Change for Growth
CORPORATE REPORT

2022

Long-term Vision, VISION 2027

VisionTo become A Global Company
for Global Society
Customers
andbusiness
partners
Employees

Consumers

About this publication
Based on our corporate philosophy of Creatively and Actively
Contributing to Society, the JSP Group develops business with theaim of realizing our long-term vision. We have clearly deﬁned
sustainability management in the basic concept of the 2021–2023
Change for Growth medium-term business plan currently underway.
This report contains speciﬁc information regarding sustainability
management and materiality, which is also available on the
JSP website.

Reporting period
April 1, 2021, to March 31, 2022
(Some sections refer to activities occurring on or after April 1, 2022)

Management policies

Forward-looking statements

Localcommunities

Shareholders
and investors

This publication contains forward-looking statements regarding
management plans, strategies, and performance. These statements
are based on Company determinations in light of information available
as of March 31, 2022. Accordingly, information contained herein issubject to risks and uncertainties, and actual results may differ
materially from those discussed in forward-looking statements.

Inspire customers and consumers
Deliver satisfaction to shareholders and communities
Be enthusiastic about our work

Gaining understanding, trust, and empathy as a Company society needs

Sustainability Management
Medium-term Business Plan (FY2021–2023)

Basic Strategies• Solve customers’ and social issues• Make economic value include social aspects• Strengthen management base

JSP Website
https://www.co-jsp.co.jp/english/

Contents
Message from the President

3

Our Value Creation Process

11

Financial and Non-ﬁnancial Highlights

13

Overview
Extrusion Business

15

Bead Business

17

Sustainability
Creating Share Value throughSustainability Management—P-BLOCK/ARPRO Transformation Strategy

19

Creating Share Value through Environmentfriendly Products—Information Disclosures Based on TCFD
Recommendations

21

Message from the President

Accelerating
Sustainability Managementon the Occasionof Our 60th Anniversary

Toward Realization of Our Long-term Vision

Fiscal 2021 Business PerformanceWith deep appreciation for the support of all JSP
stakeholders, we commemorated our 60th anniversary on
January 24, 2022. Reflecting our long-term vision,
VISION2027, we aim to become A Global Company for
Global Society.
Around the world, pandemic restrictions on
economic activities have been gradually relaxed, andeconomies are on a recovery track, especially with regard
to consumer spending. However, amid the recovery,
shortages in the supply of semiconductors and other parts,
as well as soaring raw material prices, have combined todrive up inflation.
In Japan, although the impact of restrictions on
economic activities and supply chain delays due to
COVID-19 are steadily diminishing, prices have been risingand increasing economic uncertainty. This is due to theweaker yen caused by the differences in monetary policies
between Japan and Western countries, as well as theimpact of the situation in Ukraine.
In such a challenging environment, JSP will focus on
the basic concepts of its new medium-term business plan,
Change for Growth.
This requires that the value provided be expandedfrom solely economic value to include social value. As aresults, it should be possible for the issues faced bycustomers and society may be resolved. Moreover, we will
strengthen our management base in a bid to further
enhance corporate value.

Net sales grew year on year, due to an increase in sales ofhigh-value-added products and product price revisions.
At the same time, operating profit declined year on year.
This is the result of, among other factors, price increases
for a broad range of items, including raw materials whichgrew rapidly.
Extraordinary losses were mainly due to impairment
losses at consolidated subsidiaries in Japan, together withlosses stemming from fire damage at a consolidated
subsidiary in South Korea.
As a result, fiscal 2021 net sales amounted to¥114,125 million (up 11.2% YOY). Operating income was¥4,589 million (down 11.5% YOY), ordinary profit ¥4,868
million (down 11.8% YOY), and profit attributable to ownersof the parent ¥2,893 million (down 4.1% YOY).
In the extrusion business, sales volumes rose on
increased sales of high-value-added products and therevision of some product prices. Despite the impact ofskyrocketing raw material prices, profit also increased.
Sales of STYRENPAPER (foamed polystyrene sheets
used in food packaging) and other materials for householdproducts increased, due in part to price revisions. There
was an increase in the volume of sales of MIRABOARD, amaterial used for advertising displays, although the sales
volume of materials used for food trays decreased, after
sales had marked temporary rapid growth a year earlier.
That said, demand remains strong as people still tend tostay at home due to the ongoing pandemic. Net sales
increased following product price revisions.
Sales of industrial materials, including MIRAMAT(foamed polyethylene sheets) for industrial packaging, andflat panel displays (FPDs) were higher year on year due toa significant increase in sales of high-value-added andgeneral-purpose products.
Meanwhile, sales of MIRAFOAM (extruded board
made of foamed polystyrene) and other construction andcivil engineering materials decreased; year-on-year salesof materials used in the building construction and housing

Quantitative Targets

Tomohiko Okubo

Representative Director and President

Net sales
Operating profit
Operating margin

3

JSP Corporate Report 2022

FY2021 Results

Targets for Vision 2027

¥114.1 billion¥180.0 billion¥4.5 billion¥18.0 billion

4.0%

10.0%

(Year ended March 31, 2028)

