Creating Corporate Value Report 2014
Year ended March 31, 2014

Refreshing the Air

Profile

S.T. CORPORATION Brings a Bright and Vibrant Life through the Air
Our business is to bring a bright and vibrant life through the air. Under our corporate philosophy of“Sincerity”, we share our management philosophy with our stakeholders, strengthen our trust relationships
and bring the bright and vibrant air to the consumers’ life through innovation of daily necessities of life.
With the aim of becoming “top in the global niche market”, S.T. CORPORATION owns a lot of uniquebrands focused on the niche market of daily necessities, including the deodorizing fragrance “Shoshu-Riki”,
the insecticide “Mushuda”, the deodorant “Dashu-Tan”, and the dehumidifing agent “Drypet”.
At present, there are growing needs for addressing social issues, such as global warming and energy
depletion. S.T. CORPORATION also tackles such social issues based on our core business utilizing ourcompetence, for example, by developing the air cleaning agent “Clear Forest”, which purifies
polluted air.
This report summarizes our efforts for creating corporate value through the sustainable, mutual growth offirms and society, under the title “Creating Corporate Value Report”. We hope that you will understandour business activities for improving air for your living and our efforts for changing the atmosphere of
the entire society.

Contents
Structure for Value Creation

2

Management and Corporate Governance4

Message from the President

4

Corporate Governance

6

Financial and Non-Financial Highlights

8

Business at a Glance

10

For Sustainable Growth12

Corporate Data/Overview of Communication Tools

13
Our Corporate philosophy: “Sincerity”

Forward-Looking Statement
This report contains forward-looking statements regarding S.T. CORPORATION’s future plans, strategies, and performance. Such forward-looking statements are based on information available as of the issuance of this report. Please note thatforward-looking statements may differ greatly from the Company’s actual performance due to the economic situation, business environment, market demand, and foreign currency exchange rate fluctuations in the future.
Note: Fiscal years in this report are based on S.T. CORPORATION’s fiscal year ending March 31.

1Structure for Value Creation

The Source of Sustainable Corporate Value Creationis the Ability to Create New Markets
Toward a Bright and Vibrant Life

Creating
New
Markets
1946
Mothproofing
Agents1960
Gloves1971
Deodorizers

1981
Dehumidifiers

1999
Air
Fresheners

2011
Radiation
Detector

2013
Air Purifying
AgentsCheck Accelerator

EngineAir Business
Development
Capabilities

Power ofCommunication

The ability to quickly uncoverneeds that consumers are yet to fully realize

The ability to develop products that seize
people’s imagination when they hear about,see, and use them in a timely mannerCorporate communications undertaken at theinitiative of top management and televisioncommercials that resonate with the marketplace

Employees

Management

Corporate Governance

Shareholders

Changing
Consumer
Needs

Frontline
Capabilities

Anxieties regarding
motheaten clothing
in the post-war
periodAnxieties regarding
damage to thehands from the useof powerfuldetergents

Rich and affluent
proposals in the
period of higheconomic growth

Anxieties regarding
the buildup ofmoisture andhumidity in houses
closed for extended
periods

Shift in market
needs from aromatic
air fresheners
to deodorizers

Growing anxieties
regarding radiationin the aftermath ofthe earthquake
disasterConsumers • Business Partners • the Environment • Local Communities

2

Growing anxieties
regarding air
pollution

We Have Grown by Adapting to Changes in Living
and Creating New Markets
In 1946, the Company developed and manufactured a mothproofing product that dissipates agents intostorage spaces to help protect clothing from moth damage. In 1971, steps were taken to develop andmanufacture a scented air freshener in tune with the period of abundant economic growth. In 1981, S.T.
CORPORATION commenced production of a dehumidifier to address concerns surrounding the buildup
of moisture and humidity in houses closed for extended periods.
From the 1980s, the Company has worked to address the shift in market needs from aromatic air
fresheners to deodorizers. In 1988, S.T. CORPORATION launched the “Mushuda” brand, which has
become synonymous for odorless mothproofing agents. In 2000, S.T. CORPORATION established air
refresher “Shoshu-Riki” brand, which later grew to earn 14 billion yen, and the deodorant “Dashu-Tan”
brand, which removes odor in refrigerators. These are now our core business.
In 2011, S.T. CORPORATION developed household radiation meters for eliminating the anxieties overradiation after the earthquake disaster. In 2013, S.T. CORPORATION developed air cleaning agents thatcan purify air pollutants. As just described, S.T. CORPORATION develop products for addressing
social issues.

