Creating Corporate Value Report 2018Year ended March 31, 2018

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Refreshing the air
Our business is to brighten and enliven the lives of customers with air.
We have focused on niche markets, and reeled in customers while developing
products with the keywords: “understanding through listening, seeing, and using.”

Presently, our business environment is dramatically changing, as environmental
problems become more serious, the social structure transforms, and globalization
progresses, however, we aim to establish a robust business basefor responding to such changes.

For the sustainable growth of society and enterprises,
using “unique air care technologies” and with efforts to“meet social expectations (value creation) and demands (social responsibility)”
we aim to achieve co-growth of the society and enterprises.

Compilation policy
This report includes the efforts for creating corporate value as an annual report on
the business activities of the S.T. Group. With reference to the requests, opinions,etc. from stakeholders, it includes important issues (financial and non-financial
information) for both stakeholders and the S.T. Group.
[Scope of reporting] See the entire picture of communication tools on page 13.
[Target organizations] The document reports on our company, or the S.T. Group(consolidated), if not mentioned. The “S.T. Group” means the entire S.T. Group,
the “S.T. Group (in Japan)” means S.T. (nonconsolidated) and group companies inJapan, and the “S.T. (nonconsolidated)” means S.T. Corporation (nonconsolidated).

[Target period] April 1, 2017 to March 31, 2018
[Date of issuance] August 2018
[Forward-looking statement] This report contains forward-looking statements
regarding S.T. CORPORATION’s future plans, strategies, and performance. Suchforward-looking statements are based on information available as of the issuanceof this report. Please note that the Company’s actual performance may differ
greatly from forward-looking statements due to the economic situation, businessenvironment, market demand, and foreign currency exchange rate fluctuations in the
future.

Contents
For Sustainable Growth P. 2

Message P. 4

Business at a Glance P. 10

Sustainability Overview P. 12

Systems for Supporting Management P. 6

Financial and Non-Financial Highlights P. 8

Corporate Data / Overview of Communication Tools P. 13

1

For Sustainable Growth

It is diversity drives sustainable growth.
In September 2015, the “SDGs” were adopted,
and in December, the “Paris Agreement” was adopted.
Due to this, the economy’s preconditions changed greatly.
In this new era of change, we create new markets with diversity.

2009
2

2010

2011

2012

2013

2014

Assuming that the figure in 2009 is 100%

Percentage of female directors
33.3% as of the end of March 2018(266%)

Profit attributable to owners of parent
2,410 millions of yen as of the end of
March 2018
(224%)

CO2 emissions
3,691t as of the end of March 2018
(90%)

Percentage of outside directors
55.6% as of the end of March 2018
(89%)

2015

2016

2017

2018

* This graph shows the fiscal year which ended in March 2009, the first period, as 100%. The last 10 years from the end of March 2009 to the end of March 20183

Message“Molting” for growth
Developing a highly profitable system and sowing seeds of growth(Important points for development in the new medium-term business plan)

In the year ended March 2018 (the current year) we “sowed the seeds

1. No.1 share of existing businessof growth” while continuing “the development of a highly profitable

2. Domestic new field/new market

system” under the managerial policy of “brand value management.”

3. Overseas business

As for “the development of a highly profitable system,” good
performance was observed in products with high added value and high

4. Thermal care
5. Creating a structure for growth

unit price, such as our main air care scented products (deodorizers

For “No.1 share of existing business,” we are aiming for the No.1

and air fresheners) “Shoshu-Riki” Premium Aroma series, “SHALDAN”

share not only in cloth care products (mothproofing agents) and

FRAGRANCE, and our new cloth care products (mothproofing agents),

humidity care products (dehumidifiers), but also in niche products in the

we also launched a new brand of cleaner “Senjo-Riki” and net sales

existing domestic market such as air care products (deodorizers andwere 48.6 billions of yen (a 6% increase from the previous fiscal year).

air fresheners).

As for profit, due to an increase in sales quantity of products withFor “domestic new field/new market,” we are making developments

high added value and efforts to reduce returns and production costs,

in growing fields such as products for industrial use or for usage inthere was an increase in sales and profit, with operating income at 3.5

nursing care sites, within the clear forest business, and in EC channels.

billions of yen (22% increase), ordinary income at 3.5 billions of yen

For “overseas business,” we are aiming for global development,(20% increase), and profit attributable to owners of parent at 2.4 billions

narrowing down the target areas of our strategies, and focusing onof yen (33% increase).

specific businesses.

