Corporate Report 2023
Digest Version

Duskin Co., Ltd.
1-33 Toyotsu-cho, Suita-shi, Osaka 564-0051 JAPANhttp://www.duskin.co.jp/english

DK230630

About the publication of Corporate Report 2023 Digest Version
This report is the digest version of Duskin’s Corporate

Report 2023. Covering our corporate philosophy, messages
from top management, value creation process, businessCorporate Report 2023
ダスキン 統合レポート

strategies, sustainability, and more, this Digest Version
offers a compact summary of our range of initiatives
designed to boost corporate value.

Contents
The Origin of Duskin2Duskin at a Glance

20Long-Term Strategy ONE DUSKIN

4

Business Strategies by Group

22

Message from the Chairman

6

Message from the President

8 Food Group

24

Our Value Creation Process

12

Our Sustainability Strategy

26

How Duskin’s Value Creation Process Works

14

Corporate Governance

28

Financial Highlights

16

Eleven-Year Highlights with Key Performance Indicators

30

Non-Financial Highlights

17

Corporate Information

32

Medium-Term Management Policy 2022

18

Stock Information

33

22

Direct Selling GroupPositioning of this report

Corporate Report 2023

Value creation story

ダスキン 統合レポート

Corporate Report
Original version(in Japanese)
Digest version

Non-financial information
・ESG Data Book
・Corporate Governance Report・Corporate Profile

Financial information
WebsiteSustainability

WebsiteInvestor relations

Comprehensiveness・Securities reports and quarterly
reports (in Japanese)・Summary of consolidated
financial results・Financial results presentationmaterials
・Investors’Notes (in Japanese)

Publications

Corporate
ReportA comprehensive report containing both financial and non-financial information. It includes content related to Duskin’slong-term value creation, business strategy, business results and sustainability initiatives.
https://www.duskin.co.jp/english/ir/library/report/

ESG Data Book

For stakeholders interested in our ESG (environmental, social, and governance)-related information, this booklet presents detailed data and policy information regarding our ESG-related initiatives. It is available on our website in PDF
format.
https://www.duskin.co.jp/english/sus/library/databook/

Corporate Profile

This booklet is mainly intended for people who are interested in learning more about Duskin, such as individuals considering joining Duskin, businesses considering joining a Duskin franchise and corporate customers. It provides a concise summary of Duskin’s business and sustainability initiatives.
https://www.duskin.co.jp/company/library/pdf/duskin2023e.pdf

The Corporate Report is an important tool designed to help enhance discussions with our stakeholders, including shareholders
and investors. It is also a means of explaining our goals to be achieved through the Medium-Term Management Policy 2022 initiatives and the new value we are going to create based on our unique philosophy of sowing the seeds of joy. All in all, the purposeof this report is to facilitate unwavering understanding of our corporate philosophy as well as expectations for Duskin’s future.
It is our hope that this report helps create opportunities for dialog, and that it also works to enhance understanding of our company and who we are. For your reference, the original version (in Japanese) will be published in September 2023.

https://www.duskin.co.jp/ir/library/report/

Editorial Policy■ Terms used in this report	Duskin Corporate Group — Duskin Co., Ltd. and its consolidated subsidiaries; Duskin Group — Duskin Corporate Group andDuskin’s affiliated companies accounted for by equity methods; Duskin Family — Duskin Group and its franchisees (including shops,
offices and plants) that agree with Duskin’s management philosophy.
■ Period covered	This report essentially covers the fiscal year ended March 31, 2023 (April 1, 2022 to March 31, 2023). However, it also covers somebusiness activities prior to that year and for the fiscal year ending March 31, 2024.

Main contents of the original version (in Japanese)
Introduction

Our Value Creation Story

Value Creation Strategies

Foundation for Value Creation■ Our founder’s philosophy /■ Our value creation process■ Medium-Term Management■ Dialogue between the President■ Message from the CFO■ Our sustainability strategy■ Message from the COO■ Corporate governance, etc.

Our raison d’être■ The history of our growth■ Message from the Chairman■ Message from the President■ Capital reinforcement■ Materiality■ Financial highlights /Non-financial highlights

Plan 2022■ Overseas strategies

and Outside Directors■ Scope of coverage

This report concerns Duskin Co., Ltd., its affiliated companies and franchised units (offices/shops/factories).

■ Published inJuly 2023

Note

If the content of the report requires any revision, we will post revised data on our website at https://www.duskin.co.jp/english

Forward-Looking Statement
This report contains information on Duskin’s ongoing business plans and policies, forecasts and strategies. The information is a future forecast at the time of its disclosure and contains potential risks and uncertainties. Readers are advised that actual results may differ significantly from the forecast as they are subject to a variety of factors including future economic conditions and Duskin’s business environment.

CORPORATE REPORT 2023

1

1963
The Origin of Duskin

Our Raison d êtreSowing the seeds of joy for people and society
By sowing the seeds of joy to make people everywhere happy ̶ in addition to pursuing proﬁt, we share our joy withthe people in the areas in which we operate. By doing our part to make peoples lives both materially and emotionally better, we in fact achieve better ongoing corporate value.

Our founderʼs philosophy lives on
This is guided by our founder Seiichi Suzuki s

Our founder felt that proﬁt is the reward of joyous transactions. With the wish that everybody who is in any way
working with Duskin be happy, he worked throughout his entire life to sow the seeds of joy.

enduring life principles reﬂected in Duskin sphilosophy of Prayerful Management. Each

Based on this raison d être, which is the unchanging value that forms the foundation of Duskin s business, we do ourpart for the sustainable development of our society and for corporate growth.

day we strive to stay true to his belief thatproﬁt is the reward of joyous transactions.
Moreover, all of our employees incorporate
his philosophy of putting customer happiness ﬁrst in all aspects of our daily lives.

Seiichi Suzuki, Duskin FounderSeiichi Suzuki was born in Hekinan City, Aichi Prefecture in 1911. In 1938, he joined Ittoen* to serve others and to live a life offaith. In 1944 he established Kentoku Company. From that time onward, Suzuki followed his principle of Prayerful Management,
his purpose being to integrate moral and business goals in both his own and his companyʼs business practices. He founded
Duskin in 1963 and paved its path to becoming Japanʼs ﬁrst multi-franchise enterprise. Seiichi Suzuki passed away in 1980 at
the age of 68.
* This non-religious self-discipline training community based in Yamashina, Kyoto advocates a life with no possession.

Management Philosophy

Franchising to achieve
our business philosophy

Corporate Objectives

Day after day, beginning with today
both you and I have a chance1

to begin our lives anew.
Whether our lot today be proﬁt or loss,

Duskin strives to unify business and morals.
Praying for happiness is the starting point of
all of our corporate activity.

2

We love our fellow human beings and work
to bring out the best in them.
Through our work, we help people develop.

be spiritually ready for loss.
As a planter would,
let us sow the seeds of joy to every person
we meet each day.

National training session for Duskin s franchise chain (1964)

For everyone, for you and me,

Duskin launched its franchising system with the hopethat it would provide opportunities to make dust
control into a successful business for people alignedwith our philosophy of Prayerful Management. We thinkof franchising as a system for franchisor and franchisees
to share in each other s fortunes and realize growth.

may we lead our lives in this world
to the fullest,
realizing our maximum spiritual and material
potential.
2

CORPORATE REPORT 2023

We continuously train and encourage our3

employees to take the responsibility to ask
the simple question: May I help you? with

4

Duskin sows the seeds of joy.
Proﬁt is a barometer of how happy ourcustomers are.

sincerity.
Our goal is to be the best in the world.

CORPORATE REPORT 2023

3

Long-Term Strategy ONE DUSKIN
Corporate Vision

The most attentive service provider in the world

The Duskin family comes together to accommodate our customers, and to render the company essential to the society
we live in
The Long-Term Strategy ONE DUSKIN ̶ the goal of which is for Duskin to be the most attentive service provider
in the world ̶ has been in place for eight years, and we continue to steadily implement this strategy.

Long-Term Strategy
We aim to unite all Duskin businesses so as to serve our customers in the most friendly and welcoming manner.

The Value We Provide

Collaborative value creation with stakeholders

Doing our part for society through our businessIn realizing the concept of uniting all Duskin businesses so as to serve our customers in the most eﬀective andcourteous manner, our goal as a corporate group is to create a community where people are more connected,
and where they can live safely and happily. In order for us to be the kind of presence that people rely on most in
the areas in which we operate, our goal is that the proposals that we make to customers reﬂect their requests inadvance, and that we deliver optimal service to them. The entire Duskin Family is joined together in this initiative.

Collaborative Value Creation with Stakeholders
With customers
Providing products and services that perfectly
match the needs of our customers
In order to listen to our customers directly, we holdwhat we call fan meetings around the nation. At
these meetings, our Chairman as well as head oﬃce
and regional staﬀ for each business group, plus
franchisee owners,
listen to customer
opinions andrequests directly,
which leads toimprovements in
products andservices.

4

CORPORATE REPORT 2023

With local communities

With employees

For the global environment

Supporting local schools and education

Moving forward with diversity and inclusion

Planting the seeds of ecology: in familiar places and for the future

Since 2000, Duskin has supported school education. In
collaboration with school teachers, we carry out researchon how to use the school cleaning period to develop theabilities of children. The results of this research arepresented at feedback seminars held several times a year
for the beneﬁt ofteaching staﬀ. In
addition, our employees visit local
elementary schools topresent lessons tochildren on theimportance ofcleaning.

In order to eﬀectively address the ever-changing needs of ourcustomers and of society in general, it is critically importantthat our employees, who have both diverse careers and social
backgrounds, have respect for each other and that they areable to exercise their abilities to the fullest. At Duskin, ourgoal is to foster aworkplace where eachand every one of ouremployees derive greatsatisfaction from theirjobs and manifest theircapabilities andexperience to thefullest.

Duskin s concept of ecology began with cleaning equipment
rentals. We have also had a history of making sure that we treat
material items with respect. In line with these stances, and in order
to secure the future of the planet, we are reviewing our corporate
activities from the time of product and service development,
production and delivery up to the time after use ̶ encouraging
repeated use, sharing in use, reducing number of items used, andnot throwing away items. We are stepping up all of these eﬀorts.

CORPORATE REPORT 2023

5

Message from the Chairman

Inheriting the spirit of our founder, we remaincommitted to enhance our corporate value,balancing both economic and social value.

