TRUSCO NAKAYAMA Corporation「解 体 新 書」2 0 2 3Integrated Report

GAMBARE!! JAPANESE MONODZUKURI

About the cover page
We adopted the environmental
philosophy of “Sustainability”
approximately 25 years ago
when the term sustainability
became widespread. At present,
we are engaged in a variety of
initiatives designed to create abetter future, including not only
environmental activities but alsosocial activities and governance.
The left half of the logo markrepresents the Earth and theright half represents forests.

TRUSCO NAKAYAMA Corporation
Tokyo Head Office
TRUSCO Fiorito Bldg., 4-28-1, Shimbashi, Minato-ku,
Tokyo 105-0004
Osaka Head Office
TRUSCO Glen Check Bldg., 1-34-15, Shinmachi,
Nishi-ku, Osaka City, Osaka 550-0013

GOOD CAREER COMPANY
AWARD 2022

Grand Prize

Published: June 2023
Editor and Chief: Atsushi Shimozu
General Manager ofCorporate Planning Division
Production Partner:
Dai Nippon Printing Co., Ltd.
2,640 1,500 issues

For 25 years since 1998, we have been engaged inbusiness activities that have a low environmental

in line with our slogan “Sustainability”

NIAWASE (Order Consolidation) and
our Direct Delivery Service reduces
environmental burden by half
Customers

Users

Online Shops
Home Centers
Tool and Hardware
Stores

Production
Factories
Constructions
Sites
GeneralConsumers

!

A

sle
s
a
h

re
o
m
Muchenient!
conv

President

Tetsuya Nakayama

Direct Delivery
Service

Half the Delivery Time
Half the Packaging
Material Amount Halfthe Shipping Fee
Half the Environmental
BurdenHalf the Labor Burden
Professional systems and services

2

Integrated Report 2023

Scan the QR code towatch a video about our
Direct Delivery Service

Before NIAWASE(Order Consolidation)

After NIAWASE(Order Consolidation)

NIAWASE (Order Consolidation) and Direct Delivery Service
If you order multiple items on the Internet, each item will often have its own packaging. Users then have to deal with thehassle of receiving and disposing of cardboard boxes, and mail-order companies are often burdened with freight, packaging materials, and product delivery. However, with our abundant inventory and high-speed distribution equipment capableof NIAWASE (Order Consolidation), products can be placed together and shipped directly to users in a single package
which increases convenience and reduces environmental impact. (a few excerpts from the Top Message on p.10)

Integrated Report 2023

3

TRUSCO Integrated Report....................................................................................................

02
05

Financial Strategy - A Company with Assets - .............29
Product Strategy......................................................................................................................30
Distribution Strategy.........................................................................................................40
Sales Strategy...............................................................................................................................44
Digital Service Strategy...............................................................................................50
Human Resources Strategy................................................................................54

Sustainability......................................................................................................................................

.......

...............................................................................................................................

61

Environmental Efforts......................................................................................................66
Corporate Governance................................................................................................68

Shushazentaku

When you make a decision, you should ask yourself
whether it is right or wrong, good or bad, and always
choose what is right rather than focusing on whether
it is profitable. Making a decision based on whether itwill be profitable often results in a bad decision.

Digital Service

To Achieve “Our Ambitions” (Value Creation) 19
Business Flow20
Helping People and Society - Value Creation Model - 22

Spirit of Management

Sales

Organizational Chart
Origin of the Corporate Name TRUSCO andSpirit of Management.....................................................................................................09
Top Message...................................................................................................................................10
Map of Bases.............................................................................................................................. 12
Company Overview............................................................................................................18.........................................................................................................

Company Earning Your Trust

Distribution

Company Information

COMPANY

Products

Table of Contents

TRUSTManagement
PolicyIntegrated Report 2023

Our company was founded as Nakayama Kiko Shokai in
1959 before it was incorporated as Nakayama Kiko Co.,
Ltd. in 1964.
The company then changed its name to TRUSCO
NAKAYAMA Corporation in 1994.
TRUSCO was coined from the words “Trust” and“Company” to convey our commitment to building acompany that earns trust.
This name demonstrates our corporate approach toearn the trust of everyone we associate with in order tobecome a company that continues to grow in the future.

