Since our founding in 1962, JSP has been active in a wide range of ﬁelds around the world as a specialized manufacturer of foamed products.
JSP contributes to the prosperous lives of people around the world and the industrial advancements by developing productsthat maximize the possibilities of foaming technologies in various ﬁelds.

Corporate Philosophy

Creatively and Actively
Contribute to Society

Corporate Philosophy

As a manufacturer of foamed products, JSP contributes to society by
developing original products using our innovative original technologies.

Long-term Vision “VISION 2027”

Foamed plastic is a plastic resin that has been stabilised by creating
air bubbles and can create many characteristics such as lightweight,

Aiming to be “A Global Company
for Global Society”

cushioning and insulation.
We contribute to sustainability by making lighter, stronger, and moreenvironmentally friendly products.

Management Policy

Management Policy

Medium-term Business Plan (FY2021‒2023)

Change for Growth

As a global supplier, we will inspire our customers and consumers and deliver
satisfaction to shareholders and the community. As employers, we aim to be
a company that is needed by society by working with a sense of excitement.

JSP Corporate Report 2023

01

Contents
Our Value Creation Process
History

03

At a Glance04

Our Value Creation Process

05

Based on our corporate philosophy of Creatively and Actively

Message from the President

06

Contributing to Society , the JSP Group develops business with the

About this publication

aim of realizing our long-term vision. We have clearly deﬁned sustain-

Value Creation Strategy

ability management in the basic concepts of the 2021‒2023 medi-Medium-term Business Plan (FY2021‒2023)

10

um-term business plan, Change for Growth currently underway.

Financial and Non-ﬁnancial Highlights

11This report contains information related to sustainability manage-

Overview by Segment
・Extrusion Business

13

・Bead Business

15

RC Activities

ment and materiality, which is also available on our website.
（https://www.co-jsp.co.jp/english/sustainability/）

17

Reporting period

Sustainability
Sustainability Management

19

Materiality

20

Response to Risks and Opportunities

21

Environmental Activities

22

Social Activities

27

Corporate Governance

31

List of Corporate Oﬃcers

35

Data Section

April 1, 2022, to March 31, 2023 (Some sections refer to activities
occurring on or after April 1, 2023)

Forward-looking statements
This publication contains forward-looking statements regarding
management plans, strategies, and performance. These statements
are based on Company determinations in light of information available
as of March 31, 2023. Accordingly, information contained herein is

Stock and Company Information

37

Global Network

38

JSP Corporate Report 2023

subject to risks and uncertainties, and actual results may diﬀermaterially from those discussed in forward-looking statements.

02

History
Since our establishment in 1962 as Japan
Styrene Paper, JSP has developed ourbusiness globally by useing ourworld-leading development andtechnological capabilities. Furthermore,
we are utilizing the characteristics offoamed plastics to contribute to the
reduction of environmental burden andCO2 emissions.
The world is a place with full of diverse
values which continue to change
depending on the place and time.
The JSP Group will continue to embracechallenges to meet the changing
demands of our customers and society,and to share our values.

(Millions ofyen)

Changes in Net Sales and Operating Proﬁt

140,000(Millions ofOperating proﬁt (right axis) yen)
14,000120,000

12,000100,000

10,00080,0008,000

60,0006,000

40,0004,000

20,000

2,000

0

March
2003

Founding Period (1962 to 1984)

We started production ofpolystyrene paper andestablished our company as amanufacturer specializing in the
foaming business. Afterwards, wedeveloped the world s ﬁrst
foamed polyethylene sheet(MIRAMAT) and foamed
polypropylene beads(ARPRO/P-BLOCK).
We launched MIRABOARD and
MIRAFOAM on the market,
thereby creating the current
lineup of our main products.

Net sales (left axis)

March
2005

March
2007

March
2009

March
2011

March
2013

Growth Period (1985 to 2003)

1962
Est. Japan Styrene Paper.
Osaka Sales Oﬃce opened.
Operation of Hiratsuka Plant started.

1988
Received the Science and Technology
Director-General's Award for
ARPRO/P-BLOCK.

1970
Nagoya Sales Oﬃce opened.

1989
Changed the company name to JSP
Corporation.

1971
Operation of Kanuma No. 1 Plant
started.
Fukuoka Sales Oﬃce opened.
1972
Sales Oﬃces in Sapporo, Sendai andHiroshima opened.
1973
Est. Shingu Styrene Paper Co., Ltd.
1977
Est. Kyushu Styrene Paper Co., Ltd.
1979
Est. Hokkaido Styrene Paper Co., Ltd.
1980
Operation of Kanuma No. 2 Plant
started.