For “sowing the seeds of growth,” we launched “Yells” a new brandof nursing-care goods for meeting the needs in the ageing society and“Aroma Sapuri” a product using aroma oil for new healthy habits.

For “thermal care,” with the three keywords: existing, new, andoverseas, we are developing a new thermal business.
For “creating a structure for growth,” we will reevaluate our
production system, reform our working style, and work on the

From a “profit improvement phase” to a “scale expansion phase”

development and diversity of our personnel.

From the year ending March 2019 (this year), we will start a new
medium-term business plan. We will transition from the “profit

The “future” is not on the extension line of “now”

improvement phase” up until the current year to the new “scale

While the current year has been one where there was an update in our

expansion phase.” This year, we will raise the seeds which were sown

past records for Profit, it has also been a year where we have realized

for growth.

various issues. For us to advance further, all staff must step outside of

The following five points are important points for the developmentof the new medium-term business plan.

the box and greatly develop themselves. We appreciate your increased
and continued support.

Takako Suzuki
President and Chief Operating Officer (COO)4

5

Systems for Supporting Management

Corporate GovernanceWe consider that corporate governance is a “system for supporting”
the sustainable co-growth of enterprises and society. It is important
to develop an environment for securing the transparency and fairnessof management facilitating active decision making, and disclosing
information properly. We recognize that shareholders, society and theenvironment entrust us with valuable managerial resources, and aim
to realize the sustainable growth of society and the environment andcreate corporate value in the medium to long terms, in cooperation
with stakeholders, and will fulfill our accountability.
Development of corporate governance system
In June 2004, in order to enhance oversight function of the Board of
Directors and the quality of management and enrich management
practices such as prompt decision-making and agile executionof operation, the Company was reorganized into a company withcommittees (currently company with three committees), which is moretransparent and fair and in which outside directors account for the
majority of board members. In June 2008, a female director was
appointed for the first time, and in June 2018, female directors makeup 33% of the board (one out of eight executive officers is also woman).
In addition, we appoint Independent outside directors with a wide arrayof knowledge, experience and skills such as marketing and accounting,etc. (The Company was selected as “Diversity Management Selection
100 (2013)” (METI Minister Award).) In 2015, a board evaluation was
also conducted to improve the effectiveness of the Board.
Remunerations of directors and executive officers
The remunerations of directors and executive officers are designed for
improving corporate value.

Overview of corporate governance(Year ended March 31, 2018)

Governance Type

Company with three committees

Number of Board Members

9

Number of Outside Directors

5 (56%)

Number of Independent Directors

4 (Notified as the persons designated by the Tokyo Stock Exchange)

Board Diversity

3 female directors (including 1 outside director)

Number of Board Meetings Held per Year

9 times

Average Attendance Rate of Board Meetings

100%

Director’s Term

1 yearChairman and CEO

One person serving as both

Nomination Committee

5 members (3 outside directors; chaired by an outside director)

Audit Committee

4 members (4 outside directors; chaired by an outside director)

Compensation Committee

3 members (2 outside directors; chaired by an outside director)

Corporate governance structure
General Meeting of Shareholders
Election/Dismissal

Nomination Committee

Election/Dismissal

Accounting Auditors
Accounting Audit

Board of Directors

Audit Committee(Audit Committee Office)Election/Dismissal

Internal Audit Group

6

Compensation Committee

Representative Executive Officers

Executive Officer Meeting

Executive Officer in Charge

Executive Officer in Charge

Operating Divisions

Group Companies

Board of Directors(As of June 19, 2018)

Takashi Suzuki

Naoto Onzo

Kanichi Suzuki

Mitsuko Miyagawa

Kazuo Sugiyama

Takako Suzuki

Kumiko Ishikawa

Kouichi Yoshizawa

Chairman of the Board of Directors

Director ( Outside Director )Director ( Outside Director )Director

Nomination
Committee

Chairman of the Boardof Directors○

Director(Outside Director) ☆

◎Director(Outside Director)○

Director(Outside Director) ☆

○(As of June 19, 2018)

