█ Mid-term Management Plan and Business Strategy

6th Mid-term Business Policy and Business Strategy

Sustainable Growth Under the New Normal- Responding to diverse customer needs andacquiring customers -

Fa

ste

nin
g
ma s ov
rke eralltUnder the 6th Mid-term Management Plan (FY2021 to FY2024), we continue the vision of “Technology Oriented
Value Creation.” YKK has formulated a 6th Mid-term Business Policy and Business Plan based on three primary points
identified as necessary to achieve “Creativity to Realize a Sustainable Society,” which are “product appeal & proposal
capability,” “technology & manufacturing capability” and “diverse human assets.”
We see the dramatic changes anticipated by the new normal after the COVID-19 pandemic as an opportunity to
pursue sustainable growth together with society under thepolicy to provide “better products at a lower cost and greater
Fastening Business market categories
speed, more sustainably.” As a milestone in the 6th Midterm Management Plan, YKK has undergone organizational
Value Conscious
restructuring in FY2023 to adapt to the fiercely changing
European luxury brands,
business environment. That is why we will promote initiatives
general purpose materials customers,
high-performance sports garmentsthat put sustainability at the core of management based on
this new structure. In addition, YKK must respond to current
VolumeStandard
world affairs that leave the future uncertain as well as theFast fashion, specialist clothingzone
retailers, European andcontinually changing business environment. That is why
U.S. mass retailers
we have added “delivering turnaround times demanded bycustomers” and “thorough health and safety management” to
BOP (Base Of the Pyramid)
Emerging nations domestic customers
our medium-term direction in an effort to improve customer
satisfaction and ensure employee safety.

Business EnvironmentYKK Philosophy, Cycle of Goodness® / ManagementYKK Group CodeSocial●●●●COVID-19 impact→ Limits on economic activity→ Logistics disruption, rise in transport costs<6th Mid-term Business Policy>
Sustainable Growth Under the New Normal - Responding accine rollout, national economic stimulusVmeasures, etc. led to consumption recovery
in Europe and the U.S.

“Turn change into opportunity”“Contribution to Society” - Continue“Better products at a lower cost and urging raw material costsS(non-ferrous metals/crude oil)
Growing geopolitical risks

Medium-term Direction

Market● xpanding demand for sustainability inEthe apparel industry

Technology Innovation●27

 hanges in the customer value chain due toCadvances in information technology

This is YKK 2023●

Flat organizational structure

P.29

●

Enhancing sustainability

P.31

●

 trengthening product planningSand development

P.37

●

 horough pursuit of costT
competitiveness

P.39

●

 trengthening the use of digitalS
technologies

P.40

●
●

 elivering turnaround times demandedD
by customers
Thorough health and safety management

YKK Philosophy & Sustainability

Value Creation

Business Strategy

Platform

Data

Important Points and Targets of Business Execution in the New Normal
In the new normal after the COVID-19 pandemic, the “right time, right material, and right amount” will become aneven greater requirement to supply customers with only the material they need in the right amount at the righttime. The tasks to tackle in order to satisfy these requirements are to better position sustainability at the core ofmanagement, thoroughly reinforce the cost competitiveness of our core products, and further promote digitalization
to support these efforts.

(100 million units/yen)

The “rightmaterial”

Cost
competitivenessProduct
development
capacity

92.9

YoY: 90.2 %100.8

ExplosivenessNet sales

3,481

3,805

YoY: 109.3 %3,962

Promoting sustainability

Operatingincome423

437

YoY: 103.2 %497

Strengthening cost competitiveness

Sales OI ratio

12.2 %

11.6 %

YoY: -0.6 pt

12.5 %

USD

112.27 yen
130.50 yen
17.49 yen●

Sustainability
Promoting
digitalization

In the “rightamount”(Turnaround times &SPEED)

Launch initiatives toward climate neutrality
Develop eco-friendly products
Strengthen exhaustive cost competitivenessof core products●

FY2023 plan

102.9

At the“right time”●

FY2022 results

Zipper unit
sales

●

●

FY2021
results

Promoting digitalization

Solve customers’ problems and reform
employees’ ways of working

Principle “YKK seeks corporate value of higher significance.”

Foreign
EUR
exchange
RMB

136.13 yen
141.14 yen
19.76 yen

130.00 yen
140.00 yen
19.30 yen

Vision for
the Medium- to Long-termof Conduct

to diverse customer needs and acquiring customers -Technology Oriented
Value Creation

to be a company for the social good -greater speed, more sustainably”
YKK Sustainability Vision 2050●●●

climatechangewaterresourcesrespect
people●Continuing to bea “social good” company

material
Resources●

chemical
management

Better products at
a lower cost andgreater speed,
more sustainably

This is YKK 2023

28

█ Mid-term Management Plan and Business Strategy

Medium-term Direction

Flat Organizational Structure

Organizational Restructuring for Immediate Responseto the Drastically Changing Business Environment
In FY2021, the first year of the 6th Mid-term Management Plan, YKK reorganized and changed from a divisional structure to aflat structure consisting of functional organizations. The goal was to achieve sustainable growth even in the face of acceleratingchanges in the business environment over the period of the plan. Furthermore, with an eye toward responding to diverse
customer needs and acquiring customers, in FY2023 we established the new Business Strategy Division and moved thefunctions of the Global Sales Headquarters to Vietnam, to place the organization closer to both customers and markets. This will
boost customer satisfaction by incorporating global customer demands into our sales strategies.

Establishment of Business Strategy Division
and Relocation of Global Sales Headquarters
Function to Vietnam
As global circumstances and the environment surrounding
our business change more rapidly than anticipated, we began
implementing organizational restructuring in FY2023, theturning point of the current Mid-term Management Plan, withan eye toward the 7th Mid-term Management Plan and beyond.
We established a new Business Strategy Division, with theBusiness Planning Department and Global Marketing Group(GMG) below it. The goal is to efficiently and rapidly promotebusiness strategies. As well, the Global Sales Headquarters
was restructured to specialize in strategies for individual sales
functions, while the headquarters’ functions was shifted toVietnam, on the front lines of overseas garment manufacturing,in order to formulate and implement sales strategies closer togarment manufacturing regions. Within the headquarters, weplaced the Product Strategy, Application Development, andProduct Development Divisions. We also established the Glocal
Supply Strategy Group, which is tasked with providing optimized“glocal” services spanning multiple business regions to garment
manufacturers with geographically diverse locations.

