Consolidated Financial Results for the First
Six Months of the Fiscal Year Ending March 31, 2024
(FY2023)
Joshin Denki Co., Ltd.

(Securities code: 8173)

November 7, 2023

1/33

[Table of Contents]◼ Earnings Summary for the First Six
Months of the Fiscal Year Ending March
31, 2024 (FY2023)
Full-year Forecast for the Fiscal YearEnding March 31, 2024 (FY2023)◼ Initiatives under Medium-termManagement Plan (JT-2025
Management Plan)◼ Topics

2/33

Earnings Summary for the First Six Months of the Fiscal Year Ending March 31, 2024 (FY2023) 1
Consolidated Income Statement (Apr.–Sept.)(Million yen)First six months of
FY2022(Apr.–Sept.)
Actualresults

Net sales% of net
sales

First six months of FY2023 (Apr. –Sept.)
Actualresults% of netsales

Actualresults% of net
sales

YoY

Actual vs.
forecast

197,918

100.0%

198,000

100.0%

197,483

100.0%(0.2%)(0.3%)Of which, sales at stores

160,125

80.9%

-

-

163,356

82.7%

＋2.0%

-

Of which, sales in EC business

35,634

18.0%

-

-

31,463

15.9%(11.7%)-Of which, other sales

2,158

1.1%

-

-

2,664

1.4%

＋23.4%-

Gross profit

51,193

25.9%

-

-

52,868

26.8%

＋3.3%

-

Selling, general and administrative
expenses

47,089

23.8%

-

-

48,282

24.5%

＋2.5%

-

Operating income

4,104

2.1%

4,200

2.1%

4,586

2.3%

＋11.7%＋9.2%

Ordinary income

4,119

2.1%

4,200

2.1%

4,549

2.3%

＋10.4%＋8.3%

Net income (*1)

3,006

1.5%

3,100

1.6%

3,110

1.6%

＋3.4%

＋0.3%

*1 Profit attributable to owners of parent

408,460

Earnings Summary for the First Six Months of the Fiscal Year Ending March 31, 2024 (FY2023) 2
Factors for changes in operating income (Apr.–Sept.): Vs. previous year
(Billion yen)

FY2022(Billion yen)

Operatingincome for
FY2021

Apr.–Sept.

Gross profit
5.3

1.9

Personnel
expensesRent andground rent

(0.4)

(0.4)

Logistics
expenses

Advertisingexpenses(2.1)

Operatingincome for
FY2022

Other

(0.0)

(0.2)

4.1

Factors for changes in operating income (quarterly): Vs. previous year

Apr.–June

1.4

(0.0)

(0.1)

(0.0)

(0.3)

0.3

(0.1)

Operatingincome for
FY2023
1.1

July–Sept.

2.7

1.7

(0.3)

(0.1)

0.2

(0.2)

(0.6)

3.5

(Billion yen)

Operatingincome for
FY2022Gross profit

Personnel
expensesRent andground rent

Logistics
expenses

Advertisingexpenses

Other

4/33

Earnings Summary for the First Six Months of the Fiscal Year Ending March 31, 2024 (FY2023) 3
Consolidated Income Statement (July–Sept.)(Million yen)

1Q FY2022(Apr.–June)
Actualresults

1Q FY2023(Apr.–June)

2Q FY2022(July–Sept.)

2Q FY2023(July–Sept.)% of netsales

Actualresults% of net
sales

94,601100.0%

90,377100.0%(4.5%)

103,316100.0%

107,106

100.0%＋3.7%＋18.5%Of which, sales at stores

75,94480.3%

72,99880.8%(3.9%)

84,181

81.5%

90,358

84.4%

＋7.3%

＋23.8%Of which, sales in EC business

17,36718.3%

16,04817.7%(7.6%)

18,26717.7%

15,415

14.4%(15.6%)(4.0%)Of which, other sales

1,290

1.4%

1,330

1.5%

＋3.1%

868

0.8%

1,333

1.2% ＋53.6%＋0.2%

Gross profit

24,82026.2%

24,78727.4%(0.1%)

26,37325.5%

28,081

26.2%

＋6.5%

＋13.3%

Selling, general andadministrative expenses

23,42924.8%

23,695

26.2%

＋1.1%

23,66022.9%

24,587

23.0%

＋3.9%

＋3.8%

Operating income

1,391

1.5%

1,091

1.2%

(21.5%)

