https://www.okr-ind.co.jp/

2022.12

We have a dream.

Introduction: About Okura Industrial GroupWe also have technologies to make thatdream into a reality.

Contents

Hoping to make people’ s lives more comfortable.
Hoping to create an innovative future.
To this end, we make sure that

03

History of Okura Industrial GroupWe will show you the Group’s

05

Marking Our 75th Anniversary

75-year history, as well as to an

07

Message from our President

overview of the Group.

11

Overview

13

Okura Industrial Group in Numbers

15

Special Feature

Strategies of Okura Industrial Groupevery product we deliver to the world helps people,
even if they are not eye-catching.
Each product one by one.

19

Medium- to Long-term Vision

The head of each division describes

23

Value Creation Process

the Group’s policies set out in the25

Financial Strategy

new Next 10 (2030) and Medium-

27

Business Strategy

term Management Plan (2024)

Fount of Okura Industrial Group’s Value
35

Sustainability Initiatives

This par t describes specific

39

Basic Approach to Climate Changesustainable activities the Group

41

Environmental Initiatives

carries out in its business activities.

Protect employees and serve society

47

Promise to Customers

49

Promise to Employees

Okura Industrial started its business in Takamatsu after World War II. When Kurashiki Aircraft Takamatsu Works was dissolved,

51

Safety and Health

Masaji Matsuda, then heading the Engineering Section, established the business to protect the livelihoods of his staff members and53

Contribution to Society

their families, as well as to provide necessary housing to people who lost their homes in the war. This founding spirit of protecting

55

Promise to Shareholders and Investors

employees and serving society should not be forgotten even if the times change. We respect and take pride in the spirit.

57

Promise to Business Partners

58

Corporate Governance

Our Founding Spirit

Origin of Company Name

Financial and Non-Financial Summaries

The company name comes from Kurabo Industries Ltd., at which our founder Masaji Matsuda worked for 10 years. He took “O”
from “Ohara”, the name of Kurabo Industries’ president Soichiro Ohara and “Kura” from Kurabo Industries. As “O” means “large” in65

Financial and Non-Financial Summaries

This part contains basic information

Japanese, he named his company Okura Industrial Co., Ltd. in the hope that it grows larger than Kurabo Industries.

67

Corporate Informationof the Group, including financial, nonfinancial, and corporate information.

Information on Our Website

Editorial Policy
In 2020, Okura Industrial Group identified materiality, which includes climate● Period covered● Sustainability● IR information● Corporate information

action, resource recycling measures, and other important issues in offering

Januar y 2021 to December 2021. Some parts of the report include

https://www.okr-ind.co.jp/sustainability/ (Japanese only)

https://www.okr-ind.co.jp/en/ir/

https://www.okr-ind.co.jp/en/company/

solutions through business. We have launched initiatives to achieve sustainability

business performance outside this period.

management, In 2021, we started to issue the Sustainability Report. This
report mainly focuses on activities in 2021. The purpose of the report is to let
our stakeholders know about a variety of initiatives and help them deepen theunderstanding of the Group’s activities.

● Scope covered

The report covers Okura Industrial and its Group companies.
● Referenced guidelines

Integrated Reporting Framework
Ministry of Economy, Trade and Industry’s Guidance for Collaborative
Value Creation

01

SUSTAINABILITY REPORT 2022

Main content▶︎ Sustainability at
Okura
Industrial Group▶ Environment▶ Social▶ Governance

Main content▶ A message from ourpresident▶ Performance Highlights▶ Status of shares, etc.

Main content▶ Company
philosophy▶ Company
profile▶ Divisions▶ LocationsSUSTAINABILITY REPORT 2022

02

History of Okura Industrial Group
Histor y of Okura Industrial Group

This section gives an introduction to the Group’s 75-year history through the times of transition.

Foundation of the Company

Foray into the polyethylene businessStart of particleboard production

Establishment of the New Materials Division

Present

We started as Shikoku Housing Co.,In the mid-1950s, polyethylene resin, developed

Matsuda had been concerned about

In the year after we formulated our

We have developed three core businesses andLtd., established by the founder Masaji

in the United States, started to attract attention

the destruction of mountain forests

first medium-term management plan,created products that are highly relevant to

Matsuda to protect the livelihoods ofin Japan. With his eyes set on polyethylene as acaused by postwar overcutting. He

the New Materials Division waspeople’s lives. We formulated Next 10 in 2018,

his staff members and their families

quality packaging material, Matsuda launchedthought of recycling scrap woodestablished. The division mainly

which is a management vision outlining where

and to provide necessary housing

the polyethylene processing business in 1956.

pieces as construction materials,

engaged in the manufacturing of highwe would like to be in 10 years. We formulated

to people who lost their homes inThis became the forerunner of the Plastic Filmand built the Takuma Plant in 1971

functional films, with the expectation

the revised vision Next 10 (2030) in 2022 and set

the war. Despite scarce resources

Business today.

to begin particleboard production.

that it can apply our film and press

focus fields, including living support, information andin the immediate aftermath of the war,

To focus on the polyethylene business, we changed

Our products had higher airtight-

technologies to the processing ofelectronics, functional materials for manufacturing

the Company achieved a significant

the company name to Okura Industrial Co., Ltd.

ness and quality than conventional

new materials and develop products

processes, and environment and energy. This

growth, making every strenuous effort

in 1955. In 1957, the No.2 Plant was constructed

products from other companies, andwith high added value.

means that we aim to increase customer value

to procure lumber and later embarking

and new business locations were set up. We thus

were highly regarded in Japan’s home

In 1989, we started to manufacture

by offering high functionality, based on underlying

on lumbering and comprehensive

steadily built the foundation of the Company.

appliances industry. We developed

retardation film, which is still one oftechnology, to be applied in growth areas in eachlumber businesses.

As polyethylene processing was new in Japan,

products in a user-centric way. For

the mainstay products of the New

field, as well as to create social and environmental

This spirit of protecting employees

operating the machines for the first time involved

example, we worked together with

Materials Business. Despite being

value by contributing to the environment.

and serving society still constitutes

struggles. Meanwhile, being an early adopter ina home appliances manufacturer andnew, the film was highly regarded

While we meet changing needs of the times, the spirit

our management philosophy.

Japan made the name Okura Industrial widelysuccessfully developed materials forin the liquid crystal industry, whichin our management philosophy, “Respect the

known in the chemical industry.

high-quality stereo speakers.

was then starting to grow, andIndividual,” “Contributing to the Society,” andgained a large market share.

“Customers First,” has not changed since the foundationof the Company. Our technology will continue to
evolve to make peoples’ lives comfortable.

2004

Net sales

Net sales

million yen)(million yen)

100,000

100,000

80,00060,000

1955

1977

Company shares listed on
the first section of
the Tokyo Stock Exchange andOsaka Securities Exchange
OPP*1 shrink launched

Lamination
Company
film launchedshares listed on
the first section of
the Tokyo Stock Exchange andOsaka Securities
Exchange
1980
launched
OPP*1 shrink
Maskingfilm launched

Lamination film launched

Okura Hotel Marugame opened
New Materials Division established

Okura Hotel Marugame opened
New Materials Division established

Urethane film for medical use(adhesive plasters) launched

2013

2008
Retardation film
OXIS™ launched

1989

1996 1989

1996

Urethane film SILKLON™
launched

Bag in Urethane
box launchedfilm SILKLON™
launched

Bag in box launched 2009

2021

Endo barrier™ launched
Urethane film for medical
use launchedcomori™
(adhesive plasters) launched
Ecocalmulch launched

2013

2019

Acrylic protective 2008
Acrylic
protective
Rex Board™
launched
film for polarizing Retardation
film for polarizing
film
2018
plates launched OXIS™ launchedplates launched
New management vision
Next 10 formulated

Flooring material
PB*2 launched

2016

Endo barrier™
comori™ laun
Ecocalmulch

2009

2016

Became a companyFlooring material
with an audit and PB*2 launchedsupervisory committee

2019
2018

Rex Board™ laun

New management vision
Next 10 formulated

Became a company
with an audit andsupervisory committee

1980
Masking film launched

40,00040,000Polyethylene film
processing began

plywood production,
Polyethylene film
plasterboard
manufacturing
processing
beganbegan

1947
Shikoku HousingCo., Ltd. established0

Particleboard (PB)
production began

1972

1956

Shikoku Housing
20,000Co., Ltd. established

1950

1971

Particleboard (PB)
production began

Renamed Okura
Industrial Co., Ltd.
1962
1956
Made a foray
into lauan

1947

1947

1971

1955

Renamed Okura
Industrial Co., Ltd.

01977 1970

1987

2021

80,00060,00020,000

1970

1987

2004

1947

1950

1960

1972

1962

1960

Head office relocatedto Marugame,
Made a foray
into lauanKagawa
plywood production,
plasterboard manufacturing began

1970

Head office relocatedto Marugame, Kagawa

1970

1980

1980

1990

1990

2000

2000

2010

2010

2020

*1 Biaxially oriented polypropylene*1 Biaxially oriented polypropylene*2 Particle board*2 Particle board

03

SUSTAINABILITY REPORT 2022

SUSTAINABILITY REPORT 202204

on this day, we hold a safety convention, at which we swear never to

we had our own seeds to work with. We cultivated our own seeds

let such a serious accident happen again, so that the accident remains

while learning from our customers. Thanks to those efforts, having

unforgotten.

accumulated underlying technologies that we obtained precisely

During the global financial crisis of 2008, our sales dropped severely.

because we took on the challenge of imposing technologies, we are

At the time, we had debts of close to 40 billion yen, and the situation

now able to save up seeds that are unique to Okura Industrial, allowing

gave us a good opportunity to consider what an appropriate level of

us to venture into even newer areas.

debt would be for the scale of our business. With our eyes on the longterm future, deciding that it would be best to build a strong financial

Kazunori Takahama
Chairperson,
Representative Director

M a r k i n g O u r 75 t h A n n i v e r s a r yof our customers and gave them shape, but that is not to say thatfoundation for a time, we emphasized cashflow-based business

The future of the Housing Materials and
Plastic Film Businesses

management and prioritized loan repayments over investment. These
efforts proved successful, and in the past few years, we have beenable to shift to a substantively debt-free footing. My sense is that, even

When I joined the Company, the Housing Materials Business madeas we faced such a crisis, we were able to turn it into an opportunityand sold plywood. Offcuts generated in the processing of plywood

and build an even stronger corporate structure.

were first turned into chips before being recycled into particleboard,which became a new business in itself. The plywood business was
also later expanded with the addition of secondary products suchas printed plywood board. Eventually, when it became difficult toimport the source lumber for these products, we withdrew from thatbusiness, and now, only the particleboard business remains. Because

Okura Industrial was founded with the aims of safeguarding

particleboard is made primarily from waste wood such as construction

employees’ livelihoods and helping to rebuild society. Even now, 75

waste, it recycles materials for the effective use of resources, thus

years later, we continue to value each and every one of our people, andcontributing to the recycling-oriented society.

our philosophies of creating value for society through our business and

The Plastic Film Business is Okura Industrial’s largest division, but it iscontributing to the solution of social issues have been passed down

now facing adverse winds from the moves away from plastic use. We

from generation to generation.

are now working on ways to contribute to the environment by building

The most valuable thing for Okura Industrial going forward is its

proper mechanisms for reuse. On the other hand, we also have an

people. To inspire in more and more people a desire to work for Okura

extensive range of products that are able to help reduce food loss,

Industrial, we will strive to establish a comfortable working environment

such as food packaging films, so I believe that we must also do what

for women, older people, and others of diverse backgrounds. We will

we can to promote the usefulness of plastic films.

also stride forward earnestly toward our 100th anniversary with theOn the occasion of the 75th anniversary of Okura Industrial’s foundation,

One factor behind the Company’s success in weaving such a longsame pride in “launhing key parts from Marugame to the world” as was

Chairperson Kazunori Takahama, who knows more than anyone about how thehistory of 75 years is, I believe, the fact that we have set up plants inthe case when we launched the New Materials Division.

Company has changed over the years, talks about the unique strengths thatmultiple locations around Japan and pursued a manufacturing strategy

Okura Industrial has cultivated amid both the favorable and adverse winds that itof local production for local consumption. In other words, by building

has faced, and about the outlook for the Company’s future.

plants close to where our customers are, we were able to create a

Planting roots in the community,
we will aim to become a 100-year company

Mar k ing Our
75th A nniver sar y

Planting roots in the community
to be a company that attracts people

structure that responds promptly to customers’ needs. We were alsoable to keep delivery costs and other costs down. Processing workis labor-intensive, often requiring many hands. Locating our sites
starting to attract attention at the time.

in regional areas allowed us to recruit as many people as possible,

Back then, this field was enjoying something of a boom in popularity,

which also helped us to grow. Unless we can win the trust of the local

with many companies flocking to it, but none of them had had muchcommunities in those respective areas, we would not be able to recruit

I joined Okura Industrial in 1975, which would have been just undersuccess. Within that field, the product category that we noticed

people from those communities. This is something that we were able

30 years after the Company was founded. At the time, the Company’s

had the most potential for future market growth at the time wasto achieve because of the deeply-rooted corporate culture that is

operated two businesses, housing materials and plastic film. In 1987,

thermoplastic polyurethane elastomer film (TPU).

symbolized by our management philosophy, “Respect the Individual,”

when I was in my late 30s, company founder and then President, Mr.

Subsequently, Sumitomo Chemical succeeded in developing a film

“Contributing to the Society,” and “Customers First.”

Matsuda, issued an order with the future of the Company in mind. He

made with polycarbonate to improve the visibility of liquid crystal

wanted us to come up with new businesses. He had just one condition.

displays (LCDs). They came to us, asking us to handle the mass-

Any new business we thought of must absolutely not overlap with the

production technology for this product. The resulting technology wasCompany’s current businesses. The two existing businesses wereretarder film, which is used on LCD devices. This became the first step

performing well, but I remember Mr. Matsuda saying, “It is now, when

toward the colorization of LCDs.

business is good and we have surplus investment capacity, that weThis technology was well received and was subsequently adopted

On the other hand, in that long history of 75 years, we have also faced

need to engage in new business. Even if you fail a little, the Company

for use on cell phones. Even later, a film combining retarder film

a variety of crises. In 1996, there was an explosion at the Takuma

won’t collapse, so you don’t have to worry about that.”and polarizing film was adopted for the very first smartphone, and it

Plant that resulted in many casualties. Learning our lesson from this

Until that time, the products handled by the Plastic Film Business

continues to be used for the latest models even today. In the initialaccident, under the basic philosophy of “safety first,” we establishedwere general-use plastics, such as polyethylene and polypropylene.

stages, before Sumitomo Chemical began purchasing from two

our motto of “safety as the base of our management.” To this day,Considering whether we could leverage the underlying technologies

companies for supply chain reasons, Okura Industrial was contracted

our employees chant this motto regularly on all manner of occasions,

we had cultivated in that business, namely film handling and film

for all production of these films, and we are proud that “made inwhich has served to instill a strong awareness of safety in each andformation technologies, to engage in new fields, we set our sights

Marugame” components dominated the entire global market.

every one of our people. November 28, the day that this accident

on engineering plastics and super engineering plastics, which were

When taking on new challenges of manufacturing, we took the needs

occurred, has been designated as “Okura Memorial Day.” Every year

How the New Materials Division came to be

05

SUSTAINABILITY REPORT 2022

Overcoming many crises to build resilience

SUSTAINABILITY REPORT 2022

06

Messagefrom ourPresident

We will contribute to the enhancementof value for customers and to solutions
to social issues to create social andenvironmental value through business.
In 2022, Okura Industrial marked the 75th anniversar y of its founding. In Februar y thisyear, we est ablishe d Nex t 10 (20 3 0), our management vision towar d 20 3 0, and our
Medium-term Management Plan (2024), which covers the next three years. Company

Susumu Kanda

President, Susumu Kanda, discusses the details and intentions of this vision and plan.

Operating Officer, President,
Representative Director

Aiming to be a 100-year company, with
our serious and earnest culture as our strength

There were two main factors behind our ability to prosper and continue

our customers underlying elemental.” Our previous medium-term

our business to the present day. One was that we were able to build

management plan was the first stage of that vision as we aimed to builda network through transactions with customers in diverse industries

the foundations for the Group. As a result, in 2021, the final fiscal year of

In 1947, not long after the end of the Second World War, Masaji

and fields. The other factor was the way in which have taken on thethe plan, we achieved a certain level of results, including 5.1 billion yen

The greatest feature of the vision is that it clearly sets out our path to

Matsuda, who was working in the city of Takamatsu at the time,

challenge of developing products that will be of benefit to society,in operating profit against a target of 4.8 billion yen.

growth. For the deepening of our portfolio, we have positioned thefounded a housing business, something that was indispensable to post-

using the technological capabilities we have cultivated in response to

However, the impact of the COVID-19 pandemic that began in early

focus areas of information and electronics, functional materials for

war reconstruction. His objectives were to safeguard the livelihoods

customized manufacturing. That we have accomplished these things

2020 created radical changes in business styles and people’s lifestyles.

manufacturing processes, environment and energy, and life sciencesof the people where he worked and to be of use to society as it rebuilt.

is thanks to our employees, who have engaged in their work seriously

Furthermore, there have been dramatic changes in the externalas the growth areas in our focus fields. 65% of the total amount of 65.0

Subsequently, the Company continued to venture into new businesses

and earnestly from our early years until the present. I believe that ourenvironment, including the acceleration of the global trend toward abillion yen to be invested until 2030 will be allocated to growth (expansion)that were needed by society, including starting the manufacture of

employees are our greatest strength.

carbon-free society. In light of these changes, we revised the medium-and strategic (new) investments in these areas. The objective of this is topolyethylene film with imported raw materials in 1956. In addition to

As we are more a processor and manufacturer than a device industry,

to long-term vision Next 10 into Next 10 (2030), extending the term until

improve our materials design and processing technologies in each of

manufacturing, the Company expanded into the service industry,

much of our manufacturing relies on material design and our employees’

2030 and setting portfolios and numerical targets that made our focus

these areas, with the aim of enhancing value for customers.

including the hotel business, and into the cold storage business.

operational skills. Even with the advancement of automation throughfields clearer.

In particular, in the areas of information and electronics and functional

Most of the Company’s employees were from Kagawa or wider Shikoku

IoT and AI, new development, manufacturing wisdom, ideas, andUnder a basic policy of “deepening our business portfolio,” the goal

materials for manufacturing processes, we will aim for growth byisland. From 1960 onward, when the Company expanded nationwide,

concepts still come from people. With our employees who approachof the vision is to transform the Company’s business model with themaking priority investments in materials for industrial processes,

employees were transferred to different locations around the country,

all things seriously and earnestly and our organizational culture as ouraims of solving social issues and enhancing value for customers.

including 5G milli-wave-compatible materials used to preventand today, the customers we serve number in their thousands in many

strengths, we will contribute to the solution of social issues throughUnder Okura Industrial Group’s management philosophy of “Respectdisruption of radio waves, display materials used in digital signage andand varied industries. Meanwhile, our manufacturing business focusedbusiness and aim to become a 100-year company.

the Individual,” “Contributing to the Society,” and “Customers First,”

electric vehicle (EV) dashboard displays, films that are essential to theon order-made products customized to our customers’ needs. By

the vision clearly states that we will achieve sustainable growth and an

manufacture of semiconductor components and automotive parts,

conducting product development aimed at popularizing products

increase in corporate value by conducting business operations that

acrylic adhesives for EV components, and films used in batteries forin Japan that were already widely available overseas, we improved

focus on ESG (environment, social, governance), with the Sustainability

smartphones and other devices.

Policy of “Aiming for corporate growth, keeping in mind ourIn the environment and energy area, with the objective of resources

coexistence with society, so that we may continue to be a company

recycling, we will proceed with investment in the development oftrusted by society through business.”

recycled products, including converting waste plastics retrieved fromour technological capabilities. In the 1990s, we were one of thefirst companies to focus on the future potential of digitalization. We

07

Revision to Next 10 (2030) in light of changes
in the external environment

promoted the development of electronic and optical materials, which

As our management vision Next 10 for the next 10 years, wehave since grown into a major pillar of our business today.

established a policy of being “a preferred solution partner withSUSTAINABILITY REPORT 2022

Please refer to page 19 for details about Next 10 (2030).

Clarifying our path to growthin four business areas

the market back into raw materials and using them to make recycled

SUSTAINABILITY REPORT 202208

including bags used in cell culturing equipment, we will promoteresearch into health foods made with raw materials extracted from
cultivated agricultural products.

Focusing efforts on conversion of living support
category to environmental contributing products
Another feature of the vision is that, while many of our product ranges
in the Housing Materials and Plastic Film Businesses are related
to housing and food, which are closely connected to daily life, wewill work to convert our living support category, which includes
these products, to environmental contributing products, as well as
strengthening our development of new products. To this end, we havedefined our environmental contributing products and given them thename “Caerula™.” Currently Caerula™ account for about 30% of theliving support category, but we have set a target of converting halfof the category to environmental contributing products by 2024 andall of the products in the category by 2030. In our housing materials
business, we product particleboard, which is a recycled product, but
we will work on the development of wooden materials with the aim ofprotection of forest resources and their effective use toward 2030.

Changes to organizational structure forestablishment of platform andstrengthening of foundations
Continuing on from the previous medium-term management plan, which
was the first stage of Next 10 (2030), the Medium-term Management

Total investment of 25.0 billion yen planned,
almost double that of the previous
medium-term management plansystem is currently underway, and it is scheduled to be up and runningof our management structures and making prompt decisions

in January 2023. We are also planning to expand the installation offor sustained growth, we will work to enhance the quality of oursimilar solar power generation systems at other plants going forward.

management through dialogue with our stakeholders, so that we may

Further, as I mentioned earlier, we have established a system for giving

continue to be a company that is trusted by society.

We have planned total investments of 25.0 billion yen, which is almost

the “Caerula™” name and logo to products that are able to contributedouble the total investment amount of 13.4 billion yen of the previous

to CO2 emissions reductions and mitigation of environmental impact,

medium-term management plan. Growth and strategic investments

thus designating them as products that contribute to a sustainableaccount for over 60% of that total. In particular, we aim for further

society. In our pursuit of business activities that will contribute to thegrowth in the information and electronics and functional materials

development of a synergy between the Company and society, we will

for manufacturing processes areas through strategic and growth

convert all products in the living support category to environmental

investments. Specifically, with an investment of some 6.0 billion yen

contributing products by 2030. Further, to promote recycling of plastic

in a plant that produces polarizer-protection acrylic film for large

products, which are our core business, we will aim for the recycling of

LCD televisions, we will double our production capacity, with massat least 30,000 tons per year.

This year, Okura Industrial Group marked the 75th anniversary of its
founding. Looking back on that long history, we could describe it asa history in which, while overcoming many difficulties accompanying
changes in society and with the support of our many stakeholders, wehave made contributions through manufacturing that are of benefit tothat the majority of our customers for some of our functional materials

society and people.

planning the establishment of production sites overseas in locations

Declaration of endorsement of TCFD
recommendations and active disclosuresclose to those demand centers.

At the beginning of this year, just as we were hoping to see a recovery
from the slowdown in the global economy caused by the COVID-19
pandemic that began two years ago, Russia’s invasion of Ukraine

That we are now able to emphasize these kinds of growth and strategic

In February this year, we declared our endorsement of the TCFD

caused the prices of various resources and energy to skyrocket,

investments in our business management is largely due to the steadyrecommendations and joined the TCFD consor tium, which

and we have faced increases in costs. By undertaking initiatives andrepayment of our debts after the global financial crisis in 2008, tocomprises companies and financial institutions that endorse theinvestments aimed at overcoming this crisis and achieving our next

the extent that we are now substantively debt-free. A certain portion

recommendations. For each of the Plastic Film, New Materials, andgrowth, we will strive to increase investment returns and pass thoseof those strategic investment funds has been set aside for M&As.

