Integrated Report 2022

FEED ONE CO., LTD.
2-23-2 Tsuruyacho, Kanagawa-ku, Yokohama-shi, Kanagawa
TEL: +81-45-311-2300
URL: https://www.feed-one.co.jp/english/

MAKE THE LEAP

Fiscal Year Ended March 31, 2022

About FEED ONE

About FEED ONE
P01-08What FEED ONE
Aims to Achieve

Strengthening the Foundation
for Value Creation

P09-18

P19-54M a na g e men t Ph i l osoph y

Data Section
P55-64

Corporate Slogan

T h e S o u rc e o f D e l i c i o u s n e s s
The slogan represents our strong commitment to making as many
people as possible aware that feeds are deeply connected withthe production of meat, fish, eggs, and dairy products weroutinely eat and that FEED ONE is producing and delivering thefeeds to customers every day.

MissionLogo

The first step in producing feed is to form an image of the future of food,in terms of contributing to the sustainability of the livestock and fishery industries.

FEED ONE wants to be a company that is always grateful for thebounty of the good earth, as it contributes to the world’s foodculture through the production and sale of compound feeds. The
FEED ONE logo crystallizes these thoughts, along with the motifs
of earth, sea and sun, in a single image. At the same time, thelogo expresses the energy of life (yellow) and the operations bywhich it grows: the livestock industry (green) and the fisheries
industry (blue). Enclosing all of these elements in a shaperesembling an egg expresses our desire to deliver to customers astable supply of safe, trustworthy feeds.

VisionWe aim to be a Company that consistently produces food that is trustworthy
and exciting to the palate.

Contents

Editorial Policy

ValuesFEED ONE CO., LTD. places great importance on proactive dialogue
with stakeholders in all of its business activities.
The purpose of this report is to report our management strategies
and our business and CSR activities to help readers comprehensively
understand the social and economic value we create.

We constantly strive to provide solutions that address the needs and issues of customers and consumers.
To supply our customers with safe and reliable foods in a stable manner,
we conduct thorough compliance with regulations.

Guideline Used as Reference
The International Integrated Reporting Framework published by theInternational Integrated Reporting Council (IIRC)
Scope of Report

We develop highly specialized personnel who can grasp changing trends

The report covers business activities from April 1, 2021 throughand constantly tackle challenges.

March 31, 2022 (including the content of some business activities

We sincerely strive to build trust with society through thoughtfulness, fairness, and humility.

that started in or after April 2022).
Communication Map
Summary

Integrated Reports (Japanese/English)

Details

AnnualSecurities
Reports

FEED ONE CO., LTD. Integrated Report 2022

01
03
05
07

Management Philosophy
History of FEED ONE
At a Glance
Financial and Non-Financial Highlights

09 What FEED ONE Aims to Achieve
09
13
15
17

Dialogue Between the Chairman and the President
Message from the Officer in Charge of FinanceBusiness Vision and Medium-Term Management Plan
Value Creation Process

19 Strengthening the Foundation for Value Creation
19
23

Business Strategy
R&D Strategy and
Structure
Production Structure
Sustainability Policy

Reports for
Shareholders(BUSINESS REPORT)

Corporate
Governance
Reports

24
25

Financial Results
Briefing Materials

Sustainability(Web)

55 Data Section

Financial Information

01

01 About FEED ONE

55

Non-financial Information

57
59

Financial Data for theLast 7 Years
Financial Summary
Consolidated Financial
Statements

27
29
35
43

Efforts for ESG/SDGs
Environment
SocialCorporate Governance63
64

Company Information
Share Information

Integrated Report 202202About FEED ONE

About FEED ONE
P01-08What FEED ONE
Aims to Achieve

Strengthening the Foundation
for Value Creation

P09-18

P19-54

Data Section
P55-64

History of FEED ONE
The FEED ONE Group was established in 2014 through the integration of Kyodo Shiryo Co., Ltd. and Nippon Formula Feed Mfg.
Co., Ltd., two long-established companies.
FEED ONE has continued to enhance its corporate value by combining the strengths that the two companies had accumulated
since their foundation.
Since its foundation, the Company has contributed to the development of the livestock and fishery industries by delivering
products and services to customers under the FEED ONE brand, drawing on the strengths of the two companies.
The Company will continue to take on new challenges for delivering food security and the enjoyment of eating to ultimately
contribute to the sustainable development of the industry, society, and planet.

Nippon Formula Feed Mfg. Co., Ltd., established in 1929
Kyodo Shiryo Co., Ltd., established in 1946
FEED ONE HOLDINGS CO., LTD.,established in 2014

First Medium-Term Management Plan (FY2015–FY2017)

Second Medium-Term Management Plan (FY 2018–FY2020)

Third Medium-Term Management Plan (FY2021–FY2023)

FEED ONE CO., LTD.
established
Set the stage for its
10-year ideal state

Optimizing Our Busi ness Portfolio

Putting the Finishing Touches on Business Integration—To Become a True Leading Company!—

FY2014FY2015

FEED ONEHOLDINGS CO., LTD.
established(business integration)

FEED ONE CO., LTD. established (fullintegration)
Completed the construction of an aquatic
feed factory in India, namely Nippai Shalimar
Feeds Private Limited (affiliated company)

Establishmentof companies
and factories

FY2016

Bas i c s t ra t eg ies
Strengthen
production
facilities

FEED ONE CO., LTD. Integrated Report 2022

FY2019FY2020FY2018Completed theconstruction of theKitakyushu factory(renamed the
Kitakyushu Aquatic Feed
Factory in April 2020)

Feed One Foods Co., Ltd. established throughthe integration of FEED ONE’s meat businessand two affiliated companies

Bas ic s t rat eg ies
Optimally
allocate
management
resources

Further strengthen the
profitability of Animal Feed,which is our core businessAccelerate growth of AquaticFeed, Food Business, andOverseas Businesses

FY2021

Magic Pearl Co., Ltd. established throughthe integration of two affiliated companies

Started genomic analysis services for dairy cattle
Started analysis services for raw milk fatty acid compositions
Launched new food products
Yamitsuki horumon (pork offal
you will crave)
Tongisukan (pork version of
Jingisukan, a Hokkaidospecialty grilled mutton dish)Kokusan Buta Shiro Motsu(white offal of domestic pork)

Started internal andexternal initiatives
Food and nutrition
seminarsChildren’s visits toparents’ workplaces

Began shipping
fully-farmed Pacificbluefin tuna

Started sponsoringand participating insocial contribution
eventsYokohama Marathon
WFP’s Walk theWorld event

Concluded anagreement tosupport for aparent-child communication program
launched by the
Kanagawa Prefectural Government

Launched Red sea bream DP Force ONE,low fish meal feed
Launched a new food productShobu-noMotsu Nikomi(finest stewed
pork offal)

Formulated a plan of action for general employers
according to the Act on the Promotion of Female
Participation and Career Advancement in the Workplace
Developed a common employers’ action plan according
to the Act on Advancement of Measures to Support
Raising Next-Generation Children
Accredited Class AA in the Yokohama Health andProductivity Management Certification 2021
Became a recognized organization in the large
enterprise category under the 2021 Certified Health &Productivity Management Outstanding Organizations
Recognition Program
Registered as Kanagawa SDGs Partner
Launched the ESG Committee

Promote ESG management
and strengthen businessplatform

FY2021

Installed Vietnam’s first flake feed production facility at
Kyodo Sojitz Feed Co., Ltd.
(affiliated company), an animal feed factory in Vietnam

Completed theconstruction of
the Kitakyushu
Animal Feed
Factory

New products
and services

03❸
Establish theprofit base of
the overseas
businesses

FY2017

Launched FIBEGEAR DROP
(automatic milking), a patented product

ESG/SDGs andother topics❷
Increase thebrand powerof the foodbusiness

Launched Trout EP Seika, low fish meal feed for trout
Launched Feed Care, synthetic milk for pigs
Launched a new food productOnikuyasan-no Kodawari
Motsu Nikomi(Butcher’s finest stewed
pork offal)

Accredited Class AAA in the Yokohama Health and Productivity Management
Certification 2022
Became a recognized organization in the large enterprise category under the 2022
Certified Health & Productivity Management Outstanding Organizations Recognition
ProgramJoined e-dash, a service platform to support decarbonization initiatives
Developed a human rights policy
Launched the “My SDGs Declaration” project
Registered in the Kitakyushu SDGs Registration System (the Kitakyushu Animal
Feed Factory and Kitakyushu Aquatic Feed Factory)
Issued an Integrated Report as the first company in the feed industry
Green Farm Sogo Co., Ltd. (affiliated company) awarded as a contributor toagriculture, forestry and fisheries in Kyoto
Joined open innovation with startups (The Bank of Yokohama Accelerator Program)

TOPICS

Installed Vietnam’s first flake feed production facility at
the animal feed factory (affiliated company) in Vietnam
In March 2022, we completed installing Vietnam’s
first flake cattle feed production facility at Kyodo
Sojitz Feed Co., Ltd. We aim to grow further bytapping into the market for cattle feed through theprovision of guidanceon feed technologies
we are excel at andthe promotion ofthem.

Launched new products that leveraged our proprietary technologies
Launched Trout EP Seika, low fish meal feed for trout
We successfully developed and started selling low fishmeal feed made only from inexpensive and stably supplied
raw materials. This meal
feed has an equivalentfeature to high fish meal
feed in terms of trout
growing speed. This
product is low fish mealand eco-friendly feed.
Launched Feed Care, synthetic milk for pigs
Feed Care is synthetic milk for pigs made from new
and unique raw materials developed based on ourlatest research findings and knowledge. This easily
digested milk enables pig farmers to stably grow baby
pigs and maintain theirhealth. This isinnovative feed andexpected to contributeto the livestockbusiness.fish meal andeco-friendly feed.
Integrated Report 202204About FEED ONE

About FEED ONE
P01-08

FEED ONE operates in three business segments: the feed business deals in animal, lab animal, aquatic, and beekeeping
feeds; the food business delivers meat, eggs, and marine products; and the other businesses include the sale oflivestock and fishery equipment and the real estate leasing business. As the most reliable partner of customers, FEEDONE aspires to become a leading company that contributes to the sustainable growth of the industry.

Industry’s leading
sales capability
Although domestic demand for formula

Strengthening the Foundation
for Value Creation

P09-18

P19-54

Data Section
P55-64

One
’s

wer
Po

At a Glance

What FEED ONE
Aims to Achieve

Comparison between the amount of animal feeds
distributed and our sales volume

FEED ONE’s
Strengths
3,700

Amount of formula feeds distributed (thousand metric tons)

Our sales volume (thousand metric tons)

27,000feeds has remained unchanged, our sales
volume has increased over the years. We
are one of the top sellers in the animal

Feed Business

Food Business

Animal Feed, Aquatic Feed, Lab Animal Feed, Beekeeping Feed

Production, Purchase, Processing, and Saleof Livestock and Aquatic Products

We leverage the technologies and development skills we haveaccumulated over many years to provide safe and reliable feeds
tailored to the needs of customers, which contribute to improving
customers’ productivity.

We have built an integrated food value chain,spanning from production to sale of meat, eggs, andaquatic products as three pillars of our business.

Animal Feed

Food BusinessWe provide safe and reliable feeds, primarily for poultry, pig, and cattle,
which help solve problems at production sites and address differentiationneeds based on experiments at our facilities and analyses of field data.

We manufacture and sell products meeting theneeds of our customers through a nationwide
network of affiliated companies processing meat,
those processing and distributing eggs, andthose producing marine products.

Aquatic Feed

Livestock Farm Business

Fish are essential to Japan’s food culture. A lot of fish are farmed. We deliver
high-quality formula feeds indispensable for aquaculture by leveraging thetechnologies we have long accumulated as a pioneer in this field.

We own an affiliated company farming eggs in
Kyoto Prefecture and other affiliated companies
farming pigs in Aomori and Iwate Prefectures to
produce safe and reliable eggs and pork.

Lab Animal Feed

formula feed industry.

84%

We manufacture substitute pollens which aresupplied during the building-up period when it isdesired to increase the number of bee larvae
or when there is not much pollen, as well
as beekeeping sugar when there is notmuch nectar, supporting beekeeping
businesses and contributing to thedevelopment of the beekeeping industry.

billion yen*

Fiscal year ended
March 31, 2022

Manufacture and Sale in Vietnam and India

1%

Other Businesses
Sales of Livestock andFishery Equipment

Besides feeds, we make proposals related
to the environment of livestock barns.
Livestock and Fishery Equipment
We not only sell feeds but also
propose solutions tailored tocustomers’ requests such as
pre-mixed feeds, construction
materials for livestock barns, and avariety of supplies, materials, andequipment.

In Vietnam, the world’s seventh largest country
in terms of the number of pigs raised, we
manufacture and sell animal feed primarily forpigs. In India, the world’s second largest country
in terms of aquaculture production volume, wemanufacture and sell aquatic feed.
*Sales of our overseas affiliated companies are not included in the Group’s total sales because they are all entities accounted for using equity method.
Note: The Company has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29; revised on March 31, 2020) and its implementation guidance since the beginning of
the fiscal year ended March 31, 2022. Sales for the fiscal year ended March 31, 2022 are the figure that reflects the application of the accounting standard and its implementation guidance.

05

FEED ONE CO., LTD. Integrated Report 2022

2017

2018

2019

2020

2021 (FY)Nationwide manufacturing
capability that underpins
stable supply

Contribution to the development of
the industry with our reliable
research and development capability

Competitive
procurement capability

We operate 14 factories in Japan,
including the Kitakyushu Animal Feed
Factory, completed in 2020, andjoint-venture factories. We actively makecapital investments to help the stablesupply of formula feeds.

We have a strong research and development
capability. We meet the needs of society andcustomers by applying the technologies that wehave long accumulated and the cutting-edge
technologies to product development, quality
control, feed technologies, etc.

We will purchase raw materials in astable and competitive way by procuring
them from multiple production areas andassigning personnel in charge ofprocuring raw materials to manufacturingbases nationwide.

Business development into Asia that is expected tohave growing demand

India
VietnamWith our feed manufacturing technologies accumulated in Japan, we have actively developed
our business centered in Asia where markets are expected to expand.

Sales in the Feed Industry

15%

Overseas Businesses

2016

Industry Trends Related to the Feed BusinessTotal sales

243.2

3,000

2015

In animal experiments, nutritional factors are one of the important factors thathave a great impact on experimental animals. We produce feed for thoseanimals by strictly managing processes, ranging from the procurement of raw
materials, blending, granulation, storage, and analysis to transportation.

Beekeeping Feed

20,000

Cost of sales

Sales prices of our animal feed products

In the feed industry, imported grains account for a majority of raw
materials. As imported grains are susceptible to market conditions
and foreign exchange rates, their prices are revised in January,
April, July, and October every year in line with changes in market
2020.4 5678910 11 12 2021.1 2
3
4
5
6
7
8
9
10 11 12 2022.1 2
3 (Month)
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
conditions and exchange rates. The prices of raw materials havecontinued soaring these days due to changes in grain market conditions, exchange rates, and the global situation as well as rising ocean freight charges andother factors. We have accordingly continued raising prices. While the sales volume of animal feeds in FY2021 increased by approximately 1% year-on-year,
their sales increased by approximately 27% year-on-year as we raised sales prices due to the aforementioned soaring prices of raw materials. This suggests
that, in the feed industry, sales revenues do not serve as the metrics to measure business growth as the prices of raw materials greatly impact our sales prices.

Current Status of the Formula Feed Price Stabilization System
The two-phased system of ordinary and extraordinary compensation compensates farmers to mitigate the impact of rising feed prices on the livestock business.
As enough funds had been reserved, fund collection was waived in the fiscal year ended March 31, 2021. However, compensation claims were filed thereafter
due to a rise in the prices of imported raw materials, and fund collection was resumed in the fiscal year ended March 31, 2022.
Compensation paid is expensed as selling, general and administrative expenses and one of the major factors affecting revenue.

How the system works (case of Q4 in the fiscal year ended March 31, 2022)
Government

Contribution (half)

Formula feed manufacturers

Contribution (half)
Contribution (basic + special)
800 yen per ton

Livestock farmers

Contribution (basic only) 400 yen per ton

Ordinary compensation
Extraordinary compensation

Extraordinarycompensation fundChanges in reserve funds (by formula feed manufacturers)
Ordinary compensation: basic

Ordinary compensation: special

Extraordinary compensation (yen)the government andmanufacturers make contributions

Extraordinary compensation

52
300

300

600
250
0
250

0

400

400

400

Ordinary
compensation fund600

farmers and manufacturers
make contributions

1st half 2nd half 1st half 2nd half 1st half 2nd half 1st half 2nd half 1st half2019.32020.32021.32022.32023.3

600

500

0

0

600

Integrated Report 2022

06

About FEED ONE

About FEED ONE
P01-08What FEED ONE
Aims to Achieve

Strengthening the Foundation
for Value Creation

P09-18

P19-54

Data Section
P55-64

Financial and Non-Financial Highlights
Financial Highlights
Sales

Sales Volume of Formula Feed

243,202 million yen

3,613 thousand metric tons

Capital Expenditures / Research and Development Expenses

2,659 million yen / 755 million yen(Thousand metric tons)(Million yen)

243,202
215,050
207,562
214,120
212,886

Cash Flows

Capital expenditures (million yen)
Research and development expenses (million yen)

3,577 3,581 3,613
3,423 3,475

7,934 8,120

Net cash provided by (used in) operating activities (million yen)
Net cash provided by (used in) investing activities (million yen)Free cash flow (million yen)

9,199

3,811

2019.32020.32021.32022.3Operating Profit / Operating Profit to Sales

4,293 million yen / 1.8 %

3,706
1.8

2018.32022.3

5,067 million yen / 2.1 %
5,737

4,293

2018.3746

752

2019.34,1032021.32020.32021.32022.33,659 million yen / 8.5 %Profit attributable to owners of parent (million yen)
ROE (%)

6,081

4,657

2018.3(7,475)2019.32022.32020.32021.32018.32019.32020.3

2.8

13.5

2.1

2021.39.4

2022.32018.3

42.3

42.6

40.8

21,82917,49013,754
0.55

0.53

0.49

0.49

2021.32022.30.38

2022.3

Dividend Payout Ratio

2019.32018.32019.32020.32021.3

（円）

(%)

25.00
12.50
15.00
12.50

10.3

11.0

2020.32021.319.0

8.5

2022.3

25.6

2018.32019.32020.322.2

2021.32022.3· The Company has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29; revised on March 31, 2020) and its implementation guidance since the beginning of the fiscal year ended
March 31, 2022. The key management indicators, etc. for the fiscal year ended March 31, 2022 are the figures that reflect the application of the accounting standard and its implementation guidance.

4.50

4.50

2020.380 %Interim (yen)Year-end (yen)

3,659

26.4

2019.3

Total Shareholder Return25.00 yen(%)

2018.32022.3

Dividend Per Share

26.4 %

29.8
2.7

40.5

20,902(5,989)

2,971

2.1

37.8

4,438
3,842

4,466

2.0

21,303(952)

755

Profit Attributable to Owners of Parent / ROE

2.6
1.8

2020.32021.3

5,067

1.9

2019.32020.3

Ordinary Profit / Ordinary Profit to Sales

5,672

4,123
2.5

2019.3

Ordinary profit (million yen)
Ordinary profit to sales (%)

Operating profit (million yen)
Operating profit to sales (%)

5,414

2018.3

Interest-bearing liabilities (million yen)
D/E ratio (times)(6,347)747(7,454)2018.3

21,829 million yen / 0.49 times

1,787

1,748

(158)

2,659

40.8 %
(%)

2,739

4,684
1,127

1,745

Interest-Bearing Liabilities / Debt to Equity (D/E) Ratio

7,737

4,842

6,448

804

1,787 million yen

Free cash flow:

Equity Ratio

5.00

111
93

12.50

102
83

80

2.50
2018.3 2019.3 2020.3 2021.3 2022.3· The dividend of 15.00 yen per share for the fiscal year ended March 31,
2021 is the sum of an interim dividend of 2.50 yen and a year-end dividendof 12.50 yen. Effective October 1, 2020, the Company carried out aconsolidation of shares in which five of the Company’s common shareswere consolidated into one share. As a result, the interim dividend is theamount before the share consolidation (12.50 yen if the share consolidation
is taken into consideration), and the year-end dividend of 12.50 yen is theamount after the share consolidation (the annual dividend per share is
25.00 yen if the share consolidation is taken into account).

2018.32019.32020.32021.32022.3

Non-Financial Highlights
Number of Employees

Number of New Graduates Hired

Male:

Male:

Female:496

142

Female:

18

8

129

137

140

139

142

509

496

508

508

496

2020.32021.32022.317

07

FEED ONE CO., LTD. Integrated Report 2022

2019.310.5

8

8

2018.36.0 hours

3
14

18
2.6

2020.310.6
8.9

2021.32022.32018.33.0

2.9

2019.32020.3

3.8

6.9

6.5

Number of Days of Paid Leave andSummer Vacation Taken Per Year

Participation Rates for Stress
Check Tests and Health Checkups

Average number of days of
paid leave taken:

Participation rate for stress check tests: Participation rate for health checkups:

Average number of days ofsummer vacation taken:

有給休暇と夏季休暇の取得日数
12.3
days
2.9 days

Hours worked in excess of contract-based standard working hours
Hours worked in excess of statutory working hours

11

2019.3

6.8 hours

1142018.3

Hours worked in excess of
Hours worked in excess of statutory
contract-based standard working hours: working hours:

(%)

20

· The numbers above include employees excluding officers(i.e., full-time employees, contract employees, part-time
employees, rehired employees, and temporary employees).

Average Overtime Working Hours Per Month

3.8 %

Male
FemaleMale
FemaleTurnover Rate

Average number of days of paid leave taken
Average number of days of summer vacation taken

2.7

6.8
6.0

2.6

10.1

2.8

2.9

11.4

11.2

96.7 %

Participation rate for stress check tests (%)
Participation rate for health checkups (%)

99.8 100.0 99.8 100.0

2.9
12.3

100.0 %

90.0

92.6

96.7

96.7

2020.32021.32022.3

75.1

7.3

2.1

2021.32022.3· The figures above represent the rates of employees who
resigned for personal reasons, except full-time employees
who have reached their retirement age.

2018.32019.32020.32021.32022.3· Overtime working hours worked by full-time employees in non-management
positions, contract employees, part-time employees, and rehired employees· Data on hours worked over statutory working hours is available from thefiscal year ended March 31, 2021, the year when the Company began
aggregating it.

2018.32019.32020.32021.32022.3· Full-time employees, rehired employees, contract
employees, and temporary employees

2018.32019.3· Full-time employees, rehired employees, contract employees, part-time
employees, and temporary employees· The head office has been aggregating participation rates for health checkups
data since the fiscal year ended March 31, 2019.

Integrated Report 2022

08

What FEED ONE Aims to Achieve

About FEED ONE
P01-08What FEED ONE
Aims to Achieve

Strengthening the Foundation
for Value Creation

P09-18

P19-54

Data Section
P55-64

Dialogue Between the Chairman and the President
Shoji: After joining a general trading firm, I was involved
for roughly 20 years with the feed industry, working mainlyin the two companies before their integration. That iswhere I learned my basics as a working adult. Because ofthat background, my first thought when I was asked toserve as president was that doing so would give me an
opportunity to make a major contribution—that doing sowould be a way for me to repay the feed industry which
has a very special place in my heart. Although I knew that
it would be a huge responsibility, I was more than happy
to accept.
After having gone through the integration, ourCompany has come to be known as a leading company,
both quantitatively and qualitatively. The baton that has
been handed over to me—to take on the finishing
touches of the integration, continue the Company’s
development, and head toward the next stage of
growth—is an extremely heavy one. However, I willleverage my past experience and give my utmost as
I undertake these tasks.

Yamauchi: As Representative Director and Chairman,
I will fulfill my role to support President Shoji in making
and executing speedy, on-target business decisions andcontribute to increasing the Company’s corporate value.
My expectations for President Shoji are that he will exhibit
strong leadership that will steer the Company in the right
direction using new, flexible thinking that is not attachedto the way things were done in the past.
Shoji: I am sure there will be many times when I will be
consulting you, Chairman Yamauchi. However, on thosematters for which I should make decisions as president,
I intend to do so with the strong leadership that you
expect of me.
Creating relationships of trust with customers andbusiness partners is of utmost importance in our industry.
I will therefore begin by taking over the relationships oftrust that Chairman Yamauchi has developed up to now
while I also work to create new relationships with thesupport of those around me.