2,713

2.6%

3,495

3.3% ＋28.8%＋220.1%

Ordinary income

1,394

1.5%

1,076

1.2%

(22.8%)

2,725

2.6%

3,473

3.2% ＋27.4%＋222.5%

Net income*1

1,016

1.1%

620

0.7%

(39.0%)

1,990

1.9%

2,489

2.3% ＋25.1%＋301.1%

Net sales

YoY

Actual results% of netsales

Actualresults% of net
sales

YoY

QoQ
(vs. Apr.–June)*1 Profit attributable to owners of parent

5/33

Earnings Summary for the First Six Months of the Fiscal Year Ending March 31, 2024 (FY2023) 4
Sales by product (Apr.–Sept.)(Million yen)

1Q FY2022(Apr.–June)

1Q FY2023(Apr.–June)

Actualresults% of netsales

Actualresults% of net
sales

TVs

5,973

6.3%

5,252

5.8%

Refrigerators

6,481

6.8%

5,841

Washing machinesand vacuum
cleaners

8,651

9.1%

Microwave ovens
and cookers

3,871

Air conditioners

2Q FY2022(July–Sept.)

2Q FY2023(July–Sept.)

First six months of
FY2022(Apr.–Sept.)

First six months of FY2023(Apr.–Sept.)

Actualresults% of netsales

Actualresults% of netsales

Actualresults% of netsales

Actualresults% of net
sales(12.1%)

6,920

6.7%

7,120

6.6%

＋2.9%

12,894

6.5%

12,372

6.3%(4.0%)

6.5%(9.9%)

8,139

7.9%

8,206

7.7%

＋0.8%

14,6207.4%

14,0477.1%(3.9%)

8,205

9.1%

(5.2%)

9,958

9.6%

10,072

9.4%

＋1.1%

18,6099.4%

18,2779.2%(1.8%)

4.1%

3,559

4.0%

(8.1%)

3,871

3.7%

4,218

3.9%

＋9.0%

7,742

3.9%

7,777

3.9%

＋0.4%

14,742

15.6%

11,76413.0%(20.2%)

14,43714.0%

16,289

15.2% ＋12.8%

29,17914.8%

28,05314.2%(3.9%)

Personalcomputers

5,023

5.3%

4,500

5.0%

(10.4%)

4,724

4.6%

4,580

4.3%

(3.0%)

9,747

4.9%

9,080

4.6%

(6.8%)

Mobile phones

6,113

6.5%

6,596

7.3%

＋7.9%

6,824

6.6%

8,645

8.1% ＋26.7%

12,937

6.5%

15,241

7.7%＋17.8%

Games, models,
toys, musicalinstruments

11,06011.7%

13,73015.2% ＋24.1%

15,042

14.6%

14,17013.2%

26,10213.2%

27,901

14.1%

＋6.9%

YoY

YoY

(5.8%)YoY

6/33

Earnings Summary for the First Six Months of the Fiscal Year Ending March 31, 2024 (FY2023) 5
Balance sheet(Million yen)2023/032023/09

ChangeCurrent assets

114,560

127,382＋12,822

Tangible assets

75,08574,409Intangible assets

2,471

2023/03(Million yen)2023/09

ChangeCurrent liabilities

84,37690,812＋6,435(675)

Non-current liabilities

38,143

41,901＋3,758

2,447

(24)

Total liabilities

122,520

132,713＋10,193

31,10030,911(189)

Non-current assets

108,657

107,768(889)

Total net assets

100,698

102,437＋1,739Total assets

223,218

235,151＋11,932

Total liabilities and net
assets223,218

235,151＋11,932

45,96445,998＋34

Total net interest-bearing
liabilities*

43,194

40,482(2,712)

Investments, other assets(Reference)
Total interest-bearing
liabilities*Total net interest-bearing liabilities: interest-bearing liabilities less cash and deposits

Cash flows(Million yen)2022/092023/032023/09

Change vs.
2022/09

Change vs.
2023/03

Cash flow from operating activities (a)

4,620

7,119

7,370

＋2,750＋251

Cash flow from investing activities (b)(3,182)(9,070)(2,284)＋898＋6,786

1,438(1,951)