Unifying business and morals: an approach we have valued since our founding
This fiscal year, Duskin will be celebrating its 60th anni-

commitment is to continue to be a corporate group thatversary. On this occasion, first and foremost, I would

shares this philosophy.

like to extend my appreciation to our customers, ourshareholders, our franchisees, business partners and ourAt the present time, from the perspective of sustainabili-

employees for your ongoing support.

ty management, it is considered important to generate
both economic and social value at the same time. At

What I have always valued in the management of ourour company, this has been true since our founding. We

company is to think about how our founder, Seiichi

have pursued an approach of unifying business andSuzuki, thought about sowing the seeds of joy andmorals. By morals, we mean that we can achieve a sus-launched a business based on the philosophy of Prayer-

tainable society if we all have kindness and consider-ful Management. Our founder took the leadership to do

ation of others. These kinds of values are universal,

something that would make people happy and thatregardless of time period and generation. Meanwhile,would benefit society as a whole, spreading his busi-

business must continue to generate value to respond toness philosophy both inside and outside the company.

the changing times; otherwise, we will be left behind. In

The idea here is that a company’s profit comes only asother words, by unifying morals, which must remaina result of how it has served others. Duskin does notunchanged, and business, which must change, we

put making money first, though we understand that weengender the utmost in corporate value.

do have to achieve an appropriate profit level. At present, we are engaged in a variety of different businesses,

Through ongoing collaboration with our stakeholders,and if we think of these businesses as the growing

who agree with our corporate philosophy, and by striv-

branches and leaves of a tree, then Prayerful Manage-

ing to unify business and morals, we are working

ment can be likened to the trunk. Never losing the phi-toward more sustainable growth as well as boosting

losophy and spirit of our founder, our enduring

our medium to long-term corporate value.

A focus on achieving the Long-Term Strategy ONE DUSKIN
Three years after I became President and on the 50th

Direct Selling Group and the Food Group. If we are able

anniversary of our founding, we announced the ONE

to increase synergy between these two, our company

DUSKIN concept. At the time, our business divisions

will continue to gain in strength. Our goal now is towere vertically structured. That structure had its own

climb the remaining two stations to the summit. We will

advantages, but we began to believe that if we could

continue to maintain the same humble attitude andgenerate a multiplier effect as a united single group, we

sense of gratitude to our stakeholders as in the past

could create even more value toward our goal of being

and will remain focused on responding to social issues

the most attentive service provider in the world.

and sustainably enhancing our corporate value, while
placing priority on our core concept of unifying business

Since then, we have implemented ONE DUSKIN initia-

and morals.

tives, with our franchisees at the forefront. More recently, during the coronavirus pandemic, our Clean Service,

In closing, I would like to thank you for your continued

Care Service and Rent-All business franchisees came

support.

together to offer Event Hygiene Services.
To be honest, we can say that ONE DUSKIN corresponds to the eighth station of a mountain. One issue
we are working to address is synergy between the

6

CORPORATE REPORT 2023

Teruji Yamamura
Board Director and Chairman

CORPORATE REPORT 2023

7

Message from the President

At the turning point of our 60th anniversary, ourgoal is to bring our concept of sowing the seeds ofjoy to more of the world and to further develop as acompany
Our company’s annual motto for the fiscal year ending March 31, 2024 is“Serving customers with sincerity for 60 years,
may we — each and every one of us — eagerly think, act and sow the seeds of joy.”As we come upon our 60th anniversary, we are returning to our company’s founding philosophy of sowing the seeds of joy. This means that the entire
Duskin Family, including our franchisees and production and logistics facilities will be united in committing ourselves toliving up to our annual motto and our founding philosophy. With each of us having his or her own clear goals and thinking and acting on his or her own initiative, we answer to the expectations of all of our stakeholders, thereby raising corporate value.

Despite the difficult business environment, Duskin has demonstrated its organizationalcohesiveness and ability to take action over the past year
Over the coronavirus pandemic of the past few years,

for the price increases. Regarding Mister Donut prod-

the Japanese economy was hindered by restrictions on

ucts, prices were revised twice in 2022 — in March andbusiness activities, greatly impacting the economy.

November. Friendly and welcoming, face-to-face cus-

Other factors include the protracted war between Rus-

tomer service that we have continued to provide at oursia and Ukraine, rising energy and raw materials prices,

shops appeared to resonate with our customers, withand unstable exchange rates, all of which have impact-

most of them understanding why the change was nec-

ed revenues. As our company has continued to face dif-essary. We very much appreciate this.

ficulties, we have come to realize how much solidarity
we really have and how good we are in terms of our

The Medium-Term Management Policy 2022 initiatives

ability to take concerted action to tackle these difficult

are making progress working together with franchisees.

circumstances. Those who work at our franchisees, our

The Direct Selling Group has already achieved the goal

employees and everyone who has any relationship withof raising the share of antibacterial and antiviral prod-

our company share in our philosophy of sowing theucts and services — the Group’s most important area —seeds of joy — which we have valued ever since weto 55% of the total Direct Selling Group sales in 2023,

were established — as we work to resolve our issues.

first year of the plan that was originally targeted for the

As a result, even though it was a difficult year, all of our

fiscal year ending March 31, 2025. As for our Misterbusiness segments saw increased revenue. We wereDonut business in the Food Group, new products suchreminded that this ability to have a shared philosophy

as for MISDO Meets, which is a collaborative develop-

and take action is truly a major asset for us.

ment project with various popular brands possessing
the highest standard of ingredients and manufacturing

Prices on our major products of the Direct Sellingskills, are consistently performing well. In addition, aGroup, mops and mats, were updated for the first timelarger number of shops are now in operation mainly due

in approximately 30 years in July 2022. Visiting our cus-

to new shop openings, resulting in higher sales andtomers and building communication with them in per-operating profit than the previous year.

son helped our customers to understand the reasons

8

CORPORATE REPORT 2023

CORPORATE REPORT 2023

9

Striving for better customer experience, both in-person and digital
With a view to boosting customer service, we are focus-

At the Direct Selling Group, in addition to focusing on theing on digital technologies as a means of bolstering cus-

application of digital technologies, we are also increasing

tomer experience (CX), not only at the time the productopportunities for direct interaction with customers. In theor service is provided, but also prior to and subsequentfiscal year ended March 31, 2023, we newly establishedto purchase.

dedicated sales teams totaling approximately 250 people, working to expand into household markets. Over the

The Direct Sales Group operates a website for customers

past few years, the number of mop product contracts

called DDuet, which has over 1.5 million members. Cus-

trended downward, but the work of the dedicated sales

tomers can not only place orders from the site, but also

teams at company-owned sales offices and affiliate com-

use the MyPage feature of the DDuet application, which

panies has proved that it was effective in increasing theshows the customer products and services that may benumber of contracts on a net basis. Based on theseof interest to them. At the Food Group, we have intro-

developments, we plan to adopt this initiative at our fran-duced MISDO online ordering services for Mister Donut.

chisees nationwide, not only for mop sales for house-

Customers can use this system via smartphones or otherholds but also for commercial markets.

vice business. By bringing the ONE DUSKIN concept to
the world, we are always looking for possibilities for
expanding our business.
Meanwhile, boosting productivity with DX has become amajor issue. Within fiscal year ending March 31, 2024,
we will attach all of our approximately 31 million mop
and mat rental products with RFID to improve efficiencyof tally and inventory-taking operations by reducing thenumber of manual operations. Most of the cost associated with RFID are recorded as cost. Although revenues
may fall temporarily due to these measures, I hope our
stakeholders understand it is in fact a crucial strategic
investment designed to encourage growth as well as
helping to mitigate the impact of a projected decline in
the number of workers over the mid to long term.

devices to place orders ahead of time, which saves them
the time to wait to check out. Through these kinds of

In addition, at Mister Donut of the Food Group, we aremeasures, in which we combine our personal selling

stepping up kitchenless locations, particularly in metro-techniques with the ability to accommodate customers

politan areas. Comparing to conventional shops with

24 hours a day with digital technologies, we believe wekitchens, this setup conserves space at shops, which

can identify new points of interaction and relationships

saves on shop opening and other costs. This trend is pro-with customers.

jected to accelerate the growth in new shop launches.

Stepping up human capital management, we boost our personnel base for sustainable growthWith a view to sustainable growth over the mid to longwork to create an environment where our employees

term, we are in the process of devising a new vision andrespect each other’s values and different approaches,

working to boost sustainability management.

and where employees are evaluated and compensatedfairly, as well as where they can fully manifest their skills

Challenging ourselves to create new growth opportunity in Japan and overseas
As of last year, the company has been accelerating

new seeds of growth. Specifically, we have established ainvestment with a view to generating new growth oppor-

master franchise contract for our Mister Donut businesstunities. As of February 2022, we have been testing ourin Singapore with R E & S Enterprises Pte Ltd and are cur-emergency locksmith service in the Kinki region under

rently developing this business in the country. In addition,

our new brand Duskin Rescue. This is part of our service

in Taiwan, we have implemented a home cleaning andto address problems in our customers’daily lives. In

helper service.

addition, in November of the same year, we entered intoa business partnership agreement with Qracian Co., Ltd.,In addition, we are setting up an e-commerce site for

a company providing emergency water leak repair ser-overseas customers. We will be re-approaching the vast

vices, and invested in its holding company. Having judged

market of China, now that the country has loosened itsthat the two companies’businesses share some common

strict means of eliminating the coronavirus. As for thefeatures, we decided on this investment as a means ofSoutheast Asian nations, some areas now have higher

providing services to new customers.

income levels than Japan, and there are significant market needs. We are considering which products and ser-Our goal is to generate value beyond the conventional

vices we can present to different groups of customers inbusiness framework through various combinations of

the different countries and areas of the region.

businesses and services. For example, we may combine
our cleaning and key replacement services with Qracian’s

We have high expectations of our overseas business inplumbing services for people relocating.

the sense that we are moving ahead with initiatives

Building our personnel base is an especially importantand experience.

topic for Duskin. From the perspective of human capitalmanagement, we are taking steps to strengthen the per-Meanwhile, regarding environmental issues, we havesonnel base for the future of our company. We revised

established the Duskin Green Targets with our sights set

our personnel system in April 2022. Under this new sys-on 2030. These targets are reviewed annually as wetem — with the goal of helping employees who want tomonitor our progress. We also observe all corporate gov-

take more responsibility in their work to be more moti-

ernance code requirements. In the future, whenever wevated and shape their careers, we have incorporated areview this code, we will respond with sincerity, taking

new promotion system where employees who havethe appropriate responsibility as a listed company.

worked for us for at least two years can work in management regardless of age or job grade. We are also creat-

Our Medium-Term Management Policy 2022 initiatives

ing a corporate environment where any employee canrepresent the conclusion of the ONE DUSKIN as a long-take on challenges, such as submitting ideas pertaining

term strategy. All of the businesses in our Group work

to new business, DX and CX.

together to offer a friendly and welcoming response tocustomers, and to that end we are steadily implementing

As for diversity and inclusion, we have set goals and are

the initiatives stipulated in our business policy. We wish

taking actions. From the time our company was estab-to thank all of you our stakeholders, for your unwavering

lished, our objective has been to create an organization

support.

where anyone can play an active role regardless of age
or gender, and with or without physical disabilities. We

based on the ONE DUSKIN long-term strategy — the10

In addition, regarding our overseas strategies, we havesame as domestically. Along with expansion of our over-

our eyes on the post-COVID era, as we work to cultivate

seas Clean Service, we are also focusing on our Care Ser-CORPORATE REPORT 2023

Hiroyuki Okubo
Representative Director,
President and CEO

CORPORATE REPORT 2023

11

We believe that our business is supported by society and that weshould give back to society by creating something of value together
with our stakeholders. Sowing as many seeds of joy as possible
through effective use of the resources entrusted by our stakeholders
and society at large is our way of returning the blessings we havereceived. That is our way of creating value: living the philosophy ofPrayerful Management in our business practices. We sow the seeds ofjoy throughout our franchise network to continuously enhance Duskin’scorporate value.

