May 9, 2023
For immediate release
Company name:Joshin Denki Co., Ltd.

Representative:

Ryuhei Kanatani,
Representative Director and President
and Executive Officer(Securities code: 8173, Tokyo Stock
Exchange, Prime Market)

Contact:

Koji Tanaka, Director and Managing
Executive Officer in charge ofManagement Planning and Human
Resources Strategy(Phone: +81-6-6631-1221）

Notice Concerning Formulation of Medium-term Management Plan
“JT-2025 Management Plan”

Joshin Denki Co., Ltd. (hereinafter, “the Company”) hereby announces that it has formulated the Mediumterm Management Plan “JT-2025 Management Plan” for the three years from fiscal 2023 to fiscal 2025.
See the attached material for the details of the plan.

*The forward-looking statements in this document concerning the future including forecasts for financial results are based on currently
available information and certain assumptions that the Joshin Group considers reasonable. Actual results may vary significantly fromsuch forecasts due to a variety of factors.

New Medium-term Management Plan
<JT-2025 Management Plan>(FY2023–FY2025 3 Years)
Joshin Denki Co., Ltd.
(Securities code: 8173)

May 9, 2023
Ryuhei Kanatani
Representative Director, President
and Executive Officer
1/31

[Table of Contents]

Review of the Previous Medium-termManagement Plan “JT-2023”
Recognition of External Environment
New Medium-term Management Plan
“JT-2025”(FY2023–FY2025 3 Years)
1. Positioning and Policy
2. Fan Base Strategy
3. Management Indices4. Business Strategy
5. Sustainability-related Initiatives
2/31

Review of the Previous Medium-term Management Plan “JT-2023”: 1. Quantitative Goals(Million yen)

FY2019Targets for the final fiscal year (FY2022)※ Final year of theformer mid-term plan

% of net sales

415,643100.0%

57,134Gross profit% of latest
plan(2) Revised plan

(3) Latest plan

Actual results% of net sales% of FY2019

435,000

450,000

420,000

408,460

100.0%(1.7%)(2.7%)

13.7%

70,00080,00080,00075,552

18.5%＋32.2%(5.6%)

100,604

24.2%

－

－

－

103,802

25.4%

＋3.2%

-

Selling, general andadministrative expenses

91,624

22.0%

－

－

－

95,491

23.4%

＋4.2%

-

Operating income

8,979

2.2%

11,50016,50010,000

8,311

2.0%

(7.4%)(16.9%)

Ordinary income

8,900

2.1%

11,50016,50010,000

8,317

2.0%

(6.6%)(16.8%)Net income (*1)

5,418

1.3%

－

－

－

4,972

1.2%

(8.2%)(29.0%)

Equity ratio

45.2%

－

45.0% or higher

45.0% or higher 45.0% or higher

45.1%

－

(0.1pt)＋0.1pt

ROE

6.2%

－

7.0% or higher

9.0% or higher

7.0% or higher

5.0%

－

(1.2pt)(2.0pt)

ROA

4.4%

－

5.0% or higher

7.0% or higher

5.0% or higher

3.8%

－

(0.6pt)(1.2pt)

ROIC

4.3%

－

5.0% or higher

7.0% or higher

5.0% or higher

3.7%

－

(0.6pt)(1.3pt)Payout ratio

24.6%

－

Around 30.0%

Around 30.0%

Around 30.0%

40.2%

－

＋15.6pt＋10.2pt

Net sales
Of which, sales in EC
business(1) Initial plan

*1 Profit attributable to owners of parent*(1) Initial plan released on Aug.7, 2020; (2) Revised plan released on May 7, 2021; (3) Latest plan released on May 6, 2022

(Million yen)

Total for the three years (FY2020–FY2022)

Initial plan
Total operating CF

40.0–45.0 billion yen

Actual results
343

3/31

Review of the Previous Medium-term Management Plan “JT-2023”: 2. Key Measures
Key measures

