing
sites through machinery tool dealers, etc.

Corporate(year on year +108 companies)(A circulation of TRUSCO Orange Book published
190,000)

Factory Route

Human Resources/
Governance andFinancialSocial Contributions

Suppliers in Japan45,170,000 items, Approx. $387 million)•Catalog Listings

5,515 companies

Digital Service

Plugging into TRUSCO will easily
allow you to utilize our resources∞

Unlimited
Sales(year on year +115 companies)[Sales Agents][Wholesale]
Consolidated

Users

Distribution

Suppliers

2,652 companies

services. Not only centrally procuring products from approximately 2,700 suppliers, but also customers utilize ourservices such as same-day delivery and user-direct delivery
to expand their own businesses. We will continue to pursue
further convenience for our customers and suppliers by optimizing the distribution of PRO TOOL.

Products

When customers and suppliers start doing business with us,
they can easily access our management resources and use
them for their businesses in a way that suits their characteristics and business type. In addition suppliers can sell theirproducts to approximately 5,500 customers, and they canalso receive a wide range of sales support services such as
product data linkage, inventory holding, and catalog listing

Corporate
Mission

TRUSCO NAKAYAMA is a specialized trading company that procures PRO TOOL from suppliers and sells them tomachinery tool dealers, online shops, home centers, and other customers. We ensure prompt, smooth and reliable
delivery to manufacturing sites all over Japan. As a wholesaler, we have developed a unique business model to improve the convenience of our customers, suppliers, and users.

Value Creation

Business Flow

As of December 31, 2020
As of December 31, 2020
*As of January, 2021

12

Integrated Report 2021

As of December 31, 2020

Integrated Report 2021

13

Helping People and Society

Capability Targets to be Achieved by 2023

Ability to store 500,000 items in inventory

Completion of user direct delivery system

Ability to receive and ship orders 365 days a years“Anything”“Anywhere”“Anytime”

Communicate (Intellectual capital)

Financial Results (Financial capital)●●

Number of items in inventory: 440,000 products

Inventory Value: $387 million ●Total number of items in inventory: 45.17 million items●

Deliver (Distribution capital)
Logistic Centers in Japan: 26●

Branches with inventory: 30

Product Data Number: 2.5 million items●

Number of system connected companies: 8,604 companies●(Officers: 12 / Full-time staff: 1,674 / Part-time Staff: 1,100 )Number of Customer Companies: 5,515 companies●

Support (Product capital/Nature capital/Social capital)
Shareholders’ equity ratio: 63.7%●

Rating: A (R&I)●

Trusco Power Generation Installations: 19●

Improving Convenience●●●●

Who We Are

OU

Integrated Report 2021

Business Activities

Being a trusted company through our uniquegovernance system, environmental initiatives, andhighly transparent information dissemination

Contributing to solving social problems through business
Promoting the optimal digital transformation of the entire supply chain
Improving efficiency of PRO TOOLs procurement through procurement incentives andreduction of distribution costs●Minimizing lead time through our immediate delivery system●(Distribution system/MRO Stocker vision)
Conserving resources through centralized
procurement and IT utilization(In-house distribution/Shift to paperless system)●

Business support forour partners
Improving business efficiency with partners
in order to increase convenience●Develop business with customers by expanding
the number of products and services that we offer●Stable supply of products and services without
the risk of stoppage due to emergencies●(Seismic isolation of distribution centers, nationwide
distribution network, and disaster-protected warehouses)

Contributions to Local
Communities and Society●

Providing high-quality employment opportunities(Positioning of distribution centers in japan)●

Work style reform initiatives(Popularization of various digital tools)

Promoting the participation of people withdisabilities in society●(Nakayama visually impaired welfare foundation
project promotion)

Integrated Report 2021

Corporate Data

Moving faster toward the company that we want tobe through the utilization of cutting-edge digitaltechnology

Corporate Governance P.61
and Social ContributionsE
TC O M

The Nakayama
visually impaired
welfare foundation

Pursuing the highest standard in distribution
through general mobilization of our distribution
network, inventory, and IT

Creating an improvement in business value
continuously by taking on challenges andimplementing reforms in a flexible, speedy mannerCorporate

Business must serve
people and society

Relationships with
Stakeholders

Digital Service Strategy P.44

Human Resources/ P.50
Financial Strategy

P2

Environmental
Efforts

Distribution Strategy P.32

As of December 31, 2020

Corporate
Governance

P.38

P
T
U
T
U
O
“Naojiro” Repair Service Sales: $14 million●

Human Resources/
Governance andFinancialSocial Contributions

Sales Strategy

Renewable Energy Power Self-sufficiency Rate: 18.9%●

Number of orders processed by system: 150,000

through a cycle

Digital capabilities

Optimal response to the diversified needs ofcustomers(Social capital/Nature capital)

Automated Estimate Ratio: 8.1%

Number of Companies Appearing on “TRUSCO unknown gulliver” (TV program):

Society/Local Environment

P.22

Social and Environmental Value Creation

Who We Are

S
SINE S

Product Strategy

Managerial Retirement Age: 62 Full-time Staff Retirement Age: 65
Employment Extension: 70 Part-time Staff: 75

165 companies (As of February 28, 2021)

Abundant line-up and inventory

Improve inventory management efficiency bystrengthening the integrated system frompurchasing to sales planning

Turnover rate: 4.0%

Contribution

BU

System order intake ratio: 83.9% (year on year +0.8%)

Number of shareholders: 16,336
As of December 31, 2020

P3

Courteous, Polite, and Reliable●

Percentage of female employees among full-time employees: 35.2%●

Never Changing Our Principles (Unchanging demands of the market)
Convincing prices

Inventory Hit Rate: 91.0% (year on year +0.5%)●

Aim for sustainable growth

Health management superior corporation (White 2020) certified●●(Distribution capital, Intellectual capital, and Digital capital)

Although common sense sometimes changes, our principles remain unchanged.
Rapid, reliable delivery

Ordinary Income (consolidated): $108 million ●Dividends: $0.28●

Common sense might change but
our principles remain unchange.
High-level of convenience

Sales (consolidated): $1,994 million

Digital Service

U
P
T
N
I

Digital Expenditures (most recent three periods): $73 million

Number of systems: 60

Employees: Consolidated 2,786

●

Sales

Connect (Digital capital)●

Respond (Human capital/Social capital)●●

Number of total delivery runs: 270 (TRUSCO delivery runs included in above: 110, 40.7%)●●

Available TRUSCO Orange Book Items: 2,330 thousand items●

A workplace where various humanresources can flourish (Human capital)

Distribution

Total Number of Suppliers: 2,652 companies (Overseas: 212 companies)●

TRUSCO Orange Book: 190,000 (2021 edition, total number published)

Products

Stock (Product capital/Social capital)●

Top Message

14

P.16

Results

Management resources

Becoming the Company We Want to Be

Corporate
MissionAs a Pro Tools supplier, we aim to be an indispensable company for Japanese “monodzukuri” sites
by heightening our ability to supply PRO TOOLs
and providing convenience for our customers.

GAMBARE!! JAPANESE MONODZUKURI

Value Creation- Value Creation Model -TRUSCO strives to be a company that always plays a role insupporting Japanese monodzukuri. To this end, we aim to be
a company that always provides the highest level of convenience.

15

Value Creation

Becoming the Company We Want to Be - Capability Target Target management indicators
Corporate Message

Capability Target 1: Ability to store
500,000 items in inventory

Distribution
Sales

Ability to offer a variety of PRO TOOLs both in Japan and overseas

Digital Service

We believe that “immediate delivery is the greatest service” andhave been working to expand the number of items in our inventory andstrengthen our logistics system. We have been expanding our inventoryof various domestic and international professional tools. As of the end of
December 2020, we held 440,000 items in inventory. Our inventory hit
rate (ratio of products delivered from our company stock divided by our
total number of orders) rose to 91.0%. Expanding the number of items in
our inventory will lead to greater convenience for our customers and thedevelopment of new markets for our company. We aim to have 500,000
items in stock by 2023 and are actively promoting the stocking of professional tools required by “monodzukuri” sites.

Capability
Targets

Products

We want to be of service to the manufacturing industry in Japan that always
provides the highest level of convenience regardless of the times.

Corporate
MissionGAMBARE!! JAPANESE MONODZUKURI

We believe that in order to constantly provide the highest level of convenience as a unique company, our priority should not be numerical targets but rather capability targets. Rather than always giving priority to numbers, we also place importance on the types ofcapabilities that we want to possess as a company. In order to become a company that is needed by our customers and society, we
have set the following three capability targets to be achieved by 2023 and will continue to work on achieving them.

03

Ability to store
500,000 items in inventory

Completion of user
direct delivery system

Ability to receive and shiporders 365 days a years

I-Pack® (high-speed automated packaging and shipping line) required for
direct deliveries to users

Environmental
Efforts

I-Pack® (high-speed automated packaging and shipping line)
Performance: 720 packages per hour per line
Number of direct deliveries to users: 2,658,000 deliveries/year (in 2020)

Corporate

02

Requests for direct deliveries to users are increasing due to the sales
expansion of online shopping companies and the chronic shortage of delivery personnel in the industry. In addition, requests for this service haveincreased rapidly as a measure to reduce exposure to Covid-19 since2020, and our I-Pack® (high-speed automated packaging and shippingline) has become a key solution to this issue. In the future, we intend tostrengthen our user-direct shipping function using I-Pack® to establish abusiness that can solve various problems for our customers. (See p.36)

Corporate
Governance01

Human Resources/
Governance andFinancialSocial Contributions

Capability Target 2: Completion of user
direct delivery system

to be Achievedby 2023

Sales Strategy

PB Products expansion

Strengthening immediatedelivery capabilities

Strengthening connections
with customers

Strengthening of our digitaland mechanical technologies

Business style reform

Advanced productdata promotion

Optimal strengthening ofour delivery capabilities

Support of diversifying
sales channels

Promoting the digital transformationof the entire supply chain

Promotion of various
work styles

P.22

P.32

P.38

P.44

P.50

With an eye on improving convenience for our customers and increasing
the number of product shipments in the future, we will establish a system that enables us to receive and ship orders 365 days a year. Planet
South Kanto, which was rebuilt and put into operation in August 2020, is
equipped with an underground parking lot with a high ceiling that allows
delivery trucks to enter. The facility is designed to operate 24 hours a day,with facilities that allow loading and unloading even at night. We are also
working to enhance digital tools and improve the efficiency of warehouse
operations. We are aiming to realize a new logistics system to improve
convenience at “monodzukuri” sites.

Corporate Data

Distribution Strategy

Integrated Report 2021

Human Resources/
Financial Strategy

The Nakayama
visually impaired
welfare foundation

16

Product Strategy

Digital Service
Strategy

Relationships with
Stakeholders

Capability Target 3: Ability to receiveand ship orders 365 days a years

Planet South Kanto (Isehara City, Kanagawa Prefecture) is designed tooperate 24 hours a day

Integrated Report 2021

17

Thinking Outside the Box - A History of Value Creation -Value Creation

2006
TRUSCO Orange Book.Com is launched
Needs
ofbackend
the times
and"Paradise”
proving valueNewsystemis set into operation

1990 - 1999
Strengthening distribution capabilities and going public

2000 - 2009

Tetsuya Nakayama was born witha damaged optic nerve and loss ofvision as a result of forceps delivery.
Chuji Nakayama (founder) decided tostart the company with complete resolve for the future of his child. As alatecomer to the industry, Nakayama
earned the trust of his customers byaiming for a product lineup that was
not bound by the industry limitations.

We aimed to streamline the distribution of pro-tools by publishing Nakayama Shohou, which listed multiple
manufacturers, something that did
not exist in the industry at that time.
In addition, we began to develop ourown products (private brands), which
no other company could offer, to resolving customers’ issues.

In order to contribute to manufacturing sites across the country, we expanded our offices to all prefectures.
We also entered the home improvement industry and expanded oursales network. Later, we also went
public, aiming to become a company
that contributes to society.

Tetsuya Nakayama was appointed as
President. In the same year, the company's
first distribution center, Planet Kyushu,
was launched into operation to strengthen
distribution capabilities in earnest. We alsochanged our company name, established a
corporate philosophy, and created a betterworking environment which led to our listing on the first sections of the Tokyo Stock
Exchange and Osaka Securities Exchange.

2010 - 2020

Brand renewal and strengthening of governanceWe unified 16 brands of private brand (PB) products under the TRUSCO brandand promoted branding and product development as a “PRO TOOLs Company.” The theme of the top message was “Shushazentaku.”* This laid thefoundation for the governance that continues to this day, including the abolitionof bill transactions and the introduction of the OJS (Open Judging System) for
personnel evaluations.
*Discretion: A criterion to make decisions is not profit and loss but good and bad.

Strengthening of inventory expansion and accelerating investment
in distribution and systems
Based on the belief that a solid inventory is necessary to improve the convenienceof our customers, we devised an inventory philosophy called the NAKAYAMA
Original Inventory System (see p.24). In 2018, we accelerated our investments
in distribution and systems to strengthen our inventory expansion. Planet Saitama,
our largest distribution center, also became operational, and we introduced theworld's most advanced logistics equipment and systems to achieve high-density
storage and high-speed receiving and shipping. We also redesigned our core system: “Paradise” In 2020, to digitize our operations. This allowed us to improve theproductivity of our business partners as well.

Distribution

1970 - 1989
Expansion of our business andthe areas we serve

Products

1960 - 1969
Catalog Strategy and Development of PB Products

Corporate
Mission

1959
Founded as a latecomer to theindustry

Sales

47.8
44.2

Launched a comprehensive catalog titled Nakayama Shohou (1964)

Store registration/Public offering of stocks(Tokyo and Osaka exchanges) (1989)

Private Brand (PB) names unified under
the name of TRUSCO (2003)

Tetsuya Nakayama assumes position of
Presiden (1994)

The theme Shushazentaku is presented as part of a top message (2003)

Construction of Tokyo Planet Saitama Distribution Center starts
Head Office (2014)
operations (2018)

29.8

Number of items in inventory(Unit: ten thousand)Origin of TRUSCO NAKAYAMA

Collapse of Economic Bubble

Chuji Nakayama writes theFive Articles (1959)

1989
Store registration/Public offering of stocks(Tokyo and Osaka exchanges)

931

3

116
72 94 87
36
41
46
10
16
24
4

142 171285
227 259322 342

410

675

873

791 775

1st term 2nd term 3rd term 4th term 5th term 6th term 7th term 8th term 9th term 10th term 11th term 12th term 13rd term 14th term 15th term 16th term 17th term 18th term 19th term 20th term 21st term 22nd term 23rd term 24th term 25th term 26th term 27th term 28th term
(1964) (1965) (1966) (1967) (1968) (1969) (1970) (1971) (1972) (1973) (1974) (1975) (1976) (1977) (1978) (1979) (1980) (1981) (1982) (1983) (1984) (1985) (1986) (1987) (1988) (1989) (1990) (1991)

Integrated Report 2021

917

875 895

1,994

1,822

1,654

Lehman Shock

1,362
1,100
998

1,252 1,256

1,214 1,235

1,116

1,078

1,069

927

500

466 481 436

29th term 30th term 31st term 32nd term 33rd term 34th term 35th term 36th term 37th term 38th term 39th term 40th term 41st term 42nd term 43rd term 44th term 45th term 46th term 47th term 48th term 49th term 50th term 51st term 52nd term 53rd term 54th term 55th term 56th term 57th term 58th term 59th term
(1992) (1993) (1994) (1995) (1996) (1997) (1998/3) (1999) (2000) (2001) (2002) (2003) (2004) (2005) (2006) (2007) (2008) (2009) (2010) (2011) (2012) (2013) (2014) (2014/12) (2015) (2016) (2017) (2018) (2019) (2020) (2021)

Distribution
Number of
Logistic Centers

18

842

1,556

2,001

2,126

Corporate Data

1583
2nd Oil Shock

1st Oil Shock800

Plaza Accord

1971
Nakayama Filing Co., Ltd. established2006
TRUSCO Orange Book.Com is launched
New core system “Paradise” operation

1,206
956 950

2014
Construction of Tokyo Head Office(Minato-ku, Tokyo)

2,061

The Nakayama
visually impaired
welfare foundation

1964
Launched a comprehensive catalog
titled Nakayama Shohou (P.30)
Launched “Komyotan,” our first
Private Brand product (P.25)

Black Monday

1,019

2017
“TRUSCO Shirarezaru Gulliver”
broadcast started (P.70)

Relationships with
Stakeholders

1959
Founded as a machine tool wholesale businessin Tennoji-ku, Osaka, as Nakayama Kiko Shokai

2005
Total abolition of all draft exchanges

Collapse of the IT bubble

1,000

2018
Planet Saitama starts operations

7.4

1997
Public interest incorporated foundation
Nakayama Welfare Foundation for the
Visually Impaired founded(P.72)

Introduction of Consumption Tax

9.02003 6.6 6.9
The theme “Shushazentaku” is presented as part of a top message
Private Brand (PB) names unified under the name of
TRUSCO PRO TOOLs specialization

1996
Listed on the 1st Section of the TSE and OSE

Nixon Shock(Unit: million USD)

1959

1994
The company changes its name to TRUSCO NAKAYAMA Corporation
Tetsuya Nakayama assumed position of Presiden
Planet Kyushu operations begin (company’s first distribution center)

14.1

Corporate

Sales

8.4

2020
Core system: “Paradise 3”
Launched into Operation (P.45)
PRO TOOLs Restrictions Removed

16.4

Environmental
Efforts

private brand product (1964)

11.7 12.4

21.2

World experiences theCovid-19 pandemic

23.1

Corporate
Governance

Chuji Nakayama, the founder of our company,
created the “Five Articles”, which can be called thecompany credo (image right). Since its inception,
the company has had a culture of taking on various
challenges without being bound by limitations. Oneof these was the first private brand (PB) product“Komyotan (red lead)”, which was purchased in Chuji Nakayama at time ofestablishment (1959)
drums and then divided into small cans for sale inresponse to user requests. Although it took muchtime and effort, this was the starting point forwholesalers to purchase in large quantities and sellin small lots. This philosophy of “doing what others
won't do,” “selling what others won't sell,” and “doing things before others do them” has been handed
down as the DNA of our company to this day.
Komyotan, the company's first

19.2

33.6

26.4

Human Resources/
Governance andFinancialSocial Contributions

2006
Started efforts to expand thenumber of items in inventory

39.2
Digital Service

1959, the year of the company's founding
President Tetsuya Nakayama appears in
the center of the photo

37.4

9-monthfinancial results

6-monthfinancial results

2

4

5

6

7

8

10 11 12 13 16

Consolidated
Accounting Started

planned19 21 22 26
Integrated Report 2021

2

19

Major Award History
TRUSCO has received various awards for efforts behind its unique business model.
(some award winners as well as honorifics have been omitted)

2017“Best IR Award for Encouragement” recipient(Sponsor: Japan Investor Relations Association)

The openness of TRUSCO's top management was reflected in the company's level of
disclosure, and TRUSCO was recognized for its efforts to disclose information in an earlyand fair manner, including proactive dissemination of useful information to investors, aswell as for its enhancement of ESG information and activities for individual investors.
Companies receiving the award in 2017
“Best IR Award for Encourage“IR Grand Prix” recipientsment” recipients
Komatsu Ltd.
TRUSCO NAKAYAMA Corporation
Shionogi & Co., Ltd.
Recruit Holdings Co., Ltd.
“Best IR Award” recipients“IR Special Award” recipients
DAIKIN INDUSTRIES, LTD.
Kirin Holdings Company, Limited
Sony Corporation
Fuji Oil Co., Ltd.

Details can befound by scanning
the QR code above.

Daiwa House Industry Co., Ltd.
Nabtesco Corporation, etc. (total ofseven “Best IR Award” recipients)

About the “IR Award”(Management Policy)

The objective behind this award is to select and award companies that havea deep understanding of the purpose of IR, have been proactive in IR related efforts, and have achieved outstanding results such as gaining strong
support of market participants.

We believe that the source of competitiveness for an organization is
its originality and we are placing it at the root of our management strategy.
TRUSCO continues to promote the improvement of convenience for our customers andenhancement of the environment and systems that allow our employees to work with peace ofmind over the long term. Setting our own management indicators for each strategy,
we will continue to aim to be a company that always meets the demands of the manufacturing sites.

2018“Porter Prize” recipient(Sponsor: Hitotsubashi University Graduate School of International Corporate Strategy (ICS))The company's unique inventory expansion strategy and logistics system haveearned the trust of customers, who say “TRUSCO has it in stock.” The company's
unique efforts to improve convenience without appealing to sales price werehighly evaluated.
Companies receiving the award in 2018
TRUSCO NAKAYAMA Corporation,
Hoken No Madoguchi Group Inc.,
MonotaRO Co., Ltd., and RIZAP, Inc.

Be an Ultimate Master Wholesale

About the “Porter Prize”
Details can befound by scanning
the QR code above.

The Porter Prize was established to enhance the competitiveness of Japanese companies. The name of the award is derived from Harvard University
professor Michael E. Porter. The prize is awarded to companies that achieve
high profitability using unique, outstanding strategies.

Product Strategy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

32. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

38

Distribution Strategy

2020

Selected as a “DX Stocks 2020” company“DX Grand Prix 2020” recipient

Sales Strategy(Sponsors: Ministry of Economy, Trade and Industry (METI) and the Tokyo Stock Exchange)“Intuition and assumptions can sometimes lead to fatal mistakes. We want to
use the data analysis and utilization as a foundation for moving forward to thenext stage.” In addition to this awareness by top management, the company was
highly evaluated for converting data analysis into creative services by utilizing AI
and other technologies.
“DX Grand Prix 2020” recipients
TRUSCO NAKAYAMA Corporation and Komatsu Ltd.
Companies selected as a “DX Stocks 2020” companies
35 companies in total, including Kajima Corporation and Fujitsu Limited

Details can befound by scanning
the QR code above.

22

Digital Service Strategy.....................................................................................

44

About “DX Stocks” and the “DX Grand Prix”
Listed companies that have established internal systems to promote digital transformation (DX), which will lead to increased corporate value, andthat have demonstrated outstanding achievements in the use of digitaltechnology are selected as “DX Stocks” companies. Among those selected,
companies that are leading the way in the digital age are awarded the “DX
Grand Prix”.

Human Resources/Financial Strategy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

50

2020

Information Technology Award “IT Grand Prize” Recipient(Digital Transformation category)(Sponsor: Japan Institute of Information Technology)

TRUSCO was recognized for the high level of results it has achieved by improving the efficiency of the entire industry through the development of IT systems
and for improving operational efficiency and business innovation throughout the
supply chain through the establishment of various mechanisms, including theautomation of quotations using AI.
2020 “IT Grand Prize” Recipients(Digital Transformation category): Trusco Nakayama Corporation
Customer/Business Functions category: All Nippon Airways Co., Ltd.
Social Problem Solving category: Kochi Prefecture (prefectural government)

20

Integrated Report 2021

About the “Information Technology Award”
Details can befound by scanning
the QR code above.

This award is given to companies and organizations that are recognized
as having made outstanding efforts and achieved outstanding results in“management innovation using IT.” The awards have been held for 38 years
since 1983.
Integrated Report 2021

21

Product Strategy
Number of items in inventory

Full Line-up of PRO TOOL

Listed in TRUSCO Orange Book.Com:2,337,220

PRO TOOL in general refer to tools, operational supplies, consumables, and machinery required by professionals (workers/craftspersons) in manufacturing sites such as factories and construction
sites. We carry a wide array of PRO TOOL products and as many
as possible. By stocking not only the best-selling products but
also all products with the same or similar functions, we are able torespond accurately to our customers' needs. We will continue tooffer an abundant product lineup and inventory to help customers
expand their businesses.

Total number of items in inventory

45.17 million

Inventory Value

Total Number of Suppliers

471,000

In inventory:

442,436

Private Brand Products:

67,700Information current as of December 31, 2020

Distribution

2,652

Listed in TRUSCO Orange Book:

Products$387 million

Corporate
Mission442,436 items

Value Creation

Inventory Strategy

Product Inventory(2,440 suppliers in Japan, 212 overseas)

Increasing the number of items ininventory contributes to improving
customer convenience

Number of items listed in
TRUSCO Orange Book.com

2020
Number of items
in inventory

Tatsuya Nakayama

Ratio of PB
products ininventory (%)

Promoting expansion plan PB Products
Added 40,000
PB products

PB
90,600PB
NB
429,400

NB
2020

2021

2022

(planned)2023(planned)

Consolidated
Accounting Started(planned)

Sales
Constitution
Ratio
of Available
Products
Sales
Constitution
Ratio
of Available
Productsshows the distribution ratio of Sales by category. Sales data current as of December 31, 2020.
Figures in brackets are from the previous year provided for comparison.
1 Cutting Tools

2 Production
Processing Tools 7.6％

3.1％

3

4

Construction Supplies 11.5％

Sales $61 million

Sales $151 million

Sales $229 million

Sales $369 million(-13.9%)(-9.9%)(-1.3%)(-0.7%)●

Cutting Tools
Drilling tools●●

Pneumatic tools
Welding equipment●●

Measurement equipment
Mechatronics●●●

Threading cutting tools●

Tools for machine tool, etc.

●

Civil engineering equipment, etc.

●●

5 Hand Tool

16.1%

Sales $321 million

0.7％Work Supplies 18.6％(-6.6%)

Cutting goods
Grinding and polishing goods
Chemical products, etc.

Electric power tools andaccessories●Pneumatic tools and accessories●Hand Tools, etc.
●

2024

Cutting Tools

Product Information
Registration Screen
This system allows users to
add and prepare detailed
product information,
product image data, etc.

Logistics/

6 Environmental
Safety Supplies 18.0％

7 Storage Supplies 10.7％

Sales $359 million

Sales $213 million(＋6.1%)(-13.0%)Protective equipment ●Safety goods●

Environmental improvement goods●

Air conditioning goods, etc.

●

●
●
●

Engine pump

Lubricant

8 Laboratory Supplies 4.4％

Supplies/
9 Office
Storages

Ball bearing

Sales8.2$87％million●

Transportation goods●

Containers and vessels

●

9.1％

Sales $181 million(-1.4%)(-1.9%)

Loading goods

Electric drill driverTool wagons●

Storage and management goods●

Work benches, etc.

●

10 Other products 0.9％
Sales $17 million(＋22.6%)

Cleaning utensils
Office miscellaneous goods
OA business machinery, etc.

Corporate Data

Integrated Report 2021

9-monthfinancial results(planned)

4.3％
TRUSCO product database “Sterra” user interface

222010 2011 2012 2013 2014/3 2014/12 2015 2016 2017 2018 2019 2020 2021 (year)

The Nakayama
visually impaired
welfare foundation

Our company has 2,652 sales agents, the largest number in theindustry, giving us the ability to supply millions of items. The numberof requests of data from EC customers, whose demand is growing
remarkably, continues to increase, and the contents of such requests
are becoming more sophisticated with each passing day. In cooperation with our suppliers, we will focus on data maintenance maximally,as the quality of the data will determine the future of our performance.

212,500*Ratio of products delivered from our company stock divided by our total number of orders.

(Fiscal years when products added to Orange Book)

Advanced product data promotion

79.6%

192,400

264,500

Relationships with
Stakeholders

2019

520,000

124,000 141,000 164,500

231,300

Environmental
Efforts

By steadily implementing our five-year PB products expansion plan,we will strengthen our lineup of private brand (PB) products, which
are the mainstay of our earnings. At the same time, we will proactively
promote the shift to environmentally-friendly packaging and packing
materials with a focus on non-plastic materials. We will also begin inhouse manufacturing of items that should be produced in-house inview of the current social situation.

336,800

Corporate
Governance

Number of NB and PB products in inventory and ratio of PB products

478,000
392,100 442,436

Corporate

The wide range of products we have accumulated is the “dam” of an industry that can keep up with changes in social conditions.
We will focus on strengthening the task of creating a series of flow from purchasing to sales planning.

374,600

84.0

Number of items in inventory

items

91.0%

82.3 83.1

91.0 91.5

298,900

124,000

items

Inventory Hit Rate*

79.6 80.7

2010

442,43688.8 89.5 89.9 90.5

86.8 88.2

Human Resources/
Governance andFinancialSocial Contributions

Improve inventory management efficiency bystrengthening the integrated system frompurchasing to sales planning

Inventory Hit Rate (%)

Digital Service

We are continually expanding our inventory items with focus on longtail products and strengthening prompt delivery systems to customers.
Expansion of the number of items in inventory has resulted in a product inventory offering that is 3.6 times the size it was 10 years ago an
inventory hit rate that has risen by approximately 11.4 points over thelast 10 years. This contributes to customer convenience.

(Information current as of December 31, 2020)

Senior Executive Officer
General Manager of the Product Division

Number of Inventory Items/Inventory Hit Rate
Sales

2.33 million items

Expansion of the number of items in inventory has resulted in
an inventory hit rate that has risen by approximately 10 points
over the last 10 years.

Safety shoe

Trolley

Custom wagons

Industrial cleaner

Integrated Report 2021

23

Generality = Emphasize
Stock Turnover Rate

Emphasize Stock Hit Rate

We believe we receive orders thanks tostocks of various kinds of items. We don’t
stock only the best seller items, but westock the products our customer will needin advance.

We believe the greatest barometer of ourservices is the stock hit rate that shows
which orders were fulfilled from stock todelivery.
Stock hit rate: 91.0%

Establishment of Cut Depots
Dedicated to Cutting Tools

We are able to provide immediate delivery for evenlong tail products that have a low order frequency.
By stocking all colors and sizes regardless of whatsells, we have created a one-stop environment forour products.

We have set up cut depots that stock cutting tools,
which are the greatest consumable in factories, atthree distribution centers in Japan, making those
products available for immediate delivery.

Order Frequency

Long Tail Products

Product Items

OSG Corporation Kyocera Corporation(Information current as of December 31, 2020)

Sandvik K.K.

Dijet Co., Ltd.

Start of Development Private
Brand Products in 1964

MOLDINO

Union Tool

Tungaloy Corporation

Mapal

Kennametal Japan Ltd.

Stocking products of 12 major cutting tool manufacturers

PB Goods Sales (Million USD)

28,700 32,800

238 238 264

We refer to large and long products that are difficult to manage and ship as “Difficult-to-Deliver”
products. We are able to meet all orders by actively
stocking these products.

We keep catalogs of manufacturers so that we canprovide information immediately when detailed information about a product is needed. As with products, our catalog inventory is managed using bar
codes, which allows for more customer business
opportunities.

It is common for seasonal products to be stocked
only in quantities that can be sold out during theseason. However, in order to meet the demand forthe last units, we keep more inventory than theseasonal demand and respond to orders throughout
the year.

409
374 406385 4112012 2013 2014/3 2014/12 2015 2016 2017 2018 2019 2020 2021 (year)
9-monthfinancial results

Consolidated
Accounting Started(planned)

Received Multiple Good
Design Awards

Products Based on Ideas
from Employees

Deeply focus on quality
control

The Japan Institute of Design Promotion presents
awards to products and services with superior
design every year. TRUSCO has received Good
Design Awards 13 times for many of its products
including carts, air dusters, and hip roof tool
boxes.

The PB Idea Box is a system for employees topropose ideas for new products. Approximately
100 new ideas are presented each month, somewhich lead to the creation of various unique PB
Products.

We established the PB (Private Brand) Quality
Control Section to manage the quality of PB products. We are striving to enhance quality throughmeasures that include the plans to prevent
recurrence when a deficiency occurs as well as
product improvements.

RESL-BK
Double Face Backpack

TPBC-BK
Waterproof Tarpaulin Boot Case

Corporate Data

Ability to supply even the last unit of a productin seasonal demand

56,500

The Nakayama
visually impaired
welfare foundation

We carry catalogs from around 600 manufacturers.

345
213 320

50,40067,700 79,000

Relationships with
Stakeholders

Inventory of seasonal products year-round

35,40038,700 41,500

45,60059,500

Environmental
Efforts

Inventory of Manufacturer Catalogs

Integrated Report 2021

PB Products

We launched “Komyotan”, our first private
brand product, in 1964. This began by bulk
breaking products that were only sold aseighteen liter drums at the time, which was
the first step in the history of our private brandproducts.

(2018 Good Design Award winner)

24

Shift in PB Goods Sales and Number of PB Products

Komyotan powder for rust,
corrosion and seizure prevention

Stocking “Difficult-to-Deliver” products

We also have 7m ladders in stock

PB Product - Approaching 70,000 items

Corporate
Governance

Mitsubishi Materials
Corporation

When an order is incorrect, a return can be automatically accepted for unopened inventory items.
Products are collected by a delivery service thattravels fixed routes.

