Report 2023
Fiscal 2022 (the year ended March 31, 2023)

CHORI CO., LTD.
Tokyo Head Office	2-15-3, Konan, Minato-ku, Tokyo 108-6216, Japan
Tel: +81-3-5781-6200
Osaka Head Office	1-7-3, Awajimachi, Chuo-ku, Osaka 540-8603, Japan
Tel: +81-6-6228-5000
URL :		

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

Printed in Japan
Issued in November 2023

Contents

Corporate Slogan

Making your dreams
come true

Overview of Chori
3 President’s Message
7 Financial Strategy
11	New Medium-Term Management Plan:
Chori Innovation Plan 2025
15	CARAT: A Companywide BusinessTransformation Project Based on the
Renewal of Our Mission-Critical System
17	Chori’s Strengths

Overview and Strategies by
Business Segment
23 Overview

Corporate Philosophy

Editorial Policy
The Tsumugu Report was issued to provide all readers, including
shareholders, investors, and all other stakeholders, with information
on Chori’s management vision, corporate philosophy, strengths,
and businesses in order to broaden their understanding of theCompany. The report also functions as a tool for engaging in new
dialogues with stakeholders. The Tsumugu Report is issued inboth Japanese and English, and it is also available for viewing on
our corporate website.

25	Fibers, Textiles, and Garments Business
29 Chemicals Business
33 Machinery BusinessSpecial Feature
37	Branding in the Fibers, Textiles, andGarments Business

As members of the global community, we will work for the betterment of society.

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

We take pride in being fair and sincere, and in continuing to offer superb service inorder to deliver superior customer satisfaction.

Regarding the Name of the Report
Since its establishment as a raw silk wholesaler in 1861,
Chori has been weaving (“Tsumugu”) a variety of connections andbonds with stakeholders in the same manner as it has been weaving silk over the years.
The report’s name “Tsumugu Report” reflects our corporate stancethat has remained intact since our founding. With a track record spanning more than 160 years,
Chori will continue to remain a company that weaves dreams into reality
by cherishing its relationships with all stakeholders.

1

CHORI CO., LTD.

Scope of Reporting
CHORI CO., LTD. and its Group companies; however, certain
information applies only to CHORI CO., LTD.

Management Foundation Tailoredto Sustainable Growth
41 Chori’s Sustainability Initiatives
		43 Environment

Period of Reporting
The information contained in this report is primarily for fiscal 2022
(April 1, 2022 to March 31, 2023); however, certain sections of
the report contain information on fiscal 2023 and thereafter.

		48 Society

Cautionary Notice regarding Forward-Looking Statements
Performance forecasts and other forward-looking statements
contained in this report are based on Chori’s judgments andinformation available as of the issuance of this report and are
subject to change due to a variety of factors. Accordingly, suchforward-looking statements are not guarantees of any achievementof targets or forecasts or future performance. In addition, theinformation contained in this report may change without priornotice. For this reason, we hope that readers make their own
judgment when utilizing the information and materials contained inthis report with the use of other information that may be available.
Chori does not take responsibility for any losses or damages
incurred through the use of this report.

65	Directors, Audit & Supervisory

55 Corporate Governance62	Roundtable Discussion with
Outside Directors
Committee Members, and Executive
Officers

Data Section
67 11-Year Financial Summary
69 Chori’s Global Network
71 Corporate Information

Tsumugu Report 2023

2

Overview of Chori

President’s Message

Top Message

As a company that has continued to grow by adapting to the changing
times, Chori will strive to further demonstrate its uniquenesswhile building a foundation for the next generation.

Chori’s Uniqueness and Mission

Kazuo Sakihama
President, CEO & COO
President and Executive Officer

3

CHORI CO., LTD.

Chori is a company with a long history that dates back morethan 160 years. However, we are also a relatively young
company in the sense that in 2003 we made a fresh start as arenewed Chori with the establishment of our Reborn
Management Plan. In the past, Chori branched out into a wide
range of business fields by accumulating significant debt
through bank loans but failed to adapt to the changing times,
resulting in substantial losses and succumbing to a financial
crisis. From there, we changed our management approach to
one that focuses on asset efficiency by selecting and concentrating on highly profitable businesses where we could demonstrate our expertise, leading to the establishment of the Fibers,
Textiles, and Garments, Chemicals, and Machinery businesses
that exist today. Under our Reborn Management Plan, we
continued to steadily improve our business results year afteryear. As a result, in fiscal 2022 we posted net sales of ¥329.4
billion and ordinary profit of ¥12.4 billion and, as we did in fiscal
2021, achieved our highest results ever for both ordinary profit
and net profit attributable to owners of parent. In addition, ourROA (ordinary profit basis), which demonstrates a company’s
earnings power, improved to 9.0% at the end of fiscal 2022.
The main reason behind these achievements is the efforts ofour employees, who have boldly taken on the challenge ofdeveloping new markets and expanding existing ones byleveraging our respective global networks in the Fibers, Textiles,
and Garments, Chemicals, and Machinery businesses. Despite
being a small yet highly skilled group, we have been able toidentify growth areas in each business and expand thesebusinesses by capitalizing on every business opportunity.
There have often been claims that trading companies are
no longer necessary in times of change, such as during theperiod of high economic growth in Japan, when we saw
substantial improvements in the business performances ofautomobile and consumer electronics manufacturers, and the1990s, when the internet became widely used by the generalpublic. However, trading companies have continued to exist
and improve their business performances. Although the global
supply chain was hit hard by COVID-19 in 2020, Chori continued to supply the products that were needed by customers
without delay while meeting their demands by adding value thatwas unique to Chori. Coincidentally, the COVID-19 pandemic
has reaffirmed Chori’s role and mission as a company, and theconfidence levels of our employees have increased as a resultof our experience in continuing to respond to customer needsin line with our mission of ensuring that our products areconstantly delivered. Chori has adapted to the changes of eachgeneration throughout its long history. Going forward, we willcontinue to draw on this responsiveness and flexibility to further
expand our business in the next generation as a multifaceted
specialized trading company.

Review of Chori Innovation Plan 2022
In fiscal 2022, the final year of Chori Innovation Plan 2022, thefuture of the economy in Japan and the rest of the world
remained uncertain. Despite this, by demonstrating the strengthsof Chori’s business foundation, we were able to conclude ourprevious medium-term management plan by increasing revenuesin every business segment and achieving all of our quantitative
targets. In the Fibers, Textiles, and Garments Business, thebusiness environment remained challenging from fiscal 2020 tothe first half of fiscal 2022 due to the sluggish apparel market in
Japan stemming from the effects of COVID-19. In light of thisenvironment, we set out to further strengthen our businessfoundation by reorganizing the Textile Division into a single
division, establishing a global business foundation, and optimizing
our business portfolio, which led to an increase in ordinary profit
over the three-year period of the previous plan. As we began to
finally see improvements in the business environment from thesecond half of fiscal 2022, such as the increasing demand for
SDG-oriented products, we were able to expand our businessby distinguishing ourselves from the competition with highperformance products. As a result, our profit level in the final yearof Chori Innovation Plan 2022 came within reach of our initial
targets. In the Chemicals Business, we were able to maintain ahigh profit level by riding the wave of favorable market conditions
from the second quarter of fiscal 2020, further enhancing ourexisting businesses, and building a new supply chain. Meanwhile,
although the business has lost some momentum since the second
half of fiscal 2022 due to sluggish demand overall and deteriorating market conditions, we acknowledge the fact that we were able
to steadily raise our profitability to pre-COVID-19 levels. We willcontinue to carry out business investments and a variety of othermeasures to proceed even further in our transition to a highly
profitable business model. In the Machinery Business, we are
expanding business in Europe and Central and South America,
where demand for automobiles is on the rise. On the other hand,

Tsumugu Report 2023

4

Overview of Chori

President’s Message

despite an increase in revenue, we incurred an ordinary loss of¥1.3 billion in fiscal 2022 due to an additional provision ofallowance for doubtful accounts that was recorded for thedelay in collecting receivables from business partners in the
United Arab Emirates (UAE). We will do our utmost to collectthese receivables and, as a measure to prevent recurrence, wewill pay due consideration to country risk when making business
investments as well as strengthen our risk management system.
From the viewpoint of strengthening our human resource
development structure, we made substantial upgrades to ourhuman resource system and worked to establish evaluation criteria
and a remuneration system that enables employees to work witha sense of satisfaction. We will continue to make significant
changes in order to remain a company that is selected by highly
talented individuals in both our new-graduate and mid-career hires.

Awareness of the Business Environment
In China, where Chori has been building a business foundation
over many years and established a robust supply chain, thezero-COVID policy was eased significantly from December
2022. As a result, domestic consumption in China was
expected to increase from the latter part of January 2023, thetime of Chinese New Year, but demand has not grown to thelevel we had anticipated. Globally, demand for consumer-related
products remains sluggish due to the effects of inflation. The
supply–demand balance in China is in disarray, and we areclosely monitoring the deteriorating market conditions ofchemicals and other products.
While paying close attention to global divides centered on thedecoupling between the United States and China, we will continue
to take measures to establish a stable supply chain in the ASEAN
region and other Asian countries, particularly in India, and respondto diversifying needs, including risk aversion. Meanwhile, we willcontinue to focus on our business in China, where its factories andmarket have a significant impact on the global economy, whileremaining keenly aware of the risks and expand our businessglobally centered on Tokyo, Osaka, and Shanghai.

VISION2030 and Basic Strategies of Chori
Innovation Plan 2025
VISION2030 has been newly formulated as a vision of the company
we aspire to be by 2030. In order to achieve sustainablegrowth, we at Chori must constantly bear in mind the importanceof the health of our employees, who serve as the foundation of
our business management; our coexistence with society; andthe innovation of our business by adapting to changing times.
To this end, we further clarified our vision of the company weaspire to be based on the three themes of “sustainability,”“well-being,” and “innovation” ( see “VISION2030” on page 12).
While bearing these themes in mind, we will strengthen thoseareas where we are lacking and further refine those where weare making progress in our efforts. In terms of quantitative targets,

5

CHORI CO., LTD.

we aim to achieve net sales of ¥400.0 billion and net profit before
income taxes and other adjustments of ¥20.0 billion in fiscal 2030.
In April 2023, we formulated our new medium-term
management plan Chori Innovation Plan 2025. Chori Innovation
Plan 2025 represents the final stage of Chori Innovation Plan,
under which we proceeded with measures to consistently
deliver ordinary profit at the ¥10.0 billion level since fiscal 2017.
Under our previous medium-term management plan, Chori
Innovation Plan 2022, we took measures to “promote consolidated
management centered on our global business” and improved
our business performance starting with our overseas operations.
We will continue this same strategy as one of our basic strategies
under Chori Innovation Plan 2025 while diversifying our supply
chain and adapting to changing markets. Under the basic
strategy of “develop sustainable businesses that adapt quickly
to the changing business environment,” we will develop suppliers
to meet diversifying customer needs and carry out business
investments and M&As, which were put on hold during the
COVID-19 era, in order to develop sustainable businesses.
Although the lithium compound production project in Chile,which was postponed due to COVID-19, is still in the processof being completed, the direction of the project should be set
by the end of fiscal 2023. In business fields that Chori candevelop on its own initiative, we intend to make concrete plans
to carry out business investments in growth areas, such as thehealth and environmental fields.
We will also “promote ESG management” as one of ourbasic strategies under Chori Innovation Plan 2025. From anenvironmental point of view, the Chori Group aims to becomecarbon neutral by 2050 and began disclosing information basedon the recommendations of the Task Force on Climate-related
Financial Disclosures (TCFD) in June 2022. Under Chori Innovation
Plan 2025, we will refine our scenario analyses, including the
1.5ºC scenario, and continue to calculate results for Scope 1,
Scope 2, and Scope 3 emissions. Chori will also play a key role
in resolving environmental issues through its business activities.
In the Fibers, Textiles, and Garments Business, we will continue
to focus on our BLUE CHAINTM initiatives and aim to achievesustainability throughout the supply chain, while in the Chemicals
Business we will expand our portfolio of SDG-oriented products,
such as biodegradable resins and plant-based foods, with theaim of increasing our sales of SDG-oriented products to ¥50.0
billion (two and a half times fiscal 2022 levels) in fiscal 2025.
To promote the social aspects of our ESG management,
we will strengthen our human resource initiatives. Specifically,
we will increase employee engagement and promote healthmanagement so that our employees can engage in their daily
work by gaining a sense of personal and professional growth
and a sense of pride and accomplishment. For Chori to continue
to grow into the future, it is especially important that we secureand develop highly skilled personnel. By recruiting talented
individuals with the ability to make an immediate impact andprofessionals from various backgrounds for both new-graduate
and mid-career positions, Chori will continue to expand thescope of its business. In addition, the Company will invest in
redeveloping its human resource development system, such as

by enhancing the effectiveness of its training programs. Fromthe viewpoint of respect for human rights, we conduct CSRbased procurement surveys regularly as a part of our measures
to establish a sustainable supply chain. In the future, we willconsider conducting human rights due diligence while expanding the scale of our measures to promote human rights.
In terms of the governance aspect of its ESG management,
Chori will strengthen its measures against country and geopolitical risks, particularly in developing countries, and adopt
return on invested capital (ROIC) as a management indicatorfrom fiscal 2023 to proceed further ahead with a management
approach that focuses on the cost of capital. Moreover, we willcontinue to diversify our management perspectives by placing
greater emphasis on the lack of women in director and othermanagement positions as an issue as well as appointing more
women and taking other measures to increase the diversity of
our management team.
Our digital transformation (DX) strategy will serve as thefoundation for the three basic strategies I discussed previously.
In April 2022, we launched the Companywide business transformation project Chori Accelerate Renovation Achievement
Transformation (CARAT), in which we aim to begin full-scale
operation of SAP in fiscal 2025 by moving on from our proprietarysystem that has been used for more than 20 years. Although
this transformation will entail a lot of work, the adoption of SAP
will allow us to standardize operations and thereby improve
efficiency as well as accumulate data, thus strengthening oursales competitiveness through the use of data. In order torealize flexible management that can adapt to change, we will
forge ahead with the implementation of SAP and develop aframework for Chori’s transformation into a new organization.

Looking Ahead to Chori’s Future Growth
In the eight short years since I became the Company’s president
and CEO in 2015, society has undergone significant changes. In
recent years, there has been an increasing focus on climatechange and the trend toward carbon neutrality, which stems
from the commitment to mitigate climate change, as a megatrend.
In order to achieve its CO2 reduction targets by 2030 and carbon
neutrality by 2050, Chori must adapt to a new society that is
influenced by the SDGs, gender equality, rapidly advancing
digitalization, the use of AI, and other factors. With the likelihoodof further growth in demand for SDG-oriented products andsignificant changes in the manufacturing industry, we will dowhat is necessary to adapt to these changes while aiming toachieve the sustainable growth of our business, particularly inthe thriving region of Asia. In the 1970s and 1980s, Choriestablished local subsidiaries in Singapore, Thailand, andMalaysia as it embarked on the Southeast Asian market fromearly on. In 2016, we established a local subsidiary in Vietnam,
where the sewing factory of STX Co., Ltd., which became aconsolidated subsidiary in fiscal 2021, has resumed full-scale
operations upon recovering from the effects of COVID-19. We
will harness the strengths of these business sites to further
expand our business in the ASEAN region, where the GDP is
expected to become double the size of Japan by fiscal 2030.
In India, a country that is experiencing remarkable growth, wehave already dispatched a representative from Japan and willcontinue to develop a foundation for further growth.
In the 20 years since the introduction of its Reborn
Management Plan, Chori has grown to what it is today byaddressing the various changes and needs of society andcontinuing to evolve as a company. To continue to achievesustainable growth in the future, we will aggressively implement
new changes, such as restructuring the organization bypromoting DX and expanding and utilizing our human capital,
which includes promoting more active roles for women.
Meanwhile, what will remain unchanged 20 and 30 years fromnow is Chori’s DNA. We will continue to respond to the needsof our customers through not only our trading activities but also
our provision of high-value-added products while continuing to
make our customers’ dreams come true by leveraging our
expertise and responding meticulously to their needs andpursuing our own dreams in the process. This will remain a partof our DNA in the years to come. Our customers have highhopes for Chori’s ability to take on new and difficult challenges.
While responding to these expectations, we will turn thechanges taking place in our world into business opportunities
and build a foundation for our achievement of VISION2030.

Kazuo Sakihama
President, CEO & COO
President and Executive Officer

Tsumugu Report 2023

6

Overview of Chori

Financial Strategy

Basic Strategies of Chori Innovation Plan 2025
We will implement the basic strategies ofChori Innovation Plan 2025 andbuild a foundation for Chori’s next
generation of growth.
Tatsuyuki Sakoda
Director, Managing Executive Officer
General Manager of Corporate Planning Division

Review of Fiscal 2022 Results
In fiscal 2022, the final year of Chori Innovation Plan 2022, werecorded net sales of ¥329.4 billion, ordinary profit of ¥12.4
billion, ROA (ordinary profit basis) of 9.0%, and ROE (net profit*
basis) of 11.8%, achieving all of the quantitative targets we had
declared in our previous plan. Moreover, as it did in fiscal 2021,
the Company achieved its highest results ever for both ordinary
profit and net profit attributable to owners of parent. We credit
this achievement to our efforts to “promote consolidated
management centered on our global business,” which has
strengthened cooperation with business sites overseas throughour business activities. Although Chori Innovation Plan 2022
turned out to be our medium-term management plan for the
COVID-19 era, we believe we were able to harness Chori’s
ability to respond positively to changes in market conditions,such as global supply chain disruptions and soaring raw
material costs, as well as its market expertise, which is a defining
strength of the Company. In addition, the M&A strategy we arepromoting under our Chori Innovation Plan has been a key
factor in the steady growth of our business performance thus far.
Meanwhile, in the Machinery Business, an additional
provision of allowance for doubtful accounts in the amount of¥1.7 billion was recorded in fiscal 2022 due to a delay incollecting receivables from a business partner in the UAE. While
we had been expanding our business to Nigeria, which boasts
the largest population and GDP in Africa, the supply chain
disruptions arising from the effects of COVID-19 and thedeclining oil production resulted in a lack of foreign currency inthe country, which led to the delay in collecting receivables. In
addition, a further provision was recorded due to the ongoing
restrictions on the transfer of funds from Nigeria, raising the
cumulative amount of provision of allowance for doubtful
accounts to ¥2.4 billion. The Company will continue to makeevery effort to collect these receivables, for which theaccounting process has already been completed. Under Chori
Innovation Plan 2025, we will take all the necessary measures
to prevent a recurrence of such situations by keeping a close
eye on not only the trends and developments of our business
partners and markets but also the state of the countries inwhich we operate and funding streams while continuing to
expand our business.

* Net profit attributable to owners of parent

Consolidated Financial Results and Rate of Achievement of Chori Innovation Plan 2022 Targets 
FY2021

7

FY2022Difference(Billions of yen)

FY2022 Plan

Achievement Rate

Net Sales

284.1

329.4

+45.3

280.0

117.6%

Gross Profit

30.7

37.1

+6.4

—

—

Selling, General and Administrative Expenses

21.3

24.4

+3.1

—

—

Operating Profit

9.3

12.7

+3.3

10.8

117.2%

Ordinary Profit

10.3

12.4

+2.2

11.0

113.1%Net Profit Attributable to Owners of Parent

6.8

8.1

+1.3

7.3

111.3%CHORI CO., LTD.

Chori Innovation Plan 2025 is the final stage of our Chori
Innovation Plan, which we introduced in fiscal 2017. Under the Chori
Innovation Plan, we have increased profits beyond expectations
and gained confidence in our ability to improve profitability. Basedon this ability to continue to generate earnings, we established
VISION2030, our vision as a company that will continue to achievesustainable growth into the future by striking the right balance
between the achievement of “sustainability,” “well-being,” and“innovation.” While continuing to “promote consolidated
management centered on our global business” as well as its otherbasic strategies, Chori will draw on its ability to adapt to changes
that was put to the test during the pandemic and, in the process,aim to expand its business globally in each segment. Meanwhile,
in order to continue to grow over the medium to long term, it isimperative that we take our business to new heights. To ensurethat Chori continues to achieve sustainable growth into the future,
one of the major themes of Chori Innovation Plan 2025 is toestablish the foundation that it still lacks to this day. Specifically,
we will focus on strengthening our governance structure as acompany listed on the Prime Market of the Tokyo Stock Exchange
and coexisting with local communities and society through ourbusiness activities. Moreover, in April 2022 we launched CARAT
to proceed with our Companywide business transformation,
and we aim to begin full-scale operations of our mission-criticalsystem in fiscal 2025. Through the standardization of our business
operations and the promotion of data-driven management, we
will develop a DX management structure that will underpin the
future of our business.
Meanwhile, we are concerned about the risks that theconflict between Russia and Ukraine and the polarization of the

global economy will have on our ability to achieve our fiscal
2025 targets. Although these risks currently do not have asignificant impact on Chori’s supply chain, many of ourbusiness partners are developing systems that do not rely on
specific countries as a measure to ensure business continuity.
In response, Chori is assigning more representatives fromJapan to ASEAN countries and developing a new supply chain.
We will continue to expand our business in key regions bycapitalizing on the business opportunities presented bychanges in market and global trends.
During the times of hardship up until the early 2000s, wepoured our heart and soul into reviewing and restructuring ourbusiness portfolio. By selecting and concentrating on certain
business areas, we formed the current Fibers, Textiles, andGarments, Chemicals, and Machinery businesses, which havecontinued to grow ever since as highly profitable businesses. In
this sense, we believe our current business portfolio is strong, andwe will strive to optimize our business portfolio by monitoring the
profitability of each segment. We will also continue to aggressively
engage in M&As to spur the further growth of our businesses.

Fiscal 2023 Performance Forecast (Billions of yen)

FY2023(Forecast)Medium-Term
Management Plan
(Final Year Target)

Nat Sales

340.0

Net Profit before Income Taxes

14.0

360.0
16.0

Net Profit Attributable to Owners of Parent

9.4

11.0

ROA (Net Profit Basis)—

7% or more

ROE (Net Profit Basis)—

12% or more

ROIC

—

Approx. 10%

Financial Position
As a result of increases in cash and deposits and tradereceivables, total assets amounted to ¥143.2 billion and theequity ratio was 50.4% as of the end of fiscal 2022. Although
our aim is to continue to maintain our equity ratio at around
50% over the medium to long term, we plan to carry out
business investments and M&As, which we were forced to
discontinue during COVID-19.
In terms of balance sheet management, in fiscal 2023 weadopted ROIC as a new management indicator in each businesssegment. After overcoming years of hardship, in 2003 weformulated our Reborn Management Plan, under which we
promoted structural reforms to develop a more robust
organizational structure by focusing on highly profitablebusiness areas. Accordingly, in the past, each business segment
promoted a management approach that placed emphasis on
capital efficiency. By adopting ROIC as a management indicator
once again, we will develop a system that enables our businesssegments to invest capital in more profitable business areas
while focusing on Chori’s medium- to long-term growth.

Financial Soundness(Billions of yen)
150.0
100.0

(%)

143.2

134.1

75

48.5

50.4

65.1

72.2

25

50.0
0

(6.9)

(13.9)

Mar. 31, 2022

Mar. 31, 2023

Total assets
Total equity
Equity-to-asset ratio

Net interest-bearing debt

–50.0

50

0

Profitability / Capital Efficiency
ROA (Ordinary Profit Basis)Mar. 31, 2022

Mar. 31, 2023

Difference

8.4%

9.0%

+0.6ptROA (Net Profit Basis)

5.6%

5.9%

+0.3ptROE (Net Profit Basis)

11.0%

11.8%

+0.8ptTsumugu Report 2023

8

Overview of Chori

Reference Material

Financial Strategy

Reasons for Changes in Ordinary Profit and Trends in Ordinary Profit

Cash Allocation
During the three-year period of Chori Innovation Plan 2025, we
expect to achieve net profit after taxes of approximately ¥30.0
billion. We plan to distribute around ¥10.0 billion of this amountas dividends to shareholders and allocate the remaining ¥20.0
billion to growth investments. To ensure that our shareholders
feel secure about investing in Chori’s shares, our dividend
policy calls for a consolidated dividend payout ratio of at least
30% and a dividend on equity ratio (DOE) of 3.5% or more fromfiscal 2023. In terms of investments, as described earlier, theCompany will focus on business investments that were
postponed as a result of COVID-19 and allocate resources into
its human resources, who are the backbone of its businessactivities, as well as its DX efforts. For business investments
and M&As, we will concentrate on the health and environmental
fields, where demand has continued to grow in recent years.
Specifically, we will identify the areas where we must expand
our business and keep our eyes open for global business
opportunities to ensure that Chori continues to grow over the
medium to long term. Also, given that we are a trading
company without manufacturing facilities, our human resources
are all the more important. Chori will increase investments andstrengthen its management foundation to secure and develop
highly skilled personnel. Moreover, with respect to intellectual

property, the Company is devoting more attention to its branding
strategies, particularly in the Fibers, Textiles, and Garments
Business, and registering original brand names as trademarks.
We have also obtained several patents on technologies
developed together with our business partners and customers.
We will continue to enhance awareness of Chori’s original
products and our ongoing BLUE CHAINTM initiatives while
promoting investments to protect intellectual property rights.