We Create New Markets Based on Our On-site Work,
Development, and Power of Communication
We excel at swift business administration utilizing our on-site work capability based on the cooperation
between the management and employees, under the managerial policy of “narrowing down andconcentrating on targets, developing unprecedented products, and managing businesses swiftly”. As forthe creation of new markets, we grasp the needs of consumers with our on-site work capability, develop
products that are “understood by listening, understood by seeing, and understood by using”, and create
niche markets for daily necessities with power of communication by combining selling sites and TV
commercials that attract public attention. In order to do so, it is indispensable to promote employees to“think flexibly”. We emphasize employee training for enriching their sensibility, such as round-the-world
training for fostering the ability to think freely and flexibly, refreshing leaves, and personnel development
support programs, etc.

3Management and Corporate Governance —Message from the President­­­—4

With Innovative Products, We Propose New Surprises
and Pleasures to Your Living■ Review of the Term ended March 31, 2014
With regard to the consolidated financial results for the term
ended March 31, 2014 (hereinafter called “this year”), sales
increased slightly (0.1% from the previous year), and profit
grew (net income increased 118.4% from the previous year),because the sales of the insecticide brand “Mushuda” rose
as a whole and the performance of the “Shoshu-Riki” series,
the core brand of deodorizing fragrances, whose commercials
are highly evaluated, was favorable, while there was a rush
demand before the hike of consumption tax.
■ To Create Customers, and Boost Consumption
In this year, we made efforts to develop the base for“management structure to pursue higher profitability” as myfirst year as the president, and then succeeded in spreadingawareness among young employees to pursue profits. In theterm ending March 31, 2015, we will advance to the “creationof customers”.
The market of daily necessities has been uncertain
since the consumption tax was raised in April, but S.T.
CORPORATION aims to increase new customers basedon innovative strategies. In detail, (1) we suggest innovative
products and provide new surprises for aliving and pleasures,with the core brands “Shoshu-Riki” and “Mushuda”, and also
expand sales of products that have been less frequently used,
including “Dashu-Tan” and “Kome-Touban”. (2) We keep
nurturing the new business “Clear Forest”, and cultivate new
products and channels. (3) For global business expansion,
we recognize ASEAN, where populations are increasing
and economies are growing rapidly, as a strategic area, andengage in product development and market cultivation in eachregion.
■ Further Promote the Reforms That is Unique to S.T.(STR*)
We clarify our customers and further promote the project of“one vector development” for providing them with attractive
products that are “understood by listening, understood byseeing, and understood by using” “when they are needed, forthe amount needed, and through stable supply”. In “Cost-Cutting
Project”, we drastically revise the customs and standards of thecompany, and continue the activities for improving workplaces
at factories. In “Reducing Number of Product Items Project”,
we reduce the waste of augmenting products and stocks,
accompanying tasks and time, etc., and allocate management
resources to growing fields.