Matters Currently Taking Place in FEED ONE’s Business Environment

Takashi Yamauchi

Hidehiro Shoji

Representative Director and Chairman

Representative Director and President

We will improve our profitability, overcome changes in the businessenvironment, and provide value that leads to sustainability.
Background to the Launch of the New Management System, and Aspirations upon Becoming President
Yamauchi: Eight years have passed since the integrationof the two companies. During that time, I worked feverishly
to take the helm of the Company. I am proud to say thatwith the support of our stakeholders, we have been able tocomplete building the foundations of the Company. As theenvironment surrounding the industry changes, I felt that toenable the further development of the Company, acomplete renewal should be attempted—that the time hadcome to pass the baton on to a new president. This was

09

FEED ONE CO., LTD. Integrated Report 2022

implemented based on the recommendation from theNomination and Remuneration Committee. Although weare still in the midst of the Third Medium-Term Management
Plan, the circumstances surrounding our industry, such as
the grain market and foreign exchange market, haveundergone greater-than-anticipated drastic change. That
was why a decision was made to launch the new
management system from the fiscal year ending March 31,
2023, in order to deal with the change early.

Shoji: As you are aware, the situation in Ukraine, global
warming, and other worldwide issues are resulting in thecontinued escalation of raw material costs. In animal feed,
price revisions are carried out every quarter in accordancewith the fluctuation of the market price of grain. However,these price revisions do not fully compensate for the
impact that escalating costs have on our performance.
With that said, our competitors are in the same situation
as we are, so it is important that we maintain ourcompetitive edge even under such circumstances. In
regard to raw material procurement, we are promoting
measures to ensure a stable supply, with our major
shareholder Mitsui & Co., Ltd. at the center. For example,
we are securing procurement routes that are notdependent on the United States, and we are also utilizing
domestic raw materials through our network bases inrural areas. We intend to differentiate ourselves from othercompanies as well as strengthen our competitiveness.
Meanwhile, the escalation in energy and distribution
costs, the labor crunch, and other changes in thebusiness environment are factors for irreversible risingcosts that differ from market price fluctuations. We needto establish the Company’s policy and promotemeasures.
Yamauchi: We are an industry that cannot avoid market
price fluctuations. As President Shoji mentioned, we will
reduce their impact on our performance by strengthening
our procurement capability. At the same time, efforts toprovide products and services that meet the needs of ourcustomers and add high value to technologies willprobably become even more important. Such services
include genomic analysis for dairy cows and raw milk fatty
acid composition analysis.
Shoji: At the top of the list in the basic strategies outlinedin the Medium-Term Management Plan is to further

strengthen the profitability of animal feed. I think that thisis something that will lead to endurance against market
price fluctuations. Angles for adding high value to
products, services, and technologies include thereduction of environmental footprints by way of feed, andmeasures for reducing manpower and labor on the partof users. We are promoting various research anddevelopment for the provision of services that willcontribute to solving social issues and are achieving
results.
Another theme that we also need to focus our efforts
on is to soundly communicate to the world thecontribution that we are making to the environment andsociety through our initiatives and to have these initiatives
fairly recognized.
Yamauchi: In recent years, there are someenvironmentally negative impressions of the livestockindustry. They include nitrous oxide emissions fromlivestock excreta and the methane emitted by cattle when
they belch. We would like to further increase people’s
awareness of the value provided by the Company, suchas our effective use of food-processing by-products andfood waste, and our development of sustainable feed.
Shoji: When I joined the general trading firm 34 years
ago, domestic livestock products were being driven out
by inexpensive imported livestock products. There was asense of crisis that perhaps domestic livestock products
would not be able to survive. However, they later
maintained their market by enhancing quality andproductivity. They also engaged in environmental-impact
reducing measures. They succeeded in surviving purely
because of the great efforts made by domestic livestock
breeders and formula feed manufacturers. I believe thatgoing forward, they will be able to continue overcomingchange and seizing opportunities for growth.

Integrated Report 2022

10

What FEED ONE Aims to Achieve

About FEED ONE
P01-08What FEED ONE
Aims to Achieve

Strengthening the Foundation
for Value Creation

P09-18

P19-54

Data Section
P55-64

Dialogue Between the Chairman and the President
Progress in the First Year of the Medium-Term Management Plan and Future Developments
Shoji: I was involved with the formulation of the current
Medium-Term Management Plan as General Manager of
the Corporate Planning & Strategy Division. Our Company
is in the process industry, so we invest in production
facilities. We use sales volume as a major KPI and create
growth plans that anticipate future profitability. As for
progress in this first year of the plan, we achieved sales
volume as projected. However, with the escalating pricesof raw materials from the latter half of FY2021, earning
capacity fell in the second half of the year because thecost pass-through could not catch up sufficiently.
Because of this, ordinary profit and ROE fell short of theirprojections. To overcome this situation going forward, we
will implement improvement measures for achieving thetargets of the final year.
In terms of qualitative progress based on the basic
strategies, there are various initiatives underway towardfurther strengthening the profitability of animal feed as
mentioned earlier. While we are working to strengthen
aquatic feed, the food business, and the overseas
businesses to accelerate the speed of their growth, there
are unsurprising delays caused by the worsening
business environment.
Yamauchi: One of the factors for not being able toachieve the projected ordinary profit is the reserve
contributions to the Formula Feed Price Stabilization
System. The market price of the grain that is used as themain ingredient had been stable for the past five years or
so. This meant that no funds had been paid out and there
was enough reserve. There was even a time when nocontribution had to be made into the reserve fund.
However, with the recent sudden, sharp escalation of themarket price of grain, the funds dried up at once and theburden of the contribution to be paid into the reserve fundincreased significantly.
Shoji: To further strengthen the profitability of animal
feed, we will try to enhance our initiatives from both
quality and quantity aspects in the next two years. From

11

FEED ONE CO., LTD. Integrated Report 2022

the quality aspect, as in the case of Feed Care, synthetic
milk for pigs that we launched in February 2022, we will
accelerate our pace so that we can develop andcommercialize as many unique and highly functional
products as possible. Our policy is to focus efforts
particularly on the development of products that
contribute to the growth of young, months-old livestock.
We will pursue the creation of high added-value productsthat are not easily affected by the market prices of raw
materials. From the quantity aspect, we have prepared astructure in Hokkaido with Tomakomai Feed Co., Ltd. andKushiroshiryo Co., Ltd. for increased production of cattle
feed, which is one of our strengths. We would like toutilize these companies and carry out full-capacity
operation.
Yamauchi: Of course, product development related toquality requires time, so it is not something that we canimmediately speed up. However, we will check thecontent of the research as needed that we have alreadybeen carrying out and narrow down the focus of research.
Shoji: Aquatic feed is one of those businesses in which
we aim to speed up growth. Feed for juvenile fish thatmeets the needs of our customers is producing goodresults. We will expand its sale, inclusive of Asia. Sales of
eco-friendly low fish meal feed for red sea bream andtrout are also growing. As the next phase, we aim tolaunch fish meal-free feed, and development is currently
under way.
The emphasized theme for the food business isenhancement of consumer products. Following theincreased production capacity of Magic Pearl seasoned
boiled eggs, we will focus our efforts on stewed pork
offal, pork offal for Korean barbecue, and other chilled
products being sold by Feed One Foods Co., Ltd.
Yamauchi: Competition has become heated in theaquatic feed market in the domestic fisheries market thatis shrinking as a whole. With soaring raw material costs,
conditions are harsh for us as well. We believe that
increasing our market share by launching new products
will help overcome the situation. Having a hit consumer
product will be the key to growth of the food business.
Shoji: The overseas businesses have been hard hit by
the COVID-19 pandemic and have continued to face an
uphill battle. In Vietnam in particular, there was a period
when we could not leverage our production capability
due to a lockdown. However, we took advantage of theconstraint during the period and suppressed the
production and sale of underperforming items, which
improved our profitability. With the recovery of the market
from the pandemic in the background, we are currently
achieving steady profits. In March 2022, we preparedproduction facilities for supplying flake feed for dairy cattle
at dairy farms directly operated by Vietnam’s largest dairy
manufacturer. Full operation of the facilities hascommenced. Our expectations are that over the nextyear, the overall business in Vietnam will achieve adramatic leap.

In India, we pulled out our seconded personnel fromthe local subsidiary two years ago due to the sudden
spread of COVID-19. Operations were carried out fromJapan for a while. However, personnel were redispatched to India last year. This fiscal year, we haveembarked on efforts to revive the business by increasing
the numbers of seconded employees and local sales staff
members.
Yamauchi: Our business with Vietnam’s largest dairy
manufacturer is being carried out using flake feed
production technology brought in from Japan. If this getson track, we think that this will lead to major growth in the
future, including expansion elsewhere.
Shoji: Achieving the goals of the Medium-Term
Management Plan is, of course, important. However, thepriority issue to be dealt with over the next two years will
be to take expedient measures to compensate for thesituation that was not anticipated when formulating theplan—that is, the need to increase the amount of thereserve fund due to escalation of raw material costs andfluctuation of market prices.

Promotion of ESG Management and Building Strong Relationships with Stakeholders
Shoji: One of the basic strategies in the Third MediumTerm Management Plan is “Promote ESG management
and strengthen business platform.” We saw progress
here in terms of implementing sustainability initiatives andimproving the level of governance as required in the Tokyo
Stock Exchange’s Prime Market. In February 2021, theCompany established the ESG Committee and isengaged in sustainability efforts ahead of others in theindustry. I succeeded from Chairman Yamauchi the role of
ESG Committee chairperson when I became the newpresident of the Company.
In April 2022, we established the Sustainability
Promotion Department, a dedicated organization that
undertakes business challenges related to sustainability.
We put the organization in place for responding withspeed to the changes of the times. In the same month,
the Company announced its support for the Task Forceon Climate-related Financial Disclosures (TCFD)
recommendations and clarified the Company’s disclosure
policy. Over the past year, we had internal study sessions
about the TCFD to deepen our understanding andexamined what information should be disclosed. In June,
we announced the TCFD Report based on the framework
recommended by the TCFD. Going forward, we will
periodically review climate-related risks and opportunities
and their financial impacts. We will put more effort into
further improving and expanding disclosure informationand our initiatives related to climate change.
Yamauchi: The more you study about themes like ESG
management, the SDGs, and TCFD, the deeper you findthe content to be. I think we have just recently laid thegroundwork and moved on to the stage of thinking about
what we should do from now. Internally, we have created

opportunities to help each employee understand theSDGs, a global issue, and see it as their own issue andsomething familiar and easy-to-understand for them toundertake. Efforts included the “My SDGs Declaration”
project. We will continue to work to spread SDGs
awareness within the Company.
In aiming for a sustainable future, it will become
increasingly important from now on for us tocommunicate to our stakeholders the social value that wecreate and lead that to developing strong relationships
with them. Possible means of disseminating information
include social media and video sharing websites. We will
also actively communicate our efforts related to corporate
accountability. I hope that many people will get to knowthat aspect of us.
Shoji: As for communication with employees, I spent twomonths before I became president visiting all of ourbases. I created opportunities to talk individually withalmost all of our employees. Many offered positive
opinions on how their work and workplace could be
improved. The opinions were reflected in measures inplace. They include the improvement and introduction ofsystems and programs that support the active work of
employees.
I believe that building solid relationships with all
stakeholders, whether within or outside the Company,
enhances the sustainability of management. Whilestrengthening our unifying force, we will aim to become acompany that coexists with all stakeholders and shares in
its growth.

Integrated Report 2022

12

What FEED ONE Aims to Achieve

About FEED ONE
P01-08What FEED ONE
Aims to Achieve

Strengthening the Foundation
for Value Creation

P09-18

P19-54

Data Section
P55-64

Message from the Officer in Charge of Financematerials, and updating the Company website, as acompany listed on the Tokyo Stock Exchange’s Prime
Market, I think we should communicate more proactively.

Looking back over the business environmentand operating results in the fiscal year ended
March 31, 2022, please explain important
points from a financial perspective.

Kazuo Kubota
Senior Executive Officer,
Deputy Chief Operating Officer,
Administrative Unit, and General
Manager, Finance & Accounting
Division

We will achieve sustainable growth by reinforcing ourfinancial foundation in anticipation of risks and opportunities
and building a capital efficient management framework.
Please share your views on FEED ONE’s
strengths and challenges from your perspective
as someone who was brought in from outside
the Company to take charge of finance.
I joined FEED ONE from the Bank of Yokohama, Ltd. in April
2021 as General Manager of the Finance & Accounting
Division. After joining the Company, I feel the feed industry
plays an essential role in producing and supplying food,includes highly significant businesses, and makes a great
contribution to help enable the sustainability of society.
Therefore, I think the industry will be able to continue
developing steadily without too many ups and downs.
The Company’s feed business is characterized by asales structure that covers many livestock species (suchas cattle, pigs, poultry, and fish) without being overly
dependent on a single species and 14 factories (including
joint-venture factories) spread out across Japan. This

13

FEED ONE CO., LTD. Integrated Report 2022

gives it strengths in terms of management balance, risk
dispersion, and business continuity planning. Regarding
raw materials procurement, it is also a significant strength
to secure stable supplies through a strong partnershipwith Mitsui & Co., Ltd., one of our major shareholders.
In regard to challenges, I would say making theCompany’s businesses coherent. Eight fiscal years havepassed since the business integration of the Company’s
predecessors. Although profits have been raised due tothe results of operational efforts, such as the mixing of
human resources and realization of synergies, thechallenge of establishing company-wide rules,
regulations, and procedure manuals still remains. We
need to make these consistent as we upgrade systems
going forward. Another challenge is communication withstakeholders. Although we have strengthened the sharing
of information, particularly with shareholders andinvestors, through efforts such as holding financial results
briefings, releasing English versions of disclosure

In the fiscal year ended March 31, 2022, the resumptionof fund collection under the Formula Feed Price
Stabilization System and increases in the price ofimported grain, a major ingredient of formula feed, had a
big impact on the Company’s performance. Althoughsales volume increased 0.9% year on year, profits fell
16.7% year on year, more than was forecast at the
beginning of the year.
In the fiscal year ended March 31, 2021, the prices ofimported raw materials were relatively stable, so we were
exempted from making contributions to the reserve fund,but the resumption of collection in the fiscal year underreview led to an increase in SG&A expenses ofapproximately 2.0 billion yen.
There were many factors behind the rises in the prices ofcorn and other imported grains, including growing demand
from the bioethanol industry in Europe and the U.S. andfrom China as well as abnormal weather events, and since
February this year, the situation in Ukraine has driven further
rises. This downturn in the supply environment hascontinued into the current fiscal year (fiscal year ending
March 31, 2023), and this, combined with the foreignexchange situation caused by the rapid depreciation of theyen, is creating a headwind for the feed industry.
We revise the sales price of animal feed quarterly inline with fluctuating raw material costs. However, as our
cash conversion cycle (the number of days it takes torecover spending on trade payables as trade receivables)
is 36 days, when the prices of raw materials risesuddenly, our working capital increases by about five
weeks’ worth. We procure our working capital throughloans from financial institutions. In the fiscal year ended
March 31, 2022, short-term borrowings increased byabout 1.7 billion yen year on year. This increase inliabilities resulted in our equity ratio falling to 40.8%
compared to 42.6% in the previous fiscal year.
As you can see from the above, it has been a difficultyear financially. However, we were able to make growthinvestments for the future as planned, investing about 2.6
billion yen, mainly on upgrading production lines.
Also, in August 2021, as part of our shareholder
return efforts and capital policy, we carried out our firstbuyback of treasury shares since the business integration,
repurchasing 1.2 million shares and disposing of 1 million
shares within the fiscal year. We will continue to
implement our capital policy after comprehensive
consideration of factors including cash on hand, shareprice levels, and the market environment.

What kind of financial strategy do you
think the Company should pursue toachieve sustainable growth?
The current outlook is more uncertain due to factors suchas the continuation of the COVID-19 pandemic, growing
geopolitical risk, the soaring prices of raw materials andenergy, and yen depreciation. The amount of funds to becollected under the Formula Feed Price Stabilization
System is also forecast to increase, so controlling
liabilities and equity will be an important challenge in thebusiness environment of the future.
In order to secure stable working capital in anticipationof such a situation, at the end of August 2022, webecame the first formula feed manufacturer in Japan toagree a sustainability-linked loan, procuring 10 billion yen
in long-term funds. As the KPI for this loan, we chose
CO2 emissions reduction rates based on our materialities(key issues) and have set sustainability performancetargets (SPTs). The structure of the loan provides interest
incentives for the achievement of SPTs, and for every
interest incentive we achieve, we plan to spend an
equivalent amount on ESG and SDGs activities. Asidefrom this long-term funding, we also concluded acommitment line contract with each of our primary andsecondary banks, ensuring a total credit line of 10 billion
yen. This will strengthen the business stability andfinancial soundness of the Company against any suddenchanges in the business environment.
In the medium-term, we recognize that we need aframework for managing capital efficiency by businesssegment based on indicators such as ROIC (return on
invested capital). However, although such managementby business segment is desirable, our feed business andfood business comprehensively cover the area of “food”
in an interconnected manner from upstream todownstream, so judging business effectiveness based on
results calculated individually for each business segment
is difficult. Another characteristic of our business is thatinvestments in feed production facilities take nearly 20
years to recoup, which is considerably longer than typicalinvestment payback periods. Management decisionmaking needs to focus on capital efficiency while also
keeping these characteristics in mind. I think thatcultivating a corporate culture that does not concentratesolely on profit, but also considers capital efficiency, will
enable us to maximize the use of management resources
and accelerate the overall growth of the Company.
The Finance & Accounting Division is expected to playa role in enhancing the Company’s financial framework inanticipation of risks and opportunities and in building acapital efficient management framework to ensure an
accurate understanding of the management situation.
We will further strengthen our efforts to achieve thesustainable growth of the Company’s business.

Integrated Report 2022

14

What FEED ONE Aims to Achieve

About FEED ONE
P01-08Business Vision

What FEED ONE
Aims to Achieve

Strengthening the Foundation
for Value Creation

P09-18

P19-54

Data Section
P55-64

Quantitative Plan (Consolidated)

A leading company that contributes to the sustainable growth of the entire
industry as the strongest partner for our customers
With the animal feed business, the aquatic feed business, the food business, and the(Million yen)

Sales volume

5,000
4,000

5,737

0

3,473
(Results)

Aquatic feed

6,200

5,800

5,400

(Thousand metric tons)

4,000
3,800

3,580

3,582

3,600

FY2019FY2020

FY2021

3,600

3,780

3,700

3,400
0

FY2018up a value chain with the animal feed business at the core in ten years from the first

6,081

4,466

3,000

overseas businesses as the four pillars of profitability, we aim to expand profits and set
year of the business integration in FY2015 to ultimately achieve

Ordinary profit

6,000(Results)(Results)

FY2022(Planned)

Second Medium-Term Management Plan

FY2023(Planned)(Planned)

Third Medium-Term Management Plansustainable growth and increase corporate value.

Overseas

Food

FY2021 Progress and Issues in relation to the Basic Strategies

Food

Value chain

Livestockfarm

Aquatic feed

Livestockfarm

The fiscal year ended March 31, 2022 was the first year of the Third Medium-Term Management Plan. The outlook remained uncertain due to changes in the internationalsituation, the outbreak of infectious diseases in livestock, and other factors. Under such situation, however, we promoted the ESG management as specified in the basic
strategies, in addition to the four pillars of profitability to achieve the projected results in the plan. As a result, each of our businesses had concrete outcome.

Value chain

Animal feed
Animal feed

Specific strategies

Further strengthen the profitability of Animal Feed, which is our core business

Revenue expansion
Other

The animal feed business, theaquatic feed business, the foodbusiness, and the overseas
businesses will serve as fourpillars of profitability

Other

FY2015, the first yearof the business integration

FY2024❶ Develop feed that addresses customer needs●
Aquatic
Feed ●❷ Develop and expand sales of sustainable feed

Food
Business

The Third Medium-Term Management Plan: Make the leap! 2023
Role & Basic Policy

increase profit by fully utilizing
the business platform

GrowthTerm Management Plan is to

Basic Policy

Putting the Finishing Touches on Business Integration—To Become a True Leading Company!—strengthened in the Second

foundation to enable

FY

FY

2015
First Medium-Term Management Plan

Basicstrategies● Launched Feed Care, synthetic milk for pigs, in February 2022
● Flake feed production line added at Tomakomai Feed Co., Ltd.;
began operation in August 2021

● Consider rebuilding a manufacturing structure forpopular consumer products● Develop and sell consumer products● Vietnam Increase sales volume by adding manufacturing
facilities, expanding sales areas, etc.
Overseas
Businesses ● India
Reduce cost through better productivity andrestore profitability through stronger sales● Increased sales of Ambrose feed for juvenile fish
(sales volume: up 36.3% YOY)
● Expanded low fish meal feed product lineup(Launched Trout EP Seika, low fish meal feed for trout)● Determined the policy for rebuilding Magic Pearl Co., Ltd.’s East Japan
Business Unit factory● Made steady progress in sales of consumer products (sales: up 50% YOY)
● Vietnam’s first flake feed production facility completed● Feed for freshwater fish: Recognition of quality spread in the market,
leading to increased sales (sales volume: up 19.6% YOY)

Promote ESG management and strengthen business platform● Promote work-style reform● Engage in DX and new businesses● Strengthen governance● Build an ESG/SDGs structure

Addressed climate-related risks Implemented human rights initiatives
Started building the next core system toward operation in 2024

2023

2018

sustainable growth.

FEED ONE CO., LTD. Integrated Report 2022

FY

2020

Plan and to build a further

15

Make the leap！

FY

Medium-Term Management● Carry out R&D that address the needs of customers and the times● Add facilities for cattle feed
● Improve operational processes using IoT

Accelerate growth of Aquatic Feed, Food Business, and Overseas Businesses

Medium-Term Management Plan

The role of the Third Medium-

Progress

1 Further strengthen the profitability of Animal Feed, which is our core business
2 Accelerate growth of Aquatic Feed, Food Business, and Overseas Businesses
3 Promote ESG management and strengthen business platform

Second Medium-Term Management Plan Third Medium-Term Management Plan

Business Plan for the Fiscal Year Ending March 31, 2023
Sales volume for the fiscal year ending
March 31, 2023 is expected to be 3,586
thousand metric tons for animal feed and
104 thousand metric tons for aquaticfeed. The business environment will again
be harsh this year as in last year.
However, we will continue steadily
promoting the basic strategies of theMedium-Term Management Plan and aim
to become a True Leading Company.

(Thousand metric tons)

Sales volume2022.33,613

2023.33,690

2022.3 Composition
243,202 100.0

2023.3 Composition
301,000 100.0+23.8

Cost of sales

220,490

90.7

275,300

91.5

+24.9

SG&A expenses

18,418

7.6

21,600

7.2+17.3

Operating profit

4,293

1.8

4,100

1.4

(4.5)

Ordinary profit

5,067

2.1

4,000

1.3

(21.1)

Profit attributable to owners of parent

3,659

1.5

2,500

0.8

(31.7)(Million yen, %)

Sales

YOY

Integrated Report 2022

16

What FEED ONE Aims to Achieve

About FEED ONE
P01-08What FEED ONE
Aims to Achieve

Strengthening the Foundation
for Value Creation

P09-18

P19-54

Data Section
P55-64

Value Creation Process
Business Model

Output/Outcome
Value Creation

4

On

Declining birthrate and aging
population

Changes in the structure ofhouseholds
Measures to protect
biodiversity

Solvingenvironmental
issues throughbusiness

Procurement
capability

Management
Philosophy Manufacturing

Enhancement of diversity

Business Environment
Accelerating participation in
TPP/EPA

Creating
attractive
workplaces

Aquatic Feed
▶P20

▶P06

R&D
capability

Conservation of resources
Respect for human rights

▶P19

er
Pow
e’s

Declining domestic
population

Animal Feed

Food Business

Sales
capability▶P21

Outbreak of infectious
diseases in livestock

Changing eating styles
Diversifying consumer needs

Overseas
Businesses

Management Foundation
ESG Philosophy
Corporate
Governance

Employee
Code of
Conduct

Compliance

Number of employees(consolidated): 932

Intellectual capital
Number of researchbases: 4
Number of patents
held: 19

Financial capital
Total assets:108,504 million yen
ROE: 8.5%
Net assets: 44,840 million yen

▶P22

Risk
Management

External Capital
Manufacturing capital
Feed manufacturing bases of the Group: 14 factories
Food processing bases of the Group: 11 factories
Farms of the Group: 4 farms
Aquaculture bases of the Group: 2 bases
Capital expenditure: 2,659 million yen

Sales volume

Pursue the sustainability of
the global environment

Ordinary profit

6,200 million yen

Quality Philosophy

Internal Capital
Human capital(Targets for the fiscal year
ending March 31, 2024)

Contribute tosociety through businesskStrengthening
governance

Third Medium-Term
Management Plan

Ma

COVID-19

Enhance corporate value
through sustainable growth

3.78 million metric tons

capability

Prospering inharmony withsociety

3

e
a
l
p
e
! 20
h
t
e
2

Climate change

s
esse
sin
Bu

Social Issues

Materialities(key issues)

Social and related
capitalShareholders
Local communities
Suppliers/partner companies
Distributors/customers

Natural capital
Energy/water resources

Create a comfortable
work environment

Offer safe andreliable food products

Bringing reliable food and the enjoyment of eating every day

External Environment(Fiscal year ended March 31, 2022)

17

FEED ONE CO., LTD. Integrated Report 2022

Integrated Report 2022

18

Strengthening the Foundation for Value Creation

About FEED ONE
P01-08What FEED ONE
Aims to Achieve

Strengthening the Foundation
for Value Creation

P09-18

P19-54

Data Section
P55-64

Business Strategy

Animal Feed

Aquatic Feed
Hiroshi Yamagami
Senior Executive Officer, General
Manager, Aquatic Feed Division

Business Vision

Business Vision

We will utilize the latest in nutrition theory and cutting-edge production technologies to deliver safe, reliable, and high-quality formula
feed tailored to varying needs at production sites.
With prices of imported raw materials for feed soaring, we will also be unrestrained by fixed ideas and continue taking on thechallenge of value creation, and thereby contribute to making livestock farming more productive and economical.
We are also pursuing the SDGs, taking action to accomplish the twin goals of reducing environmental impact and improving
productivity. Specifically, we will be aiming to establish technology that can improve production efficiency while reducing methane
emissions from cattle and phosphorous and nitrogen excretions from poultry and swine.
Furthermore, we will contribute to the sustainable development of livestock production using formula feed by providing
comprehensive support, including feed management and disease control services and the latest information, so that customers canoperate their livestock businesses in a manner they desire.