Cash Flows 

+1.6

18.0

Record-high profit

–3.1

+4.9
–1.2
12.4
12.0

10.3

(Billions of yen)
FY2021

FY2022Difference

Cash Flows from Operating Activities

(2.3)

9.6

+11.9

Cash Flows from Investing Activities

0.2

(0.3)

–0.5

Cash Flows from Financing Activities

(4.0)

(3.1)

+0.9

Effect of Exchange Rate Change on
Cash and Cash Equivalents

0.6

0.6

+0.0

Total Cash Flows

(5.6)

6.8

+12.4

Cash and Cash Equivalents at End
of Period

12.0

18.9

+6.8

6.0

0

Toward Chori’s Medium- to Long-Term Growth
While Chori is a company with an extensive track record thatspans more than 160 years, it is also a relatively young
company in the sense that it made a fresh start in 2003 withthe establishment of its Reborn Management Plan. In fiscal
2023, 20 years after the introduction of this plan, we introduced
Chori Innovation Plan 2025 to serve as the final stage of ourdevelopment of a foundation for the next stage of growth. In
addition to achieving its coefficient target in fiscal 2023 by
expanding its global business, Chori will forge ahead tobecome a company that continues to coexist with society
through the contributions of its business activities.

Reasons for Changes in Ordinary Profit(Billions of yen)

The Company has expanded its business to date byextending its efforts beyond trading activities and continuing todevelop the Fibers, Textiles, and Garments, Chemicals, andMachinery businesses. While continuing to grow in the years
ahead, Chori will seek to further differentiate itself from thecompetition by refining its uniqueness as a company andensuring that this vibrant uniqueness leaves an impression on
all of its stakeholders.

FY2021

Effect ofincreased sales

Increased profit ratio

Increase in selling,
general and administrative
expenses

Nonoperating profit orloss and others

FY2022

Trends in Business Performance

(Billions of yen)
FY2021

FY2022Full-year
total

Full-year
total

1Q

2Q

3Q

4Q

284.1

81.9

86.6

86.9

74.0

329.4

2.0

9.3

3.2

3.6

4.2

1.7

12.7

2.9

2.1

10.3

3.7

3.7

3.6

1.4

12.4

1.9

1.0

6.8

2.3

2.5

2.8

0.6

8.1

1Q

2Q

3Q

4Q

Net Sales

60.7

69.4

75.8

78.3

Operating Profit

2.6

2.3

2.6

Ordinary Profit

2.9

2.4

Net Profit Attributable to Owners of Parent

2.3

1.7

Market Trends

Foreign Exchange Rate

Oil Prices(Yen)(Yen)(US$/barrel)(US$/ton)

21

14

16.3

16.9

16.5

112.2

106.2

111.0

15.3
108.8

16.8
110.7

19.3
122.4

19.4

150

120

100

80

50

40

100.3

133.5

7

64.9
50.6
470.1

579.1

552.9

75.7

59.2

60.1

1,500

1,000

1,009.2

20.5

677.8

594.3

500

294.8
0

2017

2018

RMB (left scale)

2019

2020

USD (right scale)Note: As of March 31
Source: Rate as of the Company’s term-end

9

CHORI CO., LTD.

2021

2022

2023 (CY)

0

0

2017

2018

2019

New York crude oil (left scale)

2020

2021

2022

2023 (CY) 0

Naphtha (imports) (right scale)Note: N ew York crude oil is as of March 31; Naphtha is single-month average for March
Source: Company research

Tsumugu Report 2023

10

Overview of Chori

Becoming a corporate group that continues to evolve andchange on a global scale, underpinned by its exceptional
capabilities and expertise

We aim to achieve our key performance indicators (KPIs) by transforming
our business and management structures through the promotion of digitaltransformation (DX) while implementing our basic strategies of “promoteconsolidated management centered on our global business,” “develop
sustainable businesses that adapt quickly to the changing businessenvironment,” and “promote ESG management.”

New Medium-Term Management Plan:

Chori Innovation Plan 2025

Net sales (target)
 et profit before income taxes (target)
N

360.0
340.0

330.0 329.4
311.7
280.0

300.0
8.7

7.5

10.3
284.1

8.7

Innovation
A company that can constantly
generate higher levels of profit bydeveloping new businesses throughcontinuous innovation andinvestment in growth areas.

Chori Innovation Plan
200.0 216.2

(%)

9.0
240.0

7.0

(%)

ROA
(Net Profit Basis) (%)—

7% or more

ROE
(Net Profit Basis) (%)—

12% or more

4.7

6.9
9.7

7.3
10.7

7.5
11.0

4.1
2.2

8.4
11.0

9.0

FY2023(Targets)

11.8

FY2025(Targets)

Chori Innovation Plan 2025
FY2017FY2018FY2019Chori Innovation Plan 2019

FY2020

FY2021

FY2022

The final stage of consistently delivering ordinary profit

CIP2022

CIP2025

Priority Measures and KPIs

FY2016FY2019FY2022

FY2025

Consolidated Management
Centered on Global Business Overseas subsidiaries,
trends in ordinary profit¥1.2 billion¥1.9 billion¥3.2 billion¥4.5 billion

M&A Effect*1
Subsidiaries through M&A¥0.3 billion

ASADA U CO., LTD.
and KOZAKURASHOKAI CO., LTD.

¥0.6 billion¥2.5 billion
STX Co., Ltd.

¥4.0 billion

30% or more

Shareholder Returns
Around 20%
Trends in dividend payout ratio

25% or

30% ormore

more

Trends in Ordinary Profit¥7.0 billion¥8.7 billion ¥12.4 billion¥16.0 billion

Trends in Net Profit before
Income Taxes¥7.2 billion¥9.3 billion ¥12.8 billion¥16.0 billion

DOE of 3.5%
or more*1 Ordinary profit of M&A subsidiaries, amortization of goodwill, etc.

Note: Effective fiscal 2020, the Company has adopted the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29) and the Implementation Guidance on
Accounting Standard for Revenue Recognition (ASBJ Guidance No. 30, issued on March 30, 2018).

Review of Chori Innovation Plan 2022 

CIP2019

A New Stage

Chori Innovation Plan 2022

of ¥10.0 billion or more

Chori Innovation Plan 2025 KPIs 

In fiscal 2022, the final year of Chori Innovation Plan 2022, we posted our highest results ever for ordinary profit, at ¥12.4 billion, andnet profit attributable to owners of parent, at ¥8.1 billion, and achieved all our numerical targets of the medium-term management
plan. We reached the ¥10.0 billion level for ordinary profit two years in a row, in fiscal 2021 and fiscal 2022, despite the recording ofprovision of allowance for doubtful accounts in fiscal 2020 in relation to a chemical manufacturing group in China. As a result, weestablished a foundation for our new stage of consistently delivering ordinary profit at the ¥10.0 billion level.

Financial Targets

Non-Financial Targets
FY2025 plan

Net Sales¥360.0 billion

Net Profit before Income Taxes¥16.0 billion

Net Profit Attributable to Owners of Parent¥11.0 billion

Fibers,Textiles, andGarments
Business

 e moved ahead with the creation of synergies with STX Co., Ltd. and bolstered our collective strength in the Fibers, Textiles, and Garments
W
Business by virtue of our BLUE CHAINTM concept (a new concept for all aspects of our sustainability) and the expansion of our global supply
chain management.

Chemicals
Business e accelerated our transformation to a business model based on business investments by strengthening our supply chain, making additions toW
our line of new products, reinforcing and promoting business investments and new product development, and expanding our business scale bystrengthening subsidiaries and engaging in M&As.

ROA (Net Profit*2 Basis)

7% or more

ROE (Net Profit*2 Basis)

12% or more

MachineryBusiness e proceeded with the development of markets in the four regions of Mexico and Central and South America, the Middle East and Africa, Southeast
W
Asia, and Europe, as well as India. Moreover, in light of geopolitical and country risks, such as COVID-19 and the conflict between Russia and Ukraine,
we dedicated our efforts to the automobile and automobile-related businesses and focused on our business in Europe and Central America.

ROIC*3

Approx. 10% • Expansion of business revenue• Risk management¥20.0 billion

11.0
280.0

8.5

7.2

CHORI CO., LTD.

A company that contributes tothe well-being of each stakeholder
and provides employees with arewarding and enjoyable
workplace environment.

14.0

329.4

7.8

11

Net Profit before
Income Taxes

12.4

356.5

¥400.0 billion

Net Sales

16.0(Billions of yen)

Ongoing challenges

VISION2030:
The Company We
Aspire to Be

Well-Being(Billions of yen)

Net sales (target)
Net sales (result)
Ordinary profit (target)
Ordinary profit (result)

ROE(Net Profit Basis)

A company that can coexist inharmony with society andcontribute to the realization ofits sustainable andprosperous future.

For more details on our basic strategies, please refer to pages 13 to 14.

In April 2023, we established Chori Innovation Plan 2025, our new medium-term management plan covering the three-year
period from fiscal 2023 to fiscal 2025. Chori Innovation Plan 2025 is a continuation of the Chori Innovation Plan, which we beganpromoting in fiscal 2017, and is the final stage of our commitment to achieving VISION2030. The Chori Group will strive tofurther increase corporate value based on its basic policy of becoming a corporate group that continues to evolve and change
on a global scale, underpinned by its outstanding capabilities and expertise.

ROA(Ordinary Profit Basis)

Sustainability• Sustainability response• Management structure suited to the new stage (human capital and DX)*2 Net profit attributable to owners of parent*3 R
 OIC (return on invested capital) = Operating profit after income taxes /(Equity + Interest-bearing debt)• Expand our line of environment-friendly SDG-oriented products• Increase the percentage of women among career-track hires
and employees who have transferred to career-track positions
to over 30%• Increase the percentage of male employees taking childcareleave• Increase the percentage of women in management positions• Continue to acquire certification as an outstanding organization
under the Ministry of Economy, Trade and Industry’s CertifiedHealth & Productivity Management Outstanding Organizations
Recognition Program• Invest approximately ¥5.0 billion in DX measures, including
the adoption of SAP software

Tsumugu Report 2023

12

Overview of Chori

The Basic Strategies ofChori Innovation Plan 2025
Promote ESG Management

Chori will press ahead with the following three basic strategies in its bid to become a corporate group that continues to evolveon a global scale, underpinned by its exceptional capabilities and expertise, while addressing the drastically changing social
environment.

Climate Change
We are proceeding with a variety of measures based on the TCFD recommendations to ensure that the Chori Group
becomes carbon neutral by 2050.

Promote Consolidated Management Centered on Our Global Business

Category

Chori will strengthen the operating bases of its major overseas business sites by implementing its mission-critical system and enhancing
its overseas workforce while enhancing the profitability of its overseas operations. In addition, by reviewing and refining our businessportfolio and promoting integrated operations as a specialized company through the leveraging of Group synergy, we will strive todevelop next-generation products and expand our line of existing products.

Specialized committees to study and promote specific measures tobe takenStrategy

Analyzed under 2°C and 4°C scenarios

Brush up scenario analysis, including 1.5°C scenario

RiskManagement

Organized risks related to climate change

Promote and strengthen establishment throughout the GroupFY2020 emissions: 1,705 (t-CO2) (Scope 1, 2, 3 (Category 6:
Business travel, 7: Employee commuting)). Small amount ofemissions. Ongoing regular inspections

Continue calculation and disclosure of Scope 1, 2, and 3 results,
aiming for carbon neutrality by 2050

Indexes andTargets

Human capital investment andredeployment&

New Initiatives in CIP2025

Regularly reported and discussed at Board of Directors’ meetings

GovernanceE

Results of CIP2022

More Environmentally Friendly Products
Expand sales of environment-friendly SDGs products such as ECO BLUETM, a recycled polyester fiber made from usedplastic bottles, and biodegradable resin, etc. Aim for sales of ¥50.0 billion in FY2025 (2.5 times the FY2022 level)

Development of next-generation products
Expansion of existing products

Human Resource Development
Ensure well-being = Be company that provides employees with a rewarding and enjoyable workplace environment

Develop Sustainable Businesses That Adapt Quickly
to the Changing Business EnvironmentS

We will respond to the drastic changes in this era of volatility, uncertainty, complexity, and ambiguity by taking a bird’s-eye view ofbusiness risks and opportunities, diversifying our global supply chain, and actively undertaking business investments, new development
projects, and M&As in growth sectors and regions.

Diversification of Global Supply Chains

Pandemics

Extreme weather

Conflicts

Develop suppliers to meet diversifying customer needs
Turn changes in the global supply–demand balance into
opportunitiesG rowth areas: environment, health and comfort,G
globalMarket entry
Complement strengthened areas with business
investment and M&A

Achieving work that is rewarding

Diversity & inclusion

Effective two-way communication

Enhancement of recruiting capabilities

Creation of a better working environment

Strengthening of Governance
The Company is working to strengthen its governance system by enforcing an array of corporate governance,compliance, and risk management measures.

+Others
North America &South andCentral America“Nurture people, and develop with them.”

Respect for Human Rights
In addition to conducting CSR-based procurement surveys on a regular basis, we are strengthening our initiatives
with ESG-conscious companies with the aim of realizing a sustainable supply chain.

EuropeAsia &
Middle East

2 Boost engagement

3 Promotion of health and productivity management

 roactive Business Investment in Growths
P
Areas and Regions

Greater
China

1 Invest in human capital

Corporate GovernanceCompliance

Risk Management

Strengthening governance through theGovernance Committee

Focus on reinforcing corporate ethics andzero compliance violations

Strengthening risk management
capabilities

Awareness of cost of capital andstock priceContinuing to develop internal­ histleblower system and conductingwinternal training sessions and surveys

Systematizing and managing risks andstrengthening of risk sensitivity

Enhanced dialogue with shareholders andinvestors to improve PBRStrengthening product safety and quality
assurance systems

Strengthening response to emerging
market risks and geopolitical risks

Business and Management Transformation through DX
For more details, please refer to pages 15 to 16.

13

CHORI CO., LTD.

Tsumugu Report 2023

14

Overview of Chori

CARAT: A Companywide Business Transformation Project
Based on the Renewal of Our Mission-Critical System
In April 2022, Chori launched its Companywide business transformation project Chori Accelerate Renovation Achievement
Transformation (CARAT). Through this project, we aim to deploy our digital functions across the entire Group, streamline andstandardize business operations, strengthen business management using data, and improve productivity while exploring thepossibility of retraining our workforce and restructuring our organization.

Chori’s Digital Management
In accordance with the basic policy of Chori Innovation Plan
2025, Chori will become “a corporate group that continues to
evolve and change on a global scale, underpinned by its
exceptional capabilities and expertise.” Along with the threebasic strategies we have established in order to realize thisPromotion Structure
The project is conducted under the direction of the Company’s
president, CEO & COO, who assumes the role of the project
leader, with the overall policy formulated mainly by members
selected from each department and Chori’s new businessCompanywide Business Transformation Project Leader

basic policy, we are promoting “business and managementtransformation through DX.” The Company plans to invest
approximately ¥5.0 billion into its DX activities over the courseof Chori Innovation Plan 2025.

President, CEO & COO

General Manager of
Textile Division

General Manager ofChemicals Division

SAP introduction project CARAT launched in April 2022 (full-scale operation from fiscal 2025)

Textile BusinessTransformation Team

Chori Accelerate Renovation Achievement Transformation

Chemicals BusinessTransformation TeamManagement
Transformation Team

Digital Transformation(DX) Leader
Department Manager ofInformation System Department

ComplianceTransformation Team
Application Team

Introduction of SAP & creation of DX management structure

Utilization of SAP & improvement of corporate value

Defensive DX

Offensive DX

Business transformation and standardization

Realization of flexible management resistant to change

Data-driven management and establishment ofa platform for the use of data

Strengthening of sales competitiveness through useof dataDX human resource development and diversity

Business model reform

Infrastructure andTransition Team

Business Standardization Consultant

Development of Digital Experts
Chori will secure and develop the business unit personnel and systems personnel necessary to promote DX.
• Business unit personnel are well-versed in the Company’s business activities and understand the role of digital technology. They are
responsible for securing the human resources who will spearhead DX in each business segment and implementing DX throughout
the organization.
• Systems personnel are well-versed in digital technology and the use of data. They are capable of designing and developing a
Companywide platform for data use.

Goals

Our Companywide business transformation project was
launched in April 2022 with the intention of completely rebuilding
Chori as an organization. The project was named “CARAT” toliken Chori, which consists of the Fibers, Textiles, andGarments, Chemicals, and Machinery businesses, to a diamondwith several facets and incorporate the meaning that theCompany will continue to refine its attractiveness and shineeven more brightly in the future. We aim to develop a nextgeneration mission-critical system (SAP S/4HANA Cloud ERP)

We aim to launch full-scale operations of our new mission-critical system in April 2025.
FY2022

FY2023Business design

Implementation

Overseastransactions

that facilitates our business and management transformation bystandardizing and then automating and visualizing operations
and further restructuring our operations and organization.
By deploying DX functions across the entire Group,
streamlining and standardizing business operations, enhancing
business management, and improving productivity, we aim tobuild a foundation that will enable us to continue to achievesustainable growth.

Timeline for Implementation of New Mission-Critical System

CHORI CO., LTD.

Job Transformation (JX) Officer
Department Manager ofCorporate Management
Department

Post-CIP2025

Project Outline

15

Subleader
Deputy General Manager of Corporate Planning Division (Human Resources &General Affairs Department and Information System Department)

Secretariat

CARAT (Company-wide business transformation project)

Project
preparation

General Manager ofCorporate Planning Division

Human Resource
Transformation (HRX) Leader
Department Manager of
Human Resources & General
Affairs Department

Promotion of DX strategy: defensive and offensive perspectives

CIP2025

model created through the participation of all employees.
Discussions are held between project members and at eachbusiness site to create a framework that will serve as thefoundation for Chori’s further growth.

FY2024
Testing

Domestictransactions

Standardize and streamline
data entry work

SAP
S/4HANA

Management
accounting

Inventory
management

Financialaccounting

Strengthen business
management using data

1

Establish a platform for data use, realize strategic
management, and strengthen sales competitiveness toachieve increases in corporate value

Implement a management dashboard and make quick and accurate management
decisions through the use of data

2

Enhance productivity of administrative duties bystandardizing, automating, and consolidating operations
and transition to a more sophisticated human resource
and organizational structure

Reduce the workload of data entry and other tasks and transition to a moresophisticated and strategic operational system for data analysis and other duties

3Standardize and automate business operations across theGroup to mitigate internal control risks and ensurecompliance

Ensure compliance by strengthening system controls and reduce the workload ofinternal control audits

4

Promote new workstyles, such as remote work andpaperless operations

Enhance productivity and quality of remote work through digitalization andimproved workflow

FY2025Full-scale
operations

Creditmanagement

Tsumugu Report 2023

16

Overview of Chori

Chori’s Strengths
Stemming from Its Commitment
to Making a Variety of Dreams Come True

Diverse product lineup
centered on emerging markets

Chori has been aggressively expanding its business in emerging countries since the prewar period through efforts
including the export of rayon yarn to China, India, and Mexico since the 1930s. Since then, the Company has expanded
its global network to Southeast Asia, Europe, the United States, the Middle East, and other parts of the world,

UniqueGlobal Network

and its overseas transactions now account for roughly 70% of its total net sales.

Diverse product lineup
centered on emerging markets
Page 18

Overseas:
Procurement
Capabilities

Network

30 business sites*1

Consolidated employees:

1,285

*2
*1 As of June 2023
*2 As of March 2023

Ability to Develop a

History

Global Supply Chain

Solid business foundation

Market development
capabilities as demonstrated

built over the course of
our history

Pages 19–20

Human
Resources
by our highly specialized personnel

Responsiveness(Promptness)

Pages 21–22

Handling of Products with High Import Barriers
Since the establishment of its first overseas subsidiary, Chori has developed a variety of product procurement routes centered on emerging
markets through its more than 60 years of doing business outside of Japan. We have expanded the scale of our business by leveraging this productprocurement route, and our years of doing business worldwide have allowed us to also handle an array of products with high import barriers.

Lithium Salt
Securing access to lithium salt is believed
to be difficult in the producing nations ofChile and China.

17

CHORI CO., LTD.

Examples of
Products Handledby Chori

Pharmaceutical Ingredients /Food Additives
Ensuring the stable procurement ofquality raw materials in India andChina is essential to the production ofpharmaceutical ingredients and foodadditives.

Tsumugu Report 2023

18

2004–

Overview of Chori

Chori’s Strengths

Solid business foundation
built over the course of our history

1861 Founded in the Nishijin District of Kyoto, Japan

1975–
2003

Chori was founded as a raw silk wholesaler during a turbulent time when Japan wastransitioning from the Edo Period to the Meiji Era. Moreover, the name “Chori”
originates from the combination of the Japanese characters “ ” (cho), derived fromthe image of a moth creating raw silk, and “ ” (ri), stemming from the first name ofChori’s first president, Riichiro Ohashi.

A Period of

Breakthrough Results
Four Consecutive Years of Record-High Ordinary Profit

1948–
1975

A Period of

Setbacks

Selection and Concentration ofwith drastic stream­lining anddownsizing of management

A Period ofGrowthHandling of Synthetic Resin, Chemical Products, andVarious Types of Machinery
1929	Establishes branch office inFukui Prefecture

1934	Establishes branch office in
Ishikawa Prefecture1948	CHORI CO., LTD.
established1952	Moves head office to Osaka

Our Connection with the Hokuriku Region,
the World’s Largest Textile-Producing Region 
Chori has been working together with the Hokuriku region of Japan, oneof the world’s largest producing regions for textiles, for more than 90
years. Over the years since establishing the Hokuriku Branch in the earlydays of the Showa Period, we have sold synthetic yarn to companies in
the region and developed fabrics together that are marketed in both
Japan and overseas.
This diverse network we have developed with business partners in the
Hokuriku region has become the foundation of the supply chain of theFibers, Textiles, and Garments Business, which handles a wide range ofhigh-performance, high-quality materials.

1953	Commences exclusive salesof woolly nylon through theestablishment of a joint
venture for the manufactureof woolly nylon with Toyo
Rayon Co., Ltd. (currently
Toray Industries, Inc.)

1956	Launches the Chemicals
Business

1957	Establishes Chori New YorkCo., Ltd. (currently CHORIAMERICA, INC.), Chori’s
first overseas subsidiary1976	Establishes Fukui Chori

Committee and Kanazawa
Chori Committee (currently
Hokuriku Chori Committee)
with twisted yarn
manufacturers and otherbusiness partners in the
Hokuriku region

1987	Establishes subsidiary1959	Stock listed on Osaka
Securities Exchange

1961	Stock listed on Tokyo Stock
Exchange	Designated as one of thefirst friendly trading
companies by China

1963	Establishes subsidiary ChoriGmbH (currently Chori
Europe GmbH)1972	Develops a large-scalecondominium

1973	Establishes subsidiary

CHORI SINGAPORE PTE
LTD1974	Establishes subsidiary THAICHORI CO., LTD.

CHORI CO., (HONG KONG)
LTD.

1989	Establishes subsidiary

CHORI TRADING(MALAYSIA) SDN. BHD.

1993	Establishes CHORI(SHANGHAI) CO., LTD. as
first subsidiary in China

subsidiary of Toray
Industries, Inc.

	Establishes subsidiaries
CHORI (TIANJIN) CO., LTD.
and CHORI (DALIAN)
TRADING CO., LTD.

2005	Establishes CHORI (CHINA)

Businesses Due to Significant Losses
Begins company restruc­turing
1975	

2004 Becomes a consolidated

1995	Establishes PT. CHORIINDONESIA

1996	Secures order for railway
project in Kazakhstan

1997	Establishes joint venture
Chongqing Dazu
Red Butterfly Strontium
Industry Co., Ltd.

2001	Establishes Chori Middle
East FZE

2002	Spins off the Synthetic

Resin Business Division into
a separate company

2003	Launches the Reborn

Management Plan andundergoes sweeping
structural reforms

	Holds Textiles Exhibition(currently CHORI Exhibition)CO., LTD., the firstJapanese trading company
subsidiary with the rights tosell and trade in China

2010	Establishes a representative
office in Dhaka, Bangladesh

2012	Establishes subsidiary

CHORI KOREA CO., LTD.

2016	Holds first annual Hokuriku
Yarn Fair	Establishes subsidiary
CHORI VIETNAM CO., LTD.
Participates in lithium compound2017	
production project in Chile	Splits off the Machinery
Business and establishes
Chori Machinery Co., Ltd.
	
