COMANY Group
Integrated Repor t

2021

Empower all life by MA-zukuri

01

COMANY INC.

Integrated Report01For 60 year s since
its founding,What is a good "MA? "COMANY has been
thinking about thisquestion.

02

COMANY INC.

Integrated Report03

In the midst of this question,
we searched for answer s
in the name COMANY.

CO-MA-NYThe MA in the center of the company name represents our mission, "MA = MA-zukuri."

CO--MANY

To achieve this mission, we need to do an unimaginable amount of searching,co-creation, as well asCOM--ANY

deeper and persistent dialogue with everyone involved that leaves
no one behind.

COMPANY

That's why we put people in the middle of MA. Then we can become acompany= comrade for the first time.

--COMANYThis is the moonshot that COMANY envisions and realizes.

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COMANY INC.

Integrated Report05

T h e C O M A N Y G r o u p,a s a M A -z u k u r i c o m p a n y ( l i t e r a l l y, a s p a c e - g e n e r a t i n g
c o m p a n y) , h a s s e t a m o o n s h o t f o r 2 03 0 t o E m p o w e r a l l

L i f e b y M A -z u k u r i ( l i t e r a l l y, g e n e r a t i n g s p a c e) .

We value our philosophy and look to the future.
Our journey has just begun.

L e t ’s g o o n t h i s j o u r n e y t o g e t h e r.

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COMANY INC.

Integrated Report

07Top message“Emplower all life”
through MA-zukuri

Kenta Tsukamoto
Represent ative Direc tor, the President and Chief E xecutive O f f icer

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Integrated Report

09The world is changing at a rapid pace. In addition to
the problem of the coronavirus pandemic, disasters
such as windstorms, floods, and earthquakes are
becoming more frequent, and the issue of climatechange is becoming more serious. As described as"the age of VUCA," the current situation is a time ofvolatility, uncertainty, complexity, and ambiguity. In
these uncertain times, what is essential is to have thewillpower to decide what we want to do and how wewant to live as human beings.
We should aim for a society where all human beingsand life forms, including the earth, can live in harmony,develop and achieve happiness without leaving
anyone behind. "Empower all Life - a society in which
each shines brightly" is the moonshot that the COMANY
Group aims to achieve in 2030. We have inherited thespirit and philosophy of our founder since the time of
our founding. Building on our experience as a partition
manufacturer in designing many spaces, we are now
ready to become a space-generating company, MAzukuri company. Thus, we are about to embark on a
new journey to realize "Empower all Life-a society
in which each shines brightly" by MA-zukuri (literally,
generating space).

History of COMANY's 60th anniversaryand "Ma-zukuri"
COMANY traces its origins back to 1961 when it started
as a cabinet manufacturer. The founder, Shinkichi
Tsukamoto, experienced various hardships. For
example, the drastic change from the cabinet businessto a specialized partition manufacturer and the crisisof shutting down operations came soon after. In
the midst of all this, he concluded that what is truly
important in management is the heart (not money).
Thus, in 1968, we adopted the five corporate mottoes
for management based on human spirit and respectfor humanity.

The five corporate mottoes at the time ofthe establishment

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COMANY INC.

Our spirit is humanity and fraternity
Our life should base on coexistence and co-prosperity.
Our mission is to contribute to society.
We should enhance our knowledge and technology
and keep moving forward.
We should enjoy our leisure time and lead a moreenriched and happier life.
Thanks to your support, COMANY celebrated its 60th
anniversary this year. Even after more than half acentury, the founding principles have not faded away,
but now is rather the time to value them. With theassistance of our many customers and cooperatingcompanies, we have spent the past 60 years singlemindedly pursuing the partitioning business basedon our philosophy. It has been a valuable time for us.
In converting the number of partition panels we haveproduced over the past 60 years into the distance, itwill reach the moon from earth. Furthermore, we areproud of being a part of creating various comfortableand functional spaces adopted.
We have been searching for the answer to the question,"What is MA-zikiri (literally, a partition)?" since ourfounding. When we hear the word "MA-wo-shikiru(literally, partitioning a space)," we think of dividing
a space into two. On the other hand, a similar termis "BA-wo-shikiru (literally, managing a situation)."When you hear this word, do you imagine that
dividing a place into two? Rather than the opposite,
I think people imagine organizing, arranging, andeven creating a platform. In this way, I think the true
meaning of the word "partition" is not to divide but toarrange or create a space. "MA-zikiri" means giving abetter value to MA. That is, the question we have been
asking ourselves, "What is MA-zikiri?" is the question,in other words, "What is a good space?" What we havewalked through in the great history of 60 years, andthe mission that the COMANY Group should continue tofulfill is "MA-zukuri. (literally, generating space)."

Integrated Report11Moonshot: Empower all Life
The goal of "MA-zukuri (literally, generating space) is
to "Empower all Life - a society in which each shinesbrightly." We assume our mission based on the belief
that "a company should exist to contribute to the wellbeing of the world." Our mission, which is to contributeto a sustainable environment and human development
so that all people can work, learn, and live better.
People have different strengths and personalities anddifferent backgrounds in which they were born andraised. Thus, recognizing such differences and utilizing
each other's individuality to create a synergistic effectis essential. I believe it is the happiness that we should
genuinely seek that allows everyone to shine brightly.
It is necessary to ensure safety and security forpeople to live their own lives and shine brightly tofeel comfortable about being themselves. On topof that, it is essential to have an environment where
people can live honestly with their conscience andaspirations and take on challenges to open up theirpotential. Our strong desire is to contribute to creating
an environment and people who can realize thesegoals through "MA-zukuri. Even if it is called the age of
VUCA, the future is still in our hands. We aim for further
development in harmony with the economy, society,and the environment. We will continue to pursue
a world where we can realize coexistence and coprosperity with all life, including plants, animals, andlife on Earth. It is such a wonderful world that many
people can awaken to and experience happiness.

Value Creation Domains and Value Creation
StoriesBelieving that the future is not something to predict
but created by our own hands, I value ambition when
conducting business activity. After firmly grasping thecurrent situation, we are developing our businessbased on our strong will of "what we want to do."In this turbulent era, we will continue to develop thecustomer base and technologies we have built overthe past 60 years to build an even stronger foundation.
At the same time, we are taking on the challenge ofcreating new value by exploring new possibilities for"MA-zukuri (literally, generate space)" regardless ofthe current situation.
We have identified four areas in particular that we needto address to develop specific business activities:therealization of a self-reliant and decentralizedsociety;the demonstration of "uniqueness" throughrespect for diversity;the creation of new value throughtechnological innovation;the creation of a sustainableglobal environment;Based on these social issues, wehave defined the value creation actions as follows:"Promote sustainable global climate;""Strengthen disaster resilience;""Provide innovative platform;"" Enhance human dignity."
We decided these actions on a spatial scale ranging
from the global scale to the awareness of eachindividual. In response to these areas, we will work on
businesses that lead a sustainable environment andhuman development. Finally, we aim to "Empower all
Life" by helping people who use these spaces to shine
more brightly in their way.

I believe that the world is about
to embark on a journey to f indtrue happiness, including spiritualrichness.

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COMANY INC.

Integrated Report13with stakeholders.
We will also continue to develop activities in linewith the "COMANY SDGs ∞ (Mobius) Model" as a value
creation model for achieving these goals. The model's
right side (see page 31) represents how we contributeto the world through our products and services. The
left side means how we contribute to the happinessof our stakeholders. Aiming for "management that
contributes to the happiness of all involved," which
is our belief, we will continue to implement the ∞model. Thus, in harmony with the global environment,
we will attain greater happiness for our customers,
business partners(including suppliers), employees,
local communities, and shareholders & investors.

Aiming to Improve the Well-being of 100
Million People
As an indicator to "Empower all Life," we aim to"improve the well-being of 100 million people"
through our value creation model, the COMANY SDGs∞(Mobius) Model.
To achieve this goal, we will contribute to the wellbeing of people by adding new functions to theexisting products that solve social issues. For example,
we make safer and more secure spaces by reducing
the risk of earthquakes with a "highly quakeproof
partitioning system, Synchron." It ensures safety andlight psychological imposition, thereby improving
people's well-being. Besides, we also develop
products such as the "Dear-d" universal design toilet
cubicles and the "Tender Door" series. As a result, allusers can use these products with less stress regardlessof whether one is physically handicapped or not.
Moreover, we aim to realize the pervasive, diverse
ways of working in recent years through the "Remote
Cabin" and " KOUSHI." "Remote Cabin" is a cubicle thatenables workers to work individually anytime andanywhere while fostering highly productive work. At
the same time, " KOUSHI" creates a space that allows
people to focus on their work while feeling connectedwith others. As a result, both reduce workers' stressand develop innovations, improving their well-being.
In addition to the existing partitioning businessapproach, we will also create new businesses through"MA-zukuri"(litterally, generating space) to contributeto solving social issues, and improve the well-beingof many more people through indirect impact incorporate activities, coexistence and co-prosperity
14

COMANY INC.

Coexistence with the global environment"In our efforts to "Empower all Life" by improving
the well-being of 100 million people, we will
promote coexistence with the global environment
as a major premise. Therefore, we aim to achieve
net-zero emissions by 2040 and a "50% reduction
in environmental impact" by 2030 and promote a
decarbonized society. Specifically, we will reduce
CO₂emissions (non-consolidated) in Scope 1+2 by 50%
by 2030 compared to fiscal 2018. In addition, we will
also increase the ratio of renewable energy (nonconsolidated) to 50% by 2030 and then to 100% by
2040.
Besides, as part of our efforts to realize a circular
economy, we promote eco-friendly products that meet
our internal eco-standards, aiming for a 100% ecoproduct ratio by 2030. We are also working to improverecycling, reduce industrial waste emissions, and use
disposable plastics by reviewing our production andpackaging methods.

Diversity & Inclusion
To realize a society in which each can shine brightly,
we believe it is necessary to create an inclusive society
to enable everyone to shine rather than leaving
someone behind in a society of mass production.
In the same fashion, it is also an essential task forour business to create innovations to meet diverse
needs continuously. Therefore, it is crucial to promote
diversity and inclusion (D&I) by respecting eachother's differences, acknowledging the various
ways of thinking and leverage mutual strong points.
Consequently, we have positioned D&I as the central
axis of our growth strategy in our business activities
and are working to realize it.
In 2019, we established the Sustainability
Management Promotion Committee and the
D&I Promotion Subcommittee at the same time.
Furthermore, we have been working on realizing D&I
with all employees, including senior management,
through holding internal D&I training sessions while
periodically deciding on measures and following up on
their implementation. Aiming to create a society and acompany where everyone can respect who they are,we will further accelerate our effort. For example, wewould strive to eliminate various barriers, including
the gender gap, and achieve the goals of a female
employee ratio of 30% or more and a female manager
ratio of 20% or more by 2030.

Aiming to achieve the moonshot to 2030
I believe that a supreme delight of humanity comesfrom living honestly with their conscience. We all
have a conscience. Constantly refining that conscience,
being kind and considerate to others, and working
hard to serve the world would foster the supremedelight of humanity. Since we are born once only, ournatural mission is to help as many people as possible
and contribute to the world. To achieve this, we want
to realize true happiness where people can mutually
recognize, utilize, and empower each other's innate
strengths and individuality.

that companies should fulfill but also a possibility
for innovation. Therefore, we have signed the UN
Global Compact and will continue to promote the ten
principles.
In the spirit of humanity and fraternity, which areuniversal values, we will boldly change what needs
to be changed and take on new challenges to realize"Empower all Life" and strive to continue to be an
indispensable company to the world.
COMANY's journey to "Empower all Life by MA-zukuri(literally, generate space)" has just begun.

Our mission is "to help each individual reach theirfullest potential and lead a bright life." We believethat is consistent with the SDGs' goal of "seeking
to strengthen universal peace in larger freedom."
Therefore, as stated in our value creation model, the"COMANY SDGs∞ Model," we will set specific plans andtargets and steadily implement them in our business.
We will also place importance on an active dialogue
with all stakeholders. In addition, we believe thatproactively addressing "human rights, labor, theenvironment, and anti-corruption," as stated in theten principles in the four areas of the United Nations
Global Compact, is not only a social responsibility

Since we live one and only life, isn' t it the
innate mission of human beings to contributeto the world by helping as many people aspossible?

Integrated Report15

Co n t e n t s

39 Future Business Strategies

08 Message from the President and CEO

40 COMANY's Perception of "MA-zukuri"

Chapter1
18 What era are we living in?
20 Sustainable Growth of COMANY and Changing Times

Chapter4
46 Toward a never-ending Journey:

Our Attitude for Continuing the Journey

23 What kind of changes will occur in the future?

48 Putting Customer First

24 Risks and Opportunities

50 Constructing Partnerships with Our Suppliers

Chapter2
26 COMANY's Future Vision: Mobius Model,

the Compass for Journey-

52 Coexistence with the Global Environment
54 Fostering a Working Environment

28 The Story of Value Creation by MA-zukuri(literally, generating space)

56 Social Contribution Activities

30 MA-zukuri and Spatial Scale to Empower all Life
31 Value Creation Model COMANY SDGs

that Respects Humanity∞

58 Corporate Governance(Mobius) Model

DATA INDEX

32 Social Impact Created by COMANY

60

34 Road to 2030

62 Board members

Chapter3
36 The Value Created in the Destination(the Business Domain)
38 Medium-Term Management Plan _FY2023MTP_

64 Performance Highlights/ Non-Financial information
66 10-Year Financial Data
68 Financial Information
70 Corporate Information

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17Chapter1

What era are we living in now?
(What kind of world are we venturing into?)

We live in era known as "VUCA," where prospects are clouded andunpredictable. Let's take a look back at the history of COMANY and
see what kind of risks we face and what kind of value we can create
for the future.

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Integrated Report19

Sustained Growth of COMANY and Changing Times
1961

1988

2019

of COMANY INC., was established to
manufacture and sell lockers and cabinets
during the period of high economic growth.

The products by the Komatsu Par tition
had c on t r ibu t e d t o t he c r ea t ion o fworking environments during the periodof high economic growth by "partitioning"
spaces. (From the delivery record in the
catalog of the time)

Expression of a space

In 1970, the company name waschanged to Komat su Par tition
Industry to unify the company namewith produc t image. (The photoshows the exterior at the time)

In 1984, we introduced a corporate identit y (CI) in
order to shift our business to the sale of partitions forthe purpose of creating a comfortable and functional
space, and the company was renamed to the current"COMANY INC". (The photo shows the company's internalmagazine at the time.)