Outcome

Tasks

Started full-scale operation as a highly efficientlogistics center that integrates the supply function,
inventory stockpiling function, and EC shipment
function for sales and delivery bases
While the premises changed due to changes inexternal environment such as semiconductor
shortage caused by the Covid-19 pandemic andincreases in product prices resulting from the yen’s
depreciation and soaring resource and material
costs, improvement in business continuity,
operational efficiency, and EC shipment capacity

Further enhancement of logistic function assuming
expansion in shipment volume of EC

Target of a 20% decline in expenses throughreduction of paper-based sales promotion (flyers,DM) and advancement of digital sales promotion

Reduced advertising expenses by about 30%
through digitization(vs. FY2019)

Improvement in corporate brand recognition
assuming expansion in shipment volume of EC
Implementation of one-to-one marketing throughdeepening of marketing automation

Improve functions of the Joshin app, diversificationof settlement methods, active introduction of newcommon points, etc. to strengthen customer
convenience

Introduced Kids Members (a Joshin app system forchildren)
Launched a lottery-based sales function for popular
products and a function for checking how crowded
a store is
Introduced the Ponta (P) point program
Enhanced convenience along with Rakuten (R) andDocomo (d)Strengthening of customer convenience going
beyond the boundary between stores and EC

Marketing through sharing of customer data andO2O*1 cross marketing

Implemented the O2O campaign with Rakuten
Opened a virtual renovation shop

Consolidated the two logistics centers in the
Kansai region into the Kansai Ibaraki Logistics
Center
It is located inland, which is superior in terms ofbusiness continuity when a major disaster occurs,
and is ideal for wide coverage of western Japan
Improvement of inventory efficiency anticipating
expansion of the EC business
Stocked items: Up 20%
EC shipment capacity: Up 100%
Total inventory amount: Down 10%
Transport vehicles: Down 10%*1 Abbreviation of “online (offline) to offline (online)”

Deepening from O2O to OMO*2 Abbreviation of “online merges with offline”

4/31

Review of the Previous Medium-term Management Plan “JT-2023”: 3. Key Measures
Key measures

Focus on vitalization of store networks and become
dominant in Kansai, Tokai, Kanto, and Hokushinetsu
areas
Active renovation of existing stores, scrap and build,promotion of seamless operation with the EC business,enhance service infrastructure of delivery, installation,
repair, etc.

Outcome

Tasks“Consolidated 234 directly managed stores into 216
through scrap and build including BCP measures andintegration of store brands”
Newly opened stores: 8
Newly opened stores involving relocation: 11
Vitalization of existing stores through renovation: 134“Strengthening of store network assuming synergy with
EC”

Changes in the number of stores
Newly opened stores
during the “JT-2023” period

FY2020

FY2021

FY2022

JT-2023 period

Up 2

Up 5

Up 1

Up 8

Up 4

Up 3

Up 4

Up 11

Withdrawal*Down 25

Down 5

Down 7

Down 37

Change in total number of stores

Down 19Up 3

Down 2

Down 18

Newly opened stores involving relocation*Including business transfer of 6 drugstore-format stores(Number of stores)
250

233

240
230

222

220
210

12

234

234

9

7

238

237

239

6

5

5

17

200
190

16

234

205

217

222

225

227

14/3

15/3

16/3

17/3
Direct

232

232

220

223

221

5

5

5

215

218

216

21/3

22/3

23/3

234

180

13/3

18/3
Franchise

19/3
Total

20/3

5/31

Review of the Previous Medium-term Management Plan “JT-2023”:
4. Sustainability-related Initiatives
Key measures

Outcome

Tasks

Strengthen proposals of energy-generating,energy-storing, and energy-saving products andservices
Introduce shopping bags made of a new material
Review power source mix by promoting
introduction of photovoltaic systems
Greening of store parking lots
Promote introduction of electric vehicle charging
systems

Number of stores that have introduced photovoltaic systems: 60
business sites
GHG emission reduction vs. FY2013: down 63.4%
Calculated Scope 3 emissions to grasp overall picture
Received third-party assurances for Scope 1 and 2 emissions
Sales target for environmentally friendly products: achieved 41.5%
against the target of 40% or more of sales
Implemented the Task Force on Climate-related Financial
Disclosures (TCFD) scenario analysis
Received B rating in CDP Climate Change Program
Established Sustainability Promotion Office