Makes ASADA U CO., LTD., asales company of automotive
interior and packaging materials, a consolidated subsidiary	Establishes subsidiary
CHORI COMERCIAL DE
MEXICO, S.A. DE C.V.

2013	Makes PTI Japan Limited

2018	Makes KOZAKURA SHOKAI2014	Relocates Tokyo head office	Establishes subsidiary TAIWANCHORI MERCHANDISE
COOPERATION LTD.

(currently CHORI GLEX CO.,LTD.), a trading company
specializing in chemicals, a
consolidated subsidiary
to Shinagawa

CO., LTD., a trading company
specializing in chemicals, a
consolidated subsidiary

Establishes subsidiary
CHORI TRADING INDIA
PRIVATE LIMITED2015	Makes Miyako Kagaku Co.,
Ltd., a trading company
specializing in chemicals, a
consolidated subsidiary

Establishes joint project with2019	

Utsumi Recycle Systems Inc.
for the sale of recycled pellets

Makes STX Co., Ltd., a trading
2021	

company specializing in textiles,
a consolidated subsidiary2022	Launches Companywide
business transformation
project CARATOur Commitment to Niche Markets 
In the 1970s, Chori expanded its lifestyle-related business and bolstered its
business results. However, the Company began selecting and concentratingon certain businesses as a result of incurring significant losses in thefinance and real estate segments of its operations. The organizational
system was restructured, leading to the establishment of the Fibers,
Textiles, and Garments Business; the Chemicals Business; and theMachinery Business as our core business segments and of our strategy
of focusing on the handling of highly profitable products. As a result, ROA(ordinary profit basis) has grown to 9.0% (as of March 31, 2023). Chorihas been expanding its business in niche markets where it can utilize its
knowledge and expertise to the fullest, rather than in products with fiercelycompetitive prices and overwhelming competition.

Our Supply Chain in China 
In 1961, prior to the normalization of Japan–China diplomatic relations, Chori
became one of the first to be designated as a friendly trading company by
China, which paved the way for the launch of its China business ahead of thecompetition. Meanwhile, in 2005 we established the first Japanese trading
company subsidiary with the rights to sell and trade in China, and currently, in
2023 we boast a network consisting of 14 business sites in Greater China.*
Chori has established a robust supply chain in China through theextensive ties it has developed with the country over the years. We continue
to expand our operations in the country as a hub for the production,
procurement, and domestic sales activities of the Fibers, Textiles, andGarments Business as well as for exports to third-party markets in theChemicals and Machinery businesses.
* Consisting of China, Taiwan, and Hong Kong

19

CHORI CO., LTD.

Tsumugu Report 2023

20

Overview of Chori

Chori’s Strengths

Market development capabilities

as demonstrated by our highly specialized personnel
At Chori, our employees engage in the same line of business for many years and therefore boast a wealth ofexpert knowledge in everything from product quality and manufacturing know-how to the technological capabilities ofour suppliers. Drawing on their expertise, these employees are contributing to the creation of major markets forour products in the Fibers, Textiles, and Garments, Chemicals, and Machinery businesses. In this section, we will discuss thestrengths of the fine chemicals field, which played a major role in the success of the Chemicals Division in fiscal 2022.

2

Strengths of the Fine Chemicals Department: Leveraging the Ability to Provide
Meticulous Responses toward Becoming the Company of Choice for Customers

The Fine Chemicals Department caters to a wide range ofcustomer needs by not only drawing on Chori’s long-cultivatedoverseas network but also developing an outsourcing business
in which products that are difficult to manufacture in Japan are
outsourced to overseas manufacturers. Our ability to address
the needs of customers for niche products and specific quality
requirements, in particular, has led to the creation of added
value and the development of new markets. Such meticulous
responses require a high level of expertise in the chemicals
field. For that reason, we conduct internal and external

3

Create new markets throughChori’s ability toinnovate as a trading company

Mumbai, India

Hiromasa Kondo
President of CHORI TRADING INDIA PRIVATE LIMITED

1

After joining the Company in 2010, Mr. Kondo was assigned to
the Chemicals and Machinery Logistics Department in 2011. In
2013, he was reassigned to the Fine Chemicals Department,
and in April 2021 he was appointed as the temporary presidentof CHORI TRADING INDIA PRIVATE LIMITED in India, where hehas been stationed since April 2023. The Fine Chemicals
Department handles a wide range of products from pharmaceuticaland agrochemical ingredients and intermediates to raw materials
for dyes, resins, and semiconductors, spanning 200 to 300
items in the Indian market alone.

Chori’s Long-Cherished Strengths

It has been 10 years since I was assigned to the Fine Chemicals Department. The strength of the Fine Chemicals Department is theclose relationships it has built with its customers, and the department has worked to develop new markets by leveraging Chori’s
meticulousness in making proposals, which has been passed on as part of the Company’s DNA from generation to generation. This
meticulousness means our ability to identify the suppliers that meet the niche needs of our customers and provide customers with theappropriate information on these suppliers. For example, when we find multiple suppliers that meet customer needs, we provide suchinformation as differences in quality and price and the risks faced by each supplier. When we are unable to find a suitable supplier, we
will propose that the manufacturing be outsourced by drawing on Chori’s network of outsourcing partners. The most rewarding partof my job is seeing the smiles on the faces of our customers when, after three to five years, their new product has been completedusing the raw materials we have procured from scratch. Although the products they handle are different, whether it be textiles,
chemicals, or machinery, our sales representatives’ meticulous responses to customer needs have, I believe, spurred the expansionof these businesses and the growth of Chori as a whole.

21

CHORI CO., LTD.

4seminars, provide chemistry textbooks, and hold on-the-job
training led by senior staff in order to build a foundationthat allows even sales representatives with non-science­backgrounds to engage in discussions on an equal footingwith customers. Another strength of Chori’s Fine Chemicals
Department is its highly reliable support system that includes
the Pharmacovigilance & Quality Assurance Office, which isstaffed by pharmacists, the Business Administration Department(Chemicals), which assists in legal proceedings, and an analysis
center in Suzhou, China.

Expansion of Our Business in India, aHighly Promising Country with Distinctive Advantages

Along with Japan, South Korea, and China, India is one of the few countries in Asia whereorganic synthesis can be performed. The country has cemented its position as a finechemical producing nation through its role as a supplier while doing business with­manufacturers in Europe and the United States. In addition to the impact of population
growth and the expansion of the middle class, the Indian market will likely continue togrow due to the current national policy to expand the proportion of its overall economy
accounted for by the manufacturing industry from the current 18% to 25%. India’s governmentis also taking measures to develop its electronics and semiconductor industries, whichhave lagged behind other countries, and has provided significant incentives to promote thelocal production of products that are largely imported from overseas, which is expected toincrease the line of products handled by the Fine Chemicals Department.

Honing of Our Strengths in Pursuit of Our Customers’ Dreams

In order to continue to reinforce Chori’s strengths going
forward, we must incorporate more digital tools into our
information sharing. By integrating the knowledge that has
been accumulated by each individual in our departments into asingle system using digital tools, the knowledge of the entire
department can be outputted to customers as if it was theirown. We have high hopes for the impact that our adoption of
SAP, which we are promoting under CARAT, will have, particularlyon the Fine Chemicals Department due to the large number of
products it handles.
Moreover, the development of our market-in approachbeing promoted by the Chemicals Division is also a matter ofimportance. Although CHORI TRADING INDIA’s product sales
are currently based mainly on the product-out approach, wewill identify the needs of our customers in India and propose

and sell products that reflect their needs by seeking them fromaround the world. Having been assigned to and lived in India,
I can sense how much the people in this country value theirethnic background, that there is a culture of being kind to thosein need, and that they have a positive outlook on everything. For
those reasons, I would like to build a business that contributes
to the mutual growth of India and Japan. To this end, I will
ensure that I am fully aware of my role as a leader and that
we respond even more meticulously to customer needs andstrengthen our ability to develop new markets while continuing
to expand the scale of CHORI TRADING INDIA, which is still
relatively small in scale. In so doing, we aim to pass on a
successful business to our younger generation of employees
who will shape the future of our company.

Tsumugu Report 2023

22

Overview and Strategies by Business Segment

Overview

Fibers, Textiles, and Garments BusinessGroup Structure
Fibers, Textiles, andGarments Business:
12 companies

CHORI CO., LTD.

Chemicals Business:
8 companies(As of March 31, 2023)

Major Subsidiaries

Main Business

STX Co., Ltd.
ASADA U CO., LTD.

Sale of textile-related products (including clothing and fabric materials)
Sale of automotive interior and packaging materials

Miyako Kagaku Co., Ltd.

Sale of chemical products, industrial materials, pharmaceuticals,
and food-related ingredients
Sale of lubricating oil additives and various other chemicals
Import sales of chemical products, construction materials, andindustrial products

KOZAKURA SHOKAI CO., LTD.
CHORI GLEX CO., LTD.

Machinery Business:
1 company

Chori Machinery Co., Ltd.

Sale of transportation equipment and other products

Other: 1 company

Business Anchor Corporation

Outsourcing of administrative work

CHORI AMERICA, INC.

Import and export sales, overseas transactions, and domestic saleof various products in the U.S.
Import and export sales, overseas transactions, and domestic saleof various products in China
Import and export sales, overseas transactions, and domestic saleof various products in Thailand

Overseas subsidiaries: 20 companies

CHORI (CHINA) CO., LTD.
THAI CHORI CO., LTD.

Fiscal 2022 Net Sales by Segment

Net Sales in Fiscal 2022 by Region
Middle East

Machinery

Other (incl. corporate
adjustments)¥4.4 billion¥0.1 billion(1.4%)(0.0%)

Europe, the U.S.,
and Others¥6.9 billion¥11.6 billion(2.1%)(3.5%)

Central andSouth America

Japan(Domestic Sales)¥4.5

billion(1.4%)Net Sales¥329.4 billion
Asia

Domestic sales:
Amount ofdomestic sales¥180.0 billion(54.7%)

Fibers, Textiles,
and Garments¥144.8 billion(44.0%)(16.3%)(15.7%)

Japan (Imports)¥98.8 billion(30.0%)

Overseas Transactions 69.0%
Import sales: Amount of net sales from overseas to Japan
Export sales: Amount of net sales from Japan to overseas
Overseas sales: Amount of net sales from overseas transactions* Includes China, Taiwan, and Hong Kong

115.5
120.0
90.1
90.0
6.0

CHORI CO., LTD.

3.0

3.0
0

2020

2021

2022

（FY）

Ordinary profit

Chemicals BusinessDespite the effects of deteriorating market
conditions in the fourth quarter, sales
increased 9.7% from the previous year to¥180.0 billion and ordinary profit climbed
18.4% to ¥8.8 billion, due mainly to anincrease in overseas transactions as well as
brisk results overall led by the performance oforganic chemicals, agrochemical intermediates,
and industrial chemicals.

(Billions of yen)

135.0

180.0

164.2

180.0
123.3

8.8

7.4

9.0
4.5
0

(0.3)

– 4.5

2020

Net sales

Sales improved 2.9% from the previous yearto ¥4.4 billion due to the recovery of theautomobile market in Europe and Central
America, our core sales regions. On the profit
side, however, the business posted an ordinary
loss of ¥1.3 billion as the delay in collecting
receivables from business partners in the
United Arab Emirates (UAE) resulted in an
additional recording of provision of allowancefor doubtful accounts.

2021

2022

（FY）

Ordinary profit (loss)(Billions of yen)

6.0
4.5
3.0
1.5

– 1.5

4.4

4.3
2.7
0.7
(0.0)

0

Net sales

23

5.1

3.9

Machinery Businessbillion¥51.7 billion

144.8
150.0

Net sales¥102.2 billion

Overseastransactions

Greater China*(Billions of yen)(31.0%)¥53.6

Chemicals

The business achieved profit growth as it
accurately captured customer needs
stemming from the recovery of demand in theapparel market in Japan, transactions
increased due to the strong demand for SDGoriented products, and the higher costs of raw
materials were passed on to selling prices. As
a result, sales increased 25.4% from theprevious year to ¥144.8 billion and ordinary
profit soared 71.2% to ¥5.1 billion.

2020

2021

(1.3)
（FY）
2022

Ordinary profit (loss)

Tsumugu Report 2023

24

Overview and Strategies by Business Segment

Fibers, Textiles,
and Garments Business

Road to Achieving

Chori Innovation Plan 2025

We will leverage Chori’s strengths to
By merging the three divisions of theFibers, Textiles, and Garments
Business to form a single division in
fiscal 2020, Chori established its Textile
Division. This action has improved our
flexibility and united the divisions tooperate as a single entity.
The ability to seamlessly conduct
operations as a result of establishing
this single division has allowed theFibers, Textiles, and Garments
Business to conduct cross-divisional
projects, share ideas and know-how,and engage in joint efforts with
manufacturers as well as with partners
in industry and academia. In addition,
we are expanding our businessactivities for materials, products, andresources in the growth sectors of theenvironment, health, and comfort, in
addition to overseas.

pursue new business ventures that
Synthetic
Fiber
Business
Dept.

Fiber Raw
Materials Dept.

Automotive Materials
and Fabrics Dept.

Technical
Textiles Dept.

Textile-Fabric
Dept.

Career Apparel &Workwear Dept.

Apparel Dept.

cater to the needs of changing markets.

Hiroshi Yoshida
TextileDivision

Technical
Material &Garments
Business
Dept.

Managing Executive Officer
General Manager of Textile Division

Performance
Apparel Dept.

Material Development Team
Logistics Dept. (Textile)
Business Administration Dept. (Textile)

SWOT Analysis of the Fibers, Textiles, and Garments Business

Weaknesses

Strengths• Two-pronged business model involving manufacturing andcommercial capabilities• Customer base in the Hokuriku region, the largest textile-producing
region in the world• Well-versed team of personnel in Japan and overseas• Operation of OEM business that integrates supply chain processes,
encompassing production to distribution, by leveraging thecapabilities of production overseas• Responsiveness to customer needs by drawing on
global network•L ate start to globalization in downstream fields• Digitalization measures• Lack of low-pricing strategy

S

W

O

T

• Growing demand for car seats stemming from recovery
of automotive market• Growing demand for hygienic materials• Increasing demand for sports apparel owing to greater
health awareness• Expansion of textile product market due to a rise in global population

In the first half of fiscal 2022, the business environment remained
challenging due mainly to the sluggish apparel market in Japan
resulting from the effects of COVID-19, global supply chain
disruptions, and the soaring prices of raw materials. In the second
half, however, we saw a recovery in demand for apparel andautomotive materials, for which we were able to accurately meetthe needs of customers, resulting in a year-on-year increase in bothsales and operating profit to ¥144.8 billion and ¥5.1 billion,
respectively. With respect to the soaring raw material prices, rather
than just passing on the higher costs to selling prices, we focusedon developing and proposing products that offer higher added
value and increased our line of mid- to high-priced products, anarea of strength for Chori, which improved our profitability.
Moreover, Summit Garment Saigon (SGS), a sewing factory in
Vietnam operated by STX Co., Ltd. that temporarily discontinued
operations in fiscal 2021, nearly fully resumed operations in fiscal
2022. Also, we reduced costs through the strengthening of• Sluggish consumer sentiment due to rising prices• Global supply chain management disruptions•C oups d’état or conflicts in emerging countries anddisruptions to production and supply systems•S urging raw material and crude oil prices and volatile
foreign exchange rate movements

Under our business strategy of “reinforce our proprietary businessmodel” set forth in Chori Innovation Plan 2025 (CIP2025), we willcontinue to enhance the strengths of our GLOBAL ONE STOPCHORI supply chain development from upstream (materials) to

Ordinary Profit (Segment Profit)

CHORI CO., LTD.

downstream (finished products). While many of its competitors arestrengthening their downstream operations, over the years Chorihas been handling and refining its expertise for high-quality,
differentiated products in the upstream and midstream areas of theFY2021Net Sales

25

cooperation and more timely sharing of information between theoverseas branches of STX, contributing to a ¥2.1 billion increasein ordinary profit. Going forward, we will strive to develop new
products by uniting Chori’s strengths in synthetic fibers with STX’s
strengths in natural fibers.
In terms of the market environment, demand for highly
functional and mid- to high-priced products is on the rise acrossthe globe, and Chori will continue to focus on these areas in which
it excels. While the supply chain in Asia and other textile producing
regions is showing signs of recovery from the effects of COVID-19,
we are keeping a close eye on the impact of geopolitical risks andunseasonable weather on the textile industry. In particular, thedecoupling of the United States and China is spurring greater
emphasis on local production for local consumption. Chori willcontinue to promote measures that are geared to the specificneeds of each country by leveraging the global network it has
cultivated over its long history.

Business Strategies of Chori Innovation Plan 2025

Threats

Opportunities

Overview of Fiscal 2022 Performance and Market Environment of the Fibers, Textiles, andGarments Business

FY2022Difference(Billions of yen)

Ratio

115.5

144.8

+29.3

+25.4%

3.0

5.1

+2.1

+71.2%

Tsumugu Report 2023

26

Overview and Strategies by Business Segment
Fibers, Textiles, and Garments Business

Road to Achieving

Chori Innovation Plan 2025

supply chain with high entry barriers. Meanwhile, the demand forenvironment-friendly products has continued to grow in recent years.
In order to develop business activities that are truly friendly to theenvironment, we must incorporate environmentally conscious solutions
from the manufacturing stages of raw materials. Our knowledge of
upstream and midstream manufacturing structures allows us topropose environment-friendly solutions that meet the specific needsof our customers. Through these and other measures, we will seek
to differentiate ourselves even further from the competition. Anotherstrength of Chori is its semi-industrial/semi-commercial businessmodel. In addition to overseas trade, the Company has been working
with manufacturers to create high-value-added products over its
many years in business. Most notably, we have developed a relationshipwith the Hokuriku region of Japan that spans over 90 years, and anumber of high-quality products from the region have been used bysome of Europe’s leading brands. While our transactions with the
Hokuriku region amounted to ¥22.1 billion in fiscal 2022, we aim toincrease this value to ¥25.0 billion by fiscal 2025 through not only thesale of materials but also the sale of fabric to businesses overseas
and the expansion of our finished product business. In this way,under Chori Innovation Plan 2025 we will strive to achieve stable
growth in each of the areas of materials, products, and resources,
rather than focusing specifically on a single area. Under thebusiness strategy of “ensure stable growth in the three areas ofmaterials, products, and resources,” we will strengthen our
proposal-based sales for materials used in car seats and otherautomotive components in response to the rapidly advancing shift
to electric vehicles (EVs) that is taking place across the globe.
Meanwhile, under the business strategies of “expand businessin growth sectors the (the environment, health, and comfort)” and“pursue exceptional levels of functionality and expertise and further
set ourselves apart from the competition,” we will promote ourBLUE CHAINTM initiatives, which aim to achieve sustainability
throughout the supply chain. In addition to ECO BLUETM, a recycled

polyester fiber made of used plastic bottles, we will move ahead
with the B-LoopTM recycling initiative by collecting around 300 tonsof industrial waste per month in the Hokuriku region, which isreused in pavement materials for riverbeds and automotive
materials, as well as recycling used clothing into new textile
products. We will continue to expand our recycling efforts in such
ways to develop a circular economy and increase our sales from
BLUE CHAINTM initiatives to ¥30.0 billion by fiscal 2025.
In order to continue to expand the Fibers, Textiles, andGarments Business over the medium to long term, we must
execute our business strategy of “continue to grow the businessacross the globe.” To that end, we will strengthen our response to
the needs of Japanese manufacturers with which we havecontinued to do business with in China as well as the local needs of
the Chinese markets. The demand for highly functional products
used in sportswear and other apparel continues to grow in China.
Going forward, we will steadily capture this demand through theproposal of Chori’s differentiated highly functional products. Whileenhancing our presence in China not only as a production hub but
also as a market, we will work to integrate the operations of our
production sites in Thailand, Indonesia, Hong Kong, Taiwan, andother ASEAN countries as a measure to overcome geopolitical risk.

Major Group Companies in the Fibers,
Textiles, and Garments Business

STX Co., Ltd.
Became a wholly owned subsidiary in June 2021

With Chori specializing in synthetic fibers and STX Co., Ltd. specializing in
natural fibers, this collective effort between two companies with their own
specialties has improved our ability to propose solutions to customers. In
June 2023, the two companies held an exhibition together.
Summit Garment Saigon (SGS), a sewing factory in Vietnam operated
by STX, has played an integral role in our customer proposals through thestrong reputation it has built for production capacity. Since joining theGroup, STX has continued to increase the number of orders from sports
brands, including golf-related products, and for new high-end brands.
Going forward, STX will strive to ensure that SGS becomes the largest
production plant in the ASEAN region.

ASADA U CO., LTD.
CIP2025 Segment Strategy(1) Reinforce our proprietary business model(2) Ensure stable growth in the three areas of materials,
products, and resources(3) Expand business in growth sectors (the environment,
health, and comfort)(4) Continue to grow the business across the globe(5) Pursue exceptional levels of functionality and expertise andfurther set ourselves apart from the competition

Became a wholly owned subsidiary in July 2017

Founded in 1950 as Asada Shoten in the Ozone area of Nagoya City, ASADAU CO., LTD. handles a wide range of textile products used in packaging andautomotive interior materials.
The automotive interior materials business tailors its plans andproposals to diversifying lifestyles and various customer needs based on
its years of achievements and experience. Having received ISO 9001
certification, the company is committed to maintaining high levels of quality.
In addition, the functional materials business handles construction andautomotive materials.

Toward the Achievement of Fiscal 2025 Targets
In response to the late start to globalization in downstream fields,
which was identified as a weakness in the SWOT analysis, theCompany established MCC Industry COMPANY LIMITED in Hong
Kong in 2021. Through this move, we will expand our sales ofapparel to the global market, mainly in China, Europe, and theUnited States, and strengthen our business with partner companies
that specialize in overseas sales. With respect to digitalization
measures, Chori is revamping its core system through theCompanywide business transformation project CARAT. In fiscal
2022, we made preparations to begin full-scale operations of our
new system from fiscal 2025. By streamlining operations, we will
improve efficiency and lay the groundwork for the further growth of
the Fibers, Textiles, and Garments Business.
In order to achieve our segment profit target of ¥7.5 billion by
fiscal 2025, we must remain both progressive and unchanging in
our approach going forward. In other words, we will create newvalue by pursuing new businesses that address the needs ofchanging markets and continuing to focus on our strengths of

27

CHORI CO., LTD.

mid- to high-priced products. Chori’s high level of expertise inengaging in every stage of the supply chain, from upstream todownstream, and its semi-industrial/semi-commercial businessmodel are both the sourceof growth and theSegment Profit of Fibers,
strengths of the Fibers,
Textiles, and Garments BusinessTextiles, and Garments(Billions of yen)
Business. The Textile
7.5
8.0
Division is full of people
who are fond of this kind
6.0
5.1
of business. We willcontinue to harness these
4.0
strengths and increase
Chori’s impact on the
2.0
market through relentless
pursuit with our sights set
0
on long-term business
FY2022
FY2025(Target)growth.

MCC Industry COMPANY LIMITEDIn March 2021, MCC Industry COMPANY LIMITED was established in Hong
Kong to serve as a sales hub for sportswear manufacturers in Europe. The
company’s headquarters is based in Hong Kong and its branch office is in Tokyo.
MCC Industry produces and supplies fashionable and highly functional
sportswear, outdoor wear, and sports casual products in Japan and overseas,
mainly for golf and athletic use for the leading brands of major manufacturers.
Many manufacturers are highly conscious of sustainability and are inclined toincrease the use of environment-friendly materials. Such manufacturers havetherefore transitioned to the use of ECO BLUETM recycled polyester fiber madeof recycled plastic bottles, which is well-regarded as a raw material.

Tsumugu Report 2023

28

Overview and Strategies by Business Segment

Chemicals Business

Road to Achieving

Chori Innovation Plan 2025

We will expand our global network
Established in 1956, the Chemicals
Business has a track record spanningover 60 years. We have continued totake advantage of our global network
not only in terms of procurement andsales within China but also throughexports and intermediary transactions
with Southeast Asia, India, the Middle
East, and other regions. Through these
efforts, coupled with our ability to meetthe needs of our clients for niche
products, we have set ourselves apartfrom our competitors and enhanced
our market presence.
With an extensive productportfolio that encompasses theenvironmental, electronics and battery
materials, 5G-related, personal careand healthcare, and agricultural fields,
Chori caters to the wide-ranging ofneeds of its customers.

and build a foundation for
Chemical &Materials
Business Dept.

Chemicals
DivisionLife & Fine
Chemicals
Business Dept.

our next stage of growth.

Performance
Chemicals Dept.

Inorganic Fine
Materials Dept.

Industrial
Chemicals Dept.

Fine Chemicals
Dept.

Life Science Dept.