Housing Materials Businesses, based on the TCFD recommendations,

returns onto our shareholders. Regarding shareholder dividends, with

Working together with other companies, we will strive to open up new

we conducted scenario analyses of the risks and opportunities broughta basic policy of continuing to issue stable dividends, we will aim for aareas with a sense of speed.

by climate change, calculated the financial impacts of key risks andpayout ratio of 30% or over in the medium to long term.

opportunities, and considered what actions to take. The results of thisMy hope is to make ours a company that will listen to the voices ofprocess were disclosed to stakeholders in April. Going forward, in

our stakeholders, stride forward together with them, share our results

addition to pursuing initiatives aimed at a carbon-free society, we willwith them, and bring them joy. Even in an external environment of such

expand our information disclosures regarding our actions.

strong uncertainty, through improvements to our financial structure,

Please refer to page 21 for details about the Medium-term Management Plan (2024).
Please refer to page 25 for details about financial strategies.

Solving social issues through businessand aiming for sustainable growth

Please refer to page 39 for details about the TCFD.

I believe that the time has finally arrived in which we will be able to
make focused allocations to growth and strategic investments and tosteer the Company toward growth strategies. By continuing to meet

Plan (2024) has been positioned as the second stage of “establishment

In its Sustainability Policy, Okura Industrial Group’s states its aim forof platform and strengthening of foundations.” Due to the impact ofcorporate growth through business, keeping in mind our coexistence

the COVID-19 pandemic during the period of the previous plan, sales

with society, so that we may continue to be a company that is trusted

activities and development activities were severely curtailed. In light ofby society. Under this policy, we will offer solutions to social issues

In our approach to S (society), with the aim of the realization oftrusted by society.

this, with the aim of further enhancing the quality of our business, wethrough business to contribute to the creation of a sustainable society,diversity, we have formulated a new personnel evaluation system andI respectfully request your continued guidance and support.

have made changes to our organizational structure to strengthen thewhile also aiming for sustained corporate growth. We will promote

educational program that will allow all employees to participate actively

foundations of our existing businesses for Next 10 (2030).

activities for our ESG initiatives based on the “materiality” defined byand challenge themselves, to encourage their growth. In addition toFirst, in our existing businesses, in January 2022, we merged Groupthe Company and our “business base continuity.”

respect for human rights, we will aim to be a company in which allcompanies Kansai Okura Co., Ltd. and Kanto Okura Co., Ltd. ,which

Please refer to page 35 for the status of our ESG initiatives.

Aiming to be a company that remains
trusted by society

are able to participate actively in the workplace. Also, with coexistencewith society in mind, we will participate actively in activities aimed at

Promoting initiatives toward climate actionin the Kanto region, which has a large market, to raise our presence

the revitalization of local communities.
Further, as a company with its head office in Kagawa, we believe that
it is essential that we contribute to regional revitalization. Given that

there. In the Housing Materials Business, we added a precut businessFirstly, in terms of E (environment), we consider action on climate

population aging and decline are particularly advanced in many of theand a house business to our business segment. Leveraging thechange to be an issue of urgency. We will work on such action with theregions in which we have business premises, including our production

strengths of these two businesses to create synergies, we will develop

target of reducing our CO2 emissions by 50% in 2030 compared withsites, while thinking about what we can do together with the respective

and sell easy-to-install panels in response to labor shortages in the

FY2013 levels. Specifically, the basis of our activities will be thoroughlocal governments of those regions to reinvigorate the regions, webuilding industry, as well as non-housing products, with the aim ofenergy-saving activities on the factory floor. We will also engage inhope to take part in a range of activities.

amplifying added value.

the installation of energy-saving equipment in all business premises,

Finally, we have our approaches to G (governance). As a company

As an organizational change geared to growth investment, we havestarting with the replacement of light bulbs with LEDs. Other actions

that has elected to transition to the Tokyo Stock Exchange’s Prime

established a new specialist team with a marketing function in the

include the installation of a solar power generation system for private

Market, while satisfying the rules of that market and meeting the

Research & Development Center. Until now, marketing could only be

consumption, the introduction of CO2 -free power from the electricity

requirements for internal control systems set forth in the Companies

considered within the framework of individual development projects. Withmarket, and expanding the use of biomass.

Act, we will strive to enhance the operation of the Board of Directors

the addition of dedicated marketing staff, we now hope to discover the

One particularly noteworthy investment is the installation of a private

and our compliance systems. As a concrete measure to this end, webuds of our next businesses while taking a bird’s-eye view of technologicalsolar power generation system on the roof of Building D of the New

have established a Nomination and Remuneration Committee. Going

trends, and add those buds to our new development themes.

Materials Division in the head office precinct. Construction of thisforward, in addition to increasing the transparency and effectiveness

SUSTAINABILITY REPORT 2022

results, Okura Industrial Group will strive to enhance the quality of its

employees, including women, older adults, and people with disabilities

Going forward, we will combine the technologies held by these two
the aim of increasing profitability. We will also increase our sales force

the expectations of our customers and society and achieving steadymanagement, with the aim of being a company that continues to be

manufacture plastic films, into a single company, KS Okura Co., Ltd.
companies to create new environmental contributing products with

09

Always together with our stakeholders

production scheduled to commence at the end of 2023. Also, given
for manufacturing processes are located overseas, we are currently

Message from our President

films. In the life sciences areas, in addition to medical products,

SUSTAINABILITY REPORT 2022

10

Ove rv i e w
A preferred solution partner withour customers underlying elemental
Okura Industrial Group has been offering products and services that meet the needs of each customer. Our business categories consist
Company, we have always held the spirit of contributing to society through business.

New Materials
32.3%

Pl a s t i c Film B u s in e s s

N ew M a te r i a l s B u s i n e s s

Net sales
breakdown

Housing Materials
7.8%

of Plastic Film, New Materials, Housing Materials, and Other. We marked our 75th anniversary in 2022, and since the foundation of theOver view

Other
5.8%

Fiscal year ended［ December
31, 2021 ］

Plastic Film
54.1%

H o u s i n g M a te r i a l s B u s i n e s s

Other Businesses
Hotel Business
Our hotel boasts a prime location,
overlooking the Seto Inland Sea. It serves
not only as a business and tourism hub
but also as a place for gatherings in thelocal community.

Information Processing BusinessWe mainly engage in sof twaredevelopment. We also operate andm a i n t a i n I CT sy s te m s , a s we ll a s
manufacture and sell package software.

The Plastic Film Division offers plastic packaging film essential for

The New Materials Division has a vision to launch key parts to the

The Housing Materials Division offers various materials for houses,

people’s daily lives. The film is light, strong, safe, and functional.

world. Building on Okura Industrial’s long-standing film processing

furniture, and other products widely used in daily life. Our advanced

Housing Business

Our products are used for a variety of fields, from food packaging

technology, the division delivers high functional products totechnology, based on the decorating and processing techniques

We build and renovate homes in Kagawa,and other daily necessities to components of electronic devices.

users around the world. Such products include optical films for

we have developed over time, is friendly to living space for elderly

offering comfortable, safe, and durable

Today, we take full advantage of cutting-edge technology for oursmartphones and TVs and urethane elastomer films for automobile

people and children. We also offer safe and secure business space.

housing.

film, which protects goods that are important for customers.

parts and medical use.

Particleboards, which are our mainstay products, are produced

We are also committed to the development of products that reduce

We will continue to deliver our products to constantly evolving fields

based on cutting-edge FA technology and under strict safety andenvironmental impact. We are working to expand and propose

with high social needs, such as the electronics and information

quality control. They are highly regarded in many industries.

products made from plants and other renewable, bio-based organic

materials, automotive, and medical and welfare fields.

As products that enable material recycling through the recycling ofPrecut Business
Based on extensive data on architecture,resources. Going forward, we will not only manufacture and sell film

scrap wood and other wood resources, particleboards also contribute

we offer constructional material processing

as independent products but also make total proposals, with an eye

to environmental protection and resource and energy saving.

(precut processing) and materials

to incorporating in our business the entire process from developing

From the fiscal year ending December 31, 2022, net sales and(architectural hardware, basic materials,

materials to finishing end products.

operating profit for the Housing Materials Division will include thoseetc.) for wooden buildings. Our products
enable safe and speedy on-site work.

of Okura House Co., Ltd. and Okura Precut System Co., Ltd.

Net sales

Net sales

Net sales

Net sales(million yen)(million yen)(million yen)(million yen)

50,00049,34149,65449,31146,50147,82930,00028,52427,01022,91523,42410,000
8,000

7,500

8,188

8,068

7,410

6,000

40,00024,00030,00018,0006,000

20,00012,000

4,000

3,000

10,000

6,000

2,000

1,500

0

2017/122018/122019/122020/122021/120

22,2202017/122018/122019/122020/122021/120

6,254

2017/122018/122019/122020/12

6,912

6,272

6,316

4,778

2021/120

2017/122018/12

Operating profit

Operating profit

Operating profit

Operating profit(million yen)(million yen)(million yen)(million yen)

5,000
4,000

4,458

4,029
3,219

3,000

3,642

4,267

3,000

1,000

600
2018/12

1,822

1,800
1,200

2017/122019/122020/122021/12

2,373

2,400

2,000

0

500

2,720

0

1,110

1,134

400

2018/122019/122020/122021/12

456
372

800
600

200

400

0

123

2017/122019/12715

2019/122020/122021/122021/12

810
531
256

200
2018/122020/12

5,154

1,000

300

100
2017/12

465
382

5,727

4,500

0

2017/122018/122019/122020/12302

2021/12* Figures include those for Okura House and Okura Precut System

11

SUSTAINABILITY REPORT 2022

SUSTAINABILITY REPORT 2022

12

EstablishedNet sales

1947

88.4

billion yen（million yen）
100,000

90,812

Number of employees

5.5

1,966 123,023 7,238

billion yen

t-CO2

86,260 85,364

80,00080,958

親会社株主に帰属する当期純利益
Profit attributable to owners of parent（million yen）
5,891
6,000
4,800

60,000

5,531
4,366

3,600

3,894

4,509

（million yen）
3,500

2,720

2,800

3,417
2,899 2,865

（yen）
75

1,400

30

20,000

1,200

700

15

2018

2019

2020

2021
（year）

0

2017

2018

2019

2020

0

2021
（year）

55

55

60

2017

2018

2019

2020

2021
（year）

0（t-CO2）150,000

132,409

120,000

126,750

13

2017

2018

2019

2020

123,023

118,340
94,81402021（year）

2017

2018

2019

2020

2021（FY）

by 22.7% year on year to 5,531

parent for 2021 increased by 19.2%

70 yen per share, an increase of 10

increased by 28,210 t-CO2 year on

million yen.

year on year to 3,417 million yen.

yen per share year on year.

year.

960

944

1,029

1,060

949

1,047

5,051

4,800

4,673
3,698

8
6

5.6

6.4

6.0

6.7

60

4

30

240

1,200

2

15

0

0

0

2021
（year）

2017

2018

2019

2020

2021
（year）

2017

2018

2019

2020

50.3

51.8

55.6

59.4

61.1

0

（days）
15

（％）
100

12
9
6

8.0
44.0

7.5
40.5

8.8
49.4

9.6
52.8

3
2017

2018

2019

2020

2021
（year）

Research and development

Capital expenditures for 2021

ROE for 2021 increased by 0.7

Equity ratio for 2021 increased

expenses for 2021 increased byincreased by 975 million yen year

percentage points year on year toby 1.7 percentage points year on

98 million yen year on year to 1,047

on year to 4,673 million yen.

6.7%.

year to 61.1%.

million yen.

2020

2021
（year）

0

40

720

30

480

13.8

13.9

14.8

15.3

16.0 20

240
2017

2018

2019

2020

2021（FY）

Waste emissions for 2021 increased

Water usage for FY2021 increased

by 571 tons year on year.

by 12,754 m3 year on year.

0

10

2017

2018

2019

2020

0
2021
（year）For 2021, the number of employees

Number of employees using
育休
the childcare leave system

勤続年数
Number of average service years

休業労働災害件数
Number of lost time accidents（persons）
25（years）
20（cases）
10：Number of paid leave days taken：Percentage of paid leave days taken

45

2021
（year）

2019

960

decreased by 14 year on year, while the

Number and percentage of
有給休暇取得日数・取得比率
paid leave days taken

自己資本比率Equity ratio

2,400

2020

2018

（％）
50

by 0.7 percentage points year on year.

480

2019

FY20212017

1,071 1,057 1,043

implemented in July 2018.)

3,600

2018

300,000

1,164

percentage of female employees increased

720

2017

for

360,196
347,442（persons）
1,142
1,200

(Reverse stock split was

（％）
75

6.4

emissions0

Number of employees(non-consolidated)
and
従業員数
・女性比率
percentage of female employees：Number of employees：Percentage of female employees

445,336

400,000

100,000

yen.

（％）
10

6,667

7,238

2,000

9.2% year on year to 88,420 million

5,846

8,245

30,000CO 2（million yen）
6,000
5,561

7,220

200,000

Dividends declared for 2021 were（million yen）
1,200

7,749

4,000

Profit attributable to owners of

ROE
Return on equity (ROE)

8,000

（㎥）
500,000

60,000Ordinary profit for 2021 increased

設備投資
Capital expenditures

水使用量
Water usage (municipal water)*1

6,000

Net sales for 2021 increased by

研究開発費
Research and development expenses

産業廃棄物
Waste emissions *1（t）
10,00090,000

45

2,100

2,400

2017

70

60

2,442

CO2排出量CO2 emissions (Scope 1 and 2)*1

株主配当
Dividends

40,0000t

N on - Fina ncia l Hig hlig ht s

経常利益
Ordinary profit

88,420Waste emissions

Ordinary profit

Fina ncia l Hig hlig ht s
売上高Net sales

CO2 emissions

Okura Industrial Group in Numbers

O k u r a I n d u s t r i a l G r o u p i n Numbers

0

2017

2018

2019

2020

80

20

54.8 60

15

10.0

21
17
14
10

10

16

0

2021
（year）

8

2

4

0

2020

16.2

4

5

2019

16.1

8

20

2018

15.7

6

10

2017

16.4

12

40

0
2021
（year）

16.5

2017

2018

2019

2020

2021
（year）

0

7

6

5

4

1
2017

2018

2019

2020

2021
（year）The number of lost time accidents

The number of per-person paid leave

The number of employees who

The number of average service

days taken for 2021 was 10, a year-

used the childcare leave system

years for 2021 was 16.2, about thefor 2021 was 5, a year-on-year

on-year increase of 2.0 points infor 2021 increased by 4 year onsame as for the previous year.

increase of 4.

percentage of paid leave days taken.

year to 21 in total.

*1 These results are subject to assessments by independent experts

13

SUSTAINABILITY REPORT 2022

SUSTAINABILITY REPORT 2022

14

Special Feature｜Product Introduction
Special Feature™
(Ecocalmulch)Made from agricultural andhorticultural plastic waste andnurtures crops again

We have made mechanical recycling of agricultural
plastics a reality, although it had been considereddifficult. This reduces the environmental impact,
compared with thermal energy recovery. Effective

Separate
agricultural andhorticultural
plastic waste

Behind the Development of Ecocalmulch

use of plastic resources is taking place on farmland.
With regard to agricultural and horticultural plastics in Japan,

Recyclemechanical recycling of PVC products is increasingly becoming

Developed in 2021, Ecocalmulch is a multi-film made fromagricultural and horticultural plastics, mechanical recycling ofcommonplace. This means that waste is recycled as raw

which had been considered difficult.

materials for products. Meanwhile, most polyolefin products

Challenges we faced were different from those in the recycling

are discarded after use or sent for thermal energy recovery,of film waste generated in our manufacturing process, which we

Making plastic resource
recycling a reality

where heat generated from incineration is collected and used.
In recent years, there have been growing demand forhad been working on. The product is made from agricultural andhorticultural plastics used in the market, and those plastics aremechanical recycling, instead of thermal energy recovery, tomade of different types of resin and have different levels of dirt

use resources effectively. Under such circumstances, Okura

on them. In addition, we needed to remove soil, sand, and otherIndustrial Group worked with Sojitz Pla-Net Corporation

kinds of dirt that cannot be supplied to manufacturing facilities.

to consider mechanical recycling of polyolefin agriculturaland horticultural materials, looking to recycle them as raw

We therefore started from considering the use of used agricultural

Used on farmland

and horticultural plastics with relatively little dirt on, whichmaterials for products. Having found the potential, we

had been sent for thermal energy recovery across Japan fromdecided to use the polyolefin materials for agricultural multi-

Hokkaido to Kyushu. Simultaneously, we conducted research on a
manufacturing method that can constantly remove dirt.

film. Our Ecocalmulch is made from used agricultural film,
Turn into multifilm products

which is collected from farmers, cleaned to the level fit formechanical recycling, and turned into recycled raw materials.

As we proceeded with the development, unexpected issues
came up, such as resins other than polyethylene contained in the

Recycled plastics collected from farmers account for 25%

agricultural and horticultural plastics with relatively little dirt on. Thisor more of all plastics contained in the product. While

made it necessary to not only explore the manufacturing methodmechanical recycling generally degrades physical properties

but also to separate and manage polyethylene, which we wereof and have other negative impacts on products, Ecocalmulch

trying to recycle, in used agricultural and horticultural plastics.

shows performance equivalent to that of our conventional

Eco Mark certified productproducts. We have received positive feedback from users.
By turning farming waste into recycled raw materials and

The Eco Mark is a Type I environmental label given by the Japanmaking it possible to use them as agricultural materials, we

Environment Association. The mark certifies products thattook the first step toward a circular economy. The Group will

have small environmental impacts throughout the life cycle,

continue to develop and offer products that contribute tofrom production to disposal, and are regarded as helpful forplastic resource recycling.

Eco Mark certification number
2 0 1 1 8 0 0 5

environmental conservation. Ecocalmulch has acquired the Eco

In addition, the quality of agricultural and horticultural plastics usedin the market affects the quality of multi-film produced from them.
We addressed this issue by establishing an inspection method.
To expand the range of recycling, we are now considering in the
Company recycling agricultural and horticultural plastics with large
amounts of dirt on. We will proceed with the consideration so that

Kenzo Takebayashi
Environment and Energy Development Department,
Research & Development Center

we will be able to contribute to resource recycling.

Mark for category No. 118, Plastic Products.

Trademark registration number JP6416460

15

SUSTAINABILITY REPORT 2022

SUSTAINABILITY REPORT 2022

16

Special Feature

Virus infection prevention system for endoscopy

Mold panel for concrete™

™

™

Protects patients and healthcare workers
from viruses and makes
endoscopic examination safe for everyone

The patient stays in a box, and the inserted

Mold panels for concretethat contribute to a sustainable society

Droplet infection prevention film
Framecontinuous suction tube forms a negative

We have created a wooden composite basematerial using Japanese lumber and recycledpressure. This virus infection prevention

lumber. Using Japanese lumber leads tosystem for endoscopy prevents droplets from

effective use of domestic resources.

spreading in the examination room and makes
endoscopy safer.
M any endoscopic examinations of the digestive tract
have been cancelled or postponed due to COVID-19,

Mold panels for concrete* used for construction works

Phlegmsuction tube

in Japan are usually made of lumber from Southeast* Used as necessary

Asia. In recent years, logging for such lumber has raised

resulting in lost opportunities for early detection andEndoscopetreatment of cancer and other diseases. To protect

Oxigen supply tube

not only healthcare workers but also the health of* Used as necessary

Continuous
suction tube

patients, we have commercialized Endo barrier™, a

Film : Purpose-made polyethylene film
(disposable)● Frame : Jig to fixate purpose-made film●

Against such a backdrop, comori™ was developed andcommercialized as an environmentally friendly concrete

system was developed jointly with National University

The combination of droplet infection prevention film and purpose-made frame creates a semi-

product is made of a wooden composite base material,

Corporation Kagawa University, which came up with ahermetic space. By forming a negative pressure in the semi-hermetic space surrounded withcomprised of waterproof wooden board made of legal

method to block the spread of aerosols emitted fromthe film, users can minimize the spread of droplets.

lumber and plywood made of Japanese conifers or

patients.

afforested trees. It is also lighter than conventional

Endo barrier™ not only prevents direct contact

products, reducing the burden on aging workers.

contains the spread of droplets in examination rooms.

Behind the Development of Endo barrier™

Used for construction works

comori side

Concrete side

Behind the Development of comori™

* Concrete formwork panel
Wooden panels used to mold raw concrete in construction

Patients can therefore safely undergo the examination.

works, etc.

In addition, using Endo barrier™ can help healthcare

Conventional mold panels for concrete have aworkers reduce the burden of countermeasures against

Endo barrier™ is a product that takes advantage

infection, such as cleaning, sterilizing, and preparingof technology and knowledge held by more thanTrademark registration number JP6446859

history of nearly 50 years. Their specifications

for those measures. The product has been adopted

one division and department of Okura Industrial.

Trademark registration number JP6446860

have hardly changed, which has established users’at medical institutions across Japan, from university

We therefore worked on the development in close

hospitals and general hospitals to clinics. We havecollaboration with many departments and project

received positive feedback from them.

members across divisions. Before commercialization,

Okura Industrial Group will continue to actively develop

we also received direct feedback and request fromand commercialize products that can contribute tohealthcare workers and made improvements bysociety.
Design registration number JP1683900
Design registration number JP1700260
Trademark registration number JP6411558

17

concerns over its environmental impact.

formwork panel, which can be used repeatedly. The

virus infection prevention system for endoscopy. The

between patients and healthcare workers but also

Used for construction works(bypass construction site)

SUSTAINABILITY REPORT 2022

Takumi Yamane
Product Support Section,
Planning Department,
New Materials Division

profound understanding and experience with

Waterproof
wooden board

testing prototypes on the frontline of healthcare.
We will continue to listen and respond to users’ voices
and develop new products, so that we can offer our
processing solutions to solve problems in the world.

regard to product specifications. In developing

High-performancesheet

Plywood made ofJapanese conifers

comori™, a new product, we attached importanceto the process of identifying issues based primarily on

Kozo Takeshita
ManagerBusiness Management Department,
Sales and Administration Department,
Housing Materials Division

frontline users’ voices and making improvements.
In addition, we analyzed a wide variety of ways to
use the product and improved quality, so that it canbe accepted as a new option. We will continue to
strive to increase the level of recognition of comori™.

SUSTAINABILITY REPORT 2022

18

Medium- to Long-term Vision
Medium- to Long-term Vision

Okura Industrial’s Strengths in Focus Fields

Management Vision Next 10 (2030)

Okura Industrial’s strengths lie in our material design technologies and processing technologies. Combining those strengths with our strength in the form of

We will create social and environment value through our activities
and helping both to improve customer value and address social issues.

our sales networks that access a wide range of industry customers through each business segment, we will catch up in growth areas and applications in our
focus fields, with the aims of new product development and the creation of new businesses.

－ Fo c u s F i e l d s－

Field

Next10(2030)

Allowing people to live in safety and comfort
Food and agriculture, living spaces, livingware, healthcare, medicine“Goal” toward next decade

Reducing environmental and energy burden
Sustainable materials, volume reduction, recycling, energy-saving

Businesses that allow people to livein safety and comfort

LivingsupportPlastic New Housing
Film Materials Materials

Area

Life
Food &
sciences beverages

Housing
Livingware Agriculture
environment

Information&electronics

Businesses related totelecommunications

Functional
materials for
manufacturing
processes

Business that contributes to parts
that benefit product manufacture

Functional materials
for manufacturing
processes

Environment&
energyBusinesses that reduce
environmental and energy burden

Environment&
energy●●Information&electronics●

Strengths
Networks with customers in many andvaried areas●

Front runner among optical film processing
manufacturers●●

Accumulation of product development
capabilities and molding technology knowhow●●

A preferred solution partner with ourcustomers underlying elemental

Relating telecommunications
High-speed communications, flexible devices, mobility

A company that istrusted by society
A corporate groupwith technologicaladvantages●

System cooperation with end users,
trading houses, and distributors

Deepening of Business Portfolio
For the deepening of our portfolio, we will focus our investment on the fields that we consider to be growth markets and areas, namely information andelectronics, functional materials for manufacturing processes, environment and energy, and life sciences. In the living support category, which is one of
our core businesses, we will aim for growth through investments aimed at the conversion and expansion of environmentally conscious products, based on

75th Anniversary

2018

2021

2022

STAGE1

2024
STAGE2STAGE3

Establishment of platforms and strengthening of foundations

environmental contribution.