JSP Corporate Report 20224

markets were about the same; but sales of materials used
for civil engineering applications were down.
As a result, extrusion business sales increased 3.9%
to ¥39,076 million and operating profit rose 8.0% to ¥2,782
million. Although we anticipate higher sales in fiscal 2022,
due to increased sales volumes and product pricerevisions, we expect raw material prices to continue rising,resulting in lower profits.
In the bead business, sales increased on recovery indemand, mainly in the automotive field. In terms of profit,
despite efforts to promote product price revisions, theimpact of skyrocketing raw material prices was substantial,
pushing down profits.
Despite the impact of restrictions on activities due tothe spread of COVID-19 variants and shortages ofsemiconductors and other parts, there was a moderate
recovery in demand and an expanded use of newcomponents in automobiles that, together, resulted inhigher sales volumes and net sales.
This was noted in the areas of high-performance
products such as P-BLOCK/ARPRO, which is expanded
polypropylene that is used for bumper cores, seat cores,
and other automotive parts; cushioning and packaging
materials for returnable containers for various components;
cushioning and packaging materials; insulation andcushioning materials for housing; and impact protection
materials for athletic fields.
In Japan and North America, sales of P-BLOCK/
ARPRO increased slightly despite the impact of production
adjustments by automakers. In South America, sales
increased in the automotive field. In Europe, sales werestrong in the automotive parts and other markets. In China
and Taiwan, sales in the packaging materials sector
increased.
The sales volume of expandable polystyrene beadproducts, chiefly STYRODIA, decreased because of lower
demand for these products in the fisheries and agriculture
sectors. Although sales were up, mainly due to pricerevisions, further action is being taken in response to theongoing rise in the cost of raw materials.
Sales of FOAMCORE, a hybrid molded product usedin prefabricated bathroom unit ceilings and marine floats,increased mainly due to a recovery in demand.
Thus, beads business sales rose 14.4% to ¥68,513
million and operating profit slid 26.2% to ¥2,620 million.

Sales and profits are expected to increase in fiscal
2022, in line with a recovery in sales volumes and productprice revisions.
In the others segment, sales of general packaging
materials increased in Japan as sales in the automotive
parts, transportation, and other market sectors recovered.
In China, strong demand for packaging materials for many
types of components resulted in higher sales. This caused
sales in the others segment to strengthen 26.2% to ¥6,536
million, while operating profit grew 119.9% to ¥212 million.
In fiscal 2022, sales are expected to expand in linewith higher sales volumes and product price revisions,while profits are also expected to rise for the same reasons.

Fiscal 2022 Forecasts
The outlook for the global economy in fiscal 2022 isbecoming increasingly uncertain, due to the rising cost of
raw materials as geopolitical risks continue to escalate.
Other reasons include the absence of any signs of an end
to global supply chain disruptions and lockdowns in China
in response to the swelling number of COVID-19 cases.
Nevertheless, the global economy is expected torecover as pandemic-related restrictions are eased andcountries continue to take measures to prevent the spreadof coronavirus infections.
In this difficult business climate, JSP is working on
revising product prices to reflect the higher cost of raw
materials, utilities, and logistics, while continuing toaddress sustainability management issues.

Medium-term Targets, Achievements
As a second step to realizing its long-term goal,
VISION2027, JSP launched the Change for Growth
medium-term business plan, covering the three years fromfiscal 2021 to fiscal 2023.
Under this plan, we will promote strategies aimed atachieving further growth, focusing on the basic conceptsof expanding the value provided by JSP in terms of both
economic and social value. We will take steps to resolve
issues faced by customers and society, and strengthen ourmanagement base.

Quantitative targets to be achieved by FY2023 include
net sales of ¥120,000 million, operating profit of ¥7,700
million, and an operating profit margin of 6.4%. At the sametime, management resources will focus on four growthengines: (1) automotive components, (2) building and homeinsulation materials, (3) flat panel display (FPD) surface
protection materials, and (4) new business domains.
In fiscal 2021, the volume of automotive components
sales grew 2% compared with fiscal 2019 (before thepandemic). Automobile production, which is an indicator of
demand, continues to recover, but still is impacted by
COVID-19 and shortages in semiconductors and other parts.
In fiscal 2022, the number of JSP automotive
components used in manufacturing has been on the rise,
despite concern over lockdowns in China and market
stagnation due to geopolitical risks in Europe.
While the business environment is expected to remain
uncertain, we aim to expand business by providing nextgeneration products compatible with electrification, weight
reduction, energy conservation, and recycling requirements.

Medium-term Business Plan (FY2021–2023)

Change for Growth
Four Growth Engines

Automotive components
FY2023 Target

FY2021 Result

FY2023 Target

FY2021 Result

Compared with FY2019

Compared with FY2019

Compared with FY2019

up

23%

up

2%

up

12%

down

7%

• Need for vehicle weight reduction• Next-generation products meet need to save energy, recycle• Growing demand for energy-efficient housing• Expanding demand for high-performance insulation materials

FPD surface protection materials

New business domains

FY2023 Target

FY2021 Result

FY2023 Target

FY2021 Result

Compared with FY2019

Compared with FY2019

Net sales

Net sales

20%

up

33%

• Growing demand for LCD/organic EL panels and personal computers• Increasing overseas business development

JSP Corporate Report 2022

Building and home insulation materials

Compared with FY2019

up

5

Regarding building and home insulation materials,
the total sales volumes declined 7% compared with that of
fiscal 2019. Although orders for homes were firm, delays
were caused in new housing starts and home construction
by the pandemic and shortages of construction
equipment, semiconductors, and other components.
However, demand for energy-saving homes remains
strong, and we continue to see higher sales of pre-cut
thermal insulation materials, which is our strength. We
expect business to grow, as demand for high-performance
thermal insulation rises ahead of mandatory compliancewith energy efficiency standards in fiscal 2025.
Sales of FPD surface protection materials increased
33% compared with fiscal 2019, achieving targets aheadof schedule in response to expanded production among
JSP customers due to greater demand in China for
personal computers, displays, and other products. Further
growth is expected on higher demand for organic electroluminescence panels and personal computers, as well as
overseas business expansion.

¥3.0 billion¥0.1 billion• M&A activity• Active commercialization of currently potential business themes

JSP Corporate Report 2022

6

In new business domains, we are adding new
businesses and M&A projects, while commercializing
elements of our existing businesses that show potential. In
January 2022, we made a 35% investment in GHEPI SRL,an Italian company, which has injection molding
processing technologies. The injection molding market forplastic products is large. In combining JSP foaming
technologies with new injection technologies, we aim topromote the development of high-value-added products.
We also plan to create new businesses, by tapping into themultiple synergies with areas of JSP business.

