Fiscal Year Ended March 31, 2024 (FY2023)
Consolidated Financial Results
Joshin Denki Co., Ltd.
(Securities code: 8173)

May 7, 2024

1/41

[Table of Contents]◼ Earnings Summary for the Fiscal Year Ended
March 31, 2024 (FY2023)◼ Full-year Forecast for the Fiscal Year Ending
March 31, 2025 (FY2024)◼ Initiatives Under Medium-term Management
Plan (JT-2025 Management Plan)◼ Progress and Issues for Medium-termManagement Plan (JT-2025 Management Plan)(i) Individual Strategies(ii) Sustainability-related Initiatives

2/41

Earnings Summary for the Fiscal Year Ended March 31, 2024 (FY2023): 1
Consolidated Income Statement (Apr.–Mar.)(Million yen)

Net sales

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

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

Actualresults% of net
sales

YoY

Vs. forecast

408,460

100.0%

410,000

100.0%

403,692

100.0%(1.2%)(1.5%)Of which, sales at stores

327,174

80.1%

－

－

331,418

82.1%

＋1.3%

－

Of which, sales in EC business

75,552

18.5%

－

－

64,61816.0%(14.5%)－Of which, other sales

5,732

1.4%

－

－

7,656

1.9%

＋33.5%－

Gross profit

103,802

25.4%

－

－

105,124

26.0%

＋1.3%

－

Selling, general and administrative
expenses

95,491

23.4%

－

－

96,759

24.0%

＋1.3%

－

Operating income

8,311

2.0%

9,000

2.2%

8,364

2.1%

＋0.6%

(7.1%)

Ordinary income

8,317

2.0%

9,000

2.2%

8,251

2.0%

(0.8%)(8.3%)Net income (*1)

4,972

1.2%

6,000

1.5%

4,891

1.2%

(1.6%)(18.5%)*1 Profit attributable to owners of parent

408,460
3/41

Earnings Summary for the Fiscal Year Ended March 31, 2024 (FY2023): 2
Factors for Changes in Operating Income (Apr.-Mar.): Vs. Previous Year
(Billion yen)

FY2022(Billion yen)

Operating income
for FY2021

Apr.-Mar.

8.9

Gross profit＋5.4

Personnel
expensesRent andground rent

(0.4)

(0.7)

Logistics
expenses(4.6)

Advertisingexpenses

Operating income
for FY2022

Other

＋0.9

(1.1)

8.3

Factors for Changes in Operating Income (Quarterly): Vs. Previous Year
(Billion yen)

Operating income
for FY2022

Apr.–Jun.

1.4

(0.0)

(0.1)

(0.0)

(0.3)

＋0.3

(0.1)

1.1

Jul.–Sep.

2.7

＋1.7

(0.3)

(0.1)

＋0.2

(0.2)

(0.6)

3.5

Oct.- Dec.

2.0

(0.5)

(0.1)

(0.0)

＋0.3

＋0.1

＋0.0

1.8

Jan.-Mar.

2.2

＋0.2

(0.2)

(0.1)

＋0.2

(0.1)

(0.2)

2.0 4/41

Gross profit

Personnel
expensesRent andground rent

Logistics
expenses

Advertisingexpenses

Operating income
for FY2023

Other

Earnings Summary for the Fiscal Year Ended March 31, 2024 (FY2023): 3
Consolidated Income Statement (first/second half)(Million yen)First half FY2022(Apr.-Sep.)
Actualresults

Net sales% of net
sales

First half FY2023 (Apr.-Sep.)
Actualresults% of net
sales

Second half FY2022(Oct.-Mar.)

YoY

Actualresults% of net
sales

Second half FY2023 (Oct.-Mar.)
Actualresults% of net
sales

YoY

197,918

100.0%

197,483

100.0%(0.2%)

210,541100.0%

206,209100.0%(2.1%)Of which, sales at stores

160,12580.9%

163,356

82.7%

＋2.0%

167,04979.3%

168,062

81.5%

＋0.6%

Of which, sales in EC
Business

35,63418.0%

31,463

15.9%(11.7%)

39,91719.0%

33,15416.1%(16.9%)

Other

2,158

1.1%

2,664

1.4%

＋23.4%

3,574

1.7%

4,992

2.4%

＋39.7%

Gross profit

51,19325.9%

52,868

26.8%

＋3.3%

52,60825.0%

52,25525.3%(0.7%)

Selling, general andadministrative expenses

47,08923.8%

48,282

24.5%

＋2.5%

48,401

23.0%

48,477

23.5%

＋0.2%

Operating income

4,104

2.1%

4,586

2.3%

＋11.7％

4,206

2.0%

3,778

1.8%

(10.2%)

Ordinary income

4,119

2.1%

4,549

2.3%

＋10.4%

4,198

2.0%

3,702

1.8%

(11.8%)Net income*1

3,006

1.5%

3,110

1.6%

＋3.4%

1,965

0.9%

1,781

0.9%

(9.4%)*1 Profit attributable to owners of parent

40

5/41

Earnings Summary for the Fiscal Year Ended March 31, 2024 (FY2023): 4
Consolidated Income Statement (Jan.–Mar.)(Million yen)

1Q FY2023(Apr.–Jun.)

2Q FY2023(Jul.-Sep.)

3Q FY2023(Oct.-Dec.)

4Q FY2022(Jan.-Mar.)% of net
sales

YoY

QoQ
(vs. Oct.Dec.)

96,402100.0%(6.2%)(12.2%)

79.6%

78,20681.1%(4.5%)(13.0%)

18,75818.3%

15,301

15.9%(18.4%)(14.3%)

1.9%

2,201

2.1%

2,894

3.0%

＋31.5%＋38.0%

26,13923.8%

25,95725.2%

26,116

27.1%

＋0.6%

(0.1%)

23.0%

24,34622.2%

23,76423.1%

24,131

25.0%

＋1.5%

(0.9%)

3,494

3.3%

1,793

1.6%

2,193

2.1%

1,985

2.1%

(9.5%)＋10.7%

1.2%

3,472

3.2%

1,781

1.6%

2,172

2.1%

1,920

2.0%

(11.6%)

＋7.8%

0.7%

2,489

2.3%

1,017

0.9%

830

0.8%

763

0.8%

(8.1%)(25.0%)

Actualresults% of netsales

Actualresults% of netsales

Actualresults% of netsales

Actualresults% of net
sales

90,377100.0%

107,106

100.0%

109,806

100.0%

102,817100.0%Of which, sales at stores

72,99880.8%

90,35884.4%

89,855

81.8%

81,857

Of which, sales in EC
Business

16,04817.7%

15,41414.4%

17,853

16.3%

Other

1,330

1.5%

1,333

1.2%

2,097

Gross profit

24,78727.4%

28,081

26.2%

Selling, general andadministrative expenses

23,695

26.2%

24,586

Operating income

1,091

1.2%

Ordinary income

1,076

Net income*1

620

Net sales

4Q FY2023(Jan.-Mar.)
Actualresults*1 Profit attributable to owners of parent

6/41

Earnings Summary for the Fiscal Year Ended March 31, 2024 (FY2023): 5
Sales by Product (Apr.–Sep.)(Million yen)

1Q FY2023(Apr.–Jun.)