Audit
Committee

Compensation
Committee

Takashi Suzuki
○

◎

◎
○

Director(Outside Director) ☆

○○◎：Chairperson○：Committee member

4
members

Name

Takashi Suzuki※

Representative Executive
Officer, President, COO

Overall management

Takako Suzuki※

Mitsuko Miyagawa

Managing Executive Officer

In charge of the Business Management Division

Tsukasa Konda

Noriyuki Watanabe

Managing Executive Officer

In charge of the Sales Divisionand the Domestic Sales Department

Yo Kouzuki

Executive Officer

In charge of the Executive Creative Director

Koji Kage

Executive Officer

In charge of the Management Strategy Divisionand responsible for Domestic Group Companies

Kouichi Yoshizawa

Executive Officer

In charge of the R&D Division

Mikio Tsuji

Executive Officer

In charge of the International Sales Department
and responsible for Overseas Group Companies

Keiichi Hayasaka※

Kumiko Ishikawa
Kouichi Yoshizawa

Director5
members

Responsibilities
Overall management

Naoto Onzo

Takako Suzuki○

9 directors( five of whom areoutside directors )(As of June 19, 2018)

Kazuo Sugiyama○

Director

Areas of executive officer responsibility

Representative Executive
Officer, Chairman, CEO

Kanichi Suzuki

Director(Outside Director) ☆

Director※

Director ( Outside Director )Director

Executive Officers

Name

Noriyuki Watanabe

Director ( Outside Director )Director

Corporate governance overview
Directors

Director ( Outside Director )※3
members※：Holds the concurrent position of executive officer※※：Holds the concurrent position of director☆ Independent Outside Director

Risk Management and Compliance
For internal control, we promote system development in order tosecure the adequacy of organizational business operation. In orderto accomplish organizational goals effectively, efficiently, and properly,
opinions inside and outside the company are constantly grasped andimprovements are continuously made, while organizing rules andbusiness processes.
We consider that risk control is the most important issue formanagement. We are working to establish a system that can prevent

occurrence of various management risks surrounding the company,
minimize damage in the event that incidents do occur, and to prevent
their reoccurrence.
As for compliance, we observe not only laws, but also internal andexternal regulations, ethics, and social norms; fulfill social requirements
and expectations by putting our management philosophy and codesof conduct into practice; and strive to maintain and improve the trust of
stakeholders.

7サーモケア1０％

衣類

Financial and Non-Financial Highlights

14

15

16

17

衣類ケア ２１％

14

15

16

17

14

18

Net sales*2

15

2,410
3,481
1,817

2,854
912

2,342
892

1,813
1,234

2,131

2,854

17

18

14

1514 1615 1716 1817

18

12

Profit attributable to owners of parent■ Operating income (millions of yen)
● Operating income margin (%)(millions of yen)

3,683

3,691

2012
64.8 65.2¥46,354
1,751
76
659
1,007
931
773
234.9

226.0

3,688

65.4

63.2
¥43,580
2,114
786
610
662
992
-897
210.8

234.9

226.0

197.0

63.4

912

892

1,234

1,817

For the Year
6.1
6.1
63.4 65.4¥44,87963.2¥43,546
Net sales*2
Operating income
2,4934.2
2,246
4.2
4.0
4.0
4.1
Profit attributable to owners of parent 4.1
1,076
1,119
R&D expenses
499
612
2.9
2.9
2.7
2.7
Capital expenditures
716
673
2.7
2.7
1.9
1.9
Depreciation and amortization
858
922
Free cash 0.3
flow
945
2,137
0.3
0.4
At Year-End 0.4
12
13
14
15
16
12
13
14
15
16
14
15
16
17
18
12
13
14
15
16
Total assets
27,61729,029Total net assets
19,02919,966
Number of issued outstanding shares (thousands)*3
21,831
21,852

2011

3,752

2010
64.8 65.2

202.1

2009

197.0

Fiscal year (ended March 31)

3,884

millions of yen
2,410

2,410
1,817

18

16

Operating income / Operating income margin(millions of yen)