An era of partitioning a room (Shinkichi Tsukamoto's management)
1984 Renamed to COMANY INC.
1985 Won Deming Prize

The Value from Partitioning a room -The very beginning story of Partition-

SL・PL

Highly aseismatic par tition system thatcan withs tand ear thquake of seismic
intensity of 7 class, adding value to thespace in terms of safety and security.
➡ Highly quakeproof partition "Synchron"

Wooden doors are used to foster a warm
environment (welfare facilities)➡ "Tender Door Series" *Won the 2019
Good Design Award

Large panels adorned the walls of the
new international passenger terminal in
Haneda Airport, the gateway to Japan'sskies.
➡ "Single-sided decorative panel (CW)""Loosely dividing" creates a space thatencourages new forms of communication.
➡ "KOUSHI"

1989 Listed on the second
section of the Nagoya
Stock Exchange.
1991 Burst of bubble
economy1995 Introduced Amoeba
Management
1996 Received the TPM
Excellence Award

1997 Established CLUSTAR Inc.
1997 Established Gumanlin (Nanjing)
Industry Co., Ltd. and its functions
were afterward transferred to
Gumanlin (Nanjing) New Building
Materials Technology Co.Ltd .

With "comfortable and functional space" as our keyword, we have continued to grow by using partitions to express various
spaces while expanding and pursuing new functions of the space.

NSW

MUP

BD

Dear-dTender Door

Sales Trend (Founding to 60th term) (Unit: million yen)

35,00037th term -30,00026,04525,00027,734

26,69425,37025,480

27,497 28,385

29,17027,48625,31225,260

32,46632,437

25,64727,271 27,667

34,119DP60s

Synchron

32,453
26,457

24,93325,984

27,386 28,154

29,466

KOUSHI

30,479 31,106 31,070

32,38734,29235,00032,48528,81220,00017,61815,00015,00014,266
10,677

10,000
5,000
8

42

67

73

2nd term Jan. 1962-

119

181

245

482

611

600

764

3,924
2,519 3,038
1,371 1,580 1,966

10th term 1970

5,138

11,729 11,797

10,0008,054 8,436
6,952 7,481

20th term 1987

30,00025,00021,07620,00002015 Listed on the Second Section of
the Tokyo Stock Exchange
2015 Adoption of SDGs, COP25
the Paris Agreement
2018 COMANY's SDGs Declaration

2008 Lehman Shock2011 Great East Japan
Earthquake2011 50th anniversary of
the foundation

Expanding business with a diverse product lineup

In the early days, cabinets were not making profits due to the high transportation cost to distant locations. After thinking through the issue
by looking at the city center of Tokyo in a construction boom, our founder, Shinkichi came up with the idea of using our existing technology,
facilities, and sales structure to create a screen (partition). This was the launch of our partition business.

SS

We provide a res troom which is easy
to use, safe and secure for everyone byadopting universal design.
➡ Univer sally designed toilet
cubicleDear-d

An era of expressing "MA" and pursuing "MA" functions (Mikio Tsukamoto's management)

1970 Renamed to Komatsu
Partition Industry

High economic growth period
1961 Komatsu Cabinet Co.,Ltd.

We entered the clean room business,and improved the function of the spaceby controlling dust and dir t in the air
and achieving the optimum level ofcleanliness.
➡ "Clean Room Partition

Toward a New Era of Value Creation

Funciton of a space

Komatsu Cabinet Co., Ltd., the predecessor

5,000

3,555

28th term Apr. 1987-

40th term 1999

50th term 2009

0

60th term 201927th term 1987 3 months
due to change of fiscal

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COMANY INC.

Integrated Report21

What kind of changes will occur in the future?

Sustained Growth of COMANY and Changing Times2019

Toward a New Era of Value Creation

The COMANY Group's mission is to "Contribute to creating asustainable environment and human development for people
to work, learn, and live better. Thereby, people can reach theirfullest potential and live a bright life." We will further develop thepartition technologies we have built up over the years and solve
various social issues through our business activities to realize thismission. We would also contribute to a better life for everyone
through "MA-zukuri (literally, generating space)" and "Hito-zukuri(literally, human development)." We set our slogan, "Empower all
Life," in 2020. We will continue our effort to create a society where
each irreplaceable individual can shine brightly and be deeplyinterconnected.

Japan and the world are undergoing rapid changes,
such as the ef fec t s of demographic changes,
global environmental changes, and technologicalinnovations, not to mention the recent problems of
the COVID-19 pandemic. As a result, we are now ina state of Volatility, Uncertainty, Complexity, andAmbiguity, as described as the "VUCA Era."

Precisely because we live in such an era where thefuture is unpredictable, we must use our willpower toaim for a better society. Then, all life forms, including
humanity and the Earth, can live in harmony, develop
and achieve happiness without leaving anyone
behind.

Impact of demographic change

Trends in Japan's GDP and Population

150,000
117,060

120,000

123,611

126,926

128,057

125325

1990

2000

2010

2020

103,720
93,41990,00083,20060,000After World War II, Japan experienced rapid economic
growth and became an economic power. However, Japan's

30,000population has now already begun to decline, and thenumber of the elderly is increasing, plunging the country
into a super-aging society.

01,000peple

1950

1960

1970

1980

Source: National Accounts - Analysis of Main Aggregates (United Nations)
National Institute of Population and Social Security Research "Population Projections for Japan

Impact of global environmental changes

Global average temperature change based on the period 1850-1900℃

5
As greenhouse gas concentrations continue to rise,

Toward an era of "MA-zukuri" and "Hito-zukuri" (Kenta Tsukamoto's management)
2020 Spread of COVID-19
2020 Introduced Design Management
2020 Sold Gumanlin (Nanjing) New Building
Materials Technology Co.

temperatures are expected to rise even further.

2021 Tokyo Olympics
2021 60th anniversary of foundation
New tagline "Empower all Life"

2025 Osaka World Expo

2030 Achieving the SDGs

The problems caused by climate change, such as

22

Remote cabin

FSC®️ Certified Material Toilet
Cubicle CB-FSCARCOMANY's SDGs Declaration

Activities related to the SDGs

Believing that it is essential for companies to participate in
the SDGs to realize it actively, we issued the "COMANY's
SDGs Declaration" on April 2, 2018. We are committed toaligning ourmanagement
philosophy, policies,
and strategies with
the SDGs' goals andcontributing to therealization of the SDGs
through concrete
operations.

Aug.2018: Signed the United Nations Global Compact and joined the GCNJCOMANY INC.

SSP3-7.0

3

SSP2-4.5

frequent floods and forest fires, have become2increasingly serious.
SSP1-1.9, SSP1-2.6, SSP2-4.5, SSP3-7.0, and SSP5-

Health Bright Evolution®

SSP5-8.5

4

SSP1-2.6
SSP1-1.9

1

8.5 are CO2 emission reduction scenarios. SSP11.9 is the scenario with the lowest CO2 emissions

0and corresponds to the "1.5°C target". SSP2-4.5,
SSP3-7.0, and SSP5-8.5 show the increasing inemissions in that order.

-1

1950

2000

2015

2050

2100

Source: Summary for Policymakers(SPM), IPCC AR6/WG2

Impact of technological innovation

Change in the total amount of digital data generated and consumed worldwide

59,000Total amount of data (exabytes) * Logarithmic scale

10,000

Oct.2018: Joined Japan-CLP

988

1,000

Apr.2019: Established Office for the Sustainability Management Promotion
Jun.2019: Formulated the COMANY Group Human Rights Policy
Jun. 2019: Signed a partnership agreement with Komatsu City to promote SDGs.
Oct. 2019: Joined RE Action, a declaration of 100 renewable energy sources
Feb. 2020: Endorsed the "Declaration on Action" by a group of male leaders
who will create "A Society in which Women Shine"
Apr. 2020: Certified by the SBT Initiative
Jul. 2020: Announced "Declaration of partnership building"Jan. 2021: Signed the Women's Empowerment Principles (WEPs)

281
The total amount of digital data generated and consumed

100

worldwide is 10,000 times greater than 20 years ago and32

grows exponentially due to the rapid transformation to an
information society. This rapid technological innovation
supports the development of the global economy.

0

6.2
2000

2003

2007

2010

2020

Source: 2014 WHITE PAPER Information and Communications in Japan, IDCʼs Global DataSphere Forecast
Shows Continued Steady Growth in the Creation and Consumption of Data

Integrated Report23

Risks and Opportunities

With 2030, the deadline for achieving the SDGs, as amilestone, we have categorized the businessenvironment surrounding the Group into four
major social issues. We also identified the factorsthat pose business risks to the Group and potential
growth opportunities of these social issues.
Based on the understandings of such environment,
Recognition of Business Environment

we have identified four issues to be addressed
based on the Group's effor ts to date, and havefurther defined four growth fields. In each of thesefields, we will enhance our corporate value bys o lv ing s o c ial is s ue s an d con t r ib u t e t o t h ehappiness of all our stakeholders.

Four Social Issues

Geopolitical changes

Creating an environment accommodating newwork styles▲

・Population decline

Stoppage of economic activities due
to disasters▲

Decentralization)

Further decline in depopulated areas(depopulation and disappearing industries)

Creating office environments for U-turn andI-turn workers▲

1 over-concentration(Centralization andEnvironmental proposals that match
depopulated areas▲

disparities due to

Weakening of urban functions due tooverconcentration in the Tokyo
metropolitan area▲

Demographic changes

Regional▲・Tokyo Centralization
・Regional disparity
・Regional development
・Progression of the nuclear
familyOpportunity

Risk

・Low birthrate and aging society

・Arrival of the era of 100-year-life

population▲

Replacement of partitions with alternative
products

COMANY INC.

natural disasters

Stagnation of economic activities due toinfectious diseases

Research and development of earthquakeresistant building materials

Use of environmentally friendly materials.

▲

24

activities due to▲・Outbreak and spread of infectious
diseases

Environmental destruction due to supplyfirst use of materials

4 of production▲

・Biodiversity conservation

life and cessation▲

・High incidence of natural disasters

Develop BCM/BCP business▲・Global warming

Production shutdown or collapse of building
material resources and loss of human life due
to large-scale disasters

Damage to humanDeveloping new business partners▲

Changes in the Global
Environment

Providing new value through IoT▲・Development of creative humanresources

Increasing productivity through unmanned,
automated, and remote operations▲

Increased security risks due to unmanned andautomated production

・Robotic technology

Expanding business domains through online
services▲

3 technology▲

・Evolution of AI & IoT

Opportunity loss due to delay in technology
introduction (DX)▲

Evolution ofDiversification of work styles by increasing thenumber of second job and by-business▲・ Valuing diversity
・ Globalization
・ Change in human rights
awareness

Advances in technology

Collapse of social security system

Creating opportunities for diverse humanresources▲

working-age

Shortage of workers (labor shortage)▲

2 due to decrease inEfforts to improve productivity▲

Social & Economic
Diversification

human resources▲

・Shortage of engineers inmanufacturing/constructionindustries

Shortage of▲・Decline in working-age Population

Four issues to be addressed

1
2
3
4

Initiatives for a selfsustianed anddecentralized society

Promoting innovation
through diversity andinclusion

Enhancing the value of
space throughtechnological innovation

Improving our response
capability toenvironmental
protection and disasterrisk reduction(DRR)

Integrated Report25Chapter

2

COMANY 's Vision for the Future
The compass of Journey
Mobius Model
Our management goal is to "contribute to the happiness ofeveryone involved". The business model we have created as acompass for realizing this goal is the "COMANY SDGs∞ (Mobius)
Model. In this chapter, we drew a future vision of what kind ofvalue we can create from this compass.

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Integrated Report

27

The Stor y of Value Creation by M A-zuk uri

Empower all Life

Environment:
Promote sustainable global climate

Safet y&Securit y:

Empower all Life

Strengthen disaster resilience

Activit y:
Provide innovative plat form

Contributing to a society in which each and every
individual can shine brightly

Well-being:
Enhancehuman dignit y

MA-zukur i(l i t e r a l l y, g e n e r a t i n g s p a c e)

When we were children, we had simple questions and innocent thoughts such as, "Why do adults fightwars against each other? ""Why do people destroy the natural environment?" "If someone is in need of food, why don't we justsend the food from where there is a surplus?" However now, we have grown up, learned about the realworld, and become busy with our daily lives. We wondered if such childlike thoughts would ever be
accepted... No, things shouldn't be that way.

"Enpower all Life"

Toward a self-sustained

1and decentralized

Improving the space value

3society2

through diversity andinclusion (D&I)

New Markets

through technologicalinnovation

Improving our response

Promoting innovation

The meaning is "to strengthen all life." It means to aim for coexistence and co-prosperity in harmony

Ma r ke t s t r a t e gie s b a s ed o n s o c ia l i s s u e s

S o c ia l I s s u e s t o b e Ta c k l e d b y COM A N Y

4Officemarketcapability to environmental
protection and disaster risk

Factorymarketreduction(DRR)

Medical andwelfaremarketSchoolmarketwith human beings worldwide and all life on earth and the natural environment. We, COMANY,"Empower all Life" through "MA-zukuri (literally, generate space). We strive to create a sustainable
environment and human development for people to work, learn, and live better, thereby reachingThinking with Technology,
Responding with Comfort

their fullest potential and living a bright life."

With the pure heart we had as children and the technical skills we have cultivated as adults.

Governance

Products & Services

Infrastructure to support
value creation

Value creation throughbusiness

Value Creation Model
COMANY SDGS
(Mobius) Model

∞

28
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COMANYCOMANY INC.
INC.

Integrated
Integrated Report
Report29

M A-zuk uri and Spatial Scale to Empower all Life

Value Creation Model Comany SDGs ∞ (Mobius) Model

Realizing a society in which each shines brightly
by MA-zukuri (generating space)"Empower all Life"means to make human beings,
plants and animals, as well as life on Earth to be
more vibrant. In other words, it means to realize asustainable environment and development at thesame time.
We are a MA-zukuri company(literally, a spacegenerating company). Our mission is to "Contributeto creating a sustainable environment and humandevelopment for people to work, learn, and live
better. Thereby, people can reach their fullest
potential and live a bright life." We are committed tocreating excellent MA (literally, space) through MAzukuri(literally, generating space) and encouraging alllife living in it.
"Encourage all life living in the space" means to makethe space sustainable with expanding capacity for thegrowth. In other words, COMANY aims to "Empower all
Life" through MA-zukuri. Our corporate vision is not to

Seeking to strengthen universal peace in larger freedom
To provide opportunities for the material and spiritual well-being of all our employees,
and through our joint eorts, contribute to the advancement of society and humankind.

