「解 体 新 書」2 0 2 2Integrated Report

GAMBARE!! JAPANESE MONODZUKURI

Integrated Report (this document)This report describes the process behindproviding value (value creation) to society throughour business.

Annual Securities Report
This report is prepared in accordance with Article
24 of the Financial Instruments and Exchange Act
and is required to be submitted to the Kanto
Local Finance Bureau.

Corporate Governance Report
This report provides information about TRUSCO's
approaches and systems related to corporate
governance.

TRUSCO NAKAYAMA Corporation
Tokyo Head Office
TRUSCO Fiorito Bldg., 4-28-1, Shimbashi, Minato-ku, Tokyo 105-0004
Osaka Head Office
TRUSCO Glen Check Bldg., 1-34-15, Shinmachi, Nishi-ku, Osaka-shi, Osaka
550-0013

Published: June 2022
Editor and Chief: Atsushi Shimozu
General Manager ofCorporate Planning Division
Production Partner: Dai Nippon Printing Co., Ltd.
4,225 1,200 issues

Building up trust Golden Fiorito
The walls of the Trusco Fiorito Building, which
serves as the Tokyo Head Office, feature
stacked stone called Golden Fiorito which
expresses the concept “Building up trust”.

Our Policy

Business must serve people
and society

Corporate Message

GAMBARE!! JAPANESEMONODZUKURI

Annual Expenditure for Shipping$135 million(as of December, 2021)

Location where stock center
construction is planned

Logistic Centers Planet Saitama (Satte City, Saitama)
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3

would like for us to take action by first making employees more environmentally conscious through means suchas by creating a pamphlet with a checklist of actions designed to stop non-malicious environmental destruction
within the company.
In addition to rethinking the impact of our business on
the environment through our newly established Sustainability Committee, we have also established a researchteam for electric vehicles and carbon neutrality, and will
aim to create a company that has a low environmental
impact, including a product lineup.

Top Message

Common sense might change but
our principles remain unchange.

- To become a company needed by both our customers and society President
Tetsuya Nakayama

What do customers want?
Emerging for the first time at the end of 2019, Covid-19
has changed how we look at the world. The “monodzukuri” industry, which is our business domain, was also
severely impacted. However, last year (2021), there wasa gradual recovery in terms of production site activities
and capital expenditures. In FY2021, we achieved record
consolidated net sales of $2,066 million (+7.5% Year onYear) and net income of $104 million (+44.9% Year onYear).
I believe the fact that we continued to invest in distribution
centers and inventory while never forgetting the purposeof our business, which is to support Japanese manufacturing, “Monodzukuri” through the supply of PRO TOOLs,
is the reason why we were able to achieve sales growthduring the Covid-19 pandemic. No matter what the industry or company you are, members of an organization
should always be thinking about how their organization
should be. It is also important to consider the difference
between ideal and actual situations as issues, solve eachissue one by one, and be prepared for what is to come.
For example, indicators including ROE (return on equity)
and ROA (return on assets), which are generally considered management indicators, probably mean nothing tocustomers. Although we say that we should keep watching our customers and the market, there are many times
when this actually ends up not happening. Our “stock
hit rate” serves as a key indicator from the customer's
perspective, and starting this year we have decided to visualize “delivery lead time” as a KPI. I would like for us
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Integrated Report 2022

Achieving convenience while reducing
the environmental burden
TRUSCO Data Center
Solemaleto determine what our clients really need and put in place
specific measures for achieving those needs.

Every human being takes part indestroying the global environment
Covid-19 has made the world take a stricter stance regarding the global environment, including SDGs and
ESG. Changes in the way we think about global environment also have had a major impact on the “Monodzukuri”
industry, and companies are often in the spotlight, but
we should recognize once again that every human being
takes part in environmental destruction. There are manythings that individuals should be aware of, such as notpouring leftover soup broth or cooking oil down the
kitchen sink after a meal and not letting the shower run
the entire time when shampooing their hair. Likewise, I

The self-sufficiency rate of solar power generation at the Tokyo Head Office is displayed at the entrance of the building in order to make employees aware of just how difficult it is to generate solar power on our own.

Last year, we focused on expanding “user-direct shipping” and “MRO Stocker.” “User-direct shipping” is aservice in which we, as a wholesaler, deliver directly topeople in the manufacturing sites what is conventionallydelivered via our customers. We are able to provide thisservice because of our abundant inventory and six highspeed automated packaging and shipping lines, eachreferred to as “I-Pack®” throughout Japan, enabling us todeliver 2.83 million packages directly to users last year.
Not only does this shorten delivery times but also helps
reduce CO2 emissions that are associated with packaging
materials and truck-based transport.
Also, in 2020 we fully launched a service called MRO
Stocker, which is like “Okigusuri,” a “Use first, pay later”
system that has been around for many years in Japan for
medicine, but for tools, which now has a larger presencein the market. By stocking products that are used regularly at manufacturing sites in advance, MRO Stocker not
only allows products to be used immediately when needed but is also an environmentally friendly approach. Thisis because the number of product deliveries is reduced as
the service is designed to prevent products from suddenly
running out of stock.

We also offer MRO Stocker in a vending machine style format to keep
products secure, allowing the service to be utilized by a variety of users.

Last year, the company purchased a Porsche Taycan,
allowing us to reaffirm Porsche’s level of commitment to electric vehicles.

We will continue to expand our business to provide convenience for our customers while reducing the environmental burden.

The appropriate actions and directionof our business become clear if wehave ambition

In our company, we have “capability targets” and “numerical targets.” We give priority to capability targets,
which tell us the types of capabilities that we should
possess as a company, rather than to numerical targets
such as sales and profit figures. However, we have cometo feel that the rapid advances in the fields of distribution, digital technology, and AI required to achieve thesecapability targets are beyond the scope of non experts.
Cutting-edge digital technology is indispensable for “becoming the company we want to be.” Therefore, on June15, 2021, we announced a capital and business alliancewith GROUND Inc. and Cinnamon Inc. as well as a medium- to long- term industry-academia collaboration with
Nagoya University. By forming a strong team with theseorganizations, we hope to realize the “fastest," “shortest,"and “best“ deliveries in the industry for the procurementof subsidiary equipment used at factories required at
manufacturing sites to become a “platform holder” formanufacturing in Japan.
We will continue to aim to be a company that always
supports the manufacturing industry in Japan by constantly focusing on the ambition behind being a businessand company that is there for people and society.
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TRUSCO Integrated Report

Integrated Report 2022
Table of Contents.................................................................................................................................................

02
04
07

.....

.............................................................................................................................
....

.....

Shushazentaku....................................................................................................

When you make a decision, you should ask yourself
whether it is right or wrong, good or bad, and always
choose what is right rather than focusing on whether
it is profitable. Making a decision based on whether itwill be profitable often results in a bad decision.

..............................................................

The Nakayama visually impaired welfare
foundation...............................................................................................................................................

86

Creativity inManagement

Choosing majority solutions results in ordinary results. This is because the will of the majority is notalways right.

Emphasison Regular
Employment

We have a responsibility to provide workplaces
where staff members can work with stability andpeace of mind. We should not take away the goodness from people's lives even if doing so increases
profits. TRUSCO has no temporary employees. Parttime employees are limited to housewives, students,
and the elderly, while heads of households are hired
as full-time employees.

A Company
With Assets

We must be able to secure company buildings, information systems, vehicles, and other important assets
without relying on others. Owning assets means thatthey remain after depreciation, so money is not wasted. Instead of aiming for short-term profits, we stick tobeing “a company with assets” in order to have a longterm perspective of improving corporate value and to
improve convenience for our customers. (see p.29).

Decisive
Management

It is also important to continue pursuing the core value
through reviewing our mission and raison d'etre, even
if it means going back to the drawing board. Bringing astop to some business practices, including the abolitionof goods receipts and draft transactions, has resulted
in changes. We will continue pursuing the core value by
always deeply looking at the essence of things.

Building a distribution system by strengthening our wholesale operations

Corporate Data....................................................................................................

TRUSCO’s Strengths/Performance Highlights..............
Financial Strategy - A Company with Assets - ...........

27
28
29

Map of Bases ............................................................................................................................. 88
A Glance at TRUSCO Through Numbers ................................ 94
Results Data ................................................................................................................................. 96
Corporate History ............................................................................................................ 102

Cautionary Information Regarding
Forward-Looking Statements
This Integrated Report contains forward-looking statements
regarding our future plans, strategies, and performance.
These statements are based on our assumptions and plans
based on current information. It contains risks and uncertainties related to economic trends and market demand. Therefore, please be aware that planned and actual results may
differ, and that strategies may change.

Reference Guidelines

6

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Organizational Chart ◀ OPEN

OPEN ▶ Organizational Chart

Corporate Data

· “Guidance on Integrated Disclosure and Dialog for Co-Creation” (Ministry of Economy, Trade and Industry)· “International Integrated Reporting Framework” (International Integrated Reporting Council (IIRC))

Owning our own buildings allows us tostrengthen functionality(Planet Saitama Distribution Center)

The Nakayama
visually impaired
welfare foundation

This Integrated Report covers TRUSCO's business operations from January 1, 2021 to December 31, 2021.

Relationships with
Stakeholders

We are publishing our Integrated Report annually in thehope that our institutional investors, shareholders, andother stakeholders will better understand our businessand the process of value creation. “GAMBARE!! JAPANESE MONODZUKURI” is our corporate message. In
the Integrated Report, we emphasize the story behind
our vision, which is to be a company that will continue tobe of service to the manufacturing industry in Japan thatalways provides the highest level of convenience. We
believe the source of competitiveness for an organization
is its originality. Therefore, we are building a businessmodel that makes full use of products, logistics, and digital technologies. We hope that this report will give yousome insight into our business and our approach to gaining a competitive advantage.

From left to right: Sous-chef Toshiro Sato (TRUSCO
Resort and Spa Hakone) and Head Chef Taro
Kinoshita (TRUSCO Resort and Spa Hakone and
TRUSCO Resort and Spa Karuizawa)

Corporate
Governance

Period Covered by the Report

Environmental
Efforts

Editorial Policy

Corporate
Governance andSocial Contributions

Be an Ultimate Master Wholesale(Management Policy)

From the Top Message in FY2003...............................................................................................

Human Resources

Becoming the Company We Want to Be- Capability Targets - .................................................................................................... 18
Continuing to Provide Support Regardless of the Times- Sustainability - .................................................................................................................... 20
Thinking Outside the Box - A History of Value Creation - .... 24
External Evaluation ............................................................................................................ 26

For the Embodiment of “TRUST COMPANY”(Corporate Governance and Social Contributions) 71
Environmental Efforts
72
Corporate Governance74
Relationships with Stakeholders
83

Spirit of Management

Digital Service

To Achieve “Our Ambitions” (Value Creation) 13
Business Flow
14
Helping People and Society - Value Creation Model - 16

Medium-term Strategy - TRUSCO HACOBUne Project - .... 30
Product Strategy .................................................................................................................... 32
Distribution Strategy ....................................................................................................... 44
Sales Strategy ............................................................................................................................. 50
Digital Service Strategy ............................................................................................. 56
Human Resources Strategy .............................................................................. 62

Company Earning Your Trust

Sales

Top Message
Organizational Chart .......................................................................................................
Origin of the Corporate Name TRUSCO andSpirit of Management ................................................................................................... 11
Company Overview .......................................................................................................... 12.................................................................................................................................

COMPANY

Distribution

Our Policy

TRUST

Products

Our company was founded as Nakayama Kiko Shokai in
1959 before it was incorporated as Nakayama Kiko Co.,
Ltd. in 1964.
The company then changed its name to TRUSCO
NAKAYAMA Corporation in 1994.
TRUSCO was coined from the words “Trust” and“Company” to convey our commitment to building acompany that earns trust.
This name demonstrates our corporate approach toearn the trust of everyone we associate with in order tobecome a company that continues to grow in the future.

Value Creation Management
PolicyOrigin of the Corporate Name TRUSCO

Top photo: Final note payable (August 2003)
Bottom photo: Final note receivable(December 2005)

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11

Organizational Chart As of June 1, 2022

*1 Board Brain?

AdvisorBorn January 16, 1955
67 years old; 44 years and 2 months at Trusco
Career Summary
1978: Joined the Company
1996: Tokyo Branch Office Manager
1998: General Manager, Corporate Planning
Department
1999: Executive Officer & Head of the Corporate
Planning Division
2003: Executive Officer & Head of the Corporate
Planning Division
2004: Division Head, Distribution Dept.
2007: Executive Director & Division Head, Product
Division
Advisor2017: Senior Executive Director & General Manager,
Business Management Department
2019: Senior Executive Director & Assistant to the President
2020:
Advisor(present)
Advisors
We have established the position of Advisor. Advisors serve the purpose of advising executive
level managers based on their knowledge and experience. Although the mandatory retirement
age for our executives is 65, they can remain employed until the age of 70 if they so desire.

Takashi Nakai

President

At TRUSCO Nakayama, we call outside directors “Board Brains.”
This term alludes to our hope that they will provide advice and support based on theirabundant experience and knowledge, and contribute to the Company’s development.

Born December 24, 1958
63 years old; 41 years and2 months at Trusco

Outside Director
Born March 30, 1956
66 years old

Born November 15, 1949
72 years old

Born August 19, 1953
68 years old

Career Summary
1978: Joined Kyowa Bank, Ltd.
(Currently Resona Bank, Ltd.)
2003: Chief Credit Officer, Osaka No. 3
Loan Department, Resona Bank, Ltd.
2007: Full-time Auditor of the Company
2022: Advisor (present)

Career Summary
1975: Joined McKinsey & Company
1996: Founded ForeSight & Company
President (present)
2016: Outside Director of the Company(present)
2017: Founded the Society for Problem
Solving Proficiency
Proficiency, Representative Director(present)

Career Summary
1976: Joined Hagihara Industries Inc.
1984: President, Hagihara Industries Inc.
2010: President & CEO of Hagihara Industries Inc.
President & Executive Officer
2016: Chairman of the Hagihara Industries Inc.
2016: Outside Director of the Company (present)
2018: President of Toyo Heisei Polymer, Co.,
Ltd. (present)
2020: Outside Director of the Wavelock
Holdings Co., Ltd. (present)
2021: Chairman of the Toyo Heisei Polymer,
Co., Ltd. (present)
2022: Chairman of the Hagihara Industries
Inc. (present)

Masaki Matsuda

Outside Director
Board Brain(BB)*1
ForeSight & Company, Ltd.
President

To be appointed as Advisor at the 59th Ordinary General Meeting of
Shareholders which is scheduled to be held on March 18, 2022.

Kenichi Saito

AdvisorOutside Director
Board Brain(BB)*1
Hagihara Industries Inc.
Chairman

Kuniaki Hagihara

Board of Auditors Meeting

Career Summary
1981: Joined the Company
1984: Director
1987: Executive Director
1991: Representative Director andSenior Executive Director
1994: President (present)

Born March 5, 1962
60 years old
Career Summary
1984: Joined Nissan Motor Co., Ltd.
2001: Joined LVJ Group K.K. (currently Louis
Vuitton Japan K.K.)
2009: Representative Director, Shaldan Co., Ltd.
2010: Joined S.T. CORPORATION
2013: Director & Representative Executive
Officer and President,
S.T.CORPORATION
Director, Shaldan Co., Ltd. (present)
Outside Director
2020: Outside Director of the Company (present)
Board Brain(BB)*1
Chairman of the Board of Directors, 2021: Chairman of the Board of Directors,
and Representative Executive Officer
Representative Executive Officer andand President, S.T.CORPORATION
President, S.T.CORPORATION(present)

General Meeting of Shareholders
Born January 3, 1958
64 years old

Board of Directors Meeting
PresidentInternal Auditing
Office(3 staffs)

President

AuditorFull-time Auditor

Tetsuya Nakayama

Sustainability Committee

Takako Suzuki

Akira Takada

Born January 27, 1947
75 years old

Born January 22, 1963
59 years old; 36 years and 2 months at Trusco
Career Summary
1986: Joined the Company
1996: Office Manager, Maebashi Sales Office
1997: Office Manager, Ota Sales Office
1998: Branch Office Manager, Tokyo Branch
2004: Executive Officer & General Manager, NB Product Department
2007: Director & General Manager, Sales Department
2013: Executive Officer & General Manager, Factory
Sales Division (East Japan)
2016: Executive Officer & General Manager, Accounting Division
2019: Executive Officer & General Manager, Corporate Planning
Division, and General Manager, Accounting Division
2019: Executive Officer & General Manager, Factory Sales Division andGeneral Manager, Tokyo Metropolitan Area Distribution Division
2022: Executive Officer
2022: Full-time Auditor of the Company (present)
To be appointed as Full-time Auditor by a resolution at the 59th Ordinary General
Meeting of Shareholders which is scheduled to be held on March 18, 2022.

Career Summary
1981: Joined Nomura Securities Co., Ltd.
2001: Head, IB Consulting Office, Nomura
Securities Co., Ltd.
2009: Managing Director of IB Business
Development Department, Nomura
Securities Co., Ltd.
2012: Director of Nomura Investor
Relations Co., Ltd.
2015: Advisor of Nomura Investor Relations
Full-time Auditor
Co., Ltd.
2018: Full-time Auditor of the Company(present)

Hiroaki Imagawa

Central Health and Safety Committee

Part-time Auditor

Hiroho Kamakura

Career Summary
1971: Joined Tohmatsu Aoki & Co.
(Currently Deloitte Touche Tohmatsu
LLC)
1973: Registered as Certified Public
Accountant
2012: Part-time Auditor, Trusco Nakayama
Corporation (present)Part-time Auditor, Trusco Nakayama
Corporation (present)Part-time Auditor, Yushin Precision
Equipment Co., Ltd. (present)
2013: Part-time Auditor, Fujio Food System
Co., Ltd. (present)
2018: Part-time Auditor, SymEnergy Inc.
(present)

Department General Manager
Director
General Manager of the Business
Management Department andGeneral Manager of the Digital
Service Strategy Department

Atsushi Kazumi

Born September 10, 1970
51 years old; 29 years and 2 months at Trusco
Career Summary
1993: Joined the Company
2001: Office Manager, Tsuchiura Sales Office
2002: Office Manager, Kanazawa Sales Office
2006: Branch Office Manager, Osaka Branch
2010: Section Manager, Catalog Media Section and Section Manager, DOTKUL Section
2013: General Manager, e-commerce Sales Division
2014: General Manager, e-Business Sales Division
2017: Executive Officer & Head e-commerce manager, e-Business Sales Division
2017: Executive Officer & General Manager, Information Systems Division
2019: Executive Officer & General Manager, Information Systems Division
2019: Director & General Manager, Information Systems Division
2020: Director, General Manager of the Business Management Department and General Manager of the Digital
Service Strategy Department & General Manager of the Digital Promotion Division
2021: Director, General Manager of the Business Management Department and General Manager of the Digital
Service Strategy Department (present)

Business Management Dept.
Corporate Planning Division

Personnel Division

Senior Executive Officer
General Manager of the
Product Division

Administration Division(93 employees in total)*2

Accounting Division

Tatsuya Nakayama

Digital Service Strategy Department (52 employees in total)

Product Dept.

Digital Promotion DivisionTokyo Product Division

Osaka Product Division

Overseas Product Division

General Manager of the
Osaka Product Division

General Manager,
Overseas Product Division

General Manager of the
Corporate Planning Division

General Manager of the
Personnel Division

General Manager of the
Administration Div. andManager of the Property Section

General Manager,
Accounting Division

General Manager of theInformation Systems Division

General Manager,
Digital Promotion Division

General Manager,
Tokyo Product Division

Atsushi Shimozu

Tomoya Kita

Mikio Adachi

Tetsuhiro Mori

Takayuki Kimura

Atsuhiro Yamanaka

Fumiaki Matsubara Koshiro Aoyama Norihiro Higashi

Born December 25, 1978
43 years old; 20 years and2 months at Trusco

Born December 24, 1978
43 years old; 21 years and2 months at Trusco

Born September 20, 1969
52 years old; 28 years and 2 months at Trusco

Born March 27, 1966
56 years old; 3 years and5 months at Trusco

Born June 26, 1973
48 years old; 24 years and2 months at Trusco

Born September 21, 1974
47 years old; 24 years and2 months at Trusco

Born July 21, 1980
41 years old; 18 years and2 months at Trusco

Career Summary
2002: Joined the Company
2011: Branch Office Manager,
Edogawa Branch
2013: Deputy Manager, Management
Planning Section
2014: Section Manager, General
Affairs Section, Osaka Head
Office, Section Manager, Legal
Affairs Section, and Section
Manager, Vehicle Operation
Management Section
2021: Section Manager,
Management Planning
Section and Section
Manager, IR Section
2021: General Manager of the
Corporate Planning
Division, Section Manager,
Management Planning
Section, and Section
Manager, IR Section
2021: General Manager, Corporate
Planning Division (present)

Career Summary
2001: Joined the Company
2010: Branch Office Manager,
Kofu Branch
2016: Planet Tokai Logistic Center
Manager
2019: Section Manager, Human
Resources Development
Section, Section Manager,
Secretarial Section, andSection Manager, CSR
Section2021: Section Manager, Human
Resources Development
Section, Section Manager,
Secretarial Section, Section
Manager, CSR Section, andSection Manager, Recruit
Section2022: General Manager of the
Personnel Division. (present)

Career Summary
2019: Joined the Company
2019: Manager of the Financial
Management Section
2021: General Manager of the
Accounting Division(present)

Career Summary
1998: Joined the Company
2011: Branch Office Manager,
Yamaguchi Branch
2012: Branch Office Manager,
Ube Branch
2013: Section Manager, Human
Resources Development
Section, Section Manager,
Secretarial Section andSection Manager,
Environmental
Management Section
2019: General Manager,
Information Systems
Division (present)

Career Summary
1998: Joined the Company
2008: Branch Office Manager,
Tsuchiura Branch
2012: Branch Office Manager,
Minamiosaka Branch
2018: Section Manager, Sales
Planning Section
2021: General Manager, Digital
Promotion Division(present)

Career Summary
2004: Joined the Company
2018: Branch Office Manager,
Fukui Branch
2021: Branch Office Manager,
South Osaka Branch2022: General Manager, Tokyo
Product Division (present)

Corporate Planning Dept.
Secretarial Section.
IR Section
Sustainability Promotion Section(12 employees)
7

Personnel Dept.
HR Support Section
Recruitment Section.
Human Resources Development
Section.
Healthcare Section(19 employees)

Integrated Report 2022

Career Summary
1994: Joined the Company
2002: Office Manager, HC Nagoya Sales Office
2004: Office Manager, HC Niigata Sales Office
2007: Branch Office Manager, HC Tokyo Branch
2008: Office Manager, Matsudo Sales Office
2011: Planet South Kanto Logistic Center Manager
2013: Planet North Kanto Logistic Center Manager
2016: General Manager, Factory Sales
Division (Central Japan)
2018: General Manager, Factory Sales
Division (Shinshu, Hokuriku, and Tokai)
2019: General Manager, Administration Division
2021: General Manager of the Administration Div.
and Section Manager, Property Section
Tokyo Management Section
Osaka Management Section
Property Dept.
TRUSCO Resort and Spa Hakone
Kyoto Kaguraoka Rengetsuso
TRUSCO Resort and Spa Karuizawa(27 full-time employees; 11 part-time staff)
Trusco Nakayama Health Insurance Association
Manager

Accounting Section.
Finance Section.
(18 employees)

Digital Promotion Section.
UX Platform Development Section.
(12 employees)

IT Planning Section.
System Management Section.
Infrastructure/Network
Management Section
Data Management Section.
(38 employees)

Osaka NB Product Section
Osaka PB Product Section
PB Quality Assurance Dept.
Stock management Section
Osaka Supplier Development Dept.
Product DB Platform Development Office
Orange Book Section.
Orange Book.com Section.
Customer Consulting Section.
(86 employees)

Akiko Tani

Born May 6, 1981
40 years old; 9 years anda month at Trusco(2 employees on loan)*2 Includes staff on loan in each figure provided.

Career Summary
1998: Joined the Company
2008: Branch Office Manager,
Kumagaya Branch
2012: Branch Office Manager,
Toyama Branch
2016: Section Manager, Tokyo PB
Product Section andSection Manager, PB
Product Design Section
Tokyo NB Product Section
2021:
DeputyGeneral Manager,
Tokyo PB Product Section
Osaka Product Division
PB Product Design Section.
Tokyo Supplier Development Dept. 2021: General Manager, Osaka
Product Division and(47 employees)
Section Manager, Orange
Book Section
2022: General Manager, Osaka
Product Division (present)

8

Director
General Manager of theSales Department

Career Summary
2013: Joined the Company
2018: Branch Office Manager, Internet Sales Tokyo Branch
Division 1
2019: General Manager of Corporate Planning Division andAccounting Division
2021: Senior Executive Officer & General Manager, Product
Division (present)

Born July 7, 1969
52 years old; 29 years and 2 months at Trusco

Director
General Manager of theDistribution Department

Career Summary
1993: Joined the Company

Kazuo Nakai 2002: Office Manager, HC Niigata Sales Office

Sales Department
Sales Planning Division/e-Business Sales Division

Factory Sales Division

Home Center Sales Division

General Manager, Factory Sales
Division (East Japan)

General Manager, Tokyo Metropolitan
Area Factory Sales Division

General Manager, Factory Sales
Division (Central Japan)

General Manager,
Factory Sales Division (Kinki)

General Manager, Factory Sales
Division (West Japan)

Masashi Yamamoto

Kiyonori Unto

Yoshiki Kimura

Yutaka Yoneda

Toshiharu Sakai

Masatoshi Fujita

Born October 16, 1978
43 years old; 18 years and2 months at Trusco

Born May 27, 1973
48 years old; 26 years and2 months at Trusco

Born February 9, 1962
60 years old; 35 years and6 months at Trusco

Born September 2, 1980
41 years old; 19 years and2 months at Trusco

Born November 6, 1975
46 years old; 23 years and2 months at Trusco

Born August 17, 1976
45 years old; 23 years and2 months at Trusco

Career Summary
2004: Joined the Company
2013: Branch Office Manager,
Koyama Branch
2015: Representative Office
Manager, Germany
Representative Office2022: General Manager, Overseas
Product Division (present)

Career Summary
1996: Joined the Company
2004: Office Manager, Hamamatsu
Sales Office
2010: Chief, Corporate Auditor's Office
2010: Section Manager,
Administration Section
2014: Planet Tohoku Logistic Center
Manager
2018: General Manager, Tokyo
Metropolitan Area Distribution
Division
2019: General Manager of theOverseas Division andGeneral Manager, Marketing
Division
2020: General Manager of thee-Business Sales Division
2022: General Manger, Sales Planning
Division and General Manager,
e-Business Sales Division(present)

Career Summary
1986: Joined the Company
1996: Office Manager, Fukui Sales
Office2004: Office Manager, Chiba
Sales Office
2008: Branch Office Manager,
Okayama Branch
2011: General Manager, Factory
Sales Division (East Japan)
2013: General Manager, Overseas
Division
2019: General Manager of Factory
Sales Division andEast Japan Distribution
Division
2022: General Manager, East
Japan Factory Sales
Division (present)

Career Summary
2003: Joined the Company
2012: Branch Office Manager,
Kurume Branch
2015: Branch Office Manager,
Tosu Branch
2016: Section Manager, PR
Section, Section Manager,
IR Section, and Section
Manager, Corporate Design
Section2017: Section Manager,
PR/IR Section
2019: Branch Office Manager,
Osaka Branch2022: General Manager, Tokyo
Metropolitan Area Factory
Sales Division (present)

Career Summary
1999: Joined the Company
2005: Office Manager, Shiga
Sales Office
2010: Section Manager,
Recruitment Section
2013: Section Manager,
Management Planning
Section2017: General Manager, Tokyo
Product Division (present)
2022: General Manager, Central
Japan Factory Sales
Division (present)

Career Summary
1999: Joined the Company
2008: Office Head, Tottori OfficeHC
2010: Office Manager, Yonago
Sales Office
2011: Chief, Auditor's Office
2012: Section Manager, PR
Section, Section Manager,
IR Section, andSection Manager, Corporate
Design Section
2016: Branch Office Manager,
Tosu Branch
2020: Branch Office Manager,
Nagoya Branch2022: General Manager, Factory
Sales Division (Kinki)(present)

Sales Planning Dept.
Naojiro Section
MRO Stocker Promotion
Section(8 employees)

InterSales Tokyo
InterSales Osaka
MRO Supply Tokyo(57 full-time employees;
3 part-time staff)

Sapporo, Hachinohe, Sendai,
Akita, Koriyama, Mito
Utsunomiya, Isezaki, Niigata,
Niigata-kita, Okaya, and Ueda
(142 full-time employees;
23 part-time staff)

Kashima, Omiya, Satte, Chiba,
Matsudo, Tokyo, Keihin, Atsugi,
Shizuoka, and Fuji
(154 full-time employees;
31 part-time staff)

Toyama, Kanazawa, Fukui,
Hamamatsu, Nagoya, Okazaki,
Komaki, and Yokkaichi(120 full-time employees;
28 part-time staff)

The number of employees in parentheses and site information are current as of January 1, 2022.

Ryuo, Kyoto, Osaka, East Osaka,
South Osaka, Kobe, and Himeji(115 full-time employees;
9 part-time staff)

Overseas Division

Born December 7, 1971
50 years old; 28 years and 2 months at Trusco
Career Summary
1994: Joined the Company
2003: Branch Office Manager, Amagasaki Sales Office
2007: Branch Office Manager, Kokura Sales Office
2010: Head, Corporate Auditor's Office
2011: Section Manager, Management Planning Section
2013: General Manager, Information Systems Dept.
2017: Executive Officer & General Manager, Information
Systems Dept.
2017: Executive Officer & General Manager, Distribution Department
2019: Director & General Manager, Distribution Department
2021: Director, General Manager of the Product Department
and General Manager of Distribution Department
2021: General Manager, Distribution Department (present)

Distribution Division(917 employees in total)*2

General Manger, Sales Planning
Division and General Manager of thee-Business Sales Division

Overseas Purchase Dept.
Germany officeTaiwan office (scheduled to beopened at the end of 2022)
Thailand office(14 employees)

Hideki Naoyoshi

2004: Branch Office Manager, HC Osaka Branch
2008: Section Manager, Personnel Section
2008: Section Manager for the Personnel Section and Health Care Section
2013: General Manager, Corporate Planning Division
2017: Executive Officer & General Manager, Corporate Planning Division
2019: Executive Officer & General Manager, Business Management Department
2019: Director & General Manager, Business Management Department
2020: Director & General Manager, Sales Department
Executive in charge of TRUSCO NAKAYAMA CORPORATION (THAILAND) LIMITED. (present)
Executive in charge of PT. TRUSCO NAKAYAMA INDONESIA (present)
2021: Director, General Manager of the Sales Department, General Manager of the Home Center Sales Division, and General Manager of the Distribution Division
2022: Director & General Manager, Sales Department (present)(150 employees in total)

Information Systems Division

Born February 23, 1976
46 years old; 24 years and2 months at Trusco

Born August 4, 1985
36 years old; 9 years and 2 months at Trusco

Distribution Reorganization Department(1,634 employees in total)

Distribution Division

General Manager, Home Center
Sales Division and Branch Office
Manager, HC Tokyo Branch

General Manager,
Overseas Division

General Manager, Distribution
Reorganization Department

General Manager, East Japan
Distribution Division

General Manager,
West Japan Distribution Division

Shu Matsui

Naotsugu Kamijo

Masaya Okada Masato Otani

Takanori Hirayama

Born March 10, 1981
41 years old; 19 years and2 months at Trusco

Born August 17, 1979
42 years old; 19 years and2 months at Trusco

Born November 29, 1977
44 years old; 19 years and2 months at Trusco

Born August 17, 1976
45 years old; 22 years and2 months at Trusco

Born October 24, 1967
54 years old; 31 years and2 months at Trusco

Born April 20, 1975
46 years old; 23 years and2 months at Trusco

Career Summary
2003: Joined the Company
2016: Branch Office Manager,
Miyazaki Branch
2016: Branch Office Manager,
Utsunomiya Branch
2021: Branch Office Manager,
Komaki Branch2022: General Manager of Factory
Sales Division West(present)

Career Summary
2003: Joined the Company
2012: Branch Office Manager,
Fukui Branch
2015: Branch Office Manager, HC
Tokyo Branch2022: General Manager, Home
Center Sales Division and
Branch Office Manager, HC
Tokyo Branch (present)

Career Summary
2003: Joined the Company
2014: Branch Office Manager,
Kashima Branch
2017: Section Manager, Overseas
Sales Section
2020: General Manager, Overseas
Division and Section
Manager, Overseas Sales
Section2022: General Manager, Overseas
Division (present)

Career Summary
2000: Joined the Company
2008: Section Manager,
Recruitment Section
2010: Branch Office Manager,
Itabashi Branch
2015: Planet Tokai Logistic Center
Manager
2016: Planet Saitama Preparation
Room Manager
2018: Planet Saitama Logistic
Center Manager
2021: General Manager,
Distribution Reorganization
Division (present)

Career Summary
1991: Joined the Company
2008: Office Manager, Kagoshima
Sales Office
2012: Branch Office Manager,
Chiba Branch
2014: Section Manager, Personnel
Section and Section
Manager, Health Care Section
2018: General Manager, Factory
Sales Division (Kinki Area)
2019: General Manager of Factory
Sales Division andDistribution Division (Kinki)
2021: General Manager of Factory
Sales Division and Distribution
Division (Chubu, Kinki)
2022: General Manager, East Japan
Distribution Division (present)

Career Summary
1999: Joined the Company
2005: Office Manager, Akashi
Sales Office
2010: Section Manager,
IT Planning Section
2015: Branch Office Manager,
e-Business Tokyo Branch
No. 1
2016: Branch Office Manager, Internet
Sales Tokyo Branch No. 1
2018: Section Manager, Personnel
Section and Section
Manager, Health Care Section
2022: General Manager, WestJapan Distribution Division(present)

Yonago, Okayama, Hiroshima,
Fukuyama, Ube, Shunan,
Tokushima, Takamatsu,
Matsuyama, Fukuoka, Kokura,Tosu, Nagasaki, Kumamoto,
Oita, Kagoshima, and Okinawa(142 full-time employees;
31 part-time staff)

HC Tokyo, HC Okazaki, HC Fukuoka,
HC Osaka, and HC Okinawa*Holds positions at three locations,
including the Factory Sales Division.
(33 full-time employees; 1 part-time staff)

Overseas Subsidiaries Officer in charge at TRUSCO NAKAYAMA Corporation: Kazuo Nakai
TRUSCO NAKAYAMA CORPORATION
PT. TRUSCO NAKAYAMA INDONESIA(THAILAND) LIMITED
President

President

Kazuaki Harada

Yohei Takuno

Naotsugu Kamijyo, Director

Naotsugu Kamijyo, Auditor

Born November 8, 1980
41 years old; 19 years and2 months at Trusco
Employees: 24(3 employees on loan and 21 local staff)

9Overseas Sales Dept.
*Overseas subsidiary service center(6 employees)

Logistics Planning Section.
Delivery Management Dept.
Logistics Platform Development
Office and P Aichi Preparation
Office(13 employees)

Born May 16, 1986
35 years old; 12 years and2 months at Trusco
Employees: 20(3 employees on loan and 17 local staff)

P (Planet), BUC (Backup Center) and STC (Stock Center) are abbreviations for our distribution centers.

P Hokkaido, P Tohoku, P North
Kanto, P Saitama, P East Kanto,
P South Kanto, and Tokyo BUC
HC East Japan Distribution Center
Utsunomiya STC
Koyama STC
Omiya STC
(240 full-time employees;
550 part-time staff)

P Tokai, P Nagoya, P Shiga,
P Osaka, P Kobe, P Sanyo, andP Kyushu
HC West Japan Distribution Center
HC Kyushu Distribution Center
Toyohashi STC, East Osaka STC,
Nara STC, Okayama STC,
Takamatsu STC, Hakata STC, andKurume STC(257 full-time employees;
572 part-time staff)

Integrated Report 2022

10

Company Overview As of December 31, 2021■

Company name

TRUSCO NAKAYAMA Corporation■

Head store

4-28-1, Shimbashi, Minato-ku, Tokyo■

Head Offices

Tokyo Head Office: Trusco Fiorito Bldg., 4-28-1, Shimbashi, Minato-ku, Tokyo 105-0004 (registered ascompoany head office)Osaka Head Office: Trusco Glen Check Bldg., 1-34-15, Shinmachi, Nishi-ku, Osaka-shi, Osaka 550-0013■

Branches

Japan: 88 (2 head offices, 59 sales branches, and 27 distribution centers)
Overseas: 5 (Names of our overseas subsidiaries: TRUSCO NAKAYAMA CORPORATION (THAILAND)
LIMITED, PT.TRUSCO NAKAYAMA INDONESIA; Supplier business development officelocations: Germany, Taiwan (to be established by the end of 2022), Thailand, and the US)(as of January 1, 2022)■

Capital$45 million; Listed on the First Section of the Tokyo Stock Exchange (Securities code: 9830)■ Shareholders’ equity ratio

64.0% (as of December 31, 2021)■

Employees

Consolidated: 2,906 (10 officers, 1,632 full-time employees; 1,264 part-time staff)■

FoundedMay 15, 1959■

EstablishedMarch 2, 1964

■ Closing date for fiscal year

December 31

■

Sales

Consolidated: $2,066 million (for Fiscal Year Ending December 31, 2021)/Ordinary Income of $2,193
million planned for Fiscal Year Ending December 31, 2022■

Ordinary Income

Consolidated: $122 million (for Fiscal Year Ending December 31, 2021)/Ordinary Income of $131 million
planned for Fiscal Year Ending December 31, 2022

■

Bank

Mizuho Bank, Resona Bank, Bank of Tokyo-Mitsubishi UFJ, Sumitomo Mitsui Banking, Sumitomo Trust & Banking■ Accounting Auditor

Deloitte Touche Tohmatsu LLC■

RatingA (Rating and Investment Information, Inc.)■

Suppliers

2,966 (2,662 suppliers in Japan, 304 overseas suppliers)■

Customers

Dealers of machine tools, construction materials, electrical materials, tubing materials, online shops,
and home centers etc.; about 5,527 customers■

Business Areas■

Officers■ Senior Executive Officer

12

Wholesale of machine tools, distribution equipment, environmental safety equipment, and other equipment,along with the planning and development of the products of company’s own brand TRUSCOAs of June 1, 2022

“Business must serve people and society”

To Achieve “Our Ambitions”(Value Creation)

Founded as a latecomer to the industry,
thinking outside the box has been our core approach from the start.
We have provided a variety of services to meet the needs ofour customers and the manufacturing industry of the times.
In the future, we will continue to aim to be a company that always provides the highest level ofconvenience in order to continue to be of service to the manufacturing industry in Japan,
based on our belief that business must serve people and society.

Business Flow..............................................................................................................................................................................................................

Helping People and Society - Value Creation Model -.............................................................

14
16

Full-time Auditor

President

Tetsuya Nakayama

Full-time Auditor

Akira Takada

Director

Kazuo Nakai (General Manager of theSales Department)

Part-time Auditor

Hiroaki Imagawa

Director

Atsushi Kazumi (General Manager ofthe Business Management Department
and General Manager of the Digital
Service Strategy Department)

Director

Hideki Naoyoshi (General Manager ofthe Distribution Department)

Outside Director

Kenichi Saito
ForeSight & Company, Ltd.
President

Outside Director

Kuniaki Hagihara(Chairman, Hagihara Industries Inc.)

Outside Director

Takako Suzuki(President, S.T.CORPORATION)(

Our Policy

Hiroho Kamakura...........................

18...................................................................................................................................................................................................

20

Becoming the Company We Want to Be - Capability Targets -Continuing to Provide Support Regardless of the Times- Sustainability -.................................................

24............................................................................................................................................................................................

26

Thinking Outside the Box - A History of Value Creation -)External Evaluation

Tatsuya Nakayama General Manager of the Product Department

Integrated Report 2022

Integrated Report 2022

13

TRUSCO NAKAYAMA is a specialized trading company that procures PRO TOOL from suppliers and sells them tomachinery tool dealers, Online shopping, home centers, and other customers. We ensure prompt, smooth and reliable delivery to manufacturing sites all over Japan. As a wholesaler, we have developed a unique business model toimprove the convenience of our customers, suppliers, and users.

Plugging into TRUSCO to start doing business with us

Customers
Sales Total

P.94$2,066 million
Products•Number of different products in inventory•Catalog Listings

Suppliers in Japan(+222 Year-on-Year)•Product Data

We deliver PRO TOOL to factories,
construction sites and other manufacturing
sites through machinery tool dealers, etc.

Sales: $1,482 million

Constitution ratio: 71.8%
No. of Companies: 4,871

Machinery Tool Dealers

These customers handle equipment andsecondary materials that are used byfactories in the manufacturing industry.

Welding Material Dealers
These customers handle welding
materials, welding machines, andhigh-pressure gas products.

(Available TRUSCO Orange Book Items:
2,760,000 items

e-Business RouteDistribution

We deliver PRO TOOL to factories and general consumers through online shops.

(Fixed-Cost Based Distribution with 2 runs a day)

Manufacturing Industry,
Construction-related Businesses, etc.

etc.

Manufacturing Industry,
General Consumers, etc.

(e-commerce/electronic purchases)
Sales: $402 million
Constitution ratio: 19.5%
No. of Companies: 185

Online Shops•Number of delivery runs 278(TRUSCO delivery runs included in above: 117 (42.1%))(+92 Year-on-Year)

Sales•Sales Branches in Japan 59*•Overseas Subsidiaries: 2•More sales channels that normallyfound in the industry•One-stop Ordering
Digital Service•Real Time Data Linkage

We sell products to basic consumers
through home centers and pro shops.

Sales: $165 million

Constitution ratio: 8.0%
No. of Companies: 104

Home Center
Pro Shops
These retailers focus on sales of PRO
TOOLs products for outdoor use.

Outdoor Work, General Consumers, etc.

Overseas Route
Delivering products to manufacturing sites around the world

Sales: $15 million
Constitution ratio: 0.7%
No. of Companies: 367

Overseas Dealers
Japanese and non-Japanesecustomers that carry machinery
tools outside of Japan

Overseas Manufacturing Industry, etc.

Corporate Data

(Products and Sales)•Big Data Utilization
Sales: Approx. 130,000 daily
Estimates: Approx. 30,000 dailyHome center route

The Nakayama
visually impaired
welfare foundation

Ireland, America, United
Kingdom, Italy, Israel, India,
Austria, Netherlands,
Canada, Greece, Singapore,
Switzerland, Sweden, Spain,
Sri Lanka, Slovakia, Thailand,
Denmark, Germany, New
Zealand, France, Vietnam,
Belgium, Poland, Portugal,
Malaysia, Norway, South
Korea, Taiwan, and China

2,830,000 units 3,390,000 orders per year

Relationships with
Stakeholders

30 countries
304 companies•Number of Units delivered via Direct Delivery Service

Corporate
GovernanceSuppliers Overseas

Environmental
Efforts•Logistic Centers in Japan 27*•Same-day Delivery

etc.

Corporate
Governance andSocial Contributions

2,662 companies(A circulation of TRUSCO Orange Book
published 180,000 )Factory Route

Human Resources(500,000 products, 48,780,000 units, $383 million)

5,527companies

Digital Service

Plugging into TRUSCO will easily
allow you to utilize our resources∞

UnlimitedSales(+314 Year-on-Year)[Sales Agents][Wholesale]
Consolidated

Users

Distribution

2,966 companies

services. Customers can centrally procure products from2,966 suppliers and can also utilize functions such as sameday delivery and user-direct delivery services to expand theirown businesses. We will continue to pursue further convenience for our customers and suppliers by optimizing the
distribution of PRO TOOLs.