2030

2027
STAGE4

Expansion of business areas

Introduction phase (expand share through injection of resources)

Growth (undertake strategic investments)

High

Realization of management vision

Roll out into overseas markets

Environment& energy(all)

Information& electronics(New Materials)

Aims for Business Portfolio

Livingware

t
en
nm
iro
v
n
e
ing
HousingHousenvironment

r

o

d

u

r t

Agriculture

Structural reform

Redefine as environmental contributing products

Livingware(Plastic Film)

Stable (cash acquisition)

Food &
beverages(Plastic Film)

Housingenvironment(Housing Materials) Agriculture(Plastic Film)

p

s
c t

Life sciences

Physicalpropertiesp o

H e a l t h & a g r i c u l tu r e

growth areas and applications in each field.

i ng

Life
sciences(all)lby contributing to the environment in theie n t aas to create social and environmental value

Material design
CoatingLamination
Printing
OpticalDurability
properties

v

o

s

Electricalproperties

Information & electronics

Stretching

L i

ag

r

n g

customers by offering high functionality,

Compression

Underlying
technologies

Function

ack

i

m

Environmental
Film
properties
Extraction productionand energy. We will aim to enhance value forbased on our underlying technologies, as well

Convenience

&p

v

n

manufacturing processes, and environment

Functional materials for
manufacturing processespand electronics, functional materials for

L i fenuEnvironment& energy

focus fields of living support, information

E

Food & beverages

Market growth rate

The business portfolio will consist of the

Functional materials
for manufacturing
processes(Plastic Film/New Materials)

Low
Low

High

Okura Industrial’s business opportunities

Management Indicators
Net sales (by focus field)
The financial targets in our management indicators are
to increase net sales from 71.2 billion yen in 2021 after
application of the Accounting Standard on Revenue
Recognition to 120.0 billion yen in 2030, with the aim of
10.0 billion yen in operating profit. In particular, we will
strive for expansion related to the fields of informationand electronics, functional materials for manufacturing
processes, and environment and energy.

Proactive investment geared to deepeningof business portfolio■Living support■Information & electronics■Functional materials for ■Environment & energy
manufacturing processes

Net sales 120.0 billion yen
Operating profit 10.0 billion yen

80.0
60.0

Environment &energy-saving
10％

40.0
20.0
0

SUSTAINABILITY REPORT 2022

Total
65.0
billion yen
Growth
25％

2021

2024

2027

2030

* Net sales after application of the Accounting Standard on Revenue Recognition: 71.2 billion yen (2021)

19●

Strengthening offoundations
25％（billion yen）
100.0

Expansion of overseas sales in functional
materials for manufacturing processes
and information and electronics areas

Strategic investments(including M&A)
Strategic
40％

26.0 billion yen

Investments in developmentof advanced-function films● Overseas/M&A investments● Investments to strengthen
management foundations(DX, human resources, etc.)●

Environment &energy-saving investments●

Launch key parts to the world
Expand overseas sites conducting local
production for local consumption
Overseas
15％

71.2
billion yen
6.5 billion yen

Overseas30％

120.0
billion yen
Japan
70％

Japan
85％

2021

2030

* Net sales after application of the Accounting Standard on Revenue
Recognition: 71.2 billion yen (2021)

SUSTAINABILITY REPORT 2022

20

Medium- to Long-term Vision

Net Sales and Operating Profit by Segment

Medium-term Management Plan (2024)(Units: million yen, %)Net sales

Review of Previous Medium-term Management Plan
Comparison of net sales, operating profit, etc.
2021 plan

2021 results

Comparison of net sales/operating profit

Net sales

93.0 billion yen

88.4 billion yen

Operating profit

4.8 billion yen

5.1 billion yen

ROE

-

6.7％

Ordinary profit before
depreciation andamortization

10.0 billion yen：Net sales (left axis)（billion yen）
100.0

80.0

10.0 billion yen

85.3：Operating proﬁt (right axis)

88.4

80.9

5.1

4.2

4.8

10.9

3,686

31.2

Housing Materials Business

10,512

13,000

2,487

23.7

Other Businesses

1,158

2,500

1,341

115.9

Consolidated total

71,27084,00012,729

17.9

Operating profit

2021 results

2024 plan(Units: million yen, %)

2021
plan

Profit margin Change (amount) Change (percentage)

New Materials Business

2,373

2,400

15.5

26

1.1

4.0

591

800

6.2

208

35.4

0

2021
results

5,214

15,500

Housing Materials Business

02010
results

53,00011,813

9.4

2.0

2019
results

47,785

5,000

20.0

⇒Supply constraints due to semiconductor shortages

Plastic Film Business
New Materials Business

4,267

Impact of COVID-19

Downturn in demand due to move away from plastics

Change (percentage)

Plastic Film Business

40.0⇒Sudden slowdown in economic conditions, lockdowns, supply chain disruptions

Change (amount)

6.0

Difference from plan:
Drastic changes in external environment

3.72024 plan（billion yen）
10.0
93.0
8.0

60.0

2021 results

Other Businesses

732

17.2

166

400

16.0

233

141.0

All companies(2,276)(2,400)

-

(123)

-

Consolidated total

5,123

6,200

7.4

1,076

21.0

* Net sales figures for 2021 are after application of Accounting Standard on Revenue Recognition* Net sales and operating profit figures for 2021 are after the change of Okura House Co., Ltd. and Okura Precut System Co., Ltd. from the Other Businesses segment to the Housing
Materials Business segment

Priority Measures

Okura Industrial’s Strengths in Focus Fields
We will enhance our material design technologies andArea

Net sales(2024)

Businesses that allow
people to live in safety
and comfort

Life
Food & Housing
Livingware Agriculturesciences beverages environment

59.0
billionyen

Information&electronics

Businesses related totelecommunications

Information&electronics

15.0
billionyen

Functional
materials for
manufacturing
processes

Business that
contributes to parts
that benefit productmanufacture

Functional materials
for manufacturing
processes

7.0
billionyen

Environment&
energy1.2
billionyen

Field

processing technologies and, in our focus fields, invest
management resources into areas and applications where
growth is expected, with the aim of expansion. Net sales targets
for 2024 in each field are 59.0 billion yen in living support,
15.0 billion yen in information and electronics, 7.0 billion yen
in functional materials for manufacturing processes, and 1.2
billion yen in environment and energy.

LivingsupportEnvironment Businesses that&
reduce environmental
energyand energy burden

Plastic Film Business segment

New Materials Business segment

・Develop and expand products that contribute to global environment

・Expand sales of optical films for large displays

・Develop functional products that can contribute to society

・Expand business in automotive and high-end display areas

・Strengthen of downstream service functions needed for realization

・Overseas expansion (open up new markets, establish sites)

Housing Materials Business segment

Research & Development Center

・Increase net sales through full production and full sales of PB* products

Capital Expenditures, etc.

（35％）

and numerical targets for 2024. We plan for net sales of 84.0
billion yen and operating profit of 6.2 billion yen in 2024, the final
year of the current medium-term management plan.

（billion yen）

：Net sales (left axis)

100.0
80.0

72.5

60.0
40.0

3.7

：Operating proﬁt (right axis)（billion yen）

84.0
67.5

4.2

71.2

5.1

6.2

0

10.0
8.0
6.0

2.0
2019
results

2020
results2021
results

2024
plan

Medium-term management plan (2019‒2021) Medium-term management plan (2022‒2024)

Strategic investments (including M&A)

（30％）

Growth investments（8％）

Environment & energy-saving
investments

（27％）

0
2019–2021●

Construction of overseas manufacturing sites●

Introduction of advanced-function film manufacturing
facilities●

Environmental business investments

Strategic investments

13.4 billion yen

4.0

20.0

Life sciences* Particleboard

Net Sales and Operating Profit Plans
application of Accounting Standard on Revenue Recognition

Information and electronics

・Develop new substrates and new products oriented toward
new business fields

25.0 billion yen

This graph shows restated net sales results for 2019–2021 after

Target fields : Environment and energy

・Expand non-PB products that will contribute to reductionof environmental burden and to SDGs

Growth investments, environmental & energy-saving
investments●

Increase production capacity of optical films
for large displays●

Expand manufacturing facilities for environmental films●

Promote reduction of CO2 emissions

Investments to strengthenfoundations

2022–2024* Net sales results for 2019–2021 are restated results after application of Accounting Standard
on Revenue Recognition

21

SUSTAINABILITY REPORT 2022

SUSTAINABILITY REPORT 2022

22

Value Creation Process of Okura Industrial GroupVa l u e C r e a t i o n P r o c e s sWith the underlying technologies we have cultivated over many years, Okura Industrial Group will provide products and services that cancontribute to the enhancement of value for customers and to solutions to social issues, to create social, environmental, and economic value.

Value provided Page 35

Materiality

Page 37

Management Vision Next 10 (2030)

Financial capital * Non-consolidated

44,372 million yen

●

ROIC

6.42％

Decarbonization

v

i r
o n
m e n t a l

p r

u si

ng

HousingenvironmentoHoEnvironmental valuedu

11 locations*Lifesciences Agriculture● Provision of solutions throughc

Caerula™

t

Human capital●* Caerula™ is the name given to productcategories accredited by the Group as
environmental contributing products

Improving corporate reliability andtransparency

Number of employees(consolidated)

1,966

Percentage of female employees(non-consolidated)

16.0％

2021

Thorough prevention of contamination

STAGE1

2024

2027

STAGE2

Establishment of platforms and strengthening of foundations

2030

STAGE3STAGE4

Expansion of business fields

Realization of management vision

Economic value

Coexistence with local communities

Social capital●

Relationships of trust with stakeholders●

Customer satisfaction surveys

Medium-term Management Plan (2024)

Developing working environment where
employees are motivated to work

STAGE2●

Energy usage

58,649 kl●

Water usage

495,545 m3

Page 21● Elevation of business portfolio

Natural capital
Information
securityn

Healt
h & agriculture

Livingware● Realization of carbon neutrality●

Advancementof IoT and
AI technologies

Information &electronics

Business base continuity Page 38

Diversity& inclusiona sustainable societyngPlants with external certifications● Contribute to the realization of

&

agi

●

e

L

p

Conducting research and development
geared to creating innovation

4,673 million yen

Capital expenditures

Lif

Gaining a competitive advantage by
promoting digital transformation (DX)Japan: 15; Overseas: 2●

Food &
beverages

ing sup

Number of sites

Functional
materials
for manufacturing
processes

Promoting CSR procurement

regional issues and to revitalize
regionsck

Underlying technologies
Film production/Stretching/Coating/Printing/
Lamination/Compression/Extraction

Environment& energy

iv●

Diversity an
respect forhuman rights

1,047 million yen

Manufacturing capitalWork style reform● Contribute to business to solve

E●● Aims for business portfoliopaResources
conservation
and recycling

Research and development
expenses

Further promoting resource recycling
measures
Creating and expanding environmental
contributing productsIntellectual capital●

underlying technology and is selected by customers

ent

52.0％

Net assets

nm

Equity ratio●v ir o●Social value

A solutions partner that creates new value throughPromoting management for decarbonization(climate action measures)enCapitalPage 19s

8,619 million yen●

rtClimate change

o

Input

Social issues《Basic policy》
1. Qualitative improvement of existing businesses→ Strengthening of earning capacity
2. Expansion of strategic and growth investments
3. Promotion of sustainability and ESG● Continuation of stable dividends

2024 quantitative targets
Net sales: 84,000 million yen
Operating profit: 6,200 million yen
2030 quantitative targets
Net sales: 120,000 million yen
Operating profit: 10,000 million yen* Cumulative data from April 2021 to March 2022

Mottos×Management

Okura Industrial Code of Ethics
philosophy* Number of plants with external certifications (accreditations) is based on registration numbers
ISO 9001 certification registrations: 5/ISO 14001 certification registration: 1/FSSC certification registration: 1/Flexible Packaging Hygiene Association (JFPHA) accreditation
registrations: 2/Japanese Industrial Standards (JIS) certification registrations: 1/Japanese Agricultural Standards (JAS) certification registration: 1

23

SUSTAINABILITY REPORT 2022

SUSTAINABILITY REPORT 2022

24

Financial Strategy

Financial
Strategy

Priority allocation of investments into expected areas of growthIn firming up the contents of the current Medium-term Management Plan (2024), instead of our usual practice of compiling policies and numerical targets

We will aim for sustained growthby enhancing earnings capacity
and capital efficiency

brought up from the individual business divisions, we discussed what the Group’s resources are and where its strengths lie across the boundaries of businessdivisions. Then, having considered what we should do to change our conventional methods to create a virtual cycle of growth throughout the entire Group, wewere able to decide on investment allocations by creating an order of priority, namely how much weight to give which fields, in our goal to enhance corporate value.
In terms of major investments, within those businesses that we are currently engaged in, we will make priority allocations as growth investments to increasing
the production capacity of optical films for large displays and to investing in production facilities for environmental contributing products. In addition, as
strategic investments in areas where future growth is expected, we plan to invest in the establishment of overseas production bases in the area of functional
materials for manufacturing processes and in environmental businesses with new businesses in sight. M&As are included in strategic investments, and we will
strive to speed up growth through collaboration.
As the person with responsibility for financial control, I hope to provide back-up where necessary in proactive investments being made by the individual
business divisions. I will also engage proactively in M&A and collaboration projects that transcend divisional boundaries.

Eiji Fukuda
Operating Officer, Director
General Manager, Finance and Business
Administration Department,
Corporate Center

Setting of net sales targets in four focus business fields
By increasing our competitiveness so that we can achieve

Business portfolio and investment plan by area

sustained growth through the enhancement of earnings
Field

capacity and capital efficiency, we are aiming for net salesof 84.0 billion yen and operating profit of 6.2 billion yen in
the final fiscal year of the Medium-term Management Plan
(2024). We have also focused on ROE, which is an indicatorthat our shareholders and investors consider important,

Clearly showing our aggressive management posture based on the strengthening of our financial position
In the Medium-term Management Plan (2024), we declared that we would make qualitative improvements to our existing businesses, expand our strategic andgrowth investments, and promote sustainability and ESG with the aim of elevating business portfolio. By working to strengthen our management foundations
and earning capacity through these initiatives, we will strive toward sustained growth and the enhancement of corporate value.
Since the global financial crisis of 2008, Okura Industrial Group has made efforts to constrain investment costs and reduce borrowings to improve our financial
soundness. As a result, our debt level, which was just under 40 billion yen in 2008, fell to 19.7 billion yen in 2015, and is now down to just 2.8 billion yen.
On the other hand, cash and deposits have increased to 9.8 billion yen, and with cash and deposits exceeding borrowings since 2020, we continued to be
substantively debt-free. As a result, we have maintained a high level of equity ratio of over 60%.
Having strengthened our financial position, we have now clearly indicated an aggressive management posture in the current Medium-term Management Plan
(2024). Specifically, we have increased the total amount of investment for the three years of the Plan to 25.0 billion yen, which is double that of the previous
plan. Further, 65% of that total will be allocated to growth and strategic investments, with priority investments in high value-added areas and areas that are

and we plan to achieve an ROE of at least 8%.
To this end, we have designated living support, informationand electronics, functional materials for manufacturing
processes, and environment and energy as our focus fields.
We will enhance our material design technologies andprocessing technologies and invest management resources
into areas and applications in those focus fields where

LivingsupportBusinesses thatallow people to livein safety and comfort

Capital
Net sales
expenditures(2024)(2022–2024)

Area

Life
Food &
Housing
Agriculture
Llivingware
sciences beverages
environment

59.0 billionyen

9.1 billion
yen

Information Businesses&
related toelectronics telecommunications

Information&electronics

15.0 billionyen

8.3 billion
yen

Functional Business thatmaterials for contributes to parts
manufacturing that benefit productprocesses manufacture

Functional
materials for
manufacturing
processes

7.0 billionyen

2.5 billion
yen

Businesses thatEnvironment
reduce environmental& energy
and energy burden

Environment& energy

1.2 billion
yen

0.2 billion
yengrowth is expected, with the aim of expansion. Net sales
targets in each field are 59.0 billion yen in living support,
15.0 billion yen in information and electronics, 7.0 billion yen
in functional materials for manufacturing processes, and 1.2
billion yen in environment and energy.

expected to grow, with the aim of strengthening our earning capacity.
Please refer to page 21 for details about the Medium-term Management Plan (2024).

Status of funding

Capital expenditures, etc.

Borrowings
Maintaining
substantively debtfree management
since 2020

Investment
approximately doublethat of previous
medium-term
management plan

19.7 billion yen

13.4 billion yen
15.0
9.8 billion yen

10.0
5.0
0

2017

Cash and deposits

2018

2019

2020

Strengtheningof foundations（27％）

2021 2022.1Q

Borrowings
2019–2021

25

Growthinvestments（30％）

Environment & energy-saving
investments（8％）

2.8 billion yen

2016

SUSTAINABILITY REPORT 2022

corporate growth through business, keeping in mind our coexistence with society. In addition, we have established four basic principles, namely “balance

Construction of overseas
manufacturing sites● Introduction of advanced-function
film manufacturing facilities● Environmental business
investments●

Growth investments,
environmental & energy-saving
investments
Increase production capacity of
optical films for large displays● Expand manufacturing facilities
for environmental films● Promote reduction of
CO2 emissions

between business and ESG,” “conservation of the global environment,” “compliance with laws and regulations, respect for human rights, and consideration of
the labor environment,” and “information disclosures and dialogue.” To act on these four principles, we will allocate management resources appropriately andactively disclose financial information.
In the Medium-term Management Plan (2024), we have set indicators for ESG initiatives for the promotion of sustainability, and the entire Group will take action
to achieve them.

Aim to expand earning capacity for the return of profits to shareholders●

7.4 billion yen

2015

forward, we will change the name of such activities from “CSR” to “sustainability,” and to continue to be a company that is trusted by society, we will aim for
Strategic investments(including M&A)

(billion yen)

20.0

Okura Industrial Group has practiced CSR-oriented business management with the aim of continuing to be a company that is trusted by society. Going

25.0 billion yen

Strategic
investments（35％）

Proactive disclosure of financial information

2022–2024

Okura Industrial positions the return of profits to shareholders as one of its most important issues. Firstly, to respond to the drastically changing environment,
we will strive to expand earning capacity by deepening our business portfolio, conducting strategic and growth investments, and promoting sustainability and
ESG initiatives. After that, we will conduct management that emphasizes the balance between capital efficiency and financial soundness toward sustained
growth and the enhancement of corporate value. Our basic policy for shareholder returns is the continuation of stable dividends, and we will strive to raise thelevel of dividends while taking business performance and financial soundness into account.
Further, in addition to actively conducting high-quality dialogue with our shareholders and investors for the enhancement of corporate value, we will also
conduct information disclosures for that purpose.
I respectfully request the continued guidance and support of our shareholders and investors into the future.

SUSTAINABILITY REPORT 2022

26

Business Strategy

Plastic Film BusinessBusiness Strategy

Toward Achievement of Medium-term Management Plan
Review of previous medium-term management plan
In the previous medium-term management plan, the Plastic Film Division engaged in (1) environmental products, (2) expansion of direct supply sales tolarge-scale users, and (3) strengthening of competitiveness in existing business as its basic strategies. In environmental products, we conducted productdevelopment that focused on the issues of microplastics and container volume reduction and succeeded in growing our environmental contributing products(biomass, biodegradable) and spout pouches (volume reduction). Further, in late 2021, we partially launched a recycling system for the mechanical recycling ofwaste plastics. In expansion of direct supply sales to large-scale users, we developed functional films for manufacturing processes and began delivering themto large-scale users. We also entered the contracted filling processing business and began Machinery and Packing Sales. In strengthening of competitivenessin existing business, we focused on producing results from large-scale investments made in the medium-term management plan before last, but due to delays
in commencing operations of newly installed OPP shrink film equipment, we did not achieve our targets. On the other hand, as a result of the establishment of
Saitama Okura Co., Ltd. in 2019 and our efforts to improve our bottom line through the integrated production and sales approach, major improvements were made.

By st rengt hening our diver se film product ion
technologies and issue-tailored services functions,Operating Officer, Director
Division President,
Plastic Film Division

Hideki Uehara

Initiatives toward achievement of new medium-term management planwe aim to evolve from film manufacturer to an

The focus areas of the Plastic Film Division in the new medium-term management plan are (1) environmental products, (2) automation and labor-saving, (3)environmental and functional solutions company

functional materials for manufacturing processes, and (4) expansion of business into new fields. In environmental products, we will focus on the expansionof biomass plastics and products made with recycled materials, the development of easily recycled mono-material products, and the expansion of sales ofbarrier films for the extension of food product use-by dates. Also, continuing from the previous medium-term management plan, we will further grow salesof spout pouches to help reduce container volume. In automation and labor-saving, in addition to focusing on the expansion of sales of biodegradable andfunctional films as labor-saving items for agribusinesses, we also plan to grow Machinery and Packing Sales, the foundations for which we established in theprevious medium-term management plan. In functional materials for manufacturing processes, we will introduce products that anticipate vehicle electrification

Business Performanceand the growing demand for electronic components and optical films. In new fields, in addition to expanding online sales and the contract filling processing
business, which we began during the previous medium-term management plan, we plan to develop secondary battery components and films for medical use.

Due to changes in market conditions prompted by environmental issues, sales volumes of general packaging films, trash bags, and the like fell, but increased

In the immediate term, in response to the sharp rises in raw materials prices, we will value engineer and strive to reduce costs through further improvements indemand for industrial-use films and an increase in sales volumes of agricultural-use films due to sales expansion efforts resulted in net sales of 47,829 million

productivity.

yen, a year-on-year increase of 2.9%.
Operating profit fell by 4.3% year on year to 4,267 million yen, due to rising prices of raw materials and delays in transferring those price rises to product prices.

Net sales(million yen)

49,34150,000Operating profit
49,65449,31146,50147,829(million yen)
5,000

40,0004,000

30,0003,000

20,0002,000

10,0001,000

02017/122018/122019/122020/122021/12

0

4,458

4,029
3,219

2017/122018/123,642

2019/12

4,267

Process toward achievement of new medium-term management plan
2022 goals

2023 goals

2024 goals (final year)● Expand sales and reinforce capabilities● Commercialize mechanical recycling● Establish total recycling scheme andof environmental contributing productsthat were pursued in the previous
medium-term management plan (recycled
sheets for building decorative materials,
biomass shrink film, Ecocalmulch, etc.)
2020/122021/12● Complete product price revisions due

introduce mass balance system (CO2
credits)● Reinforce manufacturing facilities forrefill pouches, promote environmental
products to municipality-designatedtrash bags (recycled/biomass products),
and expand products made withrecycled materials● Focus on mobility/EV and semiconductor

areas with functional materials for
manufacturing processes● Enterto sharp rises in raw materials prices● Establish● Aggregate production facilities

frameworks for film andsystem proposals and labor-saving
equipment proposals

into and expand new fields(batteries, medical, OEM business,
online sales)

Risks and Opportunities
TopicsSocial issues

Value offered by Okura Industrial Group● Environmental issues● Population issues● Energy issues

・Climate change

・Population decline

・Microplastics

・Falling birthrates andaging populations

・Sharp rises in fossil
fuel prices

・Reduction in plastics
usage
・Food loss

・Energy self-sufficiency
rates
・Economic efficiency
・Environmental
compliance● Reduction of CO2 emissions through recycling technologies

and environmentally friendly products● Provision of functional materials for manufacturing processes

using material design and lamination technologies(responding to advanced needs for automotive EV-related
components)● Reduction of food loss through provision of advanced-

function films● Automation and labor-saving through film & system proposals

Far infrared reflective film
Far infrared reflective film developed jointly by Okura Industrial andToyota Boshoku Corporation achieves both a high reflection rate of
far infrared rays and electrical insulation. This film has been fitted tothe headlining of the “Mirai”, brand new model, Toyota Motor’s thelatest Fuel Cell Electric Vehicle. By reflecting radiant heat (far infrared

Roof panel
Radiation

Nonwoven
fabricFar infrared( reflective
rays )

Barrier film

Far infrared
reflective layer
Okura
Industrial
developed
product

Substrate
corerays) from the roof panel, which has been heated by sunlight, withthe reflective layer on the underside of the ceiling, it keeps heat fromentering the vehicle cabin, thus reducing the load on the car’s air
conditioning and contributing to less in-use fuel consumption. We

SurfaceskinPrevious
product

Newly developed
product

are currently working to roll out this product to other models as well.