FY2023 Targets Compared with FY2020 Results

Quantitative Targets for FY2023(Billion yen)

Net sales

Net sales

Profitup17%

up 49%

120.0

Operating profit

7.7

Ordinary profit

7.9

Profit attributable to owners of parent

5.2
GHEPI holds a ceremony in April 2022 to mark its half century inbusiness and the 60th anniversary of JSP.

Preconditions• Crude oil price: $50 per barrel• Exchange rate: ¥105/$1, ¥125/ 1, ¥15/RMB1

Results, Forecast, and Plan

MarginGrowthNet sales(million yen)

116,133
100

Sales volume(FY2018=100)

113,375
98

128,000
110

Operating profit
120,000($/barrel)

98

(%)

6,4

103
5,479

5,083

78

69

4.7
60

5,185
5.1

4,589

4.5

7

2019

JSP Corporate Report 2022

4,300

4.0
3.4

45

FY2018

7,700

Operating margin

114,125
102,668
93

Crude oil price(million yen)

2020

2021

2022

(Forecast)

2023(Plan)FY2018

2019

2020

2021

2022

(Forecast)

2023(Plan)

Strengthening Non-financial Capital
JSP stakeholders increasingly are demanding that westrengthen our efforts in the areas of non-financial capitaland information disclosure. We believe investment in
human capital is critical to achieving sustainable growth.
To realize the basic concept—to fortify ourmanagement base—underpinning our Change for Growth
medium-term business plan, we aim to improve our humanresources development, augment our level of occupationalsafety, and foster a culture of a rewarding workplace.
In addition, as part of our Deliver with WOW!
management policy that expresses our targeted actions
and intentions, we aim to be a company where all
employees work with enthusiasm.
Reflecting on the 60 years since our founding—during which time we have expanded through businessintegration and the acquisition of overseas companies—
JSP has welcomed a diverse array of human resources
and cultivated a highly liberal corporate culture. In thisatmosphere, which has remained flexible throughout, ourdiverse human resources—representing different genders,
nationalities, and expertise—have interacted and taken on
the challenge of creating new value.
Yet, if we are to become a truly global supplier, evengreater human resource diversification is necessary. For
this, it is essential that we focus more than ever ondeveloping our human resources. To this end, JSP will
provide opportunities for growth through a wide range ofexperiences, in addition to acquiring specialized knowledge
related to manufacturing, including foaming technologies, aswell as quality and production technologies.

JSP Corporate Report 20228

Sustainability Management Challenges

Advancing Corporate Governance

As we mark the 60th anniversary of our founding and thetransition to the Prime Market, JSP is fully committed tosustainability management aimed at realizing our corporate
philosophy of Creatively and Actively Contributing
to Society.
In fiscal 2021, we identified material issues(materiality) in sustainability management, announced our
support for the Task Force on Climate-related Financial
Disclosure (TCFD) recommendations, and strengthened
our climate change-related information disclosure.
Based on TCFD recommendations, we also disclosed
climate change initiatives and greenhouse gas emission
reduction targets.
Plastics have become an issue in terms of petroleum
resource depletion and marine pollution. But we areconfident that foamed plastic products contribute tosustainable society, since use of foamed plastics can help
reduce the amount of plastic used.
Our mainstay product P-BLOCK/ARPRO, the world’s
first non-crosslinked polypropylene foam, is easy to recycle

and so contributes to a recycling-oriented society. The
high functionality of the product helps create value that is
unique to JSP.
By promoting advanced functionality in foamed
plastic products and reducing the environmental burden
through recycling and other efforts, we provide customers
with new choices in all areas targeting sustainable productdevelopment. In the automotive field, the lightweightcharacteristics of foamed plastic products help reduce
automobile energy consumption, while in housing, they
support the realization of net-zero energy houses with theirenergy-saving heat insulation.
In the area of food containers, foamed plastic storage
products reduce food loss; in civil engineering, foamed
plastic contributes to improved workability and safety.
Leveraging our groundbreaking technologies andaccumulated know-how, we will continue expanding foam
resin applications and deepening communication withclients about the functions required for those applications
in order to further promote product development.

Identifying Material Issues

JSP continuously strives to enhance Group governance,since it is the foundation that supports sustainablecorporate growth. In April this year, we set up a Special
Committee on Governance to ensure fair, transparent, andobjective conflict of interest transactions by controllingshareholder (parent company), appropriately protecting
the interests of minority shareholders, and enhancing
governance. These efforts show that JSP is a fair company
that values shareholder interests and merits the trust
placed in us by society.
Outside directors play a critical role in thedevelopment of JSP’s governance structure. We hope toheighten the efficacy of the Board of Directors by making
the best use of the knowledge and insights of outside
directors. Thus, outside directors provide the Board withobservations that facilitate extremely meaningful discussions.
JSP will continue to revitalize its Board of Directors,
demonstrate the strengths of both internal and outside
directors, and strive to enhance corporate value. Given our
aim of becoming a truly global supplier, we will keep up ourefforts to create a system of governance that realizes theappropriate level of compliance and risk management,
based on evaluation standards shared with Group
companies in Japan and overseas.

Tomohiko Okubo

Representative Director and President

Corporate Philosophy: Creatively and Actively Contribute to Society

To Our Stakeholders

Basic Sustainability PolicyLong-term vision: VISION2027

Change for Growth Medium-term Business Plan (FY2021–FY2023)
Basic Concept

1

To solve customers’ and social issues, expand
economic value to include social value.

Material issues
Create shared value through: • Environment-friendly products• Plastic resource recycling• Climate change mitigation• Food and healthy living• Contribution to safety2Strengthen management baseMaterial issues
Environment
Society

Governance• Global environmental protection• Human resource development• Corporate job satisfaction• Occupational safety• Structure of information systems• Strengthening of corporate governance

As a leading company in foamed plastics, JSP’s mission isto establish an understanding in society that foamed
plastic is a valuable material for the future of the world.
We will continue to innovate foaming technologies, provide
resource-saving and high-performance products, andcreate economic and social value.
In marking our 60th anniversary, we will accelerate
our bid to become A Global Company for Global Society,to continue meeting the expectations and earning the trustof all JSP stakeholders. We look forward to yourcontinued support.

