Top Message

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Value Creation of NITORI Group

Sustainability

Data Center

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Key measures for each country and region in FY2023

Overseas Strategy
Accelerate global expansion through concentrated
investment in Asia

Strengthening and dramatically growing the global business is one of NITORI Group’s mostimportant tasks in achieving Vision 2032. We will accelerate our overseas expansion together
with our employees in Japan and overseas by utilizing the structures, knowledge and systems
we have prepared and built for this purpose.

Competitive Advantage
Mission Statement and Vision

Business Model

Human CapitalMission Statement“Enrich homes ofpeople all over theworld”

ProductDevelopment
ProductPlanningImplementation of major total and additional floor
refurbishments
Preparation for opening new formats
Strengthening TV and SNS advertisingAdditional app features (to reach 1.35 millionmembers)

Other countries and regions in Asia

Offering
the Unexpected

Sales(Stores)

Sales(E-commerce)

Quality
Control

Trade

Overview of activities aimed at accelerating the opening of overseas branches.

11Taiwan

Manufacturing

Logistics

ThemesOverview of initiatives

Support for overseas business by theJapan headquarters

Supporting issues related to developing business in all countries and regions outside
Japan. Encompasses human resources development, development of educational
tools, store creation, omni-channel development, store work standardization, productsupply and inventory management, etc.

Clariﬁcation of know-how and transferof explicit documentation

Providing systems and manuals in local languages for using the know-how employedin Japan throughout every aspect of overseas operations, including the creation ofsales floors that offer clear product suggestions, development of standards for
product displays and placement of promotional materials and faster and more
efﬁcient human resources development.

Product proposals based on lifestylestudies in new countries and regions

Using our understanding of lifestyles in each country and region to promote NITORI
products that resolve frustrations and inconveniences of local people in a clear way
using sales floors and POP and promotional materials in local languages, as analternative to conducting market research on best-selling lines.

Global omni-channel promotion(platform-building, globalstandardization)

 ocusing on opening stores in Beijing, Suzhou,
F
Chengdu, Wuhan and Chongqing.
New shop openings on the e-commerce platform
Pinduodow.
Apps for our own websites within WeChat
Active recruitment of new graduates for the future(approx. 400)

Raw MaterialProcurement

SystemDevelopment

Vison 2023

3,000 stores
Net Sales ¥3 trillion

Mainland China

Evolving from e-commerce deployed in each country and region to the developmentof a shared global platform. Pursuing cost reduction measures and faster expansion
to respond promptly to rapid changes in customers’ “purchase behavior.”

 pening of stores in Thailand, Hong Kong, RepublicOof Korea, Vietnam, Indonesia, the Philippines andother countries from 2023 onwards.
Improved sales efficiency through optimization ofproduct assortment
New openings on e-commerce platforms
Research on newly entering countries

Acceleration of store openings in FY2023 and beyond

NITORI Group will provide equal enrichment tocustomers all over the world.

Masanori Takeda

Director
General Manager of Global
Merchandising Division
General Manager of Global Sales
Promotion Ofﬁce
In charge of Overseas Sales Business

Following the opening of new stores in Malaysia and Singapore in FY2022, we will open
a store in Thailand at the end of August. We are also planning to open a new store in
Hong Kong, Republic of Korea and Vietnam, while at the same time we are conducting
research and considering opening stores in Indonesia, the Philippines and India, and willfurther accelerate the opening of new stores in Asia. The challenges of global expansion
include human resource development, establishing a supply chain network and pursuingeconomies of scale through the standardization of products. NITORI Group will work
together to establish a system that enables us to open stores anywhere in the world byutilizing the knowledge and strengths that we have cultivated in Japan.

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