Creating Corporate Value Report 2019Year Ended March 31, 2019

Refreshing the AirRefreshing the Air
Our business is to brighten and enliven the lives of customers with air.
We have focused on niche markets, and reeled in customers while developing productswith the keywords: “understanding through listening, seeing, and using.”
Our strength is the fact that we possess numerous original brands that occupy a large
market share in niche markets, like the deodorizer and air freshener Shoshu-Riki,
mothproofing agent Mushuda, deodorizer Dashu-Tan, dehumidifier Dry Pet.
Presently, our business environment is dramatically changing, as environmental problems
become more serious, the social structure transforms, and globalization progresses,
however, we aim to establish a robust business foundation for responding to suchchanges.
Aiming for continuous growth through our unique air-care technologies, we will conductsynergistic development of both society and business through initiatives that will satisfy
both the expectations (business) and demands (sustainability) of society.

Compilation Policy
This report includes the efforts for creating corporate value as an annual report on
the business activities of the S.T. Group. With reference to the requests, opinions,etc. from stakeholders, it includes important issues (financial and non-financial
information) for both stakeholders and the S.T. Group.
[Scope of reporting] See the entire picture of communication tools on page 13.
[Target organizations] The document reports on our company, or the S.T. Group(consolidated), if not mentioned. The “S.T. Group” means the entire S.T. Group,
the “S.T. Group (in Japan)” means S.T. (non-consolidated) and group companies inJapan, and the “S.T. (non-consolidated)” means S.T. Corporation (non-consolidated).

[Target period] April 1, 2018 to March 31, 2019
[Date of issuance] August 2019
[Forward-looking statement] This report contains forward-looking statements
regarding S.T. CORPORATION’s future plans, strategies, and performance. Suchforward-looking statements are based on information available as of the issuanceof this report. Please note that the Company’s actual performance may differ
greatly from forward-looking statements due to the economic situation, businessenvironment, market demand, and foreign currency exchange rate fluctuations in the
future.

Dehumidifiers

Mothproofing AgentsHousehold Gloves(Market Share: No.1)(Market Share: No.1)(Market Share: No.2)

40%

54%

25%

Deodorizers

Deodorizers and Air Fresheners

Disposable Warmers(Market Share: No.1)(Market Share: No.2)(Market Share: No.2)

81%

25%

16%

The market share was estimated by INTAGE Inc.
(Filtered according to SRI category) (Data from January to December put together, except disposable pocket warmers, for which data from April to March were put together.)Contents
Turning Thermal Care into a Business that Drives Growth P. 2
Financial and Non-Financial Highlights P. 8

Message P. 4

Business at a Glance P. 10

Systems for Overseeing and Supporting Management P. 6

Sustainability Overview P. 12

Corporate Data / Overview of Communication Tools P. 13

1

Turning Thermal Care into a Business that Drives Growth

April 2019: S.T. MYCAL CO., LTD. Starts Business Operation

The seeds of a new field and a new market that we sowed during the period of the previous
medium-term management plan will be raised into the next strong pillar of earnings in the periodof the new medium-term management plan that started at the year ended March 31, 2019.
S.T. MYCOAL CO., LTD. started its operations in April 2019.
As for our growth policy, “Onto New Markets with Existing Technologies,” we are going with
On Style for the healthcare market and we are promoting thermal care products overseas for“Strengthening Global Business.”2

Development of a Robust Business Foundation that Won’t Be
Swayed by the Business Environment
Innovation
New Technologies

Changes in Demographic Structures
Existing Technologies

Global Trends
Strengthen Global Business3

Message

Strengthening of Brand Power to Grow Further
From Sowing the Seeds of Growth to its Nurturing
In the year ended March 31, 2019, under the management

Important Points for This Year

policy “Brand Value Management,” we started the new(1) Nurturing and strengthening of mainstay brandmedium-term management plan and shifted our focus “From(2) Domestic new field / new market

Sowing the Seeds of Growth to its Nurturing” As a result,(3) Constructing an overseas foundation for growth

products with high unit price and high added value continued(4) Growing our thermal care businessto show a growth, but due to the disposable warmers market(5) Creating a structure for growthstagnating because of the effects a record-setting mild winterand the spring season peak for mothproofing agents extending
into the next year due to seasonal factors, we recorded net

We shall continue with the strategies of the initial year regarding

sales of 47.7 billions of yen (2% decrease from the previous(1) Nurturing and strengthening of mainstay brand and (2)year).