SWOT Analysis of the Chemicals Business• Global network centered on China• Diverse lineup of high-performance materials• Exceptional synergies created with subsidiaries• Product development and product supply capabilities thatdraw on the market-in approach• Highly specialized knowledge

Weaknesses• Lack of brand recognition and smallness of businessscale within business-to-business market relative tomajor competitors overseas• Length of time needed for new businesses to contributeto revenue

S

W

Opportunities• Growing demand for automotive-related materials• Increasing demand for products in the field ofsustainability• Rising interest in environmental products

Threats

O

T

Managing Executive Officer
General Manager of Chemicals Division

Overview of Fiscal 2022 Performance and Market Environment of the Chemicals Business

Logistics Dept. (Chemicals)
Business Administration Dept. (Chemicals)Strengths

Yoshihiro Teratani• Global supply chain management disruptions• Country risk such as Russia’s invasion of Ukraine• Supply–demand imbalance stemming from market
deterioration• Limited desire among potential customers to switch toother products due to economic recession

In the first half of fiscal 2022, the Chemicals Business performed
favorably in all areas owing to the soaring prices of raw materials. In
this environment, we were able to improve earnings by securing
and supplying products without delay. Despite a gradual decline inraw material prices and deteriorating market conditions from thesecond half of the fiscal year, we maintained the positive results ofthe first half, leading to increases in both sales and ordinary profit to¥180.0 billion and ¥8.8 billion, respectively. In addition to theparticularly strong performances of the fine chemicals segment(see “Chori’s Strengths” on pages 21 to 22), which handles
agrochemicals; the electronics and battery materials segment; andthe semiconductor materials segment, the food additive business,
which took a downturn in fiscal 2021 due to stay-at-homemandates set as a result of COVID-19, recovered in fiscal 2022
owing to higher demand for eating out that stemmed from theeasing of COVID-19 restrictions. Because of this, we not only rode
the wave of higher demand but also looked to increase our sales
outlets in order to improve profitability. Although food additives weresold primarily to dealers in the past, we have expanded sales tofood manufacturers and other end users, allowing us to offer awider variety of products.



FY2021Net Sales
Ordinary Profit (Segment Profit)

29

CHORI CO., LTD.

Although the sales of some products are showing signs ofrecovery from the effects of COVID-19, the market for chemical
products, in general, has been on a downward trend since October
2022. Due to supply chain disruptions arising from the spread of
COVID-19 and the conflict between Russia and Ukraine, manufacturers
stocked up on inventory by ordering various products in larger
quantities as a part of their business continuity plans until the endof the first half of fiscal 2022. From the second half, however, theirinventory levels swelled as we began to see a gradual recovery insupply chain disruptions. For example, replacement demand forTVs, PCs, mobile phones, and other products, which remained
high for a period of time, has subsided due to their increased
durability, resulting in a stagnant market for flat panel displays.
Although China has substantially eased its zero-COVID policy since
December 2022, domestic demand has not reached the levels we
had anticipated. Therefore, in fiscal 2023 we will focus on building afoundation and framework for our next stage of growth whilesteadily promoting the basic strategies of Chori Innovation Plan
2025 in response to our market conditions, which will likely begin togradually recover from October 2023.

FY2022Difference(Billions of yen)

Ratio

164.2

180.0

+15.9

+9.7%

7.4

8.8

+1.4

+18.4%

Tsumugu Report 2023

30

Overview and Strategies by Business Segment
Chemicals Business

Road to Achieving

Chori Innovation Plan 2025

Major Group Companies in the Chemicals BusinessBusiness Strategies of Chori Innovation Plan 2025
As one of the business strategies of the Chemicals Business, wewill continue to “promote consolidated management centered on
our global business” as set forth in Chori Innovation Plan 2025.
During our previous medium-term management plan, we wereunable to develop new businesses due to COVID-19 and fewer
opportunities to engage in face-to-face sales as a result. Duringthat time, however, we worked to establish an organizational
structure that is conducive to creating new businesses. In addition
to increasing our mid-career hires, who will have an immediate
impact on our business, we have developed a global organizational
structure in which our employees are assigned to overseas basesin Malaysia, Vietnam, and now India. Through these measures,
we will address the rising demand for biodegradable resins,
plant-based meats, and other SDG-oriented products andexpand our product portfolio by devoting more attention to
over-the-counter pharmaceuticals in the life sciences field, where
ethical pharmaceuticals have traditionally been the mainstay.
With respect to our business strategy of “establish
environmentally conscious businesses that offer high levels offunctionality and profitability in place of existing substandard
businesses,” we will transition from a product-out business model,
which allows manufacturers to be in control, to a market-in businessmodel, which enables Chori to take initiative. Chori’s strength lies in
its proposal-based business, which makes use of its high levels of
expertise. While some businesses are based on product output andothers are based on market entry, we will promote the market-in
approach for all areas of our business going forward. We will
provide optimal products that cater to specific customer needs
with a view to expanding profits. To that end, we will promote ouroutsourcing business, in which products desired by customers areproduced and imported from overseas, in line with our businessstrategy of “develop frameworks and product domains that are
resilient to changes in market and economic conditions.” In
addition, for the inorganic fine chemicals and the chemical raw
materials domains in particular, we will expand our business model,
in which we meet the demands of customers by assuming the roleof a manufacturer and securing products procured from overseas.
In so doing, we will establish a system that is less susceptible tochanges in the economy while working to mitigate geopolitical risk
by diversifying our procurement sources overseas.
As for our basic strategy of “strengthen cooperative efforts with
China, India, South Korea, and countries in Southeast Asia andSouth America,” we will step up our efforts with various
countries that have the potential for further growth. We will respondto geopolitical risk and strive to achieve medium- to long-term
growth by strengthening our measures in a number of countries,
such as India, where the market will likely continue to expand;
ASEAN countries, where the average age of the population is low
and the market is flourishing; and South America, where the lithiumcompound production project is ongoing, in addition to leveraging
our strong track record in pharmaceuticals.
CIP2025 Segment Strategy(1) Promote consolidated management centered on our global
business(2) Establish environmentally conscious businesses that offer
high levels of functionality and profitability in place ofexisting substandard businesses(3) Develop frameworks and product domains that are resilient
to changes in market and economic conditions(4) Strengthen cooperative efforts with China, India, South
Korea, and countries in Southeast Asia and South America

Toward the Achievement of Fiscal 2025 Targets
To address the lack of brand recognition and the smallness ofbusiness scale within the business-to-business market relative tomajor competitors overseas, which was identified as a weakness
through the SWOT analysis of the Chemicals Business, Chori is
working to enhance awareness of its brand through measures suchas placing advertisements in publications for chemical products
around the world. We also intend to engage in M&As to expand thescale of our business going forward. Meanwhile, the COVID-19
pandemic has also led to increased business opportunities. In
response to the risk of changes in the supply chain, Chori has beenable to gain new business opportunities with first-time customers.
Accordingly, we will diversify our product portfolio so that Chori canserve as a second and third source of supply in a timely manner. In
addition to such responsiveness, the promptness of our sales
activities is a source of our competitiveness. At Chori, our sales
activities are carried out in a prompt and thorough manner, even by
our younger employees who gain practical experience throughoverseas business trips. We will continue to draw on this DNA of
the Chemicals Business while aiming to remain a prominent
presence in the market.
31

CHORI CO., LTD.

Fiscal 2023 is a period of preparation for our next stage of
growth. We are investing even more in our human resources withan eye on the medium- to long-term growth of the Chemicals
Business. We will continue to focus on securing, developing, andproviding the mostsuitable opportunities to
Segment Profit of
our employees, who are
Chemicals Business
Chori’s greatest asset,(Billions of yen)while steadily seizing
9.5
10.0
8.8
business opportunities inan effort to achieve the
8.0
goals of Chori Innovation
Plan 2025.
6.0
4.0
2.0
0

FY2022

FY2025(Target)Miyako Kagaku Co., Ltd.
Became a wholly owned subsidiary in May 2015

Founded in Osaka City in 1921, Miyako Kagaku Co., Ltd. handles basic
materials, various synthetic resin materials, food ingredients, pharmaceuticals,
cosmetics materials, and packaging materials. The company also engages in
the painting work business for petrochemical complexes in the areas of
Yokkaichi and Chiba.
In fiscal 2022, despite the impact of the lockdown in China, sales andordinary profit amounted to ¥45.9 billion (accounting for more than 10% of
Chori’s consolidated net sales) and ¥1.2 billion, respectively. Over the courseof Chori Innovation Plan 2025, we will expand the scope of this business inenvironment-related fields, such as bioplastics and microbial formulations;healthcare fields, such as lactic acid bacteria; and electronics materials fields
and build an even stronger revenue base.

KOZAKURA SHOKAI CO., LTD.
Became a wholly owned subsidiary in March 2018

Since its founding in 1949, KOZAKURA SHOKAI CO., LTD. has establisheditself as a trading company that specializes in chemical products through the
supply of various additives, catalysts, solvents, and other chemical products,
primarily to businesses in the petroleum industry and related industrial fields.
The company handles lubricant additives and other performancechemicals used in the automotive, construction machinery, and metal
processing industries; industrial chemicals used in general chemical industries
and petroleum refining processes; and oleo fine chemicals, such as raw
materials for lifestyle-related products (including personal care and food products).

CHORI GLEX CO., LTD.
Became a wholly owned subsidiary in February 2013

Founded in Nagasaki Prefecture in 1859 as Frazer Company, the first foreigncapitalized company in Japan, CHORI GLEX CO., LTD. introduced the steam
locomotive, electric streetcar, and Ford Model T automobile to Japan. The
company currently engages in the import and export of specialty chemical
and industrial products.
CHORI GLEX handles chemical products, such as epoxy resin andother thermosetting resin-related products; construction materials, such asstones and bricks; hearing device components, such as transducers andother electronic components and peripheral parts; and industrial products,
such as organic and inorganic chemicals, paint materials, and rubber
chemicals.

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Overview and Strategies by Business Segment

Machinery Business

Road to Achieving

Chori Innovation Plan 2025

We will continue to expand ourChori Machinery Co., Ltd., which was spun off in April 2017 to enhance the flexibility of Chori’s business operations, hasbeen expanding its portfolio of automobiles, machinery, and related materials across the globe.

business by leveraging our sales
expertise and adapting to the needsof each country.

Operating Company

Chori Machinery Co., Ltd.
Wholly owned consolidated
domestic subsidiary
Four-wheeled vehicles, two-wheeledvehicles, and trucks; agricultural
machinery; construction materials;
and marine equipment
Supplier
MarketSupplier and market

China

Europe

South
Korea

MexicoIndia

AfricaJun Hayami

Japan

ASEAN

CentralandSouth
AmericaSouth
AfricaOverview of Fiscal 2022 Performance and Market Environment of the Machinery Business

Leveraging the Group’s unique global network, which has
expanded over the years, Chori Machinery commercializes
products acquired from China, India, South Africa, and othercountries in markets such as Europe and the ASEAN region.
Most notably, the company engages in a project in which theautomobiles of Chinese automakers are assembled throughsemi-knocked-down production and sold in Mexico.

Recently, the company has been growing its business in Africa
and other emerging markets in particular. By drawing on its
long-cultivated know-how in global trade and unique traderoutes, Chori Machinery will continue to expand its business inthe years ahead.

SWOT Analysis of the Machinery Business

Strengths• Sophisticated information and global networks• Creation of niche market by leveraging unique customer base• Market-in proposals by employees deeply familiar
with markets• Ability to develop customer relations worldwide bydrawing on individual capabilities

Weaknesses

S

W

O

T

Opportunities• Global recovery of automotive market• Expanding product line in Africa, Southeast Asia,and other thriving emerging markets• Growing business opportunities associated with shift
to environment-friendly vehicles• Expanding product line in non-vehicles businesses

33

CHORI CO., LTD.

President, CEO & COO
Chori Machinery Co., Ltd.

• Need for improvements to flexibility andorganizational capabilities that draw on the strengthsof each individual• Timeliness of digital transformation measures

Threats• Country risk and risk of pandemics, coups d’état,and economic crises in emerging countries• Market fluctuations resulting from intense climate change• Global supply chain management disruptions

In fiscal 2022, the Machinery Business posted sales of ¥4.4 billion
and an ordinary loss of ¥1.3 billion. In Mexico and Italy, key sales
regions of the business, the market recovered to a greater degree
than anticipated as new and replacement demand for automobiles
increased around the world on the back of pent-up demand andthe easing of COVID-19 restrictions. Mexico in particular has
benefited from the recovery of the U.S. economy, with which it isclosely linked due to geographical factors, as the vehicles businessdemonstrated brisk results. On the other hand, the businessrecorded an additional allowance for doubtful accounts due to adelay in collecting receivables from business partners in the UAE.
The delay is mainly due to a lack of foreign currency in the country
stemming from monetary policies and cutbacks in the production ofoil for sale to Nigeria. While the economy in the UAE is taking awhile to recover due to delays in economic recovery measures, the
new administration, which was introduced in August 2023, isfocusing on stabilizing the foreign currency policy and establishing
oil refining operations in the country. Although the future remains
uncertain, we will continue to work to restore the situation as
quickly as possible while keeping an eye on the state of theeconomy in Nigeria.
The flagship product of the Machinery Business is­automobiles. Although the demand for automobiles can besusceptible to economic changes, it is steady for the most part due
to their importance as a means of transportation as well as in daily
life. The automobiles handled by Chori Machinery are mainly those
produced in China. Based on 2023 projections, China will accountfor approximately one-third of the 85 million automobiles that will besold around the world throughout the year. It is also estimated thataround four million units of the automobiles produced in China will
be exported in 2023. Considering that the number of cars exported
from China annually between 2006, when we began handlingvehicles from China, and the years leading up to COVID-19 wasaround one million leads us to believe that the image and reputationof Chinese cars has dramatically improved over the past decade or
so. The Chinese government is particularly focused on thedevelopment and sale of EVs as a part of its national policy, anddemand for such vehicles is growing worldwide. In response to suchchanges in its business environment, Chori Machinery will address
the demand for environment-friendly vehicles, which continues toincrease particularly in Europe, as well as gasoline vehicles, which
are still the mainstream in developing countries. Meanwhile, several
new manufacturers are entering the EV scene, which is expected tointensify competition even more in the future. In view of this, we will
do our utmost to seize every business opportunity by forming
relationships with these new manufacturers as quickly as possible.


FY2021

FY2022Difference(Billions of yen)

Ratio

Net Sales

4.3

4.4

+0.1

+2.9%

Ordinary Loss
(Segment Loss)

(0.0)

(1.3)

–1.2

–

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34

Overview and Strategies by Business Segment
Machinery Business

Road to Achieving

Chori Innovation Plan 2025

Core Initiatives of the Machinery BusinessBusiness Strategies for Fiscal 2023
While continuing to quickly and thoroughly adapt to the changes inour key markets of Mexico, Italy, and Central and South America,
we are focusing on India as our second largest supplier next toChina, due to its large population and diverse market. Motorcycle
culture has been deeply ingrained in India over the years and ourbusiness in the country for two-wheeled vehicles continues tothrive. We are currently expanding our network of suppliers in India
in an effort to develop a business structure for the intermediary
export of electric two-wheeled vehicles produced by Indian
manufacturers to developing countries.
In the Machinery Business, we aim to improve profitability by
expanding our automobile business and our line of peripheralproducts. Specifically, we are developing an infrastructure foreverything from telematics (a vehicle movement monitoring systemthat incorporates telecommunications and information processing),
which will continue to evolve going forward, and devices centeredon vehicle safety to after-sales services, such as repair parts. In thisway, we will continue to propose products and other tangible
solutions and also develop a proposal-based business model thatallows us to utilize our sales know-how, an intangible asset that has
been cultivated in Mexico and other markets.

One example of the changes that are taking place in thisindustry is that although just a decade ago automobiles equippedwith CD players and other car audio equipment were the mainstream,
today these devices have been replaced with new technologies,
such as the screen mirroring functions on smartphones. Given suchextremely rapid changes in this industry, simply focusing on the
trade of goods, which has been our approach to date, will become
relatively risky. Therefore, we will also direct our attention to the saleof ideas and know-how. Seeing that Chori’s efforts to date havebeen recognized by the automotive industry and are used as bestpractices, we believe there is demand for its platforms.
In fiscal 2022, we also achieved success in our joint initiativewith a business partner in Italy. For this initiative, we developed
environment-friendly vehicles that use natural gas, which earned
the support of the local markets. Italy is unrivaled when it comes to
its culture of being very particular about automobile design. Taking
this into account, we have entrusted the customization of designs
to our partner company in Italy, which is well aware of the local
tastes and preferences and continues to enhance its presence inthis market. In the future, this business will be expanded toneighboring countries in Europe.

Our Approach Going Forward
One of the strengths of the Machinery Business is the market-in
proposals made by its employees who have a profound knowledgeof the market. To continue to make the most of the strengths of ouremployees, who are our greatest asset at Chori Machinery, we will
focus on creating a workplace environment where each employee
can work comfortably and gain a sense of fulfillment.
Although the Machinery Business has expanded over theyears through the collective strengths of each employee, in order togrow even further going forward, it must continue to enhance its
flexibility and organizational capabilities that draw on the strengthsof each individual. We will continue to improve our organizational
capabilities by enhancing internal communication to share ideas on
projects and holding study sessions, in addition to establishing anorganizational structure that facilitates timely responses to drasticchanges in market conditions and country risks. From the viewpointof digital transformation, we will standardize our sales support
operations to further reduce the use of labor.

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CHORI CO., LTD.

In the Machinery Business, we developed the China-based
automobile business ahead of our competitors. Accordingly, we will
harness our strengths as a front-runner in this industry while
continuing to build on our foundation to address new demands,
such as for EVs.
The majority of the markets served by Chori Machinery Co.,
Ltd. are developing countries that offer tremendous future potential.
In these countries, the population of young people is particularly
large, and the economy is expected to continue to grow, albeit atdifferent speeds, leading to even further demand for automobilesand electric two-wheeled vehicles. We will invest all of ourmanagement resources to fulfill the various demands that stemfrom the growth of each market with the aim of achieving stable
growth over the medium to long term.

1

Initiative

Semi-Knocked-Down Production in Mexico
In semi-knocked-down production, automobile parts andcomponents are transported to the country of destination,
where they are assembled and the automobile is completed.
It differs from completely knocked-down production in thatthe frame, engine, powertrain, and other main components
have already been assembled by the time they aretransported overseas.
Semi-knocked-down production offers a variety of
economic benefits, such as job creation and tax benefits forthe country of destination. As a result, more employment
opportunities are available for local residents in not only
assembly processes but also at sales agencies and forafter-sales services. Although it fell short of reaching the 4.0
million-unit mark that had been achieved prior to COVID-19,
in fiscal 2022 Mexico’s annual automobile production volume
steadily recovered to the level of 3.3 million units due to theinevitable effects of the semiconductor shortage. Moving
forward, Chori Machinery will continue to seek greaterbusiness opportunities centered on Mexico’s mainstream
automotive industry.

2

Plant
in Mexico

Benefit from cost due toJointventuresemi-knocked-down
production

Chineseautomobile

Assembly

Automotive
retailer in
MexicoUser

Initiative

Enhancement of Our Presence in Italy
and Other Parts of Europe
Chori Machinery has partnered with a company based in
Italy to develop businesses in the country and other parts ofEurope, including Spain. The stylish and environment-friendly
vehicles developed by Chori’s business partner have been
well received by the younger generation and the local markets
and continue to increase in sales.
This joint initiative began with the establishment of ourpresence in Italy, a market on the scale of 1.3 million units.
Since then, in addition to expanding our business in Europe,
we have continued to form partnerships with other companies
to examine new business opportunities in Asia and Central
and South America.

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36

Special Feature

Branding in the Fibers,
Textiles, and Garments Business―Adding Value to Our Sustainability Practices―
Chori unveiled its redesigned logos for BLUE CHAINTM and ECO BLUETM at
FaW TOKYO–FASHION WORLD TOKYO in April 2022. Since then, the Company has been
devoted to strengthening its branding strategies in the Fibers, Textiles, and Garments Business.

BLUE CHAINTM Products and Initiatives

37

CHORI CO., LTD.

ECO BLUE™

WS™

TEXBRID™

A recycled polyester
fiber produced byturning used plastic
bottles into plasticpellets

A material that canbe dyed quickly at
low temperatures

A highly durable,
long-lasting, andstretchable material

MEDITERRANEANGIZA™

MILLENNIUM
ORGANIC™

SPX™

BLUENY™

A stretchable highly
crimped polyester
yarn made using
PIN texturizing
technology in the
Hokuriku region

Sustainable nylon
derived from fiber
scraps and otherrecycled materials

NEXUEDE™

A material that has
reduced the amountof water used incotton cultivation
processes throughthe extensive use of adrip irrigation system

A material made ofultra-white raw cotton
that eliminates theneed for chlorine
bleach and excess
reducing agents

B-Loop™

FREETEQ

Natural DyeTM

ki re riA recycling initiative
carried out in Japanand overseas inwhich new textiles
are created from oldones

A fully elastic material
that accommodates
a wide range of sizes
and body shapes

An environmentfriendly material thatuses plants and foodresidue as dyes

A washable fabricthat is refreshingly
cool on the skin andcombines exceptional
appearance andcomfortNEXUEDE™

A high-quality woven
microfiber fabric thatcan be used as analternative to artificial
leather

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38

Special Feature

Branding of SDG-Oriented
Products

Chori began branding its SDG-oriented products in 2007, when
it named its recycled polyester yarn derived from used plastic
bottles ECO BLUETM and registered it as a trademark. Recycling
was becoming the center of attention in the textile industry at
the time, and when a customer expressed the desire to makepolyester out of recycled materials, we began focusing on
expanding our line of SDG-oriented products.
While many associate the image of environmental
conservation with the green color of forests, the ECO BLUETM
brand name was designed in blue to add some original flavor
and to align with Chori’s brand color. In continuing this trend,
the word “blue” has been incorporated into a number of other
SDG-oriented products and initiatives, such as BLUE CHAINTM
and BLUENYTM, and has become the essence of the Chori brand.

Significance of Branding

In an age where we are flooded with similar products, it isessential that we differentiate our products so that they do not
get buried in the market. Chori’s raw material business offers
outstanding product capabilities in Japan and excels at working
with the world’s leading material manufacturers and textile
manufacturers who are adept at differentiating themselves fromcompetitors. We worked with partner companies to create andstrategically promote SDG-oriented products that accurately
met the needs of the markets in Japan and overseas, leading
to our recognition as a key supplier by world-renowned luxury
and high-end brands, which we do business with frommidstream to downstream. This has allowed us to expand ourbusiness beyond expectations. By building on this success, wehave been able to gain a secure foothold in the market for
SDG-oriented products, and we are now becoming more andmore recognized by end-consumers as well.

Rebranding of BLUE CHAINTM
and ECO BLUETM

In light of the increasing focus on sustainability throughout the
textile industry, we examined how we could differentiate ourselves
even further from the competition and hold a competitive
advantage to increase our market share. After careful consideration,
we redesigned our logos for BLUE CHAINTM and ECO BLUETM
in 2021. Given that BLUE CHAINTM is the leading brand of
Chori’s SDG-oriented products and that ECO BLUETM is thecore line of products for that brand, we aimed to establish a
uniform design. We approached designer Naomi Hirabayashi
for this role because she is active on the front lines of the
fashion industry, and we were convinced that she had theability to further differentiate and enhance the competitivenessof the two brands. From the many incredible monochrome
designs that were proposed, we selected the logos that caught
our attention the most. The logos featuring rounded lowercase
letters that offer an eco-friendly appearance and blue tones
evoking an image of the earth and ocean were unanimously
selected as we believed they would attract the attention of awide range of customers.
After renewing these logos, we limited the scope of
ECO BLUETM products to recycled polyester fiber made fromused plastic bottles, allowing us to differentiate these brands toan even greater degree.

39

CHORI CO., LTD.

Looking Ahead

In 2022, we also rebranded our PIN texturized yarn SPXTM.
Since then, we have continued to actively engage in branding
practices such as registering trademarks for our names andlogos associated with “blue,” including BLUENYTM sustainablenylon yarn and the B-LoopTM recycling initiative.
The Textile Division aims to achieve sales of ¥30.0 billion
from sustainability-based products by 2025. Our BLUECHAINTM initiatives are steadily expanding through the endorsement of approximately 140 partner companies from upstream
to downstream, mainly those in the Hokuriku region. In addition
to continuing to pursue higher levels of product quality, we willremain committed to our branding practices in order to further
enhance our presence in the industry and strengthen our
relationships of trust with customers.

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Management Foundation Tailored to Sustainable Growth

Our Approach to Sustainability
Governance
The Chori Group has established systems to ensure appropriate operations with the aim of achieving soundmanagement and sustainable growth. The Company strives to strengthen corporate governance by complying withlaws and social norms, carrying out effective and efficient business operations, and ensuring the credibility of its
financial reports while positioning the Board of Directors as a body for making strategic decisions and overseeing
business operations.

