Integrated Report 2023

NISSIN CORPORATION
Yokohama Head Office6-81 Onoe-Cho, Naka-Ku, Yokohama, 231-8477
TEL: +81-45-671-6111

Tokyo Office
6-4, Kojimachi 1-chome, Chiyoda-ku, 102-8350 Tokyo
TEL: +81-3-3238-6666

Official Home Page

https://www.nissin-tw.com/english
Contact details for inquiries
Corporate Planning Dept.
PR & IR Section
TEL: +81-3-3238-6555
E-Mail: planning_prir@nissin-tw.com

NISSIN
Integrated
Report2023

Sustainability Philosophy

CONTENTSNISSIN Integrated Report 2023

Nissin GroupOur mission is to contribute to the sustainable
development of society
as a good corporate
citizen, and we carry out
free and fair corporate
activities globally, with astrong sense of ethicalvalues.

Corporate Philosophy

Touch the hearts of all, delivering
global happiness and peace

PurposeIn our spirit of “Improving day by day”,
the Nissin Group’s aim is to “contribute to the sustainable development ofsociety”, “provide high-quality services
to realize a prosperous society”, and“grow as a group in line with the expectations of our stakeholders”

Basic Sustainability Policy

Basic Policy of Medium-Term Business Plan

ESG Initiatives

Value Creation

3

Sustainability Overview

31

Message from the President

5

Environment

33

Nissin Group’s History

9

Society

37

Business Model

11

Governance41

Global Network

12

Data Section

Financial and Non-financial Highlights

13

Growth Strategy

Materiality

Medium-Term Business Plan and
Financial Plans

11-Year summary

45

Financial Information

47

Company Data & Stock Information

49

15

Strategy by Business Segment
Logistics Business
Four themes
to realize a sustainable society

As a global logistics provider, we will take onchallenges in new business domains, further
cultivation of core businesses and engage
in ESG management.

Natural capital

Earth

Manufacturing/
intellectual capital

Human/
intellectual capital

Quality

PeopleSocial capital

Trust

The Company and Stakeholders

19

Mobility

21

Chemical Products

23

Food Logistics

25

DX and New Businesses

27

Travel Service & Real Estate Business29

Contribute to a decarbonized,
recycling-based society bypromoting green management

Editorial Policy
Globalenvironment

Address social issues
through partnerships

Pursue the world’s top
quality through strong
trust and collaboration

Raise corporate value
through timely,
appropriate and fairdialogue

Industrygroups
Initiatives

Local communities
Global community

Business
partners

Customers

Shareholders

Government

Employees

Respect every person andmaximize their capabilities

1

Harmonize with local
communities and create
bonds with the world

Deliver trust to bringsmiles and satisfaction

Promote responsible
corporate activities

The Nissin Group published CSR Reports until 2021 and a
Sustainability Report in 2022. This year, 2023, we have newly
published the Integrated Report to provide more extensive
information. This new report communicates the Group’s businessactivities more clearly to a wide range of stakeholders to facilitate adeeper understanding.
The main topics presented in the report include the Message fromthe President, Value Creation Process, Growth Strategy, Strategy
in Each Business, ESG Management, and other Non-Financial
Information, as well as Financial Information such as an overview
of the Group’s financial results. This year, we present our initiatives
for each main business under the Medium-Term Business Plan andour progress on these initiatives. Regarding ESG management, we
explain the Company’s initiatives aimed at sustainable growth. The
Group places emphasis on an active dialogue with stakeholders.
We will continue to expand and enhance the content of ourintegrated report to provide useful tools for all our stakeholders. It
would be grateful if you could give us your honest opinions on it. In
editing this report, we referred to the “Guidance for Collaborative
Value Creation,” published by the Ministry of Economy, Trade andIndustry.
Scope of report: Nissin Corporation and its subsidiaries (the Nissin
Group)
Period covered: April 1, 2022 - March 31, 2023
(This report also includes some related information that is outside thisperiod.)Tools Map

Financial
Information

Shareholder and investor
information (website)
https://www.nissin-tw.com/ir/

Non-financial
Information

Sustainability (website)
https://www.nissin-tw.com/company/csr/

Integrated Report

Securities report
Summary of financial results

Corporate governance report

Financial results presentation
document

2

NISSIN
Integrated
Report2023

Nissin Group

Value Creation
The Group’s Mission, Vision, Values, and Management Strategies

Our Strengths

Businesses

Medium-Term Business Plan

Value We Provide to Society

VISION FOR 2030

(FY2022 to FY2026)

Logistics
Business

Globalnetwork

Mission

Systems andDX services(Purpose)

Touch the hearts ofall, delivering global
happiness and peace

Ocean cargo
Air cargo
Port and harbortransportation/
warehousing
Land transportation/
domestic vesseltransportation
Consigned factory work

Travel Service
Business
Highlyspecializedhuman
resources

Improve
corporate value
and enhanceshareholder
returns

Promote business portfolio
strategy

Promote ESG
management

Build supply
chains andmaintainlogistics
networks

Promote digitaltransformation (DX)

Create businesses in new
domains

Provideopportunities for
employees to growand make the mostof their abilities

Materiality

Solutionsthat reduce
environmental
impactImprove corporate value and enhance shareholder returns

ROE
DOE
P/B ratio

FY2023 target:
FY2026 target:
Minimum:
FY2026 target:

about 8.0%
about 9.0%
2.0%
over 1.0x

59.0 billion yen
70.0 billion yen

Contribute to a decarbonized society

GHG emissions reduction(non-consolidated, Scope 1 and 2)
FY2022 result: 12,635 t-CO2
FY2030 target: 42% reduction (from FY2020)
2050 target: Aim for carbon neutrality

3

Promotediversity

Build supply chains and maintainlogistics networks

Mobility sales
FY2022 result:
FY2026 target:

Proportion of electricity consumption
from renewable energy
FY2020 result:0%
FY2021 result:
1.09%
FY2022 result:
14.73%

Through the power of “people” and“innovation,” we will construct optimallogistics supply chains to contribute tosolving diverse social issues

Provide highquality logistics
DX services

Basic Sustainability Policy

Real EstateBusiness

Supply Chain
Logistics
ProviderChemicals sales
FY2022 result:
FY2026 target:
Foods sales
FY2022 result:
FY2026 target:

28.0 billion yen
40.0 billion yen
16.5 billion yen
20.0 billion yen

Provide opportunities for employees to grow andmake the most of their abilities and support thedevelopment of the next generation

Average days of annual paid leave taken
FY2022 result:
10.9 days
FY2024 target:
12.0 days or more

Provide high-quality logistics
DX services

DX services-related sales
FY2027 target: 7.0 billion yen

Contribute toa decarbonizedsociety

Promote diversity

Increase the ratio of female
managers
FY2022 result:
8.3%
FY2024 target:
10.0%

Contribute toa circulating
society

ValuesBe apioneer

Respect
differences

Have anattentive
heart

4

NISSIN
Integrated
Report2023

Nissin Group

Message from the President

Reaffirming our ability to respond to changes and our purpose as “Nissin for emergencies”

We will overcome changes andIn recent years, the society around us has been shak-and industry, has also played host to various initiatives.

en to the core by unprecedented changes, such as theWe have identified “realizing a decarbonized soci-

COVID-19 pandemic and the outbreak of the Ukraine

ety and contributing to an environmentally conscious,

build an abundant future tocrisis, with the outlook for the future remaining unpredict-circulating society” at the top of the list of the Group’sable. The impact of these changes has significantly af-

important issues (materiality) related to sustainability. As

fected the logistics industry, with rising energy prices andenvironmental measures based on this, we are endeav-“touch the hearts of all, delivering

supply chain disruptions giving rise to strain and delays inoring to reduce our greenhouse gas (GHG) emissions bylogistics due mainly to a shortage of containers, as wellfocusing on initiatives to switch to renewable energy inas an abnormal surge in freight rates.

our business activities, introduce energy-saving equip-

global happiness and peace.”

President

Tsutsui Masahiro

Under these circumstances, the Group has responded

ment, and use electric vehicles (EV).

to customer needs by using swift and flexible methods to

As a logistics company, we have a social duty to imple-

solve issues, such as securing a variety of transportation

ment initiatives to address climate change and achievemodes, proposing and providing alternative transport

decarbonization. At the same time, these initiatives alsoroutes, etc. This enabled us to fulfill our social duty as ahelp us capture new demand by responding to the envi-

logistics infrastructure operator. We have been known

ronmental needs of our customers and target industries,

for some time as “Nissin for emergencies,” and we re-promoting modal shift, and so on. By actively promoting

affirmed our purpose by demonstrating this capacity tothese initiatives, we hope to contribute to creating a sus-

respond to changes, even in unprecedented conditions,tainable society while simultaneously raising the Group’sand carry out the mission entrusted to us as a logistics

corporate value and achieving medium- and long-term

company.

growth.

At the same time, society as a whole faces the need to

We will work to overcome changes and build an abun-address the global issue of climate change. Amid the in-dant future so that we can fulfill our purpose of touchingcreasingly widespread movement towards decarboniza-

the hearts of all, delivering global happiness and peace.

tion, logistics, as an industry that supports people’s lives

Building and providing flexible and seamless logistics to meet the needs of our customers
We pride ourselves on pioneering international compre-

By maintaining staff with extensive expertise and skills

hensive logistics, with the Group’s overseas networkin each industry and utilizing the Group’s accumulated

covering 24 countries and regions worldwide. Our broadknow-how, we can provide high-value-added logistics

range of services encompasses all aspects of the logis-

services. Making the most of this strength helps to dif-

tics business, from global multimodal transport, includ-

ferentiate us from our competitors. Particularly in our

ing ocean, air, rail, and truck transportation, to port andmainstay automobile-related logistics, we handle not only

harbor transportation and warehousing, house moving,

completed vehicles but also an extremely wide variety

and customs clearance. At present, our logistics busi-

of parts and components used in automobile manufac-

ness is focused on the three pillars of automobile-related,turing. A precise and accurate response, underpinned

chemicals and hazardous materials, and food logistics.

by our expertise, is required to meet the wide range ofWe have won high acclaim and trust by leveraging ourdemands placed on us by our customers. Of course, aextensive overseas network and comprehensive logistics

high degree of expertise is also essential for the special

function to build and provide flexible and seamless logis-transportation of hazardous materials, etc.

tics to meet the needs of our customers.

5

In terms of tangibles, we boast a broad network of our

One of the strengths that provides the Group with its

own warehouses and logistics facilities with advanced

competitive advantage is our high level of expertise, sup-environmental performance. In terms of intangibles,

ported by a sales structure specialized for each industry.

we are ahead of our competitors in providing digital

6

NISSIN

Nissin Group

Integrated
Report2023

Message from the President

transformation (DX) solutions, such as the digital forward-

our approach to providing value through “customer-close

ing service Forward ONE. Higher logistics quality throughproposals” and “high hospitality services.” This approach

the active implementation of these solutions is also one

embodies our purpose to “deliver global happiness andof our significant competitive advantages.

peace,” and we will continue to uphold it as part of theAnother element we prize as one of our strengths isGroup’s corporate culture.

Steady progress on initiatives to further cultivate core businesses,
promote ESG management, and pursue businesses in new domains
We are currently implementing the Group’s Seventh
Medium-Term Business Plan, “Nissin Next 7th” (NN7),
spanning the five years from FY2022 to FY2026. NN7
is based on three basic policies: 1) further cultivation ofcore businesses, 2) ESG management, and 3) businesses in new domains. The first two years of the five-yearplan (FY2022 and FY2023) are designated as Phase 1,
and the last three years (FY2024 to FY2026) as Phase
2. Based on the platform set up in Phase 1, we aim toachieve our targets and create high corporate value inPhase 2.
In FY2022, we achieved a good start to Phase 1,
with increased sales and profits due to a strong performance in the logistics business, mainly in Japan, andprogress on improving earnings in the travel service
business. That situation was brought about as a resultof our capital investments and measures implemented
under the previous medium-term business plan (FY2017
to FY2021), and the transportation of urgent cargo increased amid a recovery after the COVID-19 pandemic.
In FY2023, we anticipate a decline in sales and profits
due to a decrease in the volume of cargo handled after
the unusual demand seen in FY2022, as well as the
expected normalization of soaring freight rates. Nevertheless, we expect to achieve all of the performance● Results of Sixth Medium-Term Business Plan & quantitative

targets of Seventh Medium-Term Business Plan
(Billions of yen)

Operating income (Billions of yen)

Net sales

300(Targets)(Results)

200

194.1
(Results)

15

275.0

12.6

11.0

190.0

(Targets)

10(Targets) 8.5(Targets)

100

5

0

0
2022

7

2023

2026

(Fiscal year)

targets we have set for Phase 1: net sales of 190.0 billion yen, operating profit of 8.5 billion yen, ordinary profitof 9.0 billion yen, profit attributable to owners of parentof 6.5 billion yen, and ROE of about 8.0%.
Going forward, we will implement the following initiatives based on our basic policy under NN7.As forfurther cultivation of core businesses: In automobile-related logistics, we will focus on growing the volume of
EV-related cargo we handle and leveraging our global
network to expand these efforts around the world toachieve the further cultivation of core businesses. In
chemical logistics, we will utilize our Kanagawa Wharf
Warehouse, which began operation in September 2023,
to meet the expanding demand for hazardous materials
logistics while also boosting our price competitiveness.
In terms of our DX strategy, we are making steady progress in providing our Forward ONE digital forwarding
service, and we will extend the range of our businesses
by expanding the implementation of this service, as wellas the HACO Lab. returnable logistics container management service.
Regarding ESG management, we will not only pursue
efforts to address important issues (materiality) related
to sustainability, described below, but also structure ahighly effective framework for corporate governance toreinforce our relationships of trust with all stakeholders.
We have established a project calling for the submission of ideas for businesses in new domains from within
the Group, and we are currently in the process of examining and selecting the ideas we have collected. The“New Business Development Office” will be central incommercializing specific businesses under Phase 2.
Under NN7, we have also established new capital
policies for the Group, aiming to swiftly raise the price/book ratio (P/B ratio) to more than 1.0x by expanding
investment for growth and new businesses and improving capital efficiency. We will implement 20.0 to 25.0
billion yen of capital investment and 5.0 to 10.0 billion
yen of other investment during the five years of the plan,
as well as pursuing measures such as dividends witha minimum DOE of 2.0%, share repurchases, and the
reduction of cross-shareholdings.

Practicing sustainability and human capital management based on materiality
We have launched initiatives to address sustainability
based on the four important issues (materiality) we identified in August 2022: “realize a decarbonized society andcontribute to an environmentally conscious, circulating
society,” “implement cutting-edge technology and provide high-quality service,” “respect all people and build
an environment where individuals can bring out their best
abilities,” and “create a company that is fair, valuable,
and hopeful to all stakeholders.”
As one of these initiatives, we declared our support
for the Task Force on Climate-Related Financial Disclosures (TCFD) recommendations in June 2023. We now
disclose our GHG emissions targets based on the 1.5°C
scenario, aiming to achieve carbon neutrality by 2050.
Specifically, we aim to reduce our GHG emissions by
42% by FY2030 (compared to FY2020; Scope 1 and
2 for the Company on a non-consolidated basis). As a
global logistics company, this is a very hard goal for us
to achieve. We have begun by targeting electric power,
which accounts for a large proportion of our emissions,achieving a reduction of approximately 20% (annualized)
at ten facilities in FY2022 through introducing renewableenergy. We will continue to expand the application ofrenewable energy at our facilities. At the same time, we

aim to achieve our targets by promoting the use of electric trucks and other commercial vehicles with high environmental performance, as well as the use of alternative
fuels. Looking ahead, we plan to expand these efforts toour consolidated Group companies and proceed to address Scope 3 emissions.
Meanwhile, the materiality to “respect each person andbuild an environment where individuals can bring out theirbest abilities” corresponds with our efforts to promote
the active participation and growth of our employees,
based on our belief that they are the vital “human capital”
required to expand corporate value. We have established
new policies on the recruitment and training of humanresources and the improvement of the internal environment, with the aim of promoting the Group’s human capital management by securing diverse human resources
and boosting the abilities of each employee. We havealso taken active steps to enhance personnel systems
and reform workplace environments to support active
participation by female employees.
Through our initiatives focused on human capital, we
will create a corporate environment that fosters both personal and organizational growth.