Material Issue Processing
Phase 1: Identify Issues, Assess Materiality
The JSP Group identifies social issues by referring to international guidelines, such as GRI standards, the 17 SDGs, and trends atother companies.
It then evaluates their importance from two perspectives: that of the JSP Group and that of the stakeholder.
Phase 2: Executive Officers Meeting deliberations
As the Executive Officers Meeting deliberates important issues, it selects materiality candidates that incorporate the basic concepts of the
Change for Growth Medium-term Business Plan and product perspectives.
Phase 3: Resolution by management

9

JSP Corporate Report 2022

JSP Corporate Report 2022

10

Our Value Creation Process
JSP’s mission is to use its business to contribute to society by providing value in the form of preserving
resources and energy, and increasing convenience in social activities. Management aims to fulfill thatmission by becoming a true global company creating value for society.

Input

Business Model

Output(As of March 31, 2022)(For the year ended March 31, 2022)

Business domains

Financial baseTotal assets ¥134,527 million
Net assets

¥90,231 million

Extrusion Business

Bead Business¥114,125 million

Operating profit

¥4,589 million

Profit attributable toowners of parent

¥2,893 million

764

Foam plastic

Shareholder returns• Group companies

Overseas11
915

Corporate Philosophy
Creatively and Actively
Contribute to SocietyLong-term vision, Vison 2027

• JSP

Management baseJapan

Enhanced
food safety

Global supply system

2,966

Manufacturing bases

Contribution to
comfortable living
environments

3.4%

ROE (return on equity)

Number of employees
ConsolidatedConsolidated results
Net sales

Human resources

Non-consolidated

Outcomes

Dividend per share¥50.0

Dividend payout ratio

51.5%

Advanced
technologicalinnovation

Key elements
Strengthen, expand
existing businesses

Expand businessdomainStrengthen
management base

Reduction ofenvironmental burden

Occupational safety
Number of accident-related stoppages
JSP facilities*
0Group companies onsame site as JSP facilities
2
Group companies not onsame site as JSP facilities
3

Human
Occupational
GlobalCorporate Structure of Corporate job
resource
safetyenvironmental governance information satisfaction
development
protection
systems

Management Philosophy

Corporate governance

Stoppage frequency
JSP facilities
Group companies onsame site as JSP facilities
Group companies not onsame site as JSP facilities

Contribution toindustrial vitality

0%
2.3%
3.9%

* Head office, sales offices, plants,
development center, research centers,
logistic center, recycling center, and new
business development center

Environmental protection
Recycled waste plastic 5,476.6 tonnes
Landfill volume

11

JSP Corporate Report 2022

13 tonnes

JSP Corporate Report 2022

12

Financial and Non-financial Highlights

Net sales(Million yen)

120,000

Operating profit

114,284

116,133

113,375

100,000

114,125
102,668

Recycled waste plastic(Million yen)

10,000

(t)

6,000

9,105

5,479

6,000

60,000FY2017

2018

2019

2020

2021

Profit attributable to owners of parent

7,000

0

5,000

FY2017

4,000

3,638

3,000

3,017

2,893

2,000

2018

2019

2020

2021

FY2017

2018

2019

2020

2021

0

129,229

128,445

129,053

134,5278

90,000

6

60,000

0

2019

2020

2021

0

FY2017

2018

2019

2020

0

2021

Dividend payout ratio

(%)

(%)

60

80
70

63.5

62.1

63.4

63.9

63.9

60

30

40
30

51.5

41.0

10

10
FY20172018

JSP Corporate Report 2022

2019

2020

2021

0

5
3

3
2
0

2018

2019

2020

2021

2019

2020

2021

2.2

2

1.7

1

1.3

0

2.4

2.3
1.5

1.2

FY2017

1.2

0
2018

2019

1.2

2020

(People)

3,000

2,943

3,154

3,074

2,996

2,966

0

0
2021

* Number of casualties due to work accidents per one million actual working hours** Head office, sales offices, plants, research center, logistic center, recycling
center, and new business development center(People)50,00042,18140,00028,99830,00020,00031,44623,165
18,37410,000

500
2018

3.9

3.7

Number of shareholders (as of fiscal year end)

3,500

2021

4.6

Number of employees (as of fiscal year end)

1,000

FY2017

(%)

3

4

1,500

10

2020

3.2

6

FY20172019

JSP facilities**
Group companies on the same site as JSP facilities
Group companies not on the same site as JSP facilities

4

2,000

21.7

2018

5

2,500

34.6

20

20

13

50
40

50

0

49.4

FY2017

Stoppage frequency** Head office, sales offices, plants, development center, research centers,
logistic center, recycling center, and new business development center

Shareholders’ equity ratio

13

5

2

2018

13

10

4

FY201717

15

10120,000

24

22

3,000

JSP facilities*
Group companies on the same site as JSP facilities
Group companies not on the same site as JSP facilities

30,0001,000

20Number of accident-related stoppages

125,270

4,309

4,547.1

1,000

150,000

6,853

5,164.8

2,000(Million yen)

6,000

0

4,589

Net assets(Million yen)

8,000

5,185

2,000

20,000
0

5,083

(t)

25

5,476.6

4,000

4,000

40,0005,639.0

5,000

8,000

80,0005,287.4

Landfill volume

FY2017

2018

2019

2020

2021

0

FY2017

2018

2019

2020

2021

JSP Corporate Report 2022

14

Overview

Extrusion Business

Review, Future Outlook
In fiscal 2021, although our Extrusion Business was
impacted by the skyrocketing cost of raw materials,
logistics, and power, on top of semiconductor shortages,
we were able to achieve an operating profit close to thetarget set in the fiscal 2023 medium-term business plan.
This was due to significant growth in sales of flat
panel display (FPD) surface protection materials, which are
high-value-added products that represent one of our four
growth engines.
However, since we expect the cost of raw materials,
logistics, and power to continue soaring, selling pricerevisions will remain a top priority in fiscal 2022.
We will focus on developing strategic products that
promote sustainability management, and accelerate thedevelopment of resource-saving, highly functional
products leveraging the lightweight, heat-insulating, andshock-absorbing properties of foamed plastic. We willcontribute to resolving social issues by providing new
products with a smaller environmental impact.

