Please contact us at the address below with any questions regarding this brochure.

Kyokuto Kaihatsu Kogyo, Co., Ltd.
6-1-45, Koshienguchi, Nishinomiya-shi, Hyogo, 663-8545
CSR Office, Corporate Planning Department, Administration Head, Kyokuto Kaihatsu Kogyo, Co., Ltd.
TEL: +81(798)30-2029
URL: www.kyokuto.com
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Kyokuto Kaihatsu Kogyo Official Social Media Accounts

FY2021 (fiscal year ended March 31, 2022)

Creating the society of
the future, today.
The Kyokuto Kaihatsu Group aims to become a global comprehensive
sustainable society through the spirit of outstanding technology, trust, andSpecial Purpose Vehicles Division1

infrastructure manufacturer that contributes to the realization and development of aharmony that we have cultivated since our foundation.

Environmental Equipment and Systems Division

Parking Division, etc.
2

CONTENTS
Management Philosophy

Management
Philosophy

Company Principles

Company Principles

Trust
Reliability
Harmony

Value technology andtrust, make concerted
efforts to develop thecompany, and widely
contribute to society

Message from Our President

5

Chapter 1

The Foundation of the Kyokuto Group

7

History of Growth7

Our Group’s Strengths

9Vision and Growth Strategy

11

Chapter 2

Chapter 3

Since our founding, our management
philosophy has been to “aim to be acompany that contributes to society by“To be a trusted company”“Carry out reliable work”

respecting the skills and trust that have

“In the spirit of harmony and cooperation”

been passed down to us.”

In order to actualize our founding spirit andChapter 4

management philosophy through our daily work, weuphold “Trust, Reliability, Harmony” as the guiding
principles for our employees.

Editorial Policy
This report describes the activities and future plans of the Kyokuto Kaihatsu Group for the realization of a sustainable society.
Organizations reported : This is a report of the activities of the Kyokuto Kaihatsu Group, with a particular focus on Kyokuto Kaihatsu
Kogyo Co., Ltd., but also including the affiliated companies of the Group in Japan and overseas.
Period of report: April 1, 2021 to March 31, 2022 (Some articles include details from April 2022 and later.)Target readers: All stakeholders who are involved with the Kyokuto Kaihatsu Group
Date of issue: October 2022
Reference guidelines : ISO 26000 guidelines, the Ministry of the Environment Environmental Reporting Guidelines (FY2018
version), the Ministry of Economy, Trade and Industry “Guidance for Collaborative Value Creation,” IIRC
“International Integrated Reporting Framework”

3

Value Creation Model

11

Risks and Opportunities/Materiality

13

Commitment to the SDGs/Message from the Executive General Manager of Administration Head

15

Long-Term Management Vision - Kyokuto Kaihatsu 2030 -17

Review of the Previous Medium-Term Management Plan
Medium-Term Management Plan 2022-24 -Creating The Future As One-19

A Society Created by the Kyokuto Group

23

Business Division Stories (Business Overview/Message from the Division President/
Topics/Special Features)

25

Special Purpose Vehicles Division

25

Environmental Equipment and Systems Division

29

Parking Division, etc.

33

Overseas Business Division

36

Activities of the Kyokuto Group37[Local communities] Sustainable “City and Community Building”
ー Trusted Manufacturing/Participating in Local Communities

37[Environment]

41“Manufacturing” That Considers the Global Environment
ー Toward a Decarbonized Society/Toward a Recycling-Oriented Society/
Conservation of Ecosystems/Responding to Climate Change Risks

20[Human Resource] “Creating Society” in Which Each and Every Person Is Respected
ー Diversity Management/Achieving Work-Life Balance/Creating Rewarding Workplaces/
Occupational Safety and Health/Health and Productivity Management/Consideration for Human Rights

45[Governance]

49“Building an Organization” Trusted by Society
ー Corporate Governance/A Conversation with Our Outside Directors

51

Company Data
Sustainability Data

51

Corporate Profile/External Assessment and Awards/Dialogue with Stakeholders

53

4

Message from Our President

Working Together Under Our Long-Term Vision to
Fulfill Our Mission as a Comprehensive
Infrastructure Manufacturer
What the Kyokuto Kaihatsu Group Aims forin This Once-In-A-Century Period of Change
In May 2022, our Group announced the Long-Term
Management Vision - Kyokuto Kaihatsu 2030 -. This isbecause we believe that a longer-term perspective forsustainable growth is necessary in the automotive industry,
which is said to be undergoing a once-in-a-century
transformation. Our goal is to become a “leading global
infrastructure manufacturer contributing to the realization anddevelopment of a sustainable society.” We see the changes of
the times as opportunities rather than risks, and are using
them as fuel for growth. “Medium-Term Management Plan
2022–24 -Creating The Future As One-” is the first stepin our long-term management vision, and through it we will
focus on building a foundation to respond to changes that may
occur in the future and promote initiatives to address all risks
and opportunities.

The Attitude toward Carbon Neutrality
Expected by the Industry

Tatsuya Nunohara
Representative Director, President, CEO
Kyokuto Kaihatsu Kogyo,Co.,Ltd.

5

Carbon neutrality is a huge challenge for the automotive
industry. We recognize that our Group in particular is expected
to play a leading role.
For example, we have set a target of reducing CO2 emissions
by 38% (compared to fiscal 2013) by FY2030. In the first three
years, we are aiming for a 10% reduction (compared to
FY2020). This is just the amount of CO2 emitted through ourbusiness activities, and we also need to pay attention to CO2emissions from product use. Efforts to improve transportation
efficiency, such as by developing energy-saving products andincreasing the size of vehicles, are effective in reducing CO2
emissions throughout society. Our Group aims to contribute to
the early realization of carbon neutrality by capitalizing on its
technological strengths.

Strengthening Synergies and Building a
Corporate Structure That Can Respond
Quickly to Changes in the Times
The key phrase in this is “strengthening synergies.” We will
create an environment conducive to innovation by promoting not
only cooperation among departments but also active
technological exchange with other Group companies, combining
the technologies and know-how accumulated by each company.
We believe that delivering products to society that meet theneeds of the times in a more timely manner is an essential
element of the Group’s strength and sustainable growth.
In terms of governance, we welcomed a female outside
director in June 2022, and are promoting diversity
management and further information disclosure, which
includes dialogue with shareholders, the issuance ofintegrated reports, and responses to TCFD. In the area ofoccupational health and safety, we are striving to establish asolid business foundation that supports corporate growth withthe aim of acquiring ISO 45001 certification at our major sites
during the period of the medium-term management plan.

Supporting a Changing Society Based on
Unchanging Beliefs“Value technology and trust, make concerted efforts to develop
the company, and widely contribute to society,” and “Trust,
Reliability, Harmony.” I really like both the management
philosophy and the company principles that our Group has
advocated since its foundation. “Technology” and “trust” arethe very strengths of our Group, while “Harmony” reflects a
corporate culture of mutual help rather than a mere
performance-based approach.
We will continue to provide products that meet the needs of thetimes through technological innovation, striving to create asustainable society based on the spirit of the management
philosophy and company principles that we have nurtured
since our founding.
We look forward to your continued understanding and support
for our Group.

6

1

The Foundation of the Kyokuto Group

History of Growth

2020
SATRAC ENGINEERINGPRIVATE LIMITED(India) included in GroupThe Kyokuto Kaihatsu Group has always provided products thatmeet the needs of society and contribute to its development.

2020

1991

We will continue to flexibly respond to the changing times and“Refuse truck safety support system”“Single car carrier truck” launched

contribute to the realization of a sustainable society.

By lowering the loading platform to theground level, it can be used to load
low-height luxury and sports cars.

1981“Detachable body truck” launched

140,000-2017“25-m double-trailer truck” launched

Separating containers from vehicles
made it possible to streamline logistics
operations such as the transportation,
cargo handling, and storage of goods.
Greater efficiency in transportation andimproved vehicle operation rates werealso achieved by greatly streamlining
cargo handling and saving labor.

Sales (million yen)launched

Improved safety and workability havebeen achieved by adopting
high-performance cameras and AI todetect “people.”

Capable of transporting two large
trucks with a single vehicle. Reduced
CO2 emissions and fuel consumption
by approximately 40% while
maintaining the logistics volume.

1970

This reduced the burden of loading andunloading heavy loads by saving laborin cargo handling work.

2016

2012
PT. Kyokuto
Indomobil
Manufacturing
Indonesia(Indonesia) establishedThis made it easier to landfill andincinerate by pulverizing bulky
waste. We also contributed to thepromotion of recycling and otherrecycling activities.

Even though it is a van type truckequipped with tailgate lifter, the rear door
can be opened and closed at any time,
so it can connect to a dock shelter*.

1989

the loading platform of a vehicle and theloading port of a warehouse or factory2002

Two-stage home parking system“CAR Pochette” launched

Shinko Automobile
Co., Ltd. includedin Group

In order to solve the problem of parking
in urban areas, we developed
multistory parking equipment using
technology we developed for special
purpose vehicles.

1966“Squeeze type concrete pump” launchedThis greatly improved the productivityof concrete pouring.
80,000-2003
Kyokuto Kaihatsu (Kunshan)
Machinery Co., Ltd. (China)
established*An airtight device for filling the gap between

Entry into the mechanical multistory
parking equipment business
100,000-

Nippon Trex Co., Ltd.
included in Group“CG1000 tailgate lifter” launched“Vertical type pulverizer” launched

120,000-

2007

1998

Entry into the recycling plant business

Hokuriku Heavy
Industries, Ltd.
included in GroupMori Plant Co., Ltd.
included in Group

1964“Tailgate lifter” launched

2018

1995
Itami/Head Plant integrated into
Miki Plant

1972“Press type refuse truck” launched
By compressing collected refuse
with strong force, volume reduction
and transportation efficiency wereachieved simultaneously.

60,000-Miki Plant went into operation

1967
1971

“Pneumatic bulk carrier” launchedCompany name changed to Kyokuto Kaihatsu
Kogyo, Co., Ltd.
Itami Plant went into operation

This made efficient transportation of
powder possible.

40,000-

1962

1970

Yokohama Plant went into operation

Fukuoka Plant
went into operation

1961

1959
20,000-1979

Head Plant
went into
operation

Nagoya Plant
went into
1955
operation
Kyokuto Kaihatsu
Kikai Kogyo, Co.,
Ltd. established

0-

1955

7

1965

1975

1985

1995

2005

2015

Era of Establishment

Era of Growth

Era of Transformation

Era of Integration

Era of Selection and Concentration

Era of Sustainable Growth

1955 -

1963 -

1971 -

1987 -

1995 -

2006 -

8

1

The Foundation of the Kyokuto Group

Our Group’s Strengths
The Kyokuto Kaihatsu Group has its own unique capital that has been accumulated throughout its history.
These capital are the strength that allows us to meet the expectations of our stakeholders and a source of sustainable growth.

Human capitalIntellectual capital

Number of employees

3,138

A diverse range of employees work to support the Group.

Parking Division, etc.

Special Purpose
Vehicles Division

118

2,582

Environmental
Equipment
and Systems
Division

1.513 billion yen*FY2021 results (consolidated)

We are engaged in research and development activities in all
fields so that we can respond quickly to the needs of society.

Major R&D Activities
Development of New
Products and Technologies

Exploration of
New Fields

No. of applications forindustrial property rights

Improvement of
Existing Products

70(Special Purpose Vehicles Division: 64, Environmental Equipment
and Systems Division: 5, Parking Division, etc.: 1)*FY2021 results (consolidated)

Professional engineers*As of March 2022 (consolidated)

11*As of March 31, 2022 (consolidated)consolidated Sales

Natural capital

Number of organizations joined174that supports sustainable growth.

consolidated Operating profit

140,000 (million yen)
120,000

112,690

14,000 (million yen)

114,301

120,173

117,170

Water consumption

280,869 tons

*As of March 2022 (Kyokuto Kaihatsu Kogyo non-consolidated)*FY2021 results (Total for Kyokuto Kaihatsu Kogyo and Nippon Trex)

Aiming to collect information in various fields and contribute to
local communities, we join various organizations and promote
activities in cooperation with them.

Electrodeposition coating (a substrate treatment using electricity)
is used for many products, and a large amount of water is usedin the pretreatment process. Our Group is working to conserve
water at every stage of its operations, not only in terms of cost,
but also to ensure that even when water use is restricted due toa disaster or other event, it does not interfere with businessactivities.

116,910

12,000100,000

10,00080,0008,000

60,0006,000

40,0004,000

20,0002,000

0FY2018FY2019FY2020

FY2021

Capital investment

95,157 million yen

Service plants(Special Purpose
Vehicles Division)

365 companies 432 locations*FY2021 results (consolidated)*As of March 31, 2022 *Kyokuto Kaihatsu Kogyo service plants

Aggressive capital investments are being made to strengthen
and improve the efficiency of our production system, to expand
our service system, to cope with risks such as aging anddeterioration of each site, and to introduce new technologies.

In cooperation with service plants throughout Japan, we haveestablished a system to respond quickly to product troubles.

8,554

8,493

9,080
6,974

FY2017

consolidated Ordinary income

14,000 (million yen)

12,00012,00010,3308,817

FY2019FY2020

FY2021

consolidated Net income attributable to owners of parent

14,000 (million yen)

10,000FY2018(Ended Mar. 2018) (Ended Mar. 2019) (Ended Mar. 2020) (Ended Mar. 2021) (Ended Mar. 2022)

8,675

9,253

14,27410,000

7,567

8,000

6,000

6,000

4,000

4,000

2,000

2,000

0

7,190

6,284

6,073

FY2018FY20196,774

0FY2017FY2018FY2019FY2020

FY2021FY2017(Ended Mar. 2018) (Ended Mar. 2019) (Ended Mar. 2020) (Ended Mar. 2021) (Ended Mar. 2022)

FY2020

FY2021(Ended Mar. 2018) (Ended Mar. 2019) (Ended Mar. 2020) (Ended Mar. 2021) (Ended Mar. 2022)*In FY2021 (fiscal year ended March 31, 2022), an extraordinary income of 13.221 billion yen was recorded

Sales breakdown by segment

consolidated ROE/ROA

FY2021 (fiscal year ended March 31, 2022)

Parking Division, etc.

6.2 %Environmental
Equipment
and Systems
Division

9.9 %ROE (Return on Equity)

Special Purpose
Vehicles Division

83.9 %ROA (Return on Assets)

13.4

14.0 (%)
12.0
10.0

Manufacturing capital

10,2450

FY2017(Ended Mar. 2018) (Ended Mar. 2019) (Ended Mar. 2020) (Ended Mar. 2021) (Ended Mar. 2022)

8,000

Social and relationship capital

We are building a sound financial baseFinancial capital

R&D expenses

438

Financial Highlights

8.0
6.0

9.6

8.6
7.1
5.4

6.7

7.0

4.6

4.4

4.9

FY2018FY20194.0
2.00

FY2017

FY2020

FY2021(Ended Mar. 2018) (Ended Mar. 2019) (Ended Mar. 2020) (Ended Mar. 2021) (Ended Mar. 2022)*In FY2021 (fiscal year ended March 31, 2022), an extraordinary income of 13.221 billion yen was recorded10

2

Vision and Growth Strategy

Value Creation Model
In order to respond to changes in the external environment surrounding the Group and the needs and expectations of our stakeholders,we aim to both solve social issues and achieve sustainable growth as a company by effectively utilizing capital and continuing tocreate value with our stakeholders.

Social Issues

Social Contributions
through BusinessBusiness Model

Output/Outcome

Developing Products for the Improvementof Social Infrastructure
See pages 23 - 36

SDGs

Materiality

Special Purpose Vehicles Division

Environmental Equipment and Systems Division

FY2021
Output/Outcome

Parking Division, etc.

[Performance] FY2021 sales(Priority Management Issues)

11,647

Branding

7,261

117,480

Strengthening Stakeholder
Engagement(million yen)

See pages 53 - 54

Social issues
affecting the
Kyokuto Kaihatsu GroupE (Environment)

98,571GovernanceSpecial Purpose Vehicles Division
Environmental Equipment and Systems Division
Parking Division, etc.
See page 10

Building an Organization
Resilient against Risks*Intragroup sales of 5.7 million yen were
eliminated on a consolidated basis.

See pages 49 - 50

Suppressing global
warming
Realizing a recyclingoriented society
Conserving ecosystems[E] Contributing to the environment• CO2 reduction:
6.9% reduction (compared to FY2013)

Workstyle Reforms*Calculated based on output level(CO2 emissions/sales)

The Kyokuto Kaihatsu Group SDGs Declaration

Promotion of Workstyle Reforms

See page 15

See pages 45 - 48

• Resource recycling rate:

98.6%

See page 51

OUTPUT[S] Contributing to people

S (Society)

Creating livable anddisaster-resistantcommunities
Realizing a society in which
everyone participates
G (Governance)

Realizing an economy andsociety resilient against risks
Balancing social
sustainability witheconomic activities

Management Systems
Efficient Management
Using Management Systems

Long-Term
Management Vision- Kyokuto Kaihatsu 2030 Management Performance Vision

Sustainability Vision

See pages 17 - 18

See page 54

Carbon Neutrality and Environmental Issues
Initiatives toward a DecarbonizedSociety, a Recycling-Oriented Society,and Ecosystem Conservation
See pages 41 - 44

Health and Productivity Management

Medium-Term
Management Plan

See page 52[G] Strengthening our businessfoundation- Creating The Future As One -2022-2024• Ratio of female employees: 10.6%• Satisfaction withwork-life balance: 58.1%• Percentage of employees
taking paid leave: 61.8%

See pages 20 - 22

• Capital investment:5,157 million yen• No. of applications forindustrial property rights: 70
See page 9

INPUT

Promoting the Health of
Employees and Their Families

Our Group’s CapitalSee pages 47 - 48

Contributing to Local Communities

Management Philosophy
See page 3

11

Coexistence and Co-prosperity
with Local Communities

Human capitalIntellectual capitalSocial andrelationship capital

Natural capital

Manufacturing
capitalFinancial capitalSee pages 39 - 40
See pages 9 - 10

12

Vision and Growth Strategy

Risks and Opportunities/Materiality
Our Group has incorporated sustainability at the core of its
businessstrategyandisimplementing

sustainability

management to meet the diverse needs and expectations ofstakeholders in the context of social challenges.
Our aim is to achieve both the realization of a sustainable
society and the enhancement of our Group’s social value by
fulfilling the principles of social responsibility for the core
subjects related to our stakeholders.