Value Creation

Origin of the Corporate Name TRUSCO

From the Top Message in FY2003......

The Nakayama visually impaired welfare
foundation.................................................................................................................................................

70

Corporate Data
Be an Ultimate Master Wholesale(Management Policy)......................................................................................................

We are publishing our Integrated Report annually in thehope that our institutional investors, shareholders, andother stakeholders will better understand our businessand the process of value creation. “GAMBARE!! JAPANESE MONODZUKURI” is our corporate message. In
the Integrated Report, we emphasize the story behind
our vision, which is to be a company that will continue tobe of service to the manufacturing industry in Japan thatalways provides the highest level of convenience. We
believe the source of competitiveness for an organization
is its originality. Therefore, we are building a businessmodel that makes full use of products, logistics, and digital technologies. We hope that this report will give yousome insight into our business and our approach to gaining a competitive advantage.

This Integrated Report covers TRUSCO's business operations from January 1, 2022 to December 31, 2022.

Note:The “Accounting Standard for Revenue Recognition” has been
applied from the beginning of the fiscal year ending December 31,
2022. Therefore, unless otherwise stated, figures for the fiscal year
ended December 31, 2021 have been retroactively applied, andyear-on-year changes for the fiscal year ended December 31, 2022
have been compared with figures for the fiscal year ended December 31, 2021 after retroactive application.

· “Guidance on Integrated Disclosure and Dialog for Co-Creation” (Ministry of Economy, Trade and Industry)· “International Integrated Reporting Framework” (International Integrated Reporting Council (IIRC))

Integrated Report 2023

Cautionary Information Regarding
Forward-Looking Statements
This Integrated Report contains forward-looking statements
regarding our future plans, strategies, and performance.
These statements are based on our assumptions and plans
based on current information. It contains risks and uncertainties related to economic trends and market demand. Therefore, please be aware that planned and actual results may
differ, and that strategies may change.

Reference Guidelines

Organizational Chart ◀ OPEN

From left to right: Head Chef Taro Kinoshita(TRUSCO Resort and Spa Hakone and TRUSCO
Resort and Spa Karuizawa) and Sous-chef
Toshiro Sato (TRUSCO Resort and Spa Hakone)

A Company
With Assets

We must be able to secure company buildings, information systems, vehicles, and other important assets
without relying on others. Owning assets means thatthey remain after depreciation, so money is not wasted. Instead of aiming for short-term profits, we stick tobeing “a company with assets” in order to have a longterm perspective of improving corporate value and to
improve convenience for our customers. (see p.29).

Owning our own buildings allows us tostrengthen functionality(Planet Saitama Distribution Center)

Decisive
Management

It is also important to continue pursuing the core value through reviewing our mission and raison d'etre,even if it means going back to the drawing board.
Bringing a stop to some business practices, including
the abolition of goods receipts and draft transactions,has resulted in changes. We will continue pursuing
the core value by always deeply looking at the essence of things.

Top photo: Final note payable (August 2003)
Bottom photo: Final note receivable(December 2005)

OPEN ▶ Organizational Chart

Integrated Report 2023

The Nakayama visually
Corporate Data
impaired welfare foundation

Period Covered by the Report

Corporate
Governance

Editorial Policy

Emphasison Regular
Employment

We have a responsibility to provide workplaces where
staff members can work with stability and peace ofmind. We should not take away the goodness frompeople's lives even if doing so increases profits.
TRUSCO has no temporary employees. Part-time
employees are limited to persons that are not headsof households, students, and the elderly, while headsof households are hired as full-time employees.

Building a distribution system by strengthening our wholesale operations

Environmental
Efforts

4

A Glance at TRUSCO Through Numbers..................................72
Results Data ...................................................................................................................................74

Choosing majority solutions results in ordinary results.
This is because the will of the majority is not always
right.

Sustainability

Management Policy - Be an Ultimate Master Wholesale - .........

27
28

Creativity inManagement

Human Resources

Becoming the Company We Want to Be- Capability Targets - ......................................................................................................24
External Evaluation..............................................................................................................26

9

*1 Board Brain (BB)?