17

3.8

0.3

210.8

18

4.8

4.5

衣類ケア ２１％

202.1

17

2,342

サーモケア
1０％

エアケア
44％

3.8

1,813

サーモケア
1０％

4.8

6.2

3,481

湿気ケア ７％エアケア
4.5
44％ハンドケア
１１％

7.2

6.2

ホームケア 7％2,131

48,627ハンドケア
１１％

45,958

湿気ケア ７％48,351

48,263

ホームケア 7％
46,993

48,62745,958

7.2

18

12 141330,011
1514 1615 1716
18
30,287

19,972
21,786

19,701
21,718

17

33.3

44.4

37.5
4,079

55.6
952

890

5.6
3.8
55.6 5.8
50.0
67.5
860

760

Non-Financial Indicators
CO2 emissions (tons)*6
Number of employees (people)
Ratio of female directors to total directors (%)
Ratio of outside directors to total directors (%)

859

55.6
952

890 3,691

860 3,683

3,688

859

760

3,752

Financial Indicators
Operating income margin
ROA*4
ROE*5
Equity ratio
3,884

3,683

3,691

%

33.3

5.2
4.0
5.9
55.6
67.2
33.3

4,433
611
11.1
66.7

619
12.5
62.5

55.6

4.9
2.7
55.6
4.0
50.0
64.9
44.4
37.5
4,167
630
12.5
62.5

33.3

55.6

33.3

3.8
0.3
0.4
55.6
63.4
33.3
3,727

647
25.0
50.0
yen

18

Per Share
Information
14
15
16
17
18
14
15
16
17
18
Profit attributable to owners of parent
Net assets
Dividends
Common Stock prices*7

14

14
15

15
16

16
17

¥49.32853.81
22
940

17
18

18

¥51.25892.46
22
1,046

14

15

16

¥36.03893.74
22
916

17

18

¥3.48
884.4522
1,025

Notes:	1. U.S. dollar amounts are translated from yen for convenience only, at the rate of ¥106.24 = U.S.$1.00, the approximate rate on the Tokyo Foreign Exchange Market on March 31, 2018.
2. Effective from the fiscal year ended March 31, 2017, we have applied the new accounting standards.
3. Number of issued outstanding shares does not include that of treasury shares.
4. ROA = Profit attributable to owners of parent / average total assets for the fiscal year.

8

14

892
892
892
91
91
91

2.9
2.92.91.9
1.91.92.7
2.72.72.7
2.72.70.3
0.30.30.4
0.40.4141414151515161616171717181818

121212131313141414151515161616

121212131313141414151515161616

55.6
55.6
55.6
55.6
55.6
55.6
55.6
55.6
55.6
55.6
55.6
55.6
50.0
50.0
50.0

760
760
760
859
859
859
860
860
860
890
890
890
952
952
952

3,884
3,884
3,884
3,752
3,752
3,752
3,688
3,688
3,688
3,683
3,683
3,683
3,691
3,691
3,691

S.T. Group (in Japan)

44.4
44.4
44.4

33.3
33.3
33.3
33.3
33.3
33.3
37.5
37.5
37.5

33.3
33.3
33.3

141414151515161616171717181818

141414151515161616171717181818

141414151515161616171717181818

CO2 emissions*6

Number of employees(tons)(people)Ratio of outside directors to total directors /Ratio of female directors to total directors● Ratio of outside directors to total directors (%)● Ratio of female directors to total directors (%)

millions of yen

thousands of U.S.dollars*1

2013

2014

2015

2016

2017

2018

2018

¥46,944
1,800
565
572
2,061
830
-944

¥46,993
2,131
1,234
564
942
894
2,624

¥48,263
1,813
892
513
1,486
844
369

¥48,351
2,342
912
536
1,758
1,128
1,857

¥45,958
2,854
1,817
611
608
997
4,529

¥48,627
3,481
2,410
596
1,822
970
835

$457,705

30,076
20,213
21,71632,37021,087
21,85333,78522,60021,851

34,92423,496
21,69938,45825,812
21,87742,45029,022
22,063

399,566
273,172
111,689

32,763
22,6825,610
17,149
9,130
7,856

%

3.8
1.9
2.9
65.4

4.5
4.0
6.1
63.2

3.8
2.7
4.2
64.8

4.8
2.7
4.1
65.2

6.2
5.0
7.6
65.3

7.2
6.0
9.0
66.8

3,930
663
30.0
50.0

3,884
760
33.3
55.6

3,752
859
44.4
55.6

3,688
860
37.5
50.0

3,683
890
33.3
55.6

3,691
952
33.3
55.6
yen

¥26.01905.8422988¥56.74936.0622
999¥40.831,001.84
22
1,021¥42.01
1,049.58
22
1,114¥83.57
1,148.41
24
1,809