Gover nance

Produc t s & Ser vices

Governancepursue only efficiency through mass production andmass consumption thus far, but to contribute to therealization of a sustainable society and the well-beingof all people involved thereby creating a spiritually
afﬂuent world.We will contribute to the environment
development and human development where
each individual can feel safe to be themselves andmaximize their potential through MA-zukuri.

Spatial scale to realize "Empower all Life"

Product & Service

Innovate
withTechnology,

Employee

Shareholders

PublicFacilities

Supliers

ProvideValuesCommunities

OfﬁcesWorking better

Living better

Factories

Working better

Make the World
Comfortable

Hospital＆WelfareLiving better

Globalenvironment
School"Empower all life - Contributing to a society in which
each shines brightly" is our moonshot for 2030. We
have defined the areas of value creation based on
current and predicted social issues. We will workon the spatial scale from the global scale to the

Spatial Scale

Global scale

Global Scale

Community and facility

Environment

Safety＆Security

Promote sustainable

Strengthen disaster

global climate

resilience

Concious awarenessA scale that extends to the actions ofeach and every individual

Each individuals' conscious
awareness scale

Activity

Well-being

Provide innovative platforms

Enhance human dignity

Value creation perspective

Value creation perspective

Value creation perspective

Value creation perspective

Global Warming / Renewable Energy& Energy Conservation
Intiative for Circulr Economy/
Eco-friendly products

Earthquake proof /secondary
disaster countermeasures
BCP measures/quality standards

productivity enhancement/functionality enhancement
Social distanceApproach to the value creation

Approach to the value creation

Respect for diversity /improvement of comfort
Health management/ infection
control measures

Approach to the value creation

We will contribute to safety andsecurity through the development
and deployment of products thatare resistant to earthquakes anddisasters and that demonstrate
their value even in the event of asecondary disaster as well as in ourdaily lives.

We inspire people to be more
active by creating spaces andencourage innovations by creating
innovative platforms.

We will contribute to the creationof a sustainable environment by
expanding our range of ecofriendly products and reducing
environmental footprint of our
production processes.

30

COMANY INC.

Learning better

conscious awareness of each individual. The actions
are as follows: "Promote sustainable global climate;""Strengthen disaster resilience;" "Provide innovative
platforms," and "Enhance human dignity."

Approach to the value creation
We will create an environmentthat is userfriendly and safe for all
people thereby contributing tofostering an environment forpeople to live better physically,
mentally, and socially.

The "Comany SDGs ∞ (Mobius) Model" is a business model created tomaximize corporate value by implementing the SDGs into management
and solving social issues, and to achieve our goal of "management that
contributes to the well-being of all people involved." Products & services(on the right side) shows how we can contribute to society by realizing
the goals of the SDGs in our business domain.
Meanwhile, Governance (on the left side) shows how we contribute to thewell-being of our stakeholders through realizing SDG Goals. Furthermore,
Goal 9 of the SDGs, "Technological Innovation," is a leverage point that
we have set to increase the effectiveness of "Products & Services" aswell as "Governance" by organically linking them together, rather than
implementing them separately. We aim to maximize our corporate
value by advancing our "technology" to a global level and continuously
deploying the SDGs ∞ (Mobius) model.

Integrated Report31Social impacts created by COMANY
By 2030, we will contribute to a societ y in which each shines brightly by improving the well-

Outcome 2

being of 100 million people and reducing the environmental impac t by 50% through providing
value by MA-zukuri (literally, generating space).

Outcome1

We will contributeto the improvement

We will achieve a

50%

100

million people by 2030.

reduction in environmental
impac t by 2030.

We wil l de f ine improvemen t of wel l-being as t he number of people w ho are happy as a result of value creat ion

We aim t o ac hie v e a 50 % r e d u c t io n in g r e e n h o u s e ga s e mis sio n s b y 2030, co m p ar e d t o 2018, f r o m b o t h dir e c t

through our existing and new produc ts and ef for ts for coexistence and co-prosperit y with our stakeholders.

greenhouse gas emissions (fossil fuel s, natural gas, etc.) and indirec t greenhouse gas emissions (elec tricit y, etc.) .

Value creation
through existingproducts

Value creation
through new
businesses

Indirect impact

Example of calculation of 100 million people[Safety & Security]: Synchron--Making space to withstand aseismic intensity of 7
By reducing the risk of earthquakes and making a sapce safe and secure,
we help keep up user's mental stability and improve their well-being.

No. of Syncron installed + No. of diffusion by disclosure oftechnology x No. of users[Well-being] :Realizing a user-friendly toilet cubicle"Dear-d" a universally designed toilet cubicle

Initiatives based on
coexistence andco-prosperity withstakeholders

KPI① CO₂ emissions (non-consolidated): 50% reduction in Scope 1+2 emissions by 2030 compared to 2018
② Renewable energy ratio (non-consolidated): 50% by 2030, 100% by 2040: Obtain SBT certificationand declare 100% renewable energy

Obtain SBT certification and declare 100% renewable energy
In April 2020, we were certified by the Science Based Targets (SBT)
Initiative, an international consortium, for our greenhouse gas
reduction targets, which are based on scientific evidence to limit
the temperature increase to 1.5°C above pre-industrial levels.
Besides, we joined "RE Action- Declaring 100% Renewable" in
October 2019, a new framework of RE100 to declare that we will
convert 100% of our electricity use to renewable energy. We aim toachieve 50% of our own renewable energy by 2030 and 100% by
2040.

By creating a universal design toilet space that can be used easily by
everyone regardless of disability, we work to improve the well-being of
all users.

No. of Dear-d installed x No. of users

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COMANY INC.

Integrated Report33

ROAD to 2030

Contributing to a society in which each shines brightly

Moonshot to 2030

Our corporate vision is not to pursue only efficiency through mass
production and mass consumption thus far, but to contribute to therealization of a sustainable society and the well-being of all people
involved thereby creating a spiritually afﬂuent world.We will work tocreate a societ y in which each and ever y one of irreplaceable
individuals can shine in their own way while strengthening thepeople-to-people connections.

GovernancePublicFacilities

Supliers

ProvideValuesCommunities

OfﬁcesWorking better

Living better

Make the World
Comfortable

Living better

Initiatives for aself-sustainedand decentralizedsociety

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COMANY INC.

50%

Hospital＆WelfareSchoolImproving our
response capabilit yto environmental
protection anddisaster risk
reduction(DRR)

million people
Working better

Learning better

Enhancingthe value of
space throughtechnologicalinnovation

Re d u c eenvironmental
impact by

Factories

Globalenvironment

Promotinginnovation
throughdiversity andinclusion(D&I)

Improve thew e l l- b e i n g o f

10 0

Product & Service

Innovate
withTechnology,

Shareholders

Social impact created by COMANY INC.

Products & Ser vices

Governance

Employee

Empower all Life

FY2018-2020

FY2021-2023

FY2024-2026

FY2027-2029● Declaration of Partnership● Proposing and developing a● Efforts for developing● Developing self-sustianed andBuilding with Komatsu

variety of work-styles

self-sustained anddecentralized pilot projects

municipality

regardless of location

decentralized pilot projects● Promoting internal U, I,

through regional revitalization

and J turns● Community development
fostering interaction of all

FY2030● Self-sustained and decentralized pilot
projectCollaboration in urban development● Realization of a decentralized work environment

generation

Expanding product lineup

Expanding product lineup

Expanding product lineup

Expanding product lineup

Expanding product lineup

Ratio of female managers

4.7%

8%

12%

18%

20%

Ratio of female employees

17.4%

18%

23%

28%

30%

Ratio of employees with disabilities

2.3%

2.4%

2.7%

3.0%

3.5%

Disaster risk reduction population

70,000people

280,000people

590,000people

1,170,000people

1,370,000peple

Reduction of infectious diseasedamage risk

10,000people

20,000people

40,000people

60,000people

150,000people

Ratio of eco-friendly products

50.7%

80%

90%

95%

100%

4,375t-CO2/year

3,946tCO2/year

3,317tCO2/year

2,687tCO2/year

2,478tCO2/year

87.6%

79.0%

66.4%

53.8%

50%

0.0%

18.8%

33.0%

45.0%

50%

Universally designed products

Greenhouse gas emissions
Greenhouse gas emissions(compared to SBT standard FY2018)

Renewable energy ratio (RE Action-Declaring 100% Renewable)

Integrated Report

35Chapter

3

The Value Created in the
Destination (the BusinessDomain)We divide the period before the deadline for achieving SDGs by2030 into three segments. We would implement three cycles
for our medium-term management plan, create value in ourbusiness domains, and realize our vision for 2030.

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COMANY INC.

Integrated Report37Medium-Ter m Management Pl an _ F Y2023 MTP_

Basic Strategies for Achieving Medium-Term Management Goals
Revenue

In response to the diversified needs of customers due to newworking styles and lifestyles, we will speedily develop products
and services focusing on the office market. We aim to meet theneeds of the New Normal Era while taking advantage of thecharacteristics of partitions. We will also continue researching"work-styles" to create new sales channels and businesses.
Furthermore, we will promote products to designers in thefactory, hospital & welfare facilities, schools, and other markets.
The activities aim to encourage incorporating our products inshop drawings at the design phase. We will also expand thescope of our solutions business to solve customer issues, thereby
expanding our business domain. Moreover, we will strengthen
the horizontal cooperation among the entire company,
including sales, engineering, manufacturing, and construction
departments. We will work together to respond quickly tocustomers' real needs to secure stable sales.

Profitability
We will improve our productivity and quality by thoroughly
eliminating losses and promoting rationalization in the processof proposing to customers, receiving orders, production,
distribution, and construction, as well as by reviewing businessprocesses and making systematic investments in production
facilities. We will also improve the added value of each

employee and achieve a highly profitable structure by allocating
personnel resources and training human resources per customer
needs.

Sustainability
By promoting diversity and inclusion, we will improve the job
satisfaction of our employees. Furthermore, by linking this toinnovations, we will strive to create value by rapidly developing
new products and ser vices in response to changes in themarket. Besides, we believe that coexistence with the global
environment is a prerequisite for corporate activities. Therefore,
we will protec t the global environment through energy
conservation, reuse, and recycling.

Future Business Strateg y

Value Creation in Major Markets
We manufacture various types of partitions fordifferent applications and deliver them to fourmain markets, including office, factory, hospital& welfare facilities, and school.
In response to diverse customer needs forwork-style or space creation corresponding to
the New Normal after the COVID-19 pandemic,
we will strive to broaden and enhance ourcustomer base by rapidly developing new

products and services. Furthermore, we willbuild a business structure to secure profits evenin a severe economic environment.
Moreover, we aim to realize our moonshot for2030, "Empower all Life," by approaching thefour value creation areas. Thus, we will solve
various social issues through our businessactivities.

GovernanceTo increase corporate value, we believe that the basis ofcorporate governance is to increase management efficiency
and improve fair and prompt decision-making. Therefore, wewill strengthen management control functions and internal
controls to ensure sound and transparent management. Besides,
we will actively conduct compliance awareness surveys andstudy sessions for all employees and provide training by outside
experts for directors and officers. We plan to expand these
efforts to our group companies in the future.

MarketValue delivered

Value contributed - products/services

For the office market, working people and the working styles Contributing to a better working
are becoming ever more diversified. This situation leads to environment
individuality in each office, rather than a nondescript space thus KOUSHI: Design partition

Officemarketfar. Furthermore, the office market is experiencing a change Bridia: Glass partition
that offices will no longer be limited to the space provided by Rem o t e c abin: C ubic l e f or r em o t ecompanies. Instead, a variety of areas will turn into offices. For working
example, people use cafes, private homes, and tourist facilities DP60S/80: Movable partition
such as inns for work. As a result, various spaces are available Syncron: quake-proof partition
for diverse work styles.
The factory market is entering a phase of significant change. Contributing to a better working
With issues in handing down techniques and the decrease in the environment

FY 3/2022

FY 3/2023

FY 3/2024

Net sales

30,500Billions of yen

32,000Billions of yen

33,000Billions of yen

Operating profit

1,500Billions of yen

2,100Billions of yen

2,640Billions of yen

4.9%

6.6%

8.0%

Operating profit on sales

FactorymarketHospital

Ordinary profit

1,540Billions of yen

2,140Billions of yen

2,680Billions of yen

Profit attributable to owners ofparent1,000Billions of yen

1,400Billions of yen

1,800Billions of yen

SchoolmarketFY2020 61st term
330 billion yen (plan)
288 billion yen
Common38

COMANY INC.

The demand for inpatient care is expected to rise as the number Contributing to a better livingof chronic-phase patients increases due to the rapid rise in environment
the population of Older Senior Citizens and the increase in HDW: Tender door
average life expectancy. In contrast, the workforce is expected Shinayaka: Beds divider

marketFY2026 MTP (tentative)

FY2020 61st term

production processes through utilizing IT, IoT, big data, and AI.

& welfare to decrease further. Therefore, we will continue to make the Mobile robot: Used diaper transfer robot
facilities spaces pleasant for medical staff and comfortable for patients.

FY2029 MTP (tentative)

11.6billion
yen(4.1%)

working population, the transformation to digitalization is an CR: Clean room partition
urgent task. Therefore, we have been promoting automation SYNCRON: quake-proof partitionand labor-saving by introducing robots and streamlining Mamotaro: Fireproof factory cubicle

points26.4billion
yen(8.0%)
FY2023 64th term

FY2026 67th term

There is an increasing demand for diverse spaces in schoolclassrooms due to new form lessons requiring large rooms forgroup learning. Another reason is that initiatives for "inclusive
education" enable all children to learn together irrespective ofdisabilities. By accurately grasping the needs associated withthe diversification of classrooms, we will continue to provide
products to help improve the value of classrooms.

Contributing to a better learning
environment
SPart: School partition
SPart-W: Wooden partition for schools
DOS: Mobile partition for schools

In order for everyone to play an active role in all kinds of Contributing to a better living
space, we will continue to provide safe and secure places and environment
userfriendly products.
CB-DRD：Universal Design Toilet Cubicle
Health Bright Evolution® : Antiviralcoating
Partition for evacuation center
CB-FSCAR: FSC certified toilet cubicle

FY2029 70th term

Integrated Report

39COM AN Y 's Perception of "M A-zuk uri (l i t e r al ly, ge ne r a t ing s pace) "Good News for those who need to conduct online meetingsor focused work.