Fish meal accounts for about 40% of all raw materials for aquatic formula feeds, which support the production of farmed fish in
Japan. Most of the fish meal is made from wild-caught fish that were conventionally considered unsuitable for human consumption.
Amid growing concerns about the “protein crisis,” wild-caught fish, used as raw materials for fish meal, may be diverted for humanconsumption. We will develop sustainable and high-quality formula feeds that are not dependent on fish meal, and will also strive toensure a stable supply of formula feeds. Further, we will propose the best possible way of feeding that unlocks the full potential offormula feeds. We will also make efforts to preserve the environment of fishing grounds by reducing the emissions of phosphorus,
nitrogen, and other substances, thereby supporting our customers in operating their business.
We will contribute to the development of the aquaculture industry by developing, producing, and selling safe, secure, andhigh-quality formula feeds catering to the needs of customers.

Business Overview and Strengths

Soaring prices and unstable supply of raw materials
Unstable supply (collection) of wild-caught fish eggs

In FY2021, the Aquatic Research Center and Feedstuff
Materials Division worked together on the key task ofimproving the quality of feed for juvenile fish (feedintake and growth promotion), and their efforts
produced results, as they succeeded in developing
high-quality feed for juvenile fish superior to that offeredby our competitors. As for efforts to develop feed thatis not dependent on natural resources, we brought a
low-fish-meal feed for trout to market, and this waswell received. We also moved closer to eliminating theuse of fish meal in feed for red sea bream. We also
explored the potential for aquaculture technology
innovation to contribute to the achievement of theSDGs and the improvement of production efficiency,
and to that end, we actively collaborated with entities inother sectors. Such collaborations are enabling us togradually obtain new insights.

Challenges

Establish stable manufacturing and sales foundations
Conduct R&D to come up with new products based on the latest
in nutrition theory
Procure raw materials flexibly in accordance with circumstancesin society
Improve feed manufacturing and processing technology inresponse to needs
Expand our total consulting services

Increasing importance of environmental conservation and
SDGs
Diversification and increasing scale of domestic salmon
farming business
Increasing importance of artificially hatched larvae asmeans of tackling natural resource instability

Achievements and Challenges in FY2021

Achievements

FEED ONE CO., LTD. Integrated Report 2022

Strategy

A broad network of factories designed to produce feeds invarious forms
Research facilities that can conduct feeding trials
expeditiously
Distribution structure for farmed fish that is directly
connected with producers

Surrounding Environment

Risks

Risks

Soaring prices of imported raw materials for feed due tothe situation in Ukraine becoming increasingly grim
Logistics disruptions due to a COVID flare-up (delays inprocuring imported raw materials)
Decline in the number of animals due to livestock
infectious diseases running rampant

With prices of imported raw materials for feedskyrocketing as a result of the tense situation in Ukraine,
the stable supply of formula feed is expected to be further
required, and demand for high-quality, high-function
products is expected to rise substantially. Amid suchcircumstances, we will put together a formidable structure
by strengthening our global raw material procurement
network, and aim to offer distinctive, value-added
products and expand our total support for customers.

We produce nearly 100,000 metric tons of aquatic formula
feeds per year at the Kitakyushu Aquatic Feed Factory andother factories, distributing feed to every corner of Japan,
from Hokkaido to Okinawa. We also export high-quality feed
for juvenile fish. In addition, a specialist department for
distributing marine products also handles farmed fish. Nanyo
Gyogyo Co., Ltd. and Kyokuyo Feed One Marine Co., Ltd.,affiliated companies of the Company, produce fully farmed
Pacific bluefin tuna, demonstrating the fruits of their many
years of bluefin tuna research.

Opportunities

Opportunities

Need for products that are aligned with the SDGs
(eco-friendly)
Proliferation of smart livestock-rearing technology (IoT and DX)

Although we were affected by outbreaks of avian flu
and swine fever in FY2021, the volume of animal
formula feed sold was higher than the previous fiscal
year. A COVID resurgence heavily impacted prices as
the food service business slumped and demand
increased due to people staying home more, but thevolume of livestock products produced in Japan
topped the previous year’s figure.
In line with the Third Medium-Term Management
Plan, we are aiming for sales volume of 3,610,000
metric tons in FY2023 (up 5% from FY2021), the final
year of the Third Medium-Term Management Plan, bystrengthening production facilities and launching highvalue-added products.

Business Overview and Strengths

Strengths

Surrounding Environment

Challenges

Strengths

Supply products stably from strengthened production
facilities
Provide products with patented technologies (feedspecifically for automatic milking) and a proprietary feed
design service
Facilitate the spreading of advanced technologies such as
genome and raw milk analyses (customer service)
Regularly obtain the latest information on livestock
nutrition and feed management technology from overseas

Achievements and Challenges in FY2021

Achievements

We operate seven business divisions nationwide, and ourmanufacturing and sales activities are fully integrated. We
satisfy customers’ needs in a highly customized andexpeditious manner from eight branch offices across Japan.
We also operate 14 factories nationwide (including jointventure factories), producing and selling approximately
3,500,000 metric tons of animal feed per year. Last year, webegan shipping crumble & mash products, demand for which
is rising in southern Kyushu, while in Hokkaido we moved
forward with putting together a new production structure byincreasing flake feed manufacturing equipment there.

19

Naoki Hatanaka
Director, Senior Managing Officer; General
Manager, Animal Feed Business Unit

Japan’s national government has defined an export
strategy for farmed fish as a key policy, and a goal is tosignificantly expand production of yellowtail and red sea
bream. We will therefore aim to establish an optimal
supply structure so that we can meet the increased
demand for feed as farmed fish production expands.

Strategy
Bring products to market that are the number-one for quality interms of efficiency and promotion of fish growthEstablish an optimal supply structure
Fully leverage marine product distribution functions
Develop feed that is not dependent on natural resources
Pursue aquaculture technology innovation (collaboration withother sectors)

Integrated Report 2022

20

Strengthening the Foundation for Value Creation

About FEED ONE
P01-08What FEED ONE
Aims to Achieve

Strengthening the Foundation
for Value Creation

P09-18

P19-54

Data Section
P55-64

Business Strategy

Food Business

Overseas Businesses
Yukihiro Arakida

Shozo Ota

Director, Managing Executive Officer;
General Manager, Food Service Unit

General Manager, Overseas
Business Department

Business Vision

Business Vision

We will contribute to building an affluent and healthy society by ensuring a stable supply of foods containing various nutrients. As aleading supplier of formula feed, we will seek materials that are truly high in quality by making maximum use of our know-how inlivestock farming and fisheries and developing products in collaboration with livestock and marine products farmers. In addition,
we will deliver not only delicious but also safe and secure food to consumers so they can enjoy meals that bring both physical andmental wellbeing. To this end, we will build an integrated food value chain spanning everything from processing to distribution andsale of products.

Livestock and aquatic products, including beef, pork, poultry, milk, eggs, and fish, are some of the foods that help satisfy demandfor protein, which is growing year by year as the world’s population rises. Formula feeds are essential to increased production ofthese livestock and marine products, as well as to improving their production efficiency.
We are committed to working with partner companies to contribute to the development of the livestock and fisheries industries incountries in which we operate, especially Asian countries, where the middle class is expanding rapidly as their economies grow. Specifically,
we are contributing to the development of the industries by producing and selling safe, secure, and high-quality formula feeds in thesecountries. We will also share the insights we have gained overseas with customers in Japan in the form of feedback and proposals.
Moreover, we will continue to play an important role in realizing a sustainable recycling society both in Japan and abroad as
we use by-products, such as soybean meal, fish meal, and rice bran, as raw materials for the manufacture of formula feed.

Business Overview and Strengths

Surrounding Environment

FEED ONE CO., LTD. Integrated Report 2022

Expand and renovate production facilities to make themeco-friendly and capable of utilizing resources effectively, andincrease the volume of supply from these facilities
Upgrade processed products and develop more products that areeasier to use
Decarbonize the food supply chain in a way that only feed
manufacturers canEnsure the welfare of animals at Group farms

Growing demand for protein as the world’s population
increases and the middle class expands
Advances in livestock raising technology required to meetthe rise in protein demand
Increasing demand for safe and reliable food

Risks

Opportunities and Risks

21

Strategy

Opportunities

Surrounding Environment
Demands from business partners
Obtaining international certifications that require higher
levels of food safety (FSSC and SQF)
Pursuing ESG/SDGs management (e.g., food recycling,
local production and local consumption)
Ensuring animal welfare
Pursuing DX
Business partners have been making increasing demands inthese areas, and we will be responding to them with a senseof urgency.

High-quality formula feed production technology developedin Japan
Product design and development catering to local needs
Supply of safe and secure Japan-brand feed products

Geopolitical uncertainty sparked by the situation in Ukraine
and instability in the market environment due to infectious
diseases becoming epidemic
Prices of raw materials for feed remaining at high levels
due to high food and energy demand
Spread of livestock diseases

Our operating environment remained harsh as a resultof a worldwide economic slowdown due to the COVID
pandemic and soaring prices of raw materials for feed,
but we succeeded in strengthening the profitability of
our Vietnam business by overhauling our marketingstrategy. As for our India business, we massively
increased sales volume of feed for freshwater fish andprawns from the previous year.

Challenges

In Vietnam, we established Kyodo Sojitz Feed Co., Ltd. inLong An Province jointly with general trading company Sojitz
in 2011. Since the start of the operation of its factory in 2013,
the company has been producing and selling animal feeds forpoultry, swine, and cattle farming.
In India, we established Nippai Shalimar Feeds Private
Limited in West Bengal jointly with the Shalimar Group, aleading local poultry farming company, in 2014. Since thestart of the operation of its factory in 2016, the company has
been producing and selling aquatic feeds for prawns andfreshwater fish.

Achievements and Challenges in FY2021
Achievements

We have been hit by intermittent outbreaks of swine
fever and avian flu since 2019, and the COVID
pandemic has led to changes in sales and consumption
patterns. We have also been affected by soaring pricesof raw materials stemming from the situation in Ukraine,by the depreciation of the yen, and other factors. All inall, prices of livestock products are more volatile thanthey have ever been before.
Although we in the food group are having difficulty
promptly adapting to the dramatic changes that have
replaced what used to be continuity in business
transactions, we are quickening the pace of
implementation of measures to bring about
improvements, which we have developed based on our
relationships of trust with our numerous business
partners.

Business Overview and Strengths

Strengths

In FY2021, we moved forward with the developmentof frozen food products, to accompany our existing
chilled products. As a result, sales of consumer
products were 150% of the previous year’s, while theshare of consumer products in gross margin increased
from 10.0% to 13.5%, making consumer products amajor generator of earnings for the food business.

Challenges

Strengths

Safe and secure foods that only feed manufacturers candeliver
Supply products finely tailored to the needs of consumers
as a packer with manufacturing bases in the areas ofconsumption
Develop high-quality specialty products in collaboration
with farmers

Achievements

Sales from the food business amount to approximately 37.4
billion yen per year, accounting for around 15% of FEED ONE’s
overall sales. We produce and distribute products that meet theneeds of consumers across Japan, with the offices of affiliatedcompanies nationwide, which include food processing
companies (Feed One Foods Co., Ltd. and Yokohama MeatCo., Ltd.), poultry and egg processing and distribution
companies (Gold Egg Corp., Magic Pearl Co., Ltd.), and marine
products producing companies (Nanyo Gyogyo Co., Ltd. andKyokuyo Feed One Marine Co., Ltd.). We also produce safe
and secure pork and eggs at the Group’s farms (Nambu FarmCo., Ltd., Daiichi Genshu Farm Co., Ltd., Mihono Pork Co.,
Ltd., and Green Farm Sogo Co., Ltd.).

Achievements and Challenges in FY2021

Regarding our Vietnam business, FY2021 saw ayear-on-year drop in sales volume as livestock demandreceded due to the COVID pandemic, so expanding
sales volume has become our most pressing task. In
FY2021 we began selling cattle feed, and we will beaiming to expand our business base by developing new
products and providing technical instructions on
livestock rearing.
In our India business, we view improving profitability,
which has declined due to soaring prices of raw
materials for feed, as an immediate task. So we will
boost profits by making manufacturing processes more
efficient and leveraging our high-quality products tostrengthen sales.

Strategy
Leverage our feed production technology to expand our productline-up in Vietnam
Work more closely with our business partners in Vietnam to
expand the regions in which products are sold
Expand the aquatic feed sales of our India business intoneighboring regions
Select new business partners and expand into new businessfields through our consulting services related to feed production
technology and feed management technology

Integrated Report 2022

22

Strengthening the Foundation for Value Creation

About FEED ONE
P01-08Strengthening the Foundation
for Value Creation

P09-18

P19-54

Data Section

R&D Strategy and Structure

Production Structure

R&D that provides safe, reliable, and delicious food

Production structure to ensure the stable supply of high-quality products

Food safety and reliability are strongly demanded. To ensure them in the food chain, from raw material procurement to
the production site, we are striving to better collect information, improve the accuracy of chemical analysis and hygiene
inspection technology, and speed up these processes in our R&D organization. To produce higher-quality, delicious
livestock and aquatic products at low cost, we are working on the development of formula feeds and feeding
technologies. We are also focusing on the development of feed with lower environmental load in relation to recent
environmental issues to achieve sustainable livestock farming and fisheries. For example, we are researching into unused
raw materials, eco-feed, and feed that helps reduce methane emitted by cattle.

We operate through solid production and quality control structures in Japan and abroad to ensure the stable supply of

R&D Organization
FEED ONE has a wealth of technology. At the core ofthese research activities are the Feed & LivestockResearch Department and the Quality Control
Department, which are managed by the Research &Development Center, and the Aquatic Research Center
under the Aquatic Feed Division.
We not only provide sales support such as R&D andconsulting, but also undertake joint research with public
institutions and universities, applying the latest technologies
obtained through the wide-range gathering of information,
both domestically and internationally, to productdevelopment and quality control. We also hold seminars to
introduce technical information to our customers.

Feed & Livestock Research Department
Fukushima Research Center raises swine and poultry.
Iwaki Research Center raises beef cattle and dairy cattle.
Both centers undertake R&D on animal feed and feeding
technologies.
In developing new products and technologies, weundertake field tests of new feeds at test farms, andcommercialize only those that yield reliable results.
Further, the Small Animals Section of the Kashima
Research Center undertakes R&D on lab animal feed andbeekeeping feed.

We have a wide variety of staff, including experts inthe livestock and aquatic fields and experts in analysis
and inspection.
Research &Development Center

Aquatic Feed
Division

Quality Control
Department

Iwaki Research Center

FEED ONE CO., LTD. Integrated Report 2022

high-quality formula feed that addresses wide-ranging customer needs, and engage in earth-conscious production.

Production Bases and Quality Control
We have 14 production bases in Japan, comprising our
ISO22000-certified factories, subsidiaries, and joint
ventures. A solid production structure is built tomanufacture products at production sites best suited forcustomers and deliver them immediately.
Further, the head office, research centers, andfactories perform together thorough quality control. For
example, we exhaustively manage data on raw materials
and formula design, perform risk management of eachprocess, and have a regular audit.

We have two overseas production bases: Kyodo
Sojitz Feed Co., Ltd. in Vietnam, a factory to manufacture
feed for cattle, swine, and poultry; and Nippai Shalimar
Feeds Private Limited in India, a factory to manufacture
feed for freshwater fish and prawns. In the huge Asianmarket where growth is expected, we have a global
production structure in place by fully utilizing our
production technologies and quality control know-howthat we have accumulated over many years at domestic
factories.

Poultry
SectionRuminant
SectionSwine
SectionAquatic ResearchCenterSmall Animals
SectionTomakomai Feed Co., Ltd.

Kushiroshiryo Co., Ltd.
Tohokushiryo Co., Ltd.

Quality Control Department
Kashima Research Center performs chemical analysis
and microbiological tests, and the analytical test results
are used for quality control throughout the Company.
Ensuring the quality and safety of feed, food, andlivestock andaquatic
products is our
top priority of
research andtechnology
management.

Aquatic Research Center

Fukushima Research Center

P55-64

Map of the FEED ONE Group’s feed manufacturing factories
Feed & LivestockResearch Department

Kashima Research Center

23

What FEED ONE
Aims to Achieve

We breed tuna, yellowtail, red sea bream, and Kuruma
prawn in Ainan-cho, Ehime Prefecture, and develop
aquatic feed and feeding technologies.
In terms of
the SDGs andthe preservationof marine
resources, weundertake R&D
on feed notdependent onfish meal.

Kitakyushu Animal Feed Factory
Kitakyushu Aquatic Feed Factory
YatsushiroshiryoCo., Ltd.

Chita Factory
Nagoya Factory
Shibushi Shiryo Co., Ltd.

Ishinomaki Factory
Sendai Feed Co., Ltd.
Kashima Factory
Kashima Feed Co., Ltd.
Heisei Shiryou Corp.

Nippai Shalimar Feeds
Private Limited (in India)

Kyodo Sojitz Feed Co., Ltd.
(in Vietnam)

Kitakyushu Animal Feed Factory
Kitakyushu Animal Feed Factory, equipped with cuttingedge facilities and systems, started operation in July
2020. The factory provides manufacturing solutions thatcombine systems with people, products, and information
to maximize the efficiency and productivity at production
sites, with a focus on IoT, energy saving, and laborsaving. Those solutions will help achieve the sustainable
development goals (SDGs).
We have implemented tablet terminals for operating
and controlling manufacturing facilities, thereby increasing
the mobility of the factory. In addition, we have installedindustry’s first 24-hour unmanned automated shipping
facilities compatible with small lots, and consolidated
workspaces into one floor, which resulted in a 30%
improvement of the workforce efficiency compared withthe old factory.

We also aim to reduce the factory’s energy
consumption by 30% by linking these cutting-edge
facilities and systems and properly controlling theamounts of electricity and steam for each process as wellas introducing energy-saving equipment and analyticalequipment that minimizes production losses.
In this way, the Kitakyushu Animal Feed Factory isdesigned to serve as a next-generation factory
contributing to SDGs that is friendly to people and theenvironment, and we will further drive low cost operation.

Shipping facilities for small lots

Integrated Report 2022

24

Strengthening the Foundation for Value Creation

About FEED ONE
P01-08What FEED ONE
Aims to Achieve

Strengthening the Foundation
for Value Creation

P09-18

P19-54

Data Section
P55-64

Sustainability Policy
Viewed from an external perspective, the Company’ssustainability efforts show a strong intent to take theinitiative as the industry’s leading company by building aframework for advancing ESG and SDGs efforts and bycarrying out many specific measures. Going forward,changes in society and the environment around the foodindustry will accelerate, creating a situation in which wecannot afford to lose time. We will further enhance ourefforts by formulating and implementing a roadmap for
realizing a sustainable future.

As a leading company
in the feed industry,
we will contribute toachieving foodsustainability.

Please explain the status ofinitiatives concerning climate changerisks, including TCFD disclosure.

Yutaka Nagoya
Senior Executive Officer,
General Manager, Corporate Planning & Strategy Division

What are your thoughts on theapproach to sustainability
expected of FEED ONE?
The feed industry not only supports livestock cultivationand the supply of livestock products, but it also uses a lotof the by-products generated in the manufacturing
processes of food product manufacturers, such as wheatbran and soybean meal. This circulation of resources
raises social and environmental sustainability.
Within this, we are involved across the entire foodvalue chain, primarily through our feed business and foodbusiness. I think this means we are expected to provide
value to the stakeholders involved in each process, fromthe procurement of raw materials to delivery toconsumers, and to contribute to the realization of asustainable society.
At the raw material procurement stage, we arefocusing on research and development concerning
sustainable feed, including effectively using food
manufacturing by-products and food loss, reducing andeliminating the use of fish meal in aquatic feeds with theaim of lowering environmental impact, and cultivating new
raw materials. During the manufacturing stage, in addition
to introducing energy-saving equipment at factories andutilizing IoT technology, we are also responding to climatechange through efforts such as working to visualize waste
volumes at each factory as a first step to reducing waste.
In regard to producers, we are already contributing to

25

FEED ONE CO., LTD. Integrated Report 2022

enhancing production efficiency by providing a genomic
analysis service for dairy cows, which has been highly
evaluated by users, and by marketing feed specifically for
automatic milking. Additionally, in recent years, theamount of methane emitted by cattle belching has
become an issue for the livestock industry, so we areworking to establish ways to measure and reduce theseemissions in order to reduce environmental impact anddevelop new technologies that will support the future of
the industry. In regard to aquatic production, we havecontributed to the preservation of marine resources by
successfully realizing fully-farmed Pacific bluefin tuna, andresearch into switching from raw to formula feed isunderway, which will enable us to further contribute toconserving marine resources and environments.
At Mitsui & Co., Ltd., I was stationed in Singapore fortwo years up to May 2022, when I returned to Japan andtransferred to FEED ONE. During my time in Singapore,
I witnessed a great deal of movement regarding foodsustainability in the Asia and Oceania region for which
I was responsible. Consumers in these countries andregions have a strong awareness of environmental andsocial issues, and how a company responds to theseissues and what kind of initiatives it advances are
becoming major factors in whether it will survive. After
returning to Japan, I felt that the level of expectation forcompanies to address ESG and the SDGs had also risen
significantly in Japan over the two years I was away.
I think the awareness of Japanese consumers will soon
be at a similar level to consumers overseas, so we need
to be advancing initiatives ahead of other companies.

We cannot avoid the fact that our feed business, whichuses grain as a main raw material, will be severely
impacted by climate change so responding to this is an
important management issue. In recognition of this, in
April 2022, we declared our support for therecommendation of the Task Force on Climate-related
Financial Disclosures (TCFD) and disclosed information
on governance, strategy, risk management, and metrics
and targets related to climate change risks andopportunities.
In regard to governance, in February 2021
we established the ESG Committee with the President
as Chairperson. The committee identifies and assesses
climate change risks and opportunities and supports
related initiatives while the Board of Directors receives
reports on its activities and provides oversight andadvice.
Looking at major risks and opportunities for theCompany, we have identified six risks, including
increases in expenses accompanying the introduction ofcarbon taxation systems, decreases in sales driven byclimate change, and rises in the prices of raw materials,
as well as three opportunities, including decreases inselling expenses due to reduced energy usage andincreases in sales due to the development and sale ofsustainable feeds. In terms of strategy, we have carriedout scenario analysis for 2030 in order to understandthe financial impact of these. For risk management,
we are managing climate change risk in an integrated
manner using the enterprise risk management (ERM)system and functions we operate.
We have also set CO2 emissions as an indicator. Our
medium-term (FY2030) target is to reduce Scope 1 and2 emissions by 50% compared to FY2020 levels at theCompany and our three group companies that generate
the most emissions and our long-term (FY2050) target is
to make the entire value chain carbon neutral.