Domestic new field and new market. Under (3) Constructing an

As for profits, the investment made for growth could not be

overseas foundation for growth, we shall review the foundation

completely recouped due to the recorded sales diverging fromfor our business in Thailand and plan a recovery. Under (4)the initial plan, which resulted in a decrease in sales and profit,

Growing our thermal care business, the new factory started

with operating income of 2.8 billions of yen (18% decrease

operating this term and the R&D and manufacturing systems

from the previous year), ordinary income of 2.7 billions of yen

have been put in order. We recognize this year as The Initial(22% decrease from the previous year) and profit attributable toYear of Thermal Care and will raise the aforementioned businessowners of parent of 1.8 billions of yen (25% decrease from theinto a driver for growth. Finally, under (5) Creating a structure forprevious year).

growth, along with continuing with the reform of profit structures

Regarding the nurturing of a new field for growth, we released alike capital investment aimed at growth, we shall also continue

counter-pollen product through our healthcare brand MoriLabo,with the construction of a system for the future like work stylewhich uses Clear Forest technology.

reform and the formation of a diversified organization.

Initiatives Taken in the Year Ending March 31, 2020
This will be the second year of our new medium-term

Strengthening of Brand Power to Grow Further

management plan. Looking back at the initial year, we took

The year under review was a year in which we re-recognizednote of the fact that (1) we could not complete the plans forvarious challenges. This year, we shall find solutions to those

Air Care and Overseas businesses, (2) we could not achieve

challenges, aim for further growth by strengthening our brandthe target sales of disposable warmers due to a mild winter,

power with all our employees and break through our previousand (3) we could not fully recoup the investment for growthshell and continue growing. For that, we would appreciate yourdue to the increases in expenditure of some raw materials andcontinued support.

SG&A expenses.
This year, after reflecting on the experiences of the previous
year, we shall take initiatives regarding the following 5
important points.
Takako Suzuki
President and Chief Operating Officer (COO)4

5

Systems for Overseeing and Supporting Management

Corporate Governance
We are aiming for the sustainable co-growth of enterprises and society.
We think of corporate governance as a system that supervises ouractivities toward that goals. It is important to develop an environment
for securing the transparency and fairness of management facilitating
active decision making, and disclosing information properly. We
recognize that shareholders, society and the environment entrust us
with valuable managerial resources, and aim to realize the sustainablegrowth of society and the environment and create corporate value inthe medium to long terms, in cooperation with stakeholders, and will
fulfill our accountability.
Development of Corporate Governance System
In June 2004, in order to enhance oversight function of the Board of
Directors and the quality of management and enrich management
practices such as prompt decision-making and agile executionof operation, the Company was reorganized into a company withcommittees (currently company with three committees), which ismore transparent and fair and in which outside directors account forthe majority of board members. In June 2008, a female director was
appointed for the first time, and in June 2019, female directors make up
33% of the board (one out of nine executive officers is also woman). In
addition, we appoint Independent outside directors with a wide arrayof knowledge, experience and skills such as management, marketing,accounting and legal affairs, etc. (The Company was selected as “Diversity
Management Selection 100 (2013)” (METI Minister Award).) Since 2015,a board evaluation has been also conducted on annual basis to improvethe effectiveness of the Board.
Remunerations of Directors and Executive Officers
The remunerations of directors and executive officers are designed for
improving corporate value.

Overview of Corporate Governance(Year ended March 31, 2019)

Governance Type

Company with three committees

Number of Board Members

9

Number of Outside Directors

5 (56%)

Number of Independent Outside Directors

4 (Notified as the independent outside directors designated by the Tokyo Stock Exchange)

Board Diversity

3 female directors (33%)

Number of Board Meetings Held per Year

8 times

Average Attendance Rate of Board Meetings

99%

Director’s Term

1 yearChairman and CEO

One person serving as both

Nomination Committee

5 members (3 outside directors; chaired by an outside director)

Audit Committee

4 members (4 outside directors; chaired by an outside director)

Compensation Committee

3 members (2 outside directors; chaired by an outside director)

Corporate Governance Structure
General Meeting of Shareholders
Election/Dismissal

