New Medium-term Business Plan
Change for Growth 2026
A Global Company for A Global Society

JSP Corporation
Stock Code: 7942
Tokyo Stock Exchange, Prime Market
April 2024
©2024 JSP Corporation

Index01 Review of the Previous Medium-term Business Plan “Change for Growth”
02 New Medium-term Business Plan “Change for Growth 2026”
03 Business Strategy by Segment
04 Financial Strategy
05 Sustainability Management©2024 JSP Corporation2

Index01 Review of the Previous Medium-term Business Plan “Change for Growth”
02 New Medium-term Business Plan “Change for Growth 2026”
03 Business Strategy by Segment
04 Financial Strategy
05 Sustainability Management©2024 JSP Corporation

3

Performance vs. Numerical Targets
Sales were far above the target because of the strong performance of the ARPRO business especially in Europe and the U.S.,
and the forex movements. Operating profit was close to the target but one of the challenges is to improve profitability.
The final year of "Deeper &Previous Medium-term
Higher 2020" MediumBusiness Plan Target
term Business Plan
(FY3/24)(FY3/21)Net sales
OperatingprofitOperatingmarginAssumptions

Forex
Dubai crudeoil©2024 JSP Corporation(Million yen)

Results（FY3/24)

120,000

102.7 billion yen 120 billion yen 135 billion yen
5.2 billion yen

7.7 billion yen

5.1%
Previous Medium-term
Business Plan (FY3/24)

6.4%
Results（FY3/24)

105 yen/USD
125 yen/EUR
15 yen/CNY

141.2 yen/USD
153.2 yen/EUR
19.9 yen/CNY

50 USD/bl

82 USD/bl(Million yen)

160,000

7.6 billion yen
5.6%

80,000131,714114,125

102,668

135,051
8,000
7,563
6,000

4,589

5,185

4,000

2,956
40,0002,000

00
2021年3月期
FY3/212022年3月期

FY3/22
Net sales

2023年3月期

2024年3月期
FY3/24

FY3/23Operating profit

Activities to improve profitability• ARPRO business showed growth especially in the non-automotive parts sector• Invested in two injection molding companies in Europe to create synergies with the ARPRO business• Expanded sales of products that can reduce environmental impact, such as recycled grades and energysaving products• Optimized product portfolio including reducing production of unprofitable products• Raised sales prices to pass on the higher cost of raw materials and utilities• Quickly responded to shifts in demand caused by the pandemic

Section 01 Review of the Previous Medium-term Business Plan “Change for Growth”

4Performance vs. Basic Concepts of the Plan
Steady progress as the basic concepts of the previous Medium-term Business Plan were mostly accomplished, althoughmore work is needed regarding some initiatives
Basic concepts

Activities

Expand the value we
provide for both economic
value and social value toour customers and toaddress social issues

Strengthen the
management base: satisfactory©2024 JSP Corporation

Evaluation

Accomplishments

Social responsibility by supplying
foamed plastic products• Established the Sustainability Promotion Group and designatedmateriality• Support for the TCFD and established JSP Group GHG reduction goals• Started selling products incorporating biomass and energy-saving
products(More efforts to achieving a circular economy are needed.)

Improve human resources
development• Expanded and upgraded training programs for specific job/management
categories(More activities involving human resources are needed.)

Fostering the corporate culture of arewarding workplace• Providing many ways for employees to do their jobs
• Studied new personnel systems and organizational improvements(The operation of new measures will start from FY3/25.)

Secure the occupational safety• Activities to eliminate accidents that suspend operations and otherworkplace accidents• Safety meetings for activities to prevent reoccurrence of similar accidents

Environmental protection• Programs for lowering energy consumption vs. production output

Strengthen corporate governance• Stronger governance for the entire JSP Group• Compliance with the revised Corporate Governance CodeStrengthen information systemfoundation• Revised and upgraded the core business operations IT system: insufficient

Section 01 Review of the Previous Medium-term Business Plan “Change for Growth”

5Progress with the Four Drivers of GrowthTargets were established that assumed a recovery following the end of the pandemic. However, the recovery fell shortof expectations, resulting in sales volumes below the targets. The goals are more sales of value-added products andexpansion of applications.
ARPRO business *(Automotive parts, etc.)