Chori’s Sustainability Initiatives

Key Points

The spirit of coexistence and co-prosperity that our first president Riichiro Ohashi maintained, which is “todevelop our business for the benefit of the world and people and to always strive to grow together with ourcustomers,” and the integrity, dignity, and compassion that has continued to support this spirit have been
passed down to this present day.
As a multifaceted specialized trading company that handles fibers, textiles, and garments, as well as
chemicals and machinery, Chori not only builds relationships with its clients but also engages in capital investment
and production on the strength of its semi-industrial/semi-commercial business scheme. Underscoring the valueof its relationships with various stakeholders around the world, the Company strives to address poverty, health,resource waste, climate change, water shortages, and a range of other global concerns. In the face of ourradically changing social and economic environments, we are advancing our business in pursuit of not only thegrowth of the Company but also the sustainability and development of the world as a whole.
As declared in our corporate philosophy, at Chori we engage in business with sustainability at theforefront of our minds by developing environment-friendly products, conducting procurement and export
control activities that ensure compliance, and establishing a system to optimize operations so that we cancontribute to the realization of a better society as global citizens.

Establishment of Sustainability Promotion Preparatory Committee
With a view to establishing a specialized committee to promote sustainability (fromfiscal 2024), as announced in Chori Innovation Plan 2025, the Sustainability Promotion
Preparatory Committee was established in July 2023 to examine Chori’s basic policy
on sustainability, material issues, its value creation story, and other sustainability-related
matters. A working team consisting of members selected from various departments
and CARAT will also establish.

CHORI Innovation Activities (“CHOI-Katsu”)
We have been working to improve our employees’ operational efficiency through our Companywide CHORI Innovation
Activities (“CHOI-Katsu”), established in fiscal 2013 with the aim of achieving department- and division-specific goals.
Action Policies in Fiscal 2023
• Compliance with communication   • Health and communication   • Eco-friendliness and cleanlinessBusiness Environment and Chori’s Countermeasures
Strategy

Climate change

Business Environment

Chori’s Countermeasures• Importance placed on reducing companies’
financial risk through measures to address
climate change•D isclosure of information in accordance withthe recommendations of the Task Force on
Climate-related Financial Disclosures (TCFD)
Page 45

Marine plastic
pollution• Need to ensure traceability and develop a
recycling system•D evelopment and deployment of BLUECHAINTM• Expansion of initiatives for biodegradable
resin

Pages 37 and 44

Escalation ofhuman rights
issues•G
 lobal need to improve working conditions
and respect human rights along the supply
chain• Formulation of human rights policy• Emphasis on CSR for procurement activities
Page 53

Changes in
consumerawareness• Increasing ethical consumption•E mphasis on the story behind each product• Growing demand for environment-friendly
products, including those based on the BLUECHAINTM concept and plant-based foods(plant-derived alternative meat)
Pages 37 and 44

41

CHORI CO., LTD.

In establishing a management foundation aimed at achieving sustainable growth, the Chori Group recognizes theimportance of taking a proactive approach to environmental issues, cooperating with business partners in CSR
procurement and other activities, promoting occupational safety management, developing human resources, andcontributing to the betterment of society and local communities. On April 28, 2023, we announced Chori
Innovation Plan 2025, our new medium-term management plan based on VISION2030—The Company We Aspire
to Be—focusing on the themes of “sustainability,” “well-being,” and “innovation.” Under Chori Innovation Plan
2025, we will enhance our corporate value by steadily implementing our three basic strategies and becoming a
corporate group that continues to evolve and change on a global scale, underpinned by our exceptional capabilities
and expertise. The Sustainability Promotion Preparatory Committee will examine our strategies related to all areasof sustainability.

Risk Management
The Chori Group has established and operates its risk management regulations for the purpose of identifying
potential risks in its business activities, reducing risks and preventing crises from occurring during the course of
normal business conditions, establishing a system for responding to crises that may present a significant impact
on its business activities, and responding promptly and appropriately to prevent the situation from deteriorating
and recover and normalize the situation as swiftly as possible.

Indicators and Targets
Recognizing the ongoing need to address sustainability issues, the Chori Group has established non-financial
targets ( see page 12) in an effort to “promote ESG management,” one of the basic strategies of Chori
Innovation Plan 2025.

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42

Management Foundation Tailored to Sustainable Growth

Chori’s Sustainability Initiatives

Environment
We understand the importance of respecting the environment when conducting our businessactivities and that it is our responsibility to address environmental issues in a proactive manner.

Basic Principle
With a view to generating substantive value and helping to realize a more enrichedsociety, Chori strives to provide accurate information and exceptional products tailoredto the needs of its customers. As the environment continues to garner global attention,
we believe the role we play in contributing to environmental conservation is essential toestablishing a solid management foundation.

Chori is committed to expanding its line of environment-friendly SDG-oriented products in the Fibers, Textiles, and Garments Businessand the Chemicals Business. As declared in Chori Innovation Plan 2025, we aim to increase sales of SDG-oriented products to ¥50.0
billion (two and a half times fiscal 2022 levels) in fiscal 2025.

Basic Policies
1. Consideration for the global
environment
2. Compliance with environmental laws
and regulations
3. Establishment and continuous
improvement of environmental
management system

Environmental Management Structure (As of July 1, 2023)
We have established the following structure in pursuit of our environmental initiatives.

Environmental Management Secretariat

Report internal
audit resultsAppoint

Internal Environment Auditors

Chemicals DivisionCorporate Management Division

Division Head

Division Head

Division Head

Division Environmental Manager

Division Environmental Manager

Division Environmental Manager

EMS Facilitator

EMS Facilitator

EMS Facilitator

Business Administration Dept.
(Textile)

Logistics Dept. (Textile)

Business Administration Dept.
(Chemicals)

Logistics Dept. (Chemicals)

Corporate Management Dept.

Human Resources &General Affairs Dept.

Synthetic Fiber
Business Dept.

Technical Material &Garments Business Dept.

Chemical & Materials
Business Dept.

Life & Fine Chemicals
Business Dept.

Information System Dept.

Internal Auditing Dept.

Affiliate Business Dept.

Pharmacovigilance &Quality Assurance Office

Health Insurance Society

Business Anchor Corporation* EMS: Environmental management system
Note: EMS facilitators concurrently serve as internal environment auditors and conduct internal audits in other divisions.

Environment-Friendly Business Activities
Since its acquisition of the ISO 14001 international standard forenvironmental management systems in 2000, Chori has continued
to conduct and engage in environmental conservation activities.
We adopted the 2015 standard in December 2017, acquired
ISO 14001 certification for our Hokuriku Branch and Okayama
Liaison Office in December 2019, and continue to engage inGroupwide efforts with Business Anchor Corporation and othersubsidiaries in our aim to help preserve the environment.

Close Up
In Pursuit of the SDGs
Chori’s initiatives in pursuit of the Sustainable Development
Goals (SDGs) are featured on its official YouTube channel.
The channel offers viewers an illustrated look into Chori’s
involvement in the world of environment-friendly, plant-based
foods and its participation in the lithium compound production
project in Chile.

https://www.youtube.com/watch?v=EfGtYiJVL0E

43

CHORI CO., LTD.

Fibers, Textiles, and Garments Business

The problem of environmental degradation, which has been a focus of attention for a variety ofindustries in recent years, has become a matter of significant concern in the fiber, textile, andgarment industries. The creation of new apparel made in response to recent trends and consumer
needs requires massive volumes of water and produces substantial amounts of greenhouse gases.
It is also true that large quantities of unsold clothing are discarded unused. To address theseissues, Chori introduced its BLUE CHAINTM initiatives to create environment-friendly products byseamlessly linking the vast and complex fiber, textile, and garment industries and integrating thefunctions of each company.

Lithium Compound Production Project in Chile 

Appoint

Environmental Management Officer

Textile Division

BLUE CHAINTM 

See “Branding in the Fibers, Textiles, and Garments Business” on pages 37 to 40.

President, CEO & COO
Propose EMS* revisions / improvements
Report EMS results

Chori’s Environment-Friendly Initiatives

Chemicals Business

The evaporation method commonly used to extract lithium components from brine water was
associated with concerns over its significant environmental impact. In contrast, Chori has been
participating in a project to produce lithium compounds through the use of a new method thatenables only lithium components to be extracted from brine water, thereby maintaining the water
volume of salt flats. Compared with our conventional approach, this new extraction method
contributes to significant reductions in production time, and because it does not hinge on weather
conditions, the production volume can be adjusted in line with market conditions. Through suchmeans, Chori will address the needs of the lithium-ion battery market, which we anticipate will
expand even more going forward.

Biodegradable Resin 

Chemicals Business

At Chori, we have recently been expanding our lineup of biodegradable resin, a raw material usedin seed sheets. Seed sheets serve as a means to prevent the evaporation of soil moisture and areused for weed and pest control. As they are made of biodegradable resin, seed sheets eventuallydecompose into water and carbon dioxide. Accordingly, they eliminate the need for disposing
waste while reducing the use of plastic, and because the seed sheets do not need to be collected,
they help enhance agricultural productivity.
We are also working to enhance our lineup of biodegradable resin derived from plants such as
cassava and taro, which we are utilizing as raw materials for garbage and shopping bags due tothe soft texture they generate.

Promotion of the Use of New Protein Sources Chemicals BusinessWith the global population projected to reach approximately 10 billion by 2050, there are concerns
over the potential imbalance between supply and demand for protein sources such as beef and pork.
At Chori, we have been focusing on soybeans, wheat, and green peas as a source of ingredients;
procuring ingredients of the highest quality and safety that comply with the Non-GMO Project
Standard from overseas; and supplying these ingredients to food processing companies in Japan.
We are also working to promote the use of sunflower protein, cricket powder, and other new
sources of protein throughout the Group. In addition, through our measures to prevent deforestation
for livestock and reduce the use of water and crops, we strive to help realize a greener and moreenriched global environment.

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Management Foundation Tailored to Sustainable Growth

Chori’s Sustainability Initiatives

Policies andRegulations

Risk
Type

Short-, medium-, and long-term climate-related risks and opportunities identified by the organizationand the impact thereof on the organization’s business, strategies, and financial plan
Strategy

Chori conducts scenario analyses to assess the transition risks and physical risks of climate change. In fiscal 2021, we
analyzed the 2°C and 4°C scenarios, and in fiscal 2022 we reanalyzed and examined the 1.5°C and 4°C scenarios. Under the
1.5°C scenario, similar to the 2°C scenario, the increase in physical risks is expected to be moderate, and we expect anincreasing number of opportunities to develop and expand sales of environment-friendly products. Meanwhile, under the 4°C
scenario, physical risks, such as unseasonable weather, will likely increase due to the lack of progress in climate change measures.
Based on the above assumptions and background, we conducted a scenario analysis for the period up to 2030. On thebasis of these results, we identified the following risks and opportunities related to climate change and determined theirimpact on our business and the measures we will take in response.

Marketchanges
associatedwith thetransition to
decarbonization

Transition Risk

The Company’s response to climate change and other environmental issues is reported regularly at Board of Directors’
meetings and discussions are held based on the details of these reports. Ultimately, it is the responsibility of the Board of
Directors to assess, respond to, and disclose details of the Company’s risks and opportunities related to climate change.
With the general manager of the Corporate Planning Division, who also serves as a director, in charge and the Corporate
Management Department as the responsible division, the Company manages and promotes organization-wide measuresagainst climate change, including the TCFD recommendations, and other environmental issues as well as compiling importantCompanywide policies and measures, which are reported and proposed to the Board of Directors for discussion at
Board meetings.
With regard to business-specific strategies, etc., on climate change and other environmental issues, the general managersof the respective sales departments, in cooperation with the general manager of the Corporate Planning Division and the
Corporate Management Department, report summaries of such strategies, etc., to the Board of Directors, which are thenassessed and discussed at Board meetings.
In addition, on April 28, 2023 we launched our medium-term management plan Chori Innovation Plan 2025. To address
all sustainability issues, including climate change, we will establish an expert committee and strengthen discussions on
strategies and initiatives related to all aspects of sustainability, including the TCFD recommendations.

Key CountermeasuresIncrease in purchase prices and various
costsContinue to monitor the actual amount andimpact of the Company’s GHG emissions
Strengthen lineup of zero-carbon products

Low impact*

 emporary declines in trading volume dueTto reduced production

Strengthen and expand global supply chain

MediumimpactExpansion of waste-reduction
efforts

 reater demand for recycling-relatedG
products
Greater demand for products that
contribute to waste reduction

Expand trading of recycled products· Recycled plastic chips· Recycled polyester fiber (ECO BLUE™)

MediumimpactIncreased use of renewable
resources

Greater demand for bio-related products

Expand trading of biodegradable resin
products· Seed sheets

MediumimpactExpansion of policies and initiatives
aimed at achieving carbon neutrality
throughout the automotive life cycle

 reater demand for lithium-ion-relatedG
products due to the shift to electricvehiclesExpand trading of lithium-ion-relatedmaterials· Participate in lithium compound production
project

MediumimpactExpansion of policies and initiatives
aimed at achieving a carbon-free
supply chain in the textile industry

 educed cost of decarbonizationRmeasures by spearheading sustainability
initiatives across the supply chain

Promote sustainability initiatives throughout
Chori’s unique supply chain (BLUE CHAIN™)

MediumimpactIntroduction and expansion ofStrengthening
carbon taxes
of decarbonization measures
Strengthening of regulations on
China, our largest export partner

Rapid expansion of circular
economyIncreasedstakeholderinterest in
sustainability

Increasing
frequency andseverity ofnaturaldisasters andunseasonable
weather

Financial
ImpactImpact on Business
Risk / Opportunity)

Risks and Opportunities

MarketGovernancePhysical Risk

The Board of Directors’ system for monitoring climate-related risks and opportunities andmanagement’s role in assessing and managing such risks and opportunities

Technology

In 2015, the Financial Stability Board (FSB) established the Task Force on Climate-related Financial Disclosures (TCFD) at therequest of the G20.
As the world strives to limit the increase in the earth’s average temperature to below 2˚C above preindustrial levels as
stipulated in the Paris Agreement in 2015, the aim of the TCFD is to encourage companies to disclose climate-related financial
information to enable investors to make appropriate investment decisions.
At Chori, we will work to appropriately disclose information on the recommended disclosure items in accordance with the
Recommendations of the Task Force on Climate-related Financial Disclosures, the final report released by the TCFD in June 2017.

Acute / Chronic

Information Disclosure Based on the TCFD Recommendations

Major Risks and Opportunities Related to Climate Change, Their Impact on Our Business, and Measures to Take in Response(

Greater demand for nonpetrochemical products and othersustainable products reater demand for environmentallyG
conscious products

Reluctance to buy petrochemical
products

 emporary decline in trading volume
Tarising from the shift to environmentfriendly products

Strengthening of information
disclosure requirements related toclimate change measures ecrease in corporate value and investD
ments due to inadequate response
Increase in customers and investments
due to climate change measures

Water shortages

 emporary declines in trading volume dueTto reduced production

Large-scale natural disasters
Rising sea levels

Rising average temperatures

1.5°C

Enhance lineup of environmentally conscious
products· Highly stretchable functional yarn (TEXBRID™) Medium· Environmentally conscious fiber materials
impact· Black and colored spun-dyed yarn
· Natural Dye™
· MEDITERRANEAN GIZA™
· MILLENNIUM ORGANIC™
· Non-toxic materials· Water-repellent, recycled yarn fabric (free Low impact
of fluorine)· Chemicals for cleaning agents (free ofchlorine gas)
· Promote GHG reduction measures anddisclose information based on the TCFD
framework

MediumimpactLow impact

Strengthen global supply chain· Strengthen lineup of water-consciousTemporary reduction in trading volume
products
and longer lead times due to supply chain · ECO BLUE™ × WS™
disruptions
Reduced trade of fall and winter apparel reater demand for agrochemical-relatedG
products
Greater demand for disinfection(mouthwash)-related products

4°C

Low impact
Low impact

Examples of Products· Strengthen lineup of next-generation
products· Agrochemical ingredients (disinfectants, riceherbicides, acaricides, and herbicides)· Pharmaceutical products (iodine)

MediumimpactNote: 1. Classified according to the scale of impact on sales and segment profit. Those deemed to have a greater impact are indicated with a darker shade.
2. Key reference scenarios include the World Energy Outlook 2022 of the International Energy Agency and the Intergovernmental Panel on Climate Change’s Shared
Socioeconomic Pathways.

* Financial Impact of Introducing and Expanding Carbon Tax (Quantitative Assessment of Business Impact)
1.5°C Scenario
2030

US$107,000 (approx. ¥13 million)

2050

US$191,000 (approx. ¥23 million)

Note: C alculated by multiplying fiscal 2021 GHG emissions by the amount of carbon taxes projected under the 1.5°C scenario (for Scope 2 emissions, calculated bymultiplying the CO2 emissions factor)
No estimates were made under the 4°C scenario as carbon trading in Japan is expected to remain unchanged.
In both scenarios, we found that the impact on our business will be very minimal and that opportunities to develop and expand sales of environment-friendly products will
increase. We will continue to conduct business impact assessments to ensure appropriate risk management and translate business opportunities, such as the greater demandfor environmentally conscious products, into increased earnings.

45

CHORI CO., LTD.

Tsumugu Report 2023

46

Management Foundation Tailored to Sustainable Growth

Chori’s Sustainability Initiatives

Society
At Chori, we promote activities aimed at realizing the well-being of all stakeholders, including

The process for identifying, assessing, and managing climate-related risks and the approach to­integrating this process into the organization’s overall risk management
Risk
Management

employees, business partners, and local communities.

Operation of Risk Management Regulations 
At Chori, we have established and operate risk management regulations with the aim of identifying potential risks in our businessactivities, reducing risks and preventing crises from occurring during the course of normal business conditions, establishing a system
for responding to crises that may pose a significant impact on our business activities, and responding promptly and appropriately toprevent the situation from deteriorating and recover and normalize the situation as swiftly as possible.

Risk Management under Normal Business Conditions 
Under the guidance of the risk management deputy officer (the president of the Company), the risk management promotion officer (thedeputy general manager of the Corporate Planning Division, in charge of the Human Resources & General Affairs Department) and the
Human Resources & General Affairs Department (the organization responsible for risk management) identify material issues within theorganization; formulate various measures to mitigate, prevent, and promptly detect risks that may exist within the Company; andimplement the necessary educational and training programs in a voluntary and systematic manner. They also follow up on the results ofcrisis response measures, verify their impact, identify issues, and seek measures toward improvement.
In the Company’s risk management regulations, climate-related risks are defined as risks that relate to either the “external businessenvironment, including society, the economy, and politics,” or the “business continuity plan,” and are addressed by the Corporate
Management Department in cooperation with the risk management promotion officer and the Human Resources & General Affairs
Department. As demonstrated by the results of the aforementioned scenario analyses, ensuring a stable supply chain is extremely
important to the continuation of our business. With respect to transaction-related risks classified in our risk management regulations,in order to address the risk of supply chain disruptions that stem from various supplier-inflicted issues and to fulfill our social
responsibilities for procurement activities in Japan and overseas, the Company has established CSR procurement guidelines andpromotes procurement activities that underline the importance of corporate ethics, legal compliance, safety, disaster prevention,
environmental conservation, product safety, quality assurance, human rights, and working conditions.

Human Capital
Chori regards each and every one of its Group employees as its most valuable management resource and has established its policy
for human resources, “Utilize people, and be useful to them. Nurture people, develop with them. Connect people, and join together
with them,” to secure and nurture exceptionally talented individuals who are indispensable to the growth of its business.
As a company that has been in business for over 160 years, we believe it is our mission to continue to grow together with
our employees and pass on our traditions to the next generation. We aim to realize a cycle in which each employee gains a
sense of pride and accomplishment in their work, feels a sense of personal and professional growth, and gets a sense ofhappiness, which in turn, leads to the improvement of corporate value.

Comment

Crisis Response Measures 
In the event of a crisis, placing the highest priority on ensuring the safety and protecting the lives of each individual, the following
measures must be taken in accordance with Company regulations: communicate and report details of the crisis based on the crisis
communication system; establish a crisis response headquarters under the direction of the Risk Management Deputy Officer; andexecute tasks, communicate the emergency, report the results of investigations, and implement measures to prevent recurrence
through the crisis response headquarters.

Indicators
andTargets

Indicators used to assess climate-related risks and opportunities in accordance with the organization’s
strategies and risk management processes, targets used by the organization to manage these risks
and opportunities, and progress toward the achievement of these targets
The Group has been compiling data on the actual amount of GHG emissions produced by its business activities since fiscal 2020 andis aiming to reduce GHG emissions (Scope 1 and Scope 2) and achieve carbon neutrality by 2050. We will also look to reduce Scope
3 emissions in order to reduce GHG emissions throughout our entire supply chain.
In regard to our GHG emissions reduction targets, we intend to determine them through a dedicated sustainability committee thatis currently being developed.

GHG Emissions Results
Category
Scope 1
Scope 2
Scope 3Type

Direct emissions—
Indirect emissions—
Total (Scope 1 + Scope 2)
Category 1
Purchased goods and services
Category 2
Capital goods
Fuel- and energy-related activities not included in
Category 3
Scope 1 or Scope 2
Category 4
Upstream transportation and distribution
Category 5
Waste generated in operations
Category 6
Business travel
Category 7
Employee commuting
Category 9
Downstream transportation and distribution
Category 12
Processing of sold products
Scope 3 Total

Actual Amount of
FY2020 (t-CO2)

Actual Amount of
FY2021 (t-CO2)

385
956
1,341
—
—

330
866
1,196
1,090,766
131

—

41

—
—
126
238
—
—
364

113,462
102
128
243
461
1,318
1,206,654

Scope ofCalculation
Consolidated

Nonconsolidated

Consolidated
Nonconsolidated

Scope 1: Direct emissions
Scope 2: Indirect emissions
Scope 3: Supply chain emissions (actual amounts for fiscal 2020 consist only of emissions from “business travel” (category 6) and “employee
commuting” (category 7))
Note: GHG emissions are estimated using the GHG emissions calculation method defined in the GHG Protocol.

47

CHORI CO., LTD.

Satoko Nakayama
Senior Executive Officer,
Deputy General Manager ofCorporate Planning Division(Human Resources &General Affairs Department andInformation System Department)

A Company That Will Continue to Nurture and Utilize Its Employees
Over its more than 160 years in business, Chori has faced a number of challenges amid some turbulent times.
Through it all, what enabled Chori to overcome such challenges was its employees. As a trading company,
Chori’s most valuable management resource is not its products but rather its employees—a competitive
strength of the Company that has endured years of adversity. The willingness to boldly take on challenges is apart of the DNA that Chori has carefully cultivated over the years. “Utilize people, and be useful to them.
Nurture people, and develop with them,” which comprises a part of our policy for human resources, tells thetale of Chori, a company that will continue to nurture and utilize its employees.
Meanwhile, since 2003 Chori has continued to transform and grow as a company in accordance with
the needs of the times. Based on the theme of establishing various foundations to further evolve our business,
in Chori Innovation Plan 2025 we declared “improve employee engagement” as one of our top priorities fordeveloping human resources, given the importance of growing together with our employees in today’s age.
Unlike the approaches we have taken in the past, in order for the Company and its employees to continue totruly grow together, we must align our vectors by facing the same direction and pursuing the same goals, andthe Company must be fully committed to ensuring that its employees feel a sense of fulfillment and happinessthroughout this process of mutual growth.
Through this transformation and growth, Chori will advance together with its employees to its next stage
as a company.

Diversity and Inclusion 
CARAT is a Companywide business transformation project to be completed in April 2025 that involves replacing our manual mission-critical systemthat has been used for over 20 years with SAP, a management resource planning software, while changing various aspects of our business, ourorganization, and employee mindsets. By transitioning from our current organizational structure centered on the sales division to a flat organizational
structure, we will create an organization that allows women in divisions other than sales, such as logistics, to advance to management positions andbeyond. Many of our locally hired employees overseas are women, and we will continue to move gradually forward by promoting the advancementof women with immense potential, such as is the case with one of our Japanese employees working in China, who is the first employee with­children to be assigned overseas, and our second such employee who will be assigned to Taiwan this fall to become a store manager.
Chori also promotes diversity in its recruiting process. We are raising the percentage of women among new graduates while hiring
more students with foreign nationalities. Their global perspectives and sincere attitudes toward work are a tremendous source of inspiration
for Japanese students. Our new-graduate employees are the people who will continue to pass on Chori’s DNA to future generations. In
addition, for the past seven years we had devoted our time and resources to our mid-career hiring, which was relatively small in scale, but
recently our recruitment of new graduates has surpassed that of mid-career employees. In the past, mid-career employees were hired fortheir ability to make an immediate impact, but now they have become an extremely valuable presence that brings a breath of fresh air into
the organization. Upon joining the Company, mid-career employees are asked to offer their opinions in regard to the areas of our businessthat need to be improved as well as our areas of strength. In so doing, we are able to gain an overarching view of our business through theeyes of mid-career employees, which is used to make further improvements to our business. Our business opportunities have expanded asa result, and it has become completely ordinary for mid-career employees to be promoted to management positions. We are also actively
recruiting foreign nationals for mid-career positions, which truly embodies our commitment to diversity and inclusion.
In the final interviews for mid-career hires, we always ask if our potential employees would enjoy being a part of a company that willcontinue to change into the future. We strive to make Chori an even stronger organization by bringing in fresh perspectives from various angles.
At Chori, diversity is about respecting all genders, nationalities, backgrounds, experiences, and individualities, while inclusion is aboutbuilding an organization that embraces the uniqueness of each individual.