Metal Cut
ForestIscar Japan Ltd.

NS Tool Co., Ltd.

Accepting Product Returns
Automatically

Sales: $385 million
Sales Constitution Ratio: 19.4%

Corporate

Low

Private Brand Products

Human Resources/
Governance andFinancialSocial Contributions

High

KartioDigital Service

Keeping Long Tail Products
in stock

NAKAYAMA
Original Inventory
Logic

Hazard Runner

Having a solid inventory allows us to expand
business with online shopping companies
and increase sales. By reducing the time andeffort required to process orders, we havebeen able to significantly reduce overtime
work for our employees, which has been thedriving force behind our company's growth.

Sales(Information current as of December 31, 2020)

ZEPHIRE

Inventory Energizes GrowthDistribution

Inventory Sells

Generality = Minimize Stock

The TRUSCO brand was born out of the desire to respond to professional skills with professional quality. It
covers the widest range of auxiliary materials for factory use among all brands. At present, we are developing
at a speed of about 10,000 additional items every year and are working to further strengthen the brand.

Products

Generality = Don’t Stock
Unsellable Inventory

Developing our own brand with creative approach

Corporate
MissionBased on the belief that inventory is necessary for the convenience of our customers and for improving sales, we have developed our own approach to inventory - the NAKAYAMA Original Inventory Logic. With this thought, we are expanding our inventory using creative methods to ensure that our customers
know that TRUSCO has what they need.

Private Brand Products

Value Creation

Enhancing inventory by the NAKAYAMA Original Inventory Logic

TSM13-02V
Adhesive Tape Measure with Vertical Scale

Employees work remotely to check product quality

Integrated Report 2021

25

Overseas National Brand Products

Providing a Broad Selection of PRO TOOL in Japan

Launching the World’s PRO TOOL into JapanWe are able to provide items (National Brand Products) from around 2,440 companies procured from suppliers in Japan. The number of suppliers we work with grows by 100 or so annually so that we can provide a broad selection of products to everyone involved with manufacturing.

In October 2015, we established our Representative Office Germany in Düsseldorf to serve as a site for procuring professional
tools from around the world, mainly from Europe, where there are many high-quality tool manufacturers with long histories. We
import quality PRO TOOL from various countries to invigorate the “monodzukuri” industry in Japan.

Value Creation

National Brand (NB) Products

Corporate
Mission
Products
Distribution
Sales

National Brand Products

200

Sales: $1,681 million
Sales Constitution Ratio: 80.6%

150

Overseas Procurement(Information current as of December 31, 2020)

50

Increasing our suppliers by around 100 more annually

We are always looking for products with professional specifications to provide
total support to manufacturing sites nationwide.

Change in Number of Suppliers

Product Request Advertisements
We publish advertisements torecruit new suppliers in newspapers and on our website. We are
opening avenues to products byplacing product request advertisements.

2,652 2,750
2,537
2,477
212 250
2,339 197 205
2,222 154
113

Suppliers Overseas
Suppliers in Japan

2,109 2,185 2,280 2,332 2,440 2,500
2017

2018

2019

2021

Numberof Items

Sales Constitution Ratio

21,312

3.6%

69,8395.5%

At present, TRUSCO handles the products of approximately 212 overseas suppliers from 22 countries and stock them as Japanese products in distribution centers across Japan. With a wide-ranging lineupof overseas pro tool not readily available in Japan, weoffer users increased convenience and options. We
also have a website “Sekai no PRO TOOL” where we
provide promotional information based on a wealth of
Scan the QR code to
information.
see the “Sekai no PRO

Category
01

Cutting Tools

02

Tools formachine tool

Sales
$65 million(-13.0%)Sales

342,4173.3%

08Chemical
Products$122 million

38,527

1.1%

09

Hand Tools(-22.1%)$83 million

04

Mechatronics
parts$26 million$71 million(-0.3%)

4.2%

10

Electric, hydraulic,and pneumatic tools$190 million

226,031

1.3%

11

Protective
equipment$205 million

Pneumatic
accessories$40 million

07

Electronic
Devices$34 million(-9.3%)(-1.8%)

121,551
347,870

2.0%

183,340

1.7%*Sales by category in TRUSCO Orange Book

26

3.6%

Integrated Report 2021

12

Safety goods

13

Packaging
goods

14

Construction
and Lighting
Equipment(-6.1%)(＋15.8%)$45 million(-4.1%)$137 million(＋0.9%)$188 million(-4.4%)

Sales Constitution Ratio

Category

Sales

10,872

6.1%

15

Loading
goods$71 million

101,003

7.5%

Logistics/Stor16
age Supplies(-8.2%)$110 million(-11.7%)

104,6819.5%

17Conveyanceequipment$77 million

180,420

10.3%

18

Cleaning andsanitation goods$112 million(-18.1%)(＋6.8%)

53,3822.3%

19

Environmental
improvement goods$82 million

35,902

6.9%

20

Gardeningequipment$18 million$88 million

9.5%

Office Sup21
plies/Storages
Researchequipment$47 million

127,56922(-1.3%)(＋17.9%)(-6.2%)(-1.0%)

99,357

3.9%

32,592

5.6%

GEDORE(Germany)[gloves andprotective clothing][work tools, tool carts,and torque wrenches]

Rubbermaid
(USA)

Uvex
(Germany)[containers, platform trucks,
and cleaning supplies][safety glasses, gloves,and ear plugs]

19,661

4.1%

20,7130.9%

160,547

4.4%

Wera(Germany)

Comau(Italy)118,384

2.4%[screwdrivers, bits, andtorque wrenches][power-assisted suits]

2017

2018

2019

48

250
56

2020

2021
(planned)

Representative Office
Germany (Düsseldorf)

Major Overseas Suppliers (honorifics omitted)
Ansell(Belgium)

37

42

212

We are speeding up our efforts to find new suppliers
and strengthen partnerNorihiro Higashi, Shota Sasaki,
ships in Europe.

Denmark
The Netherlands

Representative
Office Manager

Belgium
UK
FranceSwitzerland

Supervisor

PolandAustria
Greece

China

India

Spain
Italy
IsraelSouth Korea
TaiwanVietnamThailand

MalaysiaUSA

US Office
We continue to look forand obtain products
from US manufacturers.

New Zealand

TRUSCO imports PRO TOOLs from 22 countries around the world

OPEN ▶ Click here for a list of the main manufacturers that we offer products from

Corporate Data06(-7.4%)

85,409(-7.2%)(-2.7%)(＋1.8%)$150 million

Numberof Items

31

2016

205

154

113
26

197

The Nakayama
visually impaired
welfare foundation

Measurement
equipment

Hardwareand building
materials

Category$21 million

03

05

Sales Constitution Ratio

Overseas Product Sales(Million USD)

TOOL” website.

(planned)

Sales and composition ratio by product category in the Trusco Orange Book (fiscal year ended December 31, 2020)
Numberof Items

Suppliers Overseas

Relationships with
Stakeholders

2020

Overseas Suppliers and Overseas Product Sales

Environmental
Efforts

2016

Sales are growing in proportion to the increase in overseas suppliers.

TRUSCO also carries productsthat are difficult to obtain in Japan

Corporate
Governance

We have a list of suppliers that
we have rejected because they
do not do what we are looking for.
Product request advertisements
are managed through the Sagashitemasu BOX made available on
our intranet and employees in thesales field write in the box daily tocultivate suppliers.

Total Number of Suppliers

Corporate

Yattemasen List

Human Resources/
Governance andFinancialSocial Contributions

Sales: $48 million
Suppliers: 212

100(Information current as of December 31, 2020)

Digital Service

250

Hisei Syou,
Overseas
Procurement
SectionIntegrated Report 2021

29

2,652 manufacturers

Only some manufacturers are listed (295 companies).

A~E
A&D Co., Ltd.
ABC TRADING Co., Ltd.
ACHILLES CORPORATIONALINCO INCORPORATEDAM PRODUCTS, Inc.
AMANO CORPORATIONANEST IWATA Corporation
AQUASYSTEM Co., Ltd.
AS ONE CORPORATIONASADA CORPORATIONASAHI KASEI ADVANCE CORPORATIONASAHI METAL INDUSTRY Co., Ltd.
ASAHI SANGYO
Asahipen Corp.
ASICS Corporation
ASOH Co., Ltd.
ATOM CORPORATIONBELLSTAR ABRASIVE MFG. Co., Ltd.
BIG DAISHOWA Co., Ltd.
BLASTON
Bosch
BURRTEC Co., Ltd.
CAR-BOY CORPORATIONCEMEDINE Co., Ltd.
CHIYODA TSUSHO Co., Ltd.
CHUHATSU HANBAI Co., Ltd.
CHUKOH CHEMICAL INDUSTRIES, LTD.
CKD CORPORATIONCOSMO BEAUTY Co., Ltd.
CUSTOMDAIDOHANT Co., Ltd.
DAIHEN Techno Support Corporation
DAIKEN Co., Ltd.
DAILITE Co., Ltd.
DAINICHI Co., Ltd.
DIATEX Co., Ltd.
DIC PLASTICS INC.
DJI
DUNLOP HOME PRODUCTS, LTD.
DuPont Toray Specialty Materials K.K.
Earth Chemical Co., Ltd.
ELECOM Co., Ltd.
ELEPHANT CHAIN BLOCK Co., Ltd.
Elleair Business Support Corporation
ENDO KOGYO CO., LTD.
ENGINEER INC.
ERECTA INTERNATIONAL CORPORATIONEXEN CORP.

F~J
FUJI GLOVE Co., Ltd.
FUJI TOOLSFUJII DENKO Co., Ltd.
FUJIIMPULSE Co., Ltd.
FUJISAWA INDUSTRY Co., Ltd.
FUJIYA Co., Ltd.
FUSO SEIKI Co., Ltd.
Gentos Co., Ltd.
Gifu Plastic Industry Co., Ltd.
H.H.H.MANUFACTURING CO.
HAGIHARA INDUSTRIES INC.
HAKKO CORPORATIONHAKKO ELECTRIC CO., LTD.
HAKKO HANBAI Co., Ltd.
HAMMER CASTER Co., Ltd.
HASEGAWA KOGYO Co., Ltd.
HASHIMOTO CLOTH
HATAYALIMITEDHENKEL JAPAN LTD.
HIKARI Co., Ltd.
HIOKI E.E. CORPORATION
Hitachi Global Life Solutions, Inc.
HONDA MOTOR Co., Ltd.

HOUSE BMHOZAN TOOL INDUSTRIAL Co., Ltd.
ICHINEN MTM CO., LTD.
ICHINEN TASCO CO., LTD.
Icom Inc.
IKURA SEIKI Co., Ltd.
IMAO CORPORATION
Inaba Corporation
Industry Kowa Co., Ltd.
Innovex Co., Ltd.
INOAC CORPORATIONIRIS OHYAMA Inc.
ISCAR JAPAN LTD.
ISHIHASHI SEIKO
Ishikawa Seisakusho Corporation
ISHIZAKI ELECTRIC MFG. Co., Ltd.
ITW PP&F Japan
JAPAN GREEN CROSS, INC.
JAPAN Vilene COMPANY, LTD.
JEFCOM
JOHNAN CORPORATIONJVC KENWOOD Corporation

MOTOYUKI Co., Ltd.
MURAKI CO., LTD.
MURAKO Co., Ltd.
MURATEC-KDS CORP.
MUROMOTO TEKKO Co., Ltd.
MYZOX Co., Ltd.
NAIKI Co., Ltd.
NAKAMURA Mfg Co., Ltd.
Nakanishi Metal Works Co., Ltd.
NAKANISHI, INC.
NAKAO Co., Ltd.
NAKATOMI CORPORATIONNEWREGISTON Co., Ltd.
NICHIBAN Co., Ltd.
NICHIDO IND. Co., Ltd.
NICHIFU Co., Ltd.
NICHILAY MAGNET CO., LTD.
NIHON PISCO Co., Ltd.
NIHONSEIKI Co., Ltd.
NIIGATASEIKI Co., Ltd.
NIKKO Co., Ltd.
NIKKO STEEL WIRE RORE M.F.G. Co., Ltd.
NIPPECO LTD.
NIPPON FILING Co., Ltd.
NIPPON PAPER CRECIA Co., Ltd.
NIPPON PLASTER Co., Ltd.
NIPPON PNEUMATIC MFG. Co., Ltd.
NIPPON POP RIVETS AND FASTENERS LTD.
NIPPON RESIBON CORPORATIONNISSA CHAIN Co., Ltd.
NITOMS INC.
NITTO DENKO CORPORATIONNITTO KINZOKU KOGYO Co., Ltd.
NITTO KOHKI Co., Ltd.
NOGAWATERS Ltd.
NORITAKE COATED ABRASIVE Co., Ltd.
NORITSUISUNS TOOL CO., LTD.
O.H.INDUSTRIAL Co., Ltd.
Office Mine, Inc.
Okamoto Industries, Inc.
OLFA CORPORATION
Omikogyo Co., Ltd.
ORION MACHINERY Co., Ltd.
OSAKA JACK Co., Ltd.
OSAKA KAKUTA KOGYO CO., LTD.
OSAKA SEIKAN Co., Ltd.
OSAKA TAIYU Co., Ltd.
OSG CORPORATIONK~O
KAJIMEIKU Co., Ltd.
Kaneko Mfg Corporation
KANETEC Co., Ltd.
KANTOH Co., Ltd.
KARCHER JAPANKATSUYAMA KIKAI, LTD.
KAWANISHI INDUSTRY Co., Ltd.
Kikuchi Sheet Co., Ltd.
KING JIM Co., Ltd.
KINKI SEISAKUSYOKITO CORPORATION
Ko-Ken Tool Co., Ltd.
Koki Holdings Co., Ltd.
KOKUYO Co., Ltd.
KOMY Co., Ltd.
KONISHI Co., Ltd.
KONNO CORPORATIONKONOEKOSHIN LTD.
KOTOHIRA
Kowa Company, Ltd.
KUCHOFUKU CO., LTD.
kuraray trading Co., Ltd.
KURE ENGINEERING Ltd.
KURODA BRUSH
KYOCERA CORPORATIONKYOMACHI Co., Ltd.
KYOTO TOOL Co., Ltd.
LED LENSER JAPAN Inc.
LOBTEX Co., Ltd.
MAEDA SHELL SERVICE Co., Ltd.
Makita Corporation
MARUWA CHEMICAL Co., Ltd.
MARUYASU KIKAIMARUZEN FABRIC & Co., Ltd.
MASADA SEISAKUSHO Co., Ltd.
Matsuura Industry Co., Ltd.
MAX Co., Ltd.
MAX Corporation
Maxell Holdings, Ltd.
Maxell Izumi Co., Ltd.
MCC CORPORATIONMIDORI ANZEN Co., Ltd.
MINITOR Co., Ltd.
Mitsubishi Chemical Infratec Co., Ltd.
MITSUBISHI MATERIALS CORPORATIONMITSUGIRON Co., Ltd.
MITSUI CHEMICAL, INC.
MITUTOYO CORPORATIONMIYANAGA Co., Ltd.
MIZUHO KASEI KOGYOMIZUMOTO MACHINE MFG. Co., Ltd.
MIZUSHIMA KOGYO
MOMENTIVE PERFORMANCE MATERIALS INC.
Integrated Report 2021

P~T
PANASONIC CORPORATION
Panduit Corp. Japan Branch
Pelican Products, Inc.
Pica Corp.
REX INDUSTRIES Co., Ltd.
Ridge Tool Company
RIKENOPTECHSaint-Gobain K.K.
SAKAI CHEMICAL
Sandvik
SANKIN CORPORATIONSANKO Co., Ltd.
SANKO INDUSTRIES Co., Ltd.
SANKO TECHNO Co., Ltd.
Sanritsu-kiki Co., Ltd.
SANSHIN METAL WORKING Co., Ltd.
SANWA SUPPLY INC.
SARAYA Co., Ltd.
SEISANNIPPONSHA LTD.
SEIWA ELECTRIC MAKER Co., Ltd.
SEKISUI CHEMICAL Co., Ltd.
SHIGEMATSU WORKS Co., Ltd.
SHIN-ETSU CHEMICAL Co., Ltd.
SHINFUJI BURNER Co., Ltd.
SHINKIGOSEI Co., Ltd.
SHINWA RULES Co., Ltd.
SHIZUOKA SEIKI Co., Ltd.
27

SHOWA DENKI Co., Ltd.
SHOWA GLOVESIMON CORPORATIONSINKO CO., LTD.
SISIKU ADDKREIS CORPORATIONSMC CORPORATION
Snap-On Tools JAPAN K.K.
ST PRO CORPORATIONSUGATSUNE KOGYO Co., Ltd.
SUGICOSUGIYASU Co., Ltd.
SUIDEN Co., Ltd.
SUIKO Co., Ltd.
Sumico Lubricant Co., Ltd.
SUPER TOOL Co., Ltd.
SUS Corporation
SUZUKI KIKOH CO., LTD.
TAIYO KOGYOTAIYO SEIKI IRON WORKS Co., Ltd.
TAIYO, LTD.
TAKAGI Co., Ltd.
TAKAGI KOGYO Co., Ltd.
TANIZAWA SEISAKUSHO, LTD.
TEIJIN FRONTIER Co., Ltd.
TENMA CORPORATIONTERADA PUMP Co., Ltd.
TERAMOTO CORPORATION
Teraoka Seisakusho Co., Ltd.
THE YAMAZAKI CORPORATION
ThreeBond Co., Ltd.
TJM DESIGN CORP.
TOA TSUSHO Co., Ltd
TOGAWA INDUSTRY CORPORATIONTOHNICHI Mfg Co., Ltd.
TOKYO MEDICAL Co., Ltd.
TONE CO., LTD.
TOP KOGYO Co., Ltd.
TOWA CORPORATION LTD.
TOYO KOKEN K.K.
TOYO MATELAN Co., Ltd.
TOYOTOMI Co., Ltd.
TSUBOSAN FILE Co., Ltd
TSUKASA CHEMICAL INDUSTRY Co., Ltd.
TSURUMI MANUFACTURING Co., Ltd.
TUNGALOY CORPORATIONU~YUHT CORP.
ULVAC KIKO Inc.
UNIKA Co., Ltd.
UNION TOOLUNIT
VESSEL CO., INC.
Vilene Create Company, Ltd.
WAKITA Corporation
WAKOPALLET Co., Ltd.
Wera
YAESU MUSEN Co., Ltd.
YAMABIKO CORPORATIONYAMADA CORPORATIONYAMAHA MOTOR POWERED PRODUCTS Co., Ltd.
YAMAMOTO KOGAKU Co., Ltd.
YAMATO SCIENTIFICS Co., Ltd.
YAMATOSANGYOYAMATO-SCALE Co., Ltd.
YAMATOSEITOSYO JAPAN CORPORATIONYAMAWA MFG. Co., Ltd.
YODOGAWA ELECTRIC TOOL MFG. Co., Ltd.
YODOGAWA STEEL WORKS, LTD.
YOKOHAMA OIL & FATS INDUSTRY Co., Ltd.
YOSHINO LIMITEDYUEI Co., Ltd.
YUTAKA MAKE Co., Ltd.

Other
3M JAPAN LIMITED

Integrated Report 2021

28

Value Creation

TRUSCO Orange Book

Customer Support Tool

TRUSCO Orange Book - “Great Dictionary of Monodzukuri”
used at various manufacturing sites

The tools needed for use at manufacturing sites vary greatly according to the times. There are also different situations that makeprocurement challenging, such as work sites that are offline and performing product searches without knowing product serial
numbers. TRUSCO aims to provide the highest level of convenience in tool procurement in order to respond to any situation.

Products

Our catalog lists every sort of PRO TOOL that is required on the “monodzukuri” production floor. This is a professional tool catalog that supports efficient product search andprocurement with a magazine-like composition that allows you to obtain delivery date
information and find out about popular products at a glance. From 2020, the catalog
page size was changed to A4, allowing more information to be provided
on a single page so that you can see more at a glance. We also offer the“TRUSCO Digital Orange Book*,” which combines the reading ease of a
printed catalog with the portability and searchability of the web.

Corporate
MissionAiming to provide customers the most convenient tool in procurement Pro Tool

The Orange Book Rack (single-piece book holder) has beenregistered as a design*English version available
Distribution

TRUSCO Orange Book.Com
Product search site listed all the information users need toacquire Pro Tool

Sales
Digital Service

This comprehensive site supports product searches and the purchase of PRO TOOL. Information on the products we handle is available, as are SDS forms (Safety Data Sheets),
schematics, and more. In addition, site members can request productestimates, place orders, and even check inventory in real time. It is a system that we are continuing to build in order to support smooth business
transactions and assist our customers in their sales activities.

Also accessible via tablet or smartphone

TRUSCO AI Orange Rescue
AI Chatbot (automatic chat program) responds instantly
even voice searches

Listed items: approx. 471,000, Inventory items: approx. 404,000
Off-the-shelf rate: 85%, Manufacturers listed: 1,851, Page count: 17,136, Weight: 24 kg

Perspicuity

Catalogs that fit diversifying sales channels
TRUSCO Construction Tool Book

This catalog gathers representative
excerpts from every product category
into one book.

This catalog features a lineup of PRO
TOOL required for construction andother work sites. The cover is UV laminated for improved water and weather resistance. This means that you
can even use it at work sites withoutworrying about it getting damaged.

Integrated Report 2021

Pages: 290 (A4 size)
Number of items listed: 376
Number of manufacturers listed: 328
Price: $5 (price includes tax)
Front Cover: 2018: Mansai Nomura
2019: Mari Watanabe
2020: Rie Tanaka
2021: An artisan working at
manufacturing site

A guidebook for PRO TOOLs, COCOMITE features basic product knowledge,
simple explanations of points forselecting products, and more. Thispublication makes selecting products
more efficient.
Pages: About 860 (B5 size)
Price: $30 (price includes tax)
Note: An English version of this publication
titled COCOMITE UNIVERSAL is alsoavailable.

Search and information website for PRO TOOLs.

Corporate Data

30

OfflineVarious catalogs according to purpose

Pages: 708 (A4 size)
Number of items listed: About 24,000
Number of manufacturers listed: 695
Price: $10 (price includes tax)

This catalog magazine features upto-date information on items recommended by manufacturers.

COCOMITE

The Nakayama
visually impaired
welfare foundation

The catalog was born from the conceptthat it would be more convenient for users
if the catalogs of each manufacturer wereconsolidated and prices as well as partnumbers were integrated.

OnlineNote: A Thai version as well as a version
for the Indonesia market (2020-2021
version) have also been published.

(Registered Trademark)

TRUSCO PRO TOOLMAGAZINE ICHIOSHI

Relationships with
Stakeholders

TRUSCO Orange
Book Jr.

Pages: 1,488 (A4 size)
Number of items listed: About 42,000
Number of manufacturers listed: 1,140
Price: $20 (price includes tax)

Name of catalog is changed “Nakayama
Shoho” to “Orange Book” in 2000.
Note: Photo above shows the handbook version (small size version)of the Orange Book.

Desired products are easily found also by fuzzy search

Environmental
Efforts

Providing products monodzukuri sites need

“I'm looking for a woman's safety helmet.”

Corporate
Governance

we are developing not only catalog functions and web product search functions but also AI-based product search services. We provide tools suitable for a variety of manufacturing
sites, most of which are linked to our inventory, to improvethe convenience of PRO TOOL searches and procurement.

AI Chatbot is a product search service that uses artificial intelligence (AI). It is capable of instantly finding the most suitable product from over 2.3 million items. Even if you do not know thespecific industry name for the tool, manufacturer name, product name, or model number, you can easily narrow down the products you want using the voicesearch function and guided chat function. The AI “learns” the search results toimprove accuracy day by day, helping to improve the efficiency of operations.

Corporate

Providing tools suitabale for “Monodzukuri” sites
We launched our first product catalog “Nakayama Shoho”(“Nakayama Business Bulletin”) in 1964. At that time, there
were no catalogs that combined products from multiple
manufacturers, and it was the first product catalog in theindustry that provided users with real convenience. Currently,

Human Resources/
Governance andFinancialSocial Contributions

TRUSCO Orange Book 2021

Searchability

Integrated Report 2021

31

Distribution Strategy
Value Creation

Distribution system
Inventory Hit Rate

91.0%

Number of Distribution Centers

26

We are evolving logistics to meet the request from our customers, we will deliver “Just what is needed, only when needed,

Planet South Kanto

AutoStore(Isehara City, Kanagawa)(high-precision storage system)

only in the quantity needed.”Number of delivery runs

270

By locating distribution centers throughout Japan, we areable to achieve same-day delivery with the minimum lot. We
have introduced the world's most advanced logistics equipment to cope with the ever-increasing number of shipments
and to improve the speed, accuracy, and quality of delivery.
Our company is reinforcing its immediate delivery system so

Number of direct deliveries
to users

that our customers can always be assured that “TRUSCO
Butler®

Digital ServiceyProducts are delivered directly to the user
at the request of the customer. Freightcosts are paid for by the customer.

Stockbranch2 hours3

2 runs/day

x. 9

Planet Logistics System

0k

When an order is received by a Planet
branch, the products are shipped
directly from the Planet distribution
center to the customer.

mSatellite
branch2

2 runs/day

Products are delivered once per day byother companies' delivery runs from Planet
distribution centers to customers in areasthat are difficult to reach using regular runs.

Satellite Logistics System

Corporate Datapro

1

Transport Service

The Nakayama
visually impaired
welfare foundation

3 hours

Direct Delivery Service

Relationships with
Stakeholders

2

unPlanetbranch4

Environmental
Efforts

1 runs/day

One-way: 1 hour

eR

km
Ap

Automation/Labor Saving

Users

1 runs/day

lit
tel
Sa

60

Convenience and Operational Efficiency

TRUSCO delivery routes
Other companies'
transport runs
Customers
Users

Far Away
Customer

PlanetDistribution
Center1

0 km*Inventory Hit Rate: Ratio of products delivered from our company stock among our total number of orders.

The system behind distribution

2 runs/day

x. 3

2023

Distribution Equipment/
Mechanical Resources

Corporate
Governance

Number of items
in inventory(thousand items)

IT/Digital

Corporate

4

26 5
26.5

Pursuit of Distribution Services

Human Resources/
Governance andFinancialSocial Contributions

1 run

3

Current Period

Delivery Costs

Delivery Quantity

s/da

44.2

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Costs/Sales

14 1
14.1

Costs/Sales

11 7
11.7

19 2
19.2

Benefit increases as sales increase
Sales

Break-even
Point

Throughout Japan, TRUSCO has built delivery routes that trace planet-like orbits around our distribution centers.
From this, we have named our distribution centers “Planet.”x.

Integrated Report 2021

33 7
33.7

Inventory
Hit Rate (%)*

Delivery Costspro

We will thoroughly pursue automation and labor saving by highly
coordinating IT (digital) and the latest logistics equipment (mechanical). In addition, we will improve both convenience and operational
efficiency by improving and strengthening the system to control theoperation of our distribution centers. We are determined to fulfill
our mission as a wholesaler by establishing a system that will allow
us to respond to our customers' needs completely.

89.5
89 5

Fixed-Cost Based Distribution

Sales

Routes that achieve immediate delivery (Planet & Satellite Distribution System)

52 0
52.0

91 1
91.0

Variable-Cost Based Distribution

Delivery Quantity

Ap

Optimal strengthening of our delivery capabilities

78 7
78.7

high frequency deliveries)

In fixed-cost based distribution, delivery costs remain fixed even if sales increase.

1,994

9-month financial results 1,822

83 1
83.1

high frequency deliveries)

as with express home delivery services, etc., “fixed-costbased distribution” involves using fixed delivery routes sothat delivery expenses are fixed regardless of the quantity ofitems delivered. As a result, we are able to provide better services to our customers, such as free deliveries (two deliveries
per day) and the ability to return items in stock.

roApp

We maintain an uncompromising inventory, the source of ourcompetitiveness, and use our nationwide distribution network todeliver products to our customers with the shortest delivery time.
Customers can always find the professional tools they are looking
for and have them delivered immediately. Whether online or real,
we will implement every possible measure to forge our logistics
capabilities to give the concept “Trusco has it” at a high standard.

Changes in Number of Items in Inventory and Sales Consolidated Accounting Started Sales (Million USD)
927
992

Fixed-Cost
Fixed-Cost
Based
Based
Distribution
Distribution(Suitable Based
forBased
small
lot
and
Fixed-Cost
Fixed-Cost
Distribution
Distribution

We have created a unique logistics system that establishes
fixed freight costs. In contrast with variable-cost based distribution where costs are incurred for each individual delivery

Hideki Naoyoshi

1,362

Variable-Cost
Variable-Cost
Based
Based
Distribution
Distribution(Not suitablefor Distribution
small
lot and
Variable-Cost
Variable-Cost
Based
Based
Distribution

Unique fixed-cost based distribution

We offer the largest selection of PRO TOOL in the world, not just the largest selection in Japan, and deliver them to our customers
nationwide using our immediate delivery system in various delivery formats such as standard delivery and direct delivery. In orderto fulfill our mission as a wholesaler, we will thoroughly pursue the highest level of logistics services, both online and real, by
combining automated facilities with a high degree of structure and know-how.

Improving convenience by strengthening
our immediate delivery capabilities

Planet South Kanto (Isehara City, Kanagawa)26 distribution centers are located throughout Japan(Automated conveyance robots)(high-speed automated packaging and shipping line)

Director
General Manager of the Distribution Department

Logistic Centers

Sales

I-Pack®

will deliver.”Pursuing the highest standard in distribution
through general mobilization of our distribution
network, inventory, and IT

32

Planet Saitama (Satte City, Saitama)

Distribution(TRUSCO delivery runs includedin above: 110, 40.7%)(As of December 31, 2020)

Products

Building an immediate delivery systemutilizing a nationwide distribution network(includes 9 Stock Centers)

2.65 million per year

Corporate
Mission“To run distribution is to win the business”

About 10,000 to 30,000 items are stored in basic inventory at satellite
branches. Other products are replenished at the branch through satellite
runs from the distribution center once a day and are delivered the following morning.

Integrated Report 2021

33

Utilizing a variety of logistics equipment according to product size and shipping frequency
Large

7

Electric moving
pallet racks

6 Automated pallet
warehouse

PalletRacks

Product Size

Shelf Area
3 Butler®
Shelf Area

We offer high-density storage of buckets (containers) of small- and medium-sized
products that are characterized by many varieties and relatively low inventory
volume for each product. Cranes are used to transport the buckets. This allows
for many products to be efficiently managed by a small number of workers.

4 AutoStore

Shipping Capacity 110 shipments/h (1 station)

5 Automated bucket warehouse

Work Performed by approx. 3 Workers/h

Small
Low

Shipping
Frequency

High

South Kanto

Tokai

Sorting capacity of 1,800 containers/h

Saitama

Shiga

Osaka

Kobe

TohokuSaitama

Osaka

Kobe

East Kanto

South Kanto

Tokai
Sales

1

Tohoku2.5x more storage capacity
East Kanto

Labor saving capability

This high-speed load assorting equipment for automated warehouses
can simultaneously perform load assorting and sorting of products. This
reduces effort and time for sorting and transport.
Distribution

Logistics Wonderland Planet Saitama
Scan the QR code to watch video.

SAS (Systema Streamer)/Shuttle Rack(high-speed picking and sorting equipment)

Products

Our distribution centers, which house the world's most advanced logistics equipment, are exactly a “logistics wonderland.” We have introduced
a variety of logistics equipment and facilities to promote labor saving
and automation. We continue to expand the number of items in stockand strengthen our immediate delivery system by realizing high-density
storage in logistics equipment according to the size of the product andfrequency of shipment, as well as high-speed receiving/shipping throughautomated sorting and packaging.

8

Automated bucket warehouse

Corporate
MissionIntroduction of a cutting-edge distribution system

5

Value Creation

Logistics Wonderland

Distribution Center where the technology was introduced

AGV (Automatic Guided Vehicles)3

Butler® (Automated conveyance robots)

6

9

Automated pallet warehouse

Just fit BOX® (Automated Packaging Machine)
Digital Service

Work Performed by approx. 2.5 Workers/h* (1 station)Work Performed by approx. 1.5 Workers/h (1 station)

Packaging Capacity 10 Workers/h

120 packages/h

2x more storage capacity*

3x more storage capacity

TohokuNorth Kanto

East Kanto

Tokai

Osaka

TohokuSaitama*Independent estimate based on TRUSCO inventory items.