Input

●
●

●

●

R&D expenditures: 720 million yen3

Financial capital●●

Total assets: 151.7 billion yen1
Cash flow (Cash and cash
equivalents at end of year):31.2 billion yen3

Endorsement of ourmanagement philosophy /Franchise agreement●

Direct SellingGroup●

Clean Service●

Care Service

Franchise system operation
Product and service
development● Information and logistics
system development● Advertisements and sales
promotions
●

ESG
●
●

Corporate governance
Sustainability(environmental and social)

Managers(Operation and sales support)

Providing trademarks, know-how andoperation systems

Compliance
Education (license renewal,
training, study sessions)
Environmental management

Local
communities

Sales and services● Product assortment
management● Periodic information
sharing (participation
in meetings and study
sessions)● Recruitment andemployment of staff● Improvement of skills● Environmental
conservation● Community support

Mop/mat production facilities:

Collaborativevalue creation withstakeholders
Duskin s

Globalenvironment

CSV(Creating Shared Value)
Suppliers

Senior Care
Other Direct SellingGroup businesses

Doing our part forsociety through ourbusiness

Employees

Economic Value
A business model that contributes to the sustainable●

development of franchisees

Franchisees

Food Group●●

Shareholders,investors

Franchisees

Business Issues

Duskin●Customers

OutputMateriality

Business

Sowing the seeds of joy
for people and society●●

2 locations1●

Aging society and declining birthrate
Changing values and lifestyles
More diverse employment and work styles● More diverse families● Deteriorating global warming issue●●

Manufactured capital●

Accelerating
digitization

since our founding.

6,742 locations in Japan1
11,474 locations outside Japan2

Patents approved:
136 in Japan and 5 outside Japan1●

been our unswerving commitment to the franchise system

Franchise system rooted in local
communities
Cooperation with local governments
and administrative bodies

Intellectual capital

Revitalization of
economic activity
after COVID-19
pandemic

aims to grow together with our partners ‒ franchisees. This has

Employees: 3,739 (consolidated)
Educational facilities
Seishinkan Guesthouse / Duskin
School / Mister Donut College /regional training centers

Social capital●●

OutcomeSociety

United in the philosophy of Prayerful Management, Duskin

Human capital●

Relevant laws
and regulations● Meeting goals set
by the government●

Technology

Our Business Model: Franchise System

1●

EconomyPolitics

Risks and Opportunities

Six Types of Capital●Social issues

Our Value Creation Process●

Medium-Term

Mister Donut

Overseas●

Commitment to return of profits to shareholders(Total return ratio: 106.4%)

Sales growth through customer satisfaction●(Customer-level sales: 411.7 billion yen,

Other Food Groupbusinesses

Management Policy
2022(Average franchise contract length: 36 years)●

Overseas businesses
Dust Control
Care Service
Mister Donut
Big Apple

Rate of periodic inspections at
contracted food processing plants:

100%3

sales growing rate: 5.7％)●

Care Service businesses franchise locations: 2,795●

Senior Care business franchise locations: 276

Note: Because some business locations operate multiple
businesses, the number of locations above (as of March
31, 2023) may differ from the actual number of offices.

Social Value●

Comprehensive partnership agreement with Osaka
Prefecture●

Supporting local schools and education• Rate of female employees in managerial positions:
13.1%

●

Rate of employees with disabilities: 2.82%●

Training received per employee: 18.6 hours●

Rate of recycling food waste: 69.1%●

Food loss and waste reduction rate: 38.6% (from theEnvironmental Value

Natural capital3●●●

Plastic used in containers andpackages: 1,166 t
Energy usage:

2,342,000 GJ (gigajoules)
CO2 emissions: 454,841 t-CO2

Long-term strategy

fiscal year ended March 31, 2021 level)

We aim to unite all Duskin businesses
courteous manner.

so as to serve our customers in the most effective and●Rate of recycling plastic containers and packaging:

19.9%
●

CO2 emissions reduction rate: 20.2% (from the fiscal

year ended March 31, 2014 level)
Notes:
1. As of March 31, 2023
2. As of December 31, 2022
3. During the fiscal year
ended March 31, 2023

12

CORPORATE REPORT 2023

Note: Figures are for the fiscal year ended
March 31, 2023, and the amounts
are rounded down.

CORPORATE REPORT 2023

13

How Duskin’s Value Creation Process Works
Our business model
Duskin’s business model is broadly divided into two franchise systems: the Clean Service business focused on mop andmat rentals and the Mister Donut business.
The Clean Service business rents and sells cleaning and hygiene products to household and business customers
through franchisees. The Mister Donut business provides a fun experience and always-delicious products at shops
where“every customer can happen upon‘something good’at any time.”Both of these business groups depend on our
unique franchise system.

Endorsement of ourmanagement philosophy

How ourfranchisebusiness
systemworks

DuskinConsolidated net sales(Fiscal year ended March 31, 2023)

170.4 billion yen

Franchisees

Customer-level sales(Fiscal year ended March 31, 2023)

411.7 billion yen

Customers

Note: The above sales ﬁgures represent total sales for our domestic and overseas company-owned sales locations and subsidiaries, as well as projected sales
for our franchisees. These ﬁgures are for reference purposes.

Clean Service business (Mops and mats)

Mister Donut business

Through our franchisees, we provide mops, mats and other cleaning and hygiene products for rent,
for use both in the home and in business spaces.

To realize our goal of creating shops where every customer happens upon something good at any time,
we make the Mister Donut experience fun and our products always delicious.

DuskinProduction andlogistics

Franchisees

Customers

Delivery(Rental)Products

Production and logistics

45 nationwide
Manufacturing plants

2 locations in Japan
Our
competitive
advantages

The number of facilities
includes those that only
perform cleaning or
logistics.

Collecting
used mops
and mats● A solid customer basis● Franchise networks and product delivery systems

rooted in the community● A reputation for trust and reliability built throughour 60-year history

DuskinRentalSales unit

Households

1,838 nationwide

Approx. 4.15 million

Sales representatives

Approx. 58,000

Trademark granting,operational
guidance, provisionof business
operation system,
raw materials, etc.

Franchisees(Shops)Customers
Donuts, dim sum,
beverage and otherproducts

Royalties

Returningused mops
and mats

Payment for goods

Shops
Businesses

998 nationwide

Approx. 1.03 million● Cross-selling opportunities available by way of asynergistic effect between the Direct Selling Groupbusinesses● Extensive training curricula and comprehensive
training facilities

Our
competitive
advantages

Note: Because some business locations operate multiple businesses, the number of locations above may differ from the actual number of offices.

● Over 1,000 locations providing places for us tointeract with customers● A well-established donut brand backed by a
50-plus year history● Ability to effectively meet takeout demand

Inputs● Joint product development with other brands

possessing the highest-standard ingredients andmanufacturing skills● A unique training system delivering the same levelof quality and service around the nation
As of March 31, 2023

As of March 31, 2023

Stakeholder
Human capital

Duskin encourages its employees to respect other employees
and to reach their full potential regardless of their gender, age,nationality or career background so that they can create newvalue and excellence by successfully meeting the challenges ofa changing business environment and responding accurately toever more diverse customer needs.

14

Direct-selling, rental subscription,
sales at storesFranchise agreement

Social capital
The foundation of franchisee human resource development isendowing the owners and staff doing business in their own
regions with Duskin’s commitment to excellent service. By
ensuring Duskin service quality, we sow the seeds of joy that
truly meet the needs of customers in each community.

Financial capital

Manufactured capital

A solid financial foundation and stable cash flow generated byprofitably healthy and sustained businesses is what creates new
businesses. Sound financial capital also provides solid support
for business sustainability and stakeholder value creation evenwhen natural disasters or other unexpected risks occur.

Duskin plants and contracted plants that provide one-of-a-kindproducts and services are capital of indispensable importance.
For the contracted manufacturing plants that process products
and raw materials, we conduct periodic inspections, and constantly strive to make improvements and enhancements toquality.

Intellectual capital

Natural capital

Owning and making full use of patents and expertise, brand anddata assets, and other intellectual assets bolsters competitiveness and reduces the costs of such risks as unfair competition
while also contributing to the development of new products
and services, higher productivity and lower costs.

Duskin has built and grown an environmentally friendly,
recycling-oriented hygiene and cleaning product rental business.
Today, in every business domain we are reducing environmental
impact for all processes, from raw material procurement toproduct manufacturing, after-use collection and resource
recycling.

CORPORATE REPORT 2023

Stakeholder

Expectations of Duskin

Opportunities for dialogue

Customers

To be the most customer-oriented company inthe world, and to put pro-customer ideas into
practice

Consumer gatherings, Contact Center, fan meetings, Duskin website

Franchisees

Duskin franchisor and franchisees share thesame philosophy

Support by our Managers, franchisee award programs, franchisee
associations

Local
communities

To become the most trusted and reliable service
provider building harmonious and prosperous
relationships with local communities

Supporting local schools and education, Clean Up My Town (trash
pickup), laundry plant tours, Duskin Museum, education for fraud
prevention

Suppliers

To build strong partnerships through fair andappropriate transactions

Supplier Study Sessions, trade shows, Duskin Purchasing Clean Line

Employees

Employees support each other, embracechallenges and grow together

Labor-management council, Occupational Health and Safety Committee, hotlines, training programs, employee survey

Globalenvironment

To continue environmentally responsible
businesses with goals for business growth

Duskin Green Target 2030 initiative, cooperation for the conservationof the Hakusan National Park ecosystem, abiding by the Ordinance on
Global Warming Prevention

Shareholders,investors

To strive for enhancement of corporate
governance and continuously improve ourcorporate value

Integrated Report, Investors’Notes, financial results briefings, company
briefings for individual investors, meetings with shareholders andinstitutional investors

CORPORATE REPORT 2023

15

Financial Highlights (Years ended March 31)
170.4 billion yen

Consolidated sales

150.0
100.0
50.0
0

161.0
111.9
37.6
14.4
-2.9

2018

158.6 159.1
111.4
35.4
14.8
-3.0

2019

163.2

153.7

111.0

105.3
36.5

36.2

14.5

15.0

-2.7

-3.1

2020

108.4

43.8

48.8

15.4

16.2

2022

8.0

7.9

7.5

6.5

6.0
4.0

4.6

5.0

4.7

4.1

2.0

-3.0

0

2023

Other Businesses

2018

2019

Operating proﬁt

Consolidated sales increased 7,283 million yen (4.5%) from the previous
year to 170,494 million yen. Direct Selling Group sales increased for themainstay Clean Service and some other businesses while sales for Care
Service remained ﬂat year-over-year. The Food Group also reported anincrease in sales due to higher customer-level sales.