U.S.dollars¥109.58
1,285.01
31
2,286

$1.03
12.10
0.29
21.52

5. ROE = Profit attributable to owners of parent / average total equity (total net assets - subscription rights - non-controlling interests in consolidated subsidiaries) for the fiscal year.
6. The CO2 emissions from the S.T. Group (in Japan)
7. The common stock prices were as of the end of the fiscal years, ended March 31.

9Business at a Glance

Business by Category

Proprietary Brand

Market Share and Rank (Japan)

Deodorizers and Air Fresheners

Air Care“SHALDAN” BOTANICAL CM

26%(Market Share: No.2)(Deodorizers and
Air Fresheners)

Deodorizers

79%(Market Share: No.1)

Cloth Care

“Mushuda” CM(Mothproofing Agents)

Mothproofing Agents

51%(Market Share: No.1)

ThermalCare

Disposable Warmers(Disposable Warmers)(Market Share: No.2)

Hand Care(Gloves)

16%

Household Gloves

24%(Market Share: No.2)

Humidity
Care

Dehumidifiers(Dehumidifiers)(Market Share: No.1)

Home Care(Cleaners andOther Products)

39%

42
%
42
%
42
%
42
%
42
42%%

Composition of Net Sales

Sales/YoY

20,479millions of yen

+4.3%

19
%
19
%
19
%
19
%
19
19%%

9,323

13
%
13
%
13
%
13
%
13
13%%

6,435

12
%
12
%
12
%
12
%
12
12%%

5,569

6
%
6
%
6
%
6
%
6
6%%

2,954

8
%
8
%
8
%
8
%
8
8%%

3,866

Overseas

The ratio of overseas sales is 7%. We strengthen global business as another driver of growth.

Promoting Capital andBusiness Alliances

We concluded contracts for capital and business tie-ups with FUMAKILLA LIMITED and NS FaFa Japan Co., Ltd.

Development of New
Businesses

Cultivate domestic new fields and new markets, by utilizing our original air-care technologies.

millions of yen+4.3%

millions of yen+12.3%

millions of yen+5.3%

millions of yen-0.4%

millions of yen+13.9%The market share was estimated by INTAGE Inc. (Filtered according to SRI category) (Data from January to December put together, except disposable pocket warmers, for which data from April to March were put together.)10Market Environment

Salient Business Features and Strengths

Overview of Fiscal 2018 and Strategies Going Forward● The market is growing.
● M ainstay business division accounting for about ● T he performance of our scented products such as
40% of the Company’s total sales. A business that is“SHALDAN” BOTANICAL and “Shoshu-Riki” Premium Aroma● F ragrance-focused products are showing a growth
expected to experience future growth.
series was favorable with increasing sales.
trend, with further growth anticipated.
● This division owns unique brands, including our largest ● This year, we will keep striving to expand the markets ofbrand “Shoshu-Riki,” “SHALDAN” for enjoying more
mainly “Shoshu-Riki” and “SHALDAN.” We will also sow thefragrance, and “Dashu-Tan,” which deodorizes air withseeds of growth.
the power of charcoal.
● The market is on a plateau and stable.
● A foundation business rivaling the importance of the ● As a result of the bad weather in the spring and autumn
Air Care category in terms of marketing.
of 2017 and the favorable performance of the products● With changes in storage styles, responding to diverse
released in spring 2018, sales have increased.
needs will be the key in the future.
● T his category comprises topline brands including“Mushuda” and “Neopara Ace,” which are well ● This year, as well as actively promoting the sales of ourrecognized for their reliability in protecting clothes fromproducts we are making efforts to propose new storage
moths.
methods and to cultivate a new type of demand.