1 Receiving/Transporting

2 Inspecting/Sorting

GAS (Gate Assorting System)/
DAS (Digital Assorting System)

Saitama

3 4 5 6 7 Storing/Picking
4

AutoStore (high-precision robot-based storage
system)North Kanto

East Kanto

2 Sorting/Inspection

8 Load Assorting
7

Electric moving pallet racks

SaitamaKobe

9 10 Packaging/Shipping

Environmental
Efforts

2

Shipping Capacity 35 shipments/h (1 station)

Corporate
Governance

SaitamaThis space can store large and heavy goods efficiently. Large-size cranes
are used to automatically transport products to increase work efficiency.

Corporate

Reaches speed of 3.6 km/h when moving straight forward

Shipping Capacity 70 shipments/h (1 station)*

This machine reads the three side dimensions of large and irregularshaped items, which are difficult to pack, and creates a box to fit its
size. This improves efficiency and offers same packing quality for customers.

Automated conveyance robots lift shelves and transport them to workers
in the warehouse. This reduces workers’ time walking and raises theefficiency of picking work.

Human Resources/
Governance andFinancialSocial Contributions

Automatic Guided Vehicles automatically transport products along magnetic tape laid out on the floor of the Distribution Center. It improvestransport efficiency through labor saving.

I-Pack® (high-speed automated packaging and

10 shipping line)

Relationships with
Stakeholders

Sorting Capacity 200 product types/h

Shipping Capacity 120 shipments/h (1 station)Work Performed by approx. 3 Workers/h (1 station)Work Performed by approx. 3 Workers/h (1 station)

TohokuSaitama

2x to 3x more storage capacity

Tokai

Osaka

East Kanto

Kobe

Integrated Report 2021

South Kanto

SaitamaSouth Kanto

TohokuNorth Kanto

Movable pallet trucks reduce the area of passageways and expand storage space within warehouses. It increases the storage efficiency of large
and heavy goods.

I-Pack places delivery slips inside packages and handles packaging
as well as labeling all at high speeds. Automation leads to shorter
packing time and better quality and is the key to improve direct deliveries (see p.36).
Packaging Capacity 24 Workers/h

2x more storage capacity
South Kanto

Tokai

Saitama

Shiga

Kobe

East Kanto

720 packages/h per line

Sanyo

TohokuSaitama

Tokai

Corporate Data

AutoStore maximizes space efficiency by stacking bins (plastic containers) from the floor to near the ceiling. The use of robots to transport containers to improve efficiency and reduce the amount of labor for loading/unloading work.

The Nakayama
visually impaired
welfare foundation

34

This equipment for sorting products eliminates sorting mistakes by people,
improving precision and speed. This is because the lid of the container
where a product is to be placed will open (or a light will shine to indicate
which container), prompting the worker to simply place products inside.

Osaka

Integrated Report 2021

35

265

(Unit: 10,000)

238
176

Increasing our number of delivery vehicles annually

142

133

Changes in percentage of TRUSCO delivery vehicles and changes in
number of overall delivery vehicles and TRUSCO delivery vehicles
Percentage of TRUSCO
delivery runs (%)

2015

2016

2017

2018

2019

2020

Deliverydeliveries/month
160,000Users(87.5%)

Delivery/Direct Delivery

Hokkaido
Area

Planet Kyushu

Kyushu
Area

276

276

98

110

130

147

89

2019

2020

Planet Tohoku

Chubu/
Hokuriku Metropolitan/
Area North Kanto Area

Consolidated
Accounting Started

2021(planned)

2022(planned)

System-based product expiration datemanagement

TohokuArea

Planet Saitama

List of products fordeliveryThis function reduces the delivery status inquiries

Hazardous material warehouses set up
to enhance safety

We put quality control labels to products with quality assurance expiration dates, and manage these to avoid shipping expired products. We
have established an expiration date management system that enables
accurate and efficient confirmation even when the number of productitems increases.

Due to stocking a large number of chemical products that pose a risk ofignition or explosion, we have added hazardous material warehouses atour distribution centers. These warehouses are equipped with carbon dioxide gas jets to extinguish fires for increased safety.

Quality control labels affixed to products with expiration dates

Hazardous material warehouse at Planet Saitama (approx. 284 ㎡ )Digital Service

Direct Delivery to User

270

2018

Map showing driver's
current location

Number of TRUSCO delivery routes

Planet Hokkaido

When a customer places an order but theuser is far away, we have established a system that allows us to send products directlyfrom the distribution center closest to theuser, thereby realizing same-day delivery.

Kinki/
Chugoku/
ShikokuArea

273(planned)

Estimated arrival time
display

Number of total delivery runs

30.4
293

35.9

Through T-Rate, GPS is used to acquire the location information of delivery
trucks and provide real-time delivery status information to our customers.
This makes it possible to check the location of the delivery trucks, the estimated time of arrival, and the list of products to be delivered, leading togreater convenience and operational efficiency for our customers.

Sales

Order
Customers

47.1

R

Distribution

Order2021 (year)

Consolidated
Accounting Started

40.7

53.3

Specialized app “T-Rate”
allows to check shipping status

Products

Traditional System

Delivery drivers are responsible for delivering products to customers. As
they visit the customers on time every day, they are able to listen to the
problems of the customers on the spot and respond to them quickly.

210

Direct delivery from the distribution center
closest to the user

Order Flow

Our delivery drivers (full-time employees) quickly respondto customer requests (110 delivery vehicles (40.7%))304

Number of packages shipped directly to users (by year)

Corporate
MissionBy improving direct delivery performance, we realize not only shortendelivery time but also reducing the cost of the entire supply chain byeliminating the process of delivering products to client warehouses. In
addition, due to chronic manpower shortages, the burden delivering
products from customers to users becomes heavy. Therefore, by increasing the ratio of direct deliveries from our company, customers canfocus more on their sales activities. We believe that solving logistics
issues in the industry is also our mission, so we have installed systems
such as I-Pack®, a fully automated packaging system, in our major distribution centers and are continuing to strengthen direct delivery performance. (Freight costs are paid for by the customer.)

Direct delivery requests are increasing year by year

Value Creation

Strengthening of the direct delivery
system (2.65 million deliveries per year)

Human Resources/
Governance andFinancialSocial Contributions

Planet Osaka
Planet Tokai

I-Pack® has not been installed at Planet Hokkaido or Planet Kyushu.

I-Pack® (high-speed automated packaging and shipping line)
We are introducing this system in our major distribution centers to strengthen direct shipments to users.

Corporate

Introduction of Non-Fixed Location (Free Address)
Inventory Management Systems

Fixed Location

Non-Fixed Location
Product size

Product size
B

B

A

A

C
B

Shipping Frequency

Storage equipment
capacity

Large LowHigh

Products which there
is no room for on the
primary shelves

A

Small

A

B

A
C

Shipping Frequency
Can be stored in
multiple locations as
appropriate to thestorage equipment
capacity.

Seismic isolation equipment in Planet Saitama

36

Integrated Report 2021

Corporate Data

Since locations are fixed, there is
ample space.
Also, if a product cannot be stored,
it can be placed on top of the shelf.

B

Distribution sites are located throughout Japan to reduce risk. We havebuilt a system that automatically supports other distribution sites evenwhen a distribution line is cut, such as when disaster strikes a supply
route. We also stockpile at least a six-month supply of products such as
generators, which are needed even in times of disaster, so that we can beof use to the community in times of emergency.
(130 items stored for use in emergencies)

The Nakayama
visually impaired
welfare foundation

Product size

When the Great East Japan Earthquake occurred in March 2011, Planet
Tohoku was unable to ship products due to them falling from the shelves,
even though many PRO TOOL were needed for disaster recovery. Basedon this experience, the distribution centers built since then are equippedwith seismic isolation equipment as standard equipment so that we canfulfill our responsibility to supply customers even in times of disaster.
(Centers with seismic isolation equipment installed: Planet Osaka, Planet
Saitama, and Planet South Kanto)

Relationships with
Stakeholders

TRUSCO is introducing inventory management systems that replace thefixed location method that assigns one location to one product, with a freelocation method that fills the space opened by inventory depletion with aseparate in-shipped product. This is a system where product size, shipping frequency, and storage equipment capacity data are registered in advance. When products arrive, they are guided to the best available locationin the warehouse. There is no need to set up storage locations as found ina fixed location based system. With capacity control, the system does notleave wasted space as it is, realize high-density storage.
(Centers with system installed: Planet Saitama, Planet Tohoku, and Planet
South Kanto)

After packing, the two-dimensional code on the box isread and the corresponding invoice is affixed.

Environmental
Efforts

After the delivery slip is sealed, the box size is adjusted to fit the product which is then packed inside.

A distribution system where products arecontinuously delivered even during disasters

Corporate
Governance

Performance: High-speed shipping preparation
performance of 720 packages per hour per line

Distribution centers with seismic isolationequipment (3 distribution centers)

We have stock such as generators and blue tarp sheets required for use during
disasters which should serve as a six-month supply at a minimum.

Integrated Report 2021

37

Sales Strategy
Value Creation

Route specific strategies
Factory Route$1,465 million

Face Phone in use(Kana Sato, Tokyo Branch)

PT. TRUSCO NAKAYAMA INDONESIA

e-Business RouteHome center route$158 million

We are grasping the latent needs of our customers that are not quantified
and are working to solve their problems by utilizing our product, logistics,
and digital services. By providing services suited to the characteristics ofeach route and realizing one-stop purchasing from customers to users, wewill continue to contribute to improving productivity and sales in the entire
industry.

Overseas Route $11 million(0.6%)(8.0%)

e-Business
Route$359 million(18.0%)

Factory Route$1,465 million(73.4%)
Total$1,994 million

Machinery Tool Dealers,
Welding Material Dealers, etc.

4,951

Distribution

Factory Route$11 million

Manufacturing Industry,
Construction-related
Businesses, etc.

Toward a sales style that further utilizes digital technology“MRO Stocker,” is a business model that has beenaround for many years in Japan, but for tools.

Director, General Manager of the Sales Department

Business will be smoother if we wanted
to know more, listen, and communicate

Product
Product
Inquiry
Inquiry

Is someIs timesomeafter
time3:30
afterOK?
3:30 OK?

min.
min.
1010

Approx.
Approx.

Location
LocationcheckedcheckedProducts
Products
being being
using theusing
map
the mapdelivereddelivered
today today

T-Rate screen images
T-Rate allows users to chat with distributors and check delivery status.

Home Center Route105

Outdoor Work, General Consumers, etc.

Supporting businesses that integrate physical and online businesses
The home center route involves doing business with home centers that havelarge stores nationwide and professional stores that serve craftsmen as customers. In recent years, we have been working to integrate physical and online businesses by promoting services that allow users to pick up products in stores in
response to the growing demand for omni-channel services that link stores andmail-order sites.

Overseas RouteOverseas Dealers, etc.

288

Private Brand (PB) section at ahome center

Overseas Manufacturing Industry, etc.

The Nakayama
visually impaired
welfare foundation

Implementing market-responsive measures for each business route

Home centers,
pro shops, etc.

Relationships with
Stakeholders

That isThat
fine.isI willfine.provide
I will provide
you with
you
the
with
linktheto link
the to theonline online
meeting.
meeting.

TimeTime
UntilUntil
Delivery
Delivery

We provide support for user procurement efficiency

Environmental
Efforts

Could weCouldhave
wea have
onlinea online
meeting
meetingin orderintoorder
go overto go overthe details?
the details?

Delivery
Delivery
StatusStatusWith the changing times, our sales channels continue to diversify. We will continue to establish sales methods that suited for each market.

Overseas business based on our unique strengths

Briefing session for users (manufacturers) on our electronic purchasing system
Note: In 2020, we mainly conducted web-based seminars toprevent the spread of Covid-19.

This is the route we take to do business with overseas subsidiaries of domestic
customers and customers who handle local machinery tools. We have local subsidiaries in Thailand and Indonesia, where we provide the same quality of service
as in Japan. We are contributing to the development of manufacturing in thoseregions by utilizing our unique strengths such as providing catalogs and inventory for those local markets.

Members of TRUSCO NAKAYAMACORPORATION(THAILAND) LIMITED

Corporate Data

Factory Route: Introduction of new products and new manufacturers that meet market needs
Cultivate new sales destinations that are not confined to a specific industry
e-business Route: Recommend electronic purchasing systems to users (manufacturers)
Propose a variety of products to online shopping companies
to create sales opportunities.
Home Center Route: Provide services that integrate real stores and the Internet.
Overseas Route: Realize a competitive product lineup through direct purchasing
by local subsidiaries

We are developing business for mail-order companies that sell products via theInternet and business that links the purchasing systems utilized by users (manufacturers) with our electronic purchasing system (Orange Commerce (see p.40)).
By linking data in real time and visualization of the procurement process, we arehelping our customers to improve their procurement and sales efficiency.

Corporate
GovernanceSupport of diversifying sales channels

Manufacturing Industry,
General Consumers, etc.

Corporate

By utilizing our management resources, including the products we handle and our logistics and IT systems, we are able to add
value to your business.

We will enhance customer convenience and strengthen our connections withthem by promoting the use of the AI-based quotation system to improve theoperational efficiency of our customers, Face Phone to enable face-to-faceonline conversations with our customers anytime, anywhere, and T-Rate toenable easier and more casual communication than conventional communication methods (e-mail, telephone, or fax).

171

Providing high quality services required for e-business

Kazuo Nakai

Increasing convenience through the merging
of human resources and digital technology
Strengthening connections with customers

Online shops, etc.

Promoting “MRO Stocker,” which is like “Okigusuri,”a business model that has been around for many
years in Japan, but for tools.

Human Resources/
Governance andFinancialSocial Contributions

e-Business Route

Digital Service

Optimal response to thediversified needs of customers

Sales

Our route is to do business with customers in a wide range of industries, suchas with machine tool dealers who mainly handle equipment and factory auxiliarymaterials, and welding material dealers who mainly handle high-pressure gas.
By having sales offices throughout Japan, we are able to respond quickly to any
problems and strengthen the cooperative system of each region. In recent years,
we have introduced “MRO Stocker” (see p.41), which is a system of “Use First,
Pay Later” that has been around for many years in Japan for medicine, but fortools. It allows us to provide high-quality product, logistics, and digital services.

As of December 31, 2020

Integrated Report 2021

Home center route$158 million(As of December 31, 2020)

Overseas Route38

Net sales by business route (consolidated) (distribution ratio)

Products$359 million

One-stop purchasing that integrates products, logistics,
and digital services

Corporate
Mission

Sales

Members of PT. TRUSCO
NAKAYAMA INDONESIA

Integrated Report 2021

39

A service that combines the reuse of PRO TOOLs and efficiency for our clients

MRO Stocker

driver or sales representative collects the repaired items at
any time, basically eliminating the need for the customer topack items and pay for shipping. This is a service that canbe realized only through fixed-cost based distribution (seep.33), which not only allows for the reuse of PRO TOOLs
but also contributes to the improvement of the operational
efficiency of customers.

MRO Stocker realizes zero cost in three areas

RepairRepairCalibration
Calibration

Items
Items
forforrepairrepairarearecollected
collected

Reuse
Reuse

Customers
Customers$0Standard products arealways in stock

Re-grinding
Re-grinding
of of
band
band
saw
saw

Machining
Machining

Delivery time

❷Product orders0

Maintenance
Maintenancemin.

❸Unnecessary orders,
including duplicate orders
between departments

Number of unnecessary orders place

Operational Flow Chart

A purchasing support system for users that streamlines the procurement process

Suppliers

Orange Commerce is a purchasing support system thatlinks with users' purchasing systems to provide webbased catalogs and product data for transactions among
three parties: our company, the customer, and the user. By
introducing this system, we are able to solve the problemsof the work normally involved with large orders, organizing
product information, and building a database all at once,[Manufacturers]

Purchase screen

Corporate

Orange Commerce0

Product purchase completed using a specialized
smartphone app

Human Resources/
Governance andFinancialSocial Contributions

Possible to also check inventory and purchase status

Assembly
Assembly
Construction
Construction
andandInstallation
Installation Torque
Torquewrenchclickcalibrationwrenchclickcalibration

Digital Service

Products
Products
arearedelivereddeliveredManagement cost

Sales

Suppliers
Suppliers

An MRO Stocker installation

Needed products areheld on consignment❶Inventory management
and stocktaking of
regular stock

Re-grinding
Re-grinding

Distribution

The
TheEight
EightServices
ServicesAvailable
AvailableThroughThroughNaojiro
NaojiroOur
Our
product
productdeliverydeliverydrivers
driversalso
also
collect
collect
repaired
repaired
items,
items,
soso
nono
shipping
shipping
fees
fees
arearerequired.
required.

MRO Stocker is a system of “Use First, Pay Later” that has been aroundfor many years in Japan for medicine, but for tools. This services allows for
rapid delivery of needed items to manufacturing sites so that they are instantly available for use. MRO Stocker is stocked with consumables that users utilize on a daily basis in the manufacturing process, and in addition to
responding to requests for the immediate delivery of goods, users are billed
only for what they use. Users can use MRO Stocker without any inventoryrisk by simply providing the location, and they can purchase the products
through the dedicated application, which allows for stress-free use.

Products

Naojiro are a unique TRUSCO service that conducts repairs
and maintenance that includes the repair and regrinding of
PRO TOOL as well as calibration of measurement instruments. In general, each category of products to be repaired
has a different contact person. However, by using the Naojiro, customers can make a batch repair request. A “repair
box” is set up at the customer's location, and the delivery

Corporate
MissionMRO Stocker

Value Creation

Repair Workshops “Naojiro”

Remotely check of inventory status

Logistic Centers
Inventory Locations:

2,652 companies

26

Delivery

Total Inventory Value:$387 million

DesignatedCustomer

Delivery(restocking
of inventory)

Users[User][Manager]Can obtain products A computer is used to checkusing a smartphone
the account statement.

Corporate
GovernanceJapan2,440 companies

Core System

Payment

Overseas

Payment for
products used

Environmental
Efforts

thereby visualizing the procurement process and reducing
costs. We support users in optimizing their professional
tool procurement by enhancing reciprocal digital and analog functions and combining the strengths of systems,
logistics, and products. This service has a proven trackrecord of being integrated with many purchasing systems
and can meet the demands of a wide range of users.

Infrequentdeliveries are OK

212 companies
Order is automatically placed to replace items taken from inventory. Linked with order information.

Change in Companies Connected to Orange Commerce

1,235 1,414(Procurement efficiency, visualization, and purchase analysis)

992

Number of Factories Connected (Factories)

Customers

Order Support

Delivery

Users

Order Support(Site deliveries, repair support, and special order support)

40

Integrated Report 2021

605 656430
390
302 312 351
285 332272
230
180 196 215
No. of Companies Connected
92 123(Companies)

2011

2012

2013 2014/3 2014/12 2015
9-monthfinancial results

2016

2017

2018

2019
Consolidated

2020 (year)

Number of items in inventory: 137
Number of shelves: 7 lightweight shelves
Location: Inside equipment
warehouse at plant“Enriching people's lives”
Mr. H, Head Manager of the plant

The system eliminates the need for people
to worry about overstocking or running out
of supplies, reduces overtime hours, andgives users the peace of mind that they will
always have an item ready in stock. MRO
Main inventory items
Consumable supplies (gloves, Stocker is truly a system that enriches peowork shoes, water sampling ple's lives. We hope to add more items toinventory in the future as space permits.
bottles for testing purposes)

Nihon Keizai Shimbun(October 29, 2020)

Nikkei Sangyo Shimbun(September 17, 2020)

NHK NEWS Ohayo Nippon
BS TV Tokyo
Atsushi Tamura no BUSINESSBASIC
Nihon wa ko naru?!
etc.

Integrated Report 2021

Corporate Data

Human Services

540

Food product manufacturer

1,057

MRO Stocker receives attention from several media
organizations and programs

The Nakayama
visually impaired
welfare foundation

Delivery

776

TOPICS Example of MRO Stocker Adoption

Relationships with
Stakeholders

Digital Services

41

Value Creation

Overseas Business

Our Overseas Sales Section delivers PRO TOOLs
around the world leveraging the strength of ourimmediate delivery system

Responding to MRO demand in countries around the world

USA

Overseas Subsidiary

FranceGermany
Switzerland

Japan

Overseas

Vietnam

Malaysia

MexicoPhilippines

Next-day Arrival

Indonesia

Destinations: 19 countries (96 companies, two of which are
TRUSCO local subsidiaries)
Note: Time difference not accounted for.

Distribution

In overseas sales, we are mainly exporting our Private Brand (PB) products to countries around the world. In general, importingand exporting takes time and effort, but thanks to our inventory strategy and strong logistics capabilities, we have been able tobuild an immediate delivery system for exports, enabling us to meet the demands of each country.

Japan

South Korea
Hong
Kong Taiwan
MyanmarThailandSingapore

Order is received andpackageis sent on flighton the same day

Unique business created by combining management resources

China

Products

Immediate Delivery System Usage Example

Overseas Sales Dept.

Corporate
MissionUK Denmark

In order to contribute to manufacturing around the world, we are accelerating our exports to various countries as well as business with local subsidiaries. In
terms of domestic exports, we are currently doing business with 96 companies in 19 countries around the world (two of which are TRUSCO local subsidiaries),
and we are developing unique businesses that can be realized by combining our management resources. Our local subsidiaries are located in Thailand andIndonesia, where we are contributing to local manufacturing by utilizing our strengths, such as providing local catalogs, our abundant inventory, and immediatedelivery system. We will continue to expand our trading area and aim to become a company that can meet the demand for MRO from all over the world.

New ZealandOverseas Subsidiary

TRUSCO NAKAYAMA CORPORATION (THAILAND) LIMITED

PT. TRUSCO NAKAYAMA INDONESIA

This subsidiary has continued to expand its sales to Japanese dealers
and to major local dealers. By holding inventory and strengthening our immediate delivery system, we are contributing to the efficiency of the PRO
TOOLs supply chain in Thailand by collaborating with local customers. In
recent years, we have also been promoting our own initiatives, such as
direct trade with Japanese manufacturers, to reduce purchasing costs andincrease our share of local sales.

There were many factors that hindered PRO TOOLs distribution in Indonesia, such as heavy traffic congestion and strict import regulations. For thisreason, we have set up a distribution center in an area where many factories belonging to Japanese companies are accumulated. With the largest
inventory in the region, we are taking on the challenge of optimizing PRO
TOOLs distribution. Against the backdrop of domestic demand in a company with a population of 270 million people, we will continue to contributeto Indonesia's advancing manufacturing industry.

Sales

Overseas Subsidiary

Team Members

Company Overview● Trade name: TRUSCO NAKAYAMA

Integrated Report 2021

Promoting customers’ use of the Web

Net sales (million rupiah, thousand USD) 33,199
32,808 65,910 65,000● Capital: About 378.8 billion rupiah (about $29.9 million)($2,355)● Employees: 20 (3 employees on loan and 17 local staff)● Established: December 2014

● Equity: 99.9%● Area of grounds: approx. 16,178 ㎡● Floor area: approx. 10,429 ㎡($2,046)

20,476($1,663)

Number of items
in inventory
19,115● Number of items in inventory: 65,000● Inventory value: $4.2 million● Total number of items in inventory: 290,000

Bangkok0

Buildings, $5.9 million
Suvarnabhumi●
A ddress: Lippo Cikarang District,
International Airport
Bekasi, Jawa Barat (about 40km eastof the capital city, Jakarta)

2014

Jl. Kenari Raya No. 36 Delta Silicon VI,
Jayamukti, Cikarang Pusat, Kab. Bekasi 17815.

55,41859,653 28,255($1,925)

49,52028,2402,365● Value of investment: Land, $10.5 million;

Amata Nakorn
Industrial Estate($2,420)

26,470(1st term)($186)

2015(2nd Term)2016(3rd Term)2017(4th Term)2018(5th Term)2019(6th Term)

2020(7th Term)

2021(8th Term)(year)(planned)

Note: Sales in USD for each term are calculated using the exchange rate at theend of the period.

Soekarno–Hatta
International Airport

Jakarta
Delta Silicon 6
industrial zone

History
2014. 12 Established under name PT. TRUSCO NAKAYAMA INDONESIA
Capital: About 54.2 billion rupiah
2016. 1 Start of sales
2017. 2 Capital increase of 261.3 billion rupiah, raising capital to315.6 billion rupiah
2018. 11 Capital increase of 63.1 billion rupiah, raising capital to378.8 billion rupiah
2019. 3 Relocation of office building (company-owned building)

Convenience of company-based lock boxes
To address the problem of
package pickups due tochronic traffic congestion inIndonesia, we have installed
lock boxes at our company
that can be accessed at any
time regardless of businesshours. In addition to customers, end users can also
pick up packages using
these lock boxes.

Corporate Data

42

Professional Tools For Factory And Workshop● Business areas: Wholesale of PRO TOOLs (secondary materials used in factories)

The Nakayama
visually impaired
welfare foundation

Established under name PRO TOOL NAKAYAMA CORPORATION(THAILAND) LIMITED
Capital: 50 million baht
2011. 2 Start of sales
2011. 12 Capital increase of 30 million baht, raising capital to 80 million baht
2014. 11 Change of name to TRUSCO NAKAYAMA CORPORATION (THAILAND) LIMITED2015. 4 Capital increase of 30 million baht, Capital increase to 110 million baht
2015. 6 Capital increase of 180 million baht, Capital increase to 290 million baht
2015. 12 Relocation of office building (company-owned building)
2016. 9 Capital increase of 100 million baht, raising capital to 390 million baht($3,626)

Relationships with
Stakeholders

2010. 9In Thailand, we adopted an order system for local customers. The systemfacilitates order placement, inventory checks, price checks, delivery date
responses, and more. It reduces labor and boosts speed in customers’
ordering work, supporting smooth commercial transactions.

● Auditor: Naotsugu Kamijyou● Officer in charge at TRUSCO NAKAYAMA Corporation: Kazuo Nakai

Environmental
Efforts

History

through system adoption● President: Yohei Takuno

Changes in sales and number of items in inventory at
PT. TRUSCO NAKAYAMA INDONESIA
54,660

Corporate
Governancekarn 10540 THAILAND● Trade name: PT. TRUSCO NAKAYAMA INDONESIATeam Members

Corporate

Changes in sales and number of items in inventory at TRUSCOCORPORATION (THAILAND) LIMITED(million baht, million USD)
NAKAYAMA CORPORATION (THAILAND) LIMITED● President: Kazuaki Harada● Director: Naotsugu Kamijyou
218($6,803)● Officer in charge at TRUSCO NAKAYAMA Corporation: Kazuo Nakai
207
194 ($7,028)
70,000($6,196)● Business areas: Wholesale of PRO TOOLs (secondary materials used in factories)
Net sales (million baht, thousand USD)
69,29767,004● Capital: 390 million baht (about $12.1 million)
Number of items in inventory
166
60,785($5,355)● Employees: 24 (3 employees on loan and 21 local staff)
128 51,523($3,887)● Established: September 2010
● Equity: 99.9%
134
106($4,327)
96 ($3,663)
28,489($2,850)84● Area of grounds: approx. 10,942 ㎡ ● Floor area: approx. 4,730 ㎡($2,654)74($2,224)● Number of items in inventory: 69,000
16,177
0.9
37
($18)
9,768
($943)● Inventory value: $6.4 million
3,195 3,472 4,736 4,968● Total number of items in inventory: 491,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 (year)(1st term) (2nd Term) (3rd Term) (4th Term) (5th Term) (6th Term) (7th Term) (8th Term) (9th Term) (10th Term) (11th Term) (12th Term)● Value of investment - Land: $2.3 million,(planned)
2-month
9-monthfinancialresults
financial results
Buildings: $1.9 million
Bangkok
Suvarnabhumi
Note: Sales in USD for each term are calculated using the exchange rate at the● L ocation: Bangplee, Samutprakarn
International Airport
Soekarno–Hatta
end of the period.
International Airport(13km south of Suvarnabhumi InternaJakarta
tional Airport)
Amata
NakornTIP7 789/8 Moo9, Bangpla Bangplee SamutpraSilicon 6
Achieving smooth commercialDeltatransactions
Industrial Estateindustrial zone

As of December 31, 2020

PT. TRUSCO NAKAYAMA INDONESIA

Human Resources/
Governance andFinancialSocial Contributions

As of December 31, 2020

Digital Service

Company Overview

TRUSCO NAKAYAMA CORPORATION(THAILAND) LIMITED

Lock boxes allow customers, etc. topick up packages at any time
(Adi Nurul Hikmah, PT. TRUSCO
NAKAYAMA INDONESIA)
Integrated Report 2021

43

Digital Service Strategy
Value Creation

TRUSCO's Digital Transformation (DX)
Digital Expenditures (most recent
three periods)

Number of Orders and Estimates

AutoStore(high-precision storage system)

Number of Product Data

2.5 million items

and for our suppliers, we provide smooth business collaboration
tools such as product databases. We also provide our users
with services that help improve productivity, such as electronicpurchasing and MRO Stocker, and we are creating an environment where our functions (inventory, logistics, systems, anddata) can be used as a platform throughout the supply chain.

In addition to internal business reforms, our company, which isin the middle of the distribution chain as a wholesaler, is promoting the reform of business practices throughout the supply chain
by utilizing digital technology aiming at digital transformation. For
our customers, we use a variety of digital tools to help streamline operations from search to quotation and order placement,

Products

150,000 /dayFace Phone in use(Mika Moribe, Internet Sales Tokyo Branch)

Corporate
Mission$73 million

Digital solutions improve convenience throughout the entire supply chain

TRUSCO DX Measures

83.9%

Customers
Communication Tool

Representative
Product Div. Logistic Centers(As of December 31, 2020)

TRUSCO Data Center

SolemareP.46

BranchDistribution System

Voice Call App.

P.48

P.46

Product Database

Inventory Management System

Sales Support System

P.49

P.48

P.47

AI-based Search Tool

P. 31, 47
AI-based estimation system“Swift Estimator”
P.46

Data

Product Searches,
Estimates, Ordering, etc.

Atsushi Kazumi

Search and information website for PRO TOOLs.

P.31

P.49

Electronic Purchasing System

Electronic Purchasing
System for Users

P.40

Core System

Digital Service(Information Technology)

Mechanical Resources(Distribution Equipment)

Efforts toward the digital transformation of the entire supply chain

Real Time Information Platform

P.45

Data
Products/Prices/
Inventory/Delivery Date

Environmental
Efforts

Automation and manpower saving through the integration of digital andmechanical technologies that will enable continued operations 24 hours aday, 365 days a year. Employees will focus on high level automation andsophistication of customer contact that only humans can provide.

P. 41, 47

Corporate
GovernanceImproving the convenience of manufacturing sites
by fully utilizing digital and mechanical resources

Products
PricesInventory
Delivery Dateetc.

Corporate

Website for Business Coordination

By successfully combining our management resources with digital technology, we hope to provide the industry's highest level ofconvenience and become a company that is useful to Japan's manufacturing sites in any era.

Representative

Human Resources/
Governance andFinancialSocial Contributions

Director, General Manager of the Business Management Department andGeneral Manager of the Digital Service Strategy Department

Representative

Digital Service

Moving faster toward the company that
we want to be through the utilization of
cutting-edge digital technology

Users

Sales

*Percentage of order receipts processed through our
digital system among total order receipts

Distribution

Suppliers

System order intake ratio*

Strategic partners supporting our digital transformation (in alphabetical order)
Frameworx, Inc., IBM Japan Co., Ltd., Nomura Research Institute, Ltd., SAP Japan Co., Ltd., SCSK Corporation

Relationships with
Stakeholders

We will continue to use digital technology to create a system that will help our business partners solve their problems.
Suppliers(2,652 companies)

44

Analogue-based operations
such as quotation requests
from customers need to be
streamlined.

Increased workload havegenerated a lot of trouble.
Quality of service for customers
needs to be improved.

Convenience for users needs tobe added by accelerating stock
inquiries, quotation, etc.

The amount of trouble involved withproduct searches and time from orderto delivery need to be reduced without
stopping manufacturing process.

The Website for Business
Coordination “Polario” and the
TRUSCO product database “Sterra”
user interface support the
improvement of business efficiency.

The AI-based estimation system “Swift
Estimator” automates quotation, responses
to provide delivery date information, andother tasks, transforming how work is done.
Providing KPIs in real time supports faster
decision making in business.