Notes:
1. Business segment sales include intersegment sales.
2. As of April 1, 2018, the Clean & Care Group has been renamed the Direct Selling Group.

Proﬁt attributable to ownersof parent

9.8

10.0

170.4

107.1

-3.1

2021

Direct Selling Group
Food GroupIntersegment eliminations

7.1billion yen

2020

6.1

8.6
5.1

Number of Care Service business locations*%

Locations

10

3,000

8
6
4

3.0

Non-Financial Highlights (Years ended March 31 / *As of March 31)

2,000

1,000

2

2021

2022

2023

0

0

Operating margin

Consolidated operating proﬁt decreased 1,261 million yen (12.7%)
year-over-year to 8,637 million yen. This was mainly due to a signiﬁcant
increase in cost of sales as the Direct Selling Group proceeded withstrategic investments as planned. In the Food Group, gross proﬁt
increased thanks to the continued strong performance of Mister Donut.

-700 million yen

Free cash ﬂow

2,795

Number of Senior Care business locations*

2,699 2,742 2,795
2,525 2,607 2,667
1,183
1,068

1,106

1,122

754

761

763

1,136
768

300

790

547 120 557 124 569 132 555 147 560 155 553 166
95
103
36
59
81
93

2018

2019

2020

ServiceMaster

Merry Maids

Total Green

Home Repair

2021

2022

2023

100

0

We saw signiﬁcantly greater demand for our package service for cleaningand disinfection and the residential air conditioner cleaning service
because people were more aware of personal hygiene and stayed homelonger. This has helped us steadily increase new business locations. We
will continue to work hard to recruit more franchisees, expecting thatdemand for outsourced housework and cleaning services will steadily
grow.

20.2%

CO₂ emissions and reduction rate
Thousands of tons of CO₂

％

t

600

60

8,000

240

12.0

180

9.0

6.0
4.0
2.0
0

5.3

5.9

99.63 112.38 109.95
2018

2019

164.71 146.13

5.5

2020

2.8
57.19
2021

Proﬁt attributable to owners of parent

2022

2023

120

6.0

60

3.0

0

0

5.2

%

Billions of yen

80

500.0

69.9

25
0

40
2018

50

50.9
56

40

83
50.4

88
60.2

60
40
20

2019

Dividend per share

2020

2020

2021

2022

2023

2021

2022

2023

0

Dividend payout ratio

The annual dividend for the ﬁscal year ended March 31, 2023 was 88 yen,in line with our basic dividend policy of 60% payout ratio.

CORPORATE REPORT 2023

411.7 billion yen

Customer-level sales

Yen

40.1

2019

Net cash provided by operating activities for the ﬁscal year under review
totaled 12,061 million yen. Net cash used in investing activities, which
included the purchases of marketable and investment securities, was12,844 million yen. As a result, the company reported negative free cash
ﬂow of 782 million yen.

100

50

-0.7

0

18.7

2018

CO₂ emissions

88 yenDividend per share

44.5

200

Net proﬁt per share

Proﬁt attributable to owners of parent was 7,196 million yen, a decline of
935 million yen (11.5%) from the previous year due to such factors as adecrease in operating proﬁt and the recording of a partial impairment loss
on intangible assets. Net proﬁt per share was 146.13 yen.

75

5.0
1.0

2018

400

400.0
300.0
200.0
100.0
0

439
22.9

2019

456
19.8

2020

442
22.4

2021

410

28.0

2022

454
40

20.2

2023

272.5
81.1
28.3
2018

271.8

271.1
79.7

76.7

28.4

29.5

2019

2020

Direct Selling Group

Food Group

253.1

265.6

270.0

95.0

107.3

26.2

28.6

34.3

2021

2022

2023

80.1

Other Businesses

Customer-level sales increased 22,383 million yen from the previous year to 411,772
million yen, with the Direct Selling Group reporting an increase in sales in its mainstay
Clean Service businesses, all of its Care Services businesses, the Senior Care businesses
and in its Rent-All business, where event business is returning to pre-pandemic level. In
the Food Group mainstay Mister Donut business, both customer traﬃc and sales per
customer increased over the previous year, which also contributed to the results.
Notes:
1. Customer-level sales are presented as a reference and represent the total of sales atcompany-owned and subsidiary locations and the estimated sales at franchised locations.
2. Customer-level sales of overseas aﬃliates included in Other Businesses are the total fromJanuary to December of the previous year.

6,000
4,000

20

2,000
0

0

Reduction rate (from the ﬁscal year ended March 31, 2014)

In the Duskin Green Target 2030, our target in the ﬁscal year ending
March 31, 2031 for reduction from the ﬁscal year ended March 31, 2014
level in CO₂ emissions across Duskin Group locations has been raised to
46% from the previous 26%. We strive for corporate growth and asustainable society through our climate change actions.

%

Hours

50

47

16

2,000

13.1

12

1,500

8

1,000

4

500

0

0

30

41

20
10
0

24

27

6.4

7.3

2018

2019

Number of employees

30
8.1

2020

90

94

96

145

150

160

166

172

180

2018

2019

2020

2021

2022

2023

32
9.0

2021

11.3

2022

2023

Health Rent

69.1%

5,600 5,187
4,906 4,305 4,735
40.3

42.6

2018

2019

50.6

55.0

69.1
4,521

59.3

90
75
60
45
30
15

2020

2021

2023

2022

0

Percentage

Mister Donut has been working on reducing food waste. Unsold donuts
are transformed in processing plants into animal feed. Under Duskin Green
Target 2030, we aim to reduce food loss and waste in the Food Group by
half from the level in the ﬁscal year ended March 31, 2001 as a way tocontribute to the creation of a recycling-oriented society.

13.1%

40

90

％

VolumeRate of female employees inmanagerial positions
No. of employees

411.7
382.1 376.9 380.4 359.5 389.3

95

Percentage of food waste recycled

15.0

463

276

With demand remaining high, the number of business locations steadily
increased for the Health Rent and Life Care businesses. We will continue
to work hard to recruit more franchisees by focusing mainly on the rental
and sales of assisted-living products that meet the various needs ofseniors, attentive services not covered by the Long-Term Care Insurance
System, and services for active seniors.

Billions of yen

11.0

266

Life Care

Yen

11.9

256

Terminix

300

7.1

250

106

200

773

245

251

1,159

Billions of yen

8.1

276

Locations

10.0
8.0

16

8.6 billion yen

Operating proﬁt
Billions of yen

Billions of yen

200.0

Amounts here are rounded down.

Annual working hours per employee

1,811

1,844

1,833

1,796 1,779 1,796 1,811

2018

2019

2020

2021

2022

2023

Rate

Since many of our customers are women, Duskin is aware of theimportance of supplying products and services that are attractive,
convenient and comfortable from the perspective of women. The rate offemale employees in managerial positions has been rising steadily. Duskin
will remain committed to empowering women, setting a target for the rateof female employees in managerial positions at 13% or above in the ﬁscal
year ending March 31, 2026.

Duskin considers reducing working hours as one of its highest priorities
and has set annual working hours per employee at no more than 1,800.
Duskin has been implementing many initiatives, including encouraging
employees to take 60% or more of paid annual leave, a No Overtime
Work Day at least once every month and continued implementation of
telework. A staggered work hour system is also in place to allow
employees to work more ﬂexibly.

CORPORATE REPORT 2023

17

Medium-Term Management Policy 2022
■ Basic Policy and Its Positioning within the Long-Term Strategy
Medium-Term Management Policy 2022 spans
the three years from the fiscal year
ended March 31, 2023 to the fiscal year

The most attentive service
provider in the world

ending March 31, 2025

Medium-Term Management Policy

Medium-Term Management Policy

Medium-Term Management Policy

Phase I

Phase II

Phase IIIFiscal year ended March 31, 2016
to fiscal year ended
March 31, 2018

Fiscal year ended March 31, 2019
to fiscal year ended
March 31, 2021

Fiscal year ended March 31, 2023
to fiscal year ending
March 31, 2025

2015

2018

2022

Duskin formulated Medium-Term Management Policy 2022 (for the three years from the fiscal year ending March
31, 2023 to the fiscal year ending March 31, 2025) as Phase III of its long-term strategy ONE DUSKIN. Over thethree years, the company makes every effort to remain valuable to society and thereby to expand its corporate
value by steadily implementing the initiatives within Phase III marking the completion of its long-term strategy ONE
DUSKIN while further solidifying the foundation established during Phases I and II.

Theme

1

Reforming
our businessportfolios■ Direct Selling Group■ Direct Selling Group●●

Focused on the hygiene and cleanliness area, placing the highest priority on sterilization, antibacterial
and antiviral measures for existing products, aswell as the development of new products. As aresult, the sales composition ratio of this area has
increased to over 50% of total Direct Selling Groupsales.
● Work-life management domain: Accelerated theopening of new Care Service business locations tomeet customer needs and began testing a new
emergency locksmith service under the Duskin
Rescue brand in the Kinki region.
● Senior support domain: Accelerated the establishment of new business locations for the Life Careand Health Rent businesses for the further growthof these businesses.
■ Food Group

Investment in new growth
opportunities

Unify business and morals by reforming our portfolios toaddress the changing business climate and solve social issues■ Numerical Targets (Consolidated Basis)● We expect sales growth at an average annual growth rate of about 4%. Our sales target for the fiscal year end-ing March 31, 2025 is 183 billion yen.

● Profit decreased temporarily in the fiscal year ended March 31, 2023 and is expected to decrease again in the fol-Billions of yen■ Food Group■ Business partnership■ Overseas business

●

●

●

2022 results(Base year)

2023(Results)

2024(Plan)

2025(Target)Growth frombase year

163.2

170.4

178.7

183.0

12.1%

Operating profit

9.8

8.6

4.5

12.0

21.2%

Ordinary profit

12.2

11.3

6.5

14.0

14.6%

8.1

7.1

4.4

10.0

23.0%

5.5%

4.8%

–

6% or higher

–

Sales

Profit attributable to owners ofparent
ROE

18

CORPORATE REPORT 2023

Entered into a business partnership agreementwith Qracian Co., Ltd., with the goal of further
expanding our emergency handyman service andhelping people lead better lives.