Products

Customers and suppliers can easily access our management
resources and use them for their businesses in a way thatsuits their characteristics and business type. In addition to
the ability to sell their products to 5,527 customers, suppliers
can also receive a wide range of sales support services suchas product data linkage, inventory holding, and catalog listing

Suppliers[Manufacturers]

Value Creation Management
PolicyBusiness Flow

As of December 31, 2021
As of December 31, 2021
* As of January, 2022
14

Integrated Report 2022

As of December 31, 2021

Integrated Report 2022

15

Helping People and Society
As a Pro Tools supplier, we aim to be an indispensable
company for Japanese manufacturing sites by heightening our ability to supply PRO TOOLs and providing
convenience for our customers.

Becoming the Company We Want to Be(Capability Targets) P.18

Financial Results (Financial capital)•Inventory Value: $383 million (Consolidated) •Total number of items in inventory: 48,780,000 items•Available TRUSCO Orange Book Items: 2,760,000 items•Ordinary income (consolidated): $122 million •Dividends: $0.31

Deliver (Distribution capital)•Logistic Centers in Japan: 27 locations •Branches with inventory: 29 locations•Number of total delivery runs: 278 vehicles (TRUSCO delivery runs included inabove: 117 vehicles, 42.1%)•Employees: Consolidated 2,906

Improving Convenience•Number of Customer Companies: 5,527•Stock Hit Rate: 91.3% (+0.3 pt year on year)

Connecting (Digital capital)

Support (Product capital/Nature capital/Social capital)•Total Number of suppliers: 2,966 companies (Overseas: 304 companies)•TRUSCO Orange Book: 180,000 (2022 edition, total number published)

Respond (Human capital/Social capital)(Officers: 10 / Full-time staff: 1,632 / Part-time Staff: 1,264 )(Distribution capital, Intellectual capital, and Digital capital)

P
T
U
T
U
O

•Delivery Lead Time: 20 hrs. 6 min. 53 sec.

through a cycle

Business Activities

Accelerating distribution innovation utilizing people
and systems in pursuit of ultimate type of
immediate delivery that no one has yet experienced

Aiming to become a supplier that is needed by ourcustomers by accurately identifying their changing
needs

Digital Service Strategy P.56

Human Resources Strategy P.62

Corporate Governance P.71
and Social Contributions

To respond to the unchanging customer demandthrough our digital capabilities

To become a company that continues to provide
support regardless of the times with our people(originality) as a starting point

Being a trusted company through our unique governancesystem, environmental initiatives, and highly transparent
information dissemination

Integrated Report 2022

Material issues

P.22•Total optimization of the supply chain•Planning and development of products that
respond to diversifying needs•Development of environments and humanresources to enable them to fully display theirpersonal abilities•Environmental actions through businessactivities•Contribution to stakeholders and local
communities•Governance based on a stance ofShushazentaku (choosing the proper action)

Integrated Report 2022

Corporate Data

Solving issues throughout the entire supply chain
with our unique product lineup and product data

P.50

The Nakayama
visually impaired
welfare foundation

Sales Strategy

P.32

Relationships with
Stakeholders

Distribution Strategy P.44

Product Strategy

E
TCO M

Corporate
GovernanceSociety/Local Environment

Environmental
Efforts

S
SINE S

Corporate
Governance andSocial Contributions

16

OU

Digital Capabilities

Contribution

BU

Abundant line-up and inventory

Courteous, Polite, and Reliable

P.2

Business must serve
people and society

Never Changing Our Principles (Unchanging demands of the market)
Convincing prices

Human Resources

Our Policy

Although common sense sometimes changes, our principles remain unchanged.
Rapid, reliable delivery•Renewable Energy Power Self-sufficiency Rate: 16.5%•Naojiro Repair Service Sales: $14 million•Number of Companies Appearing on “TRUSCO unknown gulliver” (TV program):
198 (as of February 28, 2022)
As of December 31, 2021

Digital Service

Aim for sustainable growthCommon sense might change but
our principles remain unchange.
High-level of convenience(Social capital/Nature capital)•Automated Estimate Ratio: 18.2% (+10.1 pt year on year )•Shareholders’ equity ratio: 64.0 % •Rating: A (R&I)•Turnover rate: 5.2%
•Percentage of female employees among full-time employees: 35.0 %•Managerial Retirement Age: 62 Full-time Staff Retirement Age: 65
Employment Extension: 70 Part-time Staff: 75

Social and Environmental Value Creation•System order intake ratio: 85.3% (+1.4 pt year on year

•Trusco Power Generation Installations: 19 •Number of shareholders: 14,406
As of December 31, 2021

A workplace where various humanresources can flourish (Human capital)

Sales

U
P
T
N
I

•Digital Expenditures (most recent three periods): $46 million•Number of systems: 60 •Product Data Number: 3,500,000 items•Number of system connected companies: 10,864•Sales (consolidated): $2,066 million

Distribution

Communicate (Intellectual capital)

Products

Stock (Product capital/Social capital)•Number of items in inventory: 500,000 items

Results

Management resources

GAMBARE!! JAPANESE MONODZUKURI

Value Creation Management
Policy- Value Creation Model -We want to be of service to the manufacturing industry in Japan thatalways provides the highest level of convenience regardless of the times.
Therefore, we strive to be a company that always
provides the highest level of convenience.

17

We believe that in order to constantly provide the highest level of convenience as a unique company, our priority
should be capability targets, which tell us the types of capabilities that we should possess as a company, rather
than to numerical targets such as sales and profit figures. In order to become a company that is needed by ourcustomers and society during any era, we have set the following goals and will continue to work on achieving them.

To become a company that will be able tostore one million items in inventory by 203005

10(Inventory variance rate as of December 31, 2021: 0.43%)

We want to make our Direct Delivery
Service standard for distribution

08

To become a company with a minimal
environmental burden

Offering an abundant line-up and inventory to select from has led to therealization of one-stop shopping, which results in lower consumptionof energy and resources for procurement than purchasing products
from multiple suppliers (see p.72). In addition, by establishing a fixedcost based distribution system (see p.45), delivery is made using a fixedamount of energy regardless of the delivery volume without incurringcosts for each individual delivery as with express home delivery services.
In addition, we are expanding our Direct Delivery Service (see pages 48
and 53), an environmentally-friendly approach which reduces shipping
costs and associated work by half, and our MRO Stocker (see p.52), a tool
storage system that realizes zero delivery time. By gradually solving theissue of wastefulness hidden in distribution activities, we aim to become acompany with a small environmental burden.

Users
Customers

Message of “Environmental Conservation Through a Wholesaler-based Direct
Delivery Service”

18

Integrated Report 2022

Manufacturing sites throughout Japan are introducing MRO Stocker

11

To become a company capable of rewriting
the accepted practices, customs, accepted
opinions, and conventions of the industry

As a latecomer to the industry, we have developed our business bythinking outside the box (see p.24). The starting point that continues togenerate corporate vitality and growth is the idea that choosing majority
solutions results in ordinary results. We will continue to solve various problems with ideas that take common sense by surprise, capable of rewriting
the customs, accepted opinions, and conventions of the industry.

Integrated Report 2022

Corporate Data

Half the Delivery Time
Half the Packaging
Material AmountHalf the Shipping Fee
Half the Environmental
BurdenHalf the Labor Burden

From left to right: Seiichi Matsuo (President of Tokai National Higher Education
and Research System), Miku Hirano (CEO of Cinnamon Inc.), Tetsuya Nakayama (President of TRUSCO NAKAYAMA Corporation), and Hiratomo Miyata(President & CEO of GROUND Inc.)(At the 55th Anniversary Hall on the 3rd floor of the Tokyo Head Office of
TRUSCO NAKAYAMA Corporation)

The Nakayama
visually impaired
welfare foundation

Direct Delivery to Users

Planet South Kanto (Isehara City, Kanagawa) is designed so that it is capable of shipping products 365 days a year.

In June 2021, we announced an industry-academia collaboration with Nagoya University and capital and business alliances with GROUND Inc. andCinnamon Inc. Together with reliable partners in these rapidly changing
times, we are working to build a new distribution platform with the desire
to become a “platform holder” for the procurement of PRO TOOLs for
manufacturing sites (see p.30).

Relationships with
Stakeholders

Environmental Conservation Througha Wholesaler-based Direct Delivery Service

We aim to shorten the lead time for each order

To become a “platform holder” that supports manufacturing in Japan

Corporate
GovernanceIn general, it is common practice in the industry to deliver products thatwholesalers receive orders for from customers to users via those customers. However, in addition to long delivery times, the products need
to be reshipped and repackaged, placing a burden on the environment.
In contrast, since products are shipped directly to the users when using
our Direct Delivery Service, delivery times, packaging material amounts,
shipping costs, and the environmental burden can all be reduced by half.
We will make our Direct Delivery Service common practice and associate
it with environmental conservation (see pages 48 and 53).

Chain sling repair is handled at each distribution center (Michiko Suzuki,
Planet Tohoku)

Environmental
Efforts

With an eye on improving convenience for our customers and increasing
the number of product shipments in the future, we will establish a systemthat enables us to receive orders 24 hours a day and ship products 365
days a year. Planet South Kanto, which was rebuilt and put into operationin August 2020, is equipped with an underground parking lot with a highceiling that allows delivery trucks to enter. Facilities will be designed toallow loading and unloading even at night.

We believe that “immediate delivery is the greatest service” andhave been working to strengthen our distribution system. In the future, wewill aim to shorten lead time, the time from when an order is received to
product delivery (20 hrs., 6 min., 53 sec. as of December 31st, 2021), by
analyzing each order. We will address issues that emerge by visualizing
what immediate delivery is and establish a system capable of realizing the“fastest,” “shortest,” and “best” deliveries in the industry (see p.48).

Corporate
Governance andSocial Contributions

02

To become a company capable of receiving orders 24 hours a day and shipping
products 365 days a year

To become a company capable of realizing the “fastest,” “shortest,” and “best” deliveries in the industry

To become a company that never has totake inventory

Although inventory is currently taken only once a year, the inventory variance
rate has been reduced to 0.43% due to the sophistication of the system.
However, taking inventory of 500,000 items is a time-consuming and labor-intensive process. For this reason, the Inventory Abolition Committee has been
established within the company to eliminate the need for inventory work in the
future. We are working to improve systems and operations to achieve this goal.

Our Naojiro Repair Workshops, which have been in operation since 1998,
provide unique services designed to help reduce the environmental burden
and cut costs by prolonging the use of familiar tools and equipment (seep.53). In addition to re-grinding and calibration, Naojiro Repair Workshops
offer a wide range of services, including tape processing.

Human Resources

Location where Planet Aichi is planned for construction (Kitanagoya-shi, Aichi)(approx. 41,636 ㎡)

07(Naojiro Repair Workshops results for FY2021: $14 million)

Digital Service

04

The adoption of an AI-based quotation system in January 2020 allows us
to respond to each of the 30,000 quotation requests received from ourcustomers each day with a minimum reply time of five seconds. As of
December 31, 2021, our automated estimate ratio is 18.2%. We are continuing to improve the system so that this ratio can be increased to 34.0%
by 2025 (see p.60).

To become a company that is also actively involved in the recycling, reuse,
and return of tools and equipment

Sales

We think that the number one reason for delivery delays is that an item isout of stock. We will expand the number of different products in inventory
and move forward with creating a system for appropriate stocking madepossible through the use of AI to prevent shortages from occurring. In
addition, the majority of order and shipping errors occur when people are
involved in the process. Through the adoption of robotics and AI, we aremoving forward with automation and labor reduction, creating a systemthat is free of order and shipping based errors.

(Automated estimate ratio as of December 31, 2021: 18.2%)

09

Distribution

We are working on expanding the number of items in our inventory andstrengthening our distribution system to improve customer convenience. At
Planet Aichi, which is planned for construction, we will build a state-of-the-art
distribution system based on a different approach to distribution to establish
a system which will allow us to store one million items in inventory by 2030.

03

To become a company where products arealways in stock and never experiences
order or shipping based errors

To become a company capable of quickly
providing estimates

Products

01

06

Value Creation Management
PolicyBecoming the Company We Want to Be -Capability Targets -19

Responding to risks and opportunities attributed with climate change
In order to continue to be of service to people and society in any era, we are resolving social issues and contributing to local communities based on our basic sustainability policy. Based on the TCFD recommendations* for climate change, we also disclose the following four items: “Governance,” “Strategy,” “RiskManagement,” and “Indicators and Targets.”

Basic Sustainability Policy ~TSV (TRUSCO Shared Value)~
We aspire to be a PRO TOOLs supplier that continually serves Japanese manufacturing in every era. Under the
motto, “Business must serve people and society,” we will create both social value and corporate value through ourbusinesses to help resolve social issues and build sustainable local communities.
*The term TRUSCO Shared Value (TSV) was created by combining TRUSCO and Creating Shared Value (CSV).

*Task Force on Climate-related Financial Disclosures: An international framework that promotes disclosure of risks and opportunities attributed with climate change as well as financial impact, etc. In
2017, the TCFD released a proposal requiring companies and others organizations to disclose climate-related information.

Governance
We have established the Sustainability Committee as an organization to oversee our efforts to address our basic sustainability policy (TSV) and material issues (materiality). With the Sustainability Promotion Section of the Corporate Planning Division serving as the office in charge of the committee’s operations, the Sustainability
Committee is responsible for overseeing activities to promote company-wide sustainability initiatives, including climate change-related risk management. Important
agenda items approved by the Committee are reported to the Board of Directors on a case-by-case basis. In addition, a subworking group has been established under the umbrella of the Sustainability Committee to consider specific matters related with each risk and initiative (see Sustainability Promotion System on p.22).

Strategy
As for the impact of climate change on our business operations, future external environmental changes are examined and their effects on the Company are analyzed
based on a framework proposed by the TCFD. Below are the major risks and opportunities associated with our business activities that we are responding to.

On the basis of its basic TSV policy, we identified the material issues that we face for sustainability. TRUSCO will address these issues through its businesswith a view towards the establishment of a sustainable society.
Transition Risks

We will be able to grow as a company by creating
an environment where employees are always motivated and each can sufficiently demonstrate theirabilities. (see p.63).

· Decrease in order amounts due to carrying a low amount of sustainability-friendly products
Reputation Risk · Decrease in the number of orders of physical catalogs from the Company, resulting in a decrease in the amount oforders from physical catalogs

Opportunities

5 Contribution to

6 Governance based on athrough business activities· Direct damage to own/domestic/overseas supply chain/inventory due to disaster

Chronic Risk

· Deterioration of working environments at distribution centers due to rising temperatures and employee health hazards

Improve the fairness and transparency of management and implement swift and appropriate
decision-making to conduct business activities that
conform to laws and social norms. (see p.74).

Increased costs

Content

Impact on the Company
Increased Sales and· Decrease in expenditures through more efficient delivery by strengthening our Direct Delivery Service and cutting theuse of packaging materials by half
Decreased Costs

Energy Source· Reduction in financial costs by increasing in-house consumption of solar power

Product andService· Increase in MRO Stocker installations and direct shipments to users contributes to overall supply chain efficiency

Markets· Increased sales due to increased product demand in the industrial robot market and EV-related markets

Increased Sales

Resilience· Increased demand due to distribution of risk from having numerous distribution bases and the establishment of the“fastest,” “shortest,” and “best” delivery routes

Increased Sales

Decreased Costs
Increased Sales· Promotion of the utilization of Naojiro Repair Workshops and increased demand for environmentally-friendly products

Risk Management
The Sustainability Committee manages all risks across the company. Among these risks, we have positioned risks related to climate change as one of the mostimportant risk categories. A subworking group discusses climate change risks at least four times a year, examining the progress of initiatives for the issues and newrisks, identifying risks and opportunities, evaluating them, and organizing countermeasures. The content of the discussions by the subworking group is reported to the
Sustainability Committee, which meets twice a year, and particularly important issues are reported to the Board of Directors. In addition, the Sustainability Promotion
Section generally reports on environment-related indicators and issues to the Board of Directors every month.

Indicators and Targets
Since January 2022, we have been disclosing carbon dioxide emissions (Scope 1* and Scope 2*) and solar power generation capacity as environment-related indicators.
In addition, as our own efforts to reduce the environmental impact of the entire supply chain, we have set targets for the number of direct shipments to users, which
are highly efficient and reduce packaging material amounts and the number of companies that have introduced MRO stockers as indicators for reducing environmental impact.

Relationships with
Stakeholders

Cherish the relationships with stakeholders throughsupport for people with disabilities and communication with local communities and society throughsponsorships and advertising. (see p.86).

stance of Shushazentaku(choosing the proper action)

Decreased Sales andIncreased Costs

Acute Risk

Corporate
GovernanceWe contribute to reducing the environmental impactof our business activities and PB products, not only
for ourselves but also for the users of our products,
and contribute to the environmental activities of theJapanese manufacturing industry. (see p.53).

stakeholders and local
communities

Decreased Sales

Environmental
Efforts

4 Environmental actions

Decreased Sales

Corporate
Governance andSocial Contributions

Providing human resource training and systems
that give various insights

Increased costs

Human Resources

Strengthening competitiveness through uniqueproduct development

Increased costs· Decrease in assessment level due to a perceived lack of environmental initiatives

Market Risk

Opportunities
Resource
Efficiency

Contributing to reducing the environmental burden through one-stop distribution

Impact on the Company

Digital Service

Develop and provide PB products with originalvalue to suit diversifying needs and trends at manufacturing sites to help rationalize manufacturing
operations, increase productivity, and strengthen
competitiveness. (see p.35).

human resources to enable them tofully display their personal abilities

PhysicalRisksof products that respondto diversifying needs

3 Development of environments andContent· Increase in purchase and maintenance costs of EV vehicles due to the shift from gasoline powered vehicles to EV
Policy and Legal vehicles in accordance with greenhouse gas emission regulations
Risk· Soaring raw material prices for PB Products manufactured by the Company due to the introduction of plastic regulations and carbon taxes· Increased capital expenditures for new product development and further energy saving/efficiency improvements at
Technology Risk
distribution centers to achieve decarbonization

Sales

Become a platform holder supporting manufacturing and optimize the supply chain to establish
sustainable PRO TOOLs distribution that is bothhuman-friendly and environmentally friendly. (seep.72).

2 Planning and development

Risks

Distribution

For becoming a sustainable company with a small environmental burden

supply chain

Products

Material issues

1 Total optimization of theValue Creation Management
PolicyContinuing to Provide Support Regardless of the Times -Sustainability -Scope 3* Disclosure
We have been working to optimize the entire supply chain and reduce greenhouse gas emissions in the supply chain by strengthening our Direct Delivery Service andpromoting the use of MRO stockers. We are currently analyzing these and other initiatives for Scope 3 disclosure and will strive to disclose them in stages.
Amount of CO2 emissions (Scope 1*, Scope 2*) and Sales

Changes in Power Generation and Power Self-sufficiency Rate

5,623 5,918

9,095
7,296 7,427 7,871 8,008(Million USD)

Measuring equipment is calibrated in-house throughNaojiro Repair Workshops (Kazuhiro Umemoto,Acting Senior Supervisor at Planet Osaka)
20

Integrated Report 2022

New Nakayama Memorial Hall (The Nakayama
visually impaired welfare foundation)

Management meeting with employees seated ata round table so that all their faces can be seen

2014

2015

2016

2017

2018

2019

2020

2021

183

Power
Generation
(kWh)

9.6

10.4

10.7

10 1.3

72

85

99

2014

2015

2016

2017

139
11.3
2018

14.1

2019

260

18.9

16.5

2020

Corporate Data

3,812
1,929 1,987 1,922 2,065
1,500 1,594 1,756
1,030
Sales

Power Self-sufficiency
Rate (%)

255

The Nakayama
visually impaired
welfare foundation

Amount of CO2 emissions (t-CO2)

2021*Scope 1: Direct emissions from fuel used by our Company. Scope 2: Indirect emissions resulting from energy supplied by another company. Scope 3: Indirect emissions related to the supply chain
which are not categorized as Scope 1 or 2 emissions.
Integrated Report 2022

21

Solving Material Issues

Approval
Sustainability Committee

Office in charge: Sustainability Promotion Section

Promotion

・Strengthening of Direct Delivery Service (p.48, 53)
・Ability to store 1,000,000 items in inventory (p.18)
・MRO Stocker (p.52)
・Distribution Facility Integrated Management System (WES) (p.58)
・Total optimization of stocking and procurement through demand forecast AI (p.48)
・Polario (website for business coordination)
・Expansion of product data using AI (p.58)
・Product database “Sterra”
・Provision of new customer experiences (UX) (p.58)
・Communication optimization through uniform management of customer
information (p.58)
・Improvement of customer convenience through the utilization of AI (p.58)
・Distribution center BCP measures (p.49)

・Number of packages delivered via Direct Delivery
Service・Number of companies that have introduced MRO
Stocker・Delivery lead time・Number of different products in inventory andnumber of products that are stocked automatically・Number of TRUSCO delivery routes/Percentage of
TRUSCO delivery runs
・Stock hit rate
・Number of TRUSCO Orange Book items
・Automated Estimate Ratio
・System order intake ratio
・Number of companies connected to Orange Commerce

Develop and provide PB products with original value to suit
diversifying needs and trends at manufacturing sites to help
rationalize manufacturing operations, increase productivity,and strengthen competitiveness.

・Strengthening of our PB Products lineup
・Improving the safety and quality of PB Products
・Promoting responsible procurement

・Increasing the speed of PB Products development (p.35)
・New Product Review Meeting (p.35)
・PB Products quality assurance (p.35)

・Number of PB Products
・Number of PB Products deficiencies and related
accidents

We will be able to grow as a company by creating an environment where employees are always motivated and each cansufficiently demonstrate their abilities.

・Creation of a work environment where our employees can continue towork with peace of mind for many years
・Expansion of opportunities for career advancement for each employeewith a broad selection of choices available
・Creation of an environment where the work and results of employees
can be fairly assessed
・Promotion of diversity
・Strengthening of health management as well as occupational safety and health・Various personnel programs that support different work styles (p.67, 68)
・Personnel programs by course (p.64)
・Open Judging System (p.64)
・Job challenge program (p.63)
・Boss challenge program (p.63)
・Open position challenge program (p.63)
・Dual position job challenge program (p.63)

・Average number of overtime hours per month per
employee
・Number of on-the-job accidents resulting in injury
・Percentage of women in management roles
・Percentage of female senior supervisors

We contribute to reducing the environmental impact of ourbusiness activities and PB products, not only for ourselves but
also for the users of our products, and contribute to the environmental activities of the Japanese manufacturing industry.

・Realization of a supply chain with a small environmental burden
・Reduction of the environmental burden in business activities
・Planning and development of environmentally-friendly PB Products
・Realization of the active recycling, reuse, and return of tools andequipment

・Optimization of the entire supply chain to reduce energy use, CO2 emissions,packaging materials, and resources such as goods receipts (p.73)
・Solar power in-house generation (p.72)
・Introduction of Environmentally Friendly Vehicles (p.72)
・Energy saving activities at all business sites
・Efforts to make TRUSCO products environmentally-friendly (p.72)
・Naojiro Repair Workshops (p.53)

・Amount of CO2 emissions
・Power self-sufficiency rate
・Number of environmentally-friendly company vehicles
introduced
・Naojiro Repair Workshops sales

Cherish the relationships with stakeholders through support
for people with disabilities and communication with local communities and society through sponsorships and advertising.

・"Giving Back to Society” through the Nakayama visually impaired
welfare foundation
・Strengthening of various sponsorships and advertising activities
・Promotion of activities in local communities surrounding TRUSCO
locations・Implementation of contingency donation activities

・The Nakayama visually impaired welfare foundation (p.86)
・TRUSCO Shirarezaru Gulliver (p.84)
・Internal company newsletter “Hand Made” and TRUSCO “Gambare” Poster (p.84)
・Osaka Lovvits sponsorship (p.85)
・“Skill Olympics/Abilympics” sponsorship (p.85)
・Support as an official sponsor of the Japanese Para-Sports Association (p.85)
・Sponsorship of concerts (p.85)
・Donation activities (p.85) (donations to Peshawar-kai, etc.)
・Local community activities (p.85) (TRUSCO Shonan Ohashi Bridge, etc.)

・Social contribution activity performance

Improve the fairness and transparency of management andimplement swift and appropriate decision-making to conductbusiness activities that conform to laws and social norms.

・Realization of corporate governance effective for self-cleaning・Strengthening of compliance・Strengthening of risk management
・Realization of highly-transparent information disclosure

・Maintaining and improving our unique governance structure (p.74)
・Director, Auditor, Executive Officer, Division General Manager OJS (p.75)
・“Fire Lookout Tower” electronic auditing system (p.75)
・Compliance Manual Trusco Zentaku Book (p.75)
・Compliance training (p.75)
・Internal/External Zentaku Consultation Hot Line (p.75)
・General Meeting of Shareholders (p.83)
・Study Tours for Shareholders (p.83)

・Number of Zentaku Consultation Hot Line cases
・Average score of regular internal audits

622

Integrated Report 2022

Corporate Data

Governance based on a
stance of Shushazentaku(always choosing what isright rather than focusing
on whether it is profitable)

The Nakayama
visually impaired
welfare foundation

Become a platform operator supporting manufacturing andoptimize the supply chain to establish sustainable PRO TOOLs
distribution that is both human-friendly and environmentallyfriendly.

・One-stop MRO distribution for improving convenience and reducing
the environmental burden
・Dramatic efficiency in product selection and industry standardizationof product data
・Realization of proposals and deliveries by anticipating customer
needs
・Creating synergy effects through the power of people and digitaltechnology to contribute to the expansion of business performance ofpartner companies
・Realization of the ability to accept orders 24 hours a day and ship
products 365 days a year (stable supply of products)

Related Social Issues

Relationships with
Stakeholders

KPIs

Corporate
Governance

Related Measures

Environmental
Efforts

ThemesCorporate
Governance andSocial Contributions

5
Contributions tostakeholders and local
communities

Executive-level deliberation and approval
Results were reported to the management meeting held in September 2021.

Human Resources

Environmental actions
through business activities

Fukui Branch employees seen in a meeting・We realized that daily business activities that we conduct
are also connected to the social issues.
・The meeting made us realize that we need to be more proactive inlisting environmentally-friendly products in catalogs and their sale.

Digital Service

4

STEP4

Creation of plan designed to address the material issues
A plan designed to address the material issues was created based on level of importance evaluated in Step 2.

Description

3
Development ofenvironments and humanresources to enable them tofully display their personalabilities

Sales Dept. Distribution
Dept.

STEP3

Evaluation of the level of importance of identified social issues
While realizing the company we want to be in response to the social issues identified in Step 1, we evaluated the level of importance of identified social issues from the standpoint of both (1) social issues that
we contribute to through our business and (2) social issues that should be taken into consideration.

Sales

2
Planning and developmentof products that respond todiversifying needs

Product
Dept.

STEP2

Identification of Social Issues
Issues were identified based on global standards such as GRI and SDGs.

Distribution

Optimization of the entire
supply chain

DigitalService
Strategy Dept.

ReportingSpecialized
discussions
on individual
issues

STEP1

Products■ Chairman of the Committee: Director and General Manager ofthe Business Management Department■ Committee Roles
1. Establishment of Sustainability Promotion Activity Policy andpromotion of sustainability-related activities
2. Assessment and management of sustainability-related risks
3. Monitoring of progress based on material issues and KPIs

Business
Management
Dept.

1

Reporting
Subworking group

We have established specific themes, measures, and
KPIs for solving identified material issues. Each department is responsible for the implementation of these various measures, and the Sustainability Committee oversees progress and promotes sustainability based on
KPIs. The Sustainability Committee also manages andassesses risks related to sustainability, including climatechange.
For individual issues that require specialized discussion,a subworking group has been established under the
Sustainability Committee for focused discussions.

In addition to identifying material issues in the four-step process, meetings were held at each business site in Japan to discuss
those material issues identified. Interviews with employees were also used to create content.

Value Creation Management
PolicySustainability Promotion System

Material Issue

Material Issue Identification Process

Board of Directors Meeting(Management Committee)

Integrated Report 2022

23

Value Creation Management
PolicyThinking Outside the Box - A History of Value Creation Needs of the times and proving value

1970-1989

1990-1999

Expansion of our business andthe areas we serve

Strengthening distribution
capabilities and going public

2000-2009

Tetsuya Nakayama was born witha damaged optic nerve and loss ofvision as a result of forceps delivery. Nakayama decided to start thecompany with complete resolve forthe future of his child. As a latecomer to the industry, Nakayama
earned the trust of his customers
by aiming for a product lineup thatwas not bound by the industry limitations.

We aimed to streamline the distribution of pro-tools by publishing
Nakayama Shoten, which listed
multiple manufacturers, somethingthat did not exist in the industry atthat time. In addition, we began todevelop our own products (private
brands), which no other company
could offer, to resolving customers’issues.

In order to contribute to manufacturing sites across the country,
we expanded our offices to all
prefectures. We also entered thehome improvement industry andexpanded our sales network. Later,
we also went public, aiming to become a company that contributes
to society.

Tetsuya Nakayama was appointed as
President. In the same year, the company's first distribution center, Planet
Kyushu, was launched into operation tostrengthen distribution capabilities inearnest. We also changed our company
name, established a corporate philosophy, and created a better working
environment which led to our listing on
the first sections of the Tokyo Stock Exchange and Osaka Securities Exchange.

2010-2021

Brand renewal and strengthening of governance

Strengthening of inventory expansion and accelerating investment
in distribution and systems

We unified 16 brands of private brand (PB) products under the TRUSCO
brand and promoted branding and product development as a “PRO TOOLs
Company.” The theme of the top message was “Shushazentaku.”* This laid
the foundation for the governance that continues to this day, including theabolition of bill transactions and the introduction of the OJS (Open Judging
System) for personnel evaluations.

Based on the belief that a solid inventory is necessary to improve the convenience of our customers, we devised an inventory philosophy called the NAKAYAMA Original Inventory Logic (see p.34). In 2018, we accelerated ourinvestments in distribution and systems to strengthen our inventory expansion.
Planet Saitama, our largest distribution center, also became operational, andwe introduced the world's most advanced logistics equipment and systems toachieve high-density storage and high-speed receiving and shipping. In 2020,
we also redesigned our core system, Paradise, to digitize our operations. This
allowed us to improve the productivity of our business partners as well.

*Discretion: A criterion to make decisions is not profit and loss but good and bad.

Distribution

1960-1969
Catalog Strategy and Development of PB Products

Products

1959
Founded as a latecomer to theindustry

55.0
Sales

44.2

49.9

39.2
Launched a comprehensive
catalog “Nakayama
Business Bulletin” (1964)

Store registration/Public offeringof stocks (Tokyo and Osaka
exchanges) (1989)

Tetsuya Nakayama assumes
position of President (1994)

The theme Shushazentaku
is presented as part of a top
message (2003)

Introduction of Consumption Tax
1989
Store registration/Public offering of stocks(Tokyo and Osaka exchanges)

898

562
2nd Oil Shock112
70 90 8435
39
45
9 16 23

136 165275
218 250

310 329

395

842

651

763 747

1st term 2nd term 3rd term 4th term 5th term 6th term 7th term 8th term 9th term 10th term 11th term 12th term 13th term 14th term 15th term 16th term 17th term 18th term 19th term 20th term 21st term 22nd term 23rd term 24th term 25th term 26th term 27th term 28th term 29th term
(1964) (1965) (1966) (1967) (1968) (1969) (1970) (1971) (1972) (1973) (1974) (1975) (1976) (1977) (1978) (1979) (1980) (1981) (1982) (1983) (1984) (1985) (1986) (1987) (1988) (1989) (1990) (1991) (1992)

Integrated Report 2022

884

844 863

1,594
1,500

Lehman Shock

1,163
1,060
921 916

1,756

962

1,313
1,170 1,190

1,207 1,210
1,076

1,039

1,030

893

481

449 463 420

30th term 31st term 32nd term 33rd term 34th term 35th term 36th term 37th term 38th term 39th term 40th term 41st term 42nd term 43rd term 44th term 45th term 46th term 47th term 48th term 49th term 50th term 51st term 52nd term 53rd term 54th term 55th term 56th term 57th term 58th term 59th term 60 thterm(1993) (1994) (1995) (1996) (1997) (1998/3) (1999) (2000) (2001) (2002) (2003) (2004) (2005) (2006) (2007) (2008) (2009) (2010) (2011) (2012) (2013) (2014) (2014/12) (2015) (2016) (2017) (2018) (2019) (2020) (2021) (2022)

Number ofDistribution
Centers

24

811

2,065
1,987
1,929 1,922

Corporate Data

4

Plaza Accord

1971
Nakayama Filing Co., Ltd. established

1st Oil Shock

772

2006
TRUSCO Orange Book.Com is launched
New core system “Paradise” operation

2,193

The Nakayama
visually impaired
welfare foundation

3Black Monday

2014
Construction of Tokyo Head
Office (Minato-ku, Tokyo)

2005
Total abolition of all draft exchanges

982

2017
“TRUSCO Shirarezaru Gulliver”
broadcast started (p.84)

Relationships with
Stakeholders

1964
Launched a comprehensive catalog titled
Nakayama Business Bulletin (p.42)
Developed our first private brandproduct “Komyotan”

7.4

Collapse of the IT bubble

963

2018
Planet Saitama starts operations

Corporate
Governance

Chuji Nakayama writes
the Five Articles (1959)

2020
Core system “Paradise 3”
launched into operation (p.59)
PRO TOOLs Restrictions Removed

14.1

6.6 6.92003
The theme Shushazentaku is presented as part of a top message
Private Brand (PB) names unified under the name of TRUSCO
PRO TOOLs specialization

1997
Public interest incorporated foundation
Nakayama Welfare Foundation
for the Visually Impaired founded(p.86)

World experience theCovid-19 pandemic

Environmental
Efforts

1959
Founded as a machine tool wholesale business in Tennoji-ku,
Osaka, as Nakayama Kiko Shokai by Chuji Nakayama

1Collapse of Economic Bubble

21.2

16.4

8.4 9.0

1996
Listed on the 1st Sectionof the TSE and OSE

Nixon Shock(Unit: million USD)

1959

1994
The company changes its name to TRUSCO
NAKAYAMA Corporation
Tetsuya Nakayama assumed position of Presiden
Planet Kyushu operations begin(company’s first distribution center)

26.4
23.1

Corporate
Governance andSocial Contributions

Komyotan, the company's first private brandproduct (1964)

11.7 12.4

19.2

37.4

29.8 33.6

Human Resources

2006
Started efforts to expand the numberof different products in inventory

Chuji Nakayama, the founder of our company,
created the “Five Articles”, which can be called thecompany credo (image right). Since its inception,
the company has had a culture of taking on various
challenges without being bound by limitations. Oneof these was the first private brand (PB) product
Komyotan (red lead), which was purchased in Chuji Nakayama at time
drums and then divided into small cans for sale in of establishment (1959)
response to user requests. Although it took muchtime and effort, this was the starting point forwholesalers to purchase in large quantities and sellin small lots. This philosophy of “doing what others
won't do,” “selling what others won't sell,” and “doing things before others do them” has been handed
down as the DNA of our company to this day.

Planet Saitama Distribution Centerlaunched into operation (2018)

Number of items in inventory(Unit: ten thousand)Origin of TRUSCO NAKAYAMA

Sales

Constructionof Tokyo Head
Office (2014)

Digital Service

The year of the company's founding
President Tetsuya Nakayama appears
in the center of the photo (1959)

Private Brand (PB) names unified
under the name of TRUSCO (2003)

9-monthfinancial results

6-monthfinancial results

2

4

5

6

7

8

10 11 12 13 16

Consolidated
Accounting Started

19 21 22 26

plan

27

Integrated Report 2022

2

25

External Evaluation(some award winners as well as honorifics have been omitted)

2017“Best IR Award for Encouragement” recipient(Sponsor: Japan Investor Relations Association)

The openness of TRUSCO's top management was reflected in the company's level of disclosure, and TRUSCO wasrecognized for its efforts to disclose information in an earlyand fair manner, including proactive dissemination of useful information to investors, as well as for its enhancementof ESG information and activities for individual investors.

Details canbe found by
scanning the
QR code above.

Companies receiving the award in 2017
“Best IR Award for Encouragement” recipients
TRUSCO NAKAYAMA Corporation
Recruit Holdings Co., Ltd.
“IR Special Award” recipients
Kirin Holdings Company, Limited
Sony Corporation
Fuji Oil Co., Ltd.

“IR Grand Prix” recipients
Komatsu Ltd.
Shionogi & Co., Ltd.
“Best IR Award” recipients
DAIKIN INDUSTRIES, LTD.
Daiwa House Industry Co., Ltd.
Nabtesco Corporation, etc. (total ofseven “Best IR Award” recipients)

Be an Ultimate Master Wholesale(Management Policy)

2018“Porter Prize” recipient(Sponsor: Hitotsubashi University Graduate School ofInternational Corporate Strategy (ICS))The company's unique inventory expansion strategy and logistics
system have earned the trust of customers, who say “TRUSCO
has it in stock.” The company's unique efforts to improve convenience without appealing to sales price were highly evaluated.

Details canbe found by
scanning the
QR code above.

Companies receiving the award in 2018
TRUSCO NAKAYAMA Corporation
Hoken No Madoguchi Group Inc.,
MonotaRO Co., Ltd.
RIZAP GROUP Inc.

2020

Selected as a “DX Stocks 2020” company“DX Grand Prix 2020” recipient(Sponsors: Ministry of Economy, Trade and Industry (METI)
and the Tokyo Stock Exchange)

Details canbe found by
scanning the
QR code above.

“Intuition and assumptions can sometimes lead to fatal
mistakes. We want to use the data analysis and utilization as a foundation
for moving forward to the next stage.” In addition to this awareness by top
management, the company was highly evaluated for converting data analysis into creative services by utilizing AI and other technologies.
2020“DX Grand Prix 2020” recipients
TRUSCO NAKAYAMA Corporation
Komatsu Ltd.
Companies selected as a “DX Stocks 2020” companies
35 companies in total, including
Kajima Corporation and Fujitsu Limited

We believe that the source of competitiveness for an organization is
its originality and we are placing it at the root of our management strategy.
TRUSCO continues to promote the improvement of convenience for our customers andenhancement of the environment and systems that allow our employees to work with peace ofmind over the long term. Setting our own management indicators for each strategy,
we will continue to aim to be a company that always meets the demands of the manufacturing sites.

TRUSCO’s Strengths/Performance Highlights...........................................................................................

Financial Strategy - A Company with Assets -......................................................................................

28
29

2021

Information Technology Award Information Technology“IT Grand Prize” RecipientAward Recipient(Digital Transformation category)(Sponsor: Japan Institute of Information Technology)

Details canbe found by
scanning the
QR code above.

TRUSCO was recognized for the high level of results it has achieved by
improving the efficiency of the entire industry through the development of IT systems and for
improving operational efficiency and business innovation throughout the supply chain throughthe establishment of various mechanisms, including the automation of quotations using AI.
2021

Digital Transformation Certification(Sponsor: Ministry of Economy, Trade and Industry (METI))

TRUSCO was recognized for its internal operation reforms
and improving the convenience of the entire supply chain
through the use of digital technology.

..........................................................

30.....................................................................................................................................................................................................

32

Medium-term Strategy - TRUSCO HACOBUne Project -Details canbe found by
scanning the
QR code above.

2020 “IT Grand Prize” Recipients(Digital Transformation category): Trusco Nakayama Corporation
Customer/Business Functions category: All Nippon Airways Co., Ltd.
Social Problem Solving category: Kochi Prefecture (prefectural
government)

Companies that have received
DX Certification
TRUSCO NAKAYAMA Corporation
Fujitsu Limited
YAMATO HOLDINGS CO., LTD.
etc.

Product Strategy.......................................................................................................................................................................................

44..............................................................................................................................................................................................................

50

Distribution Strategy

Sales Strategy

Digital Service Strategy............................................................................................................................................................................

56

2021

Selected as a “DX Stocks 2021” company(Sponsors: Ministry of Economy, Trade and Industry (METI)
and the Tokyo Stock Exchange)

Following last year's selection, TRUSCO was selected as oneof the “DX Stocks 2021” for a second year in a row as partof efforts to promote strategic use of IT to enhance corporate
value and competitiveness over the medium to long term.

26

Integrated Report 2022

Details canbe found by
scanning the
QR code above.

“DX Grand Prix 2021” recipients
Hitachi, Ltd.
SRE Holdings Corporation
Companies selected as a “DX Stocks 2021” companies
26 companies in total, including TRUSCO NAKAYAMA Corporation andShimizu Corporation

Human Resources Strategy.............................................................................................................................................................

62

Integrated Report 2022

27

Financial Strategy - A Company with Assets -TRUSCO’s Strengths

We must be able to secure important assets
without relying on others.

Customers(2,966)(5,527)

(P.0)
P.32

Total number of items in inventory: 48,780,000 items
Number of suppliers: 2,966 suppliers (304 overseas suppliers)

Number of delivery runs: 278 (includes 117 TRUSCO delivery runs
(accounting for 42.1% of delivery runs))

P.44

Solving Problems for Customers

Sales
P.50

Human Individual growth for the growth of the company
Resources Number of employees: 2,906(10 officers, 1,632 full-time employees, 1,264 part-time staff)

P.62

× Anlevelunparalleledof××

convenience thatcompetitors areunable to offer● Rapid, reliable delivery

Digital Expenditures$46 million(last three periods)● Acceptable prices● Abundant line-up and● Courteous, Polite, and● Digital capabilities

Financial A company with assets

Sales

Consolidated

Consolidated-0.5 pt

Selling, general and Consolidated
administrative expenses+1.4 %

Consolidated$62 million

Consolidated

Consolidated

per share

28
68

Integrated Report 2022
Integrated Report
202 1+17.0 %

Ordinary Income

1,411

1,482

70

82

2020

2021

1,546
90
2022

e-Business Route
19.5%
Sales $402 million (+16.3%)

345

401

450

30

33

27
2020

$45 million

Distribution Strategy｜Immediate delivery is
the greatest service (p.45)

Intangible fixed assets

Retained Earnings+$0.04Home Center Route 8.0%
Sales $165 million (+8.1%)

152
1

164
3

Overseas Route
0.7%
Sales $15 million (+37.9%)

174
4

10
-1.80

2020

2021

2022
(planned)

2020

14
-0.27
2021

etc.

Total assets

Liabilities/Net assets$2,009 million$2,009 million

59th term (2021) Balance Sheet(Shareholders’ equity ratio: 64.0%)

18

2,009

39th term 40th term 41st term 42nd term 43rd term 44th term 45th term 46th term 47th term 48th term 49th term 50th term 51st term 52nd term 53rd term 54th term 55th term 56th term 57th term 58th term 59th term
(2003)(2004)(2005)(2006)(2007)(Unit: million USD)

(2008)(2009)(2010)(2011)(2012)(Unit: million USD)

Included
Merchandise(products)

LiquidAssets
526

110

0.09

Fixed
assets169

Tangible 139
Intangible 0.9
Other Investments 27

2022

Total assets(planned)

compared to 2001. In recent years, we have accelerated our investment in digitaltechnology, promoting digital efficiency in all aspects of our operations. We are
now planning to open Planet Aichi, a next-generation distribution center, as one
way to improve customer convenience over the long term utilizing both tangible
and intangible fixed assets. By owning our own facilities and making effective useof them over the long term, we aim to be a company that will continue to be ofservice to the public at all times while reducing our environmental burden.

877

695

+17.4 %
+44.9 %

etc.

TRUSCO invests in merchandise (products) and fixed assets, continuing to put the concept“a company with assets” in practice in order to increase total assets.

