Top Message

Highlight

Value Creation of NITORI Group

Sustainability

Data Center

Sustainability

Discussion by Outside Directors
Ando: In my case, what is expected of me as an outside
director of the Company is to provide “quality meddling”
based on my long experience in public administration

Evaluation of NITORI Holdings

regarding opportunities and risks that may be difficult forIzawa: We are not a so-called dictatorial company. It is true

people within the Company to recognize, specifically, I

that Chairman leads the group with his charisma and strong

believe that I should communicate to executive directors soleadership as the founder, but at the same time, he always

that they can have a bird’s eye view and awareness of thelistens to the opinions of others in the company, and themacro environment that will bring about changes in theinternal board members also actively express their own

industrial structure, such as carbon neutrality andopinions. I think this is a different type of company fromdigitalization.

others and can be said to be very unique.

Izawa: Indeed, you explain things from a completely

Ando: I also feel that everyone in the company, including

different angle than the other members and in very easy-to-the board members, expresses their opinions openly andunderstand language.

without any sense of judgment, and that this culture
permeates down to the very bottom of the organization.

Hisayoshi Ando

Yoshiyuki Izawa

Independent Outside Director(Member of Audit & Supervisory Committee)

Independent Outside Director(Member of Audit & Supervisory Committee)

1983 Joined the Ministry of International Trade and Industry(currently the Ministry of Economy, Trade and Industry)
2009 Secretary to the Prime Minister2010 Director-General, Resources and Fuels Department, Agency
for Natural Resources and Energy, METI2017 Director-General, Small and Medium Enterprise Agency, METI2019 Administrative Vice Minister, METI
2022 Outside Director of the Company (current position).

1970 Joined Mitsui & Co., Ltd.
2008 Representative Director and Executive Vice President (CEO)of Mitsui & Co.
2009 Director and Representative Executive Officer (CEO) ofJapan Post Bank, Ltd.
2015 Representative Director, Chairman and CEO of BlackRock
Japan K.K.
2022 Outside Director of the Company (to date).

Ando: In terms of the effectiveness of the Board ofWhen I attend internal meetings and see the expressions

Directors, it’s you who always initiates discussions andon the faces of the members, I can clearly see that they are

elicits comments from the members.

not waiting for instructions from the top, but are taking theinitiative.

Izawa: I believe that it is important to go through a quality
debate before making a resolution and I try to encourage a

Izawa: I think the corporate governance is also highly

lively discussion on all agenda items. For example, lasteffective. I think the Board of Directors is highly effective

year’s withdrawal from the U.S. market was the subject ofand most appropriate in the selection of Directors, theheated debate within the Board of Directors, but in the end

operation of the Board of Directors, as well as the selection

everyone agreed on the resolution, and I believe I was ableof the agenda.

to fulfill my function as a Board member. Leading thediscussion in such a direction is one of the roles a director

Ando: Along with the selection of the agenda, I also thinkshould fulfill.

highly of the way in which the Board of Directors decides
when the discussion reaches a point where it is ready for a

Establish a risk management system covering

Ando: Since it is the executive directors who actuallyresolution. At our company, it is not uncommon for

the entire group to realize the vision 2032.

develop practical operations in corporate management,

discussions to be sent back to the board if they are deemedoutside director is required to obtain sufficient

to be inconclusive and insufficient . It can be said that theunderstanding of his or her own opinion from the executive

discussions are firmly grounded.

directors through discussions and to see through to actual
actions afterwards. As a move in line with such a role,

Izawa: Another thing that I think is commendable is financial

during the period under review, as an outside director I

discipline. The accounting approach regarding impairment

my experience at the world’s largest asset management

proposed the need for verification work on supply chain

is very conservative, and I think it is wonderful that evencompany over the past seven years. In particular, withcybersecurity measures, and through careful discussions

with this accounting policy, the company has achieved 36

regard to overseas operations, I would like to makewithin the company, I was able to share my understanding

consecutive years of sales and profit growth.