■ Overseas businessTransferred Duskin Hong Kong's trading functions
to the Head Office and subsequently dissolved thecompany to improve profitability.
● Decided to operate the Mister Donut business in
Singapore and concluded a master franchise
agreement with R E & S Enterprises Pte Ltd.
●Started to install RFID electronic tags on rental
items, which is positioned as the most important
strategic investment in our Medium-Term Management Plan 2022.
● Decided to establish a division called Continuous
Process Improvement to take the lead in raising
employee awareness, the purpose of which is tocreate a corporate culture in which employees discover and solve problems on their own.
● Revised our personnel system with the goal of creating an environment in which all employees —regardless of age — can make the most of theirindividuality and work with a sense of fulfillment.
●

Theme

2

Establishinga solidfoundation

Reduce the amount of discarded donuts by, forexample, starting to sell individually wrapped muffins. This is part of our effort to reduce waste andmake effective use of resources.
● The food waste recycling rate has improved to alevel of over 60%.
● In response to Japan’s Plastic Resource Circulation
Act, switched some forks, spoons, straws, take-out
bags and packaging materials to biomass
materials.
● Increased the use of renewable energy throughprocurement from retail electric providers.
● Continued to switch to energy-efficient equipmentin our shops and plants.
●

Theme

3

Coexistence withlocal communities

Assign new, dedicated sales teams to acquire newcustomers.
● Complete the installation of RFID electronic tags on
approximately 31 million of our products in circulation and link them to our smart factories.
● Develop and propose high value-added productswith enhanced hygienic functions that are in highdemand.
● Strengthen our efforts — mainly through our professional cleaning and technical services — in work-life
management, a service domain that creates sparetime for workers and their families and contributes tothe enrichment of their lives.
● Expand services in the senior care domain by marketing to early seniors and expanding the menu ofservices not covered by the Long-Term Care Insurance System.

Mister Donut continued to focus on MISDO Meets
and MISDO GOHAN.
Focused on improving customer convenience
while moving forward with shop openings andrenovations.
● Enhanced online ordering capabilities.
●

Medium-Term Management Policy 2022 Basic Policy

lowing year, mainly due to costs associated with the installation of RFID electronic tags. However, we expect profits
to rise again in the fiscal year ending March 31, 2025, with targets of 10 billion yen in profit attributable to owners ofparent and ROE of 6% or higher.

Future initiatives

Major initiatives in the fiscal year ended March 31, 2023

Reforming and expanding existing businesses

Long-Term
Strategy■ Initiatives Based on the Three Strategic Themes

Mister Donut will continue to focus on the development of attractive products in MISDO Meets as wellas in other categories.
● Give customers more reasons to use our products
and services through collaborations with otherbrands and collaborative projects.
● Expand our delivery service and penetrate online
ordering by further enhancing their service
capabilities.
● Open new shops — in a variety of store formats — inurban areas where we have yet to open shops, while
we continue to renovate existing shops.
●

Introduce our home cleaning and helper services to
Taiwan to show progress towards completing comprehensive cleaning and helper services in that
region.
● Open new Mister Donut shops in Singapore. Our
Mister Donut business currently operates in Thailand,
the Philippines, Taiwan, and Indonesia, and will continue to focus on Southeast Asia.

Actively invest in human resources — the foundationof our business — in order to strengthen the development of personnel capable of transforming ourbusiness portfolio.
● Introduce new educational tools for all employees aspart of our efforts to create a work environment inwhich each and every employee can achieveself-fulfillment.
● Give due consideration to cost of capital and returnon capital in our business operations; moreover, further ensure appropriate allocation and monitoring oforganizational resources, with the goals of achieving
sustainable growth and increasing corporate value
over the medium to long term.
●

Steadily work on the tasks to complete the Duskin
Green Target 2030.
● Conduct demonstration tests of light, electric vehicles for business use and also establish a battery
charge management system.
● Purchase non-fossil certificates; consider introducing
corporate power purchase agreements.
● Enhance disclosure based on TCFD
recommendations.
● Strengthen initiatives for business continuity planning,
including measures against floods and other largescale disasters.
●

CORPORATE REPORT 2023

19

Duskin at a Glance
At Duskin, our business is centered on the franchise system. Duskin’s history of providing products and services
that meet the ever-changing needs of the times and the demands of society is the accumulation of our practice ofsowing the seeds of joy.

(Excluding intersegment sales)billion yen

Consolidated operating profit

8.6

Food Group48.8 billion yen

108.4 billion yen（63.2%）

Direct Selling Group sales
composition ratio

billion yen

Clean Service 74.0%
Care Service 12.3%
Others
13.7%

Food Group sales composition ratio
Mister Donut
Othersbillion yen–3.0 billion yen

Intersegment eliminations

billion yen

Equity ratio

Shareholder return

4.8

76.6

106.4

%

%

Total
return ratio%

Note: Figures are for the fiscal year ended March 31, 2023.
1. Business segment sales include intersegment sales. Sales composition ratio is calculated excluding intersegment sales.
2. Customer-level sales are presented as a reference and represent the total of sales at company-owned and subsidiary locations and the estimated sales at franchised locations.

Direct Selling Group

5,728 locations

58,000Recyclingrate%

Production and logistics
facilities

Established on November 16, 196345

Intellectual property

R&D costs¹

Approx.

years in business

Patents approved

97.3 136%

in Japan and5outside Japan700

million yen(Duskin Co., Ltd. only)

Note: Figures are as of March 31, 2023
1. The figure is for the fiscal year ended March 31, 2023.

1,014 shops

Food Group

Clean Service

Senior Care

Mister Donut

Clean Service

Health Rent

Duskin Life Care

Mister Donut

MOSDOPie Face

Katsu & Katsu Co., Ltd.

Rental and sales of cleaningand hygiene products

Rental and sales of homehealth care items

Quality home care forseniors

Homemade donuts and avariety of menu items

Collaboration with MOS
BurgerPie specialty stores from
Australia

Japanese pork cutlet
restaurants

1,838 locations

180 locations

96 locations

Care Service
ServiceMasterTerminix

Merry Maids

Total Green

Home Repair

Professional cleaning
service

Pest control and comprehensive
hygiene management

Home cleaning andhelper services

Plant and flower upkeep

Fixing scratches and dents

1,183 locations

553 locations

790 locations

166 locations

103 locations

997

shops

As of March 31, 2023

Others

1

1

shop

15

shop

shops

Launched under a business tie-up
between MOS Food Services andDuskin.

Overseas

Katsu & Katsu Co., Ltd. is a subsidiary of Duskin Co., Ltd.

11,474 locations

Overseas Businesses

OthersRent-All

Uniform Service

Health & Beauty

Azare Products Co., Ltd.

Dust Control and Care Service

Mister Donut

Big Apple

Comprehensive event support

Leasing, sales and cleaning of
uniforms

Natural cosmetics and healthfoods

Sales of natural cosmetics

2 markets (Taiwan and Shanghai)

4 markets(Thailand, the Philippines, Taiwan and Indonesia)

215

459

2 markets

25

11,362102

locationslocationslocations43

locations
Azare Products Co., Ltd. is a subsidiary of Duskin Co., Ltd.

Notes:• The number of locations, franchise units and shops represents domestic operations only, as of March 31, 2023.
• The number of locations for the Direct Selling Group represents the number of franchise agreements. (Sales promotion offices, regional offices and area manager offices are not included.)• Because some business locations operate multiple businesses, the number of locations above may differ from the actual number of offices.

2060

Door-to-door sales salespeople(Customer service
representatives)

Recycling-oriented rental
system¹

ROE

Customer-level sales²

411.7

96.3%
3.7%

33

(Consolidated)

Gender ratio: 61.9% men, 38.1% women(Duskin Co., Ltd. only)

Direct Selling Group

170.4（28.7%）

3,739%

16.2 billion yen（8.1%）

Percentage of Outside
Directors on the Board

Number of employees

13.1

Consolidated net sales¹ Other Businesses

Consolidated net sales

170.4

Rate of female employees inmanagerial positions¹

CORPORATE REPORT 2023

locationslocations

Overseas donut brands(Malaysia and Cambodia)

87

locations• The number of sales locations above is as of December 31, 2022.
• The Mister Donut business locations include shops operated under master franchise agreements.

CORPORATE REPORT 2023

21

Business Strategies by Group

Medium-Term Management Policy 2022 initiatives
The Medium-Term Management Policy 2022 is focusing on three domains: the high-demand hygiene and cleanlinessdomain, the work-life management domain, which helps workers and their families create more spare time and enrichtheir lives, and the senior support domain, which now includes services for the early elderly.

Direct Selling Group

Most notably, in addition to bolstering its existing organization, the Clean Service business has introduced a dedicatedstructure for sales visits aimed at capturing new customers by expanding the scope of direct-contact opportunities withcustomers, a Duskin strength, and enhancing the customer experience. Other efforts we are making to expand points ofcustomer contact include disseminating and gathering digital information and activating communication with our customers through the use of character goods.

Duskin is committed to applying its many decades ofcleanliness expertise to creating hygienic and comfortable
home and workplace environments. Along with helping
customers keep their living and working environments looking
their best, we develop and provide valued-added hygienic
products that combat bacteria, viruses and other unseen
dangers. We are also meeting the needs of our customers by
incorporating work-life management and senior support
services into our existing businesses.

The Three Priority Domains
Hygiene and Cleanliness

Meet hygiene demand by developing
and supplying high-valued products

Work-Life Management

Create and enrich spare time for workers
and families

Environmental analysis

Senior Support

In addition to present services, strengthen
support for early elderly customers

The Four Strategies

Reforming information and distribution systems: We facilitate communication by drawing on our strengths of in-person
interaction with customers as well as new digital technology

Stricter legal regulations pertaining to direct selling
Labor shortages due to a shrinking labor force

Duskin’s strengths

Opportunities

Risks

Rising raw fuel prices

 mergence of a sharing economy for services such as cleaningEand housekeeping

Heightened concern about daily hygiene after the pandemic
Systemization of hygiene control in accordance with HACCP
Value shift from ownership to useIncreased demand for service providers including cleaning andhelper services

 ustomer base of approximately 4.15
C
million households and 1.03 million
business locations in the Clean Service
business
 network of community-basedAfranchisees supporting our customer
base, and product delivery systems
 ultiple businesses fostering aMsynergistic effect by cross-selling
between the sub-segments within the
Direct Selling Group rust and a sense of security in theT
Duskin brandIncreased needs for in-home nursing care and preventive care forfrailty

Sales increased overall for the Direct Selling Group despite flat sales compared to the previous year for the Care Service business. The growth is mainly due to increased sales for the core Clean Service business and for the Senior Carebusiness and other direct selling businesses. Sales increased for the Clean Service business following its price revision in
July. High demand for hygienic products drove sales of high-performance antibacterial and antivirus mats. Opening new
business locations in response to customer needs and other initiatives increased sales for all Care Service and Senior
Care businesses. Among other Direct Selling Group businesses, sales increased for the Rent-All business as the event
business returns to pre-pandemic levels.

Billions of yen

120

111.4 111.0 105.3 107.1 108.4

9

60

6

30
0

15
12

90

■ Operating profit

Billions of yen

12.0
13.4

10.4
11.6

Operating margin%

2019 2020 2021 2022 2023

Note: Segment sales include intersegment sales.