5,086＋3,648＋7,037

(91)

2,360

(2,339)(2,247)(4,700)

3,706

2,769

5,516

＋1,809＋2,747(Free cash flow (a) + (b))
Cash flow from financing activities
Cash and cash equivalents at end of period

7/33

Full-year Forecast FY2023 (ending March 31, 2024) *Revision to the most recent earnings forecasts: No
Consolidated Income Statement (Full-year forecast)(Million yen)

Full-year FY2022 (Apr.–Mar.)
Actual results % of net sales

Full-year FY2023 (Apr.–Mar.)
Forecast% of net sales

YoY

408,460

100.0%

410,000

100.0%＋0.4%

Operating income

8,311

2.0%

9,000

2.2%

＋8.3%

Ordinary income

8,317

2.0%

9,000

2.2%

＋8.2%

Net income*1

4,972

1.2%

6,000

1.5%

＋20.7%Net sales*1 Profit attributable to owners of parent

Forecast for second half (Oct.–Mar.)(Million yen)

Second half of FY2022 (Oct.–Mar.)
Actual results% of net sales

Second half of FY2022 (Oct.–Mar.)
Forecast% of net sales

YoY

210,541100.0%

212,516100.0%＋0.9%

Operating income

4,206

2.0%

4,414

2.1%

＋4.9%

Ordinary income

4,198

2.0%

4,450

2.1%

＋6.0%

Net income*1

1,965

0.9%

2,890

1.4%

＋47.0%Net sales*1 Profit attributable to owners of parent

8/33

Trends of Financial Conditions and Net Interest-bearing Liabilities
Net interest-bearing liabilities declined and net D/E ratio stably remained low(billion yen)
110
100(times)
0.6

0.49

90
80

99.3

100.7

98.6

102.4
0.5

0.43

89.1

0.40

0.38

0.4

70
60

0.27

0.3

50
40

43.7
37.7

30

43.2

40.5

26.4

20

0.2

0.1

10
0

0
20/3

21/3
Net assets

22/3
Net interest-bearing liabilities

Net interest-bearing liabilities: Interest-bearing liabilities – Cash and deposits*Net D/E ratio: (Interest-bearing liabilities – Cash and deposits) / Net assets

23/3
Net D/E ratio

23/9

9/33

Trend in Number of Stores
We strengthened Joshin brand directly managed stores to promote our dominant strategy.
Breakdown of stores by region as of the end of September 2023
RegionNumber ofstoresKansai
Tokai
Hokushinetsu
Kanto
Shikoku
Total

144
35

(Number of stores)
240
230

234
12

JoshinDirectFranchise
135
32
3

23

23

16
2
220

16
0
206

BOOK
OFF

Store openings and closures in FY2023
ClosedTSUTAYA
6

2023

3

業態

Store name

Osaka

TSUTAYA

Yao-oihara store

June

Joshin operates some BOOK-OFF shops as a franchisee. These shops buy and sellitems for reuse, such as books, CDs, DVDs, video games, apparel, and hobby items.

2
5

234

234

9

7

6

Joshin is a franchisee of an entertainment shop TSUTAYA, which offers lifestyle choices by
selling new books, stationery, and other goods, and renting movies, music, and comics.

3

238

237

239

6

5

5

220
210

200

Prefecture

222

225

227

232

15/3

16/3

17/3

18/3

232

220

223

221

220

5

5

5

5

215

218

216

215

21/3

22/3

23/3

23/9

234

190
180
19/3

DirectFranchise

20/3

Total
10/33

[Table of Contents]◼ Earnings Summary for the First Six
Months of the Fiscal Year Ending
March 31, 2024 (FY2023)
Full-year Forecast for the Fiscal YearEnding March 31, 2024 (FY2023)◼ Initiatives under Medium-termManagement Plan (JT-2025
Management Plan)◼ Topics

11/33

Sales Composition of Joshin Group
Sales consist of two channels of real stores and EC business. Real stores in the Kansai area account for more than
50% of net sales.
Net sales by business segment
Net sales by product category
Real store net sales

12/33

Joshin Group’s Redefined Business Model
We redefined the business model consisting of two channels and five categories. We aim to grow and expand EC
while ensuring the business scale of real stores
What Joshin Group aspires to be in FY2030「統合報告書 2023」より抜粋
この図表の英語訳版は制作業者より提供いただくので英訳は不要です*Support business: house cleaning, home maintenance, reuse, renal, etc.