27

SUSTAINABILITY REPORT 2022

SUSTAINABILITY REPORT 2022

28

New Materials BusinessBusiness Strategy

Toward Achievement of Medium-term Management Plan
Review of previous medium-term management plan
In the previous medium-term management plan, the New Materials Division’s aims were to expand our acrylic films’ share of the polarizing plate market,
venture into new display areas, and to expand the adoption of functional automotive components. The previous plan’s period saw the emergence of COVID-19
and the unforeseen circumstances of the pandemic, but due to stay-at-home-related demand and the expansion of remote work, the market for smartphones,
tablets, and televisions grew, resulting in the strong performance of the optical film market.
On the other hand, the impact of the global semiconductor shortage and COVID-19 lockdowns forced production cuts of many products, including
automobiles, office automation equipment, and industrial equipment. However, in the automotive market, even in this environment, the EV market, automotive
display market, and market for automotive exterior protective films all grew. As a result, optical films for displays, products for smartphones, and automotive
products maintained their strong performances, and we were able to achieve its numerical targets for the final fiscal year of the plan.

By supplying optical-function films and functional
components that are essential to ICT devices, we will

Operating Officer, Director
Division President,
New Materials Divisioncontribute to the development of the ICT industry andTomoo Ueta

Initiatives toward achievement of new medium-term management plan
Our stated goals in the current medium-term management plan are the expansion of sales of optical films for large displays, the expansion of business in theto the realization of a smart society

automotive and high-end display areas, and overseas expansion (opening up new markets and establishing bases). This year, the first fiscal year of the plan,we will conduct capital investments in equipment for optical films (acrylic film) for large displays, in preparation for full-scale mass production from December
2023.
The acrylic film products that we supply are primarily adopted for protective applications of polarizing plates used in LCD televisions. LCD televisions havebecome progressively larger in recent years, with 65-inch or larger models expected to account for the majority of televisions sold in the next few years. With

Business Performance

this trend toward larger screens, demand for polarizing plates is expanding year by year. Our products have been rated highly by customers for their quality

With optical films for large LCDs and products for smartphones maintaining strong performance throughout the year, net sales reached 28,524 million yen, up

diverse automotive displays and new types of displays (flexible, micro-LED, etc.) in an effort to expand the adoption of our products.

and stability of supply, so we hope to respond to customer demand through this investment. We will also pursue the development of optical film products for

21.8% year-on-year.
Operating profit increased by 109.2% year-on-year to 2,373 million yen, the result of the increase in net sales and efforts to further improve productivity.

Process toward achievement of new medium-term management plan
Net sales

Operating profit(million yen)(million yen)
30,00028,52427,01024,00022,22022,91523,424

3,000

1,822

1,800

12,000

1,200

6,000

600

2018/122017/122019/122020/12

2,373

2,400

18,00002,7202021/12

0

1,110

1,134

2022 goals

2023 goals

2024 goals (final year)● Conduct● Complete new acrylic film production● Commence full-scale operation of newcapital investment in new
acrylic film production line

● Obtain manufacturer accreditation for

new automotive items
2017/122018/122019/122020/122021/12● Consider concrete plans for overseas

line and obtain accreditation
mass production of new
automotive items

acrylic film production line

● Commence● Expand● Establish overseas manufacturing sites● Commence

expansion

processing business forautomotive market
business at overseas
manufacturing sites● Expand renewable energy● Review

equipment and facilities for
reduced carbon emissions and energy
saving(solar panels)● Operate plants using renewable energy

Risks and Opportunities
Social issues● Realization of a smart society through developmentof the ICT industry● Realization of a safe and secure mobility society● Realization of an environmentally friendly society● Realization of healthy and comfortable lifestyles

Value offered by Okura Industrial Group● Provision of optical-function film products and functional

components essential to ICT devices● Provision of functional film products and functional materials

compatible with evolution of mobility● Provision of functional films and medical products to support

medical and nursing care settings

TopicsConsideration of establishment of overseas manufacturing sites for
Functional Materials Business Unit products
As part of the strengthening of our business foundations, we are considering the establishment ofoverseas manufacturing sites for Functional Materials Business Unit products. The ratio of overseas
sales to total sales has been increasing in recent years, and we believe that establishing overseas sites
will give us an advantage in the pursuit of business activities in terms of the product transport, rawmaterial importation, and the expansion of product sales.
We are considering this plan with a view to commencing overseas production and sales within 2024,
the final year of the Medium-term Management Plan (2024).

29

SUSTAINABILITY REPORT 2022

SUSTAINABILITY REPORT 2022

30

Housing Materials BusinessBusiness Strategy

Toward Achievement of Medium-term Management Plan
Review of previous medium-term management plan
Housing Materials Division worked to strengthen the structure of our two core businesses of particleboard products, which are materials, and building decor
material products for home interiors and home equipment using laminating technology, etc. In the particleboard products, we pursued streamlining and themitigation of line shutdown risks through preventive maintenance with the aim of stable operation of manufacturing lines. We also strived to expand production
volumes through improvements in operating rates and productivity.
In building decor material products, against a background of resources depletion and growing environmental issues, we discontinued the manufacture andsales of catalogue products, such as decorated plywood made with tropical wood panels as the base material. On the other hand, in the area of laminate
products with particleboard as the base material, such as decorated plywood for wet-area home equipment and residential flooring products, we strived toreview designs and reduce costs in our efforts to expand sales. In the existing products area, we positioned particleboard as our foundation business andclearly established the directions for business promotion.

Through our material recycling and environmental
product businesses that leverage our technologies in

Operating Officer;
Division President,
Housing Materials Division

wooden panels and processing, we will contribute to a

Seizo Kagawa

sustainable society and the SDGs

Meanwhile, we also pursued the development of products that will contribute to reduction of environmental burden. In laminated products that have Japaneseconifers, which are considered to be sustainable, as the base material, we strengthened our marketing in the concrete formwork area. We also consideredhousing components that will respond to the various issues surrounding the housing environment, such as energy-saving in homes and the shortage of
construction workers.

Initiatives toward achievement of new medium-term management plan
We will strive to further bolster the fitness of our foundation business of particleboards. Major changes in the market are envisaged in coming years, such as
the shrinking of the market and the emergence of new competitors. For this reason, we will analyze our particleboard portfolio and establish the circumstances
to provide optimal product services, with the aim of maximizing added value. We will strive to enhance maintenance even more than previously, in our efforts
to achieve true full production and full sales based on stable operations.

Business Performance

We will also promote the planning and development of environmental contributing products. Our greatest focus will be on the commercialization of the environmentallyfriendly concrete formwork panel, comori™. We will conduct capital investments, including the establishment of a new production line, for this product as a

Through our efforts to expand applications for particleboard products and our capturing of renovation demand, sales volumes increased, resulting in a 10.5%

replacement for existing products that have tropical woods as their base material, in light of the problem of illegal felling, in our endeavor to enter this market in earnest.

year-on-year increase in net sales to 6,912 million yen.

In addition, we will increase cooperation with the lumber processing business and housing business through a reorganization of business segments. These

Operating profit increased due to the continuation of stable operations in particleboard production, but as a result of the impact of further sharp rises in raw

three businesses will cooperate vertically to promote the full-scale commercialization of easy-to-install panels, a housing component that responds to the twomaterial prices in the fourth quarter, the final result was contained to 456 million yen, a year-on-year increase of 22.7%.

social issues of the trend toward high-performance housing and the shortage of construction workers in wooden homes.
The Housing Materials Business will realize wooden material recycling at all stages from the manufacture and processing of wooden panels to home

Net sales

500

10,000

8,188

8,068

7,410
6,254

6,000

6,912

2,000

100

2018/122019/122020/12

456
372

300
200

2017/12

465
382

400

4,000

0

will work on the planning of business and development of products using wood plastics and domestically-produced lumbers.

(million yen)(million yen)

8,000

construction and after demolition. To contribute to the realization of a carbon-free society, including CO2 fixation and the carbon cycle, through business, weOperating profit

2021/120123

2017/122018/122019/122020/122021/12Risks and Opportunities
Social issues● Realization of a low-carbon society● Realization of carbon neutrality● Decline in construction workers due to declining birthrate

and aging population

Process toward achievement of new medium-term management plan
2022 goals

2023 goals

2024 goals (final year)● Particleboard field● Particleboard field

Maximize added value in the range fromchips to tertiary products

Maximize efficiency
customers through DX● Environmental materials field● Environmental materials field● Environmental materials fieldObtain recognition from general construction
firms and expand production capacity

Expand track record of use and recognition/ gather general construction firm needs

Act on local production for local consumptionin Kanto area (production and sales base)● Housing components field● Housing components field● Housing components field

Secure orders for more houses, confirm
business feasibility

Expand adoption in wooden non-housingbuildings

Collaborate with nationwide panel
manufacturers and expand into other regions● New business fields● New business fields● New business fields

Commercialization of wood plastics, businessplanning of domestically-produced lumbers

Prepare and pursue launch of domestic
materials business areas

Start new domestically-produced lumbers
business and plan and propose new business● Particleboard field

and

value

for

Expand production volumes and ratio ofprocessed products

Value offered by Okura Industrial Group● Carbon storage from particleboard is approximately 170 kt-CO2 /year in 2021. We will store carbon dioxide for extended periods
as a means of material recycling.

● We will extend our wooden building materials business using

Japanese conifers. We will promote the wood cycle andcontribute to carbon fixation and the carbon cycle.

● In business fields that range from materials to home construction,

we will play a core role in easy-to-install materials and thesystematization of home construction.

TopicsReorganization of Housing Materials Business segment
Okura Precut System Co., Ltd., which conducts the lumber processing business, and Okura House
Co., Ltd., which operates a housing business based on wood-frame construction methods, have beenreorganized into the Housing Materials Business segment and are strengthening their business cooperation.
In the commercialization of advanced-function, easy-to-install panels, for the realization of energy savings,
high seismic resistance, and ease of installation in wood-frame houses, the Housing Materials Division
supplies structural particleboard, and, through CAD/CAM cooperation with Okura Precut System andconstruction verification by Okura House, feeds back evaluation information to each area. We are currently
pursuing the development of a business model and products that have the vertical cooperation between
these three companies and businesses as their strength.

31

SUSTAINABILITY REPORT 2022

SUSTAINABILITY REPORT 2022

32

Other Businesses

Business Strategy

Research & Development Center

Hotel BusinessBusiness overview
Okura Hotel Marugame has accommodation for up to 506 guests, as well as conference,banquet, and dining facilities. The panoramic bath offers a relaxing time, embraced by a senseof openness with panoramic views of the Seto Inland Sea. It promises delicious food andan elegant hotel stay. Guests use the hotel as their base for a wide range of activities for theenjoyment of Marugame, an area that offers an abundance of contents, including Marugame
Castle, sport, art, and even soul food.

Strategy

Operating Officer;
General Manager, Research& Development Center

As the COVID-19 pandemic comes to an end, it is expected to see a recovery in hotel guests,

Kazuma Onishi

particularly in the domestic tourism sector. Take advantage of the hotel’s strengths, including
its location, with panoramic views of the Seto Inland Sea, and being one of only a handful

Research and Development Policyof general hotels in the prefecture, the hotel will differentiate itself from nearby hotels in an
increasingly competitive market, thereby securing profits. Further, as a first step toward SDGs,
from this year, it has made a change in some of the hotel’s amenity products to a non-foodApproach to research and development

grade rice-based material.

The Research & Development Center has been working on its missions to (1) create new businesses, (2) deepen material design and development ofsustainable materials, and (3) deepen existing technologies and develop products with new underlying technologies.
In the course of development, we identify market needs from a marketing perspective and works to ensure development that is closely aligned to continuously
changing needs. We believe that it is important to define customers and value and to develop businesses that will achieve what customers are seeking.
To realize these missions, we will pursue business development so that the businesses and products thus created can support the evolution of the world’s
technologies and contribute to richer and more convenient lifestyles.

operates and maintains ICT systems, as well as manufacture and sell package software.

We engage in product development in three areas to support safe, comfortable, and enriched lifestyles and promote research and development that willcontribute to a sustainable society.
Information and electronics

Life sciences

Reduce environmental
and energy burden andcontribute to the realizationof a sustainable society

Contribute to the development of theinformation and electronics area andsupport safe, comfortable lifestyles

Support people’s healthy
and enriched life

● 5G materials● Mechanical recycling● Advanced-function display materials(polymer blend/alloy technologies)

It leans in closely to customers to give shape to their needs and support its customers’
management improvements through the use of ICT. In addition to the development of systems
for the manufacturing industry, the company has also ventured into the distribution and medical

Environment and energy● Bioplastics

Business overview
Okura Information System mainly engages in software development. The company also

Focus fields● Chemical recycling

Information Processing Business(

LCP film
product indevelopment)● Functional materials

for medical care

● Sensor materials

manufacturing processes

Strategy● Materials for cell(

● Functional materials for

sectors, and the products and services it has created are now used by many customers.

Single-use bag
for manufacture ofpharmaceuticals)

culture processes● Healthcare raw materials(plant processing technologies)

The company will promote DX in a variety of fields. Centering on the construction of systems
to support priority growth businesses, it will play a part in the improvement of productivity andstrengthening of competitiveness in Okura Industrial Group by promoting the establishment of
stable infrastructure and the improved efficiency and digitalization of operations.
Further, in addition to expanding its sales channels and strengthening the foundation of its

Plant extraction technology
Making use of unutilized resourcesthat are both safe for humans
and environmentally friendly
At the Research & Development Center, we aremaking use of discarded or unused resourcesand developing products with the aim of turningthem into valuable and useful resources.
Using pressurized hydrothermal extraction
technology, we are currently considering theextraction of functional substances from various
plants in an efficient way using only water.
Olive leaf extract are being pursued in collaboration
with local companies and through industrygovernment-academic collaboration, and we areworking toward the development of products. By
making effective use of the olive leaves, whichhave previously been left unused, as a resource,
we will contribute to the SDGs.

DPPH radical scavenging activity
100％existing business targeting dispensing pharmacies, based on the image processing technology“Kansa Renji mini”(Pharmaceutical Audit machine)friendly products and services, with the aim of opening up new markets.

80％

™

™

and AI technology the company has cultivated in this business, it will create high-quality, user-“Kansa Renji R”(Pharmaceutical Audit machine)

60％

90%

40％
20％
0％
-20％

Business Performance-3%

Ultrapure water(control)

Okura extract

DPPH radical scavenging activity test
(conducted by independent laboratory)
Radicals in DPPH react with oxygen to generate oxygen free radicals
that are believed to cause a variety of diseases. This method evaluates
the extent to which these free radicals can be eliminated by reacting
these DPPH radicals with the product being tested. The DPPH radical
scavenging rate of the product being tested is calculated when the DPPH
radical scavenging effect of ultrapure water (control) is 0%.

Net sales

Operating profit(million yen)(million yen)

1,000

7,500
6,000

6,272

6,316

5,727
4,778

4,500

Olive leaves contain many polyphenols. In particular, a polyphenol called oleuropein is claimed
to have strong antioxidant properties. Hydroxytyrosol, a hydrolysate of oleuropein, has a smallermolecular size than oleuropein, which means that it penetrates deep into the skin (deep into thecorneum) for better moisture retention. It has long been used in cosmetic applications.

5,154

800

400

1,500

200

2017/122018/122019/122020/12

810

600

3,000

0

715

2021/12

0

531
256

2017/122018/122019/122020/12302

2021/12* Figures include those for Okura House and Okura Precut System

33

SUSTAINABILITY REPORT 2022

SUSTAINABILITY REPORT 2022

34

Sustainability
Sustainabilit y Initiatives

Sustainability Initiatives

Message from Chairperson of
Sustainability Committee

Okura Industrial Group believes aiming to contribute to creation of a society which can ensure sustainable development will lead to the Group’s sustained
growth and increase in medium- and long-term corporate value.
With the CSR Policy of “Continuing to be a company that is trusted by society,” we have conducted the business operation focusing on E (environment), S(society), and G (governance) in the changing social environment. Going forward, we will promote proactive activities in which management strategies centeron sustainability, based on materiality, material issues for provision of solutions through business which were identified in 2020, as well as bases for business
continuity.

Okura Industrial’s sustainability

Philosophy system

Okura Industrial marked the 75th anniversary of its founding.
Starting with the spirit of foundation “protect employees
Management
philosophy

and serve society,” we have conducted business under theManagement vision

to the society,” and “Customers first” through its history. It canmanagement philosophy, “Respect the individual,” “Contributing

Next 10（2030）

be said indeed to be sustainability management in considerationof trust relationships with employees, suppliers, customers, and“Goal” toward next decadecommunities, as well as responses to shareholders. However,Sustainabilitysocial needs change over time, and their scale is getting

Sustained growth and increase in medium- and long-term corporate value

more global. We have to actually implement the sustainability

Sustainability Policy and Principles
Environmental Policy Quality Policy
Corporate Governance Policy
Business

ESG

Business activities coexisting with society

Realize through businessMedium-term management plan
Annual business plan

ESG management

Mottosmanagement leading to the future at the frontline without
coasting on business bases built by our forerunners. We will
make day-to-day efforts, keeping in mind that Okura Industrial’s
future depends on us living today.

Circular economy

Okura Industrial Code of Ethics

Presently, efforts for creating sustainable societies have been
accelerating all over the world. One of key words attracting
attention is circular economy. In the circular economy, productsManagement philosophy

35

are designed on the premise of recycling from a stage of raw

Respect the Individual

Contributing to the Society

Customers FirstWe will respect the human rights of each individual anddevote our efforts to creating a safe, comfortable, andlively workplace.

We will contribute to a safe and comfortable life throughour products and services, and actively engage in social
contribution activities as a good corporate citizen.

We will continue to provide products and services
which our customers need in adapting to changes in theenvironment, and will grow our solution business withthem.

Sustainability Policy

MottosOkura Industrial Code of Ethics

and economic growth. The circular economy may create a new

Aim for corporate growth through business, keeping
in mind our coexistence with society, so that we may
continue to be a company that is trusted by society

Action guideline forsupporting business activities

Continue to be a company
that is trusted by society

business model including sharing and rental of products, andSustainability Basic Principles

Improving everyday

Seven principles of action

1. Balance between business and ESG
Under our management philosophy, we will aim atsustained social development and an increase in mediumand long-term corporate value by conducting business
operation focusing on ESG in the changing social
environment.
2. Conservation of the global environment
The Group will contribute to conservation of the global
environment, taking into account climate changes andother global environment issues through businessactivities, and providing products and service towardrealization of a carbon-free society.
3. Compliance with laws and regulations, respectfor human rights, and consideration of the labor
environment
In all business activities, the Group will comply withlaws, regulations, and social norms, respect humanrights, value each worker with diversity including
gender, internationality, career, and age, and promote
human resource development, an improvement of labor
environment, and contribution to communities and asociety.
4. Information disclosure and dialogue
In relation to progress in initiatives for sustainability in its
own business activities, the Group will proactively disclose
information, and reflect social evaluation received throughdialogue with stakeholders in management.

Each of us is to remain conscious of the need for improvement,
set their own goals, and work to develop their abilities.

1. To provide goods and services allowing people to livein safety and comfort and to earn the trust of users andconsumers.

recovery networks, “cooperate with other companies, andIn order to make our business activities sustainable, it isimprove communication abilities. The social system on thenecessary to have all stakeholders recognize their businessWe will employ new viewpoints and ideas to improve,
innovate, and develop products and services without
preconceived notions.

2. To realize the comfort and affluence for our employees,
ensure a safe and comfortable working environment, andrespect their personalities and individuality.

premise of mass production, mass consumption, and mass

values. We should aim to be a sustainability company, businessdisposal is ending, with climate crisis, resource depletion, lossof which is beneficial to a society and customers, and enables

Harmonious cooperation

3. To engage in fair, transparent, and free competition; tomaintain clean and normal relationships with government
and public administration.

of biodiversity, plastic pollution, and other factors exceeding

the Company and employees to grow, and which can returnthe global environmental carrying capacity. Regarding thisprofits in various forms. A driving force for it is ESG activities.

4. To proactively and honestly disclose corporate informationand communicate with society at large in order to build
good relationships with all stakeholders.

environmental change as opportunities for new business

It is necessary to have an attitude to keep up with changes

and growth, we should work to create new businesses andin environment, society, and governance, and turn such

5. To resolutely oppose antisocial forces and groups thatthreaten the order and safety of civil society.

innovation.

changes into sources of the Company’s own business and

SUSTAINABILITY REPORT 2022

Creativity and ingenuity

We will each endeavor to communicate our goals and ideas
to one another, value dialog, build trust, and resolve issues
by considering total optimization.

6. To voluntarily and proactively address environmental
issues, recognizing that it is an essential condition for the
existence and activities of a corporation.
7. To conduct our overseas activities in ways that respect
the local culture and customs and contribute to thedevelopment of the local society.

material procurement, and materials which were previously
discarded are recycled as raw materials and circulated without
using virgin materials. It is characterized by being a model
aiming at pursuing both a reduction in environmental burden

after-purchase servicing, further deepening recycling. Now, it
is important to have a perspective of circulation, build productOperating Officer, Executive Vice President, Director;
Supervision of General Affairs, Public Relations,
Human Resources, Sustainability Promotion,
DX Promotion, Corporate Center; andChairperson of Sustainability Committee

Yoshitomo Tanaka

ESG activities toward the futurecompetitiveness. It is important for each person to, from sucha perspective, confirm the Company, his/her job, and sense ofvalue. Without fearing the changes, let’s make progress evenslowly as imagining the future ahead.

SUSTAINABILITY REPORT 2022

36

Sustainability
Sustainabilit y Initiatives

Bases for Business Continuity

Promotion System
Okura Industrial Group regards solutions to sustainability-related issues as business opportunities. The issues include addressing climate change and otherproblems affecting the global environment, respect for human rights, and fair and appropriate business activities for all stakeholders, including employees.
Accordingly, in 2021, the Group established the Sustainability Committee into which the CSR Committee was modified. Also in April 2021, the Group newly

In addition, we set four items, “Thorough prevention of contamination,” “Developing working environment where employees are motivated to work,”“Coexistence with local communities,” and “Improving corporate reliability and transparency,” which become essential bases for Okura Industrial Group tocontinue business. As with the materiality, we will promote proactive initiatives.

established the Sustainability Promotion Department as a section in charge of formulating a basic plan related to ESG activities to promote the initiatives. The
Committee is chaired by the Operating Officer, Executive Vice President and Director who is in charge of promoting sustainability and made up of Directors
and Operating Officers. Among them, Outside Directors are included. Thereby, whether or not the Group’s ESG activities are consistent with social trends

Improving corporate reliability andtransparency

is checked from an objective perspective to promote the activities. In 2021, the Committee was held twice, shared materiality identified by the Group andmedium- and long-term issues recognized in relation to bases for business continuity, and discussed and decided measures for solving those issues.
Further, the Compliance Committee has been established to manage compliance for Okura Industrial Group. It coordinates with the Compliance Action

KPI

Committee, its working unit, which conducts activities to raise awareness and responds to internal whistleblower reports.

Numbers of compliance violations andadministrative disciplinary actions

Thorough prevention of contamination

P.60

KPI

Number of violations of domestic
laws and regulations

P.44・57

Under such systems, we proactively disclose information on situation of the initiatives to stakeholders, and push ahead with various activities, continuously● Disclose ESG information proactively● Manage hazardous chemical substances appropriately

improving them.

● Promote dialogue with stakeholders● Reduce water use and manage water resources

Audit and Supervisory Committee

Audit,
supervise

Board of Directors
InstructSustainability Committee

appropriately● Develop internal control/compliance systems● Identify risks and brush up business continuity plan (BCP)

ReportCompliance Committee

Decide activity policies Approve plan activities and outcomes
InstructSustainability Promotion Department(Admin. Office)InstructCompliance Action
Committee

Quality
Assurance
Department
Instruct

Business Divisions,
Plants,
Subsidiaries

Disclosure

Plan and Propose

ReportEnvironmental Protection
Promotion Committee

Environmental
Management
Department

Stakeholders

ReportLegal andIntellectual Property
Department

GeneralAffairs
Department

Human
Resources
Department

DX
Promotion
OfficeConsider/develop
specificmeasuresBusiness base

ReportQuality management system(QMS) ISO9001
Chief QMS administrator

Developing working environment
where employees are motivated to work

Coexistence with local communities
KPI

Environmental management
system (EMS) ISO14001
Chief EMS administrator

Numbers of social contribution activities
and participants in them

KPI

P.53

P.49

● Realize diversity management● Promote volunteer activities and regional environmental● Increase productivity and realize a good work-life balance

conservation activities

with reform of working practices● Participate in businesses to solve regional issues or toMateriality of Okura Industrial Group

Ratios of female executives and female
managers● Establish a personnel evaluation system that allows people

revitalize a region

to have a sense of job satisfaction and enhance a humanresource development system● Use regional resources proactively● Strengthen occupational safety and healthMateriality means material issues, which are identified as issues to be truly addressed by evaluating a degree of impacts of corporate activities on company’s
own business and social issues, and prioritizing them.