Nomination Committee

Election/Dismissal

Accounting Auditors
Accounting Audit

Board of Directors

Audit Committee(Audit Committee Office)Election/Dismissal

Internal Audit Group

6

Compensation Committee

Representative Executive Officers

Executive Officer Meeting

Executive Officer in Charge

Executive Officer in Charge

Operating Divisions

Group Companies

Board of Directors(As of June 18, 2019)

Takashi Suzuki

Naoto Onzo

Kanichi Suzuki

Mitsuko Miyagawa

Fuminobu Aruga

Takako Suzuki

Kumiko Ishikawa

Kouichi Yoshizawa

Chairman of the Board of Directors

Director (Outside Director)

Director (Outside Director)

Director(As of June 18, 2019)
Nomination
Committee

Chairman of the Boardof Directors○

Director(Outside Director) ☆

◎Director(Outside Director)○

Director(Outside Director) ☆

○

Audit
Committee

Compensation
Committee

Takashi Suzuki○◎※

Naoto Onzo
Kanichi Suzuki

Director (Outside Director)

Director

Areas of Executive Officer Responsibility
Executive Officers

Name

Noriyuki Watanabe

Director (Outside Director)

Director

Board Composition
Directors

Director (Outside Director)(As of June 18, 2019)

Responsibilities

Name

Representative Executive
Officer, Chairman, CEO

Overall management

Takashi Suzuki※

Representative Executive
Officer, President, COO

Overall management

Takako Suzuki※

Managing Executive Officer

In charge of the Business Management Division

Tsukasa Konda○

Mitsuko Miyagawa

Director(Outside Director) ☆

◎Noriyuki Watanabe

Managing Executive Officer

In charge of the Sales Divisionand the Domestic Sales Department

Yo Kouzuki

Director(Outside Director) ☆

○Fuminobu Aruga

Executive Officer

In charge of the Executive Creative Director

Koji Kage

Executive Officer

In charge of the Management Strategy Divisionand responsible for Domestic Group Companies

Kouichi Yoshizawa

Executive Officer

In charge of the R&D Division

Mikio Tsuji

Executive Officer

In charge of the International Sales Department
and responsible for Overseas Group Companies

Keiichi Hayasaka

Executive Officer

In charge of the Management Control Division

Masaaki Shiina

Director○○

Takako Suzuki○

Director

9 directors(Five of whom are outside
directors)

Kumiko Ishikawa
Kouichi Yoshizawa

Director5
members◎：Chairperson ○：Committee member

4
members※※3
members※：Holds the concurrent position of executive officer※※：Holds the concurrent position of director☆ Independent Outside Director

Risk Management and Compliance
For internal control, we promote system development in order tosecure the adequacy of organizational business operation. In orderto accomplish organizational goals effectively, efficiently, and properly,
opinions inside and outside the company are constantly grasped andimprovements are continuously made, while organizing rules andbusiness processes.
We consider that risk control is the most important issue formanagement. We are working to establish a system that can prevent

occurrence of various management risks surrounding the company,
minimize damage in the event that incidents do occur, and to prevent
their reoccurrence.
As for compliance, we observe not only laws and regulations, butalso internal and external rules, ethics, and social norms; fulfill social
requirements and expectations by putting our management philosophy
and codes of conduct into practice; and strive to maintain and improve
the trust of stakeholders.

7サーモケア1０％

衣類ケ

Financial and Non-Financial Highlights

15

16

17

19

15

16

1,804

2,410

912

1,813

8922,342

2,854

3.8

2,839

3,481
1,817

エアケア
44％
2,839

3,481

4.8

衣類ケア ２１％

衣類ケア ２１％

18

1,813

サーモケア
1０％

サーモケア
1０％

5.9

5.9

4.8

2,854

湿気ケア ７％
エアケア
44％ ハンドケア
１１％ 3.8

2,342

47,782

48,627ハンドケア
１１％

45,95848,351

48,26347,782

48,627

湿気ケア ７％6.2

6.2

ホームケア 7％

19

7.2

7.2

ホームケア 7％

18

17

18

19

15

Net sales

16

17

18

15

19

Operating income / Operating income margin

*2

16
15

17
16

18
17

19
18

19

Profit attributable to owners of parent■ Operating income (Millions of yen)
● Operating income margin (%)(Millions of yen)

12

(Millions of yen)