■ Regarding Future Growth Strategies
10 years ago, S. T. selected its corporate slogan “Refreshing
the Air”. The air is a limited precious resource. To maintain the
air clean forever is our mission. Currently, there is a heateddiscussion on sustainability of society and environment.
S. T. believes that it is our corporate social responsibility
as well as a huge business opportunity. We established our air
purification technology brand, Clear Forest, and launched its
business in 2013. Clear Forest is not only a social commoditythat purifies the air. Its business also becomes an innovative
business model to solve social and environmental issues by
restoring forests and contributing to job creation through raw
material procurement. Through our businesses that solve
social issues with our “strength” and “identity”, we would liketo continue making efforts for the development of sustainable
society as well as our own growth.
■ In Closing
S.T. CORPORATION considers that it is important to create
sustainable corporate value and enhance shareholder value. As
for the return to shareholders, we link the dividend payment tobusiness performance, while maintaining stable dividend policy.
For this year, we paid an annual dividend of 22 yen per share,
which indicates that consolidated payout ratio is 38.8%.
S.T. CORPORATION has been growing by “creating productsthat people had never seen”. It is in our DNA to create anddevelop a new market in accordance with the changes of themarket. Our DNA will not change. We will continue creating
our corporate culture that proposes new surprises and fun ina life, including promotion of diversity and enrichment of ouremployees’ education, to become a company that is supported
by our stakeholders. We kindly request your continued supportand understanding.

July 2014

Takako Suzuki
President and Chief Operating Officer* STR: S.T. Reformation

5

Management and Corporate Governance —Corporate Governance—

System for Supporting the Sustainable, Mutual Growthof Firms and Society(Year ended March,31. 2014)

Governance Type

Company with committees

Number of Board Members

9

Number of Outside Directors

5 (56%)

Number of Independent Directors

2 (Notified as the persons designated by Tokyo Stock Exchange)

Board Diversity

3 female directors (including 2 outside directors)

Number of Board Meetings Held per Year

10

Average Attendance Rate of Board Meetings

100％

Director’s Term

1 yearChairman and CEO

One person serving as both

Nominating Committee

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

Audit Committee

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

Compensation Committee

3 members (2 outside directors; chaired by an outside director)■ Description of Corporate Governance
S. T. CORPORATION recognizes that it is important to increase
the values of the company and shareholders by achieving thesustainable, mutual growth of the firm and the society under
the philosophy “Sincerity”. S. T. CORPORATION makes efforts
to improve our corporate governance, developing a system forfacilitating such sustainable, mutual growth.
■ Development of Corporate Governance Systems
In June 2004, in order to improve the quality of management
and enrich management practices such as prompt decisionmaking and agile execution of operation, the company was
reorganized into a company with committees, which is moretransparent and fair and in which outside directors accountfor the majority of board members. In June 2008, a female
director was appointed for the first time, and at present, female
directors make up 44% of the board (2 out of 9 executive
officers are women). In addition, we appoint outside directors
with a wide array of experience and skills such as businessadministration, marketing, and accounting, etc. (the company
was selected as “Diversity Management Selection 100” (METI
Minister Award))■ Remunerations of Directors and Executive Officers
The remunerations of directors and executive officers aredesigned for improving corporate value.

■ Corporate Governance Structure
General Meeting of Shareholders
Election/Dismissal

Nomination Committee

Election/Dismissal

Accounting Auditors
Accounting Audit

Board of Directors

Audit Committee(Audit Committee Office)Election/Dismissal

Internal Audit Group

6

Compensation Committee

Representative Executive Officers

Executive Officer Meeting

Executive Officer in Charge

Executive Officer in Charge

Operating Divisions

Group Companies

■ Corporate Governance Overview
Directors

Nomination
Committee

Audit
Committee

Chairman of the Boardof Directors○

Director( Outside Director )◎○Director( Outside Director )○○Director( Outside Director )○Compensation
Committee◎

Director( Outside Director )

○

◎

○
○

Director
Director
Nine directors( five of whom areoutside directors )Fivemembers

Fourmembers(As of June 17, 2014)