2025 Years ended March 31(Target)Improve the customer experience (CX) with the help of digitalization

This strategy aims to further strengthen our sales representatives
as in-person channels and build a structure where we work
closely with customers in a way that focuses on uncovering newcustomers in the residential domain. It will also deepen our
relationships with customers so as to increase the number ofcustomers.

In order to strengthen the organization into one that provides
and proposes accurate information corresponding to the situationof individual customers, this strategy will expand e-commerce andSNS-based information dissemination channels. This includes, forexample, the strengthening of digital communication using the
DDuet free membership website.

3. Location strategies

4. Laundry and distribution strategies

Create a network of services to answer to customer needs

Boost productivity by way of improved efficiency and manpower reduction

8.3
8.7

9.8
10.5

7.5

Billions of yen
Clean Service

Care Service

8.1

9.3
11.0

7.0

2019 2020 2021 2022 2023

02025 Years ended March 31(Target)This strategy will actively incorporate RFID tags, smart factories
and other digital technologies in order to streamline business
operations and reduce manpower. By boosting productivity, thestrategy will allow us to open up time and human resources thatcan focus on facilitating communication with customers.

Customer-level sales of our national chains (Years ended March 31)

14.0

3
0

Build organization dedicated to cultivating new customers

Senior Care

Other Direct Sellingbusinesses

2019

2020

2021

2022

2023

For residential customers

89.7

87.4

84.0

82.1

81.7

For commercial customers

94.5

94.6

90.5

90.1

91.8

ServiceMaster

29.3

29.6

30.0

32.0

32.1

8.3

8.6

8.2

8.4

8.9

Merry Maids

11.1

11.2

10.8

11.6

11.7

Total Green

2.7

2.8

3.0

3.3

3.6

Home Repair

0.1

0.1

0.2

0.2

0.2

Health Rent

9.9

10.5

11.4

12.4

13.3

Terminix

Operating profit and operating margin
118.9

2. CX strategies

This strategy will work to expand our network of services with afocus on home cleaning, helper services and other care services
for which further growth is anticipated due to an expanding
market, as well as on services for seniors, like nursing-care andnursing-care item rentals. It will also build a location network thatcan reliably address the needs of customers.

Business results overview

Net sales

1. Organizational strategies

Life Care

2.1

2.0

1.8

2.2

2.2

Rent-All

14.3

14.6

4.8

14.8

16.3

Health & Beauty

2.5

2.5

2.0

2.1

2.0

Azare Products

3.5

3.2

2.7

2.7

2.7

Uniform Service

3.3

3.3

3.0

3.1

2.8

The above sales figures represent total sales for our domestic company-owned sales locations and subsidiaries, as well as projected sales for our franchisees. These figures are for reference
purposes.

22

CORPORATE REPORT 2023

CORPORATE REPORT 2023

23

Business Strategies by Group

Medium-Term Management Policy 2022 initiatives
In order to give customers even more reasons to use our products and services, for a three-year period starting fromthe fiscal year ended March 31, 2023, Food Group core business Mister Donut is promoting the popular and jointly
developed MISDO Meets series as well as seasonal products. Moreover, in addition to existing shops, our new shops
strategy will focus on locations where we have yet to open shops, including shops with drive-through service in suburban locations and kitchen-less shops inside train stations. What’s more, in order to provide our customers with newservice value, we are reorganizing our information and distribution by improving our online ordering system, expanding
the number of shops with delivery service and introducing product pickup boxes.

Food Group
Guided by its slogan“something good,”Mister Donut, the Food Group’score business, strives to provide delicious taste and fun at shops“whereanyone and everyone can enjoy a good time every time.”Efforts tomake shops even more convenient and inviting include opening shops in
new types of locations and introducing online ordering. Mister Donut isalso focusing on merchandizing, such as product tie-ups with othercompanies. In addition to these business-related initiatives, Duskin iscontributing to environmental preservation, clarifying its reduction
targets for plastic usage, food loss and waste and CO2 emissions.

Reforming information and distribution systems
Shop opening strategies

CX strategies

Open shops in suburban andurban locations

Deliver new value tocustomer experiences・K itchen-less shops inside
train stations
・ Suburban drive-throughlocations

Environmental analysis・F ood delivery・ Product pick-up box

Online orderImproved product appeal at our competitors, such as
convenience stores and volume retailers

Mister Donut’s strengths

Risks

People eat-in less often due to the spread of the coronavirus

 emand for health consciousness and changes inD
consumers’attitude toward donuts

Opportunities

 apid rise in the price of flour and other ingredients, storeR
utility costs, fuel and other production cost
Expanding business opportunities with services that addresschanges in lifestyles
C ustomer acquisition through MISDO Meets and othercollaborative projects

 upport from our customer base as theSnumber-one donut brand with more than 50
years in the businessAccommodating demand for takeout
Kitchen-less shops
inside train stations

 ustomer touchpoint through a franchiseC
network of nearly 1,000 shops
 arket recognition for providing a superior
M
CX and marketing capabilities through suchmeasures as joint product developmentswith other brands and limited time offers tocreate a buzz.

Product pick-up box

Suburban drive-throughlocations

Food delivery

Existing shops

Business results overview
The Food Group recorded higher sales and profits due to such factors as increased customer sales for the core Mister Donut businessand increases in the sale of raw materials and royalties. While the prices of certain products were revised in March and November, sales
continued to be robust, and both customer traffic and sales per customer were higher than the previous year. In addition, new openings
increased the number of shops in operation, and total customer-level sales for all shops exceeded the previous year. Moreover, theenthusiastic response to many products also greatly contributed to higher sales. These products included products jointly developedwith other companies, seasonally limited products, collaboration products featuring popular characters and year-end lucky bags.
Among other businesses, Katsu & Katsu increased sales, but the reduced number of Pie Face shops and our withdrawal from the ice
cream business in November 2021 with the sale of all shares of Hachiya Dairy Products Co., Ltd., a consolidated subsidiary, resulted inlower sales overall.
Net sales

Operating profit and operating margin

Billions of yen

Billions of yen

60.0
45.0

35.4

36.2

36.5

43.8

48.8

51.5

2019 2020 2021 2022 2023

Note: Segment sales include intersegment sales.

CORPORATE REPORT 2023

2025 Years ended March 31(Target)

11.2
5.4

12.0

8.7

10.0

4.5

8.0

3.6

6.0

2.0

4.0

1.0

2.0

1.9
1.1
0.9
0.6
0.3
0.4
0

2019 2020 2021 2022 2023

■ Katsu & Katsu

While we carried out a second price revision in response to
the ongoing sharp rise in raw material prices, customer volume remains steady and sales continue to be robust. Product policy continues its focus on being a specialty donut
shop dedicated to uncompromising quality for each andevery product served and offering the kind of delicious foodand dining experience that only Mister Donut can provide.

To further boost the takeout business that is its strength,
Katsu & Katsu will introduce online payment and takeout
lockers. Moreover, Katsu & Katsu is working to bolster
shop operation efficiency and profitability by taking
advantage of such synergetic effects as central kitchen
operation thoroughly and repeatedly tested by Duskin
and an improved mobile-compatible POS system.

Major initiatives

Major initiatives

 ffer deliciousness and enjoyment centered aroundO
anniversary specials●Expand contact points with customers with stronger SNS
and more shops in operation●
Increase customer satisfaction with superior service atevery shop

 row core sales through digital transformation and moreGefficient store operation●Boost quality and profitability by introducing central
kitchens●
Boost store operating efficiency with POS systems

●

●

%

Operating margin

8.3

3.0

15.0

24

5.0
4.0

30.0

0

■ Operating profit

6.0■ Mister Donut

02025 Years ended March 31(Target)Customer-level sales of our national chains (Years ended March 31)
Billions of yen

2019

2020

2021

2022

2023

Mister Donut

74.0

77.1

78.0

92.9

105.5

Katsu & Katsu

1.7

1.7

1.6

1.6

1.7

Other Food Group businesses

0.9

0.7

0.4

0.4

0.06

Katsu & Katsu Co., Ltd. is a subsidiary of Duskin Co., Ltd.

CORPORATE REPORT 2023

25

Our Sustainability Strategy
Duskin’s Approach to Sustainability■ Risk management

As an enterprise that aspires to meet society’s expectations with joy, the Duskin Group’s sustainability policy guides
Duskin in its efforts to give back to society and maintain consistent corporate growth at the same time. We believe that
identifying ESG priorities through dialogues with stakeholders and taking a diverse and multifaceted approach to achieving
SDGs are vital to achieving our sustainability goals. We are committed to continuously improving our sustainability efforts
in a way that meets expectations and earns trust as we aspire to be a company that pursues higher corporate value andhelps achieve a sustainable society.

Human capital and diversity is one of these issues, and we have prepared human resource training policies and work environment
improvement policies needed for transforming our business portfolio. Moreover, we have established indexes and targets for sustaining
and improving these policies.

Meeting society’s expectations with joyWith attentiveness to the linkage between people, the environment and society,
we stay receptive to expectations from society and fulfill them with joy.
Through the supply of safe, secure and excellent products and services,
we contribute to the sustainable development of regional societies that provide affluent living and put smiles on faces.

Sustainability Policy

26

CORPORATE REPORT 2023

Advise

Women in management positions: 13% or higher

At least 15 hours per year of training per employee and every
employee takes part in training courses

Male childcare leave: 100％
Annual hours worked per employee: 1,800 hours or less

Measures to ensure worker safety

Promote employee health (Cancer screenings, health awareness,and other health management)

Promote work-life balance

Balance childcare/caregiving andwork

Promote women to management,
foreign hires, hiring people withdisabilities

Second career assistancesystemTake into account impact oftransfers

Balance evaluations andtreatment

Strengthen career development support

Career path reevaluation

Awareness survey: career fulfillment level over 80% for all ages▼

Board of Directors

Employee welfare system▼

The Duskin Group recognizes that it is vital for an enterprise
to contribute both to company growth and to building a sustainable society, and therefore the Group as a whole advocates CSV approach. In order to integrate a sustainability
perspective into corporate management, in 2017, we established the Sustainability Committee as an advisory body to
the Board of Directors and assigned the Corporate Planning
Operating Officer, who is the executive in charge of sustainability, as its chairperson. The Sustainability Committee meets
twice a year to deliberate on basic sustainability policy, how
to respond to notable risks and opportunities, and specify
indexes and targets. In addition, the committee specifies
which initiatives have priority for the year, and it is responsible for studying, deliberating on, evaluating and improving
unresolved issues. Moreover, the committee reports to theBoard of Directors concerning its most important decisions.

Skill development support(Certification acquisition incentive system, etc.)

New personnel management system (started fiscal year ended March 31, 2023)▼■ Governance

Employee treatment system

Personal development
Business-specific training

In emergencies, we prioritize the safety of life and cooperate withthe community to help where we can.

OJT/Off-JT
Company-wide training (onmanagement philosophy, etc.)

9. Crisis management

Company-wide training system

Outside training for selected
employees

We provide products and services that make customers happy.