March
2015

We made our ﬁrst overseas
expansion in the United Stateswith foamed beads(ARPRO/P-BLOCK). With that asa foothold, we expanded into
European and Asian countries.
We were listed on the Second
Section of the Tokyo Stock
Exchange and entered into a
growth period by gradually
expanding the size of ourbusiness.
In 2003, we merged with
Mitsubishi Chemical Foam
Plastic Co., Ltd. and added an
expandable polystyrene (EPS)
business to solidify our technicaland management base as a
specialist in foamed products.

JSP Corporate Report 2023

1990
Listed on the Second Section of theTokyo Stock Exchange.
Opened Kanuma Research Center.
1991
Operation of Yokkaichi Plant started.
1994
Acquired Kanuma No.3 Plant.
1999
Operation of Kanuma No. 4 Plant
started.
2001
Introduced Inner Company System.
2003
JSP Corporation and Mitsubishi
Chemical Foam Plastic Co., Ltd. merged
to form a new JSP

March
2017

March
2019

March
2021

0

March
2023

Expansion Period (from 2004)
2005
Listed on the First Section of the Tokyo
Stock Exchange.
2008
Operation of Recycling Center atKanuma started.
We were listed on the First Sectionof the Tokyo Stock Exchange andour net sales exceeded ¥100
billion. The adoption of
ARPRO/P-BLOCK as automotive
parts has expanded signiﬁcantly
and we have enhanced ourfacilities around the world. We
also expanded into Brazil andstrengthened our network to
supply a wide range of products
throughout the world.
We also increased ourcompetitiveness by actively
promoting the renewal of
production facilities in Japan. In
response to the global trend ofprotecting the global environment,
we are investing in theestablishment of a recycling centerand the development of productsthat can reduce environmental
impact.

03 Our Value Creation Process

2012
Celebrated the 50th anniversary of our
founding.
2014
Operation of Kitakyushu Plant started.
2015
Capital and business alliance with
Mitsubishi Gas Chemical Company to bea consolidated subsidiary.
2019
Operation of new factory at Kansai Plant
started.
2022
Listed on the Prime Market of theTokyo Stock Exchange.

At a Glance JSP's Strength We aim to be A Global Company for Global Society .
JSP's Strength

Value Provided by JSP in Each Field

1. Wide Range of Markets

3. Global Operational Presence

JSP oﬀers a wide range of production for
application such as food packaging, precisionequipment packaging, housing, construction, civilengineering, automobiles and logistics. By
developing technologies that meet the needs ofcustomers in each ﬁeld and having a wide range ofmarkets, we are enhancing the possibilities of foam
products.

JSP has been operating globally since the 1980s,
starting in the U.S. Today, JSP has manufacturing
facilities in Japan, the United States, Mexico, Brazil,
France, Czech Republic, Singapore, Thailand, China,
Korea, and Taiwan. We have also established an
Innovation Centre in Germany, as well as
development bases in Japan, the U.S. and Asia. By
understanding the needs of local customers andcollaborating and sharing information among thesesites we are working to speed up development
and anticipate market needs.

Automotive ﬁeld

Lightweight and highly shock-absorbing polypropylene foam
products are used in automobile
parts to provide a variety offunctions such as improved collisionsafety performance, reduced
vehicle weight, and improved fueleﬃciency.

Food packaging ﬁeld
Foamed polystyrene sheets arewidely used in food packaging topreserve the freshness of ﬁsh
and meat. These products
provide both functionality andconvenience to meet the needs
for food safety and security.

JSP International s.r.o. (Czech Republic)

2. Development capabilities
specialized in foaming technology

4. The Added Value ofTechnical Support

As a specialized manufacturer of foam products, we
aim to be a company that can contribute to theaﬄuent daily lives of people around the world throughcutting-edge foam technology. Many of our products
were developed by JSP for the ﬁrst time in the world.
Our mainstay products (foamed polypropylene) havea global market exceeding 50%. By further advancing
our foaming technology, JSP will continue to provide
resource-saving and highly functional products,
creating not only economic value but also social value.