19

912

2.9
1.9

13

19,966
21,85216

30,011
19
19,972
21,786

2013
65.2

3,535

3,691

¥46,944
1,800
565
572
2,061
830
-944
234.9

3,683

234.9

210.8

63.2
¥46,354
1,751
76
659
1,007
931
773

64.8 65.2
226.0

3,688

3,752

65.4
202.1

226.0

29,029
14
15

2012

65.2

¥43,580
2,114
786
4.1
4.1
610
2.7
2.7662
992
-897

234.9

6.1

63.2
¥43,546
2,246
4.01,119 4.2
612
673
2.7
922
2,137
210.8

202.1

1,804

1,817

65.4

64.8 65.2

2011
234.9

2010

For the Year
6.1
Net sales*2
Operating income
4.2
4.0 of parent
Profit attributable to owners
4.1
4.1
R&D expenses
2.9
2.7
2.7
Capital expenditures
2.7
Depreciation and amortization
1.9
Free cash flow
At Year-End
Total assets
15
16
17
18
19
12
13
14
15
16
19 12
Total net assets
Number of issued outstanding shares (Thousands)*3
892

1,804

18

2,410

2,410

Millions of yen
Fiscal Year (Ended March 31)

30,28730,0761315 14
16 1517 1618 19
19
19,701
21,71820,213
21,716

Non-Financial Indicators
CO2 emissions (Tons)*6
Number of employees (People)
Ratio of female directors to total directors (%)
Ratio of outside directors to total directors (%)

44.4

33.3
4,433
37.5

948

952

5.2
4.0
5.9
55.6
50.0 67.2
890

55.6

860

859

948

952
3,535

890
3,691

860
3,683

859
3,688

Financial Indicators
Operating income margin
ROA*4
ROE*5
Equity ratio
3,752

3,535

3,691

%

55.6

33.3

611
11.1
66.7

4.9
2.7
55.6 4.0
64.9
33.3

4,167
630
12.5
62.5

55.6

44.4

3.8
0.3
0.4
55.6
50.063.4
33.3
3,727
37.5

55.6

33.3

647
25.0
50.0

3.8
1.9
55.6 2.9
65.4
33.3

3,930
663
30.0
50.0
Yen

18

19

Per Share
Information
15
16
17
18
19
15
16
17
18
19
Profit attributable to owners of parent
Net assets
Dividends
Stock prices*7

15

16
15

17
16

18
17

¥51.25892.46
22
1,046

19
18

19

¥36.03893.74
22
916

15

16

17

¥3.48
884.45
22
1,025

18

19

¥26.01905.8422
988

Notes:	1. U.S. dollar amounts are translated from yen for convenience only, at the rate of ¥110.99 = U.S.$1.00, the approximate rate on the Tokyo Foreign Exchange Market on March 31, 2019.
2. Effective from the fiscal year ended March 31, 2017, we have applied the new accounting standards.
3. Number of issued outstanding shares does not include that of treasury shares.
4. ROA = Profit attributable to owners of parent / average total assets for the fiscal year.

8

15

892
892
892
912
912
912

2.92.92.92.72.72.7

1.91.91.91515161616171717181818191919
15

2.72.72.7
2.72.72.71212131313141414151515161616191919
12131314141415151516161619
1919
13

859
859
859
860
860
860
890
890
890
952
952
952
948
948
948

3,752
3,752
3,752
3,688
3,688
3,688
3,683
3,683
3,683
3,691
3,691
3,691
3,535
3,535
3,535

S.T. Group (in Japan)

55.6
55.6
55.6
55.6
55.6
55.6
55.6
55.6
55.6
55.6
55.6
55.6
50.0
50.0
50.0
44.4
44.4
44.4

33.3
33.3
33.3
33.3
33.3
33.3
33.3
33.3
33.3
37.5
37.5
37.5

1515161616171717181818191919
151515161616171717181818191919
151515161616171717181818191919
15

Number of employees

Ratio of outside directors to total directors /Ratio of female directors to total directors

CO2 emissions*6(Tons)(People)● Ratio of outside directors to total directors (%)● Ratio of female directors to total directors (%)