1

Promoting management for decarbonization(climate action measures)
KPI

CO2 emissions from the Company/logistics

5
P.42

technologies● Make sales activities and marketing more sophisticatedFurther promoting resource recycling
measures

Sales of products using waste plastics recoveredfrom a market and recycled

P.44

6

P.33

Steps for Promoting Identification of Materiality

Identification of materiality
P.45

Very high2● Develop a mechanism of creating environmental contributing products

3

1

and set medium- and long-term targets● Develop and sell products with excellent functionality

4

Establishment of a sustainable procurement
system and management of investigation results● Establish and operate a mechanism of raw material procurement

conscious about human rights, etc.
● Establish and operate a mechanism of raw material procurement

conscious about environment (green procurement)

37

SocialimpactPromoting CSR procurement
KPI

SUSTAINABILITY REPORT 2022

Governance● Use open innovations proactively

Creating and expanding
environmental contributing products

environmental contributing products' share ofliving support category sales

Numbers of development themes and patent applications● Strengthen marketing leading to creation of new business

Recover waste materials after use, and promote recycling

SocialConducting research and development geared
to creating innovation
KPI● Reduce marine plastics

KPI

Environment● Pursue higher quality and safer products● Reduce waste from plants largely

3

P.48

● Improve productivity and reform operations by introducing new digital● Increase efficiency in logistics (shipping) and reduce CO2 emissions therefrom

KPI

Enhancement of quality inspection
with IT/AI technologies

KPI● Reduce CO2 emissions from the Company (plants and offices)2

Gaining a competitive advantage by promoting
digital transformation (DX)

4

6

5

STEP 0

STEP1

STEP2

STEP3

STEP 4Comprehension of relationsof the Company’s own
activities, products, andservices with SDGs

Understanding about
initiatives of competitorsand consideration on the
Company’s future initiatives

Analysis of external
environment of value chain
and consideration on the
Company’s future initiatives

Development of prospective
materiality and activity
themes

Evaluation of importanceof activity themes andidentification of materiality● Comprehend social value● Consider issues to solve in● Assume future social● Summarize the activities● Consider business value andto be created by theCompany’s current initiatives

P.57

High

● Clarify SDGs to which

High

Very highBusiness impact
Environment

Technology

the Company’s activities,
products, and services
contributeenvironment, society, andcorporation● Compare initiatives ofcompetitors and ones of theCompany to identify future
initiatives (activities)changes (future image)in terms of environment,
society, and technology● Identify what value theCompany will create is in
the assumed future image,and extract future initiatives(activities)

extracted in Step 1 and 2,
and extract prospective
activity themes andmateriality

social value for each activity
theme● Evaluate importance for eachactivity theme, and identify
the Company’s materiality(material issues)

SUSTAINABILITY REPORT 2022

38

Environment
Basic Approach to Climate Change

Summary of scenario analysis results
An increase in direct costs to the Group from the introduction of a carbon tax and an increase in raw material costs from the tax being levied on suppliers
are thought to be the main factor that will reduce earnings.
Cost increase example: Supposing carbon taxes of 10,900 yen/ton* are applied to the Group’s FY2020 CO2 emissions (Scope 1 and 2), which wereapproximately 90,000 tons, it would cost around 1.0 billion yen annually* Source: Ministry of the Environment, “How-To Guide on Internal Carbon Pricing” (March 2020)

At the same time, based on areas targeted for CO2 reduction—films that use recycled and biomass materials, barrier films that help reduce food loss,
peripheral components that contribute to vehicle electrification, and particleboard using construction waste—the increase in demand for carbon fixation
through cascade use of wood products and increased use of wood in buildings, for example, became clear as a business opportunity.
The Group will promote climate action measures integrated with management strategy while clarifying response measures for individual key risks andopportunities.

Basic Approach to Climate Change
Okura Industrial Group has defined sustainability materiality in response to social issues encapsulated by the SDGs and the requirements of stakeholders.
This specifically refers to promoting management for decarbonization (climate action measures), further promoting resource recycling measures, creating and

Risk Management
The process used by Okura Industrial Group to select and evaluate climate change risks and opportunities is conducted by each business division in thefollowing steps.
Management of risks and opportunities will be carried out under the system indicated in the “Governance” section.

expanding environmental contributing products, promoting CSR procurement, gaining a competitive advantage by promoting digital transformation (DX), andconducting research and development geared to creating innovation. By tackling these issues, the Group will seek to provide solutions to society and achievesustained growth as a company.

Clarify the value chain,

Clarify climate change

Evaluate importance

Clarify the financial

Clarify measures in

Investors and other stakeholders are particularly concerned about the impact of climate change on companies. Okura Industrial Group for its part, has

including Scope 3

risks and opportunities

by the degree of

impact of key risks andresponse to key risks

analyzed the impact of climate change and begun to respond to it based on the TCFD recommendations. The analysis has made clear that while the long-termbased on 2°C and 4°C

impact on the Group

opportunities

and opportunities

financial impact of climate change risk is obvious, there are also, simultaneously,

scenarios likely apply

many opportunities.

to each organization in

Based on this analysis, the Group intends to work to reduce climate change risk and

the Group and down

expand business opportunities, helping to bring about a more sustainable society.

the value chain

1

STEP

2

STEP

3

4

STEP

5

STEP

STEP

Governance
Okura Industrial Group regards solutions to sustainability-related issues as business opportunities. The issues include addressing climate change and other

Indicators and Targets

problems affecting the global environment, respect for human rights, and fair and appropriate business activities for all stakeholders, including employees.
To promote initiatives for these issues, the Group has established the Sustainability Committee, which is chaired by the Operating Officer, Executive Vice
President and Director who is in charge of promoting sustainability and made up of Directors and Operating Officers.
In addition, in April 2021, the Group established the Sustainability Promotion Department to formulate and promote basic plans on ESG activities that cut
across the organization. Plans related to environmental protection developed and proposed by the Sustainability Promotion Department are deliberated on

Reduce GHG emissions
Okura Industrial Group has been conducting activities to reduce CO2 emissions for some time, and has recently set a FY2030 CO2 reduction target for Scope
1 and 2.

by the Environmental Protection Promotion Committee. Further, the Compliance Committee has been established to manage compliance for Okura Industrial

Scope 1 and 2 emissions reduction target

Group. It coordinates with the Compliance Action Committee, its working unit, which conducts activities to raise awareness of the spirit of compliance and

FY2030: 50% reduction from FY2013

responds to internal whistleblower reports.

In terms of actual progress, the Group has been steadily reducing CO2 emissions since FY2015 and will continue steadily making reductions to achieve theUnder these systems, the Group actively discloses information on its initiatives to stakeholders, including climate action measures, the most important theme,

target according to plan.

and manages them through an environmental management system and other mechanisms while continually making improvements, with management reviews

Scope 3 emissions

being conducted on the results.

The Group currently calculates Scope 3 emissions. Going forward, it will disclose Scope 3 emissions for the Group as a whole, set a reduction target, andwork on forming an action plan.

Strategy
The Group developed two scenarios to clarify its climate change risks and opportunities. One is a 4°C scenario, which assumes that climate action measures
do not make headway and the temperature continues to rise on the same trajectory and that physical risks and opportunities occur as a result of this. Basedon this scenario, analysis was performed for acute and chronic risks. The other is a 2°C scenario that assumes various activities will be conducted to prevent
warming and looks at risks and opportunities connected with the transition to a carbon-free society. Analysis in this scenario was conducted related togovernment policy and regulations, technology, markets, and reputation.
In conducting scenario analysis, value chains were identified and specific considerations made for each of Okura Industrial's main business departments,
the Plastic Film Division, New Materials Division, and Housing Materials Division, the financial impacts of key risks and opportunities were calculated, andresponse measures were considered.

39

SUSTAINABILITY REPORT 2022

Okura Industrial Group Scope 1 and 2
50% reduction compared to FY2013
FY2013 (actual): 154,207 tons-CO2/year→FY2030 (target) : 77,104 tons-CO2/year

CO 2 emission reductions (Scope 1 and 2)（t-CO2）
180,000
150,000

CO2 emissions
FY2030 target

154,207 146,734 158,593 156,246

132,409 126,750

120,000

94,81490,00060,000

FY2030 target
50% reduction from FY2013
77,104 tons-CO2/year

30,0000123,023

118,340

2013

2014

2015

2016

2017

2018

2019

2020

2021（FY）* Scope 2 electricity calculated using actual emissions factors(Data from April to March of each fiscal year)* These results are subject to assessments by independent experts

SUSTAINABILITY REPORT 2022

40

Environment
Environmental Initiatives

Environmental Management Structure

Environmental Education System

We appoint Chief Executive Environment Administrator responsible for

Okura Industrial Group has established Environmental Management Rules

management of EMS of Okura Industrial Group and Chief Environment

to operate EMS, clarified capabilities necessary for EMS operation, andAdministrator for each division to improve environmental performance.

implemented systematic education. Preparing programs which summarized
basic contents related to SDGs and climate changes, “SDGs training”

Sustainability
Committee

Operating Officer, President, Representative Director

and “Climate changes and measures therefor,” we provide all employees

Chairperson of Sustainability Committee(Director in charge of sustainability promotion)

education using e-learning system, etc. For level-specific training, we have
prepared a program related to SDGs so as to provide opportunities for

Sustainability Committee members(Operating Officer, Director; Operating Officer)

considering pursuit of both economic value and social value.

Environmental
Chairperson of Environmental Protection Promotion Committee
Protection
Promotion
Committee Environmental Protection Promotion Committee members

EMS capability list

Chief Executive Environment Administrator (General Manager of Sustainability Promotion Department)
EMS
Administration
Office for the Sustainability Promotion Department, Environmental Management Department
Entire Company

Environmental Initiatives

Division

We will protect our irreplaceable global environment and promote business activities that contribute to the sustainable,synergetic development of corporations and society.
Considering leading children to the future as our mission, we will accelerate initiatives for environmental issues. Especially, as CO2 reduction target (Scope 1

Chief Environment Administrator for Division

Chief Environment Administrator for District

EMS Administration
Office for Division

EMS Administration
Office for District

Business site

RegionBusiness site

Head of Business Site

Head of Business Site

Chief Environment Administrator for Business Site

Chief Environment Administrator for Business Site

EMS Administration
Office for Business Site

EMS Administration
Office for Business Siteand 2), we aim at a 50% reduction in FY2030 in comparison with the level in FY2013, and will strive to solve social issues through business.
Department

Department

Department

Department

Environmental management

Eco-culture

Section Manager

Section Manager

Section Manager

Section Manager

Okura Industrial Group aims to establish
a corporate environmental management
system and work to protect the environment
with the full participation of our workers.

Through education and enlightenment,
we will create a culture in which each
employee recognizes the importance ofthe environment and voluntarily engages inenvironmental conservation activities.

Section members

Section members

Section members

Section members

We will endeavor to achieve resource andenergy conservation, reduce and recycle waste,
and prevent pollution, thereby contributing to
mitigating climate change and protecting theecosystem and biological diversity.

Required capabilities

Subject person

Understand details stated in Okura Industrial
Group Environmental Policy and Environmental
Conduct Policies

All employees

Okura Industrial Group
Environmental Objectives

Understand medium- and long-term goals statedin the Okura Industrial Group Environmental
Objectives

All employees

Environmental Management
Rules

Understand Environmental Management Rules
which define EMS in the Okura Industrial Group

EMS-related parties

Each type of EMS procedure
manualUnderstand each type of EMS procedure
manual which is a subordinate document of theEnvironmental Management Rules

EMS-related parties

SDGs

Understand basic contents of SDGs throughe-learning

All employees

Climate changes andcountermeasures therefor

Understand the latest issues related to climatechanges and countermeasures therefor throughe-learning

All employees

Introductory environmental
education

Understand EMS in general through e-learning

All employees

Division Chief【 Environmental Policy 】

Reduction of environmental burden

Item
Okura Industrial Group
Environmental Policy andEnvironmental Conduct Policies

Environmental
Conduct Policies of
Okura Industrial
Group

Safety and health
We regard safet y as the foundation of ourmanagement and strive to create workplaces where
each and every employee can work in good healthand comfort, and to establish a security and disasterprevention system that minimizes the impact on thecommunity and society in the event of a disaster.

Environmental Action Plan
In order to realize the Environmental Policy, Okura Industrial Group has
set the Group Environmental Objectives every three years in time with aperiod of the medium-term management plan. Based on this, each division

Group Environmental Objectives: for 3 years
Segment Environmental Objectives: for 3 years

sets three-year environmental objectives, and each business site under
Environmental communication

Environmental contributing products

We will accurately and continuously disclose
information related to the environment,
respect the evaluations and opinions ofeach stakeholder, and apply them to ourenvironmental conservation activities.

We are conscious of environment in ourplanning and development and endeavor
to provide more environmentally-friendly
products and services.

Compliance with Environmental Laws and Regulations
Okura Industrial Group has operated Environmental Management System (EMS) in conformity to ISO14001:2015. The compliance with legal restraints (lawsand regulations, and ordinances) is one of various requirements specified by this EMS.
The Group recognizes that the compliance with environmental legal restraints is an especially important point from a perspective of compliance. Accordingly,
in order to achieve it at all business sites in the Group, we have established the following mechanisms.

Preparation of check sheet

Implementation of measures to be checked
mainly by Corporate Center

As major environmental laws and regulations, we selected especiallyIn addition to the periodical confirmation by each business site, we

important 34 laws and regulations such as Air Pollution Control Act

conducts measures in the event of emergency situations and accidents.

and Water Pollution Prevention Act. In order to confirm the status ofSpecifically, responsible personnel of Corporate Center visits majorcompliance with each of them, we prepare a check sheet. Also, in relation

business sites which would have large negative environmental impacts on

to environmental ordinances provided for by prefectures and municipalities

outside their premises, for example, leakage of hazardous substances,where the Group’s business sites are located, each of the business sites

and confirms the above check sheet together with responsible personnel

prepares check sheets for relevant ordinances.

of the business site. In a case of serious accidents, we prepare a

All business sites within the Group are required to semiannually confirm

preventive check sheet for respective business sites in order to preventthe status of compliance with laws and regulations, and ordinances

similar accidents from occurring at other business sites.

through the check sheets.

More than a decade has passed since the operation of EMS started.
Aiming at a more sophisticated system for compliance with legal restrains,divisions sets one-year environmental targets. In addition, action plans

Environmental Targets for Business Site: for 1 year

are formulated to achieved them. A progress in the plan is voluntarily

Management
review

managed by each business site, and its achievement is confirmed throughEnvironmental Targets for Business Site: for 1 year

Environmental Targets for Business Site: for 1 year

a management review to be implemented semiannually.

Acquisition of ISO14001 certification
In 2010, a part of Corporate Center and the business site in Marugame
Horai South district acquired ISO14001, international standards related toenvironment management system.

Initiatives in manufacturing
Advocating the promotion of management for decarbonization (climate action measures),the Okura Industrial Group has worked to reduce CO 2 emissions from the Company(plants and offices). We reduced energy consumption by proactively conducting measures
such as installing energy-saving facilities, consolidating production facilities and electric
power substations, and adopting LEDs for lighting within plants. We will also proceedwith a contract on photovoltaic power generation service (PPA model) with an electric
power provider with the aim of establishing a system to use generated CO2 -free power for
production activities.
* PPA model is an abbreviated name of “power purchase agreement model.” In this businessmodel, an electric power provider (PPA provider) installs a photovoltaic power system on a roof or
the premises of an electric power user (consumer) without charge, and the consumer purchases
power generated thereby and pays a charge for use of the service to the PPA provider.
Increasing efficiency in logistics (shipment)

Initiatives in logistics and reducing CO emissions therefrom
2

Materiality

While not having a logistics/transportation division, the Okura Industrial Group ships over
30 million ton-kilometers per year. Therefore, the Group falls under a specified consignor
set forth in Act on Rationalizing Energy Use.
As a medium-term target guideline, we decided to set a new target of reducing CO 2
emissions generated through logistics networks we use by 3% or more by FY2024
compared with the level of FY2021, by increasing efficiency in logistics related to productshipments. Going forward, we will strive to reduce environmental burdens, taking
measures such as decreasing non-constant shipping with an efficient shipping plan,collectively transporting shipments for destinations in the same direction, and decreasing
charter services.

we will further brush up these measures.

41

SUSTAINABILITY REPORT 2022

SUSTAINABILITY REPORT 2022

42

Environment
INPUT

Environmental Initiatives

Material Flows of Okura Industrial Group (FY2021)
Initiatives for climate change with fuel conversion
Marugame No.5 Plant changed hot and chilled water generators using kerosene oil to electric equipment.
In the former equipment using kerosene oil, GHG emissions derived from electricity and kerosene oil
were 83 t-CO2eq/year and 276 t-CO2eq/year, respectively. However, GHG emissions of the new electric
equipment is only 129 t-CO 2eq/year which is derived from electricity, and thus, decreases by 230
EnergyPurchased power
Gasoline
Kerosene oil
Light oil
Bunker A
LPG
City gas
Wood chips *1

Raw materials *2
206,443 mWh
112 kℓ425 kℓ393 kℓ2,286 kℓ
401 t
2,960,000 m3
20,000 t

Pellets and other main raw materials *3
Base materials *4 (aggregated in weight)
Base materials *4 (aggregated in length)
Printing ink, solvent, etc.
Adhesive
Wood chips *5
Plywood
Decorative paper
Heat insulators

102,637 t
6,431 t16,088 km
2,827 t15,887 t
90,000 t
460,000 sheets
6,256 km3,000 sheets

Water

t-CO2eq/year without the ones derived from kerosene oil. The new electric equipment, which does not

Municipal water *6 360,196 m3
Recycled water *7 135,350 m3

use water, also contributes to a reduction in water resource consumption, in addition to a reduction inrunning costs.

Calculation of Scope 3
So far, we have pushed ahead with efforts for reducing CO2 emissions, by calculating Scope 1 (direct emissions from a business operator itself such as its
plants, offices, and vehicles) and Scope 2 (indirect emissions associated with use of electricity and heat, etc.), as well as CO2 emissions related to logistics.
Last year, we made a rough estimate also about Scope 3 (other indirect emissions than the above Scope 1 and 2 in a supply chain from raw material
procurement to disposal of products.) As a result, it was found that our emission ratio in the category 1 was very high. Going forward, we will calculate
emissions of Scope 3 with high accuracy, and work on a reduction in CO2 emissions in the entire supply chain.

Business activities
of Okura
Industrial Group

Design/Development

Procurementof rawmaterials

Manufacturing

Distribution

Materiality

OUTPUT

Water Risks
In Kagawa that belongs to Seto Inland Sea climate, as there is a small amount of rainfall through a year, drought tends to occur frequently and for a long period.
In addition, it has been required to enhance a crisis-management system in an emergency in preparation for the Nankai Trough Mega Earthquake which is

Atmospheric emissions
CO2

Scope 1
Scope 2(actual emissions factor)
Scope 2(adjusted emissions factor)
CO2 related to logistics *8
CFC *9PRTR Toluene

16,369 t-CO2
106,654 t-CO2
111,274 t-CO2
5,392 t-CO2
26 t-CO2661 t*1 Wood chips to put in biomass boilers as fuel. In the calculation of data, the value rounded
up is indicated.
*2 The purchased amount of raw materials is indicated. However, the amounts put in are
indicated, in terms of part of “pellets and other main raw materials,” as well as “woodchips” and “base materials (aggregated in length).”*3 Masterbatch, additives, coating agent, etc.
*4 Films, etc.
*5 In the calculation of data, the value rounded up is indicated*6 Tap water and other water suitable for drinking. Underground water which can be used for
drinking is partly included.

Waste
Waste *

10

expected to occur within 30 years with a probability of 70 to 80%. As a medium-term guideline, Okura Industrial Group decided to set a new target of, by

Sewage7,238 tSewageFY2024, reducing the water consumption intensity 3% or more from FY2021, by appropriately managing water resources.

3

401,290 m

3Rs (reduce, reuse, and recycle)*7 Water which is unsuitable for drinking but used for industrial purposes, such as well water and underground water*8 The data calculated based on a periodical report of a specified consignor under Act on Rationalizing Energy Use*9 The data calculated based on a calculated amount of leaked fluorocarbons under Act on Rational Use andAppropriate Management of Fluorocarbons*10 The calculation period of data is from January 2021 to December 2021

We have work to, through the supply chain, reduce amounts of packaging

The data herein was calculated within the scope (Okura Industrial Group) set forth in the Environmental Management
Rules (EMS of the Company).
* These results are subject to assessments by independent experts

materials and products which become waste at last. Also, aiming at zero plastic
waste, we will promote in-house recycling of waste plastics generated within the
Company.

■ Challenge and achievement of products subject to the reduction in theamount of waste becoming thinner through the supply chain
Recycling waste plastics by recovering and cleansing■ Expansion of in-house recycling system
Recycling into secondary materials for internal use and transforming
to solid fuelClimate Change/Energy Conservation
Okura Industrial Group has worked on thorough energy saving activities, upgrading of old facilities to highly efficient ones, and a reduction in waste
plastics to be simply burned, in order to decrease greenhouse gas emissions which have impacts on the global warming. The Group will also proceed withcountermeasures for risks which were clarified in the scenario analysis for information disclosure in accordance with Task Force on Climate-related Financial

Materiality

Reducing waste from plants largely

Disclosures (TCFD) recommendations.

In order to reduce as many unused (simply burned or buried) plastic waste as possible, we have collected information on business operators engaged in

Reduction of CO2 emissions (Toward a 50% reduction by FY2030 compared to the level in FY2013)

recycling, and shared the information within the Company.

Okura Industrial Group Scope 1 and 2
50% reduction compared to FY2013
FY2013 (actual): 154,207 tons-CO2/year→FY2030 (target) : 77,104 tons-CO2/year
CO 2 emissions (Scope 1 and 2) in FY2021 increased 30% from FY2020. This is mainly
because, among emission factors used in calculation of Scope 2, an emission factor of
Shikoku Electric Power Company which accounts for over 60% of electric power we use
increased as much as 44% year-on-year. Meanwhile, when compared in crude oil equivalent,
CO 2 emissions increased 1.1% from FY2020. This is partly because of the recovery of
demands which had fallen due to the spread of COVID-19 while the reduction in energy
consumption has been advancing with continuous energy-saving activities. Accordingly, it
can be seen that changes in emission factors of electric power suppliers have a large impact
on an increase in CO2 emissions.

43

Issues to address

SUSTAINABILITY REPORT 2022

system to conduct waste management, we have been presently establishing a mechanism for calculation of the recycling rate.

CO 2 emission reductions (Scope 1 and 2)（t-CO2）
180,000
150,000

CO2 emissions
FY2030 target

154,207 146,734 158,593 156,246

Materiality
132,409 126,750

120,000

123,023

118,340
94,81490,00060,000

FY2030 target
50% reduction from FY2013
77,104 tons-CO2/year

30,0000

As a medium-term guideline, we decided to set a new target of increasing the recycling rate of plastic waste to 80% or more by 2024. Also, introducing a

2013

2014

2015

2016

2017

2018

Reducing marine plastics
Recovering waste materials after use, and promoting recycling
The Group will put emphasis on development and commercialization of biodegradable films which are degraded in natural environment, in order to reduce
plastics which run out into the sea. A degradation rate of the biodegradable film largely depends on an environment. In addition, for some resin to use,

2019

2020

* Scope 2 electricity calculated using actual emissions factors(Data from April to March of each fiscal year)* These results are subject to assessments by independent experts

2021（FY）

processing may be difficult, including sealing. To solve such issues, we will offer biodegradable films which meet customer’s needs, using knowledge on resin
blending and formulation of additives, etc., as well as manufacturing know-how that we have cultivated as a processor.
We will aim to solve marine plastic issues, using the Group’s technological abilities.