Formulation of transition plan based on TCFD
recommendations
Initiatives for acquisition of SBTi certification andsetting goals
Initiatives for improving rating in the CDP Climate
Change Program
Responses to Taskforce on Nature-related Financial
Disclosures (TNFD)

Promote smart work and health and productivity
management through workstyle reform andutilization of IT
Improve productivity and boost job satisfaction
through maximization of organizational
performance

Endorsed UN Global Compact
Formulated the Joshin Group Human Rights Policy
Established Diversity Promotion Office and Health and Productivity
Management Promotion OfficeTransition to retirement age of 65 (raising retirement age by one
year every year until 2025)
Increased ikumen (child-rearing men) leave (paid leave for childrearing purposes) to 28 days
Raised the age limit of children for utilizing shorter working hours
for child care (till the child graduates from junior high school)
Started introducing self-checkout system
Strengthened installation of digital signages

Enhancement of employee engagement
Initiatives to strengthen hiring of employees andensuring diversity (age, gender, mid-career hiring,
foreigners, etc.)
Development of education program for improving
business specialization of employees

Renewable energy conversion ratio
TargetConversion ratio *as of Mar. 31, 2023

Carbon neutrality goals

All business sites including tenants

59.4％

100% by 2040

Of which, business sites for which the Company has
signed contracts directly with power suppliers

97.4％

100% by 2023
6/31

[Table of Contents]

Review of the Previous Medium-termManagement Plan “JT-2023”
Recognition of External Environment
New Medium-term Management Plan
“JT-2025”(FY2023–FY2025 3 Years)
1. Positioning and Policy
2. Fan Base Strategy
3. Management Indices4. Business Strategy
5. Sustainability-related Initiatives
7/31

Recognition of External Environment
People’s lifestyles changed drastically because of COVID-19
Diversification of values gathered pace suddenly

Social changes

Changes surrounding theindustry

Emergence of country risks

Rapid increase in non-contact andremote services

Accelerated EC demand and digitalconsumption

Surging energy price, supply
instability

Employment mobility, diversificationof workstyle

Diversification of borderlesscompetitive environment

Foreign exchange fluctuations,soaring consumer prices

Declining birthrate and aging society,increase in single-personhouseholds

Transformation of business model ofhome appliance manufacturers

Global changes

Increase in natural disasters as
global warming accelerates
Rising sustainability awareness

Shrinking workforce
Urban concentration of populationand declining population in rural
areas

Diversification of consumer
spending patterns
Holding of worldwide sports events
2023: Rugby World Cup
2024: Paris Olympic and Paralympic Games
Global popularization of e-sports

8/31

[Table of Contents]

Review of the Previous Medium-termManagement Plan “JT-2023”
Recognition of External Environment
New Medium-term Management Plan
“JT-2025”(FY2023–FY2025 3 Years)
1. Positioning and Policy
2. Fan Base Strategy
3. Management Indices4. Business Strategy
5. Sustainability-related Initiatives
9/31

Positioning in Management Policy StructureManagement
Philosophy

Connecting people and society to
the future with a smile

Management Vision

Becoming an infrastructure hub for a better life through the power ofhome appliances and ICTCreation of Twin Social
Values“Supporting and strengthening resilience in our aging society”“Achieving carbon neutrality in the home”

Joshin Group
Declaration on Actions

Five basic policies for action by each one of us

Material Issues

Seven material issues for creating corporate value

Medium-termManagement Plan
“JT-2025 Management
Plan”

Ideal form of the Company in 2030
“A company that supports growth of local communities andcontributes to the future of people and environment”
Eight years through FY2030 is set as one package
JT-2025 (Second Step)⇒ Next Medium-Term Management Plan (Jump)
10/31

Medium- to Long-term Growth Scenario (for 100th Anniversary to 2050)
Corporate Credo:
Management Philosophy:
Management Vision:“Becoming an infrastructure hub for a better life throughthe power of home appliances and ICT”
Creation of Twin Social Values: “Supporting and strengthening resilience in our aging society”“Achieving carbon neutrality in the home”