Responsibilities

Representative
Executive Officer,
Chairman, CEOManagement in general

Takashi Suzuki※

Representative
Executive Officer,
President, COO

Management in general

Takako Suzuki※

Kanichi Suzuki

Managing Executive
Officer

In charge of the Marketing Division and
the Clear Forest BusinessTsukasa Konda

Fuminobu Aruga

Managing Executive
Officer

In charge of the Sales Division and thepocket warmer business

Yo Kouzuki

Chieko Matsuda

Managing Executive
Officer

In charge of the Management Control
Division and the Manufacturing Division

Kumiko Ishikawa

Executive Officer

Responsible for advertising and promotion

Koji Kage

Executive Officer

In charge of International Business Division
and Responsible for Overseas Group
Masami Kitahara
Companies

Executive Officer

In charge of the Management Strategy
Division and Responsible for Domestic
Group Companies

Kouichi Yoshizawa

Executive Officer

In charge of the R&D Division

Mikio Tsuji※

Naoto Onzo
Yoshiko Shirata○■ Areas of Executive Officer Responsibility
Executive Officers

Takashi Suzuki

Director( Outside Director )Director(As of June 17, 2014)

Takako Suzuki※

Kumiko Ishikawa※

Kouichi Yoshizawa

※

Three
members◎：Chairperson ○：Committee member ※：Holds the concurrent position of executive officer※※※Holds the concurrent position of director■ Board of Directors
Chairman of the Board of Directors

Directors ( Outside Directors )Takashi Suzuki

Naoto Onzo＊

Yoshiko Shirata＊

Takako Suzuki

Kanichi Suzuki

Fuminobu Aruga

Kumiko Ishikawa

Chieko Matsuda

Directors

Kouichi Yoshizawa＊Notified as an independent director as specified by the Tokyo Stock Exchange.

7

Financial and Non-Financial Highlights
thousands of U.S.dollars*1

millions of yen

2013

2014

2014

¥46,944¥46,993$456,596

1,800

2,131

20,707

Net income

565

1,234

11,989R&D expenses

572

564

5,479

2,061

942

9,156

Depreciation and amortization

830

894

8,687

Free cash flow

(944)

2,624

25,500Total assets

30,07632,370314,521

Total net assets

20,21321,087

204,883

Number of issued outstanding shares (thousands)

21,716

21,853Years ended March 31, 2014 and 2013

For the YearNet sales
Operating income

Capital expenditures

At Year-End

Financial Indicators%

Operating income margin

3.8

4.5

ROA*2

1.9

4.0

ROE*3

2.9

6.1

Equity ratio

65.4

63.2

3,930

3,884

Number of employees (people)

663

760

Ratio of female directors to total directors (%)

30.0

33.0

Ratio of outside directors to total directors (%)

50.0

56.0

Non-Financial Indicators
CO2 emissions (tons)

Per share information

yen

U.S. dollars

Net income¥ 26.01¥ 56,74$0.55

Net assets

905.84936.06

9.10

Dividends

22

22

0.21

Common Stock prices*4

988

999

9.71

PER (times)

38.0

17.6

Notes:1. U.S. dollar amounts are translated from yen for convenience only, at the rate of ¥102.92 = U.S.$1.00, the approximate rate on the Tokyo Foreign Exchange Market on March 31, 2014.
2. ROA = Net income divided by average total assets for the fiscal year.
3. ROE = Net income divided by average total equity (total net assets minus subscription rights less minority interests in consolidated subsidiaries) for the fiscal year.
4. The common stock prices listed are as of the end of the fisical year ended in March.

8

Net sales

Net sales composition by category(millions of yen)■AIR Care

46,993
46,99346,993
46,993
46,99346,993
46,99346,993
46,993

46,94446,94446,944
46,94446,94446,944
46,94446,944
46,94446,35446,35446,354
46,35446,35446,354
46,35446,354
46,354

43,58043,58043,580
43,58043,58043,580
43,58043,580
43,58043,54643,54643,546
43,54643,54643,546
43,54643,546
43,546■HUMIDITY Care

10
10
10

11
11
11

12
12
12

13
13
13

14
14
14

10
10
10

11
11
11

12
12
12

13
13
13

14
14
14

10
10
10

11
11
11

12
12
12

13
13
13

14
14
14

■HOME Care

44%
5%
7%

■HAND Care
■THERMAL Care95% ■Overseas 5%(Year ended March 31, 2014)