Izawa: I recognize that my role as an outside director is tosuggestions and provide advice as deemed necessary withwith the executive directors. The project has alreadycontribute to the enhancement of corporate value by

regard to recognizing and responding to risks that thestarted, and we will continue to monitor its progress.

influencing the executive divisions from two perspectives,

Company may face in the future as it accelerates its global

by 2032, I have the impression that, in a positive sense, thethat of an investor and that of a global manager, based onexpansion.

people on the front lines are very firm and disciplined inRole as the Outside Director

63

Ando: While pursuing the challenging target of 3 trillion yen64

Top Message

Highlight

Value Creation of NITORI Group

Sustainability

Data Center

Sustainability

Discussion by Outside Directors

What is required of the outside
directors is to provide “qualitymeddling” regarding possibilities
and risks that executive officers
may not be aware of.

their approach. It is difficult to maintain discipline under theJapan. If we can establish products and services for seniors

Izawa: What is needed is to recognize all risks, not only

theme of co-creation with consumers, such as “resourcepressure of achieving the targets, but this perfect balancethat are viable in Japan, there will be room for global

overseas and in Japan, but for the entire group, minimize

recycling with our customers,” in addition to offeringof vision and firmness is one of the strengths of our group,expansion.

them and determine the extent to which we can respond toproducts with built-in 3R (recycle, reuse, and reduce) bythem. I would like to see the Company establish a global

taking advantage of the unique business model that

Izawa: While the expansion of overseas operations will berisk management system as soon as possible, while

integrates manufacturing logistics, logistics, IT and retail.

essential to achieve our vision, overseas is a very difficult

utilizing external organizations as well.

and I feel that the strong awareness of top management isat work.

Responding to changes in theenvironment (risks andopportunities)

market to conquer because of the numerous individual

Izawa: I think we should continue to strengthenrisks. First, as an urgent task, it is necessary to identify andenvironmental disclosure in this area, not only in terms ofspecify where the risks lie.

Sustainability

Ando: My top priority for our company, including global

Izawa: In terms of sustainability, we are clearly more

Ando: As SDGs and ESG initiatives become indispensable

Izawa: I believe that the first challenge for the future is toexpansion, is to ensure cyber resilience. We have built aadvanced than our competitors in terms of ESG’s Eto enhance corporate value, open disclosure of information

respond to the declining population in Japan. Even the best

unique business model in which the entire function is(Environment), especially in CO2 reduction and recycling.

on environmental initiatives is already part of a company’sbusiness model will eventually become obsolete as theperformed in-house and we have built up a successful track

In CO2 reduction, we have just initiated a plan to installsales strategy. I hope that the Company will continue to bemarket changes. Our company is no exception. To survive

record by maintaining a “risk is all within ourselves” attitude.

solar panels at our stores and distribution warehouses, andmore aggressive in communicating their “Promotion ofin the domestic market, we need to review and restructure

However, continuing this model going forward means thathave established a low-cost system that enables stableenvironmentally friendly business” to their stakeholders.

our business model in response to changes in consumer

the risks we take on as our business expands will be of a

procurement of renewable energy and the novelty of thisvalues and purchasing behavior.

different scale. The most significant of these would besystem has been highly evaluated by investors.

cybersecurity. This is not to say that we should stop doing

In the area of recycling, we are also actively promoting

Ando: With the declining birthrate and aging population, thethings ourselves, but we must examine and determine at an

various initiatives, including the manufacture and sale ofdemand for seniors will expand while the overall population

early stage whether and to what extent we can expand thecarpets made from recycled raw materials such as PET

will decrease, so it is important to take this as an opportunity

scale of our business through in-house production, orbottles.

to respond to new needs through marketing to seniors.

whether we need to consider outsourcing at some point in

In addition, the birthrate is expected to decline and thethe future.

population is aging rapidly in Asian countries as well as in65

I think NITORI Group is a different
type of company from others andcan be said to be very unique.

promotion, but also in TCFD and IR.

Ando: I believe that the company is effectively promoting
the environmental characteristics of its products under the66