Creating even more significant social value to meet the expectations of
all our stakeholders
We believe that the value of Nissin as a company deWe look forward to all our stakeholders’ expectations
pends on how we address the expectations of all ourand continued support for the Group as we create evenstakeholders.
greater social value.
As:• logistics infrastructure that supports people’s lives and industry• a business partner that supports the growth of our customers andtrading partners• a listed company that rewards the support it receives fromshareholders and investors• a workplace where employees can workwith a sense of security, grow, and play an active part
we will deliver global happiness and peace, aiming for aprosperous future.

NISSIN
Integrated
Report2023

Nissin Group

Nissin Group’s History
As a pioneer in international comprehensive logistics, Nissin Corporation provides a full range oflogistics services including ocean, air, rail, and truck transport, as well as warehousing, moving,
and customs clearance.

2020 COVID-19
2011 Great East Japan Earthquake

Major eventsin society
1930

1951 San Francisco Peace Treaty
1940

1955 - 1973 Japan’s rapid economic growth period

1950

December 1938 Established Nissin Transport Co., Ltd.
in Kawasaki, Japan
October 1942
Relocated head office
to Yokohama

1960

1970

1980

May 1973

Listed on First Section of the Osaka Stock
Exchange
December 1973 Established Nissin International Transport
U.S.A., Inc. as first overseas subsidiary

Head office of Nissin Transport Co., Ltd. Tokyo Sales Office

Changed company name to Nissin
Trading Co., Ltd.
November 1948 Established Kobe Branch Office
April 1949
Started warehousing business andstrengthened warehousing department

March 1946NISSIN INTERNATIONAL TRANSPORT U.S.A., INC.

January 1974

July 1975
April 1978
April 1981
October 1981
Strengthened warehousing department

January 1950

Changed company name to Nissin
Transportation & Warehousing Co., Ltd.
April 1950
Listed on First Section of the Tokyo Stock Exchange
April 1950
Port and harbor transportation began in port of
Yokohama
November 1954 Established Tokyo Branch Office
May 1958
Established Osaka Branch Office
July 1961
Entered the travel service businessAugust 1961
Completed Kanagawa Pier and started
operations as Nissin Pier1991 Burst of
the economic bubble

March 1983
October 1983
October 1983

Established Nissin Transportation &Warehousing (H.K.) Ltd. as a local subsidiary inHong Kong
Established London Branch Office
Spun off air travel section into Nissin Travel
Services Co., Ltd.
Established Hokkaido Nissin Transportation &Warehousing Co., Ltd.
Consolidated five offices in different Tokyo
wards to establish Tokyo Office(5, Sanban-cho, Chiyoda-ku, Tokyo)
Nissin Aircargo Co., Ltd was established upon
obtaining Airfreight Forwarder License
Established Nissin Transport (S) Pte., Ltd. as alocal subsidiary in Singapore
Spun off London Branch Office to the local
subsidiary Nissin (U.K.) Ltd.

19902008 Global financial crisis
2000

April 1992

Established Nissin France S.A.S. as a local
subsidiary in France
August 1992
Established joint venture Shanghai Gaosin Trade& Warehousing Industrial Co., Ltd. in Shanghai,
China
June 1994
Established Nistrans (M) Sdn. Bhd. as a local
subsidiary in Malaysia
February 1995 Established joint venture Changshu NissinSinotrans Transportation Co., Ltd. in China
March 1995
Established Nissin Airport Service Co.,Ltd. forground service in Kansai International Airport.
March 1997
Established joint venture Jiangsu
Nissin-Sinotrans International Transportation
Co., Ltd. in China
April 1997
Established Nissin Belgium N.V. as local
subsidiary in Belgium
December 1997 Established joint venture Nissin Transport Philippines Corporation in Philippines
May 1999
Established joint venture Nissin ABC Logistics
Private Ltd. in India
July 2000
Established Nistrans Internacional de Mexico,
S. de R.L. de C.V. as a local subsidiary in
Mexico2010

March 20142020

Established joint venture PT. Nissin Jaya
Indonesia in Indonesia

PT.NISSIN JAYA INDONESIA

January 2017

Established Nissin International Logistics (M)SDN. BHD as local subsidiary in Malaysia

March 2017

Acquired Changshu Nissin-Sinotrans
Transportation Co., Ltd. (currently Nissin(Changshu) International Logistics Co., Ltd.) asa subsidiary

December 2018 Marked 80th anniversary
April 2019
Established joint venture Nissin Global Logistics(Taiwan) Co., Ltd. in Taiwan, R.O.C.
March 2021

Established Heiwajima Refrigerated Logistics
CenterJuly 2021

Established Yokohama Heavy Cargo Packing
CenterJanuary 2022

Established Nissin International Logistics (C)Co., Ltd. as local subsidiary in Shanghai, China

NISTRANS INTERNACIONAL DE MEXICO,S.DE R.L.DE C.V.

August 2004

Established PT. Nissin Transport Indonesia as alocal subsidiary in Indonesia

March 2005NISSIN (U.K.) LTD.

October 1984
Nissin Kanagawa Pier

April 1969
July 1969
April 1970

Established Chiba Branch Office
Established Sapporo Branch OfficeStarted ocean export of completely built up(CBU) vehicles

January 1985
October 1985
October 1987

Established Nissin Transport (Canada) Inc. as alocal subsidiary in Canada
Established Nissin Transport G.m.b.H. as a local
subsidiary in West Germany
Changed company name to Nissin Corporation
Established Siam Nistrans Co., Ltd. as a local
subsidiary in Thailand

December 1987 Established Nissin Transport Ges. M.B.H. as alocal subsidiary in Austria
October 1988
Established Nissin Transportes Espana S.A. in
Spain

Established LLC Nissin Rus as a local
subsidiary in Russia
November 2005 Established joint venture Nissin-SinotransInternational Logistics Co., Ltd. in Beijing, China
May 2006
Established Nissin Logistics (VN) Co., Ltd. as alocal subsidiary in Vietnam
June 2007
Established Nissin Logistics Poland Sp. zo. o asa local subsidiary in Poland
November 2009 Acquired Tsurumi Warehouse Co., Ltd., as a
subsidiary
February 2012

Established Lao Nissin SMT Co., Ltd. as a local
subsidiary in Laos

June 2012

Established Nissin Logistics Shenzhen Co., Ltd.
as local subsidiary in Shenzhen City, China
Acquired Shanghai Gaosin International
Logistics Co., Ltd. as a subsidiary

October 2013NISSIN INTERNATIONAL LOGISTICS(C)CO., LTD.

February 2022
April 2022

Relocated Tokyo Office to current location(6-4, Kojimachi 1-chome Chiyoda-ku, Tokyo)
Moved to Tokyo Stock Exchange Prime Market

Exporting CBU vehicles

910

NISSIN
Integrated
Report2023

Nissin Group

Business Model

Global Network

The Nissin Group operates a worldwide logistics business as well as travel service and realestate businesses.

The Group’s overseas locations span 24 countries and regions and 36 local subsidiaries (including joint
venture companies). A finely tuned global logistics network has been established through our abundant
overseas bases, providing a one-stop service to meet diverse customer needs from air cargo, sea cargo,
ports and warehousing, to domestic Japanese operations.
Regarding overseas subsidiaries and affiliates in the logistics business, we have four companies in theAmericas, seven companies in Europe, 17 companies in the Southeast Asia/India region, and eightcompanies in China (as of the end of March 2023).

Logistics businessTravel service business5.2

billion yen

3%

Real estate business1.2

billion yen

Composition of
net sales

194.1

Logistics business187.7

billion yen

billion yen

96

%

1

%

As a pioneer in international comprehensive logistics, we have built
a global network encompassing 24 countries and regions worldwide.
Global network (Page 12)
Ocean cargo
We have extensive achievements, including NVOCC* services andlarge-scale plant transportation.
We are a pioneer in global multimodal transport.

Logistics Network* NVOCC: N o n - Ve s s e l O p e r a t i n g
Common Carrier

Air cargo
Our consolidated airtransport services cover
the major cities of theworld. At the destination,
we provide safe, accurate, and prompt doorto-door service to theconsignee through our
network of local subsidiaries and agents. Ourstrengths include theability to secure cargospace through our cooperative relationships withairlines and our competitive freight rates.
Port and harbortransportation andwarehousing
We are engaged in thecontainer terminal business at ports in Yokohama, Osaka, and Kobe. We
possess not only standard
warehouses but also thosewith added value, including temperature-controlled,hazardous materials, andautomated warehouses,
located mainly in port
gateways.
Land transportation andcoastal transportation
We provide logistics services utilizing extensive
transportation modes
and networks, such astruck, tanker truck, rail,and domestic vesseltransportation.
Onsite logistics support
We undertake various
work (packing, packaging, sorting, storage, retrieval, etc.) onsite at
customers’ factories andlogistics centers.

●

Travel service business: 9 companies●

Real estate business: 4 companies(incl. 1 specialized real estate company)

EuropeNumber of facilities
Warehouses
Area
Employees

China
15
13

Number of facilities
Warehouses

91,124m2

Area

304

Employees

The Americas
43
20

Number of facilities
Warehouses

142,032m2

Area

460

Employees

Asia
Number of facilities
Warehouses
Area
Employees

26
21

160,417m2
401

Japan
63
48

241,097m2
1,577

Number of facilities
Warehouses*
Area*
Employees

131
45

602,297m2
2,987* Non-consolidated basis

Travel service businessNissin provides total support to companies and other organizations for their business trips.
Nissin proposes travel plans that are tailored to the organization’s
objectives for business inspection tours, training trips, seminar andevent tours, and more.

Real estate businessNissin operates commercial buildings and parking lots andleases land for commercial use mainly in the Keihin area.
11

12

NISSIN
Integrated
Report2023

Nissin Group

Financial and Non-financial Highlights■ Financial Highlights■ Non-financial Highlights

Net sales

194,165

million yen

Operating income

Ratio of operating
profit to net sales

12,643

6.5(million yen)(million yen)

250,000

15,000

million yen

Operating income%

Ratio of operating profit to
net sales

218,040
197,387

200,000

192,699

12,000155,915150,000

9,098

6.5

5,729

10.9

(persons)

10

6,000

persons

5,920

5,868

6,000

50,000

3,000

0

0

4.7

5,698
2.6

3,528

2,611

1.8
FY2018FY2019FY2020

FY2021

FY2022

Profit attributable to ownersof parent

Basic earnings per
share

Equity ratio

10,528540.4753.6(million yen)

12,000

million yen

Profit attributable to owners of parent
Basic earnings per share

540.47

8,000

6,365

6,000

6

2,705
223.952,007

137.13

FY2021

60
50

400

40

300

30

0
FY202013.7%

Equity ratio
Return on equity

49.5

48.9

49.4

53.6

FY2019

200

20

100

10

0

0

FY2020

FY2021

FY2022

FY2021

FY2022

FY2020

FY2021Childcare leave acquisition rate*

Average overtime hours*

48.8

13.3

(%)

47.6

0

FY2022Return on equity

100% Overall (Men: 22.2%; Women: 100%)

Men

100

100

hours

(hours)Overall

Women

20

100

80

17.0

16.0

15

13.3

45.0
40

7.5

9.4
4.6

13.7

48.8

10

22.2

5

33.3

20

3.3

2.9

0.0

FY2020

FY20210

0
FY2018FY2019FY2020

FY2021

FY2022

FY2020

FY2022

FY2021

Cash flows from operating activities

Dividends per share (Newly established target DOE of 2.0% or above)

Proportion of electricity consumption fromrenewable energy*

GHG emissions volume* (Scope 1 and 2)

17,922

90.0

14.73

12,635

million yen

yen(million yen)

(yen)

(%)

20,000

100

15

%
14.73

80
60

10,801

10,000

55.0

56.0

56.0

60.0

5
5,000

0

0
FY2021

15,114
12,63520

0
FY202014,63410,0004,955

FY2019(t-CO²)20,00015,000

9,540

6,987

FY2018t-CO ²

10

40

5,000

FY202290.0

17,922
15,000

FY202260

103.550
FY2018

(%)

600

3
1,000

329.61

4,426

2,000

(yen)

500

FY2020%10,52810,0004,000

yen

FY2019

8.9

2,000

2
0

FY2018

10.9
9.5

4,000

6
4

1.7

12

9

3,000
100,000days(days)

5,729

5,000

8

9,000

Average days of paid leave taken*(%)

12,643

194,165

Number of employees

FY2022FY2018FY2019FY2020

FY2021

FY20220
FY20201.09
0FY2021

FY2022

FY2020

FY2021

FY2022(Nissin Corporation on a non-consolidated basis)

13

14

NISSIN
Integrated
Report2023

成長戦略

Growth Strategy

Medium-Term Business Plan and Financial Plans
Seventh Medium-Term Business Plan

ROE tree「 Nissin Next 7th 」

Under the Seventh Medium-Term Business Plan, the Group aims for the early realization of a price/bookratio (P/B ratio) of over 1.0x through measures such as expanding new businesses and improving capitalefficiency, in addition to further cultivating existing businesses.

For the final year of the 7th Medium-Term Business Plan, we target ROE of around 9.0%.
We will strengthen profitability by promoting our business portfolio strategy and creating new businesses, improve efficiency by streamlining the balance sheet, mainly by reducing strategic shareholdings, and optimize the capital structure, including
enhanced shareholder returns through measures such as flexible share repurchases.

Overview of the 7th Medium-Term Business Plan: Phase 1 :April 2022 through March 2024(two years)

ROE drivers

Key initiatives to improve ROE

Phase 2 :April 2024 through March 2027(three years)
Financial Targets
Phase 1
(Targets for FY2023)

Phase 2
(Targets for FY2026)

P/B ratio

Operating profit

Ordinary profit

Profit attributable toowners of parent

190.0 billion yen 8.5 billion yen

9.0 billion yen

6.5 billion yen

Around

8.0%

275.0

11.5

8.6

Around

9.0

Net salesbillion yen

11.0

billion yen

Expand business by investing in growth areas in thelogistics businessbillion yen

billion yen

Business portfolio strategy(= Cultivate core businesses)

ROE

Over

1.0x

Drive profit margin improvement using the new system(LESTER)
Reduce SG&A expenses through DX

Strengthen
profitability%

Establish an industry-specific sales organization andsystemDevelop new services by promoting DX
Create new businesses

Improve ROE

to around 9%

Create new businesses based on new perspectives
and ideas
Execute strategic M&A
Reorganize subsidiaries

Enhance

Capitalpolicies

shareholder
returns

Sell strategic
shareholdings

Implement

Improve efficiency

Streamline balance sheet
Reduce strategic shareholdings

investment
plan

Strive for an appropriate equity ratio

Optimize capital
structure

Incorporate leverage
Enhance shareholder returns

Continue paying stable dividends by setting aminimum payout (DOE of 2.0% or more)
Flexibly repurchase shares

Promote digital transformation (DX)
Expand sales activities
Digital forwarding service
Enable visualization of global logistics
activities through IoT Others
Achieve operational efficiency
Build a system for sharing cargo information
Optimize on-site work through IoT Others

Priority
measures

Create businesses in new domains
Establish the “New Business Development
Office” to promote the research, discovery,
and commercialization of new businesses

Promote ESG management
Build a system to promote sustainability
Promote green management, foster humanresources, ensure diversity
Identify our materiality
Respond to TCFD recommendations (Contributing
to a decarbonized and circulating society)

Promote business portfolio strategy
Manage portfolio by business, industry, and region
Product development and service enhancement
based on three-dimensional analysis
Engage in efficient business management andinvestment through revenue analysis

Cash allocation
We plan for cash inflows of 50.0 to 60.0 billion yen. We will allocate the cash generated to investment for growth and shareholder returns.
Investment for growth will include capital investments in facilities in Japan and overseas, M&A, and investments in IT, DX,
ESG, human resources development, and other areas. Shareholder returns will include flexible share repurchases in addition
to stable dividends.