1973
25th anniversary

1998
50th
anniversary

A 100-year company
and beyond

1948Foundation

Strengthen earning power[Improve profit margin]

2023
75th
anniversary

Contribute to creating a society that is, and will continue to be,
overflowing with the smiles of all generations in the communityfrom children to elderly
Secure and maintaininvestment efficiency[improve and maintain ROE, ROIC, ROA]

To further heights

Ideal form in 2030
“A company that supports growth of local
communities and contributes to the futureof people and environment”

Sustainability

New Medium-term Management
Plan FY2023–FY2025

2025

Next Stage

Jump（JT-2025）（JT-2023）

2020

2048
100th
anniversary

Second Step

Step

Previous Medium-term Management
Plan FY2020–FY2022“Thoughtfulness”“Connecting people and society to the future with a smile”

Next Medium-termManagement Plan FY2026–

2030
Female ratio
targets:
Permanent
employees: 30%
Employees: 50%
Managers: 20%

Raise profit efficiency with respect
to invested capital
Build management structure that issustainable over a long period

2035
Acquire highest
rating in CDP
Climate Change
Program

2040
Renewableenergy toprovide100% ofelectricity

2050
The Company
achieves
carbonneutrality

A 46% reduction in Japan’s
CO2 emissions
SDGs goal

Achieve Japan’s
carbon neutrality

2030

2050

11/31

What Joshin Group Aspires to Be
Ideal form in 2030

Medium-termManagement Plan
“JT-2025”

A company that supports growth of local communities and contributes to the future ofpeople and environment

To be a concierge to customers, drawing close to their daily lives
A sustainable business model in which we create lifetime values for customers while securing profits as wesolve issues faced by customers through products and services by drawing close to their individual lifestyles
to realize values that go beyond the customers’ expectations

Solve customers’ issues and be of help

Creation of customers’ lifetime values

Implement “fan base strategy” (Make customers fans and core fans)Joshin economic zone
Aggregation of business andservices of the entire group

Develop a solution business starting from stores and EC and centered on home appliances
Offer excitement, affluence, comfort, and ease of mind by drawing close to customers’ lifestyles andsupporting themEntertainment

Real store businessHomeappliances

NetworkRenovation

Support businessEC business
Mobilecommunications

Business foundation: Branding, infrastructure (procurement, logistics, delivery, installation, construction),
information systems (ICT)

12/31

Joshin Group’s Fan Base Strategy
Fan Base Strategy

Joshin’s own strategy from the customer perspective aimed at turning our customers into fans and our fans into core fansto create a chain reaction of value by spreading the bonds rooted in trust and confidence nurtured through practice ofservice with care based on the Corporate Credo of Thoughtfulness.

Corporate Credo“Thoughtfulness”

It is the core of the Company’s management philosophy structure and means “to always think and act in consideration of the other’s perspective”

Service with care

Joshin’s unchanging basic business attitude to build an unwavering relationship of trust with customers by grasping their needs and proposing optimal
products and services in the basic spirit of its Corporate Credo of Thoughtfulness, helping customers make their lifestyles richer and more comfortable.

Fans and core fans have high loyalty and affection to Joshin, actively recommend Joshin to others, and play a role in marketing. Increasing fans and corefans is expected to improve long-term brand value and earning power.

To promote the Fan Base Strategy
Offer affluent lifestyle with “physical values (offering of tangible and intangible goods)” + “experiencevalues”

Build a solid partnership through theoffering of values we create to expand
fans and core fans

Propose lifestyles, as a multi-vendor, from the customers’ perspective
Grow, expand, and strengthen businesses in the fields where we can leverage our strengths
Enhance employee engagement based on human resource strategy for improving customer service

Customer
Customers who visited oraccessed Joshin Denki forthe first time

Consumer
Customers who used
Joshin services for the firsttime

Repeater
Customers who used
Joshin services multiple
times

Fan

Customers who support andcontinuously use Joshin services

Core fanCustomers who strongly support
Joshin services and co-create future
values

13/31

Joshin Group’s Fan Base Strategy
We position fans and core fans as customers who appreciate our products andservices and repeatedly visit and use our stores