Net income

Operating income margin
(%)

5.2
5.2
5.2
5.2
5.2
5.2
5.2
5.2
5.2

4.9
4.9
4.9

4.5
4.5
4.5

4.9
4.9
4.9

3.8
3.8
3.8

4.9
4.9
4.9

3.8
3.8
3.8

565
565 565565
565 565565 565
565

76
76
76

786
786 786786
786 786786 786
786

1,234
1,234 1,234
1,234
1,234 1,234
1,234 1,234
1,234(millions of yen)

1,119
1,119 1,119
1,119
1,119 1,119
1,119 1,119
1,119

2,131
2,131 2,131
2,131
2,131 2,131
2,131 2,131
2,131

1,800
1,800 1,800
1,800
1,800 1,800
1,800
1,800 1,800

1,751
1,751 1,751
1,751
1,751 1,751
1,751
1,751 1,751■Japan(Year ended March 31, 2014)(millions of yen)

2,114
2,114 2,114
2,114
2,114 2,114
2,114 2,114
2,114

22%
9%
13%

■CLOTH Care

Mothproofing
Mothproofing
Mothproofing
HouseholdHouseholdHousehold andandandHygieneHygieneHygieneEnvironmentEnvironmentEnvironment-Related
RelatedRelatedMothproofing
Mothproofing
Mothproofing
RelatedRelatedRelatedProducts
Products
Products
HouseholdHouseholdHousehold andandandHygieneHygieneHygieneProducts
Products
Products
44%
44%
44%
EnvironmentEnvironmentEnvironmentRelated
RelatedRelatedMothproofing
Mothproofing
Mothproofing
56%
56%
56%
RelatedRelatedRelatedProducts
Products
Products
HouseholdHouseholdHousehold andandandHygieneHygieneHygieneProducts
Products
Products
44%
44%
44%
EnvironmentEnvironmentEnvironmentRelated
RelatedRelated56%
56%
56%
RelatedRelatedRelatedProducts
Products
Products
Products
Products
Products
44%
44%
44%
56%
56%
56%

Operating income

2,246
2,246 2,246
2,246
2,246 2,246
2,246
2,246 2,246

Net sales composition by region

3.8
3.8
3.8

3.8
3.8
3.8
3.8
3.8
3.8

4.5
4.5
4.5
4.5
4.5
4.5

3.8
3.8
3.8

11
11
11

12
12
12

13
13
13

14
14
14

10
10
10

11
11
11

12
12
12

13
13
13

14
14
14

10
10
10

11
11
11

12
12
12

13
13
13

14
14
14

10
10
10

11
11
11

12
12
12

13
13
13

14
14
14

10
10
10

11
11
11

12
12
12

13
13
13

14
14
14

10
10
10

11
11
11

12
12
12

13
13
13

14
14
14

10
10
10

11
11
11

12
12
12

13
13
13

14
14
14

10
10
10

11
11
11

12
12
12

13
13
13

14
14
14

10
10
10

11
11
11

12
12
12

13
13
13

14
14
14

4.0
4.0
4.0

0.4
0.4
0.4
2.7
2.7
2.7

0.3
0.3
0.3

1.9
1.9
1.9

4.0
4.0
4.0

22
22
22

22
22
22
22
22
22

22
22
22
22
22
22

22
22
22

22
22
22
22
22
22

22
22
22
22
22
22

2.7
2.7
2.7

2.9
2.9
2.9

63.2
63.2
63.2

22
22
22

2.9
2.9
2.9

63.4
63.4
63.4

22
22
22

4.0
4.0
4.0
2.7
2.7
2.7

4.0
4.0
4.0

65.4
65.4
65.4 63.2
63.2
63.2

22
22
22

2.9
2.9
2.9

63.4
63.4
63.4

64.9
64.9
64.9

22
22
22

4.0
4.0
4.0

67.2
67.2
67.2

65.4
65.4
65.4 63.2
63.2
63.2

(yen)