Tsumugu Report 2023

48

Management Foundation Tailored to Sustainable Growth

Chori’s Sustainability Initiatives

Data Related to Work–Life Balance

Human Capital
Human Resource Strategies and the Personnel We Seek

2.

Always act responsibly as amember of Chori and keep
the Company charter close
to their heart

Have a spirit ofindependence

Use of Annual Paid Leave(Hours)(%)

18

As globalization continues to spread at a rapid rate, employees will be expected to utilize their full capabilities. We cultivate our
employees to be able to respond quickly to changes, to think and act on their own will with a sense of curiosity and a broad perspective,
and to become an integral part of carrying the Group forward into the future.

1.

Monthly Overtime Work

Personnel We Seek

3.

4.

5.

Constantly work hardand come up withcreative ideas as resultsfocused professionals

Expect the best andprepare for the worst

Respect the values andcultures of people fromaround the world

15.6

14.0

14.7
12.4

12

40

6

20

0

2018

2019

2020

2021

2022

（FY）

Note: M onthly average overtime hours for nonconsolidated employees(excluding managers and dispatched employees)

0

54.8

51.0

60

15.0

38.9

41.2

2018

2019

43.3

2020

2021

（FY）

2022

Note: A
 verage number of paid leave days taken per year by employees,
including those assigned overseas

Diversity and Inclusion
Basic Policy 

New Employee Training 

Chori actively recruits people who are diverse in terms of careerbackground, nationality, age, and ethnicity. The active participation of diverse personnel has changed not only our approach tobusiness but also the mindsets of our employees.
Moreover, to allow our employees to continue to work, wehave established a system that accommodates the life eventsof our employees and their families, such as marriage, childcare,illness, and nursing care.

Upon joining the Company, new employees receive orientation to acquire the basic knowledge
and proper etiquette to become a responsible working adult and attend 30 lecture sessions
and take certification exams twice a year. New employee training was held online once again in
fiscal 2022.

Career Development Support 
At Chori, we hold level-specific training for directors and employees, invite instructors fromoutside of the Company, and conduct lectures led by our employees. Moreover, in fiscal 2022,
these programs were once again held through online venues and the use of video. Moreover, tospeed up the pace of globalization, we will capitalize on our system for dispatching trainees
overseas while continuing to conduct our in-house training program.

Chori Innovation Plan 2025 KPIs
• Increase the percentage of women among career-trackhires and employees who have transferred to careertrack positions to over 30%• Increase the percentage of male employees taking
childcare leave• Increase the percentage of women in management positions

Supporting the Balance of Work Life and Childcare 

Employee Engagement
Through effective two-way communication from both top-down and bottom-up approaches, we will work to create an open andpsychologically safe work environment and improve the corporate culture so that each employee feels a sense of pride andaccomplishment in their work.
In fiscal 2022, we began engaging in face-to-face communication once again whenever possible, which we were unable to do
during the COVID-19 era, and held luncheon meetings for the president and employees on 20 occasions, which were attended byaround 100 employees in total. Through such opportunities to establish direct communication, we will expand the circle ofcommunication between senior management and employees.
An employee engagement survey will be conducted through an external organization to reconfirm the Company’s issues andfurther improve its corporate culture and working environment.

An increasing number of employees who have returned fromchildcare leave are utilizing the shortened work-hour system forchildcare to balance their work and family life.
Also, as a part of our employee benefit program, we have avariety of support systems in place that provide employees withfinancial assistance for childbirth, self-development, and childcare.

FY2020

FY2021

FY2022

17

13

Number of Employees
Taking Childcare Leave*13(9 of whom are male) (9 of whom are male) (6 of whom are male)

Number of Employees
Working Shorter Hours
Due to Childcare

9

12

14

* Number of employees who began taking childcare leave in each fiscal year

Recruiting Diverse Human Resources 
As a part of its action plan based on the Act on Promotion of Women’s Participation and Advancement in the Workplace, Choriestablished the goal of raising the percentage of women among new graduates to 20% between fiscal 2016 and fiscal 2022. Goingforward, Chori will strive to continue to promote diversity and inclusion in the workplace, which includes creating an environment
where women can maximize their potential and employing people with disabilities.

Creation of a Comfortable Workplace Environment We regard people as our most valuable management resource, and for that reason it is essential that we provide employees withworkplace environments that allow them to work in a healthy and active manner. We conduct the following initiatives with this in mind,
particularly with the aim of providing employees with a healthy work–life balance.
Eliminate Long Work HoursIn principle, designate one day of theweek as a no-overtime dayRequire all staff to leave their workplaceby 9 p.m. every dayRestrict the number of overtime hours
Automate work processes with robotic
process automation
Improve the efficiency of meetings

49

CHORI CO., LTD.

Encourage Employees to Take Annual Paid Leave equire use of annual paid leaveR(five days)
Encourage employees to takeseasonal holidays
Eliminate restrictions on the number oftimes half-day leave can be taken forthe purpose of childcare, nursing care,or hospital visits

Promote Flexible Workstyles

Improve flextime system (no core hours)Utilize work-at-home system andweb-conferencing system
Conduct one-on-one meetings
between employees and their superiors
Provide option to relocate to otherlocations (transfer to other branches
domestically and regionally)

Ratio of People with Disabilities

Number of New Graduates(%)(Number of employees)

3.0

2.0

2.4

2.9

2.3

2.3

2.2

2.2

2.3

2.3

30

2.3

21

2.1

18

20

1.0

10

11
3
8

0

2018

2019

Company employment rate

2020

2021

2022

Statutory employment rate

(FY)

0

Male

2018

8

4

13

14

2019

2020

18
12

5

4
8
2021

13
2022

(FY)

FemaleNote: Results as of March 31 of each fiscal year

Tsumugu Report 2023

50

Management Foundation Tailored to Sustainable Growth

Chori’s Sustainability Initiatives

Health and Productivity Management

Occupational Safety Management

Health Declaration February 14, 2018

Ensuring of the Safety of Our Employees Overseas

1. Enhancement of Awareness ofthe Health of Employees

2. Approach to Health andProductivity Management

3. Responsibility to Society andthe Future

Chori believes that the health of its employees andtheir families is significant to the success of its
business and that the vitality of its employeestranslates into the vitality of the Company. Basedon this belief, we strive on an ongoing basis toenhance awareness of the health of our employees.

Chori actively supports and promotes initiatives that
help maintain and improve the health of its employees
and their families with the goal of realizing healthand productivity management.

Chori will do what is necessary to ensure the healthof its employees and achieve sound corporate
management. In so doing, we will make a difference
to society and realize sustainable growth.

 ealth and Productivity Management
H
Promotion Structure
We established our Health Promotion Committee in April 2018 andhave since been promoting efforts to realize health and productivity
management. Chaired by the deputy general manager of the
Corporate Planning Division (in charge of the Human Resources &General Affairs Department), the Health Promotion Committee
consists of industrial physicians and nurses from Chori’s in-house
health clinics as well as the employees of the Human Resources &General Affairs Department and members of the Chori Health
Insurance Society. Through the initiatives of the Health Promotion
Committee, Chori aims to maintain and improve the health of its
employees and their families and fulfill its Health Declaration. In
addition, a debriefing session on White Paper for Chori’s HealthManagement is held once a year to assess the current state ofhealth management and to discuss any issues.
President, CEO & COO

Ensuring the Health of Employees
We conduct oral and dental checkups and flu vaccinations on a
yearly basis. As part of the regular health examinations,employees aged 30 and 35 years and over can undergo acomprehensive medical checkup once a year at the expense of
the Company, and dependents aged 35 years and over of theinsured party are entitled to receive up to ¥32,000 in subsidies
for medical checkups.
We also conduct stress checks to prevent the possibilityof our employees suffering from mental illnesses. Employees
who work over 40 hours of overtime ina month are required to consult with anindustrial physician in the following
month. In these ways, we work toensure the health of our employees
through the support of medical
Certified for the fifth
consecutive year since 2019
experts.

Health Declaration
Deputy General Manager of
the Corporate Planning Division(in charge of the Human Resources & General Affairs Department)
Health Promotion Committee
White Paper for Chori’s Health Management(analyze, set targets, and examine
effectiveness)

CHOI-Katsu(Companywide activities)

Health Management Meeting
Prevention of serious lifestyle-related diseases
Promotion of health checkups

Health Promotion Subcommittee
Health seminars, yoga classes, etc.
Specific events and internal education

In-house health clinic

Health insurance association

Comment

Yuya Fujishima
Supervising physician at Chori’s
in-house health clinic inside
Osaka Headquarters

51

CHORI CO., LTD.

Rate of Employees and Family Members
Who Undergo Regular Health Checkups
FY2020

FY2021In the event of a natural disaster or a terrorist attack, whether inJapan or overseas, we must be fully prepared to immediately
identify the whereabouts of our directors and employees,
confirm their safety, and respond appropriately in a timely
manner. Chori has in place a proprietary system dubbed
Overseas Business Trip Inquiry (OBTI), which manages theoverseas business trips of domestic employees as well as thebusiness trips of employees dispatched abroad and of theemployees of overseas offices and helps to identify thelocation of each employee at a particular point in time.

Employees dispatched overseas and their families as wellas employees on business trips outside of Japan are also
enrolled in Chori’s overseas healthcare support program, which
provides medical assistance in Japanese in the event of an
accident or illness while abroad. The program helps to minimize
employee concerns regarding healthcare overseas due to its
differences from Japan.

Business Continuity Plan
Chori’s business continuity plan has been designed to place theutmost priority on the safety of its directors and employees andto enable the swift recovery of business operations after serious
disasters. We have implemented a safety confirmation system,
which verifies the safety of all directors and employees and theirfamilies in a timely manner, and we examine the system regularly.
A business continuity plan training course is also held once a
year, ensuring that we are fully prepared in the event of an
emergency.
Chori’s business continuity plan manual calls for a swift
recovery of business operations by the sales divisions. For the
corporate divisions, we have established a core operations
manual to maintain systems, finances, and other basic
business functions. Moreover, we have established a response
headquarters and operational procedures in preparation for
major disasters and pandemics.

Crisis Response Headquarters
Incident

ConvenePrimary Recipient ofInformation

Primary Members for
Response Measures
Employees of Human Resources &General Affairs Dept.

Department Manager of
Human Resources &General Affairs Dept.
ReportDeputy General
Manager of Corporate
Planning Division(Human Resources &General Affairs Dept.)

Establish contact /share information

Cooperate

DivisionsManager ofCorporate
Management Dept.

Relevant
Companies

Supervisor ofOverseas Stores

President, CEO & COO

FY2022

Employees

100%*

100%

100%

Family Members

52.9%

61.5%

62.1%

* Excludes expatriates who were unable to return to Japan due to COVID-19

Labor union

We offer a health support system that is attuned to changes in lifestyles.
At Chori, we have internal health clinics in place at both headquarters in Tokyo and Osaka where employees
can receive medical care and health guidance after receiving the results of their medical checkups. This
enables the early prevention of lifestyle-related and various other diseases from becoming more serious andthe therapeutic intervention for such diseases.
In recent years, we have seen a decline in the percentage of male smokers as well as a reduction in excessive
alcohol consumption due mainly to the effects of COVID-19. However, I have the impression that the conditionsof employees with preexisting lifestyle-related diseases, such as diabetes and dyslipidemia, and mental healthissues have worsened due to a lack of exercise. In the post-COVID-19 era, it will become essential to introduce
health initiatives that are suited to new ways of living as well as to individual workstyles and work environments.
Our clinics will continue to do everything possible to help maintain the health of each employee and provide
information and support that helps promote healthier lives amid these new ways of living.

Safety and Health Management
Each month, a Safety and Health Committee member visits ourhead offices in Tokyo and Osaka to assess the workplaceenvironment. Comprising employees of the Human Resources &General Affairs Department, nurses of our in-house healthclinics, and representatives from the Chori Labor Union, theSafety and Health Committee ensures a safe workplaceenvironment for all of our employees through the regularmonitoring of humidity, temperature, and CO2 concentrationlevels by the floor patrol officer.
Moreover, our Tokyo and Osaka head offices, Hokuriku
Branch, and Okayama Liaison Office operate in compliancewith the Building Sanitation Law of the Ministry of Health,Labour and Welfare, with the facilities constantly ventilated at a
rate of 30 m3/h or more per person.

Safety and Health Committee
Committee Members

Chairperson

CompanyUnion

No. of Members

One
Occupational
physicianOne

Health clinic

One

Safety officer

One

Health officer

One

Referee
Total

Four or more
Nine or more

Tsumugu Report 2023

52

Management Foundation Tailored to Sustainable Growth

Chori’s Sustainability Initiatives

Local Communities and Society

Supply Chain Management
 perational Rules RegardingO
CSR-Based Procurement

CSR-Based Procurement Surveys

In order to fulfill its social responsibilities for procurement activities
in Japan and overseas, Chori has established its CSR
Procurement Guidelines and promotes procurement activities
that underline the importance of corporate ethics, legal compliance,
safety, disaster prevention, environmental protection, productsafety, quality assurance, human rights, and working conditions.
Within these guidelines, the Company has prescribed its 11
Guidelines for Corporate
Behavior in order to ensure that
employees are fully aware of its
social mission and the ways inwhich they must act at all times.

Declaration of Partnership Building

In an effort to promote procurement activities that focus on
corporate ethics, legal compliance, safety, disaster prevention,
environmental protection, product safety, quality assurance,
human rights, and working conditions, Chori conducts a CSRbased procurement survey once every two years, in principle,
to periodically check the status of the CSR-based promotion
activities of each supplier. In fiscal 2022, a follow-up survey
was conducted with suppliers that did not meet the CSR­procurement standards in fiscal 2021. By working collectively
with the sales departments, we identified the specific reasonsfor not meeting these standards and urged these suppliers tomake the necessary improvements. As a result, all but one
supplier taking part in the survey met the CSR procurement
standards. We will continue to follow up with the one remaining
supplier to ensure that it meets the standards.

Ensuring of Strict Compliance
Recognizing the importance of complying with laws and social norms when engaging in business activities with our suppliers, weundertake the following measures to ensure rigorous compliance throughout our operations.

Security Trade Control With the objective of maintaining peace and security around the world, Chori has formulated its Internal Regulations on Compliance with Export-Related
Regulations and Regulations on Fair Reporting and Management of Imports and Exports. We undertake strict export controls to prevent countries inpossession of weapons of mass destruction and conventional weapons from getting access to the highly sophisticated equipment and technology ofdeveloped countries.

Export Control Process and Training 

Cooperation with the Hokuriku Region
The Hokuriku region (Fukui Prefecture, Ishikawa Prefecture, andToyama Prefecture) boasts an extensive track record in the
manufacture of yarn and textiles spanning over 400 years andthrives on the production of synthetic fiber fabric. Since theestablishment of branch offices in Fukui Prefecture in 1929 and
Ishikawa Prefecture in 1934, Chori has worked to develop ayarn and textile business that is deeply rooted in this region. In
cooperation with synthetic fiber manufacturers, Chori began
wholesaling raw yarn to the textile industry (textile manufacturers)
and producing textiles with the industry. After the end of WorldWar II, Chori took sole responsibility for the sale of woolly nylon,
a raw material used in stockings, and grew in step with the
Hokuriku region during a period of high economic growth inJapan. SPX™ is a highly crimped polyester stretch yarn madefrom PIN texturizing processing technology in the Hokuriku regionof Japan that is highly regarded for its unique texture and isused in a wide range of products from fashion to sportswear.
On the strength of our high quality and footwork that can only
be realized through domestically made products, we willcontinue to work with local companies to provide products that
fulfill the needs of each customer and communicate the valueof made-in-Japan quality to the rest of the world.

Chief Export Control Officer
President, CEO & COO

Once applications for list control and catch-all control are filed by Chori’s Sales
Department, the Corporate Management Department conducts final approval. In October
2020, we began implementing a system that integrates the management of information
on export products and transactions, ensuring rigorous security trade control and stronger
compliance measures. This system is also designed to improve work efficiency andeliminate the use of paper.
In addition, Chori encourages its employees to obtain the STC Associate certificate
and holds internal workshops and training sessions to enhance their understanding ofexport control. In fiscal 2022, 27 employees acquired the STC Associate certificate.

Export Control Representative
Corporate Management Department(transaction screening / consultation)

Logistics Department (Textile) / Logistics Department (Chemicals)(transaction screening)

Chori has been able to maintain its presence in yarn andtextiles in the Hokuriku Region because of the cooperation ofits local business partners. The Fukui Chori Committee and the
Kanazawa Chori Committee were established by these business
partners as support groups for Chori’s business in the region.
These committees were combined and renamed as the
Hokuriku Chori Committee in 2001 and it continues to operate
to this day. Chori works alongside its member companies tohold annual meetings, cross-industrial exchanges, and lectures,
as well as publish newsletters to facilitate member interaction
and share information.

Highly Crimped Stretch Yarn SPX™
Chori’s official YouTube channel features a video withinterviews conducted at its cooperating plants in the
Hokuriku region. Along with the features of SPX™, the video
showcases the strengths of the Hokuriku region and theissues facing these companies such as labor shortage.
https://youtube.com/
playlist?list=PL7CfBM6uI5LZ-is6Rl9tBUE1ncJF69qUQ

Regulatory Trade Control Officer
General Manager of Corporate Planning Division
Export Control Officer
Manager of Corporate Management Department(approval of transaction screening)

Activities of the Hokuriku Chori Committee

Toyama Prefecture
Ishikawa Prefecture
Fukui Prefecture

Product Safety Initiatives 
In accordance with product safety management regulations, Chori establishes a productsafety inspection committee whenever a product is launched, sold, or used externally forthe first time.

Sales Department(application for transaction screening)

Legal Compliance Committee
Chair: President, CEO & COO
Manager of Internal Auditing Dept.,
Members: General Manager ofManager of Logistics Dept. (Textile),
Manager of Logistics Dept.
Corporate Planning Division,(Chemicals),
Deputy General Manager ofManager of BusinessCorporate Planning Division,
Administration Dept. (Textiles),Department Manager of Human
Resources & General Affairs Dept.,
and Manager of Business
Manager of Corporate
Administration Dept. (Chemicals)Supervisor: Audit & Supervisory
Management Dept.,
Manager of Affiliate Business Dept.,
Committee
Manager of Information System Dept.,

President, CEO & COO
Report results

Arrange

Product Safety Inspection Committee
Chair: Deputy General Manager of Corporate
Planning Division (Human Resources & General
Affairs Department and Information System
Department) and inspection committee members
Inspection committee members: Appointed by thecommittee chair
Held: As necessary• Inspect product safety

Secretariat(Human Resources & General Affairs Department)

Request product safety inspection
and use of company name, etc.

Command

Product Safety Management Manager
Manager of Business Administration Dept. (Textiles) andManager of Business Administration Dept. (Chemicals)• Aggregate and analyze issues• Comply with relevant laws and compile information

ReportInstruct andprovideinformation• Deliberate on important product safety matters (including reviews ofregulations and systems and follow-ups on the results of inspection meetings)

Departments• Secretariat of the Product Safety Inspection Committee• Prepare product management procedure•P roduct liability insurance coverage• Manage product safety•S tore and manage relevant documents• Respond to and resolve accidents•C ooperate with Toray Industries' affiliated divisions (reports, • Store and manage relevant documents
consultations, etc.)• Provide advice to and cooperate with subsidiaries and affiliates•P rovisional point of contact in the event of accidents•R eport to and consult with relevant and supervising ministries,
the National Institute of Technology and Evaluation (NITE), etc.

53

CHORI CO., LTD.

Propose product management procedure
Report accidents and submit detailed report
Approve product management procedure

Charity Walk Event
Chori is a co-sponsor of the WFP Walk the World charity walk event organized by the United
Nations World Food Programme (WFP). The Company also conducts a charity-linked projectcalled “CHOI-Aruki” in which donations are made to the WFP according to the number ofsteps walked by participants.

Sponsor of the 7th IR Presentation Contest for University Students
Chori was a sponsor of the 7th IR Presentation Contest for University Students held on
February 17, 2023. This year, thirteen teams belonging to the Union of Student Investment
Clubs (USIC) conducted 10-minute presentations based on their respective reports andresearch on a listed company, whom they were assigned to at random. The companies
provided information to their respective teams, reviewed their presentations, and helped students
improve their presentation skills. Chori was represented by Seinan Investment, an investment
club of Seinan Gakuin University (Fukuoka City), which won the Special Jury Award.

Tsumugu Report 2023

54

Management Foundation Tailored to Sustainable Growth

Corporate Governance
Chori has established systems to ensure appropriate operations with the aim of achieving sound management and sustainablegrowth. The Company strives to strengthen corporate governance by complying with laws and social norms, conducting
operations efficiently and effectively, and ensuring the credibility of its financial reports, while positioning the Board of Directors
as a body for conducting strategic decision-making and business oversight.

Composition and Overview of the Board of Directors, Executive Committee,
and Other Principal Committees
Description

Number of
Meetings Heldin Fiscal 2022

Board ofDirectors

The Board of Directors consists of all directors and has been positioned as the committee
responsible for making strategic decisions and overseeing the Company’s operations.
The Board of Directors meets at least once a month, in principle, to make decisions onimportant management matters and to supervise the directors’ execution of duties.

16

96.1%

95.8%

Executive
Committee

The Executive Committee consists of executive officers and those who were approved by
the Board of Directors and was established as an organization for conducting discussions
and exchanging important information and opinions on matters related to businessexecution.

26

100%

—

Audit &
Supervisory
Committee

The Audit & Supervisory Committee convenes regularly once a month to discuss mattersrelated to management conditions and audit results upon the exchange of information withoutside directors. In addition to attendance at important meetings of the Board of Directors,
directors who are Audit & Supervisory Committee members conduct individual meetings
with those in charge of the Sales Department and the Corporate Planning Division to makedecisions on important management-related matters (including on their process) andsufficiently audit and monitor the appropriateness of the execution of duties by each director(excluding those who are Audit & Supervisory Committee members) and executive officer.

15

100%

100%

GovernanceCommittee

The Governance Committee aims to enhance the Company’s corporate governancestructure in order to strengthen the independence and objectivity of the functions andaccountability of the Board of Directors regarding director nomination, remuneration, etc.,
and to protect the interests of minority shareholders.

5

100%

100%

Legal
Compliance
Committee

The Legal Compliance Committee is chaired by the president, CEO & COO and consists ofthe general manager of the Corporate Planning Division, the heads of corporate divisions,and other members. The committee deliberates on important compliance-related issues andreports the results to the Board of Directors and the Executive Committee as necessary.

6

—

—

Business
Investment
Committee

Chaired by the president, CEO & COO, the Business Investment Committee discusses
and deliberates the appropriateness of risk–return assessments and plans and thefeasibility of important investments and financing.

3

—

—

M&A
Promotion
Committee

The M&A Promotion Committee is chaired by the general manager of the Corporate
Planning Division and consists of the general manager of the Sales Department and othermembers. The committee deliberates on and examines matters pertaining to the businessportfolio of Group companies, including M&As and the Group’s medium- to long-term
management plan, from the perspective of improving consolidated management.

1

—

—

Name

Corporate Governance Structure (As of June 16, 2023) General Meeting of Shareholders
Election / dismissal

Audit /
supervision

Election /dismissal

Board of Directors

Cooperation
Audit & Supervisory Committee

Directors Who Are Not Audit &Supervisory Committee Members

Audit & Supervisory
Committee Members

Election /dismissal

Accounting Auditor

Governance Committee

1 internal director

4 internal directors

1 internal director

2 outside directors

1 outside director

Cooperation

2 outside directors

Inquiry

Cooperation

ReportReport on the status ofimportant businessexecution and other matters

ReportLegal Compliance
Committee

Supervision

Direct control
Supervision
Business Execution
Executive Committee

Internal Auditing
Department

President, CEO & COO

Executive Officers

Business Execution Organization (Business Departments / Administrative Departments) /Group Companies

Accounting audit
Internal audit

Attendance Rate
Attendanceof All Directors and Rate of Outside
Executive Officers
Directors

Committee Members
Overview of Corporate Governance Structure and Reasons for Its Adoption
To strengthen the management transparency and oversightfunction of the Board of Directors, Chori has an Audit &Supervisory Committee in place, the majority of which
consists of outside directors.
At the Board of Directors’ meetings, the directors(including those who are Audit & Supervisory Committee
members) engage in lively and sufficient discussions anddeliberations from a free and independent perspective inregard to the supervisory status of decision-making andbusiness execution. The Board also consists of two outside
directors who are Audit & Supervisory Committee membersthat audit the legitimacy and appropriateness of the statusof business execution from an external perspective in an
objective and rational manner. The Company therefore
believes that it is sufficiently fulfilling its management supervisory
function. Moreover, to ensure the prioritization of results, theCompany has set the term of office of directors (excluding
those who are Audit & Supervisory Committee members)
and executive officers to one year and has established amanagement structure that can respond to changes inbusiness conditions in a timely manner.