Thermal insulation materials
for buildings and houses

Flat panel display
cushioning materials

Bead Business

Extrusion Business

Extrusion Business

Extrusion/Bead Business
Other

Sales volume up 23%

Sales volume up 12%

Sales volume up 20%

Net sales 3.0 billion yen

Up 9%Down 6%Up 5%

About 2.8 billion yen

Business Segments
Four Drivers of GrowthPlan (vs. FY3/20)

Results

Results (vs. FY3/20)

Plan

Plan
Recovery of automobile production
was lower than anticipated,
although measures to increase sales
volume in non-automotive
applications succeeded.

Results
The number of residential
constructions was low in Japan,
despite the increase in sales volumeof high value-added products.

Results

Made decisions about new
business projects to keep andabandon in consideration of
FY3/22 sales were 33% above theprofitability. Equity investments
target because of strong demandfor displays as people stayed home in two injection molding businesscompanies as progress continued
during the pandemic. Sales
for being a fourth core business.
volume subsequently declined as
demand fell from the pandemic
peak and FPD output slowed down.
Plan* ARPRO business: In the expanded polypropylene business, all P-BLOCK and ARPRO products now use the ARPRO brand.
©2024 JSP Corporation

New business domains

Section 01 Review of the Previous Medium-term Business Plan “Change for Growth”

6Index01 Review of the Previous Medium-term Business Plan “Change for Growth”
02 New Medium-term Business Plan “Change for Growth 2026”
03 Business Strategy by Segment
04 Financial Strategy
05 Sustainability Management©2024 JSP Corporation

7

Positioning of the New Medium-term Business Plan
The new Medium-term Business Plan is the final stage of measures to accomplish the long-term vision, “VISION 2027”.
Becoming more profitable is one of the priorities of the new plan.
The new basic concept has been added toreflect performance during the previous
Medium-term Business Plan and demandsof investors. This concept recognizes theneed to be self-reliant to achievesustained growth rather than relying solely
on changes in the business climate and theneed for actions that are conscious of costof capital and stock price.

Corporate Philosophy

Creatively and Actively Contribute to SocietyLong-term Vision

Management Policy

VISION 2027
A global company for a global
societyMedium-term Business Plan

Change for Growth 2026
(1) Make the entire JSP Group
more profitable*Social responsibility by supplying foamed plastic products means “expanding
the value of products beyond just economic value to include social value as
well, such as by helping solve issues of customers and society”.
©2024 JSP Corporation

Basic concepts(2) Contribute to society by supplying foamed
plastic products*

Section 02 New Medium-term Business Plan “Change for Growth 2026”(3) Strengthen the
management base8

“Change for Growth 2026” Basic Concepts
The new plan adds earnings of the JSP Group to the basic concepts.
(1) Make the entire JSP Group more profitable Organizational optimization; create a new strategic framework and use group
resources effectively
 Enlarge business domains, expand to new geographic areas, and upgrade andstrengthen the product portfolio Implement a financial strategy(2) Contribute to society by supplying foamed plastic products
 Contribute to society and increase profitability by raising the share of
products that can reduce environmental impact(3) Strengthen the management base
 Use a new personnel system to foster the corporate culture of a rewarding
workplace Establish non-financial KPI, such as for materiality, carbon neutrality andhuman resources, and take actions for progress©2024 JSP Corporation

Section 02 New Medium-term Business Plan “Change for Growth 2026”

9

New Medium-term Business Plan Numerical Targets
The goals are to maximize earnings and use capital efficiently by concentrating resources on growing business areas withhigh profit margins, primarily the Four Drivers of Growth.

Net sales

FY3/24 Results

FY3/27 Targets

135,051 million yen

160,000 million yen
10,000 million yen
6.3%
10,400 million yen

18.5%
32.2%
0.7 points
28.0%

6,391 million yen

7,300 million yen

14.2%

6.8%

At least 7.0%

Ordinary profit

7,563 million yen
5.6%
8,127 million yen

Profit attributable to owners ofparentReturn on equity (ROE)