22
22
22

4.0
4.0
4.0
6.1
6.1
6.1

63.4
63.4
63.4

64.9
64.9
64.9

21,08721,08721,08721,087
21,08721,08721,08721,08721,087

4.0
4.0
4.0

4.0
4.0
4.0

64.9
64.9
64.9

20,21320,213
20,213
20,213
20,21320,213
20,21320,213
20,213

4.0
4.0
4.0

6.1
6.1
6.1

67.2
67.2
67.2
19,96619,966
19,966
19,966
19,96619,966
19,96619,966
19,966

6.1
6.1
6.1

5.9
5.9
5.9

Dividends per shareyen)■Total net assets (millions of65.4
65.4
65.4●Equity ratio (%)

67.2
67.2
67.2

19,70119,701
19,70119,701
19,701
19,701
19,70119,701
19,701●ROA (%) ●ROE (%)

5.9
5.9
5.9

5.9
5.9
5.9

76
76
76

Total net assets/Equity ratio

19,972
19,972
19,972
19,97219,972
19,972
19,97219,972
19,972

ROA/ROE

76
76
76

10
10
10

1.9
1.9
1.9
1.9
1.9
1.9

10
10
10

11
11
110.4
12
120.3
13
13
0.4
0.412
0.3
0.313

14
14
14

10
10
10

11
11
11

12
12
12

13
13
13

14
14
14

10
10
10

11
11
11

12
12
12

13
13
13

14
14
14

10
10
10

11
11
110.4
12
120.3
13
13
0.4
0.412
0.3
0.313

14
14
14

10
10
10

11
11
11

12
12
12

13
13
13

14
14
14

10
10
10

11
11
11

12
12
12

13
13
13

14
14
14

10
10
10

11
11
11

14
14
14

10
10
10

11
11
11

12
12
12

13
13
13

14
14
14

10
10
10

11
11
11

12
12
12

13
13
13

14
14
14

12
12
12

13
13
13

9

Business at a Glance

Business by Category

AIR Care(Deodorizers and
Air Fresheners)

Proprietary Brand

Market Share and Rank (Japan)

Composition of Net Sales

Deodorizers and Air Fresheners

44
%
44
%
44
44%%%%

30%(Market Share: No.2)

Refrigerator Deodorizers

73%

Sales/YoY

20,469Millions of yen-0.1%(Market Share: No.1)

CLOTH Care
(Mothproofing Agents)

HUMIDITY Care
(Dehumidifiers)

HAND Care(Gloves)

THERMAL Care
(Disposable Warmers)

HOME Care(Cleaners andOther Products)

10

Mothproofing Agents46%(Market Share: No.1)

Dehumidifiers

31%(Market Share: No.2)

Household Gloves

23%(Market Share: No.2)

Disposable Warmers

18%(Market Share: No.2)

22
%
22
%
22
22%%%%

10,321555%%%
5%%%2,515

999%%%
9%%%

4,336

13
%
13
%
13
13%%%%

6,011

777%%%
7%%%

3,341

Millions of yen+4.5%

Millions of yen+8.0%

Millions of yen+2.5%

Millions of yen-12.5%

Millions of yen+5.7%

Overseas

The ratio of overseas sales is 5%. We strengthen global business, as another driver of growth.

Promoting Capital andBusiness Alliances

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

Developing New
Businesses

In 2011, the technological brand “Clear Forest”, which was researched and developed in collaboration with research institutes, debuted.

Market Environment● The market is growing, but our performance wassluggish in fiscal 2013.
● The needs for enjoying fragrance are growing andexpected to grow further.

Salient Business Features and Strengths

Overview of Fiscal 2014 and Strategies Going Forward● Mainstay business divisions accounting for 44% of
the Company’s total sales. A division that is expected
to experience future growth.