2Q FY2023(Jul.-Sep.)

3Q FY2023(Oct.-Dec.)

4Q FY2023(Jan.-Mar.)

Actualresults% of netsales

Actualresults% of netsales

Actualresults% of netsales

Actualresults% of net
sales

TVs

5,252

5.8%

7,120

6.6%

8,537

7.8%

6,255

6.5%

Refrigerators

5,841

6.5%

8,206

7.7%

6,960

6.3%

5,351

Washing machinesand vacuum cleaners

8,205

9.1%

10,071

9.4%

10,0869.2%

Microwave ovens andcookers

3,559

4.0%

4,217

3.9%

5,050

Air conditioners

11,76413.0%

16,28915.2%

Personal computers

4,500

5.0%

4,580

Mobile phones

6,596

7.3%

Games, models, toys,
musical instruments

13,730

15.2%

Full FY2022(Apr.–Mar.)
Actualresults

Full-year FY2023(Apr.–Mar.)% of netsales

Actualresults% of net
sales

27,285

6.7%

27,1656.7%(0.4%)

5.6%

26,573

6.5%

26,3596.5%(0.8%)

8,934

9.3%

37,443

9.2%

37,2979.2%(0.4%)

4.6%

4,745

4.9%

17,142

4.2%

17,574

4.4%

＋2.5%

6,451

5.9%

5,271

5.5%

41,246

10.1%

39,7769.9%(3.6%)

4.3%

4,728

4.3%

7,036

7.3%

23,674

5.8%

20,845

5.2%(11.9%)

8,645

8.1%

11,423

10.4%

11,53512.0%

33,3298.2%

38,2009.5% ＋14.6%

14,17013.2%

20,102

18.3%

15,666

16.3%

63,972

15.7%

63,66915.8%

YoY(0.5%)

7/41

Earnings Summary for the Fiscal Year Ended March 31, 2024 (FY2023): 6
Balance Sheet(Million yen)2023/032024/03

Change(Million yen)

Current assets

114,560

124,006＋9,445

Tangible assets

75,08574,902Intangible assets

2,471

Investment, other assets

2023/032024/03

ChangeCurrent liabilities

84,376

84,571

＋194

(183)

Non-current liabilities

38,143

43,590＋5,4472,545＋73

Total liabilities

122,520

128,162＋5,642

31,10031,322＋221

Non-current assets

108,657

108,769＋112

Total net assets

100,698

104,613＋3,915

Total assets

223,218

232,775＋9,557

Total liabilities and net assets

223,218

232,775＋9,55745,964

53,104＋7,139Total net interest-bearing liabilities*

43,194

49,212＋6,017(Reference)
Total interest-bearing liabilities*Total net interest-bearing liabilities: Interest-bearing liabilities less cash and deposits

Cash Flows(Million yen)2023/032024/03

ChangeCash flow from operating activities (a)

7,119

2,278

(4,840)Cash flow from investing activities (b)(9,070)(4,806)＋4,264(Free cash flow (a) + (b))(1,951)(2,527)(576)

Cash flow from financing activities

2,360

3,649

＋1,289Cash and cash equivalents at end of period

2,769

3,891

＋1,122
8/41

Full-year Forecast for the Fiscal Year Ending March 31, 2025 (FY2024)
Consolidated Income Statement (Full-year Forecast)(Million yen)

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

Full-year FY2024 (Apr.–Mar.)
Forecast% of net sales

YoY

403,692

100.0%

410,000

100.0%＋1.6%

Operating income

8,364

2.1%

9,000

2.2%

＋7.6%

Ordinary income

8,251

2.0%

9,000

2.2%

＋9.1%

Net income (*1)

4,891

1.2%

6,000

1.5%

＋22.7%Net sales*1 Profit attributable to owners of parent

Forecast for First Half (Apr.–Sep.) and Second Half (Oct.–Mar.)(Million yen)First half FY2023(Apr.-Sep.)

First half FY2024 (Apr.-Sep.)

Actual results % of net sales

Forecast% of net sales

YoY

Second half FY2023(Oct.-Mar.)
Actual results % of net sales

Second half FY2024 (Oct.-Mar.)
Forecast% of net sales

YoY

197,483

100.0%

198,000

100.0%＋0.3%

206,209100.0%

212,000

100.0%＋2.8%

Operating income

4,586

2.3%

4,600

2.3%

＋0.3%

3,778

1.8%

4,400

2.1%

＋16.5%

Ordinary income

4,549

2.3%

4,600

2.3%

＋1.1%

3,702

1.8%

4,400

2.1%

＋18.8%Net income (*1)

3,110

1.6%

3,200

1.6%

＋2.9%

1,781

0.9%

2,800

1.3%

＋57.2%Net sales*1 Profit attributable to owners of parent

9/41

Trends of Financial Conditions and Net Interest-bearing Liabilities
Net interest-bearing liabilities increased and net D/E ratio stably remained low.
(Times)0.7(Billion yen)
120

100

80

0.49
89.1

99.3

100.7

98.6

104.6
0.47

0.6

0.5

0.43
0.38

0.4

60

0.27
40

0.3

49.2

43.7
37.7

43.2

0.2

26.4

20

0.1

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

24/3

10/41

Trend in Number of Stores
We strengthened Joshin brand directly managed stores to promote our dominant strategy and reentered the Gunma Prefecture market
for the first time in about 20 years.
Breakdown of stores by region as of the end of March 2024
Store openings and closures in FY2023
RegionNumber ofstoresNew opening