Operating profit
Operating margin

Assumptions

Forex
Dubai crude oil©2024 JSP Corporation

FY3/24 Results

FY3/27 Forecast

141.2 yen/USD

140 yen/USD

82 USD/bl

90 USD/bl

153.2 yen/EUR
19.9 yen/CNY

The plan’s final year
vs. FY3/24

150 yen/EUR
20 yen/CNY

At least 0.2 points

Activities to improve profitability
・Pursue further competitive advantages as a global market leader
・Invest in profitable growth areas based on the Four Drivers of Growth・Expand use of ARPRO not only in automotive but also in non-automotive applications
・Pursue differentiation by expanding products that can reduce environmental impact in
response to growing environmental concerns
・Expand sales of high value-added products, reduce costs by improving productivity andimplement price revisions
Section 02 New Medium-term Business Plan “Change for Growth 2026”

10

The “Change for Growth 2026” Earnings Growth
The goal is record-high sales and operating profit by maximizing sales and earnings.
FY3/25 - FY3/27

FY3/21 - FY3/22

Sales were down during the pandemic

FY3/24

FY3/19 - FY3/23

Profit recovery due to progress in price revision tooffset higher raw material prices, etc.

Earnings down as raw material prices rose, priceincreases did not keep up with rising expenses andprofitability declined mainly in Asia outside Japan

131,714
114,904
9,278$46

109,0489,612$47114,284
9,105$56

Deepen & Grow 2017

116,133$69

113,375

102,668

114,125

135,051

$93
$82

$78

$60
5,185

5,479

Planning on record-high earnings by concentrating
resources on profitable growth areas

5,083

7,563

4,589

(Million yen)

160,000

146,000

10,000
$90

$90
$90

7,000

$45

Deeper & Higher 2020

2,956

Change for Growth

Change for Growth 2026

FY3/27
FY3/26
FY3/16
FY3/17
FY3/22
FY3/25
FY3/19FY3/23 2024年3月期
FY3/24 2025年3月期
2016年3月期
2017年3月期
2018年3月期
2019年3月期
2020年3月期
2021年3月期
2022年3月期
2023年3月期
2026年3月期
2027年3月期
FY3/20FY3/21
FY3/18OperatingDubai crude oil
営業利益
ドバイ原油
profitSection 02 New Medium-term Business Plan “Change for Growth 2026”

Net sales (Overseas)
売上高（海外）©2024 JSP CorporationNet
sales (Japan)
売上高（日本）11

“Change for Growth 2026” The Four Drivers of Growth
For further growth, JSP will continue to concentrate resources on the Four Drivers of Growth. The goal is businessgrowth and higher profitability due to the drivers of growth that reflect changes in market conditions.
ARPRO business *(Automotive parts, etc.)

Business Segments
Four Drivers ofGrowthPlan vs. FY3/24

Thermal insulation materials
Flat panel display cushioning
for buildings and houses
materials(Value-added products)

Bead Business

Extrusion Business

Extrusion Business

Extrusion/Bead Business
Other

Sales volume
Up 23%

Sales volume
Up 15%

Sales volume
Up 21%Net sales

Growth backed by establishment of
production plants in India andnorthern Mexico, growing demandfor environmentally responsible
products, increase of nonautomotive applications and brandstrategies.

Growth backed by expanding salesof high value-added products such
as MIRAFOAM Λ and precut
thermal insulation in the face ofsluggish growth in the number ofresidential constructions.
* The target is based on the rate ofincrease in sales volume of highvalue-added products.

Aiming for growth centered on
rapid market growth, ability tomeet customers’ requirements andmeasures to increase newcustomers* ARPRO business: In the expanded polypropylene business, all P-BLOCK and ARPRO products now use the ARPRO brand.
©2024 JSP Corporation

New business domains

Section 02 New Medium-term Business Plan “Change for Growth 2026”

5.0 billion yen
Aiming to make synergies with theinjection molding companies for
growth in Europe and make efforts
to commercialize productdevelopment activities including
blow molding products in Japan

12

Change for Growth 2026
– Corporate and Research/New Business Strategies
The new plan includes strategies for growth for corporate and research/new business operations for the effective use of
JSP Group resources and the stronger management base while responding to changes in society.
Human resources
strategy• Shift emphasis from age and years of employment to expected responsibilities, roles and capabilities• Create a framework with many career paths and the utilization of specialized skills

Financial strategy• See slide 20 for more information.