2022(planned)(planned)$1,196 million$48 million

Changes in Total Assets(2002)

2021$884 million

Total Liabilities
227

Net Worth
468

695 Total Liabilities/Net assets 695

39th term (2002) Balance Sheet

Included
Merchandise(products)

LiquidAssets
475

164

Fixed
assetsTangible 374

401(2013)(2014/3)(2014/12)(2015)
9-monthfinancial results(2017)(2018)(2019)
Consolidated
Accounting Started

Net Worth707

877 Total Liabilities/Net assets 877

49th term (2012) Balance Sheet(2020)(2021)(Unit: million USD)

Total Liabilities 170

Intangible 9
Other Investments 16

Total assets(2016)

LiquidAssetsIncluded
Merchandise(products)

1,045

383

Fixed
assetsTangible 883

963

Total Liabilities
724

Net Worth
1,284

Intangible 48
Other Investments 30

Total assets

2,009 Total Liabilities/Net assets 2,009

59th term (2021) Balance Sheet

Integrated Report 2022 29
Integrated Report 2
02 1 6 9

Corporate Data(as of December 31, 2021)+5.6 %

Sales

Tangible fixed assets

The Nakayama
visually impaired
welfare foundation$116 million
Ordinary Income$122 million
Attributable to shareholders$104 million
Net Income
Annual dividend$0.31
Market Capitalization$1,624 million
Shareholders’ equity ratio
64.0 %
Operating income

Constitution ratio (Unit: million USD)(The year-on-year comparison is shown in the parentheses.)

Factory Route
71.8%
Sales $1,482 million (+5.0%)

Capital:Relationships with
Stakeholders

Depreciation

Performance by Business Route (consolidated)+7.5 %$1,285 million

Corporate
Governance

Gross profit margin$2,066 million
21.0 %$318 million

Net WorthFixed assets

Environmental
Efforts

The year-on-year comparison is shown in the parentheses.

$315 million etc.

Of our $1,045 million in liquid assets, $383 million was invested in inventory assets(products). We provide value to our customers by reassuring them that “Trusco has it.”

Since establishing Planet Kyushu, our first distribution center, in 1994, wehave been actively building our own distribution facilities and material handlingequipment (tangible fixed assets). TRUSCO currently has 27 distribution centers
nationwide with 490,000 different products in inventory ($383 million). Throughthe strategic enhancement of our tangible fixed assets and inventory, the company has improved convenience for its customers, resulting in a 2.1x increasein sales to $2,065 million and a 2.7x increase in total assets to $2,009 million

Performance Highlights
For the 59th term (as of December 31, 2021) (consolidated)etc.

To become a company that continues to be of service at all times through further investment in distribution and inventory

Stock hit rate: 91.3%
Delivery lead time:
20 hrs., 6 min., 53 sec.

Market capitalization: $1,623 million, Total assets: $2,009 million, Shareholders’ equity ratio: 64.0%, R&I Rating: “A”

P.29

Long-term
Debt$342 million

Corporate
Governance andSocial Contributions

Management
Indicators Important
to Customers

Merchandise (products)$384 million

To Achieve “Our Ambitions” (Value Creation), we strategically improve the oureffectiveness through digital technology. In the future, we will build a new
distribution platform called TRUSCO HACOBUne to provide the highest level ofconvenience to the entire supply chain (p.30).

Reliable

Fixed Liabilities$964 million

Digital Service Strategy｜An unparalleled level of convenience that competitors are unable to offer (p.57)

inventory

Accounts Receivable$260 million

Our distribution facilities and material handling equipment account for about
60% of the $883 million in tangible fixed assets. We are also promoting logistics DX to improve efficiency in warehouses and delivery speed.

● High-level of convenience$148 million$153 million etc.

Human Resources

59 sales branches in Japan, 5 overseas subsidiaries
Number of business partners: 5,527; Number of sales accounts: 29,561

TRUSCO provides
products and services
that are valuable toour customers.

P.56

Short-term
Debt$373 million

Product Strategy｜Bringing Together a Full
Line-up of PRO TOOLs (p.33)

Provided Value

Digital Service

Cash and deposits

Digital Service

delivery is the greatest service
Distribution Immediate
Logistic centers in Japan: 27

×

( ∞ )

Accounts
PayableSales

together a full line-up of PRO TOOLs
Products Bringing
Products
Number of different products in inventory: 500,000;

Users

Unlimited$382 million$1,045 million

We believe that owning our own distribution centers, branch offices,
data centers, and vehicles, which serve as the main arteries of corporate
management, will bring the greatest benefits. This is why were are placing importance on the idea of TRUSCO being “Having assets on ourown.” Instead of aiming for short-term profits, we take the perspectiveof long-term corporate value enhancement and promote the strategic
strengthening of financial foundation, which leads to greater convenience for our customers. Since 2016, we have maintained a rating of “A”
by Rating and Investment Information, Inc., and by raising funds with aneye to the future and continuing to proactively make capital investments,
we are providing our customers with higher value-added services.

Distribution

Suppliers

Current Liabilities

Liquid Assets

Products

In order to be a company that continues to be of service to Japanese manufacturing regardless of era, we are streamlining andoptimizing the entire PRO TOOLs supply chain by executing five strategies for the following: products, distribution, sales, digital
service, and human resources. The overall strategy is supported by our financial foundation (see p.29) based on being “a company
with assets” which has been built through consistently providing customers with a variety of values, including high convenience.

Value Creation Management
PolicyManagement Policy - Be an Ultimate Master Wholesale -Medium-term Strategy - TRUSCO HACOBUne Project -Value Creation Management
PolicyComments from the Representatives of Partner Institutions
Industry-academia collaboration

Create a new distribution platform through industry-academia collaboration and capital and business alliances

Tokai National Higher Education and Research System
Nagoya University

TOPICS

Nagoya University Joint Lab

Nagoya University conducts various types of research as part of the Tokai
National Higher Education and Research System, the first national university
system with multiple universities under one entity. The university
was designated as a Type A (Top Type) university by the Top
Global University Project.

Seiichi Matsuo

Nagoya University and TRUSCO NAKAYAMA Corporation will use Nagoya University and Planet Tokai as bases
for research and development in industry-academia collaboration, as well as places for mutual personnel
exchange, wide-ranging information exchange, and human resource development. In addition, TRUSCO andNagoya University will utilize the Planet Aichi newly established by TRUSCO as a future logistics base to demonstrate the results of our research, aiming for the sustainable evolution of both organizations.

Sales

Strict measures to protect against Covid-19 infection
were taken during the press conference

Nagoya University website

Distribution

Location: Furocho, Chikusa-ku, Nagoya-shi, Aichi
Year of Establishment: 1939

Tokai National Higher
Education andResearch System
President“Nagoya University Joint Lab” was established in Nagoya University for the purposeof sustainable growth of both the university
and TRUSCO NAKAYAMA. The aim behind
this effort is to create a place where various chains of creation can occur.

Products

In June 2021, we announced an industry-academia collaboration with National University Corporation Tokai National Higher Education and Research System Nagoya University and capitaland business alliances with GROUND Inc. and Cinnamon Inc. at a press conference. By building “TRUSCO HACOBUne”, a new distribution platform, we aim to further accelerate digitaltransformation (DX) (Trusco DX2.0), which will include the utilization of AI and robots. (see p.58).

Nagoya University Joint Lab office

Capital and business alliance

Data

Searches (5,527 companies) Searches
Estimates
Estimates
OrdersOrdersIoT

Product Data

DeliveryDistribution
Inventory items

1,000,000

Industry-academia
collaboration

Data Flow

Deliverybased onpredicted
demandDirect Delivery Service
DeliveryFormat01

MRO *Stocker

DeliveryFormat02* MRO Stocker is like “Okigusuri”- A business model that has beenaround for many years in Japanbut for tools.
It is a service that eliminatesdelivery time.

Company
websiteCinnamon Inc.
CEO

Miku Hirano

We first encountered TRUSCO NAKAYAMA Corporation when the company won the “DX Grand Prix 2020” at a
breakfast meeting hosted by Hiroshi Kajiyama, then Minister of Economy, Trade and Industry. Utilizing support
from the Japanese government, we believe that this partnership embodies the teaming of diverse participants
with large companies, academia, and other startups that are transforming distribution and digital technology in
our country. We will do our utmost to make this an example of how multi-stakeholders can come together totake on global challenges and help create a sustainable world.

Cinnamon Inc. gained TV exposure on TV
Tokyo's WBS (World Business Satellite)
which aired on September 30, 2021.
Footage of one of our regular meetings
held at the Tokyo Head Office was also
shown.

Corporate Data

Product Flow

Deliverybased onpredicted
demandBusiness Details: Cinnamon offers products and consulting
development related to artificial intelligence
Location: Spirit Building (6F), 3-19-13 Toranomon, Minato-ku,
Tokyo
Date of Establishment: October 5, 2016

Cinnamon Inc. gains TV exposure

The Nakayama
visually impaired
welfare foundationAI

TOPICSWith the mission of “Bringing AI to the creative world,” Cinnamon Inc. is anadvanced company selected as one of the Top 100 startups in the world.

USERS(∞ Unlimited)(items)OrdersCurrent Future
System System

Integrated Report 2022

Unnecessary Customers Unnecessary

10,000,000(items)30

Cinnamon Inc.

MRO Stocker based

Relationships with
Stakeholders(Number of sales branches

Capital andbusiness alliance

Delivery based
02 on predicted demand

Data from Users (including operating status and work progress)

59 Number of distribution bases 27)

Corporate
Governance

Data
Linkage“Wow! The product that we need is already here.”

DeliveryFormat(made possible by MRO Stocker)

Suppliers Inventory

No matter how great a technology is, it is meaningless if it cannot be implemented and utilized. This is a common belief shared by both GROUND and TRUSCO. First of all, we will support TRUSCO NAKAYAMA Corporationto achieve the highest quality distribution operations by implementing various cutting-edge technology solutions
developed and provided by our company for the operation of Planet Aichi, a next-generation distribution center
that is currently being planned.

Environmental
Efforts“Wow! The product has already arrived.”
Achieving the industry's “fastest,” “shortest,” and“best” deliveries through our Direct Delivery Service

External Data (including
weather and seasonal data)(2,966 companies)

Hiratomo Miyata

Corporate
Governance andSocial Contributions

01

Company
websiteGROUND Inc.
CEOGROUND Inc. has developed its own integrated management and optimization system for
distribution facilities called “GWES” (GROUND
Warehouse Execution System) which isplanned to be adopted for the first time in Japan at Planet Aichi, which is in the planningphase. We will aim to make that distribution
facility competitive at the highest level.

At a press conference held together
with GROUND Inc.

The best is already there

When the new distribution platform “TRUSCO HACOBUne” islaunched into operation, the flowof products and information willchange dramatically.
GROUND, Cinnamon AI, and Nagoya University will deeply utilize
our logistics and product data
to create a flow that will further
improve customer convenience.

DeliveryFormathope to build a strong partnership that includes not only business but alsomutual exchange of human resources. We will strive to evolve as a PRO
TOOLs supplier under the catchphrase “The best is alreadythere” by achieving the industry's “fastest,” “shortest,” and“best” PRO TOOLs procurement required by manufacturing
sites.
Press Release

Business Details: Provider of distribution solutions utilizing
technology.
Location: the SOHO (3F), 2-7-4 Aomi, Koto-ku, Tokyo
Date of Establishment: April 10, 2015

Human Resources

Changes in Business Flow

Announcement of Japan’s
first GWES adoption

Members of the media shown at the press conference

Achieving the industry's “fastest,” “shortest,” and “best” deliveries, aiming to makethe catchphrase “The best is already there” a reality
We give priority to capability targets (see p.18), which tell us the types ofcapabilities that we should possess as a company, rather than to numerical targets such as sales and profit figures. In this era of rapid change,
achieving this goal requires cutting-edge digital technology and partners
that we can trust with our future, leading to this industry-academia collaboration and capital and business alliances. We will invest $4 million
in GROUND Corporation and CINNAMON Corporation, respectively, and

TOPICSGROUND Inc. is a top-class distribution vendor in Japan with the vision of “Toward a future in which distribution is permanently sustainable for all people.”

From left to right: Seiichi Matsuo (President of Tokai National Higher Education and Research System), Miku Hirano(CEO of Cinnamon Inc.), Tetsuya Nakayama (President of TRUSCO NAKAYAMA Corporation), and Hiratomo Miyata(President & CEO of GROUND Inc.)(At the 55th Anniversary Hall on the 3rd floor of the Tokyo Head Office of TRUSCO NAKAYAMA Corporation)

Digital Service

GROUND Inc.

Cinnamon Inc. CEO Miku Hirano at themeeting

Integrated Report 2022

31

Product Strategy

Tatsuya Nakayama•Searching for equivalent/similar products•CO2 emissions data, etc.

1 million different products types

Sales (Million USD)
Stock Hit Rate (%)*

1,313

Product Data

1,030

10 million different products

21.2

Users
Customers

Product Lineup

84.0
2014/3We always have whatcustomers need

Needed products canbe easily selected

23.1

1,594

1,500

29.8

26.4

1,756

33.6

1,987

1,929

37.4

39.2

86.8

88.2

88.8

89.5

89.9

90.5

2014/12

2015

2016

2017

2018

2019

1,922

44.2

100.0

TRUSCO Orange Book

1,948
Number of items 508,000
Number of listed
manufacturers

2,065

49.9

Inventory items
Number of items in inventory

91.0

2020

2021

Total number of
items in inventory

Items

7,494

+57,528 Items+4,529 Items

Items

48,787,614 units +2,832,108
Inventory Value $384 million
+$9

2030

Current Period

units

millionConsolidated
Accounting Started

9-monthfinancial results+37,000 Items

Items

499,964

Number of those products thatare stocked automatically

91.3+97companies

companies*Stock Hit Rate: Ratio of products delivered from our company stock among our total number of orders.

We are redesigning our product catalog to take advantage of both paper-based and Web-based benefits

Building a convenient, safe, and secure platform that will become the industry standard

1

Cutting Tools

Sales $65 million (+10.6%)•Cutting Tools •Drilling tools•Threading cutting tools

Users
Enhancementof support

Production Processing Tools

7.6%

3

Construction Supplies

11.5%

Sales $236 million (+6.9%)•Pneumatic tools •Welding equipment•Civil engineering equipment, etc.

Sales $156 million (+7.4%)•Measurement equipment •Mechatronics•Tools for machine tool, etc.

ScalesCutting Tools

4

Threading cutting tools

Work Supplies

18.6%

Sales $383 million (+7.6%)•Cutting goods •Grinding and polishing goods•Chemical products, etc.

7

LubricantCutting Fluid

Logistics/Storage Supplies

11.0%

Sales $226 million (+10.3%)•Loading goods •Transportation goods•Containers and vessels

Calipers

5

3D Measuring
Equipment

Hand Tool

16.5%

Sales $339 million (+9.5%)•Electric power tools and accessories•Pneumatic tools and accessories•Hand Tools, etc.

Screwdrivers

8

Hammers

Laboratory Supplies

Floodlights

6

Generators

Welding Masks

Environmental Safety Supplies

17.6%

Sales $364 million (+5.0%)•Protective equipment •Safety goods•Environmental improvement goods•Air conditioning goods, etc.

Pliers

4.3%

Sales $88 million (+5.7%)•Tool wagons •Storage and management goods•Work benches, etc.

Portable Air Conditioners

9

Safety shoe

Office Supplies/Storages

Work Gloves

9.1%

Sales $187 million (+6.9%)•Cleaning utensils •Office miscellaneous goods•OA business machinery, etc.

The Nakayama
visually impaired
welfare foundation

Can choose thebest productProduct data
linkage2

Chips

Silicone Grease

Improve the convenienceof the entire supply chain

3.1%

Shows the constitution ratio of sales by category. Sales data current as of December
31, 2021. Figures in brackets are from the previous year provided for comparison.

Relationships with
Stakeholders

TRUSCO must be a company that provides support regardless of the times
using a convenient system so that users and suppliers can focus on theirrespective manufacturing activities. In addition to providing information tousers, we also provide suppliers with a variety of data generated by theplatform, contributing to improved manufacturing by suppliers.
Since existing product information has been prepared by various parties
based on their own standards with different formats and expressions, thesedifferences are causing inefficiencies in the operations of users, customers,
and suppliers. We aim to improve the efficiency of the entire supply chain
by building a product database that is easy to understand and use, and canbe utilized throughout the industry. In addition, in order for our customers tofocus on manufacturing safely, it is necessary for them to use PRO TOOLs
that are just right for their work in an appropriate manner. Aiming to makeit a safe and secure platform, we will work to provide easy-to-understandinformation to support appropriate selection and use, as well as to improve
the quality of the products that we offer.

Sales Constitution Ratio of Available Products

Corporate
Governance

Customers
A convenient andsafe product data
platform

Feedback

TRUSCO is creating an environment in which users and suppliers can focus on theirrespective manufacturing activities

Containers

10

Conveyors

Other products

Trolley

Cabinets

Work benches

WagonsDesks

Office Supplies

Corporate Data

Integrated Report 2022

Inventory•Can be compared tohaving a bird’s eye view
•Can be viewed without
using the Internet

Number of items in inventory(Unit: ten thousand)+222 companies+92 companies

Environmental
Efforts

In order to realize that products required for manufacturing are always available, we
aim to expand the number of manufacturers we handle both domestically andinternationally to increase our inventory to 1 million different product types by 2030.
On the other hand, with the world full of various types of tools, it takes time andeffort for users to select those that are most suitable. We will continue to improvethe environment in which users can easily select the most suitable professional
tools by enhancing new functions and information through the use of digital technology, such as user-specific mini-catalogs, equivalent and similar product searches
on TRUSCO Orange Book.Com, CO2 emissions information related to products anddistribution, and delivery date information for ordered products.
The number of pages in the Trusco Orange Book will be reduced to approximately
half from the 2023 edition onward to reduce the environmental burden stemmingfrom paper use and CO2 emissions. At the same time, the book will be reborn as aJapan 2,662 companies
Overseas 304 companies

Changes in Sales, Stock Hit Rate, and Number of different products in inventory

new form of digital hybrid, with a two-dimensional code on paper connecting to thewealth of information available on the Web in real time.

companies

companies

Corporate
Governance andSocial Contributions

Striving to always have the products that
customers need and can be easily selected%

Human Resources

Expanding our unique product lineup to solve issues for the manufacturing world

79,500 +11,800
Sales $391million+5.2
TRUSCO Orange Book.Com
Number of items listed 2,760,887 +423,667
Total Number of
+314
2,966
suppliers
Number of Items

Digital Service

Copyright © MAPAL, All Right Reserved

Private Brand (PB)

Sales

We are currently expanding our unique product lineup to help solve current andfuture issues for the manufacturing world. We will expand our product lineup with aneye on the future, such as on the proliferation of EVs and carbon neutrality, expand
our Private Brand product lineup so that customers will say “TRUSCO will have it!”,and discover unique, high quality overseas products to add to our business.
In addition, our product lineup will only become more convenient when it is converted into appropriate product data. We will expand the number of product data fromapproximately 4.6 million items as of January 2022 to approximately 10 million
items by January 2025. At the same time, we will continue to enhance easy-to-understand and substantial information to meet the needs of online shopping
companies and others.
With our suppliers, we will not only continue our traditional catalog and inventory
initiatives but also promote initiatives to solve issues throughout the supply chain bymaking full use of distribution and IT, such as individual initiatives utilizing ourdistribution network and data sharing.

Product Strategy Key Indicators

Distribution

Expanding product lineup, amount of product data, and collaborations with suppliers

32

PRO TOOLs in general refer to tools, operational supplies, consumables,and machinery required by professionals at manufacturing sites suchas factories and construction sites. We try to carry as many PRO TOOLs
products as possible. By stocking not only the best-selling products but
also all products with the same or similar functions, we are able to respond accurately to our customers' needs. We will continue to offer anabundant product lineup and inventory to help customers expand theirbusinesses.

Products

Senior Executive Officer
General Manager of the Product Division

Bringing Together a Full Line-up of PRO TOOL

Value Creation Management
PolicyInventory Strategy

Solving issues throughout the entire supply chain
with our unique product lineup and product data

Industrial Vacuum
Cleaners

0.7%

Sales $13 million (-18.4%)

Integrated Report 2022

33

Minimize Stock)

Inventory Sells

Focus on Stock Hit Rate

Inventory Energizes Growth

We believe we receive orders thanks tostocking the products our customers needrather than inventory that sells.

We believe the greatest barometer of ourservices is the stock hit rate that shows
what percent of the total orders were fulfilled from stock to delivery.

Having a solid inventory allows us to expand
business with online shopping companies
and increase sales. By reducing the time andeffort required to process orders, we havebeen able to significantly reduce overtime
work for our employees, which has been thedriving force behind our company's growth.

Stock hit rate: 91.3%(as of December 31, 2021)

We are able to provide immediate delivery for even longtail products that have a low order frequency. By stocking all colors and sizes regardless of what sells, wehave created a one-stop environment for our products.

We have set up cut depots that stock cutting tools,
which are the greatest consumable in factories, atthree distribution centers in Japan, making those
products available for immediate delivery.

Low
Product Items

Kyocera Corporation

Kennametal Japan Ltd.

Sandvik K.K.

Sumitomo Electric Industries, Ltd.

(as of December 31, 2021)

Dijet Co., Ltd.

Mapal

When an order is incorrect, a return can be automatically accepted for unopened inventory items. Products arecollected by a delivery service that travels fixed routes.

Union Tool

Tungaloy Corporation

Mitsubishi Materials
Corporation

NS Tool Co., Ltd.

MOLDINO

TRUSCO stocks products of 13
major cutting tool manufacturers

Inventory of seasonal products year-roundWe refer to large and long products that are difficult to manage and ship as “Difficult-to-Deliver”
products. We are able to meet all orders by actively
stocking these products.

We keep catalogs from manufacturers so that wecan provide information immediately when detailed
information about a product is needed. As withproducts, our catalog inventory is managed using
bar codes, which allows for more customer business opportunities.

It is common for seasonal products to be stocked
only in quantities that can be sold out during the season. However, in order to meet the demand for thelast units, we keep more inventory than the seasonal
demand and respond to orders throughout the year.

Shift in PB Goods Sales and Number of PB Products
Number of PB Products
PB Goods Sales (Million USD)

32,800 35,400

38,700 41,500

333
205 309229 2542013

2014/3

Participants discuss various topics
during a new product review meeting

45,6002014/129-monthfinancial results

2015

2016

50,20056,50059,500394
361 391

2017

2018

2019

90,00067,700 79,500
419
372 390

2020

Consolidated
Accounting Started

2021

2022 (year)(planned)

Received Multiple Good
Design Awards

Products Based on Ideas
from Employees

We also deeply focus on
quality control

The Japan Institute of Design Promotion presents awards to products and services with superior design every year. TRUSCO has received
Good Design Awards 22 times for many of its
products including carts, air dusters, and hip
roof tool boxes.

The PB Request Box is a system for employees
to propose ideas for new products. Approximately 100 new ideas are presented eachmonth, some which lead to the creation of various unique PB Products.

We established the PB (Private Brand) Quality Control Section to manage the quality of PB products.
We are striving to enhance quality through measuresthat include the plans to prevent recurrence when adeficiency occurs as well as product improvements.

BT700J5-E100
Multi-coupling Dolly [BEETLE]

TPBC-BK
Waterproof Tarpaulin Boot CaseGXFP3L-BK
GORE-TEX
Full-Zip Rain Pants

Corporate Data

(2021 Good DesignAward winner)

The Nakayama
visually impaired
welfare foundation

Integrated Report 2022

We carry catalogs from around 600 manufacturers.

Ability to supply even the last unit of a
product during seasonal demand

Once a month, members of the Company, including the President and directors, hold a new
product review meeting. Among the approximately 10,000 items developed each year, highly
original products are commercialized through thisreview meeting. Meeting participants examine
not only functionality and cost but also how original the product is from a variety of perspectives.

We develop approximately 10,000 products per year

Relationships with
Stakeholders

Inventory of Manufacturer Catalogs

New product review meeting for original
product development

Corporate
Governance

Stocking “Difficult-to-Deliver” products

We also have 7 m ladders in stock

34

OSG Corporation

Environmental
Efforts

Accepting Product Returns
Automatically

Iscar Japan Ltd.

Private Brand Products
Sales: $390 million(Non-consolidated parent)
Sales Constitution Ratio: 19.0%

Corporate
Governance andSocial Contributions

Order Frequency

Long Tail Products

NAKAYAMA
Original
Inventory
Logic

KartioHuman Resources

High

Foldable
Containers
Digital Service

Keeping Long Tail Products in stock

Establishment of Cut Depots
Dedicated to Cutting Tools

ZEPHIRE

Sales(Conventional Thinking =Distribution(Conventional Thinking =Emphasize Stock Turnover Rate)

The TRUSCO brand was born out of the desire to respond to professional skills with professional quality. It wasborn as the industry’s first Private Brand (PB) in 1964 and covers the widest range of auxiliary materials forfactory use among all brands. At present, we are developing at a speed of about 10,000 additional items every
year and are working to further strengthen the brand.

Products(Conventional Thinking =Don’t Stock Unsellable Inventory)

Developing our own brand with an original approach

Management
PolicyBased on the belief that inventory is necessary for the convenience of our customers and for improving sales, we have developed our own approach to inventory - the NAKAYAMA Original Inventory Logic. With this approach, we are expanding our inventory using creative methods to ensure that our customers always know that TRUSCO has what they need.

Private Brand Products

Value Creation

Enhancing our inventory using the NAKAYAMA Original Inventory Logic

We perform thorough quality checks
using specialized equipment

Integrated Report 2022

35

Overseas National Brand Products

Providing a Broad Selection of PRO TOOLs in Japan

Launching the World’s PRO TOOLs in JapanWe are able to provide items (National Brand Products) from around 2,662 companies procured from suppliers in Japan. The number of suppliers we work with grows by 100 or so annually so that we can provide a broad selection of products to everyone involved with manufacturing.

Starting with the Germany office (Düsseldorf), TRUSCO has sequentially opened product procurement bases overseas, including the Taiwan
office and the Thailand office, to procure PRO TOOLs from around the world with a focus on Europe, where many high-quality tool manufacturers have built up a long history. We import quality PRO TOOLs from various countries to invigorate the manufacturing sites in Japan.

Value Creation Management
PolicyNational Brand (NB) Products

Products
Distribution
Sales
Digital Service

National Brand (NB) Products
Sales: $1,673 million
Sales Constitution Ratio: 81.0%

Overseas Procurement

Human Resources

Sales: $49 million
Suppliers: 304(as of December 31, 2021)(as of December 31, 2021)

We are always looking for products with professional specifications to provide
total support to manufacturing sites nationwide.

Change in Number of Suppliers

Product Request Advertisements
We publish advertisements
to recruit new suppliers innewspapers and on our
website. We are opening avenues to products by placing
product request advertisements.

59

2,477 2,537
2,339 197 205
154

27

212

3,220
2,966
360
304

2,185 2,280 2,332 2,440 2,662 2,860
2018

2019

2020

2021

2022

CategorySales$22 million(+8.4%)$89 million(+11.2%)$27 million(+7.1%)$74 million(+8.6%)$45 million(+16.2%)$40 million(+22.0%)391,391

3.4%

45,396

1.1%

86,5184.4%

248,400
301,375
363,729
180,394*Net Sales of New TRUSCO Orange Book Products

1.3%
3.6%
2.2%
2.0%

08
09

Sales

Chemical
Products$126 million

Hand Tools

Electric,
10 hydraulic, andpneumatic tools
Protective
11
equipment(+7.5%)$159 million(+10.0%)$196 million(+7.0%)$201 million(+1.6%)

12 Safety goods$47 million

Packaging
goods
Construction
14 and Lighting
Equipment$142 million

13(+9.5%)(+7.6%)$187 million(+3.4%)

Sales
Constitution ratio

10,951

6.2%

Category
15

103,6507.7%

16

104,6069.5%

17

188,458

9.8%

18

58,3052.3%

1936,0296.9%

20

126,971

9.1%

21
22

Loading
goods
Logistics/Storage Supplies
Conveyanceequipment
Cleaning andsanitation goods
Environmental
improvement
goods
Gardeningequipment
Office Supplies/Storages
Researchequipment

23 Other products

36

Integrated Report 2022

Sales
$72 million(+4.5%)$118 million(+11.4%)$84 million(+12.7%)$112 million(+3.9%)$85 million(+7.9%)$15 million(-11.3%)$91 million(+7.0%)$50 million(+9.0%)

2017

Sales
Constitution ratio

22,0293.5%

78,448

5.7%

619,495

4.1%

37,102

5.5%

22,293

4.2%

25,0570.8%

173,637

4.4%

119,606

2.4%

156,410

Click here for a list of the main manufacturers that we offer products from ◀ OPEN

36

40

2018

2019

212
46

49

2020

2021

Ansell(Belgium)

GEDORE(Germany)[Gloves and protective
clothing][Work tools, tool carts,and torque wrenches]

Uvex(Germany)[Protective tool cases][Safety glasses, gloves,and ear plugs]

PB Swiss Tools(Switzerland)

Comau(Italy)[Screwdrivers and Allen
Wrenches][Exoskeletons(power-assisted suits]

OPEN ▶

2022

Taiwan office (Scheduled to
be opened at the end of 2022)

Germany office

SwedenNorwayDenmark
The Netherlands
Germany
PolandSlovakia
Austria
GreeceBelgiumUK
IrelandFranceSwitzerland
Portugal

Pelican(USA)

55(planned)

TOOLs” website.

Major Overseas Suppliers (honorifics omitted)

Numberof Items

205

China
India

Spain

Thailand officeSatoru Yamada,
Office Head

Italy

Shota Sasaki,
Supervisor

CanadaSouth Korea
TaiwanVietnamThailand

Masato Nishimura,
Office Head

Seika Ryu, Deputy
Office HeadUSA

Sri Lanka
IsraelSingapore
TRUSCO NAKAYAMA CORPORATION (THAILAND) LIMITED
Kazuaki Harada, Office Head

Corporate Data

Tools for02
machine tool
Measurement03
equipment
Mechatronics
04
parts
Hardware05 and building
materials
Pneumatic
06
accessories
Electronic
07
Devices(+10.4%)

Category

Numberof Items

154
30

197

360

The Nakayama
visually impaired
welfare foundation$69 million

Sales
Constitution ratio

304

Suppliers Overseas
Overseas ProductSales(unit: Million USD)

Relationships with
Stakeholders

01 Cutting Tools

Numberof Items

Number of Overseas Suppliers and Number of Overseas Product Sales

At present, TRUSCO handles the products of approximately 304
overseas suppliers from 30 countries and stock them as Japanese
products in distribution centers across Japan. With a wide-ranging
lineup of overseas pro tools not readily available inJapan, we offer users increased convenience and options. We also have a website “Sekai no PRO TOOLs”
where we provide promotional information based on
Access here to seea wealth of information.
the “Sekai no PRO(planned)

Sales and composition ratio by product category in the Trusco Orange Book (fiscal year ended December 31, 2021)

Sales are growing in proportion to the increase in overseas suppliers.

Corporate
Governance2017

TRUSCO also carries productsthat are difficult to obtain in Japan

Environmental
Efforts

We have a list of suppliers that wehave rejected because they do not
do what we are looking for. The
new ideas list is made available
on our intranet and employees inthe sales field contribute to thelist daily in order to cultivate suppliers.

Total Number of Suppliers
Suppliers Overseas
Suppliers in Japan
2,652

Corporate
Governance andSocial Contributions

Yattemasen List

Increasing our suppliers by around 100 more annually

New Zealand

TRUSCO imports PRO TOOLs from 30 countries around the world

Integrated Report 202241

2,966 manufacturers

Only some manufacturers are listed (296 companies).
A-E
A&D Co., Ltd.
ABC TRADING Co., Ltd.
ACHILLES CORPORATIONALINCO INCORPORATEDAM PRODUCTS, Inc.
AMANO CORPORATIONANEST IWATA Corporation
AQUASYSTEM Co., Ltd.
AS ONE CORPORATIONASADA CORPORATIONASAHI KASEI ADVANCE CORPORATIONASAHI METAL INDUSTRY Co., Ltd.
ASAHI SANGYO
Asahipen Corp.
ASICS Corporation
ASOH Co., Ltd.
ATOM CORPORATIONBELLSTAR ABRASIVE MFG. Co., Ltd.
BIG DAISHOWA Co., Ltd.
BLASTON
Bosch
BURRTEC Co., Ltd.
CAR-BOY CORPORATIONCEMEDINE Co., Ltd.
CHIYODA TSUSHO Co., Ltd.
CHUHATSU HANBAI Co., Ltd.
CHUKOH CHEMICAL INDUSTRIES, LTD.
CKD CORPORATIONCOSMO BEAUTY Co., Ltd.
CUSTOMDAIDOHANT Co., Ltd.
DAIHEN Techno Support Corporation
DAIKEN Co., Ltd.
DAILITE Co., Ltd.
DAINICHI Co., Ltd.
DIATEX Co., Ltd.
DIC PLASTICS INC.
DJI JAPAN
DUNLOP HOME PRODUCTS, LTD.
DuPont Toray Specialty Materials K.K.
Earth Chemical Co., Ltd.
ELECOM Co., Ltd.
ELEPHANT CHAIN BLOCK Co., Ltd.
Elleair Business Support Corporation
ENDO KOGYO CO., LTD.
ENGINEER INC.
ERECTA INTERNATIONAL CORPORATIONEXEN CORP.
F-J
FUJI GLOVE Co., Ltd.
FUJI TOOLSFUJII DENKO Co., Ltd.
FUJIIMPULSE Co., Ltd.
FUJISAWA INDUSTRY Co., Ltd.
FUJIYA Co., Ltd.
FUSO SEIKI Co., Ltd.
Gentos Co., Ltd.
Gifu Plastic Industry Co., Ltd.
H.H.H.MANUFACTURING CO.
HAGIHARA INDUSTRIES INC.
HAKKO CORPORATIONHAKKO ELECTRIC CO., LTD.
HAKKO HANBAI Co., Ltd.
HAMMER CASTER Co., Ltd.
HASEGAWA KOGYO Co., Ltd.
HASHIMOTO CLOTH
HATAYA LIMITEDHENKEL JAPAN LTD.
HIKARI Co., Ltd.
HIOKI E.E. CORPORATION
Hitachi Global Life Solutions, Inc.
HONDA MOTOR Co., Ltd.
42

Integrated Report 2022

HOUSE BMHOZAN TOOL INDUSTRIAL Co., Ltd.
ICHINEN MTM CO., LTD.
ICHINEN TASCO CO., LTD.
Icom Inc.
IKURA SEIKI Co., Ltd.
IMAO CORPORATION
Inaba Corporation
Industry Kowa Co., Ltd.
Innovex Co., Ltd.
INOAC CORPORATIONIRIS OHYAMA Inc.
ISCAR JAPAN LTD.
ISHIHASHI SEIKO
Ishikawa Seisakusho Corporation
ISHIZAKI ELECTRIC MFG. Co., Ltd.
ITW PP&F Japan
JAPAN GREEN CROSS, INC.
JAPAN Vilene COMPANY, LTD.
JEFCOM
JOHNAN CORPORATIONJVC KENWOOD Corporation
K-O
KAJIMEIKU Co., Ltd.
Kaneko Mfg Corporation
KANETEC Co., Ltd.
KANTOH Co., Ltd.
KARCHER JAPANKATSUYAMA KIKAI, LTD.
KAWANISHI INDUSTRY Co., Ltd.
Kikuchi Sheet Co., Ltd.
KING JIM Co., Ltd.
KINKI SEISAKUSYOKITO CORPORATION
Ko-Ken Tool Co., Ltd.
Koki Holdings Co., Ltd.
KOKUYO Co., Ltd.
KOMY Co., Ltd.
KONISHI Co., Ltd.
KONNO CORPORATIONKONOEKOSHIN LTD.
KOTOHIRA
Kowa Company, Ltd.
KUCHOFUKU CO., LTD.
kuraray trading Co., Ltd.
KURE ENGINEERING Ltd.
KURODA BRUSH
KYOCERA CORPORATIONKYOMACHI Co., Ltd.
KYOTO TOOL Co., Ltd.
LED LENSER JAPAN Inc.
LOBTEX Co., Ltd.
MAEDA SHELL SERVICE Co., Ltd.
Makita Corporation
MARUWA CHEMICAL Co., Ltd.
MARUYASU KIKAIMARUZEN FABRIC & Co., Ltd.
MASADA SEISAKUSHO Co., Ltd.
Matsuura Industry Co., Ltd.
MAX Co., Ltd.
MAX Corporation
Maxell Holdings, Ltd.
Maxell Izumi Co., Ltd.
MCC CORPORATIONMIDORI ANZEN Co., Ltd.
MINITOR Co., Ltd.
Mitsubishi Chemical Infratec Co., Ltd.
MITSUBISHI MATERIALS CORPORATIONMITSUGIRON Co., Ltd.
MITSUI CHEMICAL, INC.
MITUTOYO CORPORATIONMIYANAGA Co., Ltd.
MIZUHO KASEI KOGYOMIZUMOTO MACHINE MFG. Co., Ltd.
MIZUSHIMA KOGYO
MOMENTIVE PERFORMANCE MATERIALS INC.

MOTOYUKI Co., Ltd.
MURAKI CO., LTD.
MURAKO Co., Ltd.
MURATEC-KDS CORP.
MUROMOTO TEKKO Co., Ltd.
MYZOX Co., Ltd.
NAIKI Co., Ltd.
NAKAMURA Mfg Co., Ltd.
Nakanishi Metal Works Co., Ltd.
NAKANISHI, INC.
NAKAO Co., Ltd.
NAKATOMI CORPORATIONNEWREGISTON Co., Ltd.
NICHIBAN Co., Ltd.
NICHIDO IND. Co., Ltd.
NICHIFU Co., Ltd.
NICHILAY MAGNET CO., LTD.
NIHON PISCO Co., Ltd.
NIHONSEIKI Co., Ltd.
NIIGATASEIKI Co., Ltd.
NIKKO Co., Ltd.
NIKKO STEEL WIRE RORE M.F.G. Co., Ltd.
NIPPECO LTD.
NIPPON FILING Co., Ltd.
NIPPON PAPER CRECIA Co., Ltd.
NIPPON PLASTER Co., Ltd.
NIPPON PNEUMATIC MFG. Co., Ltd.
NIPPON POP RIVETS AND FASTENERS LTD.
NIPPON RESIBON CORPORATIONNISSA CHAIN Co., Ltd.
NITOMS INC.
NITTO DENKO CORPORATIONNITTO KINZOKU KOGYO Co., Ltd.
NITTO KOHKI Co., Ltd.
NOGAWATERS Ltd.
NORITAKE COATED ABRASIVE Co., Ltd.
NORITSUISUNS TOOL CO., LTD.
O.H.INDUSTRIAL Co., Ltd.
Office Mine, Inc.
Okamoto Industries, Inc.
OLFA CORPORATION
Omikogyo Co., Ltd.
ORION MACHINERY Co., Ltd.
OSAKA JACK Co., Ltd.
OSAKA KAKUTA KOGYO CO., LTD.
OSAKA SEIKAN Co., Ltd.
OSAKA TAIYU Co., Ltd.
OSG CORPORATIONP-T
PANASONIC CORPORATION
Panduit Corp. Japan Branch
Pelican Products, Inc.
Pica Corp.
REX INDUSTRIES Co., Ltd.
Ridge Tool Company
RIKENOPTECHSaint-Gobain K.K.
SAKAI CHEMICAL
Sandvik
SANKIN CORPORATIONSANKO Co., Ltd.
SANKO INDUSTRIES Co., Ltd.
SANKO TECHNO Co., Ltd.
Sanritsu-kiki Co., Ltd.
SANSHIN METAL WORKING Co., Ltd.
SANWA SUPPLY INC.
SARAYA Co., Ltd.
SEISANNIPPONSHA LTD.
SEIWA ELECTRIC MAKER Co., Ltd.
SEKISUI CHEMICAL Co., Ltd.
SHIGEMATSU WORKS Co., Ltd.
SHIN-ETSU CHEMICAL Co., Ltd.
SHINFUJI BURNER Co., Ltd.
SHINKIGOSEI Co., Ltd.
SHINWA RULES Co., Ltd.
SHIZUOKA SEIKI Co., Ltd.
43

Integrated Report 2022

SHOWA DENKI Co., Ltd.
SHOWA GLOVESIMON CORPORATIONSINKO CO., LTD.
SISIKU ADDKREIS CORPORATIONSMC CORPORATION
Snap-On Tools JAPAN K.K.
ST PRO CORPORATIONSUGATSUNE KOGYO Co., Ltd.
SUGICOSUGIYASU Co., Ltd.
SUIDEN Co., Ltd.
SUIKO Co., Ltd.
Sumico Lubricant Co., Ltd.
Sumitomo Electric Industries, Ltd.
SUPER TOOL Co., Ltd.
SUS Corporation
SUZUKI KIKOH CO., LTD.
TAIYO KOGYOTAIYO SEIKI IRON WORKS Co., Ltd.
TAIYO, LTD.
TAKAGI Co., Ltd.
TAKAGI KOGYO Co., Ltd.
TANIZAWA SEISAKUSHO, LTD.
TEIJIN FRONTIER Co., Ltd.
TENMA CORPORATIONTERADA PUMP Co., Ltd.
TERAMOTO CORPORATION
Teraoka Seisakusho Co., Ltd.
THE YAMAZAKI CORPORATION
ThreeBond Co., Ltd.
TJM DESIGN CORP.
TOA TSUSHO Co., Ltd.
TOGAWA INDUSTRY CORPORATIONTOHNICHI Mfg Co., Ltd.
TOKYO MEDICAL Co., Ltd.
TONE CO., LTD.
TOP KOGYO Co., Ltd.
TOWA CORPORATION LTD.
TOYO KOKEN K.K.
TOYO MATELAN Co., Ltd.
TOYOTOMI Co., Ltd.
TSUBOSAN FILE Co., Ltd.
TSUKASA CHEMICAL INDUSTRY Co., Ltd.
TSURUMI MANUFACTURING Co., Ltd.
TUNGALOY CORPORATIONU-YUHT CORP.
ULVAC KIKO Inc.
UNIKA Co., Ltd.
UNION TOOLUNIT
VESSEL CO., INC.
Vilene Create Company, Ltd.
WAKITA Corporation
WAKOPALLET Co., Ltd.
Wera
YAESU MUSEN Co., Ltd.
YAMABIKO CORPORATIONYAMADA CORPORATIONYAMAHA MOTOR POWERED PRODUCS Co., Ltd.
YAMAMOTO KOGAKU Co., Ltd.
YAMATO SANGYOYAMATO SCIENTIFICS Co., Ltd.
YAMATO-SCALE Co., Ltd.
YAMATOSEITOSYO JAPAN CORPORATIONYAMAWA MFG. Co., Ltd.
YODOGAWA ELECTRIC TOOL MFG. Co., Ltd.
YODOGAWA STEEL WORKS, LTD.
YOKOHAMA OIL&FATS INDUSTRY Co., Ltd.
YOSHINO LIMITED.
YUEI Co., Ltd.
YUTAKA MAKE Co., Ltd.
Other
3M Japan Limited

Number of different products in inventory: 499,964
Cutting Tools

Chips(as of December 31, 2021)

Production Processing Tools

Environmental Safety Supplies

Cutting Tools

Threading cutting
tools

Magnetic Products

3D Measuring
Equipment

Calipers

Live Centers

ScalesLevel Adjusters

Construction Supplies

Floodlights

Ladders

Welding
Masks

Paint

ClampsChucksDrill Chucks

Safety Cones

Oil Heaters

Industrial Fans

Portable Air
Conditioners

Safety Signs

Sprockets

Poison Protection Masks

Safety Glasses

HelmetWork Gloves

Safety Shoes

Work Supplies

Generators

Valves

Silicone Grease

Submersible
Pumps

Lubricants

Logistics/Storage Supplies

Lubricants for
Food Machinery

Lithium Grease

Purified Water

Cutting Fluid

Conveyors

Containers

Hydraulic Jacks

Trailers

Hand Pallet Trucks

Pallets

Laboratory Supplies

Outlet-equipped
Retractable
Extension Cords

Engine Welder

Headlamps

Handsaws

Trolleys

Shelves

Disc Paper

Tanks

Loading goods

Office Supplies/Storages

Cutting Grindstones

Hand Soap

Hand Tools

WagonsCabinets

Office Supplies

Computer Mice

Clean Mats

Ultrasonic Cleaners

Stationery
Screwdrivers

PliersHammers

Explosion-proof Tools

Cable Cutters
Drums

Crimping Tools

Cutting Pliers

Steel Tool Boxes

Insulating Equipment

Electric Power Tools

Integrated Report 2022

Thermometers

44

Work benches

FlasksOil Dispenser Bottles

Shallow Trays

Tweezers

Industrial Vacuum Cleaners

Desks

High-pressure Cleaners

Office Chairs

Mops

Integrated Report 2022

45

Customer Support Feature
Aiming to provide customers the most convenient feature in procurement Pro Tool
The feature needed for use at manufacturing sites vary greatly according to the times. There are also different situations that makeprocurement challenging, such as work sites that are offline and performing product searches without knowing product serial
numbers. TRUSCO aims to provide the highest level of convenience in tool procurement in order to respond to any situation.