The Business Execution Structureof YKK Corporation (from April 1, 2023)
President, YKK Corporation

Business Strategy Division

Business Planning Department

Technology & Innovation Center (TIC)

Global Marketing Group

Fastening Business Common Division

Global Sales
Headquarters

Manufacturing& Engineering
Division

Administration
Division

Snap &
ButtonBusiness

Product Strategy
Division

Production
Engineering Division

Application
Development Division

Machinery
Manufacturing Division

JAPAN
Company

Overseas
Businesses

Product Development
Division

Moved to Vietnam
Established April 1, 2023

Everything for Maximizing
Customer Satisfaction
Koichi Matsushima
Director
Executive Vice President, Business Strategy andBusiness Strategy Division

In FY2021, YKK reorganized and changed from a divisional
structure to a function-based organization, a so-called flat
structure, and raised awareness within the company that wework as “One YKK.” At the time, I was the head of the Global
Sales Headquarters, and we integrated sales and productdevelopment to speed up our response to customers.
Another major result was the optimization and streamliningof sales-related tasks through the introduction of digital
tools and other measures.
The goal of the new Business Strategy Division is topromote business strategies more efficiently and rapidly.
To achieve this, I believe that it is vital for the division toplay a central role in horizontally connecting functions
29

This is YKK 2023

(sales, manufacturing and engineering, and administration)of the YKK fastening business as a whole and drawing up
and implementing business-wide strategies. In particular,
by pursuing faster delivery times and speed and costcompetitiveness, which have been identified as companywide issues, we will be able to meet diverse customer
requests and raise customer satisfaction. We have been
focusing on this task for some time, but having the division
take the lead in the project further accelerates these
efforts. Sharing information on a weekly and monthly basis
and participating in meetings, such as the Sustainability
Committee and Digital Promotion Committee, will enable
us to rapidly implement strategies and achieve our goals.

YKK Philosophy & Sustainability

Global Management Structures

Business Strategy

Platform

Data

Sixth Mid-term Regional Management Structure

Five-Region Global Management Structure

Regarding our overseas management
structure, we shifted to a Five-Region
Global Management Structure (EastAsia, Americas, EMEA, ASAO, andChina) in FY2021. At the same time,
we split the governance and businesspromotion organizations, and established
six business regions (Japan, Americas,
Europe, ISAMEA, ASEAN, and China),
which are classified according to tradearea or commercial distribution. Eachbusiness region will promote businessunder a business promotion manager(business leader) assigned thereinand strengthen both the appropriate
marketing methods for the region andproduction engineering capability. Under
this new system, regional headquarters
provide managerial support to thesix business regions, with a focus on
capital management and strengthening
corporate governance.

Value CreationYKK Corporation

East Asia

JAPAN Company
Japan

Regional
Headquarter

AmericasYKK Operating Companies
Americas(North, Central & South America)YKK Operating Companies

Regional
Headquarter

EMEA

EuropeYKK Operating Companies(Europe, Middle East and Africa)

ISAMEA (India, South Asia,
Middle East, and Africa)

Regional
HeadquarterASAOYKK Operating Companies
ASEAN(ASEAN, South Asia, Oceania)

Regional
HeadquarterChina

YKK Operating Companies
China

Business promotion insix business regions

Investment Plans for Each Region
As an investment plan to make sustainability thebasis of our management, further enhance the costcompetitiveness of our core products, and pursue
the digitalization that supports these efforts, weare scheduled to invest ¥44.8 billion in FY2023.
We will actively undertake investment in future highgrowth countries and regions, balanced to match thecharacteristics of each region. An investment of ¥24.0
billion is planned for China, ASEAN, and ISAMEA and¥20.7 billion in the Americas and Europe. As well,

FY2023 Investment Plan
China/ASEAN/ISAMEAJapan/Americas/Europe¥¥

24.0 billion

44.8 billion

Total of ¥Examples of GMG’s Work
YK

K

K

YK

YK

Y
K
K

Apparel manufacturer / importer(planning/development)

Specification ofparts / materials

Final productdeliveryGarment
manufacturer

Sales outlets

Y
K
K
YK

K

(3) Sales

YK(1) Proposals

K(clothing stores, department stores, brand shops, and online shops)

K

YK

YKK’s Global Marketing Group (GMG)
works across countries and regions. We
have dedicated YKK representatives foreach customer in place at customers’
manufacturing locations dispersed
around the world. The role of GMG is
to make proactive proposals, connect
customer requirements with YKK
operating companies in each country andregion, and promote the development of
new products. It is truly an organizationthat is responding to diverse customer
needs and acquiring customers.

20.7 billionK

YKK Strengths,
GMG Performing on the World Stagewe will focus on sustainability and digital-related
investment for the future.

Consumers
YKK Global
Management Group (GMG)(2) Sharing ofcustomer requests

YKK operatingcompany

This is YKK 2023

30█ Mid-term Management Plan and Business Strategy

Medium-term Direction

Enhancing Sustainability

Management Centered on Sustainability: YKK Sustainability Vision 2050
In October 2020, YKK formulated the YKK
Sustainability Vision 2050. Targets were set forfive themes—climate change, material resources,
water resources, chemical management, and respect
people—and we are working toward the achievementof the related SDGs and climate neutrality by 2050.
In FY2022, we redoubled our efforts to tackle
issues such as climate change and resource recycling
based on the sustainability promotion systems in eachregion around the world. The promotion of investments
into energy-saving production equipment, solar power
generation and other such technologies aims to tackle
climate change and other social issue to realize asound global environment.
Sustainability-related investment (capital investment)

Enhancing initiatives throughout
the entire supply chain
Asako Yoshioka

Vice President, Sustainability Department

We can say that sustainability is encoded in YKK’s very DNA,in the form of our Cycle of Goodness® philosophy and its
proposition that “no one prospers without rendering benefit toothers.” Going beyond in-house initiatives, the reduction of GHG
emissions throughout the entire supply chain is also important.
We cooperate with customers, business partners, and externalindustry organizations to work actively on solving global
environmental and social issues.

8.6 billion yen(FY2023 business plan)

Portion of investment earmarked for CO2 emission reductions 6.0 billion yen

YKK Sustainability Vision 2050 - Achievement of Climate Neutrality by 2050 Theme

Goal

climate change
Tackle GHG emissions
Increase use ofrenewable energy

material
resources
Increase use ofsustainable materials

Reduce emissions of CO2 and other greenhouse gases in our company and supply chain.
Scope 1 and 2 50% reduction by 2030 (from a 2018 baseline year)
Scope 330% reduction by 2030 (from a 2018 baseline year)●●

Be carbon neutral by 2050.