Fans and core fans who account for 20% of
customers account for 70% to 80% of sales

Create fans and core fans by increasing the number ofmembers

FansCore fans

Sales to fansand core fans

Sales to fansandcore fansConsumers
Customers

Repeaters

Concierge service drawing close to daily life
Attracting new customers from the fan base
Customers

Sales

FY2023

FY2024(Store)
1.6

220

223

221

190

1.63
1.2

1.48

1.46

1.43

Expand service fields■Enhance membership rewards, services■Appropriate employee placement■Ensure ample time serving customers■Improve customer service skills

New customers
from mass base

250
220

1.4

ICT

FY2025Net sales per store have expanded(Billion yen) 239

Competency in customer
service, proposing solutions

160

Attract
new customers
through word ofmouth

Improve customer
experience values (CX)

Core fans

Fans

Appreciate offered value and repeatedly use Joshin

130
1.0

100
FY2019actual result

FY2020actual result
Net sales per store

FY2021
actual result

FY2022
actual result

Number of stores

Strengthen earning power by switching from expansion ofquantity to improvement of quality
Expansion of fans and core fans ＝ Expansion of purchase unit x Purchase frequency

14/31

Consolidated Management Indices
Raise operating income ratio by strengthening earning power with focus on profit
efficiency to build a foundation for improving and maintaining investment efficiency.
FY2022
actual result(Billion yen)

FY2025plan

FY2023
forecast

Ideal form in FY2030

Net sales

408.5

410.0

420.0

Operating income ratio

2.0％

2.2％

2.6％

8.3

9.0

11.0

Operating income

Operating profit margin
Aim for 4.0% level(Billion yen)

374.4

2.1%

391.7

403.8

415.6

449.1

409.5

410.0

408.5

3.7%
2.5%

2.7%

2.2%

2.2%

2.0%

2.2%

8.8

8.3

9.0

16.5
7.9

9.6

10.9

8.9

FY2016FY2017FY2018FY2019FY2020
FY2021
FY2022
actual results actual results actual results actual results actual results actual results actual results
Net income

Operating income

FY2023
forecast

Operating income ratio

FY2025 plan

Ideals for 2030
15/31

Capital Efficiency IndicesWe aim to improve corporate value by ensuring ROE exceeding cost of equity and ROIC exceeding weighted average
cost of capital and by maintaining them long term
FY2025plan

FY2022
actual results

Ideal form in FY2030

ROE

5.0％

8.0% or higher

Aim for 10.0% or more

ROA

3.8％

5.0% or higher

Aim for 7.0% or more

ROIC*1

3.7％

5.0% or higher

Aim for 7.0% or more

*1 ROIC (return on invested capital) = (Operating income ×0.65) ÷ (Interest-bearing liabilities + equity) assuming effective tax rate at 35%

10.0
9.0
8.0
7.0
6.0
5.0
4.0
3.0
2.0
1.0
0.0

9.4

（％）

7.1

4.4

7.6

7.1

4.1

FY2016

5.2

8.0

6.2
5.0

FY2017

5.6

5.1

8.1

5.0

4.3
4.4

FY2018

6.6

FY2019ＲＯＥ(Return On Equity)

4.4

FY20204.2

FY2021

ＲＯＡ(Return On Assets)

3.7
3.8

FY2022

FY2025 plan

ＲＯＩＣ(Return On Invested Capital)

Ideals for 2030

16/31

Cost of Equity and Weighted Average Cost of Capital at Joshin GroupWe aim to continuously improve ROE and ROIC assuming increases in cost of equity and weighted average cost ofcapital in the future.
Cost of equity (%)
Risk free rate

Beta (β) exposure

Risk premium

Cost of equity

CAPM
0.50%

0.95

＋

×

6.00%

＝

6.20%

Excess return expected fromequity investment

Safe assets, risk-free rate

Risk unique to Joshin*Set based on the yield of 10-year
government bond*Set by calculating adjusted β for 5, 10, and *Set based on the equity market return *CAPM (capital asset pricing
15 years of calculation terms for TOPIX β
in the pastmodel) is a theory for calculating
value (incl. dividends)
the cost of shareholders' equity.
Adjusted β = 1×1/3＋2/3×β