Foam products sold by JSP become products
through the molding process by the customers. JSP
provides technical support to molding
manufacturers and depending on the product,
technical cooperation and proactive proposals
such as structural analysis. JSP provides added
value to customers through technical support, suchas improved productivity and energy savings.

Foamed polyethylene
sheets possess excellent
shock-absorbing,moisture-proof, andwaterproof properties.
This makes the sheets
ideal for items that requirelong-term transportationand storage, and the
sheets used as packaging
materials in logistics.

Industrial ﬁeld

Building and home ﬁeld
Foamed polystyrene products
are used in various buildingssuch as detached houses,
condominiums, and oﬃce
buildings, helping to create acomfortable environment.

Civil engineering ﬁeld

Net sales and operating proﬁt (FY2022)
Net sales composition ratio by segment

Operating proﬁt composition ratio by segment
Extrusion business

Extrusion business
32.2%
Consolidated
net sales¥131,714
million

ARPRO/P-BLOCK non-crosslinked polypropylene foam

JSP Corporate Report 2023

Foamed polystyrene islightweight and has
excellent water resistanceand workability. This
reduces the burden ofwork and enables eﬃcientconstruction. JSP
contributes to theconstruction of safer social
infrastructure, such as road
construction andstabilization of soft ground.

Bead business
62.8%
Other
5.0%

04 Our Value Creation Process

44.5%
Consolidated
operating proﬁt¥2,956
millionBead business

51.3%
Other
4.2%

Our Value Creation Process

VISION 2027

JSP s mission is to use its business to contribute to society by providing value in the form of preserving resources and energy, and increasing convenience in social activities. Management aims to fulﬁllthat mission by becoming a true global company providing value that contributes to society.

Providing excitement andsatisfaction to all stakeholders

Aiming to be A Global Company
for Global Society

Creation of corporate value x Creation of social value
Sustained Growth of JSP

Sources of ValueBusiness Model

OutputBusiness domains

Human capital

Extrusion
Business

As a specialized manufacturerof foamed products, we aim to
be a company that contributes
to the enrichment of the daily
lives of people around theworld through cutting-edge
foaming technology.

BeadBusiness

Outcomes

Consolidated results
●
●
●

P.11

Enhanced food safety

Net sales
Operating proﬁt
Proﬁt attributable toowners of parent

Shareholder returns

Social capital

Sustainability Management●

Stable dividend policy

Medium-term Business Plan (FY2021‒2023)「Change for Growth」

Labor safety

Strengthen management base
P.10

Financial capital

Materiality

Advanced technologicalinnovation
Reduction ofenvironmental burden
Contribution toindustrial vitality

Contribution toachievement of SDGs

P.18

●

Safety activities●

Security and disasterprevention activities

Recognition of long-term social issues

Contribution to comfortableliving environments

Priority goals formateriality

P.20

Environmental

Intellectual capital

Basic Sustainability Policy

Corporate Governanceprotection

P.31-34

P.19●

Manufacturing capital

Corporate Creatively and Actively Management
Philosophy: Contribute to Society
policyP.1

JSP Corporate Report 2023

05 Our Value Creation Process●●

P.22-26

Initiatives for global
environmental issues
Seeking carbon neutral
Promotion of waste
plastic recycling

P.20

Message from the President

We aim to become A Global
Company for Global Society .

Tomohiko Okubo

President & Representative Director

Long-term Vision, VISION 2027
A Global Company for Global Society

Toward realization of our long-term vision
Our corporate philosophy is Creatively and Actively Contribute toSociety, and our mission is to create value that is beneﬁcial tosociety. At JSP, diverse human resources are working to identify
value that we can provide to our customers and society through our
original ideas and technologies. Our management fulﬁlls a role inﬁnding that balance and guiding our company toward our goals.
As stated in VISION 2027 , our vision is to be A Global
Company for Global Society . While spreading the value we create
around the world, JSP is shifting to a company that delivers social
value that solves the problems of customers and society in order tobecome a company that is needed by society. In addition, as
expressed by our management policy Deliver with WOW! , we aim
to be a company where all employees work with a sense of
excitement, and which delivers excitement and satisfaction to ourstakeholders.
We will share our vision and thoughts with all employees, pay
attention to the needs of the world, and take steps to solve

problems. Foamed plastic is the core of our value creation, and is
the seed that drives the economy and enriches society. JSP is
steadily taking steps to expand the possibilities of foamed plastic,
and to instill and develop the technology in various ﬁelds. Our
progress forward will continue even in the current challenging
business environment.