T-Rate, a communication tool,
supports customer business byproviding information in realtime (price analysis for eachproduct, etc.).)

TRUSCO AI Orange Rescue
makes it easy to select the rightproducts.
The efficiency of MRO Stocker
results with no lead time.

Integrated Report 2021

TOPICS ‌January 2020

Launched core system“Paradise 3”

Paradise is our core system that stores data associated with processes
from receipt of orders to accounting management. Our total investment
related to automation, mainly in core systems, amounts to approximately$40 million, and we will implement smooth business transactions bystrengthening digital collaboration with our customers and suppliers andpursuing usability for both parties. We will continue to enhance our superiority by promoting management focusing on digital solutions.

Automating everything that can be automated!

Sales
Operations

Automated estimates, special priceoptimization, POLARIO, etc.

Communication

MRO Stocker, T-Rate, etc.

Distribution
Capabilities

Optimal provisioning for direct deliveries,
automatic stocking of hot-selling products,
automated inventory management, etc.

Management
Tasks

Forecast management of selling, general,and administrative expenses, improvement of analysis report function, etc.

Integrated Report 2021

Corporate Data

ReformthroughIT

Manufacturing sites in Japan(Infinite)

The Nakayama
visually impaired
welfare foundation

Issue

Customers(5,515 companies)

45

Sales Support System“Self.I 2”

The most time-consuming (costly) part of our sales activities is visiting our clients, so we are determined to break away from this style. To solve thisproblem, we are changing our sales style to one that utilizes various digital tools. We will contribute to the improvement of our customers' businessperformance while promoting productivity improvement for both our company and our customers.

AI-based quotation system

One of the challenges we face is how to respond quickly to an averageof 30,000 quotation requests received from our customers each day. To
address this issue, we have introduced the AI-based quotation system andhave been promoting the automation of estimates through special priceoptimization where appropriate prices are automatically calculated for
products on a regular basis based on actual orders and estimates. This
has led to an improvement in the time it takes to reply to customers (minimum reply time: 5 seconds).
(17.5% of quotation are provided automatically (information current as ofthe end of January 2021))

Use of digital tools and expansion of inventory contributes to a higher online order intake ratio
Changes in online order receipt ratio and number of inventory items

67.4 71.9

72.7

77.9 79.9 82.0 82.0 81.7
37.4

System order intake ratio (%)

16.5

23.1

Estimate request from customer

2016

Customer sales performance screen

33.7

Receiving feedback from customers (using the “Good” and “Bad” buttons provided) regarding search results will allow us to continuously make improvements

Data analysis
Estimate provided
to customer

2013 2014/3 2014/12 2015

Main screen showing Self.I 2 functions

2017

9-monthfinancial results

2018

2019

Estimate provided tocustomer within seconds

2020 (year)

Consolidated
Accounting Started

R

Videotelephone app
Face Phone
Allowing for communication with TRUSCO at any time, Face Phone is an
online-based video telephone app using in conjunction with T-Rate usinga PC or smartphone which allows face-to-face communications between
customers and TRUSCO representatives, as if they were meeting in person. Most of the time used during sales activities is spent traveling to customer locations. However, we are now promoting a new sales style which
utilizes that time to solve problems for our clients instead.

MRO Stocker®

Delivery based on
Delivery based on
predicted demandpredicted demand
Customers

Users

No Lead Time
Digital technology is used to anticipate demand and deliver products
before they are needed by users

Relationships with
Stakeholders

Promoting a new sales style

T-Rate is a new tool for communicating with customers. This tool provides
real-time communications through the following functions: ❶ Chat function which allows the customer to chat with a TRUSCO representative, ❷A delivery status confirmation function that shows the scheduled arrival
time of the delivery service, products being delivered, etc., and ❸ A timeline function that delivers messages about our activities and PR products.

“MRO Stocker” (see p.41), which we are currently promoting
a business model that has been around for many years inJapan, but for tools, uses the latest digital technology andadvanced data analysis. By analyzing data such as the user's
purchase history to stocking PRO TOOLs that will be needed by users before they need them, it is possible for users
to use products only when needed and in the amounts required. The app-based payment system also streamlines thepayment process. This provides users a digital experience
with no lead time.

Environmental
Efforts

Realizing real-time communication with customers

Provides a digital experience with no lead time

Corporate
GovernanceCommunication Tool
T-Rate“MRO Stocker,” is abusiness model that has
been around for many years
in Japan, but for tools

Corporate

2012

19.2 21.3

26.5

29.9

AI-based comment analysis
Results data analysis

1) Planning Function: Used before visiting customers
2) Performance Function: Used to check sales performancein real time.
3) Business Efficiency Function: Used to respond quickly to inquiries from customers.
4) Analysis Function: Used to analyze transaction status fromvarious perspectives.

Human Resources/
Governance andFinancialSocial Contributions

Number of items in inventory(Unit: ten thousand)83.1 83.9
44.2
39.2

Main functions

Digital Service

We have been developing highly convenient digital tools and expanding
our inventory. As a result, our online order receipt rate (percentage oforder receipts processed through our digital system among total order
receipts) has improved. This has improved our work efficiency, allowing us
to achieve greater sales per person without increasing overtime work.

“TRUSCO AI Orange Rescue” (see p.31) uses artificial intelligence (AI) to search for products using fuzzy searches toinstantly suggest the most suitable products for customers.
Continuing to actively promote AI utilization will improve customer convenience.

Sales

Estimations are submitted automatically by utilizing AI.

“Self.I 2” is a tool for visualizing sales data, such as customer
estimate history, sales history, etc. This tool helps us to identify latent demand and make appropriate proposals, thereby
contributing to the improvement of customers' sales.

Distribution

Improvement of work efficiency through improvement of system order receipt ratio

Using AI for product searches to instantly suggest the optimal products to customers

Products

Online Order Intake Ratio (83.9%)

Visualization of sales data to support accurate
proposals

Corporate
MissionPromoting a changeover to a sales style that utilizes digital technology

TRUSCOAI Orange Rescue

Value Creation

Digital × Sales

TOPICS First generation Fax machine-assisted automatic ordersystem “DOTKUL”

Using Face Phone...
❶ Chat function

46❷Delivery status confirmation function

Integrated Report 2021

❸ Timeline function

allows for communications between
customers and TRUSCO representatives at any time, anywhere.

(We plan to completely shift to the TRUSCO Orange Book.Com by the end of May 2021)

Corporate Data

Driving to meet with customers takes time

The Nakayama
visually impaired
welfare foundation

In 2000, we launched DOTKUL, Fax machine-assisted automatic order entry systemusing FAX-OCR (Optical Character Recognition). The system automatically receives
fax orders from customers from 6:00 a.m. to 10:00 p.m. and automatically respondswith shipping information within 30 minutes. This has led to improved customer
service and operational efficiency. In this way, we have been working to improve ourbusiness operations through digitalization for about 20 years and have evolved as acompany through such digitalization to the present.
Orders by telephone and arbitrary FAX
forms are unified

Integrated Report 2021

47

Accelerating automation through the use ofdigital resources as logistics equipment

Quick and Accurate Provision of Product Data

Suppliers

Automatic Product Stocking System

Suppliers

This distribution system manages theinventory work performed at distribution
centers and at branches with inventory.
It is responsible for improving the overall efficiency of warehouse operations,
including automation of warehouse
operations with labor saving equipment
and free-location inventory systems.

1) Increased opportunities to obtain orders through rapid
data linkage2) Improve operational efficiency through paperless businessprocessing3) Centralized management reduces the need for telephone
and fax inquiry related work

Product database:“Sterra”

PaperlessCommunication
Website for
Business Coordination

Suppliers

Customers

Rapid Coordination

Uniform Management

Customer Website

Search and information website for PRO TOOLs.

Product data linkage in real time

Product Image

Product Specifications

Fast Coordination(next day)
Schematics and other detailed information

Environmental
Efforts

Information changes are
immediately reflected
Using Sterra, suppliers register/
update product information.

Accurate and new information canbe delivered to customers and users
in the shortest possible time.

Relationships with
Stakeholders

New product database “Sterra” is a product information
management system that serves as the “base” for productdata. The introduction of this system has facilitated the input of information that was previously restricted in various
ways and allows suppliers to easily register and edit productdata. The system enables accurate and timely data linkage
linking suppliers to customers and users. We are strengthening business penetration of as use of data becomes moresophisticated, such as linking product information to the
e-commerce sites of online shopping businesses.

Robot lifting a bin(plastic container)

Current
SystemCustomers

Corporate
GovernanceSAS (Systema Streamer)/
Shuttle Rack (high-speed picking and sorting equipment)

What Polario can achieve

Suppliers

Corporate

Main Distribution Systems Utilized at TRUSCO Driven by Digital Technology

Polario centralizes data such as existing supplier estimate
correspondence data, order processing data, and Available-To-Promise (ATP) data. In addition to improving thechances of receiving orders, the amount of supplier-directedinquiries are reduced, lessening the burden on them.

FAX, Telephone, Etc.

Human Resources/
Governance andFinancialSocial Contributions

ZAICON 3 is a inventory management system that provides forecast calculations ofrequired stock quantities based on sales
performance records. The system reduces
the time and effort required for registering
products by automatically calculating the
optimal and maximum ordering points for
products, leading to increased efficiency.

Polario centralizes business coordination with suppliers

Traditional
SystemDigital Service

Products to be stocked based onsales results are automatically orderedto suppliers and stocked. By automatically stocking popular products, we
improve the efficiency of our operations in addition to improving the levelof service for our customers.

Website for Business
Coordination: “Polario”

Sales

Distribution system
TRULOGIS 3
Improving the efficiency of all
warehouse operations

Robot reads 2D codeon the floor to travel.

Distribution

Driven by Digital Technology

Drastically decreasing timespent on inventory management

AutoStore(high-precision storage system)

Product Database

Distribution Equipment

Automatic stocking of popular
products

Butler®
(Automated conveyancerobots)Search and information website for PRO TOOLs.

Products

Inventory Management System
ZAICON 3

Distribution System

Website for Business Coordination

Customers

Automatic Product
Stocking System

Inventory Management System

Customers

We aim to significantly reduce the amount of labor andmanpower required for human work at distribution centers
by using robots and systems. By using digital technology,
we are working to improve the efficiency of all processes,
from automatic product stocking to warehouse management and receiving/shipping goods using logistics equipment. We will continue to further automate and optimize
our distribution centers to strengthen our ability to deliverproducts immediately to our customers.

By utilizing digital technology, we are able to quickly andaccurately provide product data for suppliers. By centrally managing and utilizing data from product adoption to
product registration, we are able to improve operational
efficiency not only for our company but also for our suppliers. We will continue to enhance the sophistication of
our data and make it available in real time.

Corporate
Mission

Digital Technologies and Products

Value Creation

Combination of Digital Technologies and Distribution Capabilities

Analysis by Individual Product
Dollies allow for
high-speed sorting

The latest Butler model introduced at Planet
Saitama utilizes n-deep, a system that arranges multiple dedicated storage shelves.
This system has realized the world's firstutilization of triple storage arrays to greatly
improve storage efficiency (see p.34).

The system is automatically linked to orderdata and the robots constantly move thecontainers so that high frequency products
are concentrated in the upper layers. Multiple
robots work together performing bin work toachieve the most efficient picking (see p.34).

Containers picked on each floor are automatically and rapidly sorted by delivery
destination by a dolly and stored closely
together before shipment (see p.35).

Integrated Report 2021

Utilizing big data to display product information so thatit has a fresh appearance and is easy to understandWe have built a system that allows customers to utilize thesales results of each product in real time. Using this system,
for example, the sales results are disclosed on TRUSCO Orange Book.Com, and the products whose sales results haveincreased in the last month compared to the past are marked.
We will continue to build a system to provide product analysis
data that has a fresh appearance and is easy to understand.

Product that has seen strong sales at TRUSCO in the past month.

Corporate Data

Robots can be controlled
via computer

The Nakayama
visually impaired
welfare foundation

48

Picking station(Kohei Ishikawa, Planet Saitama)

Product sales performance screen shown on TRUSCO Orange Book.Com

Integrated Report 2021

49

Human Resources/Financial Strategy
2,786

Yong Bo Xu, Overseas Sales Dept.

Maika Shiraishi, Planet Saitama

35.2%

Retirement Age

Kumiko Fujiwara,
Internet Sales Osaka Branch(As of December 31, 2020)

Osaka NB Product Section
Toyohiro Nokiba, CoachMisa Muraoka

Aiming to create a workplace free of ill feelings

Work Analysis
Process
Reviewnoita
zilatigiD

Digitalization

・Collection
・Visualization
・Analysis
・Action・Creativity
・Quick execution
・Technologies
・Cultivation of employees who take on challenges

J3

Users

ResultAll staffs

Part-time Staff
OJS

2015

Part-time
Staff

2001

Candidates
for manager
or higher

This policy reflects assessments ofDetermine if the candidate should/ Candidates who have an 80% or
staffs related to the work of an individual
should not be promoted (Comments higher approval rating and satisfy
in the evaluation of employees who arewith the reason for the decision are the minimum number of votes are
candidates for a promotion of manager
included)promotedor higher.

2012

Director,
Auditor,Executive
Committee,
and Division
GeneralManager

The evaluation is conducted once a
Evaluators (voters), who are the bosses(*1) year by about 150 people, including
or higher in charge of the company, eval- the boss and members (* 2) of the Management who add/drop below auate the executive’s performance at work Management Conference. Each of certain standard of points two years
and what they say at management meet- 6 evaluation items is rated on a consecutively become a candidate
for promotion/demotion.
ings, commenting on the good and bad 24-point scale.
points.
(Comments with the reason for thedecision are included)

President

An OJS system implemented directly by President is evaluated via voting
shareholders during the General Meeting by shareholders who have directly After the General Meeting of Shareof Shareholders. We consider this as one heard our business reports and Q&A holders, the results are posted onof the important evaluation indicators for at the General Meeting of Share- the company website.
the president as a manager.
holders.

Director, Auditor,
Executive
Committee,
Division General
Manager OJS

President OJS

2014

Corporate Data

· Aim to achieve a 100% health check secondary checkup
rate and 100% smoking cessation rate.
· Online seminars and other methods are used to provide line
care for women's diseases, mental disorders, nutritional
education through nutritionists, etc.
· Collaborative Healthcare with Trusco Nakayama Health Insurance Association

Procedure

The Nakayama
visually impaired
welfare foundation(2) Promotion of Health Management·‌Expanding our support system which allows various humanresources to flourish, including female employees·‌Expanded options such as working at the nearest office,telecommuting, and staggered work hours to achieve flexible work styles and improve productivity

Overview

30% of this assessment is reflected
This program reflects the evaluationsin the personnel records related to
between staffs who work in the sameachievement allowances, bonuses,
office in personnel ratings. Comments
are included to provide feedback to the Procedure: Determine the perfor- financial bonds, and promotions/mance, approach, and skill of the demotions.
individual.
staff in five levels(Comments with the reason for the 30% of this assessment is reflectedin the personnel ratings related to
The OJS program also applies to part- decision are included)
hourly wage as well as bonuses
time staff.
and promotions. (also utilized in
employee promotion criteria)

2003

Promotion OJS(1) Promotion of various work styles

Integrated Report 2021

He increased his in-store market share among our major customers and made a significant contribution to branch sales.
3 We look forward to his continued efforts for growth in
the future.

Personnel
Evaluation OJSWork Style and・Changes in mindset and awareness・Workplace
・Time utilization
・System, rules, and organization

Staff Level

Customers

Suppliers

Support of the Promotion of Various Work Styles and Health Care

50

3

5

Relationships with
Stakeholders

Data for utilization

Visualization

The new management approach that he has adopted haschanged his staff's awareness of the need to improve sales.
3 By focusing on employee development, he has beenable to improve the branch's performance.

Environmental
Efforts

Business Facets

4

Corporate
GovernanceSorting
Analysis

Continuous Value Creation

Start

Self-fulfillment

Business
Style
ReformDomestic
career

General staff
member

He was able to popularize the new system among
members of his department in a short period of time,
3 contributing to improving the productivity of the entire
department.

Corporate“Kokorozashi” means an unchanging mindset with the means thatcan be changed to repeatedly take on challenges.

・Unique services
・Unique line-up

Employee C

3Evaluation Comment(More than 20 Japanese characters but no morethan 100 characters)

Human Resources/
Governance andFinancialSocial ContributionsOJS Category

We aim to create a company where each and every one of our employees can create social value by fostering a cheerful and energetic
corporate culture and who are always fully represent the essence of TRUSCO Nakayama.

MarketPosition
Qualification
Division General
Employee A
Manager3
Domestic
M4
careerBranch Office
Employee B
Manager3
Overseas
S2
careerExamples of OJS Personnel Evaluations (5-point system)
Note: Standards are set according to position and qualifications.

Atsushi Kazumi

In an uncertain and unclear environment, we are required to be more flexible andspeedy in our ability to change. We will build a system that will continue to create
new value without fear of challenges.

Name
CourseDigital Service

The Open Judging System (OJS), an electronic-based voting
system, is a personnel evaluation system for all employees
where employees are evaluated by each other that was introduced for the purpose of conducting fair and highly objective
evaluations. Evaluating one another helps build an environment of fair assessment with good energy in the air.

Creating an improvement in business value
continuously by taking on challenges andimplementing reforms in a flexible, speedy manner
Director, General Manager of the Business Management Department andGeneral Manager of the Digital Service Strategy Department

Started in 2001

Sales

63.7%

Open Judging System (OJS)

Ability75

Digital Promotion Section members (Tokyo members with Osaka members
shown on the monitor)
ApproachPart-time Worker Retirement Age

70

Performance

Retirement Age for Employees with Extended Employment

Distribution

62
Full-time Staff Retirement Age 65

Managerial Retirement Age

We have established unique systems to promote employee growth, such as the Open Judging System (OJS), job
selection system, and job rotation system. We will be able
to grow as a company by creating an environment where
employees are always motivated where each can sufficiently demonstrate their abilities.

Products

Percentage of female employees among
full-time employees

Corporate
Mission

System to encourage employees to demonstrate their abilities as grow

Number of officers 12
Number of full-time staff 1,674
Part-time workers 1,100

Capital ratio

Value Creation

Human Resources Strategy

Employees*1 Bosses: Included branch office managers, section managers, and distribution center managers*2 Members of the Management Conference: Directors, Auditors, Executive Officers, and Division General Managers
Integrated Report 2021

51

Various Personnel Programs
The time when the policies of a company begin is important and the “will” varies
according to when a policy is put in place. We have a number of unique humanresource programs that were inspired not by the trends of the world but by ourconcern for our employees. By respecting the opinions of our employees andsupporting their work styles through various approaches, we improve their motivation to work which leads to the growth of the company.

List of Occupations

This program lets our staffs choose an occupation(Young employees at the Tokyo Head Office)Content

Number of Persons

Experience a variety of job types and relocate with a change of residence to quickly develop skills and assume
responsibility for a future role in management.

612

Domestic career

573

Serves as the core of a specific department by utilizing one’s high level of job performance and expertise.

29

SupportEngaged in an occupation other than SSL* within a certain region only.

28

Logistics

Engaged in logistics operations such as delivery and product management.

347
As of December 31, 2020

Overseas career

This is a system that allows single employees to delay coming to work on Mondays so that they can spend time with their families at dinner on Sundays when they return home on weekends (travel expenses for returning home twice a month and company
housing rent are paid separately).

Transfer Request Policy

2005

This program allows staffs to request a transfer to a desired place of business due to life events such as marriage or taking careof a sick family member. (program participants: 57 *previous three years)

Lovebird Transfer Policy

2005

This policy allows staffs transfer to a certain area following their spouse’ transfer regardless of whether their spouse is a company staff or not. (program participants: 22 *previous three years)

Welcome Back Policy

2014This program is for the re-employment of staff who had to resign to raise a child, take care of a sick family member, undergo
infertility treatments, or to accompany their spouse overseas due to a work appointment within ten years of their resignation.
(program participants: 26, re-employed: 3)

2016This program provides the money necessary for new employees to smoothly start a career as a professional in society. TRUSCO
provides this entrance allowance to new employees ($1,869 for persons who live alone and $934 to persons who still live athome after joining the company) (program participants: 43 *employees who entered the company in 2021)

2005

This program pays a bonus for maternity leave (14 weeks) during the bonus calculation period.

2007

We provide $93 per month allowance for each child to staffs who have children under ten years old. TRUSCO started paymentseven to staffs who are on leave to raise children from 2014.

1992

TRUSCO employees can take childcare leave until the end of the month during which the child becomes three years old, if desired (Japanese law allows employees of any company to take childcare leave until the day before the child becomes one yearold). (program participants: 37)（昨年:437百万円）
Return-to-Work
Program for
Staffson Childcare Leave
56期在庫アイテム数

2019

This program allows employees that finished their childcare leave to choose the number of working days, working hours, office
work, or work from home until the child is three years old so that they can return to work smoothly.

Return-to-Work Support
for Staffs on Maternity orChildcare Leave2015

One tablet terminal is lent to each employee for information sharing, and information can be exchanged on “Tramama Port,” aspace on the company internet dedicated to employees on maternity or childcare leave. We also provide support to make it easier for employees to return to work, such as by setting up Office Visit Days every four months.

TRUSCO Part-time System
for Retirement-aged Employees

2015

This system allows employees who have reached the age of 70 to continue employment at the company as part-time workers
until the age of 75 if they wish to do so, and meet certain criteria. (Alternate name: Senior System) (Program participants: 11)

My Home Concierge (housing consultation service)2016

Two first-class licensed architects, who are employees of the company, are available for consultations with employees who haveconcerns regarding housing. (Consultations held in 2020: 10)

1) 20172) 2020

1. Open: Employees can telecommute at any time when it becomes difficult to come to the office due to relocation or integrationof offices, transfer of a spouse, injury, illness, taking care of a family member, etc.
2. Discretionary: With the permission of the head of the office, employees can telecommute up to twice a week.

2019

This program allows employees to work in a different department on their days off and earn income on the side. Since the program focuses on work that any employee can do, it is a great way for them to gain new insights. (program participants: 79)

2020

This is a system that allows employees to go home early even during scheduled working hours in order to instill in them theawareness and habit of finishing work early. Under the system, employees can leave up to 30 minutes earlier once a week.
(program participants: 223)

2020

This system allows employees to adjust their start and finish times in exchange for up to one additional hour of rest time (or less than
one hour) for very important reasons, such as visiting government offices, making hospital visits, etc. (Started in September 2020)

I am in charge of system planning, development, and operation, and I work in cooperation
with various people both inside and outside
the company. I would like to understand more
about our business and work to develop systems that make users feel very natural using.

I am a floor leader and in charge of delivery
operations at the distribution center. I find it
1,047 名パート
海外現地スタッフ 30 名
57 期格付
事業所区分
rewarding to be entrusted with floor
manageMaternity Bonus Program
ment and other tasks while utilizing the latest
人数：21人
10人・11人
56期順位 64位
（上期） 55位（下期）
1011 ★★★
札幌支店
B
57位（上期） 70位
（下期）
昨年人数：
人
Child24Support
Allowance
logistics systems. In the future, I would like 55期順位
to〒007-8553 北海道札幌市東区東苗穂5条3丁目4番51号
TEL：011-789-3711
FAX：011-789-3718
内線：011-789-3712
expand my possibilities with an eye on career
平均年齢（パート含む）オレンジ博士平均点（第36回）
Childcare
36.3歳
40.0点Leave Program
advancement.
（昨年:35.8歳）（前回:54.0点）

3
TRUSCOnewsocialwork
12 名
役員
1,633 名2,722 名 正社員grant system
名簿記載数(three years)

事業所写真*2 SSL (Sales & Solutions): Involves visiting customers to solve their problems

Around five years after joining the company, employees are transferred across departments, suchas sales, distribution, Head Office, etc., and job rotations are conducted within departments. This isa measure to avoid personalization of work and to improve work and human skills by experiencing
a variety of jobs, as well as to raise awareness of work reform through organizational “metabolism,”
thereby raising the level of corporate growth.
Started in 1990

Vitalization of Communication via a Staff Registry
We create a staff registry that includes pictures, addresses, and dates of birth every year. This acts as
an important tool for communication among our employees who work throughout Japan. In addition,questions like what makes a particular employee feels amazing or disappointed are also posted inorder to understand that employee's values. This is used as a catalyst for improving the behavior andideas of coworkers who read the answers. We also protect personal information by making thesequestions optional.

Business Management Dept.

事業所地図※最寄り駅、災害時のDigital Service
Strategy避難場所も掲載してDepartment

便利な
行き方
災害時の
避難場所

おります。

Distribution
Dept.

100%

（昨年:100%）

463百万円

56期システム受注率

79.1%

行き方

Helping employees hone their work and personal skills to raise thelevel of our corporate growth

Employees are transferred across departments
to help hone their work and personal skills
最寄駅・
所要時間

57期月平均予算

56期一人あたり売上
10,305千円（55期:9,726千円）

14,291アイテム（昨年:79.8%）（昨年:10,265アイテム）

56期在庫保有金額

118百万円（昨年:74百万円）

第56期

無事故
無違反

事業所メッセージ

Sales Dept.
Product Dept.
担当業務 各部署の担当業務、各支店の担当エリア、各プラネットの管轄エリア等を明記しています。
IZUMINAメールアドレス@trusco.co.jp
ヤマダ（ナカヤマ）

ハナコ

旧姓使用している方のみ（）
内に新姓を掲載しています

キャリア（海外）天然キャラ

山田（中山） 花子 役
hanako.yamada

99999

2008.3着任日

昨年から住所変更がある方のみ★マークがついています

職等
級
会社携帯TEL
会社携帯メールアドレス
入社年月日

職

M3 課長 2009年～

キャッチフレーズ
種 管理全般090-3712-0456
00000000@trusco.biz.ezweb.ne.jp
1999年（H11年）
4月1日（19年3カ月）
1999年（H11年）
4月 京都支店
所 属 歴
2002年（H14年）
4月 大阪支店
コ ー ス 歴 1999年4月キャリア→2009年4月キャリア（海外）
自 宅 住 所 105-0004 東京都港区新橋四丁目28番1号 トラスコ フィオリートビル★
自 宅 T E L 03-1234-5678
携 帯 T E L 090-1111-2222
携帯アドレス private@ezweb.ne.jp
緊急避難場所（自宅） 桜田公園
帰 省 先 住 所 大阪市西区新町一丁目34番15号 トラスコ グレンチェックビル
帰 省 先ＴＥＬ 06-1234-5678
緊急避難場所（帰省先） 新町北公園
生 年 月 日 1976年（S51年）
6月17日
（42歳）
資
格 DTPエキスパート
出 身 地 京都市下京区
最 終 学 歴 東京大学 法学部
血液型 A型
この人すごいと感じる時 何事にも挑戦し続ける姿勢
この人がっかりと感じる時 すぐに「できない」と発言する人
私史上、こんな一年にする！ 仕事もプライベートも120％の満足度
平成イチの思い出☆ いいお客様に出会えた事
心に残る一曲♪ I'm proud
最近言われて嬉しかった言葉 頭の回転が早いね ! !

等級一覧
Ｍ１
Ｍ２
Ｍ３
Ｍ４
Ｓ１

部
長
次
長
課
長
課長代理
係
長

Ｓ２
Ｓ３
Ｊ１
Ｊ２
Ｊ３

社員４級
Work
from home system
契約社員(雇用延長含む)

係長心得
主
任
社員１級
社員２級
社員３級

ボスチャレンジコース参加者

Ｊ４
Z3
P1
P2
P3

1

パートタイマーIn-company Sidework Program
切削博士（合格回数）(Hybrid Work Program)1

オレンジ博士（合格回数）1

あきんど塾（入塾年数）

新

新入社員研修教官

ボスチャレンジコース教官

リ

リーダーシップコース教官

入寮者

単身赴任者

あすなろ補助金制度

留学制度・海外研修
白紙の部屋

短

スマイルサポータース

スキルアップコース教官

Go Home Early System

導き隊

Additional Off Time System

10 3 産休・育休復職予定日

PBアイデアBOX採用者

住宅相談室

半日正社員（短時間勤務）

大阪ラヴィッツ所属

在宅勤務者

空気圧技能試験合格者

ウェルカムバック

船舶免許保持者

コンプライアンス・オフィサー

BMトレーニング・コース

Corporate Data

2002

The Nakayama
visually impaired
welfare foundation

Happy Sunday Policy

Logistics

Relationships with
Stakeholders

1996

Environmental
Efforts

Half-day full-time employee
systemThis system allows staff to reduce their working hours down to as few as three hours per day for reasons of child raising up until
their child finished sixth grade (Legally, employees can reduce their working hours down to as few as two hours per day until achild reaches three years of age). Employees can also use this system to shorten their working hours when they are pregnant,taking care of a family member, or injured/sick. (Program participants: 97 for childcare, 1 for taking care of a family member,and 6 due to injury/sickness)

Corporate
GovernanceIn order to promote the use of paid vacations, we encourage employees to take annual paid vacations on their birthdays (orwithin one month before or after) as “birthday off time.”

Yasuaki Takagi, Planet South Kanto

Regular Personnel Transfers and Job Rotations

Integrated Report 2021

1996

Manami Endo, IT Planning Section*1 SSP (Sales & Support): Internal sales activities within the company

Staff Directory

Birthday Off Time System

Corporate

After working as SSP , this year I am working
as an SSL(*2) to expand the business performance of our clients through both sales visits
and remote (web-based) negotiations. In the
future, we would like to utilize our strengths inlogistics and systems for new customers development.

2003

Human Resources/
Governance andFinancialSocial Contributions(*1)

Overview
Trusco Nakayama does not pay severance as a lump sum upon retirement, but as an annual payment known as a “financialbond,” a performance-based payment to reward annual contributions.

Digital Service

Shuhei Iso, Osaka BranchSpecialist

Start

Financial Bond (annual
payment for severance)

Sales

Specialist*SSL (Sales & Solutions): Involves visiting customers to solve their problems

52

Program

Overseas: Transfer to domestic and overseas locations Domestic: Transfer to domestic locations only

To acquire sufficient working knowledge of the overall business that the employee is involved with and to takeon the role of business manager within a certain region only.

Area

Personnel Policies (some have been omitted)

Distribution

Occupation
Overseas career

Lovebird Transfer Policy
Husband and wife Masataka Ishiga (Internet Sales Tokyo
Branch) and Haruka Itoya (MRO Supply Tokyo Branch)

Products

Unique programs to support staff

This program lets our staffs choose from six different occupations; career (overseas), career (domestic), area, specialist, support, and logistics. Staffs maychange their course if they earn a certain level of assessment on their personnel
ratings. In addition, we regularly conduct personnel transfers and job rotations
across departments to provide a variety of experiences that will help employees
hone their work and personal skills to raise the level of our corporate growth.

Corporate
MissionGuiding each individual to make the right career choice

Value Creation

Occupational Selection Program

Note: In addition to the programs listed above, we offer a staggered workday system, free biz system, an accumulated paid leave system, and a necktie system (asystem that allows employees not to wear neckties even outside the cool biz period).

※年齢、勤続年数、事業所所属年数は令和元年10月1日を基準としております。 ※コース歴は、コース制度が開始された1996年以降を記載しております。
※出身地は、県庁所在地・政令指定都市の場合、都道府県名を省略しています。 ※教官経験者は、直近5年分の該当者のみ記載しております。
※PBアイデアBOX採用者は、ナイスアイデア賞の受賞者のみ記載しております。

当社は人と人とのつながりを重視するオープンで透明性の高い会社です。
当社の社員名簿は企業風土をあらわしています。皆さんの協力のもと多くの情報を掲載できています。全従業員とのコミュニケーション

Integrated Report 2021

53

For spending valuable time with those who are dear to us

We have a responsibility to provide workplaces where
staff members can work with stability and peace of mind.
TRUSCO hires all staff members under full-time employment so that they can work for many years with peace ofmind. In addition to creating a workplace where everyone
can play an active role, we are also taking various initiatives such as hiring full-time childcare workers and chefs.

We need to build an environment where employees canengage in their work safely with both body and mind. Inorder to encourage our employees to spend time with
their families and loved ones on holidays, we have ourown recreational facilities and boats which they can use.

As of December 31, 2020
56.8%

Percentage of female employees

35.2% (full-time employees)
75.3% (part-time employees)

Percentage of female senior supervisors

22.7% (58 persons)Rate of paid days taken off

67.6% (full-time employees)

Percentage of staff that return to work

92.1% (35 persons)

Percentage of eligible males/females
that took childcare leave

25.0% of eligible males(full-time employees)
100.0% of eligible females(full-time employees)

Note: The above indicators are for the parent company only.