Millions of yen

Thousands of U.S.dollars*1

2014

2015

2016

2017

2018

2019

2019

¥46,993
2,131
1,234
564
942
894
2,624

¥48,263
1,813
892
513
1,486
844
369

¥48,351
2,342
912
536
1,758
1,128
1,857

¥45,958
2,854
1,817
611
608
997
4,529

¥48,627
3,481
2,410
596
1,822
970
835

¥47,782
2,839
1,804
643
3,060
1,109
-119

$430,510

32,37021,087
21,85333,78522,60021,851

34,92423,496
21,69938,45825,812
21,877

42,112
29,022
22,063

41,97629,223
22,112

378,197263,297

25,580
16,2505,793
27,5719,990-1,069

%

4.5
4.0
6.1
63.2

3.8
2.7
4.2
64.8

4.8
2.7
4.1
65.2

6.2
5.0
7.6
65.3

7.2
6.0
9.0
67.3

5.9
4.3
6.3
68.2

3,884
760
33.3
55.6

3,752
859
44.4
55.6

3,688
860
37.5
50.0

3,683
890
33.3
55.6

3,691
952
33.3
55.6

3,535
948
33.3
55.6
Yen

¥56.74936.0622
999¥40.831,001.84
22
1,021¥42.01
1,049.58
22
1,114¥83.57
1,148.41
24
1,809¥109.58
1,285.01
31
2,286

U.S.dollars¥81.66
1,295.38
36
1,892

$0.74
11.67
0.32
17.05

5. ROE = Profit attributable to owners of parent / average total equity (total net assets - subscription rights - non-controlling interests in consolidated subsidiaries) for the fiscal year.
6. The CO2 emissions from the S.T. Group (in Japan)
7. The stock prices were as of the end of the fiscal years ended March 31.
8. As a result of new accounting standards being applied effective from the fiscal year ended March 31, 2019, the figures for fiscal years 2018 and 2019 reflect those changes.

9Business at a Glance

Business by Category

Proprietary Brand

Market Share and Rank
(Japan)Air Fresheners

Air CareShoshu-Riki commercial on TV

25%(Market Share: No.2)(Deodorizers and
Air Fresheners)

Deodorizers

81%(Market Share: No.1)

Cloth Care

Mushuda commercial on TV(Mothproofing Agents)

Mothproofing Agents

54%(Market Share: No.1)

ThermalCare

Disposable Warmers(Disposable Warmers)(Market Share: No.2)

Hand Care(Gloves)

16%

Household Gloves

25%(Market Share: No.2)

Humidity
Care

Dehumidifiers(Dehumidifiers)(Market Share: No.1)

44
%
44
%
44
%
44
%
44
44%%

Composition of Net Sales

Sales/YoY

20,809Millions of yen

+1.6%

19
%
19
%
19
%
19
%
19
19%%

9,109

11
%
11
%
11
%
11
%
11
11%%

5,147

Millions of yen-2.3%

Millions of yen-20.0%

12
%
12
%
12
%
12
%
12
12%%

5,776

6%%
6
6
%
6
%
6
6%%

3,001

40%

Home Care

8%%
8
8
%
8
%
8
8%%

(Cleaners andOther Products)

Overseas

The ratio of overseas sales is 8%. We strengthen global business as a pillar of growth.

Promoting Capital andBusiness Alliances

We concluded contracts for capital and business tie-ups with FUMAKILLA LIMITED and NS FaFa Japan Co., Ltd.

Development of New
Businesses

Cultivate domestic new field and new market, by utilizing our original air-care technologies.

Millions of yen+3.7%

Millions of yen

+1.6%

3,940

Millions of yen+1.9%

The market share was estimated by INTAGE Inc. (Filtered according to SRI category) (Data from January to December put together, except disposable pocket warmers, for which data from April to March were put together.)10Market Environment

Salient Business Features and Strengths

Overview of Fiscal 2019 and Strategies Going Forward● The market is growing.
● M ainstay business division accounting for about ● H
 igh value added products like Shoshu-Riki Premium Aroma
40% of the Company’s total sales. A business that isseries steadily sold, sales increased.
● F ragrance-focused category are showing a growth
expected to experience future growth.
trend, with further growth anticipated.
●C ontinuing to utilize the strengths of our flagship brand thisyear and taking steps to vitalize the market. Further, taking● This division owns unique brands, including our largest
brand Shoshu-Riki, SHALDAN for enjoying more
initiatives to nurture new businesses.
fragrance, and Dashu-Tan, which deodorizes air with thepower of charcoal.
● The market is on a plateau and stable.
● A foundation business rivaling the importance of the ● R ecorded a decrease in sales due to spring season peak
Air Care category in terms of marketing.
extending over the accounting period because of seasonal●W ith changes in storage styles, responding to diverse
factors.
needs will be the key in the future.
● T his category comprises topline brands including
Mushuda and Neopara Ace, which are well recognized ● A ggressively continuing sales promotion this year andfor their reliability in protecting clothes from moths.
taking steps to cultivate new demand with the proposal ofa new storage style.