Industrial Materials Business

Net Sales and Operating Profit■ Net sales■ Operating profit

39,076

41,500(Million yen)

41,800
2,800

2,782
2,100

FY2021Results

FY2022
Forecast

FY2023
Plan

Living Materials BusinessIn the Living Materials Business, which mainly comprises
STYRENEPAPER (foamed polystyrene sheets used in foodpackaging), demand for general-purpose trays for fresh
food declined slightly as pandemic stay-at-home demandcooled. At the same time, demand for side dish containers
used for home meal replacement increased.
In fiscal 2022, we expect food container demand to
recover. This will reflect the resumption of excursions,
events, tourism, and other activities following the easing of
pandemic restrictions, as well as the predicted increase indemand for takeout, delivery, and other food-related
containers.
We plan to develop food containers that areenvironmentally friendly in terms of raw materials used andrecyclability. Further, we will cultivate new applications for
STYRENEPAPER, which has always excelled in resourceand heat conservation and is easily recycled, adding evenmore value. We also will focus on developing containers
for frozen food, to help curb food loss and other social
issues, as well as develop the market for high-grade
products that are heat- and oil-resistant, recyclable, andeasy to hold even after microwaving.

In fiscal 2021, the performance of FPD surface protection
materials was extremely favorable in terms of shipments for
personal computers and televisions, driven by pandemic
work-from-home and stay-at-home demand. The materials
achieved 33% higher sales, exceeding the fiscal 2023
target of a 20% increase over fiscal 2019 sales volumes.
In FY2022, despite concerns about the impact of the
lockdowns in China and other factors, we expect businessto remain firm. Growth in the massive China market will be
important for expanding demand for FPD surface
protection materials.
Starting in 2022, we will dispatch personnel to Group
company Kunshan JSP Seihoku Packaging Material Co.,
Ltd. in China, in a bid to strengthen sales activities. Amidan overall market slowdown, the basic strategy for thisbusiness is to communicate the value of JSP products andencourage customers to switch from other materials.
The need for FPD surface protection materials is
expected to increase further, due to the higher quality andlarger sizes of OLED, 8K, and other displays. To achieve
more growth, we will provide products that contribute to
the prevention of migration contamination and the
reduction of defect rates in customer productmanufacturing processes, as well as products that canwithstand long-term storage.

turn, caused there to be delays in housing starts.
In addition, sales of MIRAFOAM (lambda), a
strategic high-performance insulation material for housing,were limited due to difficulties in obtaining some secondary
materials.
At the same time, sales of pre-cut thermal insulationmaterials continued to grow. We will expand our businessfurther by leveraging the strengths of this product, which
include a shorter, simpler installation process and reduced
industrial waste-related costs.
In the area of civil engineering materials,
J-WALLBLOCK, an expanded polystyrene (EPS) blockwith wall surface material, is gaining market recognition for
its contribution to reducing time and costs associated withconstruction. JSP expects sales of the product to growsteadily in fiscal 2022.
The construction industry is expected to continue
promoting the construction of net-zero energy and otherenergy-efficient housing. In addition to new energyefficient homes, we will work to develop easy to install,high-performance insulation materials and construction
methods that are easy to apply. These should help us
capture business associated with the renovation of oldhomes that are not energy efficient.

STYRENEPAPER (food containers)

Construction and Civil Engineering
Materials Business
Fiscal 2021 performance in this area of business was 4%
lower than the fiscal 2023 target but 12% higher than fiscal
2019 sales volumes.
This was due to the supply of housing equipment (hotwater heaters and other appliances) having been affectedby a shortage of semiconductors and other parts which, in

Topic
MIRAMAT ACE (FPD surface protection materials)

Pre-cut thermal insulation material MIRAFOAM (lambda)
Insulation materials pre-cut to customer specifications eliminate the needfor cutting at the construction site, saving time and simplifying the
installation process, leading to lower labor costs. Further, as no industrial
waste is generated, disposal costs are also reduced.

J-WALLBLOCK and Foam Support Construction
Method Registered with NETIS
In June 2022, J-WALLBLOCK, which has a solid track record as a simple
wall construction method for road retaining walls, and the Foam Support
Construction Method, which uses EPS blocks and urethane foam
together to reinforce bridges, were registered with the New Technology
Information System (NETIS) operated by the Ministry of Land,
Infrastructure, Transport and Tourism in Japan. JSP expects that NETIS
will provide information that public works contractors and builders may
pick up and so boost sales.

Foam Support Construction Method registered with NETIS.

MIRAFORM (building and home insulation materials)

15

JSP Corporate Report 2022

JSP Corporate Report 2022

16

Overview

Bead Business

Review, Future Outlook
In fiscal 2021, the Bead Business recovered in terms ofboth sales volume and net sales compared with fiscal 2020
results, which reflect the negative effects of the COVID-19
pandemic. However, the results fell short of those attainedin the 1st year of our medium-term business plan.
Further, in FY2021, automotive components—one of
our four growth engines—saw the volume of sales increase
just 2% over the fiscal 2019 level. This is in stark contrast to
the target of 23% over the fiscal 2019 level set for FY2023,
the final year of the current medium-term business plan.
The poor sales mainly were due to shortages ofsemiconductors and other components, accompanied byan economic slowdown.
Business in the areas of P-BLOCK/ARPRO expanded
polypropylene and STYRODIA expandable polystyrene(EPS) were impacted by a sharper-than-expected rise in
raw material and fuel costs.
As a result, the outlook remains uncertain in the faceof soaring resource and energy prices, stemming fromconditions in Ukraine, as well as lockdowns and rolling
blackouts in China, among other factors.
Currently, domestic business involving P-BLOCK andother high-performance materials has been affected bydelays in the announcement of new car models. The delays
are due to production adjustments, semiconductor
shortages, and other considerations resulting from theimpact of a seventh wave of COVID-19 on the automotive
industry, which includes many JSP clients.
Nevertheless, STYRODIA and other EPS businesses
are on a recovery track. At the same time, efforts tooptimize prices, in response to high raw material costs, are
beginning to bear fruit.