Organizational Structure

Company with an Audit andSupervisory Committee

Number of Directors (excluding
Those Who Are Audit &Supervisory Committee Members)

5 (of whom, 1 is an outside
director)

Term of Office of Directors
According to the Articles ofIncorporation
Number of Directors Who Are
Audit & Supervisory Committee
Members
Term of Office of Directors Who
Are Audit & Supervisory
Committee Members
According to the Articles ofIncorporation

1 year3 (of whom, 2 are outside
directors)

2 years

Number of Independent Officers

3

Executive Officer System

Yes

Performance-Linked
Remuneration System

Yes

Accounting Auditor

Deloitte Touche Tohmatsu
LLC: Committee chair: Committee member: Nonmember attendee

Fiscal 2023 Committees and Committee Members / Fiscal 2022 Attendance(Number of Meetings Attended/Number of Meetings Held*)
Name

Position

Board ofDirectors

Executive
Committee

Kazuo
Sakihama

President, CEO &COO, President andExecutive Officer

16/16

26/26

Tatsuyuki
SakodaDirector, Managing
Executive Officer

12/12

26/26

Kazuhiro
Tohge

Director, Executive
Officer

16/16

26/26

Kazuhiko
Shuto

Director

HirokoNoda

Outside Director

Audit &
Supervisory
Committee

GovernanceCommittee

Legal
Compliance
Committee

Business
Investment
Committee

5/5

6/6

3/3

5/5

3/3

11/12

M&A
Promotion
Committee

1/1

3/3

Shigemasa
Yabu

Director, Full-Time
Audit & Supervisory
Committee Member

16/16

Masaaki
SawanoOutside Director, Audit& Supervisory
Committee Member

15/16

15/15

5/5

4/6

Hiromasa
Suzuki

Outside Director, Audit& Supervisory
Committee Member

16/16

11/11

3/3

5/5

6/6

11/11

6/6

* Number of meetings held indicates the number of meetings held during each director’s term of office in fiscal 2022.

55

CHORI CO., LTD.

Tsumugu Report 2023

56

Management Foundation Tailored to Sustainable Growth

Corporate GovernanceDiversity of the Board of Directors

Executive Remuneration

The Board of Directors must decide on matters in a transparent, fair, prompt, and decisive manner, and therefore consists of memberswith a diverse range of views, experience, and skills. To strengthen corporate governance by ensuring the objectivity and appropriatenessof decisions made by the Board of Directors, at least one-third of the members are independent outside directors.

Directors
Name

Gender

Kazuo
Sakihama

Length ofService*1

Area of Expertise and Experience
Independent Director(Outside)

Corporate
Management

Global Business

Finance & Accounting

Legal & Compliance

Overview of Executive Remuneration System

10 years

Tatsuyuki
Sakoda1 yearKazuhiroTohge

5 years

Kazuhiko
Shuto

Newly
appointed

Hiroko Noda

1 yearFixed remuneration

Length ofService*2

Shigemasa
Yabu*3

1 year

Masaaki
Sawano5 years

Hiromasa
Suzuki*4

1 year10%45% (single year)(medium to long term)
Note: Percentages apply in thecase of full achievement of targets

Basic Remuneration
Remuneration
Type

Eligible
Recipients

Directors Who Are Audit & Supervisory Committee Members
GenderVariable remuneration

45%*1 Indicates number of full years of service as of June 16, 2023

Name

Basic Policy
A remuneration structure in which the remuneration of Chori’s directors (excluding directors who are Audit & Supervisory Committee
members; the same shall apply hereafter) is linked to shareholder interests shall be in place in order to fully function as an incentive tocontinuously improve corporate value. Our basic policy in determining the remuneration of each director is to set it at an appropriate
level based on their position, performance, and other factors. Specifically, director remuneration consists of three types: monthly baseremuneration, a yearly bonus, and performance-linked stock remuneration based on a stock remuneration scheme called Board
Benefit Trust-Restricted Stock (BBT-RS).

Grant Method

Area of Expertise and Experience
Independent Director(Outside)

Corporate
Management

Global Business

Finance & Accounting

Legal & Compliance*2 Indicates number of full years of service as of June 16, 2023
*3 Shigemasa Yabu served as a director of the Company for six years prior to concurrently serving as an Audit & Supervisory Committee member.
*4 Hiromasa Suzuki served as a director of the Company for one year prior to concurrently serving as an Audit & Supervisory Committee member.

Reason for Nomination of Outside Directors
The Company’s outside directors were nominated for the reasons outlined below as well as their ability to supervise managementfrom an external point of view, such as through the proactive exchange of opinions and advice at the Board of Directors’ and otherimportant meetings.
Name

Reason for Nomination

Masaaki
SawanoHe has been appointed as an outside director as he is expected to provide appropriate advice regarding the management of the Company
and on the grounds that he is deeply familiar with corporate legal work as a lawyer and has sufficient insight to supervise corporate management.
In addition, it has been deemed that he has no material conflict of interest with the Company and that no conflict of interest will arise withgeneral shareholders.

Hiromasa
SuzukiHe has been appointed as an outside director based on his many years of involvement in the management of Fujirebio Inc. and his wealth ofexperience in group management as a top executive of a company, which involved orchestrating the establishment of Miraca Holdings Inc. Asan outside director, he is expected to provide appropriate advice regarding the management of the Company. In addition, it has been deemedthat he has no material conflict of interest with the Company and that no conflict of interest will arise with general shareholders.

HirokoNoda

She has been appointed as an outside director based on her knowledge, experience, and abilities as a certified public accountant as well as
her sufficient expertise in management gained through her years of experience as an outside director and a management consultant. As an
outside director, she is expected to provide appropriate advice to the Company’s management. In addition, it has been deemed that she has
no material conflict of interest with the Company and that no conflict of interest will arise with general shareholders.

Performance-Linked Stock Compensation

Short-term incentive remuneration
Linked to performance in relevantbusiness year

Medium- to long-term incentive remuneration
Linked to degree of achievement of medium-term
management plan

• Directors who are not Audit &Supervisory Committee members• Directors who are Audit &Supervisory Committee members• Outside directors• Directors who are not Audit &Supervisory Committee members• Directors who are not Audit & Supervisory
Committee members

Cash

Cash

Stocks and cash—•N et profit before income taxes results• Progress of medium-term
management plan, etc.

•N et profit before income taxes over three-year period• Progress of medium-term management plan, etc.

Directors who are not Audit &Supervisory Committee members:
No more than ¥300 million annually

Directors who are not Audit &Supervisory Committee members:
No more than ¥300 million annually

Directors who are not Audit &Supervisory Committee members:
Maximum Number of Points(However, excludes the portion of employee salaryof directors who concurrently serve as employees)(However, excludes the portion of employee
salary of directors who concurrently serve as
employees)

The maximum number of points that may be granted to directors
during each applicable term (the adjusted number of points after
the end of each term) is the number of points obtained bymultiplying the number of fiscal years during the applicable termby 80,000 points (of which, 40,000 points are for directors).

(Resolution passed at the 69th General Meetingof Shareholders held on June 15, 2016)(Resolution passed at the 69th General Meetingof Shareholders held on June 15, 2016)(Resolved at the 76th Ordinary General Meetingof Shareholders held on June 16, 2023)

Monthly fixed remuneration based on
position• Paid at a certain time of the year
• Amount calculated according to theprogress of the medium-term
management plan and net profit
before income taxes in the given
business year

Based on their position, the Company shall provisionallygrant points to directors each fiscal year as stipulated
in the director stock benefit regulations. The number ofpoints shall be determined based on the directors’
contribution to business performance by multiplying
the degree of achievement of net profit before taxes
and other achievements by the performance-linked
coefficient at the conclusion of the medium-term
management plan, in principle. As a general rule, theCompany will grant one share per point in proportion to
the number of points determined.

Evaluation Index(Variable
Remuneration)

Maximum
Amount ofRemuneration

Bonuses

Fixed remuneration

Directors who are Audit &Supervisory Committee members:
No more than ¥100 million annually

Grant andCalculation
Method————Director Remuneration in Fiscal 2022
Total of Remuneration by Type (Millions of Japanese Yen)
Total Remuneration(Millions of Japanese
Yen)

Fixed remuneration(monetary)

Bonus* (monetary)

Restricted stockcompensation*3(non-monetary)

Directors (excluding Audit &Supervisory Committee Members)*1,2(Of Which, Outside Directors)

165
(7)

91
(7)

58
(—)

15
(—)

6
(2)

Directors(Audit & Supervisory Committee
Members)(Of Which, Outside Directors)

36
(18)

36
(18)

–
(—)

–
(—)

5
(3)

Total
(Of Which, Outside Directors)

201
(25)

128
(25)

58
(—)

15
(—)

11
(5)

Classification

Performance-Linked Remuneration
3

No. of Eligible
Directors*4*1 N ot including the portion of employee salary for directors who concurrently serve as employees.
*2 T he number of eligible directors above does not include one director (excluding directors who are Audit & Supervisory Committee members) serving without remuneration.
*3 O
 f the above items, bonuses and restricted stock compensation are stated as payment amounts corresponding to a performance benchmark of ¥12,400 million forconsolidated ordinary profit for fiscal 2022.
*4 A lthough the total number of directors paid is shown, the actual number of directors eligible for payment was 9 (including 4 outside directors).

57

CHORI CO., LTD.

Tsumugu Report 2023

58

Management Foundation Tailored to Sustainable Growth

Corporate Governance

Measures to Strengthen Corporate GovernanceRisk Management

Chori recognizes that the enhancement of its corporate governance is a matter of priority for management and has taken and willcontinue to take the following measures. We have expanded our profit margin through the introduction of a performance-linked
remuneration system and the efforts of directors to instill the same level of awareness for profits in all shareholders in order tostrengthen the Company’s performance over the medium to long term.

The Company shall identify the potential risks of business activitiesof the Group, make efforts to reduce the level of such risks, andprevent the occurrence of risk events, as well as develop asystem to promptly respond and take appropriate actions incase of the occurrence of risk events. The Risk Management
Rules, the Credit Management Rules, the Rules for Information
Security Management, the Rules for Protection andManagement of Personal Information, and other rules shall beestablished in respective departments in charge and be fully
understood by all through training and the preparation anddistribution of manuals. Those rules shall be continuously
reviewed and revised. Corporate divisions and businessadministration departments shall collaborate in monitoring thestatus of the Group’s risks and responding to risks. For newly
identified risks, departments shall be promptly assigned to be
responsible for said risk management and appropriate
measures shall be taken.

2001

2005

2012

2016

2018

2020

2021

2022

Separation ofManagementand Execution

Promotion ofCompliance

Revision of
Remuneration
SystemStrengtheningof Audit
Function

Promotion ofDiversity

Management
Transparency
and Fairness

Strengtheningof GovernanceTransition to
Prime Market

Discontinues the
Directors’
Retirement Benefits
SystemTransitions to a
Company with an
Audit andSupervisory
Committee

Increases the ratioof outside directors
on the Board of
Directors to morethan one-third

Implements
measures based on
TCFD
recommendations

Introduces the
Executive Officer
SystemEstablishes theLegal Compliance
Committee, withthe president, CEO& COO as thechairmanAppoints a female
director and a female
outside director (whois also an Audit &Supervisory
Committee member)

Institutes theGovernanceCommittee

Business and Other Risks•R isks related to changes in the external business environment• Risks related to the concentration of business in China’s
regions and markets• Country risk
• Credit risk of business partners• Risks related to exchange rate and interest rate fluctuations• Risks related to fluctuations in the price of raw materials• Inventory-related risks• Risks related to tax litigation• Risks related to business investments• Risks related to impairment of securities• Risk related to information systems and security• Compliance-related risks• Risks related to social and environmental issues andclimate change• Risks related to human resource activities• Risks related to natural disasters, infectious diseases, etc.

Evaluation of the Effectiveness of the Board of Directors
Chori conducts an evaluation of the effectiveness of the Board of Directors each year in order to realize a more effective Board of
Directors. The evaluation process involves conducting a questionnaire with all directors on the composition, operation, discussions,and support system of the Board of Directors and then compiling the views of each director.
Based on the results of the questionnaire, the Governance Committee and the Board of Directors evaluate and analyze theeffectiveness of the Board of Directors as a whole. Through this process, it was determined that the Board of Directors is composedof suitably qualified members that include outside directors, and the Board of Directors’ meetings are held in a free and open environment that facilitates constructive discussions and the exchange of opinions. Accordingly, it has been deemed that the Board of
Directors is operating appropriately on the whole and that its effectiveness is ensured.
Respondents

All eight directors (including those who are Audit & Supervisory Committee members) in fiscal 2022 (anonymous questionnaire)

Method of
Evaluation andAnalysis

Evaluation and analysis conducted by the Governance Committee and the Board of Directors upon aggregation of results bya third-party institution and ensuring confidentiality

Questionnaire
Content

Questions are based on the following nine major themes• Composition of the Board of Directors • Operation of the Board of Directors • Discussions of the Board of Directors• Monitoring function of the Board of Directors • Support system for directors (including those who are Audit & Supervisory Committee members)• Training • Dialogue with shareholders (investors) • Individual initiatives • General overview

Overview of
Evaluation Results

In our medium-term management plan, we have adopted ROE and ROIC as key performance indicators of profitability and capitalefficiency, which were viewed as issues in fiscal 2021, and set the ROIC for the fiscal 2025 plan at approximately 10% with the aim ofincreasing corporate value. Although the status of dialogue with shareholders and investors is reported to the Board of Directors by the
director in charge of investor and public relations, directors expressed the desire for more detailed feedback on the content of dialogues
on a regular basis. In following up on the progress of our medium-term management plan, we will promote further discussions on the
management and business issues that are identified going forward in order to continue to enhance the effectiveness of the Board of
Directors.

Maintenance of a Certain Level of Independence from Our Parent Company
As of March 31, 2023, Chori’s parent company Toray Industries, Inc. held 52.77% of voting rights in the Company. We
constantly work to strengthen the combination of our ability to sell and collect information on textiles and chemicals, which represent
our core business, in Japan and overseas and Toray Industries' ability to develop materials in order to generate synergies andenhance corporate value for both companies. By operating under a parent company, Chori is able to gain a better understanding ofmarket trends and the business environment, enhance its credibility, and enjoy other benefits that come with being a Group company.
With the exception of one director who does not execute business, the executives and employees at Chori do not concurrently
serve as executives or employees at the parent company or Group companies and the Company does not accept employees throughtransfers from other companies. In addition, at Chori we have our own management plan in place, through the execution of which wehave developed and will continue to develop our business. Transactions between Chori’s parent company, Toray Industries, Inc., andits corporate group are assessed and verified annually by the Governance Committee.

59

CHORI CO., LTD.

Ensuring of Thorough Compliance
Rules concerning compliance systems, such as the Guidelines for
Corporate Behavior, shall be established to set compliance withlaws and regulations and social ethics as a code of conduct ofour business. In order to make all directors, executive officers,
and employees of the Group fully aware of the initiatives forcompliance, corporate divisions shall collaborate to hold compliancetraining and other training programs. The Legal Compliance
Committee, with the president, CEO & COO as the chairman,
shall discuss important matters regarding the compliance of theGroup and report the results to the Board of Directors and the
Executive Committee as necessary. In the event of a significant
legal violation or compliance violation on the part of a management
executive, in accordance with the laws and regulations and the
Articles of Incorporation, the Governance Committee shall deliberateon the dismissal of the management executive in question and
the Board of Directors shall adequately discuss and consider hisor her dismissal based on those results.
A system of contact has been established throughout
Chori whereby executives and employees (including contract,
temporary, and other employees) can receive consultation andreport on compliance violations and other matters. In this way,
we have established a framework for reporting incidents byensuring the full confidentiality of whistleblowers, who are able
to receive consultation either in-house or through an external
point of contact depending on the nature of the incident.

Internal Whistleblower System
Consultant
KIITE (Fully confidential)
A system of contact through which whistleblowers can receive consultation andrequest warnings to be given to the person being reported while maintaining fullconfidentiality and without undergoing an in-depth investigation.
Human Resources & General Affairs Department

KOTAETE (Confidentiality possible at the request of the whistleblower)
A system of contact through which requests for consultation and investigation
involving both the whistleblower and the person being reported can be madeand matters such as workplace harassment and serious compliance violations
requiring investigation can be reported.
Legal Compliance
Committee
Internal
hotlineAudit & Supervisory
Committee

Law firm
External
hotline()Advisory office /external firm

Internal Control
Our Basic Policy on the Internal Control System was formulated
in May 10, 2006 to serve as a set of fundamental guidelines forthe establishment of a framework for ensuring the appropriate
execution of business toward realizing sound corporate
management and sustainable growth.
Since then, this policy has been amended to reflect changes
in the Group’s business environment and business activities.

For details on our internal control system,
please refer to our Corporate Governance
Report (in Japanese only).
https://www.chori.co.jp/sustainability/
governance/pdf/governancereport_20230616.pdf

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Management Foundation Tailored to Sustainable GrowthManagement Foundation Tailored to Sustainable Growth

Corporate GovernanceRoundtable Discussion with Outside Directors

Internal Audit
In regard to internal audits, the Company has established theInternal Auditing Department (consisting of six members as ofJune 16, 2023) directly under the president, CEO & COO.
The Internal Auditing Department conducts audits on theappropriateness and efficiency of the Company’s businessactivities from a fair and independent point of view. The
Internal Auditing Department also evaluates the status of theimplementation and operation of internal controls concerning
financial reporting in accordance with the Financial
Instruments and Exchange Act.

Outside directors and the Audit & Supervisory Committee
receive reports regularly on audits conducted by the Internal
Auditing Department and verify the status of business executionof each department and subsidiary. The Audit & Supervisory
Committee reports the results of audits to and exchanges
opinions with the Internal Auditing Department. The Audit &Supervisory Committee requests the Internal Auditing
Department to provide information or conduct investigations
when necessary, thereby working closely together to ensurethat audits are carried out efficiently.

Cross-Shareholdings
The Company and its subsidiaries may acquire and hold sharesof listed companies (hereinafter “cross-shareholdings”) in orderto maintain, expand, and sustainably develop their businesses.
In such cases, the Board of Directors and other bodies decideon acquisitions after determining the department in charge ofthe acquisition and considering the business conditions of theinvestees and the profitability of the investment. The Board of
Directors verifies the significance of the cross-shareholdings
each year and considers the sale or reduction of shares that are
deemed to be of no significance. Those shares that are held
are verified each year for their economic rationality from theperspectives of the significance of each acquisition and holding,
profitability of the investment, transaction scale, and relevant
profits and are either held or replaced upon resolution of theBoard of Directors and other bodies.

The Company appropriately exercises the voting rights ofcross-shareholdings from the perspective of whether or not theCompany and the investee company can expect increases intheir corporate value over the medium to long term, while
respecting the management policies of investee companies.

Holding of Shares for Purposes Other than Pure
Investment (Cross-Shareholding)
FY2020

FY2021

FY2022

Shares Held

30

31

27

Total Amount (Billions of Yen)

4.1

4.6

4.2

Note: The shareholdings of CHORI CO., LTD. for which the largest monetary amountis recognized on the balance sheets in relation to investment in equity securities(the monetary amount of equity securities recognized) have been stated.

Outside Director,
Audit & Supervisory
Committee Member

Outside Director,
Audit & Supervisory
Committee Member

Outside Director

Masaaki Sawano

Hiromasa Suzuki

Hiroko Noda

Leveraging Chori’s Strengths to Achieve Further Growth
Policies Regarding Constructive Dialogues with Shareholders

As outside directors, we will support Chori in its efforts to continue to evolve over the medium tolong term and strengthen its governance to facilitate this growth.

The Company promotes constructive dialogues with shareholders based on the following five policies.

(1) The executive officer in charge of information handling oversees
matters related to investor relations (IR) and public relations,cooperates with the Corporate Management Department andrelevant departments, and communicates information to­shareholders and investors. If a request is made for an interview
with an executive officer other than those in charge of mattersrelated to IR and public relations (including outside directors),
the Company will consider responding to the request withinreasonable limits based on its details.
(2) The relevant internal departments proactively cooperate toachieve constructive dialogues with shareholders and investors
through the preparation of disclosure materials and the sharing ofimportant information while conducting their business activities.

	Institutional investors
For institutional investors, the Company holds financial briefings
attended by the president, CEO & COO and management
executives upon the conclusion of its six-month and full-year
financial results announcements. At these financial briefings, theCompany reports on the details of its financial performance,
addresses various questions, and collects the opinions of its
shareholders. In addition, the department in charge of IR andpublic relations conducts individual visits and briefings for
institutional investors.
(4)Results of fiscal 2022 activities• Financial briefings for institutional investors and analysts: Twice• Company briefings for individual investors: Once
• Individual IR meetings: 10 times(3) Methods of dialogue other than individual meetings

General meeting of shareholders
	

The Company regards the general meeting of shareholders as
an opportunity to fulfill its responsibility of providing explanations
to shareholders and works accordingly to carefully address theirquestions and understand the intent of their opinions.
Individual investors
The Company promotes dialogue with its individual shareholders byholding company briefings exclusively for such investors, which areattended by the president, CEO & COO of the Company.

61

CHORI CO., LTD.

(5) Feedback
The Company promotes the sharing and use of information
obtained from dialogues through the reporting of opinions ofshareholders to the respective committees and their disclosure to
the directors, management executives, and relevant departments
as necessary.

What is your assessment of
Chori’s governance structure?

Sawano Chori has been working to develop its internal audit
system in order to realize a more robust governance structure.
As a part of this effort, the departments in charge of internal
audits at Chori’s head office and consolidated subsidiaries were
centralized in the Internal Auditing Department in fiscal 2021.
It has been stipulated that the activities of the Internal Auditing
Department be reported to the Board of Directors and the Audit& Supervisory Committee on a regular basis and to the Legal
Compliance Committee as necessary.
Suzuki
The centralization of auditing operations has enabled
the entire Group to be internally audited based on a single setof auditing standards. I applaud the fact that a foundation forGroup governance has been put in place once again. Moreover,in fiscal 2022 the reporting of activities of the Internal Auditing
Department enabled the Audit & Supervisory Committee todiscuss issues from a different perspective than in the past. In

this way, the Internal Auditing Department’s operations are also
making improvements each year.
Noda
I was appointed as an outside director at Chori in
2022, upon the establishment of its internal audit system.
I believe the Internal Auditing Department is operating at an
exceptionally high level and the contents of its reports to theBoard of Directors are highly sufficient. I commend the fact that
Chori is highly committed to steadily enhancing its governancestructure as a company that is listed on the Prime Market of theTokyo Stock Exchange. Meanwhile, one of the challenges toaddress moving forward is ensuring that the skills and knowledge
gained by employees in the Internal Auditing Department over
the years are passed on to the next generation of employees tosupport their development.
Sawano In addition to improving its internal audit system,in fiscal 2019 Chori established its Governance Committee,
consisting of a majority of outside directors. The GovernanceCommittee is a voluntary advisory body that assumes theduties of a nomination committee, remuneration committee,
and other committees that do not exist within the organization.

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Management Foundation Tailored to Sustainable GrowthRoundtable Discussion with Outside Directors

In fiscal 2022, the committee held concrete discussions on theselection and dismissal of directors, succession planning, andother matters based on the medium- to long-term projections
for the business. The substance of discussions has been
improving over these last few years, and going forward we willcontinue to invigorate discussions that contribute to Chori’s
next generation of growth.

Hiromasa Suzuki

What kind of discussions were held by the Board of Directors in regard to

the formulation of Chori Innovation Plan 2025?