JoshinDirectKansai

143

135

Tokai

34

32

Hokushinetsu

23

23

Kanto

16

16

Shikoku

2

0

2

218

206

4

Total

2024

Franchise62

2(Number of stores)
240

230

234
12

234
9

New opening accompanied
by relocation

234
7

200

16/3

17/3

18/3

Nara

JoshinNara store => Nara Sanjo-oji store

PrefectureStore format

Store nameFebruary

Hyogo

TSUTAYATSUTAYA Takasago Yoneda store

2024

February

Aichi

Franchise

MEGLiA Fujioka store

2024

March

SaitamaJoshin (OL)Outlet Tokorozawa store

220

223

221

218

5

5

5

4

215

218

216

214

21/3

22/3

23/3

24/3

5

15/3

Store name

2024

5

232

Store format

TSUTAYA Yao-oihara store

6232

Prefecture

TSUTAYA

239

227

AEON MALL Ota store

Osaka

237

225

Joshin

June

238

222

Gunma

2023

220
210

Store nameFebruary
Closure2

Store format

March

2024

6

Prefecture

234

190
180
19/3
Direct20/3
Franchise

Total

11/41

[Table of Contents]◼ Earnings Summary for the Fiscal Year Ended
March 31, 2024 (FY2023)◼ Full-year Forecast for the Fiscal Year Ending
March 31, 2025 (FY2024)◼ Initiatives Under Medium-term Management
Plan (JT-2025 Management Plan)◼ Progress and Issues for Medium-termManagement Plan (JT-2025 Management Plan)(i) Individual Strategies(ii) Sustainability-related Initiatives

12/41

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

2.6%

Ideal form in FY2030
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% ⇒ 40% or higher 30% ⇒ Maintain 40% or higher*1 ROIC: (Operating income x 0.65) ÷ (interest-bearing liabilities + equity) with assumed effective tax rate of 35%

13/41

Toward Realization of Management With Capital Costs and Share Prices in Mind
Promote efforts to improve PBR from both ROE and PER aspects

Improving PBR

ROE (%)= Net income ÷ Net assets × 100

Cost of equity
reduction

Achieve PER
exceeding sector
average
PER= Share price ÷ EPS

Strengthen
sustainableprofitability◼

◼ Establish uniqueness and differentiatedbusiness models◼ Develop optimum business portfolio◼ New businesses, M&A, etc.

◼

Acquire future
growthexpectations

Control of risks andopportunities inbusiness

Share buybacks
Increase dividends (phased improvement in payout
ratios)Reduce cross-shareholdings, etc.

◼
◼

◼
◼
◼

Steadily achieve KPIs targeted in Medium-termManagement Plan
Carry out strategic investments that lead to futurebusiness growth
Strengthen IR activity (structural reinforcement), etc.

Integration of business strategies andsustainability/ESG
Enhance financial/nonfinancial information disclosure(acquire external evaluation)
Enhance governance structures, etc.

Financial strategy

Business strategies

Environmental
policies

Diversity and inclusion

Improve board of
directors effectiveness

100-year company and beyond

Achieve ROE
exceeding cost ofequityOptimum capital
structure◼
◼

JT-2025 Management
Plan

14/41

FY2023: Cost of Equity and Weighted Average Cost of Capital at Joshin GroupWe revised the base data of risk-free rate, recalculated it using latest data, and confirmed validity of FY2025 ROE and ROIC targets.

Cost of equity（％）
Cost of equity

Beta (β) exposure

Risk free rate

Risk premium

Base data for risk free rate
Calculated using the formula: "10-year government bondyield in key regions * percentage composition“
Actual results as at 29 March 2024 are used.
Percentage Composition

Yield

Japanese government bonds (50%)

0.72%

U.S. Treasuries (30%)

4.20%

German Bonds*

2.30%

0.50⇒2.08%＋

Safe assets,risk-free rate

0.95⇒0.95

×6.00⇒6.00%＝

CAPM
6.20⇒7.78%

Vs. TOPIX basis
Risk unique to Joshin

Excess return expectedfrom equity investment*CAPM (capital asset pricing model) isa theory for calculating the cost ofshareholders' equity.

*Remained largely at
FY2022 levels*Estimated based on paststock market returns

1 – Equity ratio

1 – Corporate tax rate

Weighted average cost ofcapital（1－0.35）

WACC
2.99⇒3.67%*Euro government bond yield indicator
Total average yield

2.08%

Weighted average cost of capital（%）
Cost of equity

Equity ratio

Interest rate on debt

CAPM

（

6.20⇒7.78%

×0.45⇒0.45*FY2023 44.9%）＋（

0.35⇒0.45%

×0.55⇒0.55

×）＝*Tax-saving effect of interest
expenses being tax deductible
considered

15/41

Consolidated Management IndicesNo change in final-fiscal-year targets of JT-2025 Management Plan; aim to achieve them by strengthening profitability with focus on operating income ratios

FY2025 (JT-2025 final fiscal year)

FY2022
actual result

FY2023
actual result

Net sales

408.5

403.7

410.0

420.0

104.0%

Operating income ratio

2.0％

2.1％

2.2％

2.6％

－

Operating income

8.3

8.4

9.0

11.0

131.5%(Billion yen)

FY2024
forecast

Ideal form in FY2030
Plan

Vs. FY2023

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

374.4

2.1%

391.7

403.8

415.6

449.1
409.5

408.5

403.7

410.0

420.0

3.7%
2.5%

2.7%
2.2%

2.0%

2.1%

2.2%

8.8

8.3

8.4

9.0

FY2021

FY2022

FY2023

FY2024
forecast

2.2%

2.6%

16.5
7.9

9.6

10.9

FY2016FY2017FY20188.9
FY2019FY2020Net sales

Operating income

Operating income ratio

11.0
FY2025Plan

FY2030ideal form
16/41

Capital Efficiency IndicesNo change in final-fiscal-year targets of JT-2025 Management Plan; aim to achieve them by strengthening profitability to expand EPS
FY2022
actual result

FY2023
actual result

FY2025
plan

Ideal form in FY2030

ROE

5.0%

4.8％

8.0% or higher

Aim for 10.0% or more

ROA

3.8%

3.6％

5.0% or higher

Aim for 7.0% or more

ROIC*1

3.7%

3.4％

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%

12.0

(%)

10.0
8.0

7.1

6.0
4.0

2.0

10.0

9.4

4.4
4.1

8.0

7.6

7.1

6.2

5.2
5.0

8.1
8.0

6.6
5.0

5.6

5.1

4.4
4.3

4.4
4.2

4.8

3.8
3.7

3.6
3.4

FY2022

FY2023

5.0
5.0

7.0
7.0

0.0
FY2016FY2017FY2018FY2019ＲＯＥ(Return On Equity)

FY2020

FY2021

ＲＯＡ(Return On Assets)

FY2025 Plan

FY2030ideal form

ＲＯＩＣ(Return on invested Capital)
17/41

Shareholder Returns
Raise payout ratio target to 40% or higher and meet shareholder expectations by strengthening profitability to expand income gains in March 2024