Value Creation Management
Policy

TRUSCO Orange Book
TRUSCO Orange Book - “Great Dictionary of Monodzukuri”
used at various manufacturing sites

Products

Our catalog lists every sort of PRO TOOL that is required on “manufacturing sites.” Thisis a professional tool catalog that supports efficient product search and procurement witha magazine-like composition that allows you to obtain delivery date information and findout about popular products at a glance. From 2020, the catalog page size was changed
to A4, allowing more information to be provided on a single page so thatyou can see more at a glance. We also offer the “TRUSCO Digital Orange
Book*,” which combines the reading ease of a printed catalog with theportability and searchability of the web.

The Orange Book Book Stand (single-piece book holder)
has been registered as a design*English version available

Distribution

TRUSCO Orange Book.Com
Product search site listed all the information users need toacquire PRO TOOLs

Sales
Digital Service

This comprehensive site supports product searches and the purchase of PRO
TOOL. Information on the products we handle is available, as are SDS forms (Safety
Data Sheets), schematics, and more. In addition, site members canrequest product estimates, place orders, and submit return requests
24 hours a day, and even check inventory in real time. It is a systemthat we are continuing to build in order to support smooth business
transactions and assist our customers in their sales activities.

The number of items listed on TRUSCO Orange Book.Com
is increasing daily

TRUSCO AI Orange Rescue
Listed items: approx. 508,000 items, Inventory items: approx. 429,000 items
Off-the-shelf rate: 84%, Manufacturers listed: 1,948 companies, Page count: 16,824, Weight 23 kg

developing not only catalog functions and web product searchfunctions but also AI-based product search services. We provide tools suitable for a variety of manufacturing sites, most ofwhich are linked to our inventory, to improve the convenienceof PRO TOOLs searches and procurement.

WEB

42

Integrated Report 2022

TRUSCO PRO TOOLMAGAZINE ICHIOSHI

This catalog gathers representative
excerpts from every product category
into one book.

This catalog features a lineup of PRO
TOOL required for construction andother work sites. The cover is UV laminated for improved water and weather resistance. This means that you
can even use it at work sites withoutworrying about it getting damaged.

This catalog magazine features upto-date information on items recommended by manufacturers.

Pages: 1,488 (A4 size)
Number of items listed: About 41,000
Number of manufacturers listed: 1,140
Price: $18 (excluding tax)
Note: A Thai version as well as a version
for the Indonesia market (2020-2021
version) have also been published.

(Registered Trademark)Pages: 708 (A4 size)
Number of items listed: About 24,000
Number of manufacturers listed: 695
Price: $9 (excluding tax)

Pages: 316 (A4 size)
Number of items listed: 349
Number of manufacturers listed: 292
Price: $4 (excluding tax)
Front Cover: 2018: Mansai Nomura
2019: Mari Watanabe
2020: Rie Tanaka
2021: Spotlight on craftsmen working at manufacturing sites
2022: Osamu Suzuki

COCOMITE
A guidebook for PRO TOOLs, COCOMITE features basic product knowledge,
simple explanations of points forselecting products, and more. Thispublication makes selecting products
more efficient.
Pages: About 964 (B5 size)
Price: $22 (excluding tax)
Note: An English version of this publication
titled COCOMITE UNIVERSAL is alsoavailable.

Corporate Data

The idea for the catalog was born fromthe concept that it would be moreconvenient for users if the catalogs of eachmanufacturer were consolidated and prices
as well as part numbers were integrated.

Starting with the 2023 TRUSCO
Orange Book edition, we will
reduce the page amount to half
to make each catalog thinnerand provide two-dimensional
codes so that readers canaccess a wealth of informationon the Internet in real time.

TRUSCO Construction Tools BOOK

The Nakayama
visually impaired
welfare foundation

Name of the company's comprehensive catalog changed from “Nakayama
Shouhou” to “Orange Book” in 2000
Note: Photo above shows the handbook version (small size version)of the Orange Book.

TRUSCO Orange
Book Jr.

Relationships with
Stakeholders&

Catalogs that fit diversifying sales channels

Corporate
Governance

Paper-based
Catalog

Quickly finds products even during fuzzy searches

Environmental
Efforts

We launched our first product catalog “Nakayama Shouhou”(“Nakayama Business Bulletin”) in 1964. At that time, there
were no catalogs that combined products from multiple manufacturers, and it was the first product catalog in the industry
that provided users with real convenience. Currently, we are“I'm looking for a woman's safety helmet.”

Corporate
Governance andSocial Contributions

Providing tools suitabale for manufacturing sites

AI Chatbot is a product search service that uses artificial intelligence (AI). It is capable of instantly finding the most suitable product from over 2.76 million items. Even
if you do not know the specific industry name for the tool, manufacturer name,product name, or model number, you can easily narrow down the
products you want using the voice search function and guided chatfunction. The AI “learns” the search results to improve accuracy day
by day, helping to improve the efficiency of operations.

Human Resources

AI Chatbot (automatic chat program) responds instantly
even voice searches

TRUSCO Orange Book 2022

Integrated Report 2022

43

Distribution Strategy

Fundamental improvement of distribution functions

2 runs/day(Suitable for small lot and
Fixed-Cost
Fixed-Cost
Based
Based
Distribution
Distribution
high frequency deliveries)

Variable-Cost Based Distribution

Fixed-Cost Based Distribution
Benefit increases as sales increase
Sales

Sales

Delivery Costs

Break-even
Point

Delivery Costs

Delivery Quantity

Delivery QuantityUsers

1 runs/day

1 runs/day

3 hoursun

3

2 runs/day

pro

x. 9

Planet Logistics System

0k

When an order is received by a Planet
branch, the goods are shipped directlyfrom the Planet distribution center tothe customer.

mSatellite
branch2 runs/day

2

Transport Service

Goods are delivered once per day via
other companies' delivery runs from
Planet distribution centers to customers
in areas that are difficult to reach using
regular runs.

Satellite Logistics System

Corporate Data

Ap

Direct Delivery Service

Products are delivered directly to the user
at the request of the customer. Freightcosts are paid for by the customer(see p.48 and p.53).

The Nakayama
visually impaired
welfare foundation

2

Stock
branch2 hourseR

Planetbranch1

4One-way: 1 hour

lit
tel
Sa

Distribution in its true form should allow employees who want to do theirbest to work hard and be challenged and allow both people and systems togrow permanently through challenges. Naturally, there should never be asituation where the safety of our members is threatened. We will constantly
review our workplace environment from the perspective of safety first andforemost as well as aim to create a distribution environment that attracts
highly motivated people with an eye on the future.

Other companies'
transport runs
Customers
Users

y

s/da

1 run

Far Away
Customer

PlanetLogistic
Centers

1m
30 k

Integrated Report 2022

A distribution framework in which people andsystems permanently grow

km

44

sec.

Fixed-Cost
Fixed-Cost
Based
Based
Distribution
Distribution

3

60

The functional enhancement of distribution is achieved by ensuring that
real issues, such as running out of goods, quantity shortages, misdeliveries,and environmental improvements in warehouses, that interfere with thept(Not suitable for small lot andVariable-Cost
Variable-Cost
Based
Based
Distribution
Distribution
high frequency deliveries)x.

Rapid problem solving

vehicles%Variable-Cost
Variable-Cost
Based
Based
Distribution
Distribution

4

Beyond achieving the ultimate in immediate delivery, we are sure that theexcitement and joy that will make customers say “TRUSCO’s service is reallygreat! Thank you!” await us. We want to achieve a level of distribution thattakes on the challenge to provide the “fastest,” “shortest,” and “best” deliveries
as all members of TRUSCO constantly seek to improve convenience in order torealize our dreams. We want to see the Company contribute to Japan's
manufacturing industry with the best service that no one has yet experienced
by refining the uniqueness of distribution with our originality and ingenuity.

pro

Optimization of all processes from procurement to supply leads to overall
optimization of the supply chain. We aim for a level of distribution with aneye on becoming a “platform holder” that supports manufacturing.

vehiclesThroughout Japan, TRUSCO has built delivery routes that trace planet-like orbits around our distribution centers.
From this, we have named our distribution centers “Planets.”
TRUSCO delivery routes

Ap

Optimization of our entire distribution service

vehicleRoutes that achieve immediate delivery (Planet & Satellite Distribution System)
Hiring more full-time drivers to improve our level of servicerox.

Strengthening elements
to achieve a distribution
service of the highest
standard

vehiclesIn fixed-cost based distribution, delivery costs remain fixed even if sales increase.

App

Innovation

We have created a unique logistics system that establishes fixed
freight costs. In contrast with variable-cost based distribution wherecosts are incurred for each individual delivery as with express homedelivery services, etc., fixed-cost based distribution involves
using fixed delivery routes so that delivery expenses are fixed regardless of the quantity of items delivered. As a result, we are able
to provide better services to our customers, such as free deliveries(two deliveries per day), making products returnable if they are items
that we stock (see p.34), and Naojiro Repair Workshops (see p.53)
which handle repairs when necessary. In addition, because we have
fixed delivery routes, we can deliver and collect cargo in containers
without using cardboard boxes or other packaging materials, thus
realizing low environmental impact distribution (see p.73).

min.

pt

Relationships with
Stakeholders

Quality andEfficiency

Unique fixed-cost based distribution

hrs.

%

Corporate
GovernanceofDistribution Level
Serviceof the Highest
Standard

20 6 53

Delivery Lead Time

Supporting Japan’s manufacturing industry

Priority to
SafetyHuman
Resource
Development

TRUSCO
delivery routes

Number of Third-party
Delivery Runs
TRUSCO delivery routes
Percentage of TRUSCO
delivery runs

Environmental
Efforts

We aim to realize distribution DX by making full use of digital technologies,
such as advanced demand forecasting using AI and visualization of the entire
distribution process by introducing state-of-the-art logistics equipment. We
will deeply collaborate with our partner companies to transform distribution
in order to provide “one-of-a-kind” services to our customers.

received to delivery (see p.48). We will address issues that emerge by
visualizing what immediate delivery is and establish a system capable ofrealizing the “fastest,” “shortest,” and “best” deliveries in the industry.

Ratio of products delivered fromour company stock among our
total number of orders.

Corporate
Governance andSocial Contributions

The challenge of distribution transformation

We also believe that “Immediate delivery is the greatest service” and analyze the lead time for each order from when an order is

91.3 +0.3
+1
161
+7
117
+1.4
42.1

Stock Hit Rate

Human Resources

Our source for developing business is our inventory. We will improve ourlevel of our immediate delivery system by thoroughly developing ourinventory capabilities and maximizing the power of our inventory. We will
also improve the accuracy and speed of solving of problems that impede
convenience by improving operations and facility utilization rates tocontinuously raise the level of our functions.

We have introduced the world’s most advanced logistics facilities
to promote labor saving and automation. For Planet Aichi, which iscurrently being conceptualized, we are also making use of the latest
technologies, such as virtual simulation using a digital twin (see p.48).

About 10,000 to 30,000 items are stored in basic inventory at satellite
stock branches for future delivery to customers. Other goods are replenished at the branch through satellite runs from the distribution center
once a day and are delivered the following morning.

Integrated Report 2022

Digital Service

Distributions processes are becoming increasingly sophisticated with
cutting-edge digital technology, distribution equipment control, etc. Human
resources are the key to fully utilizing our distribution assets, improving customer convenience, and strengthening distribution functions. We will strengthen
human resource development that supports our distribution service.

only in the quantity needed.”

Costs/Sales

Human resource development for advanced distribution

Logistic Centers
Stock Centers

Sales“Highest standard” means to provide the highest level of convenience in the
PRO TOOLs business domain.
We will further refine our uniqueness in distribution, such as one-stop
procurement by assorting all kinds of commercial materials required at
manufacturing sites and developing a distribution network that covers theentire country. TRUSCO aims to provide the highest level of distribution
service by upgrading and leveling out our distribution functions and taking
on the challenge of the new distribution DX domain.

level of service that we provide are not overlooked or neglected, but solved.
What is important is the speed at which issues are resolved. Therefore, wewill build an organizational structure that enables quicker problem solving.

17 locations
10 locations
2,836,392 +1,173,239
3,396,286 +677,072
Labor cost to ship one order
-$0.1
$1

27

Number oflocationsdistribution bases
Number of packages delivered
via Direct Delivery Service
Number of orders delivered
via Direct Delivery Service

We are evolving logistics to meet the request from our customers,
we will deliver “Just what is needed, only when needed,

Distribution

Providing a distribution service of the highest standard

Distribution Strategy Key Indicators

Costs/Sales

Hideki Naoyoshi

Realizing the “fastest,” “shortest,” and “best”
deliveries in the business

Products

Director
General Manager of the Distribution Department

Distribution System

Value Creation Management
PolicyAccelerating distribution innovation inpursuit of the ultimate type of immediatedelivery that no one has yet experienced45

6

Introduction of a cutting-edge distribution system

SAS (Systema Streamer)/
Shuttle Rack (high-speed picking and sorting equipment)

Utilizing a variety of logistics equipment according to
product size and shipping frequency

Our distribution centers, which house the world's most advanced logistics
equipment, are each truly a “logistics wonderland.” We have introduced
a variety of logistics equipment and facilities to promote labor saving
and automation. We continue to expand the number of items in stockand strengthen our immediate delivery system by realizing high-density
storage in logistics equipment according to the size of the product andfrequency of shipment, as well as high-speed receiving/shipping throughautomated sorting and packaging.

Large

8 Electric moving
pallet racks

7 Automated pallet
warehouse

PalletRacks

Product Size

4 Butler®
Shelf Area

6 Automated bucket warehouse

Scan the QR code to watch video.
Small
Low

Labor saving capability
Distribution Center where the technology was introduced

Shipping Capacity 110 shipments/h (1 station)

Sorting capacity of 1,800 containers/hWork Capacity Work Performed by approx. 3 Workers/hTohoku2.5x more storage capacity

Tokai

Tohoku Saitama East Kanto South Kanto Tokai Shiga Osaka Kobe

Shipping
Frequency

Saitama
Osaka

East Kanto

South Kanto

Kobe

High

Butler® (Automated conveyance robots)

7

Automated pallet warehouse8

Electric moving pallet racks

10 Just fit BOX

®

Sales

4

AMR (Autonomous Mobile Robots)

This high-speed load assorting equipment for automated warehouses
can simultaneously perform load assorting and sorting of goods. This
reduces the work and time involved for sorting and transport.

Distribution

5 AutoStore

We offer high-density storage of buckets (containers) of small- and medium-sized
goods that are characterized by many types and relatively low inventory volume
for each product. Cranes are used to automatically transport the buckets. This allows for many products to be efficiently managed by a small number of workers.

Products

Shelf Area

Logistics Wonderland Planet Saitama

1

9

Automated bucket warehouse

Value Creation Management
PolicyLogistics Wonderland(Automated Boxing Machine)

Digital Service

Automated conveyance robots lift shelves and transport them to workers
in the warehouse. This reduces workers’ time spent walking and raises
the efficiency of picking work.
Work Capacity Work Performed by approx. 2.5 Workers*/h (1 station)

Reaches speed of 5.8 km/h when moving straight forward

2x more storage capacity*

Saitama

3 Inspecting/Sorting3

Shipping Capacity 35 shipments/h (1 station)

2x more storage capacity Saitama

Packaging Capacity 10 Workers/h

3x more storage capacity

5

AutoStore

Shiga

Saitama North Kanto East Kanto

9 Load Assorting

Relationships with
Stakeholders

Packaging Capacity 24 Workers/h

2x to 3x more storage capacity Tohoku

720 packages/h per line

North Kanto Saitama South Kanto

TohokuEast Kanto
Osaka

Kobe

Saitama

Tokai

Corporate Data

Work Capacity Work Performed by approx. 3 Workers/h (1 station)

The Nakayama
visually impaired
welfare foundation

Shipping Capacity 120 shipments/h (1 station)

Tokai

10 11 12 Packaging/Shipping

Palletizing robots are robots that perform loading and unloading operations. They are mainly used for sorting goods packed using I-Pack® to
improve accuracy and work quality.

Work Capacity Work Performed by approx. 3 Workers/h (1 station)
Saitama

3 Sorting/Inspection

I-Pack places delivery slips inside packages and handles packaging aswell as labeling all at high speeds. Automation leads to shorter packing
time and better quality, the keys to our Direct Delivery Service (see p.48).

Sorting Capacity 200 product types/h
TohokuEast Kanto Tokai Osaka Kobe

12 Palletizing Robots

AutoStore maximizes space efficiency by stacking bins (plastic containers) from the floor tonear the ceiling. The use of robots to transport
containers to improve efficiency and reduce theamount of labor for loading/unloading work.

South Kanto

Sanyo

TohokuSaitama

11 I-Pack® (high-speed automated packaging and shipping line)

This equipment for sorting products eliminates sorting mistakes by people, improving precision and speed. This is because the lid of the container where a product is to be placed
will open (or a light will shine to indicate which container),
prompting the worker to simply place products inside.

Saitama

Kobe

120 packages/h
North Kanto

Corporate
Governance(high-precision storage system)

East Kanto South Kanto TokaiWork Performed by approx. 1.5 Workers/h (1 station)

4 5 6 7 8 Storing/Picking

GAS (Gate Assorting System)/
DAS (Digital Assorting System)

Reaches speed of 3.6 km/h
when moving straight forward

Integrated Report 2022

This automated boxing machine reads the three linear dimensions of large and irregular-shaped items, which are difficult
to pack, and creates a box to fit its size. Utilizing this machine
results in improved efficiency and packaging quality.

Environmental
Efforts

AGV(Automatic Guided Vehicles)

Automatic Guided Vehicles automaticallytransport products along magnetic tape laidout on the floor of the Distribution Center. It
improves transport efficiency through laborsaving.

46

Saitama*Independent estimate based on TRUSCO inventory items.

1 2 Receiving/Transporting2

TohokuMovable pallet trucks reduce the numberof passageways and expand storage spacewithin warehouses. It increases the storage
efficiency of large and heavy goods.

Corporate
Governance andSocial Contributions

Shipping Capacity 70 shipments/h (1 station*)

This effectively uses space to enable efficientstorage of large and heavy goods. Large-size
cranes are used to automatically transport
goods to increase work efficiency.

Human Resources

AMRs are used for pallet transfer, especially after receiving large items orlarge quantities of goods for which pallet transfer is a labor-intensive andtime-consuming process. This contributes to a reduction of man-hours
through labor savings.

Sorting Capacity 300 product types/h
Osaka

Saitama

Integrated Report 2022

47

Enhancement of I-Pack® has improved our Direct Delivery Service
Changes in Number of Direct Deliveries to Users and Sales
Number of packages delivered
via Direct Delivery Service(Number of orders delivered
via Direct Delivery Service)

Our Direct Delivery Service is an environmentallyfriendly approach which reduces shipping costs
and associated work by half

283

233
(271)

200
(243)
130

Introduction of Non-Fixed Location (Free Address) Inventory Management Systems

Unit: 10,000

380
(400)

(339)

194

Sales (Million USD)

132

139

TRUSCO is introducing inventory management systems that replace the fixed location method that assigns one location to one
product with a free location method that fills the space opened
by inventory depletion with a separate in-shipped product. Thisis a system where product size, rank, and storage equipment
capacity data are registered in advance. When products arrive,
they are directed to the best available location in the warehouse.
Fixed Location
Product
size

2019

2020

2021

B

B

(planned)

A

A

C
B

Distribution
AI

Introducing unique demand forecast AI provided by Cinnamon Inc. enables
total optimization of product inventory and procurement. Optimizing theamount and lineup of product stock, inventory placement, management
costs, procurement sources, etc. will improve product assortment and leadto an increase in stock hit rate.
Procurement Information
User
Product
Information
Information

Acceleration of Total Optimization
through the Use of Demand
Forecast AI

Rapid Problem Solving
High-speed PDCA Cycle

Order Receipt
Weather
Performance
Information
Site/Inventory Information

Since locations are fixed, there is
ample space.
Also, if a product cannot be stored,
it can be placed on top of the shelf.

B
B

A
C

Can be stored in
multiple locations as
appropriate to thestorage equipment
capacity.

Number of Items Per Tsubo (3.3 ) at Main Distribution Centers
Unit: Item

60.1

56.1
27.9
2011

46.2

36.1

31.9

2.1x

in 10 years
2012

2013

2014

2015

2016

2017

2018

2019

2020

2021 (year)

Distribution centers with seismic isolation equipment (3 distribution centers)

Due to stocking a large number of chemical products that pose a risk ofignition or explosion, we have added hazardous material warehouses at our
distribution centers. These warehouses are equipped with halon gas jets to
extinguish fires for increased safety. In addition, for products with quality
assurance expiration dates, we have established a system that enables us
to manage such products and check product expiration dates accurately
and efficiently even when the number of product items increases.

When the Great East Japan Earthquake occurred in March 2011, Planet
Tohoku was unable to ship products due to them falling from the shelves,
even though many PRO TOOLs were needed for disaster recovery. Basedon this experience, the distribution centers built since then are equippedwith seismic isolation equipment as standard equipment so that we canfulfill our responsibility to supply customers even in times of disaster.
Centers with equipment installed Osaka Saitama South Kanto

Hazardous material warehouse at Planet
Saitama (approx. 284 )Seismic isolation equipment in Planet Saitama

Environmental
Efforts

Enhancing safety by providing hazardous materials
warehouses and product expiration date management

Visualization of the “fastest,” “shortest,” and “best” deliveries in the industry
Shift Toward In-House Deliveries(117 TRUSCO delivery vehicles (42.1%))

We aim to shorten lead time, the time fromwhen an order is received to product delivery
by analyzing each order. Visualization of theprocess until delivery is completed allows us tosolve problems that emerge.

T-Rate (see p.60), a communication tool, provides customers with real-time information ondelivery status, including delivery vehicle location, estimated time of arrival, and list of products to be delivered, for greater convenienceand improved operational efficiency.

We are promoting the hiring of full-time delivery drivers (for in-house deliveries) to improve
the quality of deliveries to our customers.

Planetdistribution
centerEstimated arrival
time display

Map showing driver's
current location

Increasing our number of delivery
vehicles annually
Changes in percentage of TRUSCO delivery vehicles
and changes in number of overall delivery vehicles
and TRUSCO delivery vehicles

30.4

Satellite Stock Branch

293

89

20 hrs., 6 min., 53 sec.
Lead time is visualized and shared

48

Integrated Report 2022

2018

T-Rate greatly reduces delivery status related inquiries

45.2

Number of total
delivery runs
Number of TRUSCO delivery routes

270

98

110

2019

2020

Consolidated
Accounting Started

42.1

278

117
2021

281

127
2022

As a PRO TOOLs supplier, we also stockpile at least a six-month
supply of products (202 items) such as generators, which are needed even in times of disaster, so that we can be of use to the community in times of emergency. In addition, we have built a systemthat supports other distribution sites even when a distribution line iscut, such as when disaster strikes a supply route. Distribution sites
are located throughout Japan to reduce risk.

● Chemical Protective Clothing● Work Gloves● Disposable Dust-proof Masks● Helmets● Inverter Generators● Flashlights● Submersible Pumps● Safety Goggles● Sandbags● Professional Safety Boots● Dry Cell Batteries● Gas Canisters● Oil Heaters● Sleeping Bags

● Portable Gasoline Cans
● Solar Chargers● Portable Toilets● Foldable Mats,

Corporate Data

Customers

35.9
273

40.7

Extensive inventory of emergency disaster stockpiles(202 items, 6-month supply)

The Nakayama
visually impaired
welfare foundation

Percentage of TRUSCO
delivery runs (%)

TOPICS

Products with quality assurance
expiration dates are managed
using quality control labels

Relationships with
Stakeholders

Delivery Status Visualization

Corporate
Governance

Providing Delivery Lead Time in
Numbers (20 hrs., 6 min., 53 sec.)

Corporate
Governance andSocial Contributions

Analyzes and simulates how reality changes when deciding to change
various parameters

A

Shipping Frequency

Flat shelves are filled withmerchandise making use of
all available space

AutoStore containers are
stored closely together

High

Human Resources

Virtual space simulation speeds up problem solving at distribution sites

Distribution
AI

Large Low

Digital Service

Concept: [Simulate] Store and Decide

Total optimization of stocking and procurement
through demand forecast AI

Storage equipment
capacity

Sales

This involves reproducing a warehouse environment digitally based on
information acquired from the real world warehouse (human, material, androbot conditions). By introducing this “digital twin,” we can quickly solve
problems through preliminary simulation and analysis.

Parameter Conditions
Simulation

Small

Product size

Taking on the Challenge of Creating a Digital Twin

Reproductionof Reality

Shipping
Frequency

Products which there
is no room for on the
primary shelves

A

Distribution DX Efforts

Non-Fixed Location
Product
size

Distribution

2022 (year)

Consolidated
Accounting Started

There is no need to set up storage locations as found in a fixedlocation based system. With capacity control, the system does
not leave wasted space as it is, but makes effective use of it,
achieving high-density storage.
Over the past 10 years, the company has expanded its highdensity storage level by approximately 2.1x (number of items per
tsubo at main distribution centers).

Products

Since products are shipped directly to the users when using our Direct
Delivery Service, which is being strengthened by the Company, delivery
times, packaging material amounts, shipping costs, and the environmental burden can be reduced by half. We are able to provide this service
because of our six high-speed automated packaging and shipping lines,
each referred to as “I-Pack®” which are located throughout Japan. At 720
packages per hour per line, we automatically pack and ship orders at highspeed. We will make our Direct Delivery Service common practice andassociate it with environmental conservation (see p.53).

High-density Storage, Quality Control, and Response to Emergencies

Value Creation Management
PolicyTowards Low Environmental Impact
PRO TOOLs Distribution● Hand Soap

etc.

(planned)

Integrated Report 2022

49

Sales Strategy

Making needed products available atmanufacturing sites

companies

companies(as of February, 2022)

incidents

Machinery Tool Dealers
Welding Material Dealers, etc.

4,871

Manufacturing Industry, Construction-related Businesses, etc.

*TRUSCO does not sell any product directly to users.

Strengthening our repair service to promote reuse of tools
We have newly established our Naojiro section, a section specializing inrepair services, to strengthen our reuse activities, including repair of
power tools and engine equipment, resharpening of cutting tools, andcalibration of measuring instruments. By using our delivery service tocollect repaired products, there is no need to send them, no packaging
work, or no shipping charges. (see p.53)

New sales style efforts
If the contents of daily sales communication and proposal materials are notsecurely stored and shared, customers will be inconvenienced when the
person in charge takes a leave of absence or the person in charge ischanged due to a personnel change.

When a customer makes an inquiry, anyone can check the CRM andrespond in real time, leading to improved service.

Our route is to do business with customers in a wide range of industries, such as with machine
tool dealers who mainly handle equipment and factory auxiliary materials, and welding material
dealers who mainly handle high-pressure gas. By having sales offices throughout Japan, weare able to respond quickly to any problems and strengthen the cooperative system of eachregion. In recent years, we have introduced MRO Stocker (see p.52), which is like “Okigusuri,”a system of “Use First, Pay Later” that has been around for many years in Japan for medicine,
but for tools. It allows us to provide high-quality product, logistics, and digital services.

e-Business RouteOnline Shops, etc.

185

Face Phone enables face-to-face online businessmeetings (Maika Shiraishi, Osaka Branch)

Manufacturing Industry,
General Consumers, etc.

Providing high quality services required for e-businessWe are developing business for mail-order companies that sell products via theInternet and business that links the purchasing systems utilized by users with
our electronic catalog (Orange Commerce (see p.53)). By linking data in real timeand visualization of the procurement process, we are helping our customers to
improve order efficiency.

Environmental
Efforts

Introduction of CRM, a system for centralized management of customer information

Toward a sales style that further utilizes digital technology

Corporate
Governance andSocial Contributions

Utilizing MRO Stocker, users experience zero delivery wait time. Thismeans that customers can focus on sales activities to users by reducing
the number of daily ordering and delivery operations. (see p.52)

TRUSCO NAKAYAMA CORPORATION (THAILAND) LIMITED
PT. TRUSCO NAKAYAMA INDONESIA

Human Resources

The spread of Covid-19 triggered a shortage of goods due to stagnant
imports, a shortage of materials due to the resumption of economic activity,and price hikes. We will fulfill our responsibility to supply products under
any circumstances by utilizing our unparalleled inventory.

Factory RouteBrancheswithinventory

Digital Service“TRUSCO will deliver” - Strengthening of ourimmediate delivery system

By shipping directly from our company to users, we are able to reduce theamount of packaging materials and fuel used as well as the amount of CO2
emitted, leading to a reduction in environmental impact. This also contributes
to the reduction of delivery work for customers and the expansion of sales
channels to distant areas where standard delivery is not possible. (see p.53)$1,482 million Home center route $165 million
Sales
Overseas Routee-Business Route $402 million$15 million
Total$2,066 million
Numberof sales Japan 59 locations
29 locations Overseas 2 locations
branches
No. ofNumber of
Number ofSales Accounts 29,561 +2,011
customers Companies 5,527companies +12
Number of companies connected
2,042 companies +675
to Orange Commerce
Under
NumberMRO Stocker introduced 329 locations +282
negotiation 513 incidents
Factory RouteSales

In a rapidly changing business environment, our customers face a wide
range of challenges. We conduct sales activities to solve these various
issues by making optimal proposals from our management resources,
including products, distribution, and digital technology.

Strengthening our Direct Delivery Service capabilities

We are grasping the latent needs of ourcustomers that are not quantified andare working to solve their problems byutilizing our product, logistics, and digital services. By providing services suited to the characteristics of each routeand realizing one-stop purchasing from
customers to users, we will continue tocontribute to improving productivity andsales in the entire industry.

Sales Strategy Key Indicators

Distribution

Providing the best proposals to solve ourcustomers' issues

Kazuo Nakai

One-stop purchasing that integrates products, logistics, anddigital services

Products

Director
General Manager of the Sales Department

Route specific strategies

Value Creation Management
PolicyAiming to become a supplier that is neededby our customers by accurately identifying
their changing needs

We provide support for user procurement efficiency

Home Center Route104

Outdoor Work, General Consumers, etc.

Corporate
GovernanceHome Centers
Pro Shops, etc.

Supporting businesses that integrate physical and online businesses

Addressing environmental issues is an important mission of our corporate activities

Integrated Report 2022

Overseas Manufacturing Industry, etc.

Business meeting with a customer to solve a problem(Nozomi Fukuhara, a member of both the Osaka Branch and HR Support Section)

This is the route we take to do business with overseas subsidiaries of domestic
customers and customers who handle local machinery tools. We have local subsidiaries in Thailand and Indonesia, where we provide the same quality of service
as in Japan. We are contributing to the development of manufacturing in thoseregions by utilizing our unique strengths such as providing catalogs and inventory for those local markets.

Corporate Data

50

367

Overseas business based on our unique strengths

Offering environmentally-friendly products
Demand for products related to EVs and carbon neutrality is expected toincrease in the future. We will accelerate the supply of products tomarkets related to the environmental industry by leveraging our businesswith over 2,900 suppliers.

Overseas Dealers, etc.

Expanding Private Brand (PB) business at home
centers throughout JapanThe Nakayama
visually impaired
welfare foundation

Overseas Route

Growing awareness of environmental issues has led to an increasing
demand for manufacturing suppliers that are actively involved in environmental conservation activities.

Relationships with
Stakeholders

The home center route involves doing business with home centers that have large
stores nationwide and professional stores that serve craftsmen as customers. In
recent years, we have been working to integrate physical and online businesses bypromoting services that allow users to pick up products in stores in response to thegrowing demand for omni-channel services that link stores and mail-order sites.

After installation, users, customers, and our employees continue to hold regular business meetings.
(Right: Eri Tomokane, a member of both the Osaka Branch and MRO Stocker Promotion Section)

TRUSCO Orange Book Junior (overseas version)

Integrated Report 2022

51

Direct Delivery Service

MRO Stocker

Environmental Conservation Through a
Wholesaler-based Direct Delivery Service

An MRO Stocker installation

MRO Stocker realizes zero cost in three areas$0

Our Direct Delivery Service canreduce the following by half

Delivery time

0

min.

Unnecessary orders,
including duplicate orders
between departments

Number of unnecessary orders place0

Orange Commerce(electronic purchasing system)

Repair Workshops“Naojiro”

Corporate
Governance andSocial Contributions

Operational Flow Chart

Product purchase completed using a MRO Stocker vending machines are
specialized smartphone app
equipped with features for high security

Our Direct Delivery Service solves various issues

Human Resources

Possible to also check inventory and purchase status

Digital Service

Delivery times
Amount of packaging materials used
Shipping costs Environmental burden Labor

Standard products arealways in stock

Product orders

End-Users
Production Factories
Constructions Sites
General Consumers

Sales

Management cost

Customers
Online Shops
Home Centers
Tool and Hardware Stores* TRUSCO does not sell any products directly to users.
* Our shipping charges for Direct Delivery Service are subject to certain conditions and not allorders from customers qualify for Direct Delivery Service.

Needed products areheld on consignment

Inventory management
and stocktaking of
regular stock

Environmental Protection
through Direct Delivery

Distribution

With our Direct Delivery Service, products ordered by customers aredelivered to users directly from our distribution centers. Since October
2021, we have been promoting the use of this service by covering
part of the shipping costs for direct shipment to users. By promoting
this service, we do not only shorten delivery lead time but also help
our customers reduce delivery-related work and costs, which is linked
with expanding sales to customers located in remote areas. It also
contributes to environmental conservation by reducing CO2 emissions
associated with packaging materials and transport. We will continue tosolve various issues faced by our customers through our Direct Delivery Service which leverages our immediate delivery system.

Products

MRO Stocker is like “Okigusuri,” a business model that has beenaround for many years in Japan, but for tools. This services allows for
rapid delivery of needed items to manufacturing sites so that they are
instantly available for use. MRO Stocker is stocked with consumables
that users utilize on a daily basis in the manufacturing process, responding to the needs of manufacturing sites that need certain products immediately. Since users are billed only for the products that theyuse, MRO Stocker can be provided without
any inventory risk by simply providing it atcustomer locations.
(Introduced at 329 locations
MRO Stocker Video on How
Websiteto Use MRO(as of December 31, 2021))
Stocker

Value Creation Management
PolicyMRO Stocker

Remotely check of inventory status
Infrequentdeliveries are OK

Suppliers
Logistic Centers
Inventory Locations:

2,966 companies

27

Delivery

Total Inventory Value:$383 million

DesignatedCustomer

Delivery(restocking
of inventory)

Users[User][Manager]Can obtain products A computer is used to checkusing a smartphone
the account statement.

Japan

2,662 companies

Core System

Payment

Payment for
products used

304 companies
Order is automatically placed to replace items taken from inventory. Linked with order information.

Example of MRO Stocker Adoption

Food product manufacturer(October 29, 2020)

Number of Companies Connected to Orange Commerce

Nikkei Sangyo Shimbun(September 17, 2020)

NHK NEWS Ohayo Nippon
BS TV Tokyo
Nihon wa ko naru?!
TBS TV “Gacchiri Monday!!”
Nikkei Business (magazine)
etc.

No. of companies connected

839

860

2016

2017

2,042

2,400

1,367
1,101 1,263

2018

2019

2020

The Eight Services Available Through Naojiro

2021

2022
(planned)

52

Integrated Report 2022

RepairRe-grinding

Calibration

Reuse

Machining

Maintenance

Assembly

Construction
and Installation

Integrated Report 2022

Corporate Data

The system eliminates the need for people
to worry about overstocking or running out
of supplies, reduces overtime hours, andgives users the peace of mind that they will
always have an item ready in stock. MRO
Main inventory items
Consumable supplies (gloves, Stocker is truly a system that enriches peowork shoes, water sampling ple's lives. We hope to add more items tobottles for testing purposes)
inventory in the future as space permits.

Nihon Keizai Shimbun

Started in 1998, Naojiro Repair Workshops provide a unique
TRUSCO service for repairs and maintenance that includes
PRO TOOLs repair and resharpening of cutting tools. Generally, customers often have to request different repair services toperform repairs based on product category. However, this service allows customers to make a single request to TRUSCO toperform various types of repairs, reducing the amount of workrequired to make arrangements for repairs. Our delivery drivers and sales representatives collect repaired items as needed
during deliveries and visits, meaning that there
are basically no packaging or shipping costs forthe customer. In addition, by promoting recycling
and reuse, we support our customers' efforts toaddress environmental issues. (Naojiro Repair Naojiro Repair
Workshops
Workshops results for FY2021: $14 million)
WebsiteThe Nakayama
visually impaired
welfare foundation

Number of items in inventory: 146
Number of shelves:
7 lightweight shelves
Location: Inside equipment
warehouse at plant“Enriching people's lives”
Mr. H, Head Manager of the plant

MRO Stocker receives
attention from several media
organizations and programs

Orange Commerce is a purchasing support system thatlinks with users' purchasing systems to provide web-based
catalogs and product data for transactions among threeparties: users, customers, and TRUSCO. By introducing
this system, we are able to solve the problems stemmingfrom work for large orders and purchasing information not
being visualized all at once, thereby visualizing the procurement process and reducing costs. We support users in optimizing their professional tool procurement by enhancing
reciprocal digital and analog functions and combining thestrengths of systems, logistics, and products.

Relationships with
Stakeholders

TOPICSA service that combines the reuse of PRO
TOOLs and efficiency for our clients

Corporate
GovernanceOverseas

A purchasing support system for users thatstreamlines the procurement process

Environmental
Efforts[Manufacturers]

53

Value Creation Management
PolicyOverseas Business

Our Overseas Sales Section delivers PRO TOOLs
around the world leveraging the strength of ourimmediate delivery system

Responding to MRO demand in countries around the world

UK

Denmark
USA

Overseas Subsidiary

FranceGermany
Switzerland Israel

Immediate Delivery System Usage Example

Japan

Overseas Sales Dept.

China

South Korea
Hong
Kong Taiwan
MyanmarThailand
Vietnam

Overseas

Malaysia

Japan

Products

In order to contribute to manufacturing around the world, we are accelerating our exports to various countries as well as business with local subsidiaries. In terms of domestic exports, we are currently doing business with 99 companies in 20 countries around the world (two of which are TRUSCO
local subsidiaries), and we are developing unique businesses that can be realized by combining our management resources. Our local subsidiaries
are located in Thailand and Indonesia, where we are contributing to local manufacturing by utilizing our strengths, such as providing local catalogs,
our abundant inventory, and immediate delivery system. We will continue to expand our trading area and aim to become a company that can meetthe demand for MRO from all over the world.

MexicoPhilippines

Singapore

Unique business created by combining management resources

Order is received andpackageis sent onflight on the same day

In overseas sales, we are mainly exporting our Private Brand (PB) products to countries around the world. In general, importing and exporting takes time andeffort, but thanks to our inventory strategy and strong logistics capabilities, we have been able to build an immediate delivery system for exports, enabling
us to meet the demands of each country.

Destinations: 20 countries (99 companies, two of which are TRUSCO local subsidiaries)
Note: Time difference not accounted for.
Business which focuses on shipping PB products in batches (by container).

Next-day Arrival

Distribution

Indonesia
New ZealandOverseas Subsidiary

TRUSCO NAKAYAMA CORPORATION (THAILAND) LIMITED

PT. TRUSCO NAKAYAMA INDONESIA

This subsidiary has continued to expand its sales to Japanese dealers
and to major local dealers. By holding inventory and strengthening our immediate delivery system, we are contributing to the efficiency of the PRO
TOOLs supply chain in Thailand by collaborating with local customers. In
recent years, we have also been promoting our own initiatives, such as
direct trade with Japanese manufacturers, to reduce purchasing costs andincrease our share of local sales.

There were many factors that hindered PRO TOOLs distribution in Indonesia, such as heavy traffic congestion and strict import regulations. For thisreason, we have set up a distribution center in an area where many factories belonging to Japanese companies are concentrated. With the largest
inventory in the region, we are taking on the challenge of optimizing PRO
TOOLs distribution. Against the backdrop of domestic demand in a company with a population of 270 million people, we will continue to contributeto Indonesia's advancing manufacturing industry.

TRUSCO NAKAYAMA INDONESIA staff

Company Overview As of December 31, 2021

Changes in sales and number of different products ininventory at PT. TRUSCO NAKAYAMA INDONESIA

SalesOverseas Subsidiary

As of December 31, 2021

2010. 954

Integrated Report 2022

96

74

0.9

($18)

($2,747)($3,531)2012

84 28,489

134($4,171)

16,17737($909)

2011($3,747)($2,558)($2,144)

3,195 3,472 4,736 4,968
2010

106

2013

9,768
2014

2015

2016

2017

2018

2019

2020

2021

2022 (year)(1st Term) (2nd Term) (3rd Term) (4th Term) (5th Term) (6th Term) (7th Term) (8Th Term) (9th Term) (10th Term) (11th Term) (12th Term) (13th Term)(planned)
2-month
9-monthfinancial results
financial results
Soekarno–Hatta

International Airport
Note: Sales in USD for each term are calculatedusing the exchange rate at the
Jakartaend of the period.
Delta Silicon 6
industrial zone

Strengthening Efforts to Expand Business
Through Local Home Centers
We have started business with local home centers to increaseawareness of our brand and inventory strategy among local users
in Thailand. We provide TRUSCO
brand and NB products to many
professional users. At the same time,
we are also using SNS to spread
information on a daily basis so thatas many people as possible can beA product display at a homecome aware of our company.
center in Thailand

Bangkok
Suvarnabhumi
International Airport

Amata Nakorn
Industrial Estate

Jl. Kenari Raya No. 36 Delta Silicon VI,
Jayamukti, Cikarang Pusat, Kab. Bekasi 17815.

Delta Silicon 6
industrial zone

History
2014. 122016. 12017. 22018. 112019. 3

Established under name PT. TRUSCO NAKAYAMA INDONESIA
Capital: About 54.2 billion rupiah
Start of sales
Capital increase of 261.3 billion rupiah, raising capital to315.6 billion rupiah
Capital increase of 63.1 billion rupiah, raising capital to378.8 billion rupiah
Relocation of office building (company-owned building)

33,199 32,808 65,910 65,624 66,000($2,270)($2,333)

26,470($1,972)

20,476($1,603)

Number of items
in inventory
19,11555,41859,653 28,255($1,855)

49,52028,240

2,365
0
2014

(1st Term)($180)

2015(2nd Term)2016(3rd Term)2017(4th Term)2018(5th Term)2019(6th Term)

2020(7th Term)

2021(8Th Term)

2022(9th Term)(year)(planned)

Note: Sales in USD for each term are calculated using the exchange rate at theend of the period.