Weighted average cost of capital (%)
Cost of equity

Equity ratio

Interest rate on debt

Weighted average costof capital

1 – Equity ratio

CAPM
（

6.20%

WACC
0.45

×
*FY2022

45.1％

）＋（

0.35%

×

0.55

）＝

2.99%

*Set based on average interest rate for
FY2022

17/31

Capital Allocation Plan
We allocate cash in a balanced manner to shareholder returns and reduction of interest-bearing liabilities with focus
on growth investment for the future to optimize capital efficiency

Stable generation of cash
Achieve profit
efficiency
exceedinginvested capital

Cash inflow

Cash outflow

Investment
Business activities

Total operating cash
flow for three years
FY2023–FY2025

Strengthen earning power[improve profitability]

Investment in intangible
assets related to humanresources, systems, DX,etc.

40 billion yen
to45 billion yen

Around 70%

Upfront
investment for
future businessgrowthGrowth investment

・New store opening
・Scrap and build of existing stores・Growth related M&A・Strengthening of EC channel
infrastructure
・Strengthening of logistics and service
infrastructure

Maintenance of existing facilities,
replacement investment

Shareholder returns(dividend payout ratio of
30% or higher)
Around 15%

Reduction of interestbearing liabilities
Around 15%

18/31

Shareholder Returns
We will ensure stable and continuous returns by setting a dividend payout ratio of roughly 30% or higher
FY2025plan

FY2022
actual result

30.0% or higher

40.2%

Payout ratio

Ideal form in FY2030

Maintain 30% or more

（Yen）

（％）

80

75

75

50.0

75

45.0

70

40.0

40.2

60

50

50

25.0

40

24.6
19.9

30

30.0

31.4

42
32

35.0

50

20.9

20.0

22.6

15.0

16.3
20

10.0
FY2016FY2017FY2018FY2019FY2020

FY2021Dividends

FY2022

FY2025 plan

Ideals for 2030

Payout ratio
19/31

Business Strategy Framework
JT-2023

Marketing coordination of real
stores and EC + Seamless sales
Enhance real store network
centered on Kansai, Tokai,
Kanto, and Hokushinetsu areas(becoming dominant, renovation,
scrap & build)Start operation of a newlogistics center that supports
seamless sales

New Medium-term Management Plan “JT-2025” Toward 2030

Real store businessEC business

Products and services
Promotion and marketing

Build new sales promotion
methods
Deepen O2O business
Real stores (offline)
EC (online)
Active investment in rebuildingof value chain–FY2022

Ideal form in 2030

Information systems (ICT)A company that
supports growth of
local communities andcontributes to the
future of people andenvironment

Infrastructure (procurement, logistics, delivery,
installation, construction),

FY2023–FY2025–FY2030
20/31

Individual Strategy

Open new stores and strengthen existing stores with focus on synergies between EC storesand real stores
Create new fans and core fans and expand customer lifetime value per member throughintroduction of New Loyalty Program*1 based on the fan base strategy.
*1 New program being introduced with the aim of promoting cross marketing between real stores and EC by lining up benefits
corresponding to the purchase status

Offer high quality service and support based our strength of work inside the customers’
homes in the last 1 (mile) and last 1 (meter)

Real Stores

Improve customer satisfaction through realization of highly efficient, high quality
management leveraging ICT(Touch panel product selection, online customer service, self-checkout system, customer service support
system, electronic POP, digital signage, etc.)

Strengthen employees’ marketing/sales skills, proposal skills, and ability to serve
customers with in-house education system in addition to acquisition of professional
certifications(Home appliance advisor, home appliance engineer, Smart Masters, welfare and living environment
coordinator, etc.)