Logistics
improvements• Use Japan’s new restrictions on overtime in 2024 as an opportunity to move to a more efficient delivery system anduse this change to cut logistics expenses• Maintain proper levels of inventories (consolidation of warehouses and other measures)

Digital skill upgradeand DX progress
IR strategy
R&D/New business©2024 JSP Corporation• More use of digital technologies and data for DX progress• Digital technology training to build an infrastructure for the DX• Increase the provision of IR information and dialogues with investors• Activities to make the ARPRO brand more powerful• Stronger interaction between R&D and new business development programs; commercialization of basic
technologies and technologies outside the JSP Group
Section 02 New Medium-term Business Plan “Change for Growth 2026”

13

Index01 Review of the Previous Medium-term Business Plan “Change for Growth”
02 New Medium-term Business Plan “Change for Growth 2026”
03 Business Strategy by Segment
04 Financial Strategy
05 Sustainability Management©2024 JSP Corporation

14

Extrusion Business Strategy
Goals
 Optimal allocation of JSP Group resources and efficient use of capital expenditures
 Development and use of recycling technologies
 More environmental products, such as products that reduce the use of resources and that utilize bio-based materials
 Rebuild the Kanuma Plant, JSP’s largest manufacturing facility, to increase efficiency and profitability
Strategies for drivers of growth and products
 Thermal insulation materials for buildings and houses: Increase sales of MIRAFOAM Λ due to mandatory thermal insulation underJapan’s Revised Act on Rationalizing Energy Use
 Flat panel display cushioning materials: Develop value-added products for specific needs and increase sales of these products,
taking advantage of the ability to make technical proposals
FY3/24

FY3/27

Vs. FY3/24

Net sales

47,756 million yen

54,000 million yen

13.1%

Operating profit

2,161 million yen

2,600 million yen

20.3%

Operating margin

4.5%

4.8%

0.3 points*“Other” in the segment information has been merged with the Extrusion Business, which is considered to be highly relevant in terms of human resources and asset utilization, fromthe year ending 31 March 2025. The results for the year ended March 31, 2024, are approximate figures that were reclassified according to the new segmentation.
15
Section 03 Business Strategy by Segment©2024 JSP Corporation

Bead Business Strategy
Business category goals
ARPRO Business• Shift to an organizational structure capable of globally promoting ARPRO business strategy.
• Use the ARPRO brand strategy (global coverage, R&D/innovation skills) to increase earnings• Increase ARPRO weight per vehicle – Expand market share due to growing demand for recycled materials and use of
ARPRO’s superior sustainability properties• Increase sales in non-automotive markets – HVAC components and other local strategy activities• More applications by using synergies with ARPRO foaming technologies and injection molding technologies; use M&A
mainly in Europe
STYRODIA Business (Expanded polystyrene)• Increase quality and profitability of products by establishing stronger technological collaboration with customers• Higher profitability by rigorously cutting costs
FY3/24

FY3/27

Vs. FY3/24

Net sales

87,294 million yen

106,000 million yen

21.4%

Operating profit

6,542 million yen

8,600 million yen

31.5%

Operating margin

7.5%

8.1%

0.6 points©2024 JSP Corporation

Section 03 Business Strategy by Segment

16

Bead Business ARPRO Global Strategy
Expansion to more countries of overseas operations, a driver of growth of the JSP Group
ARPRO existing plants

NEW!

NEW!

Planning on 22 ARPRO
manufacturing locations
worldwide by the end of “Change
for Growth 2026”

Pune Plant(Maharashtra, India)

JSP’s second plant in Mexico

JSP’s first plant in India
Market andreason forthe plant

 Sales of automobile parts are expected to grow in India alongwith the size of the automobile market. Demand is expected
to grow in market sectors other than automobiles too.
 Until now, the products have been supplied from Singapore
to India, but the operation of the plant in India will enable ashift to local production.