FY2022
actual result

FY2023
actual result

40.2%

48.4％

Payout ratio

FY2024
Forecast
43.5％

FY2025
plan

Ideal form in FY2030

30% ⇒ 40% or higher

30% ⇒ Maintain 40% or higher

(Yen)
100

90

90

75

80

75

48.4

60

50

50

50

16.3

30.0

31.4

32
19.9

40.0

43.5

40.2

42

30

20

50.0

75

70

40

(%)
60.0

100

20.9

24.6

20.0

22.6

10.0

10
0

0.0
FY2016FY2017FY2018FY2019FY2020

FY2021Dividends

FY2022

FY2023

FY2024
Forecast

FY2025Plan

FY2030ideal form

Payout ratio
18/41

Trends in Joshin’s Stock Price and PBR
Share prices fell below Nikkei Average in 2024, but PBR Improved to 0.6 times
Mar. 29, 2024
¥2,328160.0%

140.0%(Times)1.00

144.0%

Mar. 31, 2023
¥1,9540.61 times

0.51 times
120.0%

0.50

119.1%
100.0%

100.0%
80.0%

Figures with
March 31, 2024
level set as 100

0.00*Calculated
PBR ÷= Shareprice ÷ BPS （ＢＰＳ）にて試算※ＰＢＲusing＝ 株価
一株当たり純資産*Calculated using BPS = Net assets ÷ Number of issued shares (excluding※ＢＰＳ ＝ 純資産 ÷ 発行株式数（自己株式除く）にて試算
treasury shares)

Nikkei Average

Joshin Denki

ＰＢＲ
19/41

Progress of Fan Base Strategy
Number of active members decreased but member purchase amounts increased; Joshin Card members increased steadily
Number of active members*1
FY2023 results

Member Purchase Amount*2

About ５.２０ million ⇒ ５.００ million

About ６２，０００ yen ⇒ ６４，５００ yen*1. Customers who have purchased products or services from us at least once in FY 2023

*2. Average unit price per active member purchased in a year

Number of Joshin Card members

Conceptual image of fans and core fans（million）
Fans

Positioning

Quantitative
definition

Core fans

Customers who
continually support anduse our services

Customers who strongly
support our services andco-create future value• 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 year30

103.6%

104.0%

102.7%

102.7%

102.6%

100.0%
80.0%

20

10

60.0%

22.77

23.67

24.30

24.96

25.60

40.0%
20.0%

Evaluates values we offer through products and services in addition to prices⇒ Purchase amount is on a rising trend ⇒ Steady increase in average annual
purchase amount ⇒ Results in strengthened profitability0

0.0%
FY2019FY2020

FY2021

Number of Joshin Card members(total memberships issued)

FY2022

FY2023Rate of increase
20/41

Joshin Smile Program Launched Officially
Commenced on February 3, 2024, aimed at increasing Gold Smile or higher raked members, who are positioned as fans/core fans

New launch! What is Joshin Smile Program?

Greater value, more smile!
New program is coming!

◼
◼
◼

A service where customers can enjoy greater value depending on theirpurchase at Joshin Group stores and Joshin web shop
The members’ rank to be determined based on the combined totalpurchase amount at physical stores and Joshin web shop
It offers five stages of member ranks, and members are entitled tobenefits 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

21/41

Expanding Delivery, Installation, Recycling Areas to Nationwide!
Expanding areas in which we deliver and install large home appliances that require recycling, from our service areas to nationwide in both real-store and EC
channels

Start date: Monday, February 19, 2024
Aim to maximize synergy through collaboration, rather
than thinking about real stores and EC separately

Expanding applicableareas to all regions
across the country
Hokushin-etsuregion*Excluding some remote islands and mountainous areas;
products requiring construction work excluded

By enhancing collaboration with partner companies, we
aim to expand areas in which we deliver and install large
home appliances that require recycling, rather than justdelivering, to all regions across the country in order tostrengthen our logistics system.

Kanto
regionKansairegionTokairegionGiving top priority to improving customer
convenience, Joshin Service, our wholly owned
subsidiary, takes on services that require delivery,
installation and recycling/construction work and,elsewhere, we build business foundation throughcollaboration with partner companies, except forsome remote islands and mountainous areas.
22/41

Efforts to Address "2024 Problem" in Logistics
Building stable product supply structures through measures to address various issue, including efforts to secure transportation capacities and address
driver shortages

Relay transportation initiatives centered on Chubu region began
Kansai region[Key measures](i) Measures to address declining transportation capacity
caused by driver shortages◼

Improve efficiency by reviewing store delivery routes and delivery
frequencies, and improve loading efficiency*Implemented in Kansai, Kanto and Hokushin-etsu regions(ii) Reduction in driver commitment time (including standby
time)

Chubu region◼

Reduction in truck delivery waiting time through introduction of berthmanagement (delivery reservation) system*The system introduced at the Kansai Ibaraki Logistics Center will be
introduced to other facilities in phases.

◼

Promote introduction of paperless operation and EDI systems for
documents used delivery processes to stores/warehouses

Relay point
Swap transportation
Driver switching(iii) Reduction in transportation distances*Swap transportation in which containers
are shifted and driver-switching method
being introduced, beginning in April 2024◼

Strengthen functions of Tokyo Logistics Center, which covers the
Kanto region(EC shipment to start June 2024)

Kanto region
23/41

Provision of New Services Begun in Support Business
New subscription service menu provided by Joshin Group expanded
U-NEXT for Joshin begun to be provided

Started “AppleCare+” monthly payment plan

Add peace of mind with AppleCare+U-NEXT for Joshin is one of the largest video and e-book services in Japan,
offering over 360,000 video titles*1 For 2,189 yen, the unlimited video streaming
service has over 310,000 videos for unlimited viewing and over 190 magazines forunlimited reading, and many latest rental titles are offered. Subscribers can view
any title at any time.
Launch date: April 1, 2024
⚫ Available at Joshin Group stores (excluding some stores*2)⚫ Monthly rate: unlimited video viewing service for 2,189 yen (inc. tax)
⚫ (U-NEXT points worth 1,200 yen granted monthly)*1. As of April 1, 2024
*2. MEGLiA main store, Anjo Sakurai store, Naruto store, Tokushima store, and Joshin web shop

AppleCare+ is a guarantee service for Apple products. By subscribing to theprogram on a monthly fee, users are qualified to receive services, including repairs
for damage caused by negligence or accidents, as many times as they need during
the contract period. Users are also qualified for priority access to Apple's dedicatedspecialists for inquiries, via phone or chat.
Launch date: April 1, 2024
⚫ Eligible products: Mac, iPad, Apple Watch, and Apple displays⚫ Available at Joshin outlets selling Apple products (excluding Joshin web shop)
24/41

Printer Ink Rakuraku Ordering Service Launched
Printer Ink Rakuraku Ordering Service (ink ordering card vending machine) introduced at Nara Sanjo-oji (and three other) stores
Printer Ink Rakuraku Ordering Service (ink ordering card vending machine)

(i)

(ii)

◼

Touch panel system customers can operate at stores◼

Customers can select printer ink products using one ofthree different methods and easily print out an ordering
card.