SUSTAINABILITY REPORT 2022

44

Environment
Environmental Initiatives

TOPICS

Reduction of Environmental Burden
Aiming at realization of a sustainable society, Okura Industrial Group has been working on a reduction of VOCs which are used for printing ink and adhesives,

Materiality

and a reduction and recycling of waste. Furthermore, we have managed chemical substances contained in products so as to provide eco-friendly, safe, andA Name and logos of environmental contributing products were decided

secure products.

Creation of environmental contributing products

Okura Industrial Group established the environmental product system in 2019. A product falling under the definitions is certified in the
No.1183(Ecoloam KOKAGE)

EcoloamCompany, and its sales and a percentage in total sales are calculated. The definitions have been established, as reviewed in light of
JIS Q 14021 (Type II Environmental Labels and Declarations) to publicize externally, and confirmed by a third party. In order to enable a lot of

Okura Industrial Group is pushing ahead with development of eco-friendly plastic (biodegradable

customers to recognize, logos and a collective name of environmental contributing products were also decided. It was decided to call Okura

plastics) products. Biodegradable plastics are degraded to water and carbon dioxide by microbes

Industrial Group’s environmental contributing products “Caerula™” and classify them into three ranks to certify. On the premise that thein the soil. “Ecoloam KOKAGE” and “Ecoloam FC” are both agricultural mulching films made of the

products can contribute to the achievement of 17 SDGs, products which lead to environmental contribution when used by customers andbiodegradable plastics. They can be buried under soil by plowing after crops are harvested. Therefore, as
it is not necessary to remove the mulching films, labor-saving can be achieved.

ones which were certified in terms of environment by third parties are certified as triple leaves. Products which cannot reach triple leaves but

Photo of “Ecoloam KOKAGE” stretched on farm fieldlead to reductions in environmental burdens are certified as double leaves. In relation to secondary materials to wrap our products, productsthat can contribute to reductions in environmental burdens are certified as single leaf. We are working on creation of Caerula™, setting atarget of increasing a percentage of sales of products certified as Caerula™ to 50% in the living support category by 2024.

Solventless acrylic adhesive YUMEN Series

Logos applied to environmental contributing products
Green represents
nature“YUMEN” Series is environment-friendly, solventless low odor acrylic adhesive applied Okura Industrial’s
proprietary monomer polymer technology and not using organic solvent. Since all grade belongs toWhite represents
skyClass IV Petroleum No.3 or No.4, it can be stored at room temperature and easy to handle. Three types of・Caerula™ means “blue” in Latin that makes people imagine the Earth, andthat is one of Okura Industrial Group’s corporate colors.
・Caerula™ also carries nuances that suggest giving back (circulation) to the
Earth as an environmental product.
・The number of leaves represents ranks. The more there are leaves, the higher
the rank is (more friendly to the Earth).

curing systems, “two-component curing,” “anaerobic curing,” and “ultraviolet curing” are available, andhave been adopted in various fields such as electronic parts of motors, etc., rivet bonding, and welding
substitution.

Aqua represents
sea

Okura Board

Arrow represents
circulation
Red and blue are Okura Industrial
Group’s corporate colors“Okura Board”, which is made mainly of waste wood such as construction waste, contributes to a
recycling-oriented society by recycling materials to effectively use resources. In comparison with thermalenergy recovery in which energy source is obtained by burning waste wood, “Okura Board” contributes

Framework of environmental contributing products

to the prevention of the global warming, by curbing CO 2 emissions through cascade use of woodmaterials in which waste wood is recycled to a product.

Triple leaves forhigh rank products

Okura Board

Recycling fixed carbon

Impacts of “Okura Board” production on CO 2 fixation
Production of “Okura Board” in FY2021 was approx. 120,000
tons, which fixed approx. 170,000 tons *1 of CO 2 . Even in

Environmental
contributing products(three ranks)Single leaf for
low rank products

uf a

e

Ma n

i l iz

ct

Ut

ur

e

consideration of CO 2 emissions generated in production
Okura Board

activities at Takuma Plant, a manufacturing site, approx. 150,000
tons of CO2 per year is supposed to be fixed. It corresponds toan amount of CO2 absorbed by approx. 17 million 40-year-old*1 Calculated with the calculation method for carbon reserves set
forth in the Guideline Concerning Carbon Reserves Related toWood Materials Used for Building issued by Forestry Agency

Trees has functions of absorbing
CO 2 in the atmosphere andreleasing oxygen through photonic
synthesis, and storing fixed carbon.

Lumber*2 Calculated in reference to a website of Forestry Agency “Howmuch do forests absorb carbon dioxide?”

D is m a ntle
Construct

Approx.
150,000 tonsof CO2

Amount of CO2
absorbed by acedar per year

Product base line
Environmental Policy,
Quality Policy

cedars per year (approx. 17,000 ha)* .
2

17× Approx.

millioncedarsPercentage of sales of products
certified as Caerula™ in 2021

of biomass plastics or more. Biomass plastics are made of raw materials derived from sugar cane and other plants. Since plants absorb CO2 in the course

Percentage of products certified as Caerula™ in
the living support category
Products certified as Caerula™
34.6％
18,764 million yen

Materiality

In shrink films, our main products, LAPLOR™ BIO, “Power Shrink Bio” and “CS Shrink Bio” are available, which are biomass shrink films containing 25%

In accordance withEnvironmental Policy and Quality Policy,
it is required to fulfill criteria of
the product base line.

Certification of Caerula™ in the living support category products

Approx. 17,000 ha

Developing and selling products with excellent functionality

Double leaves for
medium rank products

2021 (result)2024 (target)

2030 (target)

34.6％

50％

100％

Non-certified
products
65.4％
35,463 million yenof growing, environmental burdens of the biomass plastics are considered smaller than ones of conventional plastics derived from petrochemicals. As with
OKUWRAP™, LAPLOR™, and “Power Shrink” which have been widely popular, they are biomass shrink films with excellent aptitude for wrapping, heatsealing ability, and contraction stress.

45

SUSTAINABILITY REPORT 2022

SUSTAINABILITY REPORT 2022

46

SocialPromise to Customers

Initiatives for Strengthening the Quality Control System
Okura Industrial Group has systematically worked to reduce human errors in various operations of production activities and work in the production process,in order to further reduce complaints from customers and quality-related troubles in the Company. Presently, at one plant as a model plant, members of the
Quality Assurance Department and the plant are working together to do it. Details of the systematic initiatives for reduction of human errors are as follows.

Promise to Customers
Setting “Customers First” as one of the management philosophies, we will help customers solve issues through business

1

Analyze pastcomplaints from
customers caused byhuman errors at the
plant

6

Develop andimplement
improvement
measures for each
issue

2

Analyze past qualityrelated troubles in theprocess caused byhuman errors at theplant

Verify effects of each

7 of the improvement

Analyze contentsof answers of thequestionnaire, andconduct a hearing formembers of the plant
to confirm details

3

Prepare questions for aquestionnaire based on
1 and 2, and implement
a questionnaire survey
for members of the
plant

4

8

Prepare educational
materials for reducing
human errors through aseries of the activities,
and provide education
for members of theplant

9 issues, andmeasuresactivities in accordance with Okura Industrial Group Quality Policy.

5

Prepare a list of issues
based on answers to
the questionnaire andresults of the hearing

Summarize remaining
incorporate them incontinuous activities

Aiming to be “a solution partner that creates new value through underlying technology and is selected by customers” in the business vision Next 10 (2030)
outlining where we want to be, Okura Industrial Group will contribute to the enhancement of value for customers and to solutions to social issues. We will also

By expanding such activities as a package in other plants, we will reduce complaints from customers and quality-related troubles in the process, which could

contribute to realization of a sustainable society by creating social and environmental value through business.

occur in the Group.

Quality

Materiality

P o l i c y

Pursuing Higher Quality and Safer Products
To provide customers
with safe and secure
products, we approach
manufacturing from theviewpoint of 5M1E.

While complying with
relevant laws andregulations, we faithfully
keep promises to customers
and provide safe productsthat benefit society.

Each of our employees
listens to customer’s
voices and continues
to pursue customer’ssatisfaction withcreativity and ingenuity.

We aim to growtogether withcustomers and become
their trusted partner.

Each of us continues
to grow as individuals
and overcomes newchallenges to exceed ourcustomers’ expectations.

Design Review Knowledge Management System(DR-KMS)
Okura Industrial Group developed DR-KMS to surely and smoothly conduct
development of new products. In August 2020, the system begun to be used by the
Plastic Film Division, and was introduced to other divisions. At the end of 2022, alldivisions started to use it. This system is to prevent similar quality-related troubles

Okura Industrial Group has pushed ahead with a continuous improvementof quality assurance and quality control systems so as to keep providing
products and services with quality which we promised customers.
We are striving to further reduce the number of quality-related complaints

（％）
100

with the following activities for the purpose of preventing the complaints andrecurrence of them: horizontal development of improvement in production
facilities; clarifying causes of occurrence and leakage using the system
to respond to complaints and reviewing measures; implementation of the47

SUSTAINABILITY REPORT 2022

secure and safe products.

③ Able to provide customers new products without missing a business
opportunity, by shortening a development period.

76
52

Proceeding of design review and use of knowledge

400* For more details, please see
Okura Industrial’s website

use the DR-KMS toward realization of a sustainable society, and provide customers② Expected to facilitate progress management by systematizing and visualizing
the progress in design review, and to prevent a delay in development of new
products.

65

examination of design/development projects through design reviews.

In Okura Industrial
Group, each division has
obtained ISO9001:2015
certification, and been
conducting continuous
improvements to provide
products and services
with quality that we havepromised customers.

is implemented at each stage of product development. The Group will effectively

88

60

20

Messageand using it at time of drafting and examining proposals in the design review which

100

80

Company-wide quality patrol during a month for strengthening quality; andAcquisition of ISO9001 certification

which are caused by design, by enabling reference to past technological knowledge

Occurrence rate of complaints
for three divisions compared to 2017(2017–2021)

Merits of the use① Able to readily refer to knowledge on technology and legal restrains, etc. attime of drafting and examining proposals at the design review. Also, expected
to curb regression in design development by using its contents, make thedevelopment speedier and more efficient, and lead to fewer complaints
caused by design.

2017

2018

2019

2020

2021（year）

Request design
Examine whether to start design

DR0

Examine trial plan with test model

DR1

Examine whether to shift to test production of actual model

DR2

Knowledge−Voice of employees−

Among complaints received by Okura Industrial
Group, there are not a few ones caused byhuman errors.
Human errors have been discussed for sometime, and are said to be unable to be eliminated.
However, it is possible to reduce human errors
by improving an environment which caused theMasato Kondo

errors. To that end, it is very important to not

Quality Assurance
Department
Sustainability Promotion
Department
Corporate Centerscold those who made a mistake but improvethe environment as wondering what caused

Examine plan for test production of actual model

Examine whether to shift to mass production

patiently promote such activities.

Laws andregulations
Must-be quality

SSM*(Stress Strength Model)

DR3

Examine permission for release of actual model produced as a trial DR3.5

the mistake and hearing opinions. I intend to

Past troubles

DR4* Structurally expressed in order to use knowledge on a generating mechanismof failures, defects, and danger which may occur in products and processes
for predicting and preventing troubles at time of design and planning

In all stages of design review, those who draft, examine, or approve
proposals shall refer to knowledge on past troubles, and laws andInitial production management

regulations, etc. on the system.

SUSTAINABILITY REPORT 2022

48

SocialPromise to Employees

Initiatives for Diversity
Okura Industrial Group has been promoting creation of a comfortable working environment where all employees can make the best use of their abilities at
each of their workplaces. Especially in relation to women’s participation, we will increase the composition ratio of female employees and the ratio of female
managers, expanding their hiring and developing an educational system. In addition, we will keep the level of statutory employment rate of people withdisabilities, and improve the working environment to allow them to be active with peace in mind.

Composition ratio of female employees (As of December 31, 2021)*
Male
No. of employees

Female

876

Total

167

Ratio of female

1,043

16.0％

Ratio of new female graduates (As of April 1, 2022)*

Promise to Employees

No. of people with disabilities

28

Employment rate

2.3％

Composition ratio of female managers (As of December 31, 2021)*

Total of new employees

27

Female6

Ratio

Employment rate of people with disabilities (As of December 31, 2021)*

Male
Managers

Female

379

Total

41

Ratio of female

420

9.8％

22.2％

* On a non-consolidated basis

Human Resources System

Health and Productivity Management

Okura Industrial Group will foster a spirit of challenge and voluntary willingness to grow in employees’ various career development. To this end, we are

Okura Industrial Group has been working to promote employees’ mental and physical health. To be more specific, we have conducted employees’ healthrestructuring the human resources system in which, under ample education systems, employees are ranked by level depending on their abilities, job contents,

survey since 1996. In 2016 when the stress check system was legislated, survey items were renewed. Based on results of the survey, we have been working on

and responsibilities, and rightly evaluated and treated with achieved results and behavior in the course thereof.

the promotion of mental and physical health.

2021 stress check2021 health checkup

Eligible workers

Ensuring of Human Resources

Persons with high stress level

Okura Industrial Group has been making various efforts for ensuring and fostering human resources, aiming to improve the Group’s personnel ability for its

Ratio of persons with high stress level

2,434

Ratio of persons who took re-examination

58.1％

241

Ratio of persons with healthy weightlevel

63.0％

Ratio of smokers

30.0％

9.9％

Certification of the 2022 Health& Productivity Management
Outstanding Organization
On March 9, 2022, Okura Industrial was certified as the2022 Health & Productivity Management Outstanding
Organization (the large enterprise category) which is
promoted jointly by Ministry of Economy, Trade andIndustry and the Nippon Kenko Kaigi. The CertifiedHealth & Productivity Management Outstanding
Organizations Recognition Program is a program torecognize outstanding large enterprises and SMEs
implementing health and productivity management,
based on initiatives responding to regional healthissues, as well as health promotion measures promotedby the Nippon Kenko Kaigi.

sustained growth. To be more specific, we put emphasis on ensuring of excellent human resources of new graduates by enhancing internship activities andstrengthening relationships with local schools and ones in neighboring prefectures. We also renew our website for recruitment and use staff agencies to workon recruitment through a year and ensuring of industry-ready core human resources. Furthermore, we support preparation of a career plan, implementing

Declaration of health and productivity management

follow-up interviews after joining the Company and follow-up training three years after joining it.

In accordance with the management philosophy “Respect the Individual,” Okura Industrial Group
believes health of each employee is important. The Group declares that it will strive to create a working
environment where employees can work with mental and physical health, as well as motivation.

Educational training/evaluation systems
Okura Industrial Group has formulated our business vision Next 10 (2030) outlining where we want to be in
10 years. Clarifying an image of personnel required for each level to realize the vision, we are implementing
educational training based on new educational systems, and promoting the restructuring of a personnel
evaluation system.
As for the educational training, skills necessary for each level (conceptual skills, human skills, and technicalskills) are defined, and education and training in light of the definitions is provided. In the evaluation

Major priority measures
Aiming at a workplace where employees can actively work with mental and physical health, Okura
Industrial Group will address the following initiatives for promoting health.
① Promote the health management, including physical health and mental health, to allow employees towork without anxieties.
② Work to promote mental and physical health of employees in cooperation with the health insurance
association.
③ Implement periodical health checkups, and keep the ratio of persons who took the checkup at 100%.
④ Make efforts for increasing the percentage of annual paid leave days taken.

system, images to be aimed in the field of human resources are defined as “innovation,” “next generation
development,” and “improvement of productivity.” Then, we classify necessary human resources into
types of human resources for job, leaders, and highly efficient operations to design the system.

Reform of Working Practices
Message

Okura Industrial Group will push ahead with the development of a working environment where flexible ways of working can be selected, which is suitable for−Voice of employees−

employee’s life plan and life stages.
Since taking up the position of Section Manager in this April, I have behaved as seeking my own
ideal image as a manager. However, I was sometimes afraid whether the approach I took is reallyright or not. Under such circumstances, participating in training for new managers, I got aware

Chie Kurimoto
Creation Group Manager
Okura Information System
Product Service Department

again that it is important to have a perspective of organizational management, and to always
think about what we can achieve for the Company as a team. In addition, knowledge and a way of
thinking necessary for managerial job that I could learn has led to my confidence. Since we usually
have a lot of opportunities to work regardless of age and departments, an exchange with diverse
members through group work and other activities became valuable experience. I hope to create
the department capable of growing and developing, practically using what I learned in the training.

We will decrease workloads at sites with the promotion of DX and automation of plant equipment, promote a reduction in overtime work, and encourage
employees to take annual paid leaves. We will also consider the introduction of various systems such as telecommuting and a flextime system which would
lead to the reform of working practices.

Percentage of annual paid leave days taken(2021)*
Number of days taken
Percentage* On a non-consolidated basis

49

SUSTAINABILITY REPORT 2022

Usage of each system(2021)*

10.0 days/person
54.8％

Male

FemaleChildcare leave system

417

Short working hours system

019

SUSTAINABILITY REPORT 2022

50

SocialSafety and Health

Okura Safety Day
Okura Industrial Group has designated November 28 when the fire brokeout at Takuma Plant as the “Okura Safety Day,” and a period from November
28 through December 4 as the “Safety Awareness Week.” On Okura Safety
Day, in strong determination never to forget tragic experience we had in
the past and lessons therefrom, and repeat the same mistakes, the safetyconvention is held at the Takuma Plant. Officers, head of manufacturing
sites, and safety and health administrators attend the convention, andrecognize once again that our basic philosophies, “safety first” and “safety
as the foundation of our management,” were established in the wake of thefire disaster. In addition, all attendants implement the safety patrol in the
Takuma Plant. During the Safety Awareness Week, at each manufacturingsite, the safety patrol is conducted and managers of each site hold morning
assembly.

Safety and Health
In Okura Industrial Group, managers take leadership to work on creation of the safe, health, and comfortable workplace withall employees participating and actively communicating, under the basic philosophy of “Make the safety a primary concern.”

Number of Lost Time Accidents

and “Make the safety the core of management.”

In Okura Industrial Group, the number of conventional accidents of “gettingcaught by machine” and “cutting and rubbing” accounted for the majorityof accidents which happened in the Group in 2021. In addition, five lost time
accidents took place. In order to prevent similar accidents from recurring,
we have been conducting activities for creating safe and healthy workplacesacross the Group by putting emphasis on recurrence prevention measures(Make the safety a primary concern.Make the safety the core of management.)

and widely conducting them. When feeling potential dangers at a workplace,
employees are supposed to report about near miss accidents and unsafe
actions. Through this case report, risk factors of each workplace are
extracted and identified. We take countermeasures for risks according to

Occupational Safety and Health Activities

a degree of danger to reduce risks and prevent disasters. Since the risk of

Number of lost time accidents（cases）
10
8

7

6

6

2
0

5

4

4

1
2017

2018

2019

2020

2021
（year）

occupational accidents increases when troubles of manufacturing facilities
We formulate and share an annual safety and health target for the entire Okura Industrial Group based on a policy of management executives. The target isoccur, we make sure to “stop” the facilities at time of occurrence of troubles,

incorporated in safety and health activities and their plans of each manufacturing sites.

and also put emphasis on preventive maintenance activities not to cause

Central Safety and Health Meetings are held every year in June and September, for the purpose of maintaining and the increasing safety and health level.

troubles of manufacturing facilities.

Management executives, head of manufacturing sites, and safety and health administrators attend the Meeting, in which initiatives related to safety and healthand progress in relevant activities at each sites are reported, in order to widely spread the initiatives. During the period of the National Occupational Safety
Week (July 1 to 7), management executive themselves patrol premises of manufacturing sites, and confirm and share issues, points to improve, and targetsof each manufacturing site, for the purpose of confirming safety of workplaces and increasing employee’s awareness of safety. In addition, industrial doctors
inspect workplaces on a regular basis to check the status of safety and health management at the workplaces and give instructions. Thus we are striving to
improve the safety and health level.
With safety administrators and health administrators respectively deployed, each manufacturing site is working on safety and health activities. Based on therisk prediction training (KYT), risk assessment, implementation of tool box meeting, and issues of safety and health initiatives, the annual safety and healthpolicy and target are determined. Then, we conduct activities to achieve the target. Furthermore, managers engaged in manufacturing learn knowledge
necessary to instruct and educate foremen and operators, and have high level of awareness of safety and a sense of responsibility as personnel in charge ofsafety and health management to work on safety and health activities.

Promotion of Traffic Safety Activities
Okura Industrial Group requires all commuters to surely place a safe driving
sticker on vehicles for commuting with the aim of increasing the awarenessof safe driving.
We also report the number of accidents and raise awareness at the generalmorning assembly and the General Meetings of Safety and Health. At
the Safety and Health Committee held periodically at each workplace,2022 Safety and Health Target
Thorough safety and health management focusing on 5M1E

Remove habituation, negligence, and assumption,and eliminate accidents of getting caught by machine

51

SUSTAINABILITY REPORT 2022

Safety and Health Action Guideline① Deepen communication and identify potentially dangerous action② Strive to increase awareness of participation (engagement) and work to
improve the working environment

Targets of individual efforts① In the event of a trouble, thoroughly follow procedures of “stop, call, wait”② Increase awareness of danger to avoid any traffic accidents, keeping in
mind to drive as predicting dangers③ Act responsibly and make efforts for preventing infection and spreading
virus

information on dangers is shared through reports about accidents, andvideos of the safe driving enlightenment activities are viewed. With these
efforts, we strive to increase sensitivity for risk prediction and make sure todrive as predicting dangers.
In April 2022, alcohol check by safe driving administrators before and after
driving was obligated. The Group applies the rule to not only company
vehicles but also business use of vehicles for commuting, and implements
the alcohol check with an alcohol detector.

SUSTAINABILITY REPORT 2022

52

SocialContribution to Societ yCollaboration with university and company

Workplace experience

We put emphasis on collaborative local revitalization businesses and

The Group accept students from neighboring schools for the workplace

human resource development, for example, commercializing products inexperience learning. We provide experience learning to make the students

cooperation with National University Corporation Kagawa University andinterested in manufacturing, by, for example, explaining the overview of theSojitz Pla-Net Corporation, and making our Directors deliver lectures at

Company and process until a product is finished, and offering experience

Kagawa University.

of forming plastic films.

Please refer to page 17 for details about Endo barrier™
developed jointly with Kagawa University.

Contribution to Society

Response to COVID-19

Setting the management philosophy focusing on engagement with various social aspects, Okura Industrial Group is aiming
at contribution to resolution of social issues through business activities and realization of the Group’s vision.

Infection prevention measures

Okura Industrial Group, which has included “Contributing to the society” in its management philosophy, proactively participates in local cultural programs

The Group has taken preventive measures for the spread of COVID-19, including staggered commuting

and various events, and strives to contribute to local communities. As a company harmonizing with a local community, we will proactively conduct local

and telecommuting. In order to minimize damage in the event that employees got infected, we havecontribution activities and regional environment conservation activities, deepen understanding about issues a local community face, and actively participate inensured activities with small group at manufacturing sites, and distributed operations using conference

activities which would lead to resolution of the issues, as well as local revitalization business.

rooms for office staff. In addition, during the pre-emergency measures and the declaration of state of

We will build workplace culture where all employees make efforts to contribute to local communities, and aim to be a company, existence value of which in theemergency, business trip was restrained, and traveling between business sites was prohibited.

region can be recognized by local residents.

We make sure to measure temperature and disinfect hands at entrance, install partitions for preventing
airborne droplets in business offices and reception rooms, and clean up them with alcohol antiseptic
after use. We also ask visitors to surely measure temperature and disinfect their hands, paying close

Local Contribution Activities

attention to prevent the spread of infection.

Okura Industrial Group has been working on local contribution activities in various forms, while aiming at social contribution through business.

Sports promotion

Volunteer activities

Implementation of workplace vaccination
Amid the spread of COVID-19, vaccination by workplace became available at supporting companies,

In order to contribute to promotion of rich sports culture, we support

A lot of our employees proactively participate as volunteers in Marugame

universities, and other organizations in order to reduce burdens on local medical institutions andvarious sports teams in Kagawa every year. We help produce next-

Castle Festival (every May), Marugame Basara Festival (every August), andaccelerate the vaccination. It is required that companies, universities, and other organizations ensure

generation human resources in Kagawa.

other local festivals, as well as tree planting activities. Also, as a part ofhealthcare workers and venues, etc. by themselves, and that there is no impact on vaccination projects oflocal contribution activities, we conduct cleanup activities in neighboringmunicipalities.

areas of business sites.