Organizational Chart As of April 1, 2023

President

At TRUSCO Nakayama, we call outside directors “Board Brains.”
This term alludes to our hope that they will provide advice and support based on theirabundant experience and knowledge, and contribute to the Company’s development.

AdvisorBorn December 24, 1958
64 years old; 42 years at Trusco
Career Summary
1981: Joined the Company
1984: Director
1987: Executive Director
1991: Representative Director andSenior Executive Director
1994: President (present)

Outside Directors

Born January 16, 1955
68 years old; 45 years at Trusco
Career Summary
1978: Joined the Company
1996: Tokyo Branch Office Manager
1998: General Manager, Corporate Planning Department
1999: Executive Officer & General Manager,
Corporate Planning Division
2003: Executive Officer & General Manager,
Purchasing Division
2004: Division Head, Distribution Dept.
2007: Executive Director & Division Head,
Product Division
Advisor2017: Senior Executive Director & General
Manager, Business Management Department
2019: Senior Executive Director & Assistant to the President
2020: Advisor (present)
Advisor
The position of advisor was established the purpose of providing advice toemployees with the advisor utilizing their knowledge and experience based on
the past achievements of the company.

Takashi Nakai

Born November 15, 1949
73 years old

Born August 19, 1953
69 years old

Born March 5, 1962
61 years old

Career Summary
1975: Joined McKinsey & Company
1996: Founded ForeSight & Company
President (present)
2016: Outside Director of the Company(present)
2017: Founded the Society for Problem
Solving
Representative Director (present)

Career Summary
1976: Joined Hagihara Industries Inc.
1984: President, Hagihara Industries Inc.
2010: President & CEO of Hagihara Industries Inc.
President & Executive Officer
2016: Chairman, Hagihara Industries Inc.
2016: Outside Director of the Company (present)
2018: President of Toyo Heisei Polymer, Co., Ltd.
2020: Outside Director, Wavelock Holdings
Co., Ltd. (present)
2021: Chairman of the Toyo Heisei Polymer, Outside Directors
Board Brain(BB)*1
Co., Ltd.
President,
2022: Chairman, Hagihara Industries Inc.
S.T.CORPORATION
Senior Advisor, Toyo Heisei Polymer,
Co., Ltd. (present)
2023: Senior Advisor, Hagihara Industries Inc.
(present)

Career Summary
1984: Joined Nissan Motor Co., Ltd.
2001: Joined LVJ Group K.K. (currently Louis
Vuitton Japan K.K.)
2009: Representative Director, Shaldan Co., Ltd.
2010: Joined S.T. CORPORATION
2013: Director & Representative Executive
Officer and President, S.T.CORPORATION
Director, Shaldan Co., Ltd. (present)
2020: Outside Director of the Company (present)
2021: Chairman of the Board of Directors, andRepresentative Executive Officer andPresident, S.T.CORPORATION (present)
2022: Outside Director, King Jim Co., Ltd.
(present)

Outside Directors
Board Brain(BB)*1
ForeSight & Company, Ltd.
President

Outside Directors
Board Brain(BB)*1
Senior Advisor,
Hagihara Industries Inc.

Kenichi Saito

Kuniaki Hagihara

Takako Suzuki

General Meeting of Shareholders
Board of Auditors Meeting
Board of Directors Meeting

Internal Auditing
OfficePresident(3 staffs)

President

Tetsuya Nakayama

AuditorFull-time Auditor

Sustainability Committee

Hiroaki Imagawa

Central Health and Safety Committee

Born January 22, 1963
60 years old; 37 years at Trusco

Born January 27, 1947
76 years old

Born October 23, 1955
67 years old

Born August 23, 1979
43 years old

Career Summary
1986: Joined the Company
1996: Office Manager, Maebashi Sales Office
1997: Office Manager, Ota Sales Office
1998: Branch Office Manager, Tokyo Branch
2004: Executive Officer & General Manager, NB Product Division
2007: Director & General Manager, Sales Department
2013: Executive Officer & General Manager,
Factory Sales Division (East Japan)
2016: Executive Officer & General Manager,
Accounting Division
2019: Executive Officer & General Manager, Corporate Planning
Division, and General Manager, Accounting Division
2019: Executive Officer & General Manager, Factory Sales
Division and General Manager, Tokyo Metropolitan
Area Distribution Division
2022: Executive Officer
2022: Full-time Auditor of the Company (present)