WorkbetterLearn
betterRemote cabin
This product is a cubicle that provides an optimal space for web conference andfocused work.
Due to the spread of the novel coronavirus, web conference has exploded in
popularity. However, there is not much space for web conferences in the conventional
office environment. As a result, some occupied a conference room. And someconducted web conferencing in the workspace, interfering with other co-workers'
concentration. Thereby, many are dissatisfied with the office environment.
The same issues arise in other target markets due to changing circumstances. For
example, the meetings among factories also go online instead of face-to-facemeetings. More conferences and seminars regarding hospital and welfare facilities
also go online. Besides, online lessons have become common in schools as well.
Therefore, the need for space to conduct meetings, seminars, or attend classes isincreasing. This product helps create an environment where each individual canwork and learn better.
This product is cheaper and quicker to deliver than conventional products, isdesigned for comfortable work in the cubicle, and has anti-virus and anti-bacterial
specifications for safety and security.

What is "MA"?

Is the space really safe to use?

We have been asking ourselves about this question for 60 years since our founding.

Health Bright Evolution®[HBE]

What we have been aiming for is not simply divide the space, but to create the perfect MA forthe space.
Space has a great impact on people's action.
For this reason, we define "MA-zukuri" as "the generation of excellent MA (literally, space)".
Acknowledging that 60th anniversary, we have changed our motto to "Empower all Life." We
also resolved to pursue MA-zukuri (literally, generating space) more than ever so that eachindividual can live a bright life.
MA-zukuri is the generation of excellent MA (literally, space) that can "contribute to creating a

Agile Development

During the development process, we consideredvarious factors, such as how people would use
the product and what they might possess when
considering the layout of the space. As a result,
we have been developing in an agile manner. And
we are constantly evolving, making more than ten
improvements since the launch.

WorkbetterLearn
betterLive
better

Health Bright Evolution® (HBE hereafter) is a product that provides antiviral and anti-bacterial effects by coating rooms and fixtures. Even
before the COVID-19 pandemic, the risk of infectious diseases such as
influenza existed in various places. Therefore, we started providing HBE
on May 1, 2020, to create a safe and secure environment.
HBE is guaranteed to be effective for five years and contributes to betterworking conditions for employees in offices, better learning conditions
for children in educational facilities, and safer commercial and sports
facilities in everyday life.

Anti-viral

Anti-bacterial

VOC
decomposition

Deodorant

Anti-fungal

Anti-foulingsustainable environment and human development for people to work, learn, and live better."This spirit was born from sense of value based on "humanity and fraternity," which is ourcompany credo. We have been creating many spaces in the past.
Believing that this is the value creation that we should encourage, we will continue to pursue
MA-zukuri in the future.

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COMANY INC.

Integrated Report

41

Work
betterBringing Japan's ancient partitioning culture into the modern age

Japan is an earthquake-prone country, and our partitions can withstanda seismic intensity 7 earthquake.

KOUSHIWork
betterLearn
betterLive
betterHighly quakeproof partition "Synchron"
In Japan, major earthquakes occur frequently, and the probability of aAs the name suggests, the concept of
this product is based on the motif oflattice, an ancient Japanese methodof softly dividing space.
The ancient-style partition has
created a space where people can feelat ease by fostering a sense of unity
in the entire space with retaining
the presence of others besides thepartitioning.
The appropriate way of making
space, does not only allow people feel
connected with each other but also
help people make new discoveries
and foster communication, thus
enabling people to " work better."huge earthquake occurring in the next 30 years is said to be more than
70%, raising alarm about the risk of a large earthquake.
Although partitions are basically quakeproof, we have learned thatsome partitions were broken while some were in danger of collapse in
the past major earthquakes such as the Great East Japan Earthquake andthe Kumamoto Earthquake.
Partitions are widely used in corporate offices, schools, hospitals,
and public facilities where everyone has a chance to visit. To makesuch familiar partitions more earthquake-resistant, we have been
conducting research on the highly quakeproof partition "Synchron" incollaboration with Kanazawa Institute of Technology. To achieve ourgoal of 1.37 million people's risk reduction in the event of an earthquakeby 2030, we are working to increase the percentage of our products

Stylish expression of industrial

equipped with Synchron.

The one-of-a-kind design can be expressed by our readymade product. We can create a lattice structure with a stylish
frame and combine it to meet the customer's needs.

Improving the safety level in Japan, an earthquake-prone country
In the past 30 years, only 12 out of more than 1,700 municipalities in Japan have not experienced
a tremor of intensity 3 or higher. Besides, there have been 5 huge earthquakes of intensity 7. We
cannot prevent earthquakes but we can do our part to reduce the damage.

Work
betterWhat I want right now "KAKOU" "Mile""KAKOU" "Mile"The spread of the new coronavirus has triggered
major changes in the working and learning
environment, including work-from-home andonline classes.
We launched "KAKOU" as a countermeasure against
the gaze of family members at home and thereflection of projections from online meetings andclasses.
In addition, as the issues of fatigue and lack of
exercise due to working at home increased, wedeveloped "Mile" and conducted trial sales throughcrowdfunding as a proposal to outddor workstylein natural environment.
The result of crowdfunding campaign produced
exceeded our expectations, and we feel thatmany people have high expectations for working
outside. We are working on improvements andrefinements for the official launch in November
2021.
42

COMANY INC.

Live
better

KAKOU
Live
betterAchieving a society with zero secondary victims in disasters
Cubicle for Evacuation Center

Mile

In a world where disasters are becoming common, asafe and secure environment at the evacuation site is an
important factor in preventing secondary victims.
To reduce the number of secondary victims in the eventof a disaster to zero, we have developed a cubicle for
evacuation center that provides a space where womencan change their clothes and breastfeed in peace. We
believe that an environment where women can evacuate
at ease is also an element of secure for children and men
around them. This product is made of lightweight andstrong materials, and can be assembled in about 10
minutes without tools. It was produced after learning
about the disaster area and interviewing experts about
what was needed. In the event of a disaster, which could
happen at any time, we will create a space that protects
people's dignity and provides peace of mind for a better
life, rather than saying, "It's an emergency, we can't
help it."Realizing the necessity of "MA (literally, space)"for evacuation center assisting the disaster-hit areas
This project was launched after our employees actually assisting the affected areas
during the Landslides and fooding caused by torrential rain in western Japan in
2018, and wondered what we could do as a manufacturer. We also recognized theimportance of this project through discussions with students from Kanazawa Instituteof Technology, and started development of the product.

Integrated Report

43

Live
betterRealization of a stress-free space for all users
Universally designed toilet cubicle [Dear-d]

C-POD

This product is a universally designed toilet cubicle with a folding door.
It is space-saving and user-friendly, creating a stress-free toilet spacefor everyone regardless of age and physical condition. With the rapid
aging of society and globalization, the Ministry of Land, Infrastructure,
Transport and Tourism has enacted the barrier-free law. And otheruniversal design initiatives are gaining momentum in society as awhole. However, congestion in multi-functional toilets has been cited
as a problem.
Therefore, the transfer of functions for children and ostomates to public
toilets is being promoted to relieve congestion in multi-functional
toilets. We developed the space-saving Dear-d to achieve this goal. It
has been used in many facilities, including large-scale facilities suchas Narita International Airport and Central Japan International Airport,
for this reason. As a result, all users can use the toilet space without any
inconvenience, creating an environment where each person can live
better.

As a result of digitalization, the amount of data
traffic on the Internet in Japan has doubled in thepast three years. As data capacity is expected tocontinue to increase, the need for data centers to
support it is becoming increasingly important.

Realization of comfortable rooms and nursing care for the elderly"Tender Door Series""Bed Divider Series"

Create universal design together
with users

We have conducted a number of experiments with a variety of users,
including the physically challenged and those with small children, andreflect the results of these tests in our product development.

Work
BetterLive
BetterOptimal partitioning supports energy conservation

The power consumption of air conditioning in data
centers is extremely high, and this poses a challenge
in terms of climate change countermeasures. Our
C-POD is a ceiling-mounted product to improve air
conditioning efficiency in data centers. Structureof partitions is utilized for the flexible adjustment.
It helps reduce power consumption in data centersby effective cooling of servers.

LivebetterTender Door Series
LivingbetterA sustainable future through the use of well-managed materials
Since the "Tender Door Series" is made of wood,its taste and scent give the room warm air. The
homey atmosphere gives the users a sense of
comfort and security as if one is staying at home.
Besides, it is lighter in weight than ordinary steel
doors, allowing the elderly to open and close themsmoothly. It also reduces the risk of falling due tocontact with the self-closing door.
In addition, the "Bed Divider Series" is a partition
between beds that is ideal for privacy protection in
multi-bed rooms. In welfare and medical facilities
for the elderly, privacy protection in multi-bed
rooms has become an issue. The "Bed Divider
Series" helps create a facility environment that
protects the privacy of the residents and suits therhythm of each individual's life while providing thenecessary care to the elderly. Thereby, we create
an environment where each individual can workand live better. As a result, the elderly can live
vibrantly, and the staff can focus on their work withpeace of mind.

FSC-AR

Bed Divider SeriesThis is an environmentally friendly toilet cubicle
that has obtained FSC® certification. The woodused for the filler, frame, and other components
comes from properly managed forests. By properly
utilizing these wood in our products, we are trying
to achieve a decent supply chain that is free fromnot only environmental problems but also childlabor.
FSC® certification (Forest Stewardship Council®)is an international forest certification system forforest products that are properly managed andprocured so that limited forest resources cancontinue to be used in the future.

Thinking about the Future of the Earth

COMANY has obtained COC certification (SA-COC-007857), and is striving to
use wood responsibly and contribute to the creation of an environment
where people can live better.

44

COMANY INC.

Integrated Report45

Chapter4

Toward a never-ending Journey
Our At titude for Continuing the JourneyWith the belief that "a company should exist to contribute to theworld's happiness," we continue to strive to be a trustwor thy
company. Together with all of our stakeholders, we will build asustainable future based on coexistence and co-prosperity withsociety as a whole.

46

COMANY INC.

Integrated Report47

Four product development
concepts and design thinking

P u t t ing Cu s t om e r Fir s t

Based on the technological know-how
we have cultivated over the years,
we are developing products thatprovide value that will impress ourcustomers based on the four conceptsof "safety and security," "quality
and function," "environmental andsocial contribution," and "dignity andcomfort.″To contribute to the 17 goalsof SDGs, we have drawn up a visionof what we should achieve in 2030,
and are working on R&D and business
operations by clarifying issues tobe addressed through backcasting(thinking backwards). In order torealize these goals, we are promoting

Remote cabin created throughagile development

Keep creating new value through technology
and design thinking

One of the spaces being created in
response to the changes in work
styles caused by the corona outbreakis cubicle for solo work. Remote
Cabin is one of the products that help
reduce the risk of infection, makes it
easier to focus and more comfortable
to conduct online meetings.We
developed the remote cabin by anagile development approach, and it isstill being refined and improved. For
example, we made a cubicle for work

We strive to meet the real needs of our customers by creating value forspace through technology and design thinking. We also believe that thedevelopment, production, sales, and construction of safe, high-quality, andenvironmentally friendly products will increase customer satisfaction. We arefocusing on each of these initiatives and human resource development.

with a desk surrounded by ceilinglesspartitions in the first phase. Then, twomonths later, in the second phase,
we developed a bigger remote cabin,which can accommodate two people
for meetings. Finally, in the third
phase, we added a ceiling equippedwith a disaster prevention system,
as requested by many customers.
The product lineup includes "Comfort
Class," "Business Class," "First Class,"and "Remote Cabin Double." "Comfort
Class" is a cubicle at the lowest cost.
"Business Class" is a cubicle that allows
you to spread out many documents.
"First Class" is a cubicle that enables
you to focus on work for a whole day.
And "Remote Cabin Double" is a larger
cubicle available for small meetings
with another member. Customers canchoose from any of these types with theceiling open or closed, allowing themto flexibly set up the space according totheir workplace and purpose. Besides,
Health Bright Evolution® (antibacterial
and antiviral coating) is applied at thetime of assembly and construction as ameasure against infectious diseases toprovide a high value-added space.

Realizing COMANY philosophy by management with the value of design at the centerof business strategy
For the past few years, I havebeen discussing design thinking
and design-driven managementwith COMANY. Peter Rowe's"Design Thinking" is one of theearliest documents on design
thinking released in 1987.
It talks about the importance of
how designers approach userneeds. Partitions are products
closest to the end-user in thebuilding industry. Therefore, we
believe that product and service
development using design
thinking is very effective.
Mr. Masaya Shioura,Architect&President, SCAPE inc.

48

COMANY INC.

Besides, design-driven
management is a management
approach that started receiving
attention in Japan due to therelease of "Design-Driven
Management" by the Ministryof Economy, Trade and Industry

in 2018. It places the valueof design at the center ofthe management strategy.
As a result, not only productdevelopment but also internal
knowledge assets and even
employee behavior can beformalized (designed) to pursue
the realization of COMANY's
philosophy. COMANY has an open
corporate culture, and everyone
there has intense curiosity. I
hope that COMANY will develop
products that people genuinely
want and become a company
that people wish existed.

Working outdoors as an option for new
working styleCreating a safe space for changing clothes
and breastfeeding in evacuation centers

A variety of droplet infection prevention partitions

As remote work becomes popular, we have started todevelop "Mile," a kit for working outdoor, as one more
option for workstyle.

We developed a cubicle for the evacuation centerin collaboration with the Kanazawa Institute ofTechnology to make the evacuation center moresecure.

In the past year, we developed several variations ofpartition for preventing droplet infection in responseto the COVID-19.

Joint development of BIM data for
restroom spaces
We aim to reduce the time and effort of designers andcontribute to solving problems in the constructionindustry. We have worked with LIXIL Corporation toprovide BIM data, including toilet cubicles and sanitaryfacilities.

Online Conference "Technology WEEK"
It was an online event for construction, development,
design, and manufacturing departments to shareand discuss their daily efforts to enhance COMANY'stechnological capabilities.

are now available through speedy development"Construction festival 2022"
We have held an online construction conference
to view the technology and history of COMANY'sconstruction. We envision the world of 2030 together
with our construction partners.

Integrated Report49Conducting supplier satisfaction surveys and regular interviews

Par tner ships with Supplier s

To build a better relationship with our suppliers, we conduct a "Supplier Satisfaction Survey." We see thesatisfaction survey as an evaluation of our daily activities and an expectation of our company. Aiming to
improve satisfaction, we collect a wide range of opinions and requests for future improvements. In addition
to regular interviews, we continuously conduct surveys, confirmations, and enhancements to build long-term
relationships of trust with our business partners and solve problems.

Improvement activities in response to requests
from suppliers
The issue that our customer frequently requested for
improvement in the Supplier Satisfaction survey isdelivery time. In response to the problems related tothe delivery time, we have picked up items that requirea lead time and have a high risk of shortages and delays
in delivery. In addition, we have set up a system for
informal ordering in cooperation with relevant internal
departments. In the future, we will increase the numberof target products and continue to solve issues related todelivery.