From September 11, 2021, the Group implemented the workplace vaccination for employees and theirfamilies, as well as people of neighboring companies. The Group employees could get vaccinated within
working hours, and, in principle, take special paid leaves for two days per dose of the vaccination whenfeeling ill on and after the day of vaccination. In this way, we made more employees get vaccinated.
At that time, it was difficult to make reservation for the vaccination due to a shortage of vaccine. We
therefore offered vaccination to employee’s family and people of neighboring companies if they want, andhad 528 people in total receive two doses of the vaccine.

ⒸKAMATAMARE SANUKIⒸKAGAWA OLIVE GUYNERSⒸKAGAWA FIVE ARROWS

Artistic and cultural activities

Volunteers for Marugame Castle Festival

Volunteers for cleanup activities in Marugame

Donation to Mitoyo

We contribute to various artistic and cultural activities held in Kagawa

Hozan Lake Ball Park Yume-ippai Project conducted by Mitoyo, Kagawa

Messagesuch as Setouchi Triennale, Seto Philharmonic Orchestra, and Takamatsu

aims to develop human resources capable of promoting health andVolunteer of the 75th Kagawa Marugame International Half Marathon

International Piano Competition.

industries, and realizing dreams, by operating multifaceted businesses−Voice of participants in events−

centered on sports, including education (realization of children’s dreams),
health/wellness (promotion of citizen’s health), and tourism (creation ofbusiness). Okura Industrial donated 50 million yen to the project.

Cleanup activities in the neighboring area of Takuma Plant

On the day of the event, we worked in cooperation

I participated for the first time in the cleanup activity

with staff of Marugame. I felt fresh, havingin the neighboring area of the plant which Takuma

exchange with local citizens at such a place. I

Plant conducts as part of the local contribution

was happy to participate. I think there are a lot

activities. I thought the environment near theof opportunities to be able to contribute to theplant was kept very clean. However, seeing the

local community through volunteer and otherlarge amount of garbage collected this time, I was

activities in addition to manufacturing. Going

amazed at the fact that a lot of litter had been

イベント参加者コメント

Rina Matsuoka
Corporate Center
Human Resources
Department

forward, I will proactively participate in events,
and work to contribute to the local community
as a member of Okura Industrial.

Nean Omori
Housing Materials
Division
Takuma Plant

thrown away on sidewalks, gutters, and otherplaces that I do not usually pay attention to. I hopeto improve not only the workplace environment
but also the local environment to make our plant
beloved of local citizens, by continuing to conduct
such social contribution activities.

Opening ceremony of Setouchi Triennale 2022

53

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54

SocialPromise to Shareholder s and Investor s

IR Calendar
1st quarter
Jan.

Feb.

2nd quarter
Mar.

Apr.

May

3rd quarter
Jun.

Announcement of year-end
Announcement of 1st quarter
financial results
financial results
Financial results briefing Annual General Meeting
sessionof Shareholders
Issuance of Shareholder
Newsletters

Jul.

Aug.

4th quarter
Sep.

Oct.

Issuance of Shareholder
Newsletters
Announcement of 2nd quarter
financial results
2nd quarter financial results
briefing session

Nov.

Dec.

Announcement of
3rd quarter financial
results

Initiatives to Make General Meetings of Shareholders More Effective

Promise to Shareholders and Investors

Emphasizing a general meeting of shareholders as a place for constructive dialogue with shareholders,
Okura Industrial takes the following necessary measures to have in place an environment where
shareholders can adequately exercise their rights.
1 We hold the meeting, avoiding the date on which meetings of other companies concentrate.
2 In order to ensure enough time to consider proposals, we dispatch the notice of convocation before thestatutory date to do so, and promptly disclose information included in the notice of convocation on TDnet

Ensuring of Shareholder’s Rights

and our website prior to the dispatch.
3 Apart from information required by laws and regulations, we disclose information deemed necessary for

Okura Industrial recognizes that all shareholders are equal according to the number of shares held. Accordingly, the Company takes appropriate measures toshareholders to exercise their rights at the general meeting of shareholders.

virtually ensure shareholder’s rights, and provides the environment required to exercise such rights. To be more specific, procedures related to exercise of the

4 We endeavor to enhance matters contained in the notice of convocation (including business report andshareholder’s rights and responsible departments are specified in the internal rules. In addition, we have prepared the corporate website in English. In relationreference documents), and provide the notice of convocation, summary of financial results, timely disclosed

to information demanded by overseas investors, a notice of convocation and other materials are translated and disclosed in English.

The 102nd Annual General Meeting of Shareholders

information, shareholder newsletters, and other information by placing them on TDnet and our website.
5 We analyze trends in and results of exercise of voting rights for proposals made by the Company, andshare them in the Board of Directors. In relation to a proposal against which a considerable number ofshareholders voted at a general meeting of shareholders, the Board of Directors analyzes its cause, anddirectly or indirectly talk with shareholders in an appropriate way.
6 When institutional investors and others who hold shares in the name of a trust bank, etc. want to personally

Policy Concerning Constructive Dialogue with Shareholders

exercise voting rights, we will respond to such case upon consultation.
7 We strive to improve the environment by, for example, introducing a platform for exercising voting rights
through electronic means to enable institutional investors and others to efficiently exercise voting rights.

Our basic policy is to promote constructive dialogues with shareholders and investors that would
contribute to a sustained growth and an improvement in medium- and long-term corporate values.
The Director in charge of Corporate Center generally manages and coordinates the constructive

Capital Management Policy

dialogue with shareholders. We have designated General Affairs Department as a contact for individual
shareholders, and Finance and Business Administration Department as a contact for institutional

Okura Industrial manages business, setting the medium- and long-term target of return on equity (ROE) at 8% or over to maintain and improve shareholder’sinvestors and other bodies. We strives to promote smooth and effective dialogues, for example, having

value. When allocating management resources and developing business strategies, we make decisions in consideration of consistency with our capital cost.

Representative Director or Director in charge respond to interviews, according to a purpose of a dialogue.

Regarding returning profits to shareholders as one of our top priority management issues, we have a basic policy of making efforts for increasing the level of

The Company has dialogues in various manners, such as semiannually holding financial results briefing
sessions for institutional investors, personal interviews, factory tours, and TV meetings.
A Director who responded to the dialogue reports shareholder’s interests, opinions, and concerns whichwere obtained through the dialogue to the Board of Directors to share their details.

Dialogues with investors

dividends, comprehensively taking into account business performance and a balance of financial soundness, on the basis of continuous stable dividends.
Financial results briefing session in February 2022
(delivered online)

Shareholder Benefit Programs
Okura Industrial appreciates shareholders’ support, and thus, implements the shareholder benefit
programs.

Activities

2021

Financial results briefing session

2 times

Based on the following criteria, the shareholder benefits are presented according to the number of

Personal interview

15 times

shares held as of December 31 every year.

Share unit

100 shares

100 shares or over, lessQUO Card

1,000 yen × 1

Meal tickets for Okura Hotel Marugame

1,000 yen × 2

QUO Card

2,000 yen × 1

Meal tickets for Okura Hotel Marugame

1,000 yen × 4

QUO Card

3,000 yen × 1

Meal tickets for Okura Hotel Marugame

1,000 yen × 6

than 1,000 shares
1,000 shares or over, lessthan 2,000 shares

2,000 shares or over

55

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56

SocialGovernanceP r o m i s e t o B u s i n e s s P a r t n e r s /C o r p o r a t e G o v e r n a n c e

Promise to Business Partners

Corporate GovernanceIn cooperation with suppliers, we hope to work together on sustainable procurement, and aim to increase corporate value.

In response to ever-changing demands from society, we explore an effective corporate governance style that suits us and

The procurement in consideration of compliance with laws and regulations, human rights, natural environment, working environment, and bribery andupdate the style as needed.

corruption is one of corporate social responsibilities. The spread of efforts for sustainable procurement from the Company to suppliers and more will lead to

To continue to be a company that is trusted by society, Okura Industrial aims for corporate growth while keeping in mind to coexist with society. Under oursustainable development of the entire supply chain. To that end, we monitor whether there is any inappropriate acts related to human rights and environments

management philosophy of “Respect the Individual,” “Contributing to the Society,” and “Customers First,” we will achieve a sustained growth and an increasein the supply chain (especially upstream), and work on building and operating a mechanism for dialogues.

in medium- and long-term corporate value by conducting business operation focusing on ESG in the changing social environment. To this end, we will

Also, through the sustainable procurement, we strive to establish trust relationships with stakeholders.

implement sound management practices as we hold dialogues with all our stakeholders.

Materiality

Establishing and Operating a Mechanism of Raw Material Procurement Conscious about Human Rights, etc.

Corporate Governance System

Okura Industrial Group is presently working to further establish a mechanism, asking suppliers to consider human

General Meeting of Shareholders

rights. If any human rights issues are found, including forced labor, child labor, long working hours, illegal low-wagelabor, discriminatory or inhuman treatment of employees, we will take appropriate measures in cooperation with
suppliers, in order to promote responsible procurement. In addition, to prevent the human rights issues, we will
strive to conduct awareness-raising activities to adequately establish correct understanding about and behavior

Elect/
Dismiss

Elect/
Dismiss
ReportElect/
Dismiss
Report/State opinion

for respecting human rights.

Board of Directors

Establishing and Operating a Mechanism of Environment-Conscious Raw Material Procurement (Green Procurement)
In 2007, Okura Industrial Group established Control Criteria for Chemical Substances, Okura Industrial (hereinafterreferred to as the Criteria) to appropriately manage chemical substances. Presently, in order to increase efficiency
of information communication on chemical substances contained in products among the supply chain, we
have redeveloped the Criteria and are investigating whether chemical substances regulated by the Criteria aresubstances specified by chemSHERPA*. As a part of development of human resources capable of managing
chemical substances, which is a policy included in the Medium-term Management Plan (2024) of Environmental
Management Department, we are working to improve educational environment using e-learning system, andimprove abilities of chemical substances administrators and practitioners.
* Information communication scheme on chemical substances contained in products, which is operated by Joint Article Management Promotion-consortium (JAMP).

Accounting Auditor

contained in raw materials, etc. used in the Group, based on legal restraints including chemSHERPA management

Cooperation

Audit and Supervisory Committee

Materiality

Audit, supervise
Consult
Nomination andRemuneration
Committee
ReportReportInstruct

InstructSustainability Committee

ReportInstruct

Corporate Center

Research &Development Center

Plastic Film Division

security. In relation to the packaging design, we are systematically working on activities for providing

Instruct

InstructCompliance Committee

New Materials Division

I think we must demonstrate our corporate attitude about how to ensure customer’s safety andReportInternal Control/
Auditing Office

Housing Materials Division

food, film design in conformity with the legitimate PL System will be required. Through the PL System,

Plastic Film Division
Purchasing andProcurement Department

Audit

ReportReportBoard Meeting

Supervise

consumer ones. Among them, products for food packaging account for approximately 35% of all. On

Junji Okano

Instruct

Instruct

Cooperate

Plastic Film Division manufactures and sells a broad range of products from industrial products to

was introduced. In and after June 2025 when the five-year grace period expires, for films contacting

Supervise

Representative Director
Report−Voice of employees−

June 13, 2020, the Positive List System for Food Utensils, Containers, and Packaging (the PL System)

ReportRespondAffiliate companies

Message

Proposecustomers with products compliant with the PL System, in cooperation with manufacturing sites andQuality Assurance Department. With the belief that procurement of raw materials leads to customer’ssafety and security ahead, we will strive for stable procurement of raw materials for food packaging.

57

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58

Governance

Board of Directors

ComplianceNomination and Remuneration Committee

To Okura Industrial Group, compliance means not only complying with laws and

For Okura Industrial’s sustained growth and increase in medium- and long-

The Nomination and Remuneration Committee has been established as aregulations but responding to expectations and requests from society. We haveterm corporate value, the Board of Directors formulate important corporatebody with which the Board of Directors consult and that makes decisions.

therefore prepared a textbook that covers regulations, rules, case studies, andstrategies and supervise the execution of those strategies. The Board

The purpose of the Committee is to select and dismiss Representative

other relevant information and made it accessible to all employees. We also offer

also builds internal control and risk management systems. Seven Inside

Directors and nominate Director candidates, as well as to ensure

training and education on compliance on a regular basis.

Directors and five Outside Directors comprise the Board of Directors. The

independence, objectivity, and accountability of the Board of Directors’

Organizations that ensure compliance include the Compliance Committee,

members are chosen to ensure that the Board possesses well-balanced

functions concerning remuneration, etc. for Representative Directors

chaired by the President, and the Compliance Action Committee thereunder, run

experience, knowledge, and skills, while maintaining diversity as a whole.

and Directors. The Committee consists of one chairperson selected fromby employees in charge of the matter. These Committees hold meetings on a

Outside Directors account for one-third or more of all members to ensure

Independent Outside Directors; other Independent Outside Directors; andregular basis and make reports, etc. as necessary.

transparency and effectiveness of the Board of Directors.

Operating Officer, President, Director.

In addition, internal and external whistleblowing hotlines are in place. By regularly
providing information about the hotlines, we strive to create an environment that

Audit and Supervisory Committee

Corporate Governance

Meeting Bodies and Committees

Board Meeting

By auditing and supervising the business execution of Directors, theThe Board Meeting plans and proposes basic policies and basic plans for

Audit and Supervisory Committee helps achieve a sound and sustained

business execution, based on decisions made by the Board of Directors.

corporate growth and an increase in medium- and long-term corporate

The Committee also discusses important business matters that should

value. The Committee consists of six members including five Outside

be brought up at Board of Directors meetings. In addition, resolutions

Directors. Four Outside Directors meet the criteria for independence set byon important matters that do not necessarily meet the above criteria areTokyo Stock Exchange, Inc.

approved by the Committee. The Committee consists of Operating Officers

Internal reporting system
Okura Industrial Group has introduced an internal reporting
system to prevent illegal acts and misconduct, as well as toimprove the self-cleansing function. Based on the Compliance
Program Regulations, report details are kept confidential andinterests of whistleblowers are protected. Whistleblowers canremain anonymous and receive feedback from the Company
about the results of investigation on and measures taken
against the reported facts.

makes whistleblowing easier. In response to the revised Whistleblower Protection
Act that took effect in June 2022, we pay closer attention to the protection ofwhistleblowers and report details.

(including those who concurrently serve as Directors).

Remuneration for Officers
Remuneration for Okura Industrial’s Directors (excluding Directors serving as Audit and Supervisory Committee Members and Outside Directors) consists ofbasic remuneration Performance-linked compensation and stock compensation. The ratio between the three types of compensation is roughly 8:1:1. Basic
remuneration is monetary compensation set in accordance with the position level. A fixed amount is paid every month. Performance-linked compensation ismonetary compensation linked to performance. By linking remuneration for eligible Directors with corporate performance and the degree of contribution, we
intend to increase motivation for better performance. Restricted stock compensation is shares with transfer restrictions allotted based on the amount specificto the position level. By having eligible Directors share the risks and benefits of share price fluctuations with shareholders, we aim to grow and increase
corporate value in the medium and long term.
Directors and Outside Directors serving as Audit and Supervisory Committee Members are paid fixed remuneration only and are not eligible for the stockcompensation plan. The remuneration system is designed in this way to ensure that their remuneration is not directly affected by corporate performance,
thereby securing their independence from the Company’s management. In addition, the appropriateness of the remuneration system and the amount of
remuneration for each Director is discussed by the Nomination and Remuneration Committee.

Risk Management
Okura Industrial Group offers a variety of products and services to society. We thus bear quality, environmental, safety, and other types of risks. Functions in
the head office share roles in analyzing each type of risk and strive to prevent and respond to them. Furthermore, our head office functions and major plants
are in Kagawa. This makes it important to prepare for the Nankai Trough Mega Earthquake, which is expected to happen in the near future. Our BCP initiatives
include decentralization of manufacturing sites, preparation of relevant regulations, and emergency drills.
We constantly improve and strengthen information security. To make sure that all employees understand the importance of information security andappropriately handle information assets used in business activities, we strive to raise awareness toward security through regular e-learning and targeted email
attack drills.
In the face of the COVID-19 pandemic, we have been working to reduce risks by offering tangible and intangible support to employees working from home.

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60

GovernanceCorporate GovernanceDirectors and Officers
New appointment

Career summary

Career summary

Career summary

Career summary

April

1975

Joined the Company

April

1977

Joined the Company

April

1985

Registered as a Certified Public Accountant

April

1991

Joined the Company

March

2003

Director

April

2009

Operating Officer

April

1998

Joined Deloitte Touche Tohmatsu LLC

March

2017

January 2006

Executive Vice President, Director

March

2010

July

1999

Partner, Deloitte Touche Tohmatsu LLC

Manager, Accounting Department, Corporate
CenterMarch

Senior Executive Vice President,
Representative Director

Director; Supervision of Production Group,
Plastic Film Division; Supervision of subsidiarycompanies; Manager, Corporate Planning
Department, Corporate Center

March

2021

Operating officer, Manager, Internal Audit Office

April

2021

Operating officer, Manager, Internal Control/
Auditing Office (to present)

March

2022

Director (Full-time Audit and Supervisory
Committee Member) (to present)

2009

January 2010

President, Representative Director

March

Chairperson, Representative Director (to present)

2018

Chairperson,
Representative Director

Operating Officer,
President,
Representative Director

Kazunori Takahama

Susumu Kanda

Director; Division President, Plastic Film Division

March

2016

Executive Vice President, Director; Division
President, Plastic Film Division

March

2017

Executive Vice President, Representative Director;
Division President, Plastic Film Division

March

2018

President, Representative Director

March

2020

Operating Officer, President, Representative
Director (to present)

Reason for election

Reason for election

Mr. Kazunori Takahama had served as President, Representative Director since 2010, andhas served as Chairperson, Representative Director since 2018. He was judged to be able tocontinue to fulfill his responsibility as Director based on his extensive experience and insight, andwas re-elected to continue to serve in the position for the term starting the current fiscal year.

Mr. Susumu Kanda had served as President, Representative Director since 2018, and has served
as Operating Officer, President, Representative Director since 2020. He was judged to be able
to continue to fulfill his responsibility as Director based on his extensive experience and insight,
and was re-elected to continue to serve in the position for the term starting the current fiscal year.

Attendance at Board of Directors meetings (2021)

Operating Officer,
Executive Vice President,
Director
Supervision of General
Affairs, Public Relations,
Human Resources,
Sustainability Promotion,
DX Promotion, Corporate
Center; Chairperson of
Sustainability Committee

Yoshitomo Tanaka

14 out of 14 (100%)

Attendance at Board of Directors meetings (2021)

14 out of 14 (100%)Career summary

Career summary

April

1977

Joined the Company

April

1980

Joined the Company

April

2009

Operating Officer; President, Representative
Director, Kansai Okura Co., Ltd.

April

2006

Plant Manager, Marugame No. 4 Plant

April

2009

Operating Officer; Manager, Shrink Film Group,
Plastic Film Division; and Plant Manager,
Marugame No. 4 Plant

March

2010

Director; Manager, General Affairs Department,
Corporate Center

March

2011

Director; Manager, General Affairs Department,
Corporate Center; Supervision of Environment
Safety and Quality Assurance; and Supervision ofsubsidiary companies, Corporate Center

March

2017

Director; Supervision of Corporate Center; andManager, General Affairs Department

March

2018

Executive Vice President, Director; Supervision of
Corporate Center; and Manager, General Affairs
Department

January 2019

Executive Vice President, Director; Supervision of
Corporate Center; and Supervision of CSR/ESG

MarchOperating Officer, Executive Vice President,
Director; Supervision of Corporate Center; andSupervision of CSR/ESG

April

2020

2021

January 2013
Operating Officer,
Director
Division President,
Plastic Film Division; andSupervision of Research& Development Center

March

2013

November 2015

Hideki Uehara
January 2016

Operating Officer, Executive Vice President,
Director; Supervision of General Affairs, Public
Relations, Human Resources, Sustainability
Promotion, DX Promotion, Corporate Center; andChairperson of Sustainability Committee (to present)

Director; Supervision of Research & Development
Center, Plastic Film Division; Manager, ProductDevelopment Department; and Manager,
Production Management Group

March

2017

Director; Supervision of Research & Development
Center; Manager, Product Development
Department, Plastic Film Division

March

2018

Director; Division President, Plastic Film Division;and Supervision of Research & Development Center

March

2020

Operating Officer, Director; Division President,
Plastic Film Division; and Supervision of Research& Development Center (to present)

Reason for election

Mr. Yoshitomo Tanaka has served as Director since 2010 after serving as President,
Representative Director of the Company’s subsidiary. He was judged to be able to continue tofulfill his responsibility as Director based on his extensive experience and insight as a manager ofadministrative departments, and was re-elected to continue to serve in the position for the term
starting the current fiscal year.

Mr. Hideki Uehara has served as Director since 2013 after the engagement in several managerial
positions in production and development departments under the Plastic Film Division. He
was judged to be able to continue to fulfill his responsibility as Director based on his extensive
experience and insight gained in the Plastic Film Division, and was re-elected to continue toserve in the position for the term starting the current fiscal year.

Operating Officer,
Director; Division
President, New Materials
Division

14 out of 14 (100%)

Attendance at Board of Directors meetings (2021)

14 out of 14 (100%)Career summary

Career summary

1985

Joined the Company

April

April

2007

Manager, Business Unit 2, New Materials Division

January 2007

March

2009

Division President, New Materials Division

President, Representative Director, Kyushu Okura
Co., Ltd.

March

2010

Operating Officer; Division President, New
Materials Division

April

2009

Operating Officer; President, Representative
Director, Kyushu Okura Co., Ltd.

March

2017

Director; Division President, New Materials
Division

February 2010

Operating Officer; President, Representative
Director, Kansai Okura Co., Ltd.

March

2020

Operating Officer, Director; Division President,
New Materials Division (to present)

July

2015

Operating Officer; Manager, Planning and
Administration Group, Operation Support
Department, Plastic Film Division

March

2017

Operating Officer; Manager, Planning and
Administration Group, Plastic Film Division; andManager, Production Management Group

March

2021

Operating Officer, Director; Manager, Accounting
Department, Corporate Center

April

2021

Operating Officer, Director; General Manager,
Finance and Business Administration Department,
Corporate Center (to present)

Tomoo Ueta

Operating Officer,
Director; General
Manager, Finance andBusiness Administration
Department, Corporate
Center

Eiji Fukuda
Reason for election

Mr. Tomoo Ueta has years of experience in production departments under the New Materials
Division, and has served as Division President since 2009 and as Director since 2017. He wasjudged to be able to continue to fulfill his responsibility as Director based on his extensive
experience and insight gained in the New Materials Division, and was re-elected to continue toserve in the position for the term starting the current fiscal year.

Mr. Eiji Fukuda has served as Director since 2021 after the engagement in several managerial
positions in administrative departments under the Plastic Film Division. He was judged to be able
to continue to fulfill his responsibility as Director based on his extensive experience and insight infinance and accounting, and business management, and was re-elected to continue to serve inthe position for the term starting the current fiscal year.

SUSTAINABILITY REPORT 2022

14 out of 14 (100%)

Seiji Nagao

Reason for election

Reason for election

Although Mr. Takashi Kitada has no experience of being involved in the management of theCompany other than as an Outside Officer, he was judged that he is well versed in auditing,accounting and other corporate practices as a certified public accountant, and has a wide rangeof experience and insight, and that he will be able to appropriately perform his duties as an
Outside Director. For these reasons, he was re-elected to continue to serve in the position for theterm starting the current fiscal year.
The role that he is expected to fulfill as an Outside Director is to provide advice from a perspective
as an expert in auditing and accounting, and based on the knowledge gained from lengthy
experience engaged in public accounting practices, to strengthen a checking function of theCompany’s management and corporate governance. He has served as an Outside Director
serving as Audit and Supervisory Committee Member for six years.

Mr. Seiji Nagao has served in managerial position in the Internal Audit Department since 2021
after the engagement in several managerial positions in the Accounting Department. He has
also served as Operating Officer since 2021. He was newly elected because he is judged to
be able to utilize his extensive experience and insight in the Accounting and Internal Audit
Departments to contribute to further strengthening the Company’s corporate governance as well
as appropriately supervising the execution of business.