Growthbusiness

Growth and expansion of
the real store business

Mainstaybusiness

Growth and expansion of
the EC business while
maintaining the business
scale

FY2030 goals in material issues
Growthbusiness

Ratio to net sales: 17%

EC

Ratio to net sales: 25%

13/33

Clarified Basic Strategies of JT-2025 Management Plan
JT-2025 slogan

To be a concierge to customers, drawing close to their daily lives
Creation of customers’ lifetime values by solving customers’ issues and be of help

Fan base strategy

Creating fans and core fans by increasing the number of active members

Dominant strategy

Rather than going after quantitative growth, we are concentrating management
resources
on stores,
areas
where
utilizestrengths.
a clear distinction
fromourmega-platforms,
as an EC site operated by aRather than growth premisedon opening new
we willanalyze wein can Inbest

Product & service
strategy

detail the market environment and our own business structure then takeaction to differentiate by the mix of scrap-and-build of existing stores from
opening new ones.

Real store business
Two channels andfive categories

Home appliancesEntertainment

Branding(promotion, marketing)

EC businessSupport businessNetworkRenovation
Businessfoundation

major home appliance store, we will improve our product lineup with anawareness of the synergies among real stores then distinguish ourselves
by strengthening the services we provide.

Mobile communications

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

Information systems(ICT)Management foundation: ESG or environmental (E), social (S) and corporate governance (G)14/33

Clarified Fan Base Strategy
The most important strategy of JT-2025 Management Plan in which we aim to create fans and core fans throughretention and expansion of active members*1
Conceptual image of fans and core fans
Fans

Core fansPositioning

Customers who
continually support anduse our services

Customers who strongly
support our services andco-create future value

Quantitative
definition• Store visits on three or moredays per year
• Purchase amounts of 80,000
yen or more per Year

• Store visits on 10 or moredays per year
• Purchase amounts of 300,000
yen or more per year

Evaluates values we offer through products and services in addition to
prices⇒ Purchase amount is on a rising trend ⇒ Steady increase in averageannual purchase amount ⇒ Results in strengthened profitability
FY2022 results
Number of active
members*1

Approx.5.2 million people

Member PurchaseAmount*2

approx. 62,000 yen*1. Customers who have purchased products or services from us at least once in FY 2022.
*2. Average unit price per active member purchased in a year

15/33

Launch of New Loyalty Program
Started notification on our website towards the launch of the service in February 2024

Greater value, more smile!
New program is coming!

New launch! What is Joshin Smile Program?
• A service where customers can enjoy greater value depending on theirpurchase at Joshin Group stores and Joshin web shop
• It offers five stages of member ranks, and members are entitled to benefits
at both stores and Joshin web shops depending on their rank.

Purchase
Purchase
Purchase
3 days or more
Purchase

2 days or more

For details, see the URL below.
https://card.joshin.co.jp/smileprogram/

Purchase
1 day or more

Cumulative
purchase
10,000 yen or
more before
tax

Cumulative
purchase
80,000 yen or
more beforetax

5 days or more
Cumulative
purchase
150,000 yen
or more beforetax

10 days or
more
Cumulative
purchase
300,000 yen
or more before
tax

16/33

Clarified Joshin Group’s Dominant Strategy
A differentiation program that leverages the assets accumulated over 75 years to the maximum extent and in which
we focus our management resources in specialized fields where we can exploit our strengths
Kansai, Tokai, Kanto, and Hokushinetsu are positioned as key areas[Joshin Group’s dominant strategy]• Instead of relying on new store openings, it aims to secure market share byfocusing on areas where we can expect profit expansion including synergy
effects with EC, logistics, and service infrastructure primarily throughstrengthening of sales skills of existing stores and scrap and build (we havea grasp of the market share within 0 to 5 km radius of each store).

• The idea is to cover the entire area by growing each point and connecting
the empty spaces using EC as the plaster.
• Avoiding relying on new store openings enables us to reduce expenses
such as capital investment, personnel expenses, and store operation costs.
Generaldominant strategy
Increase(focused on new openings)
Increase(focused on new openings)
Increase(bloated balance sheet)*As of the end of March 2023, there are two stores in Shikoku region (Tokushima) in addition to them

[General dominant strategy]• Narrow down to a certain area and aim to improve the market share byfocusing on new store openings in the area (it considers the entire area as asurface).