Serves as both a childcare center and employee cafeteria

557

589

150

158

178

182

178

2016

2017

2018

2019

2020

Total Number ofFemale Employees

Number of
Female Career Course
Employees

Consolidated
Accounting Started

Consolidated Number of women in charge and number of positions

As of December 31, 2020

Supervisors

General Managers

Section Mangers/Branch
Office Managers

5

Deputy Logistic Center Managers

2

Senior Supervisors

15

Acting Senior Supervisors

43

Supervisors

82

Consolidated Number and Breakdown of Female Staffs

Female staff (average age: 32.1)

1. Congratulatory The company presents $280 as congratulatory money togift for marriage any staff who marries.
2. Congratulatory The company presents a catalog gift worth about $93 forgift for childbirth each child when a staff or their spouse gives birth.
The company presents up to $467 as a condolatory gift
when a staff or a member of their family passes away.
3. Condolatory/
We offer a condolence gift to families when an employee
condolence gift
passes away (up to 93 thousand USD depending on how
long the employee worked for the company).
4. Injury or Sickness The company presents $93 to a staff who has to take
Compensation
leave due to injury or sickness.
The company presents up to $934 based on the degree the5. Disaster Comhouse and belonging of an employee is damaged due to a
pensation
disaster such as a fire or earthquake.

Facilities

As of December 31, 2020

589
(female staff ratio: 35.2%)

Careers (regular positions)

178

Overseas career54

Domestic career

124

Specialists (expert positions)

15

Area (regional positions)273

Support (internal work positions)25

Logistics (distribution positions)76

Employees with Extended Employment

1

Overseas staff (including 2 staff on loan)

20

Trusco Nakayama Health Insurance Association staff (including 1 staff on load)

1

Resort Condominiums (16)This program allows staff to deduct money from their salary and bonuses to an accumulated savings in which the company will contribute twice each year to the staff.

Wine Seminar
We hold a wine seminar, a party designed exclusively for singles, once every
two months at two locations, the Tokyo Head Office and the Osaka Head Office,to give single employees an opportunity to meet other singles. (Currently notheld due to the Covid-19 pandemic.)

60th Birthday Gift to Staffs
In celebration of a 60th birthday, the company invites that employee and one member of
their family to either “Tokyo Baycourt Club”,
a membership resort, or our own recreation
facility, “Kyoto Kaguraoka Rengestsuso.” Wealso arrange and cover travel to and from thelocation (Green Car tickets will be provided
when traveling by Shinkansen and businessTokyo Baycourt Club Hotel andclass tickets will be provided when traveling Resort
by air) and also provide a monetary gift.

We have 16 resort condominiums that our officers, staff, and part-time staffs can use freely.

Singles’ Dormitories(3 locations)· Chuo Ward, Sapporo City
· Kusatsu, Agatsuma
District, Gunma· Minato Ward, Tokyo

We own three company dormitories (two in Tokyo and one in
Osaka) for single staffs and staffs
transferred to a position away fromtheir family. TRUSCO also provides
dormitories in other areas.

· Shima City, Mie· Chuo Ward,
Kobe City
etc.

Kurio Odori La Mode
(Chuo-ku, Sapporo
City, Hokkaido)

Recreational/Training
Facilities (3 locations)

TRUSCO’S Shinbashi(Minato-ku, Tokyo)

We use these facilities for a wide range ofapplications such as a guest house, staff
trips, and staff training. The chefs are also
full-time employees of our company as
we want to be in the hands of people who TRUSCO Resort and Spa Karuizawa
would make delicious food for us.
(opened in May 2021)

TRUSCO Marine Club (2 yachts)

TRUSCO Resort and Spa Hakone
From left to right: Isao Iba, Manager, Souschef Kan Iizuka. Sous-chef Toshiro Sato, andHead Chef Taro Kinoshita
Note: Mr. Iba is scheduled to take his new postat the Fukuyama Branch from April, 2021.

TRUSCO’S I (Yokohama)
Length: Approx. 41.0 ft. (12.50m)
Weight: Approx. 18 tons, Capacity: 12 persons
Output: 370 horsepower (2 engines)

TRUSCO’S Osaka(Higashi-Osaka City,
Osaka)

TRUSCO owns two yachts, one in Yokohama (Kanagawa) and one in Ashiya (Hyogo).
These yachts are made available as a chance to enjoy a bit of cruising. In addition,
the company will subsidize half the cost of acquiring a small vessel boating license(101 license holders in the company). (As of December 31, 2020)

Relationships with
Stakeholders

Planet Saitama and Planet South Kanto each have a childcare center for working
full-time employees and part-time employees. The childcare center has full-timeworkers that are permanently assigned there. In addition, the employee cafeteriaat Planet Saitama, where a full-time chef and nutritionist are permanently assigned, offers an original menu that focuses on the health of employees.

510

585

465

TRUSCO has put in place five congratulatory and condolence programs for
executive officers, staffs and part-time staffs.

Environmental
Efforts

Average overtime hours per month

14.9 hours(including fixed overtime)

30.2%

Corporate
Governance5.0% (7 persons)

30.8%

Accumulation Savings

Corporate

Percentage of women in management roles

31.0%

32.0%

Human Resources/
Governance andFinancialSocial Contributions

Percentage of female employees
hired annually

Congratulatory/Condolence Programs

Ratio of Female Career Course Employees

32.3%This contribution-type corporate pension plan provides 10% financial assistance toa reserve fund to pay out to staffs as a 10-year fixed pension from the age of 65.

Digital Service

Comfortable Workplace Environment Indicators

Changes in the Total Number of Female Employees and the Percentage
of Female Career Course Employees (Regular Employment)

Nakayama Pension (10% financial assistance)

Staffs can purchase company shares by deducting it from their salary eachmonth to receive a 10% bonus to the value of the contribution. It is recommended that employees withdraw shares once they become unit shares andown shares in their own name.

Sales

With regard to the training of our female employees, we respect thefemale employees within the company who say, “I don't want special
treatment” or “I want to compete on the same terms as men.” We do notdeliberately turn women into executives but rather maintain a meritocracy.
In addition, we have established support programs for female employees,
including a program that supports a life-long working environment and a
program that supports employees who are raising children.

Miki Fujitani, Female Branch Office Manager of the Akashi Branch, seen in
the center of the photo together with young employees

Employee Stock Ownership Association(10% financial assistance)

Distribution

Becoming a company where female
employees flourish

Programs

Kyoto Kaguraoka Rengetsuso
Products

Policies to Give Staffs Long-term Job Security

Corporate
MissionBenefits and Welfare

Value Creation

Flexible Work Environment

An environment where employees can easily take paid vacations

The Nakayama
visually impaired
welfare foundation

To encourage employees to take paid vacations, we encourage all employees
to take at least six planned vacation days a year. Also, there are also many
policies established that make it easier to take paid vacations, such as birthday
vacations and paid vacations that can be taken in hourly units (Average number of paid vacation day a year: 12).

54

Integrated Report 2021

TRUSCO Smile Supporters
This is a mentor system for staff who have uncertainties and concerns about
their job to consult with a senior staff member. There are currently 15 seniorstaff members throughout Japan that provide such support.

(

Kyoto Kaguraoka Rengetsuso
Left to Right: Head Chef Yusaku Karatsu,
Assistant Manager Tomoko Kubo
and Manager Yoichi Yoshigoe) ()Corporate Data

Tora Kids Saitama Childcare Center Planet Saitama(Planet Saitama)
Cherry Blossom (Employee Cafeteria)
Sachi Yamaguchi (childcare worker) and Left: Kazumi Takahashi (chef)
Chiaki Kawashima (childcare worker)
Right: Sayuri Ishikawa (nutritionist)

TRUSCO’S II (Ashiya)
Length: Approx. 36.0 ft. (10.98m)
Weight: Approx. 12 tons, Capacity: 12 persons
Output: 285 horsepower (2 engines)

Integrated Report 2021

55

Recruitment Activities

Health Declaration

Health Care Section (located at the Tokyo
Head Office and Osaka Head Office)Health Care Section
Health Care Section(Tokyo Head Office)(Osaka Head Office)Akiko Amakawa, public health nurse Kiyomi Yamada, public health nurse

University Graduates
Vocational School Graduates
High School Graduates
Number of Employees Hired
Mid Career

Total
FemaleMale
FemaleMale
FemaleMale
Total
FemaleMale

2016 2017 2018 2019 202097
83 118 96
79
46
28
41
38
31
21
23
42
35
25
0
0
0
0
0
0
0
0
1
0
20
18
17
8
6
10
14
18
14
17
13
44
17
5
5
11
14
5
3
4
2
30
12
2
1

Internship

Recruiter

Direct talks with management

A five-day program held at the Tokyo Head Officeand the Osaka Head Office designed to give participants a chance to see what sales is like. This
program is separate from recruitment activities
and is positioned as a social contribution activity
to help people choose a company for the future.

In addition to the Recruitment Section, Employees
from all over the country who work in various
departments, divisions, and sections participate
in company briefings held at each university. Thismeans that the entire company is focused on
finding future employees.

We provide opportunities for employees to havedirect conversations with the President, directors,
division general managers, and other members ofthe management team. During a Round Table Discussion with the President, the President answers
each and every question that only he can answer.

An intern experiencing what sales is like

Explanatory meeting held at a university

Direct talks held with the President are conductedat the Tokyo Head Office and Osaka Head Office

We are a company that encourages employees to stop smoking

Trusco Nakayama Health Insurance Association Established in 2019

Participation in company events by candidates who have received informal job offers

This is a company information session held for parents of individuals who have received an informal job
offer. We hold these sessions because we believe thatby having parents of prospective employees see ourcompany from the perspective of a senior member ofsociety, they will be able to understand our company
and give appropriate advice to their son or daughter
who has been offered a job. (participation is optional)

We regard the company entrance ceremony as aceremony to celebrate with the family in the same
way as a school entrance ceremony or coming ofage ceremony. As a result, we have been inviting
the family members of new employees to these
ceremonies each year.
(Started in 2005)

People who have received informal job offers participate in company events such as the General
Meeting of Shareholders and the Nakayama Wonderful Festa (see p.73), which is co-hosted by the
Nakayama visually impaired welfare foundationand our company. We provide opportunities forthem to understand more about the company andlearn about social contribution.

More and more parents are participating inthese sessions each year

Providing an opportunity to celebrate the beginning of a new life with family members

Candidates who have received informal job offers sitting
in on the company's General Meeting of Shareholders

Corporate Data

Family-Friendly Company
Entrance Ceremonies

The Nakayama
visually impaired
welfare foundation

Original insurance card(sample)Company Information Session for Parents of Individuals Who Have Received an Informal Job Offer

Relationships with
Stakeholders

Efforts are being made to keep members of thecompanies from smoking, including making it
mandatory for directors, executive officers, division general managers, managers in charge,
future manager candidates, and those who wish
to join the company.
● Smoking cessation support● Non-smoking rate for the entire company: 84.4%(Non-smoking rate for managers: 100%)

Environmental
Efforts

We also focus on mental health initiatives.
● Maintaining a 100% stress check rate
● Using organizational diagnosis results to improve the workplace environment● P roviding mental health education throughself-care and line care training● Free mental health consultations (free consultations are available for individuals and theirfamilies with outside specialized organizations)

Corporate
Governance

Mental health

We offer full and mini health check-ups. We also
subsidize the cost of physicals for dependent
spouses. (Staffs over the age of 35 can undergoa full health check-up and staffs under the age of
35 can undergo a mini health check-up)● Maintaining a 100% checkup rate (checkup
performed once a year with company subsidy)● Improving secondary checkup rate

Integrated Report 2021

Number of New Graduates Hired

Corporate

Regular Health Check Ups

As a company that looks after the lives of our employees, wewant to take responsibility for the health of our employees
and their families.Based on that desire, in April 2019, weestablished the Trusco Nakayama Health Insurance Association, our sole health insurance association, at the Tokyo
Head Office. Its establishment will allow us to further enhance
our own health services. We will promote initiatives that aresuitable for our company so that employees can continue
working with peace of mind for many years.

Changes in Number of New Graduates Hired and Employees Hired Mid Career

Human Resources/
Governance andFinancialSocial Contributions

We have established the Health Care Section for the purposeof building an environment where staffs can maintain their
physical and mental health and feel secure in their work.
The Tokyo Head Office, Osaka Head Office, and distribution
centers each have a Nursing Office designed for employees
who are not feeling well. Public health nurses working at ourTokyo and Osaka head offices serve as points of contact for
employee health-related consultations.

Based on the belief that “a student's duty is to study,” we set a recruiting period which allows students participating in recruitment activities
to concentrate on studying. We hold a variety of unique job experience
events so that students participating in job hunting activities can selectthe companies that they are truly interested in which helps them avoid
finding a job that they do not fit. By participating in company events evenafter an informal job offer has been made, prospects are able to further
understand our corporate culture and resolve any concerns they may have
before joining the company.

Digital Service

Specific Health Management initiatives

2020 informal job offer ceremony (held online)

Sales

Health Management
initiative pageThe source of competitiveness for an organization is its originality.
Because we are one of the last wholesalers in the industry, we haveaggressively challenged and achieved things that other companies do
not and cannot do. We will continue to acquire human resources thatcreate new value through original ideas to fuel our corporate growth.

Distribution“As a company that supports manufacturing in Japan,
Trusco Nakayama Corporation aims to be of service topeople and society. Through our business activities, wewill continue to help reduce the environmental impact
caused by manufacturing sites, workplaces, and suppliers as well as promote the health of our employees sothat they can continue to work with peace of mind formany years to come.”

We acquire human resources that possess
creative ideas

Products

Employee health management is essential for the continuous growthof a company. We promote our own type of health management by
have established a Health Care Section and an independent healthinsurance association. Since 2017, the Ministry of Economy, Tradeand Industry (METI) has recognized TRUSCO as a White 500 CertifiedHealth and Productivity Management Organization for three consecutive years, and we have continued to be recognized as a Health andProductivity Management Organization ever since. We will continue
to promote the health of our employees and link their health with our
corporate growth.

Trusco Nakayama Corporation

Corporate
MissionPromoting a unique type of health management

56

Value Creation

Health Management

Members of the Trusco Nakayama Health Insurance
Association office(Left to right: Supervisor Ryoko Nakamura and Manager
Akiko Tani)
Note: Ms. Tani is scheduled to take her new post in April 2021.

Integrated Report 2021

57

No Self-Awareness No Growth

Achieving stable improvement in corporate
value by being “Having assets on our own”

We have established our own training system to help our employees become useful to people and society. By knowing exactly the types of human resources
we are looking for at each stage, we give our employees the opportunity to become aware of what we are doing and to grow as individuals. It is an opportunity for employees to understand what they need to do, the skills they need, and the purpose.
Fundamental abilities required required for working adults: Businessetiquette, interpersonal and practical communication skills essential foradvancing in the workplace

Skill-up Course

4th Year (Employees hired as new graduates/high school graduates)
Distribution Course (Recommended Candidates)

Training to encourage
participants to think andact independently

Ability to look at and understand the company from multiple perspectives
and to take the initiative in solving organizational issues

Leader's Course

7th Year and onwards (earliest)(with entry requirements)

Business environment
analysis

Ability to analyze and make proposals to improve the performance of customers
and supervise the development of human resources in their own organizations

Manager Challenge
CourseAll Career, Specialist, andArea path employees(with entry requirements, earliest 2ndyear)

Problem solving

As a manager of an organization, have the ability to plan solutions forcustomer problems and to solve problems involving other departments.
(Only an employee who is judged to have the above abilities will become a“Boss Challenge Student*”)

Bosses (Supervisors)(once every two years, with participation
requirements)

Business domain expansion

Boss Management
CourseTrainees will understand the essence of management strategy throughmanagement level communications with customers implement management that demonstrates influence through the organization by understanding the external environment.

*Boss Challenge Student: Candidate for managerial level position

In addition to Trusco Stage Trial (our original education curriculum), we conduct a variety of other training courses as well. It is necessary for our employees
to continue to learn in order to perform their work at a higher level. These training courses provide various types of support in accordance with each person's
career and desire, including a level of on the job training (OJT) that goes beyond the boundaries of acquired qualifications and one's immediate organization.

Rookie Manager Course

Staff Level

Overview

New Bosses (Supervisors)

Participants will learn how to use the management resources necessary to conduct management as a manager. The course aims to create a common purpose for all tasks that must be performed as a boss throughembodying the direction of their immediate organization.

Area (Logistics)
Training Course

Area/Support/Logistics
Employees

This training deploys staffs to another business location or distribution center for roughly one week. Establishing opportunities where the employee can compare job sites helps them grow and enhances our operations.

Job Challenge Course

Course candidates (withparticipation requirements)

By allowing employees to transfer to the department of their choice, they can increase their sense of ownershipand give shape to their thoughts, leading to personal growth and increased corporate value.

Overseas Business Course
Global Challenge

Candidates

Orange Doctor Examination

Participants will learn about exporting while working at the Overseas Sales Section of the Tokyo Head Office.
Orange Doctor Examination was established for the purpose of enhancing staff knowledge about our products. This
examination is held twice a year. Staffs who pass the examination receive an allowance of $93 per month for one year.

All employees“Becoming a human resource who has a track record founded in the skills necessary to grow a company all
starts with the will of the individual.” This is why the company provides 50% assistance for the course fees tostaffs who complete a course.

TRUSCO Distance Learning Courses
Integrated
ReportIntegrated
Report 2021

This system subsidizes $2,803 from the cost of acquiring a degree as educational support for gaining a bachelor’s degreefrom a University. The company also provides a $1,401 subsidy for staffs to acquire a bachelor's degree in another field.

202 1

Net Worth

Merchandise (products)$388 million

Long-term Debt $327
$1,242
millionmillionetc.

$993 million$327 million etc.

$352 million

Net Worth

Capital:$1,242
millionFixed assets

Tangible fixed
assets$993
million$46 million$897 million

Capital:Tangible fixed assets
Intangible fixed assets

millionRetained
Earnings$46$1,153 million$897
million$64 million

Intangible fixed assets$64 million
Total assets$1,951etc.

Retained Earningsetc.

$1,153 million

Liabilities/Net assets$1,951 million
Total assets

etc.

etc.

$1,951 million

etc.

Liabilities/Net assets
58th term Balance Sheet(Shareholders’ equity ratio: 63.7%) million
million$1,951

Enhancing corporate value through both tangible and intangible fixed assets
Since the opening of our first distribution center, Planet Kyushu, in 1994, wewere actively building 26 new distribution centers across the country until
the rebuilding of Planet South Kanto in 2020. We have also accelerated ourinvestments in logistics and systems, including upgrading our core system,
Paradise, in 2020. As a result of our aggressive capital investment, our total
assets have tripled in 20 years, from $728 million in 2000 to $1,951 million in
2020. Among those investments, property, plant and equipment, which mainly

consists of land and buildings, was $135 million in 2000 and will be $897 million in 2020, more than six times as much as in 2000, while intangible assets,
which mainly consist of investments in information systems, were $0.9 million
in 2000 and will be $63 million in 2020. We will continue to build the world's
most advanced logistics center using digital and mechanical resources (logistics
equipment) technology, and achieve sustainable enhancement of corporate
value by effectively utilizing both tangible and intangible fixed assets.

Balance Sheet Changes(Unit: million USD)

LiquidAssets(Unit: million USD)

Total Liabilities
253
Amountthat ismerchandise(Products)

LiquidAssetsAmountthat ismerchandise(Products)

85

562
Fixed
AssetsTangible
135

164

Other
Investments 28

Net Worth473

LiquidAssets957

Fixed
assetsTangible324

Fixed
assetsIntangible 16359

728 Overall Total Assets 728

37th term Balance Sheet

Total Assets(Unit: million USD)

Net Worth686

Intangible 0.9
Total Assets

Total Liabilities
141

151

468

$728 million

Other
Investments 17

Total Assets

Changes in Total Assets and Net Assets(Unit: million USD)

828 Overall Total Assets 828

Amountthat ismerchandise(Products)

708
Net assets

387

Tangible
897

1,951

Liabilities

Total Liabilities
708

1,122
Net Worth
1,242

Intangible 63
992

Total assets

Other
Investments 30

Total Assets 1,951 Overall Total Assets 1,951

47th term Balance Sheet

58th term Balance Sheet$828 million$1,951 million

728
253
473
2000

716
157
557
2005

828
141
686
2010

208
1,242
913

2015

2020

IntegratedIntegrated
Report 2 Report 2021
02 1 5 96 9

Corporate Data

University Subsidy System

Participants learn about overseas business while working at one of our overseas subsidiaries (Thailand or Indonesia).

Capability Target 3: Ability to receive and ship orders 365 days a years

Long-term Debt

etc.

The Nakayama
visually impaired
welfare foundation

The BM Training Course allows one female course candidate to participate in board meetings, which are normally limited to officers, each month. The purpose of this program is to create opportunities for women to freely
communicate their opinions with their own unique perspectives, sensibility, and ideas in order to grow.

Capability Target 2: Completion of user direct delivery system

Fixed Liabilities

Relationships with
Stakeholders

Course candidates (female
employees)

BM Training Course

Capability Target 2: Completion of user direct delivery system
Capability
items
in inventory
Capability Target
Target 1:
3: Ability
Ability toto store
receive500,000
and shiporders365 days a years$352 million

Merchandise(products)
Accounts
Receivable

Environmental
Efforts

Job Training Program

In order to enhance our corporate capabilities and improve the speed of our
growth, we have set the following capability targets to be realized by 2023.
We will continue to make effective use of key assets that serve as the company's main
arteriesfrom atolong-term
perspective
continue to makeCapability
Target1: Ability
store 500,000
items inandinventory
effective capital investments to enhance our corporate value. (see p.17)$240$302 million

Fixed assets

etc.

$145 million
Fixed Liabilities
Short-term Debt
$158 million etc.

Accounts
Cash
and Receivable
deposits$388 million
million$240

millionAccounts Payable

Corporate
Governance

Other Job Training Programs

Capability Targets to be Achieved by 2023

millionCorporate

Fundamental training forbecoming a full-fledged
member of society

All new staff

Short-term Debtmillion
$357
$158

$958
million$302

Human Resources/
Governance andFinancialSocial Contributions

Desired Abilities

Current
Liabilities
Accounts Payable$145 million

Cash and deposits

Digital Service

Content

New Staff Training

Staff Level

Liquid Assets

Sales

Name of Training$357 million

Distribution

TRUSCO Stage Trial$958 million

Products

2020 Leader's Course

We believe that owning our own distribution centers, branch offices,
data centers, and vehicles, which serve as the main arteries of corporate
management, will bring the greatest benefits. This is why we are placing
importance on the idea of TRUSCO being “Having assets on our own”.
Instead of aiming for short-term profits, we take the perspective of longterm corporate value enhancement and promote the strategic strengthening of our balance sheet (B/S), which leads to greater conveniencefor our customers. Since 2016, we have maintained a rating of “A” by
Rating and Investment Information, Inc., and by raising funds with an eye
to the future and continuing to proactively make capital investments, weare providing our customers with higher value-added services.

Current Liabilities

Liquid Assets

Corporate
MissionFinancial Strategy

Training provides people with the “opportunity to notice things.” No matter
how much education someone has had, the problem is awareness. Corporate activities are built on the results employees achieve. We support thedevelopment of enthusiastic employees who understand the results they are
expected to achieve and who are able to obtain the knowledge and skills
necessary to achieve them and take action. We provide various opportunities
at the company so that employees can continue to grow.

6 85 8

Value Creation

Human Resource Development

Utilization of Liquid Assets − Expanding
the number of inventory items −We consider the inventory hit rate (91.0% as of December 2020), whichis the ratio of how much of an order we are able to ship from our inventory,
to be an important management indicator rather than the stock turnoverratio. We position inventory as the energy for growth, and by thoroughly
strengthening our immediate delivery system, we are able to improve customer convenience. Since 2006, we have stepped up our efforts to achieve
our goals of 200,000 inventory items and $186 million in inventory value.
As a result, we achieved our initial targets from 2013 to 2014, which weevaluate as the basis for sales expansion. As for inventory, we have beensteadily expanding our inventory since then, and by the fiscal year ending
December 31, 2020, we had 442,000 items in inventory with a value of$387 million. We plan to expand our inventory to 500,000 items by 2023.
Merchandise Expansion(Inventory Value)

2011$149 million

Promoting Inventory
Expansion

Number of items in inventory (Unit: ten thousand)

26.4

21.2 23.1
19.2
14.1 16.4
Sales (Million USD)

1,078

1,214 1,235

29.8

1,556 1,654

1,362

We have made proactive capital investments, including the opening of Planet
Saitama in 2018 and the introduction of world-leading logistics equipment
such as Butler® and AutoStore. Fixed assets* have more than doubled from$415 million in 2011 to $992 million in 2020, and tangible fixed assets(hardware) from $387 million in 2011 to $897 million in 2020. In addition,
we will accelerate investment in software systems and make effective use ofintangible fixed assets to improve customer convenience over the long term.
*Fixed assets include buildings, land, machines, equipment, and software.

$415 million Promotion of Logistics
and System Investment

2020

$992

2,001 2,061 1,994

1,069

345
271 297233
189 202149 171 188
Inventory value (Million USD)

2011

2012

2013

2014

2014

2015

2016

2017

2018

9-monthfinancial results

407 387

2019

2020

For the Embodiment of “TRUST COMPANY”(Corporate Governance and Social Contributions)

Consolidated
Accounting Started

Continuing to invest in fixed assets over the long term to improve convenience for customers

millionIn order to continue to be a “TRUST COMPANY (=TRUSCO)”, a company that is trusted by
all of our stakeholders, we have made this concept the starting point of our daily corporate activities.
We will build our own governance system, strive to provide highly transparent information,and communicate with our shareholders, the local community, and society.

Total fixed assets
Tangible fixed assets(Unit: million USD)

Expansion of Fixed Assets

1,822

millionUtilization of Fixed Assets− Acceleration of Logistics and System Investment −

2011

33.6

44.2
37.4 39.2

Changes in Sales, Inventory Value, and Number of Items in Inventory

2020

$387

Sales increase in proportion to inventory expansion

980 992

853

Corporate Governance G. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

62

Environmental Efforts E. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

68

724
534
484 511447
415 416592

633
487 536469
448
387 388 411
2011

2012

2013

2014

2014

2015

2016

2017

870 897

735

Relationships with Stakeholders S

2018

2019

9-monthfinancial results. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

69

2020

Consolidated
Accounting Started

Changes in Fixed Assets

184“Active Management” to Creates Continued Profits
Draft transactions for suppliers and retailers, which were a common
business practice in the machinery tool industry in 2005, have been completely abolished. These and other moves reflect that we are a company
that always implements active management fueled by creative ideas. In
particular, the period from 2016 to 2020 was regarded as a period of anticipatory investment for us when we actively made capital investments (inlogistics and systems) to strengthen our capabilities. Active management
is essential to continue generating a healthy cash flow. While maintaining
an appropriate capital adequacy ratio (63.7% in the fiscal year ending
December 31, 2020), we will promote proactive capital investment, strategically enhance assets, and effectively utilize them to increase corporate
value by generating continuous profits.
Cumulative depreciation of fixed assets
currently held by the company

60

Integrated Report 2021

$399

million

159(Unit: million USD)
Ordinary Income
Depreciation
Capital Expenditures (by year)82

134 135 136
134
131

107

93
47

57
32

18
2012

E Environment

78

77

77

49
22 31

2011

123

14

15

2013

2014

13
2014
9-monthfinancial results

42

75

74

S Social

60

G Governance

44

21

22

25

2015

2016

2017

33

2018

2019

2020

Consolidated
Accounting Started

Changes in Capital Expenditures (by year),Ordinary Income, and Depreciation

Integrated Report 2021

61

Basic Compliance Policy

As a “Company Gaining Your Trust,” we seek to be acompany where officers and staff members can engage inself-cleaning actions under a unique governance structure.

Fundamental Approach

Study tours for shareholders

Top-Level Parties Conference(Board Meeting)Board of Auditors Meeting3
1

Coordination(7.9%)

16,043

18,46253rd term
2016

54th term
2017

25,36555th term
2018

ReportingInternal Auditing Office
Audits conducted through the“Fire Lookout Tower”, electronic
auditing system (see p.63).

29,99756th term
2019

57th term
2020

The number of shareholders exceeded 40,000 for the first time in the 57th
term (as of the end of 2019).
The number of attendees at the Ordinary General Meeting of Shareholders forthe 57th term decreased due to the Covid-19 pandemic.

Audits/guidance● Electronic Auditing System

This is the industry's first electronic auditing system, which was launched
in June 2001. The system is operated for the purpose of immediately detecting abnormal events using electronic data of internal transactions andtaking measures to prevent recurrence.
57th Ordinary General Meeting of Shareholders (Tokyo venue)● Internal/External Consultation Hot Line

President OJS (Open Judging System)
We have adopted a “president open judging system,” which
we view as one of the indicators for evaluation of our top
managers, for voting on the selection of the President byshareholders who have heard our business reports and Q&A
at the General Meeting of Shareholders.
Valid ballots

Approvals

99.7%

1,652

1,448

1,443

Digital Service Strategy Department

Product Dept.

Distribution Dept.

Sales Dept.

Director
General Manger of the Business
Management Department

Director
General Manager of the Digital
Service Strategy Department

Senior Executive Officer
General Manager of the
Product Division

Director
General Manager of theDistribution Department

Director
General Manager of theSales Department

Atsushi Kazumi

Atsushi Kazumi

Tatsuya Nakayama

Hideki Naoyoshi

Kazuo Nakai

Note: The two full-time auditors and one part-time auditor are outside corporate auditors.

Consisting of only executives (excluding Outside Directors),
our Board of Directors Meetings deliberate the directions of
the company, ensuring objective and rational decision-making.
● Composition

・Company President
・Executive Directors
・Full-time Auditors
・Part-time Auditors(As of April 1, 2021)

1
3
3
1

● Compliance Manual

Trusco Zentaku Book
In order to practice the code of conduct as a TRUSCO business person on a daily basis, from the discipline of a member of society to prohibitions on bribery
and other business matters, the code is distributed toall employees to ensure its popularization.

Trusco Zentaku Book

Director, Auditor, Executive Committee, Division General Manager OJS
We have adopted an original system for the evaluation of executives and general managers. Every year, executives and division general managers are evaluated by about 150 managers, with the results used as criteria in promotion/
demotion. The results and comments are also fed back to executives, with theaim of preventing improprieties and raising our company value. (see p.51)
Integrated Report 2021

Corporate Data

Business Management Dept.

Integrated Report 2021

Number of attendees

We have established the Consultation Hot Line in our CSR Section as aconsultation desk also for existing suppliers. It is a system for reportingfrom both inside and outside of the company to allow us to quickly discover, handle, and prevent compliance related issues.

The Nakayama
visually impaired
welfare foundation(1) Transfer of personnel, including manager positions, generally every 5 years on average (2) Fostering multifaceted employee development and creating a corporate culture free offactions (3) Preventing fraud through new surveillance

62

Approval rating

Top-Level Parties Conference (Board Meeting)■ Cross-departmental personnel transfers

Initiatives for Preventing Fraud and Bribery

Relationships with
Stakeholders

Direct contact (hotline)from employees(includes employees fromoverseas subsidiaries)

Management Conference features round-table layout (September 2020)

We are working on various systems and initiatives to prevent
employee fraud (some have been omitted).