By 2030, switch to 100% sustainable textile materials(recycled materials, naturally-derived materials, etc.)
By 2030, replace all vinyl/plastic packaging materials with sustainable packaging,including recyclable/reusable forms.
Reduce the amount of waste to be landfilled or incinerated at all production sites.
By 2030, increase the waste recycling rate to 90%.

water resources

We will reduce our water intake through efficient usage, the developmentof new water saving production methods, and the increased recycling of wastewater.

Reduce water use andmanage wastewater

Strictly manage wastewater at all manufacturing sites in accordance with Government
regulations and YKK in-house standards established based on industry standards such as
ZDHC (Zero Discharge of Hazardous Chemicals).

chemicalmanagement

Manage and further reduce the use of chemical substances in product manufacturing from
input to output in accordance with our own standards (YKK Restricted Substance List),
which was established based on industry standards such as ZDHC MRSL
(Manufacturing Restricted Substances List)

Manage and reduce
chemical usage
Our finished products meets international textile safety standards such as OEKO-TEX®
STANDARD 100 ensuring they are free of harmful substances.
Develop new production methods that reduce and eliminate the use of toxic chemicals.

respect people
Uphold human rights
and ensure fair, safe
work environments

31This is YKK 2023

By valuing diversity, being inclusive, respecting human rights, and improving the work
environment, we will create better and safe workplaces throughout our supply chains.
We will ensure that each individual can work with peace of mind, make the most of his or
her individuality, and lead a healthy and happy life.
Implement YGCC audit (YKK Global Criteria of Compliance), a comprehensive standard
based upon YKK’s Cycle of Goodness philosophy and the ISO26000 guidelines,
at YKK Group facilities. Periodic evaluations by 3rd party auditors are conducted toassure transparency and improvement of sustainable practices.

SDGs

YKK Philosophy & Sustainability

Value Creation

Business Strategy

Realizing Our Vision through Partnerships
As the idea of sustainability, which seeks to realize asustainable society, becomes an increasingly global
trend, YKK cooperates with and contributes tosustainability efforts through international initiatives
and membership in external industry organizations.
As well, we undertake self-assessments andexternal audits using the Higg Index, a suiteof standards and module tools for assessing
environmental and social impacts developed by the
Sustainable Apparel Coalition (SAC). We post theresults of Higg Index external audits for each of our
locations on our website.

Platform

Data

Organization Memberships/Initiatives, etc.
Joined the Sustainable Apparel Coalition (SAC)
September 2018

● 

Signed the Fashion Industry Charter for Climate Action
March 2020

● 

Signed the Net-Zero Recovery statement May 2020

● 

Acquired 1.5°C Target commitment certification under the
Science Based Targets initiative (SBTi) March 2021

● 

Joined the Japan Sustainable Fashion Alliance September 2021

● 

Joined the Ellen MacArthur Foundation Network April 2022

●Joined the 30by30 Alliance for Biodiversity August 2022●

Signed the United Nations Convention on Biological Diversity(CBD) COP 15 Business Statement for Mandatory Assessment
and Disclosure October 2022

●

Higg Index external audit: Scores by location
https://www.ykkfastening.com/sustainability/higg.html

FY2022 results
 cope 1 and 2 GHG emissions: 289,543t (46.9% reduction from 2018 baseline)
SScope 3 GHG emissions: 690,418t (20.9% reduction from 2018 baseline)● Renewable energy ratio of all power consumption: 46.1%● Locations running on 100% renewable energy: 31● Locations using solar power generation systems: 21●●

FY2023 plan ontinue carrying out initiatives that aim to achieve the FY2030 emission reduction
Ctargets based on the SBTi certification to limit the temperature rise due to climatechange to less than 1.5°C● Scope 1 and 2 GHG emissions
FY2023: 432,241t or less (21.0% or more reduction from 2018 baseline)● Scope 3 GHG emissions
FY2023: 764,069t or less (12.5% or more reduction from 2018 baseline)●

Proportion of sustainable materials: 26% (up 14 points year-on-year)

Proportion of sustainable materials FY2023: 41%

Switch to sustainable packaging materials: 27.6%

Switch more plastic inner packaging materials to sustainable alternatives

Landfill waste: 6,282t (down 525t year-on-year)

Waste intensity FY2023: 4% reduction (year-on-year)

Waste recycling rate: 87.3% (up 0.3 points year on year)
Moved forward the target year for a recycling rate of 90% from 2030 to 2025

Waste recycling rate of at least 88.0%

Water intake: 10.086 million t (down 1.338 million t from FY2018)

Water intensity: 2% reduction (compared to FY2022)

Approval of a partnership with Zero Discharge of Hazardous Chemicals Programme(ZDHC) to devise ZDHC guidelines for zippers and buttons

Roll out in-house wastewater management rules revised based on industry
wastewater management standards ddition of the AFIRM Restricted Substances List and per-and polyfluoroalkylA
substances (PFAS) as statutory compliance to the annual revisions of YKK RSL
based on customer requests● Adoption of the ZDHC Manufacturing Restricted Substances List (ZDHC MRSL) forthe management of chemical substances used in manufacturing processes●I ncorporation of the management of restricted substances in the processes fordeveloping new products or changing materials● Periodic renewal of the OEKO-TEX® STANDARD 100 certification

 nnual revision of YKK RSL and communication of same to suppliers as well asAimplementation of appropriate surveys for suppliers● Carry out AFIRM RSL and all-encompassing fluorine tests● Verify the level of compliance with the ZDHC MRSL for the chemical substancesused in manufacturing processes and expand use of the ZDHC MRSL● Cooperate with suppliers to properly assess the level of ZDHC MRSL compliancefor unverified products●

 dd AFIRM RSL testing as an item for the management of restricted substancesA
when developing new products or changing materials● Periodically renew the OEKO-TEX® STANDARD 100 certification●●

Expansion of the lineup of products made with AcroPlating® technology, a new plating
technology

Development to reduce dimethylformamide (DMF) as a measure to reduce chemicals
with high atmospheric emissions

I mplementation of YGCC self-checks/audits at all applicable locations
Review and revision of YGCC audit items and scope● Revision of the YKK Group Human Rights Policy●● hrough implementation of YGCC and the promotion of CSR procurement, continueT
to identify/assess human rights risks as required by UNGP
● Enhance the human rights reporting and consultation services that are madeavailable to business partners●