Cash inflows
Sell strategic
shareholdings

Incorporate leverage

5.0 billion yen or more
Investment
for growth

1.5 billion yen

Basic policy

As a “global logistics provider,” we will take on challenges in new business areas,
deepen core businesses, and engage in ESG management

Further cultivation ofcore businesses

15

ESG management

Businesses in
new domains

Operatingcash flows
40.0 billion yen

6th Medium-Term Period

Cash outflows

Operatingcash flows
50.0 to60.0 billion yen

7th Medium-Term Period

Active investment in core businesses
and growth areas
Achieve investment returns thatoutweigh the cost of capital•earnings through• Expandthe appropriate allocation ofmanagement resources

Shareholder
returns

Maintain stable dividends based on
the dividend policy
Set a minimum level (DOE of 2.0%
or more)Repurchase shares of around10.0 billion yen••

7th Medium-Term Period

16

NISSIN

Growth Strategy

Integrated
Report2023

Medium-Term Business Plan and Financial Plans

Investment plan

Creating new businesses

We have implemented capital investment in priority areas and growth areas since the time of the 6th Medium-Term Business
Plan, mainly focusing on automobile-related, chemicals and hazardous materials, and food logistics. Under the current
Medium-Term Business Plan, we will further expand our investments, targeting a total amount of 30.0 billion yen or more. We
will continue to invest in priority areas, as we did under the 6th Medium-Term Business Plan, further cultivating our corebusinesses while also strengthening the business foundation and management fundamentals through investment in newrevenue sources for the Company, such as businesses in new domains and DX.

We are striving to create new businesses such as the promotion of digital transformation (DX) based on unconventional ideas.
In terms of our DX strategy, we are further cultivating existing business operations and expanding the creation ofopportunities with new business partners through the useof our Forward ONE digital forwarding service, which underwent a complete renewal in March this year, to provide
services with a high level of customer convenience.
We have also established a project calling for the submission of ideas for new businesses from within the Group,
and we are in the process of selecting the ideas collected
for commercialization. We are working towards creating
new commercial businesses from those totally new inspirations, such as logistics support using agricultural robots
and drones, as well as the use of AI for logistics management.

Automotive
Foods

Other: 5.0 to 10.0 billion yen

Chemicals and hazardous materials
Facilities

OthersAutomotive: 5.0 billion yen

Foods: 6.19 billion yen

Chemicals and hazardous
materials: 5.0 billion yen

Capex (plan)

Automotive: 1.77 billion yen

30.0 billion yen

Other: 1.68 billion yen

Facilities: 7.97 billion yen

Streamlining the balance sheet

Facilities: 10.0 to 15.0 billion yen

Capex (actual)17.6 billion yen

We aim to reduce strategic shareholdings by approximately 5.0 billion yen (equivalent to approximately 30% of theirmarket value as of March 31, 2023) by the end of FY2026(March 31, 2027). We will allocate the cash generated fromthese sales to investment for growth and shareholder returns. We will also engage in restructuring Group companies and other measures to improve efficiency andstrengthen functions.

Current Medium-Term Period(FY03/23-FY03/27)
Previous Medium-Term Period(FY03/18-FY03/22)

Business portfolio strategy
In the logistics business, we boast a sales structure specialized for each industry, and we will leverage our expert skills andaccumulated know-how to provide unique services with higher added value. We will also expand our businesses andstrengthen profitability by analyzing data across the three dimensions of business, industry, and region, as well as throughefficient business operations and the appropriate allocation of resources.

Three-dimensional business management

Portfolio by region(Millions of yen)
180,000

Japan

Asia

Americas

EuropeChina

Data
Warehouse

Business
portfolio

Net sales

3D dataCore systems

Industry

The Company’s basic policy has been to maintain stable dividends based on a comprehensive consideration of factors suchas business performance, financial condition, and the level of the dividend payout ratio, with our sights set on aspects including future changes in the operational environment and business development. We have now established a minimum dividendon equity (DOE) of 2.0%. We will also endeavor to further enhance shareholder returns through measures such as the flexible
implementation of share repurchases.

Minimum DOE of
2.0%

120,000
100,000(Yen)
120

Dividend
payout
ratio
(%)
60

2.5

50

2

40

1.5

30

1

20

0.5

10

0

0

100

80,000Share repurchases

40,00020,000
0
0.0

DOE
(%)
3

100.0

60,000RegionMarch 31, 2027

Enhancing shareholder returns

Dividend policy

FY2026140,000(equivalent to 30% of market value
as of March 31, 2023)

Dividend per share (DPS)FY2018

Data analysis

Aim for a reduction of
approx. 5.0 billion yen

March 31, 2023

160,000

Business

Strategic shareholdings

2.0

4.0

6.0

ROIC

8.0

10.0

12.0

14.0 (%)

Around
10.0 billion yen
by FY2026

90.0

80

60
50.0

40
35.0

37.5

40.0

40.0

56.0

56.0

60.0

55.0

45.0

20

0
FY
03/13

17

FY
03/14

FY
03/15

FY
03/16

FY
03/17

FY
03/18

FY
03/19

FY
03/20

FY
03/21

FY
03/22

FY
03/23

FY
FY
03/24 03/25(Forecast)

FY
03/26

FY
03/27

18

NISSIN
Integrated
Report2023

Strategy by Business Segment

Strategy by Business Segment
Logistics BusinessJapan
Our logistics business was founded as an in-harbor transport company in Yokohama, Japan’s primary gateway to
the world, and expanded to the Ports of Kobe, Osaka, andChiba. Today, we provide high-quality services using various modes of transportation such as air, sea, truck, andrail, as well as standard, temperature-controlled, and hazardous materials warehouses located in both port and inland areas. In addition, we have been certified as an
Authorized Economic Operator (AEO), organizing awell-developed system of security and compliance management. We provide services with a high added valuethat are well received by our customers.

Net sales

Operating income

FY03/2020

99.2 billion yen

2.0 billion yen

FY03/2021

100.4 billion yen

2.0 billion yen

FY03/2022

114.1 billion yen

4.1 billion yen

FY03/2023

114.9 billion yen

5.9 billion yen

Main initiatives
In September 2023, we opened our Kanagawa
Wharf Warehouse Office in Yokohama City. Ourstorage area (volume) of hazardous materials is thelargest in the Keihin area.
Expanding our framework for handling pharmaceuticals
We acquired GDP* certification for our Osaka Nanko Warehouse in April 2023, enabling us to provide
higher-quality services. We are also expanding ourultra-low temperature transportation business using
VIXELL vacuum-insulated cooling boxes.

China

The Americas

Starting from when we handled exhibition transport services for the International Commodity Fair held in both China and Japan in 1955, we have a long history and trackrecord in East Asia and currently have offices in major cities
throughout the region. In November 2005, we establishedNissin-Sinotrans International Logistics Co., Ltd. together
with Sinotrans, the largest logistics company in China. We
aim to build an efficient global logistics supply chain management system by leveraging our logistics network covering all across China.

We entered the American market in 1973 ahead of ourcompetitors, and currently have offices in the UnitedStates, Canada, and Mexico. As a global logistics provider, we provide air, ocean, and land transportation,customs clearance, warehousing, and JIT* delivery services, among others. We are constantly working to create new services, such as transport to the Midwestern
United States via the port of Manzanillo in Mexico to
avoid port congestion along the West Coast of the United States.

* SCM: Supply Chain Management* JIT: Just In TimeNet sales

Operating income

FY03/2020

10.7 billion yen

0.06 billion yen

0.6 billion yen

FY03/2021

11.8 billion yen

0.02 billion yen

17.3 billion yen

1.3 billion yen

FY03/2022

18.3 billion yen

1.0 billion yen

16.5 billion yen

1.5 billion yen

FY03/2023

19.4 billion yen

1.0 billion yen

Net sales

Operating income

FY03/2020

9.2 billion yen

0.04 billion yen

FY03/2021

11.8 billion yen

FY03/2022
FY03/2023

Main initiatives
Developing and spreading EMG services
We are progressively developing and spreading Nissin’s End to End Management Group (EMG), whichenables the visualization of cargo movements frompurchase order (PO) to delivery. The introduction of thissystem, which penetrates deep into our customers’
supply chains, will strengthen our services as a forwarder, such as the booking of ocean and air transportation space.

* GDP: Good Distribution Practice

Asia
Nissin has subsidiaries and representative offices in theSoutheast Asia region, including Thailand and Singapore, as well as in the India region. In response to
growing intra-regional transportation, we provide not
only air and ocean transportation, but also various services such as cross-border trucking in the Malay Peninsula and Mekong Land Bridge services. We are also
expanding our facilities such as halal-compliant andhazardous materials warehouses. In India, we have alogistics network that covers the whole country, handling domestic transport and DC operations.

Net sales

Operating income

FY03/2020

16.7 billion yen

0.7 billion yen

FY03/2021

19.6 billion yen

1.4 billion yen

FY03/2022

29.4 billion yen

2.6 billion yen

FY03/2023

27.6 billion yen

3.1 billion yen

Main initiatives
Acquiring GDP certification in Thailand
In April 2023, we obtained GDP certification, which
stipulates appropriate standards for the distributionof pharmaceuticals, for land transportation within
Thailand using four- and six-wheeled trucks that aretemperature-controlled at 25-30°C.We will provide
high quality services by utilizing our global network,
which is one of our strengths, and by establishing asystem to meet the high needs of our customers.
Opening a new warehouse in Singapore
In August 2022, we opened our second warehouse in
the Jurong district. The new warehouse mainly handles
chemicals, providing services that meet the high demands of our customers.

19

EuropeWe first opened a sales office in Hamburg in 1974, andcurrently have local subsidiaries in the nine countries ofGermany, the Netherlands, Spain, the United Kingdom,France, Belgium, Poland, Austria, and Russia. We have acquired GDP certification in Germany, Belgium, and France.
In Belgium, we operate the European depot for VIXELL
vacuum-insulated cooling boxes and are working tostrengthen a broad range of pharmaceuticals transportation
services.

Net sales

Operating income

FY03/2020

7.3 billion yen-0.3 billion yen

FY03/2021

6.7 billion yen-0.2 billion yen

FY03/2022

9.5 billion yen

0.1 billion yen

FY03/2023

8.9 billion yen

0.1 billion yen

Main initiatives
Launching the VIE GATEWAY CONNECTION,
a hub service for Central and Eastern Europe using
the Vienna International Airport (VIE)
We established an office at the Vienna International
Airport in Austria in September 2022, and havelaunched a service using the airport as a gateway fortruck transportation to countries in Central and Eastern
Europe. This enables a reduction in lead time compared to the previous route via Frankfurt. We are progressively expanding this business.

20

NISSIN
Integrated
Report2023

Strategy by Business Segment

Strategy by Business Segment/
Logistics Business

Mobility
Our vision for the final year of NN7
Our automotive logistics business has a long track recordof safely managing car loading operations at Keihin Port,
stretching from 1970 to the present. We are also highly
valued by our customers for our ability to propose packaging and transportation methods that accounts for thecharacteristics of each part — an ability developed
through the handling of prototype parts — as well as thedelivery date management services that maintain the automobile supply chain through coordination across 24
countries and regions around the world.
Looking ahead, the automotive industry is expected toshift to electric vehicles and embrace new technologies
progressively. This is adding impetus to the collaboration
between Japanese automobile manufacturers and newclients, and is expected to further increase the importance of coordinating with suppliers around the world.
Amid these momentous upheavals, more is required oflogistics services than just conventional punctuality andadherence to delivery dates. We must pursue environmentally friendly logistics, reducing CO² emissions andpromoting the reuse of resources.
Under our automobile project, we are promoting businesses based on three keywords: electrification, digitaltransformation, and reuse. Through our packaged service
combining LiB-Pack (lithium-ion battery container), Forward ONE (digital forwarding service), and HACO Lab.
(returnable logistics container management service),

Overview of the business, plans, targets, and status of progressdeveloped by Nissin, we will actively expand our sales
activities globally, aiming to support parts procurementby all mobility products manufacturers shifting to electrification through our logistics network.

Main products handled : Automobiles, automotive parts, etc.
Client industries : Automobile manufacturers,
automotive parts manufacturers, etc.
Main facilities: Daikoku motor pool,
Narashino motor pool, Ota Office,Haga Warehouse, etc.
New facilities: Haga Logistics Center(tentative name, expected to start
operation in 2024)
Overview of facility1) Electrification checking forelectrical components
2) Battery charging and discharging
3) Rapid charging of electric vehicles
4) Storage of parts and components
requiring temperature andhumidity control
5) Storage of lithium-ion batteries ina fixed-temperature warehouse

Net sales of automobile-related logistics(Billions of yen)

55.0

FY03/22(Result)

70.0
59.0

FY03/23(Result)

FY03/27(Plan)

Our story and aspiration to achieve our visionThis fiscal year, we have undertaken an organizational restructuring, splitting off our automotive logistics sales division in Japan, to achieve the goals of the Seventh
Medium-Term Business Plan. The new structure is more
flexible, enabling us to understand our existing customers’
needs more “deeply” and acquire new customers more“broadly.” Overseas, we are pursuing sales activities centered on four key regions: the Americas, Europe, Asia, andChina. We also plan to expand into new regions in Eastern
Europe and Africa. In Japan, we are working with local
communities to research truck-sharing services, agricultural product transportation assistance using AGV* to support agriculture, and production support using drones,
aiming to promote decarbonized logistics services.
We are also actively undertaking capital investment. In
order to respond to the EV shift, we will construct new
warehouses in inland and develop new logistics services at
Keihin Port.

Haga Logistics Center ground-breaking ceremony

Daikoku motor pool

Exterior of the Haga Logistics Center

Narashino motor pool

* AGV: Automatic Guided Vehicle

21

22

NISSIN
Integrated
Report2023

Strategy by Business Segment

Strategy by Business Segment/
Logistics Business

Chemical Products
Overview of the business, plans, targets, and status of progress

Our vision for the final year of NN7
In our chemicals and hazardous materials logistics business, we are striving to expand revenue by enhancing ourfacilities and equipment to meet customer demand and increasing our handling of hazardous materials andhigh-pressure gas. We will also strengthen our ISO tankcontainer transportation business and promote the global
expansion of supply chains to provide high-value-added
services to our customers.

Main products handled : Chemicals, hazardous materials,
high-pressure gas, etc.
Client industries : Petroleum manufacturers,
petrochemical manufacturers, etc.
Main facilities: Kanagawa Wharf Warehouse Office(hazardous materials and high-pressure
gas warehouse), Tsurumi Warehouse(hazardous materials warehouse),
Kawasaki Oil-Product Storage Office(chemical tanks and silos), etc.