Completionand start ofoperation

 Scheduled for October 2024

©2024 JSP Corporation

Ramos Arizpe Plant(Coahuila, Mexico)

Market andreason forthe plant

Completionand start ofoperation

 Many automakers have plants in northern Mexico due partly
to high wages in the U.S. and risk factors involving China.
 Operating a plant near major customers will better enable JSP
to provide a reliable supply of products. The new plant, which
is now under construction in the state of Coahuila in northern
Mexico, will be JSP’s second manufacturing base in Mexico
after the Toluca Plant.
 Scheduled for 1Q of 2025

Section 03 Business Strategy by Segment

17

Bead Business ARPRO Brand Strategy
Starting at the end of April 2024, the brand names of expanded polypropylene (EPP) products of the JSP Group will be
unified into ARPRO brand in all the regions. This 100% recyclable EPP product contributes to achieving a circular
economy. The JSP Group’s share of the global EPP market is already almost 50%. Firmly establishing the ARPRO brand ona global scale is expected to position the JSP Group for further growth.
Brand strengths

 The leading EPP brand backed by a worldwide production network
 Outstanding quality and customer service
 Technical support and ideas to solve problems from experienced specialists
 Dedication to innovation raises customer satisfaction and lowers theenvironmental impact

Main properties

Resilience

Main applications©2024 JSP Corporation

Structural
strengthStrength atlightweight

Thermalinsulation

ChemicalresistanceAcoustic
insulation

Recyclability

Automotive parts: Bumpers, car trunks, sun visors, seat core materials, etc.
Boxes in reusable containers for transporting glass
An impact protection material for athletic fields
HVAC applications, etc.
Section 03 Business Strategy by Segment

18

Index01 Review of the Previous Medium-term Business Plan “Change for Growth”
02 New Medium-term Business Plan “Change for Growth 2026”
03 Business Strategy by Segment
04 Financial Strategy
05 Sustainability Management©2024 JSP Corporation19

Become More Profitable
Return on Equity

The cost of equity is about 6%-7%
based on past performance.

12.0%
系列1
ROE

10.0%

Cost of equity (10-year average)
系列2

8.0%
6.0%
4.0%

8.9%

6.6%

2.0%

10.4%

9.0%

6.8%

5.4%

4.5%

3.7%

3.4%

2.8%

FY3/19FY3/20FY3/21

FY3/22

FY3/230.0%

FY3/152.0x

FY3/16

FY3/17

FY3/18

FY3/2024
5.0%

Positive equity spread

1.8x

PBR and the Equity Spread

1.6x

4.0%

2.0%

1.2x

1.0%

1.0x

0.0%

Negative equity spread

-1.0%

0.6x

-2.0%

0.4x

-3.0%

0.2x
Mar. 31, 2015 Mar. 31, 2016
PBR
PBR

©2024 JSP Corporation

Mar. 31, 2017 Mar. 31, 2018 Mar. 31, 2019 Mar. 31, 2020

By managing businesses with emphasison the efficient use of capital, the goal
is to have a consistently positive equity
spread as the ROE remains above thecost of equity.

3.0%

1.4x

0.8x

An analysis of the cost of equity andthe return on equity shows that there
is a clear correlation between the PBR
and the equity spread, which is the
ROE minus the cost of equity.

-4.0%
Mar. 31, 2021 Mar. 31, 2022 Mar. 31, 2023 Mar. 31, 2024

エクイティスプレッド
EquityEquityspread
SpreadSection 04 Financial Strategy

ROE Target
FY3/27
Medium-to
long-term

At least 7%

At least 8%

20

Optimization of Capital Structure
JSP manages finances with emphasis on the balance sheet with the goal of achieving the most suitable capital structurewith the proper balance between the return on equity and financial soundness.

FY3/27

FY3/24
Liquidity on hand Interest-bearing debt
24.6 billion yen
19.3 billion yen
Liabilities
51.5 billion yen

Liquidity on handInterest-bearing
debt
Liabilities

Liquidity on hand
Maintain a properlevel of liquidity basedon the monthly
volume of businessControl

Total assets
151.6 billion yen

Net assets
100.1 billion yen

Control of net assets©2024 JSP Corporation

Investments for growthfunded partly by debt andmore shareholder returns forthe control of net assets
while preserving a soundbalance sheet

Total assets

Net assets

Section 04 Financial Strategy

Financialsoundness

Control financial
soundness primarily interms of the equity
ratio and credit ratings

21

Policy for Shareholder Returns
As part of the policy involving equity, the shareholder return policy has been revised to increase distributions.
120

JSP regards the return of profits to the shareholders as an important
policy. The Company's policy on profit distribution is to placeemphasis on stable dividends and to make comprehensive decisions
while taking into consideration consolidated financial results for eachfiscal year and the need for sufficient retained earnings for futurebusiness development.