In formulating Chori Innovation Plan 2025, discussions
were held, including by outside directors, on the issues facing
Chori in achieving medium- to long-term growth and its
approach to overcoming them. One of the issues raised was theneed to strengthen not only the financial aspects of its operations
but also the non-financial aspects, such as ESG considerations.
In order to clearly define the type of company Chori should be inlight of its corporate social responsibility, non-financial targets
were declared, in addition to financial targets, under Chori
Innovation Plan 2025. Further, VISION2030 was compiled toserve as a vision of the company Chori aspires to be seven years
from now based on the three themes of “sustainability,” “wellbeing,” and “innovation.” Although it is still in the preliminary
stages of achieving these goals, the Company has been making
strides toward its next stage of growth by duly taking into
account the non-financial aspects of its business. As an outside
director, I will offer advice to ensure that Chori steadily achieves
these targets and that it establishes its non-financial targets more
effectively by bearing in mind the needs of society.
Sawano Under Chori Innovation Plan 2025, the Company has
declared “promote ESG management” as a basic strategy withthe aim of further strengthening its governance structure.
When operating a business in this era of increasing uncertainty,
particular emphasis must be placed on risk management. We
will fulfill our supervisory function as outside directors by ensuringthat Chori strengthens its measures against developing country
and geopolitical risks. In so doing, when we look back on
Chori Innovation Plan 2025 in its final year, we will be able toacknowledge it as a three-year period in which steady progress
was made in strengthening its governance.
Suzuki63

CHORI CO., LTD.

What are the key elements to strengthening
Chori’s human capital?

Noda
The key to strengthening Chori’s human capital is thepromotion of diversity and inclusion. Improvements must be
made particularly in the area of recruiting women and promoting
them to management positions. Although the number ofwomen in career-track positions in the trading industry is lower
than the average of other industries, Chori will not evolve as acompany over the medium to long term unless it continues toimprove in this area. Because this is not a problem that can beeasily overcome in two or three years, it is important that a
number of concrete measures be taken immediately. As a stepin that direction, a Companywide business transformation
project called Chori Accelerate Renovation Achievement
Transformation (CARAT), which also aims to reform workstyles,
was launched in 2022. I hope the creation of a more comfortableworkplace environment for everyone through the standardization,
automation, and integration of business processes will encourage
more active participation by women.
Sawano In order to continue to attract highly qualified personnel
in this day and age, where various industries are being called
upon to address the issue of labor shortage, Chori must firstdevelop an awareness of its brand. The key to doing so is toreiterate the Company’s strengths and uniqueness in comparison
to its competitors. Chori draws on its strengths in covering
every stage of the supply chain, from upstream to downstream,in all of its businesses and, while collaborating with manufacturers
from time to time, provides high-value-added products to markets
around the world. Chori’s semi-industrial/semi-commercial
business model, which extends beyond the confines of trading,is one aspect of its uniqueness as well as its appeal. In thepast, Chori’s human resources and business activities werefeatured in a TV program. Enhancing media exposure may be
one means of attracting human resources.

Masaaki Sawano

It is important, first and foremost, that people know
about the Company. Chori has the ability to deliver whatever isneeded at times of need while adjusting to the changing times,
as was the case in the COVID-19 era when it continued to
improve business results. Along with contributing to thebetterment of society through its role as a trading company, it isSuzukiimportant that Chori reiterates the strengths of its humanresources—a defining feature of the Company—to the outside
world. One of the many strengths of Chori’s human resources istheir high level of expertise. Chori’s employees possess highly
specialized knowledge of the wide range of products handled
by the Fibers, Textiles, and Garments Business, the Chemicals
Business, and the Machinery Business and of the markets inwhich they operate. Moreover, its younger employees are also
active on the global stage. Each employee plays a significant
role in society, and this is what makes Chori intriguing. The key
to attracting highly qualified personnel is to continue to be acompany where people want to work or, in other words,
assume a role that only Chori can fulfill.
Noda
Along with acquiring human resources, developing
them is also important. As a company, it must support its
employees, regardless of gender, so that they can continue tohone their skills and develop with the right opportunities. For
Chori to continue to grow as a company, it will also be essential
to develop a human resource portfolio that determines the typeof employees that are needed in each department. Chori is acompany brimming with employees who work to the best of
their abilities by taking the initiative. I will continue to offer advice
to ensure that Chori becomes a company where diverse employees
can play an even more active role in the years to come.

is your assessment of Chori’s initiatives on Whatclimate change and other sustainability issues?
Chori began disclosing information based on the TCFD
recommendations in 2022 and continues to strengthen its
measures against climate change one step at a time inresponse to the needs of society. Meanwhile, because Chori
engages in every stage of the supply chain, from upstream todownstream, it can monitor the progress of measures against
climate change throughout the supply chain. Through the useof this information, I believe Chori can play an even greater rolein society by encouraging its business partners to becomecarbon neutral and contributing in other ways to overcome theissue of climate change. Chori will aim to further strengthen its
climate change initiatives by capitalizing on its ability to monitor
the flow of goods. The Company is also focusing on expanding
its lineup of environment-friendly SDG-oriented products,
particularly in the Fibers, Textiles, and Garments Business.
Under Chori Innovation Plan 2025, the Company has declared
the goal of achieving ¥50.0 billion (two and a half times fiscal
2022 levels) in sales from SDG-oriented products in fiscal 2025.
As an outside director, I will oversee the Company’s efforts to
reduce its environmental impact so that it continues to climb up
the ranks of the industry.
Noda
In addition to its handling of SDG-oriented products,
Chori is also a strong contributor to regional revitalization. Since
the early days of the Showa Period, Chori has been working
together with the Hokuriku region of Japan. Even today, theCompany still works with manufacturers in this region to
Suzukiexpand the scope of its sustainability initiatives, such as the useof scrap wood and the recycling of textile products. Having
reaffirmed the fact that the Company is expanding its businesswhile valuing its connection with the local community andcontributing to regional revitalization as a result, we will ensurethat the Company continues to promote such activities throughour advice. On the other hand, Chori’s supply chain extends
across the globe, and therefore it must also focus on its measures
to promote the human rights of its employees. I will do my part incontinuing to grow the business by remaining up to date on thelatest information regarding the types of risks facing not only theCompany but also its business partners and customers.

you have any additional messages for Do
Chori’s stakeholders?
Since the arduous years of the 1970s, Chori has
continued to grow as a company by focusing on profitablebusinesses. As a company that has quickly responded to thechanges in its business environment and created new value
over the years, Chori offers potential for even further growth.
As outside directors, we will continue to support Chori from agovernance point of view to ensure that it steadily realizes thispotential.
Noda
It is our duty to ensure that Chori achieves sustainablegrowth and increases in corporate value over the medium tolong term. While the Company has continued to improve its
business results by making quick decisions in response to thetimes, we will ensure that it is even better prepared to respondto country risks through the advice we provide.
Suzuki

Hiroko Noda

Chori is responsible not only for achieving the financial
targets of Chori Innovation Plan 2025 but also for actively fulfillingits corporate social responsibility while promoting business
management by paying due consideration to all stakeholders,
including employees, business partners, and shareholders.
Setting our sights on Chori’s future growth, we will make sure thatit seizes every business opportunity, strengthen its human resource
development structure with an eye on medium- to long-term
growth, and provide oversight to ensure that it steadily advances
toward the launch of its digital transformation project CARAT.
SawanoTsumugu Report 2023

64

Management Foundation Tailored to Sustainable Growth

Directors, Audit & Supervisory Committee Members, andExecutive Officers (As of June 16, 2023)
Directors“Number of shares held” indicates the number of CHORI CO., LTD. shares held.

President, CEO & COO,
President and Executive
Officer

Kazuo Sakihama
Number of shares held: 35,017
CEO & COO

Outside Director*

Hiroko Noda
Number of shares held: 0

Independent Director

Significant concurrent positions• Representative of Noda Certified Public
Accountant Office• Representative Director of Probity
Consulting Co., Ltd.
• Part-Time Lecturer at Graduate Schoolof Asian and International Business
Strategy, Asia University• External Director of MODEC, Inc.
• Outside Director (Audit & Supervisory
Committee Member) of Okabe Co., Ltd.
• Outside Director of S.T. CORPORATION

Director, Managing Executive
Officer

Tatsuyuki Sakoda

Kazuhiro Tohge

Kazuhiko Shuto

Number of shares held: 9,551

Number of shares held: 0
Significant concurrent positions
Toray Industries, Inc.
Executive Vice President (Member of theBoard)

Director, Full-Time Audit &Supervisory Committee
MemberOutside Director,* Audit &Supervisory Committee
MemberOutside Director,* Audit &Supervisory Committee
MemberShigemasa Yabu

Masaaki Sawano

Hiromasa Suzuki

General Manager of Corporate Planning
Division,
Executive Chief Representative for Chinaof the Company,
and General Manager of
Pharmacovigilance & Quality Assurance
OfficeNumber of shares held: 18,138

Number of shares held: 0

Number of shares held: 0

Significant concurrent positions

Independent Director• Partner of CITY-YUWA PARTNERS• Member of Advisory Council on
Fundamental Issues in Corporate
Management of Urban Renaissance Agency• Member of Advisory Council on
Fundamental Issues in Corporate
Management and Rent Council of Urban
Renaissance Agency• Member of Business Evaluation Monitoring
Committee of Urban Renaissance Agency• Outside Auditor of Japan Federation of
Certified Public Tax Accountants’ Associations• Member of Kanto Regional Government
Asset Council, Kanto Local Finance Bureau,
Ministry of Finance• Chairperson of Tokyo Metropolitan Government
Election Administration Commission• Director of Japan Bar Association

Significant concurrent positions• Outside Director of Nitta Gelatin Inc.

Independent Director

Managing Executive Officer

Managing Executive Officer

Senior Executive Officer

Senior Executive Officer

Hiroshi Yoshida

Yoshihiro Teratani

Satoko Nakayama

Masao Nakamura

Number of shares held: 14,210

Number of shares held: 14,729

General Manager of Textile Division,
Senior Manager of Synthetic Fiber
Business Department,
General Manager of Logistics Department(Textile),
and General Manager of Hokuriku Branch

General Manager of Chemicals Division,
Senior Manager of Life & Fine Chemicals
Business Department,
and General Manager of Logistics
Department (Chemicals)

Deputy General Manager of Corporate
Planning Division (Human Resources &General Affairs Department andInformation System Department)
and General Manager of CHORI
Innovation Activities

Number of shares held: 2,965
Senior Manager of Chemical &Materials Business Department

Senior Executive Officer

Executive Officer

Executive Officer

Naohiko Ashida

Satoshi Shiragami

Yasuhiro Oiwa

Number of shares held: 13,491

Number of shares held: 2,965
Senior Manager of Technical Material &Garments Business Department,
Chairman of CHORI (DALIAN) TRADING
CO., LTD.,
and Chairman of CHORI (DALIAN)
COMMERCIAL IMPORT EXPORT CO., LTD.

CHORI CO., LTD.

Director (Part-Time)

Special Appointee of the President(in relation to the Textile Division)

Number of shares held: 9,302

Executive Officers (Excluding Those Who Concurrently Serve as Directors)

65

Director, Executive Officer

Number of shares held: 2,592
Deputy General Manager of the
Corporate Planning Division (Corporate
Management Department and Affiliate
Business Department)

Number of shares held: 700
Chairman and President of
CHORI (CHINA) CO., LTD.,
Chairman and President of CHORI(SHANGHAI) CO., LTD.,
and Chairman and President of
CHORI (TIANJIN) CO., LTD.

* Outside director as stipulated in Article 2, Item 15 of the Companies Act.

Tsumugu Report 2023

66

Data Section
11-Year Financial Summary
CHORI CO., LTD. and Group Companies
Medium-Term Management Plan

Medium-Term Management Plan

Yakushin 2016

Yakushin 2013

Medium-Term Management Plan

Medium-Term Management Plan

Chori Innovation Plan 2019

Chori Innovation Plan 2022
(Millions of yen)

FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

Net sales*1

221,847

244,286

248,396

291,578

270,908

311,705

356,537

329,360

216,233

284,096329,389

Gross profit

19,77021,53022,157

24,79925,14926,40028,58528,31026,35730,65037,058Selling, general and administrative expenses

14,66516,037

16,604

19,42918,701

19,174

20,53820,091

22,693

21,321

24,401

Operating profit

5,105

5,492

5,552

5,369

6,448

7,226

8,047

8,219

3,663

9,328

12,656

Ordinary profit

5,466

5,831

5,966

5,518

6,967

7,499

8,660

8,685

4,656

10,274

12,437

Net profit attributable to owners of parent

2,944

3,715

4,153

4,297

4,780

4,730

5,630

6,101

1,247

6,811

8,124

Total assets

71,851

78,221

84,28998,736

97,983

119,055

118,499

114,400

110,591

134,121

143,200

Net assets

31,38536,417

41,47342,882

46,34351,15353,89757,27958,83165,096

72,158Net interest-bearing debt*2(7,491)(8,820)(10,703)(8,029)(6,824)(11,134)(10,887)(11,962)(15,547)(6,939)(13,902)

Cash flows from operating activities (A)

5,792

1,716

3,320

4,992

625

6,653

3,196

2,857

5,889

(2,330)9,596

Cash flows from investing activities (B)(2,980)

(208)

(813)

(4,442)58

821(1,421)

8

(357)

197

(261)

Free cash flows (A+B)

2,812

1,508

2,507

550

683

7,474

1,774

2,866

5,532

(2,133)

9,335

Cash flows from financing activities(1,641)

(506)

(840)

(1,510)(1,363)(2,352)(4,350)(1,899)(887)(4,015)(3,099)Net profit per share

117.57151.54169.40175.31

195.00192.74229.28248.4650.73

276.82330.16

Net assets per share

1,275.84

1,481.00

1,688.74

1,746.27

1,887.37

2,079.84

2,191.45

2,328.79

2,390.06

2,643.55

2,932.46

Dividends per share*4

24.00

33.00

34.00

36.00

40.00

59.00

60.00

63.00

37.00

84.00

105.00

2.5

2.4

2.4

1.9

2.6

2.4

2.4

2.6

2.2

3.6

3.8

Operating Results:

Financial Position (As of March 31):

Cash Flows:

Per Share Data*3 (Yen):

Key Indicators (%):
Ordinary profit to net sales
5

Return on assets (ROA)*

7.8

7.8

7.3

6.0

7.1

6.9

7.3

7.5

4.1

8.4

9.0

Return on equity (ROE)*6

9.8

11.0

10.7

10.2

10.7

9.7

10.7

11.0

2.2

11.0

11.8

Equity-to-asset ratio

43.5

46.4

49.1

43.4

47.2

42.9

45.4

50.0

53.2

48.5

50.4

Consolidated dividend payout ratio

20.4

21.8

20.1

20.5

20.5

30.6

26.2

25.4

72.9

30.3

31.8

Price earnings ratio

9.1

7.4

10.9

8.3

9.9

10.9

6.8

6.2

33.2

6.4

7.6

Price book-value ratio

0.8

0.8

1.1

0.8

1.0

1.0

0.7

0.7

0.7

0.7

0.9

Stock price at end of March (yen)*3

1,066

1,124

1,851

1,457

1,939

2,097

1,556

1,537

1,685

1,759

2,508

Number of employees (consolidated)

1,286

1,292

1,091

924

939

991

1,023

1,014

969

1,322

1,285

Number of consolidated subsidiaries

26

27

25

27

27

29

29

29

30

33

32

Other Data:*1 In the first quarter of fiscal 2020, Chori adopted the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, issued on March 30, 2018).
*2 Net interest-bearing debt = Interest-bearing debt – (Cash and deposits + Deposits paid to subsidiaries and associates)*3 The Company carried out a 1-for-10 reverse stock split of common shares on October 1, 2012. Net profit per share and net assets per share were provisionallycalculated at the beginning of fiscal 2012 based on this reverse stock split. Dividends per share and stock price at year-end for fiscal years prior to the reverse stock
split have been retroactively adjusted to reflect its impact.

67

CHORI CO., LTD.

*4 Dividends per share in fiscal 2017 include a commemorative dividend of ¥10 for the Company’s 70th anniversary.
*5 Return on assets (ROA) = Ordinary profit / Total assets (Avg. of beginning and end of fiscal year) x 100*6 Return on equity (ROE) = Net profit attributable to owners of parent / Total equity (Avg. of beginning and end of fiscal year) x 100

Tsumugu Report 2023

68

Data Section

Chori’s Global Network
After the end of World War II, Chori recommenced the full-scale development of its overseas business in 1949,
when private foreign trade resumed. Today, Chori boasts a global network consisting of subsidiaries and offices
located in various regions of the world. As we move forward, we will step up the pace of our globalization efforts
while addressing the needs of our customers.
EuropeU.S.A. and Central America

Subsidiary	 Chori Europe GmbH (Neu‐Isenburg)

Subsidiaries	

Major Overseas Subsidiaries and Affiliates 

CHORI AMERICA, INC. (Jersey City)	CHORI COMERCIAL DE MEXICO,S.A. DE C.V. (Mexico City) INGDAO RED BUTTERFLY PRECISION MATERIALS
Q
CO., LTD. (China)
Production and sale of inorganic chemicals
 eijing Chostar Equipment Engineering Technology
BCo., Ltd. (China)
Import and export of equipment and materials for chemicalplants HORI Analysis & Technology Service (Suzhou) Co., Ltd.
C
(China)Analysis and research and development of chemicals
 CC Industry COMPANY LIMITED (Hong Kong)
M
Sale of textile products
 EGACHEM LIMITED (Singapore)M
Trading company specializing in chemicals
 T. MATSUOKA INDUSTRIES INDONESIA (Indonesia)P
Sewing of textile products

Middle East
Subsidiary

Chori Middle East FZE (Dubai)

Representative office

Major Domestic Subsidiaries and Affiliates 

Jeddah SADA U CO., LTD.
A
Sale of interior and packaging materials
 HORI MODA CO., LTD.
C
Planning of fashion apparelSouth America
Representative office

Asia
Subsidiaries 

CHORI (CHINA) CO., LTD. (Shanghai)
CHORI (SHANGHAI) CO., LTD. (Shanghai) CHORI (TIANJIN) CO., LTD. (Tianjin)
CHORI (DALIAN) TRADING CO., LTD. (Dalian)	CHORI (DALIAN) COMMERCIAL IMPORT EXPORT CO.,LTD. (Dalian)
CHORI CO., (HONG KONG) LTD. (Hong Kong)
	TAIWAN CHORI MERCHANDISE COOPERATION LTD.

(Taipei)
CHORI KOREA CO., LTD. (Seoul)









Santiago TX Co., Ltd.
S
Trading company specializing in textiles
 iyako Kagaku Co., Ltd.
M
Trading company specializing in chemicals

THAI CHORI CO., LTD. (Bangkok)
PT. CHORI INDONESIA (Jakarta)
	CHORI SINGAPORE PTE LTD (Singapore)	CHORI TRADING (MALAYSIA) SDN. BHD. (Puchong,Selangor)	CHORI VIETNAM CO., LTD. (Ho Chi Minh City)	CHORI TRADING INDIA PRIVATE LIMITED (Mumbai)

 OZAKURA SHOKAI CO., LTD.
K
Trading company specializing in chemicals
 HORI GLEX CO., LTD.
C
Trading company specializing in chemicals
Subsidiary

Representative officeHandles textile products

Handles chemical products(Japan: 4 locations Overseas: 30 locations)

 hori Machinery Co., Ltd.
C
Trading company specializing in transportation equipment
 usiness Anchor Corporation
B
Outsourcing of administrative work

Representative offices	Beijing, Qingdao, Nantong, Wuhan, Ruian, Guiyang, Shenzhen; Ho Chi Minh City; Manila; Dhaka

Domestic Offices
Tokyo Head OfficeTower C, Shinagawa Intercity,
2-15-3, Konan, Minato-ku, Tokyo
108-6216, Japan
Tel: +81-3-5781-6200

69

CHORI CO., LTD.

Osaka Head Office
Nittochi Sakaisuji Bldg.,
1-7-3, Awajimachi, Chuo-ku, Osaka
540-8603, Japan
Tel: +81-6-6228-5000

Hokuriku Branch
15F Visage Office Zone,
16-1, Showa-machi, Kanazawa
920-8676, Japan
Tel: +81-76-232-3521

Okayama Liaison Office
10F Okayama
Fukokuseimei-ekimae Bldg.,
1-6, Ekimotomachi,
Kita-ku, Okayama
700-0024, Japan
Tel: +81-86-224-6188

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Data Section

Corporate Information (As of March 31, 2023)
Company Overview
CHORI CO., LTD.

Company NameTokyo Head Office
2-15-3, Konan, Minato-ku, Tokyo
108-6216, Japan
Tel: +81-3-5781-6200

Headquarters

Breakdown of Shareholders by
Investor Type

Investor Information

Osaka Head Office (Main Headquarters)
1-7-3, Awajimachi, Chuo-ku, Osaka
540-8603, Japan
Tel: +81-6-6228-5000

Capital¥6.8 billion

Date of Incorporation

September 2, 1948 (Founded in 1861)

Closing Date

March 31

Number of Employees

Consolidated: 1,285 Nonconsolidated: 405(Including 74 employees dispatched to other companies)

Corporate Website

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

Securities Code8014
(Prime Market of the Tokyo Stock Exchange)

Total Number of Shares
Authorized to Be Issued

55,000,000

Total Number of Shares
Outstanding

25,303,478

Number of Shareholders

7,202

Trading Unit

100

Shareholder Register Agent for
Common Stock

Mizuho Trust & Banking Co., Ltd.

Accounting Auditor

Deloitte Touche Tohmatsu LLC

Brokerages
1.30%

Treasury shares
2.75%

Foreigninstitutions
andindividuals
17.52%

Japanese
corporations
58.29%(Thousand shares)

Percentage of shares
held (%)

Toray Industries, Inc.

12,96752.70

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

1,428

5.80

BBH FOR FIDELITY LOW-PRICED STOCK FUND (PRINCIPAL ALL SECTOR SUBPORTFOLIO)

Number of shares held
Shareholder name

1,418

5.76

Hurex Co., Ltd.

735

2.99

Custody Bank of Japan, Ltd. (Trust Account)

627

2.55

Logistics Dept. (Textile)

Wacoal Corporation

548

2.23

Fiber Raw Materials Dept.

NORTHERN TRUST CO. (AVFC) RE IEDP AIF CLIENTS NON TREATY ACCOUNT

296

1.20

Business Administration Dept.
(Textile)

TextileDivision

Synthetic Fiber
Business Dept.

Technical Material& Garments
Business Dept.

sharesIndividuals
and others
9.80%

Major Shareholders

Organization (As of July 1, 2023)

25,303,478

Financial
institutions
10.34%

Automotive Materials and Fabrics Dept.

STATE STREET BANK AND TRUST CLIENT OMNIBUS ACCOUNT OM02 505002

253

1.03

Technical Textiles Dept.

BBH FIDELITY GROUP TRUST BENEFIT (PRINCIPAL ALL SECTOR SUBPORTFOLIO)

205

0.84

Textile-Fabric Dept.

HSBC PRIVATE BANK (SUISSE) SA GENEVA - SEGREG UK IND 1 CLT ASSET

204

0.83

Career Apparel & Workwear Dept.
Apparel Dept.
Performance Apparel Dept.

Notes: 1
 . In addition to the above, the Company owns 696,464 shares (2.75%) of treasury stock.
2. The percentages of shares held exclude the 696,464 shares of treasury stock.
3. The number of shares held are rounded down to the nearest thousand shares.
4. The percentages of shares held are rounded to the nearest third decimal place.
5. All shares held by the Master Trust Bank of Japan, Ltd. (Trust Account) and Custody Bank of Japan, Ltd. (Trust Account) are related to trust services.

Material Development Team

GovernanceCommittee

General Meetingof Shareholders

Board ofDirectors

Audit &
Supervisory
Committee

Executive
Committee

Business Administration Dept.
(Chemicals)

ExpertCommittees

President,
CEO & COO

Logistics Dept. (Chemicals)

Chemicals
DivisionInternal Auditing
Dept.

Chemical &Materials
Business Dept.
Life & Fine
Chemicals
Business Dept.

FY2018FY2019FY2020

FY2021

FY2022

2,097

1,556

1,537

1,685

1,759

2,508

59

60

63

37

84

105

Chori

77.1%

79.2%

88.0%

95.5%

136.2%TOPIX (incl. dividends)

95.0%

85.9%

122.1%

124.6%

131.8%

Stock price at year-end (yen)Performance Chemicals Dept.
Inorganic Fine Materials Dept.

Dividends per share (yen)300

TSR (%)
Industrial Chemicals Dept.

Note: TSR is based on investments carried out at the closing price on March 31, 2018.

Fine Chemicals Dept.
Life Science Dept.
Corporate Management Dept.

Legal Compliance
Committee

Total Shareholder Return Total Shareholder Return (TSR)-Related Data(TSR)
FY2017200

Affiliate Business Dept.

Corporate
Planning Division

Human Resources & General Affairs Dept.
Information System Dept.
Pharmacovigilance & Quality
Assurance Office
Companywide Business Transformation Project(for the implementation of mission-critical system)

100

Executive Chief Representative for China
Hokuriku Branch
Okayama Liaison Office0

2019/4

Chori  

2020/4

TOPIX 2021/42022/42023/4

Note: Based on closing price on March 31, 2019 as 100

Overseas Representative Offices
Overseas Subsidiaries

71

CHORI CO., LTD.

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