● Climate change significantly impacts the market. Difficult ● W inter-based product range. Provide an additional ● Due to returns reduction activities from the end of theto differentiate products. Intense market competition.
point-of-sale management role linked to spring andseason in 2016 and the cold weather during the peak
autumn mothproofing agents.
period at the beginning of the season in 2017, sales have● We anticipate domestic new fields and new markets
increased.
which use thermal technology in the future.
● Alliance products. Offer “Onpacks” and other products.
Conclusion of the business transfer contract with ● This year, we aim to actively promote sales of our products
Mycoal Corporation in December 2017.
and propose new value, to cultivate and expand a new kindof demand.
● Both household and industrial-use markets are growing. ● An inaugural, enduring division with a history of six ● The performance of the “Modelobe” mechanics gloves anddecades together with the Cloth Care category.
the “Family” series of household gloves was favorable, and● In addition to improving work efficiency, proposals forsales increased.
improved functionality and added value are key points. ● This category is comprised of the “Family” series ofhousehold gloves, “Modelobe” series of industrial- ● This year, we will keep promoting the sales of household
use gloves and other products. Gloves with reinforced
and industrial gloves, to strengthen and develop ourfingertips and NBR gloves with good puncture
brands.
resistance have been marketed.
● The market is growing. Difficult to differentiate products. ● This business has consistently led the market since ● As a result of reexamination of the product structure ofIntense market competition.
“Drypet” was first launched in 1981.
the high added value sheet type products and “Bincho-Tan
Drypet,” sales plateaued.
● Putting forward value-added products that offer new ● T his category is comprised of the mainstay brandfunctions and applications is critical to future growth.
“Drypet,” as well as other products including “Bincho- ● This year, we will keep promoting products with high added
Tan Drypet,” which offers a deodorizing function
value to cultivate and expand a new kind of demand.
together with dehumidifying; a solid lineup including
refill- and sheet-type products.
● Robust conditions in the niche cleaner and mothproofing ● This business is currently fostering the niche cleaner ● S ince the performance of the new brand “Senjo-Riki”
agents for rice bins markets.
market and is coordinating efforts to nurture other new
Mokoawa toilet cleaner, which was launched in the current
products that are under development.
year, was favorable, sales increased.
● It owns unique products, such as the cleaners in the ● We will endeavor to make inroads into new fields for further
niche market, including “Senjo-Riki” and “Ohisamanogrowth.
Sentaku,” and the mothproofing agents for rice bins
“Kome-Touban.”

We will focus on the target areas of our strategies overseas. We will enter the ASEAN market with the hub of our activities located in Thailand. We will fortify our business infrastructure,
focus on specific business and our new core products.

Utilizing the fact that the business areas of the three companies are complementary to each other, we will try to improve the development and profitability of the three companies’ businesses.

Develop the “Clear Forest” brand, the “Aroma Sapuri” brand, and the “Yells” brand.

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Sustainability Overview

Social Expectations (Value Creation)
Materiality● Utilization of unique air-care technologies[Solving Social Issues]
S.T. is developing products that could make the living of customers more
comfortable with air, and proceeding with the air purifying business basedon new technologies. Since “SDGs,” there are growing social requirements
and expectations for “solving social issues,” and the S.T. Group considers
that tackling these issues would lead to the creation of corporate value.

Overview of Fiscal 2018 and Strategies Going Forward●< Products>[Ensure healthy lives]
We won the “Science and Technology Award” at Commendation for Science andTechnology in 2018 by the Minister of Education, Culture, Sports, Science andTechnology for our development of “Air Purifiers” (April 17, 2018).
●<
 Community>[Sustainable industrialization (new employment), sustainably managed forests]
Through the comprehensive collaboration agreement with the Hokkaido
Government, continued promoting the use and raising awareness of Sakhalin fir
and energizing the local industry.

Social Requirements (Social Responsibility)
Materiality

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Overview of Fiscal 2018 and Strategies Going Forward● P rovision of safe, reliable products to consumers[Consumer Issues]
We consider that the manufacturers of daily necessities have a social
mission to make the living of consumers more comfortable and an
important obligation to offer safe, reliable products and services. If an
enterprise loses the satisfaction and trust of consumers, it will become
unable to survive. We recognize this and take various measures to ensurethat it does not happen.