Building a Sustainable Coexistence andProsperity Relationship (Supply Chain)with Suppliers

Improvement of shop drawings
We are committed to ensuring that the shop
drawings we send to our suppliers are error-free andeasy for them to receive. We improved the quality of
pictures by conducting interviews and reducing thenumber of incomplete or unclear drawings. Besides,
we work with our suppliers to digitize our products
to request production using 3D CAD drawings.

Improvement activities through collaborative
We believe that coexistence and co-prosperity with our
suppliers will foster mutual growth and development
while achieving peak performance. Therefore, we work
together with our suppliers to make improvements
through manufacturing. Through study sessions such astechnology enhancement sharing meetings, we work tomaintain and continue the quality and promote efficientmanufacturing.

We value the relationship of coexistence and co-prosperity with ourpartners fostering mutual growth. We aim to build a sustainable supply
chain to conduct fair and equitable procurement activities and procurematerials that consider the global environment and human rights.

Working together with partners to address global environmental issues
Recently, we have heard the term
SDGs and SBT more frequently
than ever. I was vaguely aware of
the importance of these initiatives
when I heard about the SDGs from
COMANY. When I thought about
our company's efforts, I had avague idea of what we should do
and what we could do regarding
the SDGs.

Mr. Shigeo Masui,
President and Representative Director,
KINMATSU Co., Ltd.

50COMANY INC.

SBT was also a high goal for us,
and we were not sure whereto start or how much we could
do. However, after listening to
COMANY's ideas and approaches
to the SDGs and SBT andwitnessing the disasters causedby climate change every year, I
had got some ideas. I realizedthat each of us should be awareof our role as a concerned party.

And companies should cooperate
to address global environmental
issues as soon as possible.
From now on, Kinmatsu will
examine what we can do for the
global environment internally.
We will also set a target forCO2 emission reduction, and all
employees will work together toachieve the target. Furthermore,
we will promote SBT activities
in cooperation with our partner,
COMANY.

Efforts to achieve SBT certification
SCOPE4
To achieve SBT's SCOPE3 goals, we have been getting
our suppliers to agree to engage with us since fiscal
2020.

Declaration of Partnership Building
In support of the "Declaration on Partnership Building"organized by the Ministry of Economy, Trade andIndustry, and other organizations, we aim to build
relationships of co-existence and co-prosperity withour business partners.

Increasing dialogue through supplierexchange meetings
We hold supplier exchange meetings as a platform fordeepening mutual exchange, including reporting on
supplier satisfaction surveys and sharing purchasing
policies.

千島海流

南海トラフ地震
日本海溝

首都直下地震

中部圏・近畿圏直下型地震

西日本エリア
東日本エリア

相模トラフ沿いの
海溝型地震

南海トラフ
海溝型地震
直下型地震

主要調達品（12品目）に関しては、東西両エリアからの複数購買としている

Mutual learning through technology
improvement sharing sessions

Understanding the current situation
through supplier surveys

BCM (Business Continuity Management)
Initiatives

We hold technology improvement sharing sessions
with our suppliers to strengthen our cooperation
system and solve problems to improve technology andadd value.

Following the COMANY Group Human Rights Policy,
we use supplier surveys to assess the status of humanrights, labor, the environment, and anti-corruption.

We are working on BCM (Business Continuity
Management) to ensure stable supply to ourcustomers in the event of natural disasters and otheremergencies.

Integrated Report51

Achieving ambitious goals

Coe xis tence with the Global Environment

Obtaining SBT certification
In April 2020, COMANY obtained certification from the SBT Initiative. We have set
goals to reduce our Scope 1+2 carbon dioxide emissions by 50% by 2030 compared
to 2018 levels. In addition, we assess a target for suppliers equivalent to 80% of
our Scope 3 Category 1 carbon dioxide emissions by 2024. Those are "1.5°C level"
to keep the temperature increase from pre-industrial times to less than 1.5°C.

Reducing carbon dioxide emissions
To achieve the SBT target, each section, led by the Environmental Conservation
Committee, is engaged in activities to reduce energy consumption derived fromfossil fuels.
This fiscal year, we introduced FEMS to promote loss improvement by visualizing
energy use. With the introduction of this FEMS, we will use this system in the future
to understand the actual status of energy use. Based on this information, we will
promote reliable and highly effective energy-saving improvements and expand
the effects of reducing carbon dioxide emissions.

Setting and Promoting Ambitious Goals
for Climate Change Mitigation and
Decarbonization
In recent years, it is observable that the frequency and intensity of
weather disasters such as heatwaves and torrential rains have been

Expanding the use of renewable energy

increasing. As a result, it is becoming increasingly important for

We are expanding the use of renewable energy sources. As the first organization to join
the Renewable Energy 100 Declaration RE Action, established in 2019, we are committed
to using 100% renewable energy by 2040. Thus, to achieve this commitment, we havestarted operating a PPA-based solar power generation system for our consumption thisyear.Besides, we already have about 1MW of FIT-based solar power generating systems inoperation. We plan to switch the electric power selling to self-consumption in the future.
Furthermore, in July 2021, we responded to the CDP Climate Change Questionnaire forthe first time, a survey conducted by the international NGO CDP. We will strengthen our
climate-related disclosure by replying to the CDP in compliance with TCFD.

companies to take action against climate change. At COMANY, we believethat corporate should conduct activity in harmony with the global
environment. Therefore, we strengthen our efforts to mitigate andadapt to climate change.

Companies are now being tested on their seriousness to adress climate change.

Mr. Shuichiro Suzuki,
Representative Director, Wastebox Co. Ltd

In recent years, the Japanese
government has declaredcarbon neutrality, and many
companies have been steering acourse toward decarbonization.
However, COMANY was among thefirst to implement sustainability
initiatives. Our efforts with
COMANY started three years
ago, in 2019, when we started
tracking Scope 3 emissions.
The Company had alreadyincorporated the SDGs into its
management practices at thattime. Then, however, it decided
to grasp the emissions in the
supply chain (Scope 3) and set SBT
targets (at the level of the Paris
Agreement) to make the processeven more concrete. As a result,in April 2020, COMANY received
SBT certification, making it one of
the most advanced companies inJapan to address climate change.
In particular, "emissions frompurchased products" account for

52

COMANY INC.

the most significant portion of
COMANY's supply chain emissions.
For this reason, COMANY has
started to encourage its suppliers
to set reduction targets at the SBTlevel to reduce these emissions.
This approach to supplierengagement is progressive. Many
top companies are now starting tovisualize and reduce their supply
chain emissions. This trend will
no longer stop because it tests
companies on how they impact
society and how serious they areabout combating climate change.
Furthermore, decarbonization
is becoming commonplace inbusiness in a world undergoingclimate change. In this context,
I feel that COMANY is always
practicing sustainabilityconscious management.

Energy-saving activities in the Group
Company

Switching to Environmentally Friendly
Packaging Materials

Cluster Inc. is one of our group companies mainly
producing wood products. It works to meet its CO2
emission reduction targets by promptly conserving
energy and improving production efficiency to achieve
the targets.

We have announced a switch from shrink film used
for product packaging to environmentally friendly
polyethylene derived from sugar cane with 20%
biomass content in our manufacturing activities.

Participating in the 19th Conference on
Global Warming

Received four-star rating at Nikkei"SDGs Management"

Launched products to improve air
conditioning efficiency in data centers

In December 2020, the Chubu Regional Environment
Office of the Ministry of the Environment held the "19thConference on Global Warming" online, and COMANY
presented a case study of its initiatives.

In the 2020 Nikkei "SDGs Management" survey, COMANY
received a four-star rating for its efforts to solve social,economic, and environmental issues through its
business by linking the SDGs to management.

We launched C-POD, a ceiling-mounted hot air
containment system that improves the air conditioning
efficiency of data centers. It is a product to facilitate theoptimization of airflow in data centers.

Reducing industrial waste
We are working to reduce industrial waste by 20% ,mainly from manufacturing and construction, and toachieve a 100% recycling rate by 2030.

Integrated Report53

Aiming to be a company for all
employees to work with vigor andenthusiasm

Cr ea t ing a wor k pl ace t ha t r e s pec t s h umani t y

Toward the realization of each
employee's well-being

With the recent concern about the decline in theworking-age population, our primary growthstrategy is to respect diversity and create anenvironment enabling employees to demonstrate
their individuality. Therefore, we promote diversity
and inclusion (D&I) based on this recognition.
We strive to create an organization that allows
individuals to demonstrate their diverse abilities
and individuality through measures. For example,
we encourage the active participation of female
or senior employees and expand the employmentof persons with disabilities and foreign nationals.
Furthermore, we will develop a workplaceenvironment and systems to balance work withchildcare and nursing care. Not only the efforts andingenuity of each individual, but we also focus on
education to deepen the understanding of superiors
and coworkers and provide support throughout theworkplace.

(physical, mental, and social well-being)

We aim to create a work environment for all employees to play aleading role and feel motivated to work and grow. Thus, we respect
the humanity of each employee and strive to create systems thatprovide opportunities for their full utilization. In addition, we will
also create an organizational climate allowing them to always
work with a positive outlook.

Human development for the mutual growth of
employees and the company
Since our establishment, we have managed ourbusiness with respect for humanity, valuing the"human spirit" above all else. We are actively
developing educational opportunities to enhance
our philosophy following the spirit of "humanity
and fraternity" and the skills to contribute to society
through this philosophy. We introduced the HPC
system (developed by GAIASYSTEM Co., Ltd.) for
philosophy education. It enables heart-to-heart
dialogue and creates a corporate culture where
employees are connected in solid relations oftrust and can exercise autonomy and initiative. All
employees take the philosophy training every year.
In fiscal 2020, we conducted a total of 36 sessions
online for the first time.

On March 8, International Women's Day, we heldan event to think about D&I, which provided an
opportunity to understand D&I and recognize
unconscious bias.

Taking matanity leave motivates efficient working style

Kohei Nishitani

Information Systems Section I

Information System Department
We have been certified by the
Ministry of Health, Labor and Welfare
as a "company supporting childcare"following the Act on Advancementof Measures to Support Raising
Next-Generation Children and haveacquired the "Kurumin" mark.

54

COMANY INC.

When I found out that my wife
was carrying twins, I was worried
that I would not be able to raise
two children at the same time
while working. I couldn't rely on
my parents because they were
far away and caregiving at home.
Besides that, the COVID-19, which
kept people apart, added to myworries. In this situation, I could
not burden my wife alone. Finally,
I mustered up the courage toconfide in my boss that I wanted
to take maternity leave and leave
the work of my own volition.
At first, my boss was surprised.
There was no precedent for the
person in charge to leave the job
for an extended period. In theend, however, he encouraged me
to take maternity leave, saying,"We will follow up as a team sothat you can focus on childcare."I can't thank my supervisor andcolleagues enough.
Giving birth to the twins naturally
seriously damaged my wife's
body as she had experienced a car
crash. For my wife to concentrateon her recovery, I made use of
all my experience in quality andproductivity improvement. I
analyzed the causes of the twins'
crying and made improvements
to deal with it immediately. This
experience has been reflected in
my work and has helped improve
operations. As both a father
and a person in charge of myjob, maternity leave has led toremarkable growth.

Promoting gender equality andwomen's activities
To promote gender equality and women's
empowerment, we signed the Women's Empowerment
Principles (WEPs) in January 2021.

Well balanced work and private life
In March 2021, we were commended by the governorof Ishikawa Prefecture for promoting work-lifebalance and were certified as one of the "Companies
Supporting Father in Child-rearing in Ishikawa
Prefecture."

Certification of "Health & Productivity
Management Outstanding Organizations 2021"
In recognition of our health and productivity management
initiatives, we were certified as one of the "Health &Productivity Management Outstanding Organizations 2021"
jointly selected by the Ministry of Economy, Trade and Industry
and NIPPON KENKO KAIGI.

Improving health through excersise
routineTo promote employees' health, we designed a "Health
Promotion Month" program. We encouraged themto continue exercising by measuring the amount of
exercise and motivated them to compete in four
different categories.

Education to acquire specialized skills
In addition to technical training and development,
we also use e-learning to pass on and accumulate ourknow-how.

Introducing the "Employment System
for Senior Employees
We abolished the mandatory retirement age systemand established the "Employment System for Senior
Employees" to realize a new working style after 65.

Integrated Report55

Valuing the "Willingness" of Employees

Social Contribution Ac tivities

What we value in our social contribution activities
is the "initiative" of our employees. We place
importance on doing what we genuinely want to
do for the benefit of others, rather than just doing
what we are told to do. One of the characteristics of
our social contribution activities is that we can see
each other's faces. We have participated in various
activities at local welfare facilities such as in disasteraffected areas and Cambodia. We visited the sites
directly and interacted with the people in needthrough dialogue in all cases. These experiences
have led to ongoing and more developed activities.

Thinking about what we can do to enhance
our contributions beyond our businessactivities
We believe that as long as our employees act honestly on their conscience,
they will help many people. It will broaden our horizons and support ourbusiness activities. To build a bright future for the future, we will expand ourcircle of activities in the region, Japan, and the world and contribute to thehappiness of the world through solving various problems.

having fun. It is an event for the fun of visitors andthe employees who run the event. The employees
enjoyed planning the activity while making
visitors happy. We used the donations and sales ofgoods gained from the event to support variousorganizations. Thanks to eliminating distanceconstraints due to the online event, we interactedwith local children of the support project for
Cambodia. We also received messages from regions
connected through past support. Besides, the online
event made it easy for participants to get involved
from anywhere. Thus, the total amount of donations
and sales was the highest in the history of COMAFES.

Online charity events made possible
due to COVID-19
We believe it is essential for industry, government,
academia, and the private sector to join hands indeveloping the region. Therefore, we are deepening
our ties by setting up opportunities for exchange
and actively participating in events hosted by
local governments. For example, the charity event"COMAFES" is held every summer and we have got
many attendants every year. This year's event washeld online because of the COVID-19. The theme ofthis charity event is "contributing to society while

A chance meeting lead to start of Komatsu Children's Cafeteria

Ms. Fumi Hino

Representative,Komatsu Children's
Cafeteria

56

COMANY INC.