◼

Aimed at eliminating customers’ concerns about ordering
wrong products and enabling effective use of sales floors◼

Improves staff work efficiency by reducing maintenancework on ordering cards(iii)(i) Method of scanning the member bar code on a Joshin Card and select from the photos of
the printer ink products purchased in the past or the printers

Provides customers with improved shopping experiences andimproves both efficiency for a store as a whole and customer
service(ii) Method of selecting a product by scanning the bar code printed on a printer ink package(iii) Method of searching from a printer manufacture and selecting
25/41

Take-Home Full Self-Service Cash Register Introduced
Take-home full self-service cash register introduced at Wakayama (and seven other) stores◼

Enabled multiple cash register operation with only one
store staff member(Realized cash register operation with less staff members)◼

Automated voice and on-screen information
communicates without fail.
Service for customers guides customers' operation(Realized simplified cash register operation)◼

◼

Uniform quality achieved through automated voice and onscreen information for services that should becommunicated to customers, such as long-term repair
guarantees(Gap in degrees of mastering between store staffers
corrected)

Achieves both highly efficient operation in anticipation of
decreased working population and sustainable provision ofhigh-quality customer service
26/41

CDP A Score Earned; 100% Renewable Energy Conversion Ratio Achieved at Business Sites
for Which the Company Has Signed Contracts Directly
Steadily carried out action plans to address material issues in accordance with Joshin Group Environmental Principles
A score, highest rating by CDP, earned in climate change fieldＡ

Achieved 100% renewable-energy power conversion ratio at 150
business sites for which the company has signed contracts directly*1*1. Carbon credits used at business sites in areas where power utilities' renewable-energy power plans
are not available, such as islands (one business site).

Ｂ
Ｃ

2021

2022

2023
Ibaraki store

Our group began submitting responses to CDP's questionnaires in fiscal 2021.

We were selected among A list companies, the highest rated group, in fiscal 2023
in recognition of leadership in transparency and performance in the climate change
field.
With the acquisition of CDP A score as a guidepost showing the direction forrealizing "2050 Carbon Neutral Goal," we aim to further promote efforts on complex
environmental issues and promote sustainable management that aims to co-create"social values in harmony with the global environment" with all our stakeholders.

Hikone store

Our group is a retail business selling mainly home appliances, and most of ourgreenhouse gas emissions are from power usage at stores. As such, we gave top
priority to introduce renewable sources for electricity used at business sites(conversion to renewable energy) and steadily implemented this over the past two
years.
We cut 18,000 tons of GHG annually through the introduction of renewable energy
this time.
We also actively made efforts on private power generation/self-consumption using
renewable energy from solar power systems.
27/41

[Table of Contents]◼ Earnings Summary for the Fiscal Year Ended
March 31, 2024 (FY2023)◼
Full-year Forecast for the Fiscal Year Ending
March 31, 2025 (FY2024)◼ Initiatives Under Medium-term Management
Plan (JT-2025 Management Plan)◼ Progress and Issues for Medium-termManagement Plan (JT-2025 Management Plan)(i) Individual Strategies(ii) Sustainability-related Initiatives

28/41

JT-2025 Management Plan: (i) Progress of Individual Strategies and Issues
Individual Strategy⚫ Open new stores and strengthen existing stores with focus onsynergies between EC stores and real stores

Real stores⚫ Improve customer satisfaction through realization of highly
efficient, high quality management leveraging ICT(Touch panel product selection, online customer service, selfcheckout system, customer service support system, electronicPOP, 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

FY2023: Progress and achievements

FY2024: Issues and planned initiatives⚫ New store openings: 2 stores (1 new, 1 relocation), withdrawal: 5stores (including 2 affiliates and 1 FC store)⚫ Store opened in Gunma Prefecture for the first time in 20 years
in March 2024 to strengthen fusion with EC stores inmetropolitan area
⚫ Carried out full renovation (30 stores), partial renovation (19stores), and refreshing renovation (48 stores) with aim tostrengthen existing stores◼ Opening of 2 new stores, annual net increase of two stores(including 1 in Kanto) targeted◼ Renovation of total 106 stores planned, including fullrenovation (18 stores), partial renovation (23 stores), andrefreshing renovation (65 stores)⚫ Self-service cash registers introduced at time of opening or
renovating stores* Introduced at total 8 stores◼ Step up efforts for full introduction of self-service cash
registers, to reduce checkout-related operations anddevelop a store operation system that allows staff to focus
on serving customers◼ Support efforts at stores that have failed to take fulladvantage of the systems to improve operational efficiency
through guidance and support from headquarters* Qualification holding ratio of Joshin Group indicated in "Efforts
on Diversity and Inclusion"⚫ Store reform sales (yoy): 102.5%⚫ Number of mobile phones (yoy): 102.6% (116.3% on value basis
due to unit price rises)◼ Conduct training by rank, including for second-ranking
individual and product-specific area leaders◼ Actively conduct store exchange training◼ Strengthen sales floors (promote reforms, including
painting external walls in wall surface corners, expand
application for subsidies)◼ Conduct closer-accompanying training to improve customer
service skills◼ Enhance seating corners for mobile products

29/41

JT-2025 Management Plan: (i) Progress of Individual Strategies and Issues
FY2023: Progress and achievements

FY2024: Issues and planned initiatives⚫ Strengthen products that support customers（Further expansion of the support menu to assist
customers in their daily lives）⚫ Number of items in stock increased to 193,000 (103% vs.
target)⚫ Number of listed products increased to 700,000 items◼ Increase number of items in stock to 198,800 (103%vs. target)◼ Increase number of listed products to 750,000 items⚫ Strengthen EC business operation structure by securing
and nurturing in-house DX human resources(Develop education system to nurture DX humanresources, promote in-house development)⚫ DX human resources training conducted by external
instructors; DX levels raised for entire divisions◼ Further strengthen external training and OJT todevelop DX human resources⚫ 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 super-aging society
for improving customer satisfaction)⚫ Cooperation structures to improve inquiry response rates
developed⚫ Structures established to ensure timely response to inquiry
emails through strengthened monitoring efforts⚫ Inquiry details scrutinized and findings reflected in CS
improvement◼ Further improve CS, ensure attentive customer
service in expectation for extreme aging of society,improve convenience, and realize direct purchasing
support◼ Take advantage of experienced staff with wealth ofexperience and skills◼ Further strengthen monitoring functions and training
to raise both inquiry response rates and quality levels⚫ Grow to an attractive website that wins the approval of thecustomers(Procure carefully selected items and develop attractive
original products by strengthening Merchandisingcapability)⚫ Sales of EC original products, including mainly PCs,
increased, playing the role of complementing shortage inexisting product lineup◼ Strengthen and expand development and sale ofstrictly selected, attractive original products throughenhanced MD capabilities⚫ Improve customer convenience with measures such as
store pick-up of products purchased in EC⚫ Trial operation of real-store store pick-up of EC-carried
products begun in March 2024
Number of eligible product items increased* 98% of listed products are covered.