To achieve this medium-term target, our initiatives
will start with the formulation of a roadmap and action
plan. We will then reduce energy usage at the
manufacturing stage by continuing to introduce energysaving equipment at each factory and by enhancing
productivity through IoT. Also, to achieve carbon
neutrality by FY2050, it is urgent that we gain anunderstanding of our Scope 3 emission volumes. Scope
3 is wide-ranging, making it difficult to measure, so
we will accelerate the visualization and quantification ofemission volumes for each category and reflect these in
the formulation of a clear roadmap for the future.

Please tell us about future ESG
efforts based on the threematerialities.
We have identified “solving environmental issues throughbusiness,” “creating attractive workplaces, andprospering in harmony with society,” and “strengthening
governance” as our three materialities for promoting
ESG.
For our environmental materiality, we will advanceinitiatives in each of our value providing processes,
mainly by responding to climate change risks asmentioned earlier. For governance, we will not only
establish internal systems based on Japan’s Corporate
Governance Code, but we will also continue working
thoroughly to ensure compliance, quality, and foodsafety. In March 2022, we formulated and released
a new Human Rights Policy to clarify our approach torespecting the human rights of all stakeholders.
In order to further penetration and raise awarenessof sustainability within the Company, in FY2021 we
implemented the My SDGs Declaration project in which
employees made declarations about how they would
work to achieve the SDGs within their own lifestyles, andthis initiative has helped to create realizations andchange mindsets little by little. I can really feel the strong
awareness regarding sustainability at our factories andgroup companies throughout Japan, including proactive
efforts to register with local SDGs certification systems.
Also, since launching the ESG Committee, we havebeen setting the Group’s targets for ESG/SDGs, andencouraging each division to incorporate ESG intobusiness strategy. In FY2022, we continued initiatives
and monitoring for each target and going forward, theentire Company will work as one to achieve our targets
and deepen efforts to meet the expectations of society.
As a leading company in the feed industry, we willcontinue to support the stable supply of food and work
together with all stakeholders to achieve a sustainable
future.

Integrated Report 2022

26

Strengthening the Foundation for Value Creation

About FEED ONE
P01-08Efforts for ESG/SDGs

Identified materialities

The Group upholds the corporate philosophy to contribute to the sustainability of the livestock and fishery industries andprovide the safety and security of food, placing formula feed at its core. Recognizing the impact that our businessactivities have on the environment and society, we will promote ESG management while engaging in dialogue withstakeholders based on the belief that contributing to the solution of social issues and the realization of a sustainable
society through our business is equivalent to practicing our corporate philosophy.

Solvingenvironmental issues
through business

Environment

Materialities

FY2021
FY2022In February 2021, the Group established the
ESG Committee, chaired by the
Representative Director and President.
Persons responsible for each of businessdivisions and other relevant departments areappointed as the Committee’s members, andthey formulate the basic policy on the Group’s
ESG/SDGs activities and concrete actionplans and monitor their implementation, with
the Sustainability Promotion Department
serving as the secretariat.
The Board of Directors regularly receives
reports on climate-related and other ESG/
SDGs issues from the ESG Committee (aboutfour times a year) and provides supervision
and advice on such measures.

Materialities

Date

Agenda

1st meeting
May 24

Briefing on the Group’s targets for ESG/SDGs
Report on activities and future plans

2nd meeting
August 23

Report on the progress of the Group’s targets for ESG/SDGs
Identification of initiatives to reduce CO2 emissions and setting of reduction targets
Report on activities and future plans

3rd meeting
November 29

Report on the progress of the Group’s targets for ESG/SDGs
Discussion on the working group for TCFD
Report on activities and future plans

4th meeting
February 28

Report on the progress of the Group’s targets for ESG/SDGs
Report on the progress of the Task Force on TCFD (progress in scenario analysis)
Discussion on the formulation of the Human Rights Policy
Report on activities and future plans

1st meeting
May 23

Discussion on the Group’s targets for ESG/SDGs
Lookback on FY2021 and setting of FY2022 targets
Discussion on a draft of the TCFD Report to be disclosed
Discussion on initiatives for human rights
Report on activities and future plans

Identify environmental and social issues of high relevance to the Group’s business activities

Assessment of importance
Assess the importance of the identified issues to the Company’s business and the society

Selection of materiality candidates
Select candidate items for materiality by verifying their appropriateness in consideration of the Company’s business policies

STEP4

Identification of materialities
Determine materialities at a meeting of the ESG Committee chaired by the President and formulate measures to be taken

27

FEED ONE CO., LTD. Integrated Report 2022

Considerably highIdentification of social issues

Importance to the society

Process of identifying materialities

STEP3

Solving environmental issues through business

Creating
attractive
workplaces,
andprospering inharmony withsocietySocialCreating attractive workplaces, and prospering in harmony with society

We endeavor to create attractive and meaningful workplaces where employees can have pride in the Company andexercise their abilities. Also, we will support the society by seeking to prosper in harmony with local communities, andproviding education and supports as well as making donations to contribute to the rich and varied diet of local people.
Governance

Strengthening governanceItems to be worked on

Major themes to be worked on

Major relevant SDGs

E

Realization of a resource recycling society Utilization of food by-products, food loss, and profitable raw materials

Solvingenvironmental
issues throughbusiness

Fully-farmed Pacific bluefin tuna

Research and development on low fish meal and fish meal-free feeds

Conservation of resources/
environmental conservation
Efforts to protect biodiversity

S

Production and sale of beekeeping feed
Promotion of human rights due diligence, work-style reform, andhealth and productivity management
Employee education systems, children’s visits to parents’ workplaces

Respect for human rights/
human resources

Creating attractive
workplaces, andprospering in harmony
with society

Production support for organic livestock products

Participation in the Yokohama Marathon and the WFP’s Walk the World event
Contribution to society

Food and nutrition seminars
Donations to municipalities and welfare organizations
Strengthening of corporate governance

G

Strengthening of governance

Strengthening
governance

Ensuring the implementation of the Employee Code of Conduct and compliance framework
Risk management

Pursuit of quality

Efforts for food quality and safety

My

The Group has formulated three materialities (key issues) to promote ESG management. We will incorporate thematerialities into the business strategy employed by each department to achieve the Medium-Term Management Plan
and work on the issues by linking them with SDGs, thereby aiming to achieve our medium- to long-term targets andrealize a sustainable society.

STEP2

P55-64

Responses to climate change Efforts to reduce GHG emissions

Materialities (key issues)

STEP1

P19-54

Linkages between themes to be worked on and SDGs

ESG Committee agenda for FY2021 and FY2022
FY

P09-18

Data Section

We will strive to further strengthen our corporate governance and systems for governing the entire Company anddisclose information appropriately. That will ensure objectivity and transparency of management.

Our business supports the food value chain centering on formula
feed or the “source of deliciousness,” and it is based on blessings ofnature and social infrastructure. We will strive to earn the trust of all
stakeholders by fostering harmony among humans, society and theenvironment while acting in accordance with our management
philosophy and code of conduct, as well as will contribute to therealization of a sustainable society.

Sustainability Promotion System

Strengthening the Foundation
for Value Creation

We will strive to solve environmental issues through our business so as to have both the Company and society grow sustainably. Such efforts
include the proactive utilization of food by-products and food loss, the response to climate change, and the conservation of resources.

Strengthening
governance

FEED ONE’s ESG Philosophy

What FEED ONE
Aims to AchieveHighlaunched the My SDGs Declaration project in April 2021 in order to arouse the interest of every
SDGs We
employee in ESG and SDGs and have them contribute to achieving the SDGs. We share what we noticed in
Declaration

the course of implementing our own declaration through in-house newsletters.

I’ll promote online-based ordering to go
paperless and reduce communication costs!
Masayoshi Onodera

Materialities(key issues)

Considerably highDeputy Section Chief,
Tomakomai Feed Co., Ltd.

I declare...

Such efforts will
not only reduce
costs but also hedge risks associated with
telecommuting amid the COVID-19 pandemic as
we can complete the entire ordering process
online.

I’ll be conscious aboutsaving water and electricity!

I declare...

My wife and I sharehousework and childcare!

I declare...

Kana Matsubara

Yosuke Kato

Feed & Livestock Research Department,
Research & Development Center

Senior Staff,
Finance & Accounting Division

I am always trying to be
conscious about saving
water and electricity, such as by frequently
turning off the tap of shower when entering or
leaving livestock farms and switching off thelights while at home during daytime.

My wife and I are a working
couple as my wife has
returned to work after taking childcare leave. Witha motto to “enjoy housework and childcare
together,” we wake up at 5:00 a.m. and go towork after getting housework and childcare done.

Importance to the Group

Integrated Report 2022

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Strengthening the Foundation for Value Creation

About FEED ONE
P01-08What FEED ONE
Aims to Achieve

Strengthening the Foundation
for Value Creation

P09-18

P19-54

Data Section
P55-64

Environment<Solving Environmental Issues Through Business>

2. Risk Management(1) Process to identify and assess climate-related risks

Based on the environmental issues of “climate change,” “resource conservation,” and “environmental conservation–

Task Force on TCFD under the ESG Committee identifies

conservation of biodiversity,” FEED ONE will fulfill its social responsibility by actively working to prevent global

climate-related risks and opportunities in light of internal

warming, conserve biodiversity, and foster environmental awareness among its employees.

and external factors.

(Figure 2) Process to identify, assess, and manage
climate-related risks and opportunities
Identify assumed risks
and opportunities in lightof internal and external
factors

For the identified climate-related risks andopportunities, we will utilize the system/framework

Identifying risks
andopportunities(process, metrics) adopted under the ERM regulations toanalyze and assess the quantitative and qualitative impact(2) Process to manage climate-related risks

To achieve a decarbonized society under the Paris
Agreement, we actively promote information disclosure
utilizing the framework of “Governance,” “Strategy,” “RiskManagement,” “Metrics and Targets” based on the Task
Force on Climate-related Financial Disclosures (TCFD)
recommendations.

Monitoring/climate-related risks and opportunities, improve measures

Confirm appropriatenessof measures andimprove as necessary

for such risks and opportunities by checking theirappropriateness, and report important matters to the
The Board of Directors supervises and advises on the(Figure 3) Collaboration between the ESG Committee
and company-wide RM meetings
Collaborate with company-wide RM meetings

which are reported by the ESG Committee.

Climate-related risks identified by the Task Force on
TCFD will be shared with company-wide RM meetings todeepen the process to identify, analyze, and assessclimate-related risks in self-checks.

(3) Integration of the process to identify, assess, andmanage climate-related risks into overall risk
management
departments and a department reporting to the
President.
The Board of Directors regularly receives reports on
ESG/SDGs including climate-related risks andopportunities from the ESG Committee (about four times
a year) and provides supervision and advice on suchmeasures. (Figure 1)

Supervision and advice to the ESG Committee
Supervision and advice on measures for climate-related risks and opportunities

Promote ESG management including climate-related issues
Identify and assess climate-related risks and opportunities
Support initiatives of climate-related risks andopportunities and manage their progress
Report to the Board of Directors (about four times a year)

Company-wide RM meetings*
Identify and assess company-wide risks
Review, implement, and monitor measuresagainst company-wide risks
Report to the Executive Committee (twice a year)
Owner

Representative Director and President

Members

Directors, Executive Officers, andDepartment Heads

risk management mainly at company-wide RM meetings.
We have set up 57 promotion teams in total nationwide,

Task Force on
TCFD

and implement the PDCA cycle of risk management
through the year. (Figure 2)
On climate-related risks, the Task Force on TCFD and

Utilize the ERM system
The system and structure
adopted under the ERM
regulations are utilized in theprocess to identify, assess,and manage climate-relatedrisks and opportunities.

Collaborate with the ESG Committee

company-wide RM meetings will collaborate together andRisks including climate-related risks are identified,analyzed, and assessed at the self-checks of eachdepartment. We will create specific measures forclimate-related risks as necessary, in collaboration with
the ESG Committee.

GHG reduction targets in the medium to long term
Current

FY2020

Scope 1 and 2 CO2 emissions:
38,803 t-CO2

Chairperson Representative Director and President*Target scope: FEED ONE and three subsidiaries and associates with high CO2 emissions

Members Directors, Executive Officers, and Department Heads

Medium-term targets

Secretariat Sustainability Promotion Department

FY2030(t-CO2)38,803

Scope1.2

Scope3

Install energy-saving
equipment

Utilize renewableenergy50% reduction and other measures

Scope1.2

50% reduction of Scope 1 and 2 CO2emissions versus FY2020 level

Animal Feed
Business Unit

Aquatic Feed Division

Food Service Unit

ESG Administration Department
Corporate Planning& Strategy Division

Research &Development Center

Quality Assurance
Division

19,402Administrative Unit

FY2050Develop and sellsustainable feed

Install energy-saving
equipment
Utilize renewableenergyand other measures

Carbon neutrality

Long-term targets

Achieve carbon neutrality in value
chainsUtilize profitable
raw materials

and other measures*Target scope: FEED ONE and its main subsidiaries and associates

RM Promotion Team

Company-wide
RM meetings

3. Metrics and Targets

ESG Committee

Deliberate on important projects including measures forclimate-related risks and opportunities

ESG
Committee

maximize opportunities. (Figure 3)

Board of Directors

Executive Committee

We have established the ERM regulations, and undertake

manage overall risks to minimize group-wide risks and(Figure 1) System to promote sustainability including measures for climate-related issues

Execute based on themeasure implementation
plan

Board of Directors.
measures for climate-related risks and opportunities

1. Governance

Implementing
measures forrisks andopportunities

Monitor
improvement
measures taken

The ESG Committee will monitor measures taken for

FEED ONE Group set up the ESG Committee to promote
ESG/SDGs initiatives. The ESG Committee considers anddiscusses the Group’s issues and measures related to
ESG including climate-related risks and opportunities.
The Committee is a cross-organizational structure chairedby the Representative Director and President, andmembers are executives from business and administrative

opportunities

on the Group and develop measures.

Efforts for Climate Change–Responding to TCFD Recommendations
The Group supports the food value chain through the
production and sale of livestock and aquatic formula feed,
mainly composed of grains and fish meal, and the
production and sale of livestock and aquatic products,
and its business is based on the blessings of nature. As
such, a climate change will have a major impact on theGroup’s business. To ensure stable supply of safe andsecure food, we consider responding to climate change
is important.

Analyze and assess risks
and opportunities interms of the impact andtimeframe
Analysis and Create a measureassessment of implementation
plan
risks andin value chains

FY2020

FY2030FY2050*A framework to operate ERM (Enterprise Risk Management)

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FEED ONE CO., LTD. Integrated Report 2022

Integrated Report 2022

30

Strengthening the Foundation for Value Creation

About FEED ONE
P01-08What FEED ONE
Aims to Achieve

Strengthening the Foundation
for Value Creation

P09-18

P19-54

Data Section
P55-64

4. Strategy
The Group considers addressing climate changes as the
management’s top priority, and analyzed the scenario in
2030 to understand the financial impact of climatechanges.

Impact of a Carbon Tax Introduction

In this scenario analysis, we made reference to several
scenarios issued by the International Energy Agency (IEA)
and the Intergovernmental Panel on Climate Change(IPCC).

We have considered the following two types of the Scope
1 and 2 emissions, covering the Company and threesubsidiaries and associates with high CO2 emissions.
In a beyond 2°C scenario, if the Group does notaddress the reduction in CO2 emissions and such
emission increases with growing business activities, the

FEED ONE Group’s climate-related scenarios
Classification

Outline of scenarios

Beyond 2°Cscenario

A scenario in which policies and regulations are implemented toward achieving adecarbonized society, and the global temperature will be controlled at about 1.5°C to
2°C above the pre-industrial levels

IEA World Energy Outlook 2021 “SDS”
IPCC RCP2.6

Main referenced scenarios

4°C scenario

A scenario in which no new policies and regulations are introduced to address climatechanges, and the global temperature will rise about 4°C above the pre-industrial levels

IEA World Energy Outlook 2021 “STEPS”
IPCC RCP8.5

The Group’s carbon tax amount expected in 2030 (million yen) and calculation method
a. If the Group took no initiatives to reduce CO2 emissions
Type Beyond 2°C scenario

Results of scenario analysis and relevant measures
Magnitude offinancial impact

Classification
Policy and regulation Reputation

Transition risks

Acute

Risks/opportunities

Timeframe

Short: Within five years
Medium: Over five years andwithin 10 years
Long: Over 10 years

Description of risks/opportunities

Rising cost by a carbon tax
implementation*Please refer to the top right for calculation details

If a carbon tax is levied on the supply chain
If a carbon tax is levied on logistics or packaging companies, such cost will be passed on to the freight cost of vehicles and cargo ships whichmainly use fossil fuels, and to the cost of plastic packaging materials derived from fossil fuels. As a result, the Group may bear higher cost.

b. If the Group reduced CO2 emissions by 50% in FY2030 (vs. FY2020)

4°C scenario

Calculation method

a

424

250

Calculate by multiplying a carbon tax* rate to FY2030 CO2 emissions which was adjusted with a business growth rate

b

303

164

Calculate by multiplying a carbon tax* rate to the CO2 emissions in FY2030 when the emissions are reduced by 50%, and after adjusting with a business growth rate

*Carbon tax: Beyond 2°C scenario: $120/t-CO2 (Refer to IEA World Energy Outlook 2021 “SDS” for advanced economies)
4°C scenario: $65/t-CO2 (Refer to IEA World Energy Outlook 2021 “STEPS” for EU)
Calculated at 130 yen to the dollar

Magnitude of financial impact
Timeframe
Beyond 2°C
4°C

A potential cost increase from a carbon tax implementation following more stringent global rules on CO2 emissions to achieve a decarbonized society
If a carbon tax is levied on the Group’s CO2 emissions (Scope 1 and 2)

High

Moderate Medium

Measures for risks and opportunities
Initiatives to reduce CO2 emissions (Scope 1 and 2)
Install more energy-saving equipment to factories, improve productivity by utilizing IoT technology, and reduce energy consumption
Install solar photovoltaic panels and renovate aging facilities
Initiatives to reduce carbon tax cost in the supply chain
Animal feed: Increase bulk-loading of formula feed, and reduce disassembling of used flexible container bags at factories
Aquatic feed: Consider use of a plastic feed bag which contains recycled plastic materials
Food business: Consider continued use of pulp mold for commercial egg products, and light-weighting of plastic packaging materials used in meat processing

Declining profit due to a shift in demand towardsustainability-conscious, plant-based meat, etc.

A potential decline in profit due to a shift in demand toward sustainability-conscious, meat alternatives, etc. with an adverse reputation aroundruminants emitting methane, a potent GHG

Physical damage to livestock farmers
and farms due to natural disaster, anda decrease in feed sales volume from a
disruption of distribution network

With climate change predictions, we expect an increased frequency of typhoons of unprecedented scale
A potential decrease in feed sales volume due to concerned damage to a livestock barn of livestock producers in the mountainous areas of weakground, or to a fish tank of aquaculture producers
A potential disruption of distribution network due to the rising level of rivers, landslide, etc.

Low

Low

Short

Suspended factory operation due to anatural disasterWith climate change predictions, we expect an increased frequency of typhoons of unprecedented scale
Potential suspension of factory operations due to extended damage from storm surge
Potential delay in delivering materials to factories caused by late arrival of cargo ships or disrupted road transportation

Low

Low

Short

Under the business continuity plan, we strive to secure safety of employees and conserve production and sale of feed
In case a factory suffers a damage, minimize its damage by ensuring manufacturing support from undamaged factories

Low

Moderate

Long

Technological innovations are progressing such as breed improvement and development of equipment to ensure stable air conditioning of a livestock barn. We willcontinue to gather and issue information on feed management technology.
Water temperature is expected to rise 2 to 3°C in the long term. Growth in demand for land-based closed recirculating aquaculture system, not subject to environmentchanges, is expected and we will consider the development of products for this system.

Impact on livestock and farmed fish bya rise in temperature and sea watertemperature, and a decline in feedsales volume due to a change in
optimal production location in Japan

Impact on livestock
In the 4°C scenario, breeding performance of swine and poultry in Japan may decline toward 2060 due to heat stress from rising temperature.
Risk may increase such as death of cattle and declining milk yield.
Impact on farmed fish
The rate of sea temperature rise at the surface of 30 to 40 north latitude is +0.5°C in the short- to medium-term. We assume the rising sea
temperature will have a minor impact on farmed fish.

Declining profit due to the impact on
raw material production/cost caused byclimate changes

Impact on corn and fish meal production
The crop yield of corn, which is the main raw material of animal feed, is expected to decrease by 25% in 2030 in the US, the leading producer ofcorn. However, we assume stable procurement is possible because corn is expected to increase globally with the advancement of agricultural
techniques and breed improvement.
Fish meal, the main raw material of aquatic feed, is expected to decline globally in the medium to long term. However, its decline rate is small andwe assume stable procurement is possible.
Impact on corn and fish meal prices
Corn prices could rise toward 2030 with a higher demand for bioenergy production, etc.
A potential rise in fish meal price in the medium to long term due to rising energy cost and an increase in capital expenditures associated withtechnological innovations
Sales price of formula feed
Prices of animal feed are revised each quarter to reflect changes in raw material costs to prevent fluctuation risk. However, profit may decline due
to a surge in raw material costs, making it difficult for us to revise the price appropriately.
Prices of aquatic feed are not revised regularly and profit may decline if the increased raw material cost may not be passed on to sales price.

Chronic

Physical risks

Low

Low

Long

Promote R&D of feed with lower environmental impact such as the feed to reduce methane emission from cattle
Branding of environmentally friendly livestock products by promoting sale of livestock products fed with feed with lower environmental impact
Initiatives for producers
Build a system to provide necessary and timely support in case of disaster, by strengthening cooperation with livestock producers and local administration
Gather and share with aquaculture producers the information on farms which can withstand waves, etc. to minimize damage, and develop feeds for such farms
Efforts to prevent disruption of distribution network
Establish a system to have alternate supply routes based on the business continuity plan

High

Long

Low

Low

Medium

We improved the energy efficiency of the Kitakyushu Animal Feed Factory by 17%, while improving its productivity by controlling the electricity and steam amount ofeach process, and reducing energy consumption. Implement IoT technology at all factories to further improve energy efficiency

Reduce energy consumption by efficient
production based on IoT technology

Assume IoT technology will advance and penetrate into the market, with a rising demand for IoT solutions to reduce carbon emission in the entire society
Improve profit with implementation and use of IoT technology, to achieve production efficiency at factories and to reduce energy consumption

Products and services

High

Active use of raw materials with good price and quality advantage (profitable raw materials)
To diversify the risk of material procurement and price fluctuation for animal feed, we will import raw materials from various countries, and actively use profitable
raw materials as alternatives to imported materials, such as domestic feed rice whose production is increasing in recent years.
For aquatic feed, we will conduct R&D on low fish meal and fish meal-free feeds to promote switching of materials. We will also build a system to respond flexibly
by enhancing collaboration with fish meal producers in and outside Japan, while monitoring the supply condition of producers.
Appropriate price revision
We will continue revising the sales prices of animal feed each quarter to an appropriate level. Sales prices of aquatic feed will be revised to reflect changes in raw
material cost, though not regularly.

Resource
efficiency

Opportunities

31

High: Impact on profit and loss is over 500 million yen or a material impact on business operation
Moderate: Impact on profit and loss is over 100 million yen and 500 million yen or less or asomewhat significant impact on business operation
Low: Impact on profit and loss is 100 million yen or less or a minor impact on business operation

carbon tax amount in FY2030 will amount toapproximately 420 million yen.
Meanwhile, if the Group could reduce CO2 emissions
by 50% in FY2030 (vs. FY2020 levels) as planned, carbon
tax amount will decrease by approximately 120 million
yen to approximately 300 million yen. Cost related to CO2emissions reduction is not included.

An increase in feed sales volume bydevelopment and sales of sustainable
feed and use of sustainable raw
materials

Expect a higher demand for feed that will reduce GHG emissions. Expect an increase in feed sales volume by promoting R&D of feed with lower
environmental impact such as the feed to reduce methane emission from cattle and to reduce manure
For aquatic feed, expect higher demand of low fish meal and fish meal-free feeds not dependent on natural resources. Conduct R&D of feed containing
insect-derived materials to replace fish meal and feed material with GHG absorbing function (algae, methanotroph) to increase sales volume

Moderate Moderate

Short

For animal feed, we will develop and sell products that will improve the feed conversion rate of livestock and the feed to reduce manure. Develop products ahead of othercompanies such as developing feed to reduce methane emission from cattle to increase the sales volume of feed
For aquatic feed, we are developing low fish meal and fish meal-free feeds, and started sale of low fish meal feed for some fish species. Use of insect-derived materials, algae,
and methanotroph may be costly, and limited in volume. However, we will implement them ahead of other companies to increase the sales volume of feed.