Increasing the number ofmanufacturers that wetrade directly withWe are doing more business directly with manufacturers without
going through a parent company. We are now able to carryproducts designed for the local
voltage and models exclusively
for the overseas market, further
improving our product lineup.

AQUASYSTEM Co., Ltd. OLFA CORPORATIONSHIZUOKA SEIKI Co., Ltd

KYOTO TOOL Co., Ltd.

SUIDEN Co., Ltd

Corporate Data

2015. 42015. 62015. 122016. 967,004
Number of items in inventory
166
60,785($5,162)
128 51,523

Net sales (million rupiah, thousand USD)The Nakayama
visually impaired
welfare foundation

2011. 2
2011. 122014. 11

Established under name PRO TOOL NAKAYAMA CORPORATION(THAILAND) LIMITED
Capital: 50 million baht
Start of sales
Capital increase of 30 million baht, raising capital to 80 million baht
Change of name to TRUSCO NAKAYAMA CORPORATION (THAILAND) LIMITED
Capital increase of 30 million baht, Capital increase to 110 million baht
Capital increase of 180 million baht, Capital increase to 290 million baht
Relocation of office building (company-owned building)
Capital increase of 100 million baht, raising capital to 390 million baht

212 71,000
69,297($6,558)

Net sales (million baht, thousand USD)($2,981)

NITTO KOHKI Co., Ltd. YOKOHAMA OIL&FATS
INDUSTRY Co., Ltd.
The number of manufacturers that wetrade directly with is increasing annually

Integrated Report 2022

Relationships with
Stakeholders

History

70,60240,893

Corporate
GovernanceAmata Nakorn
Industrial Estate207
194 ($6,774)($5,972)

Trade name: PT. TRUSCO NAKAYAMA INDONESIA
President: Yohei Takuno
Auditor: Naotsugu Kamijyo
Officer in charge at TRUSCO NAKAYAMA Corporation: Kazuo Nakai
Business areas: Wholesale of PRO TOOLs (secondary materials used in factories)
Capital: About 378.8 billion rupiah (about $28.8 million)
Employees: 20 (3 employees on loan and 17 local staff)
Established: December 2014
Equity: 99.9%
Area of grounds: approx. 16,178 ㎡
Floor area: approx. 10,429 ㎡
Number of different products in inventory: 65,000
Inventory value: $4.4 million
Total number of items in inventory: 307,000
Value of investment: Land,$10.1 million; Buildings, $5.7 million
Address: Lippo Cikarang District,
Soekarno–Hatta
International Airport
Bekasi, Jawa Barat (about 40 km east
Jakartaof the capital city, Jakarta)($3,603)

Environmental
Efforts

TIP7 789/8 Moo9, Bangpla Bangplee
Samutprakarn 10540 THAILAND($8,270)

51,300

Corporate
Governance andSocial Contributions

Trade name: TRUSCO NAKAYAMACORPORATION (THAILAND) LIMITED
President: Kazuaki Harada
Director: Naotsugu Kamijyo
Officer in charge at TRUSCO NAKAYAMA Corporation: Kazuo Nakai
Business areas: Wholesale of PRO TOOLs (secondary materials used in factories)
Capital: 390 million baht (about $11.7 million)
Employees: 24 (3 employees on loan and 21 local staff)
Established: September 2010
Equity: 99.9%
Area of grounds: approx. 10,942 ㎡
Floor area: approx. 4,730 ㎡
Number of different products in inventory: 70,000
Inventory value: $5.4 million
Total number of items in inventory: 498,000
Value of investment: Land, $2.2 million; Buildings, $1.8 million
Address: Bangplee, Samutprakarn
Bangkok(13 km south of Suvarnabhumi InternaSuvarnabhumi
International Airport
tional Airport)

Changes in sales and number of different products in inventory at
TRUSCO NAKAYAMA CORPORATION (THAILAND) LIMITED 270

Office and warehouse of PT.
TRUSCO NAKAYAMA INDONESIA

Human Resources

TRUSCO Thailand staff

Digital Service

Company Overview

Office and warehouse of TRUSCO
NAKAYAMA CORPORATION(THAILAND) LIMITED55

Digital Service Strategy

Atsushi Kazumi

Data

Inventory
・A large inventory where
products are always in stock・Delivery of products by
anticipating customer needs
・Appropriate inventory locations

Products
・Product development
・Optimal product lineup
・Optimal prices

Weather
Seasonal data

Cinnamon AI

GROUND

Nagoya University

Searches
Estimates
Orders
Deliverybased onpredicted
demand2021 to 2026

Supplier Portal“Polario”(see p.61)

MRO
StockerStrengthening our
Direct Delivery Service

AI-based
Immediate AutomatedEstimate System

Communication Tool
T-RateR(see p.60)

MRO Stocker is like “Okigusuri,” - abusiness model that has been aroundfor many years in Japan, but for tools(see p.52)

56

Integrated Report 2022

Discontinued

Changes in Staff Mindset
Creation of a System
That Urges Growth

Shared Industry
Database

One-stop MRODistribution

Easy to Connect
to and Maximize
Use of

Proposals andDeliveries by
Anticipating
Customer Needs

Collection and
Refinement of Product,
Shipping, and Other
Basic Data

Cloud Migration andEnhanced Security of
System Platform

Ability to SelectProducts to be Stocked
Enhanced Distribution
and Delivery Capabilities

Integrated Report 2022

Corporate Data

Users

Achieving the industry's “fastest,” “shortest,” and “best” deliveries,
aiming to make the catchphrase “The best is already there” a reality.

Future work process using digital technology

2019 to 2020

The Nakayama
visually impaired
welfare foundation

Delivery

Deliverybased onpredicted
demandDX2.0(see p.60)

Users

Inventorydatalinkage

DX1.0

Relationships with
Stakeholders

Searches
Estimates
OrdersCustomers

Machine operating status,
production status, etc.

Automation of all workthat can be automated(see p.59).

Corporate
GovernanceImproving business services based on various types of data

DX2.0

Environmental
Efforts

・Sales results
・Receiving/Shipping
・Product information
・Weather, etc.

Customers

As a wholesaler, we are committed to improving convenience for ourcustomers and providing a valuable customer experience for our users.
MRO Stocker is an innovative service that combines a traditional “Okigusuri” business approach with digital technology to realize zero delivery time.
In addition, our Direct Delivery Service is made possible by combining ourinventory, distribution equipment, and digital technology capabilities. We
hope the service will help shorten delivery times for users and improve theefficiency of our customers' operations.
In 2021, we launched the “TRUSCO HACOBUne” project, our platform
concept. By utilizing the latest digital technologies such as AI, IoT, androbotics, we aim to provide a unique customer experience making thecatchphrase “The best thing is already there” a reality.

・More appropriate
management decisions
・Faster decision-making

TRUSCO

Creating new customer experiences

・Shortening of delivery times
・Optimal routes
・Driver safety$46 million

Achieving the industry's “fastest,”“shortest,” and “best” deliveries,
aiming to make the catchphrase“The best is already there” a reality(see p.58).

TRUSCO Platform“TRUSCO HACOBUne”

DX for unparalleled speed and convenience

Management●

Zerodelivery timeDistribution+1.4 pt

We will continue our digital transformation for every business scene where we have contact with customers to improve the convenienceof the entire supply chain, from the construction of a shared industry database to the delivery of products to users ahead of time.

Data Created at Manufacturing Sites(machine operating status/production status)
Data Lake Structure

Can be used
Quotation
Allows customers
anywhere since it
provided into easily talk withis Internet based around 5 seconds us from anywhereAI-based Immediate
Automated Estimate
SystemDelivery timeof one day toseveral days%

Providing Unparalleled Convenience in PRO TOOLs Procurement●

Use

Communicatingby telephone and
FAX istroublesome+6.0 pt

DX1.0

Medium-term Digital Transformation Strategy

Suppliers

DX1.0

Quotation
response time
takes from a few
hours to one day%

Corporate
Governance andSocial Contributions

IssuesCommunications are
conducted primarily
by FAX, which isinconvenient

5,527 companies

Suppliers

Previous

Users
Unlimited ∞+10.1pt

Human Resources

2,966 companies

Customers

Digital Expenditures (most recent three periods)%

Digital Service

Suppliers

We are evolving our AI-based quotation system which utilizes AI to instantly
respond to customer requests for estimates. The response, which previously
took several hours, can now be provided in approximately 5 seconds. This
has led to improved efficiency of operations and an increase in thequotation-based order rate. In addition, we have established and are
implementing a business process for more accurate product assortment
and inventory control by analyzing sales performance data for each item tooptimize inventory to ensure that we have a wide selection of products andthat the products customers want are provided by us any time. We arebuilding a company that can respond flexibly to change by instantly
analyzing data more appropriately and making timely and accurate businessand management decisions in anticipation of future business growth.

18.2
Ratio of Web-based estimate requests 42.7
System order intake ratio
85.3
Automated estimate ratio

Sales

Digital capabilities are indispensable to becoming the company that wewant to be, so we regard continuous enhancement of our digital capabilities
as essential. The digitalization of society as a whole is very important for the
supply chain that supports Japanese manufacturing as well as for improving the productivity, quality, and sustainability of society. We believe that byutilizing our digital infrastructure throughout the supply chain we will beable to meet the constant demands of our customers, such as having
everything they need, prompt and reliable delivery, reasonable prices, highlevel of convenience, and kindness, politeness, and security.

Enhanced data-driven, accurate, and flexible
decision-making(Started in January 2020)

Digital transformation is a step of a process, not an end
goal. In order to put our policy “Business must serve
people and society” and slogan “GAMBARE!! JAPANESE MONODZUKURI” into practice in order to make adifference, it is essential for us to utilize digital technology.
On June 15th, 2021, during our press conference where
we announced our industry-academia collaboration with
Nagoya University and capital and business allianceswith GROUND Inc. and Cinnamon Inc., we presented ourconcept of a new distribution platform (TRUSCO HACOBUne). We plan to further accelerate digital transformation(TRUSCO DX2.0), including the use of AI and robots, toprovide an unparalleled level of convenience that no othercompany can match.

Distribution

Working to improve supply chain productivity

Digital Service Strategy Key Indicators

Products

Director
General Manager of the Business Management Department
and Digital Service Strategy Department

Becoming the Company We Want to Be by
Utilizing Digital Technology

Value Creation Management
Policy

TRUSCO's Digital Transformation

To respond to the unchanging customer
demand through our digital capabilities.

57

1

2

Easy Connect
Platform
Integrated Sales
We will strengthen relationships withour customers by providing them withcustomized responses and proposals
based on accumulated customer andpurchasing information.

Product Data
Platform

Use of Industrystandard Data

UX
Platform

Proposals and Deliveries
by Anticipating
Customer Needs(2023)AI Interface
We will build a speedy analysis andbusiness processing model utilizing
AI to enhance customer convenience.

(2026)Create new value through centralized
control and usage of data

(shared database for platform data)

TRUSCO DX Measures

Suppliers

Customers
Communication Tool

Representative
Product Div. Logistic Centers

2 Product Data Platform

We always have what customers need and deliverproducts quickly

Availability of all types of necessary product data
We will expand our product data to cover more than ten million items by building a system to implement automatic analysis and collection functions of product data using Cinnamon
AI. We aim to achieve dramatic efficiency in product selection
and industry standardization of product data.

186

123.456/day↗

227

P.61

P.60

Product Database

Inventory Management System

Sales Support System

P.61

P.61

P.61

AI-based Search Tool

P.43
AI-based Immediate
Automated Estimate System
P.60

Data

Product Searches,
Estimates, Ordering, etc.
Search and information website for PRO TOOLs.

P.43

Website for Business Coordination
P.61

CinnamonAI

98%↗

Voice call app

233

Products
PricesInventory
Delivery Dateetc.

Corporate
Governance andSocial Contributions

AI

Dashboard

Distribution System

Human Resources

Acceleration of the expansionof product data for productsthat we carry by removing
PRO TOOLs restrictions andCinnamon AI automatic analysis
and collection functions

Representative

P.60

Branch1,000

Anticipate Product Data Expansion(Unit: 10,000 items)

Representative

Digital Service

In addition to demand forecast AI, Planet Aichi, a next-generation distribution center which will hold one million items in inventory, is scheduled to
begin operations with the implementation of a distribution facility integrated management system (WES) designed to automate even inventory andpersonnel allocation decisions.

Users

Sales

1 Distribution Platform

Stock Hit Rate ...%Starting with the launch of our core system “Paradise 3” in January 2020, we have released various systems to improve
convenience with the aim of automating all tasks that can be automated in the supply chain. In addition to internal businessreforms, including our AI-based quotation system (see p.60), which realizes dynamic pricing using AI, and ZAICON 3 (see p.61),
our inventory management system that forecasts demand for each individual product to drastically cut down time used forinventory management, our company, which is in the middle of the distribution chain as a wholesaler, is promoting the reformof business practices throughout the supply chain by utilizing digital technology aiming at digital transformation.

Distribution

Data Lake

Automation of all work that can be automated

P.52

Electronic Purchasing System

Environmental
Efforts

P.53

Electronic Purchasing
System of User

30.0/person↗
2018

2019

2020

2025 (year)

Core System(conceptualized image)

AI Dashboard allows data to be visualized, analyzed, and used in proposals

4 Easy Connect Platform

Allows users to easily select and purchase the best products

Toward stress-free business operations byconnecting with TRUSCO

Strategic partners that support our digital transformation (in alphabetical order, honorifics omitted)

MRO Stocker

TRUSCO

Delivery
Deliverybased onbased onpredicted Customers predicted
demanddemandDATA

58

Integrated Report 2022

IBM Women Leaders in AI 2021 is a global award that recognizes
women leaders, regardless of industry or country, who have used
IBM Watson to drive change, growth, and innovation. In 2021, 40
women leaders from 18 different countries were selected with two
female employees from TRUSCO receiving the award.

(conceptualized image)

AI-OCR digitizes FAX content and places the data in an automated system

Section Manager Mio Sugihara,
System Management Section

Corporate Data

Delivering products in advance is made possible by MRO Stocker

IBM Women Leaders in AI

OCR

Users

Delivery time 0 min.

AI

(Artificial Intelligence)

TOPICS

The Nakayama
visually impaired
welfare foundation

Various types of
FAX documentsfrom customers

Frameworx, Inc., IBM Japan Co., Ltd., Nomura Research Institute, Ltd., SAP Japan Co., Ltd., SCSK Corporation

Relationships with
Stakeholders

We will build a system that improves business efficiency andconvenience despite customer and supplier business operations remaining the same.

Digitization

Data
Products/Prices/
Inventory/Delivery Date

Corporate
Governance

We will further advance user experience (UX) by implementing a searchfunction for equivalent products and a linkage function with manufacturer
inventory information for a vast array of products. MRO Stocker aims torealize the delivery of products that users will need in the future by using
data and AI to make proposals ahead of time.

Real Time Information Platform

Rapid expansion of product data using Cinnamon AI

3 UX Platform

Products

3

4(2026)

Suppliers

TRUSCO HACOBUne was created
to serve as a platform that integrates
distribution, product data, and UX (userexperience) to achieve the “fastest,”“shortest,” and “best” delivery in theindustry, aiming to make the catchphrase “The best is already there” areality. By streamlining the entire supply chain, we will create a foundation
for providing the highest level of convenience to our customers.

Distribution
Platform

TRUSCO DX1.0
Customers

Toward becoming a “platform holder” that supports
manufacturing sites

One-stop MRODistribution

Value Creation Management
Policy

TRUSCO DX2.0

Manami Endo, IT Planning
SectionIntegrated Report 2022

59

Sales Support System“Self.I 2”

System Order Intake Ratio (85.3%)
Improvement of work efficiency through improvement of system order receipt rate

Changes in system order receipt rate and number of different products ininventory

AI-based comment analysis
Results data analysis

Estimate request from customer

Estimate provided
to customer

9-monthfinancial results

Consolidated
Accounting Started

Estimate is provided tothe customer in seconds(planned)

Customer sales performance screen

Automatic Product
Stocking System

Product sales performance screen shown on TRUSCO Orange Book.Com

Inventory Management System“ZAICON 3”

Automatic stocking of popular
products

Drastically decreasing timespent on inventory management

Products to be stocked based on sales results
are automatically ordered to suppliers andstocked. By automatically stocking products,
we improve the efficiency of our operations inaddition to improving the level of service forour customers.
(Number of products that are stocked automatically: 7,494 (as of December 31, 2021))“ZAICON 3” is an inventory management system that provides forecast calculations of required stock quantities based on sales performance records. The system reduces the timeand effort required for registering products byautomatically calculating the optimal and maximum ordering points for products, leading toincreased efficiency.

Distribution System“TRULOGIS 3”

Improving the efficiency of all
warehouse operations
This distribution system manages the inventory
work performed at distribution centers and at
branches with inventory. It is responsible for
improving the overall efficiency of warehouse
operations, including automation of warehouse
operations with labor saving equipment andfree-location inventory systems.

Corporate
Governance andSocial Contributions

Communication Tool
“T-Rate”

Main screen showing Self.I 2 functions

Human Resources

2013 2014/3 2014/12 2015 2016 2017 2018 2019 2020 2021 2022 (year)

Product that has seen strong sales at TRUSCO in the past month.

Digital Service

Data analysis

We have built a system that allows us to utilize the sales results of eachproduct in real time. Using this system, for example, the sales results aredisclosed on TRUSCO Orange Book.Com, and the products whose sales
results have increased in the last month compared to the past are marked.

Sales

87.0
83.1 83.9 85.3
82.0
82.0
81.7
49.9 55.0
77.9 79.9
44.2
71.9 72.7
39.2
System order intake ratio (%)
37.4
Number of items in inventory
33.7(10,000 items)
29.9
26.5
23.1
21.3
19.2

One of the challenges we face is how to respond quickly to an averageof 30,000 estimate requests received from our customers each day. To
address this issue, we have introduced the AI-based Immediate AutomatedEstimate System, “Sokutou Meijin,” and have been promoting the automation of estimates through special price optimization where appropriate
prices are automatically calculated for products on a regular basis basedon actual orders and estimates. This has led to an improvement in the time
it takes to reply to customers (minimum reply time: 5 seconds).
(18.2% of estimates are provided automatically (information current as ofDecember 31, 2021))“Self.I 2” is a tool for visualizing sales data, such as customer estimate
history, sales history, etc. This tool helps us to identify latent demand andmake appropriate proposals, thereby contributing to the improvement ofcustomers' sales.

Utilizing big data to display product information so thatit has a fresh appearance and is easy to understandDistribution

Use of digital tools and expansion of inventory contributes
to a higher system order intake ratio

Automated estimates provided to customers using Artificial Intelligence (AI)Visualization of sales data to support accurate
proposals

Products

We have been developing highly convenient digital tools and expanding
our inventory. As a result, our system order receipt rate (percentage oforder receipts processed through our digital system among total order
receipts) has improved. This has improved our work efficiency, allowing us
to achieve greater sales per person without increasing overtime work.

AI-based Immediate AutomatedEstimate System “Sokutou Meijin”

Analysis by Individual ProductVideotelephone app“Face Phone”

Face-to-face communications anytime

R

Face Phone“T-Rate” is a new tool for communicating with customers. This tool provides real-time communications through the following functions:Chatfunction which allows the customer to chat with a TRUSCO representative,
A delivery status confirmation function that shows the scheduled arrival
time of the delivery service, products being delivered, etc., and A timeline function that delivers messages about our activities and PR products.

Allowing for communication with TRUSCO at any time, Face Phone is an
online-based video telephone app using in conjunction with T-Rate usinga PC or smartphone which allows face-to-face communications between
customers and TRUSCO representatives, as if they were meeting in person. Most of the time used during sales activities is spent traveling to customer locations. However, we are now promoting a new sales style which
utilizes that time to solve problems for our clients instead.

Website for Business Coordination

Product Database“Polario”“Sterra”

Polario centralizes business coordination with
suppliers
Polario centralizes data such as existing supplier estimate correspondencedata, order processing data, and Available-To-Promise (ATP) data. In addition to improving the chances of receiving orders, the amount of supplier-directed inquiries are reduced, lessening the burden on them.

Face Phone
IntroductoryVideo

New product database “Sterra” is a product information management system that serves as the “base” for product data. The introduction of this system has facilitated the input of information that was previously restricted invarious ways and allows suppliers to easily register and edit product data.

FAX, Telephone, etc.

Customer Website

Search and information website for PRO TOOLs.

Relationships with
Stakeholders

Traditional
SystemProduct data linkage in real time

Product Image

Suppliers

Customers
Product Specifications

Driving to meet withcustomers takes time60

❷ Delivery status confirmation function

Integrated Report 2022

❸ Timeline function

Suppliers
Allowing for communications between
customers and TRUSCO representatives at any time, anywhere.
(Miho Matai, Osaka NB Product Section)

Uniform Management

Customers

Using Sterra, suppliers register/
update product information.

Accurate and new information canbe delivered to customers and users
in the shortest possible time.

Corporate Data

❶ Chat function

Schematics and other detailed information

Information changes are
immediately reflected

Website for
Business Coordination

By Using Face Phone...

The Nakayama
visually impaired
welfare foundation

Fastest Coordination(next day)Current
Paperless
System Communication

Rapid Coordination

Integrated Report 2022

Corporate
Governance

Promoting a new sales style

Environmental
Efforts

Realizing real-time communication with customers

Value Creation Management
Policy

TRUSCO's Digital Services

61

Human Resources Strategy

Atsushi Kazumi

Number offull-time staff
Ratio

571
35.0 %

Note: Personnel with supervisory qualifications or higher

Average Age

39.6

Male
Female43.2
32.8

Average overtime hours
per month per employee

14.4 hrs. -0.5

Personnel Transfers

Job Rotation System and Job
Challenge Program

P.63

Career Development

Diverse Career Options andSupport Systems

P.64

Evaluation System

Open Judging System(OJS, 360 degree evaluation system)

P.64

Human Resource Development

Job Training Programs that Create
Personal Growth

P.65

Human Resource Recruitment

Acquiring human resources thatpossess creative ideas

P.66

hrs.

Overview of Our Human Resources Strategy

Corporate
MissionBecoming the Company We Want to Be

Human
Resources Strategy

Individual Growth and Company Growth are Linked Together

Various individuals
Supporting various values and work styles
Flexible Work Environment

Benefits and Welfare

Human Resources

Health Management

Corporate
Governance andSocial Contributions

We believe that “originality” is fostered by individual ability and aptitude
as well as the working environment. The newly established Personnel
Division will introduce a system (talent management system) andprograms (expanded course areas and the Job Challenge Program) to
maximize employee abilities, thereby enhancing employee engagement
and the company's overall human resources capabilities. In addition, inorder to provide a workplace environment where everyone can work withpeace of mind, we will further enhance our welfare programs, such as our“Vacation Bank Program (see p.67)” and “Fertility Treatment Support
Program (see p.67).”

Femalestaff ratio

Digital Service

We believe that the source of competitiveness of TRUSCO is its originality. In
order to Achieve “Our Ambitions” (Value Creation), which means that we area business that must serve people and society, we will once again takemeasures to enhance our people (originality), which is the starting point ofour business in the 60th term. As a starting year, we will launch a new
Personnel Division and transform our personnel system to change theawareness and behavior of our employees, thereby fostering humanresources capable of creative thinking and enhancing the competitive
advantage of our Company. With this originality as a starting point, we will
accelerate our business transformation project (TRUSCO HACOBUne) toachieve the industry's “fastest,” “shortest,” and “best” deliveries, aiming to
make the catchphrase “The best is already there” a reality through digitaltechnology that provides an unparalleled level of convenience that cannot bematched by other companies. TRUSCO aims to be a company that continues
to be of service to our customers by combining people (creativity) and digitaltechnology to further enhance customer convenience at all times.

2,906

Sales

Reform of the personnel system to create creative
human resources capable of thinking on their own

Employees

10
1,632
1,264
Number of officers* 152
Number of supervisors
9
Officers
Full-time staff
Part-time Staff

Distribution

Realizing “Our Ambitions” through our people
and digital capabilities

Changes in the external environment and evolving management strategies are changing the way employees work. TRUSCO will create alearning environment in which each employee can acquire the skills tocope with such changes. We will also enhance our personnel system
to accommodate diverse work styles and create an environment where
employees can continue to work with security and stability over thelong term. Individual growth is essential for the growth of the Company. We will accelerate our human resource strategy to ensure thegrowth of our individual employees.

Human Resources Strategy Key Indicators

Products

Director
General Manager of the Business Management Department
and Digital Service Strategy Department

Individual Growth and Company Growth are
Linked Together

Value Creation Management
PolicyHuman Resources Strategy

To become a company that continues toprovide support regardless of the times with
our people (originality) as a starting point

Decreasing birthrate and aging population / Diversity of work styles / Shift to digital technologies / Globalization

Our Policy

Personnel Transfers Job Rotation System and Job Challenge Program
Reform of the personnel system will introduce a system designed tomaximize employee abilities

Strengthening sustainability promotion
Value(Economic value/social value)(TRUSCO HACOBUne)
Value

Digital Service(unparalleled level ofconvenience)

Digital Service

Product Div.

Digital Promotion Div.

Product DB Platform Development Office andOsaka NB Products Section

Digital Promotion Division

PeopleCarbon Neutrality Research Team

Strengthening the development of our human resources (originality) to realize “Our Ambitions”

62

Integrated Report 2022

Corporate Planning Div.
Management Planning Section andSustainability Promotion Section

Sales Planning
Division

Distribution Reorganization
Department

Sales Planning Dept.

Logistics Planning Section.

Cross-departmental teams established to strengthen sustainability

Employees are transferred across departments
to hone work and human skills

choice, serving as a system for fostering employees who have clear motivation

Business Management Dept.

becoming a candidate for a position or nomination in order to become an
officer with the most authority in a given area. Participants are actually assigned as assistants to managers in charge and learn management skills
as they work toward becoming bosses.

Job Challenge ProgramThis is a program that allows employees to transfer to any department of theirand can grow TRUSCO NAKAYAMA further through their own contributions.

Open Position Challenge ProgramThis is a program that allows an employees to apply for a position of his orDigital Service
Strategy Dept.

Distribution
Dept.

her choice when there is a request for an increase in personnel, etc., aslong as it is a position of his or her choice.

Dual Position Job Challenge ProgramThis is a program that allows 20% of an employees’ workload to be per-Sales Dept.

Product Dept.

formed in the desired position while maintaining their current position.

Integrated Report 2022

63

Corporate Data

People(originality)

This is a program that allows employees to pursue their career goals by

The Nakayama
visually impaired
welfare foundation

Business*The abbreviation TSV (TRUSCO Shared Value) was formed by combining TRUSCO and CSV(Creating Shared Value).

Around five years after joining the company, employees are transferred
across departments, such as sales, distribution, Head Office, etc., andjob rotations are conducted within departments. This is a measure to
avoid personalization of work and to improve work and human skills by
experiencing a variety of jobs, as well as to raise awareness of work
reform through organizational “restructuring,” thereby raising the levelof corporate growth.

Relationships with
Stakeholders

Business

Boss Challenge Program

Corporate
Governance

While countries and companies are increasingly looked on critically due totheir impact on the global environment, we believe it is necessary torecognize that each of us is partly responsible for the burden we place on
the environment. With this in mind, we have formulated our basic policy onsustainability (TSV*) and established a Sustainability Committee andSustainability Promotion Section to promote our initiatives for corporate
growth and environmental impact both internally and externally. (see p.20)

Personnel transfers help hone work and human skills

Environmental
Efforts

Business must serve
people and society

Human Resource Development Job Training Programs that Create Personal GrowthDiverse Career Options and Support Systems

Aiming to become a company where each and every employee can play an active role

Although the training implemented by TRUSCO isbased on on-the-job training, we aim to create anenvironment in which trainees can receive knowledge
that they cannot learn through on-the-job training togain awareness. We provide the experience gained
from being at TRUSCO NAKAYAMA and a variety oflearning environments, including training, e-learning,and distance learning.

New employee training session●=Newly established course

Course Name

Course Details

Local Career
Course ●For employees who are self-aware and are allowed to hone their abilities for growth, aiming to become managers or supervisors capable of working
in a variety of positions in limited areas without a change of residence, and fulfill ability and evaluation criteria.

Specialist Course

For employees who acquire a high level of job performance through self-development and, if necessary, transfer with a change of residence and use
their high level of expertise to serve up to the position of business manager in a specific department.

Expert Course ●For employees who are expected to play a role in accordance with their level and contribute to business performance by honing their skills in a specific field and specializing in that field only in their local area.

Area Course

For employees who acquire sufficient working knowledge of the overall business that the employee is involved with and take on the role of business
manager only in their local area.

Local Area Distribution Course ●For employees who will be engaged in distribution operations such as delivery and product management only in their local area, responsible forserving in an advisory role for the total optimization of their distribution center and may take on the role of Distribution Center Manager.

Distribution Course

For employees who will be engaged in distribution operations such as delivery and product management only in their local area, and are expected tohave the working abilities and skills to perform their various professional duties.

Open Judging System (OJS, 360 degree evaluation system)

Started in 2001

2015

Part-time
Staff

Promotion OJS

2001

2014

Candidates who have an 80% or higher
Candidates This program enables more multifaceted evaluations
Determine if the candidate should/
approval rating and satisfy the minimum
for supervisor of candidates for a promotion of supervisor or higher
should not be promoted.
number of votes are promoted.
or higher
by reflecting assessments from other employees.
Evaluators who are the bosses(*1) or higher
in charge of the company, evaluate the executive’s performance at daily work and what
they say at management meetings.

President

An OJS system implemented directly by shareholders during the General Meeting of Shareholders. We consider this as one of the important evaluation indicators for the President.

The evaluation is conducted once a
year by about 140 people, including
the bosses and members(*2) of theManagement Conference. Each of
6 evaluation items is rated on a
24-point scale.

Management who add/drop below a certain standard of points two years consecutively become a candidate for promotion/
demotion.

Votes are received from shareholdThe results are posted on the Company
ers who have directly heard our
website and resolution notification sent
business reports and Q&A at theafter the General Meeting of Shareholders.
General Meeting of Shareholders.

*1 Bosses: Included branch office managers, section managers, and distribution center managers *2 Members of the Management Conference: Directors, Auditors, Executive Officers, and Division General Managers
64

Integrated Report 2022

Manager Challenge
CourseFuture Leader’s
CourseSkill-up Course for
Fourth Year staff

Second Year of
Employment
Training for
New Staff

Participants study deeply about the skills necessary for bosses.

Participants study about management by acquiring the viewpoint of a boss.

Participants think and act as an ideal leader as the core of his/her own organization.

Participants identify their desired position and become aware of the skills needed for career management.

Follow-up interviews are conducted after one year of an employee’s branch assignment to resolve concerns and issues.

We focus on on-the-job training so that employees understand and can reliably use various TRUSCO systems.

New staff learn about fundamental abilities required for working adults to deepen their understanding of business etiquette and the company.

Other Job Training Programs
In addition to Trusco Stage Trial (our original education curriculum), we conduct a variety of other training courses as well. It is necessary for our employees
to continue to learn in order to perform their work at a higher level. These training courses provide various types of support in accordance with each person's
career and desire, including a level of on the job training (OJT) that goes beyond the boundaries of acquired qualifications and one's immediate organization.
Job Training Program

Staff Level

Overview

Area (Distribution)
Training Course

Area/Logistics
Employees

This training deploys staffs to another business location or distribution center for roughly one week. Establishing opportunities
where the employee can compare job sites helps them grow and enhances our operations.

Overseas Business
CourseCandidates

Participants learn about overseas business while working at one of our overseas subsidiaries (Thailand or Indonesia).

Global Challenge

Participants will learn about exporting while working at the Overseas Sales Section of the Tokyo Head Office.

Orange Doctor Examination

Orange Doctor Examination was established for the purpose of enhancing staff knowledge about our products. This examinationis held twice a year. Staffs who pass the examination receive an allowance of 10,000 yen (USD90) per month for one year.

University Subsidy
System
TRUSCO Distance
Learning Courses

All employees

This system subsidizes 300,000 yen (USD2,700) from the cost of acquiring a degree as educational support for gaining abachelor’s degree from a University. The company also provides a 150,000 yen (USD1,350) subsidy for staffs to acquire abachelor's degree in another field.

Corporate Data

President OJSResult30% of this assessment is reflected inThis program reflects the evaluations between
the personnel records related to achievestaffs who work in the same office in personment allowances, bonuses, financial
nel ratings. Comments are included to provide
Procedure:
Determinetheperforbonds, and promotions/demotions.
feedback to the individual.
mance, approach, and skill of the30%of this assessment is reflected in the
The OJS program also applies to part-time staff in five levels.
personnel ratings related to hourly wage
staff and is highly evaluated for fairness andas well as bonuses and promotions. (alsoobjectivity.
utilized in employee promotion criteria)

Director, Auditor, Executive
Committee,
and Division
GeneralManager

Job Training for Newly
Appointed Bosses

Participants acquire awareness for future manufacturing as
the officer with the most authority in their area.

The Nakayama
visually impaired
welfare foundation

Director, Auditor,
Executive Committee, Division 2012
General Manager
OJS

Boss Management
CourseRelationships with
Stakeholders

Part-time Staff
OJSTop Management“Becoming a human resource who has a track record founded in the skills necessary to grow a company all starts with thewill of the individual.” This is why the company provides 50% assistance for the course fees to staffs who complete a course.

We also offer a variety of other learning environments to enable employees to meet their objectives.
Integrated Report 2022

Corporate
GovernanceAll staffs

We have established our own training system to help our employees become useful to people and society. By knowing exactly the types of human resources
we are looking for at each stage, we give our employees the opportunity to become aware of what we are doing and to grow as individuals. It is an opportunity for employees to understand what they need to do, the skills they need, and the purpose.

Environmental
Efforts

The Open Judging System (OJS, 360 degree evaluation system), an electronic-based voting system, is a personnel evaluation system for all employees where employees are evaluated by each other that was introduced for the purpose of conducting fair and highly objective evaluations. Evaluating one another helps build an environment of fair assessment with good energy in the air. (evaluations are anonymous)

2003

TRUSCO Stage Trial

Third Year of
Employment

Aiming to create a workplace free of ill feelings

Personnel
Evaluation
OJS

PLAN

System-based
Analysis andStudy Planning

Corporate
Governance andSocial Contributions

For employees who are self-aware and are allowed to hone their abilities for growth, aiming to become managers or supervisors to work specificallyin distribution related positions, can be transferred with a change of residence, and fulfill ability and evaluation criteria.

ACTION

Training andOpportunities for
Self-learning

Human Resources

Distribution
Career Course ●Procedure

Output What Was
LearnedDigital Service

For employees who are self-aware and are allowed to hone their abilities for growth, aiming to become managers or supervisors to work specificallyin IT related positions, can be transferred with a change of residence, and fulfill ability and evaluation criteria.

Overview

Work
Experience

Human Resource
Development
SystemSales

Digital Career
Course ●Started in Staff Level

DO&OUTPUT

Distribution

Career Course

OJS Category

ACTION

OFF-JTOJTCHECKFor employees who are self-aware and are allowed to hone their abilities for growth, aiming to become managers or supervisors capable of working
in a variety of positions, can be transferred with a change of residence, and fulfill ability and evaluation criteria.
One of the following classifications shall be made according to the transfer destination of the candidate.
1. Overseas Career Course: When the transfer destination is outside Japan
2. Domestic Career Course: When the transfer destination is within Japan

Evaluation System

System-based
Learning
Management

PLAN

Products

Course List

CHECK

No Education Beats Self Awareness

Aiming to become a company where each and every employee can play an active role, TRUSCO has newly established various career courses. This system allows employees to maketheir own choices according to their diverse life and career plans.
Making their own choices improves their lives and motivates them to work and grow boththemselves as individuals and the company.
In January 2022, we established the HR Support Section to support the independent careerdevelopment of each and every employee.

Value Creation Management
PolicyCareer Development

65

The time when the policies of a company begin is important and the “will” varies according to when a policy is put in place. We have a number of unique human resource programs that were inspired not by thetrends of the world but by our concern for our employees. By respecting the opinions of our employees
and supporting their work styles through various approaches, we improve their motivation to work whichleads to the growth of the company.

Providing Unique Job Experience Events

Personnel Policies (some have been omitted)

ProgramCompany entrance ceremony held in 2021 covering two years(Since the company entrance ceremony was held online in 2020, the 2021 ceremony included
the 2020 online ceremony participants.)

1996

Number of New Graduates Hired
University Graduates
Vocational School Graduates
High School Graduates
Number of Employees Hired
Mid Career

Total
FemaleMale
FemaleMale
FemaleMale
Total
FemaleMale2017 2018 2019 2020 2021
83 118 96
79
43
28
41
38
31
18
23
42
35
25
17
0
0
0
0
0
0
0
1
0
0
18
17
8
6
4
14
18
14
17
4
44
17
5
5
5
14
5
3
4
2
30
12
2
1
3

Half-day full-time
employee system

1996

Happy Sunday Policy

2002

Financial Bond (annual
payment for severance)

2003

Transfer Request Policy

2005

Lovebird Transfer Policy

2005

Maternity Bonus Program

2005

Job Hunting Explanatory Meeting for Parents
We hold these sessions because we believe that byhaving parents of students participating in job hunting activities see our company from the perspectiveof a senior member of society, they will be able tounderstand our company and give appropriate advice to their son or daughter in job hunting activities.
We held online in 2021. (participation is optional)

Child Support Allowance

2007

Vacation Bank Program

1) 20072) 2022

Welcome Back Policy

2014

More and more parents are participating inthese sessions each year

Internship

We invite family members of new employees tothe company entrance ceremony every year sothat they can see the proud moment of their sonsand daughters who are taking a first step as amember of society. (Started in 2005)

People who have received informal job offers participate in company events such as the General Meetingof Shareholders and the Nakayama Wonderful Festa(see p.87), which is co-hosted by the Nakayama visually impaired welfare foundation and our company.
We provide opportunities for them to understand more
about the company and learn about social contribution.

We held a five day program at the Tokyo Head
Office and the Osaka Head Office designed togive participants a chance to see what sales islike. This program is separate from recruitment
activities and is positioned as a social contribution
activity to help people choose a company for the
future. (Held online in 2021)

66

Integrated Report 2022

Prospective TRUSCO employees participatingin the Nakayama Wonderful Festa

An intern experiencing what sales is like

My Home Concierge(housing consultation service)

2016

Work from home system

1) 20172) 2020

Return-to-Work Program for
Staffs on Childcare Leave
In-company Sidework
Program(Hybrid Work Program)

2019
2019

Go Home Early System

2020

Additional Off Time System

2020

Infertility Treatment Leave
Program2021

Right to Remain in Same
Area for Work
Exception for Course Changes

2021This program allows employees to work in a different department on their days off and earn income on the side. Since theprogram focuses on work that any employee can do, it is a great way for them to gain new insights. (Program participants: 127)
This is a system that allows employees to go home early even during scheduled working hours in order to instill in them theawareness and habit of finishing work early. Under the system, employees can leave up to 30 minutes earlier once a week. (Numberof times the program was utilized: 158)
This system allows employees to adjust their start or finish time in exchange for up to one additional hour of rest time (or lessthan one hour) for very important reasons, such as visiting government offices, making hospital visits, etc. (Number of times the
program was utilized: 52)
This program allows employees to take up to a year leave only for specialized infertility treatment (in-vitro fertilization/
microfertilization). Once the first child is born, the days of leave taken are reset, and the employee can use the program again
for all subsequent children when infertility treatment is performed. Within one year from the initial leave start date, the leave canbe taken divided into up to three times, and the Company will pay all social insurance premiums during the leave, including theemployee's portion. (Eligible employees: Employees who have been with the company for at least one year.)
If an employee undergoing infertility treatment requests it, the employee will not be transferred to a different location with a change ofresidence for up to one year (right to remain in same area for work). In addition, if an employee changes to an area course for infertility
treatment, the employee may return to the original course with the evaluation requirement for returning to the original course waived.

Corporate Data

Providing an opportunity to celebrate the beginning of a new life with family members

2016

The Nakayama
visually impaired
welfare foundation

Participation in company events by candidates
who have received informal job offers

TRUSCO new social work
grant system

Relationships with
Stakeholders

Family-Friendly Company
Entrance Ceremonies

2015

Corporate
GovernanceDirect talks held with the President are conducted at
the Tokyo Head Office and Osaka Head Office2015

Environmental
Efforts

Return-to-Work Support
for Staffs on Maternity orChildcare Leave
TRUSCO Part-time System for
Retirement-aged Employees

Corporate
Governance andSocial Contributions

Direct talks with management
In order to give people a better understanding about
our ideas, we provide opportunities for students tohave direct conversations with the President, directors, division general managers, and other membersof the management team. During a Round Table
Discussion with the President, the President answers
each and every question that only he can answer.

This program pays a bonus for special leave for childbirth (14 weeks) during the bonus calculation period.
We provide $90 per month allowance for each child to staff who have children under ten years old. TRUSCO started paymentseven to staffs who are on leave to raise children in 2014.
1. This is a program that allows employees to accumulate paid vacation days in case of illness, to provide nursing care, to study
abroad, or for other reasons that require a long leave of absence.
2. In 2022, the name of the program was changed from “Accumulated Paid Leave System” to “Vacation Bank System.” The
maximum number of days of paid leave that could be accumulated, which had been set at 60 days, has been eliminated.
Unused paid vacation days can be accumulated without limit, and the program has been revised to expand its usage. In
addition, unused accumulated paid leave days will be purchased at time of retirement.
This program is for the re-employment of staff who had to resign to raise a child, take care of a sick family member, undergo
infertility treatments, or to accompany their spouse goes to due to a work appointment within ten years of their resignation. (Program
participants: 28, re-employed: 4)
One tablet terminal is lent to each employee for information sharing, and information can be exchanged on “Tramama Port,” aspace on the company intranet dedicated to employees on maternity or childcare leave. We also provide support to make it easierfor employees to return to work, such as by setting up Office Visit Days every four months.
This system allows employees who have reached the age of 70 to continue employment at the company as part-time workers until
the age of 75 if they wish to do so and meet certain criteria. (Alternate name: Senior System) (Program participants: 15)
This program provides the money necessary for new employees to smoothly start a career as a professional in society. TRUSCO provides thisentrance allowance to new employees about one month before the date of entering the company ($1,801 for persons who live alone and$900 to persons who still live at home after joining the company) (Program participants: 43 *employees who entered the company in 2021)
Two first-class licensed architects, who are employees of the company, have set up a desk where employees can consult about
any problems they may have regarding housing. (Six consultations *held in 2021)
1. Open: Employees can telecommute at any time when it becomes difficult to come to the office due to relocation or integrationof offices, transfer of a spouse, injury, illness, taking care of a family member, etc.
2. Discretionary: With the permission of the head of the office, employees can telecommute up to twice a week.
This program allows employees that finished their childcare leave to choose the number of working days, working hours, office
work, or work from home until the child is three years old so that they can return to work with peace of mind.