Net Sales and Operating Profit■ Net sales■ Operating profit

80,50068,51372,400
6,000

3,200

2,620

FY2021Results(Million yen)

FY2022
Forecast

In the past, one of our concerns was the timeconsuming process of creating prototypes by hand andconducting repeated tests during the design phase.
However, we now have in place a system that supports
quick design, using simulation technologies that have been
well received by our clients. We aim to create similar
partnerships with more of our clients, which should go far inhelping us achieve our medium-term business plan.

Seizing Growth Opportunities

FY2023
Plan

P-BLOCK/ARPRO (automotive components)

We will use our Bead Business to focus on technologicalinnovation and develop new markets from the perspectivesof sustainability and environmental protection.
While the focus of P-BLOCK/ARPRO businessoverseas is on the automotive sector, we are expanding
into non-automotive areas. These include food delivery
containers, as well as noise, vibration, and harsh sounddampening components that benefit from the dampening
and lightweight properties of foamed plastic.
In Japan, links have been forged to combine
materials developed at the Yokkaichi Research Center withthe molding technology and application development
ability that has emerged from the Kanuma Research Center.
As a result, new, high value-added products have emerged.
Our new product P-BLOCK LC, which reduces GHG
emissions produced during the molding process, isalready performing well on the market, having been
adopted by automobile manufacturers.
In addition, we are planning to launch otherpolyethylene-based materials that incorporate biomass. In
the domestic EPS business, which is facing a severe
demand environment as the number of fish boxes,

Achieving Medium-term Business Plan
Next-generation technology and product development
strategies are key to achieving our medium-term businessplan. Thus, given that our domestic high-performance,material-related business is based on the principles ofsustainability and consideration for the environment, we
will promote the development of new technologies andproducts. These will have higher added value and cost ourcustomers less. In addition, we will increase the level ofcooperation between the Sales and Development
Departments.
In the automotive field, our Sales Department, with its
knowledge of customer needs, and the Development
Department, with its knowledge of technology, haveworked together to achieve successful results.

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JSP Corporate Report 2022

P-BLOCK/ARPRO (panels)

JSP’s P-BLOCK LCSTYRODIA (molded components and beads)

This is an advanced, sustainable product with new features. A
proprietary, low-carbon technology has been applied to create beads
using an energy-efficient molding process. The beads incorporate thehighest grade P-BLOCK to reduce GHG emissions, which are an issue
facing customers. As seen in the image, each bead has a hole in thecenter, which is a unique technology born from JSP’s long-term
technological development efforts.

a mainstay product for the fisheries industry, has declined
due to a marked decrease in yields. This has caused us tomake every effort to expand sales of high-value-added
products, including those that benefit from special
functions, such as lost foam casting.

Global Promulgation of One JSP
Our Bead Business targets expansion through glocal ideas
and activities, which depends on ascertaining common
global issues and specific local issues. Currently, our mostimportant global issue is how to expand our P-BLOCK/
ARPRO business to markets around the world.
At the same time, we recognize such local issues as
the need to support global customers who have different
requirements. We have long sought to provide local market
support at our overseas bases by appointing local regional
personnel there to management and sales positions.
To date, we have done so successfully at our North
American and European businesses. Now, to promotebusiness glocally, we are working to inculcate the concept of
One JSP throughout the Group. This will allow Group
companies worldwide to work as one in promoting business.
Besides fostering this concept, we will make theinvestments necessary to enhance overall Group value. In
other words, by leveraging One JSP—our global
network—we will achieve business growth.

Group Collaboration for Growth
Our goal is to market P-BLOCK LC, MIRABLOCK BIO,
recycled expanded polypropelyne, and other productswith distinctive environmental value to meet the needs ofeach region our business serves.
Collaboration within the Group is critical to thedevelopment of these strategic products. It occurs among
the Yokkaichi No. 2 and Kanuma No. 2 Plants (which
produce beads), JSP Molding Co., Ltd. (which produces
molded parts such as car bumpers) located on the same
site, and the Development Department, as does targetedvalue-added manufacturing.
At the same time, the Group is working to devise anext-generation recycling system. Although our foamed
plastics are highly recyclable, there is a need to collectcustomers’ used products, crush them to reduce theirvolume, and transport them to our plants.
In Europe and North America, we have already set up
recycling schemes for ARPRO, which is used widely,
mainly in automobiles. That said, we will continue toexpand our business, developing ever more products ofsocial and economic value.

JSP Corporate Report 2022

18

Creating Share Value through Sustainability Management

P-BLOCK/ARPRO Transformation Strategy
Global Development System
Innovation Center, Germany

Technology Development Center, US

Head Office Development Center, Japan
Kanuma Research Center, Japan

Yokkaichi Research Center, Japan

Technology Development Center, China

JSP International s.r.o, Czech Republic

Highly Functional Materials Create
Social, Economic Value
P-BLOCK/ARPRO is the world’s first non-crosslinked
polypropylene foam. Developed by JSP, it combines thefeatures of light weight, recyclability, sound absorption, as
well as shock absorption and recoverability. The foam ismarketed worldwide and, as a strategic product, is one of
the four growth engines on which we are focusing in our
long-term vision: VISION 2027.
In this section, we introduce transformation initiatives
designed to further our growth in the expanded
polypropylene (EPP) area of business, which includes
P-BLOCK/ARPRO—P-BLOCK being the brand name usedin Japan and ARPRO that used abroad. The material
creates economic and social value that will help resolve
some of the current social issues.