Career Summary
1971:Joined Tohmatsu Aoki & Co.
(currently Deloitte Touche Tohmatsu
LLC)
1973: Registered as Certified Public
Accountant
2012: Part-time Auditor, Trusco Nakayama
Corporation (present)Part-time Auditor, Yushin Precision
Equipment Co., Ltd. (present)
2013: Part-time Auditor, Fujio Food System
Co., Ltd. (present)
2018: Part-time Auditor, SymEnergy Inc.
(present)

Career Summary
1978: Joined Tohmatsu Aoki & Co.
(currently Deloitte Touche Tohmatsu
LLC)
1981: Registered as Certified Public
Accountant
1996: Partner, Tohmatsu & Co. (currently
Deloitte Touche Tohmatsu LLC)
2019: Part-time Auditor, Nippon ShokubaiCo., Ltd. (present)
2020: Part-time Auditor, Sekisui House,
Ltd. (present)
2023: Part-time Auditor, Trusco Nakayama
Corporation (present)

Career Summary
2003: Joined Tohmatsu & Co. (currently
Deloitte Touche Tohmatsu LLC)
2007: Registered as Certified Public
Accountant
2007: Representative Director,
Actionlearning Co. Ltd. (present)
2007: Representative, Hineno Certified
Public Accountant Office (present)
2019: Senior Partner, Hineno Accounting
Office (present)
2023: Part-time Auditor, Trusco Nakayama
Corporation (present)Part-time Auditor

Hiroho Kamakura

Part-time Auditor

Yoritomo Wada

Part-time Auditor

Ken Hineno

Department General Manager
Director
General Manager of theBusiness Management
Department and General
Manager of the Digital
Service Strategy Department

Atsushi Kazumi

Born September 10, 1970
52 years old; 30 years at Trusco
Career Summary
1993: Joined the Company
2001: Office Manager, Tsuchiura Sales Office
2002: Office Manager, Kanazawa Sales Office
2006: Branch Office Manager, Osaka Branch
2010: Section Manager, Catalog Media Section and Section Manager, DOTKUL Section
2013: General Manager, e-commerce Sales Division
2014: General Manager, e-Business Sales Division
2017: Executive Officer & Head e-commerce manager, e-Business Sales Division
2017: Executive Officer & General Manager, Information Systems Division
2019: Executive Officer & General Manager, Information Systems Division
2019: Director & General Manager, Information Systems Division
2020: Director, General Manager of the Business Management Department and General Manager of the Digital
Service Strategy Department & General Manager of the Digital Promotion Division
2021: Director, General Manager of the Business Management Department and General Manager of the Digital
Service Strategy Department (present)

Business Management Dept.
Corporate Planning Division

Personnel Division

Director
General Manager of the
Product Division(96 employees in total)*2

Administration Division

Accounting Division

Tatsuya
Nakayama

Digital Service Strategy Department (49 employees in total)
Information Systems Division

Digital Promotion Division

Product Dept.
Tokyo Product Division

Osaka Product Division

Born August 4, 1985
37 years old; 10 years at Trusco
Career Summary
2013: Joined the Company
2018: Branch Office Manager, Internet Sales Tokyo Branch Division 1
2019: General Manager of Corporate Planning Division andAccounting Division
2021: Senior Executive Officer & General Manager, Product Division
2023: Director and General Manager, Product Division (present)

Sales Department
Sales Planning Division/e-Business Sales Division

Director
General Manager,
Distribution Division andGeneral Manager,
Distribution Safety
Promotion Division

Career Summary
1993: Joined the Company
2002: Office Manager, HC Niigata Sales Office
2004: Branch Office Manager, HC Osaka Branch
2008: Section Manager, Personnel Section
2008: Section Manager for the Personnel Section and Health Care Section
2013: General Manager, Corporate Planning Division
2017: Executive Officer & General Manager, Corporate Planning Division
2019: Executive Officer & General Manager, Business Management Department
2019: Director & General Manager, Business Management Department
2020: Director & General Manager, Sales Department
Executive in charge of TRUSCO NAKAYAMA CORPORATION (THAILAND) LIMITED. (present)
Executive in charge of PT. TRUSCO NAKAYAMA INDONESIA (present)
2021: Director, General Manager of the Sales Department, General Manager of the Home Center
Sales Division, and General Manager of the Distribution Division
2022: Director & General Manager, Sales Department (present)