Risks and Opportunities/Materiality List

Core Subjects

Principles of Social Responsibility(1) Organizational
governance(2) Human rights(3) Labor practices(4) The environment(5) Fair business practices(6) Consumer issues(7) Community
participation andcooperation(1) Accountability(2) Transparency(3) Ethical actions(4) Respect for theinterests of stakeholders(5) Respect for the ruleof law(6) Respect for the international
norms of conduct(7) Respect for human rights

Category

Organizational governance2

Flow for Identifying Materialities (Priority Management Issues)

Clarify
stakeholder
needs andexpectations

Understandsocial issues

4

Assess risks andopportunities forneeds andexpectations

Select high-riskand opportunity
items= Identify materiality(priority management
issues)1 Understand the impact the SDGs and various challenges facing a sustainable society has on our Group.
2 Based on the international guideline standard ISO 26000, the needs and expectations of the Group’s
stakeholders in realizing a sustainable society are clarified through questionnaires and interviews.
3 With regard to clarified needs and expectations, the magnitude of risks and opportunities are assessed from thetwo perspectives of “degree of interest and importance for stakeholders” and “degree of impact for the Group.”
4 Based on the results of risk and opportunity assessments, items of high risk and opportunity are selected asmaterialities (priority management issues). Materialities approved by the Board of Directors after deliberation by
the Sustainability Committee (see below).

Human rights

3

Labor practices

2• GRI Standards• OECD Guidelines for Multinational Enterprises• ISO26000• Task Force on Climate-related Financial Disclosures (TCFD)(TCFD: Task Force on Climate-related Financial Disclosures)• International Integrated Reporting Council (IIRC) “International Integrated
Reporting Framework”

Materiality Management System - Sustainability Committee -chaired by the President and directly under the Board of

status of initiatives.

13

Sustainability Committeematerialities, formulating measures and monitoring theBoard of Directors

The Sustainability Committee has set targets for seven

Materiality

Risk
Opportunity

Inadequate responses to social changes that may affect the Group, and the risks andopportunities associated with them, may result in missed growth opportunities. Furthermore,
corporate value will be improved by accurately grasping and responding to the situation.

Continue stablebusiness activities

Risk

Inadequate planning and implementation regarding business continuity risks could hamper
business activities in the event of an emergency.

Branding

Disclose information
appropriately

Risk

Inadequacies in information disclosure, such as the disclosure of incorrect or misleading
information, disclosures that do not comply with international standards, and disclosures thatare inappropriate for users, can adversely affect investor and stakeholder judgment.

Strengthening
Stakeholder
Engagement

Manage corporate
information appropriately

Risk

Information leaks due to cyber attacks or information security deficiencies can harmstakeholders.

Risk
Opportunity

Failure to respond appropriately to the opinions of all stakeholders, whether latent or actual, may
lead to management heading in the wrong direction. In addition, holding dialogues with a wide anddiverse range of stakeholders may provide new insights and broaden the scope of management.

Respond to human rights
issues appropriately

Risk

In an increasingly globalized value chain, failure to properly understand human rights risks
can lead to unexpected human rights violations.

Avoid complicity inhuman rights violations

Risk

The use of parts containing conflict minerals or those related to forced labor may contribute tocomplicity in forced labor and human rights violations.

Risk

While more and more people participate in society, delays in universal design for products
and services may lead to discrimination.

Risk

As the workforce becomes more diverse, there is a possibility that human rights may beviolated through harassment due to bias or lack of awareness.

Risk

Long working hours based on outdated values and corporate culture may affect mental healthand work-life balance.

Consideroccupational healthand safety

Risk

With the declining birthrate, aging population, and participation of a diverse range of people insociety, the number of unskilled workers will increase, raising the possibility of injuries andaccidents in the production process. There is also the possibility that the high temperature ofwork environments caused by global warming may adversely affect the health of workers.

Pollution control

Risk

Issues in the manufacturing process, such as aging equipment or improper operation, cancause pollution such as leakage of environmental pollutants.

Promote the use ofsustainable
resources

Risk
Opportunity

Excessive resource consumption due to the inefficient manufacture of products and improper useof products, as well as new resource extraction due to the use of rare materials, can destroy thenatural environment. On the other hand, the provision of products that contribute to the effective
use of waste and raw materials can contribute to the formation of a recycling-oriented society.

Mitigate climate change
and global warming

Risk

A lack of decarbonization of products and manufacturing could hinder the realization ofcarbon neutrality.

Adapt to disasters
caused by climatechangeRisk

Inadequate measures in the event of heavy rain or flooding due to climate change may hinder
the stable supply of products and services.

Ecosystem conservation(maintain biodiversity)

Risk

Improper use or disposal of products containing substances of concern or plastic parts may
adversely affect the natural environment.

Clean businessactivities with free of
corruption

Risk

Corruption and compliance violations by management and employees could lead to issues
such as lawsuits and disruptions in business activities.

Eliminate
discrimination

Guarantee workers’
rightsConsider andcooperate with the
supply chain

Risk
Risk

Reputational risks from supplier scandals may reduce sales.
Production and business activities may be disrupted due to problems such as the aging of
suppliers and business failures caused by aging facilities.

Governance
Building
an Organization
Resilient against Risks

Workstyle Reforms
Promotion ofWorkstyle Reforms

Management
Systems
Efficient Management
Using Management
Systems

Carbon Neutrality
and Environmental
Issues
Initiatives towarda Decarbonized Society,a Recycling-Oriented Society,and Ecosystem Conservation

Health andProductivity
Management
Promoting the Healthof Employees andTheir Families

Contributing toLocal Communities

Providing products and services that do not meet the diversifying needs can cost users. At thesame time, we can contribute to the further development of society by developing products
and services that use AI and IoT to stimulate potential needs.

Provide safe products

Risk

As more and more people participate in society, delays in universal design for products andservices may lead to user accidents.

Management Systems

Provide sustainableproducts and services

Risk

Products with poor fuel efficiency and wasteful products and services can have a negative
impact on the natural environment over the course of its use.

materialities have

Carbon Neutrality andEnvironmental Issues

Understand andparticipate in local
communities

Risk

A lack of understanding of the region may prevent cooperation from the local community.

risks and

Provide local employment
opportunities (Return to
the local economy)

Risk

Amid concerns about the decline of local economies, there is a possibility that the downsizingof business due to a deterioration in business performance may hinder local employment andthe local economy.

opportunities.

GovernanceDirectors, to manage identified materialities.

Risks and Opportunities

Provide products andRisk
services that meet
Opportunity
needs

Branding

Workstyle Reforms

Health and Productivity
Management
Contributing toLocal Communities

Consumer issues

Our Group has established a Sustainability Committee,

Auditing Department

Community participationand cooperation• The 10 Principles of the United Nations Global Compact (UNGC)

Fair business practices<Referenced Frameworks, Guidelines, etc.>• Sustainable Development Goals (SDGs)

Stable andfuture-oriented
management

Management thatconsiders all
stakeholders

The environment

1

Need and
Expectation

Invest in local
communities

Opportunity

Coexistence andCo-prosperity with
Local Communities

Seven
been set based on

Returning management resources such as technology, people, and funds to local
communities can revitalize society and lead to further returns to the company.

14

2

Vision and Growth Strategy

Message from our Executive General Manager of Administration HeadCommitment to the SDGs
The Kyokuto Kaihatsu Group
SDGs Declaration

Activities

The Kyokuto Kaihatsu Group’s management
philosophy is to “value technology and trust,
make concerted efforts to develop thecompany, and widely contribute to society.”
Based on this management philosophy, we
will work proactively to achieve the SDGs
(Sustainable

Development

Goals)

bysimultaneously resolving social issues related
to “local communities,” “the environment,”“people,” and “governance” while pursuing
corporate economic value.

SDGs[Local communities] Sustainable “City andCommunity Building”

Long-Term Management Vision to Be
Achieved by the Group• We will contribute to the development of disaster-resistanturban infrastructure.
• We will contribute to eliminating labor shortages in all fields
by realizing efficient transportation and savings in labor.
• We will contribute to the creation of a recycling-oriented
society by building a foundation for resource recycling.

The “Medium-Term Management Plan 2022–24 -Creating
The Future As One-” which is the first step of our “Long-Term
Management Vision - Kyokuto Kaihatsu 2030 -,” defines
the first three years, setting performance and sustainability
targets and numerical targets for reducing CO2 emissions,promoting recycling, and more.
In the past, each business division had been engaged in theirown sustainability activities, but by setting Group targets, we aim
to shift our focus to cross-organizational activities. Improving
sales and profits is of course important, but the sustainability of
the underlying organization is a great concern to stakeholders.
By promoting and sharing sustainability initiatives with our
stakeholders, we aim to become a Kyokuto Kaihatsu Group thatis highly regarded by society.

[Environment] “Manufacturing” That Considers
the Global Environment• We will strive to reduce the environmental impact at allstages of the supply chain.
• We will promote the 3Rs (Reduce, Reuse, Recycle) for
our products and promote energy conservation to
produce environmentally conscious products.

[People] “Creating a Society” in Which Eachand Every Person Is Respected• We will strive to create a work environment in which all
employees can demonstrate their abilities to the fullest extent
possible with a sense of fulfillment and job satisfaction.
• We will promote the creation of products that are safeand easy to use for all customers.
• We will promote the creation of products that consider
people at all stages of the supply chain.

[Governance] “Building an Organization”
Trusted by Society

SDGs Partnerships
We are working with companies, governments,and organizations to resolve issues related to

Aiming for Continuous Improvement ofCorporate Value by Developing Human
Resource and the Organization• We will identify Group risks and opportunities, managing
them with a management system.
• We will value dialogue with stakeholders and respond totheir needs and expectations.
• We will promote sound corporate management inaccordance with compliance.

sustainability.

United Nations Global Compact (UNGC)
In November 2016, Kyokuto Kaihatsu Kogyo signed the United Nations Global Compact (UNGC). The
subcommittees of the UNGC share the latest sustainability trends as well as examples of various initiatives,to foster an organizational culture in which employees canunderstand each other, recognizing unconscious biases based on
factors such as gender and age.

Achieving a Work-Life Balance That Is
Efficient and Safe
Telecommuting and online meetings, which were introduced
during the COVID-19 pandemic, have already become
widespread among employees and have had tangible effects. In
addition to preventing the spread of infectious diseases, they
have also reduced time lost through travel, reduced costs, andimproved operational efficiency. In the future, we will strive toachieve a work-life balance for our employees by taking a
two-pronged approach to improving both efficiency and safetymeasures, such as by mechanizing work traditionally performedby people using IT technology.

A Workplace Where Diverse Human Resources
Are Recognized and Play an Active Role

Building a Foundation for a Group That Is Resilient
Against Risks and Continues to Contribute to Society

One of the basic policies of the medium-term management plan is
to build a solid business foundation that supports sustainablegrowth and innovation. The Management Division will take thelead in a wide range of activities, including BCP, promotion ofdiversity, strengthening of information security, effective disclosureof information, and acquisition of ISO 45001 (Occupational Safety
and Health) certification. Especially, promotion of diversity is one of
the key issues. I hope that by adopting new perspectives, such as
by actively promoting employees in divisions that have not had a
track record of hiring women, we will be able to create a workplace
where everyone can feel a sense of job satisfaction. As a part ofthis, we are conducting "Trainning program of unconscious biases”

The Sustainability Committee was established in April 2022 tohelp our Group continue its business operations and contributeto society in the future (see page 13). We have set seven major
levels for the Group’s materialities (priority management
issues), and have established a system for managing the
progress of issues in each of those seven groups, which are
made up of members from across each company, and reportingto stakeholders.
We will strive to build a solid foundation for an organization that
not only seeks profit by increasing sales, but also responds torisks and takes advantage of opportunities from a long-term
perspective.

while also making efforts such as creating tools to support the promotion of sustainability for companies.
We will fulfill our role as a member of the international community by implementing the Ten Principles of actionthat the United Nations calls for in relation to human rights, labor, the environment, and anti-corruption.

United Nations
Global Compact (UNGC)

Participation in Regional Platforms
We are working with local governments as well as local companies to solve local issues and create new innovations.
Some of the platforms we are a part of• SDGs for Regional Revitalization Public-Private Partnership
Platform (Kyokuto Kaihatsu Kogyo)• Kansai SDGs Platform (Kyokuto Kaihatsu Kogyo)• Kanagawa SDGs Partner (Kyokuto Kaihatsu Kogyo)• Toyohashi City SDGs Promotion Partner (Nippon Trex)• Participation in the “Komaki SDGs Declaration”(Kyokuto Kaihatsu Kogyo)

15

Kanagawa
SDGs Partner

Toyohashi City
SDGs Promotion
Partner

Takeo Norimitsu

Executive General Manager
of Administration Head,
Director, Associate Senior
Executive Officer, Kyokuto
Kaihatsu Kogyo,Co.,Ltd.

16

2

Vision and Growth Strategy

Management Performance Vision (FY2030)

Long-Term Management Vision

Sales: 200 billion yen- Kyokuto Kaihatsu 2030 -[Environment] Manufacturing Vision

the environment, and people, while pursuing corporate economic values.
Through the Long-Term Management Vision Kyokuto Kaihatsu 2030, we aim to be a Group that continues to provide value
to society while flexibly responding to dramatic changes in society.

“Opportunity”

A leading global infrastructure manufacturer

Decarbonization

contributing to the realization of a sustainable society

Outstanding Technical Capabilities

Solid Quality

Recognizing the changes in the social environment surrounding our Group as an opportunity, we will contribute to
Human rights

on the spirit of “technological capabilities,” “trust,” and “cooperation” that we have nurtured since our founding.

Three Steps for Realizing Our Vision

3rd STEP

2nd STEP● Strengthening synergy within
the Group● Aggressive investment in growth● Strengthening R&D systems inorder to address social issues● Steady progress toward therealization and development ofa sustainable society**Specific items• Establishing a carbon neutral
production foundation• Developing infrastructure for diversity
management• Establishing a risk management system
TERM : FY2022-24

1738% reduction of
CO2 emissions *1

Maintain a recycling
rate of 99.0% or higher(Compared to FY2013)(Zero landfill waste)

In 100 years, global warming
is expected to raise global
temperatures by up to 4°C.

The effective use of existing
resources will lead to a
suppression of environmental
destruction caused by activities
such as new resource
extraction and deforestation.

Aiming to become carbon
neutral by 2050, our Groupwill promote decarbonization
efforts in products, services,and manufacturing, primarily
at plants that consume large
amounts of energy.

Resource
Conservation

Our Group aims to reduce theamount of waste generated inits business activities and at thesame time promote recycling inorder to achieve zero landfill
waste for the entire Group.

Prohibiting the use ofhazardous chemical substancesand reducing the use of plastics

Conserving
the Ecosystem

Chemical substances that do notor are difficult to return to nature
have a large impact not only onhumankind but also on
ecosystems.
Our Group will ban the use ofhazardous chemical substancesin its products and promote theelimination of plastic in
manufacturing.

[Human Resource] Social Development Vision

the realization of a sustainable society by concentrating all our management resources on solving social issues, building

1st STEP

ROE: 10%

Sustainability Vision (FY2030)

The Kyokuto Kaihatsu Group aims to realize a sustainable society by solving social issues related to local areas,

Dramatic
Changes in
Expected Social
Structure

Operating margin: 10% or more

● Developing and expanding
businesses that make full use of
the Group’s comprehensive
capabilities● Strengthening the Group’s
influence by balancing a highlevel of productivity with quality● Actively responding to social
issues**Specific items• Management of greenhouse gasses,
including in the supply chain• Expanding diversity management to
the Group• Expanding risk management to the GroupTERM : FY2025-27● Coexistence of outstanding
technological capabilities andsolid quality● Achieving stable and efficientprofit generation● Further expanding businessactivities and areas of social
contribution*

Safety and HealthManagement of human rights violation risks

Satisfaction with work-life balance: 70% *2

With more globalization, corporate supply chains are
expanding worldwide.
As a result, there is an increased risk of humanrights-related compliance violations, including unfair
working conditions, unsafe working conditions,harassment, and discrimination.

The position work has in life has changed greatly with thetimes.
Better work-life balance creates a win-win-win
relationship for individuals, companies, and society.
In addition to allowing employees to take annual paid

Work-Life Balance leave, the Group also implements systems and in-house

Our Group will manage and address human rights
risks at all stages of its operations.

training in order to realize flexible working styles andachieve a work-life balance for employees.

Acquisition of ISO 45001 certification

Ratio of women to men employed (in Japan): 20% *3

The health and safety of workers are a prerequisite
for developing business.
Due to the diversification of working individuals andchanges in employment patterns, the risk of injury
and accident is also increasing.

With globalization, the declining birthrate, and an aging
population, companies are not only required to innovate,
but also to take advantage of the abilities and individualityof a diverse range of people, such as women, the elderly,
foreigners, and people with disabilities.

Our Group is committed to improving safety andhealth of workplace safety and health and the healthof employees through the PDCA cycle, as well as tocreating a workplace where everyone can continue
to work with peace of mind.

Diversity

Our Group will promote the creation of a workplace
where individuals can experience growth by creating anenvironment where a variety of people can work with asense of fulfillment and enthusiasm.

[Governance] Organizational Vision*Specific items• Committing to carbon neutrality in thevalue chain• Achieving a work-life balanceGroup-wide• Establishing a Group-wide risk
management system

Strengthening the risk management systemand building a business continuity system (BCM)

Promoting sustainable procurement

In addition to risk management with regard to various
aspects such as quality, the environment, and occupationalsafety, it is also necessary to deal with unexpected risks
that could lead to business suspensions, such as natural
disasters, infectious diseases, and conflicts.

TERM : FY2028-30
Risk response

Our Group is identifying risks related to business
continuity and striving to strengthen our risk systemand enhance our organizational capabilities throughthe PDCA cycle management system.

In order to realize a sustainable society, considerationmust be given to the entire value chain, from theprocurement of materials and energy to the use anddisposal of products and services, as well as to activities
within the business site.
Sustainableprocurement

Our Group considers not only costs but also
environmental and human impacts when selecting
materials and energy for its products and services.