Technological Developments and DX
While P-BLOCK/ARPRO has a global market share of morethan 50%, to better communicate its social and economic
value, JSP needs to increase brand awareness.
With a more appropriate brand strategy, we aim to
expand the global market by underlining the P-BLOCK/
ARPRO value proposition. The most critical issue here is
the technological development framework, which should
promptly respond to global environmental issues andcontribute to customer businesses.
We are accelerating work on the required framework
by strengthening the Yokkaichi Research Center’sdevelopment of our bead production system, as we speed
up promotion of digital transformation (DX).

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JSP Corporate Report 2022

The manufacture of foamed beads from raw materials
at our manufacturing bases in Asia is remotely monitoredby production engineers in Japan. This allows us to more
efficiently administer operations.
Moreover, through plant-wide labor saving, improved
development capabilities, higher productivity, and othersteps, JSP will continue promoting DX to enhance its
P-BLOCK/ARPRO competitiveness.

Strengthening Sales Structure,
Expanding Applications
Although P-BLOCK/ARPRO has a strong reputation in theautomotive field, to expand the business we must promotemarketing efforts in other industries.
The material is being used for food delivery boxes in
Europe, South America, as well as North America where,
used by a major supermarket chain, it represents a solid
first step in business expansion.
At the same time, we are promoting the product for
use as an underlayment material for artificial turf at
kindergartens and playgrounds, since it prevents children
from injuring themselves even when they fall down. The
product is also attracting attention in South America, foruse in seedling cultivation.
Looking to areas of possible future growth, we arepromoting sales to enterprises including global
telecommunications equipment manufacturers, who use
the product to package 5G devices. We are evenconsidering expanding its use to new applications, such ashome appliances that leverage its ability to dampen noise,
vibration, and harsh sounds.

International Structure,
Next-generation Products
Global Development, Production Systems
Boost Growth

Next-generation ProductsCompatible with SDGs

Overall, in the area of EPP business—which includes
P-BLOCK/ARPRO—we are developing applications thatmeet market needs through a four-pronged system. With
Japan at the core, we have development centers in North
America and China, and an innovation center in Germany.
With the collaboration of these bases, JSP is providing
high value-added services to customers doing businessaround the world.
As an example, on receiving an inquiry for fuel cellcomponents from a European parts manufacturer withproduction facilities in South Korea, we responded to theCompany’s customer needs by dividing up functions
between a development center in Germany that handles
the more difficult design work, and a manufacturing basein South Korea that handles mass production.
In addition, as part of our global growth strategy, we
are aggressively pursuing investment activities. In 2022,
for example, we invested in an Italian injection molding
manufacturer, in order to create synergies and cultivate
new markets by developing products combining foamed
plastic and injection molding technologies.
Besides expanding development, we are enhancing
production, as we keep an eye on market trends.

As we promote our P-BLOCK/ARPRO strategy, we remain
cognizant of the need to contribute to the SDGs. Throughour products, we both help reduce the environmental
impact of our customers’ business activities, and make ourown manufacturing processes more sustainable.
Specifically, we promote development- andproduction-related resource conservation, having set up
product recycling schemes in Japan, Europe, and North
America. This is in addition to the work we are doing to
generate applications that contribute to achieving the SDGs.
In connection with climate change, we aredeveloping packaging materials for EV battery modules in
the automotive field. For water safety, we provide foamed
beads as a carrier to immobilize microorganisms at
wastewater treatment facilities. And when it comes tomarine-sourced food, we help conserve and sustainably
use the oceans, seas, and marine resources by, forexample, providing durable EPP products for seaweed andoyster farming floats in South Korea.
We hope to continue contributing to the achievementof SDGs through P-BLOCK/ARPRO growth strategies, anddeveloping global markets as a brand that provides socialand economic value.

JSP Corporate Report 2022

20

Creating Share Value through Environment-friendly Products

Information Disclosures Based on
TCFD Recommendations
JSP declared its support for recommendations by the Task Force on Climate-related Financial
Disclosures (TCFD) in December 2021. Seeing climate change-related events as business risks,
we aim to respond to them while identifying new opportunities to enhance corporate value.
In addition, the Company views the TCFD guidelines as an effective framework fororganically and practically promoting activities to realize a sustainable society. It will use the TCFD
as a tool for dialogue with various stakeholders.
By addressing climate change and as a true global supplier, JSP aims to increase its socialand economic value, and realize its corporate philosophy: to Creatively and Actively Contributeto Society.

Strategies

1

Environment-friendly products
All foamed plastics are resource-saving and environment friendly. Products made from suchplastics help reduce environmental impact by reducing CO2 emissions.
We will continue contributing to climate change mitigation by providing, and focusing on
the widespread use of, climate change-responsive products. These are of significant help incountering climate change, boosting national land resilience, and assisting in disaster recovery.

Introduction of climate change-responsive products

Governance and Risk Management• JSP’s response to climate change is based on
Company-wide sustainability promotion• T he Board of Directors, chaired by the president, is
responsible for governance, and responds to theimpact of climate-related issues on management
activities• T he Executive Officers Meeting is responsible formanaging climate-related risks, carrying out reviews,
and deciding responses• In order to consider specific measures on climatechange at the Executive Officers Meeting,information on global trends and requests iscollected. The situation and risks then are analyzed
on a cross-functional basis, through bothsustainability promotion and responsible care activities

MIRAFOAM (lambda) is a high-performance, nextgeneration thermal insulation material. It was developed by
JSP based on its accumulated plastic foaming technologies.
By adding special technology to MIRAFOAM, JSP
has succeeded in improving the material’s earlier
insulation performance, which had been considered thelimit of extruded polystyrene foam’s ability to insulate. JSP
now achieves a thermal conductivity of 0.022 W/m-K.
With the promotion of better thermally insulatedhouses, expectations are high that this revolutionary
insulation material will make a significant contribution to
reducing GHG emissions.