Key Elements
Strengthen and expand
existing businessBusinessdomains
to bepromotedManagement policy

Thermal insulationmaterials forbuildings and houses

FPD cushioning
materials
Quantitative
Vision06 Our Value Creation Process

Automotive
parts

Expand thebusiness domain
Strengthen the
management base

JSP Corporate Report 2023

Four Growth Engines

New businessdomains

VISION 2027
Net Sales¥180.0 billion

Operating proﬁt¥18.0 billion

Operating proﬁt
ratio

10%

Message from the President
Extrusion Business

Fiscal 2022 results and outlook
The global economic recovery slowed due to shortages ofsemiconductor as a result of the resurgence of the COVID-19 pandemic,
soaring resource and energy prices as a result of the prolonged situationin Ukraine, and sharp ﬂuctuations in exchange rates. In the Japanese
economy, the process of normalization of the previously restrictedeconomic and social activities has begun. Although consumer spending,capital expenditures and other parts of the economy are recovering, theoutlook for the economy is uncertain due to soaring resource andenergy prices, inﬂation, and the impact of restrictions on the supply side.
The foamed plastics industry in Japan faced serious challenges as therecovery in demand came to a standstill.
For the JSP Group, net sales were higher than one year earlier mainly
because of revisions of prices of JSP products. Operating proﬁt
decreased from one year earlier due to delays in product price revisions
to reﬂect the continuing increase in the cost of raw materials, and toother reasons such as rising utilities costs and personnel expenses. Net
sales in the current ﬁscal year were ¥131,714 million, up 15.4% from theprevious ﬁscal year. Operating proﬁt decreased 35.6% to ¥2,956 million,
ordinary proﬁt decreased 30.9% to ¥3,363 million and proﬁt attributableto owners of parent decreased 12.5% to ¥2,531 million.
Recovery is expected to continue as the impact of the pandemic ends,
although there are risks associated with the Ukraine crisis. However,there is still strong upward pressure on prices, and the labor markets are
expected to remain tight in many countries and regions, including Japan.
Under these circumstances, the JSP Group aims to increase earnings by
cutting energy/logistics costs and revising prices of products. At thesame time, we are working to address challenges in sustainability
management.

In ﬁscal 2022, sales volume in this segment was about the sameas one year earlier but monetary sales were higher because of
product price revisions. Earnings decreased due to the lag
between the rising prices of raw materials and product pricerevisions to reﬂect these higher prices and to the higher cost ofutilities.
Sales of materials for household products, mainly STYRENPAPER,
a foamed polystyrene sheet used in food packaging, increased.
This was mainly the result of higher sales volume in the food tray
category and for MIRABOARD, a material used for advertising
displays. Due to a decline in the production of ﬂat panel displays,
sales were lower than the previous ﬁscal year for industrial products,
including MIRAMAT, a foamed polyethylene sheet used forindustrial packaging materials and ﬂat panel displays. Sales
volume of MIRAFOAM, an extruded board made of foamed polystyrene, and other construction and civil engineering materials were at
the same level as the previous ﬁscal year. However, sales increased
due to product price revisions.
As a result, extrusion business sales increased 8.6% to ¥42,443
million and operating proﬁt decreased 36.5% to ¥1,767 million. In
ﬁscal 2023, we expect sales to increase due to increased sales
volume. However, we expect earnings to be at the same level due
to an increase in ﬁxed expenses.

increased due to strong demand for materials used in theautomotive sector.
In Europe, there was strong demand for materials used inﬁelds such as HVAC (Heating Ventilation and Air Conditioning),
despite the lower volume in the automotive sector caused by
the shortage of parts. In China, sales volume decreased becauseof the impact of the rapid upturn of the pandemic s severity on
economic activity, although the sales volume in the automotive
sector was ﬁrm. In Taiwan, the sales volume decreased becauseof lower demand involving ﬂat panel displays. The sales volume
of expandable polystyrene bead products, chieﬂy STYRODIA,
decreased because of lower demand for these products mainlyin the ﬁsheries sector. Monetary sales increased mainly due to
product price revisions.
As a result, sales in bead business increased 20.8% to¥82,761 million and operating proﬁt decreased 22.2% to ¥2,038
million. In ﬁscal 2023, we expect an increase in sales due to therecovery of sales volume of ARPRO/P-BLOCK and the revision of
product prices to oﬀset higher prices of raw material. Earnings
are also expected to increase due to higher sales volume andimproved proﬁtability.