◼ Full-fledged operation of real-store pick-up of ECcarried products to begin in April 2024
◼ Begin nationwide delivery/installation of home
appliance products to meet customer demand

Individual Strategy

EC

30/41

JT-2025 Management Plan: (i) Progress of Individual Strategies and Issues
Home appliances

Individual Strategy

Entertainment

FY2023: Progress and achievements

FY2024: Issues and planned initiatives⚫ Strengthen sales of environmentally friendly products(energy-saving products) for achieving householdcarbon neutrality⚫ Environmentally friendly products (energy-saving
products) unit composition ratio: 25.6% (target unit
composition ratio: 35%)
* Target products: refrigerators, air-conditioners,
television, and warm-water toilet seats◼ Replace televisions to washing machines intarget products, target unit composition ratio forwater-saving drum-types: 25%◼ Target unit composition ratio of overall
environmentally friendly products: 30%* Revised downward from 35% due to changes
above from televisions to washing machines

Individual Strategy

FY2023: Progress and achievements

FY2024: Issues and planned initiatives⚫ Establish firm branding by further strengthening
entertainment products, which are maintaining highmarket share⚫ Total real-store sales of game software products andaccessories underperformed year-earlier levels.
⚫ Number of newly subscribed "Kids Members"
exceeded target.
* Number of newly joined members in FY2023: about
72,000* Cumulative number of members as of end-FY2023:
about 230,000 (145% vs. year earlier)◼ Conduct sales floor creation competition multiple
times◼ Review software, parts, and store appeal tools,
as well as promote sales floor creation◼ Conduct employee group training sessions tostrengthen development of human resources incharge of entertainment

31/41

JT-2025 Management Plan: (i) Progress of Individual Strategies and Issues
Individual Strategy⚫ Initiatives related to products that contribute toachieving carbon neutrality in households(V2H, stationary storage batteries, apertureinsulation, high efficiency water heater)

Renovation⚫ Initiatives related to renovation products for “stock
recycling” and “improving QOL(quality of life) byincreasing efficiency” of housing(Water conservation, reducing household burden,
upgrading childcare support, highly functional
bathroom, nursing care-related, etc.)⚫ Response to renovation related to nursing careneeds to support enhancing the resilience of theaging society

FY2023: Progress and achievements

FY2024: Issues and planned initiatives⚫ No major progress for V2H as Ministry of Economy,
Trade and Industry subsidies depleted on May 21,
2023⚫ Economic benefit of storage batteries uncertain due tomaterial price spikes; door/window openings insulationand high efficiency water heaters remained solid,
supported by subsidies◼ Greater use of energy-generating, energy-storing,
EV charging equipment, eco interior windows, highefficiency water heaters, and door/window
openings insulation products* Solar panels, household storage batteries, EV
charging equipment, home entrance doors,
external wall painting⚫ Demand remained solid supported by a renewedinterest in renovation using existing homes, a trend
driven by rises in property price indices.
⚫ 1st place in the 2023 Oricon Customer Satisfaction
Survey for standalone housing renovations for threeconsecutive years*Smart Masters qualification holding ratio of JoshinGroup indicated in "Efforts on Diversity and Inclusion"⚫ Acquisition of welfare and living environment
coordinator qualification encouraged◼ Strengthen efforts for wet-area products, including
system kitchens, system baths, toilet renovation◼ Continue encouraging acquisition of welfare andliving environment coordinator qualification

32/41

JT-2025 Management Plan: (i) Progress of Individual Strategies and Issues
Mobilecommunication

Individual Strategy

FY2023: Progress and achievements

FY2024: Issues and planned initiatives⚫ Make proposals tailored to requirements of mobile
terminal and network-related customers⚫ Consolidated related divisions in mobile business tostrengthen sales capabilities⚫ Impact felt from the December 2023 amendment to aministerial order under the Telecommunications
Business Act but mobile devices and broadband
contracts exceeding year-earlier levels won◼ Revise targets for each real store and hold morethan 1,000 events to boost volumes (800 events
year earlier)◼ Conduct training programs to strengthen
customer-serving and proposing skills at
specialized training facilities

Individual Strategy

FY2023: Progress and achievements

FY2024: Issues and planned initiatives

Support business⚫ Test operation begun ahead of customer rental start◼ Expand stores handling rental items in Kansai(15 stores targeted)*Start with facial massagers and shower heads⚫ Build new business that include subscription andrecurring revenue⚫ Trial operation of U-NEXT for Joshin begun◼ Provision of U-NEXT for Joshin begun on April 1,
2024◼ Handling of AppleCare+ monthly payment plan
begun on April 1, 2024

⚫ Realize circular economy by strengthening reusebusiness⚫ Number of used smartphone purchases exceeded
year-earlier figure.
⚫ 12,552 smartphone purchased in 76th term (155%vs. year earlier)◼ Strengthen purchase through courier services by
renewing purchasing website◼ Expand stores handling reuse smartphones⚫ Enhance support menu that would help in solving
customers’ issues

33/41

JT-2025 Management Plan: (i) Progress of Individual Strategies and Issues
Individual Strategy

FY2023: Progress and achievements

FY2024: Issues and planned initiatives

Promotion Marketing⚫ Introduce “New Loyalty Program” to promote the fanbase strategy⚫ Joshin Smile Program, a member rank program
integrating real stores and EC, introduced⚫ Special-offer coupons according to member ranks
and app push notification service launched◼ Strengthen relationship with members and aim todevelop flexible service provision structures⚫ Strengthen information dissemination throughoperation of retail media “Joshin ads” and promotemonetization⚫ Cost estimate and order instances increased, driven
by contract with new sales agents*Number of contracted manufacturers: total 23
companies, number of deals: 75◼ Expand sales menus; develop more sales agents◼ Enhance services for contracted manufacturers⚫ Digital ad PV increased to 180% of year-earlier level
thanks to collaborative effect with app◼ Strengthen scenario operation of MA (market
automation) system* Scenario: A function for taking actions basedon predefined stories according to customer
attributes and behavior history◼ Establish app distribution at right timing⚫ Enhance points of contact with customers by utilizing
Joshin app and digital media

34/41

JT-2025 Management Plan: (i) Progress of Individual Strategies and Issues
Individual Strategy