An increase in feed sales volume due to advanced
technology to prevent heat stress of livestock

Assume breeding performance of swine and poultry may decline toward 2060 in Japan due to heat stress from rising temperature, and risk may
increase such as death of cattle and declining milk yield. Expect a rising demand for feed to prevent heat stressModerate Moderate

Short

We have developed and sold feed and supplements to prevent heat stress, which has largely contributed to improving livestock productivity. We will further focus on
R&D, continue gathering information on feed management technology and provide services.

FEED ONE CO., LTD. Integrated Report 2022

Integrated Report 2022

32

Strengthening the Foundation for Value Creation

About FEED ONE
P01-08Contribution to the Realization of a Resource Recycling Society—Utilization of food by-products and food loss
Some ingredients of formula feeds contain by-products,
such as soybean meal and wheat bran, which are
generated during food production. We are helping torecycle food by effectively utilizing those by-products inthe feed.
In Japan, a total of 25.1 million metric tons of foodwaste is generated annually by businesses andhouseholds, of which a 5.7 million metric tons is food loss
that is still edible but is discarded (on FY2019 estimate).
While we rely on imported food, there is massive foodwaste, and reducing the waste is an issue to address.
We are the pioneer in the industry to use “fried meal,”
which is made by drying and processing food loss frombentos and other food products generated atconvenience stores among others, as a feed ingredient.
The usage, however, is limited due to logistics and costs,
and the challenge is how to expand its use in the future.

What FEED ONE
Aims to Achieve

Strengthening the Foundation
for Value Creation

P09-18

P19-54Conservation of Marine Resources

Relevance to SDGs

Japanese aquatic feed mainly contains fish meal derived
from natural resources (wild fish).
With the growing depletion of natural resources
around the world, the demand for aquaculture isincreasing year by year, and the feed that does notdepend on fish meal is required.

Under such circumstances, we are working todevelop low fish meal feeds which maintain good
breeding performance and we sell many types of low fishmeal feeds. In addition, we are further promoting low fishmeal and fish meal-free feeds by searching for new
materials that can replace fish meal.

Conservation of Biodiversity
Processing
Oil extraction
plantMilling plant
Starch plant

Feed

Processing
by-products

Manufacturing
by-products

Production

Food
loss

Processing
factory
Processing

Distribution

Distribution

Conservation of Marine Resources/Environmental Conservation

Shipment

Relevance to SDGs

—Production and sale of beekeeping feed
Beekeeping is not just about harvesting honey but has a
key role to perform pollination of farm products.
Honeybees used to perform pollination of farm products
also contribute to pollinating plants of nature, and help
conserve biodiversity.
We manufacture the substitute pollens Beehatcher and
Beebreed which are supplied during the building up period
when it is desired to increase the number of bee larvae or
when there is not much pollen to support feeding
management of honeybees which protect biodiversity.

Relevance to SDGs

—Fully-farmed Pacific bluefin tuna

Conservation of Biodiversity

Against the backdrop of increasing global demand forfood from a rise in the global population, the securing ofaquatic resources is becoming increasingly difficult year
by year due to overfishing and illegal operations among
other reasons. In order to properly conserve aquatic
resources, fishing of Pacific bluefin tuna has been
restricted since 2015. Such resource is now on the rise,
however, to promote their sustainable use, we started
research into full-lifecycle aquaculture of Pacific bluefin
tuna in 1986 and succeeded in fully farming Pacific bluefin
tuna in 2014. Since November 2017, Kyokuyo Feed One
Marine Co., Ltd., an affiliate of the Company, has been

P55-64

Relevance to SDGs

—Efforts for transition to low fish meal and fish meal-free feeds

In addition to utilizing food by-products, we willcontinue to promote the use of food loss in formula feeds
and reduce food loss by inspiring people to cherish foodin food and nutrition seminars held as part of local
contribution activities, with the aim of realizing a resource
recycling society.

Data Section

shipping our “Hon-Maguro no Kiwami TUNAGU,”
fully-farmed bluefin tuna product.
Although Pacific Bluefin tuna has been fully farmed,
there are still issues to overcome, such as the low survival
rate of juvenile fish and switching from raw to formulafeed. It is said that Pacific bluefin tuna requires 13 to 14
kilograms of raw feed to grow by 1 kilogram. We areconducting research and development of the formula
feed dedicated for bluefin tuna from the perspective ofprotecting the ecosystem, conserving aquatic resources,
and avoiding marine pollution caused by leftover feed.

—Production support for organic livestock products (Supply of organic JAS-certified feed)
We have been supporting the production of organic
livestock products for many years, procuring organic feed
ingredients, and manufacturing organic feed inaccordance with JAS organic standards at the only
factory in Japan that can produce organic JAS-certified

Procurement of organic
JAS-certified raw materials

Relevance to SDGs

formula feeds. By supporting the production of organic
livestock products not dependent on chemical
substances, we contribute to the conservation of the
global environment and biodiversity.

Manufacture of organic
JAS-certified feed

Producers of organic JAScertified livestock products

Marketable fish

Wildyounglings

Adults derived fromwild younglings

Raising for 5 years

100–300 g/fish

100-250 kg

Collecting and artificially
hatching eggs

Raising
for 5
years

Adults derived from
artificially hatched larvaeCollecting and artificially
hatching eggs

About 40 kg/fish

Full-lifecycle
aquaculture
Together with our partners in different
countries, we support organic JAS
certification and procure organic feed
ingredients.

100-250 kg

Adults derived from
artificially hatched larvae

33

FEED ONE CO., LTD. Integrated Report 2022

Kashima Feed Co., Ltd., an affiliatedcompany of ours, is the only factory inJapan that can produce organic
JAS-certified formula feeds.

Through the supply of organic JAScertified feed, we have been promoting
the production of organic JAS-certified
livestock products with producers formany years.
Integrated Report 2022

34

Strengthening the Foundation for Value Creation

About FEED ONE
P01-08What FEED ONE
Aims to Achieve

Strengthening the Foundation
for Value Creation

P09-18

P19-54

Data Section
P55-64SocialCreating Attractive Workplaces, and Prospering in Harmony with Society
To meet expectations from society and fulfill our responsibilities as a corporate citizen, we respect human rights, create acomfortable environment for anyone to work in, and give back to society through our business, based on our materiality
target, “Creating attractive workplaces, and prospering in harmony with society,” aiming for a sustainable world.

Message from the Officer in Charge of
Human Resources

Creating a company where
employees can work
dynamically and growYoshimasa Umemura
Director, Managing Executive Officer;
General Manager, Administrative Unit

Aiming to Enhance Employee Engagement
Within the Group, each group company carries out its
own recruitment to secure the human resources it needsin accordance with the nature and content of its business.
For example, at FEED ONE CO., LTD., we focus on
recruiting new graduates for the main career track andthen cultivate new employees by rotating them between
different types of work, including sales, manufacturing,
research, and management.
In regard to our work-style reform efforts, we haveadapted to changes in legislation, including by facilitating
the taking of annual paid leave and setting an upper limit
on overtime working hours, and we are introducing new
personnel systems to increase the diversity of workstyles. In April 2022, we introduced a life event systemthat enables employees to keep working in a specificlocation for a limited period in accordance with life events,
and a pair transfer system that enables married couples
within the Company to work in the same area. We havealso increased the number of users for existing systems,
such as the job return system for re-employing people
who previously left the Company. Telecommuting andstaggered work hours have been promoted during the
COVID-19 pandemic, due to the need to prevent
infections and avoid contact at workplaces, so these are
already well established within the Company.
In regard to maintaining and enhancing employee
health, since making a Health and Productivity
Management Declaration in April 2020, I have served as a
Chief Health Officer to lead efforts to advance initiatives
on a company-wide basis. As part of these efforts, this

35

FEED ONE CO., LTD. Integrated Report 2022

fiscal year we have started providing support for
improving health-consciousness among employees byintroducing a health and productivity management app
that can be used on smartphones and PCs. In addition to
enabling individual employees to accumulate data onthemselves by entering health-related information, suchas diet, step counts, and body weight, on a daily basis,
the app can also be used to check the results of theirannual health checkup and messages from public healthnurses. Also, in July 2022, we released our Health andProductivity Management Strategy Map, which clarified
what the Company will do and what each employee
should do to continuously improve values for relevant
KPIs, namely the smoking rate, the percentage of
employees with a BMI of 25 or higher, the participation
rate for health re-checkups, the percentage of highlystressed employees, and turnover rate, as well as what
will change as a result of this.
Furthermore, in regard to promoting the active
participation of female employees in the workplace, as ofAugust 2022, the ratio of female employees has finallypassed the 20% mark at 22.4% of all employees, but theratio of female managers remains low at 3.6%. However,there is an upward trend in the number of women wishing
to join the Company as new graduates and the numberof women taking livestock and aquaculture-related majors
at university, so we expect these numbers to improvefurther in the future. We will continue to support thebalancing of work and home lives by introducing
personnel systems that lessen the burden on employees

at their workplaces and help our female employees tobuild careers by broadening the areas in which they can
actively participate.
These human resources measures need to ensurethat factors such as the numbers of business locations
and employees, and the work experience of individual
employees are balanced in a way that maintains theinternal job rank system, predicated on businessdevelopment that meets customer needs, and in order forthis to lead to enhanced employee engagement, we needa framework that monitors satisfaction levels andawareness in regard to the Company, workplaces, andduties, properly takes into account opinions and requests,
and feeds them back into personnel management.
We are currently advancing our Third Medium-Term
Management Plan to put the finishing touches on ourbusiness integration. As part of this plan, we will carry out
opinion surveys covering all employees through which wewill monitor the status of employee engagement.

Background behind the Human Rights Policy Disclosure and Future Initiatives
In March 2022, we disclosed our Human Rights Policy
which clarifies our thoughts regarding human rights andhow we will handle them. This policy applies to all Group
officers and employees and we expect various
stakeholders, including business partners, to understandand practice respect for human rights in line with thepolicy, so that we can promote respect for human rights
in a collaborative manner.
Previously, we had been developing businesses thatspecialize in the feed and food sectors, with a focus on
the Japanese market, so our human rights efforts mainly
covered inhouse issues and culminated in a code of
conduct that addressed harassment and discrimination.
However, in recent years we have been advancing
initiatives based on our approach to ESG and the SDGs,
so we recognize the need to review our human rights
efforts in line with global standards, taking into accountour goal of realizing a sustainable, prosperous future.
Accordingly, we have revised and clarified our policy.
Going forward, we will take an even broader
perspective and practice human rights due diligence byworking to identify and evaluate any negative impacts onhuman rights associated with our business activities andthen taking steps to prevent or mitigate them. Specifically,
we will identify and evaluate human rights issues underguidance from external experts and assign them an orderof priority. We will then establish methods to addressthese issues on a daily basis through our businessactivities and carry out continuous monitoring. Taking the
procurement of raw materials as an example, to date,
we have ensured safety and quality by carrying out daily
monitoring of production status, manufacturing methods,
and storage and transportation status. We plan to add
the monitoring of human rights issues to this process.

The Human Resources Sought by FEED ONE and How We Will Develop Them
The qualities we look for in the people we work with are
the ability to take the initiative and act, a sincere
disposition and ability to work together with others, and awillingness to take on challenges driven by a curiosity
about everything. I think these three qualities are not justinternal conditions, but also expected by our customers.
Our human resources development incorporates typeof work and job ranks into a human resources evaluation
through which we share our business targets and growthtargets with the employee. Our position-based training
covers all employees and the curriculum comprises sevenlevels for the main career track and five or six levels thatengineering track and general track employees takeseparately. This training enables employees to accumulate
position-appropriate business skills, including businessmanners, communication, and problem solving, whichthen leads into an executive development program thatenhances management capabilities and leadership skills.
As part of our human resources development
program, we also provide skill- and work-based training
and internal certification exams specialized for each typeof work, such as sales and manufacturing, while training
for each job rank includes evaluator training, labor
management, and IT skills. Separate to these, we havealso established an online learning system for all

employees, which provides training on around 10 themes
each year, such as compliance and mental health.
We also have an application-based overseas training
program.
Regarding the cultivation of next-generation leadersand candidates for executive positions, we have yet toreach a stage where specific succession plans are
implemented for employees in their 20s and 30s. To date,
we have been encouraging management-level employees
to improve their skills through theme-based and positionbased training that mainly focuses on topics related toorganizational management and leadership. Goingforward, as a company listed on the Tokyo Stock
Exchange’s Prime Market, we need to cultivate humanresources who can consider management issues fromthe perspectives of business continuity and providing
social value, so we need to enhance the content oftraining to cover skills for tackling the management andsocial issues that next-generation leaders and candidates
for executive positions will need to address.
To start with, this fiscal year we will implement training
based on the Human Rights Policy mentioned previously
to foster awareness within the Company and promote its
implementation within our business activities.

Integrated Report 2022

36

Strengthening the Foundation for Value Creation

About FEED ONE
P01-08

Respect for Human Rights

Considering human rights as one of the most material
issues to be addressed in its initiatives for sustainability,
the Company has instituted the Human Rights Policy on
March 24, 2022 to clarify its approach to human rights
and is promoting the initiatives.

Outline of the Human Rights Policy
We respect the human rights of all stakeholders involved inour business activities, including employees and business
partners, and recognize the importance of ensuring goodlabor practices. Therefore, in accordance with a basic

Human rights
risk assessment(impact
assessment)

policy set forth in the FEED ONE Group Employee Code of
Conduct, we require all group companies to conduct
sincere business in compliance with laws and regulations
and with respect for human rights.
With respect for “human rights” as set out in theInternational Bill of Human Rights and the International
Labour Organization (ILO) Declaration on Fundamental
Principles and Rights at Work, this policy applies to all theGroup’s officers and employees and is promoted incooperation with business partners and other related parties
based on the United Nations Guiding Principles on Businessand Human Rights. In doing so, their initiatives aresupervised by the Board of Directors of the Company.

Integration
into internal
departments andprocedures, andappropriate
actions

Provision of education andtraining
Improvement of internal
environment
Management of supply chain

Human rights due diligence
Disclosure of information onhuman rights risk assessment
results, etc.

Information
disclosure

Tracking

Monitoring
Regular employee and business partner questionnaire
surveys

Construction of remediation andgrievance mechanisms

Formulation of
the Human Rights Policy

Identification, analysis, andevaluation of negative impact
on human rights

We will not accept forced labor, child labor, or any otherunfair labor practices.
We will neither take part in any kind of discrimination,such as race, belief, gender, social status, religion,
nationality, age, sexuality, gender identity, or physical ormental disabilities, nor accept any form of harassment.
We will respect employees’ freedom of association andright to collective bargaining in labor-management
relations.
We will create a work environment where eachindividual can continue working safely and securely ingood health in accordance with laws and regulations.
We will take necessary action to prevent negative
impacts on local communities in conformity withinternational standards.
We will provide education and training and takeappropriate action to address human rights challenges.
We will construct a grievance mechanism to work on
remediation and remedy.
We will regularly report on the implementation andprogress of initiatives to promote respect for humanrights on our corporate website or through othercommunications.

37

FEED ONE CO., LTD. Integrated Report 2022

P09-18

P19-54The Company puts emphasis on
employee education.
We are intending to strengthen
our organization by developing
human resources who will energize
the Company in the future.

Future Initiatives for Human Rights
The Company has operations not only in Japan, but alsoabroad.
As for human rights challenges set forth in the Human
Rights Policy, the Company will assess (i) human rights
risks associated with the Company’s business in Japanand (ii) those associated with the Company’s business ineach country outside Japan.
We will identify where and what kinds of human rights
risks exist within the Company and address internal
human rights challenges. Meanwhile, we will also work on
human rights challenges by assessing human rights risksof business partners and other stakeholders and those in
the supply chain to identify challenges the Company
should address.
At the same time, we will work on training andawareness building activities on human rights issues tobuild right understanding and awareness of such issues
among all officers and employees so that they can think
about the issues as their own problem and act
accordingly.

Data Section
P55-64

Relevance to SDGs

How the education
system works

OFF-JT

Position-, department-,
selection-,or theme-based training

SD(Self Development)

Providing support
for correspondence courses
and self-development

Trinity

OJT

Guiding and training
by superiors at the workplace

Employee Education System
Our new employee training, which starts shortly after the joining of new employees, and position-based training aredesigned to learn basic capabilities such as logical thinking. Meanwhile, we provide theme-based training to have
employees acquire specific knowledge and skills required in the course of their work.
The Company has systematized its employee education system to support the growth of each and every employee.
New employee training
This program primarily comprises onsite experience-based
training at sales locations, factories, research centers,
livestock farms, and other such locations (the training
content has been partially changed to prevent COVID-19
infection). Shortly after their joining, new employees
participate in group training to learn about the Company’ssystems, the role of each department, and the basic
knowledge on livestock and manufacturing as well as toacquire skills required as an employee in a feed company.
Position-based training

Outline of Initiatives for Addressing Human Rights Challenges

Strengthening the Foundation
for Value Creation

Human Resources

Relevance to SDGs

Initiatives for Human Rights

What FEED ONE
Aims to Achieve

We provide various position-based training programs for
employees to acquire business skills required for eachposition, such as Pre-Hop Program for younger
employees in their second year; Hop Program for
meddle-level employees; Step Program for potential
managers; and Jump Program for middle-level managers.
We also provide leader training to develop innovative
leaders who will take charge of the Company’s
management in the future. With the themes of succession
planning and problem formation and solving, the training
is aimed at developing human resources who can adapt
to the VUCA* era, giving an eye to the external
environment.
*An acronym made up of four words: Volatility, Uncertainty, Complexity, and Ambiguity. It refers to theera in which existing values or business models are no longer viable. It is a word describing
unforeseeable present-day circumstances.

Theme-based training
We hold training courses on various subjects for
employees to learn skills and ways of thinking required toperform their work duties, such as communication and IT
skills, career design for female employees, labor
management, newly appointed managers, and EAP.*
For example, we are seeking to reform the mindset ofmanagers through our communication skill training topromote the active participation of female employees byinviting a specialist as a lecturer.
*EAP is an abbreviation for Employee Assistance Program. It refers to an employee assistanceprogram to provide appropriate care for employees with mental and physical disorders.

Specialized training
Our sales departments hold specialized training for theirstaff to learn advanced knowledge and skills. Suchtraining is aimed at deepening the understanding about
the ecology of livestock and farmed fish and thecharacteristics of their feed as well as at acquiring
required skills by providing training on nutrition science
with lecturers invited from overseas and holding a study
session on genomic analysis. Also, we provide the Farm
Walk Through training at customers’ farms across thecountry with the attendance of experts in order for
employees to improve their on-site advisory capabilities
and deepen their feed management skills.

Self-development Support
We also actively support employees who want to learn and develop themselves by providing subsidies and incentives fortaking correspondence courses and taking examinations to acquire qualifications. Under this support system, employees
have obtained various qualifications.
*Examples of obtained qualifications: Official Business Skill Test in Bookkeeping, Japan Business Law Examination, TOEIC, class-1 health supervisor, and electrician

Integrated Report 2022

38

Strengthening the Foundation for Value Creation

About FEED ONE
P01-08Work-style Reforms

What FEED ONE
Aims to Achieve

Strengthening the Foundation
for Value Creation

P09-18

P19-54

Data Section
P55-64

Relevance to SDGs

Initiatives for Promoting Active Participation of Female Employees
We are actively introducing initiatives such as promoting paid leave acquisition, introducing staggered work hours,
telecommuting, or a reinstatement system, and respecting diversity, with an aim to create a workplace where employees
can work without anxiety over the long term by improving the work environment and enhancing welfare programs.
Promotion of paid leave acquisition
Created an environment where employees can feel free to takepaid leave by introducing paid anniversary leave, five consecutive
days leave, and event leave.
Staggered wok hours system
Established a system that allows employees to advance or delay
the start and end times by up to an hour per day.
Telecommuting system
Established a system that allows employees to work from homeas long as it does not adversely affect operations.

Leave system
Established a system that allows employees to take up to 29 months’
leave according to their length of service if they cannot attend work
due to illness, injury, or other such reasons not caused while on duty.
Caregiver leave
Established a system that allows employees to take a leave of absence
for up to one year in total per subject family member, as a general rule.
Reduced work hours for caregivers
Established a system that employees can use until they reach60 years of age.

Introducing New Personnel System that Supports Diverse Work-styles
On occasion, the Company carries out a personnel
transfer that results in the relocation of the employee’s
residence as it has business sites across the country. We
recognized that high turnover of employees due tomarriage or the transfer of their spouse was one of thepriority challenges to be addressed. In April 2022, wehave therefore introduced a new personnel system thatallows employees to choose their ways of working at theCompany, taking into account their careers.

Local job transition system (life event) (newly established in April 2022)
This system exempts employees from accepting a transfer that results in the relocation of their residence for a limited period of time of
up to six years if they ask to be exempted from such a transfer due to personal life reasons. Employees are allowed to use this system
no matter whatever the reason is, for example, marriage, childbirth, school enrollment, or attachment to where they live.
Simultaneous transfer system for married couples (pair transfer) (newly established in April 2022)
This system makes an arrangement for a married couple who are both employees of the Company to be able to work in the same area
as their spouse. If an employee works in the same area as his/her spouse, we will make an arrangement to transfer both of them to thesame area at the same time. On the other hand, if an employee works in a different area from his/her spouse, we will make anarrangement to transfer either one or both of them so that they can work in the same area.
Job transition system for family caregivers and other employees who have a compelling reason(revised the previous system in April 2022)

This system exceptionally exempts employees from accepting a transfer that results in the relocation of their residence for a limited
period of time set by the Company if they cannot accept such a transfer due to nursing care of a child or other family members, theirown illness, or any other compelling reason.

We launched the FEED ONE Project to Help Women
Shine in 2015 and put in place a system to help
employees better balance their work and home lives
reflecting the voices of female employees. The

percentage of employees returning to work after taking
childcare leave has been maintained at 100% since 2016.
The number of male employees who have taken childcare
leave has been increasing since FY2021.

Paid leave reserve system
This system allows employees to reserve their unused, expired
paid leave of up to 60 days and use the leave for treatment of
their own illness or injury not caused while on duty, fertility
treatment, nursing care, or gradual entry to daycare for theirchildren.
Reduced work hour system for childcare
This system allows employees to reduce their normal work hours
by 10 minute increments and can be used for longer than thestatuary period, i.e., until children reach the third grade ofelementary school.
F leave (menstrual leave)
We changed the name of menstrual leave to F leave to reduce
the hesitation employees may feel to apply for the leave and grant
paid leave of up to two days per fiscal year.

Voice

Early reinstatement support
To prevent career discontinuation by promoting earlyreinstatement, we provide a support grant of 300,000 yen for
employees who return to work within 180 days after childbirthand 100,000 yen for employees who return to work within 270
days after childbirth.
Job return system
This system promotes the reemployment of former employees
who left their jobs due to marriage, childbirth, childcare, transferof their spouse, or nursing care of their family members.
Career design training for female employees
This training is intended to help female employees work with aclear picture of their own life events and career.
Training for managers who have female
subordinates
This training is mainly targeted for male managers to learn aboutchanges of health conditions and types of harassment specific tofemales.

Striving to Balance Work and Childcare
Daigo Ito Senior Staff, General Affairs Division, Administrative Unit
What made you take childcare leave?
My wife and I wanted to concentrate on childcare in tandem for a while justafter my child was born as it was an important period for both parents andchild. So, I decided to take childcare leave.

You were the first male employee who took childcare leave. What was the reaction of people around you?

Promoting Active Participation of Rehired Employees
The Company has revised its treatment of rehired
employees in order to promote the active participation of
employees who have reached the retirement age. Taking
advantage of know-how that rehired employees have
Incentive special pay
We provide special pay to employees in the first half and thesecond half of the fiscal year separately from their fixed salary,according to their evaluation.

39

FEED ONE CO., LTD. Integrated Report 2022

cultivated to date, they are contributing to raising the job
skill level of younger employees by passing down theirskills and providing education to younger generations.

Second career support system
This system allows employees to consider an option for
reemployment by the Company (or for working for anothercompany) by comparing treatment that we offer from thoseoffered by other companies with the aid of an outplacement
consulting firm.

When I consulted with my supervisor about my wish to take childcare leave, I remember clearly that he gave
willing consent to my decision and supported me. I was able to be prepared for taking childcare leave
without anxiety thanks to the supervisor’s encouragement and team members’ support.