Human Resources

Trusco Prospective Candidate Guidance Team

Digital Service

Birthday Off Time System

Sales

1992

Overview
TRUSCO employees can take childcare leave until the end of the month during which the child becomes three years old, if desired(Japanese law allows employees of any company to take childcare leave until the day before the child becomes one year old).
(Program participants: 45)
In order to promote the use of paid vacations, we encourage employees to take annual paid vacations on their birthdays (or one
month before or after) as “birthday off time.” (Program participants: 291)
This system allows staff to reduce their working hours down to as few as three hours per day for reasons of child raising up until their childfinished sixth grade (Legally, employees can reduce their working hours down to as few as two hours per day until a child reaches three years ofage). Employees can also use this system to shorten their working hours when they are pregnant, taking care of a family member, or injured/sick.
(Program participants: 97 for childcare, 0 for taking care of a family member, and 9 due to injury/sickness)
This is a system that allows employees who have been transferred not accompanied by family to delay coming to work on
Mondays so that they can spend time with their families at dinner on Sundays when they return home on weekends (travel
expenses for returning home twice a month and company housing rent are paid separately).
Trusco Nakayama does not pay severance as a lump sum upon retirement, but as an annual payment known as a “financialbond," a performance-based payment to reward annual contributions.
This program allows staffs to request a transfer to a desired place of business due to life events such as marriage or taking careof a sick family member. (Program participants: 68 *previous three years)
This policy allows a staff to continue to work by accompanying a spouse when transferred to the area of that transfer regardless ofwhether their spouse is a company staff or not. (Program participants: 23 *previous three years)

Distribution

Childcare Leave Program(three years)

Changes in Number of New Graduates Hired and Employees Hired Mid Career

In addition to the Recruitment Section, employees from allover the country who work in various departments, divisions,and sections conduct recruitment activities. In addition to explanatory meetings and interviews, we also provide individual
follow-up services to relieve the anxiety of students participating in job hunting activities. We are committed to finding
the people who will create the future of our company.

Explanatory meeting held at a university

Started in

Keisuke Tabuchi, an Akita Branch employee
who utilized the Childcare Leave Program

Products

The source of competitiveness for an organization is its “originality.”
Because we are one of the last wholesalers in the industry, we haveaggressively challenged and achieved things the other companies do
not try and can not do. We will continue to acquire human resourcesthat create new value through original ideas to fuel our corporate
growth.

Based on the belief that “a student's duty is to study,” we set a recruiting period which allows students participating in recruitment activities
to concentrate on studying. We provide a variety of unique job experience
events so that students participating in job hunting activities can selectthe companies that they are truly interested in, which helps them avoid
finding a job that they do not fit. By participating in company events evenafter an informal job offer has been made, prospects are able to further
understand our corporate culture and resolve any concerns they may have
before joining the company.

Main programs for employees to work for many years with peace of mind

Value Creation Management
PolicyHuman Resource Recruitment We acquire human resources that possess creative ideas

Note: In addition to the programs listed above, we offer a staggered workday system, free biz system, and a non-necktie system (a system that allows employees not to wear neckties even outside the cool biz period).
Integrated Report 2022

67

Promoting a unique type of health management

A corporation has a responsibility to provide workplaces where staff
members can work with stability and peace of mind. With this belief
in mind, TRUSCO hires all staff members under full-time employment
with non full-time hiring not being allowed in principle so that employees can continue to work for many years with peace of mind. In
addition to creating a workplace where everyone can play an activerole, we are also taking various initiatives such as hiring full-timechildcare workers and chefs.

Employee health management is essential for the continuous growthof a company. TRUSCO promotes its own Health Management by
having established health care sections in Tokyo and Osaka and an
independent health insurance association. The Company has also established a unique system that provides regular health check ups for
employees as well as subsidies for their dependent spouses. We willcontinue to promote the health of ouremployees and link their health withour corporate growth.

Comfortable Workplace Environment Indicators
As of December 31, 2021

Percentage of female employees

35.0% (employees)
73.5% (part-time employees)

Percentage of female senior supervisors

18.5% (62 persons)）

Health Management
initiative pageAn environment where employees can easily
take paid vacations

Trusco Nakayama Health
Insurance Association website

To encourage employees to take paid vacations, we encourage all employees
to take at least six planned vacation days a year. Also, there are many policies
established that make it easier to take paid vacations, such as birthday vacations and paid vacations that can be taken in hourly units (Average number ofpaid vacation days taken a year: 11.8).

Specific Health Management initiatives

TRUSCO Smile Supporters

We have established the Health Care Section for the purpose of building
an environment where staffs can maintain their physical and mental
health and feel secure in their work. The Tokyo Head Office, Osaka Head
Office, and distribution centers each have a Nursing Office designed for
employees who are not feeling well. Public health nurses working at ourTokyo and Osaka head offices serve as points of contact for employee
health-related consultations.

65.4% (employees)

Percentage of female employees that
returned to work from child care leave

96% (43 persons)Vitalization of Communication via a Staff Registry

Number of male employees that havetaken child care leave

11 persons

Percentage of eligible males/females
that took childcare leave

Males: 26% (employees)
Females: 100% (employees)

Average number of overtime hours
per month14.4 hours(including fixed overtime)

We create a staff registry on an annual basis that includes each employee’s
name, date of birth, photo, etc. This acts as an important tool for communication among our employees who work throughout Japan.
In addition, questions geared to find out about what makes a particular employee feels amazing or down are also posted in order to understand that
employee's values. This is used as a catalyst for improving the behavior andideas of coworkers who read the answers.

Post
Grade
Company Cell Phone
Company e-mail address
Date of Joining

Note: The above indicators are for the parent company only.

Health Care Section
Health Care Section(Tokyo Head Office)(Osaka Head Office)Akiko Amakawa, public health nurse Kiyomi Yamada, public health nurse

Regular Health Check Ups

Mental health

We offer full and mini health check-ups. We also
subsidize the cost of physicals for dependent
spouses. (Staffs over the age of 35 can undergoa full health check-up and staffs under the age of
35 can undergo a mini health check-up)
Maintaining a 100% checkup rate
(checkup performed once a year with company
subsidy)
Improving secondary checkup rate

We also focus on mental health initiatives.
Maintaining a 100% stress check rate
Using organizational diagnosis results to improve the workplace environment
Providing mental health education throughself-care and line care training
Free mental health consultations (free consultations are available for individuals and theirfamilies with outside specialized organizations)

Original insurance card(sample)How I spend my stay home
Recent big purchaseStaff Directory

Merits of having a single company-based health insurance association
Measures can be tailored to TRUSCO’s characteristics through analysis of
medical fee receipts, etc.
Makes it easier to prevent employees as well as their family members fromgetting sick.
Will make it possible to reduce premium amounts in the future.

Integrated Report 2022

Corporate Data

Smooth decision-making
Started providing subsidies for specific types of infertility treatment(maximum of $450, up to 6 times per child)
Provision of subsidy for outpatient smoking cessation treatment (up to $180)*Additional assistance for HPV and PSA testing is scheduled to begin in April 2022. We will
make additions and changes as needed, such as reviewing items for health checkups.

Integrated Report 2022

Members of the Trusco Nakayama Health
Insurance Association office(From left to right: Manager Akiko Tani, andSupervisor Ryoko Nakamura)

The Nakayama
visually impaired
welfare foundation

As a company that looks after the lives of our employees, we want to takeresponsibility for the health of our employees and their families. Basedon that desire, in April 2019, we established the Trusco Nakayama Health
Insurance Association, our sole health insurance association, at the Tokyo
Head Office. Its establishment allows us to further enhance our own healthservices. We will promote initiatives that are suitable for our company sothat employees can continue working with peace of mind for many years.

Started in 2019

Relationships with
Stakeholders

When you feel this person
is amazing
When you feel disappointed
in this person
How the Corona Disasterhas changed me
A movie that has left alasting impression on me

Trusco Nakayama Health Insurance Association

Corporate
Governance

Course History
Home Address
Home Tel
Cell phonee-mail address
Emergency shelter (home)
Return address
Return Tel
Emergency shelter
Date of birth
Qualification
Place of birth
Nationality
Last school education

Planet Saitama and Planet South Kanto each have a childcare center for working
full-time employees and part-time employees. The childcare center has full-timeworkers that are permanently assigned there. In addition, the employee cafeteriaat Planet Saitama, where a full-time chef and nutritionist are permanently assigned, offers an original menu that focuses on the health of employees.

68

Efforts are being made to keep members of theCompany from smoking, including making it mandatory for directors, executive officers, division generalmanagers, managers in charge, future manager
candidates, and those who wish to join the company.
Smoking cessation support
Non-smoking rate for the entire company: 86.0%(Non-smoking rate for managers: 100%)

Affiliation History

Serves as both a childcare center and employee
cafeteriaChildcare center at Planet South Kanto Planet Saitama employee cafeteriaChildcare workers from Tora Kids Isehara Nutritionists at CHERRY BLOSSOM
Left to Right: Kaori Imai and Keiko Koda Left to Right: Sayuri Ishikawa and(together with children)
Aki Hoshi

Companies that promote
non-smoking

Environmental
Efforts

Rate of paid days taken off

Corporate
Governance andSocial Contributions

6.9% (9 persons)

Health Care Section (located at Tokyo
and Osaka where are Head Office)Human Resources

Percentage of women in management roles

This is a mentor system for staff who have uncertainties and concerns about
their job to consult with a senior staff member. There are currently 15 seniorstaff members throughout Japan that provide such support.

“As a company that supports manufacturing in Japan,
Trusco Nakayama Corporation aims to be of service topeople and society. Through our business activities, wewill continue to help reduce the environmental impact
caused by manufacturing sites, workplaces, and suppliers as well as promote the health of our employees sothat they can continue to work with peace of mind formany years to come.”

Digital Service

51.0% (employees)（

Health Declaration

Sales

Percentage of female employees hired

Employees of Okazaki Branch and Planet Tokai
Back row from left to right: Akira Kawauchi, Yui Shinojima, and Kai Koizumi
Front row from left to right: Distribution Center Manager Yoko Nakanishi and Maiko Noumi

Trusco Nakayama Corporation

Distribution

Policies to Give Staffs Long-term Job Security

Products

Health Management

Value Creation Management
PolicyWe have a responsibility to provide workplaces where staff members can work with stability and peace of mind

69

Benefits and Welfare
For spending valuable time with those who are dear to us
We need to build an environment where employees canengage in their work safely with both body and mind. Inorder to encourage our employees to spend time with theirfamilies and loved ones on holidays, we have our own recreational facilities and boats which they can use.

Programs
Nakayama Pension
This contribution-type corporate pension plan provides 10% financial assistance to a reserve fund to pay out to staffs as a 10-year fixed pension fromthe age of 65.

Congratulatory/Condolence Programs
TRUSCO has put in place five congratulatory and condolence programs for
executive officers, staffs and part-time staffs.
1. Congratulatory
gift for marriage

The company presents $270 as congratulatory money
to any staff who marries.

2. Congratulatory
gift for childbirth

The company presents a catalog gift worth about $90
for each child when a staff or their spouse gives birth.

3. Condolatory/
condolence gift

The company presents up to $450 as a condolatory gift
when a staff or a member of their family passes away.
We offer a condolence gift to families when an employee passes away (up to 90 thousand USD depending on
how long the employee worked for the company).

4. Injury or Sickness The company presents $90 to a staff who has to take
Compensation
leave due to injury or sickness.
5. Disaster Compensation

The company presents up to $900 based on the degree the house and belonging of an employee is damaged due to a disaster such as a fire or earthquake.

Facilities
Resort Condominiums (15)

· Shima City, Mie· Chuo-ku, Kobe City
etc.
Kurio Odori La Mode
(Chuo-ku, Sapporo City,
Hokkaido)

Recreational/Training
Facilities

（

（
70

Staffs can purchase company shares by deducting it from their salary eachmonth to receive a 10% bonus to the value of the contribution. It is recommended that employees withdraw shares once they become unit shares andown shares in their own name.

Accumulation Savings
This program allows staff to deduct money from their salary and bonuses toan accumulated savings in which the company will contribute twice each year
to the staff.

Wine Seminar
We hold a wine seminar, a party designed exclusively for singles, once every
two months at two locations, the Tokyo Head Office and the Osaka Head
Office, to give single employees an opportunity to meet other singles. (Westopped holding wine seminars in order to prevent the spread of Covid-19.)

For the Embodiment of “TRUST COMPANY”(Corporate Governance and Social Contributions)

In order to continue to be a “TRUST COMPANY (=TRUSCO)”, a company that is trusted by all of our
stakeholders, we have made this concept the starting point of our daily corporate activities.
We will build our own governance system, strive to provide highly transparent information,and communicate with our shareholders, the local community, and society.

60th Birthday Gift to Staffs
In celebration of a 60th birthday for officers
and staff, the company invites those employees and one member of their family toeither Tokyo Baycourt Club, a membershipresort, or one of our company-owned recreation facilities (Kyoto Kaguraoka Rengetsuso, TRUSCO Resort and Spa Karuizawa, or
TRUSCO Resort and Spa Hakone). We also
arrange and cover travel to and from the Tokyo Baycourt Club Hoteland Resort (Koto-ku, Tokyo)
location (Green Car tickets will be provided
when traveling by Shinkansen and businessclass tickets will be provided when travelingby air) and also provide a monetary gift.

Environmental Efforts E...............................................................................................................................................................

72

Corporate Governance G..............................................................................................................................................................

74

Relationships with Stakeholders S.........................................................................................................................

83

We own four company
dormitories (three in Tokyoand one in Osaka) for single staff and staff transferred to a position awayfrom their family. TRUSCO
also provides dormitories.

TRUSCO’S Shinbashi(Minato-ku, Tokyo)

TRUSCO’S Osaka
TRUSCO’S Ayase(Higashi-Osaka City, (Adachi-ku, Tokyo)
Osaka)

Two Company Owned Yachts

We use these facilities for a wide
range of applications such as staff
trips, and staff training. The chefs
are also full-time employees of ourcompany as we want to be in thehands of people who want us to eat TRUSCO Resort and Spa Karuizawa
From left to right: Assistant Manager Aoi Iki,
delicious food.
Sous-chef Kan Iizuka, and Manager Masato Kawashima

TRUSCO Resort and Spa Hakone
Left to right: Emiko Kinoshita, Sous-chef Toshiro Sato,Manager Ryo Ishiguro, and Head Chef Taro Kinoshita

Employee Stock Ownership Association

Singles’ Dormitories (4 locations)

We have 15 resort condominiums that our officers,
staff, and part-time staffs can use freely.
· Chuo-ku, Sapporo City
· Kusatsu, Agatsuma
District, Gunma· Minato-ku, Tokyo

Kyoto Kaguraoka Rengetsuso

Kyoto Kaguraoka Rengetsuso
Left to right: Head Chef Yusaku Karatsu, Manager Kenichi
Hitaka, and Assistant Manager Chiharu Kitagawa）（

Integrated Report 2022

TRUSCO owns two yachts, one in Yokohama (Kanagawa) and Ashiya (Hyogo).
These yachts are made available as a chance to enjoy a bit of cruising. In
addition, the company will subsidize half the cost of acquiring a license fora small vessel boating license (100 license holders in the company). (as ofDecember 31, 2021)））

E Environment
S Social
G Governance

TRUSCO’S I (Yokohama)
Length: Approx. 41.00 ft. (12.50 m)
Weight: Approx. 18 tons, Capacity: 12 persons
Horsepower: 370 (5,460 cc) x two engines

TRUSCO’S II (Ashiya)
Length: Approx. 36.00 ft. (10.98 m)
Weight: Approx. 12 tons, Capacity: 12 persons
Horsepower: 285 (3,600 cc) x two engines

Integrated Report 2022

71

Actions to reduce the environmental burden through business activities

By offering a wide variety of PRO TOOLs, our customers
are able to centrally procure the tools that they need at their
manufacturing sites. As a result, the consumption of energy
and resources for procurement can be reduced compared topurchasing from multiple suppliers.

One-stop Service
For reducing labor such as labor for procurement and use of resources such as packaging materials

Competitors in theSame Sector

Suppliers

Competitors in theSame Sector
Suppliers

CO2 Emissions Scope1*1 1,941.4 t-CO2
Scope2*2 7,154.2 t-CO2*1 Direct emissions from fuel used by the Company*2 Indirect emissions resulting from energy supplied by another company

Centralized
Procurement

Customers

Competitors in theSame Sector
Products

TRUSCO is committed to reducing the environmental burden of our business activities, planning and developing environmentally friendly PB Products, and proactively recycling, reusing, and returning products to their original state. The Company
is working to reduce the environmental impact of the entire supply chain, from our company to even the users of our products, aiming to achieve sustainable distribution. We call these TSV (TRUSCO Shared Value) activities in the company, andwe are working to raise awareness of reduction of the environmental burden among each and every employee. (see p.20).

One-stop service reduces the environmental burden

Value Creation Management
PolicyE

Environmental Efforts

Competitors in theSame Sector

Suppliers

Distribution

Actions to reduce the environmental burden throughout the supply chain

Suppliers

ly-friendly

Customers (5,527)

2 Reducing the environmental burden by

Reducing the environmental burden throughfixed-cost based distribution

We have installed solar panels to the
maximum extent possible when distribution centers and new company buildings
were constructed, aiming to increase ourown power generation capacity of renewable electricity to 3,500 kW by 2025.

Solar power panels on the roof of Planet Saitama

Changes in Power Generation and Power Self-sufficiency Rate
Power Self-sufficiency Rate (%)
Power Generation(ten thousand kWh)

9.6

10.4 10.7 11.3

10 1.3

72

85

99

2014

2015

2016

2017

139
2018

18.9

16.5%

255

260

14.1
183
2019

ten thousand
kWh*

2020

2021

*The national average of energy consumed by a household in a year is 4,322 kWh of electricity, which meansthat our power generation is equivalent to the annual power consumption of approximately 600 households (fromthe Ministry of the Environment's website “Statistical Survey of CO2 Emissions from the Household Sector”).

Introduction of Environmentally Friendly Vehicles
We are actively introducing hybrid vehicles as company-owned trucks used
for deliveries and plan to introduce 40 hybrid vehicles (about 25% of our delivery trucks) by 2025. We will also gradually switch our sales vehicles to environmentally friendly vehicles, starting with those that need to be replaced
without doing so
unnecessarily.
*TRUSCO purchaseda Porsche Taycan toconfirm and study
Porsche’s level ofcommitment toelectric vehicles

TRUSCO uses foldable containers andreturn cushions* to deliver products tocustomers. Delivering products along
fixed routes enables us to do so without using extra materials that would
normally be required for shipping.
*TRUSCO Return Cushion TRC-20 L/50 L(available in three colors)

Reducing the environmental burden through our Direct Delivery Service (2.83 million packages a year)
TRUSCO’s Direct Delivery Service realized through our abundant inventory
and digital transformation (DX) of our distribution system makes it possible
to make direct deliveries to users (2.83 million packages a year) insteadof two-step deliveries that involve customers. Not only does this shortendelivery times but also helps reduce the amount of packaging materials
used and CO2 emissions. (see p.48)

MRO Stocker (329 locations)
MRO Stocker is like “Okigusuri,” a business model that has been aroundfor many years in Japan, but for tools. Always having PRO TOOLs instock that are used daily eliminates management costs, delivery time,
and wasteful purchases. In addition, delivery costs associated with eachorder are also reduced, which helps to reduce the environmental burden. (see p. 52)

MRO Stocker
WebsiteWe borrow a space at the user's location andinstall MRO Stocker that provides just the right
PRO TOOLs for that user. This makes it a highly
productive, environmentally-friendly service.

Naojiro Repair Workshops ($13 million/year)
Naojiro Repair Workshops offer eight services, including repair and resharpening. This service allows for the hassle-free repair, reuse, and maintenance of PRO TOOLs, making manufacturing sites that use the service
more environmentally-friendly (see p.53).

Video on
I-Pack®

Electric vehicle
Porsche Taycan*

Hybrid Truck(Hino Dutro)

We have six I-Pack® high-speed automated packaging and shipping lines
throughout Japan that are capable ofpackaging and preparing 720 packages per line for shipping in just an hour.

Naojiro Repair
Workshops
Website

TRUSCO works together
with Gifu Plastic Industry
Co., Ltd. to collect Private
Brand product pallets
for recycling. Unneeded
pallets are collected andpulverized to make recycled pallets. Pickup costs
are not required.

Corporate Data

Integrated Report 2022

We deliver our products to retailers via fixed routes from distribution centers located near our customers (27 locations throughout Japan), which
reduces packaging materials and CO2 emissions associated with delivery
compared to shipping by courier service.

*3R: Reduce, Reuse, and Recycle

The Nakayama
visually impaired
welfare foundation

Marks that indicate eco-friendly products

16.5%

Relationships with
Stakeholders

Environmentally-friendly PRO TOOLs are indicated by various marks in the TRUSCO Orange Book, including the Eco Mark as well as marks for products subject togreen purchasing and products that are RoHS compliant, to allow customers to select those tools. In addition, customers can download data sheets with information
on chemical substances contained in products and other information at TRUSCO
Orange Book.Com.

Power Self-sufficiency Rate

Corporate
Governance

Providing environmental information in catalogs

2,793 kW

Environmental
Efforts

An example of TRUSCO
product packaging thathas been redesigned

Packaging was changed from blister packs
to plastic-free paper boxes. As a result, CO 2
emissions from package manufacturing havebeen reduced by about 5% and CO2 emissions
from package disposal reduced by about 50%.

Power Generation Capacity

Corporate
Governance andSocial Contributions

Efforts to make TRUSCO products environmentally-friendly

Trusco Power Generation
Installations (19 locations)

Human Resources

MRO Stocker reduces the environmental burden by providing a one-stop
service for users to purchase products. TRUSCO also provides services
that support the 3R* of PRO TOOLs that are used and can be reused for along time after purchase.

Our goal is to achieve the “best” environmentally-friendly and sustainabledistribution of PRO TOOLs by delivering products in the most efficient andleast environmentally burdensome manner possible for our customers.

TRUSCO Keyless Drill Chuck
Stock Number: TDC-250, etc.

(Unlimited ∞)4 Use of our products

We are actively introducing environmental equipment to reduce the environmental burden generated by our own business activities.

New packaging

Users

3 Delivering products to our customers

We would like to help users select environmentally-friendly PRO TOOLs
through efforts such as providing environmental information in our catalogs and planning/developing TRUSCO Private Brand products that areenvironmentally-friendly.

Old packaging

43

using our equipment

In the planning and development of our own TRUSCO brand products, wehave set environmental standards for resource conservation, waste reduction, long-lasting use, etc., and are promoting environmentally friendly
product development from every aspect, from product design to productuse and disposal. For existing products, we are reviewing the packaging ofcontainers to reduce the volume of packages, improving loading efficiency
by no longer shipping products in containers by the dozen and and reducing the resources used for container packaging.

72

3

Digital Service

1 Offering products that are environmental-

2

Sales

(2,966)

1

Integrated Report 2022

73

For the Embodiment of “TRUST COMPANY”

Composition held once a month

Stopped in the 59th term due to the Covid-19 pandemic.

Board of Auditors Meeting
Composition held once a month

8 employees in total

Full-time Auditor*
Part-time Auditor*

Board of Directors Meeting

Management Conference

Composition

Composition

Accounting Auditor

Hotline for Reports from Outside the Company
Legal Advisors

31 employees in total

ReportingPresident

ReportingInternal Auditing Office
Audits conducted through the“Fire Lookout Tower”,
electronic auditing system

Audits/guidanceDirector, General Manger of theBusiness Management Department

Atsushi Kazumi

Distribution
Department

Product Dept.

Sales Dept.

Director, General Manager of theDigital Service Strategy Department

Senior Executive Officer,
General Manager of the
Product Department

Director, General
Manager of the Sales
Department

Director, General Manager ofthe Distribution Department

Atsushi Kazumi

Tatsuya Nakayama

Kazuo Nakai

Hideki Naoyoshi

Integrated Report 2022

This is the industry's first electronic auditing system, which waslaunched in June 2001. The system is operated for the purpose of
immediately detecting abnormal events using electronic data ofinternal transactions and taking measures to prevent recurrence.

Board of Directors Meeting (Management Committee)

Shushazentaku compliance training

We conduct decision-making at Board of Directors Meetings, generally
held 1 time per month. The Management Conference seeks a wide range
of opinions from participants that include Executive Officers and Division
General Managers, to ensure a broad perspective and transparency.

To ensure that each and every employee hasa high sense of ethics, we have adopted theconcept of Shushazentaku as a complianceguideline and instilled our corporate stanceof making a decision based on what is rightrather than focusing on whether it isprofitable. We distribute the Trusco Zentaku
Book, our compliance manual, to all employees, including part-time workers, to ensurethat they are fully aware of the importance ofmaking good choices.

Features of the Conference(1) Round-table layout allowing face-to-face communication(2) Changes are made to seating every time with no priority given to
facilitate participation from a fresh perspective(3) Minutes of the Management Conference, containing not only resolution items but also the comments of every individual, are released toall employees within one week

37.5

44.4

50.0

Number of outside directors was increased by one.

Appointed two outside directors

Number of outside corporate
auditors was increased by one.

50.0

5

5

4

4

3

4

4

4

49th term(2012)

50th term(2013)

51st term(2014/3)

55.6
42.9
4
3

52nd term 53rd term
(2014/12)(2015)(9-monthfinancial results)

33.3

4

Trusco Zentaku Book,
our compliance manual

Number directors

62.5

62.5 was increased by four.

40.0

40.0

50.0

41.7
22.2

2
3

3
2
3

3
2
3

54th term(2016)

55th term(2017)

56th term(2018)

3

7
2

33.3

60.0%
42.9%

6 4 (persons)
3 3 (persons)
3 3 (persons)57th term 58th term
(2019)(2020)(Consolidated
Accounting Started)

Directors
Outside Director
Outside Corporate Auditors
Outside Officers Ratio
Outside Director Ratio

Corporate Data

Note: One full-time Corporate Auditor and one part-time Corporate Auditor are outside corporate auditors.

74“Fire Lookout Tower” electronic auditing system

The Nakayama
visually impaired
welfare foundation

Digital Service
Strategy Department

Sustainability Committee
Effective January 1, 2022, the name of the Compliance Committee waschanged to “Sustainability Committee”, which is chaired by the Director &General Manager of the Business Management Department and normallymeets twice a year. The committee formulates activity policies, promotes andsupervises activities, and reports regularly to the Board of Directors with theaim of solving social issues and contributing to sustainable local communities
by creating both social and corporate value through our business activities.

Changes in the Composition of the Board of Directors

Cross-departmental personnel transfers(1) Transfer of personnel, including manager positions, generally every 5 years on average (2) Fostering multifaceted employee development and creating a corporate
culture free of factions (3) Preventing fraud through new surveillance

Business
Management Dept.

Evaluation System Method(1) Personal information on voters is completely undisclosed.
(2) Each of 3 evaluation items is rated on a 5-point scale.
(3) Voting results are reflected in personnel evaluations, promotions, etc.

Relationships with
Stakeholders

Direct contact (hotline) from
employees (includes employees
from overseas subsidiaries)

Oncea yearCorporate
GovernanceTetsuya Nakayama

Direct contact (hotline)from employees(includes employees
from overseas
subsidiaries)

Promotion
OJS

Conducts mutual OJS assessments of
employees working in the same workplace(superiors, colleagues, and subordinates)with results reflected in personnel evaluations.
All employees who know the employee will
evaluate the employee and the results will
be reflected in promotions, etc.

Environmental
Efforts

Execution of Duties

Sustainability
Committee

Compliance
Officer

Deloitte Touche Tohmatsu LLC

Reporting
10
1
20

Twice
a yearCorporate
Governance andSocial Contributions

Members of the Board of
Directors Meeting
Senior Executive Officer
Division General Manager

Sustainability
Promotion Section
Safety Committee
Health Committee

Reporting

Audits

10 employees in total

Central Health and
Safety Committee

Coordination

Personnel
RecordOJSDescription*For all full-time and part-time employees, excluding officers.

*Name change from January 1, 2022 (formerly “CSR Section”)

2
1
Reporting

Coordination

HotlineIn-house Hotline: An internal hotline for employees has been
established in the Sustainability Promotion Section*.
Legal Hotline: An external hotline for employees has been established,
and managed by an outside party.
Business Partner Hotline: A hotline for our suppliers has been establishedin the Sustainability Promotion Section*.

Number ofTimes

Human Resources

held once a month

TRUSCO has established a hotline for reporting from both inside andoutside of the company to quickly discover, handle and prevent
recurrence of compliance-related issues.

Type

Digital Service

1
3
2
1
1

President
Executive Directors
Full-time Auditor*
Part-time Auditor*
Senior Executive Officer

Interview video

Sales

Direct contact(hotline) fromsuppliers(1) Executives also participate, to engage in dialog
with shareholders(2) Conducted at head offices and at distribution
centers

Top-Level Parties Conference(Board Meeting)

1
3
3
2
1

TRUSCO selects Outside Directors not only for the prevention of
improprieties, but for their broad knowledge and abundant experience
concerning company management and for their ability to make contributions to sustainable growth and the improvement of company value.
Interview with Outside Directors (see p.79)

Distribution

Study tours for shareholders

Board of Directors Meeting(Management Conference)

President
Executive Director
Outside Director
Full-time Auditor*
Part-time Auditor*

Objectives(1) Enhance the objectivity of the evaluation based on the fact thatvarious evaluations are conducted not only by supervisors but
also by colleagues and subordinates with whom the employees
work on a daily basis.
(2) Evaluation comments are fed back to the participants to help
them reaffirm their “strengths,” “weaknesses,” and “what is
expected of them,” leading to behavioral reforms.
(3) To create a good sense of tension in the workplace since it is asystem in which co-workers mutually evaluate each other.
Knowing that they are being monitored will encourage all
employees to work harder and improve their abilities.

HotlineGeneral Meeting of Shareholders

Suppliers

Consisting of only executives (excluding Outside Directors), our Board of
Directors Meetings deliberate and share the directions of the company,
ensuring objective and rational decision-making.

Products

Company Earning Your Trust

Governance Structure (as of April 1, 2022)(1) President OJS is conducted(2) Held early in the period, avoiding days on
which general meetings are concentrated(3) The meeting is held in person at a venue aswell as streamed online.
(4) In addition to the audio present, subtitles areprojected onto a screen in real time.
(5) Results of resolutions at the meetings, a portionof Q&A items, and the results of questionnaires
are released on the website within three days

Open Judging System (OJS, 360 degree evaluation)

Establishment of Outside Directors (Board Brain)

The company name and corporate logo
are a direct
expression of “TRUST COMPANY”, a company that is trusted
by all stakeholders. We will fulfill our social mission by embodying
this concept
as the starting point of our daily corporate activities.

Features of the General Meeting of
Shareholders

Top-Level Parties Conference (Board Meeting)

Value Creation Management
PolicyG

Corporate Governance

59th term(2021)

Integrated Report 2022

75

Outside

Promotion

43%

OutsideCorporate
Auditors Ratio

Internal Directors 4
Outside Directors 3Internal
Internal Corporate Auditors 1
Outside Corporate Auditors 2
After the resolution of the 59th Ordinary
General Meeting of Shareholders, there
will be one Internal Auditor.It is planned
to have two outside corporate auditors.

67%

Internal

OutsidePresident

FemaleOfficers
Ratio

10%

Females
Males

1
9

Male

President OJSPresident

Number of attendees of theGeneral Meeting of Shareholders

Approval rating

Valid ballots

Approvals

324

98.4%

308

303

Tetsuya Nakayama

Management strategies, measures, and programs initiated by President Nakayama
Total abolition of all draft exchanges, management to hold (inventory, real estate, vehicles), management strategy to stop, policy to strengthen logistics, policy to expand inventory, measures to expand Direct Delivery Service to users, Ai-based quotation system called “Sokuto Meijin”, unification of PB products into TRUSCO brand, name change for Nakayama Business
Bulletin to Orange Book, number of inventory items and stock hit rate KPIs, MRO Stocker, performance-linked dividend policy, free-choice shareholder benefits, the idea of “TRUSCO Shirarezaru gulliver”, year-round inventory of seasonal products, Nara factory closure, DOTKUL, Face Phone, Ichioshi Catalog, Cocomite, Orange Book Jr., product request advertisements,
Yattemasen List, stocking of “difficult-to-deliver” products, OJS (Open Judging System), employee roster with photos, “Orange Doctor” qualification exam, wine seminars, Childcare
Leave Program (3 years), establishment of company resort condominiums and recreation facilities, prohibition of non-regular employment of the head of household, establishment of the
Health Care Section, annual payment of retirement allowance (see other personnel programs, p.67), establishment of Trusco Nakayama Health Insurance Association, establishment ofMarine Club, donations to Peshawar Kai, sponsorship of Osaka Lovvits (women's handball team), and establishment of the Nakayama visually impaired welfare foundation.

Demotion

Executive
Officer
Demotion

Promotion

OutsideDirectorRatio

3. Ratio of Female Officers
FemaleDivision General
Manager

Distribution

A personnel evaluation system is in place whereby managers and above are evaluated from multiple perspectives.
Voters (approximately 140 who are bosses or higher) look at the executive’s attitude toward work and vote giving amaximum of 4 points for each evaluation item (24 points in total). In addition to the voting results, daily conducts,
judgment, and problem-solving skills are also taken into consideration as criteria for promotion or demotion.

Executive Director
Candidates

2. Auditor Ratio

Products

We have combined the skills required for management with our existing Open Judging System (OJS = 360-degree evaluation) tocreate a skills matrix for our directors. The skills matrix for directors is expressed as a ‘T-shape’. We believe that the most importantskill of the President is the creation of strategies, measures, and systems. We disclose the strategies, measures, and systems that the
President devised as a manager aiming for creative management. For directors and auditors, in addition to the presence (or absence)of 11 skills based on experience and performance, we utilize Open
Judging System (OJS = 360 degree evaluation) which has been
firmly rooted in the Company over many years of system operation
Open Judging System
General Skills Matrix
to enhance the fairness and objectivity of evaluations. For
Main areas where we can expect(OJS = 360 degree evaluation)
contributions to be made due toevaluating the President, we disclose the results of votes cast by
Objective evaluation fromexperience and performancea multi-faceted perspective
shareholders attending the General Meeting of Shareholders as animportant evaluation indicator (President OJS).

Open Judging System (OJS = 360 degree evaluation) based Officer Evaluation

1. Ratio of Directors

Value Creation Management
Policy

TRUSCO Skills Matrix

Compositionof Officers

Sales

Proposed in 2021: Vacation Bank Program, removal of PRO TOOLs restrictions, enhancement of Childcare Leave Program for male employees, Infertility Treatment Leave Program, and delivery lead time visualization.
Note: We believe that the most important skill demonstrated by President Nakayama is the planning of management strategies, measures, and systems, all of which are disclosed by the Company.

Open Judging System (OJS = 360 degree evaluation) (4 points × 6 items for a total possible maximum score of 24 points)
Problem Solving
SkillsCommunication
Skills

3.3

3.2

2.5

3.3

3.4

3.2

19.0

3.5

3.1

3.3

3.3

3.1

3.0

19.4

3.1

2.9

2.8

3.2

3.1

3.1

18.2

3.4

3.0

3.2

3.2

3.3

3.2

19.4

→
→

(+ 0.1)(+ 0.2)→→(- 0.3)(+ 0.3)

Directors(Senior Executive Officers)
Director, General Manager of theSales Department

Kazuo Nakai
Director, General Manager of the Business
Management Department and General Manager of the Digital Service Strategy Department

Atsushi Kazumi

Director, General Manager of theDistribution Department

Hideki Naoyoshi
Senior Executive Officer, General
Manager of the Product Department

Tatsuya Nakayama
Kenichi Saito
Outside Director

Outside directors are not subject to OJS evaluation.

Outside Director

Takako Suzuki

3.1

3.0

Originality/Ability toCreate New Ideas

Problem Solving
SkillsCommunication
SkillsShushazentaku(Fairness, justice,and integrity)

2.7

2.9

3.0

2.5

2.9

3.1

Ability to Make Judgments by Grasping the
Essence of Matters

Management
Skills2.8

2.9

Outside directors are not subject to OJS evaluation.

(+ 0.1)

Auditor(- 0.7)

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

Corporate
Management

Sales
Department
Marketing

Product
Development●●

Distribution

Catalog Media

Corporate
Management
Full-time Auditor*1

Hiroaki Imagawa
Hiroho Kamakura

●

●

●

●

Finance/
Accounting

Legal Affairs
RiskManagement

ESG
Sustainability

Global Business

●

●

●

●

●

●

●

●

●

Human Resources
IT
Human Resources
Digital Service
Development●

Akira Takada

Part-time Auditor●●

Full-time Auditor

Total(change from last
year)

16.8

●

●

Finance/
Accounting

●

Sales
Department
Marketing

Product
Development

Distribution

Catalog Media

Finance/
Accounting

●

●

●

●

●

●

Human Resources
IT
Human Resources
Digital Service
Development

●

●

●

●

●

●

●

●

●

Legal Affairs
RiskManagement

ESG
Sustainability

Global Business●●

Legal Affairs
RiskManagement

ESG
Sustainability●●

Global BusinessCorporate Data

*2 Executive Officer OJS results for the 59th term are provided.

18.1

→

2.9

3.1

Total
(change from last
year)

●

Catalog MediaThe Nakayama
visually impaired
welfare foundation

Shushazentaku(Fairness, justice,and integrity)●

Distribution

Relationships with
Stakeholders

Communication
SkillsManagement
Sense

→

*2

Objectivity, Neutral- Ability to Identify Problems/
ity, Common Sense, Ability to Make Suggestions for Improvement
and Knowledge

Compliance

Sales
MarketingCorporate
Governance

Kuniaki Hagihara

Product
Development

Human Resources
IT
Human Resources
Digital Service
Development

Corporate
Management

Environmental
Efforts

Outside Director

Fields in Which Directors Have Experience/Track Record

Corporate
Governance andSocial Contributions

Originality/Ability toCreate New Ideas

Total(change from lastyear)

Human Resources

Management
SkillsShushazentaku(Fairness, justice,and integrity)

Digital Service

Ability to Make Judgments by Grasping the
Essence of Matters●*1 To be appointed as Full-time Auditor at the 59th Ordinary General Meeting of Shareholders which is scheduled to be held on March 18, 2022.
76

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Integrated Report 2022

77

Interview with Outside Directors

Officers' Compensation
Basic Policy on Determination of Compensation, Etc. for Directors and Auditors

Compensation System for Directors and Auditors

The Company determines the officers' compensation paid to Directors andAuditors based on the following.
(1) The level of remuneration should be such that the Company is able toretain the motivation to improve business performance and to secure
excellent human resources from within and outside the Company.
(2) The level should be based on changes in the business environment,
objective external data, etc., and should take into account the balance
between public standards, management content, and employee salaries.
(3) Officer compensation should be paid within the annual remuneration
limit, including bonuses.

Fixed Renumeration
Monthly fixed remuneration
Paid in accordance with each Director's position, their individual performance, etc.

Bonuses for Directors and Auditors
Up to 3% of net income attributable to shareholders of the parent
company at the end of the fiscal year depending on performance

Method of Determining Officers' Compensation and Rate of Payment
Remuneration for Directors and Auditors consists of fixed remuneration(monthly fixed remuneration) and bonuses for Directors and Auditors. The
following remuneration ranges, designed to take into account the responsibilities of each position and the degree of influence on management,
have been established and the remuneration will be determined by the
Board of Directors, respectively, after taking into account the management
environment, business performance, achievements, management capabilities, and the degree of contribution.
The determination of the amount of remuneration for each officer is left tothe discretion of President Nakayama by resolution of the Board of Directors. The amount of compensation for each officer is determined within arange designed for each position, taking into account the responsibility of
the representative authority, position, etc., and the degree of influence onmanagement, and taking into account performance, achievements, management ability, level of contribution, and other factors. The reason for delegating such authority is that the Company has determined that decisions
by the President, who oversees the execution of business operations, areappropriate for the evaluation of each Director while maintaining a bird'seye view of the Company's overall business performance.

Position

Senior Executive Director
Executive Director

Up to $5,405 per year*1

Director

AuditorThe amount of compensation is determined at the beginning of each fiscal
year within a range designed for each position, taking into account the responsibility of the representative authority, position, etc., and the degree of
influence on management, and taking into account performance, achievements, management ability, level of contribution, and other factors.

2. Officers' Bonuses
As an incentive linked to profit indicators similar to the basic policy forshareholder returns, the total amount of officer’s bonuses shall be determined by the Board of Directors and paid once a year within six months
after the end of that fiscal year, with the maximum amount of 3% of net
income attributable to the parent company after calculating the reference
amount by multiplying the cumulative bonus multiplying ratio stipulated in
the internal regulations by the net income attributable to the parent company shareholders at the time of closing of accounts.
The amount to be paid individually shall be determined for each Director
within the remuneration range, taking into consideration the degree ofcontribution to the business results for the relevant fiscal year.
*Although Auditors and Outside Directors are compensated in the same manner as directors fromthe viewpoint that they are responsible for improving the corporate value of the Company and its
consolidated subsidiaries, individual amounts for fixed remuneration and officers' bonuses to be
paid to Auditors shall be presented by Directors and finalized through discussions among Auditors.

Range of Compensation

Range of Officers'
Compensation

President
Director

1. Fixed Renumeration

1. Fixed Renumeration

2. Officers' Bonuses(1 + 2)$540 to $1,297

0 to $720$540 to $2,018$243 to $351

0 to $216$243 to $567

$189 to $297

0 to $180$189 to $477

$162 to $243

0 to $126$162 to $369

Outside Director$36 to $81

0 to $9$36 to $90

Full-time Auditor$135 to $243

0 to $81$135 to $324

$36 to $81

0 to $9$36 to $90

Part-time Auditor

Up to $900 per year

*2

*1 Decided at the 56th Ordinary General Meeting of Shareholders held on March 8, 2019.
*2 Decided at the 58th Ordinary General Meeting of Shareholders held on March 18, 2021.

(Unit: thousand USD)

Prerequisites for Ensuring the Effectiveness of the Board of Directors and Board of Auditors
In order to ensure diversity, the Board of Directors consists of four Directors from within the company who are familiar with the business and three
independent Outside Directors. The appointment of Directors is informallydecided (resolved) at a meeting of the Board of Directors with the participation of Outside Directors. After assuming office during the General Meeting of Shareholders, they will undergo a multifaceted evaluation based on
the Open Judging System ((OJS), a 360-degree evaluation system), whichis the Company's unique evaluation system for Officers (excluding Outside

78

Integrated Report 2022

Directors and Part-time Auditors).
In the future, the Board of Directors will continue to recommend suitable
candidates, regardless of gender or age, who meet the statutory requirements and have excellent character and insight. As for appointing foreigners, we believe it is not necessary as the scale of our overseas business islimited at present. However, we will consider it as our business expands.
As for Auditors, we appoint those who have extensive knowledge of laws
and regulations, finance, accounting, and corporate governance.

Outside Director (Board Brain (BB))

Outside Director (Board Brain (BB))

Outside Director (Board Brain (BB))

Kenichi Saito

Takako Suzuki

Kuniaki Hagihara

President, ForeSight & Company Ltd.

President, S.T.CORPORATION

Chairman, Hagihara Industries Inc.

Since they utilize their abundant experience and knowledge so as to contribute to the development of
the company, TRUSCO calls Outside Directors “Board Brains.” In general, the role of an Outside Director
is to prevent scandals as an outside observer. However, at our company, we have formed our own highly
transparent governance system, so we place emphasis on contributing to “sustainable growth and theimprovement of company value.” We interviewed each of these Outside Directors about the roles of Outside Directors and issues facing the company.

Q1
Please tell us about efforts that you have been
involved with in the 59th term.
Saito

As a management consultant, I have been making
professional recommendations at monthly management meetings to provide hints on how to increase
productivity and improve the performance of theirown divisions. However, since May of the 59th term,
I have been making recommendations using familiar
topics such as Twitter posts. For example, in the firstmeeting, I made a recommendation on self-restraint

during the Covid-19 pandemic. I set themes that arefamiliar not only to management but also to the general employees who read the minutes of management
meetings at a later date, and inform them of ways
to solve problems and grow as individuals and as acompany.
In common with all of us, it is a very important initiative to think all the time. Anyone can think in general,but thinking correctly is very difficult. Many people
want to lead a prosperous life and grow in the future.
Learning how to think correctly will bring them closer to achieving this goal, so I hope I can continue toshare my own thoughts, ways of expression, and way
to act.
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Interview with Outside Directors

Suzuki

Saito

Saito

I am the president of a consumer goods manufacturer, I have made recommendations from thatperspective. Among my two major suggestions, thefirst is that all decisions should be made from thecustomer's point of view. For example, in regards tothe ideal form of TRUSCO Orange Book, I wonder if
it was created with a true understanding of how end
users use it and what they want from it. Although it
is inevitable, after years of manufacturing products, I
feel that our eyes tend to end up focused on internalmatters. So I posed questions that took us back tothe basics, such as what the next fiscal year should
be like and what the next 10 years should look like.
My second recommendation focuses on the fact thatcompanies that respond to change in the daily necessities market have made remarkable progress while
many changes occurred to the external environment
due to Covid-19. As our company has a unique business model, I would like to see us pursue how we candifferentiate ourselves from our competitors in private
brand (PB) products as well. In terms of recommendations, we talk about how wholesalers and retailers
in the daily necessities industry are responding tochanges in the market. We have also asked them
what we should be as a consumer goods manufacturer, providing an agenda similar to the one I would
recommend at S.T. CORPORATION.