I had the opportunity to present
a different project at the UE-Caféheld in August 2018. KomatsuChildren's Cafeteria" was born inno time after that chance. Three
years have passed since then.
Currently, the cafeteria has grown
to nine locations in Komatsu City.
Since the program's start,
COMANY has provided us withmonthly financial support, whichis the biggest problem whenholding the program. Besides
that, they have also collectedsurplus food for us from theiremployees, directly participatedin the cafeteria as volunteers,and sometimes even gave me ahelping hand. All our staff and I
can't thank COMANY enough fortheir support. The term "social
contribution" and "volunteering"
may sound like an easy job,
but it is not. However, seeing
the employees of COMANY takethe initiative in conducting thevolunteer work with harmonious
teamwork impressed me greatly. I
hope to see many more Japanesecompanies learn from COMANY
as a model case and involve in
the activities. I believe that much
more charity work we can dohand in hand precisely as private
sectors.
I look forward to cooperatingwith COMANY again in the future.

UE-Café @ Komatsu

Peace Flame Movement

Support for Cambodia

We held UE-Café@Komatsu regularly every year as aplatform for local communities, students, citizens, andcompanies to interact regarding social contribution
and volunteer activities. We had the event online thisyear due to the COVID-19.

We light the remaining flame of the atomic bomb andthink about peace every year in this event. We held
online this year to learn and talk about peace andcreate opportunities for participants to take action for
the future.

To create an environment for the children in villagesof Cambodia to expand their potential, we collected
donations from our employees and built a computerclassroom.

A local beach cleanup effort by new
employees

Donation of KAKOU

Conducted SDGs Class for Junior HighSchools

Our new employees have learned about marine
pollution caused by microplastics. Therefore, theyplanned activities themselves and took action to clean
up the sea surrounding Ishikawa.

KAKOU is a product for home use developed during
the COVID-19 pandemic. Since KAKOU is easy to carry,
we donated it to evacuation centers supporting thetorrential rain in July 2020.

Not only did we introduce COMANY's activities, but wealso held classes that will lead to the future. We hopethat the next generation can understand the SDGs
correctly and take action.

Integrated Report

57Corporate GovernanceOur primary corporate governance policy is to increase corporate value based on our management philosophy, improve efficiency,
and enhance fair and prompt decision-making. We will continue strengthening our corporate governance, recognizing theimportance of enhancing management oversight functions and legal compliance systems to ensure sound and transparent
management.

Ef for ts to ensure the ef fectiveness of the Board of Directors and Board of Corporate Auditors

The structure of corporate governance
General Meeting of Shareholders
Appointment/ dismissal

Appointment/ dismissal

Appointment/ dismissal

Accounting audit

Audit
Board of Directors(including outside directors)

Remuneration
Advisory Committee

ReportReportReportBoard of Managing directors

Nomination
Advisory Committee

Representative Director, President & CEO

Instructions
Instructions

ReportInstructions

COMANY GroupManagement Conference

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The appropriate executive officers
Instructions

ReportInstructions

Compliance and Risk
Management Committee

ReportSustainability
Management Promotion Committee

Group Company

Each businesssectorReport(Subsidiaries)(Affiliates)

Reward and Punishment
Advisory Committee

Internal Audit

Internal Process Audit Department

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Coordination

Audit

Coordination

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Supervision

Cooperation

Board of Directors
U n d e r t h e in t e r nal r u l e s o n m a t t e r s t o b ereported, the Board of Directors resolves basic
policies regarding the Company's management.
In addition, it receives reports on the status of
the execution of essential operations. The Boardof Directors meets once a month in principle andas needed and held 17 times during the fiscal
year under review. We set the term of office of
Directors at one year to build a management
system that can respond quickly to changes inthe business environment.
Advisor y bodies of the Board of Direc tor s
The Remuneration Advisor y Commit tee
deliberates on the remuneration of officers in
response to inquiries from the Board of
Directors. The Nomination Advisory Committee
deliberates on the personnel affairs of officers
in re sponse to inquir ie s f r om t he Board of
Directors and reports to the Board of Directors. It
ensures objectivity and transparency in thesematters and strengthens corporate governance.
The Remuneration Advisor y Commit tee met
seven times in the fiscal year under review. The
Nomination Advisory Committee met five times.
Corporate Auditor s(Board of CorporateAuditor s)
The corporate auditor s at tend the Board of
Directors meetings and other essential meetings
following the audit policy and the division of

58

COMANY INC.

The board of directors currently consists of eight directors and four corporate auditors. In addition, three are outside directors, andtwo are outside corporate auditors. The Company believes that ten or fewer directors are appropriate to enable more substantive
discussions at the Board of Directors meetings.
Candidates for Directors were selected by the Board of Directors after deliberation by the Nomination Advisory Committee, basedon the criteria for selecting candidates. The requirements include candidates' knowledge, experience, and ability to enhance
the Company's corporate value. We disclose the reasons for the selection in the notice of convocation of the General Meeting of
Shareholders.
The status of critical concurrent positions held by Directors and Corporate Auditors is disclosed annually in the Business Report in thenotice of convocation of the General Meeting of Shareholders.

Self-evaluation of the Board of Directors

The Company conducts an annual "Self-evaluation of theBoard of Directors" by the Directors and Corporate Auditors
themselves to collect and confirm opinions concerning theoperation of the Board of Directors. The yearly self-evaluation
leads to improvements through discussions on highly
effective procedures. It also leads to the proper growth anddevelopment of the Company and an increase in corporate
value.

Self-evaluation of the Board of Corporate Auditors

The Board of Corporate Auditors also conducts a "Selfevaluation of the Board of Corporate Auditors" yearly. Basedon the evaluation results, the Board of Corporate Auditors
strives to improve its functioning by reflecting the results aspriority items in the audit plan.

Board of Managing Direc tor s
Based on the basic management policy decided
by the Board of Directors, the Board of Managing
Directors deliberates on importantmanagement matters, including matters to be
discussed at Board of Direc tor s meetings inadvance and matters delegated by the Board of
Directors to the President and Chief Executive
Officer as an advisory body to the President andChief Executive Officer. In principle, the Board ofManaging Direc tor s meeting is held once a
week.

Management Conference

The representative Director, Kenta Tsukamoto,chaired the conference. Meanwhile, theexecutive of ficers, direc tors of consolidated
subsidiaries, and managers of related divisions
attended the meeting. The committee strives toshare management policies and medium- tolong-term strategies throughout the Company. It
leads to decision-mak ing t hat c an respondquickly to changes in the business environment.

Compliance and Risk
Management Committee
The Group has established the Compliance andRisk Management Commit tee, which mee t smonthly to deliberate on compliance-related
measures and risk management measures. In
addition, selec ted member s from domes tic
subsidiaries to par ticipate in this commit tee
every quarter to reduce the Group's key risks.
Sustainabilit y Management Promotion
Commit tee
Chaired by the representative, Director Kenta
Tsukamoto, the committee meets twice a year. It
makes s trategic decisions and promotes the"Comany SDGs ∞ (Mobius) Model." The Comany
Group aims to deploy the model sustainably andpr om o t e " F inan c ial v s . Non -f inan c ial" an d"Product & Service vs. Governance" in a way thatgenerates synergy.

•

•
•

•

•

•

COMANY Group
duties. They also hear reports from directors ont heir du t ie s ' s t a t us an d in spe c t impor t an t
approval documents. Moreover, they investigate
the quality of operations and assets at the head
office and principal business offices and request
business reports from subsidiaries as necessary.
In addition, the Board of Corporate Auditors
collects information on competitive transactions,conflict-of-interest transactions, and benefits
without compensation furnished by the Company
to Direc tor s and conf irms the s tatus of suchtransactions.
The Board of Corporate Auditors meets monthly
before the Board of Directors meetings and holds
extraordinary meetings as necessary. The Boardof Corporate Auditors met 18 times during the
fiscal year under review.

<Summary of the results of the self-evaluation of theBoard of Directors>

Message from Outside Director:

T he Board of Directors is appropriately composed of directors
and ‌corporate auditors with diverse knowledge and experience,
including three independent outside directors and two
independent outside corporate auditors.
The content of deliberations is reviewed in advance through theearly delivery of materials for board meetings.
To promote understanding of the Company among newly appointed
directors and auditors, the Company has implemented education
programs routinely.
To strengthen the supervision of business execution, Directors
should express opinions more actively and hold discussions in ameaningful manner.
The Company should secure sufficient time for deliberations toenhance discussions on basic management policies, medium- tolong-term management strategies, and management issues.
The Company should provide education and training on an ongoingbasis to deepen awareness of the roles and responsibilities of
directors and corporate auditors.

Aiming to Promote Sustainabilit y Management and D&I

Since assuming office in 2019, I have continued to support and advise creating a new corporate
culture at COMANY. These include the launch of the Sustainability Management Promotion
Committee and the D&I Promotion Subcommittee. My role is to assist COMANY in enhancing
its corporate value and achieving sustainability in the medium to long term. I am particularly
conscious of always providing different perspectives and encouraging essential discussions.
At present, COMANY is vigorously promoting D&I. However, we are still in the middle of theroad, and I am the only woman on the board. The homogeneity of an organization makes it
difficult for employees to state dissenting opinions. It also leads to unconscious biases such as
Miki Yoshimura"normality bias" and "synchronicity bias." "Normality bias" tends to ignore or underestimate
Outside Director
information that is inconvenient to oneself.
In contrast, "synchronicity bias" tends to think that acting the same way as others is safe.
Therefore, to enhance the effectiveness of corporate governance and enable multifaceted discussions on various
management issues, I will continue to monitor COMANY's management with a strict eye. I will also support the "challenge
for change" that has continued since last year.

Integrated Report59

DATA INDE X

60

COMANY INC.

Integrated Report61Officers(As of September1, 2021)

1 Mikio Tsukamoto

5 Naoyuki Tsukamoto

9 Hideaki Kitamura

Apr. 1973 Joined Komatsu Partition Industry Corp.
(Currently the COMANY INC.)
Oct. 1978 Assistant manager, Production Control Department,
COMANY INC.
Feb. 1980 Director, COMANY INC.
Aug. 1980 Managing Director, COMANY INC.
Jul. 1982 Senior Managing Director, COMANY INC.
Mar. 1984 Representative Director, Senior Managing Director,
COMANY INC.
Jun. 1987 Vice President, Representative Director, COMANY INC.
Oct. 1988 President and Representative Director, COMANY INC.
Jun. 2005 President and Chief Executive Officer, Representative
Director, COMANY INC.
Jun. 2014 President and Chief Executive Officer, Representative
Director, COMANY INC.
Jun. 2019 Chairman, Representative Director, COMANY INC.
(Currently in office)Mar. 2004 Joined STANLEY ELECTRIC CO., LTD.
Jun. 2007 Joined COMANY INC.
Jul. 2007 Temporary transfer to TOYOTA MOTOR CORPORATION
Apr. 2010 Section chief, Manufacturing Administration Division,
COMANY INC.
Jul. 2011 Section Chief, Manufacturing Planning Section,
Manufacturing Administration Division, COMANY INC.
Jan. 2013 Manager, Corporate Planning Division, COMANY INC.
Jun. 2015 Executive Officer, COMANY INC.
General Manager, Management Headquarters, COMANY INC.
Apr. 2016 General Manager, Corporate Planning Division, COMANY INC.
(Currently in office)Jun. 2018 Managing Executive Officer, COMANY INC. (Currently in office)Jan. 2019 Division Director, Southeast Business Division, COMANY INC.
Apr. 2020 General Manager, Research and Development Division,
COMANY INC.
Jun. 2020 Director, COMANY INC. (Currently in office)Apr.2021 General Manager, Corporate Planning and Development
Headquarter, COMANY INC.(Currently in office)Mar. 1972 Joined Komatsu Partition Industry Corp.
(Currently the COMANY INC.)
Feb. 1997 Manager, Management Information Systems Division,
COMANY INC.
Jul. 1997 Manager, Business Administration Division, COMANY INC.
Apr. 2005 Manager, Accounting Division, COMANY INC.
Oct. 2013 Advisor to Accounting DivisionJun. 2015 Full-time Auditor, COMANY INC. (Currently in office)Representative Director, Chairman of the Board

2

Kenta Tsukamoto

Representative Director, President and Chief
Executive Officer

6 Miki Yoshimura
Outside Directors

May 2006 Joined KYOCERA Communication Systems Co., Ltd.
May 2009 Joined COMANY INC.
Apr. 2010 Manager, Business Administration Division, COMANY INC.
Jun. 2011 Director, Executive Officer, COMANY INC.
Jul. 2011 Deputy General Manager, Administration Headquarters,
COMANY INC.
Manager, HPC Promotion Office, COMANY INC.
Apr. 2012 Deputy General Manager, Management Control
Headquarters, COMANY INC.
Jun. 2012 Managing Executive Officer, COMANY INC.
General Manager, Management Control Headquarters, COMANY INC.
Jun. 2015 General Manager, Sales Management Headquarters,
COMANY INC.
Jun. 2016 General Manager, Business Control Headquarters,
COMANY INC.
Jun. 2017 Senior Managing Executive Officer, COMANY INC.
Jun. 2019 President and Chief Executive Officer, Representative
Director, COMANY INC.

3

Director, Managing Executive Officer

Kozo Shinozaki

Director, Senior Managing Executive Officer

Apr. 1978 Joined Yamaha Motor Co.,Ltd.
Apr. 1999 Executive Vice-President, Siam Yamaha Co., Ltd(Currently the Thai Yamaha Motor Co.,Ltd.)
Apr. 2007 Manager, Finance Division, Yamaha Motor Co.,Ltd.
Mar. 2010 Director, Senior Executive Officer,
Chief Financial Officer, Yamaha Motor Co.,Ltd.
Mar. 2013 Director, Managing Executive Officer,
General Manager, Planning and Finance Headquarters,
Yamaha Motor Co.,Ltd.
Jan. 2014 Director, Managing Executive Officer,Yamaha Motor Co.,Ltd.
General Manager, Planning and Finance Headquarters,
In charge of two-wheel reform in developed countries,
Yamaha Motor Co.,Ltd.
Mar. 2017 Advisor, Yamaha Motor Co., Ltd.
Jun. 2017 Outside Director, COMANY INC.
Jun. 2019 Director, COMANY INC. (Currently in office)Senior Managing Executive Officer, COMANY INC.
(Currently in office)General Manager, Business Administration Headquarters,
COMANY INC. (Currently in office)Apr. 1995 International Exchange Director,
Tokyo Pacific Business College
Sep. 2001 Established Limited Liability M3(Currently the SDG Partners,Inc.)
Director, SDG Partners, Inc. (Currently in office)Nov. 2010 United Nations Office for Project Services Pakistan Office
Apr. 2011 United Nations Human Settlements Programme(UN-Habitat) Pakistan Office
Aug. 2013 Policy Recommendation Adviser, Save the Children Japan
Aug. 2014 Manager for private sector partnerships promotion,
United Nations World Food Programme (UN WFP) Japan OfficeJun. 2019 Outside Director, COMANY INC. (Currently in office)Outside Director, S. ISHIMITSU& CO., LTD (Currently in office)Mar. 2020 Director, SDG Impacts, Inc. (Currently in office)7 Takahiko Ijichi
Outside Directors

Apr. 1976 Joined Toyota Motor Co.,Ltd(Currently the Toyota Motor Corporation)
Jun. 2004 Managing Director, Toyota Motor Corporation
Jun. 2008 Senior Managing Director, Toyota Motor Corporation
Jun. 2011 Director and Senior Managing Officer, Toyota Motor Corporation
Jun. 2013 Advisor, Toyota Motor Corporation
President, TOWA REAL ESTATE CO., LTD.
Jun. 2015 Executive Vice President, Toyota Motor Corporation
Jun. 2017 Executive Advisor, Toyota Motor Corporation
Chairman and Representative Director,
Aioi Nissay Dowa Insurance Co., Ltd.
Jun. 2018 Resigned as Executive advisor, Toyota Motor Corporation
Jun. 2019 Resigned as Chairman and Representative Director,
Aioi Nissay Dowa Insurance Co., Ltd.
Jun. 2020 Outside Director, COMANY INC. (Currently in office)Outside Director, NAGASE & CO., LTD. (Currently in office)8 Seiu Okubo
Outside Directors

4 Takashi Higashiki

Director, Managing Executive Officer

3

11

7

9

4

2

62

COMANY INC.