Kazuo Nakai(143 employees in total)

Overseas Product Division

Born July 7, 1969
53 years old; 30 years at Trusco

Director
General Manager of theSales Department

HidekiNaoyoshiHome Center Sales Division

Career Summary
1994: Joined the Company
2003: Branch Office Manager, Amagasaki Sales Office
2007: Branch Office Manager, Kokura Sales Office
2010: Head, Corporate Auditor's Office
2011: Section Manager, Management Planning Section
2013: General Manager, Information Systems Dept.
2017: Executive Officer & General Manager, Information Systems Dept.
2017: Executive Officer & General Manager, Distribution Division
2019: Director & General Manager, Distribution Division
2021: Director, General Manager of the Product Division and General
Manager of Distribution Division
2021: General Manager, Distribution Division
2023: General Manager, Distribution Department and General Managerof the Distribution Safety Promotion Division (present)

Distribution Division(910 employees in total)*2

General Manager, Factory Sales Division (Central Japan)

Born December 7, 1971
51 years old; 29 years at Trusco

Overseas Division

Distribution Reorganization Department

Distribution Safety Promotion Division(1,698 employees in total)

Distribution Division

General Manager of the
Corporate Planning Division

General Manager of the
Personnel Division

General Manager of the Administration Div.
and Manager of the Property Section

General Manager,
Accounting Division

General Manager,
Information Systems Dept.

General Manager,
Digital Promotion Division

General Manager,
Tokyo Product Division

General Manager of the
Osaka Product Division

General Manager,
Overseas Product Division

General Manger, Sales Planning Division andGeneral Manager of the e-Business Sales Division

General Manager, Factory Sales General Manager, Factory Sales General Manager, Factory Sales General Manager, Factory Sales General Manager, Factory Sales General Manager,
Division (East Japan)
Division (Tokyo Metropolitan Area) Division (Central Japan)
Division (Kinki Area)
Division (West Japan)
Home Center Sales Division

General Manager, Overseas Division andSection Manager, Overseas Sales Section

General Manager, Distribution
Reorganization Department

Director General Manager, Distribution Division andGeneral Manager, Distribution Safety Promotion Division

General Manager, East Japan
Distribution Division

General Manager, West Japan
Distribution Division

Born December 25, 1978
44 years old; 21 years at Trusco

Born December 24, 1978
44 years old; 22 years at Trusco

Born September 20, 1969
53 years old; 29 years at Trusco

Born March 27, 1966
57 years old; 4 years and3 months at Trusco

Born June 26, 1973
49 years old; 25 years at Trusco

Born September 21, 1974
48 years old; 25 years at Trusco

Born July 21, 1980
42 years old; 19 years at Trusco

Born February 23, 1976
47 years old; 25 years at Trusco

Born October 16, 1978
44 years old; 19 years at Trusco

Born May 27, 1973
49 years old; 27 years at Trusco

Born February 9, 1962
61 years old; 36 years and4 months at Trusco

Born November 29, 1977
45 years old; 20 years at Trusco

Born August 17, 1976
46 years old; 23 years at Trusco

Born December 7, 1971
51 years old; 29 years at Trusco

Born October 24, 1967
55 years old; 32 years at Trusco

Born April 20, 1975
47 years old; 24 years at Trusco

Atsushi Shimozu
Career Summary
2002: Joined the Company
2011: Branch Office Manager,
Edogawa Branch
2013: Deputy Manager, Management
Planning Section
2014: Section Manager, General
Affairs Section, Osaka Head
Office, Section Manager, Legal
Affairs Section, and Section
Manager, Vehicle Operation
Management Section
2021: Section Manager, Management
Planning Section, and Section
Manager, IR Section
2021: General Manager of the
Corporate Planning
Division, Section Manager,
Management Planning
Section, and Section
Manager, IR Section
2021: General Manager, Corporate
Planning Division (present)
Corporate Planning Dept
Secretarial Section
IR Section
Sustainability Promotion Section(14 employees)