● [Protecting consumers' health and safety]
Continued regularly holding meetings of PL Committee that carries out quality
control, etc.
● [Fair marketing, factual and unbiased information and fair contractual practices]
Continued providing the products/useful information, quality information, andother information, on its website.
● [Consumer service, support, and complaint and dispute resolution]
In the customer consultation room, we continue to deal with frequently asked
questions, explanations on how to use products, and complaints about products.
● [Consumer data protection and privacy]
We responded to amendments of the Act on the Protection of Personal
Information.

● Securing and training of personnel[Labor Practices]
Amid the significant turning point, including demographic changes
and globalization, if we cannot secure competent personnel who can
respond to such changes, we will not be able to create corporate value
sustainably. The S.T. Group recognizes this, and is improving employment
and labor environments.

● [Employment and employment relationship]
In order to reduce long working hours, continued reviewing tasks assigned to its
employees and implementing no-overtime days.
● [Human development and training in the workplace]Continued providing its employees with educational programs such as e-learning.
● [Conditions of work and social protection]
From the current fiscal year, we will adopt an annual paid leave system by
the hour and a system of accumulated vacation days. We will also relax theregulations of the flexible working hours system for child care and nursing.
● [Social dialogue]
Continued having dialogue with labor unions, etc.
● [Health and safety at work]
Under the Business Continuity Plan (BCP), continued inspection, correction, andimprovement, including disaster drills.

● Efforts based on environmentally conscious products, manufacturing
and distribution processes[Environment]
The S.T. Group (in Japan) actively engages in the countermeasuresfor climate change, which is required globally, and tackles various
environmental issues that would be influenced by business activities.

● [Climate change mitigation and adaptation]
Continued propelling a modal shift and hybridization of company cars.
● [Prevention of pollution]
Continued reducing waste at each and every plant.
● [Sustainable resource use]
Continued having no-overtime days, managing air conditioning at eachdepartment, performing educational activities through information monitors, etc.

Corporate Data

Company namePaid-in capitalGroup companies

S.T. CORPORATION¥7,065,500,000

S.T. Trading Co., Ltd.

Headquarters

Employees (as of March 31, 2018)

S.T. MYCOAL CO., LTD.

4-10, Shimo-ochiai 1-chome, Shinjuku-ku,

Consolidated: 952

S.T. (Thailand) Co., Ltd.

Tokyo 161-8540, Japan

Non-consolidated: 425

Family Glove Co., Ltd. (Taiwan)

Telephone: +81-3-3367-6111(excluding part-time and temporary employees)

S.T. Korea Corporation (South Korea)

S.T. Business Support Co., Ltd.

Japan Aroma Laboratory Co., Ltd.
Establishment
August 31, 1948

Stock listing

Shaldan (Thailand) Co., Ltd.

First Section, Tokyo Stock Exchange

Account settlement date
March 31

Overview of Communication Tools

Creating Corporate Value Report 2018
(Japanese edition / English edition)

DigestAn easy-to-understand annual report (pdf) on activities
aimed at creating corporate value for all stakeholders.

Corporate Information Website

Corporate Profile 2018

In addition to introducing each of theCompany publications, the Corporate
Information Website is a comprehensive toolthat provides the latest information and an
overview of S.T. CORPORATION to all
stakeholders.

A compilation and comprehensive tool
overviewing the Company as a whole ina Data Book (pdf) format for the benefit
of investors.

Creating Corporate Value Report 2018
Financial Section

Investors’ Guide 2018

(Japanese site / English site)

Overview(English edition)

Specialized data

Compilation Data Book (pdf) and separate
supplement containing financial data for themost recent fiscal year.

(Japanese edition / English edition)(Japanese and English compilation)

Compilation Data Book (pdf) covering
10 years of quantitative information on
the Company’s corporate activities for
institutional investors.

Communication tools are available within the Library section of the Company’s Corporation Information Website.

13

4-10, Shimo-ochiai 1-chome, Shinjuku-ku, Tokyo 161-8540, Japan
http://www.st-c.co.jp/english/company/index.html

Printed in Japan, August 2018