(payout ratio of at least 35% )100(Forecast)
80

Dividend per share (Yen)(Forecast)

60

Distributing earnings to shareholders is one of the highest priorities of
JSP. Our policy is to place emphasis on stable and consistent dividend
payments and to aim for using capital more efficiently and increasing
distributions of earnings to shareholders. Shareholder returns will be
determined by taking into consideration all applicable factors,
including consolidated performance and the proper balance between
retaining earnings for future business activities and distributing
earnings to shareholders. The guideline for dividends is a payout ratioof at least 35% of consolidated net income.
©2024 JSP Corporation

40

20

50

50

50

50

50

65

80

0

FY3/19 FY3/20 FY3/21 FY3/22 FY3/23 FY3/24 FY3/25 FY3/26 FY3/27

Section 04 Financial Strategy

22Capital Allocation (FY3/25-FY3/27 Cumulative)
Strategic investments funded mainly by operating cash flows are planned to increase the profitability of business
operations. The objective is maximizing earnings, with investments focused mainly on output growth andstreamlining projects in the ARPRO business. Debt will be used as needed for M&A and other activities.
Segments

Strategic
investments
15 billion yen
Operating CF
37 billion yen

Maintenance,others
15 billion yen
Shareholder returns
35% dividend payout
ratio

Debt andother sources

Cash-in©2024 JSP Corporation

M&A andother activities

Investment

Major strategic investments

Extrusion

6 billion yen

New Plant in India (Pune Plant)Bead

21 billion yen

No.2 Plant in Mexico (Ramos Arizpe Plant)

Corporate

3 billion yen

Increase North America output
Optimization of production equipment

Revision of shareholder return
policyIncrease shareholder returns
as a part of financial strategy
Funds will be procured fromexternal sources as needed

29.3
billion
yen

30

21.5
billionyenbillionyen

FY3/19-FY3/21 FY3/22-FY3/24 FY3/25-FY3/27

Cash-out
Section 04 Financial Strategy

23

Index01 Review of the Previous Medium-term Business Plan “Change for Growth”
02 New Medium-term Business Plan “Change for Growth 2026”
03 Business Strategy by Segment
04 Financial Strategy
05 Sustainability Management©2024 JSP Corporation24

Sustainability Management (1) Materiality
The JSP Group’s basic policy for sustainability is based on the corporate philosophy of “Creatively and Actively Contributeto Society,” and we have a strong commitment to our corporate responsibilities concerning the environment, society andcorporate governance and aim for the sustained growth of corporate value. The foamed plastic products of the JSP
Group play a role in creating a sustainable society due to their numerous properties and functions: thermal insulation,light weight, conservation of resources, absorption of shocks, ease of recycling, and other benefits.
To upgrade human resources management at the group, “workforce diversity” is an additional materiality.
Elements

The creation ofshared value (CSV)©2024 JSP Corporation

Materialities

1. Contributions of environmentally
responsible products
2. Contribution to plastic resource
recycling
3. Contribution to climate change
mitigation
4. Contribution to food and healthyliving
5. Contributions to safety

Elements

Materialities

Environment (E) 1. Activities for protecting the environment

Society (S)Corporate
Governance (G)1. Improve human resources development
2. Fostering the corporate culture of arewarding workplace
3. Secure the occupational safety
4. Strengthen the information systemfoundation
5. Workforce diversity (additional materiality)
1. Strengthen corporate governance

Section 05 Sustainability Management25

Contributions of Environmentally Responsible Products Extrusion Business
MIRAFOAM Λ is a highly effective thermal insulation material needed to comply with energy conservation standards.
This product helps solve social issues by lowering GHG emissions and using a labor-saving precut installation method.
Japan plans to enact the Revised Act on Rationalizing Energy Use in April 2025. Basically all newly constructed
residential and other buildings will be required to meet the new standard. This is expected to shift insulation
demand from ordinary to high-performance products. JSP’s sales activities are targeting large homebuilders as wellas small regional construction companies.