This is YKK 2023

32

█ Mid-term Management Plan and Business Strategy

YKK Sustainability Vision Formulation
Process

Materiality Analysis (Identifying Priority Issues)HighLaws and regulations/compliance● Safety/disaster prevention● Human rights● Product quality

Materiality identifies
importance and impact●

Importance to stakeholders

One important business partner of YKK is the fashionindustry. Conventional business models in this sector
entail mass production, mass consumption, andlarge volumes of waste have a huge impact on theenvironment, which is increasing the importanceof CO2 emission reductions, water resource
management, chemical substances management,sustainable use of resources, and other initiatives
to respond to environmental issues. Initiatives totackle social and labor issues are also indispensable,
whether those to respect human rights or build safe
working environments. The importance of addressingthese social issues on a global scale goes beyond the
fashion industry to a wide range of other domains. As
a company with obligations in these industries, YKK isaiming to actively spearhead initiatives that can solvethese environmental and social problems. In responseto this business landscape, in the YKK Sustainability
Vision 2050 in October 2020, YKK identified fivethemes as “Materiality” (priority issues) covering
not only the environment but also society and labor.
These were climate change, material resources, water
resources, chemical management, and respect people.
We have set targets under each of these five themes
and are working toward the related SDGs.

●

Society and customers
are increasingly
concerned about climatechange and circularity.
This is expected to havean increasing impact on
business.
GHG emissions
Energy reduction/
Renewable energy● Resource recycling● Water resources● Chemical substancemanagement● Environmental
communication
●
●

Low

Business impact

Small

Large

Sustainability promotion structureYKK Management Strategy Council/
Board of Directors
Management Strategy Council
YKK Sustainability Committee(Chair: President, YKK Corporation)

Sustainability Department

Sustainability Promotion StructureA YKK Sustainability Committee chaired by thepresident of YKK is established. Working groups are
created for each theme that work to solve issues as we
aim to achieve the targets of the YKK Sustainability
Vision 2050. Overseas, Sustainability Committees foreach region have been established since FY2021 inresponse to the committee structure at Headquarters,in order to disseminate and implement Headquarters’sustainability policies and measures, thereby
establishing a global promotion system.

GHG emissions
Energy reduction/
Renewable energy● Resource recycling● Water resources● Chemical substancemanagement● Environmental
communication●

Based on a materiality
approach, five themes wereselected and targets set
in the YKK Sustainability
Vision 2050.

Each Division

Working Group
Process and Resource
Management Working Group

Global Sales Headquarters

Sustainable ProductWorking Group

Manufacturing & Engineering
Division

CSR Standards Working Group

Administration Division

Supplier Management
Working Group

Snap & Button Business

Human Rights Working Group
CDP Working Group
Scope 3 reduction teamJapan

Americas

Europe

ISAMEA*

ASEAN

China

* India/South Asia/Middle East/Africa

Sustainability Committee Meetings andActions
The Sustainability Committee convened three times
in FY2022. It heard reports and held discussions
about various issues and measures to solve them,in communication activities and within the sevenworking groups established under the Sustainability
Committee (Process and Resource Management
WG, Sustainable Product WG, CSR Standards WG,
Supplier Management WG, Human Rights WG, CDP
WG, and Scope 3 reduction team).

33

This is YKK 2023

Meeting

MonthContent

1st

July
2022

Reports about the progress of initiatives
carried out by working groups (WG) andabout efforts undertaken by Sustainability
Committees in each region

2nd

September
2022

Reports about the progress of initiatives
carried out by WG and about efforts
undertaken by Sustainability Committees ineach region

3rdMarch 2023

Reports about the progress of initiatives
and activity plans for the next fiscal year
from each WG and climate change initiatives
undertaken in five regions overseas (China,
ASEAN, ISAMEA, Europe, and Americas)

YKK Philosophy & Sustainability

Value Creation

Business Strategy

Platform

Data

Information Disclosure Founded in the TCFD Recommendations
Since the adoption of the Paris Agreement in December
2015, there has been more and more momentum toevaluate the impact climate change has on businessactivities worldwide. Within this business climate, the
TCFD announced its recommendations in June 2017,
which YKK signed onto as a supporter in 2019.
YKK evaluates and strives to incorporate theimpact climate change may have on its businessactivities into its business strategies according to the
TCFD recommendations.

1. Governance
The YKK corporate governance system essentiallyconsists of the Board of Directors, which carries out
decision-making and supervisory functions related to
management policies and other important matters,
and the Audit & Supervisory Board, which carries
out auditing functions. We have also introduced an
officer system to promote business execution. In
addition to regular meetings held once a month, theBoard of Directors holds extraordinary meetings asnecessary to discuss and make decisions on businessplans as well as organizational and other importantmanagement matters. It receives reports andsupervises the progress of the business execution ofeach Group company as well.
The Sustainability Committee launched as anadvisory body for the Board of Directors discusses andpromotes management policies and strategy related tosustainability, such as climate change. The president
serves as chair of the Committee.

2. Strategy

Transition
risk

Financial impact on YKKCurrent
regulation

Risks of higher operation costs of YKK plants
and the YKK buildings if the carbon tax risesin the future

Acute

Risks of manufacturing bases sufferingdamage due to more frequent and severe
flooding due to the rising temperature

Chronic

Risks of declining profits due to higher
air-conditioning costs at YKK plants andskyrocketing raw material prices driven by
the rising average temperature worldwide

Physical risk

Products/
Services

Opportunities to expand the numberof products using recycled and othersustainable materials

Resource
efficiency

Opportunities to improve energy efficiency
of equipment and broaden the adoption ofrenewable energies in order to mitigate thepayment of the carbon tax in the future

Opportunity

In accordance with the Risk Management Policy, risks
are identified once each year by each organization inthis business, worst-case scenarios and the status of
response are confirmed, and the risks are assessed in
16 stages according to the scale of loss and damage
and the frequency of occurrence. In addition, risks thatare anticipated to have an impact of ¥100 million ormore per year are deemed to be key risks that should
be managed at the corporate management level. We
also incorporate climate-related risks into the Groupwide risk assessment and management process toanticipate not only the short and medium-term but also
the long-term impact (up to about 2030).

4. Metrics and Targets
Our businesses aim to become climate neutral (netzero emissions) by 2050. Therefore, we have set
targets to reduce CO2 and other greenhouse gas
emissions from our company and supply chain. In
addition, these targets have been certified by the
Science Based Targets initiative (SBTi).