Other
Net sales (Millions of yen)
131,714114,125
102,668

Operating proﬁt(Millions of yen)
5,185

Proﬁt attributable toowners of parent(Millions of yen)
3,017

4,589

2,893
2,531

2,956

2020 2021FY2022

2020 2021FY2022

2020 2021FY2022

Bead Business
Sales in this segment increased due to increased sales volumeof high-performance products and product price revisions.
Proﬁt decreased due to the same reasons as the extrusionbusiness.
The sales volume and monetary sales of high-performance
products, mainly ARPRO/P-BLOCK, an expanded polypropylene
product manufactured and sold worldwide, increased slowly
due to the negative eﬀects of the pandemic and Ukraine crisis.
With regard to sales volume by region, those in Japan were at
the same level as in the previous year, due to a delayed
recovery in the automotive sector. In North America, in
addition to recovery from the previous year, the sales volume
increased due to the strong demand for materials used inreturnable containers. In South America, the sales volume

JSP Corporate Report 2023

07 Our Value Creation Process

Sales increased in Japan as sales volume in the automotive partstransportation and other market sectors recovered. In China, theimpact of demand for packaging materials for many types ofcomponents resulted in lower sales. As a result, sales in the othersegment decreased 0.4% to ¥6,508 million and operating proﬁt
decreased 21.5% to ¥166 million. In ﬁscal 2023, we expect thatsales both in Japan and in China will be about the same as in theprevious ﬁscal year.

Message from the President
Concentrating management resources on

Two strategic products for expanding

four growth engines

applications and expanding areas

In order to achieve our long-term vision, JSP launched the
medium-term business plan Change for Growth , covering thethree years from ﬁscal 2021 to ﬁscal 2023. Fiscal 2023 is the lastyear of the plan. Under the basic concepts of expanding provided
value from economic value to social value to solve customers andsocial issues and strengthening our management base, Change
for Growth seeks to achieve sustainable growth through a balanceof aggressive and defensive policies, including increasing theeﬃciency of management through selection and concentration.
Quantitative targets to be achieved by ﬁscal 2023 include net
sales of ¥120,000 million, operating proﬁt of ¥7,700 million, and an
operating margin of 6.4%. At the same time, management resources
will focus on four growth engines: (1) Automotive parts,(2) Thermal insulation materials for buildings and houses, (3) FPD
cushioning materials, and (4) New business domains.

Fiscal 2022 results

1. The sales volume of automotive parts grew 6.1% compared with that ofﬁscal 2019. Although automotive production fell due to shortages insemiconductors and other parts, JSP steadily increased the new application of
our automotive parts and sales volume increased. While the businessenvironment is expected to remain uncertain, we aim to expand business byproviding next-generation products compatible with electriﬁcation, weight
reduction, energy conservation, and recycling requirements.

Our core products are foamed plastics made using general-purpose
plastics. These products have excellent functionality and high qualitythat satisﬁes various customer needs, and have great potential. The
key to our strategy is how to spread JSP products, including overseas
expansion, so that more customers will use our products. At present,
the strategic products that JSP seeks to grow are the foamed
polypropylene ARPRO/P-BLOCK and the functional highly-expanded
polyethylene sheet MIRAMAT ACE.
ARPRO/P-BLOCK for automobile parts is a product that meets theneeds of automobile manufacturers for weight reduction and recycling.
ARPRO/P-BLOCK is widely used in countries around the world in
various parts such as automobile rear seat core materials andautomobile bumper core materials. Furthermore, since
ARPRO/P-BLOCK is a material that has excellent functionality, it also
meets the standards and needs of each region, such as sports
equipment, furniture, and heat-insulating containers for foodstuﬀs. For
ARPRO/P-BLOCK, we will accelerate business growth by expanding theuse of ARPRO/P-BLOCK globally and expanding the area while
proposing applications in each region.

