YKK PHILOSOPHY

CYCLE OF GOODNESS®
“No one prospers without rendering benefit to others.”

As an important member of society, a company survives through coexistence.
When the benefits are shared, the value of the company’s existence will be recognizedby society.
When pursuing his business, YKK’s founder, Tadao Yoshida, was most concerned withthat aspect, and would find a path leading to mutual prosperity.
He believed that using ingenuity and inventiveness in business activities andconstantly creating new value would lead to the prosperity of clients and businesspartners and make it possible to contribute to society.
This type of thinking is referred to as the Cycle of Goodness, and has always served as
the foundation of our business activities.
We have inherited this way of thinking, and have established it as the YKK Philosophy.

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This is YKK 2023

YKK MANAGEMENT PRINCIPLE“YKK seeks corporate value of higher significance.”
CUSTOMERSSOCIETY

PRODUCTSFAIRNESSEMPLOYEESTECHNOLOGYMANAGEMENT

Seeking corporate value of higher significance,
YKK will pursue innovative quality in the seven key areas shown above.
YKK Group companies seek to delight our customers, earn the high regard ofsociety and make our employees happy and proud.
We are improving the quality of our products, technology, and management as
the means to achieve this.
We make fairness the fundamental standard for all YKK Group business operations,and this is the basis for our management decisions.

YKK CORE VALUES
Do not fear failure; experience builds success. /Create opportunities for employees.
Insist on quality in everything.
Build trust, transparency and respect.

This is YKK 202302

YKK Group Management Structure
The YKK Group operates in 72 countries and regions around the world, with the Fastening Businessand Architectural Products (AP) Business as core operations.

Fastening Business

AP BusinessFastening

AP

Facilities
development

Facilities
development

Machinery
manufacturing

Machinery
manufacturing

Technology & Innovation Center (TIC)

Operating Companies
YKK Philosophy/ Management Principle

Supporting the Two Businesses Through the Development of Facilities and Manufacture of Machinery
In FY2021, the Machinery and Engineering Group was integrated to the Fastening Business and AP Business
respectively to enable speedier development of machinery and facilities as well as the manufacture of machinerythat are specialized to each business. The newly built Technology & Innovation Center provides technical support
to each business to enhance their competitiveness.

YKK Group Consolidated
Number of Group Companies and Employees

108 companies 44,527 employees
Net sales

893.2 billion yen

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This is YKK 2023

Operating income

55.9 billion yenFastening Business

The Fastening Products business has been producing
and marketing fastening products, including zippers(slide fasteners), hook & loop (textile products), buckles(plastic products), and snap & buttons, for over 80 years.
Fastening Products / Snaps & Buttons Businesses
Number of Group Companies and Employees

67 companies 26,699 employees

Net sales

380.5 billion yen

Architectural Products(AP) Business

Operating income

43.7 billion yen

Windows and doors are significant attributes to creating
comfortable living spaces. Building facades create
beautiful urban scenery. The YKK AP business aims
to deliver good health, comfort, safety, and security
through its architectural products.
Residential / Commercial / Exterior / Renovation /Industrial Products / Overseas AP Businesses
Number of Group Companies and Employees

24 companies 17,143 employees

Net sales

508.6 billion yen

Other Businesses

Operating income

17.8 billion yen

In addition to YKK Real Estate Co., Ltd., YKK BusinessSupport, Inc., which supports business operations
within the YKK Group, and YKK Rokko Corporation
printing company (a special YKK Group subsidiary), weare developing businesses rooted in local regions, suchas the agricultural and livestock business in Brazil (AgroPecuaria YKK Ltda.).
Number of Group Companies and Employees

17 companies 685 employees

AGRO PECUARIA YKK LTDA.

YKK Rokko Corporation(Note) Net sales and operating income are figures for the year ended March 31, 2023. Other figures are as of March 31, 2023.