Net sales of chemicals and hazardous materials logistics

40.0(Billions of yen)

28.0
21.0

Our story and aspiration to achieve our vision
In the chemicals business, we entered the hazardous materials warehousing business in earnest with the acquisition of Tsurumi Warehouse Co., Ltd. (Tsurumi-ku,
Yokohama City) as an affiliate in November 2009, under
the Third Medium-Term Business Plan. To expand thebusiness, we then dismantled the grain silos, fixed-temperature warehouse, packaging plant, and other structuresthat previously stood on company-owned land (approximately 22,000 m²) in Ebisu-cho, Kanagawa-ku, Yokohama
City, and constructed five new hazardous materials warehouses, two new high-pressure gas warehouses, and one
new general products warehouse under the Sixth Medium-Term Business Plan (FY2017 to FY2021). These began
operation on September 4, 2023. These new warehouses
mark the Company’s first entry into the high-pressure gas
warehousing business.
Under the Seventh Medium-Term Business Plan (FY2022
to FY2026), we are actively considering the construction of
new facilities to provide hazardous materials andhigh-pressure gas to advanced semiconductor plants tobe established in Japan. We will also take the challenge of
constructing new hazardous materials facilities in Japanand overseas in the future.
Meanwhile, in the forwarding business, we launched ourfull-scale worldwide ISO container transportation businessin November 2014 with the signing of an agreement withDen Hartogh Logistics, a leading global company in ISO
tank container transportation for liquids and gases, to become its general agent in Japan. Going forward, we aim towork with the Company’s overseas subsidiaries to construct supply chains covering the entire globe, aspiring toprovide logistics that will make our customers feel safe andsecure.
The working population is forecast to decline in the medium and long term, and we are faced with the challengeof preventing any decline in service quality amid labor
shortages. We will utilize DX to achieve personnel and labor savings through more efficient onsite work and office
operation, and do our utmost to ensure an even higher
level of service.

FY03/22(Result)

Warehouse

Kanagawa Wharf Warehouse Office

Tsurumi Warehouse

23

FY03/27(Plan)

Administration wing of the Kanagawa Wharf Warehouse Office
Capacity

Specifications

1) High-pressure
High-pressure gas
gas warehouse

Permitted products Total floor space

Approx.
1,000 m²−

Single-story
warehouse

2) High-pressure
High-pressure gas
gas warehouse

Approx.
450 m²−Single-story
warehouse

3) Hazardous materials Fire Service Act Category IV
warehouse
Class III and IV petroleums

Approx.
1,000 m²

Approx. Mobile rack
650 kL warehouse4) Hazardous materials Fire Service Act Category IV
warehouse
Class I to IV petroleums

Approx.
1,000 m²

Approx. Single-story
1,000 kL warehouse5) Hazardous materials Fire Service Act Category IV
warehouse
Class I to IV petroleums

Approx.
1,000 m²

Approx. Single-story
1,000 kL warehouse6) Hazardous materials Fire Service Act Category IV
warehouse
Class I to IV petroleums

Approx.
1,000 m²

Approx. Single-story
1,000 kL warehouse7) Hazardous materials Fire Service Act Category IV
warehouse
Class III and IV petroleums

Approx.
1,000 m²

Approx. Mobile rack
760 kL warehouse8) General products Flammable liquids,
warehouse
etc.

Approx.
2,000 m²−

9) Hazardous materials Class I to IV
sorting facility
petroleums

Approx.
760 m²−

Warehouse

Kawasaki Oil-Product Storage Office

FY03/23(Result)

Permitted products

Two-story

Total floor space

1) Indoor storage facility
Fire Service Act Category IV Class I
for hazardous materials to IV petroleums

Approx. 990 m²
× 3 buildings

Fire Service Act Category IV Class III
2) Indoor storage facility
for hazardous materials and IV petroleums

Approx. 990 m²
× 4 buildings3) Outdoor storage
facility for hazardous
materials

Fire Service Act Category IV Class III
and IV petroleums

Approx. 1,700 m²

4) General handlingfacilityFire Service Act Category IV Class III
and IV petroleums

Approx. 400 m²

5) General products
warehouse

General goods, toxic and deleterious
substances, designated flammable
goods

Approx. 990 m²

6) Logistics center

General goods, toxic and deleterious
substances, designated flammable
goods

Approx. 10,600 m²

7) Cargo handling shed

Fire Service Act Category IV Class I
to IV petroleums

Approx. 670 m²

24

NISSIN
Integrated
Report2023

Strategy by Business Segment

Strategy by Business Segment/
Logistics Business

Food Logistics
Our vision for the final year of NN7

Overview of the business, plans, targets, and status of progress

Our food logistics project group will utilize our strength inland-ocean-air transportation modes as a comprehensive
logistics company to establish vital networks for foods logistics. We will enhance our food logistics facilities in Japan and overseas, promoting business activities toconnect the current food logistics “points” to form “lines”
by the final year of the plan.
We will establish cold chains using low-temperaturefacilities, vital for food logistics, to meet customer needs
in each of our four key regions (the Americas, Europe,Asia, and China) and achieve seamless logistics for all
kinds of foods and ingredients to support our customers’
food logistics.

Our story and aspiration to achieve our vision
We will 1) expand our facilities, 2) develop our human resources, 3) coordinate with other divisions, and 4) actively
introduce DX to achieve our vision.
First, we will expand our facilities by enhancing ourfood logistics facilities (especially temperature-controlled
and fixed-temperature facilities) in Japan, which are
working close to capacity, accurately ascertain ourcustomers’ logistics demands, and contribute to SCM
optimization. We will also engage in the expansion ofoverseas food logistics facilities (through capital investment and M&A), looking beyond the Japanese market,
which is expected to shrink due to the low birth rate andaging population, to overseas markets where sustainablegrowth is anticipated into the future. Our efforts will begin
by focusing on the North American market, one of theCompany’s most vigorous food logistics markets, to establish cold chain logistics. We will use the further expansion of food logistics between Japan and the UnitedStates as an opportunity to expand into other key regions(Europe, Asia, and China).
Regarding the development of human resources, wewill implement regular personnel rotations to deploy specialist representatives (key persons), who are closely familiar with food logistics in Japan and overseas, in our target
countries. We will also develop personnel familiar with thesystems and rules involved in international logistics, suchas import and export controls in each country and thevarious EPAs* aimed at reducing customs duties, deepen
our specialist knowledge of food logistics, and build sustainable relationships of trust by providing added value tocustomers. The absorption-type merger (in 2024) of Nissin Aircargo Co., Ltd., a wholly-owned subsidiary, will provide an opportunity for us to share know-how on foodimport and export by air, promoting the development of
human resources capable of proposing a full range oftransport services.

25

Our efforts to coordinate with other divisions include
cooperation with the machinery transportation division. We
aim to capture orders from food manufacturers with overseas
production bases for multimodal transportation, from exporting food manufacturing equipment to on-site installation of it.
We will continue to assist food manufacturers in their overseas expansion even after the equipment begins operation,by engaging in the transportation of food ingredients.
Lastly, in terms of measures to actively introduce DX, wewill introduce picking, palletizing, and other robots, andexpand our installation of truck booking systems toaddress the Year 2024 Problem. In addition, we will develop services that use electronic tags and IoT devices toachieve the real-time measurement of variables for agricultural products such as location data, temperature andhumidity, and any impact during transportation, aiming toincrease our handling of fresh foods.
We will leverage our extensive logistics services andglobal network to achieve our net sales target of 20.0 billion
yen in the food logistics business by FY2026.

Main products handled : Livestock-based foods, dairy
products, seafood, fresh foods,
beverages, various processed foods,
etc.
Client industries : Food manufacturers, food trading
companies, etc.
Main facilities: (Kanto) Heiwajima Refrigerated
Logistics Center, Oi Warehouse,
Daikoku Refrigerated Warehouse(Kansai) Maya Refrigerated Center(A, B, and C Wings), Nanko
Warehouse(Overseas)
Singapore: TUAS Warehouse,
USA: LA Warehouse,
Seattle Warehouse, etc.
Main topics: Expansion of certified
halal-compliant warehouses(Singapore, Indonesia)

Net sales of food logistics

20.0(Billions of yen)

16.5
14.0

FY03/22(Result)

FY03/23(Result)

Heiwajima Refrigerated Logistics Center

Interior of the Heiwajima Refrigerated Logistics Center

Maya Refrigerated Center

Interior of the Maya Refrigerated Center

FY03/27(Plan)* EPA: Economic Partnership Agreement

26

NISSIN
Integrated
Report2023

Strategy by Business Segment

Strategy by Business Segment/
Logistics Business

DX andNew Businesses
Our vision for the final year of NN7
urgent task. “New business development” is also crucial
for the Company’s future growth. Under our DX and new
businesses project, we are undertaking measures aimed
at achieving the four targets we have set as our vision for
FY2026. We will help our customers solve their issues
through the value creation generated by our new logistics
services.

We have established “take on challenges in new businessareas” as part of our basic policy under the Seventh Medium-Term Business Plan, and we are striving to create new
businesses as a companywide project.
The international logistics environment makes responding to the “advance of digitalization,” “diversification of logistics needs,” and “digitization of logistics operations” an

1. Advance of digitalization• Transform the freight forwarding business model andbuild a new revenue model compatible with the digitalsociety
2. Diversification of logistics needs• Develop logistics services that promote the optimizationof supply chains to advance the logistics business3. Digitization of logistics operations• Improve work efficiency and reduce operation costs for
us and our customers through DX
4. New business development• Create new services unconstrained by the Company’s
existing logistics services framework

Our story and aspiration to achieve our vision
Our logistics DX initiatives
2. Diversification of logistics
needs

3. Digitization of logistics
operations

MeasureMeasure Develop individual products
DX of general logistics services
12
using advanced technology

Measure Rationalization of
3
logistics work through DX

Current issues“Pillars” of
our DX measures

1. Advance of digitalization

Expand services to transform thefreight forwarding business model
Forward ONE digital forwarding
service• TradeWaltz international trade
platform

HACO Lab. logistics container
solutions• Real-time tracing• Onsite visualization apps•

Transformations
generated

Vision for five years
in the future

Foundations
for achieving DX

27

Promote the optimization of supply
chains through the advance oflogistics services•(Construction of a new revenue model)(Provision of innovative logistics
services)

Promote rationalization and improve
working environments through speedy
and efficient business performance
BPO utilization, SFA, and name cardmanagement tools• Utilization of workflow DX and Cyber
Port•(Reduction in operation costs for us
and our customers)

We aim to enhance corporate value using advanced digital technologies
to transform our freight forwarding business model and business operations.
We will contribute to boosting the value of our customers
by providing new logistics services compatible with the digital society.

Co-creation withpartner enterprises

Organize a system of
new business development

Development of
DX personnel

DX initiatives forcore system of logistics

1. Advance of digitalization• Developing our digital forwarding service (sales)
On March 27, 2023, we launched the completely updated Forward ONE digital forwarding service.
By enabling the integration of operations between customers and the freight forwarder, such as the calculationof international transportation charges, the confirmationof the vessel schedule and shipping space, booking requests, the exchange of documentation, the progress
management of loading work, and vessel tracking
through an online website, Forward ONE contributes tomore efficient operations and less workload for all those
involved.
The features of this first upgraded version include theability to search the schedules of ocean and air transportation provided by the Company, the instantaneous calculation of estimated costs, including overseas costs,
and the ability to check shipping space and submit
booking requests. We are continuing to develop the service beyond this first release, and in FY2023, we plan toprogressively introduce new features such as the progress management of loading work, the real-time tracking
of vessel movements, a cargo insurance function, and afunction enabling users to check estimated CO² emissions. We will continue providing highly convenient services for our customers and promote more efficientinternational trade, export, and import arrangements together with our partner companies.
• Participating in a trade digitalization platform (sales)
In August 2021, we invested in TradeWaltz Inc., which
provides platform services aimed at completely digitizing
trade operations. We are promoting the digitization of
trading operations as an international logistics company.
2. Diversification of logistics needs• Providing a returnable logistics container management
service (sales, onsite)
We are expanding our HACO Lab. returnable packaging
container management service. HACO Lab. is a logistics
solution that achieves a reduction in logistics costs forcustomers, a reduction in environmental impact, andgreater operational efficiency. We provide a one-stop service combining the development and provision of returnable containers, system administration, and international
operation.
• Visualizing transportation status using the IoT (sales)
We are engaged in an initiative using IoT communicationsand various sensors to enable the visualization of transportation status and location data for global cargo. The
visualization of transportation status will enhance transportation quality for our customers.

3. Digitization of logistics operations• Participating in Cyber Port (onsite)
We participate in the initiative promoted by the Ministry ofLand, Infrastructure, Transport and Tourism (MILT) to digitize port logistics procedures. We will contribute toboosting productivity across all facets of port logistics.
• Promoting workflow DX (administration)
We will promote more efficient information-sharing anddecision-making by introducing workflows using systems
and abolishing paper-based business documents andseal-based approval procedures.
4. New business development
In FY2022, we established the New Business Development Office as a specialist internal section with the aim ofcreating new services unconstrained by the Company’s
existing logistics services framework. This new section is
engaged in initiatives to develop human resources, foster
the internal environment, and research, discover, andcommercialize new businesses.
• Holding an innovation program
We held an innovation program as a forum to learn about
new business development, aiming to generate a growth
cycle where we develop personnel able to create new
businesses, these personnel go on to create businesses,
and develop other personnel through the process ofbusiness creation. The program was attended by 60 or
more participants, from younger to mid-level employees
and management, and they learned how to generate
new business ideas and ideation techniques.
• The new business proposal program “Nissin gets thepoint”As one of our initiatives to promote the creation of new
businesses, we launched the new business proposal
program (project) for internal submissions, “Nissin getsthe point,” in FY2023. Under this program, we call for thesubmission of ideas for new businesses from employees.
The Company supports all aspects of employees’ endeavors, such as inputting specialist knowledge, refining
ideas, mentoring, producing prototypes, and establishingframeworks at the time of the business launch.
• Cooperation with external groups
We also promote initiatives for new business creation
through open innovation in cooperation with local governments, public agencies, the Yokohama Future Organization, and other external groups, as well as startup
companies.
It is vital that all our employees engage in these measures for new business creation with a sense of ownership, a medium- to long-term perspective, and theleadership of the Company’s management team. We will
also pursue projects targeting the “establishment of new,next-generation businesses,” aiming to develop humanresources, foster an internal environment that facilitates
new business endeavors, and spread a corporate culturethat is receptive to failure and encourages challenges.

28

NISSIN

Strategy by Business Segment

Integrated
Report2023

Travel Service &Real Estate BusinessTravel Service Business
The travel service business is comprised of four consoli-

Net sales

Operating income

dated domestic subsidiaries including Nissin Travel Service

FY03/2020

52.4 billion yen

0.1 billion yen

Co., Ltd. and overseas subsidiaries and affiliates, operat-

FY03/2021

4.1 billion yen-2.3 billion yen

FY03/2022

2.5 billion yen-1.0 billion yen

FY03/2023

5.2 billion yen-0.014 billion yen

ing corporate/retail/wholesale businesses in Japan andabroad.

Corporate business

Retail business

The retail business mainly provide various specialized
procedures related to shorts/entertainment long-term
studies abroad and homestay programs for educational
institutions nationwide as well as arranging various national and international events for sports-related associations. We are expanding our business in a wide range ofother areas, including arranging for overseas businessinspection tours for corporate clients, various groups related to rewards, and commercial groups visiting Japan.