● The sales of the core brand Shoshu-Riki, which is
supported by popular TV commercials, and DashuTan were healthy. The sales of other existing products
declined. Then, the overall sales of this businessdivision plateaued.

● This division owns unique brands, including ourlargest brand Shoshu-Riki and Dashu-Tan, which
deodorizes air with the power of charcoal.

● In fiscal 2014 we aim to increase new customers
with new strategies mainly for our major brands, andpopularize these brands further.

● The market is on a plateau and stable.
● The key for further growth is to invigorate the market
by suggesting additional values, such as fragrant
insecticide.

● A foundation business rivaling the importance of the
AIR Care category in terms of marketing.

● The market is on a plateau. It is difficult to differentiate
products, and competition is fierce.

● This division has consistently led the market since
Drypet was first launched in 1981.

● The performance of the sheet type of the main brand
Drypet was favorable, and its sales increased.

● Putting forward value-added products that offer new
functions and applications is critical to future growth.

● This category is comprised of the mainstay brand
Drypet, as well as other products including BinchoTan Drypet, which offers a deodorizing function
together with dehumidifying; a solid lineup including
refill- and sheet-type products.

● Cultivate new demand by putting forward new producttypes that take into consideration concerns for theenvironment as well as fresh proposals that offer new
functions and applications.

● Market exhibiting continuous growth.
● The protection of hands from powerful cleaning agentsand promoting awareness toward personal hygiene
are critical issues.

● An inaugural, enduring division with a history of six
decades together with the CLOTH Care category.

● Since the performance of professional gloves improved
mainly in overseas markets, sales increased.

● This category is comprised of the Family series ofhousehold gloves, industrial-use gloves and otherproducts. Advancing added-value proposals including
fingertip reinforced products, ingredients that are
gentle to the skin, and hygiene measures.

● In addition to efforts to strengthen and develop brands,
work to cultivate and develop new demand.

● Climate change significantly impacts the market.
Difficult to differentiate products. Intense market
competition.

● Winter-based product range. Provides an additional
point-of-sale management role linked to spring andautumn mothproofing agents.

● The air temperature in December was higher than the
average, delaying the start of the winter season, andso sales declined.

● Advantage of alliance products. Offers Onpacks andOther brands manufactured by Mycoal Corporationin July 2003. Products are distinguished by theirestablished reputation for high quality, especially
products for feet.

● In addition to strengthening and fostering brands,
cultivate and expand new demand.

● This Division is currently fostering the niche cleaner
market and is coordinating efforts to nurture othernew products that are under development.

● Sales increased, because the results of the insecticide
for rice containers Kome-Touban and the new air
purifier Clear Forest for Cars were favorable.

● It owns unique products, such as the cleaners in theniche market, including Ultra Powers and Ohisamano Sentaku, and the insecticide for rice containers
Kome-Touban.

● Take up the challenge of entering new domains in order
to secure further growth.

● Robust conditions in the niche cleaner and insect
repellent for rice bins markets.

● This category comprises topline brands including
Mushuda and Neopara Ace, which are wellrecognized for their reliability in protecting clothes
from moths.

● Partly because of the rush demand before consumption
tax hike, the sales of the mainstay brand Mushuda
increased as a whole.
● In fiscal 2014, we aim to further popularize our brandby increasing new customers by promoting not only
odorless products, but also fragrant ones.

We focus our global strategy on ASEAN region, and the brand we promote to the Air Care series.

By utilizing the complementary relations among the 3 companies, we aim to grow their businesses and increase their profitability.

In 2013, we established the Clear Forest section, and then created a new market of “air purifiers” for improving the quality of air.
Market share data is based on the Company’s research (January to December aggregate; April to March aggregate for disposable pocket warmers only).

11For Sustainable Growth

We Aim to Achieve Sustainability, by Meeting the Requests
and Expectations from Stakeholders with Sincerity
S.T. CORPORATION considers that the good relation between
firms and society based on sound economies, environments,and society is indispensable for continuing businesses for along period of time.
Under the corporate philosophy “Sincerity”, S.T. CORPORATION
engages in CSR (corporate social responsibility) activities as its
basic responsibility in order to fulfill the requests and expectations

Category

Major activities

Details

Purifying polluted air● To conduct the Clear Forest businessfor making polluted air harmless and healthy.