*1 Output level compared to FY2013 for Kyokuto Kaihatsu Kogyo, Nippon Trex, and Kyokuto Kaihatsu Parking (CO2 emissions (tons)/sales (million yen))*2 FY2021 results: Kyokuto Kaihatsu Kogyo non-consolidated 58.1% (evaluated based on the results of employee awareness surveys)*3 Average results for the last three years: Kyokuto Kaihatsu Kogyo non-consolidated 11.8%

18

Review of the Previous Medium-Term Management Plan
Medium-Term Management Plan 2019–21 -To the Growth CycleThe previous medium-term management plan was formulated with the aim of growing into a “a global company
with the flexibility to adapt to change” over the three-year period from April 1, 2019 to March 31, 2022. The results
for those three years are as follows:

Medium-Term Management Plan 2022–24
Creating The Future As One
Under the new medium-term management plan (April 1, 2022 to March 31, 2025), which is the first step in the

1. Summary
Due to IT developments and changes in lifestyles, the volume of transactions in the logistics industry, particularly
small shipments, increased significantly in connection with e-commerce. At the same time, the shortage of drivers
has become more serious, and the need for larger trucks to improve transportation efficiency has expanded.
Demand for labor-saving and safety-related equipment has also increased. In response, our Group has
restructured its production lines, developed safety devices using AI, expanded its service bases, and developed
other systems to meet the diverse and vigorous demand. As part of our global efforts, we reorganized our businessin Thailand and established a new base in India to develop and launch new products that meet the needs of eachcountry.
From the middle of this plan period, the global economy stagnated due to the spread of COVID-19, and so we wereaffected by higher prices for energy, steel, and other raw materials than expected.
As a result, while we reached sales of 116.9
billion yen, surpassing the final year target of
110 billion or more on a consolidated basis,
we were unable to achieve our operating
profit target of 9 billion yen or more on aconsolidated basis, reaching only 6.9 billion
yen in operating profit.On the non-financialside, we have applied a quality management
system based on ISO 9001 to our main
plants, and have worked to build a system torespond appropriately to customer needs andother changing social issues. We also
launched the Workstyle Reform Project topromote a diverse range of work styles, andlaunched initiatives in pursuit of job
satisfaction regardless of gender or age.
Under the Medium-Term Management Plan
2022–24, we will strengthen these initiatives
while at the same time focusing on initiatives
that lead to the realization of a sustainable
society, such as through carbon neutrality.

long-term management vision - Kyokuto Kaihatsu 2030 -, the Company will actively promote investmentsthat will lead to increased corporate value, such as by strengthening synergies within the Group and enhancing
risk tolerance and governance, with the aim of achieving further growth, and will lay the foundation for asustainable future as a global company with irreplaceable high-level technological capabilities and productivity.
The slogan of the new medium-term management plan, “Creating The Future As One,” means that the Group willunite and work together to create the future through sustainable growth and social contributions.

Aggressive investment in risk and growth

Strengthening
branding

Strengthening
governance andrisk tolerance

Work style reforms
and promoting healthand productivity
management

Promoting carbon
neutrality andresponding toenvironmental
issuesInvesting in
local communities

Improvingshareholder
returns

Strengthening
sales andservice capabilities

Increasing
productivity

Strengthening
technologicaland developmental
capabilities

Expandingoverseasbusinesses

Performance Trends
Sales(hundred million yen)
1,400

Operating profit(hundred million yen)

Consolidated sales

Consolidated operating profit

180
160

1,200

140

1,100

120

800

100

600

80
60

400

40

200
0

Strengthening synergy within the Group20

FY2016FY2017FY2018FY2021

Previous Mid-Term Plan Target

FY2019FY2020

FY20210

FY2021
Actual110.0 billion yen
116.9 billion yen (○Achieved
Consolidated sales
Increased)or more9 billion yen
Consolidated
Not achieved
6.9
billionyen
operating profit(ｘ Decreased)or more1. Target Values
As the first step toward realizing the Group’s vision for FY2030, as set forth in our Long-Term Management Vision, we have
set the following consolidated performance targets and sustainability targets for FY2024, the final year of our new
medium-term management plan.

2. Major achievements and progress items for each basic policy
Basic Policy

Major Achievements and Progress Items

Productivity improvements
and reinforcement of profitability○ Full-scale operation of fabrication process line for medium duty rear dump truck at Yokohama Plant○ Promotion of service system development (establishment of FE-Auto, etc.)○ Developing of new systems such as the vehicle management support system and refuse truck safety support system○ Creation of a profit base by restructuring overseas business
Creating future revenue sources ○ Construction of new plants to increase production capacity of Hokuriku Heavy Industries○ Expansion of products for the forestry industry and improvement of industry recognition
Improving company qualityand deepening social value○ Acquisition of ISO 9001 certification and implementation of QMS at major plants○ Promotion of in-house production to improve manufacturing and pass on skills○ Promotion of work style reforms (such as improvements to work efficiency, introduction of new work styles,
and promotion of women’s participation in the workforce)

Consolidated Results
Targets

Sustainability
Targets

FY2024FY2024

Sales

Operating margin

billion yen
or moreor more140

New M&A
growth-inclusive

Supplying wood chips using a wood chip
drying container system

SATRAC welding competition

9%

CO2 emissions*

Recycling rate

[Zero landfill waste]

10 % 99.0%
or moreor morepreserved

Body Fabrication line for medium duty rear
dump truck*Output level compared to FY2020 for Kyokuto Kaihatsu Kogyo, Nippon Trex, and Kyokuto Kaihatsu Parking

1920

2. Basic Policy and Strategy
The new medium-term management plan aims to contribute to a sustainable society and increase corporate value throughsustainable growth. The plan sets forth the following four basic policies, and is a solid first step toward realizing thelong-term management vision.

1

Contributing to Solving Social Issues and Seeking to Provide Value

3

Building a Solid Business Foundation That Supports Sustainable Growth and Innovation

By providing products and services that are truly needed by society in a timely manner, we will contribute to theenhancement and sophistication of social infrastructure. At the same time, we will earnestly address and resolve social
issues common to the world, starting with the SDGs.

We will build up human resources and organizations that can respond flexibly to changes in the environment by encouraging
reform and taking on challenges at one’s own volition, while at the same time pursuing work style reform, business
improvement, human resource development, and safety assurance.

Special Purpose Vehicles Division

Environmental Equipment and Systems Division

Strengthening branding

Aggressive development and marketing of productsthat solve social issues

Responding to social needs regarding next-generation
waste disposal■ Expanding sales of safe and secure products using AI and IoT■ Developing technologies and products that contribute to
reducing CO2, etc.

Sustainable business development by strengthening
cooperation from after-sales service to used car sales■ Actively proposing refuse transfer facilities■ Promoting biomass and resource recycling businesses inmoving toward carbon neutrality, etc.

■ Human resource strategies that enable stable operation andlocal job creation■ Establishing a safety management system, etc.

Contributing to the resolution of issues in line withthe situations of countries around the world

Other

Parking Division
Developing systems and services that meet socialand market needs

Strengthening governance and risk tolerance■ Strengthening compliance education■ Expanding management systems(Acquisition of ISO 45001 certification, expansion of the scope of
application of ISO 9001 and 14001)■ Implementing due diligence on human rights■ Enhancing BCP/BCM■ Balancing operational efficiency with information security, etc.

Contributing to providing high-quality essential services■ Expanding service bases■ Strengthening used car sales bases, product development, etc.

■ Actively responding to ODA projects■ Establishing production capacity in order to meet the growing demand■ Setting a purpose and promoting inner branding■ Conducting third-party evaluations and dialogues with stakeholders■ Enhancing and promoting information disclosure, etc.

Work style reforms and promoting health andproductivity management

Solving social issues through consolidated
businesses as a whole

Promoting carbon neutrality and responding toenvironmental issues■ Introducing energy-saving equipment and facilities■ Switching to low-emission power plans■ Reducing waste in the production process■ Developing products related to energy conservation, resource
recycling, and recycling■ Eliminating the use of substances with an environmental impact■ Reducing CO2 emissions throughout the entire supply chain

Investing in local communities■ Establishing systems of cooperation with local governments andorganizations■ Actively participating in local events■ Strengthening collaboration and restructuring the organizational
structure in a way that leads to synergy within the Group■ Promoting our Workstyle Reform Project■ Promoting diversity management■ Holding health promotion events■ Group-wide management and education regarding occupationalsafety and health, etc.

■ Work style reforms that improve employee skills and satisfaction■ Establishing materialities and actively disclosing information,etc.

■ Developing multistory parking equipment that contributes toefficiency and safety improvements■ Cashless and flapless toll parking, etc.

Building a strong and resilient organization in order to realize sustainable Group management

Establishing a system to quickly provide the new values demanded by a sustainable society

42

Productivity Improvements and Reinforcing Profitability
By enhancing synergies among the Group in all business functions, such as sales and services, and development andproduction, and by maximizing the effects of investments and aggressively developing overseas businesses, we will
improve profit margins and create new revenue sources.

Special Purpose Vehicles Division

Environmental Equipment and Systems Division

Expanding sales and strengthening sales capabilities
across a wide range of areas to efficiently generate profits

Actively responding to important and large-scale projects■ Strategic sales toward key products and targets■ Strengthening sales structure and cooperation, etc.

Realizing high productivity, quality, and technologicalcapabilities as the basis for profit generation■ Improving productivity through automation, efficiency,
procurement strategies, etc.
■ Building foundations for high-quality products, etc.

Developing high-value after-sales services that
support customers’ safety and security■ Strengthening highly reliable proposals and sales activities■ Promoting new technological proposals using new systems
and methods, etc.

Building a foundation for future revenue generation■ Actively proposing refuse transfer facilities■ Promoting biomass and resource recycling business, etc.

Stable operation of environmental facilities■ Strengthening cooperation within the Group■ Implementing proposals for preventive maintenance, etc.

■ Promoting servitization■ Strategy for Supplying efficient parts, etc.

■ Proactively receiving orders of renewal projects■ Proactively proposing maintenance and service works, etc.

Cash flow from operations will be used for strategic investments and dividends to accelerate the growth cycle, taking into
account the optimal balance between growth and returns.

Investments to Strengthen the Group’s Management BaseStrengthening main plants in the Special Purpose
Vehicles Division■ Strengthening and rationalizing the production system■ Expanding sites, enhancing facilities, etc.

Enhancing service plants directly operated by
the Special Purpose Vehicles Division■ Strengthening profitability in the stock business■ Improving after-sales service quality, etc.

Strengthening overseas businesses■ Strengthening production and sales capabilities at sites, etc.

Strengthening group-wide R&D

Parking Division
Expanding the mechanical multistory parking
equipment business and enhancing profitability

Optimal Distribution of Cash Flows to Improve Corporate Value

Expanding the scale and profitability of the toll
parking business■ Developing highly profitable business sites■ Securing stable profits by operating large parking lots, etc.

■ Strengthening core technologies and know-how■ Strengthening new product and technology development
systems■ Expanding business, promoting entry into new fields, etc.

Investment and Returns Regarding Social Issues
and Stakeholder Needs
Measures for achieving carbon neutrality■ Introducing renewable energy■ Switching to low-emission power plans, etc.

Efforts to achieve the SDGs, such as social contribution
activities■ Enhancing and promoting information disclosure■ Actively participating in and sponsoring SDGs-related activities,
etc.

Improving shareholder returns■ Implementing growth strategies that contribute to improving
stock prices■ Improving total return ratios■ Stability and continuity of shareholder dividends■ Improving stock liquidity, etc.

Ensuring the safety and health of employees■ Promoting health and productivity management■ BCP measures at business sites and plants, etc.

Effective distribution of capital for sustainable growth of the Group, which supports a sustainable society

Strengthening management efficiency in order to develop together with a sustainable society

21

22

3

A Society Created by the Kyokuto Group

Construction

A Society Created by the Kyokuto Group

Construction-related vehicles demonstrate
their capabilities even in harsh working
environments and contribute to efficient
infrastructure development.

The Kyokuto Kaihatsu Group is working to solve every social• Dump trucks

After Sales Services
Maintaining vehicle safety by providing
repair and inspection services nationwide.

• Concrete pump vehicles

issues in Japan and overseas through manufacturing.

• Stationary concrete pumps

Mining• Repair and parts sales• Distributors• Used car sales• Concrete mixer trucks

At our overseas bases, we have developed
special vehicles for use in mines, quarries, etc., tosupport efficient and safe on-site environments.

• Sprinkler trucks• Dump trucks (for mining)

Repair and parts sales

Dump truck

Biomass
In order to contribute to carbon neutrality andresource recycling, we are engaged in the biomass
business using waste and forest resources.

Dump truck(for mining)
Concretepump vehicle• Biogas plants• Wood pellet air transfer units• Wood chip drying container systems
Log buster

Forestry

Resource Recycling

Contributing to the forestry industry by improving
the efficiency of collection, transportation, andprocessing of lumber from forests.

Designing and constructing recycle facilities
for each type of waste in order to contributeto a recycling-oriented society.

• On-board log busters for forestry vehicles• Recycle facilities• Tower yarders• Vertical type pulverizers

Fire Fighting

The environment

Manufacturing fire engines and equipmentthat operate smoothly in emergencies andprotect people’s lives.

Manufacture and sale of environment-related
vehicles for resource recovery and recycling.
We are also developing technology thatenables refuse collectors to use vehicles safely.

Refuse truck• Material carrier for the firefighting(slide type detachable body trucks)

Wood chip drying container system

Used car sales

Detachable body truck• Refuse trucks• Labor saving devices for fire engines(hose car lift & ladder lift)• Detachable body trucks• Trash dump trucks

Sprinkler truck

Wet salt spreader
Vertical type pulverizer

Road MaintenanceMaterial truck for the firefighting(slide type detachable body truck)

Manufacture and sales of vehicles that
contribute to slip prevention and roadmaintenance on highways and motorways.

Toll parking• Wet salt spreaders• Sprinkler trucks
Recycling facility

Parking
Providing total planning to solve all parking
problems.

Tailgate lifter
Diesel locomotive

Wing truck bodies• Multistory parking equipment
Fuel tank truck

Water tankers

Railways
Manufacture of maintenance vehicles for diesel
locomotives and railway inspections. Contributing
to a safe infrastructure environment.
• Diesel locomotives• Track motor cars

23

Disasters/Emergencies
Water tankers, which provide water to support
lifelines in emergencies, have been delivered todeveloping countries. We are also developing
disinfectant sprayer vehicles to meet the needsof people affected by the coronavirus pandemic.
• Water tankers

Logistics/Labor Saving
Manufacture and sales of logistics vehicles andlabor-saving equipment that safely and efficiently
transport liquids, powders, packages, and otherloads and support the logistics infrastructure.

• Toll parking

DMV(widening multipurpose vehicle)• Drum-type waste storage and dischargeequipment
Multistory parking equipment• Fuel tank trucks• Pneumatic bulk carriers• Tailgate lifter• Dump trailers• Single-vehicle carriers• Rail containers• Wing truck bodies• Temperature control vehicles

DMV (Widening Multipurpose Vehicle)
Manufacture and sales of vehicles that can beused for various purposes, such as a command
post or simple lodging during a disaster.
• DMV (widening multipurpose vehicle)• Low-floor semi trailers

24

3

Business Division Stories

Strategies for Each Business

Creating the Next Generation of Special
Purpose Vehicles That Will Help Solve Social
Issues around the World

Special Purpose Vehicles Division
We manufacture and sell special purpose vehicles (working vehicles) that are used in fields such as“construction,” “logistics and labor-saving,” and “the environment.” We also offer repairs, after-sales
service, used vehicle sales, and more.

Improving Transport Efficiency throughTechnology and Contributing to a Carbon
Neutral Society

Future Market Conditions (Potential Risks and Opportunities)
Social Issues

Risks and Opportunities

Climate change• In order to achieve carbon neutrality, the demand for products that contribute to a decarbonized society, such as special
purpose EVs, will increase.
• Due to the intensification of climate change-related disasters and the deterioration of social infrastructure, public investment
related to national resilience, such as disaster prevention and mitigation, will expand over the long term, and demand forspecial purpose construction vehicles will remain steady.
• The mining market will remain strong as demand for nickel increases due to the shift of automobiles to EVs. In addition, thedemand for tank trucks for watering and water supply will increase due to drying and drought in urban areas caused by
global warming as well as disaster reconstruction assistance.

BCP(business continuity)• The supply chain continues to be unstable as a result of COVID-19, and production and sales activities are disrupted due toemployee illness.
• Production and sales will be affected by a global shortage of semiconductors and rising steel and materials prices.

Manpower shortage• Due to labor shortage issues, the users of special purpose vehicles, including drivers, are diversifying, and the need for
product safety in particular is increasing.
• Demand for heavy duty vehicles such as trailer continue to grow in the logistics industry due to a shortage of drivers.

Long-Term Strategies❶ Develop products to realize carbon neutrality in the value chain and establish production systems for special purpose EVs,
lithium-ion battery railcars, and hybrid railcars*Efficient logistics also contribute to carbon neutrality❸ As users continue to diversify, create products that can be used safely by everyone through AI and IoT❹ Work to reduce user burdens and extend the life of products that promote the 3Rs by expanding service bases

Special Purpose Vehicles Division Performance Trends (Including Overseas Business Division)
Sales

Operating profit

99,551

98,571

120,000
100,000

97,786

94,888102,076

there was an impact on earnings as a result
production

stagnationdue

In recent years, India has experienced remarkable economic
development, and the development of social infrastructure has
become an urgent issue. As a result, demand for rear dump
trucks and particulate transport trailers is increasing. In
Indonesia, the mining market is expected to be revitalized.
We will continue to actively listen to local issues and needs andwill contribute to the development and expansion of infrastructuretoas well as higher prices for steel products.

60,000Our Group aggressively secured orders

40,0008,295

while taking measures against infectious
5,615

6,417

6,880

4,481

2019
(Ended Mar.)

2020(Ended Mar.)

2021(Ended Mar.)

2022(Ended Mar.)

0

2018(Ended Mar.)diseases,

andpromoted

productivity

improvements through the introduction of
new products and the streamlining ofproduction facilities.

25

Launched in 2020, the “vehicle management support system” isan IoT system that supports customer vehicle management. By
accumulating data on operations and functionality and proposing
timely maintenance and replacement of consumables, theproduct can be used more safely. Furthermore, the refuse truck
safety support system installed in refuse trucks continues to be
popular. The need for safety and convenience is expected toincrease as a result of the labor shortage and the diversificationof human resources. As a company that supports society, we willcontinue to develop products that are safe and easy for everyone
to use.

semiconductor shortages and other factors,

80,00020,000Although domestic demand remained firm,ofAiming for Special Purpose Vehicles That
Can Be Safely Used by Anyone

Establishing a System Capable of
Responding to Changes and Tackling Global
Social Issues❷ Respond to the need for larger vehicles, which combats driver shortages and offers more efficient logistics*(million yen)

The role and responsibility of the automobile industry inrealizing a carbon neutral society is enormous. In the Special
Purpose Vehicles Division, we have been promoting
hardware-based measures such as switching to energy-saving
equipment and insulating buildings. Currently, we are focusing
our efforts on two major areas: reducing CO2 emissions in the
manufacturing process and improving the environmental
performance of our products.
For example, with “HARDOX,” our large rear dump truck withabrasion-resistant steel plating, we have succeeded in reducing
weight while maintaining durability. In addition, the use of heavy
duty trucks, such as trailers and double-coupled trucks,
provides value to both the environment and society, improving
transportation efficiency while also addressing the growing
shortage of drivers in the logistics industry, which is a serious
issue. The need for larger and lighter vehicles is expected toincrease in the future. We are working to strengthen synergies
within the Group by, for example, conducting technicalexchanges with Nippon Trex, which has extensive experience
with large vehicles. In addition, the shift to electric trucks (EVs)and fuel cells (FCVs) is in full swing. It is necessary to obtain
information quickly, promoting product design and production
ahead of other companies.

in developing countries. On the other hand, global demand forsemiconductors has increased, and supply chains have been
disrupted by COVID-19 pandemic and regional conflicts. The
diversified purchases that the Group has pursued in order todiversify risk have been successful, and have not lead to any
major problems. We will continue to monitor trends in the supplyof truck chassis, which has been affected by the semiconductor
shortage, and maintain a system that allows us to respondflexibly to changes.