Information Systems (ICT)FY2023: Progress and achievements

FY2024: Issues and planned initiatives⚫ Establish data flow foundation that will contribute tocreating new customer satisfaction, employee
workstyle reforms (sales activities leveraging ICT),and prompt management decisions⚫ Equipped 73 stores with ordering card issuancetablet devices that have detailed product information
display function and staff-calling function (20 suchdevices at each store)⚫ Printer Ink Rakuraku Ordering machines installed atthree stores◼ Expand stores introducing full self-service cash
registers (take-home products) (measures toaddress labor shortage and to simplify checkout
operation)◼ Expand stores installing Printer Ink Rakuraku
Ordering machines and develop derived models(shaver spare blades, electric toothbrush sparebrushes, air purifier filters, memory cards, etc.)⚫ Realize optimum approach through one-to-one
marketing with further sophistication of CDP（Customer Data Platform）and marketing
automation (MA)⚫ CDP analysis platform completed, enabling customer
analysis from wide-ranging perspectives and adding
new judgment criteria to sales strategies◼ Acquire customer behavior history data on EC
site◼ Practice personalized optimum approaches◼ Realize one-to-one marketing⚫ 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.)⚫ Issuance of electronic receipts to Joshin app
members begun in November 2023; purchasehistory can be viewed for 10 years from issuance◼ Realize remote customer service using Joshin
app as an entry point (repair consultation for
products brought in, estimate consultation for
air-conditioners, renovations, etc.)

35/41

JT-2025 Management Plan: (i) Progress of Individual Strategies and Issues
Individual Strategy⚫ Expand the logistics structure covering the Kanto
area(Establish logistics structure with two bases in thewest and east and the Kansai Ibaraki Logistics
Center at the core)

FY2023: Progress and achievements⚫ Tokyo Logistics Center floor area increased beginningin October 2023; mobile distribution center started its
operation in January 2024 with aim to improve delivery
efficiency of mobile devices in Kanto area
⚫ Number of TC/DC product items increased* TC: Acronym for transfer center
DC: Acronym for distribution center

FY2024: Issues and planned initiatives
Tokyo Logistics Center◼ EC shipment to start in June 2024; shifting tomultifunctional logistics center equipped with
TC/DC/EC functions
Kansai Ibaraki Logistics Center◼ Promote labor saving through introduction ofmaterial-handling equipment

Logistics⚫ Distribution routes reviewed; next-day delivery deadline
brought forward; venous lead time extended; no day-off
system during busy season reviewed◼ Examine "2024 problem in logistics" measures andidentify new issues and design countermeasures◼ Prepare measures in anticipation of issues in andafter 2025 problem in logistics◼ Set up relay point to Kanto region in Chubu region(driver-switching method + swap transportation)⚫ Establish highly efficient logistics structure throughlabor saving⚫ No-store-restocking-slip operation: February 2024
Kansai region: introduced at 132 stores◼ No-store-restocking-slip operation: introduced in
Tokai and Hokuriku areas in April 2024
◼ Prepare introduction of no-store-restocking-slip
operation in Tokyo area

⚫ Expand delivery area utilizing external delivery
network⚫ Areas where delivery, installation and recycling
services for large home appliance products areavailable expanded to areas across the country
Started for real stores in February 2024 and for EC in
March 2024

◼ Strengthen service structures for real storesthrough enhanced skills of Kansai Ibaraki Home
Delivery Center staff◼ Strengthen efforts to correct gaps in usage
frequency between stores⚫ Respond to implementation of the Act on the
Arrangement of Related Acts to Promote Work Style
Reform in the transportation and logistics industry(Strengthen collaboration with vendors led by partnercompanies)

36/41

JT-2025 Management Plan: (i) Progress of Individual Strategies and Issues
Individual Strategy

Delivery, installation, construction

FY2023: Progress and achievements

FY2024: Issues and planned initiatives⚫ Promote hiring and education of diverse humanresources in preparation for aging of employees(Enhance service menu through reskilling)⚫ Total 38 full-time employees hired, including new graduate andmid-career hires*New hires aged 31 on average; 34 males and 4 females⚫ A female delivery supporter hired; 3, combined with year-earlier
hires⚫ Various training programs conducted◼ Promote hiring of female employees working outside office*Review hiring media; strengthen contents◼ Strengthen service menu line-ups by promoting education
through various reskilling training programs⚫ Build technical support system for service personnel(onsite repair)⚫ On-site repair structure enhanced through systematic training of
repair technicians⚫ New service staff repair skills basic training and air-conditioner
OJT at Business Development Department conducted◼ Increase number of visits centered on white appliances◼ Continue to strengthen OJT education at Business
Development Department⚫ Expand the area where the Joshin Group provides
service and improve capability⚫ Introductory training program for new cooperating company
employees conducted for the purpose to expand areas andstrengthen skills◼ Improve service skills and quality by Joshin Group andcooperating companies, including creation of delivery andinstallation manual for each product and appropriate updateof air-conditioner installation work specifications ensuring
related personnel is informed⚫ Strengthen hybrid structure made up of the JoshinGroup and contractors for securing stable capacity(delivery and installation) and improving quality⚫ Relations with existing cooperating companies strengthened anddevelopment of new cooperating companies promoted*Number of contracted companies: 92 companies for construction
work and 11 companies for delivery added⚫ Work quality maintained and quality improved throughimplementation of CS training and introductory training◼ Strengthen new cooperating company development
projects◼ Enhance governance education targeting cooperatingcompanies◼ Maintain and strengthen CS training that contributes toquality improvement⚫ Establish a new repair consultation desk utilizing ICT(realize online diagnosis)⚫ Develop remote diagnosis system for product issues using
Joshin app◼ Launch real-time online trouble diagnosis service byspecialized technicians using Joshin app for items brought
in to stores

37/41

JT-2025 Management Plan: (ii) Progress of Sustainability-related Initiatives and Issues (Environment)

Individual Strategy⚫ Raise renewable energy conversion ratio at businesssites

FY2023: Progress and achievements

Initiatives for climate change problems⚫ Power purchase agreement to receive power: 100%
renewable energy conversion ratio achieved at 150
business sites for which the company has signed
contracts directly (as of end-March 2024)

FY2024: Issues and planned initiatives◼ Ask tenant stores to introduce renewable energy
and aim to achieve carbon neutral for all businesssites

On-site PPA⚫ Installable: Installation to 73 business sites fullycompleted⚫ Improve off-grid power generation ratio throughintroduction of photovoltaic systems