MetricTargetScope
1 and 2

Reduction of direct
CO2 emissions

50% reduction by FY2030(compared to FY2018)

Scope 3

Reduction of indirect
CO2 emissions fromthe supply chain

30% reduction by FY2030(compared to FY2018)<GHG emissions: Scope 1 and 2>(1,000 t CO2)YKK identifies and evaluates major risks andopportunities for the Fastening Business related
to climate change according to the TCFD
recommendations.
Type

3. Risk Management

600
545
400

523
443

451
290

200
0

2018 2019 2020 2021 2022
(Baseline)273～

2030 (FY)(Target)<GHG emissions: Scope 3>(1,000 t CO2)

1,000
750
500

873

798

741
563

690

611

250
0

2018 2019 2020 2021 2022
(Baseline)～

2030 (FY)(Target)See “This is YKK 2023 Data Book” for more detailed disclosure.

This is YKK 2023

34

█ Mid-term Management Plan and Business Strategy█ Initiatives Toward Achievement of the YKK Sustainability Vision 2050

climatechange46.9%
reduction

Scope 1 and 2
GHG emissions(from FY2018
baseline)material
resources

NATULON®
cumulative sales
account for waste
recycling of

340

about
million*plastic bottles*As of the end of
March 2023.

Based on 29 g/bottle(500 ml size)

26%

Proportion ofsustainable
materials(Total meters)(FY2022 results)

87.3%

Waste recycling rate

35

This is YKK 2023

In FY2022, the YKK Group reduced its
GHG emissions (Scope 1 and 2) by 46.9%,
which far surpassed its 16.8% reduction
target compared to FY2018. This is largely
thanks to measures that include broader
adoption of energy-saving production
equipment and plant infrastructure as wellas the installation of solar power generation
systems. As a result of actively introducing
renewable energy, we were able to increase
the number of sites that have shiftedpurchased power to 100% renewable energy
in FY2022 by 20 locations compared to
FY2021. YKK now has 31 locations only
using renewable energy worldwide. We arealso pushing to reduce GHG emissions bypurchasing renewable energy certificates.
In FY2022, the renewable energy ratio of all
power consumption was 46.1% (including
renewable energy certificates).
In addition, by promoting the use ofrecycled polyester materials through a shift
to and increase in sales of the NATULON®
series products and other means, we expect

Sustainable Materials for Fastening
Products
Since full-fledged efforts to switch to recycled
zippers began, the FY2022 unit sales of the
NATULON® series have increased 176%
year-on-year. We are now also dramatically
expanding the NATULON Plus® zipper line,with a high ratio of recycled materials, andthe ratio of products using sustainable
materials has reached 26% of all productsales. Going forward, we set a target in
FY2023 to increase the ratio of products
using sustainable materials by 41%. This
includes measures to encourage a shift to
the NATULON® line while expanding productvariations.

to reduce GHG emissions by about 15,935t(against FY2018), compared to using virginmaterials. In the future, we will also work
to reduce Scope 3 emissions by shifting torecycled materials for the main materials
used in our fastening products.

Solar power generation system(Shanghai YKK Zipper Co., Ltd. Lingang factory)

Selected as a Supplier Engagement Leader
in the FY2022 CDP Supplier Engagement
Ratingreduced 96% compared to FY2018. YKK is
moving forward with efforts to recycle andreuse resources and reduce waste.

 olume and Proportion of Sustainable
V
Materials Sales■ Sales volume (left axis)

Waste Reduction/Waste Recycling
In FY2022, thoroughly separating wastematerials and strengthening reuse at eachof our operating companies and improved
waste processing technology in the Asia
Region, and other factors, combined to resultin a recycling rate of 87.3%, exceeding
the target. The amount of waste was also

Proportion (right axis)

(%)
90

1,500
1,252
41%

1,000

60

26% 703500

030

12% 367

1%

Switch to Sustainable Packaging
Materials
In FY2022, YKK JAPAN Company (Kurobe
Manufacturing Center) completed the switch
to biomass materials for the main inner
packaging of fastening products. Moreover,
we are also looking into returnable boxes andother measures that will reduce the amountof plastic packaging materials that YKK uses.

●(millions of meters)

3%
23

88

6%164

0
2018 2019 2020 2021 2022 2023 (FY)(Plan)

 hanges in Waste Emissions/C
Waste Recycling Rates■ Sales vol. ■ Waste recycling vol.
■ Disposed vol. ● Waste recycling rate

(1,000 t)
51.6
50

52.4

50.8
42.4

40
30
20
10
0

23.2
78.2

17.1

24.2
80.9

26.4

24.4

83.3

13.6

(%)
100
90

87.3
80

87.0

21.7
16.9

49.5

19.3

18.9
6.3

70
60

11.3

9.7

7.1

6.8

2018

2019

2020

2021

50
2022 (FY)YKK Philosophy & Sustainability

water
resources

11.7%
reduction

Reduction rate ofwater intake(From a FY2018
baseline)chemicalmanagement

New AcroPlating®
technology
to eliminate

100%of hazardous
substances

respect
peopleBuilding
structures forrespecting
human rights
based on international
standards

Value Creation

Business Strategy

Platform

Data

At local manufacturing sites where water
resource issues are a concern, YKK will
reduce our water intake through efficient
usage, the development of new water saving
production methods, and the increased
recycling of wastewater. Our activities
promote a target to strictly manage
wastewater at all manufacturing sites inaccordance with government regulations
and YKK in-house standards establishedbased on industry standards such as Zero
Discharge of Hazardous Chemicals (ZDHC).
In FY2022, we furthered the introductionof production and water recycling equipmentthat uses water more efficiently but were only
able to reduce our water consumption 11.7%(compared to FY2018) against the 14%
target. We have continued to evaluate andidentify water risks in each country and region
and verified progress has been made to combat
these risks. In wastewater management, we willcontinue to implement wastewater processing
diagnosis and technology guidance at eachlocation to further improve the technology of
wastewater processing. YKK will revise its rules
on wastewater management methods withreference to the ZDHC Wastewater Guidelineand Higg Index as the wastewater management
standards of the garment industry.

In FY2022, we revised the YKK Restricted
Substance List (YKK RSL) to the FY2023
version, taking into account laws, regulations,and industry standards for chemical
substances related to fastening products.
Based on customer requests, we added
the AFIRM Restricted Substances Listand polyfluoroalkyl substances (PFAS) as
statutory compliance and we launched asurvey of suppliers. This survey evaluates thelevel of compliance with the Manufacturing
Restricted Substances List (ZDHC MRSL)
to not only reduce the use of hazardous
chemical substances that have the potential
to be used in fastening products but also
the hazardous chemical substances withthe potential to be used in production
processes or emitted into the environment.