Expansion through financial
leverage(high interest rate burden)
Increase (employee shortages,
difficulty in hiring new employees)
Increase(major impact on profit andloss statements)

Number ofStoresCapitalinvestment
AmountFixed assets
Fundraising
Employees
Operatingexpenses

Joshin’s
dominant strategy
Slight increase in the number ofstores(focused on existing stores)
Slight increase(focused on
scrapping and building)
Slight increase(small impact onbalance sheet)
Focus on using operating cash flow(small interest rate burden)
Slight decrease(ensure maintaining
the quality of customer service)
Slight increase(minor impact on
profit and loss statements)
17/33

Examples of Initiatives of Individual Strategies under JT-2025 Management Plan
Logistics

Information systems◼ We decided to use Tokyo Logistics Center as themother center that covers the Kanto area by
expanding the center to establish a logistics structurewith one base each in the east and the west with
Kansai Ibaraki Logistics Center at the core

Promoting introduction of a new system for enabling
creation of new customer satisfaction, workstyle reformof employees, and further enhancement in member
services◼ Fully self-service cash register introduced at Minami◼ Taking into consideration the Act on the Arrangementof Related Acts to Promote Work Style Reform in thetransportation and logistics industry, we are currently
preparing to install a relay base in Chubu area fortransportation to Kanto area

Tsumori Store in October 2023
Enables customers to perform the entire process in simple steps, fromscanning membership card and product bar code to payment including
purchase of long-term warranty◼ Electronic receipt to be introduced in

Kansai Ibaraki Logistics Center

December 2023
Joshin app members can select to display theirpurchase details on their smartphones. It shortens
the time required for payment at cashier andimproves customer convenience. It also contributes
to lowering of environmental burden throughreduction in paper-based receipts

18/33

Trends in Joshin’s Stock Price and PBR
Since September, the stock price has been outperforming the Nikkei Index, while PBR has improved to 0.6 level
Sept. 29, 2023
¥2,352130.0%(times)1.00

120.4%
120.0%

0.80

113.6%

Mar. 31, 2023
¥1,9540.65 times

110.0%

0.60

0.54
100.0%
100.0%

90.0%

0.40

Trend with thelevel on March 31,
2023 set as 100

0.20*PBR = Calculated as stock price ÷ net assets per share (BPS)*BPS = Calculated as net assets ÷ no. of shares outstanding (incl. treasury stock, etc.)

80.0%

0.00

Nikkei

JoshinPBR (times)
19/33

Changes in Shareholder Composition
The shareholding ratio of foreign corporations increased, exceeding 10%, while that of other corporations fell
As of September 30, 2023

As of March 31, 2023
Individual, others
26.56%

Individual, others
27.90%

Financial
institutions
32.71%

Foreigncorporations, etc.
8.27%

Financial institutions
32.76%

Securities
companies
1.20%

Financial institutions

Other
corporations
29.92%
Securities companies

Foreign corporations, etc.

Individual, others

Foreign corporations,etc.
10.39%

Securities companies
1.17%

Other corporations

Other corporations
29.12%

Financial institutions

Securities companies

Other corporations

Foreign corporations, etc.

Individual, others(Note) The shareholding ratios are calculated by excluding treasury stock.
20/33

Measures to Achieve Management Conscious of Capital Cost and Stock Price
Stock price = Net income per share (EPS) x Price earnings ratio (PER)
PER = The higher the profit growth, the more the future growth prospects get reflected in stock price, and therefore it is possible to raise it by expanding EPS

Manage net asset
from a long-term
perspective based on
capital allocation plan

Expand EPS bystrengthening earning
power in businessactivities

JT-2025 Capital Allocation Plan

Maintain EPS at highlevel by securing
investment efficiency

Improve PBR bygaining market
evaluation exceeding
net assets

Raise PER byreflecting future
growth prospects

ROE = Possible to raise the value by increasing EPS, the numerator

Price book-value ratio (PBR)= Stock price ÷ BPS (net assets per share)= Return on equity (ROE) x PER
FY2025 plan
Operating income
ratio