The impression that I get when I hear the term “postCovid” is more of a return to normalcy of somethingthat has deteriorated rather than an economic recovery. Statistics show that among publicly listed companies, the longer a company has been in business, theslower its growth rate tends to be. The longer a company has a history, the more likely it is to be boundby past successes, so we must always be thinking
about how to achieve new growth. New growth alsocomes from learning from the customer, which isdifferent from making judgments based on our own
perspective. Each and every one of us needs to havea sense of ownership and act from the customer's
point of view. Many of our employees have a growthmindset, so I would like them to link their own growth
to the growth of Japan. In addition, although we arein the wholesale business, if we change our perception to “selling value” rather than just selling products,
it will give us a chance to think about what the value
is to the end user rather than being bound by theframework of the wholesale business.

What is important in improving business performanceis that there must be products that are potentiallyneeded by customers in addition to the products wehandle in the product manufacturing process. There
are two major factors for this. The first is a form of
product development that gives shape to customer
needs. The second important factor is to develop not
only products but also services. For example, there
must be specialists in the use of a specific productand the ability to discover intangible value that solves
a problem and link it to a service rather than a tangible product.

Hagihara

At management meetings, I share what is important in running a company based on various eventsand examples with the aim of providing hints andinspiration for the revitalization, growth, and development of the company. As TRUSCO’s key phrase “No
Self-Awareness No Growth” suggests, it is important
how we develop our strengths within our businessmodel. The leap from being a good company to being a great company is achieved by leveraging past
strategies to keep the “flywheel” turning. The purposeof the flywheel is to keep the Company running at
its best with the strengths of the Company creating
further momentum. One needs to understand how
their company’s unique flywheel is built. Companies
that establish their own unique flywheels, understand80

Integrated Report 2022

Establish own unique “flywheel” and keep it running to become very strong.

the importance, and keep them running will become
very strong. Although “Turning the flywheel” is justone example, I hope that my recommendations atmanagement meetings will encourage employees
to learn from them when they learn about examples
in their day-to-day management. I would definitely
encourage the members attending the management
meetings, especially those in managerial positions
and above, to develop their management sensitivity,
so that a new generation can continue the continuityof the organisation.

Q2
What challenges does TRUSCO NAKAYAMA
face in order to continue to grow?

SuzukiPresident Nakayama has very strong leadership skills,
and I hope that each and every Director, generalmanager, and employee will take on more leadershiproles in the future. I also believe that the ideal form of
TRUSCO does not have to be limited to our businesscategory and that we should be able to propose new
initiatives from the bottom up.

Suzuki

I think it would be a good idea to have a forum for
employees to discuss medium- and long-term issues
and predictions of future environmental developments even regarding matters other than products.
For example, at S.T. CORPORATION, we approach
this using the OGISMA format (O for “objective,” G
for “goals,” I for “Issue,” S for “Strategy,” M for “measurement,” and A for “action”). Incorporating thoseelements into a single approach to move forward increation over the long term.
It is necessary for managers to discuss the recognition of issues and predictions of future changes in theenvironment as recommended through OGISMA as
well as to discuss and comment on other divisions.

Hagihara
Hagihara

If the development and spread of oral drugs proceed
and a third vaccination dose becomes standard, we
can expect economic recovery as the Covid-19 will
become controllable like the flu. As the environment
surrounding the company changes drastically, it isnecessary for all employees to set up “antennas”
to improve their ability to detect how the company
should respond.

Although TRUSCO’s business model is largely basedon basic services in the manufacturing industry, suchas how to conveniently deliver necessary items, wewill continue to add value to the current businessmodel by thinking about the value each of us canprovide to our customers while making full use of digital technology. Also, with regard to DX, it is importantto think about the value that customers really want,rather than simply improving operational efficiency.
If we change our perception to “selling value” rather than just selling products, it will give us a chance
to think about what the value is to the end user.

Integrated Report 2022

81

Q3

Hagihara

Saito

IR Activities
General Meeting of Shareholders(Unit: times)

2016

160

2017

141

2018

145

2019

130

2020

118

2021

Providing visitors with information
about Butler®
Details can befound by scanning the QR
code above.

Interviewer: Takashi Nakai, Advisor

About Advisors

82

Integrated Report 2022

After retirement age, Officers can assume leadership roles
for the purpose of providing guidance and support to those
responsible for the company, utilizing their previously accumulated knowledge and experience. Although the mandatory retirement age for our executives is 65, Advisors they can remain
employed until the age of 70 if they so desire.

A meeting streamed using an online
tool (second quarter of FY2021).

Individual meetings held online(Minori Naito, IR Section)

TRUSCO Tokyo Head Office TourStarted in 2015

Visits to various departments and disaster countermeasure facilities.
· A total of 621 applications werereceived from which 88 people wereselected via lottery to participate(2019).

Corporate Data

I believe that awareness will spread among thegeneral public regarding the fact that even intimes of disaster, you can get everything youneed from TRUSCO NAKAYAMA.

Started in 2011

The Nakayama
visually impaired
welfare foundation

Number of individual meetings

TRUSCO distribution facility tour
Visits of the inventory and logistics
system that can deliver a wide variety
of products and realize instant delivery.
· A total of 2,514 applications were received from which 263 people wereselected via lottery to participate(2019).

Relationships with
Stakeholders

152

We hold tours of the Tokyo Head Office and distribution centers throughout
Japan for shareholders. The meeting provides an opportunity for shareholders to get to know the executives, deepen their understanding of
TRUSCO, and communicate.
(In FY2020 and FY2021, these tours were not held due to the Covid-19
pandemic.)

Corporate
Governance

We are creating opportunities for individual consultations and communication

Study tours for shareholders

Environmental
Efforts

We will begin the earning results briefing (large meeting) at the mid-term
and final closing which will see the participation of around 100 institutional
investors and dealers each session. The earning results briefing for 2021
was held online due to the Covid-19 pandemic. We are actively holding
individual meetings with institutional investors and analysts, both in Japanand overseas via telephone and online tools.

58th Ordinary General Meeting of Shareholders in Tokyo (held on March 18, 2021)

Corporate
Governance andSocial Contributions

IR for Institutional Investors

Human Resources

We think that the origin of IR is at the General Meeting of Shareholders. We
have formulated our own clever ideas, such as holding the General Meeting of Shareholders early in the period to avoid times when other generalshareholders meetings are held. For the 58th Annual General Meeting of
Shareholders, we held the meeting with limited seating using advance registration system to prevent the spread of Covid-19. For the first time ever,
we offered online viewing of the meeting so that shareholders nationwide
could attend. Until the 58th Annual General Meeting of Shareholders, themeeting was held simultaneously at two venues, Tokyo and Osaka. However, from the 59th Annual General Meeting of Shareholders, the meeting will
be held at a single venue in Tokyo and streamed online for viewing. We willcontinue to hold the General Meeting of Shareholders in such a way that
more shareholders can attend from their homes or from distant locations.

Digital Service

While we are implementing measures to remove
PRO TOOLs restrictions, we believe that there aremany unique products among our Private Brand (PB)
products that even ordinary consumers would liketo use. For example, by developing and immediately
delivering Private Brand (PB) products that serve specifically as disaster supplies, I believe that awarenesswill spread not only among BtoB customers but also
among the general public that even in times of disaster, you can get everything you need from TRUSCO
NAKAYAMA.
In addition, I believe that new businesses and ways ofthinking can be created by creating opportunities in amore active manner to solicit ideas from young employees. I feel that by doing this on the premise that it
is okay to try even if it fails, it will lead to a more active
approach.

TRUSCO distribution facility tour (2019)

Sales

SuzukiOur mission is to contribute to society through our corporate activities
and to realize the happiness of the people with whom we are connected (TRUSCO's Statement of Purpose).
We call our employees and their families, business partners, shareholders, people involved in manufacturing in Japan, and all other stakeholders related to our company “people with whom we are connected.”
We will continue to value our connections with people who are related
to us through a high level of transparency in management, thoroughinformation disclosure, and communication with the community andsociety through sponsorship and advertising.

Distribution

I have two different ideas on this. One is not tochange our business model itself but to evolve its
content. I believe that our business style as a wholesaler will remain unchanged in the future. However,
we can strengthen our existing business model bychanging the customers to whom we provide products or by further enhancing the added value of ourPrivate Brand (PB) products. The other idea is toexpand the business domain by focusing on the business model. Since inventory and distribution are ourcompetitive strengths, I believe that by overwhelmingly strengthening our own product development capabilities we will be able to offer a fee-based business inwhich we consult with various companies and receive
compensation for our services ( sale of knowledge).
I believe that it is only when we are able to interview
our clients and understand what kind of issues they
are facing, rather than using our “intuition and experience” that has been cultivated over many years, that
we can propose effective solutions.

Realizing the happiness of people with whom
we are connected

Products

What should TRUSCO’s business strategy andunique growth strategy be like for becoming thecompany that we want to be in 10 years (or 5years )?

In terms of evolving the substance of the businessmodel, it is important to dig deeper into core technologies, such as building overwhelming trust and brandpower, logistics capabilities, and product lineups. By
collaborating with our suppliers and customers, we
can further enhance our core technologies and create an organization where we, our suppliers, and ourcustomers can learn from each other and grow together. How to create new business with our existing
business model is important.

Value Creation Management
PolicyS

Relationships with Stakeholders

Visitors had the opportunity tovarious sections and departmentsof the company to learn more about
TRUSCO

Integrated Report 2022

83

TV Program Sponsored by TRUSCO“TRUSCO Shirarezaru Gulliver”

Communication with the Community and Society
Started in 2017

Donations to NGO Peshawar-kai

We are supporting the Osaka-based women's
handball team “Osaka Lovvits,” which is active in
the Japanese handball league. Of the 18 athletes
on the team, 14 are TRUSCO
full-time employees.
(as of December, 2021)

Donations have been made to support the Peshawar-kai*, an NGO engaged in a comprehensive
rural reconstruction project in Afghanistan, which isexperiencing a drought, with the idea the “One irrigation channel is better than 100 medical clinics.”

We provided infection prevention products and
PB products to Kyoto University Hospital in orderto support medical personnel who are dealing
with patients infected with Covid-19.

Osaka Lovvits team members

The late Dr. Tetsu Nakamura with staff in Afghanistan

Presentation ceremony (From left to right: Professor Omori,
Hospital Director Mr. Miyamoto, and President Nakayama)

TRUSCO Shonan Ohashi
BridgeSupport as an official sponsorof the Japan Para-Sports AssoStarted in 2015
ciation (JPSA)“Skill Olympics/Abilympics”
sponsorship

TRUSCO acquired the naming rights for Shonan
Ohashi Bridge from Kanagawa Prefecture andnamed the bridge “TRUSCO Shonan Ohashi
Bridge”. It is the first time that naming rights
have ever been granted for a bridge.

Serving as an official sponsor of the Japan
Para-Sports Association (JPSA), we are striving
for the spread of para sports and support theathletes.

We support “Skill Olympics” for young technicians ages 23 and under and “Abilympics” forpeople with disabilities who bear the future on“monodzukuri.” These activities show just how
great the participants are.

Bridge connecting Chigasaki City and Hiratsuka
City in Kanagawa

Swimming competition held by the JapanesePara-Sports Association

Aichi Skill Olympics/Abilympics Opening Ceremonies (2019)

Employment of People with Disabilities

Sponsoring Pro Golfers

Sponsorship of Concerts

We aim for the independence and self-reliance ofpeople with disabilities through work experiencesand employment at our company.

We sponsor two professional golfers, Ikue Asamaand Hiroshi Ueda. Ikue Asama is employed at
TRUSCO as a professional golfer.

We have sponsored concerts organized byNarimichi Kawabata, a visually impaired violinist active in Japan and the U.K., and concerts
organized by Tomomi Nishimoto, one of Japan's
leading conductors.

Osaka Lovvits
Official Website

Program
websiteStarted in 2020

*An NGO (non-governmental organization) formed in 1983 tosupport the late Dr. Tetsu Nakamura, who was making efforts
toward the development of Pakistan and Afghanistan.

Distribution

TV Tokyo affiliates:
TV Tokyo, TV Hokkaido, TV Aichi, TV Osaka, TV
Setouchi, and TVQ Kyushu Broadcasting. The
program is broadcast every Saturday evening from6:00 to 6:30 p.m.

Provided Infection Prevention
Products to Kyoto University
2020
Hospital

Supporting the women's handball team
“Osaka Lovvits” Started in 2016

Products

The program TRUSCO Shirarezaru Gulliver is being aired by
TRUSCO to convey our desire to “bring pride and vitality to
Japan by introducing world-class Japanese companies.”
Each program introduces one Japanese company, including
manufacturing companies, and their thoughts and ideas,
designed to let people know that there are many attractive
companies in Japan.

Value Creation Management
PolicyPublic Relations Activities

The program has featured 192 companies (as of December 31, 2021)

Sales

Under the editorial policy to create a communication magazine
connecting the company and employees as well as the minds
between employees, the newsletter has continued to spell thehistory of employees since 1969. The book is full of information with about 200 employees appearing in each volume.
“Wakatake”
Published from 1969 to 1990
“Hand Made” Published from 1990 to the present

Based on the theme of “GAMBARE!! JAPANESE MONODZUKURI”, which is our corporate message, every year we
produce and distribute posters on topics of manufacturing
which represents Japan. A topic of focus in 2022 is the international project (ITER) to construct the thermonuclear experimental reactor that is said to output energy equivalent to 8
tons of oil from 1 gram of seawater.

()

Started in 1995

Started in 2010

Started in 2010

Human Resources“TRUSCO Gambare” Poster

Digital Service

Internal Company Newsletter “Hand Made” Started in 1969

Corporate
Governance andSocial Contributions

PosterGallery

Current edition of “HandMade”

2022 TRUSCO “Gambare” Poster“Having the power of the sun on the Earth’s surface” thermonuclear experimental reactor ITER

As of December 31, 2021, 67 people with disabilities were hired (employment rate of people with disabilities: 2.82% (statutory employment rate: 2.2%)).

Relationships with
Stakeholders

Our efforts as a company have been introduced in various media including TV programs. The number of interviews that
TRUSCO has participated in has tripled to 54 over the past 5 years. We will continue to create opportunities to make ourcompany known to various stakeholders.

Corporate
GovernanceMedia Information

Environmental
Efforts“Hand Made” predecessor“Wakatake”

The Nakayama
visually impaired
welfare foundation

Changes in Number of Interviews Participated(Number of appearances)in Over the Past 5 Years

54

18

84

2018

Integrated Report 2022

37

34

2019

2020

2021

TRUSCO representatives appear on TBS TV’s “Gacchiri Monday!!” on
May 2, 2021

Work area for people with disabilities (at a distribution center)

Ikue Asama,
professional golfer

Hiroshi Ueda,
professional golfer

Narimichi Kawabata

Corporate Data

2017

30

Tomomi Nishimoto

Integrated Report 2022

85

The Nakayama visually impaired welfare foundation
The Nakayama visually impaired welfare foundation was established in 1997 in response to
the will of “wanting to serve visually impaired people” by Kiyoko Nakayama, the mother of
Tetsuya Nakayama (President of the foundation), who was born with optic nerves damaged bya forceps delivery. It later became a public interest incorporated foundation in 2010. The basic
property shall be shares of Trusco Nakayama Corporation, and the foundation does not receive
donations or support from outside and does its own management. We continue “Giving Back
to Society” through the Nakayama visually impaired welfare foundation.

Nakayama Memorial Hall facilities leasing business
Since Nakayama Memorial Hall opened in 2007, six nonprofit organizations have been working together in conjunction to hold activities including
consultations, walking training, creating Braille translations, and events. Among these activities, there were 4,040 consultations conducted over theyear. In September 2021, construction of the New Nakayama Memorial Hall was completed to further enhance social participation activities for thevisually impaired and the blind. 11 nonprofit organizations hold activities in the New Nakayama Memorial Hall.

Spacious entranceManaging Director
Atsushi Matsumae
Director

Former Chairman of DyDo GROUP HOLDINGS INC.

Yuko Nakayama

Representative Director of NS Holdings Co., Ltd.

Rie Nakayama
Motonobu Nishimura

Physician and Assistant Head of Ear, Nose, andThroat Department, Head and Neck Surgery, Kawasaki Municipal Hospital
Chairman of Mandom Corporation

Yuki Nomura

President and Representative Director of TSP TAIYO Inc.

Junji Hada

Chairman of ELECOM Co., Ltd.

President & Chief Executive Officer of Earth Corporation

Naotaro Hikida

Kohei Goto

Chairman of SANKO Co., Ltd.

Teruo Hashimoto

Kunio Yamada
Yoshiaki Yamamoto

Auditor, OM Kobe Co., Ltd.

Kenji Furuhashi

Chairman of Nippon Lighthouse Welfare Center for
The Blind
President and CEO of Hosiden Corporation

President and Representative Director of Kohnan
Shoji Co.,Ltd.
Chairman of Rohto Pharmaceutical Co., Ltd.

Teiji Wakita

Masahiko Mori

President of DMG MORI CO., Ltd.

President and Representative Director of Wakita &Co., LTD.

Naoyuki Yamamoto

CEO and Chairman of Yamamoto Kogaku Co., Ltd.

Auditor
Kouhei Nomura

Attorney at Nomura & Partners

Yoritomo Wada

Certified Public Accountant at Wada & Co.

Senichi Hoshino, who passed away on January 4, 2018, served as
director from June 2017 to January 2018, and contributed to thedevelopment of the foundation.

2 Lending business for guide dogs■
We commission the training of two guide
dogs per year and lend them to thevisually impaired as “Nakayama Go” guide
dogs. As of 2021, we have loaned 43
dogs.
Guide dog lending ceremony
held during the 22nd
Nakayama Wonderful Festa

Nakayama Wonderful Festa #20(Masashi Sada, performer)

3 Personal computer course project■A prospective TRUSCO employee
attends to visitors

5 Accompanying aid workers (guide helpers) education■

Courses are divided into beginner,
Internet, Microsoft Office, iPad experience,and voice PC experience courses to teachbasic computer usage and Internet
operation.

training project
Training sessions are held six times a year with the aim of increasing
the number and improving the quality of companionship support
employees (guide helpers).

6 Barrier-free movie screening project “Nakayama UD Film Festival”■

Corporate Data

Integrated Report 2022

#16 2013 Mariko Takahashi#21 2018 Aki Yashiro#17 2014 Sayuri Ishikawa#22 2019 Tomomi Nishimoto &IlluminArt Philharmonic#18 2015 Yoshimi Tendo
Orchestra#19 2016 Masahiko Takeuchi and Kaientai
Narrated by Yoshiko Sakuma#20 2017 Masashi Sada
Note: Concerts were not held in 2020 and
2021 due to the Covid-19 pandemic.

Computer course

86

Past performers (honorifics omitted)

The Nakayama
visually impaired
welfare foundation

President of AS ONE Corporation

Tatsuya Otsuka

Former scholarship student
Kaori Tsutsui performing ina concert

Relationships with
Stakeholders

Takuji Iuchi

This is a concert that visually impaired people can attend withwheelchairs and guide dogs which allows them to enjoy the concert
free from worry. Some of our employees have participated in thisevent. Through the actual event, we have an opportunity to learn that
our company not only pursues the profit of the company but also apart of the profit is useful for social contribution.

Corporate
GovernanceManaging Director(Former TRUSCO NAKAYAMA Corporation employee)

Tomihiro Takamatsu

4 Music performance project “Nakayama Wonderful Festa”■

People Music Festival Project
A classical concert started for the purposeof providing many visually impaired people
with opportunities to perform.
(Kobe Light Center (KLC))

Environmental
Efforts

Representative Director of NR Holdings Co., Ltd.
Registered as Certified Public Accountant

President and Representative Director of Saraya Co., Ltd.

1 Hyogo Prefecture Visually Impaired■

Corporate
Governance andSocial Contributions

Saori Nakayama

Yusuke Saraya

Support activities for social participation activities for visually impaired people
People with disabilities spend every day like people without disabilities, and the foundation supports the participation of visually impaired people insociety.

Human Resources

Councilor

Utility project 3
Digital Service

Area of grounds: approx. 1,401 ㎡
Floor area: approx. 5,712 ㎡
Structure: 1 underground level, 5 floors above ground,equipped with isolation system

Sales

New Nakayama Memorial Hall (completed on September
15, 2021)

List of Officers and Board of Directors for the Nakayama visually impaired welfare foundation (listed in alphabetical order)

Senior Director

Low Vision Floor
Useful aids are provided for people
who are blind or visually-impaired.

Grant project for support groups for visually impaired people and individuals
The foundation provides grants to groups for visually impaired people and support groups in financial difficulty, and provides scholarships free ofcharge to university students and others. From FY2022, graduate students (master's degree students) will also be eligible for the scholarship.

Established

President of TRUSCO NAKAYAMA Corporation

Sunny balcony

Utility project 2

Overview
October 1, 1997
Transition to a public interest incorporated foundation was made on
November 1, 2010.
October 1, 2021 Japanese name of the Nakayama visually impaired
welfare foundation was changed. (English translation remains the same)President
Tetsuya Nakayama
Address
2-1-9 Mizuki-dori, Hyogo-ku, Kobe, Hyogo Prefecture 652-0802(3 min. walk from Shinkaichi Station)
TEL: 078-599-6140 / FAX: 078-599-6141
Support project results $7 million (cumulative total over 24 years until FY2020)

19 kW of solar power generation

Distribution

The foundation was established by the Nakayama Family with four million shares ofTrusco Nakayama Corporation stock and $4 million in cash. In addition, the Nakayama
Family donated an additional one million shares of Trusco Nakayama Corporation stockin 2021. The foundation operates its business with the dividends from the shares.
Number of Shares of Trusco Nakayama Corporation Stock Held by the Foundation
4.35 million shares (as of December 31, 2021)

Tetsuya Nakayama

Products

Guide dogs “Tenero” and “Sumo” (2021)

Managing the foundation using stock dividends

President

Utility project 1

Value Creation Management
Policy“Giving Back to Society” through the Nakayama visually impaired welfare foundation

S

Sponsored by the Nakayama visually impaired welfare foundation,
the Nakayama UD Film Festival features audio commentary andJapanese subtitles for films screened. (UD...Universal Design)

Integrated Report 2022

87

50 Shunan Branch2929-14 Oaza Kume, Shunan-shi, Yamaguchi

51 Ube Branch

5-395-5 Oaza Nakano Gaisaku, Ube-shi, Yamaguchi

52 Takamatsu Branch

4001-77 Yoshida, Utazu-cho, Ayauta-gun, Kagawa★

53 Takamatsu Stock Center

2-3-1 Asahimachi, Takamatsu-shi, Kagawa★

54 Tokushima Branch

23 Nakahara, Ojin-cho Nakahara, Tokushima-shi,
Tokushima

55 Matsuyama Branch1068-4 Kumanodai, Matsuyama-shi, Ehime

56 Kokura Branch

40

Osaka Head OfficeOsaka Branch
HC Osaka BranchInternet Sales Osaka Branch

TRUSCO Glen Check Bldg., 1-34-15, Shinmachi,
Nishi-ku, Osaka-shi, Osaka

41

Planet Osaka
South Osaka Branch81-1 Ishizu Kitamachi, Sakai-ku, Sakai-shi, Osaka

43 Kobe Branch

Nakayama Memorial Hall 5F, 2-1-9 Mizuki-dori,Hyogo-ku, Kobe, Hyogo★

7-1 Kifunemachi, Kokurakita-ku, Kitakyushu-shi, Fukuoka ★

44 Himeji Branch448-26 Hojo, Himeji-shi, Hyogo

★

★

58

Planet Kyushu
Tosu Branch

1651 Himekata-machi, Tosu-shi, Saga★

59

HC Kyushu Distribution Center
1956-1 Kitanomachinaka, Kurume-shi, Fukuoka
Kurume Stock Center

45

Planet Sanyo
Okayama Branch

4-15 Amase, Kita-ku, Okayama-shi, Okayama★

23-4 Ohashi-machi, Nagasaki-shi, Nagasaki

46 Okayama Stock Center

2-16-35 Fukunari, Minami-ku, Okayama-shi, Okayama★

61 Kumamoto Branch

5F Kumamoto Central Bldg. 66-7 Yamasaki-machi,
Chuo-ku, Kumamoto-shi, Kumamoto

47 Yonago Branch

8-15-14 Yonehara, Yonago-shi, Tottori★

48 Fukuyama Branch

2-4-13 Akebono-cho, Fukuyama-shi, Hiroshima★

49 Hiroshima Branch

1-20-1 Naka-Hiromachi, Nishi-ku, Hiroshima-shi,
Hiroshima★

★

3-68 Tokai-cho, Kagoshima-shi, Kagoshima★

64 Okinawa Branch

5F Okinawaken Kensetsu Kaikan 5-6-8 Makiminato,
Urasoe-shi, Okinawa

59

61

48

46 45
52 53

55

62

★

East Osaka Stock Center/
Higashi Osaka Branch

New HC East Japan Distribution
Center planned for construction
Location: Sanjo, Niigata Prefecture
Area of grounds: approx. 26,307 ㎡

40 36
41 39 37

35

27

9

8

29

25

1-1-34 Tanaka-machi, Toyama-shi, Toyama★

27 Kanazawa Branch

6-15-1 Eki Nishi-Honmachi, Kanazawa-shi, Ishikawa★

28 Fukui Branch

1-52 Toiya-cho, Fukui-shi, Fukui

★

23 22

20 18
21
19

33 Toyohashi Stock Center

Bangkok

34 Yokkaichi Branch209-1 Sode-cho, Naka-ku, Hamamatsu-shi, Shizuoka(

13

Number of companies that have introduced MRO Stocker

329

TRUSCO NAKAYAMA CORPORATION (THAILAND) LIMITED
PT. TRUSCO NAKAYAMA INDONESIA
Supplier business development office locations:
Germany, Taiwan (to be established by the end of 2022), Thailand

Number of items in inventory

Total number of items in inventory)

Inventory Value

3-3-24 Horiwari, Kamisu-shi, Ibaraki★

1

Planet Hokkaido
Sapporo Branch

3-4-51 Higashi-Naebo 5-jo, Higashi-ku,
Sapporo-shi, Hokkaido★

14 Utsunomiya Stock Center

2-40-3 Shirasagi, Kaminokawamachi,
Kawachi-gun, Tochigi★

2Hachinohe Branch

1-2-9 Numadate, Hachinohe-shi, Aomori★

1-6-33 Awanomiya, Oyama-shi, Tochigi★

988-7 Akagi, Shinmeiuchi, Satte-shi, Saitama★

15 Oyama Stock Center

12-26 Ukishima-cho, Mizuho-ku, Nagoya-shi, Aichi★

16

10-1 Kawahigashi, Wada-cho, Konan-shi, Aichi★

Omiya Branch
17
Omiya Stock Center

33-16 Akemicho, Toyohashi-shi, Aichi★
★

5-4-13 Shinsho, Yokkaichi-shi, Mie

Taiwan office(Scheduled to open
at the end of 2022)

Thailand office318◀ OPEN

2039 Nishi-Asuma, Nishi-ku, Saitama-shi, Saitama★

241-1 Kamihongo, Matsudo-shi, Chiba★

1969-17 Yawatakaigan-dori, Ichihara-shi, Chiba★

Tokyo Head Office
Tokyo Branch
TRUSCO Fiorito Bldg.4-28-1, Shimbashi,
20 HC Tokyo Branch
Minato-ku, Tokyo
Internet Sales Tokyo Branch
MRO Supply Tokyo Branch★

21 Keihin Branch

2-14-23 Kugahara, Ota-ku, Tokyo★

22 Tokyo Backup Center

3-10-6 Tamachi, Kawasaki-ku, Kawasaki- shi, Kanagawa ★

Planet South Kanto
Atsugi Branch

1567-1 Takamori, Isehara-shi, Kanagawa★

24 Fuji Branch251-1 Jubee, Fuji-shi, Shizuoka★

25 Shizuoka Branch

1-20 Midorigaoka-cho, Suruga-ku, Shizuoka-shi,
Shizuoka★

OPEN ▶

2-1-23 Ogimachi, Miyagino-ku, Sendai-shi, Miyagi ★

4

Akita Branch

2-41 Sanno-Rinkaimachi, Akita-shi, Akita★

5

Koriyama Branch

1-23-7 Motomachi, Koriyama-shi, Fukushima★

6

Mito Branch

1567 Sugaya, Naka-shi Ibaraki★

7

Utsunomiya Branch

46-11 Hiraide Kogyo Danchi, Utsunomiya-shi,★
Tochigi

8

Planet North Kanto
Isesaki Branch2739-1 Sanwa-cho, Isesaki-shi, Gunma★

9

HC East Japan Distribution
CenterNiigata Branch

280 Oaza Shinbo, Sanjo-shi, Niigata★

10 Niigatakita Branch

2-6-50 Yutaka, Higashi-ku, Niigata-shi, Niigata★

11 Okaya Branch

2-1-33 Shinmei-cho, Okaya-shi, Nagano★

12 Ueda Branch

2F Unno-Machi-Kan Ito Bldg. 2-8-11 Chuo,
Ueda-shi, Nagano

Corporate Data

Germany office

Planet East Kanto
Matsudo Branch

19 Chiba Branch

23

JakartaPlanet Saitama
Satte Branch

Planet Tohoku
3
Sendai Branch

The Nakayama
visually impaired
welfare foundation

Number of Bases

East Japan

13 Kashima Branch★

Indonesia

Integrated Report 2022

6

Metropolitan

18 Minami-Kubo, Oka-cho, Okazaki-shi, Aichi

Supplier business development
office (Overseas Product Division)

88

5

7

27

Relationships with
Stakeholders

Planet Nagoya
32
Komaki Branch

Thailand(includes 10 Stock Centers)

59

490,000 48,780,000 items $383 million

26 Toyama Branch

31 Nagoya Branch(Branches with inventory: 29)

Corporate
Governance2

Distribution Centers in Japan

Environmental
Efforts

Number of Bases

14

15
16
17
24

Japan Sales Branches

Overseas Branches

Central Japan

Planet Tokai
Okazaki Branch

2

5

64

30

Head Office3

Corporate
Governance andSocial Contributions

30
33

63

Overseas Subsidiaries

10

26

32
34 31

38

93

4

11
42

Bases in Japan

2

12
44
43

54

29 Hamamatsu Branch

4-12 Shinjo-nishi, Higashi-Osaka-shi,
★
Osaka

2828

49

50

758-6 Kamifukawa-cho, Nara-shi,
Nara

Human Resources

60

57

★

1

Digital Service

5851

755-6 Kamifukawa-cho, Nara-shi,Nara

HC West Japan Distribution
Center38 Nara Stock Center

Location where constructionof Planet Aichi is planned
Location: Nagoya, Aichi
Prefecture
Area of grounds: approx.
41,636 ㎡

47
56

★

Sales

1-3-28 Mukaibara-Higashi, Oita-shi, Oita

63 Kagoshima Branch

3F Trusco Crystal Bldg. 593
Higashi-Shiokoji-cho, Shimogyo-ku,
Kyoto-shi, Kyoto

39

60 Nagasaki Branch

62 Oita Branch

36 Kyoto Branch

37

West Japan★

★

Distribution

2-4-14 Takeshita, Hakata-ku, Fukuoka-shi, Fukuoka

1140-3 Oguchi, Ryuo-cho,Gamou-gun, Shiga

Ryuo Branch

Products★

Hakata Stock Center
Fukuoka Branch

35 Planet Shiga★

1-3-5 Nakamachi, Minatojima, Chuo-ku, Kobe-shi, Hyogo ★

57

Kinki

★

42 Planet Kobe

Value Creation Management
PolicyMap of Bases As of January 1, 2022

★ Indicates a company-owned property.

Integrated Report 2022

93

Logistic Centers❶Area of Grounds ❷Floor Area ❸Start of Operations (Current Building) ❹Number of Employees❺Number of Items in Inventory ❻Total Number of Items in Inventory ❼Inventory Value (as of December 31, 2021)

Planet Saitama

Planet Hokkaido

Head Office
Planet Kobe

Automated bucket warehouse
SAS GAS I-Pack® Just fit BOX

Automated bucket warehouse Electric moving pallet racks
SAS GAS Just fit BOX
Chuo-ku, Kobe City, Hyogo❶Area of Grounds ❷Floor Area ❸Start of Operations (Current Building) ❹Number of Employees❺Number of Items in Inventory ❻Total Number of Items in Inventory ❼Inventory Value

Employee Dormitory

Tokyo Head Office (TRUSCO Fiorito Bldg.)

Osaka Head Office (TRUSCO Glen Check Bldg.)

Keihin Branch

Future Osaka Head Office (TRUSCO Central Bldg.)

Ota-ku, Tokyo

Fukui City

Fuji City, Shizuoka

Automated bucket warehouse AutoStore Automated pallet warehouse Butler®
Electric moving pallet racks AGV SAS GAS I-Pack® Just fit BOX
Palletizing Robots AMR
Satte City, Saitama❶approx. 13,669 ㎡ ❷approx. 20,479 ㎡ ❸2015❹185 ❺346,000 different products ❻3,730,000 items ❼$37.0 million❶approx. 8,287 ㎡ ❷approx. 16,687 ㎡ ❸2005❹113 ❺184,000 different products ❻2,409,000 items ❼$17.2 million

HC West Japan Distribution Center

Planet Tohoku

TRUSCO'S Kugahara

The Jonan Branch and Kawasaki Branch were combined to create the
Keihin Branch (name used from January 1, 2022).

❶approx. 2,119 ㎡ ❷approx. 1,996 ㎡ ❸2007 ❹10❺14,000 different products ❻160,000 items ❼$0.9 million❶approx. 3,249 ㎡ ❷approx. 1,828 ㎡ ❸2017 ❹15❺18,000 different products ❻159,000 items ❼$0.9 million

Chuo-ku, Osaka City

❶approx. 1,034 ㎡ ❷approx. 10,413 ㎡❸New Osaka Head Office is scheduled to be opened in 2024

Planet Kyushu(Third and Fourth Floors of the
Keihin Branch building)❶approx. 1,338 ㎡❷approx. 2,667 ㎡ (24 rooms)❸2004 ❹19

Shizuoka Branch

Himeji Branch

Fukuyama BranchDistribution❶approx. 23,375 ㎡ ❷approx. 5,507 ㎡ ❸2004❹34 ❺49,000 different products ❻772,000 items ❼$5.3 million

Sakai City, Osaka

Fuji Branch❶approx. 1,338 ㎡ ❷approx. 2,667 ㎡ ❸2004 ❹29

Ota-ku, Tokyo

Sapporo City, Hokkaido

Fukui Branch

Products

Planet Osaka

Value Creation Management
PolicyMain Business Locations All company-owned properties

Sales❶approx. 47,262 ㎡ ❷approx. 42,694 ㎡ ❸2018❹183 ❺467,000 different products ❻5,692,000 items ❼$54.2 million

Planet North Kanto

Automated pallet warehouse AutoStore Just fit BOX

Isesaki City, Gunma

Planet East Kanto❶approx. 11,328 ㎡ ❷approx. 22,690 ㎡ ❸2015❹78 ❺194,000 different products ❻2,697,000 items ❼$21.9 million

Planet Sanyo

HCEast Japan Distribution Center

Planet Nagoya❶approx. 15,041 ㎡ ❷approx. 28,400 ㎡ ❸2010❹70 ❺143,000 different products ❻2,164,000 items❼$16.3 million

Planet South Kanto

Sanjo City, Niigata❶approx. 8,618 ㎡ ❷approx. 9,771 ㎡❸1994 ❹93 ❺25,000 different products❻1,373,000 items ❼$7.0 million

Tokyo Backup Center

HC Kyushu Distribution Center and❶approx. 714 ㎡ ❷approx. 5,818 ㎡ ❸2014❹240❶approx. 12,105 ㎡ ❷approx. 26,062 ㎡ ❸2020❹127 ❺156,000 different products ❻2,291,000 items ❼$16.7 million

Planet Tokai

Planet Shiga

Hachinohe Branch

Kawasaki City, Kanagawa

Kurume City, Fukuoka

Higashi-Osaka City, Osaka❶approx. 3,031 ㎡ ❷approx. 10,694 ㎡❸2013 ❹44 ❺93,000 different products❻1,201,000 items ❼$8.3 million❶approx. 2,509 ㎡ ❷approx. 5,004 ㎡❸2009 ❹17 ❺79,000 different products❻1,063,000 items ❼$15.4 million❶approx. 5,560 ㎡ ❷approx. 5,933 ㎡❸2016/2002 ❹53 ❺15,000 different products❻1,088,000 items ❼$4.6 million❶approx. 3,024 ㎡ ❷approx. 8,558 ㎡❸2008/2016/2017 ❺9,000 different products❻609,000 items ❼$6.0 million

Oyama Stock Center

Utsunomiya Stock Center

Omiya Stock Center

Toyohashi Stock Center

Oyama City, Tochigi

Nara Stock Center❶approx. 13,666 ㎡ ❷approx. 24,003 ㎡ ❸2008❹163 ❺335,000 different products ❻3,741,000 items ❼$37.4 million
89

Integrated Report 2022

Automated bucket warehouse
Electric moving pallet racks

Nara City
Ryuo, Shiga❶approx. 11,576 ㎡ ❷approx. 19,593 ㎡ ❸2008❹88 ❺214,000 different products ❻2,231,000 items ❼$16.4 million❶approx. 9,798 ㎡ ❷approx. 2,866 ㎡❸2017 ❺46 ❻2,000 items❼$0.5 million

Okayama Stock Center

Minami-ku, Okayama City

❶approx. 1,685 ㎡ ❷approx. 2,274 ㎡❸2017 ❺464 ❻51,000 items❼$1.1 million❶approx. 148 ㎡❷approx. 723 ㎡ (21 rooms)❸2021 ❹17

Saitama City, Saitama❶approx. 1,652 ㎡ ❷approx. 1,371 ㎡❸2021 ❺146 ❻21,000 items❼$0.5 million

Akita Branch

Koriyama Branch

Takamatsu Stock Center

Takamatsu City, Kagawa❶approx. 8,413 ㎡ ❷approx. 5,864 ㎡❸2019 ❺1,000 different products❻886,000 items ❼$7.2 million

Hachinohe City, Aomori

Akita City

Koriyama City, Fukushima❶approx. 1,983 ㎡ ❷approx. 1,001 ㎡ ❸2000 ❹15❺11,000 different products ❻120,000 items ❼$0.8 million❶approx. 6,614 ㎡ ❷approx. 2,191 ㎡ ❸2007 ❹11❺9,000 different products ❻105,000 items ❼$0.9 million❶approx. 3,626 ㎡ ❷approx. 2,730 ㎡ ❸2016 ❹20❺16,000 different products ❻274,000 items ❼$1.5 million

Kashima Branch

Utsunomiya Branch

Chiba Branch

Toyohashi City, Aichi❶approx. 9,900 ㎡ ❷approx. 6,856 ㎡❸2019 ❺2,000 different products❻1,594,000 items ❼$5.6 million

Hakata Stock Center

Hakata-ku, Fukuoka City

❶approx. 3,867 ㎡ ❷approx. 7,609 ㎡❸2016/2002 ❺1,000 different products❻596,000 items ❼$2.5 million

Matsuyama Branch

Kokura Branch

Kamisu City, Ibaraki

Utsunomiya City, Tochigi

Ichihara City, Chiba❶approx. 2,000 ㎡ ❷approx. 2,290 ㎡ ❸2016 ❹10❺19,000 different products ❻132,000 items ❼$1.1 million❶approx. 3,312 ㎡ ❷approx. 1,474 ㎡ ❸2009 ❹13❺12,000 different products ❻239,000 items ❼$0.9 million❶approx. 2,254 ㎡ ❷approx. 2,717 ㎡ ❸2011 ❹22❺23,000 different products ❻285,000 items ❼$2.2 million

Niigatakita Branch

Toyama Branch

Kanazawa Branch

Nishi-ku, Hiroshima City

Matsuyama City, Ehime

Kokurakita-ku, Kitakyushu City, Fukuoka❶approx. 2,578 ㎡ ❷approx. 4,373 ㎡ ❸2012 ❹16❺24,000 different products ❻256,000 items ❼$1.6 million❶approx. 1,692 ㎡ ❷approx. 998 ㎡ ❸2000 ❹12❺13,000 different products ❻107,000 items ❼$0.7 million❶approx. 2,201 ㎡ ❷approx. 2,036 ㎡ ❸2004 ❹17❺14,000 different products ❻168,000 items ❼$0.9 million

Oita Branch

Nagoya Branch

Yokkaichi Branch

Oita City

Mizuho-ku, Nagoya City, Aichi

Yokkaichi City, Mie❶approx. 2,545 ㎡ ❷approx. 2,433 ㎡ ❸2017 ❹12❺14,000 different products ❻164,000 items ❼$1.0 million❶approx. 1,824 ㎡ ❷approx. 3,123 ㎡ ❸1998 ❹29❶approx. 1,292 ㎡ ❷approx. 2,323 ㎡ ❸1990 ❹20❺15,000 different products ❻169,000 items ❼$0.9 million

Kyoto Branch

Takamatsu Branch

Kagoshima Branch

Shimogyo-ku, Kyoto City

Utazu Town, Kagawa

Kagoshima City

❶approx. 360 ㎡ ❷approx. 2,707 ㎡ ❸2009 ❹17❶approx. 2,631 ㎡ ❷approx. 2,885 ㎡ ❸1992 ❹16❺12,000 different products ❻121,000 items ❼$0.8 million❶approx. 991 ㎡ ❷approx. 1,120 ㎡ ❸1989 ❹10❺7,000 different products ❻53,000 items ❼$0.3 million

Company-owned Recreation/Training Facility
TRUSCO Resort and Spa Hakone

TRUSCO Resort and Spa Karuizawa

Kyoto Kaguraoka Rengetsuso

Higashi-ku, Niigata City

Toyama City

Kanazawa City, Ishikawa

Hakone Town, Ashigarashimogun,
Kanagawa

Town of Karuizawa,
Kitasaku-gun, Nagano

Sakyo-ku, Kyoto❶approx. 1,890 ㎡ ❷approx. 1,057 ㎡ ❸2009 ❹11❺13,000 different products ❻160,000 items ❼$0.9 million❶approx. 1,633 ㎡ ❷approx. 2,000 ㎡ ❸1991 ❹13❺13,000 different products ❻145,000 items ❼$0.9 million❶approx. 2,429 ㎡ ❷approx. 2,469 ㎡ ❸2004 ❹17❺26,000 different products ❻320,000 items ❼$2.0 million❶approx. 9,084 ㎡ ❷approx. 2,307 ㎡ ❸2011 ❹3❶approx. 10,621 ㎡ ❷approx. 1,983 ㎡ ❸2021 ❹3❶approx. 1,758 ㎡ ❷approx. 1,603 ㎡ ❸2018 ❹3

Corporate Data

Automated bucket warehouse Electric moving pallet racks
SAS GAS I-Pack® Just fit BOX
Okazaki City, Aichi❶approx. 1,877 ㎡ ❷approx. 872 ㎡❸2019 ❺29 different products❻43,000 items ❼$0.4 million❶approx. 376 ㎡❷approx. 1,973 ㎡ (36 rooms)❸2002 ❹30

Hiroshima Branch

The Nakayama
visually impaired
welfare foundation❶approx. 4,690 ㎡ ❷approx. 3,166 ㎡❸2019 ❺1,000 different products❻147,000 items ❼$3.1 million❶approx. 165 ㎡❷approx. 1,401 ㎡ (30 rooms)❸2014 ❹23

Kurume Stock Center

Kita-ku, Okayama City

Kaminokawamachi,
Kawachi-gun, Tochigi

TRUSCO’S Ayase

Relationships with
Stakeholders❶approx. 14,680 ㎡ ❷approx. 23,735 ㎡ ❸2006❹178 ❺357,000 different products ❻3,451,000 items ❼$29.3 million

TRUSCO’S Osaka

Corporate
Governance

Automated bucket warehouse AutoStore Electric moving pallet racks
DAS Shuttle racks
Isehara City, Kanagawa❶approx. 948 ㎡ ❷approx. 8,426 ㎡ ❸2004❹166

TRUSCO’S Shinbashi❶approx. 2,604 ㎡ ❷approx. 2,386 ㎡ ❸2009 ❹10❺11,000 different products ❻194,000 items ❼$0.8 million*The currently held land and building will be transferred to a third party
by December 28, 2024 for the relocation of the Osaka head office.