Wholesale business

The business maintains a unique purchasing power in all areas of the world, andoperates the distribution of international airline tickets and sale of sightseeing
package products to travel agencies nationwide. In the tourism field, the businessis expanding by developing learning and experience-based themed products andcollaborating with related subsidiaries to distribute products to all types of customers.

We maintain one of the largest market shares in the handling of business travel
through transactions with corporate clients nationwide. In order to meet the trust byproviding high-quality services, we have sales and on-site offices in Japan and overseas, centered around the Communication Center located within the head office.

Main services for corporate clients●

Provision of contract-based overseas business travel arrangement services●

Support for obtaining short-term work and work visas●

Consultations about cost reductions, risk management, etc.

●

Consignment of various types of travel-related procedures

Assisting in “people- and earth-friendly travels”
Through business operations based on our corporate slogan, we aim to contribute to society
through sound corporate activities while giving due consideration to the global environment.
We always strive to offer the highest-quality service, providing safety, security, andinspiration to our customers, developing our business towards sustainable growth and social development.

In order to offer support after departing from Japan
we also place staff specifically for corporate clientsat our overseas subsidiaries and affiliates, providing
services such as responses to emergency situations,arranging post-assignment business trips and temporary returns to Japan, and travel procedures related to collaborative projects with Japan.

Real Estate Business
The Company and our Group companies are involved in

We will always be there for our customers, focusing on professional services by people and strengthen future
investment in IT to realize a “Big Drive & Small Company Feel.”29

Net sales

Operating income

leasing land, buildings, and other real estate in the Keihin

FY03/2020

1.4 billion yen

0.8 billion yen

area and elsewhere, effectively utilizing our assets.

FY03/2021

1.2 billion yen

0.7 billion yen

FY03/2022

1.3 billion yen

0.7 billion yen

FY03/2023

1.2 billion yen

0.8 billion yen

30

NISSIN
Integrated
Report2023

ESG Initiatives

ESG Initiatives

Sustainability Overview
Under the basic sustainability policy based on our corporate philosophy, Nissin has established the four
sustainability themes of “Earth, Quality, People, and Trust.” The Nissin Group will contribute to sustainablesocial development on a global scale through our business activities.

Based on our Group’s Purpose of “Touch the hearts of all, delivering global happiness and peace” and our basic sustainability

System to promote sustainability
Basic Sustainability Policy“Improving day by day”,

The Sustainability Committee deliberates on major
issues such as identifying and reviewing materiality,
and regularly reports to and makes recommendations
for both the Executive Committee and Board of
Directors.

the Nissin Group’s aim is to

Board of Directors“contribute to the sustainable

ReportIn our spirit of“provide high-quality services torealize a prosperous society”, andSupervision

Recommendation

Step1● Establish a philosophical system that is necessary to consider materiality, such as

Establishing a philosophical system
as a basis for materiality

Purpose, basic sustainability policy, defining stakeholders, etc.

● Identify initiatives for stakeholders from a risk and opportunity standpoint while refer-

Step2

encing international frameworks such as SASB Standards, IIRC and GRI.

● Derive potential materiality by comparing to the sustainability philosophical system.
● Create materiality proposals by grouping them into the four sustainability themes ofEarth, Quality, People, and Trust.

● Narrow down materiality proposals based on degree of impact on stakeholders and

Step3

ESG office

expectations of our stakeholders”
Promotionteam E(Environment)

corporate value by resolving the identified materiality through the Group’s business activities.

Consultation

Sustainability Committee“grow as a group in line with thepolicy, we identified four materiality related to sustainability. We will strive to realize a sustainable society and enhance our

Derive potential materiality

Executive Committee

development of society”,

Materiality identification process

Promotionteam S(Social)Promotionteam G(Governance)

the Group.

Narrowing down materiality
proposals● A working team comprised of external experts and relevant internal departments veri-fies and coordinates the operational validity of materiality proposals, including monitoring and effectiveness.

● Confirm consistency between the business and growth strategies of the Seventh Me-

dium-Term Business Plan and “promoting ESG management,” as well as the materiality’s positioning as an important issue in management strategy.
● Formally identified as a materiality of the Nissin Group after assessment and verificationby the Sustainability Committee as well as discussion and approval by the Executive
Committee and Board of Directors.

Step4

Identifying materiality

Major issues related to sustainability (Materiality)
Theme(Materiality)

Key initiatives● Environmentally friendly logistics (proposing the use

Natural capital

Earth

Realize a decarbonized society and contribute to an
environmentally conscious, circulating societyof returnable containers and logistics using rail andcoastal vessels)● Reduce greenhouse gas emissions

Quality

Implement cutting-edge technology and provide
high-quality service● Respond to extreme weather andnatural disasters● Respond to environmental

regulations● Switch to renewable energy and implement energy-● Cooperation in reforestation and● Promote logistics innovation and DX using cutting-● Build partnerships with business● Provide safe, attentive, high-quality service● Eliminate illegal labor in the supply

saving equipment

Manufactured/
intellectual capital

SDGsedge technology● Expand dialogue and information distributionconservation activities

partners and customers
chain● Capacity building through human resource

Personnal/
intellectual capital

Peopledevelopment and acquisition of specialized skills

Respect all people and build an environment whereindividuals can bring out their best abilities● Optimal placement of human resources● Respect and promote diversity● Create a comfortable workplace for women and● Improve employee engagement● Create a safe and comfortableworking environment● Promote health management

promote them to management positions● Develop a system to promote sustainability

Social andrelationship capital

Trust

Create a company that is fair, valuable, and hopeful to all
stakeholders● Reinforce corporate governance and risk

management● Strengthening corporate governance and risk

management● Increase stakeholder engagement● Strengthen BCP efforts● Thorough information management● Ensure compliance

31

32

NISSIN

ESG Initiatives

Integrated
Report2023

Environment
We are promoting efforts to reduce our environmental impact, including
reducing our CO² and other greenhouse gases (GHG) emissions, to realize adecarbonized and circulating society.
I. Approach to environmental management
1) Environmental policy (philosophy and basic policy)
Environmental philosophy
Nissin Corporation and its Group companies aim to be logistics enterprises trusted by customers all over the world. We
harmonize the economy and the environment as a key pillar of management and we will strive to curb environmental
impact based on the spirit of “improving day by day,” aiming to contribute to the sustainable development of society asa good corporate citizen.

Basic policy
1, We shall establish environmental goals for the conservation of the global environment and prevention ofpollution, and strive to continuously improve them through periodical reviews.
2, We shall comply with all environmental laws and regulations, accords and terms of agreements relating tobusiness activities.
3, We shall make active efforts to conserve resources and energy and reduce waste to minimize the burden
on the environment.
4, We shall work together with our clients and partner companies to take into account the prevention of
global warming and controlling of air pollutants and provide environmentally friendly logistics services froma life cycle perspective.
5, We shall thoroughly inform all employees and affiliated parties and disclose to the general public thecontents of this Environmental Policy.

2) Green Management Initiatives

2

1
Modal Shift

Recognizing that environmental conservation is a corporate social responsibility, Nissin
carries out environmental measures independently and systematically, and strives toimprove management in that regard.
Nissin believes it is its social responsibility as a logistics services provider to ensure theblessings of the earth are passed on to the next generation, and provide efficient andenvironmentally friendly logistics services.

Improving Logistics
Efficiency

Nissin’s GreenManagement

3

4

Facilities andEquipment

Environmental
Conservation Efforts

II. Initiatives to reduce GHG emissions from our businesses

331) North-South railway transportation
service in Vietnam

2) Introduction of Electric trailers
in Thailand

NR GREENLINES LOGISTICS, part of the Nissin Group,
provides a railway transport service along the North-Southline that links Hanoi and Ho Chi Minh City via Da Nang.
Compared to truck transportation, this service enables areduction in CO² emissions of approximately 60%, and isoffered to customers as an environmentally friendly
logistics service using block trains that consist of in-housedeveloped specialized car wagons and general containers.

In June 2023, Siam Nistrans Co., Ltd., a consolidated
subsidiary of the Nissin Group, introduced electric trailers
for major construction machinery manufacturers. The
trailers will be used for the delivery of completed machines.
In addition to reducing environmental impact, with no GHG
or pollutant emissions, electric trailers are also highly
effective in solving noise issues and reducing driver burden
due to their low-noise, low-vibration motors. I-RECs(internationally recognized renewable energy certificates)
have also beenobtained for thesetrailers, whichhave achieved net
z e ro e m i s s i o n s
associated withcharging andtransportation.

3) Warehouses with reduced
environmental impact
We have installed a wide range of equipment and systems
at our facilities to reduce GHG emissions and environmental impact. The Yokohama Heavy Cargo Packing Centerhas achieved rank A of the Comprehensive Assessment
System for Built Environment Efficiency (CASBEE Yokohama) as a high environmental performance building withmaterials of low environmental impact, LED lighting, greenery on its premises, and an absence of waste heat-emitting equipment. The Maya West Refrigerated Warehouseand Heiwajima Refrigerated Logistics Center, which havebeen certified by the Comprehensive Logistics Efficiency
Act, have implemented cloud-based truck reservation systems, improving the efficiency of pickup and delivery by reducing waiting times as well as contributing to the
reduction of GHG emissions.
The Heiwajima Refrigerated Logistics Center and Maya
West Refrigerated
Warehouse havealso reduced GHG
emissions (Scope 1)
by switching from
CFCs to natural refrigerants.
Yokohama Heavy Cargo Packing Center4) Railway transportation service in Indonesia

Facilities using renewable energy electricity
Company
nameFacility nameNissin9 facilities in the
Corporation Kansai area
NissinCorporation Tokyo OfficeHeiwajima
NissinRefrigerated
Corporation Logistics Center

Forecast annual Forecast annual
electricity
in CO²
consumption reduction(1,000 kwh) emissions (tons)

Location

Introduction

Osaka and
Hyogo

Jul. 2021

6,200

2,000

Chiyoda-ku,
Tokyo

Nov. 2022

600

300

Ota-ku,Tokyo

Jan. 2023

2,000

1,000

2) Install solar panels
We installed solar panels at the Sakai Logistics Center in
2013, generating approximately 1.3 million kwh of renewable energy electricity per year. We contribute to reducing
GHG emissions by selling the electric power generated
through the feed-in tariff (FIT) program.
We have also installed solar panels at Kanagawa Wharf
Warehouse, a chemicals (hazardous materials andhigh-pressure gas) warehouse opened in September 2023,
and expect to generate approximately 40,000 kwh of electricity per year. We use the renewable energy electricity
generated here to
power our facilityin Tokyo, contributing to the reductionof GHG emissions(Scope 2).
Solar panels at the Sakai Logistics Center

PT. NISSIN JAYA INDONESIA, a consolidated subsidiary of
the Nissin Group, has provided a railway transportation
service between Jakarta and Surabaya since 2014. This
service provides a combination of railway and truck transportation for round-trip ocean containers. It not only reduces GHG emissions compared to entirely truck-dependenttransportation but also contributes to more stable leadtimes and less cargo damage. Deliveries to all areas ofIndonesia began in
2019.

III. Initiatives for the introduction ofrenewable energy andenergy-saving
1) Renewable energy
We are progressively switching the electric power contracts at our warehouses, terminals, offices, and other facilities, including our nine facilities in the Kansai area, toelectric power sourced from renewable energy (renewableenergy electricity). We have already entered into renewableenergy electricity contracts at 11 facilities, contributing to a
reduction in GHG emissions (Scope 2) of approximately
3,000 t-CO² or more per year.

Facilities with solar panels
Company
nameFacility nameNissinSakai Logistics
Corporation Center

Location

Installation

Sakai City,
Mar. 2013
Osaka
Yokohama
NissinKanagawa Wharf City,
Sep. 2023
Corporation Warehouse
Kanagawa

Forecast annual Forecast annual
electricity
generation reduction in CO²(1,000 kwh) emissions (tons)

1,300

400

40

20

3) S Class rating for eight consecutive
years
The Company (non-consolidated) is designated as a Specified Business Operator under the Act on Rationalizing Energy Use and measures its monthly energy consumption
at each of its locations to annually report to the Ministry of
Economy, Trade and Industry. We have also set a target
for more efficient energy consumption of “reducing fiveyear average emission intensity by 1% or more per year,”
and we have acquired the S-class rating, given to companies that achieve this target, for eight consecutive years(FY2021 emissions results).

Web

For more detailed information on our environmental initiatives, please see the URL below.
https://www.nissin-tw.com/company/csr/
environment.html

34

NISSIN

ESG Initiatives

Integrated
Report2023

Environment
IV. Responding to climate change
Endorsement of the TCFD recommendations and disclosure based on the recommendations
We have identified “realizing a decarbonized society andcontributing to an environmentally conscious, circulating society” as one of the Group’s important issues (materiality) related to sustainability, and we perceive responding to climatechange as an especially important management issue.
In June 2023, we declared our support for the Task
Force on Climate-Related Financial Disclosures (TCFD)
recommendations. We disclose climate-related information

across four areas based on the framework set forth in the
TCFD recommendations: governance, strategy, risk management, and metrics and targets.
TCFD: An international framework promoting the disclosure by companies andother organizations of specific risks, opportunities, and initiatives related to climate change.

Governance
We have established the Sustainability Committee, chairedby the President and Representative Director, to respondsystematically to climate change. As an advisory body to
the Executive Committee, the Sustainability Committee
identifies, evaluates, and manages risks and opportunities
related to climate change. It also sets targets, plans andformulates measures, and manages progress on initiatives
such as the reduction of GHG emissions, reporting its recommendations back to the Executive Committee. These
results are then reported to the Board of Directors, which
passes resolutions on important matters. In this way, aneffective governance framework is in place.

Strategies
We have identified risks and opportunities, considered response measures, and analyzed the financial impact as of FY2030
based on two climate change scenarios, representing temperate increases of 1.5°C and 4°C, respectively, above pre-industrial levels.
Category Subcategory

Identified risks

SignificanceTimeframe
1.5°C 4°C

ImpactCategory Subcategory

Identified risks

SignificanceTimeframe
1.5°C 4°C

Timeframes: Short: FY2026, the final year of the 7th Medium-Term Business Plan
Medium: FY2030
Long: FY2050

Response measures

Upgrade to low-emissions vehicles• Upgrade to natural refrigerants in
refrigeration equipment• Promote the introduction of renewable energy• Systematically upgrade vehicles
by utilizing subsidies• Operate our vehicles more efficiently by promoting joint transportationand modal shift

ImpactResponse measuresin fuel costs due to • Introduce EVs, FCVs, and other
Reduce fuel costs by im- High Low Medium Reduction
greater fuel efficiency, with the in- low-emission vehicles and promote
proving vehicle fuel efficiency
troduction of EVs and FCVs
eco-driving
Greater energy efficiency and the introduc- • Expand modal shift, joint transportation of DX, associated with the expansion tion and delivery, uncrewed operation,
M o re e ff i c i e n t l o g i s t i c sthrough the introduction of Medium Low Medium of low-emissions logistics services, will and other efficient transportation
contribute to reducing costs by improving modes and introduce new transportaResource new transportation modes
work efficiency and reducing the ownership tion modes such as drones
efficiency
of vehicles and other equipment.
Greater energy efficiency due to the in- • Expand services enabling the visualization of
troduction of DX and the IoT, as well as CO² emissions at the transportation stage
Higher sales with the provision
expansion of low-emissions logistics • Optimize inventory management usof new services utilizing DX High Low Medium theservices, lead to an increase in sales due ing electronic tags, etc.
and IoT
to the patronage of highly environmen- • Achieve more efficient warehouse operatally conscious customers
tions through the introduction of robots, etc.
•
to transportation modes
Increase in sales of environmen- Transition
with low environmental impact
Opportunities
Customer acquisition andtally friendly services using low- • Selecttransportation modes that use fuels
Energy higher sales due to the introer-emissions transportation modes
low environmental impact, such as SAF
sources duction of environmentally High Low Medium and fuels due to the patronage of • withnew businesses such as the generation
friendly services
highly environmentally conscious Enterand sale of renewable energy electricity
customers• Enter the EV station business• Provide transportation services forparts and components
Increase in revenue due toIncrease in sales due to the launch • EV-related
Import and store completed EVs
expansion
into
newbusiandexpansionof
EVandhydro•
Markets nesses such as EVs and High Low Long gen-related businesses and the Enter the domestic transportationand importation businesses for alterhydrogen fueldevelopment of new markets
native fuels such as hydrogen andammonia
Increase in sales due to greater• Strengthen operational coordination
Increase
in
sales
from
strengthencustomer trust resulting from themeasures and coordination to BCPs with other companies for diResilience maintenance of logistics functions Low Medium Medium ing
minimize damage from disasters saster response
and the transportation of supplies• Decentralize logistics facilities
and capturing customer trustin the event of a disaster
Financial significance: Financial impact evaluated as high, medium, or low basedon qualitative and quantitative factors
Note: Evaluated for the activities of Nissin Corporation on a non-consolidated basis.
A scenario of less than 2°C has also been used in parts.