Company-wide sustainability promotion

The Board of Directors

The Executive Officers Meeting

The Sustainability
Promotion Committee

Entire Company

2

Introduce products that contribute to plastics recycling
Since ARPRO RE—expanded polypropylene made fromrecycled polypropylene—was first adopted in the market,
we have developed ARPRO RE OCEAN, a product madefrom recycled raw materials, such as fishing nets andother marine-linked waste. In this way, we have expanded
further our recycling activities, thereby helping reduce
CO2 emissions even more and reuse more marine waste.
We have also developed ARPRO REvolution, a productthat is made almost entirely of recycled raw materials.

• T he Sustainability Promotion Department, set up in April 2021, organizes the Sustainability
Promotion Committee and ensures the effective functioning of Company-wide sustainability
promotion activities, including responses to climate change• T he Sustainability Promotion Committee, an advisory body to the Executive Officers Meeting,convenes to discuss policies and steps to be taken on particularly important issues• T he entire Company—business divisions, corporate divisions, plants, research centers, groupcompanies, etc.—implements sustainability promotion activities• Specific issues related to the reduction of energy consumption and greenhouse gas (GHG)
emissions are discussed at the Responsible Care Meeting, Energy Conservation Promotion
Managers Meeting, and Environment Safety Promotion Meeting. By setting up these meetings,
we have in place a system to manage and share essential information on energy use and GHG
emission reduction

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JSP Corporate Report 2022

Plastic resource recycling

3

Cut GHG emissions, use energy more efficiently

JSP Corporate Report 2022

22

Strategy Development

Metrics and Targets

Customers
andbusiness
Assumptions for Scenario Analysis
partners

Target Year: FY2030
Employees
Consumers
Target Entity: JSP
Corporation (non-consolidated)
Scenarios:* (1) In which the global average temperature increase is limited to 1.5°C above
pre-industrial levels.
(2) In which the global average temperature increase is 4°C above pre-industrial
Management policies
levels.
Procedures: Evaluate the impact of risks and opportunities on the entire Company’s businessportfolio and develop response strategies

Localcommunities

JSP has drawn up a roadmap to reduce GHG emissions and achieve carbon neutrality by
FY2050. To achieve the targets, we will set non-consolidated JSP’s GHG emissions at Scope 1
and Scope 2 as a KPI, and promote related initiatives. These will include the installation ofrenewable energy facilities (such as for solar power generation), the purchase of renewableenergy, and further conservation of energy.

GHG Emission Reduction Targets

FY2030Shareholders
and investors

FY2050from FY2013 emissions* The scenario analysis was conducted using SSP-1 (sustainable) and SSP-3 (regional fragmentation) from the “Japanese
SSP,” published by the National Institute for Environmental Studies, based on the “Shared Socio-Economic Pathways(SSP),” published by the Intergovernmental Panel on Climate Change (IPCC).

30%
reduction

Virtually
zero emissions

Climate Change-related Risks, Opportunities, Key Responses
Roadmap Assumptions

Transition risks, opportunities (1.5°C scenario)

Inspire customers andRisks
Keyconsumers
Responses• Tightening of regulations on GHG emissions• Contribute to climate change mitigation by cutting
Deliver satisfaction to shareholders
and communities• Volatile raw material prices
CO2 emissions, using energy efﬁciently• Degree of general consumerawarenessofplastic•
Contributeto recycling of plastic resources by
Be enthusiastic about our work
free products
promoting recycling• Develop and promote environment-friendly• Introduction of carbon tax
products by tapping into creative technological
Opportunities
development capabilities• Expanding market for environment-friendly
products• Growing market for goods made of recycledresources

Gaining understanding, trust, and empathy as a Company society needs• Scope: GHG emissions of non-consolidated JSP at Scope 1 and Scope 2• GHG reduction target: Calculated based on the Act on the Rationalization etc. of Energy Use

GHG emission reduction roadmap (FY2013 = 100, as of June 2022)

16

21

%
%
reduction reduction

16%

21%

Physical risks, opportunities (4°C scenario)
Risks•D� isruption of business site (plants, ofﬁces, salesofﬁces) operations due to severe weather• Negative impact of severe weather on
supply chains

Key Responses• Develop BCPs for business locations ahead ofclimate change; prepare disastercountermeasures, such as ﬂood barriers• Assess physical risks for the company and its
supply chain; use results to devise
countermeasures

Sustainability Management

Opportunities• Growing market for goods to boost Japan’snational land resilience• Expanding market for products to help Japan’s
disaster recovery and earthquake resistance

100%

84%

79%

30

%
reduction

4%

4%

22%

70%
To virtuallyzeroemissions

Medium-term Business Plan (FY2021–2023)

Basic Strategies• Solve customers’ and social issues• Make economic value include social aspects• Strengthen management base
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JSP Corporate Report 2022

FY2013

Base year

2019

GHG emissions

2020
Energy conservation activities

2030
Purchase of renewable energy

2050
Installation of renewable energy facilities(for solar power generation)

JSP Corporate Report 2022

24

JSP Corporation
Shin Nisseki Bldg., 4-2, Marunouchi 3-chome,
Chiyoda-ku, Tokyo 100-0005, Japan

https://www.co-jsp.co.jp/english/

JSP Website
IR Information• To Individual Investors• Management Policy• Financial Performance• IR Events• IR Library• Corporate Stock- and Bond-related Information• Frequently Asked Questions

https://www.co-jsp.co.jp/english/ir/

Sustainability• Message from the President• Sustainability Management• Environment• Society• Corporate Governance• Responsible Care
• Stakeholder Engagement

https://www.co-jsp.co.jp/english/sustainability/

Printed in Japan