● Climate change significantly impacts the market. Difficult ● W inter-based product range. Provide an additional ● R ecorded a decrease in sales due to the stagnation of thedisposable warmer market because of the effects of ato differentiate products. Intense market competition.
point-of-sale management role linked to spring andrecord-setting mild winter.
autumn mothproofing agents.
●W e anticipate domestic new field and new market which
use thermal technology in the future.
● P ossessing disposable warmer brand Onpacks and the ● T his year, as the Initial Year of Thermal Care, we beganwith the creation of a domestic new field and new market
On Style brand for protection from cold.
through the suggestion of a new value using thermal● A pril 2019: new factory starts operation, R&D andtechnology.
manufacturing system was put in place.
● Both household and industrial-use markets are growing. ● An inaugural, enduring division with a history of six ● Industrial-use gloves with high functionality steadily sold,decades together with the Cloth Care category.
sales increased.
● In addition to improving work efficiency, proposals for
improved functionality and added value are key points. ● T his category is comprised of the Family series of ● C ontinuing to strengthen and nurture the brand by suggestinga high value added industrial-use and household gloves, etc.
household gloves, Modelobe series of industrial-use
gloves and other products. Gloves with reinforced
fingertips and NBR gloves with good puncture
resistance have been marketed.
● The market is growing. Difficult to differentiate products. ● This business has consistently led the market since ● T he suggestion of a new storage style Dry Pet Clear
Intense market competition.
Drypet was first launched in 1981.
contributed to sales, sales increased.
● P utting forward value-added products that offer new ● T his category is comprised of the mainstay brand ● T his year, we will keep promoting products with high addedfunctions and applications is critical to future growth.
Drypet, as well as other products including Bincho-Tanvalue to cultivate and expand a new kind of demand.
Drypet, which offers a deodorizing function together
with dehumidifying; a solid lineup including refill- andsheet-type products.
● Robust conditions in the niche cleaner and mothproofing ● This business is currently fostering the niche cleaner ● O ur new product MoriLabo contributed to sales and theagents for rice bins markets.
market and is coordinating efforts to nurture other new
Senjo-Riki Mokoawa toilet cleaner showed favorable
products that are under development.
growth, sales increased.
● It owns unique products, such as the cleaners in the ● W e will endeavor to make inroads into new fields for further
niche market, including Senjo-Riki and Ohisamanogrowth.
Sentaku, and the mothproofing agents for rice bins
Kome-Touban.

We will focus on the target areas of our strategies overseas. We will enter the ASEAN market with the hub of our activities located in Thailand. We will fortify our business infrastructure,and continuing the formation of a foundation for growth.

Utilizing the fact that the business areas of the three companies are complementary to each other, we will try to improve the development and profitability of the three companies’ businesses.

Bringing MoriLabo into the healthcare market and Air Forest into the BtoB market using Clear Forest technology which incorporates a forest's natural components.

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Sustainability Overview

Social Expectations (Creation of a new market)
Details● Initiatives toward HealthEver since SDGs, the societal expectations to solve the problems facing
society have increased. We shall engage these problems using our unique
air-care technologies, which is one of our strengths.

Overview of the Year Ended March 31, 2019 and Strategies Going Forward● <Products>[Ensure healthy lives]
Released our counter-pollen product MoriLabo, which uses Clear Forest
technology that incorporates a forest’s natural components.
● <Community>[Sustainable industrialization (new employment), sustainably managed forests]
Through the comprehensive collaboration agreement with the Hokkaido
Government, continued promoting the use and raising awareness of Sakhalin fir
and energizing the local industry.