•

Increase in costs payable due toIncrease in costs due to the High Medium Medium the introduction of carbon taxes on
introduction of carbon taxes
GHG emissions

Transition
risks

Policy Increase in vehicle purchase
Increase in purchase costs due toand costs due to the transition to High Low Medium the need to upgrade to expensive
law low-carbon vehicles
low-carbon vehicles such as EVs
and FCVs.

Increase in capital investment
Increase in the costs of upgrading
costs due to stricter regulation
refrigeration equipment from CFC • Systematically upgrade equipment
MediumLow
Mediumof refrigerants such as CFC
substitutes to natural refrigerants by utilizing subsidies
substitutes
due to stricter regulation
Loss of customers and decline insales due to insufficiently addressing • Expand environmentally friendly
Decline in sales due to insuffiincrease in demand for low-carTechnical ciently addressing customers High Low Medium thesuch as the visualization
bon transportation resulting from ris- services
reputation e m p h a s i z i n g l o w - c a r b o nof CO ² emissions volume, joint
ing
environmental
consciousness
andtransportationstronger GHG emissions reduction transportation and modal shift
initiatives among customers
Repair and compensation costs asso- • Decentralize facilities
Increase in costs from damage
ciated with damage to warehouses and • Expand the use of standby generato facilities and compensation
for damaged cargo due to Medium High Short other facilities and consigned cargo re- tors to prevent any pause in the opersulting from an increase in the frequency ation of refrigeration equipment
more intense wind and floodof wind and flood damage due to rising • Secure alternative transportation
damagetemperatures
routes
Acute
Repair costs due to damage to • Strengthen BCPs at facilities in
Increase in repair costs at
warehouses, office buildings, andPhysicallogistics facilities in coastal Medium High Medium equipment, with an increase in the coastal areas where storm surgerisks
is anticipatedareas due to rising sea levels
probability of flooding from storm surg- • flooding
Decentralize facilities
es associated with rising sea levels• Achieve greater efficiency and
Decline in work efficiency due
Decline in the work efficiency and labour-saving in warehouse opto rising temperatures and inof employees due to ris- erations through working robots,
Chronic crease in the cost of counter- Low High Medium productivity
ing temperatures and a correspond- electronic tags, and other DX
measures (air conditioning,ing increase in air conditioning costs • Efficient goods in-out operation at
etc.)
temperature-controlled facilities

35

Risk Management
We have established the Risk Management Committee,
chaired by an executive officer with a special title, basedon the risk management regulations, to identify and appropriately respond, from a companywide perspective, torisks with a material impact on management. For climatechange-related risks in particular, the Risk Management
Committee engages in evaluation and monitoring from a

Metrics and Targets
Metric:We use greenhouse gas (GHG) emissions (Scope 1, 2)
as our metric to measure our response to climatechange risks and opportunities and their effect.
Target:We have set a target* of 42% reduction in GHG emissions by FY2030 compared to FY2020. We will strive to
reduce emissions even further, aiming to achieve carbon
neutrality in FY2050.
Note: The above targets are for Nissin Corporation on a non-consolidated basis.

companywide perspective, in addition to evaluation by the
Sustainability Committee.
Risks identified as significant by the Risk Management
Committee are recognized as significant risks for theGroup after debate and approval by the Executive Committee and the Board of Directors, and response measures
are considered and implemented for them.

GHG emissions reduction target (Scope 1 and 2)
GHG emissions

Cumulative reduction (compared to FY2020)(t-CO2)20,000(%)
20

42% reduction
15,00014,634compared to
FY202015,1140-20

12,635

Achieve
net zero

10,000

8,488

-40

-60
5,000
-80

Web

For more details on the information disclosed, please see our website.

https://www.nissin-tw.com/company/csr/pdf/TCFD_information.pdf (Japanese only)

00
FY2020ResultFY2021ResultFY2022
Result

FY2030Target-100

FY2050TargetNote: The above results and reduction targets are for Scope1 and 2 emissions by
Nissin Corporation on a non-consolidated basis. We plan to discloseemissions and reduction targets for the consolidated Group in FY2024.

36

NISSIN

ESG Initiatives

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Report2023

Society
Internal training program*

Securing diverse human resources: We respect diversity
and endeavor to ensure a diverse workforce within the
Company and address the increasing mobility of theworking population by continually recruiting diverse human resources irrespective of gender, nationality, or age.

3) Promoting women’s empowerment
We support the lifelong careers of working women so that
all our female employees can be empowered to make themost of their abilities.

Provision of paid leave before and after giving birth•

Expansion of the childcare leave program•

Expansion of the shortened working-hour program
Expansion of the reemployment system for employees
who have resigned due to marriage, childbirth, childcare
duties, etc.

Implementation of training in women’s careerdevelopment support, diversity management, etc.
Active promotion of female employees to overseas
postings and traineeships
Improving percentage of female managers(FY2024 target: 10% or more)

Main internal training programs

Note: We were awarded the highest rank (threestars) of the “Eruboshi” certification (forcompanies promoting women’s empowerment) in January 2022 as an excellent
company for our initiatives based on the
Act on Promotion of Women’s Active
Participation and Advancement in the
Workplace.

•

•

•

Expansion of level-specific training (training for 3rd-year
employees, training for promoted employees, training for
new section managers, etc.)
Internal internship program to enable employees to learn
about business operations at other departments and locations
Job rotation program centering on younger employees toprovide opportunities for them to grow
Overseas trainee system to help employees develop international perceptions and perspectives early on

Role awarenessTraining for promoted employees

Career design

Training for
promoted
employees

Training for 3rdyear employees
Women’s careerdevelopment support
training course

Internal internship program

Enhancement of various internal programs••

Follow-up training

Practical basics

International trade
training course

International Multimodal Transport Specialists
courseOn-the-job (OJT)
training

Training for OJT leaders
Practical training

Customs clearance training (for employees newly assigned to customs clearance-related operation and new employees)

IT-related

Establishment of an internal whistleblowing system toprevent misconduct and harassment

2. Human resources development policy
We will continue to strive to expand our investment in internal training to enable employees to acquire specialist
skills and provide them with opportunities to reskill so that
all employees can continue to constantly pursue andachieve their own goals.

•

37

•

Management

Training for newpresidents of domestic
affiliates

Introduction of flextime, staggered working hours, andtelecommuting
Establishment of childcare and nursing leave regulations
and a system of reduced working hours, preparation of
the Compliance Manual, and implementation of anti-harassment training

LeaderTraining for new section
managers

IT training course

Global talentMid-career recruitment: We respect diversity and endeavor to ensure a diverse workforce by continually recruiting
human resources with different experience and technicalexpertise. We believe that the immediate contribution to
our capabilities by mid-career recruits leads to the revitalization of our business activities and we will continue
to actively engage in mid-career recruitment.

•

Mid-level

Entry-level training

Languages

New graduate recruitment: We have defined the humanresources sought by the Company as “a person withcreativity, enterprise, a spirit of cooperation, and highaspirations who can undertake new challenges,” basedon the slogan “BE A CHALLENGER.” We will continue
to strive to maintain sustainable business activities bycontinuing to recruit a certain number of new graduates
each year.

•

Practical operations-related

1. Human resources recruitment policy

Main programs aimed at the improvement of workplaceenvironments

Young

IT literacy
development
program

Overseas trainee system
Pre-overseas assignment training (for employees assigned overseas)

GlobalWe have established the following policies on the recruitment and development of human resources to recruit anddevelop employees capable of embodying the Group’s basic business policy, including facets such as self-innovation, the realization of an affluent society, and meeting the
expectations of all our stakeholders.

We will continue to engage in improving workplace environments so that all employees of the Nissin Group cancontinue to work in safety and security with a sense of fulfillment.

Entry-level

Diversity and inclusion

1) Policies on the recruitment anddevelopment of human resources2) Policy on the improvement of workplace environments

Skill

Personal
development andskill enhancement

I. Human capital management

Category

Level-specific

We have established and expanded a system that enables us to provide
high-quality services by creating a comfortable working environment to develop human resources for a wide range of fields and to respect diversity.

Various language trainings
TOEIC exam

Anti-harassment training
Female manager development course
Male childcare leave promotion course
Course to promote recruitment of persons with disabilities
LGBTQ+ understanding promotion seminar

Various internal e-learning courses
Various remote learning courses*Including training courses currently offered or planned.

38

NISSIN

ESG Initiatives

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Society
II. Diversity

IV. Quality

1) Balancing childcare and work

1) AEO certification

We have several initiatives to make balancing childcare
and work possible.

Under the Authorized Economic Operator (AEO) program,
government agencies and customs authorities in eachcountry around the world approve and certify business operators that have established cargo security management
and compliance systems. The program is aimed at achieving smoother international trade and improving safety.
We will strive to provide high-quality logistics services
related to customs clearance and all aspects of import andexport operations based on this certification.

•
•

•

•

Childcare leave available until the child reaches one year of age
Reduced working hours, staggered working hours, flextime, etc. for childcare purposes
Re-employment system for employees who resigned due
to childcare or similar reasons
Initiatives for male employees to take childcare leave (target: atleast three male employees taking childcare leave by FY2024)Web

https://ryouritsu.mhlw.go.jp/hiroba/
planfile/202202211313175651825_1.pdf

Note: The Nissin Group has acquired AEO certification at nine companies
overseas and four companies in Japan.

Note: We acquired the “Kurumin” certification(which recognizes companies that support childcare) in February 2022 as an
excellent company for our initiatives
based on the Act on Advancement of
Measures to Support Raising
Next-Generation Children.

2) Hiring seniors and people
with disabilities
We have introduced a contract re-employment system toeffectively utilize the specialized knowledge, abilities andknow-how developed by retirees over their long careers.
We promote the transmission of these qualities to younger
employees. In addition, we are also hiring people with disabilities and have a diverse range of human resources
working in various fields.

III. Human rights
1) Disclosure of statement on the UK
Modern Slavery Act
Every year, the Nissin Group publishes a statement about
the United Kingdom’s Modern Slavery Act 2015. We
stipulate the elimination of slave labor, child labor, humantrafficking and other forms of illegal labor within our supply
chain in our Charter of Corporate Behavior and share it
throughout the Group and request business partners,
suppliers and other related parties to take appropriate
actions. We have established a whistleblowing hotline
where employees can report or receive advice in the eventthat they discover a compliance violation or possible
violations such as discrimination in business activities orharassment as part of a whistleblowing system, aiming toraise awareness of human rights through early detection,
resolution, and correction of issues.
39

V. Social contribution1) Support for the Turkey–Syria earthquake recovery
We have donated 5 million yen through the Japanese Red
Cross Society to aid the people who suffered massive
damage from the February 2023 earthquake centered near
the Turkey–Syria border and assist in the recovery of theaffected area.

2) Sports

Web

Yokohama Symphony Orchestra: We support the activitiesof the Yokohama Symphony Orchestra to contribute tofostering musical culture and developing performers in
our local Yokohama area. The Yokohama Symphony Orchestra is an amateur orchestra established in 1932. Its
achievements include the receipt of the Yokohama Culture Award and the Kanagawa Culture Award, and it isvigorously engaged in music promotion activities, with a
total of over 700 regular performances so far.
Web

Yokohama Marathon: We cosponsored the 2022 Yokohama Marathon as a Yokohama supporter, providing
space for car parks, with the aim of contributing to society and the regional community by promoting sport in
the local Yokohama area. Some of the Company’s employees also participated as runners.
Baseball: In January 2023, we signed an official sponsorship agreement with Kanagawa Future Dreams (Kanagawa Prefecture Citizens Baseball Association). Throughour support for the Kanagawa Future Dreams, we will
support the endeavors of children and players as they
strive to achieve their dreams for the future as a company with its roots in Kanagawa.

https://www.symphony.or.jp/index.html

https://yokokyo.net/

4) Forest conservation
Yadoriki water source forest: We joined the Reforestation
Partnership program, a forest creation project in
Kanagawa Prefecture, in January 2019. We are working
together with the prefectural government to enhancewater source forests and contribute to the local community from the perspective of environmental conservationand preserving biodiversity. We are engaged in forest
conservation activities in the forest associated with theCompany, which we have named “Forest connecting
mother earth, open sea and great sky.”2) Acquiring GDP certification
In April 2023, we acquired Good Distribution Practice(GDP) certification, quality control standards for pharmaceutical logistics, in Thailand andat our Nanko Warehouse in Japan(Suminoe-ku, Osaka), in addition
to our existing certification in Germany, France, and Belgium. With
this certification, we aim to handle
a broad range of pharmaceuticals
and create more opportunities forbusiness utilizing the Group’s
global network.

3) halal certification
We have acquired halal certification, which stipulates strict quality
and sanitation management for
warehouse storage operations inaccordance with Islamic law, at
two overseas subsidiaries in Singapore and Indonesia. We ensure
and provide a seamless supply
chain to meet our customers’
stringent requirements.

3) Arts5) Employment support

Kanagawa Philharmonic Orchestra: We support the activities of the Kanagawa Philharmonic Orchestra, aiming tocontribute to promoting culture in Kanagawa Prefecture,
the Company’s local region. The orchestra holds regularand special concerts in Kanagawa Prefecture, hosts performance tours and other performances, and conveys
the joy of music to a broad range of age groups, including through music appreciation classes for elementaryand junior high school students around Japan.
Web

https://www.kanaphil.or.jp/

Japan Symphony Foundation: The Company is a supporting member of the Japan Symphony Foundation,
assisting its activities to support the spread and promotion of music. The foundation was established for the
purpose of promoting and spreading orchestral music in
Japan. It is engaged in performance activities such as
regional concert tours by professional orchestras andsupporting performances by amateur orchestras, as wellas orchestral concerts at special support schools.

As a member of the Yokohama YMCA Support Association, we have held mock interviews to support thejob-seeking activities of international students in Japan,
with the Company’s interviewers providing advice fromtheir extensive experience. As a result, two international
students were able to find employment, and we witnessed
their entry into the Japanese business world. We will continue to provide employment support as part of our contribution to the local community.

6) Education
We cosponsor Oshigoto Nenkan (“The Job Almanac”),
which educates elementary and junior high school students about careers. This publication is donated to elementary and junior high schools in Japan and Japanese
schools for citizens who live abroad, with a circulation of
about 5,000 copies. It contains detailed answers by the
representatives of companies to children’s honest questions about each job.
40

NISSIN

ESG Initiatives

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Governance
We are working to enhance our fair governance structure in order tobuild a relationship of trust with all stakeholders.