Ideal form in FY2030
2.6%

Aim for 4.0% level

ROE

8.0% or higher

Aim for 10.0% or higher

ROA

5.0% or higher

Aim for 7.0% or higher

ROIC*1

5.0% or higher

Aim for 7.0% or higher

Dividend payout ratio

30% or higher

Aim for 30% or higher*1 ROIC: (Operating income x 0.65) ÷ (interest-bearing liabilities + equity) with assumed effective tax rate of 35%

21/33

[Table of Contents]◼ Earnings Summary for the First Six
Months of the Fiscal Year Ending March
31, 2024 (FY2023)
Full-year Forecast for the Fiscal YearEnding March 31, 2024 (FY2023)◼ Initiatives under Medium-termManagement Plan (JT-2025
Management Plan)◼ Topics

22/33

Hanshin Tigers Victory Sale
Promotion of the fan base strategy through expansion of active members by adding new members

During the sale (15 days)
New members ➔ About 74,000 people*Equivalent to 11% of the 660,000 annual increase for FY2022
Number of Joshin Card members

Creation of fans and core fans by increasing thenumber of active members
23/33

First Joshin Customer Service Role-playing Contest
Started the contest as a new initiative under the JT-2025 Management Plan from FY2023

Aim to create fans and core fans by improving
customer service techniques for achieving ultimate
hospitality that will impress the customers

Contest overview
Selection of store representatives (221)Preliminary rounds held in 16 areas to select one
representative each

Final contest held with 16 area representatives (Oct. 26)

One person chosen for excellence award
24/33

Regional Cooperation Initiatives in Store Locations
Contribution to local communities through collaboration with local administrations, industry, and academia and put
into practice brand recognition improvement in areas where dominant strategy is being promoted
We endorse the purport of the“Decarbonized Point System
Promotion Platform” of the Osaka
Prefectural Government, andparticipated for the second year in arow in the demonstration project forawarding decarbonization points

We held an event aimed at expanding interactions andexperiences at real stores jointly with Kobe Institute ofComputing (Kobe, Hyogo Prefecture) in an industryacademia partnership project

We made donations in support ofthe purport of the e-sports MICE
contents demonstration project
held by Izumisano, Osaka
Prefecture

We produced three video contents as the second step of theindustry-academia partnership project with Baika Women’s
University (Ibaraki, Osaka Prefecture)

イベントを実施

25/33

Integrated Report 2023 PublishedKey enhancements to contents
Revision of Material Issues
Clarification of the business model in value creation
process
Enhancement to business strategy based on JT-2025
Management Plan
「統合報告書 2023」より抜粋
この図表の英語訳版は制作業者より提供いただくので英訳は不要です

Messages from all executive officers
Clarification of the goals for the transition to net-zerocarbon emissions plan
Practice of health and productivity management in humanresources strategy
Clarification of goals in sustainability procurement
Roundtable talks with all outside directors
For details, see
https://www.joshin.co.jp/ja/csr/archive.html*English version will be made available on the
English language website in November.

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Revision of Material Issues from Integrated Report 2023
After the announcement of material issues in 2021, the initial goals were achieved under the many action plans in two years. Therefore,
we have made partial revision to the material issues and initiatives, and reviewed the action plan and goals.
(Formerly) "Integrated Report 2022" before revision
Material Issues

ＥＳ

Ｅ

１．Proposing enriched lives that
anticipate lifestyle changes
２．Offering safe and secure products
and services

Improving data security

３．Contributing to the creation of abetter society that is in harmony
with the global environment

Developing a resource recycling society

４．Creating work environmentsthat enable diverse employees
to enjoy successful careers andjob satisfaction
Ｓ
５．Promoting synergies with local
communities

６．Ensuring responsible
procurement and marketing

Ｇ

Challenges
Offering products and services designed tosupport a diversifying and swiftly aging
society
Achieving household carbon neutrality

７．Enhancing corporate governance(New) Revised "Integrated Report 2023
Material Issues

ＥＳ

Ensuring product quality and safety

Addressing climate change issues
Securing, maintaining, and developing
human resources in parallel withenvironmental changes
Diversity & Inclusion
Creation of secure and safe workplaceenvironments that focus on work-lifebalance
Respecting human rights
Exploring in depth the businesses thatare closely aligned with local
Communities
Implementing purchasing and providing
services based on CSR (green)purchasing guidelines and ethicalStandards
Ensuring compliance, risk management,
and maintaining company morale
Corporate/Group governance