Strengthen renovation and mobile products initiatives as the third pillar following home
appliances and entertainment products
21/31

Individual Strategy

Improve customer satisfaction (CS) through the introduction of the New Stage Program*1
to be established under the New Loyalty Program based on the fan base strategy*1 Newly establish top-most Core Fan Layer Stage in the New Loyalty Program

Strengthen products that support customers(Further enhance the support menu that supports customers’ lifestyle)Strengthen EC business operation structure by securing and nurturing in-house DX
human resources(Develop education system to nurture DX human resources, promote in-house development)

EC Business

Strengthen system to handle inquiries from customers, strengthen staff’s education to
improve their product skills and ability to respond(Improve convenience, support direct purchase, and use skilled employees in anticipation of the superaging society for improving customer satisfaction)

Grow to an attractive website that wins the approval of the customers(Not preoccupied with just increasing the number of items)(Procure carefully selected items and develop attractive original products by strengthening MD
capability*2)*2 Merchandising: Activities to strategically set the marketing method and price of the company’s products and services

Improve customer convenience with measures such as store pick-up*3 of products
purchased in EC*3 Except some products posted on the Joshin web shop, enable all products to be available for pick-up at selected stores

22/31

Individual Strategy

Strengthen sales of environmentally friendly products (energy-saving products)*1 forachieving household carbon neutrality*1 FY2023 uniform energy-saving label: Target products are color TVs with 4 stars or higher, air conditioners and refrigeratorswith 3 stars or higher, and warm water washing toilet seats (tankless type)

Product Support
Business

Establish firm branding by further strengthening entertainment products, which aremaintaining high market share
Enhance support menu that would help in solving customers’ issues
Make proposals tailored to requirements of mobile terminal and network-related customers
Build new business that include subscription and recurring revenue
Realize circular economy by strengthening reuse business

23/31

Individual Strategy
Initiatives related to products that contribute to achieving carbon neutrality in households(V2H, stationary storage batteries, aperture insulation, high efficiency water heater)

Renovation

Initiatives related to renovation products for “stock recycling” and “improving QOL*1 byincreasing efficiency” of housing(Water conservation, reducing household burden, upgrading childcare support, highly functional bathroom,
nursing care-related, etc.)*1 QOL＝Short for “quality of life”

Response to renovation related to nursing care needs to support enhancing the resilience of
the aging society

Introduce “New Loyalty Program” to promote the fan base strategy

Promotion Marketing

Strengthen information dissemination through operation of retail media “Joshin ads” andpromote monetization
Enhance points of contact with customers by utilizing Joshin app and digital media
24/31

Individual Strategy

Establish data flow foundation that will contribute to creating new customer satisfaction,
employee workstyle reforms (sales activities leveraging ICT), and prompt management
decisions
Realize optimum approach through one-to-one marketing with further sophistication of CDP*1
and marketing automation (MA)Information Systems(ICT)*1 CDP = Short for customer data platform
Data platform that collects, integrates, and analyzes the attribute and behavior data of each and every customer

Establish data infrastructure that supports the fan base strategy such as building “NewLoyalty Program”
Further enhance membership services that are based on the Joshin app platform(Electronic receipts and reservation for customer representative, use of biometric authentication technology,
consultation for repairs, purchased home appliances management list, etc.)

25/31

Individual Strategy
Expand the logistics structure covering the Kanto area

(Establish logistics structure with two bases in the west and east and the Kansai Ibaraki Logistics Center at
the core)

Logistics

Respond to implementation of the Act on the Arrangement of Related Acts to Promote Work
Style Reform*1 in the transportation and logistics industry(Strengthen collaboration with vendors led by partner companies) *1 To be enacted in 2024

Promote store pick-up of products purchased in EC and establish highly efficient logistics
structure through labor saving
Expand delivery area utilizing external delivery network

Promote hiring and education of diverse human resources in preparation for aging of
employees(Enhance service menu through reskilling)

Delivery, Installation,
Construction

Build technical support system for service personnel (onsite repair)
Expand the area where the Joshin Group provides service and improve capability
Strengthen hybrid structure made up of the Joshin Group and contractors for securing
stable capacity (delivery and installation) and improving quality
Establish a new repair consultation desk utilizing ICT (realize online diagnosis)
26/31