These activities promote a switch to safer
chemical substances but also work to reducethe impact on the natural environment andpeople. In terms of new manufacturing
technology to eliminate hazardous
substances, we have expanded our lineup
of products made with the AcroPlating®
technology, a new plating technology forbrass that eliminates 100% of hazardous
substances such as cyanide, chromium, andselenium. The ratio of products produced
using AcroPlating®
technology for sale as
brass sliders increased
two points year on year to
18% in FY2022.

In FY2022, we performed YGCC self-checks at
all applicable locations and identified the levelof CSR carried out by our suppliers and otherbusiness partners in an effort to continually
reduce the risk of human rights violations.
YKK is responding to and amending any issues
identified at companies in each country andregion to reduce human rights risks.
The YKK Group Human Rights Policy
has also been updated to better suit modern
times and reaffirm the YKK approach torespecting people as well as identifying
and rectifying any human rights risks. To
more clearly identify potential human rights
risks, we also regularly review the YGCC
audit items and scope as well as the CSR
procurement questionnaire.

Going forward, we will also continue
to identify and evaluate human rights
risks through YGCC implementation and
CSR procurement, continue to promote
the building of relief systems, and work totransition to structures that conform to
UNGP and due diligence laws that will beenacted in the future in Europe.

Wastewater processing and diagnosis setup at YKK(Thailand) Co., Ltd.

YKK Group Human Rights Policy

https://www.ykk.co.jp/english/
corporate/csr/humanrights.html

This is YKK 2023

36█ Mid-term Management Plan and Business Strategy

Medium-term DirectionS trengthening Product Planning andDevelopment

Continuous Launches of Added-Value Products
YKK can provide a “one-to-one” response – thatis, understanding the needs of customers andmarkets of various locations, applying them toproduct development, and delivering the products tocustomers on a timely basis. This is YKK’s strength as
a company that conducts business globally. YKK is not
only focused on strengthening its core products but
will also place its focus on upgrading and expanding
products that are appealing to customers who seek
high functionality that is not found in core products.
At the same time, we are also focused on uncovering
the needs of customers and society and developing
products that will provide new value.
Major achievements in FY2022 include thedevelopment of a low-friction coil zipper that smoothly
opens and closes as well as a zipper that preventsfabric snags during use. At our manufacturing facilities,
we endeavored in equipment and line development tostrengthen the cost competitiveness of core products.
Going forward, YKK aims to strengthen productplanning and development capabilities, act withgreater speed, further expand eco-friendly products,
and build optimal manufacturing lines suitable toeach region to realize the right time, right material,
and right amount, which are all key points of futurebusiness execution. We will also strive to use digitaltechnologies to solve customer issues and realize
employee work-style reforms.

Product Planning and Development Policy According to Market
MarketValue
Conscious
Standard

Main Type of Customer

Policy of the Initiative

High-end brands
High-function sports apparel● Automobile interiors, etc.

●

 trengthening the development of green
Sproducts● Continuous launches of added-value
products●●●●

Casual apparel customers
European and American mass retailers,and e-commerce●

Thorough pursuit of cost competitivenessProduct Development Policies Tailored for Business Regions

Unified sales and development for
better product planning/development performance
Meeting customer/market demands centered around sustainability

Europe●Demand creation/sustainable product development●

Proposal of solutions based on latent demand

ISAMEA●●● nhance local materials/
E
technology research

China
●

●

 nhance product developmentEcapacity and shorten
development lead times
 nhance competitiveness byEpromoting in-house production

Kurobe●● nhance sustainability/Strengthening ofEJapan-specific products romote/support strengthening ofPoverseas development bases

 nhance development capacityE
for key value-added products

Americas

Enhance alliance strategy
●
●

ASEAN
●

●

Enhance high function product development
 xpand sales by introducing productsEdeveloped for domestic demand in SouthAmerica (jeans) oost technological capabilities through the activities
Bof specialized committees
Improve customer service by enhancing SE* activities*Sales Engineer

Development locations/personnel

FY2023 (plan): 39 locations/ 997 employees(38 locations/927 employees as of the end of FY2022)
37

This is YKK 2023

YKK Philosophy & Sustainability

Value Creation

Business Strategy

Product and Technology Development Example

Platform

Data

The YKK Digital Showroom introduces many
examples of customer voices and productdevelopment stories.

P.40

VISLON® Nylon, Mono-plastic Material
VISLON® Nylon is a product thatis expected to help shift garments
to mono-plastic materials highly
anticipated by the fashion industry.
Due to the almost entirely polyamide(nylon) structure, this new zipper can beeasily recycled together with the nylon
garment on which it is sewn, without
the need for removal. YKK ITALIA S.p.A.
has been manufacturing and selling
VISLON® Nylon as of March 2023.

Employee Voices

Mauro GrandisYKK ITALIA S.p.A.
Variation Item Development

This product, most of its parts are made of nylon,
illustrates a new direction in the use of raw
materials in industry. A zipper made using a monoplastic material that can be recycled expands thepossibilities for customers to create sustainableproducts. Our goal is to realize a sustainable future
together with these customers.

AcroPlating® Technology
We developed AcroPlating® as a new
plating technology for brass materials
that uses no conventional platingchemicals and eliminates the use ofharmful substances such as cyanide,chromium, and selenium. This new
finishing technology not only reduces
GHG gas emissions from manufacturing
processes but also saves water andpower, which dramatically reduces
the environmental impact of thosemanufacturing processes*. YKK will
broaden the number of fastening*Source: Life Cycle Assessment:
https://www.ykk.com/english/corporate/csr/c_news/2021/20210622e.html

products that take advantage of this technology
in the future.
Employee Voices

Masayuki Iimori

Development & Engineering
Department, Snap & Button
Business Division

The full removal of cyanide, chromium, and selenium
which have adverse effects on the health of humans
and other living organisms helps to improve theworking environment in the manufacturing process.
YKK has achieved an in-house integrated production
system that encompasses materials, manufacturing
equipment, and products.