Attendance at Board of Directors meetings (2021)
14 out of 14 (100%)
Attendance at Audit and Supervisory Committee meetings (2021) 13 out of 13 (100%)

New appointment

Career summary

Career summary

April

1983

Registered as an attorney

April

April

1983

Established Baba Law Office (to present)

March

2004

Auditor, the Company

March

2015

Director

July

2016

Director (Audit and Supervisory Committee
Member) (to present)

1994

October 2001

Independent Outside
Director(Audit and Supervisory
Committee Member)

Independent Outside
Director(Audit and Supervisory
Committee Member)

Toshio Baba

Nae Iijima

Registered as an attorney and joined Dojima Law
OfficeJoined Kirkland & Ellis LLP, Washington, D.C.
Office, the United States

January 2002

Registered as an attorney in the state of New York,the United States

September 2002

Returned to Dojima Law Office (to present)

June

2003

Outside Auditor, Navitas CO., LTD. (presently
SiriusVision CO., LTD.)

April

2013

Affiliate Professor of Kyoto University Law School

June

2015

Outside Director, OSAKA Titanium technologies
Co., Ltd. (to present)

June

2016

Outside Director (Audit and Supervisory
Committee Member), Navitas CO., LTD. (presently
SiriusVision CO., LTD.)

April

2019

Vice Chair, Osaka Bar Association

March

2022

Director (Audit and Supervisory Committee
Member), the Company (to present)

Reason for election

Reason for election

Although Mr. Toshio Baba has no experience of being involved in the management of theCompany other than as an Outside Officer, he was reelected as he was judged that he is wellversed in corporate legal affairs and compliance as an attorney, and has sufficient insight into
corporate management through his legal activities, and therefore is able to appropriately perform
his duties as an Outside Director. The role that he is expected to fulfill as an Outside Director
is to provide advice from a perspective as a legal expert, and based on the knowledge gained
from lengthy experience engaged in legal activities, to strengthen a checking function of theCompany’s management and corporate governance. He has served as an Outside Director forseven years and as an Outside Director serving as Audit and Supervisory Committee Member
for six years. In addition, he has in the past been a non-executive officer (Auditor) of the Company.

Although Ms. Nae Iijima has no experience of being involved in the management of the Company
other than as an Outside Officer, she was newly elected as she was judged that she is wellversed in corporate legal affairs and compliance as an attorney, and has sufficient insight
into corporate management through her legal activities, and therefore is able to appropriately
perform her duties as an Outside Director. The role that she is expected to fulfill as an Outside
Director is to provide advice from a perspective as a legal expert, and based on the knowledge
gained from lengthy experience engaged in legal activities, to strengthen a checking function of
the Company’s management and corporate governance.

Joined the Company

Reason for election

Attendance at Board of Directors meetings (2021)

Takashi Kitada

Attendance at Board of Directors meetings (2021)
14 out of 14 (100%)
Attendance at Audit and Supervisory Committee meetings (2021) 13 out of 13 (100%)

April

1993

Director (Audit and Supervisory Committee
Member), the Company (to present)

2016

Director,
Full-time Audit andSupervisory Committee
MemberDirector; Manager, Operation Support
Department, Plastic Film Division; Manager,
Product Development Department; and Manager,
Industrial Material Group
Director; Supervision of Research & Development
Center; Manager, Operation Support Department;
Manager, Product Development Department; andManager, Industrial Material Group, Plastic Film
Division

Established KITADA Takashi CPA Office (to present)

March

Independent Outside
Director(Audit and Supervisory
Committee Member)Operating Officer; Manager, Operation Support
Department, Plastic Film Division; Manager,
Product Development Department; and Manager,
Industrial Material Group

Reason for election

Attendance at Board of Directors meetings (2021)

61

January 2013

October 2014

Attendance at Board of Directors meetings (2021)

10 out of 10 (100%)

New appointment

Independent Outside
Director(Audit and Supervisory
Committee Member)

New appointment

Career summary

Career summary

April

April

1993

Joined Sumitomo Chemical Co., Ltd. (presently
Sumitomo Chemical Company, Limited)

April

2020

General Manager in charge of Corporate Planning
Office, Sumitomo Chemical Company, Limited (topresent)

March

2022

Director (Audit and Supervisory Committee
Member), the Company (to present)

1996

Joined Takahashi Tax Accounting Office

December 1999

Registered as a Certified Public Tax Accountant

April

2003

Established Watanabe Yoichi Tax Accounting
Office (to present)

July

2020

Vice Chairman, TKC National Federation(to present)

September 2020

Vice Chairman, TKC Shikoku Local Association (topresent)

March

Director (Audit and Supervisory Committee
Member), the Company (to present)

2022

Yoichi Watanabe

Outside Director(Audit and Supervisory
Committee Member)

Yasuo Yoshino

Reason for election

Reason for election

As a certified public tax accountant, Mr. Yoichi Watanabe is well versed in auditing, accounting
and other corporate practices, and has a wide range of experience and insight. Therefore, he
was judged that he will be able to appropriately perform his duties as an Outside Director, andwas newly elected. The role that he is expected to fulfill as an Outside Director is to provide
advice from a perspective as a tax expert, and based on the knowledge gained from lengthy
experience engaged in tax practices, to strengthen a checking function of the Company’s
management and corporate governance.

Mr. Yasuo Yoshino has worked for other company for many years and has a wealth of businessexperience and knowledge. Therefore, he was judged that he will be able to appropriately
perform his duties as an Outside Director, and was newly elected. The role that he is expected tofulfill as an Outside Director is to provide advice from a unique perspective nurtured in a different
corporate culture, and based on his knowledge as a manager of the administrative division of alisted company, to strengthen a checking function of the Company’s management and corporate
governance.

SUSTAINABILITY REPORT 2022

62

GovernanceCorporate Governance

Skills Matrix
The Company has formulated the “Okura Industrial Group Policy on Corporate Governance,” which stipulates the roles and composition of the Board of

Message from our Outside Director

Directors and the policy for nominating candidates for Directors.
The Board of Directors appoints Directors with a wealth of experience and exceptional expertise in the areas of “corporate management,” “business strategy
and marketing,” “technology, production and development,” “finance and accounting,” “human resources and labor affairs, legal affairs and compliance,” andI am honored to be appointed as Okura Industrial’s first female
Outside Director.
I am an attorney admitted in Japan and New York.
I am hoping to inject a wave of diversity into the Company.
I look forward to working with you.

“sustainability, general affairs and public relations” in order to make important management decisions and to conduct proper management oversight. Directors
and Outside Directors serving as Audit and Supervisory Committee Members are paid fixed remuneration only and are not eligible for the stock compensation
plan. The remuneration system is designed in this way to ensure that their remuneration is not directly affected by corporate performance, thereby securing
their independence from the Company’s management.
Position and Responsibilities in the Company,
Qualifications
Category

Name

Areas of Expectation for the Director

GenderPosition

Responsibilities,
Qualifications

Corporate
Management

Business Strategy
and MarketingTechnology,
Production andDevelopment

Male

Chairperson, Representative
Director◎

Susumu Kanda

Male

Operating Officer, President,
Representative Director, Nomination andRemuneration Committee Member◎

Yoshitomo Tanaka

Male

Operating Officer, Executive
Vice President, Director

Supervision of General Affairs,
Public Relations, Human Resources,
Sustainability Promotion, DX Promotion,
Corporate Center; and Chairperson of
Sustainability Committee○○○

Kazunori Takahama

Inside Directors

Human Resourcesand Labor Affairs

Sustainability,
General Affairs andPublic Relations○○

Nae Iijima
Independent Outside Director (Audit and Supervisory Committee Member)Diversity and inclusion
Respecting and recognizing each individual, regardless of external attributes (including but not limited to gender, age,

Outside Directors

Hideki Uehara

Male

Operating Officer, Director

Division President, Plastic Film
Division; and Supervision of Research& Development Center

Tomoo Ueta

Male

Operating Officer, Director

Division President, New Materials
Division○

Eiji Fukuda

Male

Operating Officer, Director

General Manager, Finance andBusiness Administration Department,
Corporate Center○

Seiji Nagao

Male

New Appointment/Director, Full-time Audit
and Supervisory Committee Member

Toshio Baba

Male

Independent Outside Director, Audit andSupervisory Committee Member, Nomination Attorney
and Remuneration Committee Member

Takashi Kitada

Male

Independent Outside Director, Audit andSupervisory Committee Member, Nomination Certified Public Accountant
and Remuneration Committee Member

Nae Iijima

FemaleNew Appointment/Independent Outside Director,
Audit and Supervisory Committee Member,
Attorney
Nomination and Remuneration Committee Member

Yoichi Watanabe

Male

New Appointment/Independent Outside Director,
Audit and Supervisory Committee Member,
Certified Public Tax Accountant
Nomination and Remuneration Committee Member

Male

New Appointment/Outside
Director, Audit and Supervisory
Committee Member

Yasuo Yoshino

Finance andAccounting

disability, and nationality) and of internal attributes (including but not limited to lifestyle, work history, and sense of values),
and utilizing strong point of each individual○○

When we talk about diversity and inclusion, gender, age, disability, and nationality immediately come to our mind; however internal○○

the aged.
○○○○

General Manager in charge ofCorporate Planning Office, Sumitomo
Chemical Company, Limited

attributes should be considered too. It is important to respect and recognize different lifestyles, such as raising children, caring for

○

○

○
○
○

* Representative Directors are listed in terms of overall corporate management, and each Director is listed in terms of up to two areas of particular expectation

202030 target
Japanese government’s policy target for gender equality: by 2020, 30% of leadership positions shall be held by women.

The 202030 target was set by the Koizumi government in 2003. In 2013, the Abe government declared women’s advancement in
the workforce as a highlight of its “Three Arrows” growth strategy.
In the past, single-income households, in which full-time housewives looked after the home, were considered the social standard;
the Equal Employment Opportunity Act (enforced in 1986) had a strong tone of correcting and redressing sex discrimination.
In 2003, this “202030 target” emerged. In 2013, “Women’s advancement in the workface” was declared as a highlight of growthstrategy of Japanese government. To eliminate long waiting lists, the government suddenly increased childcare facilities around

Evaluation of the Effectiveness of the Board of Directors

Japan. I was amazed at the power of government when it decided to address this issue seriously.
A major reason behind this dramatic change in policy was that, as Japan’s birthrate declined and its population aged, its workforce

The Company’s Board of Directors performs an annual survey asking all the Directors about the effectiveness of the Board, using a third-party survey service

declined, and women came to be seen as an important supply of workforce. Thus, this change is not for women but for society

provider. The Board analyses the results, identifies issues, and discusses them at Board of Directors meetings to ensure the effectiveness of its functions.

which needs workforce. However, from women’s perspectives it was an extremely hopeful sign that discrimination in the allocation

The first survey was conducted in September 2022. The Board will study the results and take proper measures, including efforts to remedy identified problems.

of work and promotions would start to fade. It would become easier to balance work and caring for children.
Diversity and inclusion refer to the employment and inclusion of diverse people. As a corporate strategy, it will bring flexibility
to corporate management and lead to medium- to long-term growth. For Individuals, each is respected and acknowledged as

History of the Governance System

individual; each may utilize his/her strong point to his/her work.
I recognize that, as a female attorney admitted in Japan and New York, my election as an Outside Director is a part of these trends
Implemented in: Initiatives

February 2004

Formulated Okura Industrial Basic Management Conception 2004

January

2019

April

2006

Established Internal Audit Office

Established ESG Promotion Council
Established CSR Committee

April

2008

Established Compliance Committee
Introduced an internal reporting system

March

2020

Introduced a restricted stock remuneration plan

As the first female Outside Director, I will endeavor to promote diversity and inclusion and to enhance employees’ work-life

April

2021

Established Sustainability Promotion Department(changed the name of ESG Promotion Council to Sustainability
Promotion Department and enhanced the system for promoting
sustainability)
Changed the name of CSR Committee to Sustainability Committee
and enhanced the system for promoting sustainability
Established Internal Control/Audit Office(Changed the name of Internal Audit Office to Internal Control/Audit
Office and enhanced oversight functions)balance.

March

2022

Increased the number of Outside Directors from 4 to 5

April

2022

Established a voluntary Nomination and Remuneration Committee

April

2009

Introduced an operating officer system

March

2015

Elected an Outside Director

March

2016

Transitioned to a company with an audit and supervisory committee

August2016

Formulated Okura Industrial Group Policy on Corporate Governance

December 201663

of women’s advancement. Some people say that the sharp rise in female executives is due to a lowering of standards and that

Implemented in: Initiatives

Opened Okura Industrial Group Corporate Ethics Hotline

SUSTAINABILITY REPORT 2022

women are elected due to their gender. However, when the door opens, we should step in, see different perspective and obtain
authority to make change.

SUSTAINABILITY REPORT 2022

64

Financial data

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

Unit

Net sales(million yen)

85,90990,65287,53985,996

86,07990,812

86,26085,36480,95888,420Ordinary profit(million yen)

2,389

2,010

1,963

2,326

4,655

5,891

4,366

3,894

4,509

5,531

(%)

2.9

2.2

2.3

2.7

5.4

6.3

4.9

4.3

5.2

5.8

Profit attributable to owners of parent(million yen)

1,577

1,605

1,759

1,191

2,507

2,720

2,442

2,899

2,865

3,417

Net assets(million yen)

34,00836,45937,957

38,73940,41444,03943,83446,44149,09452,524

Capital expenditures(million yen)

3,677

5,528

4,560

2,447

3,066

5,561

5,846

5,051

3,698

4,673

Research and development expenses(million yen)

1,029

1,149

1,126

1,050

948

944

1,029

1,060

949

1,047

Equity ratio

(%)

39.9

40.2

42.7

44.1

49.0

50.3

51.8

55.6

59.4

61.1

Return on equity (ROE)

(%)

4.7

4.6

4.7

3.1

6.3

6.4

5.6

6.4

6.0

6.7

(million yen)

23,862

22,42722,211

19,707

13,458

10,157

9,043

8,321

5,631

3,312

Net assets(yen)

564.76610.92636.25649.46677.75738.793,677.39

3,896.47

4,115.91

4,401.20

Profit

(yen)

25.85

26.80

29.48

19.98

42.05

45.64

204.92243.35240.41286.49Dividends

(yen)

6.00

7.50

7.50

7.50

10.00

13.00

55.00

55.00

60.00

70.00

Operating profit margin

Net debt

F i n a n c i a l S u m m a r y/ N o n - F i n a n c i a l S u m m a r y

Financial Summary/Non-Financial Summary

Per share(Reverse stock split was implemented in July 2018)

Non-financial data

Unit

CO2 emissions (Scope 1 and 2) *1, 3(t-CO 2)-

154,207

146,734

158,593

156,246

132,409126,750

118,340

94,814

123,023

CO2 emissions (logistics) *2(t-CO 2)

-

5,831

6,295

6,090

5,798

5,634

5,369

5,049

5,033

5,392

Total energy usage *3

(kl)

-

-

-

61,71463,081

62,99762,537

61,83657,99358,649Waste emissions

(t)

5,799

5,407

5,387

7,475

7,249

7,749

7,220

8,245

6,667

7,238

(m3)

-

-

-

-

-

-

-

445,336

347,442360,196(persons)

1,131

1,138

1,088

1,064

1,095

1,142

1,164

1,071

1,057

1,043

(%)

12.3

12.5

12.8

13.2

13.4

13.8

13.9

14.8

15.3

16.0

(persons)

2

2

2

2

2

2

2

2

3

3

Number of average service years (non-consolidated)(years)

15.5

15.7

16.2

16.5

16.7

16.5

16.4

15.7

16.1

16.2

Number of lost time accidents(cases)

4

4

5

11

5

7

6

4

1

5

Water usage (municipal water) *3
Number of employees (non-consolidated)
Percentage of female employees (non-consolidated)
Number of Independent Outside Directors*1 Scope 2 electricity calculated using actual emissions factors*2 CO2 emissions from logistics are calculated using data from specified consignors’ regular reports submitted under the Act on Rationalizing Energy Use*3 Data from April to March of each fiscal year (The data for FY2015 to FY2017 do not include those for Okura Hotel Takamatsu)

65

SUSTAINABILITY REPORT 2022

SUSTAINABILITY REPORT 2022

66

Status of shares

Ten major shareholders(as of December 31, 2021)

Total number of shares authorized

28,021,600

Total number of shares issued

12,414,870

Number of shareholders

11,274

Directors (as of March 24, 2022)

Company Profile
Company name

Okura Industrial Co.,Ltd.

Head office1515 Nakazu-cho, Marugame, Kagawa 763-8508 Japan Phone: +81-877-56-1111

Representatives

Chairperson, Representative Director Kazunori Takahama

Chairperson, Representative Director

Kazunori Takahama

Operating Officer, President, Representative Director

Susumu Kanda

Operating Officer, Executive Vice President, Director

Yoshitomo Tanaka

Operating Officer, Director

Hideki Uehara

Operating Officer, Director

Tomoo Ueta

Operating Officer, Director

Eiji Fukuda

Director (Audit and Supervisory Committee Member) * Takashi Kitada

Operating Officer, President, Representative Director Susumu Kanda

Director (Full-time Audit and Supervisory Committee Member)

Established

July 11, 1947

Capital8,619,616,071 yen (as of December 31, 2021)

Number of employees

1,966 (consolidated; as of December 31, 2021)

Businesses

Manufacture and sale of all types of polyethylene products and polypropylene products

Seiji Nagao

Director (Audit and Supervisory Committee Member) * Toshio Baba

(as of December 31, 2021)

Number ofshares held

Shareholding
ratio

Sumitomo Chemical Company, Limited

963k

8.08 ％The Master Trust Bank of Japan, Ltd. (trust account)

928k

7.78 ％The Chugoku Bank, Ltd.

582k

4.88 ％

Okura Kyoeikai Business Association

554k

4.65 ％The Hyakujushi Bank, Ltd.

384k

3.22 ％

Nippon Life Insurance Company

375k

3.14 ％

Sumitomo Forestry Co., Ltd.

315k

2.65 ％

Mitsui Sumitomo Insurance Company, Limited

271k

2.28 ％

Custody Bank of Japan, Ltd. (trust account)

256k

2.15 ％

Yakult Honsha Co., Ltd.

251k

2.11 ％

Shareholder’s name(Note) The Company holds 485,864 shares of treasury stock but is excluded from the list of major
shareholders above.
The shareholding ratios are calculated excluding those shares of treasury stock.

Director (Audit and Supervisory Committee Member) * Nae Iijima
Director (Audit and Supervisory Committee Member) * Yoichi Watanabe
Director (Audit and Supervisory Committee Member) * Yasuo Yoshino

Manufacture and sale of optical functional films, etc.

* Outside Directors

Manufacture and sale of particle board, engineered wood boards, plywood, and other engineered wood products

Distribution of shareholders by category

Distribution of shareholders by region(as of December 31, 2021）(as of December 31, 2021)

Treasury share

Business Sites
Corporate Center

1515 Nakazu-cho, Marugame, Kagawa 763-8508 Japan

Research & Development Center
Plastic Film DivisionCorporate Information

Stock Information

Corporate
Information

1515 Nakazu-cho, Marugame, Kagawa 763-8508 Japan

Plastic Film Division

Phone: +81-877-56-1111

3.9％
485k

Phone: +81-877-56–1120

Foreigninvestors

1515 Nakazu-cho, Marugame, Kagawa 763-8508 Japan

Phone: +81-877-56-1150

Product Development Department 1515 Nakazu-cho, Marugame, Kagawa 763-8508 Japan

Phone: +81-877-56-1124

Tokyo Branch Office

3-13-2 Higashiikebukuro, Toshima-ku, Tokyo 170-0013 Japan

Phone: +81-3-6912-5041

Nagoya Branch Office1-36 Namiuchi-cho, Kita-ku, Nagoya, Aichi 462-0041 Japan

Phone: +81-52-913-5191

Osaka Branch Office

1-3-10 Nishihonmachi, Nishi-ku, Osaka 550-0005 Japan

Phone: +81-6-6532-3571

Hiroshima Sales Office

6-8-45 Shoko Center, Nishi-ku, Hiroshima 733-0833 Japan

Phone: +81-82-277-7611

Shikoku Sales Office1515 Nakazu-cho, Marugame, Kagawa 763-8508 Japan

Phone: +81-877-56-1155

Marugame No. 4 Plant

52 Horai-cho, Marugame, Kagawa 763-0062 Japan

Phone: +81-877-24-1717

Marugame No. 5 Plant

23 Horai-cho, Marugame, Kagawa 763-0062 Japan

Phone: +81-877-25-5800

Chunan Plant

773-6 Sabumi, Manno-cho, Nakatado-gun, Kagawa 769-0301 Japan

Phone: +81-877-75–6350

Chubu

9.4％
1,160kTotal
Other
Japanesecompanies

Financial
institutions, etc.

3.2％
388k

34.0％
4,223kChugoku

0.2％
22k
Tohoku
0.3％
30k
Kanto

6.0％
747k

12,414k

21.5％
2,666k

Hokkaido

Overseas
9.3％
1,157k

45.4％
5,637kKyushu andOkinawa
Individual investors
and others

Kinki

1.0％
127k

4.6％
573k

31.2％
3,878kShikoku
30.0％
3,729k(including 485k shares of treasury stock)

New Materials Division

Housing Materials Division

New Materials Division

1515 Nakazu-cho, Marugame, Kagawa 763-8508 Japan

Phone: +81-877-56-1130

B Building(in Marugame No. 4 Plant)

52 Horai-cho, Marugame, Kagawa 763-0062 Japan

Phone: +81-877-24-2156

G Building and North Building(in Chunan Plant)773-6 Sabumi, Manno-cho, Nakatado-gun, Kagawa 769-0301 Japan

Phone: +81-877-58-8670

Housing Materials Division

1515 Nakazu-cho, Marugame, Kagawa 763-8508 Japan

Phone: +81-877-56-1258

Sales Department

1515 Nakazu-cho, Marugame, Kagawa 763-8508 Japan

Phone: +81-877-56-1255

Takuma Plant

2102-4 Takuma, Mitoyo, Kagawa 769-1101 Japan

Phone: +81-875-83-2511

Group Companies
KS Okura Co., Ltd.

Kyushu Okura Co., Ltd.

Okura Precut System Co., Ltd.

Okura Information System Co., Ltd.

Okura Pack Kagawa Co., Ltd.

Kanto Co., Ltd.

Okura Sangyo Co., Ltd.

67

Saitama Okura Co., Ltd.

O.L.S. Co., Ltd.

SUSTAINABILITY REPORT 2022

Okura Products Co., Ltd.

Okura House Co., Ltd.

Wuxi Okura Packing Material Co., Ltd.

Otomo Kasei Co., Ltd.

Taiho Co., Ltd.

Basic Information for Shareholders
Fiscal year-end

December 31

Annual General Meeting of
Shareholders

Held in March of every year

Record date

Record date for voting rights at Annual General Meetings of Shareholders: December 31 (or the date that the Company may
announce in advance by a public notice as necessary)
Record date for distribution of surplus : December 31 for year-end dividends June 30 for interim dividends if paid

Shareholder register agent

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

Handling office ofshareholder register agent

4-5-33, Kitahama, Chuo-ku, Osaka, Japan
Stock Transfer Agency Business Planning Dept., Sumitomo Mitsui Trust Bank, Limited

Mailing address

2-8-4, Izumi, Suginami-ku, Tokyo 168-0063 Japan
Stock Transfer Agency Business Planning Dept., Sumitomo Mitsui Trust Bank, Limited

For inquiries

Phone: 0120-782-031 (toll-free) Opening hours: 9:00 to 17:00 (excluding Saturday, Sunday, and national holidays)
Brokerage services are available at the headquarters and branches of Sumitomo Mitsui Trust Bank, Limited.

Method of public notice

The Company will make public notices electronically on its corporate website (https://www.okr-ind.co.jp).
If an accident or other unavoidable event occurs that prevents the Company from making a public notice electronically, theCompany will make a notice on the newspaper The Nikkei.

Stock exchange listing

Prime Market, Tokyo Stock Exchange

Okura Hotel Co., Ltd.

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Unicharm Packaging Material (Tianjin) Co

CHUSAN-Cable Vision Corporation

SUSTAINABILITY REPORT 2022

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