Teruyuki Kizu
SPV Division Director,
Director, Associate Senior
Executive Officer,
Kyokuto Kaihatsu Kogyo,Co., Ltd.

26

FY2021 Topics*Some results for FY2022 are also shown.

Toward the Realization of a Safe Refuse Collection Service
In November 2021, Kyokuto Kaihatsu Kogyo delivered 31
units of refuse trucks equipped with refuse truck safety
support systems to Fukaya City in Saitama Prefecture.
The refuse truck safety support system is capable of detecting“human” with high accuracy using high-performance cameras
and unique AI image recognition technology.
Through the delivery of the refuse truck safety support
system, we are contributing to the establishment of a safe
refuse collection service by preventing accidents involving
loading equipment during refuse collection.

Support for Safe Vehicle Use
In January 2022, Nippon Trex opened the Trex Service
Center Kyushu. The center repairs and inspects various
trailers, wings, and van truck bodies, and provides
community-based services in the Kyushu region. We arestrengthening our service system to ensure the safe andlong-term use of vehicles that are active in the region.
One Story

Tailgate lifters play an active role in cities  ᖺ  ᭶  ᪥ࡼࡾᏳ඲࣭Ᏻᚰ࡞సᴗࢆᐇ⌧ࡍࡿ࢜ࣉࢩࣙࣥࣃࢵࢣ࣮ࢪ㸟ྥࡅ࡟ࠕࢭ࣮ࣇࢸ࢕ࣃࢵࢣ࣮ࢪࠖࢆ᪂タᐃ
Tailgate Lifters Contribute to a Logistics
Systemࢸ࣮ࣝࢤ࣮ࢺࣜࣇࢱࠕࣃ࣮࣡ࢤ࣮ࢺ®㸦㻳 ᆺ㻯㻳 ᆺ㸧ࠖThat Anyone Can Use Safely

ᴟᮾ㛤Ⓨᕤᴗᰴᘧ఍♫㸦ᮏ♫㸸රᗜ┴すᐑᕷ⏥Ꮚᅬཱྀ୎┠␒ྕ♫㛗㸸ᕸཎ㐩ஓ

Refuse truck safety support
system body (in cab)
Refuse truck safety support
system indicator lamp

High-performance camera(Can also be used as a back eye camera)≉⿦㌴஦ᴗࠊ⎔ቃ஦ᴗࠊࣃ࣮࢟ࣥࢢ஦ᴗ㸧ࡣࢸ࣮ࣝࢤ࣮ࢺࣜࣇࢱࠕࣃ࣮࣡ࢤ࣮ࢺ㸦㻳ᆺ࣭㻯㻳ᆺ㸦ͤ㸧㸧ࠖྥࡅࡢࣃࢵࢣ࣮ࢪ࢜ࣉࢩࣙࣥ࡜ࡋ࡚ࠊ᪩ᮅ࣭ኪ㛫ࡸᬯ࠸ሙᡤ࡛ࡢᏳ඲࣭Ᏻᚰ

࡞సᴗࢆࢧ࣏࣮ࢺࡍࡿࠕࢭ࣮ࣇࢸ࢕ࣃࢵࢣ࣮ࢪࠖࢆ᪂ࡓ࡟タᐃ䛧䚸㻞㻜㻞㻝ᖺ㻝㻜᭶㻝㻝᪥䜘䜚Ⓨ኎

Trex Service Center Kyushu

Next-Generation Locomotives
Contributing to a Decarbonized Society
In January 2021, Hokuriku Heavy Industries received anorder for two next-generation lithium-ion battery
locomotives powered by lithium-ion batteries and motors.
(Delivery is scheduled for one in March and one in April
2023) The Group is contributing to the formation of adecarbonized society by promoting the production ofvehicles that do not use fossil fuels in the railway sector.

䛔䛯䛧䜎䛩䚹㻌 㸦ͤ㸧㻳ᆺ㸸ᚋ㒊᱁⣡ᘧ࣭㻯㻳ᆺ㸸ᗋୗ᱁⣡ᘧ
A Logistics Industry in Need of Improved Transportation
Efficiency࠙⤂௓ື⏬ࢆබ㛤ࡋ࡚࠾ࡾࡲࡍࠚ
ࢭ࣮ࣇࢸ࢕ࣃࢵࢣ࣮ࢪ㸦ࣃ࣮࣡ࢤ࣮ࢺ㻳 ᆺྥࡅ㸧
KWWSVZZZN\RNXWRFRPPRYLHQSJFBJKWPO
From the aspect of safety and security, the demand for personal delivery has been on the risedue to the coronavirus. In addition,
electronic commerce (EC) is becoming more familiar as information technology advances, andits demand continues to increase as well.
㻌On the other hand, in the logistics industry, which supports commercial transactions, a shortageof drivers and the aging of society are㻌serious problems, and prompt solutions are needed.
㻌
Our Group is actively engaged in the field of efficient transportation in order to support the economy
that supports people’s livelihoods and㻌㻌
the logistics that underpin it.
㻌䛂䝟䝽䞊䝀䞊䝖㻌 㻳䊡㻝㻜㻜㻜㻌 䝍䜲䝥 㻹䛃㻌 㻌䠄䝉䞊䝣䝔䜱䝟䝑䜿䞊䝆⿦╔௙ᵝ䠅㻌Aiming for Tailgate Lifters That Can Be Used Safely
and Securelyࢭ࣮ࣇࢸ࢕ࣃࢵࢣ࣮ࢪ㸦ࣃ࣮࣡ࢤ࣮ࢺ㻯㻳 ᆺྥࡅ㸧

Vehicles delivered to Fukaya City(equipped with a refuse truck safety support system)

A Horse Transport Vehicle That Meets
the Needs of the Local Community
In December 2020, Shinko Automobile received an order from
Northern Farm (Yufutsu-gun, Hokkaido), a company thatraises racehorses, to install a horse transport for two horses.
(Delivered in February 2022)
The rear of the vehicle is equipped with a ramp that allows
horses to board safely, windows are installed at the eye levelof horses so that they can be transported comfortably, andequipment such as cushioning materials and anti-slip rubber
are installed inside to prevent injuries.
We will continue to flexibly respond to the needs of local stakeholders
and contribute to the development of local communities.

New lithium-ion battery locomotive (image)Improving the Environment of Developing
Countries through Public-Private Partnerships
In July 2022, two Kyokuto Kaihatsu Kogyo-made refuse
trucks, which had operated in the city of Nishinomiya, Hyogo
Prefecture until their service periods ended, were serviced by
FE-Auto and then donated to the city of Honiara,
Guadalcanal, Solomon Islands by Kyokuto Kaihatsu Kogyo incooperation with Nishinomiya. This is just one example of the
public and private sectors working together to build
relationships in local communities and contributing to theimprovement of environmental health in developing countries.

The Kyokuto Kaihatsu Kogyo tailgate lifter is a product that reduces the amount of labor 㻌
required for loading and unloading heavy loads by using a lifting platform attached to the 㻌㻌rear of the truck bed. Tailgate lifters are widely used in the logistics industry because 㻌㻌they enable safe and efficient handling of goods.
Amid growing demand, we launched a new “safety package” in October 2021 as an 㻌㻌option for tailgate lifters (gate and contained gate types) to ensure the safe use of 㻌㻌distribution vehicles by everyone.

KWWSVZZZN\RNXWRFRPPRYLHQSJFBFJKWPO 

Tailgate
lifter䛂䝟䝽䞊䝀䞊䝖㻌
㻯㻳㻝㻜㻜㻜㻰㻹䛃㻌 㻌䠄䝉䞊䝣䝔䜱䝟䝑䜿䞊䝆⿦╔௙ᵝ䠅㻌
with safety package䈜䝪䝖䝮䝇䝖䝑䝟ཬ䜃䝪䝖䝮䝇䝖䝑䝟㉥Ⰽሬ⿦䚸䝥䝷䝑䝖䝩䞊䝮䜽䝑䝅䝵䞁㻌㻌 㻌 䜹䝞䞊䛿䝉䞊䝣䝔䜱䝟䝑䜿䞊䝆䛻ྵ䜎䜜䜎䛫䜣䚹䠄ู㏵䜸䝥䝅䝵䞁䠅㻌





Improving the Safety of Tailgate Lifters
Tailgate lifters are also used at night, and so the challenge to improve safety in dark places has been undertaken.
LED lights and reflective materials were used to make it easier for those around the equipment to grasp thesituation while working. In addition, red paint and reflective tape have been applied on the caster stoppers toenhance safety during cargo handling. These safety devices have been packaged together and made into an
optional “safety package.” We will continue to develop products that contribute to the safety and security of
Hideki Kiyofuji
Kyokuto Kaihatsu Kogyo Nagoya Plant
our customers.
Tailgate Lifter Center Design Division

Customer Feedback

Cargo Can Now Be Handled Safely Even in the Dark
Our company places the utmost importance on safety during cargo handling operations. Vehicles equipped with the“safety package” have LED lights on the platform and caster stoppers to improve visibility not only for workers but
also for everyone in the surrounding environment. In addition to being able to carry goods safely even in dark
unloading areas such as station buildings, the fall prevention angles on the sides of the platform eliminates theMr. Hiroshi Iwabuchi
Fresh Logistics
risk of cargo falling, allowing workers to work with peace of mind.
Horse transport vehicle

27

Donated refuse truck

Corporation

28

3

Business Division Stories

Strategies for Each Business

Environmental Equipment and Systems Division
We are developing businesses related to resource recycling, such as the development ofwaste pulverizers and the design, construction, and operation of recycle facilities, as well as
the biomass business using waste and forest resources.

Future Market Conditions (Potential Risks and Opportunities)
Social Issues

Risks and Opportunities• Despite the considerable impact of a decreasing population and accompanying mergers of municipalities, bids for recycle
facilities are expected to remain stable to a certain extent.

Declining population,
declining birthrate,
and aging population• As waste treatment becomes more widespread, the demand for transfer facilities installed between collection points andtreatment facilities will increase in order to collect refuse efficiently.
• From the viewpoint of risk diversification and regional revitalization, smart community development using small-scale clean
power generation as an energy source is progressing, and the demand for projects that contribute to the utilization ofregional energy will increase in the future.
• Due to the shortage of land at final disposal sites, especially in urban areas, the public demand for the 3Rs (Reduce,
Reuse, Recycle) is increasing, and recycling plants require high sorting accuracy.

Refuse issues• The number of lithium batteries, which can generate heat and ignite, is on the rise, and so equipment that does not cause
fires at recycle facilities is required.
• Increased rainfall, etc., due to global warming will increase the risk of landslides, landfalls, etc., due to abandoned forests inmountainous regions, increasing demand for biomass-related products that contribute to the use of timber from forest
thinning.

Climate change

and regions.

Long-Term Strategies❶ Amidst population decline and regional depopulation, propose equipment development and solutions tailored to the needs ofeach local government❷ Develop technologies related to biomass energy suitable for self-sustaining and distributed energy❸ Develop highly safe facilities and equipment for a diverse workforce

Environmental Equipment and Systems Division Performance Trends(million yen)

Sales

Operating profit

11,028

11,647

15,00012,952
11,473
8,457

5,000

1,522

2,581

1,813

1,994

2,098

0

2018
(Ended Mar.)29

by Entering the Biomass Business
Making the Biomass Business a New Pillar of
Carbon Neutrality
The Environmental Equipment and Systems Division has been
conducting business based on the two pillars of “design andconstruction” and “operation and maintenance” of recycle
facilities. Since Mori Plant joined our Group in 2016, theCompany has entered the biogas power generation business byutilizing its extensive experience and technology for converting
animal manure into energy.
We are also making efforts to make effective use of local forest
resources. We are proposing the use of our wood chip drying
container system to dry pruned branches and wood chips using
waste heat that were previously unused and discarded, and touse those as fuel for boilers in hot bath facilities in golf courses,
nursing homes, etc. Reducing the use of fossil fuels such as
heavy oil in boilers not only contributes to carbon neutrality, butalso promotes resource recycling and revitalizes local
economies.

Providing Value for Next-Generation Waste
Treatment by Combining Technologies andSupplementing Human Resources
The Environmental Equipment and Systems Division aims tofurther expand its business and improve its position in theindustry by 2030.
The key to achieving this goal is not only to improve thefunctionality of our recycle facilities and thoroughly maintain andmanage said facilities, but also to promote technological
proposals that take advantage of our know-how. In order to build
a business structure that can respond to local community issues,
such as the biomass business and transfer facilities mentioned
above, we will further strengthen synergies among the Groupand promote technological improvements. In addition, we willcontinue to provide new value to meet the needs of the next
generation of waste treatment by increasing the hiring rate offemale engineers and mid-career employees, and by ensuring adiverse and unbiased range of human resources, taking into
account perspectives not seen before in the industry.

Efficient Refuse Collection through theIntroduction of Transfer Facilities (Satellite
Centers)• Energy shifts in the context of carbon neutrality and the policies of resource-rich countries will increase energy costs year by
year, and private power generation using solar and other natural resources as energy sources will increase in companies

10,000Aiming to Improve Value as a Community Partner

2019(Ended Mar.)

2020(Ended Mar.)

2021(Ended Mar.)

2022(Ended Mar.)In recent years, construction of facilities
has progressed steadily, and both sales
and operating profit have stabilized.
Operatingprofitalso
increasedcompared to the previous fiscal year
thanks to solid performance in stockbusiness fields such as operation andmaintenance, which are one of theGroup’s important revenue bases.

Our Group installed its first recycle facility in Matsudo City,
Chiba Prefecture, in 1970, and since then has constructed
about 200 recycle facilities nationwide. Since the sorting
method and the nature and amount of waste generated varies
from region to region, the system is designed to meet the needsof local governments. In recent years, the consolidation ofrecycling and incineration facilities has been progressing due tomergers of local governments caused by population decline andoutflow. The consolidation of facilities has advantages in termsof operating efficiency, but losses are increasing in terms ofwaste collection. One answer to this problem is transfer facilities(satellite centers).
First, we collect refuse generated in homes and offices using
small collection vehicles and transport it to a transfer facility. A
certain amount of refuse accumulated in the transfer facility isthen transported to a treatment facility using large vehicles.
Installing a transfer facility while keeping a balance
between the amount of waste and the distance to betransported not only reduces work, but also reduces
CO2 emissions.

Noboru Horimoto
Environmental Division
Director, Director,
Associate Senior Executive
Officer Kyokuto Kaihatsu
Kogyo,Co.,Ltd.

30

FY2021 Topics*Some results for FY2022 are also shown.

Initiatives for Local Production and Consumption of Energy
The wood chip drying container system uses unused waste
heat from factories and facilities to dry wood chips, which areused as raw materials for biomass power generation.
In order to realize a decarbonized society and an independentand decentralized energy society, Kyokuto Kaihatsu Kogyo is
conducting a NEDO (New Energy and Industrial Technology
Development Organization) demonstration project using thewood chip drying container system in Kobe City, Hyogo
Prefecture.

Overview of the demonstration model❶ Convert hot water generated by a dry-chip boiler
to hot air using a heat exchanger❷ The hot air is fed into a wood chip drying container
system to produce dry chips❸ Part of it is supplied once more to the chip boiler
for the drying heat source❹ The surplus is supplied as fuel for chip boilers
installed in neighboring facilities

Contributing to the Recycling of Plastic Waste
In recent years, the problem of marine plastics, which is plastic
waste that has not properly been disposed of and which flows
into rivers and affects ecosystems, has become a social issue.
Kyokuto Service Engineering received an order from Otsu
City for operation management of plastic facilities* and started
operation in April 2022.
Recycled plastic waste is mainly recycled as materials forpallets for logistics, park benches, artificial trees, etc.
We will continue to contribute to the conservation of
ecosystems in the rich natural environment near Lake Biwa.

Food Recycling Plant

One Story*Opened in February 2007, this is a plastic container recycling
facility(constructedbyKawasaki

Environmental

Plant

Future Clean Energy Generated

Engineering) at the Northern Clean Center in Otsu City.

from Food Waste
Large Quantities of Food Are Disposed of as Garbage
In Japan, as much as 6.12 million tons* of food is thrown away every year, which is equivalent to 1 bowl of rice per person every
day.In the food retail and food service industries, in particular, a large amount of waste is generated due to remains from cooking,leftover food, and expired food. However, the recycling rate remains at around 50%. The reason for this is that there are few facilities
that can separate packaging.
*Ministry of Agriculture, Forestry and Fisheries FY2017 estimated value

Plastic container recycling facility

Kobe Lab Drying Center

Creating Farms That Are Friendly to
Animals and People Using IoT
In May 2021, JA Miyazaki Keizai Ren started operation of apurification and deodorization/disinfection facility at the Yamada
No. 2 Fattening Farm for Pig Farming that incorporated Mori
Plant’s membrane treatment equipment.A wastewater
treatment remote monitoring system utilizing IoT technology
collects and grasps information on the operation status ofwastewater treatment, “visualizing” the data. Deodorization anddisinfection equipment contributes to the sanitary managementof piggeries. This has made the farm convenient and safe for
employees as well as the pigpens themselves.

Realizing a Recycling-Oriented Society
through Highly Efficient Refuse Collection
As the population decreases and local economies shrink,municipalities will expand their refuse disposal areas.
In June 2022, we received an order from Kitahiroshima City,
Hokkaido, for the construction of a combustible waste transfer
facility, which contributes to the efficient and economicaltransport of refuse.
By collaborating with recycle facilities that have been
operating for a long time, the project is expected to be an
initiative toward simultaneously realizing a recycling-oriented
society and a sustainable local economy.
Large-scale heat recovery
facility

Relay transfers usinglarge vehicles

Contributing to the Future with Biogas Plants
The Food Recycling Plant, which was ordered by Biodiesel Okayama Co., Ltd., of the DOWA Group and was completed in January
2021, converts food waste into renewable energy. In this facility, packaging containers such as lunch boxes are crushed by aseparator and can then be separated from food. The sorted food is undergoes a methane fermentation process, and the biogas
generated there is burned to generate electricity. Our Group’s biogas plant, which effectively utilizes conventionally discarded foodwaste to generate clean electricity, is making a significant contribution to the creation of a recycling-oriented society for the future.

Biogas Plants Utilizing the Crushing and Sorting Technology of
Recycle Facilities
In biogas plants, which use food leftovers as raw materials, organic materials is separated from containers
and packaging (unsuitable for fermentation) as a pretreatment process. The separated organic materials
is then crushed and converted into raw materials for biogas power generation, and methane fermentation(biogasification) is performed. This technology is based on the crushing and sorting technology that wehave cultivated in our recycle facilities up to now, and we can propose facilities that meet the needs of ourcustomers and then proceed with construction. We will continue to work together with our customers tocontribute to a carbon neutral society.