5

Tomoya Kita

Career Summary
2001: Joined the Company
2010: Branch Office Manager,
Kofu Branch
2016: Planet Tokai Logistic Center
Manager
2019: Section Manager, Human
Resources Development
Section, Section Manager,
Secretarial Section, andSection Manager, CSR Section
2021: Section Manager, Human
Resources Development
Section, Section Manager,
Secretarial Section andSection Manager, CSR
Section, and Section
Manager, Recruit Section
2022: General Manager of the
Personnel Division. (present)
Personnel Dept.
HR Support Section
Recruitment Section
Human Resources Development
SectionHealthcare Section(23 employees)

Integrated Report 2023

Mikio Adachi

Career Summary
1994: Joined the Company
2002: Office Manager, HC Nagoya Sales Office
2004: Office Manager, HC Niigata Sales Office
2007: Branch Office Manager, HC Tokyo Branch
2008: Office Manager, Matsudo Sales Office
2011: Planet South Kanto Logistic Center Manager
2013: Planet North Kanto Logistic Center Manager
2016: General Manager, Factory Sales
Division (Central Japan)
2018: General Manager, Factory Sales
Division (Shinshu, Hokuriku, and Tokai)
2019: General Manager, Administration Division
2021: General Manager of the
Administration Div. and Section
Manager, Property Section

Tetsuhiro Mori
Career Summary
2019: Joined the Company
2019: Manager of the Financial
Management Section
2021: General Manager of the
Accounting Division(present)
Accounting Section
Finance Section
19 full-time employees;
1 part-time staff

Tokyo Management Section
Osaka Management Section
Property Dept.
TRUSCO Resort and Spa Hakone
Kyoto Kaguraoka Rengetsuso
TRUSCO Resort and Spa Karuizawa(27 full-time employees; 12 part-time staff)

Takayuki Kimura
Career Summary
1998: Joined the Company
2011: Branch Office Manager,
Yamaguchi Branch
2012: Branch Office Manager,
Ube Branch
2013: Section Manager, Human
Resources Development
Section, Section Manager,
Secretarial Section andSection Manager,
Environmental
Management Section
2019: General Manager,
Information Systems
Division (present)

Atsuhiro Yamanaka
Career Summary
1998: Joined the Company
2008: Branch Office Manager,
Tsuchiura Branch
2012: Branch Office Manager,
South Osaka Branch Office
2018: Section Manager, Sales
Planning Section
2021: General Manager, Digital
Promotion Division(present)
Digital Promotion Division
UX Platform Development Section(11 employees)

IT Planning Section
System Management Section
Infrastructure/Network
Management Section
Data Management Section(38 employees)

Career Summary
1998: Joined the Company
2008: Branch Office Manager,
Kumagaya Branch
2012: Branch Office Manager,
Toyama Branch
2016: Section Manager, Tokyo PB
Product Section andSection Manager, PB
Product Design Section
Tokyo NB Product Section
2021: Deputy General Manager,
Tokyo PB Product Section
Osaka Product Division
PB Product Design Section
Tokyo Supplier Development Dept. 2021: General Manager, Osaka
Product Division and(49 employees)
Section Manager, Orange
Book Section
2022: General Manager, Osaka
Product Division (present)

Career Summary
2004: Joined the Company
2018: Branch Office Manager,
Fukui Branch
2021: Branch Office Manager,
South Osaka Branch2022: General Manager, Tokyo
Product Division (present)

Osaka NB Product Section
Osaka PB Product Section
PB Quality Assurance Dept.
Stock management Section
Osaka Supplier Development Dept.
Product DB Platform Development
OfficeOrange Book Section
Orange Book.com Section
Customer Consulting Section(79 employees)

Trusco Nakayama Health Insurance Association
Manager

Akiko Tani

Born May 6, 1981
41 years old;
10 years at Trusco(2 employees on loan)*2 Includes staff on loan in each figure provided.