Executives■■Ⅰ. Corporate Governance
Masahiro Tsutsui

1) Nissin’s Basic Approach to Corporate GovernancePresident and Representative
Director
President and Exective Officer

Furthermore, to ensure that corporate governance functions effectively, Nissin has also established the Nissin
Charter of Corporate Behavior, which sets out specificguidelines for complying with the laws of Japan and othercountries and acting in accordance with corporate ethics,
and carries out compliance activities stated in the charter.

Nissin group strives to implement a thorough corporate
governance system building on improving business transparency and efficiency in order to contribute to society
and meet the expectations of stakeholders by enhancing
corporate value.
● Governance Structure

Masataka Tsutsui
Director and Senior Managing
Executive Officer(As of September 1, 2023)
General Meeting of Shareholders

Appointment/
removalReportReportCooperation

Accounting
auditorAccounting/internal
controls audits

Appointment/
removalAppointment/removal

ReportAudit & Supervisory Committee Audit/

10 directors (including 4 outside
directors and Audit & Supervisory
Committee Members)

3 members who aresupervision
Selection/
directors (all 3 members are
dismissal/supervision
outside directors)
ReportCooperation

AdviceReportInstruction

Consultation

Recommendation

Internal Controls Evaluation Committee
Sustainability Committee

ISO (quality)/(environment)

Risk Management Committee

Proposal/report, etc.

Inspection
Instruction ofcorrection

Outsideindependent

Susumu Fujimoto
Director

Business departments
Sales department
Operational department
Administration
department

Director and Managing
Executive Officer

Executive Committee

Central Safety and Health Committee

Instruction/
approval of proposals, etc.

Tetsuo Sakurai

9 executive officers with special titles

Compliance Committee

Directors/
executive officers

Audit
Audit

Nominating and Compensation Committee
Consultation
Seven directors
Recommendation (including 4 outside directors that include committee chair)(including Audit & Supervisory Committee Members)
Deliberation/
partial delegation
ReportSubmission/
report of important items

President

Audit
Department

Legal counsel

Proposal/report

Board of Directors

Internal controls management department
Accounting/finance department
Legal/compliance department
Safety/environmental management department
Subsidiaries and affiliates management department

Application/report

Instruction/contact

Subsidiaries and affiliates

Outside2) Assessing effectiveness ofBoard of Directors
In order to assess the effectiveness of the Board of Directors, we conduct self-evaluations through an annual survey
for directors regarding the role, functions, and operation
methods of the Board of Directors. Based on the results,
the Board of Directors discusses issues and how to respond to them in order to ensure its effectiveness andmake further improvements.

shall apply), the promotion and demotion of executive
officers, independence standards for outside directors
and remuneration for directors, then reports to theBoard of Directors. We are strengthening our corporate
governance system by increasing the transparency andobjectivity of the decision-making process related to
the nomination and remuneration of directors.

4) Establishment of Sustainability
Committee

independent

Junko Kogayu
Director (Audit & Supervisory
Committee Member)

A Nominating and Compensation Committee comprised of four outside directors and three internal directors was established as an advisory body of the Boardof Directors. This committee deliberates on the appointment and dismissal of directors (excluding Audit &Supervisory Committee Members; hereinafter the same41

We have established the Sustainability Committee,
chaired by the President and Representative Director,
for the realization of a sustainable society and enhancing corporate value. As an advisory body to the Executive Committee, it deliberates on matters related to theGroup’s sustainability. Going forward, we will continue
to manage the progress of measures to resolve issues
and promote effective sustainability activities by passing resolutions on important matters by the Board of
Directors.

Past experience, positions, responsibilities, and significant concurrent positions

Apr. 1975 Joined Mitsui O.S.K. Lines, Ltd.
Jul. 1986 Joined the Company
Jun. 1993 Director
Apr. 2001 Managing Director
Jun. 2005 Senior Managing Director
Jun. 2007 Representative Director and Vice President
Jun. 2008 President, Chief Operating Officer and Representative Director
Jun. 2019 President and Representative Director, Yokohama Air Cargo Terminal Co., Ltd.
Jun. 2020 President and Representative Director, President and Executive Officer (to present)

Apr. 1981 Joined The Sanwa Bank, Ltd.
Nov. 2009 Joined the Company
Jun. 2010 Executive Officer
Jun. 2012 Director and Executive Officer
Oct. 2012 Director and Managing Executive Officer
Apr. 2016 Director and Senior Managing Executive Officer
Apr. 2020 Assistant to the President, General Manager, Sales Division andHead of Operational Headquarters (to present)
Jun. 2020 Representative Director and Senior Managing Executive Officer (to present)

Junichiro Watanabe
Representative Director andSenior Managing Executve Officer

Past experience, positions, responsibilities, and significant concurrent positions

Past experience, positions, responsibilities, and significant concurrent positions

Apr. 1990 Joined the Company
Apr. 2011 General Manager, Personnel Department
Apr. 2013 Executive Officer
Jun. 2014 Director and Executive Officer
Apr. 2016 Director and Managing Executive Officer
Apr. 2020 Director and Senior Managing Executive Officer (to present)
Apr. 2020 General Manager, Operational Headquarters (to present)

Apr. 1986 Joined the Company
Apr. 2013 General Manager, Corporate Planning Department
Apr. 2015 General Manager, Human Resources Department
Apr. 2016 Executive Officer
Apr. 2020 Managing Executive Officer
Apr. 2022 General Manager, Administration Headquarters (to present)
Jun. 2022 Director and Managing Executive Officer (to present)

Satoshi Kuwahara
Director and Managing
Executive Officer

Past experience, positions, responsibilities, and significant concurrent positions

Past experience, positions, responsibilities, and significant concurrent positions

Apr. 1985 Joined the Company
Apr. 2014 General Manager, General Sales Department No. 1
Apr. 2017 Executive Officer
Apr. 2020 Managing Executive Officer
Jun. 2022 Director and Managing Executive Officer (to present)
Apr. 2023 Head of Air Freight Business Division and in charge of Mobility
Logistics Sales Department No.1,
Mobility Logistics Sales Department No.2 (to present)

Apr.
Apr.
Apr.
Apr.
Apr.
Apr.

1985 Joined the Company
2012 General Manager, Kobe Branch2014 General Manager, Osaka Branch2015 Executive Officer
2021 Managing Executive Officer (to present)
2023 Head of Kanto Warehouse Division, Customs Brokerage Department
and General Manager, Container And Land Transportation Division andGeneral Manager, Marine And Port Operation Division (to present)
Jun. 2023 Director and Managing Executive Officer (to present)

Shigeki Mine
Director and Managing
Executive Officer

Past experience, positions, responsibilities, and significant concurrent positions

Past experience, positions, responsibilities, and significant concurrent positions

Apr. 1972 Joined Ministry of FinanceJun. 1992 Director, Asian Development Bank
Jun. 1998 Director-General, Yokohama Customs
Jun. 2007 Director, MS&AD Insurance Group Holdings
Apr. 2008 Director, Managing Executive Officer, Mitsui Sumitomo Insurance
Company, Limited
Apr. 2014 Director, Executive Vice President, MS&AD Insurance Group Holdings
Apr. 2014 Vice President, Executive Officer, Mitsui Sumitomo Insurance
Company Limited
Apr. 2016 Director, Chairman, InterRisk Research Institute & Consulting, Inc.
Oct. 2018 Advisor, the Company
Apr. 2019 Director and Chairman, Tokai Tokyo Research Institute Co., Ltd. (to present)
Jun. 2019 Outside Director, the Company (to present)

Apr.
Apr.
Apr.
Apr.
Apr.
Apr.

Outsideindependent

Shinya Yamada
Director (Audit & Supervisory
Committee Member(Full-time) )1982 Joined The Bank of Yokohama, Ltd.
2007 General Manager, Direct Sales Department
2008 General Manager, Individual Customers Department
2009 Executive Officer
2014 Managing Executive Officer
2015 Supervisory Manager, Kanagawa Prefecture SME Business
Rehabilitation Support Co-operativeJun. 2019 Full-time Audit & Supervisory Board Member, The Bank of
Yokohama, Ltd.
Jun. 2023 Outside Director who is an Audit & Supervisory Committee
Member, the Company (to present)

Past experience, positions, responsibilities, and significant concurrent positions

Past experience, positions, responsibilities, and significant concurrent positions

Apr. 1991 Joined Chuo Shinko Audit Corporation
Mar. 1994 Registered as certified public accountant
Sep. 2006 Joined PricewaterhouseCoopers Aarata (currently PricewaterhouseCoopers Aarata LLC)
Aug. 2012 Group leader, Research and Consultation, Self-regulation, Professional
Standards and Practices, The Japanese Institute of Certified Public Accountants
Oct. 2012 Professor, Accounting School, Graduate School of Economics
and Management, Tohoku University (to present)
Jan. 2020 Established Junko Kogayu Certified Public Accountant Office (to present)
Mar. 2020 Registered as tax accountant
Apr. 2020 Joined Ayako Takeuchi Tax Accountant Office (to present)
Dec. 2020 Outside Director who is an Audit & Supervisory Committee
Member, NIHON CHORIKI CO., LTD. (to present)
Jun. 2021 Outside Director who is an Audit & Supervisory Committee
Member, the Company (to present)
Nov. 2021 Supervisory Director, Daiwa House REIT Investment Corporation (to present)
Mar. 2022 Outside Director and Audit & Supervisory Committee Member, CERES INC.
Jun. 2022 Outside Audit & Supervisory Board Member, Private FinanceInitiative Promotion Corporation of Japan (to present)
Jun. 2022 External Audit & Supervisory Board Member, The Shoko Chukin Bank, Ltd. (to present)

Apr. 1980 Joined Yokohama City Hall
Apr. 2008 General Manager, Financial Department, Administrative
Management Coordination Bureau, Yokohama City
Apr. 2010 Deputy Director, General Affairs Bureau
May 2011 Mayor, Hodogaya Ward
Apr. 2014 Director, Finance Bureau
Jun. 2018 President and Representative Director, Yokohama Bayside
Marina Co., Ltd.
Jun. 2023 Outside Director who is an Audit & Supervisory Committee
Member, the Company (to present)

Outsideindependent

Kazuhiro Suzuki
Director (Audit & Supervisory
Committee Member)

Skill Matrix
Specialization and knowledge, experienceName3) Establishment of Nominating andCompensation Committee

Past experience, positions, responsibilities, and significant concurrent positions

Position

Corporate
Attributes management

President and Representative Director
President and Exective Officer
Representative Director and Senior
Junichiro Watanabe
Managing Executve Officer
Masataka Tsutsui Director and Senior Managing Executive Officer—

Satoshi Kuwahara

Director and Managing Executive Officer—

Tetsuo Sakurai

Director and Managing Executive Officer—

Shigeki Mine

Director and Managing Executive Officer—

Director

Outside, independent

Masahiro Tsutsui

Susumu Fujimoto
Shinya Yamada

Sales andsales
planning

Finance andaccounting

Globaloperationsaffairs,
Administration Personnel
affairs
and human Legaland research laborresourceandinstitutecompliancedevelopment

Information
technology
(IT)

—
—

Director (Audit & Supervisory Committee Member) Outside, independent

Junko Kogayu

Director (Audit & Supervisory Committee Member) Outside, independent

Kazuhiro Suzuki

Director (Audit & Supervisory Committee Member) Outside, independent

42

NISSIN

ESG Initiatives

Integrated
Report2023

Governance■■Ⅱ. Compliance1) Compliance Committee
We have established the Compliance Committee, chairedby the President, to systematically, effectively, steadily promote the Group’s compliance activities. The Compliance
Committee formulates companywide policies and key
measures related to compliance, confirms their implementation status, and deliberates on matters such as investigations into the cause of legal and regulatory violations,harassment, and other compliance violations, as well as
measures to prevent recurrence. The committee reports to
the Board of Directors on the status of activities every six
months.

2) Compliance education and training
To ensure compliance with laws and regulations and improve corporate ethics, we have established the Nissin
Charter of Corporate Behavior, a set of corporate behavior
guidelines, and the Compliance Manual. We conduct compliance training, such as e-leaning programs, to raise employee awareness of legal and regulatory compliance. We
publish the “Legal & Compliance Department Newsletter”
internally to ensure thorough compliance education, including dissemination of the latest legal and regulatory information and precautions.

3) Whistleblowing system
The Group has established whistleblowing handling rules
for the early detection and correction of violations and potential violations of laws, regulations and internal rules suchas business-related misconduct and harassment. In addition to a helpdesk that acts as a whistleblowing hotline forreporting or receiving advice, we have established an external reporting desk (an advisory legal firm) for further enhancement of our compliance system.

by the Executive Committee, and response measures are
considered and implemented for them.

2) Internal control
The Nissin Group has formulated a basic policy on
establishing internal control systems to ensure employees
and directors perform their duties properly and appropriate
business operations. We have also established the Internal
Controls Evaluation Committee, chaired by the President,
to oversee the evaluation of the Group’s internal controls.
The committee evaluates and sets annual plans for theestablishment and operating status of internal controls,deliberates and approves corrective measures for any
defects and significant flaws discovered through thisevaluation, and reports to the Board of Directors on
important matters. In this way, we aim to build an effective
internal control system.

3) BCP

Non-Financial Information
Environmental data
Item

FY2020

FY2021

FY2022

Crude oil equivalent KL

7,474

7,740

7,508

Crude oil equivalent KL

6,110

6,355

6,276

DieselCrude oil equivalent KL

1,098

1,112

965

Gasoline

Crude oil equivalent KL

70

71

74

Other

Crude oil equivalent KL

GHG emissions (Scope 1 and 2)

195

201

191

t-CO²

14,634

15,114

12,6351,000 kWh

24,932

24,27025,246

t-CO²

719

385

386

Electricity generated from renewable energy

1,000 kWh

1,407

1,336

1,365

Proportion of electricity consumption from renewable energy

%

0

1.09

14.73

0

277

3,672

Electricity consumption
CFC leakage

Electricity consumption from renewable energy 1,000 kWh
Reduction in copying paper (year on year)

%

-9.14

1.07

-8.47

Eco-car rate (business vehicles)

%

13.51

12.93

26.71

Proportion of LEDs

%

41.00

48.60

55.60

Green purchasing rate (office supplies)

%

57.00

Proportion of electric forklifts

64.00

57.00

Cases

0

0

0

%

—

—

66.90

1,636/1,081/555

1,685/1,091/594

1,601/1,041/560

Social data
Item

Unit

Number of employees (all/male/female)

Persons

Share of women in managerial positions%

Number of recruits (all/male/female)

Persons

Number of foreign nationals employed

Persons

Employment rate of people with disabilities%

Average length of employment (all/male/female)Years

FY2020

FY2021

FY2022

8.5

8.5

8.3

Mid-career: 10/2/8
New graduates: 69/40/29

Mid-career: 9/2/7
New graduates: 71/38/33

Mid-career: 14/1/13
New graduates: 48/32/16

8

13

13

1.95

1.97

2.12
13.9/15.9/10.2

13.3/15.2/9.4

13.3/15.3/9.4

Employee turnover rate

%

2.68

3.40

4.04

Graduate recruit retention rate

%

78.00

83.05

86.96

Average overtime hours

Hours

17.0

16.0

13.3

Number of childbirth leave-takers

Persons

26

21

14

Number of childcare leave-takers

Persons

27

21

19

Persons

1

0

6

Days of paid leave taken (average)

Days

8.9

9.5

10.9

Number of work-related accidents

Cases

7

4

9

Medical check-up participation rate

%

100

100

100

Stress check participation rate

%

97.7

98.0

98.4

Of whom, number of male employees■■ Ⅲ. Risk Management

Unit

Electricity

Total energy consumption

Environment-related legal and regulatory violations

In order to strengthen our resilience, we have established
the Crisis Management Regulations and formulated a business continuity plan (BCP) for emergencies such as disasters and infectious diseases. Placing the highest priority on
human life and safety, we will strive to ensure business
continuity and fulfill our social responsibility as a logistics
provider through initial responses to emergencies and early
restoration of operations, as well as disaster prevention
and mitigation efforts such as disaster countermeasuresand drills.
In March 2021, we were certified by Development Banko f J a p a n I n c . ’s D B J B C M ( B u s i n e s s C o n t i n u i t yManagement) Rating to be a company with “sufficient
initiatives for disaster measures and BCP.” The DBJ BCM
Rating evaluates and selects companies with outstanding
disaster prevention and business continuity initiatives.