Social Requirements (Sustainability activities)
Details

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Overview of the Year Ended March 31, 2019 and Strategies Going Forward● Initiatives toward Our Customers
As a manufacturer of daily use products, we believe that our mission is
to make the lives of consumers comfortable while offering products that
ensure the safety and peace of mind of our customers. If, by any chance
we were to lose this sense of trust from consumers, we will have lost thereason to exist in society. Recognizing this fact, we will take initiatives
toward presenting consumers with products that will ensure their safety
and peace of mind.

● [Protecting consumers’ health and safety]
Continued regularly holding meetings of PL Committee that carries out quality
control, etc.
● [Fair marketing, factual and unbiased information and fair contractual practices]
Continued providing the products/useful information, quality information, andother information, on its website.
● [Consumer service, support, and complaint and dispute resolution]
In the customer consultation room, we continue to deal with frequently asked
questions, explanations on how to use products, and complaints about products.
● [Consumer data protection and privacy]
To develop a management system in accordance with the Act on the Protection of
Personal Information, and conduct inspection on a regular basis.

● Initiatives toward Our Employees
Since 2015, society has changed drastically in pursuit of becoming a “CO2and disparity free society.” If we cannot procure resourceful personnel
that can respond to this change, there is a possibility that we might not
be able to continue producing corporate value. Recognizing this fact, we
will take initiatives toward the procurement and nurturing of personnel.

● [Employment and employment relationship]
In order to reduce long working hours, continued reviewing tasks assigned to its
employees.
● [Human development and training in the workplace]Continued providing its employees with educational programs such as e-learning.
● [Conditions of work and social protection]
Proceeded with the easing of the conditions for the systems for offering annual
paid leaves by the hour and accumulating holidays, and staggered shifts forchild rearing and nursing care.
● [Social dialogue]
Continued having dialogue with labor unions, etc.
● [Health and safety at work]
Under the Business Continuity Plan (BCP), continued inspection, correction, andimprovement, including disaster drills.

● Initiatives toward the Environment
The change in society is even more drastic in terms of environmental
change. In order to curb the effects of our business activities on theenvironment, we will revise our products and our manufacturing anddistribution processes and take initiatives to reduce the burden on theenvironment.

● [Climate change mitigation and adaptation]
Continued propelling a modal shift and hybridization of company cars.
● [Prevention of pollution]
Continued reducing waste at each and every plant.
● [Sustainable resource use]
Continued managing air conditioning at each department and performing
educational activities through information monitors, etc.

Corporate Data

Company Name

Common StockGroup Companies

S.T. CORPORATION¥7,065,500,000

S.T. Trading Co., Ltd.

Headquarters

Employees (As of March 31, 2019)

S.T. MYCOAL CO., LTD.

4-10, Shimo-ochiai 1-chome, Shinjuku-ku,

Consolidated: 948

S.T. (Thailand) Co., Ltd.

Tokyo 161-8540, Japan

Non-consolidated: 435

Family Glove Co., Ltd. (Taiwan)

Telephone: +81-3-3367-6111(Excluding part-time and temporary employees)

S.T. Korea Corporation (South Korea)

S.T. Business Support Co., Ltd.

Japan Aroma Laboratory Co., Ltd.
Establishment
August 31, 1948

Listed Stock Exchange

Shaldan (Thailand) Co., Ltd.

Tokyo Stock Exchange, First Section

Fiscal Year-end
March 31

Overview of Communication Tools

Creating Corporate Value Report(Japanese edition / English edition)

Highlights

Overview

An easy-to-understand annual report (pdf) on activities
aimed at creating corporate value for all stakeholders.

Corporate Information Website

Corporate Profile(Japanese site / English site)(Japanese edition / English edition)

In addition to introducing each of theCompany publications, the Corporate
Information Website is a comprehensive toolthat provides the latest information and an
overview of S.T. CORPORATION to all
stakeholders.

Investors’ Guide(Japanese and English compilation)

A compilation and comprehensive tool
overviewing the Company as a whole ina Data Book (pdf) format for the
benefit of investors.

Creating Corporate Value Report
Financial Section

Specialized data

(English edition)

Compilation Data Book (pdf) and separate
supplement containing financial data for themost recent fiscal year.

Communication tools are available within the Library section of the Company’s Corporation Information Website.

13

4-10, Shimo-ochiai 1-chome, Shinjuku-ku, Tokyo 161-8540, Japan
https://www.st-c.co.jp/english/company/
Printed in Japan, August 2019