2. Regarding thermal insulation materials for buildings and houses, the total
sales volumes declined 6.5% compared with that of ﬁscal 2019.
Similar to automotive parts, the segment was impacted by shortages insemiconductors, which caused delays in equipment procurement andconstruction work. However, demand for energy-saving homes remains strong,
and we continue to see higher sales volume of pre-cut thermal insulationmaterials, where is our strong point. We expect business to grow, as demandfor high-performance thermal insulation rises ahead of mandatory compliancewith energy eﬃciency standards for all buildings and homes in ﬁscal 2025.
3. Sales volume of FPD cushioning materials increased 16% compared withthat of ﬁscal 2019. Targets were achieved in the ﬁrst year of the plan due tofactors such as greater demand for personal computers, displays, and otherproducts. Further growth is expected on higher demand for organic
electro-luminescence panels and personal computers, as well as overseas
business expansion.
4. In new business domains, in comparison to target sales of ¥3 billion inﬁscal 2023, actual net sales in ﬁscal 2022 were ¥0.6 billion. We are currently
pursuing new businesses and M&A projects, while commercializing elementsof our existing businesses that show potential. For M&A, in January 2022, wemade a 35% investment in the Italian company GHEPI SRL, which possesses
injection molding processing technologies. In combining JSP foaming
technologies with new injection technologies, we aim to promote thedevelopment of high-value-added products, thereby expanding our business.

Progress of medium-term business plan and four growth engines
Quantitative targets(Millions of yen)

Net Sales

120,000

Operating proﬁt

7,700

Operating margin (%)

6.4%

2023(Forecast)(Millions of yen)

Net Sales

135,000

Operating proﬁt

5,600

Operating margin (%)

4.1%

ARPRO/P-BLOCK (automotive parts)

Progress of Medium-term
Business Plan and four
growth engines

Automotive
parts*1

Thermal insulationmaterials forbuildings and houses*2

FPD cushioning
materials

New businessdomains

2023 (Plan)

+23%

+12%

+20%

Net Sales¥3.0 billion

2022 (Results)

+6.1%

△6.5%

+16%

Net Sales¥0.6 billion

2023 (Forecast)

+11%

+1%

+20%

Net Sales¥0.6 billion*1 Sales volume for EPP business*2 Sales volume for construction and civil engineering business
Figures in the columns of automotive parts, thermal insulation materials for buildings and houses, and FPD
cushioning materials are changes in volumes compared with that of ﬁscal 2019.

JSP Corporate Report 2023

08 Our Value Creation Process

ARPRO/P-BLOCK (ﬂat sheet)

Our strategic product MIRAMAT ACE is ideal for cushioning materials in theelectronics industry due to capability for long-term suppression of theadhesion of dust and dirt caused by static electricity. Applications related
to FPD cushioning materials are extremely wide, ranging from computers,
smartphones, and televisions toautomobiles and medical devices.
Further expansion is expected in the
future due to proposals for new
applications. Also, as the performancesuperiority of MIRAMAT ACE is
expected to be maintained at a highlevel, it is expected that the replacement of existing cushioning materials
will accelerate even further.
MIRAMAT ACE
Expanded polyethylene sheet withpermanent anti-static properties

Message from the President
Initiatives for sustainability management
Based on our corporate philosophy, the JSP Group s approach tosustainability management is to continuously enhance ourcorporate value with a strong awareness of our corporate
responsibility in the elements of environment, society, andcorporate governance. In our business activities, we are strengthening the promotion of sustainability management through thedevelopment of products and manufacturing technology that
contribute to reducing the environmental burden throughout the
product life cycle. In order to promote the basic concept of expanding
the value provided by JSP in terms of both economic and social
value as stated in our current medium-term business plan, we aregoing to utilize the advanced foam technology and know-how that
we have cultivated. We ﬁrmly believe that foamed plastics, whichhave various advantages such as energy saving, resource saving,cost saving, and recycling, will support people s aﬄuent lives andcontribute to the realization of a sustainable society.
Foamed plastics can dramatically reduce the amount of plastic
used for the same volume. Furthermore, using our technology toachieve the same or greater strength makes it possible toeﬀectively utilize resources, which also leads to conservation of the
global environment. The essence of sustainability management at
JSP is to contribute to the realization of a sustainable society
through ideas and technological innovation centered on foamed
plastics.
In April 2021, we established the Sustainability Promotion
Department from the perspective of instilling the concepts andimportance of sustainability at JSP. In addition to reorganizing theCompany s diverse businesses from the perspective of sustainability,
the Department presents CO2 reduction targets, reports on related
progress, and operates a navigation function that fosters and uniﬁes
internal awareness by presenting a road map for future sustainability.