Reducing the environmental impact of the dyeing
process with the cooperation of business partners
YKK Vietnam Co., LTD. Ha Nam Plant has teamed up with Patagonia,
a US outdoor company, and ERCA SPA, an Italian pharmaceuticalmanufacturing company, to implement the innovative REVECOL®*1dyeing auxiliary developed by ERCA into dyeing arrangement
processes of the zipper tape and elements. REVECOL® is a highly
functional and extremely safe dyeing auxiliary derived by upcycling
exhausted vegetable cooking oil. The shift to this dyeing auxiliary is

Left to right:
Matt Swartz (Patagonia), Fabio Locatelli (ERCA),

estimated to reduce the carbon footprint of products (CFP) by 72%*2,and Mike Maekawa (YKK Vietnam)

while reducing the annual use of dyeing auxiliary by 20% to 30%.
*1 REVECOL is a registeredtrademark of E.R.C.A. Esperienze
Ricerche Chimiche Applicate S.p.A.
*2 These figures are from the bluesign®
Product Carbon Footprint report,
which compares REVECOL® tothe conventional dyeing agents
manufactured by ERCA. Bluesign isa registered trademark of bluesign
technologies ag.

“This partnership has shown me once again
how important a lot of little steps like the shift
to an alternative dyeing agent can lead tosomething like this partnership. I will not only
further these efforts toward the realization of asustainable society but also do everything I canto raise more awareness throughout the entire
fashion industry as well as with consumers.”

This is YKK 2023

38█ Mid-term Management Plan and Business Strategy

Medium-term Direction

Thorough Pursuit of Cost CompetitivenessThoroughly Strengthen Cost Competitiveness of Core Products
The market environment has changed to an
unprecedented degree due to the COVID-19
pandemic. Regarding strengthening costcompetitiveness, which is recognized as a priority
issue in the 6th Mid-term Business Plan, and in
preparation for anticipated fierce competition aheadof us, we are making a thorough review of both thecore products that satisfy a wide range of customers
and regions, and monozukuri itself, including themachinery and equipment for making the products. We
are building production lines of differing specifications●

Vision●●●Progress on
Initiatives●

that match the business environments in each region.
Through organizational restructuring, engineersin zipper and machinery manufacturing have beenbrought together and resources concentrated onhigh-priority development themes. This makes it
possible to significantly reduce machinery andfacilities development times. From FY2023 and on,
this machinery and equipment will be introduced inturn into overseas sites to further strengthen our costcompetitiveness.

Construct optimal manufacturing lines for business environments in each region
 y reorganizing and integrating YKK HQ functions, boost development speeds
Band concurrently work on several development themes
Work to further reduce machinery prices
 evelop machinery and facilities tailored for market characteristics throughout
D
China and Asia
(Customer requests (responding to diversification), manufacturing labor costs, etc.)
 rioritize themes, concentrate resources, and link overseas operating companies toP
reduce machinery and facilities development times

From FY2023 and on, we will introduce machinery andequipment in turn into overseas companies to strengthen
the onsite cost competitiveness of core products
Strengthening Global Production and Engineering Functions and Training Local Human Assets
To achieve the thorough pursuit of cost competitiveness thatis set out as a goal in the 6th Mid-term Plan, we are sendingout production engineers from Kurobe in phases to overseas
locations. The goal is to speed up the introduction of local
equipment and products and strengthen cost competitivenessby expanding the scope of discretion for local manufacturingbases. As well, we are focusing on the training of local
production engineers in technologies that meet the needs andcharacteristics of local
markets in each region
and bolstering quality
assurance systems
at these locations byrunning certification
programs for certified
quality measurements
instructors and facilities
maintenance technicians.

39This is YKK 2023

Employee Voices

Xu JianHead of Maintenance,
LIN GANG FACTORY,
Shanghai YKK Zipper Co., Ltd.

Guided by production engineers from Japan,
I have learned knowledge and skills relating
to monofilament manufacturing. As an onsite
engineer, I understand that my most importantrole is the production of high-quality products.
I aim to build on the experience I’ve gainedso far to study new technologies, pass on
YKK technology and skills by training thenext generation, and move forward with thetimes. I want to respond to the major changes
in customer requests while having our work
contribute to a sustainable society throughsustainability initiatives and other means.

YKK Philosophy & Sustainability

Medium-term Direction

Value Creation

Business Strategy

Platform

DataS trengthening the Use of
Digital Technologies

Making Smart Factories a Reality

Building non-stop/unmanned production lines
Establishing the foundation to make smart
factories a reality
Responding to the shrinking workforce
Increase the quality of work and raise productivity byautomating simple tasks
Ensuring reliable quality
Stabilize quality by expanding the scope of AI image
inspection
Utilizing digital technology
Improve customer service by connecting the client to the
production site and making use of the data
Contributing to sustainability
Reduce energy consumption and CO2 emissions throughautomation and labor-saving Operating at 100% with zero
defects and zero waste

Pursuing a Stress-free Environment
Through the Use of Digital Technology
In response to the accelerating use of digital technology
in the garment industry, we are promoting digitalizationin all value chains, from marketing to product planning,development, manufacturing, and sales. These efforts
are led by our Digital Operation Planning Department,
established in FY2021.
For customers, we are working to link data by digitizing
product information and respond to demand for “righttime, right material, and right amount.” At the same time,
we are making active use of the YKK Digital Showroom,a venue for showcasing products and communicatingwith customers. In April 2023, we released YKK Trim
Creator, a new tool that instantly outputs 3D models ofzippers and product codes. The intuitive interface enables
customers to select the desired zipper size, color, andslider combination and create a simulation on the spot.
This reduces the actual sample production process, which
also helps to reduce the environmental impacts.
Also, in order to improve efficiency in internal
operations, we are working to standardize and automate
global business operations by introducing workflows andlinking core systems. As well, we are building platforms toenable true data driven management that uses BI and AI*
to make decisions based on data analysis.

We have listed strengthening the monozukuri of standard
category items and smart factories as manufacturing andengineering policies in the 6th Mid-term Business Plan.
YKK founder Tadao Yoshida aimed for a “dark factory,” ora factory that did not need to be lit because it was fully
automated and unmanned. To achieve this goal, we areengaged in the use of cutting-edge technologies, suchas robotics, AI, and sensors to achieve a fault-tolerant,
unmanned production line that can operate continuously
for long hours without the intervention of people.
As manufacturing becomes increasingly automated,
we believe that continuous improvement, upgrades, andevolution is supported by human assets who correctly
understand and practice basic principles, and for thisreason we have incorporated quality engineering into ourtraining since 2011. In 2022, we were awarded the Best
Paper in the Robust Quality Engineering Society*. In terms
of practical development, we are leveraging facilities andmachinery development for sustainability themes andcontributing to a reduction in CO2 emissions.
*Sponsored by the Precise Measurement Technology Promotion Foundation.