Has anything changed after taking childcare leave?
Compared to before taking childcare leave, my motivation for both work and my personal life has increased
significantly. As I understood how hard it is to raise a child, I was able to deepen my love for my family.
At the same time, it made me rethink about the way to proceed with work and the way of working. The
Company is now experiencing a rapid digitalization of its operations. The active use of an online meetingsystem and an electronic filing system has allowed us to work without going to the office. I am also striving
to better balance work and childcare by utilizing systems that allow us to work flexibly, such as
telecommuting system and hour-based paid leave system.

Integrated Report 2022

40

Strengthening the Foundation for Value Creation

About FEED ONE
P01-08

Health and Productivity Management

Relevance to SDGs

In 2019, we have established the post of Chief Health Officer (CHO) and announced our Health and Productivity
Management Declaration. Considering employees as the most important management resource, the Company aims to
improve labor productivity by maintaining and enhancing the health of our employees and keep growing sustainably to bea pleasant company to work for. The CHO and the Human Resources Division are taking the lead in promoting initiatives
for health and productivity management in cooperation with the Health Committee established at each business site.
We keep track of KPIs for health and productivity management to measure the effectiveness of our initiatives. In doing
so, we are intending to take appropriate measures to maintain and enhance the health of our employees, raise the healthawareness among them, improve the work environment, and increase our productivity.

Challenges and Numerical Targets for Health and Productivity Management

Disclosing Health and Productivity Management Strategy Map

We are promoting our initiatives by setting numericaltargets for health and productivity management KPIs to
be achieved by the end of FY2023, the final fiscal year of
the Medium-Term Management Plan. In order to improve
the health level of our employees, we have first set targets
and then taken necessary measures primarily for KPIs
with figures worse than the national average.
To prevent second-hand smoke, we thoroughly ban
smoking during working hours and offer subsidies fornon-smoking outpatient expenses. Through thesemeasures, so far, 78% of the employees trying to quit
smoking have succeeded in smoking cessation. We also
implement a walking campaign twice a year to provide
employees with opportunities for exercise as apreventative measure for lifestyle-related diseases.
Approximately 30% of our employees participate in the
campaign, which is intended to raise awareness ofwalking more than usual and importance of persistence.
Furthermore, in October 2021, we started offering an
online stretch class once a week to refresh employees
during working hours and prevent low back pain among
them. Approximately 20% of the employees at the head
office attend the class every time.
As for support for employees’ voluntary efforts toenhance their health, we strive to improve the healthliteracy of our employees by providing them with healthinformation through a monthly health column written by apublic health nurse as well as e-learning courses.

In July 2022, the Company prepared a strategy map with afinal goal of remaining a vibrant company by enhancing themental and physical health of each individual employee.
While the Company is committed to supporting people’s
daily diet, which is indispensable for health, the first thing
we need to ensure is that our employees are in good
health so that they can work lively. Accordingly, we haveincorporated this concept into the strategy map and also
included indicators leading to diverse ways of working andjob satisfaction, in addition to those related to mental andphysical health, in it. We will monitor figures for theindicators included in the strategy map as health andproductivity management KPIs.

Targets to be
Results forachieved by
FY2021the end of FY2023
100%
100%
59.2%
100%
96.7%
100%
12.2%
10% or less
26.3%
18% or lessHealth and productivity
management KPIs
Participation rate for health checkups
Participation rate for health re-checkups
Participation rate for stress check tests
Percentage of highly-stressed employees
Smoking rate
Percentage of employees with a
BMI of 25 or higher
Average hours worked in excess ofstatutory working hours per month
Average number of days of paid
leave taken per year
Average number of days ofsummer vacation taken per year

41

33.5%

30% or less

6.0 hours 10 hours or less12.3 days 12 days or more

FEED ONE CO., LTD. Integrated Report 2022

2.9 days

Health and Productivity Management Strategy Map (available in Japanese only)

https://pdf.irpocket.com/C2060/JS39/fVuj/slue.pdf

Strengthening the Foundation
for Value Creation

P09-18

P19-54

Data Section
P55-64Contribution to Society
We believe that continuing to support the stable supply of food that is indispensable to our daily lives and accumulating
activities that are efficient for the global environment protection, formation of dietary culture, support for education, ordevelopments of the industry and local communities will earn the trust of society and lead to prosperity in harmony withsociety. Based on this belief, FEED ONE, as a member of society, will contribute to the development of the whole society.

Introducing New Technologies
in the Livestock Industry

Relevance to SDGs

The shortage of humanresources in the livestockindustry has become a serious social issue, andexpectations for mechanization, automation, or
digitalization are increasing.
Developing and selling dedicated feed forautomatic milking system (AMS)The AMS project team formed
in 2015 has worked on farmer
support, including AMS
introduction and management
advice based on AMS data
analysis, as well as thedevelopment of dedicated feed
for AMS, which obtained apatent in 2016 and has been
well received by producers.

Certified Health and Productivity Management Organization and
Yokohama Health and Productivity Management Certification
As in 2021, the Company was named as a 2022 CertifiedHealth and Productivity Management Organization in
2022 under the Certified Health and Productivity
Management Organization Recognition Program, jointly
selected by the Ministry of Economy, Trade and Industry
and the Nippon Kenko Kaigi. Under the Certified Healthand Productivity Management Organization Recognition
Program, the Nippon Kenko Kaigi examines large
enterprises, SMEs, and other organizations engaging ininitiatives for overcoming health-related challenges incommunities or for promoting health-conscious activities
led by the Nippon Kenko Kaigi, and it recognizes
outstanding enterprises carrying out efforts for health andproductivity management.
The Company was also accredited Class AAA, thehighest rating, in the Yokohama Health and Productivity
Management Certification 2022 organized by Yokohama
City where the head office is located.

What FEED ONE
Aims to Achieve

Providing genomic analysis service for dairy cows
FEED ONE, which started agenomic analysis service fordairy cows in July 2018, wasthe first domestic feed
manufacturer to introduce theservice. By analyzing DNA,dairy cows’ genetic abilities
such as fertility, milk quality,
disease resistance, and body
shape can be quantified. As aresult, the individual cow’s
performance evaluation, which
previously took three years or
more, has become possible immediately after birth, which
has dramatically shortened the time required for selective
breeding.
In addition, this technology has enabled us to use
analysis results to propose the right cattle feed plans,
which contribute to further improving the production
performance and management of producers.

Organizing Food andNutrition Education Activities

Relevance to SDGs

Th Company holds food andnutrition seminars every year for
students of local elementary, middle, and high schools,
where they enjoy obtaining correct information about foodand learning about the importance of food.
Through our food and nutrition seminar, which takes
advantage of our characteristics as a formula feed
manufacturer, we help young people develop skills tochoose good food by themselves and enhance healthawareness by passing on knowledge on food value chain
system, differences in domestic and imported products,
differences in wild and farmed fish, and nutrition. At thesame time, the seminar also aims to enlighten consumers
about the significance of our industry, which they have
few opportunities to be directly involved in.
In FY2021, we held food and nutrition seminars online
so that we were able to provide food and nutrition
education to many students online, although we could
not hold a cooking class, which is included in our normal
program.
We also enriched the content of our website for foodand nutrition education and virtual plant tour “Shiru
Manabu (know and learn),” which had been launched on
our corporate website in
FY2020, to enhancelearning opportunities aswell as to contribute topromoting theconsumption of domestic
livestock and aquatic
products.

Work Experience Program

Relevance to SDGs

We directly invited middle andhigh school students fromacross the country to theCompany to support the career education of thegeneration who will shoulder the future by introducing
people working at the Company and our SDGs initiatives.

3 daysIntegrated Report 2022

42

Strengthening the Foundation for Value Creation

About FEED ONE
P01-08What FEED ONE
Aims to Achieve

Strengthening the Foundation
for Value Creation

P09-18

P19-54

Data Section
P55-64

Corporate Governance<Strengthening Corporate Governance>

Skills Matrix

FEED ONE aims to enhance its corporate value by ensuring more objective andComprehensively considering the composition of theBoard of Directors to enhance governance, the Company
has appointed members of the Board of Directors asshown in the previous page to fully utilize their skills inbusiness activities.

transparent management as well as further strengthening andimproving the compliance framework.

SkillsCorporate
Industry expertise Marketing and Finance, accounting
management (feed, raw materials, etc.)
sales
and economics

Basic Policy and Framework for Corporate Governance

Governance Framework and Design
The Company appoints External Directors to enhance theBoard of Directors’ risk management framework andensure transparent management, while introducing an
executive officer system and holding the Executive
Committee meetings, etc. for efficient management. This isfor expediting decision-making and streamlining businessexecution without compromising the enhancement ofsupervisory functions. In addition, we have adopted theBoard of Corporate Auditors system, comprising three
Corporate Auditors including two External Corporate
Auditors to ensure an objective supervision from an
independent position over the Company’s decision on
management and business executions.
The Board of Directors, which is composed of
Directors and Corporate Auditors, makes important
Title

Name

Board of Directors Board of Corporate Auditors Nomination and Remuneration Committee

Representative Director

Takashi Yamauchi

Chairman—MemberRepresentative Director

Hidehiro Shoji

Member—MemberDirector

Naoki Hatanaka

Member——Director

Yukihiro Arakida

Member——Director

Yoshimasa Umemura

Member——External Director

Akio Ishizuka

Member—ChairmanExternal Director

Kikue Kubota

Member—MemberExternal Director

Keizo Goto

Member—MemberExternal Director

Osamu Watanabe

Member—MemberExternal Director

Takao Tsuji

Member—MemberExternal Corporate Auditor

Eiichi Yano

Observer

Chairman—

Corporate Auditor

Toru Aoyama

ObserverMember—Naohiro Chikada

ObserverMember—External Corporate Auditor

43

decisions on business executions, and meets once permonth in principle. Furthermore, the Executive
Committee, which is composed of Executive Officers, inaddition to the Board of Directors members, meets atleast once per month in principle to deliberate importantmatters related to the management. The Board of
Corporate Auditors, which is composed of Corporate
Auditors, meets once per month in principle.
In addition, the Company has the Credit Committee,
the Compliance Committee, and other committees, which
are composed of Directors in charge, Executive Officers,
and employees to manage risks that may arise from thebusiness development of the Group and to discuss
important matters. Corporate Auditors, including two
External Corporate Auditors, attend important meetingsand committees depending on their roles.
The Company also has the Nomination andRemuneration Committee composed of External Directors
and Representative Directors. We follow procedures
designed to ensure objectivity and transparency in thenomination and remuneration of Directors, and theNomination and Remuneration Committee submits a
proposal to the Board of Directors after consultation andrecommendation.
The members of the Company’s major committees
are as below:

FEED ONE CO., LTD. Integrated Report 2022

International
business experience

Academic
research

Hidehiro Shoji
Naoki Hatanaka
Yukihiro Arakida
Yoshimasa Umemura

External Directors

The Group regards corporate governance as amanagement priority. Our basic policy is to establish an
optimal management structure to ensure efficient,transparent, and sound management practices to gain
trust of stakeholders including shareholders, customers,
business partners, local communities, and employees,
while striving to increase corporate value.

Legal affairs

Takashi Yamauchi
Directors

Basic Policy

We will flexibly review the skills of each Director
responding to changes in business and social
environment, to enable flexible corporate management
and ensure appropriate governance.

Akio Ishizuka
Kikue Kubota
Keizo Goto
Osamu Watanabe
Takao Tsuji

External Officers Framework / Evaluation of the Effectiveness of the Board of Directors
External Officers Framework
The Company has five External Directors and two External Corporate Auditors.
External Directors
Name

Reason for nomination and expected roles

Akio Ishizuka

Mr. Akio Ishizuka provides appropriate advice and supervision for the management of theCompany, leveraging his experience as a judge and his expertise in law. In addition, as alawyer, he is qualified to oversee management from an objective and independent
perspective based on an overall grasp of corporate society, including laws and regulations.
The Company believes that he can help improve the transparency and reinforce thesupervisory functions of its Board of Directors.
The Company expects that he will play roles in supervising corporate management from aviewpoint of a legal expert as well as from an objective position independent of businessexecutors.

Attendance at Independent
Significant
meetings
Officer concurrent positions

17/17

Representative Lawyer,
Nakaurawa Law Office

Kikue Kubota

Ms. Kikue Kubota has long been engaged in studies in food science and other fields at
Ochanomizu University, where she serves as Professor Emeritus, and has expertise mainly in thefood business of the Company. She also serves as an auditor of a national university corporation.
The Company believes that she can provide helpful advice and suggestions concerning theCompany’s overall management from an objective perspective.
The Company expects that she will play roles in supervising corporate management from aviewpoint of an expert in the field of food business as well as from an objective position
independent of business executors.

17/17

Professor Emeritus,
Ochanomizu University
Auditor (part-time),
Tokyo University ofMarine Science andTechnology
Auditor (part-time),
Tokyo University ofAgriculture

Keizo Goto

Mr. Keizo Goto has experience of working at regional taxation bureaus and serving as
Designated Professor at the Graduate School of Economics, Rikkyo University, and therefore
has expertise in finance and economics, etc. The Company believes that he is qualified tooversee management from an objective and independent perspective leveraging his
experience from serving as a Full-time Auditor of Japan Freight Railway Company and canhelp improve the transparency and reinforce the supervisory functions of the Company’s
Board of Directors.
The Company expects that he will play roles in supervising corporate management from aviewpoint of an expert in the field of finance and economics, etc. as well as from an
objective position independent of business executors.

17/17

—

Integrated Report 2022

44

Strengthening the Foundation for Value Creation

About FEED ONE
P01-08Name

Osamu Watanabe

Takao Tsuji

Reason for nomination and expected roles
Mr. Osamu Watanabe has knowledge of the grain, fats and oils business in which he wasmainly engaged at Mitsui & Co., Ltd. He also has work experience in overseas business andfood business, including serving as a corporate officer and general manager of overseas
sales department of a company handling food products. The Company believes that he canhelp reinforce the management structure of the Company by providing advice on the
Company’s business activities from a broad perspective.
The Company expects that he will play roles in helping reinforce the management structureof the Company by leveraging his work experience in overseas business and food businessand providing advice on the Company’s business activities from a broad perspective.
In addition to work experience at trading companies, Mr. Takao Tsuji has wealth ofexperience and broad insight which he gained through managing two companies listed on
the First Section of the Tokyo Stock Exchange. The Company believes that he can help
improve the transparency and reinforce the supervisory functions of the Company’s Boardof Directors by overseeing and supervising management from an objective and independent
perspective as an experienced corporate manager.
The Company expects that he will play roles in helping reinforce the management structureof the Company by leveraging his corporate management experience and providing advice
on the Company’s business activities from a broad perspective.

Attendance at Independent
Significant
meetings
Officer concurrent positions

17/17

— *2

General Manager, Fatsand Oils andProcessed Ingredients
Solutions Division,
Food Business Unit,
Mitsui & Co., Ltd.

— *1

—

External Corporate Auditors
Name

Reason for nomination and expected roles

Eiichi Yano

Mr. Eiichi Yano has broad insight on management and finance acquired at financial
institutions. He has been serving as a full-time External Corporate Auditor of the Company forfive years, during which he has accumulated knowledge of the feedstuff, livestock, andfisheries industry. Furthermore, he has also been serving as an auditor at an important
subsidiary of the Company and well versed in management conditions of the Group
companies.
The Company expects that he will help further strengthen the audit system for its businesses
by leveraging his wisdom and expertise acquired from a company-wide viewpoint.

Naohiro Chikada

Mr. Naohiro Chikada has professional knowledge accumulated as a certified public
accountant and a tax accountant, and serves as an audit & supervisory committee member
at other listed companies. The Company expects that he will help further strengthen theaudit system for its businesses by reflecting his wealth of experience in corporate audits in
the Company’s audits.

Attendance at Independent
Significant
meetings
Officer concurrent positions

17/17

17/17

— *2

—

Representative, Chikada Certified
Public Accountant Office
Representative Partner, Koa Audit
Corporation
Outside Director (Audit &Supervisory Committee Member),
SKIYAKI Inc.

*1 The attendance above covers the meetings of the Board of Directors held in FY2021. Furthermore, as Director Mr. Tsuji assumed the office of External Director of theCompany in June 2022, his attendance at the meetings of the Board of Directors in FY2021 is not presented.
*2 The Company has not designated Director Mr. Watanabe and Corporate Auditor Mr. Yano as independent officers because Mr. Watanabe currently works at a business
partner of the Company and Mr. Yano previously worked at a business partner of the Company.
Furthermore, the Company has not set out independence criteria or policies for selecting External Directors and External Corporate Auditors. However, the selection process
follows the independence criteria prescribed by the Tokyo Stock Exchange so as not to cause conflicts of interest with general shareholders.

Evaluation of the effectiveness of the Board of Directors
The Board of Directors of the Company conducts a survey
including self-evaluation for all Directors and Corporate
Auditors including External Directors and External
Corporate Auditors on a yearly basis to analyze andevaluate its effectiveness. Based on these analyses, weconsider that the Board of Directors as a whole functions
effectively. The Company ensures the anonymity of the
respondents by having them answer the questionnaire
directly to an external institution.

Initiatives for enhancing corporate governance / Policy and procedures for nomination
Policy and procedures for nomination
The Company takes into account all the skills and proventrack record a candidate possesses in the nomination of a
Director or Corporate Auditor candidate. In addition, whennominating an External Officer, we select a person who
can provide opinion from an objective perspective.
In line with the above policy, the Company has
established the Nomination and Remuneration Committee,

45

FEED ONE CO., LTD. Integrated Report 2022

which is mainly composed of independent External
Directors, to review the appropriateness of the candidate
screening process and remuneration for Directors.
The Board of Directors selects candidates for Directoror Corporate Auditor based on the procedures above
including the recommendation at the Nomination andRemuneration Committee.

What FEED ONE
Aims to Achieve

Strengthening the Foundation
for Value Creation

P09-18

P19-54

Data Section
P55-64

Basic Design of Officer Remuneration
Basic Policies

balance between the total amount of monetary remunerationand non-monetary remuneration, as well as a comparison
with the remuneration of other companies in the same
industry or companies of similar size.
The index for performance-linked remuneration is theordinary profit in the medium-term management plan of
the Company, in order to clarify the performance evaluationof each Director, taking into account a wide range offactors including changes in the business environment andrisks associated with the operation of equity method
affiliated companies. Of the monetary remuneration andnon-monetary remuneration, performance-linked
remuneration accounts for 0 to 25%, corresponding to thestatus of achievement of the medium-term management
plan by position, while non-monetary remunerationaccounts for 9 to 15%, by position.
The remuneration for Corporate Auditors isdetermined based on consultation among Corporate
Auditors.
The target for performance-linked remuneration for
the fiscal year under review was an ordinary profit of 5.4
billion yen, and the achieved result was 5.0 billion yen.

In principle, the Company shall delegate the Nomination
and Remuneration Committee, which is mainlycomposed of External Directors, to decide the individual
remuneration, etc. for Directors. The remuneration shallfollow a process that ensures the transparency andobjectivity of the procedures for determining officer
remuneration.
The remuneration shall be designed to be an incentive
linked to short-term performance, based on themedium-term management plan, and for the mediumto long-term enhancement of corporate value.
The amount of remuneration for each position shall notdeviate from that of other companies in the same
industry or companies with similar size, while
maintaining a level that can secure and maintainexcellent human resources.

Outline of Details in Policies
Remuneration for Directors consists of monetary
remuneration (fixed remuneration and performance-linked
remuneration) and non-monetary remuneration (stock
remuneration). The remuneration for External Directors
consists of fixed remuneration only. Based on the above
policies, monetary remuneration and non-monetary
remuneration are each calculated by comprehensively
considering factors such as position, the achievement rate
against performance targets, division evaluations, the market
environment, and social situations. The payment ratio foreach type of remuneration is determined by the Nomination
and Remuneration Committee, taking into consideration the

Reason for the Board of Directors (Nomination andRemuneration Committee) to have judged that the details
of individual remuneration, etc. for each Director for the
fiscal year under review is in line with the policies
The Nomination and Remuneration Committee makes
judgments by comparing the amount of remuneration foreach position with remuneration of other companies in thesame industry or companies of similar size.

(Reference) Formula for calculating individual remuneration for each Director and the composition ratio thereof
1. Fixed monetary remuneration and non-monetary remuneration
Remuneration is set for each position based on a median of officer remuneration survey data from an external research institution,
which takes into account the size of listed and unlisted companies (sales, number of employees, market capitalization, etc.).
2. Performance-linked monetary remuneration
The following formula is used to calculate remuneration with the ordinary profit in the medium-term management plan of theCompany as an indicator.
(Formula) Performance-linked monetary remuneration*1 = Base amount + allocation amount: (actual ordinary profit − (ordinary profit in themedium-term management plan + 100 million yen))*2*3 × allocation ratio by position × evaluation coefficient*1 The maximum of the performance-linked monetary remuneration is 150% of the base amount.
*2 The total allocation to Directors and Executive Officers is 3.5% of the difference between actual ordinary profit and ordinary profit in the medium-term management plan + 100 million yen.
The allocation amount for Directors for the fiscal year ended March 31, 2020 is 1.7% of the difference stated above.
*3 Performance-linked monetary remuneration is not paid if actual ordinary profit is less than 80% of ordinary profit in the medium-term management plan + 100 million yen.