We manage information appropriately, with meticulous care in
information handling.

ii. Strive to sustain and promote the health of employees and their families and build
an environment that achieves healthy and prosperous employee development.

Career developmenttraining

5. Products and services

8. Information management

ii. Conduct training that instills the required knowledge and skills that every
employee needs to effectively fulfill their roles and responsibilities.

Skill enhancement training

We care about people and aim for a better society.

We take the perspectives of other people into consideration in our
thoughts and actions.

i. Build an environment that enables employees of diverse career and social backgrounds to achieve their full potential.

Level-specific training

4. Communication and interaction

7. Compliance

Work environment improvement policy

i. Conduct employee training that instills the corporate philosophy andmakes it the foundation for employee conduct.

▼

In all of our activities, we strive for the conservation of the global
environment.

We build and maintain workplaces where everyone can develop
their individuality and capabilities in a fair environment and find joy
in their work.

▼

3. Environmental conservation

Human resource development policy

6. Workplace environment improvement

Concept

We protect the human rights of every individual and respect individuality.

Human resource development and work environment policies

Major personnel-related measures

2. Respect for human rights

In addition, responding to climate change is a sustainability issue shared worldwide. The pace and scope of climate change is very hardto predict, so Duskin is focusing on finding solutions to relieve and adapt to climate change, making it a top priority. We also want tonote that we have endorsed TCFD recommendations aimed at improving the quality of climate change-related financial information,and to conform with these recommendations we are improving our disclosure of climate change-related information as needed.

Indexes andtargets

We sow the seeds of joy and continually fulfill the trust of society.

■ Strategies, indexes and targets

To identify risks and opportunities from the stakeholder’s point of view, Duskin organizes and analyzes the external environment frompolitical, environmental, social and technological perspectives, and Duskin recognizes what the key material issues are both for company growth and for contributing to the development of a sustainable society.

Sustainability Vision

1. Sustainable growth

When managing and improving Duskin’s response to sustainability-related risks and opportunities, together with the Corporate Planning department, the Sustainability Committee evaluates the urgency of risks and opportunities. Based onchanges in external factors and their effect on business performance, they identify where in the value chain that the company might be confronted by risk sometime in the future and investigate whether the risk has the potential to become amaterial issue. For risks evaluated to have the potential to greatly impact company financial performance or strategy, thecommittee prepares concrete measures aimed at avoiding or minimizing the risk.

ReportSustainability Committee
Chairperson: Operating Officer, Corporate Planning
Committee members: Chairman; President and CEO;Business/Administrative Group Operating Officers;
Operating Officer responsible for ESG/SDGs;
Outside Directors; Audit and Supervisory Board Members
Meets twice a year (in May and October)

Secretariat: Corporate Planning
Cooperate

CO2 emissions

Renewable energy usage rate (Targets)

t-CO2

600,000
550,000

Scope 1, 2

570,150

500,000

Down 46%

Business divisions, corporate divisions, affiliated companies

2013 (Base year)

2023 (Result)50

Up 50％
35

30

2031 (Target)25

20

398,000

400,000%

50
40

454,841

450,000

350,000

Scope 3

10
Years ended March 31

0

15
5
2023

2025

2027

2029

2031

Years ended March 31

For more information about Duskin’s climate change strategy and climate change indexes and targets, refer to this link.
https://www.duskin.co.jp/english/sus/ecology/savingenergytcfd/

CORPORATE REPORT 2023

27

Corporate GovernanceInitiatives to strengthen corporate governance

Basic policy

We are strengthening corporate governance, as we believe it to be one of the most important issues for business management. In 2017 we created a Directors Evaluation Committee and introduced an Operating Officer System in 2018.
In 2019, we changed the Directors Evaluation Committee to consist of only independent Directors and to function as
an advisory body to the Board of Directors. In 2022, we also increased the number of female Outside Directors by one
to three. Taking into account amendments to laws and changing society, we will continue to work toward further
improvements in corporate governance.

To meet the expectations of various stakeholders and to become a company that achieves sustainable growth while
increasing its corporate value over the medium to long term, Duskin understands that strengthening of corporate governance is one of its most important management issues. In addition to establishing a management system that can respondquickly and accurately to changes in the business environment, Duskin will further bolster its structure, organization andsystems to ensure sound and highly transparent management. Duskin will also place compliance at the center of all corporate activities to continuously improve its corporate value.

■ Changes in the corporate governance structure

2003

Risk Management Committee established● Duskin stock listed on the first section of Tokyo Stock Exchange and Osaka Securities Exchange** The cash equity markets of Tokyo Stock Exchange and Osaka Securities Exchange were integrated on July 16, 2013.
● Management Philosophy included in the Articles of Incorporation● A basic policy for the Internal Control System established

2007

●

The Directors’retirement benefit program terminated

2008

●

The number of Outside Audit and Supervisory Board Members increased from two to three

2013

●

Starts participating in Electronic Voting Platform

2014

●

The number of Outside Directors increased from one to two

Outside Directors and Audit and Supervisory Board Members Council establishedThe number of Outside Directors increased from two to three●Posting of shareholders’meeting notice on the web (earlier than distributing printed
version) started
●

2015

2016

●

Analysis and evaluation of the effectiveness of the Board of Directors started

Directors Evaluation Committee establishedDirectors Evaluation and Nomination System introduced● A share-based remuneration-type stock option program established
Operating Officer System introduced● Independent Outside Directors account for at least one third of all Directors● The number of Directors decreased from not more than 15 to not more than 12

2019

●

2020

●

2021

2022

28

Duskin corporate governance uses an audit and supervisory board system. We have introduced the Operating Officer System
to streamline the Board of Directors’decision-making process and strengthen its supervision of company business. To ensure
the system’s effectiveness, we have also set up the Directors Evaluation and Nomination System. Additionally, to ensure thatthe process of determining the remuneration of individual directors is objective and transparent, we have established the
Directors Evaluation Committee. At the Board of Directors, Directors, who typically serve concurrently as Operating Officers,
monitor and supervise the performance of other Directors. The Audit and Supervisory Board consists of independent outside
Audit and Supervisory Board Members capable of objectively conducting audits and internal full-time Audit and Supervisory
Board Members, who are well acquainted with our business operations and have skills needed to gather information. Under
this system, the Audit and Supervisory Board Members, internal and outside, perform accurate audits. We consider this structure highly effective as it supports customer-oriented management while ensuring sound and efficient business operations.
This system also enables us to swiftly and precisely respond to changes in the business environment.
Corporate governance structure (as of June 2023)
General Meeting of Shareholders

Sustainability
Committee●●●

 dvisory body function of the Directors Evaluation Committee switched to the Board of DirectorsA
instead of to the President
Operations restructured into groups; COO and CFO designatedSuccession Plan to train and develop next-generation management launched
Share-based remuneration-type stock options replaced with a restricted stock remuneration planHybrid virtual shareholders’meeting (a meeting in which online participants do not have voting
rights) heldThree female independent Outside Directors appointed● Moved from the first section of the Tokyo Stock Exchange to its Prime Market●

CORPORATE REPORT 2023

Investment
Assessment
Committee
Operating Officers’Board

Outside Directors
and Audit andSupervisory Board
Members Council

Directors
Evaluation
Committee

Accounting Auditors

Business
Strategy
Meeting

Risk Management
Committee

Compliance
Committee

Audit andSupervisory Board(Members)

Board of Directors

●

●

2018

Corporate governance structure

●

●

2017

https://www.duskin.co.jp/english/ir/governance/corporate/pdf/CorporateGovernance.pdf

Quality Assurance Committee (now Sustainability Committee) established● Compliance Promotion Committee (now Compliance Committee) established
●

●

2006

Details of the Corporate Governance Report are available on the following web page.

BudgetMeeting

President and CEO

Operating Officers

Business segments, subsidiaries

Auditing

Meetings

We hold various meetings where proposals,
advice and reports are
made regarding businessexecution.

CORPORATE REPORT 2023

29

Eleven-Year Highlights with Key Performance Indicators
Long-Term Strategy ONE DUSKIN

Duskin Co., Ltd. and its consolidated subsidiaries
Fiscal years ended March 31

Medium-Term Management Policy

Medium-Term Management Policy 2015

Medium-Term Management Policy 2018

Medium-Term
Management Policy
2022

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

411,494
274,665
115,484
21,344407,225
276,956
106,426
23,842

401,561
270,390105,631
25,539394,850
274,005
95,54925,295384,547
272,633
86,05825,855382,104
272,577
81,14828,378376,994
271,81176,741
28,440380,425
271,189
79,71429,521

359,582
253,178
80,14826,255389,388265,659
95,031
28,698411,772
270,081
107,388
34,302