(Nissin Corporation on a non-consolidated basis)

1) Risk Management Committee
In March 2021, we received a DBJ BCM Rated

The Group has established risk management regulations
to identify and manage all risks that could cause physicalor economic losses. We have also established the Risk
Management Committee, chaired by an executive officer
with a special title, to recognize and identify significant
risks, evaluate and deliberate on loss prevention measuresand conduct regular monitoring to strengthen risk
management. Risks identified as significant are recognizedas significant risks for the Group after debate and approval

43

Loan from Development Bank of Japan and wererated to have “sufficient initiatives for business
continuity.”

Governance data
Item

Unit

Millions of yen
Directors’ compensation (total)
Attendance rate of Audit & Supervisory Committee Members%
at meetings of the Audit & Supervisory Committee
Attendance rate of Outside Directors at meetings%of the Board of Directors%
AEO training participation rate (compliance)

Reports through the internal whistleblowing system

Reports

FY2020

FY2021

FY2022

233

270

305

100

100

100

100

100

100

99.62

99.44

99.95

4

5

9

44

NISSIN
Integrated
Report2023

Data Section

Data Section

11-Year summary
Unit

FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

Operating results
Net sales

millions ofyen

175,230

193,709

204,461

201,705

201,209

216,924

218,040

197,387

155,915

192,699

194,165

Operating profit

millions of
yen

3,422

4,042

4,664

5,587

5,607

6,389

5,698

3,528

2,611

9,098

12,643

Ordinary profit

millions of
yen

3,558

4,681

5,135

5,887

6,266

6,869

6,584

4,114

4,287

9,859

13,634

Profit attributable to owners of parent

millions of
yen

1,836

2,624

2,447

3,196

4,457

5,210

4,426

2,705

2,007

6,365

10,528Current assets

millions ofyen

41,10946,362

48,76048,28452,48955,38455,285

48,69353,506

62,20962,485

Total assets

millions ofyen

102,236

109,486

114,224

108,439

112,413120,030

120,516

118,678

132,973

144,898

153,263

Current liabilities

millions ofyen

32,34834,01634,277

27,85429,61532,91033,38431,51833,82438,81535,880Net assets

millions ofyen

41,625

46,63652,28250,74755,12861,041

62,07060,437

65,84874,40685,263

Cash flows from operating activities

millions of
yen

4,208

5,970

3,934

6,342

8,368

7,142

6,987

10,801

4,955

9,540

17,922

Cash flows from investing activities

millions of
yen

(62)

(3,807)(1,118)(1,486)(2,143)(3,131)(4,650)(6,117)(8,938)(3,586)(5,557)

Cash flows from financing activities

millions ofyen(2,208)(1,595)(1,965)(4,189)(4,636)(3,050)(1,266)(4,711)

1,973(5,438)(8,615)

Free cash flow

millions of
yen

4,146

2,163

2,816

4,856

6,225

4,011

2,337

4,684

(3,983)

5,954

12,365

Cash and cash equivalents at end of period

millions ofyen

10,791

12,595

14,272

14,59815,936

17,106

17,846

18,474

16,94918,16822,466

Financial position

Cash flows

Per-share information
Dividends per share*

yen

35.0

37.5

40.0

40.0

45.0

50.0

55.0

56.0

56.0

60.0

90.0

Basic earnings per share*

yen

93.37

132.83123.41160.47223.29263.61223.95137.13103.55329.61

540.47

Net assets per share*yen

2,071.23

2,279.27

2,541.96

2,454.49

2,674.49

2,965.95

3,020.69

2,968.03

3,296.04

3,693.10

4,201.29

Return on assets (ROA)

%

3.5

4.4

4.6

5.3

5.7

5.9

5.5

3.4

3.4

7.1

9.1

Return on equity

%

4.7

6.1

5.1

6.4

8.8

9.3

7.5

4.6

3.3

9.4

13.7

Equity ratio

%

39.9

41.2

44.2

45.2

47.0

48.8

49.5

48.9

47.6

49.4

53.6

Times

14.3

11.1

12.4

9.6

8.3

10.6

8.3

11.7

14.0

5.0

3.9

Capital investment

millions of
yen

4,791

2,097

2,127

2,062

2,265

2,933

6,744

6,310

10,177

5,359

14,139Depreciation

millions of
yen

2,965

2,768

2,881

2,724

2,625

2,681

2,609

5,062

5,311

5,878

5,571

Financial indicators

Price/earnings ratio
Others* The Company executed a 1-for-5 reverse stock split of common stock effective October 1, 2017.
“Dividends per share,” “basic earnings per share,” and “net assets per share” are calculated as if the reverse stock split was carried out at the start of FY2012.

45

46

NISSIN

Data Section

Integrated
Report2023

Financial Information

Consolidated Balance Sheet (millions of yen)

FY2021

Consolidated Statement of Income (millions of yen)

FY2022

Liabilities

AssetsCurrent liabilities

Current assets
Cash and cash equivalents

19,83425,923

Notes and accounts payable-trade

14,973

11,066

Notes and accounts receivable-trade35,021

29,169Bonds payable due within one year

1,000

−

138

132

Short-term loans payable

7,398

7,738

7,307

7,375

Lease obligations

2,208

3,222

(91)

(115)

Income taxes payable

2,069

2,527

62,20962,485

Accrued bonuses

2,578

2,816

68

83

Others

8,518

8,425

Total current liabilities

38,81535,880Raw materials and supplies
OthersAllowance for doubtful accounts
Total current assets

Accrued directors’ bonuses

Noncurrent assets
Property, plant, and equipment
Buildings and structures

72,37881,094

Accumulated depreciation(46,049)(49,803)

Buildings and structures, net

26,32931,291

Machinery, equipment, and vehicles

15,13015,593

Accumulated depreciation(11,150)(11,485)

Machinery, equipment and vehicles, net

3,979

4,108

Land

25,56926,379Construction in progress

46

2,181

Other noncurrent assets

3,551

3,586

(2,860)(2,843)691

742

56,61664,703

Accumulated depreciation
Other, net
Total Property, plant, and equipment
Intangible assets

Noncurrent liabilities
Bonds payable

−

1,000

Long-term loans payable

21,592

16,934

Lease obligations

3,201

7,733

58

56

Deferred tax liabilities

1,769

1,204

Net defined benefit liabilities

3,252

3,209

Others

1,801

1,981

Total noncurrent liabilities

31,67632,12070,49168,000Long-term accounts payable

Total liabilities

Shareholders’ equity
Capital stock

6,097

6,097

Capital surplus

4,707

4,712

Retained earnings

54,32863,428Treasury stock(1,284)(1,056)

Total shareholders’ equity

63,84873,182497

Others

795

883

1,296

1,380

18,08818,156Long-term loans receivable

394

242

Valuation difference on available-for-sale securities

5,673

5,565

Net defined benefit assets

1,563

1,426

Deferred gains or losses on hedges

−

0

462

563

Foreign currency translation adjustment

1,496

2,772

Others

4,407

4,376

Remeasurements of defined benefit plans

576

613

Allowance for doubtful accounts

(140)

(71)

Accumulated other comprehensive income

7,746

8,952

Total investments and other assets

24,776

24,693

Non-controlling interests

2,812

3,129

82,68890,777

Total net assets

74,40685,263

144,898

153,263

144,898

153,263

Investment securities

Deferred tax assets

Total noncurrent assets
Total assets

FY2022

Net sales

192,699

194,165

Cost of sales

170,590

167,560

Gross profit

22,10826,605

Selling, general and administrative
expenses

13,00913,961

Operating income

9,098

12,643Non-operating income

1,672

1,889

Non-operating expenses

911

898

9,859

13,634593

1,071

Extraordinary loss

1,072

333

Income before income taxes

9,380

14,371

Extraordinary income

Income taxes-current

3,011

4,057

Income taxes-deferred

(197)

(599)

Total taxes

2,813

3,458

Net income

6,567

10,913

Profit attributable to non-controllinginterests

201

385

Profit attributable to owners of parent

6,365

10,528FY2021

FY2022

Cash flows from operating activities

9,540

17,922

Cash flows from investing activities(3,586)(5,557)

Cash flows from financing activities(5,438)(8,615)

Effect of exchange rate change on
cash and cash equivalents

703

548

Net increase (decrease) in cash andcash equivalents

1,219

4,298

Cash and cash equivalents at
beginning of year

16,94918,168Cash and cash equivalents at
end of year

18,16822,466

Net assets

500

Investments and other assets

FY2021

Ordinary income

Leasehold rights

Total intangible assets

47

FY2021

FY2022

Consolidated Statements of Cash Flows (millions of yen)

Other comprehensive income

Total liabilities and net assets

Consolidated Statement of Comprehensive
Income (millions of yen)

FY2021

FY2022

Net income

6,567

10,913

Other comprehensive income

3,052

1,253

Comprehensive income

9,619

12,16648

NISSIN
Integrated
Report2023

Data Section

Company Data & Stock Information

Company Data (as of March 31, 2023)

Stock Information (as of March 31, 2023)

Distribution of shareholders (as of March 31, 2023)

Name:

NISSIN CORPORATION

Total number of authorized shares: 40,000,000 shares

Treasury stock

Financial institutions

Established:

December 14, 1938

Total number of issued shares:

20,272,796 shares

2.14%

43.24%

Total number of shareholders:

5,072

Individuals, etc.

Yokohama Head Office: 6-81 Onoe-Cho, Naka-Ku,
Yokohama
Tokyo Head Office:22.57%

6-4, Kojimachi 1-chome,
Chiyoda-ku, Tokyo

Overseas
corporations, etc.

Total

20,272,769 shares

Main shareholders (as of March 31, 2023)
No. of shares held
(thousand shares)

Ownership ofVoting Shares (%)

The Master Trust Bank of Japan, Ltd.
(trust account)

1,953

9.84

Custody Bank of Japan, Ltd.

1,048

5.28

The Bank of Mitsubishi UFJ, Ltd.

986

4.97

Name

The Bank of Yokohama, Ltd.

978

4.93

13.93%

Nissin Shoji Co., Ltd.

890

4.48

800

4.03

Representative:

Masahiro Tsutsui, President

Capital:6,097 million yen

Domestic corporations

Securities companies

Nissin Employee Stock Ownership
Association

Number of employees:

1,601 (non-consolidated)

17.25%

0.87%

Nippon Life Insurance Company

735

3.70

Sumitomo Mitsui Banking Corporation

649

3.27

Nissin Kyoeikai

561

2.83

Sompo Japan Insurance Inc.

423

2.13

URL:

https://www.nissin-tw.com/
english/(Note) Percentage of shares held is calculated by the total number of shares excluding
treasury stock.

Group companies (as of April 31, 2023)■ Japan

Hokkaido region

Kansai region

Hokkaido
HOKKAIDO NISSIN CORPORATIONHOKUSHIN KOUN CORPORATIONOsaka
NISSIN AIRPORT SERVICE CO., LTD.
TSURUMARU UNYU CO., LTD.
MARUSHIN KOUN CO., LTD.
MATSUBISHI UNYU CO., LTD.
Hyogo
SHIGA NISSIN CORPORATIONNICHIEI UNYU CO., LTD.
SHINKO KONPO CO., LTD.

Kanto region
Chiba
NISSEI KOUUN CORPORATIONTokyoNISSIN TRAVEL SERVICE CO., LTD.
NISSIN SHOJI CO., LTD.
ITABASHI TRANSPORTATION CO., LTD.
NISSIN AIR CARGO CO., LTD.
TAIYO MARINE CO., LTD.
SHOWA NITTAN CORPORATION.
KINKAI TANKER CO., LTD.
Kanagawa
TSURUMI WAREHOUSE CO., LTD.
KEIHIN REAL ESTATE CO., LTD.
YOKOKAI RIKUUN CO., LTD.
NISSIN PACKAGING CO., LTD.
NISSIN INDUSTRY CORPORATION
MARUSHIN CO., LTD.
NISSIN KOUSAN CORPORATIONSHINEI UNYU CO., LTD.
KOEI UNYU CO., LTD.
HARADA KOWAN CO., LTD.
SHINKO LUMBER CO., LTD.
Chubu region
Aichi
AICHI NISSIN CO., LTD.

49

Kyusyu region
Fukuoka
KYUSYU NISSIN CORPORATION■ Overseas

Americas
United States
NISSIN INTERNATIONAL TRANSPORT U.S.A., INC.
CanadaNISSIN TRANSPORT (CANADA) INC.
MexicoNISTRANS INTERNACIONAL DE MEXICO,S.DE R.L.DE C.V.
EuropeGermany
NISSIN TRANSPORT GMBH
Netherlands
NISSIN TRANSPORT GMBH TILBURG BRANCH
Spain
NISSIN TRANSPORT GMBH SPAIN BRANCH

United Kingdom
NISSIN (U.K.) LTD.
FranceNISSIN FRANCE S.A.S.
Belgium
NISSIN BELGIUM N.V.
PolandNISSIN LOGISTICS POLAND SP. Z O.O.
Austria
NISSIN TRANSPORT GES. MBH
RussiaLIMITED LIABILITY COMPANY “NISSIN RUS”
Asia
Singapore
NISSIN TRANSPORT (S) PTE. LTD.
Thailand
SIAM NISTRANS CO., LTD.
BEST COLD CHAIN CO., LTD.
SIAM NISSIN & SEO LOGISTICS CO., LTD.
Malaysia
NISTRANS (M) SDN. BHD.
NISSIN INTERNATIONAL LOGISTICS (M) SDN. BHD.
Philippines
NISSIN TRANSPORT PHILIPPINES CORPORATIONANCHOR LOGISTICS FACILITIES CORPORATION.
India
NISSIN ABC LOGISTICS PRIVATE LIMITED
Indonesia
PT.NISSIN JAYA INDONESIA
PT.NISSIN TRANSPORT INDONESIA

VietnamNISSIN LOGISTICS (VN) CO., LTD.
NR GREENLINES LOGISTICS CO., LTD.
Laos
LAO NISSIN SMT CO., LTD.
China
China
NISSIN-SINOTRANS INTERNATIONAL LOGISTICS CO., LTD.
SHANGHAI GAOSIN INTERNATIONAL LOGISTICS CO., LTD.
NISSIN INTERNATIONAL LOGISTICS(C)CO., LTD.
NISSIN (CHANGSHU) INTERNATIONAL LOGISTICS CO., LTD.
NISSIN LOGISTICS SHENZHEN CO., LTD.
Hong Kong
NISSIN TRANSPORTATION & WAREHOUSING (H.K.) LTD.
TaiwanNISSIN GLOBAL LOGISTICS(TAIWAN) CO., LTD.

50