Fumiaki Matsubara Koshiro Aoyama Norihiro Higashi

6

Career Summary
2004: Joined the Company
2013: Branch Office Manager,
Koyama Branch
2015: Representative Office
Manager, Germany
Representative Office2022: General Manager, Overseas
Product Division (present)
Overseas Purchase Dept.
Germany officeTaiwan office
Thailand office(15 employees)

Masashi Yamamoto
Career Summary
1996: Joined the Company
2004: Office Manager, Hamamatsu Sales
Office2010: Chief, Corporate Auditor's Office
2010: Section Manager, Administration
Section2014: Planet Tohoku Logistic Center
Manager
2018: General Manager, Tokyo
Metropolitan Area Distribution
Division
2019: General Manager of the Overseas
Division and General Manager,
Marketing Division
2020: General Manager of the e-Business
Sales Division
2022: General Manger, Sales Planning
Division and General Manager,
e-Business Sales Division (present)
Sales Planning Dept.
Market Price Strategy Office
Naojiro Section
MRO Stocker Promotion
Section(10 employees)

InterSales Tokyo
InterSales Osaka
MRO Supply Tokyo(59 full-time employees;
3 part-time staff)

Kiyonori Unto Yoshiki Kimura Yutaka Yoneda Toshiharu Sakai Masatoshi Fujita Shu Matsui
Born September 2, 1980
42 years old; 20 years at Trusco

Born November 6, 1975
47 years old; 24 years at Trusco

Born August 17, 1976
46 years old; 24 years at Trusco

Career Summary
Career Summary
2003: Joined the Company
1986: Joined the Company
2012: Branch Office Manager,
1996: Office Manager, Fukui
Kurume Branch
Sales Office
2015: Branch Office Manager,
2004: Office Manager, Chiba
Tosu Branch
Sales Office
2016: Section Manager, PR
2008: Branch Office Manager,
Section, Section Manager,
Okayama Branch
IR Section, and Section
Manager, Corporate Design
2011: General Manager, Factory
Section
Sales Division (East Japan)
2013: General Manager, Overseas 2017: Section Manager, PR/IR
SectionDivision
2019: General Manager of Factory 2019: Branch Office Manager,
Osaka Branch
Sales Division and East
Japan Distribution Division 2022: General Manager, Factory
Sales Division (Tokyo
2022: General Manager, Factory
Metropolitan Area)
Sales Division (East Japan)(present)(present)

Career Summary
1999: Joined the Company
2005: Office Manager, Shiga
Sales Office
2010: Section Manager,
Recruitment Section
2013: Section Manager,
Management Planning
Section and Section
Manager, Environmental
Management Section
2014: Section Manager,
Management Planning
Section, Section Manager,
Cost Management Section,and Section Manager, Risk
Management Section
2017: General Manager, Tokyo
Product Division (present)
2022: General Manager, Factory
Sales Division (Central
Japan) (present)

Career Summary
Career Summary
1999: Joined the Company
2003: Joined the Company
2008: Office Head, Tottori Office HC 2016: Branch Office Manager,
Miyazaki Branch
2010: Office Manager, Yonago Sales Office
2016: Branch Office Manager,
2011: Chief, Auditor's Office
Utsunomiya Branch
2012: Section Manager, PR Section,
Section Manager, IR Section, 2021: Branch Office Manager,
Komaki Branchand Section Manager,
Corporate Design Section
2022: General Manager, Factory Sales
Division (West Japan) (present)
2016: Branch Office Manager, Tosu Branch
2020: Branch Office Manager, Nagoya Branch
Yonago, Okayama, Hiroshima,
2022: General Manager, Factory
Sales Division (Kinki) (present) Fukuyama, Ube, Shunan, Tokushima,
Takamatsu, Matsuyama, Fukuoka,
Ryuo, Kyoto, Osaka, East Osaka, Kokura, Tosu, Nagasaki, Kumamoto,
Oita, Kagoshima, and Okinawa
South Osaka, Kobe, and Himeji(150 full-time employees;(116 full-time employees;
27 part-time staff)
7 part-time staff)

Sapporo, Hachinohe, Sendai,
Akita, Koriyama, Mito
Utsunomiya, Isezaki, Niigata,
Niigata-kita, Okaya, and Ueda
(142 full-time employees;
23 part-time staff)

Kashima, Omiya, Satte,
Chiba, Matsudo, Tokyo,
Keihin, Atsugi, Shizuoka, and Fuji
(152 full-time employees;
33 part-time staff)

Toyama, Kanazawa, Fukui,
Hamamatsu, Nagoya, Okazaki,
Komaki, and Yokkaichi(118 full-time employees;
26 part-time staff)

The number of employees in parentheses and site information are current as of January 1, 2023.