Developing products that help create clean air
and a comfortable environment● Adapting to social and environmental needs
by developing products that enrich people’s lives.

The
environment

Contributing to the environment through products
Contributing to the environment
through manufacturing and logistics processes

Consumers

Provision of safe, reliable products● Reducing the environmental impact of business activities
by reviewing the full gamut of operations including packaging and wrapping
as well as manufacturing and logistics processes.
● To manage quality, provide information, and establish a customer center.

Human
resources

Promoting diversity
Education of employees for enriching sensitivity(round-the-world training)
Diffusion of compliance● To develop systems for maintaining and enhancing social trust bypromoting diversity, developing human resource,
and raising awareness of compliance.

Local
communities

Providing support to educational institutions
Holding musicals● To invigorate main customers,
and support the education in local community.

Environment friendly considerations:
CO2 emissions

The status of diversity:
The number of female directors andthe ratio of female directors to total directors

Stable growth:
Number of employees(people)■(people) ●(%)

760
760
760

33.0
33.0
33.0
30.0
30.0
30.0

663
663
663

25.0
25.0
25.0

10
10 11
11 12
12 13
13 14
14
10
11
12
13
14

12

10
10 11
11 12
12 13
13 14
14
10
11
12
13
14

12.5
12.5
12.5

1
1
1

2
2
2

11.1
11.1
11.1

1
1
1

3
3
3

647
647
647

630
630
630

611
611
611

3,884
3,884
3,884

3,930
3,930
3,930

3,727
3,727
3,727

4,167
4,167
4,167

4,433
4,433
4,433

(tons)

3
3
3

Activities aimed atcreating value

Activities
that fulfill the
Company’s
basic
responsibilities

from stakeholders with sincerity and also implements CSR
activities that create values through business activities uniqueto S.T. CORPORATION for achieving sustainability.
These efforts are expected to facilitate the sustainable,mutual growth of firms and society, improving corporate value
and increasing shareholder value.

10
10 11
11 12
12 13
13 14
14
10
11
12
13
14

Corporate Data

■ Company name■ Paid-in capital■ Group companies

S.T. CORPORATION¥7,065,500,000

S.T. Trading Co., Ltd.

Japan Aroma Laboratory Co., Ltd.

S.T. Auto Co., Ltd.

S.T. Gleve Co., Ltd.

■ Headquarters■ Employees

S.T. Business Support Co., Ltd.

Shaldan (Philippines), Inc.

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

Consolidated: 760

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

Shinjuku-ku, Tokyo 161-8540,

Non-consolidated: 402

Family Glove Co., Ltd.(Taiwan)

Aekyung S.T. Co., Ltd.
(South Korea)

Japan(excluding part-time and temporary
employees)

S.T. Korea Corporation(South Korea)

Telephone +81-3-3367-6111■ Establishment■ Stock listing

August 31, 1948

First Section, Tokyo Stock

Shaldan (Thailand) Co., Ltd.

Exchange■ Account settlement date
March 31

Overview of Communication Tools

Creating Corporate Value Report 2014
(Japanese edition / English edition)

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

Corporate Information Website

Corporate Profile 2014

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

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

Creating Corporate Value Report 2014
Financial Section

Investors’ Guide 2014

(Japanese site / English site)

Overview(Japanese edition / English edition)(English edition)

Specialized data

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

(Japanese and English compilation)

Compilation Data Book (pdf) covering 10
years of quantitative information on the
Company’s corporate activities for
institutional investors.

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

13

4-10, Shimo-ochiai 1-chome, Shinjuku-ku, Tokyo 161-8540, Japan
http://www.st-c.co.jp/english/company/ index.html
Printed in Japan, July 2014