Reference: 57th Term President OJS

Compliance Officer

・Board of Directors Members 11
1
・Senior Executive Officers
・Executive Officers
1・Division General Managers 13(As of April 1, 2021)

Environmental
Efforts

Tetsuya Nakayama

Legal Advisors

agement Conference
1
3
3
3
1

Corporate
Governance

Board of Directors Meeting(Management Conference)・Company President
・Executive Directors
・Outside Directors
・Full-time Auditors
・Part-time Auditors(4.1%)

ReportingDirect contact (hotline)from employees(includes employees fromoverseas subsidiaries)● Composition of Man-

Board of Directors

40,106

Accounting Auditor
Hotline for Reports from
Outside the Company

Reporting

1,652(7.4%)(7.0%)

Deloitte Touche Tohmatsu LLC

President

CSR Section

1,790● Composition of the

Corporate

Reporting

ReportingCompliance Committee

1,463(Unit: person)

Coordination

held oncea monthAuditsExecution of Duties

1,280

2,233

1. Round-table layout allowing face-to-face communication
2. Changes are made to seating every time with no priority given to facilitate participation from new perspectives
3. Persons responsible for work sites and general staff members are selected to participate each time and are called upon to comment as required

Human Resources/
Governance andFinancialSocial Contributions(1) Executives also participate, to engage in dialog
with shareholders(2) Held at Tokyo Head Office and at distribution(see p.69)
centers

Suppliers

Number of attendees(attendance rate)● Features of the Conference

Digital Service

General Meeting of Shareholders

Direct contact from suppliers(Hotline)

Changes in Number of shareholders and attendance rate for theOrdinary General Meeting of Shareholders

Number of shareholders

Governance Structure (As of April 1, 2021)

Full-time Auditor*
Part-time Auditor*

1. Implementation of the President OJS (Open Judging System)
2. Held on an early schedule, avoiding days on which general meetings
are concentrated
3. Held concurrently in two locations, Tokyo and Osaka (execution of voting
rights, Q&A are possible; Chairperson rotates yearly between the venues)
4. In addition to the audio present, subtitles are projected onto a screen
in real time
5. Results of resolutions at the meetings, a portion of Q&A items, and theresults of questionnaires are released on the website three days later(7.9%)

Governance Report

Composition● Features of the General Meeting of Shareholders

Sales

We have made this concept of being a trusted company(TRUSTCO = TRUST + COMPANY) the starting point ofour daily corporate activities, and will fulfill its social mission
by embodying this principle. TRUSCO's basic policy is toestablish a “system to ensure the appropriateness of corporate business operations,” and to maintain andimprove the corporate governance system bypromoting constant reforms regarding various
management issues.
Corporate

We conduct decision-making at Board of Directors Meetings,
generally held 1 time per month. The Management Conference seeks a wide range of opinions from participants that
include Executive Officers and Division General Managers, toensure a broad perspective and transparency.

Distribution

1. As a company that supports the Japanese manufacturing industry, we will meet the trust and expectationsof the manufacturing site.
2. We will comply with laws and regulations, and will challenge new development based on morals and ethics.
3. Whenever we encounter a situation in which we musttake justice or profit, we will not hesitate to take justice.
4. We aim to be a “better working person / better corporate person” in accordance with corporate ethics.

We value the General Meeting of Shareholders as a venue
for reporting on our performance and activities to shareholders, and try to make it an opportunity where they can gain adeeper understanding about our company.

Products

TRUSCO executive officers and employees make thefour following declarations which together comprise the
Basic Compliance Policy

Board of Directors Meeting (Management Committee)

Corporate
MissionFor the Embodiment of “TRUST COMPANY”

General Meeting of Shareholders

Value Creation

G

Corporate Governance63

Interview with Outside Directors

Officers' Compensation
Basic Policy on Determination of Compensation, Etc. for Directors and Auditors

Compensation System for Directors and Auditors
Fixed Renumeration

The Company determines the officers' compensation paid to Directors andAuditors based on the following.
(1) The level of remuneration should be such that the Company is able toretain the motivation to improve business performance and to secure
excellent human resources from within and outside the Company.
(2) T he level should be based on changes in the business environment,
objective external data, etc., and should take into account the balance
between public standards, management content, and employee salaries.
(3) Officer compensation should be paid within the annual remuneration
limit, including bonuses.

Monthly fixed remuneration
Paid in accordance with each Director's position,
their individual performance, etc.

Officers' Bonuses
Up to 3% of net income attributable to shareholdersof the parent company at the end of the fiscal year
depending on performance

Method of Determining Officers' Compensation and Rate of Payment
Remuneration for Directors and Auditors consists of fixed remuneration(monthly fixed remuneration) and bonuses for Directors and Auditors. The
following remuneration ranges, designed to take into account the responsibilities of each position and the degree of influence on management, have been
established and will be determined by the Board of Directors, respectively, after taking into account the management environment, business performance,
achievements, management capabilities, and the degree of contribution.
The determination of the specific amount of remuneration for each officer may
be left to the discretion of the President by resolution of the Board of Directors.

1. Fixed Renumeration
The amount of compensation is determined at the beginning of each fiscal
year within a range designed for each position, taking into account the responsibility of the representative authority, position, etc., and the degree of
influence on management, and taking into account performance, achievements, management ability, level of contribution, and other factors.
Position

Director

Range of
Officers'
Compensation

As an incentive linked to profit indicators similar to the basic policy forshareholder returns, when net income attributable to shareholders of theparent company is recorded at the end of the fiscal year, up to 3% of thatamount will be paid as officers' bonuses depending on business performance.
In determining the total amount, the Company shall use as a reference theamount calculated by accumulating the bonus multiplier for each positionas specified in the bylaws and multiplying it by the net income attributable
to shareholders of the parent company. The amount to be paid individually
shall be determined for each Director within the remuneration range,
taking into consideration the degree of contribution to the business results
for the relevant fiscal year. Individual amounts for fixed remuneration andofficers' bonuses to be paid to Auditors shall be presented by Directors
and finalized through discussions among Auditors.
(Unit: thousand USD)

Range of Compensation by Type*3
1. Fixed
Renumeration

2. Officers'
Bonuses(1 + 2)President$560 to $1,345

0 to $747$560 to $2,093

Senior Executive Director$252 to $364

0 to $224$252 to $588

$196 to $308

0 to $186$196 to $495

$168 to $252

0 to $130$168 to $383

$37 to $84

0 to $9$37 to $93$140 to $252

0 to $84$140 to $336

$37 to $84

0 to $9$37 to $93

Executive Director
Director

Up to $5,607
per year*1

Outside Director
Auditor

2. Officers' Bonuses

Full-time Auditor
Part-time Auditor

Up to $934
per year*2*1 Decided at the 56th Ordinary General Meeting of Shareholders held on March 8, 2019.
*2 Decided at the 58th Ordinary General Meeting of Shareholders held on March 18, 2021.
*3 Decided at a meeting of the Board of Directors held on March 24, 2021.

Prerequisites for Ensuring the Effectiveness of the Board of Directors and Board of Auditors
In order to ensure diversity, the Board of Directors consists of four Directors from within the company who are familiar with the business andthree independent Outside Directors. The appointment of Directors is
informally decided (resolved) at a meeting of the Board of Directors withthe participation of Outside Directors. After assuming office during theGeneral Meeting of Shareholders, they will undergo a multifaceted evaluation based on the Open Judging System ((OJS), a 360-degree evaluation
system), which is the Company's unique evaluation system for Officers
64Integrated Report 2021

(excluding Outside Directors and Part-time Auditors).
In the future, the Board of Directors will continue to recommend suitable
candidates, regardless of gender or age, who meet the statutory requirements and have excellent character and insight. As for appointing foreigners, we believe it is not necessary as the scale of our overseas business islimited at present. However, we will consider it as our business expands.
As for Auditors, we appoint those who have extensive knowledge of laws
and regulations, finance, accounting, and corporate governance.

Outside Director (Board Brain(BB))

Outside Director (Board Brain(BB))

Outside Director (Board Brain(BB))

Kenichi Saito

Takako Suzuki

Kuniaki Hagihara

President, ForeSight & Company Ltd.

President, S.T.CORPORATION

Chairman, Hagihara Industries Inc.

Since they utilize their abundant experience and knowledge so as to contribute to the development of the company, TRUSCO calls Outside Directors “Board Brains.” In general, the role of an
Outside Director is to prevent scandals as an outside observer. However, at our company, we
have formed our own highly transparent governance system, so we place emphasis on contributing to “sustainable growth and the improvement of company value.” We interviewed each ofthese Outside Directors about the roles of Outside Directors and issues facing the company.
Interviewer: Takashi Nakai,
Advisor

Q1
What you think are the attractive characteristics ofthe company? What are some of its issues?
Saito

I think the company's best facet is that all the employees
are cheerful and there is no sense of hierarchy. I think thisis because there has always been a culture of valuing employees at TRUSCO. Also, for decades, there has been anargument that wholesaling is unnecessary, and in general,
wholesaling is not profitable. In our case, however, we havea very high operating profit ratio. I think the fact that wehave strong corporate strengths is also an attractive featureof the company.
In the future, I think that we must develop human resources

who are capable of quality thought as a needed improvement. It is important to understand what is out there, however, in the future, we will not be able to read the market
based on our past experience. We can only make a decision with confidence when we consider it based on factbased figures and when market potential is proven. I think it
is necessary to consider such points regarding future capital investment.
Hagihara

TRUSCO's management philosophy and code of conduct
are oriented toward customers, and its approach to business has been thoroughly adopted by its employees. At the
beginning of the monthly management meeting, President
Nakayama describes the company's philosophy and norms
as well as the right and wrong of things, citing various
Integrated Report 2021

65

Interview with Outside Directors

examples, and I feel that the company's focus on vectoralignment through constant education is a feature that noother company has.
On the other hand, it is rare to find a company with suchwell-equipped welfare and other facilities. If we becomecomplacent and conservative, we will not be able toachieve significant development. I think the challenge forthe future will be how to foster a mindset of always taking on new challenges, especially in consideration of theCovid-19 pandemic.
SuzukiI feel that we are in a very unique position in this industry.
This is because the core of the company's management
philosophy is based top management's unwavering beliefin pursuing unique strategies. In addition, the company isconstantly introducing new systems and frameworks that
other companies are not and that are designed with the employees in mind. It is also flexible enough to change course
when necessary. I find this facet of the company attractive.
In terms of issues, I think there is future room for growth in
the products we handle. We currently specialize in selling
professional tools, but it may not be necessary in the future
to distinguish them from general consumer products. The
boundaries between products are only thought of by manufacturers and wholesalers. For users, however, those boundaries are shifting. I believe that TRUSCO's future business
opportunities lie in how we can correspond to that shift.

Q2

porate value for the people and things that are necessary
for the survival of the company.
Since we conduct business on this planet, I believe that
we cannot do so unless we contribute to the global environment. For this reason, we must consider whether ourbusiness itself is truly connected to the resolution of global
environmental and social issues. This is not just limited to
the wholesale business, so I hope to gradually convey mythoughts and beliefs about the matter.

“I consider stakeholders to be not only employees, shareholders,and investors, but also the Earth itself to be a stakeholder. For thisreason, I believe that my role as an Outside Director is to take responsibility for whether decisions are being made that will lead toan increase in corporate value for the people and things that arenecessary for the survival of the company.”

TRUSCO focuses on the “advisory” role rather thanthe “supervisory” role, which is the role of Outside
Directors in general. What do you think TRUSO
should be doing in general?

Hagihara

Hagihara

Coming from the manufacturing business, what I value is not
the function of the product itself, but the benefit, the convenience that appeals to the heart in the true sense of theword. For example, the blue sheets manufactured by HAGIHARA INDUSTRIES, INC. can be used to provide fun places
to play and can be used for preventive maintenance purposes. How do we deliver the sensitivity, ideas, and thoughtsthat we put into manufacturing to our customers from thefunction of a wholesaler? I believe that I have a role to play inproviding advice from the perspective of a manufacturer.

Currently, there are companies where even the chairmanof the board of directors is an outside director, but I do notthink that strong governance is necessary as long as President Nakayama is at the top. In addition, in terms of compliance, it is ultimately important to never lie and be open
about failures. We have such a culture in our company, andI hope that our successors and the organization will also
place importance on these aspects.

Saito

What do you consider to be your role as an Outside
Director of TRUSCO?

Q3

I have been doing mainly consulting for many years, andmy job is to improve the performance of my clients. Therefore, although I am an Outside Director, I also view TRUSCO as a client. I am conscious of trying to do as much as
I can within the limited time available to me so that we can
improve TRUSCO's business performance. Specifically, I
distribute a document titled “For Tomorrow” at the monthly
management meeting and convey important ideas thatbusiness people should understand, using examples frommy own experiences.

“What I value is not the function of the product itself, but the benefit, theconvenience that appeals to the heart in the true sense of the word.”

66

Integrated Report 2021

Hagihara

I believe that the function of a wholesaler supporting the
manufacturing industry will continue to be indispensable.
It is my hope that stakeholders will look forward to seeing
TRUSCO evolve and each of its employees take on thechallenge of leading Japan's manufacturing industry.
Saito

I believe that the source of our strength, the thing thatbrings together our product development, inventory, logistics, and customer management, is sellability. Since notmany companies have this strength, it gives TRUSCO a
competitive edge. On the other hand, many companies(especially in developing countries) face issues, so if we canprovide them with our accumulated wisdom, the world will
become our partner. If our company can contribute to raising the level of companies in the world even higher, this will
be interesting. I would like to continue to fulfill my role while
dreaming that in the near future, TRUSCO will appear in theworld in such a place.

Saito

Generally, I am not a big fan of setting up nomination committees or compensation committees. In Japan, once theidea of setting up committees becomes popular, it tends
to move quickly. In TRUSCO, however, people in important
positions come together at the management meeting andnot only top executives but also many senior managementlevel people express their opinions which are very precise. I
feel that governance is effective in this respect.

Q4
What are your expectations for the future of the company and what is your message to stakeholders?

SuzukiFirst of all, I consider stakeholders to be not only employees, shareholders, and investors, but also the Earth itself tobe a stakeholder. For this reason, I believe that my role asan Outside Director is to take responsibility for whether decisions are being made that will lead to an increase in cor-promoting strong advancements in logistics performanceand digital transformation. I believe that we still have thepotential to develop a new business model that has neverexisted before in Japan, which would include among otherthings a major reform of the supply chain in this industry.

“If we can provide our wisdom to various companies, we will bedealing with the world, and we can contribute to increasing thevalue provided by more companies.”

Interviewer: Takashi Nakai, Advisor

Suzuki

The fact that we have been able to achieve this level of
performance in our fields may indicate that we are in a kindof “success trap.” It is exactly the same for S.T. CORPORATION, which I represent. However, in our case, we are

About Advisors
After retirement age, Officers can assume leadership roles for the purpose of providing guidance and support to those responsible for thecompany, utilizing their previously accumulated knowledge and experience. Although the mandatory retirement age for our executives is 65,
Advisors they can remain employed until the age of 70 if they so desire.

Integrated Report 2021

67

Fundamental Approach

Trusco Power Generation Installations(19 locations throughout Japan)

Competitors in
the Same Sector
Suppliers

Customers

Competitors in
the Same Sector
Suppliers

Competitors in
the Same Sector

We are actively introducing hybrid vehicles as company-owned trucks
used for deliveries and plan to introduce 40 hybrid vehicles (about 25%
of our delivery trucks) by 2025. We will also gradually switch our sales
vehicles to environmentally friendly vehicles, starting with those that need
to be replaced.

57th Ordinary General Meeting of Shareholders (Osaka venue shown) heldon March 13, 2020

IR for Institutional Investors

Study tours for shareholders

We will begin the earning results briefing (large meeting) at the mid-term
and final closing which will see the participation of around 100 institutional investors and dealers each session. Although the earning results
briefing for the fiscal year ending December 2020 was held online due tothe Covid-19 pandemic, we are actively holding individual meetings withinstitutional investors and analysts, both in Japan and overseas, via telephone and chat applications.

We hold tours of the Tokyo Head Office and distribution centers throughout
Japan for shareholders. The meeting provides an opportunity for shareholders to get to know the executives, deepen their understanding of
TRUSCO, and communicate.
(In 2020, we mainly conducted web-based seminars due to the Covid-19
pandemic.)(Unit: times)

Solar power panels on the roof of Planet
Saitama

2,793kWPower Self-sufficiency Rate

18.9%

Annual Power Generation (Total)

2,551,776kWh

Annual Power Consumption

13,454,874kWh

This is equivalent to theannual use of power at approximately 860 households.
Source: The Federation ofElectric Power Companies
website.

9.6

10.4

10.7

1.3

72

85

99

139

2014

2015

2016

2017

2018

68

Integrated Report 2021

14.1
183

2019

Environmental Assessments of TRUSCO Products

2015

18.9
255

TRUSCO Hand Soap Hand Soap Shin Senju Kannon TSK-11-A

2020

This environmentally friendly hand soap uses natural scrubbing
agents made from the shells of monkfruit instead of micro plastic
beads that cause ocean pollution.

2016

160

2017

141

2018

145

2019

Number of individual meetings

130

2020

Details about TRUSCO's
IR activities can befound by scanning the
QR code above.

Providing visitors with information about Butler®

TRUSCO Tokyo Head Office Tour

Held at the 55th Anniversary Hall on the
3rd floor of the Tokyo Head Office (forthe year ended December 31, 2019)

Individual meetings held online(Minori Hirano, Corporate Planning/
IR Section)

Started in 2015

Visits to various departments and disaster countermeasure facilities.
· ‌A total of 621 applications werereceived from which 88 people wereselected via lottery to participate(2019).

Corporate Data

10

11.3

101

152

The Nakayama
visually impaired
welfare foundation

Power Self-sufficiency Rate (%)

Electric vehicle
Porsche Taycan 4S(Company-owned vehicle usedby the Tokyo Head Office)In the planning and development of our own TRUSCO brand products, wehave set our own environmental standards for the resource conservation,
waste reduction, long-lasting use, etc., and are promoting environmentallyfriendly product development from every aspect, product design to productuse, and disposal.

Changes in Power Generation and Power Self-sufficiency Rate

Power Generation(ten thousand kWh)Electric vehicle
Electric vehicle
Nissan LEAF
Tesla Model S(Hiroto Moritani, Tokyo (Kana Niino, Internet
Branch)Sales Tokyo Branch)

Relationships with
Stakeholders

Total Power Generation
Capacity

Wall greening at theTokyo Head OfficeStarted in 2011

Visits of the inventory and logistics system that can deliver a wide variety of
products and realize instant delivery.
· ‌A total of 2,514 applications were received from which 263 people wereselected via lottery to participate(2019).

Environmental
Efforts

We are increasing opportunities for individual consultations andcommunication

TRUSCO distribution facility tour

Corporate

Introduction of Environmentally Friendly Vehicles

We think that the origin of IR is at the general meeting of shareholders. We
are the first listed company to hold the General Meeting of Shareholders
simultaneously at two main venues in Tokyo and Osaka, and are also taking unique related measures that we hold, the meeting earlier in the term
to avoid holding it during the time many other shareholder's meetings areheld. The 57th Ordinary General Meeting of Shareholders was held after
taking full measures to prevent Covid-19 infection. Top management directly communicated with shareholders through Q&A sessions (see p.63).

Corporate
Governance

We are in the process of installing our own power generation equipmenton the roofs and walls of our distribution centers, branch offices, and head
office buildings. We will continue to install solar panels to the maximum
extent possibility when new company buildings are constructed, aiming
to increase our own power generation capacity of renewable electricity to
3,500kW by 2025.

Centralized
Procurement

General Meeting of Shareholders

Human Resources/
Governance andFinancialSocial Contributions

Activities for Reducing the Environmental Burden

Suppliers

Competitors in
the Same Sector

IR Activities

Digital Service

By offering a wide variety of PRO TOOLs, our customers are able to centrally procure the tools that they need at their manufacturing sites. As aresult, the consumption of energy and resources for procurement can be
reduced compared to purchasing from multiple suppliers.

For reducing labor such as labor for procurement and use of resources
such as packaging materials

TRUSCO distribution facility tour (2019)

Sales

One-stop service reduces the environmental burden

One-stop Service

Our mission is to contribute to society through our corporate activities
and to realize the happiness of the people with whom we are connected (TRUSCO's Statement of Purpose).
We call our employees and their families, business partners, shareholders, people involved in manufacturing in Japan, and all other stakeholders related to our company “people with whom we are connected.”
We will continue to value our connections with people who are related
to us through a high level of transparency in management, thoroughinformation disclosure, and communication with the community andsociety through sponsorship and advertising.

Distribution

As a PRO TOOLs supplier, we accurately assess the environmental impact of our purchasing, inventory, sales, and transportation activities, andbased on the recognition that global environmental conservation, including
consideration for biodiversity. These are one of the most important issues
in our corporate activities. We are making company-wide efforts to continuously improve and prevent pollution.

1. We will comply with the requirements of other matters we agree
to, such as applicable laws, regulations and agreements related toour environmental aspects, and comply with the requirements ofinterested parties.
2. Identify significant environmental impact items associated withcompany-wide business activities and strive to continuously improve performance.
3. In order to raise environmental awareness, we will educate and train
all people who work at our company on environmental management.
4. We will carry out internal audits and strive to improve self-management.
5. The established environmental policy will be made known to all
people who work at or work with us, and the environmental policy
will be disclosed to the outside.

Realizing the happiness of people with whom
we are connected

Products

Based on our environmental philosophy “Gentleness, to the future...”,
we hope to contribute to reducing the environmental impact of ourbusiness activities and PB products, not only for ourselves but also
for the users of our products, and to contribute to the environmental
activities of the Japanese manufacturing industry.

Environmental Policy

Corporate
MissionEnvironmental Activities through Our Businesses

S

Relationships with Stakeholders

Value Creation

E

Environmental Efforts

Visitors had the opportunity to various
sections and departments of the company
to learn more about TRUSCO
Integrated Report 2021

69

Donations to NGO Peshawar-kai

TV Program Sponsored by TRUSCO“TRUSCO Shirarezaru Gulliver”

2020
2017-

This is a series that was uniquely defined anddeveloped on the concept of “pro tools designedwith an idea to compensate for a decline inphysical function and physical fitness.” We are
expanding our lineup every year.
IAUD International DesignAward 2019 “Bronze Award”
Winner

The program has featured 165 companies (as of February 31, 2021)

1969-

Presentation ceremony (From left to right: Professor
Omori, Hospital Director Mr. Miyamoto, and President Nakayama)

Pedal makes the truck easy to get moving from astatic position“Skill Olympics/Abilympics”
Sponsorship

Employment of People with
Disabilities

Official Sponsor of the Japanese Para-Sports Association

2010-

We support “Skill Olympics” for young technicians ages 23 and under and “Abilympics” forpeople with disabilities who bear the future on“monodzukuri.” These activities show just how
great the participants are.

2015-

We aim for the independence and self-relianceof people with disabilities through work experiences and employment at our company.
As of December 31, 2020, 66 people with disabili-

Serving an official sponsor of the Japan Para-Sports Association, we are striving for the
spread of sports for people with disabilities andto support the athletes.

Human Resources/
Governance andFinancialSocial Contributions)

Based on the theme of “GAMBARE!! JAPANESE MONODZUKURI”, which is our corporate message, we produce anddistribute posters every year on topics of manufacturing
which represent Japan. In 2021, the theme of the poster willbe the Linear Chuo Shinkansen, a new high-speed railroadthat will connect the three major metropolitan areas of Japan
using the country's unique cutting-edge superconducting
maglev technology.

The late Dr. Tetsu Nakamura with staff in Afghanistan*An NGO (non-governmental organization) formed
in 1983 to support the late Dr. Tetsu Nakamura,
who was making efforts toward the developmentof Pakistan and Afghanistan.

Digital Service

Under the editorial policy to create a communication magazine connecting the company and employees as well as theminds between employees, the newsletter has continued tospell the history of employees since 1969. The book is fullof information with about 200 employees appearing in eachvolume.
“Wakatake” Published from 1969 to 1990
“Hand Made” Published from 1990 to the present

1995-

502NFA-FB Starting
assist Bogie accelerator pedal type Foot-operated Stopper

Sales

TRUSCO CSR Poster

Distribution

Program
websiteInternal Company Newsletter “Hand Made”(

We provided infection prevention products and PB
products to Kyoto University Hospital in order tosupport medical personnel who are dealing withpatients infected with Covid-19.

2012-

Products

TV Tokyo affiliates:
TV Tokyo, TV Hokkaido, TV Aichi, TV Osaka, TV
Setouchi, and TVQ Kyushu Broadcasting. The
program is broadcast every Saturday evening from6:00 to 6:30 p.m.

TRUSCO Universal Design
Series Development

Corporate
MissionA donation was made to support the Peshawar-kai*, an NGO engaged in a comprehensive
rural reconstruction project in Afghanistan, which isexperiencing a drought, with the idea the “One irrigation channel is better than 100 medical clinics.”

The program TRUSCO Shirarezaru Gulliver is being aired by
TRUSCO to convey our desire to “bring pride and vitality to
Japan by introducing world-class Japanese companies.”
Each program introduces one Japanese company, including
manufacturing companies, and their thoughts and ideas,
designed to let people know that there are many attractive
companies in Japan.

Provided Infection Prevention
Products to Kyoto University
Hospital
2020

Value Creation

Public Relations Activities

ties were hired (employment rate of people with disabilities: 2.9% (statutory employment rate: 2.2%)).

Corporate

Current edition of “HandMade”

2021 TRUSCO CSR Poster“The Linear Chuo Shinkansen, a creation born from Japanesetechnology moving into the future at a speed of 500 km/h”

Swimming competition held by the JapanesePara-Sports Association

TRUSCO Shonan Ohashi
Bridge2010-

Sponsoring Pro Golfers

Sponsorship of Concerts

We sponsor two professional golfers, Ikue Asamaand Hiroshi Ueda. Ikue Asama is employed at
TRUSCO as a professional golfer.

We have sponsored concerts organized byNarimichi Kawabata, a visually impaired violinist active in Japan and the U.K., and concerts
organized by Tomomi Nishimoto, one of Japan's
leading conductors.

TRUSCO acquired the naming rights for Shonan
Ohashi Bridge from Kanagawa Prefecture andnamed the bridge “TRUSCO Shonan Ohashi
Bridge”. It is the first time that naming rights
have ever been granted for a bridge.

Supporting the Women's Handball Team
“Osaka Lovvits”
2016-

The Nakayama
visually impaired
welfare foundation

We are supporting the Osaka-based women's handball team
“Osaka Lovvits,” which is active in the Japanese handballleague. Since 2017, the team has been a member of theJapan Handball League, the highest level handball league inJapan. Of the 20 athletes on the team, 15 are TRUSCO fulltime employees. (as of April 2021)
Donated bus

Osaka Lovvits team members
Bridge connecting Chigasaki City and Hiratsuka
City in Kanagawa

70Integrated Report 2021

Corporate Data

Osaka Lovvits
Official Website

Work area for people with disabilities (at a distribution center)

Relationships with
Stakeholders

Communication with the Community and Society

Aichi Skill Olympics/Abilympics Opening Ceremonies (2019)

Environmental
Efforts“Hand Made” predecessor“Wakatake”

Corporate
Governance

PosterGallery

Ikue Asama, professional golfer

Hiroshi Ueda, professional golfer

Narimichi Kawabata Tomomi Nishimoto

Integrated Report 2021

71

The Nakayama visually impaired welfare foundation

Address

Nakayama Memorial Hall, 4F
3-26, 5-chome, Kamiwaka-dori, Chuo-ku, Kobe, Hyogo Prefecture 651-0067
TEL: 078-271-6370 / FAX: 078-891-4169

Support project results$7 million (cumulative total until FY2019) arrier-free movie screening project B
Nakayama UD Film Festival
Sponsored by the Nakayama visually impaired welfare foundation,
the Nakayama UD Film Festival features audio commentary andJapanese subtitles for films screened. (UD...Universal Design)

Nakayama Memorial Hall

Nakayama Memorial Hall facilities leasing business

Grant project for support groups forvisually impaired people and individuals

List of Officers and Board of Directors for the Nakayama visually impaired
welfare foundation (listed in alphabetical order)
President
Senior Director

Managing Director

Utility project 3 ‌Integrated Report 2021

Senichi Hoshino, who passed away on January 4, 2018, served as director
from June 2017 to January 2018, and contributed to the development of
the foundation.

Integrated Report 2021

Corporate Data

72

Former scholarship student
Kaori Tsutsui performing ina concertCouncilor

The Nakayama
visually impaired
welfare foundation

Address of the new hall: 1-3, 2-chome, Kamiwaka-dori, Chuo-ku, Kobe, Hyogo
Prefecture 652-0802 (3 min. walk from Shinkaichi Station)
Area of grounds: approx. 1,401 ㎡
Floor area: approx. 5,613 ㎡
Structure: 1 underground level, 5 floors above ground, equipped with isolation system

A classical concert started for the
purpose of providing many visually
impaired people with opportunities toperform.
(Kobe Light Center (KLC))

Director

Takuji Iuchi
President of AS ONE Corporation
Tatsuya Otsuka	President & Chief Executive
Officer of Earth Corporation
Kohei Goto	President & Chief Executive
Officer of SANKO Co., Ltd.
Teruo Hashimoto	Chairman of Nippon Lighthouse
Welfare Center for The Blind
Kenji Furuhashi	President and CEO of Hosiden
Corporation
Masahiko Mori	President of DMG MORI CO., Ltd.
Naoyuki Yamamoto	CEO and Chairman of Yamamoto Kogaku Co., Ltd.
Kohei Nomura
Attorney at Nomura & Partners
Yoritomo Wada 	Certified Public Accountant at
Wada & Co.

Yusuke Saraya	President and Representative
Director of Saraya Co., Ltd.
Tomihiro Takamatsu	Representative Director of
DyDo GROUP HOLDINGS INC.
Yuko Nakayama	Representative Director of NS
Holdings Co., Ltd.
Rie Nakayama	Physician, Ear, Nose, andThroat Department, Keiyu
Hospital
Motonobu Nishimura President Executive Officer &Director of Mandom Corporation
Yuki Nomura	President and Representative
Director of TSP TAIYO Inc.
Junji Hada	President of ELECOM Co., Ltd.
Naotaro Hikita	President and Representative
Director of KOHNAN SHOJI
CO., LTD
Kunio Yamada	Chairman of Rohto Pharmaceutical Co., Ltd.
Yoshiaki Yamamoto	Director of Kobe senior manpower center Western Center
Teiji Wakita	President and Representative
Director of WAKITA Corporation

Relationships with
Stakeholders

People with disabilities spend every day like people without disabilities,
and the foundation supports the participation of visually impaired people insociety.

Tetsuya Nakayama	President of TRUSCO NAKAYAMA Corporation
Saori Nakayama	NR Holdings Co., Ltd. Representative Director Certified Public
Accountant
Atsushi Matsumae	Director/Executive Director

Environmental
Efforts

Support activities for social participation
activities for visually impaired people

 yogo Prefecture VisuallyH
Impaired People Music Festival Project“Nakayama/KLC Concert”

A prospective TRUSCO employee
attends to visitors

Corporate
Governance

The foundation provides grants to groups for visually impaired people andsupport groups in financial difficulty, and provides scholarships free ofcharge to university students and others.

Nakayama Wonderful Festa #20(Masashi Sada, performer)

Corporate

Utility project 2 ‌Rendering of of new Nakayama Memorial Hall in its completed form (scheduled for completion in September 2021)

Note: The concert was not held in 2020
due to the Covid-19 pandemic.

Training sessions are held six times a year with the aim ofincreasing the number and improving the quality of companionship support employees (guide helpers).

Utility project 1

In the Nakayama Memorial Hall opened in 2007, 6 nonprofit organizations
work together in conjunction with each other. The Nakayama Memorial
Hall is used for consultations, walking training, creating Braille translations,
events, activities held outside the normal workplace, etc. with 3,145 consultations conducted per year. In order to aim for an even more fulfilling
facility, work has started on the construction of a new hall.

#21 2018 Aki Yashiro#22 ‌2019‌ Tomomi Nishimoto & IlluminArt
Phil, Yoshiko Sakuma

Human Resources/
Governance andFinancialSocial Contributions

Tetsuya Nakayama

Courses are divided into beginner, Internet, office, iPad experience, and voice PC experience courses to teach basic
computer usage and Internet operation.

#16 2013 Mariko Takahashi#17 2014 Sayuri Ishikawa#18 2015 Yoshimi Tendo#19 2016 Masahiko Takeuchi, Kaientai#20 2017 Masashi Sada

Digital Service

Chief Director

Personal computer course project

Past performers

Sales

October 1, 1997
Transition to a public interest incorporated foundation was madeon November 1, 2010.

Guide dog lending ceremony held during the 22nd
Nakayama Wonderful Festa

 ccompanying aid workers (guideAhelpers) education training project

Overview
EstablishedThis is a concert that visually impaired people can attend with wheelchairs andguide dogs which allows them to enjoy the concert free from worry. Some of ouremployees have participated in this event. Through the actual event, we have an
opportunity to learn that our company not only pursues the profit of the company but
also a part of the profit is useful for social contribution.

Distribution“Shu,” a guide dog which is available
to the visually impaired (2019)

The foundation was established by the Nakayama Family with four million shares of Trusco Nakayama Corporation stock and $4 million in cash. The foundation operates its business with the dividends from the shares.