Yukihiko Hatanaka(Photo: center right)
Kyokuto Kaihatsu Kogyo, Co., Ltd.
Environmental Equipment and Systems
Division
Environmental Solutions Department

Customer Feedback

Appreciation for Your Polite Dialogue and Response

Overview of the Yamada 2nd Fattening Farm for
Pig Farming demonstration

31

Image of a refuse transfer facility

Concentrate each region’s
combustible waste at transfer
facilities

After thorough discussions, we were able to incorporate our ideas and requests into the plant and proceed withconstruction. As a result, we were able to respond quickly to various issues without any major initial problems, andthe facility is operating smoothly. Thank you very much.
Mr. Atsushi Santo
Biodiesel Okayama Co., Ltd.

32

3

Business Division Stories

Strategies for Each Business

Parking Division, etc.
We manufacture and sell mechanical multistory parking equipment for condominiums and operate toll
parking facilities.
We also lease some of our real estate holdings, operate mega solar power plants, and provide damage
insurance agency services.

Future Market Conditions (Potential Risks and Opportunities)
Social Issues

Risks and Opportunities• In order to realize carbon neutrality, the adoption of EVs is advancing, and the demand for EV chargers in parking lots is

Climate change

increasing.
• The number of private cars will decrease due to rising energy costs and population decline.

• Against the backdrop of an aging and declining population, the development of compact cities, which includes living
environments, welfare, and transportation, is progressing.
• The concept of universal design in facilities and equipment, with the social participation of various people, such as theelderly, the disabled, and foreigners, will be required.

Lifestyle changes• Subscriptions such as on-demand transportation and car sharing will gradually become popular as a means oftransportation in areas that do not rely on private cars.
• Cashless settlements are becoming more common.

Traffic congestionin major cities indeveloping countries

congestion in urban areas to become more severe and increasing the demand for multistory parking equipment and toll
parking.

❶ Develop efficient and highly safe multistory parking equipment❷ Promote cashless and barrier-free toll parking❸ Spread multistory parking equipment overseas and develop equipment to meet local needs

Parking Division, Etc. Performance Trends(million yen)

7,087

7,035

7,189

Sales

Operating profit

7,131

7,261

6,000

4,000

2,000

Establishing Stock Business through
Maintenance Business
Our Group has sold about 2,900 units of mechanical multistory
parking equipment. We have positioned maintenance activities
as a core of our stock business and have included it in our
long-term vision. That’s where IoT comes in.
For example, the “remote monitoring system” currently underdevelopment is capable of proposing early recovery of problems
and proper maintenance through constant monitoring with IoT.
In addition, the vast amount of information accumulated can beutilized in the development of the next system.
The remote calling system, which we have started receiving
orders for as the first attempt in the industry, is also an IoT
based initiative. This product has cleared strict standards,
allowing remote control from a slight distance to call the car,which up to now had been based on direct operation for safety
reasons. I am confident that the convenience of multistory
parking equipment will continue to improve through the active
use of IoT.

• As the population of developing countries increases, the number of cars in the country also increases, causing traffic

Long-Term Strategies

8,000

Pursuing Added Value in Parking andContributing to the Realization ofa Next-Generation Mobility Society

1,155

1,161

1,142

1,140

1,143

0

2018
(Ended Mar.)2019(Ended Mar.)

2020(Ended Mar.)

2021(Ended Mar.)In the mechanical multistory parking
equipment business, we continued tofocus on our stock business that
includes renovation and maintenance,
as well as on our efforts to win orders for
new properties.

2022(Ended Mar.)

The toll parking business experienced agradual improvement in occupancy rates
from the decline caused by COVID-19.

exit while reducing the construction and maintenance burdens.
Cashless payment machines, which do not require cash, notonly eliminate the need for users to prepare coins, but are also
hygienic as they are non-contact. There are also advantages interms of operation, as in addition to eliminating coin problems
such as jamming and shortage of coins, it also eliminatescollection work, making usage and management safer andsmoother. By listening to the opinions of users, exchanging
opinions with equipment manufacturers, and continuing to make
improvements, we are striving for a relationship where landowners feel a sense of trust precisely because we are Kyokuto.

Strengthening Ties with Stakeholders andDeveloping Business as a Third Pillar
We aim to further expand the business scale of both themechanical multistory parking equipment business and the toll
parking business by 2030. It is important to strengthen
relationships with stakeholders, not just to reach target figures.
In order to respond appropriately to the changing needs ofsociety, we will emphasize dialogue and strengthen synergies.

New Multistory Parking Equipment
Supporting Carbon Neutrality
An increasing number of inquiries have been made in recent
years regarding the retrofitting of charging equipment to existing
multistory parking lots for condominiums. The spread of electricvehicles (EVs) is the reason for this, but it is not something thatcan be completed simply by installing devices. There arevarious issues to be addressed, such as a system for managing
the power capacity of the condominium and charging order, anda system for settling charging costs. Therefore, we have set up
a specialized team who are working to comprehensively resolvethese issues. By taking measures to support the spread of EVs,
we aim to establish a solid position as a pillar of our business.

Toll Parking That Is Chosen by Responding
to the Needs of the Times
In the toll parking business, we have put a system inplace that enables smarter operation than ever before.
One of these is the “flapless” system, which uses
sensors and cameras to detect when a car isentering or exiting instead of the car stop flap
plate (lock plate), enabling smooth entry andHiroaki Kuriyama
Representative Director,
President,CEO
Kyokuto Kaihatsu Parking,Co.,Ltd.

33

34

3
FY2021 Topics

Business Division Stories

Strategies for Each Business

Overseas Business Division*Some results for FY2022 are also shown.

We have established production plants in China, India, and Indonesia, and sales bases in
Malaysia, Vietnam, Australia, New Zealand, and more, and are contributing to the resolutionof various issues around the world.

Future Market Conditions (Potential Risks and Opportunities)
Social Issues

Solving Transport Challenges
in Developing Countries

Toward Toll Parking
That Is Easy for Everyone to Use

In August 2021, we delivered large-scale multistory parking
equipment to Indonesia.
In addition to the increasing use of automobiles, theshortage of parking lots in urban areas in Indonesia has
become a serious problem due to the increasing
population.
Multistory parking equipment that maximizes the use oflimited space contributes to reducing congestion andconserving the landscape in urban areas.

In FY2021, the toll parking business, which is responsible
for the effective use of land and solving transportation
issues in urban areas, opened 2,274 new parking spaces
across 58 properties.
We are also working to make toll parking safer and moreconvenient for everyone by supporting cashless payments
and flapless parking that does not have a flap plate (lockplate), which may cause accidents.

Risks and Opportunities• Japan’s ODA budget will remain at the same level as the previous year, and export demand to overseas countries will

Rapid economic
growthremain firm.
• In the Southeast Asian region, as urban areas expand due to population growth and economic development, thedevelopment of social infrastructure advances, and demand for civil engineering special purpose vehicles increases.
• Economic development will raise labor costs and reduce the cost benefits of manufacturing parts for Japan in Asia.

Long-Term Strategies❶ Establish local production bases and expand production capacity to meet the strong demand❷ Develop products overseas through ODA and other forms of international cooperation❸ Expand parts procurement functions for Japan

FY2021 Topics
Multistory parking equipment installed in Indonesia.
The four-level structure allows for a total of 76 cars.

Building Vehicles to Meet the Needs of Each Country

Flapless parking lot

Toward More Convenient Multistory Parking Equipment
The Parking Division has developed a remote calling (remote control) system for mechanical multistory parking equipment utilizing
IoT technology, and has begun receiving orders.
In the past, it was mandatory to operate the equipment in front of the control panel for safety reasons when loading or unloading

Concrete mixer for Taiwan

vehicles, but this system has made it possible to operate it from a remote location, improved user convenience.

In India, where construction demand is growing rapidly, in FY2021 SATRAC developed andsold one of the largest bulk tank trailers in India (total length 13 m, gross vehicle weight 60tons), capable of carrying 55m3. This enabled SATRAC to simultaneously maximize thetransportation volume and reduce the weight of the vehicle. This contributes to reducing CO2
emissions while also saving resources and lowering costs in the manufacturing process.The
use of compressors made in Japan ensures that the product can be used safely and stably.

Customer Feedback

India’s largest bulk tank trailer

Making Effective Use of Inherited Land
By leasing my inherited land and buildings (demolished) as toll parking, I can earn a stable income every monthwhile letting you manage the land, leaving me with peace of mind. Above all, I am very grateful that I did not sell
my inherited land.
Mr. A from Hyogo
Land owner

Dump truck for coal mines

35

In February 2022, Kyokuto Kaihatsu (Kunshan) Machinery obtained an order for 100 concrete
mixers for Taiwan. The company’s concrete mixers have been exported around the world,
mainly to Southeast Asia and Australia, contributing to community development in thosecountries. In addition to conventional performance, this concrete mixer for Taiwan has been
designed to meet the needs of the customers through changes such as weight reductions andimproved operability. To meet these needs and the unique specifications of Taiwan, we haveproactively adopted aluminum materials, installed sewage tank equipment, and more.

In Indonesia, there is an increasing need for dump trucks for large-volume mines. The ability totransport large quantities in one trip is an important quality and capability of trucks. To meetthese needs, in FY2021 Kyokuto Indomobil Manufacturing Indonesia and Kyokuto Indomobil
Distributor Indonesia developed and launched an ultra-large coal transport rear dump truck.
This dump truck overcomes the difficulties of increasing the size of the body while ensuringperformance that can cope with the increased risk of vehicle rollover and severe roadconditions, contributing to improving the work efficiency of customers.

36

4

Activities of the Kyokuto Group

Quality Management System

Passing on Skills[Local Communities]

A quality management system based on ISO 9001 is in place

Sustainable“Community Development”

We will further expand the scope of application of this system

We hold seminars and training on various technologies toimprove quality and pass on skills.
We also conduct a “welding skills exam” and a “painting skillsexam” for workers engaged in product manufacturing to ensure
the quality of important parts.
The exams, which are conducted in the form of a contest, also
motivate workers to improve their skills.

at the main bases of the Special Purpose Vehicles Division. In
FY2021, the Road Service Department was newly certified.
moving forward.

Responding to Customer Feedback
Questionnaires are used by each Group company to check
whether they are fulfilling their responsibilities to the utmost
through their products and services. We will continue toexpand the scope of these surveys.

In order to provide products and services for sustainable community development,
coexistence with local communities is essential.
In order to meet the needs of people in the community, the Kyokuto Kaihatsu Group is
working to improve its technology and service capabilities and pass on the skills that
support them.

TrustedManufacturing

In FY2013, the Group established the Kyokuto Kaihatsu GroupEngineers Association to promote mutual growth and nurture
younger employees.

SATRAC customer satisfaction survey

Participatingin LocalCommunities

Trusted Manufacturing

Pipe welding skills exam

It is our Group’s responsibility to continuously provide better and safer products andservices for communities. We are promoting various initiatives to build a robust production
system that is not affected by changing social conditions.

Kyokuto Special Automobile Trading (Shanghai) quality inspection

Improving Quality and Passing on Skills

Improvement and Enhancement of Services

Creating an Environment for Better Products-Example Initiatives for the Three “Don’t” Activities-

In order to continue to produce products that meet customer
needs, we are promoting various activities through our
in-house project entitled “Q-Pro (Quality Project).”• Promoting completion in one’s own processes
Strictly adhering to the principle of “settling any defects that
occur in the process.”

Since FY2020, we have been engaging in our Three “Don’t”
Activities (don’t manufacture, don’t pass on to the following
processes, and don’t accept defective products from previous
processes) in order to achieve higher levels of quality andefficiency.
In order to properly comply with internal standards, we are also
striving to foster an open organizational culture.

• Implementation of leveling meetings
Practicing “The Three Actuals*” in order to stabilize quality andpass on skills.
*The Three Actuals ... The concept of observing the “actual product” at
the “actual site” in order to see the “actual
situation” before solving a problem.

Service Bases

Service Training Courses

In order to ensure the long and safe use of products delivered
to customers, we have established service bases throughout
Japan and provide a full range of after-sales services.

Training on repair and maintenance, including “producthandling,” “safety,” and “technology,” are held for customers
and designated repair plants.
We also provide education for acquiring certifications within theGroup.

In FY2021, we expanded our stock business by establishingand renewing the following facilities, strengthening our service
system.
◆ Nippon Trex, Trex Service Center Kyushu: Newly established◆ FE-Auto Gifu Service Center: Relocation and expansion• Development of skill maps
“Visualizing skills” in order to reliably respond to diversifying
and ever more sophisticated customer needs.
Passing down service skills at Inoue Motor

Achieving Quality That Continues to Be Appreciated by Customers
The Three “Don’t” Activities are those undertaken by all major domestic plants of Kyokuto Kaihatsu Kogyo to improve
quality. As part of our activities to ensure employees “don’t manufacture defective products and don’t pass on defective
products to the following process,” related departments regularly gather together to conduct quality leveling meetings
while checking actual products. For “don’t accept defective products from previous processes” activities, we checkthe products delivered from the previous process, and if there are any defects, we use the “Not Accepted Sheet” toprovide feedback to the previous process. We also conduct quality improvement activities throughout theplant.Two years have passed since the start of the Three “Don’t” Activities, and the quality awareness of eachNobuaki Kinugawa
employee has changed significantly. In the future, we will continue to evolve our quality improvement activities,
Kyokuto Kaihatsu Kogyo
incorporating “don’t allow for a recurrence of defective products” activities as the “fourth don’t” in order toYokohama Plant
contribute to society by aiming for products that continue to be chosen by customers.
Manufacturing Department

37

Maintenance Packs

FE-Auto Gifu Service Center

Sudden break down and trouble lead not only to loss tocustomers but also to secondary disasters that adversely affectsurroundings.
To prevent break down and trouble during product use, we
provide our customers with “maintenance pack” and “perfectmaintenance pack” services, which provide periodic
inspections and maintenance at a fixed price.

38

4

Activities of the Kyokuto Group

Participation in Events

Convenience Store Operation

We participate in and support various festivals and events

Nippon Trex operates a convenience store on the premises of
its head office. Not just our employees, but also the generalpublic use this service, and we contribute not only to thewelfare of our employees, but also to the community
development.

organized by local organizations.
By exhibiting our products at events, we help local residents
understand the roles that the Group’s products play in society,and contribute to the promotion of local industries and regional
revitalization.
*In FY2021, many scheduled events were canceled due to COVID-19.

Promoting Local Employment
In

order

to

promotelocal

employment

andregional

development, we actively employ local residents at ouroverseas bases.

Employees cleaning their community

Mori Plant also gives priority to placing orders with local

Convenience store operated by Nippon Trex

contractors for public work projects.

Developing Relationships with Business Partners
Information Exchange Meetings

Award System for Internal Partner Companies

Group companies conduct regular visits and information

In order to raise awareness and motivation for quality, we havebeen giving awards to companies that have contributed to
improving product quality.

exchange meetings with partner companies and local
governments.
By increasing opportunities for dialogue, we are promoting theexchange of information on customer needs, etc., and thecreation of relationships.

Periodic Surveys
In order to conduct fair transactions, we conduct credit checks,
on-site inspections, and periodic audits of business partners.

Award ceremony for Iraha Kogyo Co., Ltd., an internal partner company
of Kyokuto Kaihatsu Kogyo

Participating in Local Communities
In a variety of situations, we are working to resolve regional issues, collaborate with local
communities, and nurture the next generation.

Participating in an event at Tojoko Toy’s Kingdom (FY2019)

Nurturing the Next Generation
Cooperation in the Field of Education

Content Aimed at Children

Our Group accepts internships and work experience requests.
By having students engage in those experiences, we help
them learn how to develop professional values and careerplans so they can use them for job hunting in the future.

We provide content for children
on our website and in booklets.

Additionally, Kyokuto Kaihatsu Kogyo provides support tonurture students who will lead the next generation by
participating in the “My Career Study Group” (commonly
known as Wata-Caree), a program in which female university
students consider their own careers through corporate
research.

introducing our products andactivities in a fun and easy-to-

We also hold educational activities, such as giving lectures by
our President to regional universities and special lectures toneighboring high schools.

We hold tours of our plants and completed facilities for local
residents and students with the aim of raising interest in

Our Group promotes education
for the next generation, andunderstanding of our Group by

understand way.
“Working Vehicle Drill” forelementary school students

Plant Tours

manufacturing, deepening understanding of local industries,
and promoting local settlement.

Coexistence with Local Communities
Regional Environmental Conservation Activities
At each Group base, we periodically clean the areas
surrounding our business sites.
We also participate in the Yamato Environment Improvement
Association in Yamato City, Kanagawa Prefecture, and theEnvironmental Plan Evaluation Council in Nishinomiya City,
Hyogo Prefecture, and are proactively working to improve thelocal environment.
The Saitama City Sakura Environmental Center, to which the
Saitama Office of Kyokuto Service Engineering belongs, holds
their Eco Festa once a year to enlighten local residents about
the environment and the SDGs.

39

Online internships were offered during
the COVID-19 pandemic.
Eco Festa held at the Saitama City Sakura Environmental Center(Kyokuto Service Engineering Saitama Office)Local Disaster Prevention Activities
At the same time that we protect local communities from fires
at our plants, we also participate in local volunteer fire brigades
so as not to interfere with business continuity.
Kyokuto Kaihatsu Kogyo’s Miki Plant is a member of the“Corporate fire brigade,” which engages in firefighting activities
in cooperation with local fire brigades.

Plant tour and opinion exchange meeting held by
Shinko Automobile

Interacting With Neighboring University Students
We held a company tour and exchange meeting with students from the Hokkaido University of Science, of which
several of our employees are alumni. Nine students from the Faculty of Mechanical Engineering took part in the tour,
looked around the plant, products such as tailgate lifters and tank trucks, and the employees working there. At an
opinion exchange meeting with young employees who were also alumni of the university, the students actively
made questions, and we could see that they were strongly interested in our company. We will continue toprovide such opportunities to raise awareness for local students.

Shinichi Ono
Shinko Automobile Co., Ltd.
Manufacturing Division40

4

Activities of the Kyokuto Group[Environment]

Toward Recycling-Oriented Society/Conservation of Ecosystems“Manufacturing” That Considers the
Global Environment
The Kyokuto Kaihatsu Group aims to develop communities through manufacturing whileat the same time promote the conservation of the global environment
and ecosystems throughout the supply chain.

We are promoting the 3Rs (Reduce, Reuse, Recycle) through the reduction of waste
generated in our business activities and the recycling of products. We also identify
environmental pollution that occurs in our product value chain and control it.

Reducing Waste in Manufacturing

Reducing Food Loss

Waste Recycling

Reducing Food Loss

The entire Group is promoting initiatives to reduce waste.