Off-site PPA⚫ Power supply from solar power equipment installed by
Daigas Energy to 13 business sites supervised by
Tokai Sales Department (equivalent of 2,128 MWh)begun (in November 2023)◼ 2MW off-site PPA introduced in April 2024 throughtie-up with Kansai Electric Power* Annual consumption equivalent of 2,155MWh⚫ Initiatives for reducing Scope 3 GHG emissions⚫ Third-party guarantee of categories 1, 11 implemented;
target scope expanded to 98.1% of total emissions withthe addition of scope 1, 2
⚫ Discussion on measures to reduce categories 1, 11
begun with member companies of Association of Large
Home Appliance Retailers◼ Conduct calculation with base data switched fromestimates to actual figures to reduce GHG
emissions◼ Improve emissions calculation precision in
upstream/downstream of logistics throughcollaboration between Logistics Supervisory
Department and MITSUI-SOKO LOGISTICS Co., Ltd.
and work out category 4 reduction plans⚫ Initiatives for realization of circular economy⚫ Discussion with external companies in each businessflow launched to help realize circular economy(i) Purchase of PCs and smartphones → recycle →resale(ii) Collect cardboard and waste paper generated atbusiness sites → reuse◼ Maintain engagement with companies that practicebusiness flows in (i) and (ii) on left, withinvolvement by relevant divisions

38/41

JT-2025 Management Plan: (ii) Progress of Sustainability-related Initiatives and Issues (Society)Individual Strategy

Initiatives for diversity and inclusion

FY2023: Progress and achievements

FY2024: Issues and planned initiatives⚫ Enhance employee engagement⚫ Employee engagement survey tool introduced⇒ FY2023 average overall score: 63.5
⚫ Recognized as Certified Health and Productivity Management
Organization (large enterprise category) for 5 consecutive years◼ Enhance employee engagement using engagement survey tool
◼ Make work rewarding for veteran employees and pass down
their knowledge in preparation for 2025 introduction ofretirement age of 65◼ Raise career formation awareness to groom female leaders◼ Identify human resources by talent management and assign
appropriate personnel to growth businesses⚫ Strengthen hiring of employees⚫ Total 234 hired, including 104 new graduates and 130 mid-careerhires⚫ Referral hiring introduced⚫ New addition to defined benefit (DB) corporate pension plansuspended◼ Secure annual 200 group fulltime employees stably◼ Hire mid-career expert human resources for planning and ICT
divisions◼ Shift to defined-benefit pension plan (secure asset portability tostrengthen mid-career hiring)⚫ Ensure diversity of employees (age, gender,
skills, nationality, etc.)⚫ Female ratios: fulltime employees 14.1%, managerial positions
4.3%⚫ Ratio of employees with disabilities: 2.68%⚫ First female store manager appointed on Oct. 1, 2023
⚫ 28 days of child care leave until child reaches 1 required for male
employees⚫ Subsidies for holiday child care and child care fees introduced◼ Female ratios: fulltime employees 15.0%, managerial positions
4.5%◼ Ratio of employees with disabilities: 2.70%◼ Balance treatment of regular and nonregular employees bypromoting equal pay for equal work principle and introduce
common personnel system among group companies.
◼ Enhance measures to support employees to manage
child/nursing care and work in a balanced manner⚫ Improve diverse expertise of employees⚫ Home appliance advisor/engineer qualification
Number of qualified individuals: 3,522, holding ratio: 85.0%⚫ Smart Masters
Number of qualified individuals: 2,298, holding ratio: 55.4%⚫ Acquisition of welfare and living environment coordinator
qualification encouraged to help strengthen nursing carerenovation business◼ Increase holding ratio of home appliance advisor/engineer
qualification◼ Increase holding ratio of Smart Master qualification◼ Increase holding ratio of welfare and living environment
coordinator qualification to help strengthen nursing carerenovation business◼ Increase holding ratios of electrician and installation technician
qualifications⚫ Support autonomous growth of employees⚫ DX education targeting all regular employees continued to be
conducted; participated by total 1,637 individuals; participated by
39.8% of eligible employees⚫ IT passport qualification acquisition supported◼ Continue conducting DX education targeting all regular
employees◼ Encourage acquisition of information technology engineer
qualifications, including IT passport

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JT-2025 Management Plan: (ii) Progress of Sustainability-related Initiatives and Issues (Governance)

Efforts to improve board of directors effectivenessIndividual Strategy

FY2023: Progress and achievements⚫ Improve PBR through efficientmanagement conscious of capitalcost⚫ Capital cost disclosed in Medium-term Management Plan; medium-term targets for ROE
and ROIC to help improve PBR
and management strategies disclosed⚫ Number of cross-shareholding stocks as of March 31, 2024: 25 companies*As of end-March 2023: 26 companies⚫ Shares bought back: 325 thousand shares⚫ Selected among component stocks of FTSE Blossom Japan Index, an ESG index, for the
first time
⚫ Policy for “Measures to realize management that is conscious of the cost of capital andstock price” disclosed in Corporate Governance Report (Dec. 7, 2023)⚫ Dividend policy revised; payout ratio target raised from at least 30% to at least 40%⚫ Continue to discuss measures to improve growth strategies to increase resolution ofMedium-term Management Plan

⚫ Reinforce link between themedium- to long-term
management strategies anddirectors’ compensation⚫ Revise Directors' compensation system to increase composition ratio of performancelinked compensation to 50% and composition ratio of share-based compensation to 30%⚫ Adopt financial indicator (ROE) and ESG indicators (CDP climate change score,
employee engagement score) for indicators used to calculate share-based compensation(long-term incentive compensation)⚫ Treasury shares disposed of through third-party allotment capital increase on Nov. 28 inconjunction with continuation of performance-linked share-based compensation system
for Directors and introduction of performance-linked share-based compensation systemfor executive officers* Number of shares disposed of: 200,000
Total amount disposed of: 470,600,000 yen(2,353 yen disposed of per share)⚫ Establish director succession plan
based on skill matrix⚫ Revise skill matrix to add "ICT/DX" and "Environment/energy" to management skills⚫ Work out and disclose skill matrix use policy to improve Board of Directors effectiveness⚫ Revise officer training implementation method and shift formats from group training
session to individual theme choice-style seminar⚫ Carry out Board of Directors skill set assessment regularly and establish FY2024 skill
matrixFY2024: Issues and planned initiatives◼ Continued discussion of optimum capital structure· Capital adequacy ratio level· Cross-shareholdings reduction· Expand and enhance IR structure and enhance financial
and nonfinancial information disclosure◼ Step up efforts to improve sustainable profitability· Differentiation strategy and business foundation
development to support stable growth of core home
appliance business· Consideration of growth businesses that can generatesynergies with home appliance business· Integration of business and ESG strategies◼ Strengthen supervisory function and effectiveness for
Board of Directors, enhance Director succession plans to
support it, and design succession plans for executive
officers to help realize the above

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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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