We commission the training of
two guide dogs per year andlend them to the visually impaired as “Nakayama Go” guide
dogs. To date, we have loaned atotal of 41 dogs.

Products

Managing the foundation using stock dividends

 usic performance project “Nakayama Wonderful
M
Festa”

Corporate
MissionThe Nakayama visually impaired welfare foundation was established in 1997 in response to
the will of “wanting to serve visually impaired people” by Kiyoko Nakayama, the mother of
Tetsuya Nakayama (President of the foundation), who was born with optic nerves damaged bya forceps delivery. It later became a public interest incorporated foundation in 2010. The basic
property shall be shares of Trusco Nakayama Corporation, and the foundation does not receive
donations or support from outside and does its own management. We continue “Giving Back toSociety” through the Nakayama visually impaired welfare foundation.

 uide dog lendingG
project

Value Creation“Giving Back to Society” through the Nakayama visually impaired welfare foundation

S73

50 Shunan Branch

Osaka Head OfficeOsaka Branch
HC Osaka BranchInternet Sales Osaka Branch

51 Ube Branch

5-395-5 Oaza Nakano Gaisaku, Ube-shi, Yamaguchi

TRUSCO Glen Check Bldg., 1-34-15, Shinmachi,
Nishi-ku, Osaka-shi, Osaka

52 Takamatsu Branch

4001-77 Yoshida, Utazu-cho, Ayauta-gun, Kagawa★

41

Planet Osaka/South Osaka
Branch81-1 Ishizu Kitamachi, Sakai-ku, Sakai-shi, Osaka

53 Takamatsu Stock Center

2-3-1 Asahimachi, Takamatsu-shi, Kagawa★

42 Planet Kobe/Kobe Branch★

1-3-5 Nakamachi, Minatojima, Chuo-ku, Kobe-shi, Hyogo ★

23 Nakahara, Ojin-cho Nakahara, Tokushima-shi, Tokushima

55 Matsuyama Branch1068-4 Kumanodai, Matsuyama-shi, Ehime★

43 Akashi Branch#601 Akashi Ote Bldg. 1-2-29 Honmachi, Akashi-shi,Hyogo

56 Kokura Branch

7-1 Kifunemachi, Kokurakita-ku, Kitakyushu-shi, Fukuoka ★

44 Himeji Branch448-26 Hojo, Himeji-shi, Hyogo★

58 Plant Kyushu Tosu Branch★

1651 Himekata-machi, Tosu-shi, Saga

HC Kyushu Distribution Center
1956-1 Kitanomachinaka, Kurume-shi, Fukuoka
59
Kurume Stock Center

36 Kyoto Branch

3F Trusco Crystal Bldg. 593 Higashi-Shio★
koji-cho, Shimogyo-ku, Kyoto-shi, Kyoto
755-6 Kamifukawa-cho, Nara-shi,Nara★

38 Nara Stock Center

758-6 Kamifukawa-cho, Nara-shi,
Nara★

East Osaka Stock Center/
39
Higashi Osaka Branch

4-12 Shinjo-nishi, Higashi-Osaka-shi,
★
Osaka

37

★

HC West Japan Distribution
Center★

1

West Japan★
★

46 Okayama Stock Center

2-16-35 Fukunari, Minami-ku, Okayama-shi, Okayama★

5F Kumamoto Central Bldg. 66-7 Yamasaki-machi,
Chuo-ku, Kumamoto-shi, Kumamoto

47 Yonago Branch

8-15-14 Yonehara, Yonago-shi, Tottori★

62 Oita Branch

1-3-28 Mukaibara-Higashi, Oita-shi, Oita★

48 Fukuyama Branch

2-4-13 Akebono-cho, Fukuyama-shi, Hiroshima

63 Kagoshima Branch

3-68 Tokai-cho, Kagoshima-shi, Kagoshima★

★

49 Hiroshima Branch

1-20-1 Naka-Hiromachi, Nishi-ku, Hiroshima-shi,
Hiroshima

64 Okinawa Branch

5F Okinawaken Kensetsu Kaikan 5-6-8 Makiminato,
Urasoe-shi, Okinawa

★

56

51

Planet Aichi (tentative name)planned for construction
Location: Nagoya, Aichi Prefecture
Area of grounds: approx. 41,636 ㎡

48
55

10

26
5
Head Offices

12

46 45

44
43

52 53

11
42

54

40 36
41 39 37

35

8

63

29

25

24

20 18
23 22
21
19

64

6
13

Logistic Centers in Japan(Branches with inventory: 30)(includes 10 Stock Centers) Overseas Subsidiaries: Thailand and Indonesia
Representative Office Germany (Düsseldorf)

2

7

61

Number of items in inventory

440,000

Overseas

Japan Sales Branches

27

Total number of items in inventory

(

3

)

Inventory Value

Corporate

30
33

14

15
16
17

32
34 31

38

93

3

Human Resources/
Governance andFinancialSocial Contributions

62

27

9

2828

49

50

59

61

4

Digital Service

58

2

Bases

47
57

New HC East Japan Distribution
Center planned for construction
Location: Sanjo, Niigata Prefecture
Area of grounds: approx. 26,400 ㎡

Sales

61 Kumamoto Branch

Plant Sanyou
Okayama Branch

4-15 Amase, Kita-ku, Okayama-shi, Okayama

45

23-4 Ohashi-machi, Nagasaki-shi, Nagasaki

60

1140-3 Oguchi, Ryuo-cho,Gamou-gun, Shiga

Distribution

60 Nagasaki Branch

35 Planet Shiga Ryuo Branch

Products

54 Tokushima Branch

Hakata Stock Center Fukuoka
2-4-14 Takeshita, Hakata-ku, Fukuoka-shi, Fukuoka
57
BranchKinki★

Corporate
Mission402929-14 Oaza Kume, Shunan-shi, Yamaguchi

Value Creation

Map of Bases As of January 1, 2021

45,170,000 items $387 million

2(Thailand / Indonesia)

1-1-34 Tanaka-machi, Toyama-shi, Toyama★

27 Kanazawa Branch

6-15-1 Eki Nishi-Honmachi, Kanazawa-shi, Ishikawa★

28 Fukui Branch

1-52 Toiya-cho, Fukui-shi, Fukui★

29 Hamamatsu Branch209-1 Sode-cho, Naka-ku, Hamamatsu-shi, Shizuoka

30 Planet Tokai Okazaki Branch★

1

Planet Hokkaido Sapporo Branch

3-4-51 Higashi-Naebo 5-jo, Higashi-ku,
Sapporo-shi, Hokkaido★

14 Utsunomiya Stock Center2

Hachinohe Branch

1-2-9 Numadate, Hachinohe-shi, Aomori★

15 Oyama Stock Center

1-6-33 Awanomiya, Oyama-shi, Tochigi★

3

Planet Tohoku Sendai Branch

2-1-23 Ogimachi, Miyagino-ku, Sendai-shi,
Miyagi★

988-7 Akagi, Shinmeiuchi, Satte-shi, Saitama★

4

Akita Branch

2-41 Sanno-Rinkaimachi, Akita-shi, Akita★

2039 Nishi-Asuma, Nishi-ku, Saitama-shi, Saitama ★

5

Koriyama Branch

1-23-7 Motomachi, Koriyama-shi, Fukushima ★

★

6

Mito Branch

1567 Sugaya, Naka-shi Ibaraki

7

Utsunomiya Branch

46-11 Hiraide Kogyo Danchi, Utsunomiya-shi,★
Tochigi

8

Planet North Kanto Isesaki
Branch

2739-1 Sanwa-cho, Isesaki-shi, Gunma★

9

HC East Japan Distribution
Center Niigata Branch

280 Oaza Shinbo, Sanjo-shi, Niigata★

Planet Saitama
Satte Branch★

32 Planet Nagoya Komaki Branch 10-1 Kawahigashi, Wada-cho, Konan-shi, Aichi★

17 Omiya Branch

33 Toyohashi Stock Center

33-16 Akemicho, Toyohashi-shi, Aichi★

34 Yokkaichi Branch

5-4-13 Shinsho, Yokkaichi-shi, Mie★

12-26 Ukishima-cho, Mizuho-ku, Nagoya-shi, Aichi

Representative
Office18

Planet East Kanto/Matsudo
Branch1969-17 Yawatakaigan-dori, Ichihara-shi, Chiba

Tokyo Head Office
Tokyo Branch
20 HC Tokyo BranchInternet Sales Tokyo Branch
MRO Supply Tokyo Branch

TRUSCO Fiorito Bldg. 4-28-1, Shimbashi,
Minato-ku, Tokyo★

21 Jonan Branch

2-14-23 Kugahara, Ota-ku, Tokyo

★
★

1567-1 Takamori, Isehara-shi, Kanagawa★

24 Fuji Branch251-1 Jubee, Fuji-shi, Shizuoka★

25 Shizuoka Branch

1-20 Midorigaoka-cho, Suruga-ku, Shizuoka-shi,
Shizuoka★

74

Integrated Report 2021

◀ OPEN

Planet South Kanto/Atsugi
BranchOPEN ▶

★

10 Niigatakita Branch

2-6-50 Yutaka, Higashi-ku, Niigata-shi, Niigata ★

11 Okaya Branch

2-1-33 Shinmei-cho, Okaya-shi, Nagano

12 Ueda Branch

2F Unno-Machi-Kan Ito Bldg. 2-8-11 Chuo,
Ueda-shi, Nagano★

Corporate Data

3-10-6 Tamachi, Kawasaki-ku, Kawasaki- shi,Kanagawa

23

Germany Düsseldorf
Representative Office★

19 Chiba Branch

22 Planet Tokyo Kawasaki Branch

Jakarta

241-1 Kamihongo, Matsudo-shi, Chiba

The Nakayama
visually impaired
welfare foundation

Lippo Cikarang District,

INDONESIA Bekashi, West Java

3-3-24 Horiwari, Kamisu-shi, Ibaraki

2-40-3 Shirasagi, Kaminokawamachi, Kawachi-gun,★
Tochigi

Relationships with
Stakeholders

Bangkok★

East Japan

13 Kashima Branch

16

31 Nagoya Branch

THAILAND Bangplee,
Samutprakarn

18 Minami-Kubo, Oka-cho, Okazaki-shi, Aichi

Metropolitan

Environmental
Efforts

Overseas

Overseas Subsidiaries Bases

26 Toyama Branch

Corporate
GovernanceCentral Japan★ indicates a company-owned property.

Integrated Report 2021

79❶Area of Grounds ❷Floor Area ❸Start of Operations (Current Building) ❹Number of Employees
Logistic Centers❺Quantity of Stock ❻Total Number of Items in Inventory ❼Inventory Value (As of December 31, 2020)

Head Office●●● ···Distribution system at facility (For details about each system, see pages 34 and 35.)

Planet Osaka

Employee Dormitory

Tokyo Head Office (TRUSCO Fiorito Bldg.)

Planet Kobe

Osaka Head Office (TRUSCO Glen Check Bldg.)

Minato-ku, Tokyo

Higashi-Osaka City, Osaka

Jonan Branch

Fukui Branch

Fuji Branch

Value Creation

Planet Hokkaido

Planet Saitama

Main corporate-owned properties are listed.

❶Site Area ❷Floor Area ❸Start of Operations (Current Building) ❹Number of Employees❺Number of Products ❻Total Number of Items in Inventory ❼Inventory Value

Corporate
MissionSAS

Sapporo City, Hokkaido❶approx. 23,375 ㎡ ❷approx. 5,507 ㎡ ❸2004 ❹32❺70,000 items ❻946,000 ❼$7.0 million
AutoStore

Electric moving pallet racks

SAS

AGV

Automated pallet warehouse

GAS

I-PackJust fit BOX

ButlerSatte City, Saitama

I-PackAutomated bucket warehouse

Just fit BOX

Sakai City, Osaka❶approx. 13,669 ㎡ ❷approx. 20,479 ㎡ ❸2015 ❹177 ❺352,000 items ❻3,997,000 ❼$42.0 million

SAS

GAS

Electric moving pallet racks

Just fit BOX

Chuo-ku, Kobe City, Hyogo❶approx. 8,287 ㎡ ❷approx. 16,687 ㎡ ❸2005 ❹103 ❺179,000 items ❻2,223,000 ❼$18.0 million

Planet Kyushu

HC West Japan Distribution Center❶approx. 1,338 ㎡ ❷approx. 2,667 ㎡ ❸2004 ❹18❶approx. 2,119 ㎡ ❷approx. 1,996 ㎡ ❸2007 ❹11❺13,000 items ❻162,000 ❼$1.0 million❶approx. 3,249 ㎡ ❷approx. 1,828 ㎡ ❸2017 ❹13❺15,000 items ❻157,000 ❼$0.9 million

Planet Tohoku

TRUSCO’S Shinbashi

TRUSCO’S Osaka❶approx. 165 ㎡❷approx. 1,401 ㎡ (30 rooms)❸2014 ❹28

❶approx. 376 ㎡❷approx. 1,973 ㎡ (36 rooms)❸2002 ❹29

Shizuoka Branch

Himeji Branch

Fukuyama Branch

TRUSCO'S Kugahara

Distribution

Automated bucket warehouse

GAS

Fuji City, Shizuoka
Products

Automated bucket warehouse

Fukui City

Ota-ku, Tokyo

Ota-ku, Tokyo❶approx. 47,262 ㎡ ❷approx. 42,694 ㎡ ❸2018 ❹117 ❺405,000 items ❻4,853,000 ❼$49.1 million

Planet North Kanto
Fukuyama City, Hiroshima❶approx. 2,604 ㎡ ❷approx. 2,386 ㎡ ❸2009 ❹11❺10,000 items ❻153,000 ❼$0.8 million

Hiroshima Branch

Matsuyama Branch

Kokura Branch

Digital Service

Tosu City, Saga
❶approx. 11,328 ㎡ ❷approx. 22,690 ㎡ ❸2015 ❹71 ❺195,000 items ❻2,729,000 ❼$24.1 million

Himeji City, Hyogo❶approx. 2,638 ㎡ ❷approx. 2,406 ㎡ ❸2011 ❹15❺19,000 items ❻257,000 ❼$1.6 million

Sales

Nara City❶approx. 9,900 ㎡ ❷approx. 10,016 ㎡ ❸1992 ❹63 ❺23,000 items ❻1,638,000 ❼$12.2 million

Suruga-ku, Shizuoka City
❶approx. 2,085 ㎡ ❷approx. 1,795 ㎡ ❸2012 ❹15❺15,000 items ❻134,000 ❼$0.9 million

Automated bucket warehouse
AutoStore
I-PackAutoStore

Just fit BOX

Isesaki City, Gunma❶approx. 33,057 ㎡ ❷approx. 25,438 ㎡ ❸2007 ❹94 ❺163,000 items ❻2,318,000 ❼$19.2 million

Planet East Kanto

GAS

Planet Tokyo

ButlerHC East Japan Distribution Center

Planet Sanyo

East Osaka Stock Center

Miyagino Ward, Sendai City

❶approx. 15,041 ㎡ ❷approx. 28,400 ㎡ ❸2010 ❹71❺135,000 items ❻1,810,000 ❼$15.4 million

Minato-ku, Tokyo❶approx. 714 ㎡ ❷approx. 5,818 ㎡ ❸2014 ❹223

Nishi-ku, Osaka City
❶approx. 1,520 ㎡ ❷approx. 8,426 ㎡ ❸2004 ❹159

(3F/4F Jonan Branch Office Building)❶approx. 1,338 ㎡ ❷approx. 2,667 ㎡ (24 rooms) ❸2004 ❹20

BranchSanjo City, Niigata

Planet South Kanto

Akita Branch

Hachinohe Branch

Koriyama Branch❶approx. 8,618 ㎡ ❷approx. 9,771 ㎡ ❸1994 ❹88❺24,000 items ❻1,274,000 ❼$6.9 million

Electric moving pallet racks

Automated pallet warehouse
SAS

GAS

Just fit BOX

Matsudo City, Chiba❶approx. 14,680 ㎡ ❷approx. 23,735 ㎡ ❸2006 ❹171 ❺317,000 items ❻3,774,000 ❼$36.8 million

DAS

Shuttle Rack

Electric moving pallet racks

Isehara City, Kanagawa❶approx. 12,105 ㎡ ❷approx. 26,062 ㎡ ❸2020 ❹104 ❺112,000 items❻1,597,000 ❼$11.5 million

Electric moving
pallet racks

Kita-ku,Okayama City

Higashi-Osaka City, Osaka❶approx. 2,509 ㎡ ❷approx. 5,004 ㎡ ❸2009 ❹30❺49,000 items ❻711,000 ❼$5.3 million❶approx. 5,626 ㎡ ❷approx. 8,122 ㎡ ❸1998 ❹40❺67,000 items ❻824,000 ❼$6.2 million❶approx. 3,031 ㎡ ❷approx. 10,694 ㎡ ❸2013 ❹46❺103,000 items ❻1,296,000 ❼$9.1 million❶approx. 3,024 ㎡ ❷approx. 8,558 ㎡ ❸2008/2016/2017❺10,000 items ❻691,000 ❼$6.2 million

Oyama Stock Center

Utsunomiya Stock Center

Nara Stock Center

Hakata Stock Center

Hachinohe City, Aomori

Akita City

❶approx. 1,983 ㎡ ❷approx. 1,001 ㎡ ❸2000 ❹16❺11,000 items ❻108,000 ❼$0.8 million❶approx. 6,614 ㎡ ❷approx. 2,191 ㎡ ❸2007 ❹10❺8,000 items ❻96,000 ❼$0.9 million

Kashima Branch

Utsunomiya Branch

Oita Branch

Nagoya Branch

Yokkaichi Branch

Chiba Branch

Oita City❶approx. 1,824 ㎡ ❷approx. 3,123 ㎡ ❸1998 ❹37❶approx. 1,292 ㎡ ❷approx. 2,323 ㎡ ❸1990 ❹16❺14,000 items ❻156,000 ❼$0.9 million

Kyoto Branch

Takamatsu Branch

Kagoshima Branch

Integrated Report 2021

Nara City❶approx. 4,690 ㎡ ❷approx. 3,166 ㎡ ❸2019❺266 items ❻23,000 ❼$1.1 million❶approx. 1,877 ㎡ ❷approx. 872 ㎡ ❸2019❺167 items ❻21,000 ❼$0.2 million❶approx. 9,798 ㎡ ❷approx. 2,866 ㎡ ❸2017❺80 items ❻15,000 ❼$0.6 million

Toyohashi Stock Center

Takamatsu Stock Center

Okayama Stock Center❶approx. 3,867 ㎡ ❷approx. 7,609 ㎡❸2016/2002 ❺866 items❻369,000 ❼$1.8 million

HC Kyushu Distribution Center/
Kurume Stock Center

Automated bucket warehouse

Electric moving pallet racks

Ryuo, Shiga❶approx. 11,576 ㎡ ❷approx. 19,593 ㎡ ❸2008 ❹87 ❺222,000 items ❻2,623,000 ❼$21.6 million

Toyohashi City, Aichi

Takamatsu City, Kagawa

Minami-ku, Okayama City

❶approx. 9,900 ㎡ ❷approx. 6,856 ㎡ ❸2019❺1,000 items ❻712,000 ❼$4.0million❶approx. 8,413 ㎡ ❷approx. 5,864 ㎡ ❸2019❺782 items ❻839,000 ❼$6.4 million❶approx. 1,685 ㎡ ❷approx. 2,274 ㎡ ❸2017❺494 items ❻50,000 ❼$1.1 million❶approx. 5,560 ㎡ ❷approx. 5,933 ㎡❸2016/2002 ❹50 ❺16,000 items❻1,099,000 ❼$5.2 million

Utazu Town, Kagawa

Kagoshima City

❶approx. 360 ㎡ ❷approx. 2,707 ㎡ ❸2009 ❹15❶approx. 2,631 ㎡ ❷approx. 2,885 ㎡ ❸1992 ❹17❺12,000 items ❻144,000 ❼$1.0 million❶approx. 991 ㎡ ❷approx. 1,120 ㎡ ❸1989 ❹11❺7,000 items ❻59,000 ❼$0.4 million

TRUSCO Resort and Spa Hakone(Recreation/Training Facility)

Kyoto Kaguraoka Rengetsuso(recreation facility)

TRUSCO Resort and Spa Karuizawa(Recreation/Training Facility)

Hakone Town, Ashigarashimogun, Kanagawa

Sakyo Ward, Kyoto

Shimogyo-ku, Kyoto City

Kamisu City, Ibaraki

Utsunomiya City, Tochigi

Ichihara City, Chiba❶approx. 2,000 ㎡ ❷approx. 2,290 ㎡ ❸2016 ❹10❺20,000 items ❻137,000 ❼$1.3 million❶approx. 3,312 ㎡ ❷approx. 1,474 ㎡ ❸2009 ❹12❺12,000 items ❻191,000 ❼$0.7 million❶approx. 2,254 ㎡ ❷approx. 2,717 ㎡ ❸2011 ❹22❺24,000 items ❻302,000 ❼$2.2 million

Niigatakita Branch

Toyama Branch

Kanazawa Branch

Higashi-ku, Niigata City
❶approx. 1,890 ㎡ ❷approx. 1,057 ㎡ ❸2009 ❹11❺13,000 items ❻124,000 ❼$0.7 million

Toyama City
❶approx. 1,633 ㎡ ❷approx. 2,000 ㎡ ❸1991 ❹14❺13,000 items ❻145,000 ❼$0.9 million

Corporate Data

Okazaki City, Aichi

Kaminokawamachi, Kawachi-gun, Tochigi

Yokkaichi City, Mie
Mizuho Ward, Nagoya City, Aichi❶approx. 2,545 ㎡ ❷approx. 2,433 ㎡ ❸2017 ❹13❺12,000 items ❻160,000 ❼$1.1 million

The Nakayama
visually impaired
welfare foundation

Just fit BOX

Oyama City, Tochigi

Kurume City, Fukuoka

Electric moving pallet racks❶approx. 13,666 ㎡ ❷approx. 24,003 ㎡ ❸2008 ❹158 ❺363,000 items ❻4,086,000 ❼$45.6 million
75❶approx. 2,201 ㎡ ❷approx. 2,036 ㎡ ❸2004 ❹18❺13,000 items ❻177,000 ❼$1.0 million

Relationships with
Stakeholders

Automated bucket warehouse
I-Pack❶approx. 1,692 ㎡ ❷approx. 998 ㎡ ❸2000 ❹12❺12,000 items ❻112,000 ❼$0.8 million

Koriyama City, Fukushima❶approx. 3,626 ㎡ ❷approx. 2,730 ㎡ ❸2016 ❹20❺15,000 items ❻192,000 ❼$1.2 million

Hakata-ku, Fukuoka City

GAS

❶approx. 2,578 ㎡ ❷approx. 4,373 ㎡ ❸2012 ❹16❺19,000 items ❻242,000 ❼$1.4 million

Planet Shiga

Planet TokaiSAS

Kokurakita-ku, Kitakyushu City, Fukuoka

Environmental
Efforts

Automated bucket warehouse

AutoStore

Konan City, Aichi

Matsuyama City, Ehime

Corporate
Governance

Kawasaki City, Kanagawa

Nishi Ward, Hiroshima City

Corporate

Planet Nagoya

Automated bucket warehouse

Human Resources/
Governance andFinancialSocial Contributions

Automated pallet warehouse

SAS

Just fit BOX

Kanazawa City, Ishikawa❶approx. 2,429 ㎡ ❷approx. 2,469 ㎡ ❸2004 ❹18❺24,000 items ❻313,000 ❼$1.8 million❶approx. 9,084 ㎡ ❷approx. 2,307 ㎡ ❸2011 ❹4❶approx. 1,758 ㎡ ❷approx. 1,603 ㎡ ❸2018 ❹4

Town of Karuizawa, Kitasaku-gun, Nagano❶approx. 10,621 ㎡ ❷approx. 1,983 ㎡ ❸2021 ❹1
Integrated Report 2021

78

A Glance at TRUSCO Through Numbers

Sales Consolidated
Gross profit margin Consolidated( -3.3% )%( +0.2pt )million( +5.0% )million( +34.6% )$61

Depreciation Consolidated

per share

Market capitalization

million%companies

Customer Support Tool

Distribution%

Tokyo Head Office (TRUSCO Fiorito Bldg.)

Retirement age

Managerial Retirement Age 62
Employment Extension
70

Full-time Staff Retirement Age 65

including branch managers, center
Managers Managers
managers, and Head Office section managers(regular positions)$57.8 Careers
Area (regional positions)($61.3)(Unit: thousand USD)

Number of Employees with Disabilities andEmployment Rate of Persons with Disabilities

People%(included managerial candidates)

Non-smoking rate for the entire company

100%

Brancheswith inventory

MRO Stocker

80

Integrated Report 2021%)
390 companies ( +39)
1,414 factories ( +179
System order intake ratio
83.9 ( +0.8% )Automated estimate ratio
8.1 ( – )Number of order receipts
per year
120,000 daily 29.56 million
Number of estimates provided to customers
30,000 daily 8.34 million
per year
Digital Expenditures (most recent three periods)$74 million

Yamato Tanaka, Omiya Branch

ES G

TRUSCO NAKAYAMA CORPORATION (THAILAND) LIMITED
PT. TRUSCO NAKAYAMA INDONESIA

Number of shareholders(As of the end of the 58th term)companies

companies

16,336(Started in January 2020)

Number of attendees of the 57th Ordinary
General Meeting of Shareholders
Attendance rate for the 57th Ordinary
General Meeting of Shareholders

TRUSCO Data Center “Solemale”

1,652
4.1%

19 Power generation for 2020 2,551,776kWh
Renewable energy power self-sufficiency rate
18.9%
Corporate tax$40 million

Trusco Power Generation Installations

Companies(Started in January 2020)%%(As of January 1, 2021)

5,515 ( -77 )Number of sales accounts 27,550 ( +669 )Number introduced 47 companies ( – )vehiclesCorporate Data

Number of customers

61
30 Overseas 2

vehiclesPlanet Saitama Distribution Center

The Nakayama
visually impaired
welfare foundationJapan

vehiclesNumber ofcompanies connected
Orange Commerce
Number of(electronic purchasing system) factories connected

Sales
Number ofsales branches

vehiclesDigital Service

%

84%

%

AutoStore (high-precision robot-based storage system)

Sales$105.4 ($113.1)$135.1 ($146.9)$67.3 ($71.7)$56.1 ($59.6)$43.0 ($44.9)

Non-smoking rate for managers%

HC Tokyo Branch supervisors Hiromi Tsukuda and
Mai Yanagisawa- The average salary including financial bonds is shown in the parentheses.

66
2.9

Ratio of products delivered from our company
stock among our total number of orders.

Relationships with
Stakeholders(Statutory employment rate based hires: 51,
employment rate of people with disabilities: 2.2%)

Logistics (distribution positions)351,798 ㎡
56,485 ㎡

Environmental
Efforts

Average salary

Department general managers, division general managers,and deputy general managers (does not include officers)

approx.

Inventory ofmonths(normally 3 months)

75

Part-time Staff

approx.

Corporate
Governance

38.4

Logistic centers
Branches withinventory

Corporate

Note: Personnel with supervisory qualifications or higher

Average age

17
9Human Resources/
Governance andFinancialSocial Contributions

12
1,674
2,786
1,100
Number of full-time staff 589 Number of officers*
147
Ratio
35.2% Number of supervisors 7
Male 41.9
Female 32.1

408,284 ㎡

Stock centers

Logistic centers

91.0 ( +0.5 ))( -3
Number of total delivery runs
270
Number of TRUSCO
TRUSCO delivery routes
( +12
)
110
delivery routes
Percentage of TRUSCO delivery runs
( +4.8 )40.7
Number of direct deliveries to users per year
2,658,514 ( +274,376 )6Inventory of materials to support recovery during a disaster

Officers
Full-time staff
Part-time staff

Female staff ratio

Floor areas of distribution
approx.
centers in Japan
Inventory hit rate

Human Resources
Employees

26

Number of distribution bases

Digital Service

Shareholders’ equity ratio

Private Brand Products%

million(As of December 31, 2020)

442,436 ( +50,237 )Inventory items
45,174,506 ( -4,242,841 )Inventory value$388 million ( -$19 )TRUSCO Orange Book.Com
2,337,220 ( +316,179 )Number of items listed
Number of items
67,700 ( +82,000 )Private Brand (PB)
Sales
$386 million ( -5.9 )Number of listed
1,851 ( +75)
manufacturers
TRUSCO Orange Book
Number of items
471,000 ( +31,000 )Number of items
in inventory
Total number of
items in inventory

Sales

Annual dividend%

Japan 2,440 companies

Overseas 212 companies

companies

Distribution

Consolidated

attributable to shareholdersof the parent company

million( +115 )million$108 ( -18.6 )$74 ( -16.7 )$0.28 ( -$0.05 )$1,787R&I RatingA
63.7

Ordinary income Consolidated
Net income

millioncompanies

Products

Selling, general andConsolidated
administrative expenses$1,994
21.5
$326

2,652

Total number of suppliers

Corporate
Mission58 Term 2020 December Performance Highlights(As of December 31, 2020)
The year-on-year comparison is shown in the parentheses.

Value Creation

Products

Through our business highlights for the 58th term, we express our company's performance through various figures,
including key indicators. (For details on company performance, please see p.82.)(Solar and wind power generation)

MRO Stocker, which is like “Okigusuri,” abusiness model that has been around for many
years in Japan, but for tools.

Solar power generation equipment at Planet South Kanto
Power Generation Capacity: 300kW
Number of Solar Panels: 1,190

Integrated Report 2021

81

Results Data (Operating Results Indicators) (As of December 31, 2020)

Results Data (Sales Information) (As of December 31, 2020)

Net Sales/Gross Profit Margin
Sales

Gross Profit Margin

Ordinary Income

1,822

22,375

134 135 136 131
128
107
7.5 6.8
7.4
6.9
6.4
6.3
6.1
78 7.9 8.2
93
77
5.4
123

21,24327,14025,466

23,683

2,053 2,009 2,047 2,127(planned)

Consolidated
Accounting Started

Net Income/Profit Margin

Net Income

Profit Margin

2013 2014/3 2014/12 2015 2016 2017 2018 2019 2020 2021 (year)
9-monthfinancial results

Net Worth

76

94

90

89

88

5,367 5,415 5,447 5,415 5,348 5,333 5,323 5,592

74

55

Nonconsolidated(planned)$385 million 19.4%

PB Sales Constitution Ratio (%)

Capital Expenditures

Dividends

0.36 0.34 0.34

0.34

(0.34)

9-monthfinancial results(planned)

Consolidated
Accounting Started*Dividends prior FY2016 were calculated based on number of shares after the stock
split where one share was split into two shares on January 1, 2017.
Figures in parenthesis denote the actual dividend amount paid.

Total Fixed Assets

Total Fixed Assets$992 million(Unit: million USD)

1,057

2021 (year)

Consolidated
Accounting Started

2016*Inventory Hit Rate: Ratio of products
delivered from our company stock
divided by our total number of orders.

2013 2014/3 2014/12 2015 2016 2017 2018 2019 2020 2021 (year)

2013

980

992

2,001

1,822

1,577 76 1,732

89 1,906

2017

2018

(planned)

1,983

1,994
78

2019

77

1,916

(year)

2020

Approximately 4% of net sales are made up of net sales of products newly handled that year.
Number of Items in Inventory

System Order Intake Ratio (%)

89.5

88.8

86.8
84.0
83.1
77.9
21.2
19.2
71.9
72.7 23.1

88.2
79.9
26.4

82.0
29.8

82.0
33.6

2013

2015

2016

2017

2014/3Inventory Hit Rate System Order Intake Ratio

442,000 items 91.0%

Inventory Hit Rate (%)
Number of Items in Inventory(Unit: ten thousand)2014/12

39.2
90.5
83.1

83.9

91.5
86.0

2019

2020

2021

89.9
81.7
2018

83.9%

44.2
91.0

37.4

9-month financial results

189 (0.39)

95

2,061

Consolidated Accounting Started

Number of Inventory Items/Inventory Hit Rate/
Change in System Order Intake Ratio

We are expanding our inventory
items with focus on long tailproducts and strengthening prompt
delivery systems to customers.