168,163
9,197
11,027
6,092
9,095
7,083
5,285

167,745
6,641
8,322
4,448
6,246
6,953
3,974

167,987
5,067
7,083
3,441
7,870
7,068
6,319

165,203
5,372
6,707
2,983
1,401
6,704
8,520

161,880
6,069
7,554
4,318
5,309
6,878
6,047

161,031
7,557
8,978
5,324
7,825
6,216
6,047

158,699
7,954
10,011
5,984
8,571
6,415
6,324

159,102
6,577
7,929
5,591
2,178
6,938
6,744

153,770
4,651
6,633
2,821
6,331
7,378
9,243

163,210
9,899
12,215
8,132
7,477
7,462
6,238

170,494
8,637
11,375
7,196
8,316
7,439
7,916

152,811202,375
191

151,903
202,778
246

155,196
198,47552

143,648
190,32220

142,108
190,116
91

147,786
196,058
196

149,884
194,223
18

142,031
185,158
14

145,836
188,39918

151,026
198,055
1,539

151,774
197,524
1,116

16,269– 6,864– 5,980
28,171

12,086– 14,004– 6,553
19,775

6,251
5,515– 4,514
27,118

11,199– 2,826– 12,952
22,50315,803– 3,565– 6,800
27,902

13,111– 7,909– 2,232
30,877

13,606– 12,555– 6,671
25,2378,850
3,137– 10,022
27,167

10,103– 5,019– 2,563
29,674

19,596– 8,524– 835
39,963

12,061– 12,844– 7,992
31,2752,407.88
95.15
40.00
1,878

2,446.24
71.13
60.00
1,979

2,544.09
56.19
40.00
2,080

2,569.53
52.18
40.00
2,022

2,651.76
78.95
40.00
2,428

2,758.28
99.63
40.00
2,697

2,876.63
112.3850.00
2,635

2,872.99
109.9556.00
2,841

2,948.85
57.19
40.00
2,785

3,047.67
164.71
83.00
2,689

3,120.70
146.13
88.00
3,190

75.1
4.1
3.1
19.74
42.0

74.3
2.9
2.2
27.82
84.4

77.6
2.3
1.7
37.02
71.2

75.0
2.0
1.5
38.75
76.7

74.5
3.0
2.3
30.75
50.7

75.2
3.7
2.8
27.07
40.1

77.0
4.0
3.1
23.45
44.5

76.6
3.8
2.9
25.84
50.9

77.2
2.0
1.5
48.70
69.9

76.1
5.5
4.2
16.33
50.4

76.6
4.8
3.6
21.83
60.2

11,35264,994
1,913
1,203
2,015
41.5
16.9
28.5
10.2
2.9

11,352
63,494
1,915
1,500
2,835
39.8
15.9
28.2
13.0
3.0

11,352
63,494
2,947
1,030
1,841
40.0
16.7
26.0
12.6
4.6

11,35257,4941,948
5,000
10,503
41.1
18.1
23.9
13.5
3.4

11,352
55,194
1,749
2,100
4,415
40.2
19.6
23.4
13.7
3.2

11,352
55,194
1,750
—
—
38.7
20.6
22.1
15.4
3.2

11,352
52,694
679
1,430
3,750
40.2
22.7
21.0
14.7
1.3

11,35250,994
1,659
2,679
7,777
39.4
23.3
21.2
12.8
3.3

11,35250,994
1,650
—
—
40.2
22.9
20.1
13.5
3.2

11,35250,994
1,559
—
—
42.2
22.7
19.3
12.7
1.9

11,35250,994
2,492
1,094
3,303
41.8
22.7
18.8
12.7
4.0

3,512

3,552

3,487

3,538

3,528

3,773

3,813

3,802

3,819

3,778

3,739

1,952

1,936

1,928

1,960

1,954

1,991

2,020

1,974

1,988

2,000

1,989

5,751
1,715

5,867
1,541

6,041
1,478

6,128
1,588

6,219
1,607

6,029
1,488

6,086
1,438

6,080
1,121

5,925
1,057

5,937
1,129

5,924
1,074
18,216

Customer-level sales
Customer-level sales(Millions of yen)

Of which, the Direct Selling Group(Millions of yen)

Of which, the Food Group(Millions of yen)Overseas and other businesses*¹(Millions of yen)

For the fiscal year
Sales

(Millions of yen)

Operating profit(Millions of yen)

Ordinary profit(Millions of yen)

Profit attributable to owners of parent(Millions of yen)Comprehensive income(Millions of yen)

Depreciation(Millions of yen)

Capital expenditures(Millions of yen)At fiscal year-end
Net assets(Millions of yen)

Total assets(Millions of yen)Interest-bearing debt

(Millions of yen)

Cash flows
Cash flows from operating activities(Millions of yen)

Cash flows from investing activities(Millions of yen)

Cash flows from financing activities(Millions of yen)

Cash and cash equivalents at end of year

(Millions of yen)

Per-share data
Net assets per share(Yen)

Net income per share(Yen)

Dividend per share(Yen)

Price per share at year end(Yen)

Financial indicators
Equity ratio（%）

Return on equity（%）

Return on assets（%）

Price-earnings ratio
Dividend payout ratio（%）

Stock information*²
Capital stock(Millions of yen)

Outstanding shares(1,000 shares)

Treasury shares at end of year

(1,000 shares)

Repurchase of company stock
Repurchase of company stock (amount)
Shareholders

		
		
		
		

(1,000 shares)(Millions of yen)

Individuals（%）

Financial institutions（%）

Domestic corporations（%）

Foreign corporations（%）

Treasury shares（%）

Number of employees
Full-time employees
Of which, employees of Duskin Co., Ltd.
Part-time employees*³
Of which, employees of Duskin Co., Ltd.
Number of locations

9,912

10,143

10,427

11,067

11,61012,35913,675

14,688

14,64916,342

Of which, the Direct Selling Group*⁴

5,949

6,031

6,135

6,218

6,200

6,245

6,332

6,365

5,664

5,683

5,728

Of which, the Food Group

1,422
2,541

1,398
2,714

1,354
2,938

1,314
3,535

1,195
4,215

1,119
4,995

1,037
6,306

1,003
7,320

985
8,000

996
9,663

1,014
11,474

Total

Overseas*¹*‌ 1 As of December 31 of the previous year
*2 Numbers of shares less than one thousand are rounded down.
*3 Annual average number of employees*4 Figures after March 2021 do not include drink service locations.

30

CORPORATE REPORT 2023

CORPORATE REPORT 2023

31

Corporate Information

Stock Information

Corporate information

Stock summary (as of March 31, 2023)

Name

Duskin Co., Ltd.

Date establishedFebruary 4, 1963

Head Office

1-33 Toyotsu-cho, Suita-shi, Osaka 564-0051

Capital stock

11.3 billion yen (as of March 31, 2023)

Representative

Hiroyuki Okubo,
Representative Director, President and CEO

Number of
employees

1,989 (Duskin Co., Ltd. only), 3,739 (Consolidated)(as of March 31, 2023)

Fiscal year-end

March 31Annual general meetingof shareholders

June

Securities code

4665
Tokyo Stock Exchange (Prime Market)

Stock listing

Subsidiaries and affiliates (as of March 31, 2023)■ Direct Selling Group■ Food Group■ Other businesses

Consolidated subsidiaries（Japan）

As a result of the market segment restructuring
implemented by the Tokyo Stock Exchange, Duskintransitioned from the First Section to the Prime Market asof April 2022.

Trading unit

100 shares

Number of authorizedshares200,000,000 shares

Number of shares issued

50,994,823 shares(including 2,051,028 shares of treasury stock)

Shareholders

49,151(increased by 1,379 people compared to March
31, 2022)

Name

No. of shares
owned(1,000 shares)

Ownership
ratio (%)

The Master Trust Bank of Japan,
Ltd. (Trust Account)

6,625

13.53

Custody Bank of Japan, Ltd.
(Trust Account)

2,371

4.84

Nippn Corporation

1,800

3.67

Duskin Employee Stock
Ownership Plan

1,611

3.29

■ Duskin Serve Hokkaido Co., Ltd.

■ Duskin Ina Co., Ltd.

■ Ono Duskin Co., Ltd.

■ MD Food Kyushu Co., Ltd.

Sumitomo Mitsui Trust Bank, Limited
1-4-1 Marunouchi, Chiyoda-ku, Tokyo

2.89■ Duskin Product Hokkaido Co., Ltd.

■ Katsu & Katsu Co., Ltd.

1,415

■ Duskin Echizen Co., Ltd.

Shareholder registryadministrator

Hirokata Ogasawara■ Duskin Serve Tohoku Co., Ltd.
■ Duskin Serve Kita Kanto Co., Ltd.

■ Duskin Yatsushiro Co., Ltd.

■ Duskin Product Tohoku Co., Ltd.

■ Ever Fresh Hakodate Co., Ltd.

Independent auditor

Ernst & Young ShinNihon LLC■ Duskin Serve Tokai Hokuriku Co., Ltd.

■ Duskin Kagoshima Co., Ltd.

■ Duskin Product Higashi Kanto Co., Ltd.

■ Duskin Kyoeki Co., Ltd.

Duskin Franchisee Stock
Ownership Plan

1,155

2.36

■ Duskin Serve Kinki Co., Ltd.

■ Duskin Shuttle Tokyo Co., Ltd.

■ Duskin Product Nishi Kanto Co., Ltd.

■ Duskin Healthcare Co., Ltd.

■ Duskin Serve Chugoku Shikoku Co., Ltd.

■ Azare Products Co., Ltd.

■ Duskin Product Tokai Co., Ltd.

Sumitomo Mitsui Banking
Corporation

840

1.71

■ Duskin Serve Kyushu Co., Ltd.

■ Kyowa Cosmetics Co., Ltd.

■ Duskin Product Chu Shikoku Co., Ltd.

■ Duskin Okinawa Co., Ltd.

■ Chugai Sangyo Co., Ltd.

■ Duskin Product Kyushu Co., Ltd.

MOS Food Services, Inc.

760

1.55

■ Duskin Towada Co., Ltd.

■ EDIST Co., Ltd.

■ MD Food Co., Ltd.

■ Duskin Utsunomiya Co., Ltd.

■ Wakura Duskin Co., Ltd.

■ MD Food Tohoku Co., Ltd.

Sumitomo Realty & Development
Co., Ltd.

749

1.53

Daiwa House Industry Co., Ltd.

700

1.43

Types of Shareholders（Overseas）■ Duskin Hong Kong Co., Ltd.

■ Duskin Shanghai Co., Ltd.

■ Big Apple Worldwide Holdings Sdn. Bhd.

Equity method affiliates■ Individuals, other

41.79%■ Financial institutions21.74%■ Other domestic corporations18.79%■ Foreign corporations12.73%■ Securities firms

0.93%■ Treasury shares

4.02%（Japan）■ NAC Co., Ltd.

■ Duskin Serve Taiwan Co., Ltd.

Duskin continues efforts to address various issues from the perspective of environmental, social and governance (ESG) criteria.
These efforts have been recognized and awarded by socially responsible investment (SRI) rating agencies and externalorganizations.

■ Mister Donut Taiwan Co., Ltd.

Directors and Audit and Supervisory Board Members (As of June 23, 2023)
Board of Directors
Board Director andChairman

Teruji Yamamura

Representative Director,
President and CEO

Hiroyuki Okubo

Audit and Supervisory Board Members
Audit and Supervisory
Board Member

Hideyuki Naito

Operating Officers
Operating Officer

Seishi Nemoto

Takashi Yoshida

Keiichi Emura

Sachiko Kawanishi

Keishi Morita

Tetsuya Wada

Kyoichiro Arakawa

Kazumi Mori

Board Director and CFO

Naoto Miyata

Hidekazu Saruki

Eiji Hirano

Board Director andOperating Officer

Shinichiro Ueno

Tetsuji Daikuhara

Outside Director

Nobuko Sekiguchi

Kenji Iida

Yukiko Tsujimoto

Hideyuki Kanoh

Fumi Musashi

Koji Tsukamoto

Board Director and
COO

Notes:
1. Our company owns 2,051,028 shares of treasury stock but is excluded from the major
shareholder list. The treasury stock does not include 447,500 shares of our company heldby Custody Bank of Japan, Ltd.
2. Treasury shares are not included in the ownership ratio.

Third-party ESG evaluations（Overseas）

32

Major Shareholders (Top 10 shareholders)Kazushi Sumimoto

CORPORATE REPORT 2023

Outside Audit andSupervisory Board Member

FTSE Russell
FTSE Blossom Japan Sector Relative Index

Sompo Asset Management
Sompo Sustainability Index

FTSE Russell
FTSE Blossom Japan Index

Ministry of the Environment
ESG Finance Award JapanThe MSCI Japan
Empowering Women Index (WIN)

Sumitomo Mitsui Banking Corporation
ESG/SDGs Assessment Syndication

The MSCI JapanESG Select Leaders Index

Ministry of Economy, Trade and Industry
2023 Certified Health & Productivity Management
Outstanding Organization White 500

JPX Group
S&P/JPX Carbon Efficient Index

Nikkei Smart Work Management

Third-party ESG evaluations

https://www.duskin.co.jp/english/sus/evalution/

CORPORATE REPORT 2023

33