3. Composition of remuneration
The composition of individual remuneration by position is as shown in the following table (rounded down to the nearest decimal place).
Position

Actual ordinary profit < (ordinary profit in the medium-term
Actual ordinary profit = ordinary profit in
Allocation amount ≤ base amount × 150%
management plan + 100 million yen) × 80%
the medium-term management plan + 100 million yen
Performance-linked Non-monetary
Fixed
Performance-linked Non-monetary
Fixed
Performance-linked Non-monetary
Fixed
remuneration
remuneration remuneration
remuneration
remuneration remuneration
remuneration
remuneration
remuneration

Representative Director and Chairman

84%

0%

15%

69%

18%

12%

63%

25%

11%

Representative Director and President

84%

0%

15%

69%

18%

12%

63%

25%

11%

Director, Senior Managing Officer

87%

0%

12%

73%

15%

10%

68%

21%

9%

Director, Managing Executive Officer

87%

0%

12%

73%

15%

10%

68%

21%

10%

Integrated Report 2022

46

Strengthening the Foundation for Value Creation

About FEED ONE
P01-08

Management Structure
Akio Ishizuka External Director

April
April

December 2001 Presiding Judge, Fukuoka High Court
December 2004 Chief Judge, Niigata Family Court
April
2007 Part-time Lecturer, Dokkyo Law School,
Dokkyo University
July
2007 Registered as a lawyer with Saitama Bar Association
April
2008 Visiting Professor, Dokkyo Law School,
Dokkyo University
June 2011 External Auditor, Nippon Formula Feed Mfg. Co., Ltd.
April
2015 Part-time Lecturer, Dokkyo Law School, Dokkyo University
June 2015 External Director, the Company

Director
Hidehiro Shoji Representativeand President
April1988 Joined Mitsui & Co., Ltd.
August 2007 General Manager, Crude Sugar Office, Carbohydrate
Fermentation Division, Food & Retail Business Unit
April
2013 General Manager, Carbohydrate Fermentation Division,
Food Business Unit
June 2015 General Manager, Grain Logistics Division,
Food Business Unit
April
2017 General Manager, Grain & Feed Division, Food Business Unit
April
2018 General Manager of Planning & Administrative Division (Food & Services)
April
2020 Senior Executive Officer; General Manager, Corporate Planning & Strategy
Division, the Company
April
2021 Managing Executive Officer; General Manager, Corporate Planning & Strategy
Division and jointly in charge of Aquatic Feed Division
June 2022 Representative Director and President

Naoki Hatanaka Director
April1981 Joined Nippon Formula Feed Mfg. Co., Ltd.
January 2004 General Manager, Sales Department, Kanto Branch
April
2010 Executive Officer
June 2012 DirectorJuly2013 Managing Director; General Manager,
Feed Business Unit
October 2014 Director, the Company
October 2015 Director, Managing Executive Officer
April2016 Director, Senior Managing Officer
April2019 Director, Senior Managing Officer; General Manager, Animal Feed Business Unit
and in charge of Research & Development Center

Yukihiro Arakida Director
April1984 Joined Kyodo Shiryo Co., Ltd.
April
2008 General Manager, Kansai Branch
April
2010 Executive Officer
October 2014 Executive Officer, the Company
April2017 Senior Executive Officer
June 2018 Director, Senior Executive Officer
April2019 Director, Managing Executive Officer; General Manager, Food Service Unit

Yoshimasa Umemura Director
April
June

1981 Joined Nippon Formula Feed Mfg. Co., Ltd.
2004 General Manager, Kansai Sales Department,
Chubu and West Japan Branch
April2011 Executive Officer
June 2013 Director; General Manager, Administrative Unit;
General Manager, Finance & Accounting Division
October 2015 Senior Executive Officer, the Company
April
2018 Managing Executive Officer
April2022 Managing Executive Officer; General Manager, Administrative Unit and in chargeof Aquatic Feed Division
June 2022 Director, Managing Executive Officer; General Manager, Administrative Unit and in
charge of Aquatic Feed Division

47

FEED ONE CO., LTD. Integrated Report 2022

Strengthening the Foundation
for Value Creation

P09-18

P19-54

Data Section
P55-64External Directors in Conversation

Director
Takashi Yamauchi Representativeand Chairman
1980 Joined Mitsui & Co., Ltd.
1998 Head, Feedstuff & Grain Group, Feedstuff &Livestock Division, Food Business Unit
October 2001 General Manager, Feedstuff & Grain Department,
Feedstuff & Livestock Division, Food Business Unit
April
2006 General Manager, Feedstuff & Livestock Division,
Food & Retail Business Unit
June 2006 Director, Nippon Formula Feed Mfg. Co., Ltd.
March 2008 General Manager, Food & Retail Planning & Administrative Division, Food & Retail
Business Unit, Mitsui & Co., Ltd.
April
2009 Deputy COO (Chief Operating Officer), Food & Retail Business Unit
April
2012 Deputy COO (Chief Operating Officer), Food Business Unit
June 2012 Representative Director and President, Nippon Formula Feed Mfg. Co., Ltd.
October 2014 Representative Director and President, the Company
June 2022 Representative Director and Chairman

What FEED ONE
Aims to Achieve

Kikue Kubota External Director
June 1972 Research Associate, Faculty of Education, Saitama University
October 1982 Lecturer, Faculty of Home Economics, Ochanomizu University
April1999 Professor, Faculty of Human Life and Environmental Sciences
April
2005 Trustee, Vice President
April2013 Professor Emeritus, Ochanomizu University
Professor, Nodai Research Institute, Tokyo Universityof Agriculture
Visiting Professor, Kanagawa Institute of Technology
April2016 Auditor (part-time), Tokyo University of Marine Science and Technology
June 2019 External Director, the Company
July2019 Auditor (part-time), Tokyo University of Agriculture

Keizo Goto External Director
April1973 Joined the Ministry of FinanceJuly
1998 Director, Kanto Shinetsu National Tax Tribunal
August 1998 Regional Commissioner, Sendai Regional Taxation Bureau
July1999 Regional Commissioner, Nagoya Regional Taxation Bureau
July
2000 Deputy Director-GeneralJuly
2001 Deputy General Manager, National Tax Tribunal
July
2002 Trustee, The Open University of Japan Foundation
June 2005 Full-time Auditor, Japan Freight Railway Company
July
2008 Senior Managing Director, The Financial Futures Association of Japan
April
2014 Designated Lecturer (Designated Professor), Graduate School of Economics,
Rikkyo University
June 2020 External Director, the Company

Osamu Watanabe External Director
April1994 Joined Mitsui & Co., Ltd.
December 2006 Deputy General Manager, Produce & Provisions Division,
Kuala Lumpur Branch, Mitsui & Co. (Asia Pacific) Pte. Ltd.
July
2012 Chief, Dongyangguang Business Promotion Office,Metal Business Department,
Mineral & Metal Resources Business Unit, Mitsui & Co., Ltd.
January 2014 Chief, Multigrain Promotion Office, Grain Business Second Department,
Food Business Unit
April
2017 General Manager, Overseas Sales Department, Kadoya Sesame Mills IncorporatedJuly2019 Corporate Officer and General Manager, Overseas Sales Department
August 2020 General Manager, Food and Retail Business Division, Mitsui & Co. (Malaysia) Sdn Bhd
April
2021 General Manager, Fats and Oils and Staple Food Business Department,
Food Business Unit, Mitsui & Co., Ltd.
June 2021 External Director, the Company

Takao Tsuji External Director
April
June
March
June
June
June
May
April
April
April
June
July
June

1973 Joined Nissho Iwai Corporation (current Sojitz Corporation)
1999 Director, NISSHO ELECTRONICS CORPORATION
2001 Managing Director
2002 President and Representative Director
2009 Chairman of the Board of Directors
2013 External Director, JVCKENWOOD Corporation2014 President, Representative Director of the Board, COO, CIO, CRO
2016 President, Representative Director of the Board, CEO2018 Representative Director of the Board, Chairman & CEO
2019 Representative Director of the Board, Chairman
2019 Outside Director, Dexerials Corporation
2021 Special Advisor, JVCKENWOOD Corporation
2022 External Director, the Company

Akio Ishizuka

Takao Tsuji

External Director

External Director

We will get closely involved in
FEED ONE’s transformation, providing support andraising the effectiveness of governance.
An External Perspective on Changes in the Board of Directors
Ishizuka: Seven years have passed since I was
appointed as External Director, and there has been a
succession of changes during this period, including
revisions to the systems surrounding corporate
governance. In particular, companies are increasingly
expected to enhance management transparency andgovernance effectiveness.
Within this environment, the Company has worked toclear all the conditions that are required of it by society,including complying with all the principles of Japan’s
Corporate Governance Code. It has also established astructure for the Board of Directors in which five of its 10

members are External Directors, including welcoming Ms.
Kubota onboard as its first female External Director in2019 and then Mr. Tsuji this year. I feel great changes
have been made in terms of ensuring diversity andmaking discussions more dynamic.
Tsuji: Mr. Ishizuka was appointed at a time whenchanges regarding corporate governance were at theirpeak, and I think it must have been challenging toaddress such a wide variety of issues.
My previous positions were in the management oflisted companies and my most recent experience has
been working as a manager to make the monitoring

Integrated Report 2022

48

Strengthening the Foundation for Value Creation

About FEED ONE
P01-08functions of external directors and external corporate
auditors more effective. My impression of the Company’s
Board of Directors and Executive Committee so far is thatthe atmosphere is extremely good. There are no barriers
between inside and outside members of the Company
leading to dynamic exchanges of opinions between
participants.
However, in general, I feel that recent corporate
governance tends to focus more on establishing an
outward appearance, with not enough effort put intoenriching its core content. As External Directors, we need
to be visiting workplaces in person more often tounderstand the actual management situation, while themanagement side should be properly receptive to theopinions of External Directors. There are not many
companies where this is true. I want to actively contributeto enhancing the effectiveness of governance as amember of the Board of Directors.
Ishizuka: In order to function properly and fulfill our roleof providing an external perspective, external directors
need to receive the full support of their company, such asreceiving information. In my opinion, the Company’s
support for its External Directors has been thoroughly
enhanced in recent years. When I was initially appointed,
all we received was a lecture held before Board of
Directors meetings. Following that, we were given theopportunity to attend monthly meetings of the Executive
Committee and now, we are able to participate in various
internal online meetings, including meetings of theGeneral Managers of business divisions and strategy
meetings. This has vastly increased the volume of

information we receive and deepened our understandingof the Company’s business.
Unfortunately, opportunities to visit actual workplaces
have been curtailed by the COVID-19 pandemic, but
before the pandemic, I was able to tour all of our factories
and branch offices in various regions by accompanying
members of the Board of Corporate Auditors. I feel the
Company has responded appropriately to this proactive
information gathering by External Directors.
Tsuji: That’s true. The approach taken by the external
directors receiving support from a company should also
be examined. Inspections of overseas business locations
pose problems in terms of scheduling and language, andit also requires a certain amount of preparation by thecompany, but there is no substitute for seeing the actual
situation so these visits have a huge significance.
Ishizuka: One example I would like to raise is theNomination and Remuneration Committee, particularly
regarding the recent change of President. While thecommittee traditionally carried out substantial discussion
based on its consultation and reporting processes, theirmain role was to approve matters that had already been
decided and there was a lack of information related tohuman resources. This inevitably made it difficult toprovide a differing opinion from an external perspective.
As a challenge going forward, I think that if External
Directors can be more proactive in getting closer toworkplaces and more fully communicating with leadersand core personnel, then it would lead to a better
understanding of human resources information and makenomination and remuneration functions more effective.

Discussion by the Board of Directors and the Medium-Term Management Plan
Ishizuka: Regarding the topics of discussion that occupied
a particularly large amount of the Board of Directors’ time in
FY2021, the first one was verification as to whether the large
scale investments in the Kitakyushu Animal Feed Factory,
Kitakyushu Aquatic Feed Factory, and the group company
Shibushi Shiryo Co., Ltd. were producing results. Next waschecking progress on the introduction of core systems,
which was also a large investment. Another point of
discussion was the significance of continuing Pacific bluefin
tuna aquaculture, which needs to be verified in terms of
economic feasibility, as well as its issues. These were thethree biggest topics covered.
Other themes discussed included ways of showcasing
the Company, such as the Integrated Report, establishinga compliance framework to deal with issues includingharassment response, and the handling of ESG
management and support for the TCFD.

49

FEED ONE CO., LTD. Integrated Report 2022

Tsuji: I recently accompanied you on an observation of
the Pacific bluefin tuna aquaculture business. It was
extremely educational. While I understand its economic
feasibility is an issue, the achievement of fully-farmed
Pacific bluefin tuna is the result of around 30 years of
research that started in 1986, so I personally feel that
deciding whether to restructure the business based solely
on numbers would be a mistake. How long the Company
can keep supporting operations is always a key point
when launching a business in a new field, so for the
Pacific bluefin tuna aquaculture business, I think we needto once again establish a thorough plan, considering how
it can grow within the business environment of the near
future and how to get it generating profit.
Within the technologies the Company has cultivated
to date, there are technologies that might not be new tothe feed and aquaculture industries, but that we may beable to leverage to generate innovation by applying themin other fields. I would like us to work on strengthening
our creative abilities in order to secure new growthpotential.
Ishizuka: On the other hand, regarding medium-term
management plans, during the formulation of the Third
Medium-Term Management Plan, I participated as anExternal Director not only in the discussions between
Directors, but also in the process of considering thecontent of the plan based on the business plans preparedby each division. When we were confirming progress on
the plan during its first year, the understanding I gained
from participating in the plan’s formulation proved
extremely useful.
However, recently soaring raw material prices have led
to steep rises in the amount we are paying to suppliers,
so securing the funding needed to maintain stable
operations has become a new topic of discussion. I am
unfamiliar with corporate finance, so I am learning suchthings for the first time. Over the next two years, I intend
to get a deeper understanding of the knowledge needed

What FEED ONE
Aims to Achieve

Strengthening the Foundation
for Value Creation

P09-18

P19-54

Data Section
P55-64to oversee the implementation of the Medium-Term
Management Plan from an outside perspective.
Mr. Tsuji, what perspective do you plan to take tomonitor the implementation of the plan going forward?
Tsuji: I think the management plans of many companies
are just stating aspirations. This has resulted in a low rateof achievement of medium-term management plansamong listed companies. To ensure that a plan’s targets
are not just left as aspirations and that they are achieved
no matter what, it is necessary to break the plan down toa business location level by creating thorough problem
and solution trees mapping out what is needed to meeteach objective, as well as a deadline list clarifying who is
responsible for each task, and by when and to what
extent it needs to be done. It is also crucial to create aframework for management on a daily, weekly, monthly,and quarterly basis.
I plan to focus on how the Company is reviewing andmanaging progress on the Medium-Term Management
Plan, and to provide advice when necessary.

Corporate Governance Challenges
Ishizuka: This touches on the topic discussed previously,
but the FY2021 evaluation of the effectiveness of theBoard of Directors also brought up the opinion that theprovision of information by the Company to External
Directors and the approach by External Directors tofinding out the actual situation at the Company were bothstill lacking. While I think this has largely improved due tothings like participation in online meetings, going forward,
we should make effort to visit workplaces in person evenmore often.
There has also been consideration of occasionally
holding extraordinary meetings of the Board of Directors
on specific subjects to secure more time for discussion.
I think this is a necessary step for enhancing Board
discussions and making them more substantial.
Tsuji: I have also experienced Board of Directors
meetings where certain topics were discussed in too
much detail, meaning that there was not enough time to
discuss more important issues. It is worth considering
delegating authority to workplaces and the people
responsible for execution to make discussion topics moreconcise.
What I question about corporate governance is thefact that the role of external directors is defined asproviding oversight and supervision of inside directors
and that a governance structure has been designed
based on this relationship. I think that external directors

should also be evaluated by a third party and there needs
to be a limit to their term of service.
As External Directors, there are various ways that we
can contribute to the Company’s activities for building
relationships with stakeholders, such as attending
meetings with institutional investors and participating inefforts to communicate with local communities. Goingforward, I think we have to be more proactive in doing
this.
Ishizuka: I used to work in the legal profession, where
the thinking is a little removed from that of companies that
pursue profit, so I feel that I am not completely immersedin this type of business world. Therefore, I hope I canleverage my legal knowledge to be useful to the Company
as an External Director.
Amid greater demand for addressing diversity, I willcontinue to contribute to raising the Company’s corporate
value as someone who can examine management from adifferent angle than conventional corporate thinking.

Integrated Report 2022

50

Strengthening the Foundation for Value Creation

About FEED ONE
P01-08What FEED ONE
Aims to Achieve

Strengthening the Foundation
for Value Creation

P09-18

P19-54

Data Section
P55-64

Risk Management
Business Continuity Plan

The Group considers factors hindering the achievement of management and business objectives (medium-term
management plans, business plans, etc.) to be risks, and implements measures to prevent those risks fromThe Group has developed a business continuity plan
this may affect our normal business operations as well as(BCP) at each business location including feed
the supply of the Group’s formula feed and food
manufacturing factories, to prepare for the events that
products. Among others, if this happens at a feed factory,
may have a material impact on the corporate
feed manufacturing may have to be suspended for the
management (hereinafter, the “managerial crisis event”)
time being. So as a measure to prevent the spread andsuch as large scale disasters, contingencies, and spread
contraction of a disease, we have developed the actionof infectious diseases.
policy and employees’ action guidelines, and promoted
The managerial crisis events are handled by the Crisis
remote working and staggered commuting. Further, we
Response Committee chaired by Representative Director
have reviewed the existing BCP and built a system
and President, and such crisis response comprises an
responsive to such circumstances to minimize the impact.
initial response plan, a crisis response plan, andOverview of BCP
a BCP. The initial response plan addresses suchmatters as emergency actions to be taken
Disaster
Initial response plan
immediately after the outbreak of crisis, securing
Evacuation
Safety confirmationof personal safety, emergency evacuation andFirst aid to the injured and fire fighting
rescue, safety confirmation, initial information
Initial information gathering
Procurement of goods
gathering and prevention of secondary damage.
The crisis response plan covers the procedures
Crisis response planfor crisis response measures to be taken by theEstablishment ofInformation gathering activity
the emergency
Information dissemination activity
Company from the recognition to the end of aheadquarters
Logistics support
crisis. The BCP outlines the actions to be taken
Decision on BCP policy
Invoke a BCP
for business continuity and recovery. We verify
Business continuity plan
the effectiveness of the BCP every year by
Continuation of operations with alternative means, reduction or suspension of operations
conducting a desktop exercise.
Business recovery activity
Decision to terminate BCP
If an employee is infected as a result of the
spread of an infectious disease like COVID-19,

materializing. As part of our crisis management, we have formulated a business continuity plan (BCP) to minimize
damage in the event of a large-scale disaster and to ensure that we can continue our business.

Enterprise Risk Management (ERM) System
The Group manages risks at 57 locations nationwide
under the same standards by establishing the enterpriserisk management (ERM) regulations and the companywide RM meetings to operate the ERM system.
The plan, progress and results of the ERM activities at
each business location are reported to the Executive
Committee twice a year. Given the feed back from the
Executive Committee, the activities will be further
invigorated and improved across the Group.

Executive Committee
ReportFeedback

Company-wide RM meetings
Secretariat

Protection of human life Continuation of business

Chairperson: Representative Director and President

Report

RM Promotion members (at each business location)

Risk Management Activities
Each business location of the Group has established therisk management promotion team, which engages inminimizing risk and improving operational efficiency
across the Group by implementing the PDCA cycle ofidentifying risks, analyzing/assessing risks, developing
and implementing risk response measures, andmonitoring/improving the activities throughout the year.

Main activities led by company-wide RM meetings
Items
Self-check(self-assessment by eachbusiness location)

Regular meetings

Report to the Executive
Committee(through company-wide RM meetings,
and interim report meetings)

Training

Activities

Identify risks

Immediately
after crisis

Frequency

Identify, analyze and assess risks
Develop risk response measures

Annually

Confirm the annual activity plan
Confirm the status of company-wide priority risk
responses
Confirm the monitoring status
Share information to enhance risk awareness

Quarterly

Confirm the annual activity plan andcompany-wide priority risks
Report on progress of activities
Report on results of annual activities

Biannually

New employee training
Facilitator training

Multipletimes a year

Monitoring/improvement

Analyze risks

Risk description

Main response measures

Risk of external factors including management environment

An example of risk mapping based on risk analysisHigh

A decrease in sales volume
resulting from the outbreak of adomestic animal infectious disease
Impact5
Likelihood 4

Suspended operations
due to a natural disaster

ImpactImpactLikelihood

Risk of material
price fluctuations

The profit margin may decline due to inability to pass on the increased material cost to a feed price
Changes in the reserve for the Formula Feed Price Stabilization System, which are recorded as selling,
general and administrative expenses, may have an impact on the Group’s operating results.

Strive to strengthen relationship with business
partners and diversify producers while
maintaining quality

Risk of diseases,
etc. of livestockand farmed fish

An outbreak of a disease or deterioration of breeding environment may force a mass disposal and sales
suspension of products.
An outbreak of a disease at a formula feed buyer may cause a negative impact on the manufacturing andsale of formula feed.
Deterioration of management conditions of a formula feed buyer may cause us to have difficulties incollecting debt, or force us to fulfill guarantee obligations under a financial guarantee contract.

Have our veterinarian team strengthen aquarantine system to prevent our feed
manufacturing factories and farms, which are
our consolidated subsidiaries, from becoming asource of infection or transmission.

Risk of disease,etc. among
employees

The infection of employees due to the spread of an infectious disease may affect our normal business
operations as well as the supply of the Group’s products and foods.

Develop the action policy and guidelines for
employees’ action, and promote active use of
remote working and staggered commuting, etc.
Develop and review a BCP

Risk of climatechangeClimate change or climate change-induced natural disasters may cause a hike in material prices or damage
to feed manufacturing factories.
Levying of a carbon tax to mitigate climate change

Develop and implement measures in response to
specific climate-related risks by analyzing andassessing the risk factors and financial impact.
Develop products and services and enhance
corporate value by promoting climate change
measures.

52
A decline in profit due torising freight costs

Weak business activity
due to COVID-19 or otherinfectious diseases
Impact2
Likelihood 4

Low

FEED ONE CO., LTD. Integrated Report 2022

Business Risks

Risk item

Assess risks

Risk Identification and Definition of Company-wide Priority Risks

51

Up to several weeks/months

We recognize that the following items may have a major impact on the Group’s business: Details of risks are also describedin our Annual Securities Report (filed on June 24, 2022, https://pdf.irpocket.com/C2060/mCOP/YO8J/xzf6.pdf).
Respond to risks

The materiality of the risks identified at the annual
self-checks are assessed quantitatively and qualitatively
based on their impact and likelihood. We then understandand manage the risks of each location by plotting themon the risk map. Among the risks identified at eachlocation, those determined to be material to the Company
and of a company-wide nature are defined as the“company-wide priority risks,” against which supervisoryand other relevant departments take measures.

Up to 3 days

ImpactLikelihood

Likelihood

3
5

High

Risk of internal factors including management resources
Risk at feed
manufacturing
factories

In the event of a factory being damaged by a disaster, feed manufacturing may become difficult until its
recovery, depending on unforeseeable causes and the scale of disaster.
A large-scale earthquake may cause buildings to collapse or machinery and equipment to break down.
Tsunami flooding and subsequent damage to buildings, machinery and equipment may cause difficulty infeed manufacturing until their recovery.
A long absence of an employee infected with a disease may cause difficulty in manufacturing operations.

Promote job rotation, build a structure to confirm
the safety of employees, and conduct anemergency drill.
Develop and review a BCP

Integrated Report 2022

52

Strengthening the Foundation for Value Creation

About FEED ONE
P01-08

Quality Assurance
Quality assurance system

Raw materials

As a part of the food chain linking farm to table, we will provide safe, secure, andhigh-quality products and services to meet the expectation and trust of our customers.

DesignSafety,quality, andlaws andregulations

Production andprocessing

production farms, andconfirming the monitoring
results related to safety.
There is a growing need also in Japan to acquirecertifications such as SQF (Safe Quality Food), ASC(Aquaculture Stewardship Council (for aquaculture thathas been independently assessed and certified as being
environmentally and socially responsible)), and MEL(Marine Eco-Label), and we will further manage material
data properly to gain trust from customers.
Quality andregulatory check

On-siteconfirmation

Acceptance inspection
and monitoring

Conducting a Supplier Audit
ensure that the materials and products we receive satisfy
our quality standards.

Design Control
For the labelling and advertising materials, we check
whether the description and labelling of both the feeds
and food products comply with the laws and regulations,to provide correct information to customers.

Initiatives to Provide High-quality Feed and Food Products, and Certifications on Food Safety and Process Control
We are working to improve our product and service
quality by building and operating the in-house quality
management system. Our feed factories and related foodcompanies have been certified as FSMS (Food Safety
Management System) to ensure product safety. In
addition to raw material management and hygiene
control, we respond to managing food safety by

P19-54

P55-64

1. Conform to laws and regulations, corporate ethics, andsocial norms, and strive to maintain social orders
2. Identify problems from client and consumer
perspectives, and focus on solving them to enhance
corporate value

Compliance Framework

Sale

Data Management of Raw Materials

We have a systemized process to check regulatorycompliance, let alone a design control, to ensure feed
performance.

P09-18

Data Section

Basic Policy for Compliance
The Company has defined the following “Compliance”
actions based on the “Employee Code of Conduct” inorder to enhance its corporate value while pursuing solidand efficient corporate management.

Quality Philosophy

We will conduct a periodic audit to the suppliers of feeds/
feed ingredients as well as food processing factories, toStrengthening the Foundation
for Value Creation

Compliance

By ensuring quality assurance covering from the manufacturing and sale offeeds to the processing and sale of livestock and aquatic products, we
contribute to sustainable development of the livestock and fishery industry.

We ensure safety, quality and regulatory compliance forraw materials used for feeds by confirming the documents
required to be filed, specifications, manufacturing flows,
and regulations to be complied with. Further, we conduct
an in-house monitoring of hazardous substances. If raw
materials of high risk are identified, we will take measures
such as notifying so to the relevant raw material suppliers
and restricting its use in feeds. We review the labeling on
feeds to be supplied in response to the new rules for the
genetically modified organization (GMO) labelling system,and share such information accordingly.
We ensure a system to supply safe raw materials also
at affiliated food companies, by managing breeding at

What FEED ONE
Aims to Achieve

conducting a hazard analysis for each manufacturing
process.
To ensure safety of feeds, our feed factories are also
certified under the Guidelines of Good Manufacturing
Practice (GMP) for feed and antibacterials set by Foodand Agricultural Materials Inspection Center (FAMIC), an
incorporated administrative agency of Japan.

The Company regularly holds meetings of the“Compliance Committee,” which was established by the
Representative Director and President, and investigatesand deliberates on various issues related to the Group’s
compliance.

In addition, the Company conducts compliancetrainings for Directors, Executive Officers, employees, andother staff to increase compliance awareness, andintroduced the internal reporting system, which has an
outside attorney, an External Corporate Auditor, and theInternal Auditing Division as contact points.

Internal Control Basic Policy
The Company has set forth the following basic policies toensure compliance with laws and regulations and the
Articles of Incorporation by Directors, Executive Officers,
and employees in their executing duties:(1) In accordance with laws and regulations, the Articles
of Incorporation, resolutions at the General Meeting of
Shareholders, and internal regulations, the Board of
Directors of the Group shall decide on importantmatters related to management, and supervise theexecution of duties by Directors.
(2) To ensure that the Directors, Executive Officers, andemployees of the Group comply with laws andregulations and promote appropriate corporate
activities, the Group shall make them aware of the“FEED ONE Group Employee Code of Conduct.”(3) Corporate Auditors shall audit the execution of duties
by Directors, in cooperation with the Accounting
Auditor and the Internal Auditing Division.
(4) The Company shall ensure that the Internal Reporting
System Regulations are recognized within the Groupand periodically report the status of reporting eachyear to the Board of Directors of the Company. The
Board of Directors shall conduct follow-up activities onsuch reports and take necessary measures to improvethe effectiveness of the internal reporting system. In
addition, the Board of Directors shall evaluate theinternal reporting system and continuously improve thesystem.