$77 million

Existing Goods Net Sales, etc. (Million USD)

1,654

2013 2014/3 2014/12 2015 2016 2017 2018 2019 2020
9-monthfinancial results

Newly Listed Product Sales
Net Sales of New TRUSCO Orange
Book Products (Million USD)

47.8

(year)

Consolidated Accounting Started

189 (0.16) 203 (0.25) 233 (0.46) 271 (0.29) 297 (0.38) 345 (0.36) 407 (0.39) 388 (0.46)

428

Total Sales Indicators of Competitors in the Same Sector and Trusco Nakayama Net Sales Indicators

145.1
113.0

159.4

164.1

120.0

113.2

2017

2018

*2008 is set as 100 for the base when the Lehman Shock hit (figures are calculated based on results and forecasts as of April 30, 2019)
Calculated by combining the sales of six companies in the same industry (wholesale industry). (from Annual Securities Report)

116.3

123.9

131.7

98.4

108.5

88.3

95.8

101.1

104.3

104.8

2013

2014/3

2014/12

2015

2016

TRUSCO NAKAYAMA Net Sales Indicators (%)
Total Sales Indicators ofCompetitors in the Same Sector (%)

100.0

88.9
88.4

2008

2009

73.8
63.6

2010

96.6

85.9
79.1 88.6
2011

2012

Total Fixed Assets

Tangible Fixed Assets

2021 (year)(planned)

Consolidated
Accounting Started

Change in Company Net Sales of New TRUSCO Orange Book Products

1,550

1,235

430

Inventory Value (Disposal Value) [Million USD]

2013 2014/3 2014/12 2015 2016 2017 2018 2019 2020 2021 (year)447

9-month financial results

2019
Consolidated Accounting Started

Item and sales destination business expansion with small decline in sales distributes risk even in a bad economic environment and results in reliably increasing market share.

853
Company Net Sales Indicators and Industrial Production Index

724

448
2014

511
469
2014
9-monthfinancial results

534
487
2015

536

2016

633

2017

735

2018

870

2019
Consolidated
Accounting Started

897

2020 (year)

Due to inventory expansion, our factory route andeBusiness route sales have grown and shown
more favorable trends than even the Industrial
Production Index, which indicates the state ofindustry and manufacturing activities.

100.0
2015

TRUSCO NAKAYAMA Net Sales Indicators

106.3

117.1

128.7

132.5

128.1

Industrial Production Index

101.1

100.0

103.1

104.2

2016

2017

2018

90.9

2019

Corporate Data

411

484

592

*Index standard: 100 in 2015
*The Industrial Production Index are figures that werereleased by the Ministry of Economy, Trade andIndustry on January 20, 2020.

The Nakayama
visually impaired
welfare foundation(planned)

Dividend Payout Ratio

992

1,414 factories

776 No. of Companies
605 656
Connected (Companies)
540
430
312 351302
272
180 196 215 230

2020 (year)(0.58)
0.28
25.3 25.2 25.3
25.3 25.1 25.0
25.0 25.2
25.1 25.3
0.21
0.17 (0.42) 0.19
(0.39)

184
159 36 Digital Service
134 3232 Facilities
17
36
Land and Buildings
15
Capital Expenditures (by year)(Million USD)
75
74
10
4
51
114
47 57 53
42100
11 3 32 1 4
89
16
55
60
6
2 46
6
0.9
28 29
32
1427
27
14

Integrated Report 2021

0.29

Short-term
DebtLong-term $158 million Long-term
Debt
Debt
$140 million$93 million

Consolidated
Accounting Started

2019$0.28 25.1%(0.71)

9-monthfinancial results

Relationships with
Stakeholders$74 million

9-monthfinancial results

82(planned)

Capital Expenditures

Long-term
Debt$93 million

2018

Number of Factories
Connected (Factories)

Consolidated
Accounting Started

0.35

2013 2014/3 2014/12 2015 2016 2017 2018 2019 2020

145.7

Number of Factories Connected

390 companies

Dividends/Dividend Payout Ratio

Dividend Payout Ratio (%)

2021 (year)(planned)

121.3

Environmental
Efforts

2013 2014/3 2014/12 2015 2016 2017 2018 2019 2020 2021 (year)
Consolidated
Accounting Started

2017

9-monthfinancial results

Dividends (USD)

70.9 78.6 81.4

Corporate
Governance19.3 19.4 20.0 20.6 20.9 20.6 20.3 19.9 19.4 19.4
Number of PB Products
320 345 374 406 409 385(Unit: ten thousand)
7.9
238 264 213
6.7 411
5.9
4.5 5.0 5.6
3.2 3.5 3.8 4.1
9-monthfinancial results

2016

PB Sales Constitution Ratio

5,600

Corporate

PB Product Sales (Million USD)

No. of Companies Connected

Nonconsolidated

Private Brand (PB) Goods Sales (Constitution
Ratio)/Number of Products
PB Product Sales

2014/3 2014/12 2015

202.1

Human Resources/
Governance andFinancialSocial Contributions

Consolidated
Accounting Started

9-monthfinancial results

2013

166.3

Digital Service

2013 2014/3 2014/12 2015 2016 2017 2018 2019 2020 2021 (year)

100.8

2014 to 2020 (Bankruptcies of Regular Customers Without a Security Deposit:
5 ($3,644 in unsettleable payments)$1,242 million 63.7%( )50 4.9 5.6 5.2
4.5 4.4 3.8 4.2
4.8
3.6 4.1
44

Consolidated
Accounting Started

9-monthfinancial results

Shareholders’ Equity Ratio

1,242
1,127 1,190
82.3 79.3 82.7 81.4 82.7 1,061
70.9 65.0 63.7*
768 813 849 913 988
77.1

Net assets(Million USD)

280.0
233.7

Sales

Net Income (Million USD)

92

Shareholders’Equity Ratio (%)(planned)

2,339

No. of Companies

Change in Companies Connected to Orange Commerce (electronic purchases)

Net Worth/Net Worth Ratio$74 million 3.8%
Profit Margin (%)

Consolidated
Accounting Started

2,222

2,750

2,477 2,537

Distribution

9-monthfinancial results

Suppliers (companies)

26,16826,3272013 2014/3 2014/12 2015 2016 2017 2018 2019 20202013 2014/3 2014/12 2015 2016 2017 2018 2019 2020 2021 (year)

2,652 companies 2,337,000 Items
Available TRUSCO Orange Book
Items (unit: ten thousand)

28,00026,881

Number of Items Listed

Products

1,235 1,362
1,069
21.5 21.7 21.2 21.2 21.3 21.5 21.5
20.3 20.4
20.9

Number ofSales Accounts

Ordinary Income Ratio (%)

Ordinary Income(Million USD)

Suppliers

Corporate
Mission1,556 1,654

2,001 2,061 1,994 2,126

Ordinary Income Ratio$107 million 5.4%

Number of Sales Accounts

5,515 companies 27,550 Sales accounts

Ordinary Income/Ordinary Income Ratio$1,994 million 21.5%
Sales (Million USD)
Gross Profit Margin (%)

No. of Companies

Value Creation

Changes in Number of Suppliers and Available TRUSCO Orange Book Items

Changes in Number Business Partners and Sales Accounts
Consolidated Accounting Started : Figures based on consolidated business results due to the start of consolidated accounting in 2019.

2020

Consolidated Accounting Started

Integrated Report 2021

83

9-month financial results

Value Creation

Results Data (Operating Results Over the Past 10 Years)
Consolidated Accounting Started

50th term

51st term

52nd term*

53rd term

54th term

55th term

56th term

57th term

58th term

59th term

2012/3

2013/3

2014/3

2014/122015/122016/122017/122018/122019/122020/122021/12[Million USD] [%]1,214 (+12.5)

1,236 (+1.8)

1,363 (+10.3)

1,069 (+10.1)

1,556 (+6.5)

1,654 (+6.3)

1,823 (+10.2)

2,002 (+9.8)

2,062

1,994 (−3.3)

2,126 (+6.6)

Average daily net sales (Year on Year) (Non-consolidated parent) [Million USD] [%]5.0 (+12.0)

5.1 (+1.8)

5.6 (+10.3)

5.9 (+10.7)

6.5 (+6.5)

6.9 (+6.3)

7.5 (+8.8)

8.3 (+10.8)

8.7 (+5.0)

8.3 (−4.9)

8.8 (+6.0)

Gross income (Year on Year)247 (+12.5)

250 (+1.1)

277 (+10.9)

224 (+13.3)

334 (+9.9)358 (+7.3)

386 (+7.9)425 (+9.9)439

429 (−2.4)

457 (+6.6)

Operating Results
Net sales (Year on Year)

Gross profit margin(planned)

20.4

20.3

20.4

20.9

21.5

21.7

21.2

21.2

21.3

21.5

21.5

169 (+0.3)

172 (+1.7)

183 (+6.2)

144 (+7.8)

212 (+10.0)

226 (+6.2)

253 (+12.0)

290 (+14.8)310

326 (+5.0)

334 (+2.6)

Shipping expenses and packing costs (including fees for third-party delivery companies)[Million USD]

23

26

29

23

34

37

43

52

57

58

64

Depreciation[Million USD]

19

15

16

13

21

22

25

33

45

61

65

Salaries and bonuses (including bonus reserve inward/outward transfers)[Million USD]

72

74

80

63

89

99

110

115

116

113

113

Selling and administration expense ratio
Operating income (Year on Year)
Operating profit ratio
Ordinary income ratio
Net income (Year on Year)
Profit margin

14.0

13.9

13.4

13.5

13.7

13.7

13.9

14.5

15.1

16.4

16.0

78 (+52.7)

78 (−0.2)

94 (+21.3)

79 (+25.0)

121 (+9.7)

132 (+9.1)

133 (+0.8)

134 (+0.6)

128

102 (−20.1)

123 (+19.5)

[%]

6.4

6.3

6.9

7.4

7.8

8.0

7.3

6.7

6.3

5.2

5.8

[Million USD] [%]77 (+54.6)

77 (−0.0)

94 (+21.3)

79 (+25.3)

123 (+12.0)

134 (+9.2)

136 (+1.0)

136 (+0.4)

132

108 (−18.6)

129 (+19.6)

[%]

6.4

6.3

6.9

7.4

7.9

8.2

7.5

6.8

6.4

5.4

6.1

[Million USD] [%]36 (+36.9)

45 (+22.5)

55 (+23.6)

51 (+34.7)

77 (+11.9)

93 (+20.9)

95 (+2.1)

90 (−4.4)

89

74 (−16.7)

88 (+18.9)

3.6

4.1

4.8

4.9

5.6

5.2

4.5

4.4

3.8

4.2

129

111

135

108

133

99

97

109

171

302

−

Merchandise[Million USD]

171

189

189

203

233

271

297

345

407

388

428

Fixed assets[Million USD]

416

448

484

511

534

593

725

854

981

993

−

Tangible fixed assets[Million USD]

388

412

449

469

488

536

634

735

870

897

−

Intangible fixed assets[Million USD]

10

17

19

17

16

20

31

55

79

64

−

Total assets[Million USD]

910

934

1,025

1,027

1,122

1,196

1,377

1,590

1,832

1,951

−

Net assets[Million USD]

734

769

813

849

913

989

1,062

1,127

1,191

1,242

−

[%]

80.6

82.3

79.3

82.7

81.4

82.7

77.1

70.9

65.0

63.7

−

83

64

102

140

−

Shareholders’ equity ratio

Human Resources/
Governance andFinancialSocial Contributions

3.0[Million USD]

Digital Service[%]

Cash and deposits

Sales

Ordinary income (Year on Year)[%][Million USD] [%]Distribution[%][Million USD] [%]Selling, general and administrative expenses (Year on Year)

Products[Million USD] [%]Corporate
Mission49th term

Note: The year-on-year change for the 52nd term was calculated by converting the 51st term into a nine-month period, and the year-on-year change for the 53rd term was calculated by converting the 52nd term into a 12-month period.

Cash Flow
33

41

87

30

87

60

[Million USD]

−24

−36

−29

−40

−22

−54

−39

−38

−45

−40

−

Cash flows from investing activities[Million USD]

−29

−49

−51

−40

−47

−72

−155

−169

−184

−81

−

Cash flows from financing activities[Million USD]

−8

−11

−12

−16

−14

−21

69

116

136

72

−

Dividend amount paid

[Million USD]

−8

−11

−12

−16

−14

−21

−24

−23

−22

−21

−

Net increase (decrease) in cash and cash equivalents[Million USD]

−4

−18

24

−26

25

−33

−2

11

54

130

−

Return on assets (ROA)

[%]

8.7

8.4

9.6

7.7

11.5

11.6

10.6

9.2

7.2

5.7

−

Return on equity (ROE)*

[%]

5.1

6.0

7.0

6.2

8.7

9.8

9.3

8.3

7.5

6.1

−

[Million USD]

32

48

57

32

42

76

134

160

184

75

51

Corporate[Million USD]

Corporate tax amount paid

Corporate
GovernanceCash flows from operating activities

Financial Indicators
Environmental
Efforts

Capital expenditures*ROE concept: TRUSCO NAKAYAMA does not employ short-term strategies to increase ROE. We aim to expand profit by providing investments to ongoing growth sectors to facilitate long-term and stable growth.

[USD]

0.55

0.68

0.84

0.77

1.16

1.41

1.44

1.37

1.36

1.13

−

Net assets (BPS)*

[USD]

11.12

11.65

12.33

12.88

13.85

14.99

16.11

17.09

18.06

18.84

−

Annual dividend[USD]

0.32 (0.16)

0.34 (0.17)

0.42 (0.21)

0.39 (0.19)

0.58 (0.29)

0.71 (0.35)

0.36

0.34

0.34

0.28

0.34

[%]

28.9

25.3

25.2

25.3

25.0

25.2

25.3

25.1

25.0

25.1

25.3

1,363 (+4.5)

1,471 (+8.1)

1,580 (+7.4)

1,589

1,465 (−7.8)

1,536 (+4.8)322

359 (+11.4)

408 (+13.9)

137

158 (+15.6)

165 (+4.2)

13*2

11 (−14.5)

16 (+40.0)

Dividend payout ratio

The Nakayama
visually impaired
welfare foundation

Net income (EPS)*

Relationships with
Stakeholders

Information by Share

*The net income per share, net assets per share, and annual dividend amounts in parentheses before the 54th term were calculated based on the number of shares after the stock split for splitting one share into two shares on January 1, 2017.
results show sales performance announcing the settlement of accounts for each term by segment. Year-on-year comparisons are made with the figures for
Sales by Segment (Thethe previous year which have been reclassified to correspond to the segment classifications of each period.)

943 (+10.1)−

138 (+25.9)*1

173 (+24.9)

227 (+29.1)

287 (+26.1)

102 (+6.5)

102 (−1.2)

107 (+5.1)

81 (+0.2)

107 (−2.2)

112 (+4.8)

115 (+3.2)

125 (+8.6)

4 (+148.2)

14 (+70.5)

18 (+26.6)

44 (+35.2)

6 (+82.5)5 (−15.2)

8 (+59.5)

9 (+5.3)

Sales (Year on Year) [Million USD] [%]1,107 (+12.9)

e-Business RouteSales (Year on Year) [Million USD] [%]Home center route

Sales (Year on Year) [Million USD] [%]Overseas RouteSales (Year on Year) [Million USD] [%]Corporate Data

1,237 (+10.5)−

1,304 (+5.3)−

1,119 (+1.6)−

Factory Route*1 e-Business Route added as a result of expanding sales since the 53rd period.
*2 Overseas Route established and business results of overseas subsidiaries included in figures due to the start of consolidated accounting in the 57th period.

84

Integrated Report 2021

Integrated Report 2021

85

9-month financial results

2012/3

Average Age/Salary of Staff by Course[persons]

2014/3

2014/122015/122017/122018/122019/122020/12

1,718

1,785

1,905

1,980

2,143

2,293

2,571

2,727

2,796

2,786

8

9

8

8

7

9

8

8

12

12

1,349

1,424

1,514

1,608

1,656

1,674

692

787

860

1,049

1,111

1,128

1,100

Female staff ratio

25.3

26.7

28.6

29.1

29.9

32.7

33.7

34.6

35.3

35.2

Staff Average

39.5

39.6

39.7

39.4

39.6

39.3

38.6

38.2

38.2

38.4

[years] Career course

35.2

35.5

35.3

34.6

34.1

33.5

33.7

33.3

33.1

33.5

Area course

40.0

40.8

41.1

41.6

42.3

43.2

43.6

43.7

44.0

44.0

Specialist course

32.8

33.2

33.5

34.7

36.5

36.1

36.1

36.4

37.0

37.2

Support course

-

-

34.4

34.6

37.3

37.9

38.1

39.5

39.6

40.6

Logistics course

44.7

45.7

45.8

44.0

42.7

40.2

37.9

36.8

37.2

37.1

54.9 (57.9)

56.4 (59.5)

56.7 (59.8)

59.9 (62.8)

61.6 (63.9)

62.9 (66.2)

66.8 (70.1)

65.5 (69.0)

61.2 (64.6)

57.8 (61.3)

81.5 (86.8)

81.3 (86.5)

81.9 (87.2)

87.3 (92.8)

92.8 (97.1)

99.4 (105.4)

107.7 (114.2)

107.4 (114.6)

106.1 (114.0)

105.4 (113.1)

122.3 (132.9)

117.8 (128.2)

130.8 (140.3)

129.5 (140.6)

137.3 (146.6)

153.0 (164.8)

162.0 (174.0)

161.9 (175.3)

140.0 (151.4)

135.1 (146.9)

Career course

61.8 (65.4)

64.2 (67.9)

64.1 (67.8)

66.9 (70.6)

67.9 (70.7)

70.7 (74.4)

75.2 (79.2)

75.1 (79.4)

70.8 (75.1)

67.3 (71.7)

Area course

51.2 (53.9)

52.8 (55.6)

53.2 (56.9)

57.1 (60.0)

58.8 (61.1)

60.8 (64.1)

65.0 (68.3)

63.5 (67.0)

60.0 (63.5)

56.1 (59.6)

Specialist course

55.7 (58.4)

52.7 (55.1)

53.4 (55.9)

58.4 (61.0)

64.2 (66.5)

68.7 (72.2)

70.8 (74.4)

71.1 (75.1)

66.8 (70.7)

63.5 (67.5)

Support course--

41.2 (43.3)

44.3 (46.3)

45.5 (47.1)

45.9 (48.4)

46.9 (49.2)

48.2 (50.6)

44.1 (46.8)

42.0 (44.4)

Logistics course

41.4 (42.6)

43.2 (44.5)

42.9 (44.2)

45.5 (46.8)

50.0 (50.9)

48.5 (50.2)

50.5 (52.3)

48.5 (50.3)

45.9 (47.8)

43.0 (44.9)

Average Salary Staff Average*

3

The averagesalary including
financial bonds*2
is shown in theparentheses.

Supervisors[thousand USD]Managers including branch managers, center
managers, and Head Office section managers
Department general managers, division
general managers, and deputy generalmanagers (does not include officers)*1 Changed to consolidated employee count from 2019 *2 TRUSCO NAKAYAMA has a payment policy that provides severance as annual financial bonds rather than a single payment upon resignation.

[persons]

24 (25)26 (37)43 (29)

[%]

2.1

2.1

2.3

Employee Rate of Persons with Disabilities

Status of Stock As of December 31, 2020
1.23%
3.39%

Shareholder Composition
15,516 94.98%

Japanese corporations

553

3.39%

Foreign corporations, etc.

201

1.23%

65

0.40%

Treasury stock

1

0.01%

Total

94.98%

16,336

Number of Shares Issued

0.10%

15,280,697 23.15%

Japanese corporations

21,835,312 33.08%

23.15%

26.14%

Foreign corporations, etc. 11,574,458 17.53%
Financial firms/stock brokerages 17,252,688 26.14%
Total

65,5890.10%

33.08%

2011

459

564

3.3

3.2

3.2

3.1

2.9

2.9

2.9

2012

2013

2014

2015
2016
9-month financial results

2017

1,652

40,1062,233(7.4)

Employees

1,457

2,026

2018
2019
2020
Consolidated Accounting Started

1,509

1,785

1,728

1,786
361.2

(Nikkei Average: $256.4)

198.1
132.8

(TOPIX：1,804.68)
2009/3

2010/3

2011/3

2012/3

2013/3

2014/3

2014/129-month financial results

2015/122016/122017/122018/122019/122020/12

Consolidated Accounting Started

Note: The company's share price is based on the assumption that a stock split was conducted before the fiscal year ended December 2016. (Index: 100 in April 2008)
Integrated Report 2021

Consolidated Accounting Started

As of December 31,
2015

As of December 31,
2016

As of December 31,
2017

As of December 31,
2018

As of December 31,
2019

As of December 31,
2020

Women
Men

404
945

465
959

510
1,004

557
1,051

585
1,071

589
1,085

Total

1,349

1,424

1,514

1,608

1,656

1,674

Women
Men

38
56

77
33

59
67

63
72

52
57

41
46

Total

94

110

126

135

109

87

Women
Men

30
32

66
31

46
37

58
60

46
50

37
42

Total

62

97

83

118

96

79

Retirees

Women
Men

8
24

20
18

18
18

20
26

42
44

37
33

Total

32

38

36

46

86

70

Turnover rate

Women
Men

1.9
2.5

4.1
1.8

3.4
1.8

3.5
2.4

6.7
3.9

5.9
3.0

Total

2.3

2.6

2.3

2.8

4.9

4.0

New
graduates

2021(Share Price: $27.0)

966

New
employees

55th term 56th term 57th term 58th term (year)

Note: The number of attendees at the Ordinary General Meeting of Shareholders
for the 57th term decreased due to the Covid-19 pandemic.

January 1, 2017
Stock Split

No. of New Employees and Retirees

Some of the Main Reasons for Resignation in 2020
∙ To attend school in order to obtain an elementary school teaching license∙ To concentrate on acquiring qualifications as an accountant∙ To change to a career in the restaurant industry∙ To acquire new knowledge and skills in a new environment∙ To take care of my family∙ To attend a vocational school in the film industry∙ To become a care worker (early retirement)∙ To get married and move to the U.S. (Welcome Back Program*)*This program is for the re-employment of staff who had to resign toraise a child, take care of a sick family member, undergo infertility
treatments, or to accompany their spouse overseas due to a work
appointment within ten years of their resignation.

Note: Includes overseas employees on loan since 2018.

Average Staff Salary(Unit: thousand USD)

2016

2017

2018

2019

2020

Staff
Average$62.9($66.3)$66.8($70.1)$65.5($69.0)$61.2($64.6)$57.8($61.3)CareerCourse$70.7($74.5)$75.3($79.2)$75.1($79.4)

$70.8
$75.1

$67.3
($71.7)

Corporate Data

455

520

66 (50)

The Nakayama
visually impaired
welfare foundation

360

1,790
(7.0)

48th term 49th term 50th term 51st term 52nd term 53rd term 54th term734

66 (51)

1,463
29,9971,280 (7.9)
1,244
1,146 1,194(7.9)
1,652*
25,365988 (6.8) (7.5) (8.0)(4.1)
857 (6.7)
Number of(5.8)
Shareholders 18,462
16,963
16,336
15,567
14,69915,940 16,043
14,71866,008,744

Comparison of TRUSCO NAKAYAMA Market Capitalization
and Principal Indicators
Indicator of April 2008 as 100
Market Capitalization
TRUSCO NAKAYAMA Nikkei Average
TOPIX(Million USD)
Corporation

67 (48)Relationships with
Stakeholders

Treasury stock

17.53％

67 (43)

Environmental
Efforts

Individuals, etc.

61 (38)

Corporate
Governance

Financial firms/stock brokerages

54 (43)

Number of attendees of the57th Ordinary General Meetingof Shareholders

Stock Split
1 Share2 Shares

Number of attendees of thegeneral shareholders meeting(% of shareholders who attended)48 (32)

Corporate

Individuals, etc.

Changes in Number of shareholders
and attendance rate for the Ordinary
General Meeting of Shareholders

0.40%
0.01%

*3 Staff averages include the executive officer.

Human Resources/
Governance andFinancialSocial Contributions

Number of Employees with Disabilities(statutory employment rate based hires)

Digital Service

1,280

678

Sales

1,219

597

Distribution

1,179

532

Full-time Staff

Products

1,178

Average Age*86

2016/12Part-time employees

1

2008/4

Consolidated Accounting Started

Corporate
Mission

Total
Number of
employees*1 Officers

2013/3

Value Creation

Results Data (Employee and Stock Information) (As of December 31, 2020)*Figures in parentheses include financial bonds*Staff averages include the executive officer.

The base has been increased over a three-year plan from 2015 to revise the base salary and performancebonuses of staff. The hourly wage for part-time employees was also increased $0.28 across the board in 2017.
Reduced due to the stoppage of performance-linked bonuses from 2019.
*1USD=107JPY

Integrated Report 2021

87

“GAMBARE!! JAPANESE MONODZUKURI” This slogan has always evolved in response to

the trends of the times and social changes. We develop business that plays a role in helping, even slightly, with thedevelopment of Japanese manufacturing, “Monodzukuri,” through our business supplying PRO TOOL.

1960s 1964

●March 2 Established Nakayama Kiko Co., Ltd. (Higashi-ku, Osaka, Current Chuo-ku)●Tokyo office (Minato-ku, Tokyo) opened●Launched first product catalog “Nakayama Business Bulletin”●Sales of our first private brand product “Red Lead” started●Internal company salesman “Orange Doctor”

qualification exam started
2004 ●Osaka
Head Office moved from Higashiosaka, Osaka to
Nishi-ku, Osaka

1962 ●Nagoya Sales Office (Atsuta-ku, Nagoya) opened

2000s 2005

●Product search site “orange-book.com” operation

2006 ●Core system “Paradise” operation

1967 ●Steel center opened
Nakayama Filing Co., Ltd. established1971 ●●Head office moved to the Higashiosaka Machinery andWholesale Complex in Osaka Prefecture

1981 ●Started sales to the home center industry
training for new employees (Shigisan, Naras 1982 ●Started
Prefecture)

1980

2001

88

Integrated Report 2021

st

1997

2002

●Nakayama Welfare Foundation for the Visually Impaired
founded●Net sales exceed $934 million●Goods receipt abolition●Two head office system started with the Tokyo Head
Office in Minato-ku, Tokyo opened●Internet order receiving system “Web TRUSCO” started
operation●Started digital relay at the Ordinary General Meeting of
Shareholders in Osaka and Tokyo●Personnel evaluation OJS system started

2003 ●Financial bond (annual payment for severance) introduction●Private Brand (PB) names unified under the name of TRUSCO●Moved away from home appliances and lifestyle products to specialize in PRO TOOLs

Newspaper articles about the
Tetsuya Nakayama assumes
company's public offering (1989) position of President (1994)

New computer system, N-STEP,
is launched into operation (1991)

Opened the first Logistics
Center Planet Kyushu (1994)

2019●Representative Office Germany (Düsseldorf) is established●Consolidated accounting started●60 th anniversary of company foundation●Health management superior corporation 2019
(White 500) certified●Establishment of Trusco Nakayama Health Insurance Association●Information Systems Dept. new establishment

2020s 2020

●Core system: “Paradise 3” starts operations●Health management superior corporation 2020 certified●Planet South Kanto is rebuilt and put into operation●The Digital Service Strategy Department (formerly the
Information Systems Dept.) is established●Selected as a DX Stocks 2020 “DX Grand Prix” company●Shareholder special benefit plan is abolished●President Tetsuya Nakayama awarded Medalwith Blue Ribbon●PRO TOOL Restrictions Removed●Received the Information Technology Award “ITGrand Prize”

Name of the company's
comprehensive catalog changed
from “Nakayama Business
Bulletin” to “Orange Book” (2000)

Final note payable(August 2003)

Final note receivable(December 2005)

Corporatemessages arestarted (1995)

Tokyo Head Office isestablished (2002)

TRUSCO stock listed in First
Sections of the Tokyo Stock
Exchange (1996)

New Year's Message
from President
Nakayama (2003)2010s

activity support system “Self.I” operation2013 ●Sales●e-commerce Sales Division, Overseas Division new establishment

2014●Welcome back system started●e-business Sales Division (former E-commerce Sales
Division) new establishment●55th anniversary of company foundation●President OJS started at the General Meeting of Shareholders●Fiscal year changed from March to December●Tokyo Head Office (Shimbashi, Minato-ku, Tokyo) registered as company head office●Subsidiary PT.TRUSCO NAKAYAMA INDONESIA establishment●Part-time Staff OJS system started

2015 ●Asunaro subsidy system started

16 brands representing
different product categories(before brand integration)

Brand logo (after brandintegration) (2003)

Screenshot of page on TRUSCO
Orange Book.Com (2006)

TRUSCO data center (2006)

TRUSCO NAKAYAMA CORPORATION Representative Office(THAILAND) LIMITED building (2016)
Germany (Düsseldorf) (2015)

Relocationof TokyoHead Office TV program broadcasting
starts (2017)(2014)

PT. TRUSCO NAKAYAMAINDONESIA building (2019)

Planet Saitama (2018)

TRUSCO receives Porter Prize(2018)

Trusco Nakayama Health Insurance
Association established (2019)

Corporate Data

Sales of our first private brand Introduced the small comproduct “Komyotan” started
puter FACOM230-15 at the(1964)
company (1975)

1996 ●Listed on the 1 Section of the TSE and OSEagers OJS system started

The Nakayama
visually impaired
welfare foundation

Nakayama Filing Co., Ltd.
established (1971)

1995●“GAMBARE!! JAPANESE MONODZUKURI” company
message start●Listed on the 2nd Section of the TSE●New logistics system “TRULOGIS” operation2012 ●Officers, executive officers and division general man-

Relationships with
Stakeholders

Launched
first productcatalog“Nakayama
Business
Bulletin” (1964)

2018●Sales exceeded $1,869 million●Porter Prize 2018 Winner●TRUSCO Orange Book.Com renewal open
●Planet Saitama starts operations●Health management superior corporation 2018
(White 500) certified

1989 ●Store registration/Public offering of stocks

Environmental
Efforts

Head office moved to
Higashiosaka City (1971)

2017●“Best IR Award for Encouragement” recipient●TRUSCO Orange Book AI Section New establishment●“TRUSCO Shirarezaru Gulliver” broadcast started●Distribution Department new establishment●Product database: “Sterra” is launched into operation●Health management superior corporation 2017
(White 500) certified

Corporate
Governance

1959, the year of thecompany's founding,President Tetsuya Nakayama
is in the center of the photo●Activities for eliminating draft transactions started●Relief health care system started●Half-day full-time employee system started●Promotion OJS system started (OJS=Open Judging
System)(THAILAND) LIMITED. Established [former company
name Protool Nakayama (Thailand)]●Upgraded to “A” with issue size through theRating and Investment (R&I) Information Co., Ltd.
2016 ●TRUSCO
new social work grant system started

Corporate

2000s●Fax machine-assisted automatic order entry system“DOTKUL” begins operations●Name of the company's comprehensive catalog changed
to “Orange Book”

with Nakayama Filling Co., Ltd. (Surviving
1987 ●Merger
company is Nakayama Kiko Co., Ltd.)2009●50 th anniversary of company foundation●“TRUSCO RESETPLAN” implementation to deal
with the economic downturn precipitated by the
Lehman Brothers bankruptcy

Human Resources/
Governance andFinancialSocial Contributions

2000●TRUSCO Shonan Ohashi Bridge naming rights acquiredof logistic centers and setting up of core centers2010 ●Grouping●Subsidiar y TRUSCO NAK AYAMA CORPORATION●Order substitution system “MR.Orange” operation●Acquired the “KURUMIN” certification mark fornext-generation training●Inventory management system “ZAICON” operation

Digital Service

1994●Shareholder benefit plan introduction●Changed the company name from Nakayama Kiko Co.,
Ltd. to Trusco Nakayama Corporation●Opened the first Logistics Center Planet Kyushu●Listed on the 2nd Section of the OSE●Tetsuya Nakayama assumed the position of Representative Director and President

1975 ●First online system “FACOM230‐15” operation

2008

Sales

1990s

1991 ●New information system “N-STEP” goes into operation
1992 ●CI “B∙E∙Plan 21 Corporate Evolution Activities” start●Boss challenge course (responsible person appointment system) started

operation

Distribution

1970s●ISO14001 acquired for all Japanese domestic businesssites●Started a desired relocation/Lovebirds Transfer Program●Total abolition of all draft exchanges●General Meeting of Shareholders held at 2 venues

in Osaka and Tokyo simultaneously
2007 ●Electronicpurchasing system “Orange Commerce”

Products●May 15 Founded as a machine tool wholesale business in Tennoji-ku, Osaka, as Nakayama Kiko Shokai

Corporate
Mission1959 1959

Value Creation

History

Planet South Kanto (2020)

Integrated Report 2021

89