10

5
1

12

6

8

Apr. 1988 Joined COMANY. INC.
Apr. 2005 Vice President, West Japan Branch, COMANY. INC.
Jul. 2008 Deputy General Manager, West Japan Sales Headquarters,
COMANY. INC.
Jul. 2013 General Manager, Tokai Sales Headquarters, COMANY. INC.
Apr. 2017 General Manager, Kansai Sales Headquarters, COMANY. INC.
Jun. 2018 Executive Officer, COMANY. INC.
Jan. 2019 Deputy General Manager, Sales Control Headquarters,
COMANY. INC.
General Manager, Tokyo Sales Headquarters(Currently in office)Jun. 2019 Managing Executive Officer (Currently in office)Jun. 2020 Director, COMANY. INC. (Currently in office)Apr. 1978 Joined Fuji Boseki Kabushiki Kaisha.
(Currently FUJIBO HOLDINGS INC.)
May 2006 Director,Yanai Chemical Industry CO.,LTD.
Feb. 2009 Manager, Legal Department, FUJIBO HOLDINGS CO.
Apr. 2014 Executive Officer, Manager of Legal Department,
Chairman, Compliance Committee, FUJIBO HOLDINGS CO.
Jun. 2014 Director, Senior Executive Officer in charge of Legal
Department, Internal Audit Department, General Affairs
Department and Human Resources Department, Chairman,
Compliance Committee, FUJIBO HOLDINGS CO.
Jul. 2017 Managing Executive Officer in charge of Legal Affairs
Department, Human Resources Department, General Affairs
Department and Internal Audit Department, Chairman,
Compliance Committee, FUJIBO HOLDINGS CO.
Jul. 2018 Senior Advisor in charge of Legal Department,
Human Resources Department and General Affairs
Department, FUJIBO HOLDINGS CO.
Jul. 2019 Advisor in charge of Legal Department and General Affairs
Department, FUJIBO HOLDINGS CO.
Jun. 2020 Resigned as Advisor, FUJIBO HOLDINGS CO.
Jun. 2021 Outside Director, COMANY INC. (Currently in office)Full-time Auditor

10 Masahiro Motoda
Full-time Auditor

Apr. 1982 Joined Komatsu Partition Industry Corp.
(Currently the COMANY INC.)
Apr. 1998 Manager, President's Office, COMANY INC.
Apr. 2002 Manager, Group Planning Division, COMANY INC.
May 2004 Manager, General Affairs Division, COMANY INC.
Jun. 2008 Executive Officer, COMANY INC.
Jul. 2008 Manager, General Affairs and Human Resources
Division, COMANY INC.
Apr. 2012 Manager, Human Resource Division, COMANY INC.
Jun. 2015 Director, COMANY INC.
Managing Executive Officer, COMANY INC.
General Manager, Management Control Headquarters,
COMANY INC.
General Manager, General Affairs Headquarters, COMANY INC.
Jun. 2019 General Manager, General Affairs Control Headquarters,
COMANY INC.
Jun. 2020 Full-time Auditor, COMANY INC. (Currently in office)

11 Tetsuo Matsugaki
Outside Auditors

Apr. 1976 Joined Toa Nenryo Kogyo K.K.
(Currently theENEOS Corporation) "Jul. 2000 Joined Nikko Securities Co., Ltd.
(Currently the SMBC Nikko Securities Inc.)"
Dec. 2000 Manager, Legal Division, SMBC Nikko Securities Inc.
Aug. 2004 Outside Auditor, Monex Beans Holdings, Inc.
(Currently the Monex Group, Inc.)
Jun. 2006 Audit Mission Director, Nikko Cordial Corporation
Jul. 2008 Executive Vice President, Citibank Japan Ltd.
General Manager, Finance and Planning Headquarter,
Citibank Japan Ltd.
Jan. 2012 Executive Officer, Citibank Japan Ltd.
Co-director, Business Strategy and Planning Division,
Citibank Japan Ltd.
Jun. 2015 Advisor, Citibank Japan Ltd.
Outside Auditor, COMANY INC. (Currently in office)Nov. 2015 Advisor, Prestia Business Division, SMBC Trust Bank Ltd.
Jul. 2016 Advisor, Individual Financing Department andCompliance Department, SMBC Trust Bank Ltd.

12 Tatsuhiko Kamata
Outside Auditors

Oct. 1988 Joined Tohmatsu Awoki & Sanwa(Currently the Deloitte Touche Tohmatsu LLC)
Jun. 2005 Partner, Tohmatsu & Co.
(Currently the Deloitte Touche Tohmatsu LLC)
Aug. 2018 Representative, Kamata C.P.A Office (Currently in office)Jun. 2019 Outside Auditor, COMANY INC. (Currently in office)Outside Director, REALGATE INC. (Currently in office)Oct. 2019 Outside Auditor, PLANET,INC. (Currently in office)Jun. 2020 Part-time Auditor, TriValue Inc. (Currently in office)Jul. 2020 Representative partner, TKM Management LLC(Currently in office)Aug. 2021 Part-time Auditor,RESIDENTIAL REAL ESTATE INC.
(Currently in office)Integrated Report63Performance Highlights

Occurrence of Industrial Accidents (non-consolidated)
18

Operating profit

Net sales

1,169(million yen)

28,812

25.4%

Operating profit margin(million yen)

4.1%

Fiscal year ending March 31, 2021 (Consolidated)

16

Market share

14(Based on FY2020 sales by Japan
Movable Partition Association )Fiscal year ending March 31, 2021 (consolidated)

20

Number of cases in manufacturing sector
Number of cases in non-manufacturing sector

Number of lost-worktime injuries

10

9

8

3

Number of employees

62.9%

Average age

1,252

Fiscal year ending March 31, 2021 (consolidated)

40.6yerage age

As of March 31, 2021 (consolidated)

As of March 31, 2021 (consolidated)

20(Cases)CO₂ emissions

Patent acquisition

45.6%

4,375

36patents

As of March 31, 2021 (consolidated)

As of July 31, 2021 (consolidated)

Percentage of employees engaged in technologyrelated work among all employees*Total of patents, utility models, and designs

Comprehensive evaluation: NPS

10

12
9
Not
implemented

50

The NPS stands for Net
Promoter Score, an index
that quantifies customer
loyalty (the degree ofattachment to and trust in
a company or brand). We
use this NPS to evaluate
our customers
comprehensively.

15.8

15

FY2017FY2018FY2019FY2020CO₂ emissions (non-consolidated)

Emission
排出量

Percentage
割合

FY20192019年度Amount of change
増減量Year-on-year
前年比

Emission
排出量

Percentage
割合

Amount of change
増減量

FY20202020年度Unit:t-CO2

Scope1 Scope1 Scope2Scope2 Scope3Scope3

Emission
排出量
FY20182018年度(SBT baseyear) Percentage
（SBT
基準年）
割合

Year-on-year
前年比

SBT 基準年比Compared to SBT base year

1,985.20
1,985.2
2.70% 2.7%
2,162.60
2,162.6
2.40% 2.4%
177.5 177.5
108.90%108.9%
1,852.80
1,852.8
3.00% 3.0%

3,010.00
3,010.0
4.10% 4.1%
2,636.70
2,636.7
2.90% 2.9%
-373.3 -373.3
87.60% 87.6%
2,522.50
2,522.5
4.10% 4.1%

68,875.30
68,875.3
93.20%93.2%
87,091.70
87,091.7
94.80%94.8%
18216.4
18216.4
126.40%126.4%
57,219.80
57,219.8
92.90% 92.9%

8685.67% 85.7% 95.67% 95.7% 65.70% 65.7%
93.33% 93.3% 83.80%83.8% 83.08% 83.1%

100

0
(%)

64

39.8

40.5

FY2016FY2017COMANY INC.

42.2

FY201848.5

FY2019

11

4

3

3

11

FY20155

3

2

FY2016FY2017FY2018FY2019FY2020

Plan
20.0
15.3

15

Number of issues resolved with business partners(non-consolidated)
40

Issue resolving ratefrom April 2019 toMarch 2020: 87.2%

30

10
0

Issue resolving
rate: 87.5% from
April 2020 to March

39

34

24

21

Number ofissuesNumberof issues
resolved

Number ofissuesNumberof issues
resolved

50.7

Plan
60.0

2,175

2,313

2,180

FY2021

FY20302,068

consolidated)

35

Female employees (persons)Target30.0

Male employees (persons)

163
158

159

16.6

16.7

176

210

193

FY2019FY2020

FY202189.4

FY2016

90.4

91.4

92.1

93.0

Plan
93.9

793

793

FY2018FY2019FY2020

FY202113FY2017FY2018FY2019FY20203
43

FY2015FY2016

Changes in Use of Childcare Systems (non-consolidated)
Percentageof
育児休暇
employees taking
childcare
取得率leave

Percentageof
時短勤務者
employees working
shorter
比率 hours

2016
2017
2018
2019
2020
2021
FY2021FY2016FY2017 FY2018
FY2019 FY2020
Plan
年度
年度
年度
年度
年度
年度計画
% % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %
85.7
85.7

% % 100.0 % 83.3
% % 90.5% % 94.7% % 80.0
%%
90.0
90.0
83.3
90.5
94.7
80.0
% % 100.0 % 100.0 % 100.0 % 80.0%% 100.0 %
90
90.0
80.0

0

0 0

0 0

0 2

2 7

7 5

5

Obtained "Kurumin" certification
In June 2019, we acquired the "Kurumin Mark" cer tified by Japan's
Ministry of Health, Labour and Welfare as a "Childcare Support Project."

Changes in Ratio of Female Managers (non-consolidated)
250

25Male managers (persons)

30

15.2

10
5

4

17

6

Target
20.0
20

5

908

FY2016FY2017FY2018928

FY2019

150

917

15
184

18.8

910

181

199

199

204

205

100

10

10

5

0
FY2030 (%)
FY2020 FY2021
Target
Plan

7.7

50

5

4.7
0
(Persons)

2.2

2.8

2.5

FY2016FY2017FY20183.0
FY20190
FY2030 (%)
FY2020 FY2021
Plan
Target

2.3%

2.5

1.5
(%)

Target3.5

Mandatory
employment rate

2.0
FY2017

17

Ratio of Employees with Disabilities (non-consolidated)
3.0

95(Cases)13

Female managers (persons)

20

17.4

15.9

3.5

100

0

14

800

(Persons)

FY2018

6

2

200

0

FY2017

13

2

25

200

FY201615

14

10

FY2021

Plan
2,028

1,000

85
(%)

FY2020

15

2,000

0
(t)

FY2019

1200

400
2,067

FY2018Changes in the Ratio of Female Employees (Non-

600

3,000

90
FY2020FY2017

Annual industrial waste discharge(non-consolidated)

Total waste recycling rate (non-consolidated)
Target100.0

FY2016

1000

20

8

Male
employees
男性育休
taking childcare
leave(persons)（人）
取得者*Scope 1 and 2 of supply chain emissions are covered.

(Hours)3

10

Percentage of
第一子出産
employees
who
continue to work
継続就業率
after
first childbirth

10

0

14

27.7

26.3

25.4

t-CO2

As of March 31, 2021 (non-consolidated)

Total number of accidents

4

2

6

20

Compared to
FY2019: 91.2 %Accident causing injury or death

6

21.8

-309.8-309.8 -114.2-114.2 -29,871.9-29,871.9

Eco-products ratio (consolidated)

50

14

5

Non-Financial Information(Scores)42Changes in Monthly Overtime Hours Per Employee (non-consolidated)

25

Single-car accident
Property damage accident

1230Technician ratio

18
16

13

Total number of accidents

6

Net worth ratio

15

12

4

Occurrence of Traffic accidents (non-consolidated)
20

1.9

2.0

FY2016FY20172.2
FY2018

2.3

2.3

2.4

FY2019FY2020

FY2021Plan

FY2030TargetIntegrated Report65Financial Information
Major financial Data

COMANY INC. and consolidated subsidiaries (Unit: Millions of yen)

Fiscal Year

FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020（※ 1）

Net Sales

27,38628,15429,46630,47931,106

31,07032,38734,292

32,48528,812By Market Segment
Japan

26,707

26,85928,032

28,71529,86930,05531,38332,49931,736-

12,627

12,53812,376

12,876

13,483

13,51914,184

14,517

14,977

12,566

Factory

5,991

6,358

5,226

5,334

6,925

6,880

7,378

8,894

7,616

6,680

Medical & Welfare institution

4,079

4,118

5,393

5,652

5,039

5,016

5,357

4,296

4,130

4,608

School

1,918

1,830

2,578

2,525

2,049

2,289

2,428

2,339

2,027

2,281

Other

2,092

2,015

2,459

2,328

2,373

2,351

2,036

2,453

2,986

2,676

679

1,294

1,434

1,764

1,236

1,015

1,003

1,792

748

-

OfficeChina
Cost of sales

17,386

17,205

17,77318,09318,313

18,62819,184

21,13920,037

17,958Gross Profit

10,00010,948

11,692

12,386

12,792

12,441

13,202

13,153

12,44810,854

Selling, general and administrative expenses

9,382

9,744

10,27010,85010,934

11,342

11,501

11,732

10,733

9,684

Operating Profit

618

1,204

1,422

1,535

1,858

1,099

1,700

1,420

1,715

1,169

Ordinary Profit

651

1,252

1,463

1,638

1,846

1,143

1,732

1,341

1,566

1,376

Profit attributable to owners of parent

549

1,178

1,602

1,621

1,079

507

929

335

711

901

Capital Expenditure

731

858

946

2,255

2,844

1,259

886

541

1,022

805

Depreciation

822

727

694

653

722

975

959

904

817

780

Net worth

16,895

18,22820,31821,91621,80622,03322,641

22,324

22,482

23,312

Total Assets

27,12427,65831,16432,79334,20533,86236,361

34,52832,53337,079Number of employees (person)

1,363

1,375

1,399

1,412

1,458

1,468

1,475

1,476

1,234

1,252

Per share data
Net income per share (yen)Net assets (yen)Annual cash dividends (yen)Payout ratio (%)

61.77

132.45180.01

182.20121.2657.03

104.49

37.67

79.93

101.25

1,898.41

2,048.24

2,283.15

2,462.77

2,450.42

2,475.97

2,544.41

2,508.65

2,525.36

2,617.09

26.00

28.00

30.00

32.00

42.1

21.1

16.7

17.6

3.3

6.7

8.3

2.4

4.6

5.0

37.00（※ 2）

46.00

47.00

50.00

51.00

45.00

30.5

80.7

45.0

132.7

63.8

44.4

7.7

4.9

2.3

4.2

1.5

3.2

3.9

5.1

5.5

3.4

4.9

3.8

4.7

4.0

Financial Indicators

Return on Equity (ROE）（％）

Return on Assets（ROA）（％）

Operating Profit on Sales（％）

Net worth ratio（％）

2.3

4.3

4.8

5.0

6.0

3.5

5.3

4.1

5.3

4.1

62.3

65.9

65.2

66.8

63.8

64.5

62.3

64.7

69.1

62.9

※1The COMANY Group used to report in two segments, "Japan" and "China", but we changed to report in single segment from FY2020.
※ 2 Commemorative dividend 3.0 yen is included.