(5) The Board of Directors of the Company shall educate,train, and familiarize the Group regarding compliance,
including the internal reporting system, and shallassign and train personnel in charge of compliance
who possess the necessary skills and aptitude.
(6) The Compliance Committee shall decide on matters
including action policies, by investigating anddeliberating on various issues related to the Group’s
compliance, and inform and instruct the Group,
accordingly.
(7) The Group will not engage in any relationship with antisocial forces that threaten civil society and will neverconduct anti-social transactions with such forces. In
addition, the entire company shall take a resolutestance against such anti-social forces by closelycollaborating with the police and other external
specialized institutions.

Company Structure to Ensure Quality
The Quality Assurance Committee chaired byRepresentative Director and President will meet monthly
to take measures for ensuring quality through reportingand discussion on information provided by customers
and quality data.
In FY2021, we discontinued the ISO 9001
certifications of the head office, branch offices, and

53

FEED ONE CO., LTD. Integrated Report 2022

research & development centers, and started selfverification based on our quality management systemregulations. We are promoting measures for regulatorycompliance and business improvement by regularly
holding a briefing session on the Feed Safety Law, etc.,
and training sessions on ISO.

Integrated Report 2022

54

Data Section

About FEED ONE
P01-08What FEED ONE
Aims to Achieve

Strengthening the Foundation
for Value Creation

P09-18

P19-54

Data Section
P55-64

Financial Data for the Last 7 Years
Fiscal year ended March 31, 2016 Fiscal year ended March 31, 2017 Fiscal year ended March 31, 2018 Fiscal year ended March 31, 2019 Fiscal year ended March 31, 2020 Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022

Operating results (Million yen)Sales

228,903207,920

207,562

212,886

215,050

214,120

243,202

Cost of sales

204,769

182,917

183,629

189,757

191,401

192,163

220,490

Selling, general and administrative expenses

20,641

20,171

20,22519,005

18,234

16,284

18,418Operating profit

3,492

4,831

3,706

4,123

5,414

5,672

4,293

Ordinary profit

3,734

5,131

4,103

4,466

5,737

6,081

5,067

Profit attributable to owners of parent

2,308

3,937

2,971

4,657

3,842

4,438

3,659

Total assets

82,68879,90487,082

88,93490,88099,251

108,504

Net assets

27,29830,96833,30436,41338,906

42,79444,840Capital expenditures

3,778

5,033

6,448

3,811

7,934

8,120

2,659

Depreciation

2,096

1,855

2,370

2,395

2,513

3,157

3,198

Net cash provided by (used in) operating activities

6,056

11,777

9,199

4,842

1,127

7,737

2,739

Net cash provided by (used in) investing activities(2,017)(891)(7,454)(158)(7,475)(5,989)(952)

Net cash provided by (used in) financing activities(4,397)(10,373)(1,330)(4,937)6,512(1,550)(1,173)

Cash and cash equivalents at end of period

1,819

2,333

2,748

2,492

2,657

2,830

3,444

Basic earnings per share*1

11.71

19.98

15.08

23.66

97.64

112.78

94.65

Dividend per share

4.00

4.50

4.50

4.50

5.00

136.84155.20166.86182.90977.82

1,074.63

1,161.40

Operating profit to sales

1.5

2.3

1.8

1.9

2.5

2.6

1.8

Profit to sales

1.0

1.9

1.4

2.2

1.8

2.1

1.5

Return on equity (ROE)

8.7

13.7

9.4

13.5

10.3

11.0

8.5

Return on assets (ROA)

4.3

6.3

4.9

5.1

6.4

6.4

4.9

Equity ratio

32.6

38.3

37.8

40.5

42.3

42.6

40.8

Per share information (Yen)Net assets per share*1

15.00*2

25.00

Financial indicators (%)*1. Effective October 1, 2020, the Company carried out a consolidation of shares in which five of the Company’s common shares were consolidated into one share. Basic earnings per
share and net assets per share are calculated on the assumption that the share consolidation was conducted at the beginning of the fiscal year ended March 31, 2020.
*2. The dividend of 15.00 yen per share for the fiscal year ended March 31, 2021 is the sum of an interim dividend of 2.50 yen and a year-end dividend of 12.50 yen. Effective October 1,
2020, the Company carried out a consolidation of shares in which five of the Company’s common shares were consolidated into one share. As a result, the interim dividend is theamount before the share consolidation (12.50 yen if the share consolidation is taken into consideration), and the year-end dividend of 12.50 yen is the amount after the shareconsolidation (the annual dividend per share is 25.00 yen if the share consolidation is taken into account).
*3. The Company has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29; revised on March 31, 2020) and its implementation guidance since thebeginning of the fiscal year ended March 31, 2022. The key management indicators, etc. for the fiscal year ended March 31, 2022 are the figures that reflect the application of theaccounting standard and its implementation guidance.

55

FEED ONE CO., LTD. Integrated Report 2022

Integrated Report 2022

56

Data Section

About FEED ONE
P01-08What FEED ONE
Aims to Achieve

Strengthening the Foundation
for Value Creation

P09-18

P19-54

Data Section
P55-64

Financial Summary
Operating Results

Financial Position

During the fiscal year under review (from April 1, 2021 toMarch 31, 2022), the prices of many raw materials,
including corn, which is the primary raw material, havesoared to historical highs mainly due to the concerns overthe supply of grains following the Russia-Ukraine situationand other geopolitical risks, whose impacts include
increased demand for ethanol associated with a rise in
crude oil price as well as strong demand for grains. As aresult, formula feed prices have remained on the upward
trend and fund collection for the Formula Feed Price
Stabilization System was resumed. These havesignificantly impacted the Group’s performance.
The outlook for the number of new COVID-19 cases
and the emergence of its variants has remained uncertain.
A considerable amount of time would be required for
consumer spending and demand for dining out to returnto their pre-pandemic levels. However, we believe at thismoment that such impact on the Group will be minimal
because the market prices of livestock products haveremained high, supported primarily by solid demand forhome-cooked meals.
The Group formulated the Third Medium-Term
Management Plan for the three-year period from FY2021
to FY2023 targeting consolidated ordinary profit of 6.2
billion yen in the final year, while aiming to maximize its
profit centered on four businesses—the animal feedbusiness, the aquatic feed business, the food business,and the overseas businesses. The three-year period is aphase to put the finishing touches on businessintegration. To become a true leading company, we havesought to enhance the raw material procurement andproduction system, improve product quality and service,
and reduce costs.
During the fiscal year under review, the Group posted
sales of 243,202 million yen, up 29,081 million yen
year-on-year, due to increases in the sales price of animal
feed and the market prices of livestock products. The
increase in the sales price of animal feed is caused by therising prices of raw materials. The Group posted cost of
sales of 220,490 million yen, up 28,326 million yen
year-on-year.
During the fiscal year under review, selling, generaland administrative expenses increased 2,134 million yen
year-on-year to 18,418 million yen. This was mainly due
to the posting of 2,086 million yen following theresumption of the Formula Feed Price Stabilization
System reserving.
As a result, during the fiscal year under review, theGroup posted an operating profit of 4,293 million yen andan ordinary profit of 5,067 million yen, decreasing by
1,378 million yen and 1,014 million yen, respectively, fromthe previous fiscal year.

The Group mostly depends on imported raw materials,
such as corn, to manufacture and sell formula feed, which
is its main product. We therefore face the risk of large
fluctuations in raw material costs, mainly due to changing
crop yields affected by changes in crop planted areas
and weather in locations including the U.S.; risingconsumption in China; and changing ocean freight costs.
We therefore revise the sales price of animal feed
quarterly, but this factor may have a material impact on
the Group’s financial position and business results.
Total assets at the end of the fiscal year under review
increased 9,252 million yen compared to the end of theprevious fiscal year. This was mainly due to an increaseof 10,442 million yen in current assets primarily resulting
from an increase in notes and accounts receivable - tradefollowing the increased sales price of animal feed.
Total liabilities increased 7,206 million yen comparedto the end of the previous fiscal year. This was mainly due
to an increase of 7,834 million yen in current liabilities
resulting from an increase in notes and accounts payable- trade following the rise in the prices of raw materials,
and an increase in short-term borrowings to raise working
capital.

Net assets increased 2,045 million yen compared tothe end of the previous fiscal year. This was mainly due toan increase in retained earnings resulting from the postingof profit attributable to owners of parent, which waspartially offset by a decrease resulting from the purchaseand cancellation of treasury shares, the payment ofdividends, etc.

(Billion yen)
Figures in parentheses
indicate year-on-yearchangeIncrease in notes
and accounts
receivable - trade(+5.9)

Total assets

Liabilities andnet assets

108.5

108.5
(+9.2)(+9.2)

Increase in notes
and accounts payable- tradeCurrent assets

Total liabilities

65.3

Increase ininventories(+3.3), etc.

63.6(+7.2)(+10.4)(+5.3)

Increase in
short-term borrowings(+1.6)

Decrease inlong-term borrowings(−0.7), etc.

Decrease inmachinery, equipment
and vehicles(−0.5)

Decrease inlong-term loans
receivable(−0.3), etc.

Non-current
assetsNet assets

43.2(+2.0)

44.8(−1.1)

Increase inretained earnings(+2.6), etc.

Cash Flows(Billion yen)

Sales

Operating profit

Ordinary profit

Profit attributable to owners of parent

243.2
6.0

5.6

75.7%

year-onyear

2021.32022.3

4.4

83.3%

year-onyear

year-onyear

214.1 113.6%

2021.35.0

4.2

2022.32021.3

3.6

82.4%

year-onyear
2022.32021.32022.3

Note: The Company has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29; revised on March 31, 2020) and its implementation guidance since
the beginning of the fiscal year ended March 31, 2022. The key management indicators, etc. for the fiscal year ended March 31, 2022 are the figures that reflect the application of
the accounting standard and its implementation guidance.

Factors for changes in operating profit
Feed Business −1,026(Million yen)

5,672
Increase in sales
volume ofanimal feed

+163

Decrease in
Decrease in
Decrease insales volume
gross margin G&A expenses ofof aquatic feed of aquatic feed aquatic feed Other feed, etc.

Increase in grossmargin ofanimal feed

+1,329

Food Business −203−73

Increase in SG&A
expenses ofanimal feed*1

−83

+19

−113

Decrease inprofit ofFood Business*2−203

Other, etc.

−148

4,293
−1,378year-on-year−2,2692021.32022.3*1. Mainly due to an increase in reserve contributions to the Formula Feed Price Stabilization System: −2,079 million yen*2. A 5 million yen decrease in profit if we add subsidy income (+197 million yen year-on-year) received for pandemic relief measures on aquatic products and posted under
non-operating income

57

FEED ONE CO., LTD. Integrated Report 2022

The Group’s main financing needs are for operating
expenses to manufacture and sell formula feed in thefeed business; to nurture, purchase, and sell pigs, etc. in
the food business; and to purchase, partially process,and sell livestock and aquatic products, as well as
investing to build, renew, and streamline production
facilities, etc. Such financing needs are in principle
covered by the Group’s own funds and loans fromfinancial institutions.
Cash and cash equivalents (hereinafter, “cash”) at theend of the fiscal year under review was 3,444 million yen,
an increase of 614 million yen compared to the end of theprevious fiscal year.
Net cash provided by operating activities amounted to2,739 million yen (cash inflow of 7,737 million yen in theprevious fiscal year) because cash increased mainly due
to the recognition of profit before income taxes, partially
offset by a decrease in cash caused by increased
demand for working capital and the payment of income
taxes.
Net cash used in investing activities amounted to 952
million yen (cash outflow of 5,989 million yen in theprevious fiscal year) because cash decreased mainly due
to the purchase of property, plant and equipment andintangible assets, partially offset by an increase in cash

mainly due to income from subsidies for the opening of
the Kitakyushu Animal Feed Factory, proceeds fromcollection of loans receivable, and proceeds from sale ofinvestment securities. In the previous fiscal year, cash
decreased as we made capital expenditure for the
Kitakyushu Animal Feed Factory; however, we made nolarge capital expenditure in the fiscal year under review.
Net cash used in financing activities amounted to1,173 million yen (cash outflow of 1,550 million yen in theprevious fiscal year) because cash decreased mainly due
to the purchase of treasury shares and the payment ofdividends, partially offset by an increase in cash mainly
due to an increase in short-term borrowings to respondto demand for working capital.
(Billion yen)

Cash flows
from operating
activities

Cash and cash
equivalents at
beginning of period

2.8

+2.7

Cash flows
from investing
activities

Cash flows
from financing
activities Cash and cash
equivalents at−1.1
end of period

3.4

−0.9

2021.32022.3Integrated Report 2022

58

Data Section

About FEED ONE
P01-08What FEED ONE
Aims to Achieve

Strengthening the Foundation
for Value Creation

P09-18

P19-54

Data Section
P55-64

Consolidated Financial Statements
Consolidated Balance Sheets(Million yen)
As of March 31, 2021

As of March 31, 2022

Assets

As of March 31, 2021

As of March 31, 2022

Liabilities

Current assets

Current liabilities

Cash and deposits

2,893

3,500

Notes and accounts receivable - trade34,42140,359

Electronically recorded monetary claims - operating

1,896

2,427

Merchandise and finished goods

1,917

2,345

Raw materials and supplies

10,384

13,269

Animals

285

335

Other

3,111

3,100

(49)

(34)

54,86165,303

Allowance for doubtful accounts
Total current assets
Non-current assets

Notes and accounts payable - trade25,54430,903

Short-term borrowings

9,680

11,350132

128

Income taxes payable

1,137

441

Provision for bonuses

735

685

Other

4,957

6,513

Total current liabilities

42,18850,022

11,221

10,478

Lease liabilities

Non-current liabilities
Long-term borrowings

Property, plant and equipment
25,51925,521

Lease liabilities

762

759

Accumulated depreciation(12,042)(12,082)

Deferred tax liabilities

10

10

Buildings and structures, net

13,477

13,438Provision for share awards for directors (and other officers)

103

156

Machinery, equipment and vehicles

29,23930,322

Accumulated depreciation(16,462)(18,050)

2,099

2,194

Machinery, equipment and vehicles, net

12,776

12,271

Asset retirement obligations

5

3

Land

6,538

6,355

Other

64

38

Leased assets

1,199

1,046

Total non-current liabilities

14,26813,641

Accumulated depreciation

(385)

(227)

56,457

63,663

Leased assets, net

814

818

Construction in progress

258

45

2,202

2,211

(1,545)(1,627)

Share capital

10,00010,000656583

Capital surplus

10,4849,737

34,521

33,513Retained earnings

21,19723,882

Treasury shares

(122)

(271)

Other

363

530

41,55943,348

Total intangible assets

363

530

8,019

8,215

Valuation difference on available-for-sale securities

859

948

Long-term loans receivable

348

16

Deferred gains or losses on hedges

28

72

Distressed receivables

411

239

Foreign currency translation adjustment

(109)

(1)

Deferred tax assets

449

315

Remeasurements of defined benefit plans

(47)

(61)

Other

700

630

Total accumulated other comprehensive income

730

957

Allowance for doubtful accounts

(424)

(259)

Total investments and other assets

9,505

9,157

504

534

44,39043,200Total net assets

42,79444,84099,251

108,504

Total liabilities and net assets

99,251

108,504

Buildings and structures

Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets

Investment and other assets
Investment securities

Total non-current assets
Total assets

Retirement benefit liability

Total liabilities
Net assets
Shareholders’ equity

Total shareholders’ equity
Accumulated other comprehensive income

Non-controlling interests

Note: The Company has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29; revised on March 31, 2020) and its implementation guidance since the beginning of the
fiscal year ended March 31, 2022. The amounts for the fiscal year ended March 31, 2022 are those that reflect the application of the accounting standard and its implementation guidance.

59

FEED ONE CO., LTD. Integrated Report 2022

Integrated Report 2022

60

Data Section

About FEED ONE
P01-08What FEED ONE
Aims to Achieve

Strengthening the Foundation
for Value Creation

P09-18

P19-54

Data Section
P55-64

Consolidated Financial Statements
Consolidated Statements of Income(Million yen)

Consolidated Statements of Cash Flows

Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022
Sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity method
Stockpile storage revenue
Subsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Sales discounts
Opening and closing business cost
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Gain on sale of businesses
Subsidy income
Insurance claim income
Total extraordinary income
Extraordinary losses
Loss on sale of non-current assets
Loss on retirement of non-current assets
Loss on tax purpose reduction entry of non-current assets
Impairment losses
Loss on sale of investment securities
Loss on sale of shares of subsidiaries and associates
Loss on valuation of shares of subsidiaries and associates
Loss on abandonment of inventories
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

214,120
192,163
21,956
16,284
5,672

243,202220,490
22,712
18,418
4,293

17
151
17
140
164
194
685

14
138
109
138
379
188
969

99
31
94
51
276
6,081

94
35
38
28
195
5,067

117
32
21
535
—
706

6
45
—
196
18
266

16
90
26
42
106
5
8
18
315
6,472
1,950
21
1,972
4,500
61
4,438

25
59
12
143
—
—
2
—
243
5,090
1,317
83
1,401
3,689
29
3,659

Consolidated Statements of Comprehensive Income(Million yen)

Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities accounted for using equity method
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

4,500

3,689

857
2
(5)
21
874
5,375

88
44
(14)
107
226
3,915

5,313
61

3,885
29

(Million yen)
Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022

Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment losses
Share of loss (profit) of entities accounted for using equity method
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for retirement benefits for directors (and other officers)
Increase (decrease) in provision for share awards for directors (and other officers)
Interest and dividend income
Interest expenses
Loss (gain) on sale of investment securities
Loss (gain) on sale of shares of subsidiaries and associates
Loss on valuation of shares of subsidiaries and associates
Loss (gain) on sale of businesses
Loss (gain) on sale and retirement of non-current assets
Loss on tax purpose reduction entry of non-current assets
Subsidy income
Insurance claim income
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Other, net
Subtotal
Income taxes paid
Proceeds from insurance income
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment and intangible assets
Proceeds from sale of property, plant and equipment and intangible assets
Purchase of investment securities
Proceeds from sale of investment securities
Proceeds from sale of shares of subsidiaries and associates
Loan advances
Proceeds from collection of loans receivable
Proceeds from sale of businesses
Income from subsidies
Interest and dividends received
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Interest paid
Dividends paid
Repayments of lease liabilities
Proceeds from sale and leaseback transactions
Purchase of treasury shares
Proceeds from sale of treasury shares
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Decrease in cash and cash equivalents resulting from exclusion ofsubsidiaries from consolidation
Cash and cash equivalents at end of period

6,472
3,157
42
(17)
(24)
(17)
27
(45)
36
(168)
99
74
5
8
(21)
(10)
26
(535)
—
(2,868)(278)
5,198(1,305)9,857(2,120)
—
7,737

5,090
3,198
143
(109)
1
(49)
74
—
52
(153)
94
(45)
—
2
—
77
12
(196)
(18)
(6,483)(3,362)
5,358
1,058
4,747
(2,025)18
2,739(7,036)
219
(4)
663
12
(305)
293
15
35
180
(64)
(5,989)(2,623)
166
(20)
282
—
(200)
603
—
696
164
(21)
(952)

(6,705)
7,650(1,345)(98)(1,475)
(112)
543
(10)
3
(1,550)
197
2,657

1,740
1,145
(1,958)
(96)
(971)
(136)
—
(1,027)132(1,173)
614
2,830

(23)

—

2,830

3,444

Note: The Company has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29; revised on March 31, 2020) and its implementation guidance since the beginning of the
fiscal year ended March 31, 2022. The amounts for the fiscal year ended March 31, 2022 are those that reflect the application of the accounting standard and its implementation guidance.

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62

Data Section

About FEED ONE
P01-08Company Information
Company Profile (as of March 31, 2022)
Trade name:

FEED ONE CO., LTD.

Established:

October 1, 2014

Share capital:

10,000 million yen

Head office:2-23-2 Tsuruyacho, Kanagawa-ku,
Yokohama-shi, Kanagawa

Number of employees 932(consolidated):
Accounting
auditor:Deloitte Touche Tohmatsu LLC

Fiscal year-end: March 31
Principal
businesses of
the Group:

Production, processing, and sale offeeds; and purchase, production,
processing, and sale of livestock andaquatic products

Share Information
Directors and Corporate Auditors (as of June 24, 2022)
Representative Director
and Chairman

Takashi Yamauchi

Representative Director
and President

Hidehiro Shoji

Director

Naoki Hatanaka

Director

Yukihiro Arakida

Director

Yoshimasa Umemura (New)Director

(External) Akio Ishizuka

Director

(External) Kikue Kubota

Director

(External) Keizo Goto

Director

(External) Osamu Watanabe

Director

(External) Takao Tsuji

Toru Aoyama

Corporate Auditor (External) Naohiro Chikada(New)

Animal Feed Business Unit

Number of shareholders: 17,750 shareholders
Stock listing:Tokyo Stock Exchange, Prime Market(listed on April 4, 2022)

Securities code:

2060

Ordinary General Meeting Every Juneof Shareholders:(New)

Record date:

(New)
(New)

Animal Feed Division

Animal Feed Division branch offices

Hokkaido Division

Animal feed factories

Tohoku Division

Year-end dividend resolved at theOrdinary General Meeting of
Shareholders
March 31 every year
Interim dividend
September 30 every year
Public notices are posted on our
website. However, if public notices
cannot be posted on our website
for unavoidable reasons, they will begiven in the Nikkei newspaper.
Our website at:https://www.feed-one.co.jp/english/

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

Kanto Division

P res i de n t

C h ai r m a n

Board of Directors

Shareholders Meeting

Internal Auditing Division

Board of Corporate Auditors

Corporate Planning & Strategy DivisionP55-64

Number of shares held Ratio of(thousand shares) shares held (%)

Shareholder

Mitsui & Co., Ltd.
The Master Trust Bank of Japan, Ltd.
(Trust Account)
Daiwa Kogyo LLC
Custody Bank of Japan, Ltd.
(Trust Account)
THE KEIHIN CO., LTD.
Tokio Marine & Nichido Fire
Insurance Co., Ltd.
Asahi Mutual Life Insurance Company
The Bank of Yokohama, Ltd.
State Street Bank and Trust
Company 505223
Yonkyu Co., Ltd.

9,838

25.60

3,506

9.12

1,207

3.14

1,153

3.00

1,047

2.72

857

2.23

803
781

2.09
2.03

634

1.65

600

1.56

Notes: 1. The ratios of shares held are calculated after deducting treasury shares(40,990 shares).
2. 287,160 shares of the Company, held by the Custody Bank of Japan,
Ltd. (Trust Account) as trust assets for the “trust for share-based
remuneration for directors (and other officers),” are not included in thenumber of treasury shares.

Distribution of Shareholders
Financial institutions

Individuals/other

24.8%

24.8%

Chubu Division
Kansai Division

Production Management Division

Kitakyushu Division

Feedstuff Materials Division

Minamikyushu Division

Aquatic Feed Division branch offices

Foreigninvestors

Aquatic Feed Division

Aquatic Research Center

Foods & Retail Business DivisionCorporate Planning & Strategy Department

38,477,128shares
Financial
instruments
business operators

Other corporations

1.2%

40.3%

Trend of Share Price

Sustainability Promotion Department(Unit: thousand shares)

Overseas Business Department

Number of shares

8.9%

Aquatic feed factories

Food Service Unit

P19-54

Data Section

Major Shareholders

Total number of shares issued: 38,477,128 shares

Organizational Chart
https://www.feed-one.co.jp/english/company/about.html

P09-18

Total number of shares 100,000,000 sharesauthorized to be issued:

Method of public
notices:More detailed chart is available atStrengthening the Foundation
for Value Creation(as of March 31, 2022)

Status of Shares

Corporate Auditor (External) Eiichi Yano
Corporate Auditor

What FEED ONE
Aims to Achieve

Trading volume (left axis)

Share price (right axis)(Unit: JPY)

12,000

1,200

8,000

800

4,000

400

System Planning Department
Research & Development Center
Quality Assurance Division
Finance & Accounting Division
Administrative Unit

General Affairs Division
Human Resources Division

0

18/3

19/3

20/3

21/3

22/3

0

Note: Effective October 1, 2020, the Company carried out a consolidation of shares at a ratio of one share for every five common shares.

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Integrated Report 202264