Investment in Digitalization (capital investment)¥

1.5 billion(FY2023 plan)YKK Digital Showroom (available in Japanese, Chinese, and English)
https://ykkdigitalshowroom.com/en/

YKK Trim Creator:
https://ykkdigitalshowroom.com/en/
gf/digitalization/ykk_trim_creator/
admission

Employee Voices

Alson NgYKK Holding Asia Pte. Ltd.
Global Marketing GroupYKK Trim Creator enables designers to visualize in a more
concrete way the colors and design of the zipper they want.
Plus, it can give them inspiration for new trim ideas andinstantly share their ideas with others.

*BI: Business Intelligence; AI: Artificial IntelligenceThis is YKK 2023

40

█ Mid-term Management Plan and Business Strategy

Community Activities: Be a Native

As a member of the community in which we operate, YKK provides a variety of value through its business. It includes
giving consideration to society and the environment, and contributing to the resolution of challenges faced by thecommunity. The following is a sampling of our recent initiatives in various countries and regions.

Supporting the Healthy Growth of Children through FootballASAO

The YKK ASAO Kid’s Football Clinic (AKFC) has been sponsored by YKK
in the ASAO region* since 2007. Run in cooperation with the Real Madrid
Foundation and other organizations, the clinic promotes children’s healthy
growth through football. More than 7,000 children have participated in
the program. The clinic was suspended during the coronavirus pandemic
but was resumed in Bangkok, Thailand, in 2022 for the first time in three
years. 284 children, including refugees, receive training from professionalcoaches. We will continue to bring smiles to children’s faces by supporting
their healthy growth in the future.		
*ASAO: ASEAN/South Asia/Oceania

Children who participated in the clinic

Employee Voices

Suraphong Tangphakphienkit
YKK (THAILAND) CO., LTD.

The Philippines

We had to temporarily suspend the program due to the effects of the coronavirus disease(COVID-19), but fortunately we are able to run it again. Watching the kids enjoy themselves
so much made us feel great, too.

Contributing to a Foundation for the Disabled, Aiming
for a Coexistence Society

At YKK Philippines Inc. we are practicing the Cycle of Goodness®,
respecting employees and the local environment, and working to improve
our corporate activities. As part of these efforts, in November 2022,
we donated wheelchairs, walking aids, four-legged canes, and otherwelfare equipment to the Create a Job for Disabled Association Inc., anorganization that supports the disabled in the Philippines. The organization
works to promote social inclusion for people with disabilities, and the
donated items will help to support people with disabilities in their day-today lives. YKK Philippines Inc. received an acknowledgment of gratitude
from the organization.

With users of the welfare equipment

Employee Voices

Annalyn Vinuya
YKK Philippines, Inc.

When the people who received and use the welfare equipment tell us how happy they are withit, it really gives us a boost, too. In the future, I want us to continue with activities that help
local people.

Linking with Designers on the Concept of Sustainability

China

YKK strives to contribute to a sustainable society. We work together withgarment companies and designers who share this commitment to develop
a range of eco-friendly products and technologies. At the 2022 Shanghai
Fashion Week, YKK held a digital fashion show in a collaboration with Rico
Lee, the Chinese clothing designer. Four lines were presented, which werecreated around the concept of “Nature” and using YKK fastening products
such as NATULON Plus® zipper. They conveyed to customers the idea ofenvironmental conservation and the experience of comfortable clothing.
Garment creations based on the concept of Nature
Employee Voices

Hou Ruizhen

YKK (China) Investment Co., Ltd.

41

This is YKK 2023

Through these activities, we want to encourage the younger generation to use YKK fastening
products, and join us in thinking about sustainability in the fashion industry.

YKK Philosophy & Sustainability

El Salvador

Value Creation

Business Strategy

The award ceremony

Individual Participation Office Environmental Activities

YKK Mediterraneo S.P.A. is working to reduce plastic waste produced in
its offices and raise employee awareness of environmental conservation.
In the break rooms, for example, the company has switched to coffee cups
and stirrers made of compostable material and entirely produced in Italy,
reducing both the annual use of plastic in vending machines by around 400
kg and CO2 emissions from transport. We are preserving our importantnatural environment through a series of small-scale initiatives, such as
installing water dispensers in the factory and distributing water bottles toall employees, to get everyone thinking about what actions they can taketo to protect the environment.

Japan

Children in the new classroom

Promoting Regional Development, Growing with the Local Community

Since establishing a representative office in Beijing, China, in 1989,
YKK has been conducting business with the aim of developing together
with communities throughout China. In 2022, Shanghai YKK Zipper
Co., Ltd. was recognized for the eighth year in row as a company thatmakes economic contributions to the Shanghai Pudong New Area, while
YKK (China) Investment Co., Ltd. received the Economic Outstanding
Contribution Award. As well, YKK Zipper (Shenzhen) Co., Ltd. was selected
as one of the 2022 Shenzhen Top 500 Enterprises, sponsored by theFederation of Shenzhen Industries and other organizations. Based on the
YKK Philosophy of the Cycle of Goodness, we will continue to undertake
business activities rooted in local communities.

Italy

Data

Supporting Learning Spaces for Local Children

As a member of the local community, YKK El Salvador S.A. de C.V. isproviding ongoing support to a school (Tecpan School) located near the
YKK plant. Tecpan School is a local school that caters to students fromkindergarten to 9th grade. However, the physical learning environmentis inadequate, with some students attending classes in a thin-walledclassroom with no windows. Learning of this situation, the company
supported the building of a new brick-walled classroom that met
government standards. Our hope is that the improved environment will
help promote local children’s education.

China

Platform

Newly introduced bio-degradable cups

Contributing to Local Revitalization through Town Development

A ceremony was held in March 2023 to celebrate the completion of thefirst phase (consisting of 94 units) of the employee dormitory, I-TOWN. The
dormitory is being developed by YKK Real Estate Co., Ltd. as part of a larger
town development project around Ikuji Station on the Ainokaze Toyama
Railway, which is close to the Kurobe Manufacturing Center in Kurobe City,
Toyama Prefecture. As part of the plan, YKK Group has joined the Council for
Promoting the Revitalization of the Ikuji Station Area, and has been working
with Kurobe City to study area revitalization through industry, government,
and private sector cooperation. We are planning to complete approximately
270 units by 2024 and contribute to the local area by continuing to workwith the community and government in developing the station area.

I-TOWN (Kurobe City, Toyama Prefecture)

This is YKK 2023

42