Sustainability-related Initiatives
JT-2023

Marketing coordination of real
stores and EC + Seamless sales

New Medium-term Management Plan “JT-2025” Toward 2030

Environment

Initiatives for climate change problems

Enhance real store network
centered on Kansai, Tokai,
Kanto, and Hokushinetsu areas(becoming dominant, renovation,
scrap and build)Start operation of a newlogistics center that supports
seamless sales

SocialInitiatives for diversity and inclusion

Build new sales promotion
methods
Deepen of O2O business
Real stores (offline)
EC (online)
Active investment in rebuildingof value chain–FY2022

Governance

Ideal form in 2030

A company that
supports growth of
local communities andcontributes to the
future of people andenvironment

Initiatives for improving effectiveness at
the Board of Directors

FY2023–FY2025–FY2030
27/31

Environment

Raise renewable energy conversion ratio at business sites
・Business sites for which the Company has signed contracts directly with power suppliers: To achieve
100% in FY2023
・All business sites including tenants: To achieve 100% by 2040

Improve off-grid power generation ratio through introduction of photovoltaic
systems
・All business offices where it can be installed: To achieve 100% within FY2023
・Promote active introduction of off-site corporate PPA

Initiatives for climatechange problems

Build environmentally friendly business model・Ensure sales ratio of 35% or more of environmentally friendly products *1 at Joshin Group・Enhance lineup of products in the housing equipment field, which contributes to realization of carbon
neutrality at households*1 FY2023 uniform energy-saving label: 4 stars or higher for color TVs; 3 stars or higher for air-conditioners and refrigerators;
electric bidet toilet seats(tankless type)

Initiatives for reducing Scope 3 GHG emissions
・Reduce emissions throughout the supply chain through communication with business partners
・Obtain third-party assurance for Scope 3*2 emissions: FY2023*2 We received a third-party assurance for Scope 1 and 2 emissions in FY2022

Initiatives for realization of circular economy
28/31

Society

Enhance employee engagement

・Strengthen activities of the diversity council and introduce engagement survey
・Promote health and productivity management, enhance childcare support system, extend retirement age,enhance talent management

Strengthen hiring of employees

・Strengthen hiring of new graduates and mid-career hiring aimed at rectifying the age composition of fulltime employees
・Support career advancement of part-time workers (boost their promotion to full-time employees)

Initiatives fordiversity andinclusion

Ensure diversity of employees (age, gender, skills, nationality, etc.)

・FY2030 female promotion plan: 30% among full-time employees; 50% among all employees*1, 20% among
managerial staff
・FY2030 target of hiring people with disability: 3.0%
*1 Including non-regular employees

Improve diverse expertise of employees

・Support employees to acquire a wide range of specialized qualifications for strengthening the corebusinesses
・Active mid-career hiring of specialized human resources who will support expansion of the businessportfolio

Support autonomous growth of employees

・Promote DX education for improving IT literacy
・Improve new knowledge and skills through reskilling and cultivate the spirit of taking on challenges

29/31

GovernanceImprove PBR through efficient management conscious of capital cost

Initiatives for
improving
effectiveness of theBoard of Directors

・Grasp our capital cost and profitability and analyze the trend of market evaluation as needed・The new Medium-term Management Plan is positioned as a plan to realize improvement in profitability ofcapital・Monitor the progress of the new Medium-term Management Plan and provide timely and appropriate advice
・Make active disclosures of the progress in the new Medium-term Management Plan and have dialogue withthe capital markets

Reinforce link between the medium- to long-term management strategies anddirectors’ compensation

・Expand the portion of stock compensation in directors’ compensation (20%・Link stock compensation with financial indices and ESG indices(ROE, CDP score, employee engagement score)30%)

Establish director succession plan based on skill matrix

30/31

Disclaimer
1. Earnings forecasts and other forward-looking contents of this presentation are based on the Company’s decisionat the time of the preparation of this document. We cannot promise or guarantee that results will match forecasts.
2. This presentation contains unaudited approximations, which may change.

― Inquiries ―Joshin Denki Co., Ltd. Management Planning Dept.
Head Office: 6-5, Nipponbashi-nishi 1-chome, Naniwa-ku, Osaka City
Telephone: +81-6-6631-1122
Company’s website: https://www.joshin.co.jp/

31/31