F.E.E., which operates the employee cafeterias, is working
to reduce food loss by controlling the number of meals andrecording the amount of leftover food.
In November 2021, we registered as a “food loss reduction
partner of Nishinomiya City.”

We aim to achieve zero landfill waste by reusing scrap,
packaging, and other waste generated at our plants as raw
materials for recycling.

Product Recycling
At the request of the Society for Promotion of Japanese
Diplomacy, FE-Auto modifies and repairs vehicles thathave been retired from local governments and donates
them to developing countries.
*FY2021 results: 1 fire engine (Argentina), 1 refuse truck(Cambodia), 1 water truck (Tonga)

Nishinomiya City Food Loss Reduction Partner sticker

Conserving ecosystems
TowardDecarbonizedSociety

TowardRecycling-Oriented
Society

Conserving
ecosystems

Responding to
Climate Change
Risks

Management of Chemical Substances
Kyokuto Kaihatsu Kogyo solar panels on the site of
the former Tohoku Plant

Water trucks donated to Tonga were used in water supply activities
during the volcanic eruption disaster in January 2022.

Promoting the 3Rs

Toward Decarbonized Society
We are working to realize decarbonized society and carbon neutrality through a variety ofmeasures, and we are promoting sustainable manufacturing.

Reducing CO2 Emissions in Manufacturing
Introducing Energy-Saving Equipment andEco-Cars

Reducing CO2 Emissions through Productivity
Improvements

The entire Group is promoting the use of LEDs for plant lighting.
We are also taking measures to insulate and shield plantbuildings to create a comfortable working environment.
We are switching to electric and hybrid vehicles for our
corporate vehicles to prevent environmental pollution andreduce CO2 emissions.

We are working to improve productivity and reduce complaints,
thereby reducing CO2 emissions.
*Productivity improvements... See page 46
Claim reductions... See pages 37 - 38

Video and Web Conferencing
By utilizing videoconferencing and web conferencing, we arecontributing to the reduction of indirect CO2 emissions
associated with traveling.

Solar Power Generation BusinessWe generate solar power at three locations: Kyokuto Kaihatsu
Kogyo’s Fukuoka Plant, the site of our former Tohoku Plant,
and Nippon Trex’s Otowa Plant.

We have established our own evaluation standards for the
3Rs (Reduce, Reuse, Recycle) in product design, such as
weight reduction of parts and materials derived fromrecycled materials.
We are also promoting the application of“New Environmental Standard ComplianceLabels” on products that meet the various
requirements of the Japan Auto-Body
Industries Association.

We are promoting the manufacturing of products that do not
use SOC (chemical substances harmful to human bodies
and the environment).
SOC-free products are marked and displayed in our
product catalogs and brochures.

SOC-free markThis product has contributed to the
reduction of the use of cadmium, lead,
mercury, and hexavalent chromium.

Forestation Activities
New environmental
standard compliance
label

Necessary Requirements(1) Preparation and utilization of the “3R Criteria Guidelines”(2) Preparation and disclosure of disassembly manuals(3) Display of manufacturer names(4) Display of resin part material names(5) 95% recyclability rate for vehicle body productcomponents(6) Meet the “voluntary standards for four heavy metal
substances” established by the Japan Auto-Body
Industries Association(7) Manufacture at plants that have acquired environmental
certification by third-party organizations, such as ISO
14001 or Eco Action 21

Since May 2004, Nippon Trex has been planting acacia
trees in Sabah, Malaysia, to promote coexistence withlimited forest resources.
Logs from the acacia trees that were planted by Nippon
Trex are used as floorboard of products.

Acacia trees planted by Nippon Trex

LED lighting in the new Hokuriku Heavy Industries plant

41

42

Activities of the Kyokuto Group

Risk Management
Classification of Risk

GovernanceClass

Subclass

Business Impact
Indicator

Observations

Contents

Expenditure• The introduction of a carbon tax
on procurement materials and thefuel for its transportation,
increases transportation costs.
• Manufacturing costs increase incountries where the price ofcarbon is high.

• Monitoring of carbon
price policy trends

Our Group recognizes that addressing environmental issues, including climate change, is an important management issue,and has addressed it in both the “Long-Term Management Vision - Kyokuto Kaihatsu 2030 -” and “Medium-Term
Management Plan 2022–24 -Creating The Future As One-.”The Sustainability Committee (Chairperson: President, held twice a year), which is directly under the Board of Directors,
evaluates and manages risks and opportunities related to climate change, decides on plans for improvement, and monitors
the situation.
The status of these matters is then reported at the Board of Directors meeting held at the end of the fiscal year.

Transition risks
Risks arising fromchanges in the social
system toward
decarbonizedsociety

Board of Directors

Price of carbon

Changes inthe energy mix

Rise in averagetemperature

Auditing
Department

Droughts andother water
stress*1

Expenditure

Expenditure

Revenue*2

Sustainability Committee
Secretariat: CSR Office, Corporate Planning Department

Physical risks

Branding

GovernanceWorkstyle
Reforms

CarbonManagement Neutrality and
Systems
Environmental
IssuesHealth andProductivity
Management

Contributing
to LocalCommunities

Risks associatedwith climatechange, such asheat waves,droughts, floods,
storms, andsea-level rise

Intensificationof abnormal
weather

Expenditure
RevenueManaging issues related to climate change in the• Changes in emission factors due
to energy mix affect CO2 emission
reduction targets, and lead toreview of electricity supply anddemand contracts, which in turnincrease electricity costs.

• The cost of measures related toroom temperature control, suchas heatstroke in plants, will
increase.

• Due to abnormal drying, demand
for sprinkler trucks for dust controlof roads and forestation
maintenance increases.
• If damage to inventory or
production facility troubles occur
due to frequent torrential rains or
typhoons, repair and restoration
costs will increase.
• If there is an abnormality in the
supply of materials due to damage
to outsourcing contractors and the
supply chain, plant operations will
be suspended or stalled.
• There will be increased demand forrelief water tankers and vehicles forcollecting disaster waste for areas
affected by the overflow of rivers
and flooding damage.
• Demand for special purpose civilengineering vehicles will increase
as urban infrastructure fordisaster prevention is expanded.

“Carbon Neutrality and Environmental Issues” group*See page 13 for details regarding the Sustainability Committee

Changes inbiodiversity

Strategy

Risk Response Status

Expenditure• Due to a pandemic caused by an
unknown pathogen, businessactivities may be suspended or
stagnant, resulting in lower sales
and a decline in trust withstakeholders.

Not Yetbegun*Responding to the recommendations of the Task Force on Climate-related
Financial Disclosures (TCFD)

Ongoing

Responding to Climate Change Risks

Measures
Taken

4• Promoting energy
conservation• Switching to
low-emission powerplans• Expansion of air conditioning
systems in plants• Thermal insulation
measures for plant buildings• Expansion of water tanktruck production lines• Risk assessment within
the company and supply
chain• Measures against the
intrusion of water intoplants• Expansion of water tanktruck production lines• Renewal of body
production line formid-size rear dump
trucks• Promotion of staggered
work hours andtelecommuting• Promotion of online
meetings*1 Expenditure: Negative impact on revenue *2 Revenue: Positive impact on revenue

Climate change risks handled by the Group in our management strategy are assessed by the CSR department and otherrelated departments, deliberated by the Sustainability Committee, and given final approval by top management.
These assessments are based on the IEA scenario and RCP2.6/SSP1-2.6 (2°C increase scenario) of the IPCC Fifth
Assessment Report.

Indicators and Targets● CO2 emissions in 2024: 10% reduction compared to FY2020 ● CO2 emissions in 2030: 38% reduction compared to FY2013*Output level (emissions/sales) *Calculated based on actual results for Kyokuto Kaihatsu Kogyo, Nippon Trex, and Kyokuto Kaihatsu Parking

43

44

4

Activities of the Kyokuto Group

Achieving Work-Life Balance[Human Resource]

We are promoting the creation of environment in which both work and life can be enriched and a virtuous
cycle can be created through improvement in productivity and development of internal systems.

“CreatingSociety” in Which Each andEvery Person Is Respected

Initiatives Aimed at Improving Productivity
Digitization of Indirect Operations

Automation in Manufacturing Processes

In order to improve work efficiency, we are promoting

Our Group is promoting robotization in its manufacturing
processes to stabilize product quality and improve work
efficiency and safety.

digitization of simple and analog tasks by utilizing AI, IoT, andvarious systems.
Examples of Digitization• Use of AI-OCR

We are promoting the creation of workplaces where all
employees of the Kyokuto Kaihatsu Group can make themost of their individuality and ideas with peace of mind.

• RPA of routine work
• Introduction of a process control system• Introduction of a scheduler system• Introduction of a location management system (to reduce
the time required to search for vehicles)

Diversity
Management

AchievingWork-Life Balance

Creating
Rewarding
Workplaces

Occupational
Safety and Health

Health andProductivity
Management

Consideration for
Human Rights

Diversity Management (Utilization of Diverse Human Resources)
Our Group considers the diversity of each and every employee as an asset, and promotes the creationof workplace environment in which everyone can make the most of their individuality and strength.

• Digitalization of expense reimbursements, payslips, fieldforms, contracts, receipt management, recruitment
activities, seals, and more

Capital Investment Toward Efficiency
We are actively promoting capital investment to reduce waste
and ensure safe and efficient operations.
At the new Hokuriku Heavy Industries head plant, processes has
been shortened by the introduction of a 30-ton crane which lifts
and transfers.

Promoting Diversity
Utilization of Diverse Human Resources

Promoting Diverse Ways of Working

Our Group promotes and utilizes a diverse range of humanresources which are not bound by gender, age, nationality,
disability, or experience.

Flexible Working System/Support for Child Care,
Nursing Care, Injury and Disease, Etc.

An example of the creation of an age-friendly
office at Kyokuto Service Engineering(see comment below)

Education to Promote Diversity
Kyokuto Kashiwa Farm, a place where people
with disabilities can work in their own way

In order to promote the creation of workplaces that makes themost of diversity, we promote education on unconscious
biases (unconscious belief and prejudice) and basic education
on diversity.

We have established systems such as reduced working hours,
vacations, staggered working hours, and telecommuting sothat we can support our employees in accordance with various
conditions, such as their family situation or their own health.
We also conduct in-house education to promote understandingof these systems.
In case of COVID-19, we responded flexibly so that special
leave could be taken for vaccinations and temporary school
closures for children.

Kyokuto Kaihatsu Kogyo has published a Maternity
and Childcare Leave Manual (Before Childbirth) topromote understanding between employees taking
childcare leave and their superiors.

I Am Able to Do My Best Thanks to Work Environment
That Makes It Easy to Balance Work and Childcare

Age-Friendly Activities Reduce Risks to Everyone
The Eco House Komaki Office of Kyokuto Service Engineering has a large number of elderly people, and is
implementing various safety and burden reduction measures. For example, we made benches with shoe storage
so that they can easily change their shoes. Even for not elderly persons, changing shoes while standing is a riskof falling and places burden on bodies. Safety measures that consider the elderly people also focus on residual
Toru Niwa
risks, and I feel that it leads to create a “friendlier” work environment for everyone, not just the elderly people.
Kyokuto Service

Engineering Co., Ltd.
Eco House Komaki Office45

Full-scale operation of the mid-size rear dump truck fabrication work
line has begun at the Kyokuto Kaihatsu Kogyo Yokohama Plant.

Initially, I was planning on taking childcare leave for a bit less than a year before returning to work, but I
got pregnant with my second child during the leave, so it was extended for a year. I was worried about
returning to work, but the people around me, including the staff at my branch, made it possible for me towork at my own pace, and so I was able to return to work smoothly. Thanks to this, I feel relieved to beable to go to work every morning even though I’m busy with housework and childcare (lol). It’s really hardto balance work and childcare, but I feel motivated to my best when I think that my children are doing theirbest as well at a nursery school.

Yuka Itamori
Nippon Trex Co., Ltd.
Hiroshima Branch

46

4

Activities of the Kyokuto Group

Health and Productivity Management
To ensure that all employees can continue to work in good health for a long period of time, we work
together with the labor and health insurance unions to promote health and productivity management.
SATRAC employee awards
A typical meeting

Creating Rewarding Workplaces
We aim to create workplaces where employees are aware of their own roles andcan actively and independently grow.

Health Support
Health Promotion Events/Subsidies

Employee Cafeteria

We provide various events and assistance to support the

F.E.E. operates cafeterias for employees of Kyokuto Kaihatsu

health of employees, including prevention of lifestyle-relateddiseases and infectious diseases, and support in quitting

Kogyo and Nippon Trex, where menus are designed andprovided by registered dietitians. We also participate in TABLE

smoking.

FOR TWO Program, in which school lunches are gifted to
Example Events/Subsidies

Education and Awareness Raising for Employees
Various Types of Training

Encouraging Self-Development/Qualifications

We offer “job-level-specific training” to help employees acquire
skills necessary for their duties, along with “career training” toIn order to promote the voluntary development of employees’
abilities, we have established various programs related toself-development, such as the “Self-Development Correspondence
Education Incentive Program,” “Qualification Subsidy Program,”and “Video Training Service.”

support individual career development.

Welfare Programs
Employee Commendation System

Welfare Programs

In order to increase employees' motivation, our Group
presents awards to employees who have made a significant

We provide a variety of benefits within the Group, including
club activities, recreation assistance, a system for using
company-contracted resort facilities, and a loan system.

contribution to the company’s development.

We promote various education and activities to protect safety and health of our employees,
which are the most important items of the Group.

Creating a Workplace Free From Industrial Accidents

We conduct safety patrols at each of the Group’s business site
to identify unsafe conditions and behavior in operations andwith facillities, and work to rectify and prevent these issues.
Information on sources of danger is shared, and the entire
Group strives to prevent similar accidents from occurring.

• Walking campaigns• Holding seminars for women• Sports competitions (SATRAC)• COVID-19 workplace vaccination program• Subsidies for secondary inspection costs• Influenza vaccine subsidies• Dental checkup subsidies• Optional checkups at regular health checkups
Free (Colorectal cancer testing) (Nippon Trex)

We regularly hold “health cafeteria” events that provide healthy menus
in line with particular themes.

Mental Health
We conduct stress checks for employees and interviews withmedical specialists to create workplaces where mental healthproblems are prevented.

Consideration for Human Rights

Occupational Safety and Health

Safety Patrols

children in developing countries by eating healthy meals in our
cafeterias. (FY2021 results: 7,406 school meals were donated)

Safety Education
In parallel with our daily safety education, we offer hands-on
safety experience education that simulates accidents that
could occur during actual operations, education using safety
VR experience equipment, and more.
We are also promoting and sharing near-miss incidents andworkplace risk assessments throughout the Group.

We promote activities that consider human rights at all stages of our value chain.

Manufacturing That Considers Human Rights
Elimination of Conflict Minerals andSecurity of Exports
We are working to produce products that do not use conflictminerals as raw materials, which could be a cause ofhuman rights violations, environmental destruction in
conflict areas, and source of funds for armed groups.
In order to maintain international peace and security, we
also apply “Security Export Regulations” to the export ofgoods and the provision of technology.

Responding to Employees’ Human Rights
Prevention of Harassment/Helpline
In order to create workplaces where everyone can workwith peace of mind, we have implemented harassment
training programs for managers with specialized
instructors. We have also established the “Corporate Ethics
Helpline” as a point of contact for employees to safely
consult on ethical violations in the workplace. We maintainand operate a follow-up system that ensures anonymity
and prevents disadvantages to persons who make a reportor hold discussions.

Sustainable procurement
Throughout the entire supply chain, we promotesustainable procurement that considers not only our own
profits but also the environment and human rights.
Kyokuto Service Engineering Hokkaido safety patrol
A safety work training vehicle with sensory
devices onto a wing van

47

48

4

Activities of the Kyokuto GroupA Conversation with Our Outside Directors[Governance]“Building an Organization” Trusted by Society
Corporate Governance

Basic Approach to Corporate Governance
Our Group manages its businesses with the aim of expanding its corporate value by swiftly making decisions on management policies andstrategies in response to changes in the environment, and by strengthening its systems to implement those policies and strategies in a speedy,
firm, and timely manner. We are also strengthening our auditing and supervisory functions to ensure thorough compliance with laws andregulations throughout the process, from decision making to execution.
An important management issue is to build good relationships with a variety of stakeholders, including customers, employees, business
partners, shareholders and investors, and local communities, while enhancing corporate ethics and maintaining an awareness of our social
responsibilities and roles both as a company and as a member of society through sound corporate activities.
[Corporate Governance System Diagram, Including Outline of Internal Control System]

Shareholders and Investors

Board of Directors

ReportSustainability Committee

DecisionmakingMonitoringof operations

Businessmonitoring,asset statussurveys, etc.

ReportManagement Meeting

Audit reports to the Boardof Directors and the
Auditor Board

policies and business plans

Business Operation Meeting(Executive Officers)

Performance management instructions

Appointment

Accounting audits

Management
oversight Performance
Implementation of management
reports Implementation of management
policies and business plans

Accounting Auditors

ReportConsultation

Nominating Committee

Audit reports

Auditor Board

Compensation Committee

Monitoring of appointed
management Convocation of general meeting andperformance reports, etc.
Consultation

Appointment

General Meeting of Shareholders

Performance management instructions

Head Office Departments

Each Business Division
Business audits

Internal Audit Department

Reporting todirectors and auditors

Reports

Reports

Internal Reporting System
Internal

External (Lawyers)

Characteristics of the Corporate Governance System
Strengthening Management andMonitoring Systems
We have appointed two outside corporate
auditors (one of whom is qualified as a lawyer)
in order to strengthen the decision-making
function of the Board of Directors and thefunction of managing the execution businessby executive officers, as well as management
oversight functionality.
We have established a system in which
external oversight functions adequately
thanks to supervision by outside directors andaudits by outside corporate auditors.

Monitoring Sustainability Initiatives

Implementing Three-Way Audits

Our Group recognizes sustainability as animportant management issue.
The Sustainability Committee, which issupervised by the Board of Directors,
identifies materialities through the evaluationof risks and opportunities of the Group,
reviews measures, and manages its progress.

We have set up the Auditing Department as
the internal auditing organization, which
consists of four staff members to conduct
audits of our Group’s operations based on theaudit plans established for each fiscal year.
The results are reported to the directors andauditors to promote the establishment ofchecking systems and proper execution ofoperations.
The auditors, accounting auditors, andAuditing Department communicate andcoordinate with each other to ensure theefficient implementation of three-way audits.

*Strengthened to 3 outside directors from the end of June 2022.

Constructive Dialogue with Shareholders and Investors
Our Group recognizes that engaging in active dialogue with shareholders and investors on a daily basis, and taking their opinions andsuggestions seriously to improve management, is particularly important for enhancing corporate value. In addition to the General Meeting of
Shareholders, we also hold financial results briefings for investors.As a point of contact for communication with shareholders and investors, wehave appointed a director in charge of SR/IR, with the General Affairs Department as the department in charge. Basically, we hold separate
meetings for institutional investors and analysts on a quarterly basis and whenever a request is made, top management at the level of director
or above responds. Opinions received from shareholders and investors as a result of our SR/IR activities are fed back to our directors andauditors as an important factor in making management decisions.