This is YKK 202304Editorial Policy of the YKK CORPORATION Integrated Report “This is YKK 2023”
The YKK CORPORATION integrated report, “This is YKK 2023,” is an overview of management and business activities that arerooted in the Cycle of Goodness® YKK Philosophy embraced by YKK from its founding to the present day. The report is focusedaround YKK’s Fastening Business.
In particular, we publish an integrated report on financial and non-financial information, such as an overview of long-termvalue creation, the medium-term management strategy toward sustainable growth, financial performance, and sustainability
efforts, in both printed and PDF formats. Furthermore, we also issue the Data Book (PDF file), which provides detailed data on theachievements of YKK’s sustainability-related activities and ESG performance.

Report Scope

Reference Guidance

Financial Information
Disclosed for the YKK Corporation, its 105 subsidiaries,
and one affiliated company accounted for using the equity
method on a consolidated basis as the “Group,” and foreach segment (Fastening Business, Architectural Products
Business, Other Businesses)“Guidance for Collaborative Value Creation,”

Sustainability Vision / Environmental• With the Fastening Business at the center, includes otherbusinesses involved in business operation• Explanatory notes and the like are included as needed whenthe extent of coverage differs

Ministry of Economy, Trade and Industry (METI)“International <IR> Framework,”
The International Integrated Reporting Council (IFRS)

Date of Publication
Japanese: August 2023
English: October 2023

Publishing Department
Corporate Communications Group,
Corporate Planning, YKK Corporation
1, Kanda Izumi-cho, Chiyoda-ku,Social• The extent of the data is shown individuallyTokyo 101-8642, Japan
Tel: +81-3-3864-2064

Governance• The extent of the data is shown individually

Fax: +81-3-3864-2050
Email: k_ykk@ykk.com

Period Covered
FY2022 (April 1, 2022 to March 31, 2023)*Includes some activities from outside this period

Other Disclosure Information (See Here for Details)<Website><Sustainability Journal>
Please see the official YKKThis booklet shares stories

Corporation website for an

illustrating our desire to achieve

introduction to our businesses,

the YKK Sustainability Visiona corporate profile, financial

2050. The Sustainability Journaland sustainability information,

is used globally as a customer

news releases, and more.

communication tool.

Thoughts Behind the YKK Logo
The new corporate logo announced in March 2023 embodies the YKKPhilosophy of the Cycle of Goodness, the Management Principle to“seek corporate value of higher significance,” and the YKK Core Values.
The logo expresses YKK employees’ desire to place sustainability at thecenter of the company’s management and to continue its long-standing
work to act rapidly and provide trusted quality.

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This is YKK 2023

YKK CORPORATION Integrated Report

This is YKK 2023
Fastening Business

Contents

YKK Philosophy & Sustainability
The Philosophy of YKK’s Founder, Tadao Yoshida…………………………………………………

07

YKK Sustainability Vision 2050………………………………………………………………………………

09

Value Creation
The Cycle of Goodness® and Value Creation
Message from the President……………………………………………………………………………………

11

Executive Dialogue……………………………………………………………………………………………………

15

The History of YKK’s Value Creation………………………………………………………………………

19

Product Appeal & Proposal Capability……………………………………………………………………

21

Technology & Manufacturing Capability…………………………………………………………………

23

Diverse Human Assets………………………………………………………………………………………………

25

Business Strategy
6th Mid-term Business Policy and Business Strategy…………………………………………

27

Medium-term Direction: Flat Organizational Structure………………………………………

29

Medium-term Direction: Enhancing Sustainability………………………………………………

31

Medium-term Direction: Strengthening Product Planning and Development……

37

Medium-term Direction: Thorough Pursuit of Cost Competitiveness…………………

39

Medium-term Direction: Strengthening the Use of Digital Technologies…………

40

Community Activities: Be a Native…………………………………………………………………………

41

Platform
Aiming to Instill the YKK Management Principles…………………………………………………

43

Management Foundation Based on the YKK Philosophy:……………………………………

45

Corporate Governance / Risk Management / Compliance / Intellectual Property Management

Data
Consolidated Financial Data of the YKK Group for the Past 11 Years………………

51

Financial and Non-Financial Highlights……………………………………………………………………

53

This is YKK 2023

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