BranchElectric moving pallet racks

Automated bucket warehouse Automated pallet warehouse
Electric moving pallet racks SAS GASJust fit BOX
Matsudo City, Chiba

Nishi-ku, Osaka City

Adachi-ku, Tokyo❶approx. 2,638 ㎡ ❷approx. 2,406 ㎡ ❸2011 ❹15❺19,000 different products ❻219,000 items ❼$1.4 million

Environmental
Efforts

Konan City, Aichi❶approx. 5,626 ㎡ ❷approx. 8,122 ㎡❸1998 ❹41 ❺61,000 different products❻752,000 items ❼$5.2 million

East Osaka Stock Center

Minato-ku, Tokyo

Higashi-Osaka City,
Osaka❶approx. 2,085 ㎡ ❷approx. 1,795 ㎡ ❸2012 ❹16❺15,000 different products ❻144,000 items ❼$0.9 million

Corporate
Governance andSocial Contributions❶approx. 33,057 ㎡ ❷approx. 25,438 ㎡ ❸2007❹97 ❺160,000 different products ❻2,764,000 items ❼$20.6 million❶approx. 9,900 ㎡ ❷approx. 10,016 ㎡ ❸1992❹67 ❺26,000 different products ❻1,834,000 items ❼$12.4 million

Minato-ku, Tokyo

Fukuyama City, Hiroshima

Human Resources

Automated bucket warehouse
AutoStore SAS GAS Butler®
I-Pack® Just fit BOX
Miyagino Ku, Sendai City

Tosu City, Saga

Himeji City, Hyogo

Digital Service

Nara City

Suruga-ku, Shizuoka City

Only some are corporate-owned properties.
Integrated Report 2022

92

A Glance at TRUSCO Through Numbers(as of December 31, 2021)
The year-on-year comparison is shown in the parentheses.

59th Term (2021 12th term) Business Performance
Sales Consolidated
Gross profit margin Consolidated

Selling, general andConsolidated
administrative expenses

million( +7.5 % )%( -0.5 pt )million(+1.4 % )$62

Depreciation Consolidated

million( +5.6 % )%million%million%Attributable to shareholders
Consolidated

499,964 +57,528
Inventory items
48,787,614 +2,832,108
Inventory Value$384 million +$9
TRUSCO Orange Book.Com
2,760,887 +423,667
Number of items listed
Number of Items
Private Brand (PB)
79,500 +11,800
Sales$390 million +5.2
Number of listed
1,948 +97
TRUSCO Orange Book
manufacturers
Number of items
508,000 +37,000
companies

Tokyo Head Office (TRUSCO Fiorito Bldg.)

Ratio

Delivery lead time

Note: Personnel with supervisory qualifications or higher

Male 43.2
Female 32.8

39.6

Retirement age

Managerial retirement age 62
Employment extension
70

Average salary

Full-time staff retirement age 65
Part-time staff

Shiori Soya, Overseas Procurement Section

75

Sales

including branch managers, center
Managers Managers
managers, and Head Office section managers $100.6 ($108.1)
Department general managers and division
general managers (does not include officers) $131.3 ($142.9)$55.4 Careers (regular positions)$58.8

Number of employees with disabilities andemployment rate of persons with disabilities

67
2.82

People%Non-smoking rate for managers(included managerial candidates)

100.0

%

Non-smoking rate for the entire company 86.0 %Left to Right: Shintaro Hashiguchi, Chief of boththe Distribution Platform Development Office and
P Aichi Preparation Office, and Risa Okamoto

Sales
Japan

94

Integrated Report 2022

months (normally 3 months)

AutoStore (high-precision robot-basedstorage system)

85.3 +1.4
Automated estimate ratio
18.2 +10.1
Number of order receipts
130,000 daily 32.46 million per year
Number of estimates
30,000 daily 8.23 million per year
provided to customers
Digital Expenditures (most recent three periods)$46 million
14,406
Trusco power generation installations
19(As of the end of the 59th term)

%

pt

%

pt

(Started in January 2020)

Number of attendees of the 58th Ordinary
General Meeting of Shareholders
Attendance rate for the 58th Ordinary
General Meeting of Shareholders(Solar and wind power generation)

TRUSCO Data Center “Solemale”

324
2.0 %

Power generation for 2021 2,604,757 kWh

16.5 %
Scope1 1,941.4 t-CO Scope2 7,154.2 t-CO
$30 million

Renewable energy power self-sufficiency rate
Amount of CO2 emissions
MRO Stocker, which is like “Okigusuri,”a business model that has been around formany years in Japan, but for tools.

Corporate tax

*1

*2

2

2

*1 Direct emissions from fuel used by the Company *2 Indirect emissions resulting from energy supplied by another company

Corporate Data

5,527 +12
Number of customers
Sales accounts 29,561 +2,011
MRO Stocker
Number introduced
329 +282
Number of companies connected
2,042 +675
to orange commerce

units

Digital Service

Number of shareholders

Companies

Planet Saitama Distribution Centerpt

The Nakayama
visually impaired
welfare foundation

Number of
Branchessales branches with inventory

59
29 Overseas 5

More than for

ESG(as of January 1, 2022)
Overseas subsidiary: TRUSCO NAKAYAMA CORPORATION (THAILAND) LIMITED
PT. TRUSCO NAKAYAMA INDONESIA
Offices: Germany, Taiwan (scheduled for opening at the end of 2022)
Thailand, and USA%

20 hrs. 06 min. 53 sec.
2,836,392 units +1,173,239
3,396,286 +677,072
6

System order intake ratio- The annual salary including financial bonds (annual payment severance) is shown in the parentheses.

42.1 +1.4

Relationships with
Stakeholders(Statutory employment rate based hires: 55,
employment rate of people with disabilities: 2.2%)$65.2 ($69.5)$53.6 ($57.0)$41.0 ($42.8)

Percentageof TRUSCO
delivery runs

Corporate
Governance(Unit: thousand USD)

Area (regional positions)
Logistics (distribution positions)

Number of packages delivered
via direct delivery service
Number of orders of direct
delivery service
Inventory of materials to support
recovery during a disaster+8 vehicles
vehicles +7 vehicles
vehicles+0.3 pt

Environmental
Efforts

Average age

278
117

%

Corporate
Governance andSocial Contributions

10
1,632
1,264
Number of officers * 152
Number of supervisors
9

Officers
Full-time staff
Part-time Staff

Number of total
delivery runs
Number of TRUSCO
delivery routes

91.3

Human Resources

TRUSCO
deliveryroutesRatio of products delivered from our company
stock among our total number of orders.

㎡㎡

approx.

Digital Service

Female staff ratio

17

approx.

Human Resources571
35.0 %

Sales

Logistic centers

27 Stock centers 10
Logistic centers352,604
Floor areas of distribution
approx. 404,707 ㎡ Branches withcenters in Japan
52,102inventory
Number of distribution bases

Inventory hit rate

Number of full-time staff

TRUSCO Orange Book and
TRUSCO Orange Book.Com

Distribution

million2,906

Private Brand Products%%

Employees

Japan 2,662 companies

Overseas 304 companies

Number of items
in inventory
Total number of
items in inventory

per share(as of December 31, 2021)+314

companies

Distribution

Consolidated

millioncompanies

million(+17.0 )$116
Ordinary Income(+17.4 )$122(+44.9 )Net Income$104
Annual dividend$0.31 ( +$0.04 )Market capitalization
R&I Rating$1,624
Shareholders’ equity ratio
A
64.0
Operating income

2,966

Total Number of suppliers

Products$2,06621.0$318

Products

Value Creation Management
PolicyWe express our company's performance through various figures, including business performance during the 59th term andkey indicators. (See p. 96 for details on business performance)

Solar power generation equipment at Planet South Kanto
Power Generation Capacity: 300 kW
Number of Solar Panels: 1,190

Integrated Report 2022

95

Results Data (Operating Results Indicators) (as of December 31, 2021)

Results Data (Sales Information) (as of December 31, 2021)
Number of Companies

Sales/Gross profit margin

Ordinary Income/Ordinary Income Ratio

Sales

Gross profit margin$2,065 million 21.0%
Sales (Million USD)
Gross Profit Margin (%)

20.4

1,030
20.9

21.5 21.7

1,929 1,987 1,922 2,065

21.2 21.2 21.3 21.5 21.0

2,193

Ordinary Income Ratio$121 million 5.9%

Ordinary Income Ratio (%)

Number of Sales Accounts

22,375129 130 131 127
121 131118
103
7.5 6.8
6.9 7.4
6.4
5.9 6.0
7.9 8.2
75
90
5.4

Ordinary Income(Million USD)

21.2

25,466
23,68327,14026,327

26,881
26,1685,415 5,447 5,415 5,348

5,515 5,527
5,323

Profit margin

89

104

90

87

86

89

72

48 4.9 5.6 5.2
4.5 4.4 3.8 5.1 4.1
4.8
4.1

Nonconsolidated

Private Brand (PB) Goods Sales (Constitution
Ratio)/Number of Products
PB Product Sales

2014/3 2014/12 2015

2016

2017

2018

9-monthfinancial results

2019

2020

2021 (year)

Consolidated
Accounting Started

Dividends

Dividend payout ratio$0.31 20.2%

Dividends (in USD)

0.34
0.28 (0.68) 0.35 0.33 0.32

2014/3 2014/12 2015 2016 2017 2018 2019 2020 2021 2022 (year)

2014/3 2014/12 2015 2016 2017 2018 2019 2020 2021 2022 (year)(0.56)
0.27
25.3 25.1 25.0
25.2 25.3
25.1
0.20 0.18 25.0 25.2
(0.40) (0.37)*(planned)

0.31 0.34
20.2

9-monthfinancial results(planned)

Consolidated
Accounting Started

Total Fixed Assets$963 million(Unit: million USD)

Total fixed assets(planned)

945

956

963

822
698
466

492

515

432

452

470

2014

2014

2015

9-monthfinancial results

Stock Hit Rate (%)
Number of items in inventory(10,000 items)

72.7 23.1
2014/3

2016

2017

2018

2019
Consolidated
Accounting Started

2020

2021 (year)

2021

2020

(year)

System order intake ratio (%)

Number of items in inventory

Stock Hit Rate System order intake ratio

499,000 items

91.3% 85.3%
91.5

88.8
88.2
82.0
79.9
26.4
29.8

89.5
82.0

89.9
81.7

90.5
83.1

91.0
83.9

91.3
85.3

33.6

37.4

39.2

44.2

49.9

55.0

2015

2017

2018

2019

2020

2021

2022

2016

87.0

(year)

Consolidated
Accounting Started

182 (0.16) 196 (0.24) 225 (0.45) 261 (0.28) 286 (0.36) 333 (0.35) 393 (0.37) 374 (0.45)

412

394

Total Sales Indicators of Competitors in the Same Sector and Trusco Nakayama Net Sales Indicators*2008 is set as 100 for the base when the Lehman Shock hit (figures are calculated based on results and forecasts as of April 30, 2020)
Calculated by combining the sales of six companies in the same industry (wholesale industry). (from Annual Securities Report)
Total Sales Indicators ofCompetitors in the Same Sector (%)

100.0 88.4
2008

88.9

2009

73.8
63.6
2010

123.9

131.7

101.1

104.3

104.8

2014/12

2015

2016

TRUSCO NAKAYAMA Net Sales Indicators (%)

96.6

85.9
79.1 88.6
2011

2012

98.4

108.5

88.3

95.8

2013

2014/3

116.3

145.1
113.0

159.4

2017

2018

164.1

158.7

113.2

101.4

120.0

9-monthfinancial results

2019

2020

Consolidated
Accounting Started

Item and sales destination business expansion with small decline in sales distributes risk even in a bad economic environment and results in reliably increasing market share.

517

610

883

2014/1279

Approximately 4% of net sales are made up of net sales of products newly handled that year.

9-monthfinancial results**Index standard: 100 in 2015
Industrial Production Indexes are figures that were**The
released by the Ministry of Economy, Trade and Industry
on January 31, 2022.

864

86.8
77.9

84.0
21.2

*Inventory Hit Rate: Ratio of products
delivered from our company stock
divided by our total number of orders.

Company Net Sales Indicators andIndustrial Production Index

838

2019

1,986

Consolidated
Accounting Started

Changes in Number of Different Inventory Items,
Stock Hit Rate, and System Order Intake Ratio

We are expanding our inventory
items with focus on long tailproducts and strengthening prompt
delivery systems to customers.

2018(planned)

571
709

2017

2022 (year)74

Due to inventory expansion, our factory route andeBusiness route sales have grown and shown morefavorable trends than even the Industrial Production
Index, which indicates the state of industry andmanufacturing activities.

TRUSCO NAKAYAMA Net Sales Indicators

100.0
2015

106.3

117.1

128.7

103.1

2016

2017

128.1

137.7

Industrial Production Index

104.2

100.0

132.5

2018

101.1
2019

90.9

95.2

2020

2021

Corporate Data

Integrated Report 2022

Consolidated
Accounting Started

2021

1,847

The Nakayama
visually impaired
welfare foundation

9-monthfinancial results

96

Total Fixed Assets

Tangible fixed assets

2014/3 2014/12 2015 2016 2017 2018 2019 2020 2021 2022 (year)

2020*The method of counting the number of connected companies was changed in 2021.

Inventory Value (Disposal Value) [Million USD]

Short-term
DebtLong-term $153 million Long-term
Debta
Debt
$135 million$90 million

177
154 35 Digital Service
129 31
31 Facilities
Capital Expenditures (by year)
17(Million USD)
Land and Buildings
35
15
72
72 78 6 73
9
4 6
54 5
35
110
3 96
40
86
31
3
53 65
1 4 58545
32
27 0.928 6
13

2019

75

1,911

Relationships with
Stakeholders$78 million

2018

91

2,065

1,922

Corporate
GovernanceLong-term
Debt$90 million

Capital Expenditures2017

86 1,837
1,670

1,367

25.2

*Dividends prior FY2016 were calculated based on number of shares after the stock
split where one share was split into two shares on January 1, 2017.
Figures in parenthesis denote the actual dividend amount paid.

Capital Expenditures

2016

1,263

1,101

1,987

1,929

1,756

Environmental
Efforts

Dividend payout ratio (%)

Consolidated
Accounting Started

860

Nonconsolidated

Dividends/Dividend Payout Ratio

419
19.4 20.0 20.6 20.9 20.6 391 394 372 390 19.1
Number of PB Products
254 (Unit: ten thousand)309 333 361 20.3 19.9 19.4 19.0
9.0
7.9
205
6.7
5.6 5.9
5.0
4.5
3.5 3.8 4.1
9-monthfinancial results

839$79 million

Existing Goods Net Sales, etc. (unit: million USD)

Corporate
Governance andSocial Contributions

PB Sales Constitution Ratio (%)

2,042

Number of Companies Connected (companies)

Newly Listed Product Sales

Net Sales of New TRUSCO Orange
Book Products (unit: million USD)

2,400

Consolidated
Accounting Started

PB Sales Constitution Ratio$390 million 19.0%

1,284

79.3 82.7 81.4 82.7 1,023 70.9
65.0 63.7 64.0
783 818 880 953 77.1

(planned)

Consolidated
Accounting Started

PB Product Sales (Million USD)

Change in Company Net Sales of New TRUSCO Orange Book Products

2,042 companies

Shareholders’ equity ratio

1,197
1,086 1,147(planned)

Consolidated
Accounting Started

Human Resources

2014/3 2014/12 2015 2016 2017 2018 2019 2020 2021 2022 (year)
9-monthfinancial results

9-monthfinancial results

Digital Service

53

Net assets(Million USD)

276.0

2014 to 2021 (Bankruptcies of Regular Customers Without a Security Deposit:
6 ($28,288 in unsettleable payments))$1,284 million 64.0%

Shareholders’equity ratio (%)

505.0

2014/3 2014/12 2015 2016 2017 2018 2019 2020 2021 2022 (year)(planned)

No. of companies connected

Net Worth202.1 233.7

3,220

Sales

$104 million 5.1%
73

(planned)

Consolidated
Accounting Started

Net Worth/Net Worth Ratio
Net Income

Net income (Million USD)

9-monthfinancial results

2,537
2,339 2,477

166.3
121.3 145.7

78.6 81.4 100.8

2014/3 2014/12 2015 2016 2017 2018 2019 2020 2021 2022 (year)
Consolidated
Accounting Started

2,222

2,009 2,047 2,127

5,580

Changes in Number of Companies Connected to Orange Commerce

Net Income/Profit Margin

Profit margin (%)

2014/3 2014/12 2015 2016 2017 2018 2019 2020 2021 2022 (year)(planned)

Consolidated
Accounting Started

Suppliers (companies)

2,966

Distribution

9-monthfinancial results

Available TRUSCO Orange
Book Items (unit: ten thousand):

27,5505,3339-monthfinancial results

2014/3 2014/12 2015 2016 2017 2018 2019 2020 2021 2022 (year)

2,966 companies 2,760,000 items

29,561 31,000

5,592

No. of companies

Number of items listed

Products

1,313

1,500 1,594

1,756

Ordinary Income

Suppliers

Number of Sales Accounts

5,527 companies 29,561 sales accounts*The “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29), etc. will be applied from the beginning of the 60th term, and the plan for the 60th term are the figures calculated after the application of the said accounting standard.

Value Creation Management
PolicyChanges in Number of Suppliers and Available TRUSCO Orange Book Items

Changes in Number Business Partners and Sales Accounts
Consolidated Accounting Started : Figures based on consolidated business results due to the start of consolidated accounting in 2019.

Consolidated
Accounting Started

Integrated Report 202297

9-month financial results

Operating Results

Value Creation Management
PolicyResults Data (Operating Results Over the Past 10 Years)
Consolidated Accounting Started

50th term

51st term

52nd term*

53rd term

54th term

55th term

56th term

57th term

58th term

59th term

2013/3

2014/3

2014/122015/122016/122017/122018/122019/122020/122021/1260th term
2022/12(planned)

Sales (Year on Year)[Million USD] (%)

1,191 (+1.8)

1,314 (+10.3)

1,031 (+10.1)

1,500 (+6.5)

1,595 (+6.3)

1,757 (+10.2)

1,930 (+9.8)

1,988

1,922 (−3.3)

2,066 (+7.5)

Average Daily Sales (Year on Year) (Non-consolidated parent)[Million USD] (%)

4.9 (+1.8)

5.4 (+10.3)

5.6 (+10.7)

6.2 (+6.5)

6.6 (+6.3)

7.2 (+8.8)

8.0 (+10.8)

8.4 (+5.0)

8.0 (−4.9)

8.5 (+6.9)

9.1

Gross Profit Margin (Year on Year)[Million USD] (%)

241 (+1.1)

267 (+10.9)

216 (+13.3)

322 (+9.9)345 (+7.3)

372 (+7.9)

409 (+9.9)423

413 (−2.4)

434 (+5.2)

465

[%]

20.3

20.4

20.9

21.5

21.7

21.2

21.2

21.3

21.5

21.0

21.2

Selling, general and administrative expenses (Year on Year) [Million USD] (%)

166 (+1.7)

176 (+6.2)

139 (+7.8)

205 (+10.0)

218 (+6.2)

244 (+12.0)

280 (+14.8)

299

314 (+5.0)

318 (+1.4)

337
65[Million USD]

25

28

23

33

36

42

50

55

56

61

Depreciation[Million USD]

15

15

13

20

21

24

32

43

59

62

61

Salaries and bonuses (including bonus reserve inward/outward transfers)[Million USD]

71

77

61

86

95

106

111

112

109

109

111

Selling and administration expense ratio
Operating income (Year on Year)
Operating profit ratio
Ordinary Income Ratio

13.9

13.4

13.5

13.7

13.7

13.9

14.5

15.1

16.4

15.4

15.4

75 (−0.2)

91 (+21.3)

76 (+25.0)

116 (+9.7)

127 (+9.1)

128 (+0.8)

129 (+0.6)

124

99 (−20.1)

116 (+17.0)

128

[%]

6.3

6.9

7.4

7.8

8.0

7.3

6.7

6.3

5.2

5.6

5.9

[Million USD] (%)

74 (−0.0)

90 (+21.3)

76 (+25.3)

119 (+12.0)

130 (+9.2)

131 (+1.0)

131 (+0.4)

127

104 (−18.6)

122 (+17.4)

131
6.0

6.9

7.4

7.9

8.2

7.5

6.8

6.4

5.4

5.9

53 (+23.6)

49 (+34.7)

74 (+11.9)

89 (+20.9)

91 (+2.1)

87 (−4.4)

86

72 (−16.7)

104 (+44.9)

89

[%]

3.6

4.1

4.8

4.9

5.6

5.2

4.5

4.4

3.8

5.1

4.1

Cash and deposits[Million USD]

107

130

104

128

96

93

105

165

291

373

−

Merchandise[Million USD]

182

182

196

225

261

286

333

393

374

384

394

Fixed assets[Million USD]

432

467

492

515

571

698

823

945

957

964

−

Tangible fixed assets[Million USD]

397

432

452

470

517

611

709

838

865

884

−

Intangible fixed assets[Million USD]

17

18

16

15

19

30

53

77

62

48

−

Total assets[Million USD]

901

988

990

1,082

1,153

1,327

1,533

1,766

1,881

2,009

−

Net Worth[Million USD]

741

784

819

880

953

1,024

1,086

1,148

1,197

1,285

−

[%]

82.3

79.3

82.7

81.4

82.7

77.1

70.9

65.0

63.7

64.0

−

80

62

99

135

143

−

Profit margin

Shareholders’ equity ratio

Human Resources

6.3
43 (+22.5)

Digital Service[%][Million USD] (%)

Net income (Year on Year)Sales

Ordinary income (Year on Year)[%][Million USD] (%)

Distribution

Shipping expenses and packing costs (including fees for third-party delivery companies)

Products

Gross profit margin

2,193

Note: The year-on-year change for the 52nd term was calculated by converting the 51st term into a nine-month period, and the year-on-year change for the 53rd term was calculated by converting the 52nd term into a 12-month period.

Corporate
Governance andSocial Contributions

Cash Flow[Million USD]

40

84

29

84

58

Corporate tax amount paid

[Million USD]

−35

−28

−39

−21

−52

−38

−36

−43

−38

−30

−

Cash flows from investing activities[Million USD]

−47

−49

−39

−45

−70

−149

−163

−177

−78

−41

−

Cash flows from financing activities[Million USD]

−10

−11

−15

−14

−20

66

112

131

69

−20

−

Dividend amount paid

[Million USD]

−10

−11

−15

−14

−20

−23

−22

−21

−20

−20

−

Net increase (decrease) in cash and cash equivalents[Million USD]

−17

23

−25

24

−32

−2

11

52

126

82

−

Return on assets (ROA)

[%]

8.4

9.6

7.7

11.5

11.6

10.6

9.2

7.2

5.7

6.3

−

Return on equity (ROE) *

[%]

6.0

7.0

6.2

8.7

9.8

9.3

8.3

7.5

6.1

8.4

−

[Million USD]

46

55

31

40

73

129

154

178

72

79

73

Environmental
Efforts

Cash flows from operating activities

Financial Indicators
Corporate
GovernanceCapital Expenditures*ROE concept: TRUSCO NAKAYAMA does not employ short-term strategies to increase ROE. We aim to expand profit by providing investments to ongoing growth sectors to facilitate long-term and stable growth.

[USD]

0.65

0.81

0.74

1.12

1.36

1.38

1.32

1.31

1.09

1.58

−

Book-value per share (BPS)*

[USD]

11.23

11.88

12.41

13.35

14.45

15.53

16.48

17.41

18.16

19.49

−

Annual dividend[USD]

0.33 (0.16)

0.40 (0.20)

0.37 (0.18)

0.56 (0.28)

0.68 (0.34)

0.35

0.33

0.32

0.27

0.31

0.34

[%]

25.3

25.2

25.3

25.0

25.2

25.3

25.1

25.0

25.1

20.2

25.2

1,257 (+5.3)

1,314 (+4.5)

1,418 (+8.1)

1,523 (+7.4)

1,531

1,412 (−7.8)

1,482 (+5.0)

1,547

Dividend payout ratio

The Nakayama
visually impaired
welfare foundation

Earnings per share (EPS)*

Relationships with
Stakeholders

Information by Share

*The net income per share, net assets per share, and annual dividend amounts in parentheses before the 54th term were calculated based on the number of shares after the stock split for splitting one share into two shares on January 1, 2017.
results show sales performance announcing the settlement of accounts for each term by segment. Year-on-year comparisons are made with the figures for theSales by Segment (Theprevious year which have been reclassified to correspond to the segment classifications of each period.)

1,078 (+1.6)

1,192 (+10.5)

909 (+10.1)

Sales (Year on Year) [Million USD] (%)

e-Business RouteSales (Year on Year) [Million USD] (%)

−

−

−

133 (+25.9) *1

167 (+24.9)

219 (+29.1)

276 (+26.1)

310

346 (+11.4)

402 (+16.3)

451

Home center route

Sales (Year on Year) [Million USD] (%)

98 (−1.2)

104 (+5.1)

78 (+0.2)

103 (−2.2)

108 (+4.8)

111 (+3.2)

121 (+8.6)

132

153 (+15.6)

165 (+8.1)

175

Overseas RouteSales (Year on Year) [Million USD] (%)

13 (+70.5)

17 (+26.6)

43 (+35.2)

6 (+82.5)5 (−15.2)

8 (+59.5)

8 (+5.3)

12*2

11 (−14.5)

15 (+37.9)

19

Corporate Data

Factory Route*1 e-Business Route added as a result of expanding sales since the 53rd period.
*2 Overseas Route established and business results of overseas subsidiaries included in figures due to the start of consolidated accounting in the 57th period.

98

Integrated Report 2022

Integrated Report 202299

9-month financial results

2013/3

Average Age/Salary of Staff by Course
Employees*1(persons)

2016/122019/122020/122021/12

2,293

2,571

2,727

2,796

2,786

7

9

8

8

12

12

10

1,179

1,219

1,280

1,349

1,424

1,514

1,608

1,656

1,674

1,632

Part-time employees

597

678

692

787

860

1,049

1,111

1,128

1,100

1,264

Female staff ratio

26.7

28.6

29.1

29.9

32.7

33.7

34.6

35.3

35.2

35.0

39.6

39.7

39.4

39.6

39.3

38.6

38.2

38.2

38.4

39.6

35.5

35.3

34.6

34.1

33.5

33.7

33.3

33.1

33.5

34.2

Area course

40.8

41.1

41.6

42.3

43.2

43.6

43.7

44.0

44.0

37.8

Specialist course

33.2

33.5

34.7

36.5

36.1

36.1

36.4

37.0

37.2

44.4

Support course

-

34.4

34.6

37.3

37.9

38.1

39.5

39.6

40.6

41.2

Logistics course

45.7

45.8

44.0

42.7

40.2

37.9

36.8

37.2

37.1

37.8

Staff Average*3

54.4 (57.3)

54.6 (57.6)

57.7 (60.6)

59.4 (61.6)

60.7 (63.8)

64.4 (67.6)

63.1 (66.5)

59.0 (62.3)

55.7 (59.0)

55.4 (58.8)

78.3 (83.4)

79.0 (84.1)

84.2 (89.5)

89.5 (93.6)

95.8 (101.6)

103.8 (110.1)

103.6 (110.5)

102.3 (109.9)

101.6 (109.0)

100.6 (108.1)

113.6 (123.6)

126.1 (135.3)

124.8 (135.5)

132.4 (141.3)

147.5 (158.9)

156.2 (167.7)

156.1 (169.0)

134.9 (146.0)

130.2 (141.6)

131.3 (142.9)

Career course

61.8 (65.4)

61.8 (65.4)

64.5 (68.1)

65.4 (68.1)

68.1 (71.8)

72.5 (76.3)

72.4 (76.5)

68.2 (72.4)

64.9 (69.1)

65.2 (69.5)

Area course

50.9 (53.6)

51.3 (54.8)

55.1 (57.8)

56.7 (58.9)

58.6 (61.8)

62.7 (65.8)

61.2 (64.5)

57.8 (61.2)

54.1 (57.4)

53.6 (57.0)

Specialist course

50.8 (53.1)

51.5 (53.9)

56.3 (58.8)

61.9 (64.1)

66.3 (69.6)

68.2 (71.8)

68.5 (72.4)

64.4 (68.1)

61.2 (65.1)

62.9 (67.2)

Support course-

39.7 (41.8)

42.7 (44.6)

43.8 (45.4)

44.3 (46.6)

45.2 (47.4)

46.4 (48.8)

42.5 (45.1)

40.5 (42.8)

40.6 (43.1)

Logistics course

41.7 (42.9)

41.4 (42.6)

43.8 (45.1)

48.1 (49.0)

46.7 (48.4)

48.7 (50.4)

46.8 (48.5)

44.3 (46.1)

41.5 (43.3)

41.0 (42.8)

Managers

Managers including branch managers, center
managers, and Head Office section managers
Department general managers and division
general managers (does not include officers)

43 (29)48 (32)54 (43)61 (38)67 (43)67 (48)66 (51)66 (50)67 (55)

[%]

2.1

2.3

3.3

3.2

3.2

3.1

2.9

2.9

2.9

2.82

1.41%
3.70%

0.42%
0.01%

533

3.70%

203

1.41%

Financial firms/stock brokerages

61

0.42%

Treasury stock

1

0.01%

Total

94.46%

14,406

Number of Shares Issued
Individuals, etc.

0.10%

12,852,467 19.47%
22,757,978 34.48%
12,963,593 19.64%

Financial firms/stock brokerages 17,368,599 26.31%
Treasury stock

66,1070.10%

19.64%

34.48%
49th term 50th term 51st term 52nd term 53rd term 54th term

66,008,744

2012

2011/3501
2012/3544
2013/355th term 56th term 57th term 58th term 59th term (year)
2018

2019

2017/1/1 Stock Split 1,953

TOPIX

1,404 1,454

2021

2022

(Stock Price: $24.6)(Nikkei Average: $259.3)

207.9
146.6

2014/3

2014/122015/122016/122017/122018/12

Note: The company's share price is based on the assumption that a stock split was conducted before the fiscal year ended December 2016.
(Index: 100 in April 2008)2019/122020/12

Consolidated Accounting Started

As of December 31,
2021

Women
Men

465
959

510
1,004

557
1,051

585
1,071

589
1,085

571
1,061

Total

1,424

1,514

1,608

1,656

1,674

1,632

77
33

59
67

63
72

52
57

41
46

26
25

Total

110

126

135

109

87

51
22
21

Number of New
Graduates Hired

Retirees

Turnoverrate (%)

1,721 1,665 1,722 1,623
340.3

931

708

2020

As of December 31,
2020

Women
New employees Men

Consolidated Accounting Started

9-month financial results

Integrated Report 2022

2017

As of December 31,
2019

Women
Men

66
31

46
37

58
60

46
50

37
42

Total

97

83

118

96

79

43

Women
Men

20
18

18
18

20
26

42
44

37
33

45
45

Total

38

36

46

86

70

90

Women
Men

4.1
1.8

3.4
1.8

3.5
2.4

6.7
3.9

5.9
3.0

7.3
4.1

Total

2.6

2.3

2.8

4.9

4.0

5.2

Note: Includes overseas employees on loan since 2018.

Some of the Main Reasons for Resignation in 2021
・To start a business as an architect/building contractor (early retirement)

・To work abroad after studying abroad・To study in order to start a business independently

・To take on challenges as a freelancer(TOPIX: 1,992.33)

・To enter graduate school for accounting

・To concentrate on childcare (Welcome Back Program*)

2021/12・To take over the family business (tax accountant)

・To start a business in agriculture (early retirement)

・Due to expiration of employment extension*This program is for the re-employment of staff who had to resign to raise a child, take care of a sick family
member, undergo infertility treatments, or to accompany their spouse overseas due to a work appointment
within ten years of their resignation.
Integrated Report 2022

Corporate Data

2010/32016

As of December 31,
2018

The Nakayama
visually impaired
welfare foundation

2009/3443

2015

9-month financial results

Market Capitalization TRUSCO NAKAYAMA Nikkei Average(Million USD)
Corporation

438

2014

*1 The number of attendees at the Ordinary General Meeting of Shareholders
for the 57th term decreased due to the Covid-19 pandemic.
*2 The shareholder special benefit plan was abolished in the 58th term.

Comparison of TRUSCO NAKAYAMA Market Capitalization
and Principal Indicators
Index: 100 in April 2008

347

2013

As of December 31,
2017

Relationships with
Stakeholders

Total

26.31%

Full-time staff

As of December 31,
2016

Corporate
GovernanceJapanese corporations
Foreign corporations, etc.

19.47%

Consolidated Accounting Started

Environmental
Efforts

Japanese corporations
Foreign corporations, etc.

40,106
Stock Split
Number of attendees of the
1 Share2 Shares 2,233
general shareholders meeting(7.4)(% of shareholders who attended)
1,790
(7.0)
1,463
29,997
1,2441,280 (7.9)
1,1461,194 (8.0) (7.9)
1,652*1
25,365988 (6.8) (7.5)
(4.1)
(6.7)
Number of
Shareholders 18,462
16,963
16,336*2
15,567
15,940 16,043
14,406
14,718

No. of New Employees and Retirees

Corporate
Governance andSocial Contributions

13,608 94.46%

Changes in Number of shareholders and attendance rate
for the Ordinary General Meeting of Shareholders

Human Resources

26 (37)

Status of Stock -As of December 31, 2021Individuals, etc.

*3 Staff averages include the executive officer.

(persons)

Employee Rate of Persons with Disabilities

Shareholder Composition

2,906

Digital Service

2,143

8

Sales

1,980

8

Number of Employees with Disabilities(statutory employment rate based hires)100

2018/12

1,905*1 Changed to consolidated employee count from 2019 *2 TRUSCO NAKAYAMA has a payment policy that provides severance as annual financial bonds rather than a single payment upon resignation.

2008/42017/12Distribution

is shown in theparentheses.

2015/12

Products

The averagesalary including
financial bonds*2

2014/12

9

Officers

Average Age*1 Staff Average(Years of Age) Career course

Average Salary

Consolidated Accounting Started

1,785

Total
Full-time Staff[thousand USD]

2014/3

Value Creation Management
PolicyResults Data (Employee and Stock Information) (as of December 31, 2021)

101

Corporate History
1959

Company founded by Chuji Nakayama on May 15, 1959 as Nakayama Kiko Shokai,
which was a machine tool wholesale business in Tennoji-ku, Osaka.

1962

Nagoya Sales Office (Atsuta-ku, Nagoya) opened
March 2 Established Nakayama Kiko Co., Ltd. (Higashi-ku, Osaka, Current Chuo-ku)
Tokyo office (Minato-ku, Tokyo) opened
Nakayama Business Bulletin, the industry's first comprehensive catalog, is published
Sales of our first private brand product “Komyotan” started

1960s 1964
1970s

1971

ISO14001 acquired for all Japanese domestic business sites
Started a desired relocation/Lovebirds Transfer Program
Total abolition of all draft exchanges

2008

Acquired the “KURUMIN” certification mark fornext-generation training
Inventory management system “ZAICON” operation

2006

Product search site “orange-book.com” launched into
operation
Core system “Paradise” operation
Boss challenge course (responsible person appointment system) started

2009

50 th anniversary of company foundation“TRUSCO RESETPLAN” implementation to deal
with the economic downturn precipitated by the
Lehman Brothers bankruptcy

Head office moved to the Higashiosaka Machinery andWholesale Complex in Osaka Prefecture
Nakayama Filing Co., Ltd. established

1975

2016

Rating upgraded to “A” with issue size through theRating and Investment (R&I) Information Co., Ltd.
TRUSCO new social work grant system started

Started sales to the home center industry

1987

Merger with Nakayama Filling Co., Ltd. (Surviving
company is Nakayama Kiko Co., Ltd.)

1989

Store registration/Public offering of stocks

1995“GAMBARE!! JAPANESE MONODZUKURI”
company message start
Listed on the 2nd Section of the TSE

1996

Listed on the 1st Section of the TSE and OSE

1997

Established the Nakayama visually impaired welfare
foundation
Net sales exceed $900 million

Started training for new employees (Shigisan, Nara
Prefecture)

2017“Best IR Award for Encouragement” recipient
Established Orange Book AI Section“TRUSCO Shirarezaru Gulliver” broadcast started
Distribution Department new establishment
Product database: “Sterra” is launched into operation
Health management superior corporation 2017
(White 500) certified

1991
1992

New computer system “N·STEP” goes into operation
CI “B∙E∙Plan 21 Corporate Evolution Activities” start
Shareholder benefit plan introduction
Changed the company name from Nakayama Kiko Co.,
Ltd. to Trusco Nakayama Corporation
Opened our first distribution center Planet Kyushu
Listed on the 2nd Section of the OSE
Tetsuya Nakayama assumed the position of Representative Director and President

2018

Net sales exceed $1,801 million
Received Porter Prize
Redesign of TRUSCO Orange Book.Com
Planet Saitama starts operations
Health management superior corporation 2018
(White 500) certified

1994

2019

Consolidated accounting started
60 th anniversary of company foundation
Health management superior corporation 2019
(White 500) certified
Established Trusco Nakayama Health Insurance Association
Established Information Systems Department

Fax machine-assisted automatic order entry system“DOTKUL” begins operations
Name of the company's comprehensive catalog changed
from “Nakayama Business Bulletin” to “Orange Book”

2000

2001

2003

2010

Personnel evaluation OJS system started
Financial bond (annual payment for severance) introduction
Private Brand (PB) names unified under the name of
TRUSCO
Moved away from home appliances and lifestyle products to specialize in PRO TOOLs

2012

New logistics system “TRULOGIS” launched into operation
Officer, executive officer, director OJS system started

2013

Sales activity support system: “Self.I” launched into operation
E-commerce Sales Division and Overseas Division are
established

2010s
2014

Goods receipt abolition
Two head office system started with the Tokyo Head
Office in Minato-ku, Tokyo establishedInternet order receiving system “Web TRUSCO”
launched into operation
Started digital broadcast of the Ordinary General
Meeting of Shareholders held in Osaka and Tokyo

TRUSCO Shonan Ohashi Bridge naming rights acquiredGrouping of logistic centers and setting up of core centers
Subsidiary TRUSCO NAKAYAMA CORPORATION(THAILAND) LIMITED is established Formerly “Protool
Nakayama (Thailand)”Welcome back system started
Established e-Business Sales Division (formerly“e-commerce Sales Division”)
55th anniversary of company foundation
Started President OJS at General Meeting of Shareholders
Fiscal year changed to end in December rather than March.
Tokyo Head Office registered as company head office
Relocation of Tokyo Head Office (Shimbashi, Minato-ku, Tokyo)
Subsidiary PT.TRUSCO NAKAYAMA INDONESIA establishment
Part-timer OJS system started
Asunaro subsidy system started
Established Germany Representative Office (Düsseldorf)s 2020Core system: “Paradise 3” launched into operation
Health management superior corporation 2020 certified
Planet South Kanto is rebuilt and put into operation
The Digital Service Strategy Department (formerly the
Information Systems Dept.) is established
Selected as a DX Stocks 2020 “DX Grand Prix” company
Shareholder special benefit plan is abolished
President Tetsuya Nakayama awarded Medal withBlue Ribbon
PRO TOOLs Restrictions Removed
Received the Information Technology Award “IT Grand
Prize”

2020

2021

Two employees received the IBM Women Leadersin AI 2021 award
Selected as a DX Stocks 2021
Announced industry-academia collaboration andcapital and business alliances at a press conference
Conforms to new market segment called “Prime
Market”
Received the Information Technology Award

Environmental
Efforts

2015

Corporate
Governance andSocial Contributions

Activities for eliminating draft transactions started
Relief health care system started
Started Half-day full-time employee system (formerly“Relaxed work hour reduction program”)
Promotion OJS system started (OJS: Open Judging
System)2002

First online system “FACOM230-15” operation

Human Resources

2000s 2005

Digital Service

General Meeting of Shareholders held at 2 venues
in Osaka and Tokyo simultaneously
Electronic purchasing system “Orange Commerce”
operation

Sales

2007

Distribution

1980

2000s

Internal company salesman “Orange Doctor”
qualification exam started
Osaka Head Office moved from Higashiosaka, Osaka to
Nishi-ku, Osaka

Steel center opened

1981
s 1982

1990s

2004

Products

1968This slogan has always evolved by predicting the trends of the times and social changes.
We continue to develop business that plays a role in helping with the development of Japanese manufacturing,“Monozukuri,” through supply of PRO TOOLs.
Value Creation Management
Policy1959“GAMBARE!! JAPANESE MONODZUKURI”

Chuji Nakayama at time of establishment (1959)

Integrated Report 2022

Opened the first Logistics Center
Planet Kyushu (1994)

Corporatemessages arestarted (1995)

TRUSCO stock listed in First Sectionsof the Tokyo Stock Exchange (1996)

Name of the company's comprehensive
catalog changed to “Orange Book” (2000)

Tokyo Head Office isestablished (2002)

New Year's Message fromPresident Nakayama (2003)

Final note payable (August 2003)

16 brands representing
different product categories(before brand integration)

Brand logo (after brand integration)(2003)

Final note receivable (December 2005) TRUSCO NAKAYAMA CORPORATION(THAILAND) LIMITED building (2016)

Screenshot of page on TRUSCO
Orange Book.Com (2006)

TRUSCO data center (2006)

Relocationof TokyoHead Office(2014)

PT. TRUSCO NAKAYAMA INDONESIA
building (2019)

Germany Representative Office(Düsseldorf) (2015)

TRUSCO receives Porter Prize (2018)

TV program broadcasting starts (2017)

Established Trusco Nakayama Health
Insurance Association (2019)

Planet Saitama (2018)

Planet South Kanto (2020)

Integrated Report 2022

Corporate Data

102

Introduced the small computer
ACOM230-15 at the company (1975)

New computer system, N-STEP, islaunched into operation (1991)

Tetsuya Nakayama assumes positionof President (1994)

The Nakayama
visually impaired
welfare foundation

Sales of our first private brandproduct “Komyotan” started (1964)

Nakayama Filing Co., Ltd.
established (1971)

Newspaper articles about thecompany's public offering (1989)

Relationships with
Stakeholders

Launched first
product catalog“Nakayama
Business Bulletin”(1964)

Corporate
Governance

Head office
moved toHigashiosaka
City (1971)

The year of the company's founding,President Tetsuya Nakayama (3 years old at
the time) is in the center of the photo (1959)

103