49

Outside Director

Outside Director

Outside Director

Director, Associate Senior Executive Officer

Keiko Kaneko

Akira Michigami

Hiroyuki Terakawa

Takeo Norimitsu

The Long-Term Management Vision and New
Medium-Term Management Plan
Norimitsu The Group has announced the “Long-Term Management
Vision -Kyokuto Kaihatsu 2030-” and the “Medium-Term Management
Plan 2022–24 -Creating The Future As One-,” which depict the dual
achievement of both sustainable society and sustainable management. I
would like to begin by asking your opinion on these.
Kaneko The basic policy of the new medium-term management plan
begins with contributing to solving social issues and seeking to provide
value. Today, the depletion of resources and demand for recycling areglobal issues, but I believe these issues can also be an opportunity for
the Group. I think society expects us to take on these challenges basedon strategic analysis.
Terakawa Looking back on the history of the Group, I get the strong
impression that it is one of technical competence. We will promoteresearch and development to improve our technical capabilities whilevaluing the technology, trust, and spirit of harmony that we havecultivated over many years. This is reflected in our long-term
management vision and new medium-term management plan. Although
the goals we set are high hurdles, I would like everyone to unite in taking
on the challenge with the slogan of “Creating the Future as One.”

Sustainability Initiatives
Norimitsu The long-term management vision in particular sets
long-term goals not only for business performance but also forsustainability. As a manufacturing industry that consumes energy andresources and requires cooperation of many people, all items are
essential.
Michigami It is true that there has never been a time whereenvironmental issues have been raised as much as now. In addition to
the issue of greenhouse gases, it is necessary to simultaneously andactively promote measures such as banning the use of hazardous
chemical substances and curbing the use of plastics. It can be said that
there is no future for companies that do not undertake these measures.
In terms of people, I believe that addressing the issue of diversity, notonly by increasing the number of female employees, but also byaddressing diversity with regard to age and nationality, will lead to global
development.
KanekoThe Special Purpose Vehicles Division and the Environmental

Equipment and Systems Division can contribute both directly andindirectly to carbon neutrality and sustainability through products andmanufacturing, gaining substantial expectation from society.
Additionally, in the past few years the law has been revised and it has
become necessary to establish an internal reporting desk to solve
problems that lie hidden in the workplace, such as harassment. In
addition to losing opportunity to receive input from young people,
women, and other people with different perspectives, the traditional
workplace culture that tends to exist in the manufacturing industry runs
the risk of creating companies that cannot adapt to change. I would not
like to end with a topic on goals other than that of the environment set
out in the long-term management vision.
Terakawa My impression has been that the CSR reports published so
far have summarized these things in an easy-to-understand manner.
Sustainability initiatives can only be realized with the understanding of
employees, so we hope that these tools will be used to further raiseawareness.

Stance on Governance
Norimitsu It is no exaggeration to say that the realization ofsustainable society depends on corporate management activities. In
order to achieve environmental conservation, human rights protection,and economic development at the same time, we have set goals forgovernance in our long-term management vision.
Michigami Companies should not be mere profit-seeking entities.
Companies that develop while paying attention to all aspects of theenvironment, human rights, and governance are the ones that will win
the trust of society. In order for our Group to continue to develop, I think
we should focus more heavily on governance.
Kaneko I have specialized in corporate legal affairs, information
security, and global governance. By proposing awareness from theperspective of risk management and social responsibility, I hope to beable to contribute as much as possible to the creation of a Group
resilient against risks.
Norimitsu We are now in an era in which corporate management isthreatened by a complex web of various factors, such as COVID-19,
climate change, and regional conflicts. Risk management is becoming
increasingly important for our Group, which is expanding globally. Bymaking effective use of all the management resources we havecultivated over the years, we will open the door to the future.

50

Sustainability Data
PeopleScope 2
Scope 3Category 1

Direct emissions from in-house
fuel use
Indirect emissions from externallypurchased electricity and heat usage
Indirect emissions other than those in
Scope 1 and 2 (Emissions by othercompanies related to our activities)

Emissions (tons-CO2)
FY 2017

FY 2018

FY 2019

FY 2020

FY 2021

Direct emissions from in-house fuel use

4,265

4,257

4,452

4,248

4,310

Indirect emissions from the electricity and heat usage

9,606

9,699

10,578

9,503

10,325ーー85,12588,092

100,868

ー

37,472

33,185

36,112

Calculated from the annual purchase weight of raw materials

Category 2

Capital goods

Calculated by multiplying the annual capital investment amountby the emissions intensity per unit of investment

Category 3

Fuel- and energy-related activities

Calculated based on annual energy consumption

Category 4

Transport and distribution(upstream)Calculation of transport emissions when products are shipped
Calculated based on specified shippers' calculation methods of theenergy conservation Law.

ー

ー

7,409

9,796

11,466

Category 5

Waste generated from business

Calculated by classifying waste by type and multiplying by theemissions intensity of the waste treatment method

ー

ー

601

516

618

Category 6

Business trips

Calculated based on the number of employees

ー

ー

135

139

142

Employee commuting

Commuters by cars: Calculated from commuting distance by cars
Other than the above: Calculated by multiplying the number notclassified as commuters by cars by the number of business days
and the emissions intensity of passenger railways

ー

ー

1,099

1,187

1,296

Category 12

Disposal of products soldCategory 15

Investments

CO2 Emissions per
Unit of Production
Total for Kyokuto Kaihatsu
Kogyo, Nippon Trex, andKyokuto Kaihatsu Parking

Chemical Substance
Emissions (Total
VOC Emissions)
Kyokuto Kaihatsu Kogyo

Volume of Water
Resources Input
and Emissions
Total for Kyokuto Kaihatsu
Kogyo and Nippon Trex

Status of Waste
Management
Total for Kyokuto Kaihatsu
Kogyo and Nippon Trex

Solar Power
Generation
All of the Kyokuto Kaihatsu
Group

ー

ー

3,523

12,897

17,603

ー

ー

2,334

2,459

2,245

ー

ー

30,57726,50429,531

ー

ー

1,975

1,409

1,855

ー

ー

100,155

101,843

115,503

FY 2017

FY 2018

FY 2019

FY 2020

FY 2021CO2 emissions (tons)

20,88521,98522,543

20,17521,995

Sales (million yen)

109,890

110,987

115,171

110,260

107,099

Output level

0.190

0.198

0.196

0.183

0.205

Actual compared to FY2013 (%)

-13.9

-10.2

-11.3

-17.1

-6.9

Actual compared to FY2020 (%)

ー

ー

ー

ー

12.2

FY 2017

FY 2018

FY 2019

FY 2020

FY 2021

Total VOC (tons)

83

71

68

72

75

Output level (g/m2)

99

89

79

96

103

Calculated based on the number of shares held
Total

Volume of input (m3)Volume of emissions (m3)

FY 2017

FY 2018

FY 2019

FY 2020

FY 2021205,349

223,693

207,318

236,617

280,869

171,827

FY 2017

188,600

FY 2018

184,348

FY 2019

203,474

FY 2020

201,625

2,679

2,674

2,931

2,537

2,608

Recycled volume (tons)

2,638

2,632

2,888

2,495

2,571

Final disposal volume (tons)

41

42

43

42

37

Recycling rate (%)

98.5

98.4

98.5

98.3

98.6

FY 2017

Kyokuto Kaihatsu Kogyo Fukuoka Plant: 1.5 MW (kWh)Kyokuto Kaihatsu former Tohoku Plant: 1.5 MW (kWh)Total

FY 2018

FY 2019

FY 2020

FY 20212,012,120 1,908,170

1,722,740

1,789,776

1,697,768

2,287,990 2,218,019

2,347,819

2,166,445

2,369,608

525,965

520,697

521,956

517,703

4,844,698 4,652,154

4,591,256

4,478,177

4,585,079

544,588

FY2021

Item
Total

3,138

Work-Life Balance
All of the Kyokuto Kaihatsu Group excluding overseas bases
FY2021Item(As of March 31, 2022)

Number of female managers

5

Ratio of female managers (%)

0.2

Male

2,804
334

10 - 19 y.o.

41

20 - 29 y.o.

633

30 - 39 y.o.

762

40 - 49 y.o.

828

Number of persons with disabilities

57

50 - 59 y.o.

607

Number of persons rehired after retirement

195

60 - 69 y.o.

250

70 y.o. and over17

Average age

43.1

Average years of service

10.7

Number of new graduates hired

58

Male

54

Female4

Number of mid-career hires

142

Male

118

Female24

New graduate turnover rate
after three years (%)

GovernanceForeignworkers

Composition ofoutside directors

Board of Directors

0.4

Number of foreign employees

74

Number of foreign technicalintern trainees

59

13(As of March 31, 2022)

31

Total
Male

8

Female23

Number of employees taking
family care leave
Average number ofpaid holidays (days)
Paidvacation Percentage of employees
taking paid leave (%) *1

0
12.0
61.8

Working Total hours worked (hours)
hours
Average overtime
per month (hours)
Satisfaction with work-life balance (%)

1,971.7
14.8
*2

58.1

Total

53

Accidents without lost work time

43

Accidents resulting in lost work time9

Accidents resulting in death1

A serious fatal accident occurred at an in-house
contractor. The Group as a whole is pursuing thecause of the accident and implementing measures toprevent its recurrence, ensuring that all employees
are fully aware of the cause. We will continue tothoroughly manage risks to prevent such accidents
from occurring again.
*1: Number of paid holidays taken in the fiscal year/Number ofpaid holidays newly granted in the fiscal year (excluding
carryover)*2: Evaluation based on the results of employee awarenesssurveys. Only implemented for Kyokuto Kaihatsu Kogyo*3: Occupational accidents at partner companies andsubcontractors working in factories are included in thenumber of accidents.
• Accidents without lost work time... Occupational
accidents in which an employee received an examination
at a medical institution but did not miss a day of workfrom the day after the accident (includes less than a fullday of work lost)• Accidents resulting in lost work time... Occupational
accidents resulting at least one day of lost work

0.5

Kyokuto Kaihatsu Kogyo
FY2017

Item

Composition of
directors

Number of female
assistant managers
Ratio of female
assistant managers (%)

FY2021Item(As of March 31, 2022)

FemaleFY 2021

Total volume of waste (tons)

Nippon Trex Otowa Plant: 0.35 MW (kWh)51

ーPurchased products and services

Category 7

All of the Kyokuto Kaihatsu Group

Number of employees

Scope 1

Calculation method

Diversity

All of the Kyokuto Kaihatsu Group

Number of hires

Category

Basic Information

Number of
employees
taking childcare
leave*Calculation of Scope 3 emissions started from FY2019

Number ofwork-related
accidents *3

CO2 Emissions
Kyokuto Kaihatsu Kogyo

Promoting
women’s
empowerment

The environment(As of March 31, 2018)

FY2018(As of March 31, 2019)

FY2019(As of March 31, 2020)

FY2020(As of March 31, 2021)

FY2021(As of March 31, 2022)

Total

9

8

8

8

8 *1

Male

9

8

8

8

8

Female

0

0

0

0

0

Under 30 y.o.

0

0

0

0

0

30 - 50 y.o.

0

0

0

0

0

50 y.o. and over

9

8

8

8

8

Number of outside directors

2

2

2

2

2

Ratio of outside directors (%)

22

25

25

25

25

Number of meetings of the Board of Directors

13

13

13

13

13

Average attendance rate (%)

99

99

100

99

100

Average attendance rate of outside directors (%)

96

96

100

96

100

Number of officers

15

14

16

13

12

153

139

117

132

158

22

22

23

24

24

32

31

32

32

32

Total amount
Directors (excluding outside directors) (million yen)of officers’
Auditors (excluding outside(million yen)remuneration, etc.
corporate auditors)
Outside officers (million yen)
*As of June 30, 2022: 8 people (7 men and 1 woman)52Company Profile(As of March 31, 2022)

Company Name Kyokuto Kaihatsu Kogyo, Co., Ltd.
Head OfficeSocially Responsible Investment (SRI)

Occupational Safety and Health● In June 2022, we were selected for the “FTSE Blossom● An employee received the Occupational Safety Award
from the Minister of Health, Labour and Welfare, which
recognizes excellent foremen who have a high level ofsafety awareness and have implemented appropriate
safety guidance. [Kyokuto Kaihatsu Kogyo]

KYOKUTO KAIHATSU KOGYO CO.,LTD.

Japan Sector Relative Index*” as a Japanese corporate
brand with outstanding ESG (Environment, Society,6-1-45, Koshienguchi, Nishinomiya-shi, Hyogo 663-8545, Japan

Governance) initiatives. This index has been adopted
as a passive ESG investment
benchmark by the Government

TEL: +81-798-66-1000
Websitewww.kyokuto.com

Establishment

June 1, 1955

Capital11.899 billion yen

Number of
employees

Consolidated: 3,138, Non-consolidated: 1,093

PensionInvestment(GPIF).
Kogyo][Kyokuto

Kaihatsu*493 companies were selected fromthe FTSE Japan All Cap Index 1390.
(As of March 31, 2022)

Affiliated Company Information
Special Purpose Vehicles Division

Others● Received a letter of appreciation from The Society for
Promotion of Japanese Diplomacy for cooperation inoverseas aid projects. [FE-Auto] (See page 42)● Received an award from Daimler India Commercial
Vehicles (DICV) as an excellent body maker.* [Kyokuto
Indomobil Manufacturing Indonesia]*DICV truck chassis exported from India are being mounted
in Indonesia.
● The Nippon Trex Mitsu Plant employee cafeteria received
the “Excellent Store Award” from the Toyokawa Public
Health Center. [F.E.E.]● Employees received awards from the Niigata Corporation
Association for their excellence in accounting. [Hokuriku
Heavy Industries]● Commended as an “excellent cooperative company” by
the registered Waigaoqiao Free Trade Zone. [Kyokuto
Special Automobile Trading (Shanghai)]

Overseas bases● Recognized as an “Outstanding Health and Productivity

Nippon Trex Co., Ltd.

Kyokuto Special Automobile Trading (Shanghai) Co., Ltd. (China)

FE-Auto Co., Ltd.

Kyokuto Kaihatsu (Kunshan) Machinery Co., Ltd. (China)

Management Organization 2022” by the Ministry of
Economy, Trade and Industry and the Nippon Kenko
Kaigi. [Kyokuto Kaihatsu Kogyo, Nippon Trex]● Received the “Mayor’s Award” in the health business

Parts procurement of special purpose vehicles

Repairs and parts sales of special purpose vehicles, sales of used trucks

Manufacturing, sales, repairs, and parts sales of special purpose vehicles

Shinko Automobile Co., Ltd.

SATRAC ENGINEERING PRIVATE LIMITED (India)

Manufacturing, sales, repairs, and parts sales of special purpose vehicles

Manufacturing, sales, repairs, and parts sales of special purpose vehicles

Hokuriku Heavy Industries, Ltd.

Manufacturing, sales, repairs, and parts sales of railcars and special purpose
vehiclesPT. Kyokuto Indomobil Manufacturing Indonesia (Indonesia)

Inoue Motor Co., Ltd.

PT. Kyokuto Indomobil Distributor Indonesia (Indonesia)

Environmental Equipment and Systems Division

Parking Division, etc.

Kyokuto Service Engineering Co., Ltd.

Kyokuto Kaihatsu Parking, Co., Ltd.

Manufacturing of special purpose vehicles

Repairs and parts sales of special purpose vehicles

category of the Yamato City Industrial Worker
Commendations. [Kyokuto Kaihatsu Kogyo]● Received the Minister of Health, Labour and Welfare
Commendation at the 57th National Blood Donation
Promotion Convention. [Kyokuto Kaihatsu Kogyo]

Sales of special purpose vehicles

Manufacturing, sales, and repair of multistory parking equipment andcar park management (toll parking)Repairs and operation of environmental maintenance apparatus and facilities

Kyokuto Service Engineering Hokkaido Co., Ltd.

Repairs and operation of environmental maintenance apparatus and facilities

Sasashima Live Parking Co., Ltd.
Management of multistory parking lots

Mori Plant Co., Ltd.

Design, construction, and maintenance of environmental equipment plants

F. E. E. Co., Ltd.

Canteen management and damage insurance agency business

Eco Facility Funabashi Co., Ltd.

Maintenance and management of environmental maintenance facilities ᖺ  ᭶  ᪥

External Assessment and Awards䛂㻝㻜㼠 ኱ᆺ䝸䝲䝎䞁䝥䝖䝷䝑䜽⪏ᦶ⪖㗰ᯈ䠄㻴㻭㻾㻰㻻㼄䠅௙ᵝ䛃䛜㻌䛂㻞㻜㻞㻝 ᖺᗘ䜾䝑䝗䝕䝄䜲䞁㈹䛃䜢ཷ㈹䡚䛥䜙䛻䚸䛂䜾䝑䝗䝕䝄䜲䞁䞉䝧䝇䝖 㻝㻜㻜䛃䛻䜒㑅ฟ䡚㻌 ᖺ  ᭶  ᪥䛤䜏཰㞟㌴Ᏻ඲ᨭ᥼䝅䝇䝔䝮䛂㻷㻵㻱㻿䠄䜻䞊䝇䠅䛃䛜㻌䛂㻞㻜㻞㻝 ᖺᗘ䜾䝑䝗䝕䝄䜲䞁㈹䛃䜢ཷ㈹㻌

 ᖺ  ᭶  ᪥

Design and Performance䛂㻝㻜㼠 ኱ᆺ䝸䝲䝎䞁䝥䝖䝷䝑䜽⪏ᦶ⪖㗰ᯈ䠄㻴㻭㻾㻰㻻㼄䠅௙ᵝ䛃䛜㻌ᴟᮾ㛤Ⓨᕤᴗᰴᘧ఍♫㸦ᮏ♫㸸රᗜ┴すᐑᕷ⏥Ꮚᅬཱྀ୎┠␒ྕ♫㛗㸸ᕸཎ㐩ஓ≉⿦䛂㻞㻜㻞㻝 ᖺᗘ䜾䝑䝗䝕䝄䜲䞁㈹䛃䜢ཷ㈹㌴஦ᴗࠊ⎔ቃ஦ᴗࠊࣃ࣮࢟ࣥࢢ஦ᴗ㸧ࡀ〇㐀࣭㈍኎ࡍࡿࠕW኱ᆺࣜࣖࢲࣥࣉࢺࣛࢵࢡ⪏ᦶ⪖㗰ᯈᴟᮾ㛤Ⓨᕤᴗᰴᘧ఍♫㸦ᮏ♫㸸රᗜ┴すᐑᕷ⏥Ꮚᅬཱྀ୎┠␒ྕ♫㛗㸸ᕸཎ㐩ஓ≉⿦䠄䈜䠅㻌 㻷㻵㻱㻿㻌 䠖㻌 㻷㼥㼛㼗㼡㼠㼛㻌㻵㼚㼠㼑㼘㼘㼕㼓㼑㼚㼠㻌㻱㼥㼑㻌㻿㼥㼟㼠㼑㼙㻌 㻌 㻌 㻌 ࡞࠾ᮏ〇ရࡣࠊཷ㈹ᑐ㇟〇ရࡢ୰࡛ࡶࠊ≉࡟ඃࢀࡓ  ௳࡜ࡋ࡚ࠕࢢࢵࢻࢹࢨ࢖࣭ࣥ࣋ࢫࢺ ࠖDialogue with Stakeholders
Through dialogues with our stakeholders, we promote initiatives that can respond to each of their issues and expectations.