NOTES:（ES) Impact (E) Environment (S) Society (G) GovernanceＥ

１．Proposing enriched lives that
anticipate lifestyle changes

Challenges
Offering products and services designed tosupport a diversifying and swiftly aging
society
Achieving household carbon neutrality

２．Offering safe and secure products
and services

Improving data security

３．Contributing to the creation of abetter society that is in harmony
with the global Environment

Developing a resource recycling society

Ensuring product quality and safety

Addressing climate change issues
Securing human resources

４．Diversity & inclusion

Human resource development
Health and productivity Management

Ｓ

Respecting human rights
５．Building a responsible value
chain

６．Promoting synergies with local
communities

Ｇ

７．Enhancing corporate governance

Sustainable purchasing activities
Exploring in depth the businesses that
support the growth of local
communities
Ensuring compliance,risk management,
and maintaining company morale
Corporate/Group governance

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Environmental Initiatives 1
Announced road map for achieving net-zerocarbon emissions

Received third-party assurance for calculated values*Covers 98.1% of the Group’s overall emissions

Information subject toassurance:
Energy consumption, GHG
emissions (Scope 1 + 2 and Scope 3
Categories 1 and 11)

Range of assurance:
Japan(Joshin Denki Co., Ltd. And
subsidiaries in Japan; stores,
logistics sites, etc.)

Roadmap for the transition plan
Goals and measures
Till 2025
Till 2030
Early achievement of● Achieve 100% renewable energy
100% renewable
conversion ratio at business sites for which● Reduce Scope 1 and 2 GHG emissions byenergy conversion
42% in FY2030 compared to FY2021
ratio at all business the company has signed contracts directly[2023]
sites
Measures to manage
and reduce GHG● Categories 1 and 11 of Scope 3: 25% reduction compared to FY2021
emissions in the● Initiatives to reduce GHG emissions through engagement with suppliers
entire supply chain

Till 2050● Achieve practically zero Scope 1 and 2
GHG emissions [2040]● Achieve net-zero carbon emissions
across all Scope 3 categories throughcollaboration with suppliers

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Environmental Initiatives 2
Received SBT certification for “target of 1.5ºC in 2030”

Received B score for CDP climate change report
2022

Selected for the first time as a constituent of “FTSE
Blossom Japan Index” (2023)

Retained as a constituent of “FTSE Blossom Japan
Sector Relative Index” (from 2022)

An index designed as an industry neutral benchmark that reflects the performance ofcompanies demonstrating excellent environmental, social, and governance (ESG) practices
in JapanAn index that evaluates the quality of a company’s responses to the risks and opportunities intransition to a low carbon economy

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Societal Initiatives 1
Promoted diversity and inclusion (D&I) based on“respect for human rights” and “health andproductivity management”

Active investment in human resources ➔ Employees' involvement
in management ➔ Improvement in corporate value ➔ Successful
implementation of management philosophy
FY 2022 human capital investment¥3,027 million

Recruiting and education ............................ ¥782 million● Costs of hiring new graduates and mid-career workers ● Recruitment expenses● Education and training expenses
Wage increases and a revised HR system ...¥1,154 million● Wage increases (including part-time employees) ● Risk-responsive lump sums
for retirement annuities ● Increased costs due to the extended retirement
age ● Talent management system introduction and operating costs
Investments leading to job satisfaction and ease of work ... ¥267 million● Salary compensation for ikumen (men rearing their children) leave and
COVID-19 special leave ● Workplace and equipment renovation costs● Investment in new work styles
Investments in systems that improve productivity ... ¥825 million● Costs related to introducing full self-service cash registers, digital signs, etc.

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Societal Initiatives 2
Set “Important KPIs for 2030” for promoting D&I andclarified the roadmap using backcasting approach

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Governance-related Initiatives
Revised directors’ compensation system to further
promote sustainability management<Overview and purpose of revision of directors/auditors
compensation system>
1) Clarifying management responsibility by enhancing
performance-linked compensation
2) Motivation for improving corporate value in the medium to longterm by enhancing stock compensation (long-term incentive)
3) Promotion of sustainability management by introducing ESG
indices in compensation calculation criteria

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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/

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