MIRAFOAM ΛMIRAFOAM Λ is a high-performance next-generation thermal
insulation product with substantial added value that was developed
by JSP by using plastic foaming technologies. The thermal
conductivity of this product is only about 1/70th that of concrete,making MIRAFOAM Λ an outstanding thermal insulation material.
 Ultra-high performance thermal
insulation
Thermal conductivity is 0.022W/m-K(JIS measurement conditions)©2024 JSP Corporation

Thermal insulation placed between sleeper joists
JSP can supply precut insulation sheets that match building
specifications. This service reduces waste materials at construction
sites and speeds up construction. This greatly improves efficiency,
which is a major issue at construction sites.
 Shortens construction work
 Helps companies cope with Japan’s labor
shortage due to declining birthrate andaging population
 Protects the environment (reduces
industrial waste materials)
Section 05 Sustainability Management

26

Contributions of Environmentally Responsible Products Bead Business
The ARPRO business, one of the drivers of growth, is using a sustainability strategy to aim for more growth. One goal is sales
growth and higher profitability by expanding environmental grades of ARPRO. The primary grades are a version in Europe
and the U.S. made of recycled materials and a version made in Japan using a molding process that lowers GHG emissions.
The environmentally responsible ARPRO lineup
Products

Features

ARPRO RE/RC

Made by using recycled polypropylene

ARPRO REvolution

Made almost entirely of recycled polypropylene

ARPRO LC

Uses a molding process that lowers GHG emissions

ARPRO REvolution

 January 2024 investment in German plastic collection/recycling company
JSP expects more growth in demand for ARPRO RE/RC and other foamed polypropylene
products made by using recycled polypropylene. In January 2024, JSP made an investment in
GID, a German company that has been processing and recycling plastics for more than 25 years.
GID’s large network in Europe for collecting and recycling plastic waste provides a stable supplyof polypropylene for recycling. Together with GID, JSP plans to further increase the market
share and supply products for even more applications.
©2024 JSP Corporation

Section 05 Sustainability Management27

Sustainability Management (2) Larger scope of GHG emission reduction target
JSP has established a GHG emission reduction target for its own operations. Going one more step, there is now a
reduction target for the JSP Group. To contribute to achieving the targets of the Paris Agreement, targets forfighting climate change have been established for all group companies. The main goal is net-zero emissions by
2050 (Scope 1+2). The first goal is a GHG emission intensity reduction of at least 30% vs. the FY3/14 level by nolater than FY3/31.
The JSP Group has energy conservation, renewable energy use and many other activities for achieving the goalof carbon neutrality.

FY3/31

FY3/51JSP Group

Emission intensity down 30%+
Emission volume down 15%+
(Scope1+2)

Net zero

The JSP Group lowers Scope 3 GHG emissions by using biomass and recycled materials and lowers Scope 4 GHG
emissions by increasing sales and the use of environmentally responsible products.
©2024 JSP Corporation

Section 05 Sustainability Management28

Sustainability Management (3) Human resources
The JSP Group positions human resources as the energy that creates economic value and social value. A workforce witha diverse range of perspectives and values is essential for the success of this value creation process.
Materialities

Indicator

FY3/24 outlook

FY3/27 targets

Upgrade training and education (JSPC)

Expenses for job-specificprograms

15 million yen

Up 15% vs. FY3/24

Fostering the corporate
culture of a rewarding
workplace

Increase male employee use of child caretime off (JSPC)

Male child care time off
utilization

76.9%

Keep rate above
60%

Increase employee engagement (JSPC)Engagement indicator

49.8

51.0

Secure the occupationalsafetyPrevent operation suspension accidents(JSPC and Japan group companies)

Lost work time accidents
Serious workplace
accidents

4
0

0
0

More female managers (JSPC)

Pct. of woman inmanagement positions

5.8%

10 %

More hiring of experienced people (JSPC)

Pct. of new employeeswith prior work experience

59.4%

Maintain/increase

Jobs for people with developmental
disabilities (JSPC and JSP Molding, a special
subsidiary for employing these people)

Developmental disability
employment pct.

5.8%*

Keep rate above 5%

Improve humanresources development

Workforce diversity

Goal*These figures are based on the Disabled Person Employment Report dated June 1, 2022, that was submitted in accordance with the Act on Employment Promotion of Persons with Disabilities.
©2024 JSP Corporation

Section 05 Sustainability Management

29

Cautionary statement with respect to forecasts
Forecasts are based on all the information currently available,
and the actual results may differ due to various factors.
Inquiries: Tel +81(3)-6212-6306
Public and Investor Relations Group©2024 JSP Corporation