㌴஦ᴗࠊ⎔ቃ஦ᴗࠊࣃ࣮࢟ࣥࢢ஦ᴗ㸧ࡀ〇㐀࣭㈍኎ࡍࡿࡈࡳ཰㞟㌴Ᏻ඲ᨭ᥼ࢩࢫࢸ࣒ࠕ.,(6p㸦࣮࢟ࢫ㸧䠄䈜䠅ࠖࡀࠊࠕᖺᗘࢢࢵࢻࢹࢨ࢖ࣥ㈹ࠖࢆཷ㈹࠸ࡓࡋࡲࡋࡓࡢ࡛࠾▱ࡽࡏ࠸ࡓࡋࡲࡍࠋ 㻝㻜㻜䛃䛻䜒㑅ฟ䡚㻌䡚䛥䜙䛻䚸䛂䜾䝑䝗䝕䝄䜲䞁䞉䝧䝇䝖
㸦+$5'2;㸧௙ᵝࠖࡀࠊࠕᖺᗘࢢࢵࢻࢹࢨ࢖ࣥ㈹ࠖ
ࢆཷ㈹࠸ࡓࡋࡲࡋࡓࡢ࡛࠾▱ࡽࡏ࠸ࡓࡋࡲࡍࠋ


Stakeholderࡈࡳ཰㞟㌴࡟ࡼࡿ཰㞟సᴗ࡟ࡣࠊ✚㎸⿦⨨࡟ேࡀᕳࡁ㎸ࡲࢀࡿࣜࢫࢡࡀక࠸ࠊ㔜യ࣭Ṛஸ஦ᨾ
The 10-ton heavy duty rear dump ᴟᮾ㛤Ⓨᕤᴗᰴᘧ఍♫truck wear-resistantsteel plate (HARDOX) specification won
a “2021 Good Design Best 100”㸦ᮏ♫㸸රᗜ┴すᐑᕷ⏥Ꮚᅬཱྀ୎┠␒ྕ♫㛗㸸ᕸཎ㐩ஓ≉⿦࡟ࡶ㑅ฟࡉࢀࡲࡋࡓࠋ



Award Highlights኎ࡋࡓ  ࢺࣥ㌴࡜ඹ㏻ࡢࢹࢨ࢖ࣥࢥࣥࢭࣉࢺ࡛࠶ࡿ
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ᵝࠖࡣࠊ࣎ࢹ࣮࡟㧗࠸◳ᗘ࡜㠌ᛶࢆ㄂ࡿࠕ+$5'2;ࠖࢆ᥇⏝ࡋࡓࡇ࡜ࡸࠊ࣍࢖ࢫࢺ࣓࢝࡜࣎ࢹ࣮୺
䛥䜙䛻䚸㌴୧㍍㔞໬䜢ᐇ⌧䛧䛯䛣䛸䛷✵Ⲵ≧ែ䛻䛚䛡䜛⇞㈝ྥୖ䛻䜒㈉⊩䛧䛶䛚䜚䚸⎔ቃᛶ⬟䜒᱆ࡢᨵⰋ࡞࡝࡟ࡼࡾᙉᗘࡢྥୖ࡜㍍㔞໬ࢆ୧❧ࡉࡏࠊ᭱኱✚㍕㔞 NJ ௨ୖࢆ☜ಖࡋࠊ㍺㏦
ྥୖ䛥䛫䛯䚸᪂Ⓨ᝿䛾䝎䞁䝥䝖䝷䝑䜽䛷䛩䚹ຠ⋡ࡢྥୖࢆᐇ⌧ࡋࡓ〇ရ࡛ࡍࠋࡲࡓࠊ ᖺ  ᭶࡟Ⓨ኎ࡋࡓ  ࢺࣥ㌴࠾ࡼࡧ  ᖺ  ᭶࡟Ⓨ኎ࡋࡓ  ࢺࣥ㌴࡜ඹ㏻ࡢࢹࢨ࢖ࣥࢥࣥࢭࣉࢺ࡛࠶ࡿ
ࠊࢧ࢖ࢻࣃࢿࣝ࠾ࡼࡧࢸ࣮ࣝࢤ࣮ࢺࢆࢫࢳࣇࢼ㸦⿵ᙉᰕ㸧ࣞࢫ࡜ࡍࡿࡇ࡜࡛ࠊࡍࡗࡁࡾ࡜ࡋࡓࢩࣥࣉࣝ࡞

ࢹࢨ࢖ࣥ࡜ࡋ࡚࠸ࡲࡍࠋ

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Wear-resistant steel plates(HARDOX) have been adopted
to improve durability and 
reduce weight, while the bodydesign has an integrated structure that uses curved surfaces without stiffeners(reinforced columns), greatly
improving the appearance ofthe vehicle.

Employees

1) Improvement of the workplace environmentand review of labor and personnel policies
2) Strengthening labor-management relations,creating pleasant, and rewarding workplaces

1) Various research and evaluation interviews andemployee awareness surveys
2) Collective bargaining and labor-management meetings(10 times a year or more)

1) Promoting mutual understanding andbuilding better relationships

1) Various meetings and training
2) Client evaluations

1) Improving the quality of management
through dialogue1) Ordinary General Meeting of Shareholders (once a year)
2) Financial results briefings (once a year)
3) Issuance of “securities reports” and “quarterly securities
reports” (four times a year)
4) Issuance of IR reports (twice a year)

Our website

1) Promoting mutual understanding andbuilding better relationships
2) Understanding of social needs

1) Holding events/plant tours and participating in local events
2) Participation in economic/industry organizations andlocal organizations

P39-40ࡇࢀ࡟ࡼࡾࠊ཰㞟సᴗ᫬ࡢ༴㝤ࢆᐹ▱ࡋ࡚✚㎸⿦⨨ࢆ⮬ື೵Ṇࡉࡏࡿࡇ࡜࡛ࠊࡼࡾ㧗ᗘ࡞Ᏻ඲ᴟᮾ㛤Ⓨᕤᴗᰴᘧ఍♫㸦ᮏ♫㸸රᗜ┴すᐑᕷ⏥Ꮚᅬཱྀ୎┠␒ྕ♫㛗㸸ᕸཎ㐩ஓ≉⿦ ࣮ࢫ㸧䠄䈜䠅ࠖࡀࠊࠕᖺᗘࢢࢵࢻࢹࢨ࢖ࣥ㈹ࠖࢆཷ㈹࠸ࡓࡋࡲࡋࡓࡢ࡛࠾▱ࡽࡏ࠸ࡓࡋࡲࡍࠋ ௒ᅇࠊᑂᰝጤဨ఍ࡼࡾࠊ$,࡟ࡼࡗ࡚ࠕேࠖ⮬యࢆ᳨▱ࡍࡿࡇ࡜ࢆྍ⬟࡜ࡋࠊㄗ᳨▱ࡢ㜵Ṇ࡟ຍ䠄䈜䠅㻌 㻷㻵㻱㻿㻌 䠖㻌 㻷㼥㼛㼗㼡㼠㼛㻌㻵㼚㼠㼑㼘㼘㼕㼓㼑㼚㼠㻌㻱㼥㼑㻌㻿㼥㼟㼠㼑㼙㻌
㻌㻌㻌

53

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࠼ࠊຠ⋡ᛶࡢྥୖ࡜☜ᐇᛶࢆᐇ⌧ࡋࡓⅬࡸࠊᕷẸࡢ࢖ࣥࣇࣛ࡜Ᏻ඲ࢆࠊ㧗࠸ᢏ⾡࡜Ⓨ᝿࡛Ᏺࡿࡇ
ࡈࡳ཰㞟㌴࡟ࡼࡿ཰㞟సᴗ࡟ࡣࠊ✚㎸⿦⨨࡟ேࡀᕳࡁ㎸ࡲࢀࡿࣜࢫࢡࡀక࠸ࠊ㔜യ࣭Ṛஸ஦ᨾ࡜ࢆྍ⬟࡜ࡋࡓⅬ࡞࡝ࡀ㧗ࡃホ౯ࡉࢀࡓࡇ࡜࡟ࡼࡾࠊᮏཷ㈹࡟⮳ࡾࡲࡋࡓࠋྥୖ䛥䛫䛯䚸᪂Ⓨ᝿䛾䝎䞁䝥䝖䝷䝑䜽䛷䛩䚹ࡇࢀ࡟ࡼࡾࠊ཰㞟సᴗ᫬ࡢ༴㝤ࢆᐹ▱ࡋ࡚✚㎸⿦⨨ࢆ⮬ື೵Ṇࡉࡏࡿࡇ࡜࡛ࠊࡼࡾ㧗ᗘ࡞Ᏻ඲ᛶࢆࠊ཰㞟᫬ࡢసᴗᛶࢆᦆࡡࡿࡇ࡜࡞ࡃ☜ಖࡍࡿࡇ࡜ࢆྍ⬟࡜ࡋࡲࡋࡓࠋ
௒ᅇࠊᑂᰝጤဨ఍ࡼࡾࠊ$, ࡟ࡼࡗ࡚ࠕேࠖ⮬యࢆ᳨▱ࡍࡿࡇ࡜ࢆྍ⬟࡜ࡋࠊㄗ᳨▱ࡢ㜵Ṇ࡟ຍClients

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㻝㻜㼠 ኱ᆺ䝸䝲䝎䞁䝥䝖䝷䝑䜽⪏ᦶ⪖㗰ᯈ䠄㻴㻭㻾㻰㻻㼄䠅௙ᵝ㻌

Shareholders
and investors䠄⏬ീ䛿᳨▱䜲䝯䞊䝆䠅㻌䠄䜸䝥䝅䝵䞁⿦╔㌴䠅㻌

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P39

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-1-

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ව⏝㸧࡜ࠊ⊂⮬ࡢ $, ⏬ീㄆ㆑ᢏ⾡࡟ࡼࡾࠕேࠖࢆ㧗⢭ᗘ᳨࡛▱ࡋࡲࡍࠋ

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ᛂ࠼ࡍ࡭ࡃ㛤Ⓨࡋࡓ඲ࡃ᪂ࡋ࠸Ᏻ඲ᨭ᥼ࢩࢫࢸ࣒࡛࠶ࡾࠊ㧗ᛶ⬟ᑓ⏝࣓࢝ࣛ㸦ࣂࢵࢡ࢔࢖࣓࢝ࣛ

P45-48࡜ࢆྍ⬟࡜ࡋࡓⅬ࡞࡝ࡀ㧗ࡃホ౯ࡉࢀࡓࡇ࡜࡟ࡼࡾࠊᮏཷ㈹࡟⮳ࡾࡲࡋࡓࠋᙜ♫ࡀ  ᖺ  ᭶ࡼࡾⓎ኎ࡋ࡚࠸ࡿࡈࡳ཰㞟㌴Ᏻ඲ᨭ᥼ࢩࢫࢸ࣒ࠕ.,(6pࠖࡣࠊࡑࡢㄢ㢟࡟࠾࠼ࠊຠ⋡ᛶࡢྥୖ࡜☜ᐇᛶࢆᐇ⌧ࡋࡓⅬࡸࠊᕷẸࡢ࢖ࣥࣇࣛ࡜Ᏻ඲ࢆࠊ㧗࠸ᢏ⾡࡜Ⓨ᝿࡛Ᏺࡿࡇ

࡟ࡘ࡞ࡀࡿࡇ࡜ࡀ࠶ࡿࡇ࡜࠿ࡽࠊࡑࡢᏳ඲ᑐ⟇ࡣ㔜せ࡞ㄢ㢟࡜࡞ࡗ࡚࠸ࡲࡋࡓࠋ

The use of high-performancecameras and AI to detect“people” has improved  the safety of collection operations

without compromising workability.
It was highly evaluated for
ensuring the safety of not only the opera- tors, but anyone and -1everyone around thevehicle.


P37-381) Various training courses
2) Customer service desk, disclosure of recall informationᛶࢆࠊ཰㞟᫬ࡢసᴗᛶࢆᦆࡡࡿࡇ࡜࡞ࡃ☜ಖࡍࡿࡇ࡜ࢆྍ⬟࡜ࡋࡲࡋࡓࠋ
㌴஦ᴗࠊ⎔ቃ஦ᴗࠊࣃ࣮࢟ࣥࢢ஦ᴗ㸧ࡀ〇㐀࣭㈍኎ࡍࡿࡈࡳ཰㞟㌴Ᏻ඲ᨭ᥼ࢩࢫࢸ࣒ࠕ.,(6p㸦࢟

Related Pages

1) Promoting mutual understanding andbuilding better relationships2) Creating better productsව⏝㸧࡜ࠊ⊂⮬ࡢ $, ⏬ീㄆ㆑ᢏ⾡࡟ࡼࡾࠕேࠖࢆ㧗⢭ᗘ᳨࡛▱ࡋࡲࡍࠋ

10-ton heavy duty rear dump truck䇾๛䛛䜙ᰂ䜈䇿䛾タィᛮ᝿䜢῝໬䛥䛫
wear-resistant steel plate
Refuse truck safety(HARDOX) specification 䛥䜙䛻䚸㌴୧㍍㔞໬䜢ᐇ⌧䛧䛯䛣䛸䛷✵Ⲵ≧ែ䛻䛚䛡䜛⇞㈝ྥୖ䛻䜒㈉⊩䛧䛶䛚䜚䚸⎔ቃᛶ⬟䜒
support system


Means

Customers࡟ࡘ࡞ࡀࡿࡇ࡜ࡀ࠶ࡿࡇ࡜࠿ࡽࠊࡑࡢᏳ඲ᑐ⟇ࡣ㔜せ࡞ㄢ㢟࡜࡞ࡗ࡚࠸ࡲࡋࡓࠋ

ᙜ♫ࡀ  ᖺ  ᭶ࡼࡾⓎ኎ࡋ࡚࠸ࡿࠕW ኱ᆺࣜࣖࢲࣥࣉࢺࣛࢵࢡ⪏ᦶ⪖㗰ᯈ㸦+$5'2;㸧௙ຠ⋡ࡢྥୖࢆᐇ⌧ࡋࡓ〇ရ࡛ࡍࠋࡲࡓࠊ
࡟ࡶ㑅ฟࡉࢀࡲࡋࡓࠋ ᖺ  ᭶࡟Ⓨ኎ࡋࡓ  ࢺࣥ㌴࠾ࡼࡧ  ᖺ  ᭶࡟Ⓨ

Themes ᖺ  ᭶  ᪥ᙜ♫ࡀ  ᖺ  䛤䜏཰㞟㌴Ᏻ඲ᨭ᥼䝅䝇䝔䝮䛂㻷㻵㻱㻿
᭶ࡼࡾⓎ኎ࡋ࡚࠸ࡿࡈࡳ཰㞟㌴Ᏻ඲ᨭ᥼ࢩࢫࢸ࣒ࠕ.,(6pࠖࡣࠊࡑࡢㄢ㢟࡟࠾䠄䜻䞊䝇䠅䛃䛜㻌
award, and the refuse truck
safety㌴஦ᴗࠊ⎔ቃ஦ᴗࠊࣃ࣮࢟ࣥࢢ஦ᴗ㸧ࡀ〇㐀࣭㈍኎ࡍࡿࠕW኱ᆺࣜࣖࢲࣥࣉࢺࣛࢵࢡ⪏ᦶ⪖㗰ᯈ
supportsystem won a “2021 Good Design Award”.[Kyokuto
Kaihatsu
Kogyo]ᵝࠖࡣࠊ࣎ࢹ࣮࡟㧗࠸◳ᗘ࡜㠌ᛶࢆ㄂ࡿࠕ+$5'2;ࠖࢆ᥇⏝ࡋࡓࡇ࡜ࡸࠊ࣍࢖ࢫࢺ࣓࢝࡜࣎ࢹ࣮୺
㸦+$5'2;㸧௙ᵝࠖࡀࠊࠕᖺᗘࢢࢵࢻࢹࢨ࢖ࣥ㈹ࠖࢆཷ㈹࠸ࡓࡋࡲࡋࡓࡢ࡛࠾▱ࡽࡏ࠸ࡓࡋࡲࡍࠋ 䛂㻞㻜㻞㻝 ᖺᗘ䜾䝑䝗䝕䝄䜲䞁㈹䛃䜢ཷ㈹㻌
ᛂ࠼ࡍ࡭ࡃ㛤Ⓨࡋࡓ඲ࡃ᪂ࡋ࠸Ᏻ඲ᨭ᥼ࢩࢫࢸ࣒࡛࠶ࡾࠊ㧗ᛶ⬟ᑓ⏝࣓࢝ࣛ㸦ࣂࢵࢡ࢔࢖࣓࢝ࣛ

᱆ࡢᨵⰋ࡞࡝࡟ࡼࡾᙉᗘࡢྥୖ࡜㍍㔞໬ࢆ୧❧ࡉࡏࠊ᭱኱✚㍕㔞
NJ ௨ୖࢆ☜ಖࡋࠊ㍺㏦
࡞࠾ᮏ〇ရࡣࠊཷ㈹ᑐ㇟〇ရࡢ୰࡛ࡶࠊ≉࡟ඃࢀࡓ ௳࡜ࡋ࡚ࠕࢢࢵࢻࢹࢨ࢖࣭ࣥ࣋ࢫࢺ ࠖ● Our Group has obtained certification for its quality
management system (ISO 9001) and environmental
management system (ISO 14001).
Through the application of ISO-based management
systems, we are working to improve quality as well as
customer satisfaction, and to protect the environment.

Health and Productivity Management

Domestic bases
Manufacturing, sales, repair, and parts sales of trailers, wing truck bodies, etc.

ISO Certification

Fund

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㻝㻜㼠 ኱ᆺ䝸䝲䝎䞁䝥䝖䝷䝑䜽⪏ᦶ⪖㗰ᯈ䠄㻴㻭㻾㻰㻻㼄䠅௙ᵝ㻌䠄䜸䝥䝅䝵䞁⿦╔㌴䠅㻌

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Local
communities䠄⏬ീ䛿᳨▱䜲䝯䞊䝆䠅㻌

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