4.3

31,10630,47929,46628,154

27,386

4.8

5.3

1,204

5.3
4.1

1,858
2.3

31,0705.0

2,000010,0006.0

32,485

1,422

1,535

3.5

28,812

3,000
4.1

2,000

1,715

1,700
1,420

1,169

1,099

618

0
(%)

66

COMANY INC.

FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019

8.0

6.0

4.0

1,000

2.0

0

0

(Operating Profit Margin)

30,0004,000
34,29232,387(Operating Profit: Millions of yen)

（ Sales: Millions of yen）

40,000

FY2020Integrated Report67Financial Information
Balance Sheet
Fiscal Year

COMANY INC. and consolidated subsidiaries (Unit: Millions of yen)

FY2019FY2020AssetsCurrent Assets
Cash and deposits
Notes and Accounts Receivable - trade
Merchandise and Finished goods
Work in progress
Raw materials and supplies
Other
Allowance for doubtful accounts
Total Current Assets

8,236
9,709
819
138
485
1,270
△ 16
20,645

14,362
9,257
869
137
454
382
△ 22
25,441

Buildings and structures, net
Machinery, equipment and vehicles, net
LandConstruction in progress
Other, net
Total property, plant and equipment

2,381
1,623
3,359
86
154
7,604

2,218
1,494
3,359
261
161
7,494

342
71
1
415

479
55
1
535

1,124
22
1,767
986
△ 33
3,868
11,88832,533

1,592
25
1,472
551
△ 33
3,608
11,63837,079Non-current Assets
Property, plant and equipment

Intangible assets

Software
Software in progress
Other
Total Intangible Assets
Investments and other assets

Investment Securities
Long-term loans receivable
Deferred tax assets
Other
Allowance for doubtful accounts
Total Investments and Other Assets
Total non-current assets
Total Assets
Liabilities
Current Liabilities
Accounts Payable - trade
Short-term borrowings
Income taxes payable
Provision for loss on construction contracts
Provision for bonuses
Provision for bonuses for directors (and other officers)
Other
Total Current Liabilities

1,877
900
61
801
20
2,024
5,685

2,118
1,000
334
14
861
32
1,960
6,321

Long-term borrowings
Lease obligations
Deferred tax liabilities for land revaluation
Retirement benefit liability

240
331
3,351
90
351
4,365
10,050

3,250
199
331
3,224
116
324
7,446
13,767

7,121
7,607
8,571
△ 1,135
22,163

7,121
7,607
9,107
△ 1,127
22,709

△ 93
481
8
△ 78
318
22,48232,533

55
481
2
63
603
23,312
37,079Non-current Liabilities

Provision for share-based remuneration for directors (and other officers)

Other
Total Non-current Liabilities
Total Liabilities
Net Assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated Other Comprehensive Income
Valuation Difference on Available-for-sale Securities
Revaluation reserve for land
Foreign Currency Translation Adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total Net Assets
Total liabilities and net assets

68

COMANY INC.

Cash Flow
Fiscal Year

COMANY INC. and consolidated subsidiaries (Unit: Millions of yen)

Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment losses
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for directors (and other officers)
Increase (decrease) in provision for share-based remuneration for directors (and other officers)

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for loss on construction contracts
Interest and dividends income
Interest expenses
Surrender value of insurance policies
Subsidies for employment adjustment
Bad debts expenses
Loss (gain) on sales of property, plant and equipment
Loss on retirement of property, plant and equipment
Loss on retirement of intangible assets
Loss (gain) on sales of investment securities
Loss (gain) on sales of shares of subsidiaries and associates
Loss on valuation of inventories
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Other, net
SubtotalInterest and dividends received
Interest paid
Subsidies for employment adjustment received
Income taxes paid
Income taxes refund
Net cash provided by(used in) operating activities
Cash flow from investing activities
h flow from investing activities
Payment into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from the sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from the sales of investment securities
Subsidies received
Proceeds from sales of shares of subsidiaries resulting in change in scope of consolidation
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from long-term borrowings
Repayment of long-term borrowings
Proceeds from sale of treasury shares
Purchase of treasury shares
Dividends paid
Repayments of lease obligations
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

FY2019FY2020

356
817
26
△ 52
△4
29
5
△ 24
10
21
△0
28
0
3
1,178
986
76
△ 260
△ 355
2,843
24
△ 10
△ 160
136
2,832

1,365
780
77
59
12
25
6
14
△ 19
7
△ 37
△ 75
△0
7
4
△0
452
△ 16
241
131
3,036
19
△8
75
△ 80
115
3,157

△ 151
181
△ 523
0
△ 249
△1
4
584
△ 10
△ 165

718
0
△ 259
△ 257
1
821
461
△2
46

△ 1,104
6
△0
△ 465
△ 40
△ 1,604
103
1,166
7,070
8,236

5,000
△ 1,650
8
△ 364
△ 40
2,953
△ 31
6,125
8,236
14,362Integrated Report

69Corporate Information

Year Month Overview

Company overvieww (as of March 31,2021)
Trade name

COMANY INC.

Head Office

1-93, Industrial Park, Komatsu City, Ishikawa

Year Month

Overview

Prefecture, Japan

Aug.1961

Komatsu Cabinet Incorporated Company founded.

Estabilished

August 18, 1961

Jun. 1970

Changed trade name to Komatsu Partition Industry

Capital7,121 million yen

Dec. 1980

Took first place in the partition industry by its sales

Nemployees(Consolidated) 1,234, (Non-consolidated)1,081

Nov.1984

Changed the company name to COMANY INC.

Nov.1985

Received Deming Prize in SMEs category

installation of partitions.Partition-related interior

Nov.1989

Listed on the second section of the Nagoya Stock Exchange.

finish work and joinery work

Apr. 1991

Established CAP Incorporated Company (later COMANY

Main businessD evelopment, design, manufacture, sale andEngineering Incorporated Company) as subsidiaryGroup companies(Domestic) 1 company;(Overseas) 2 companies

Fiscal year end

March 31

Stock Listing

Tokyo Stock Exchange Second Section

Securities CodeOct.1996

Received TPM Prize for excellenceDec.1996

Established COMANY International Trading (Shanghai)

May.1997

Co.,Ltd.Komatsu Flash Co.,Ltd. (current Cluster Corporation)
became a subsidiary of COMANY INC.

7945

Shereholder registry administrator

Sumitomo Mitsui Trust Bank, Limited

Oct. 1999

Received TPM Excellence for continued excellence

Accounting auditor

KPMG AZSA LLC

Dec. 1999

Acquired ISO 9001 certification

Nov. 2001

Acquired ISO 14001 certificatio

Aug. 2011

Nanjing Jalynger Materials Co.Ltd. became a subsidiary of COMANY INC

Feb. 2012

Established COMANY (Nanjing) New Building Material

Stock Information（as of March 31, 2021)
36,000,000

Total number of authorized shares

9,924,075

Total number of issued share
Number of shares per unit

100

Number of shareholders

2,770

Securities firms
57,111shares
0.58%

Treasury shares
787,436 shares 7.93%

Other domestic
corporations
2,139,504shares
21.56%
Financial
institutions
1,185,105shares
11.94%

Individual andother
5,693,319shares
57.37%7

Listed on the Second Section of the Tokyo Stock Exchange
Universal design folding door "Dear-d” won the Good

Nov.2017

Updated the certifications to ISO9001:2005 and ISO14001:2005

Jan.2018

Took over the subsidiary COMANY Engineering Incorporated Company

Apr.2018

Announced the “COMANYʼs Declaration in support of SDGs”

Aug.2018

Signed the UN Global Compact

Feb.2019

Recognized under the 2019 Certified Health and Productivity

Jun.2019

Formulated “COMANY Group Human Rights Policy”

Jun.2019

Signed “Partnership Agreement on SDGs Promotion” with Komatsu City.

Jun.2019

Acquired the next-generation certification logo “Kurumin”.

Major shareholders/top 10(as of March 31, 2021)

Oct.2019

Joined “RE Action-Declaring 100% Renewable,”

Shareholder Name

Oct.2019

Tender door series received GOOD DESIGN AWARD2019

Nov. 2019

Received Green Purchasing Award (Large Enterprise Category)Jan. 2020

Transferred COMANY (Nanjing) New Building Material Technology Co.,Ltd

Mar.2020

Recognized under the 2020 Certified Health and Productivity

Komatsu Kosan Corporation
COMANY Co-prosperity Association
Employee shareholding association of COMANY
Hokuriku Bank, Ltd.Hokuriku Bank, Ltd.
Toshio Yoshida
Hokkoku Bank, Ltd.
Custody Bank of Japan,Ltd.(Trust Account)

Naoko Kimura
Mikio Tsukamoto
Takashi Shiraei

923,300
771,338
679,655444,002265,500
260,000
228,803223,296
217,500
210,600

10.10
8.44
7.43
4.85
2.90
2.84
2.50
2.44
2.38
2.30

Note: Shareholding ratio is calculated by deducting the treasury shares.

70

COMANY INC.

with speciﬁc examples of our initiatives.
Nowadays, the world has changed drastically, including the global
environment, disasters, and infectious diseases. People's values arealso changing along with these changes. The COMANY Group is working
to "Empower all Life through MA-zukuri(literally, generating space)."That is to create a company capable of producing new value based onour "Corporate Mot to," a universal principle that we have always
valued. We also strive to play a role in creating a new society.
We hope that this "COMANY Group Integrated Report 2021" will help
deepen the understanding of our initiatives and become more familiar
with us than ever. We will continue to value dialogue with all of our
stakeholders as we conduct our business operations. We look forward
to hearing your honest opinions in this regard.

It covers the fiscal year ending
March 31, 2021 (from April 1, 2020
to March 31, 2021).
However, we al so refer to theperiod before and af ter theapplicable period, as necessary.

Jun. 2015
Sept.2016

Program (500 working group)

Shareholding Ratio (%)

value creation model and its goals in an easily understood manner

Period covered by this reportManagement Outstanding Organizations Recognition

Number of shares held (shares)

This integrated report is prepared to introduce the COMANY Group's

Technology Co.,Ltd.

Design Award 2016

Foreigners
61,600shares
0.62%

Editorial Policy

Activities and data not included in this report are available on our
website. A variety of information is available on our corporate
information site.

Financial Information and IR
https://www.comany.co.jp/ir/
Initiatives for Sustainability
https://www.comany.co.jp/sdgs/

The Sustainable Development Goals(SDGs), otherwise known as the Global
Goals adopted by the United Nations
member states, are a universal call toaction to end poverty, protect theplanet and ensure that all people enjoy
peace and prosperity.
We endorse the Sustainable
Development Goals (SDGs) based on thespirit of “humanity and fraternity” andthe belief that “companies should exist
to contribute to the happiness of theworld” in its sustainability policy, andstrives to build a sustainable future.

Signing the “UN Global
Compact”

Various informational tools

COMANY's corporate information site
https://www.comany.co.jp

Initiatives for SDGs

Corporate Governance Reporthttps://www.comany.co.jp/pdf/
CG/2021_0625_CG.pdf
Financial statements
https://www.comany.co.jp/
ir/settlement/library/

The UN Global Compact, a voluntary
initiative proposed by thenUN
Secretary-General Kofi Annan in an
address to the World Economic Forum in
Davos on January 21,1999. It wasformallylaunched at UN Headquarters in
New York on July 26, 2000.
We are committed to act as a
responsible company on a global scale
and to solve problems. By supportingand practicing the UN Global Compact
10 principles in four areas: humanrights,labor, environment, and anticorruption, we will continue to makeefforts to realize a sustainable world.

Management Outstanding Organizations Recognition ProgramMar.2020

Awarded JMAQA AWARDS 2020

Apr.2020

Acquired certification from the SBT Initiative

Jul.2020

Acquired FSC certification

Jan.2021

Signed Women's Empowerment Principles(WEPs)

Mar.2021

Recognized under the 2021 Certiﬁed Health and Productivity
Integrated Report71Our Journey Has Just Begun
Empower all Life
COMANY

72

COMANY INC.

Integrated Report73

COMANY INC.
93-1, Industrial Park, Komatsu, Ishikawa 923-8502, Japan
https://www.comany.co.jp
For inquiries, please contact

Sustainability Management Promotion Division Corporate Planning Headquarters
TEL 0761-21-1201 FAX 0761-24-1901
Sixth Edition
B1605-⑥・1-1700/The contents of this report are current as of September 2021./Please note that the specifications are subject to change without notice for productimprovement./Photographs in this report may differ slightly from the color of the actual product due to printing