Strengthening the management base for new growth
The other basic strategy of the medium-term business plan is tostrengthen our management base. To realize this strategy, we areworking on the three initiatives of constructing a business base,strengthening our human resources base, and strengthening our
ﬁnancial base. We will reassess our strengths and invest not only
people, goods, and money, but also all kinds of resources, such as thetechnology and know-how that we have cultivated over many years, toexpand into new markets and create business models. In this way, we
will build a foundation for growth over the medium to long term.
In order to strengthen our business foundation, JSP will strengthen our
logistics system, strengthen collaboration between Group companies,
and optimize our production system. We will also focus on improving
operational eﬃciency, improving productivity, and rebuilding coresystems through digital technology (DX), and on pursuing the sustainabilityof raw materials and reducing greenhouse gas emissions in the supply
chain.
To strengthen our human resources base, JSP is working on initiatives
such as promoting diversity and ﬂexible working styles, optimizing sales
systems and personnel, and strengthening focus markets. In particular,
maximizing the value of human resources is essential to improving
corporate value, and we are strongly aware of the link between humanresource strategies and management strategies. JSP plans to revise ourpersonnel system to incorporate a meritocracy perspective so that
mid-career and leader-class employees can further demonstrate theirabilities. We plan to introduce the revised system in ﬁscal 2024.
To strengthen our ﬁnancial base, JSP is investing to strengthen our
growth foundation, working to achieve ﬁnancial stability, and allocating
cash to optimize shareholder returns. Regarding investment, we have been
taking a wait-and-see approach due to the recent surge in energy and raw
material prices. However, we feel the need to organize our thoughts on
capital policy and fund management. The time has come for us to consider
new investments in order to expand the applications and regions of our
products, which are the core of the company s business growth. We
believe that ﬁnancial strategy, including improving capital eﬃciency, will bea major theme of our next medium-term business plan.

Qualitative improvement of corporate governanceIn October 2020, an incident occurred at the JSP Group which caused
us to review our corporate governance. Speciﬁcally, there was anincident of capital outﬂow based on false instructions by a malicious
third party at a Group company in Europe. The failure to prevent thisincident was due to the lack of governance and the fundamental
cause was insuﬃcient attention to the far reaches of our global
network.
Human beings tend to change their interpretations to suit their own
convenience. It can be said that the pursuit of work eﬃciency

JSP Corporate Report 2023

has led to omission of an important veriﬁcation process and we havemade sacriﬁces as a result. In order to reduce troubles and accidents, it
is important to constantly review rules which have become customary,and to compare each rule with actual conditions. From this point ofview, as a speciﬁc measure to prevent recurrence, we have made majorrevisions to our internal rules and regulations. We have established an
independent department dedicated to overseeing overseas organizations and clariﬁed the role of the department. This enables us to pay
attention to the farthest reaches of our global network. In addition, we
are working to ensure open communication at our organization by
constructing systems which enable consultation on any issues.
On the other hand, in the last two to three years, we have developed
the structure of meeting bodies such as the Board of Directors and the
Executive Oﬃcers Meeting. At last year s General Meeting of Shareholders, we increased the number of outside directors by one. This year, wewelcomed a female director. In addition, in April 2022, we established aSpecial Committee on Governance composed of outside directors. By
ensuring fairness, transparency, and objectivity, we are working to
improve the quality of corporate governance including appropriately
protecting the interests of minority shareholders.

Message to our shareholders and investors
Fiscal 2023 is the third and ﬁnal year of our medium-term business plan.
We expect that we will not be able to reach our numerical targets dueto the diﬃculty to fully respond to major changes in the external
environment. However, as the result of cost pass-through whileobtaining consent from our customers, we feel that we have recovered
up to roughly 70%. In addition, we were able to make steady progressin planting and building foundations for future growth, including businessexpansion, market development, and the establishment of a management base.
New medium-term business plan will start in the next ﬁscal year. We
are holding repeated discussions to create the plan with greater focus
on proﬁtability by strengthening our global management structure andpursuing capital eﬃciency and proﬁt eﬃciency, toward the realization of
our long-term vision.
The business environment is expected to continue to be uncertain andsubject to rapid change. Amidst such circumstances, we will promote
the penetration of our corporate philosophy throughout the company.
We will also transform changes into opportunities by further enhancing
our strengths in human resources and technological capabilities. We aim
to improve our corporate value over the medium to long term throughbusinesses that contribute to the realization of a sustainable society,centered on sustainability management.
We look forward to the continued support from all of our stakeholders.

09 Our Value Creation Process