Born March 10, 1981
42 years old; 20 years at Trusco

Born August 17, 1979
43 years old; 20 years at Trusco
Career Summary
2003: Joined the Company
2012: Branch Office Manager,
Fukui Branch
2015: Branch Office Manager,
HC Tokyo Branch2022: General Manager, Home Center
Sales Division and Branch Office
Manager, HC Tokyo Branch2023: General Manager, Home Center
Sales Division (present)
HC Tokyo and HC Fukuoka
HC Osaka, and HC Okinawa*Holds positions at two locations,
including the Factory Sales Division.
(31 full-time employees;
1 part-time staff)

Overseas Subsidiaries Officer in charge at TRUSCO NAKAYAMA Corporation: Kazuo Nakai
TRUSCO NAKAYAMA CORPORATION
PT. TRUSCO NAKAYAMA INDONESIA(THAILAND) LIMITED
President

President

Kazuaki Harada

Yohei Takuno

Naotsugu Kamijo, Director

Naotsugu Kamijo, Auditor

Born November 8, 1980
42 years old; 20 years at Trusco
Employees: 22(3 employees on loan and
19 local staff)

Born May 16, 1986
36 years old; 13 years at Trusco
Employees: 21(3 employees on loan and
18 local staff)
7

Naotsugu Kamijo

Masaya Okada

Career Summary
2003: Joined the Company
2014: Branch Office Manager,
Kashima Branch
2017: Section Manager, Overseas
Sales Section
2020: General Manager, Overseas
Division and Section
Manager, Overseas Sales
Section2022: General Manager, Overseas
Division
2023: General Manager of theOverseas Division andSection Manager, Overseas
Sales Section (present)

Career Summary
2000: Joined the Company
2008: Section Manager,
Recruitment Section
2010: Branch Office Manager,
Itabashi Branch
2015: Planet Tokai Logistic Center
Manager
2016: Planet Saitama Preparation
Room Manager
2018: Planet Saitama Logistic
Center Manager
2021: General Manager,
Distribution Reorganization
Division (present)

Overseas Sales Dept.
*Overseas subsidiary service
center (6 employees)

Logistics Planning Section
Delivery Management Dept.
Logistics Platform Development
Office and P Aichi Preparation
Office (14 employees)

Hideki Naoyoshi
Career Summary
1994: Joined the Company
2003: Branch Office Manager,
Amagasaki Sales Office
2007: Branch Office Manager,
Kokura Sales Office
2010: Head, Corporate Auditor's Office
2011: Section Manager,
Management Planning Section
2013: General Manager,
Information Systems Dept.
2017: Executive Officer General Manager,
Information Systems Dept.
2017: Executive Officer General Managerof the Distribution Department
2019: Director, General Manager ofthe Distribution Department
2021: General Manager, Distribution
Division and General Manager,
Distribution Division
2021: Director, General Manager ofthe Distribution Department
2023: Director & General
Manager, Distribution
Division and General
Manager, Distribution
Safety Promotion
Department (present)
Distribution Safety Promotion
Section (2 employees)

P (Planet), BUC (Backup Center) and STC (Stock Center) are abbreviations for our distribution centers.

Masato Otani

Takanori Hirayama

Career Summary
1991: Joined the Company
2008: Office Manager, Kagoshima
Sales Office
2012: Branch Office Manager,
Chiba Branch
2014: Section Manager, Personnel
Section and Section Manager,
Health Care Section
2018: General Manager, Factory
Sales Division (Kinki Area)
2019: General Manager ofFactory Sales Division andDistribution Division (Kinki)
2021: General Manager, Factory
Sales Division and General
Manager, Distribution
Division (Chubu, Kinki)
2022: General Manager, East
Japan Distribution Division(present)
P Hokkaido, P Tohoku, P North
Kanto, P Saitama, P East Kanto,
P South Kanto, and Tokyo BUC
HC East Japan Distribution Center
Utsunomiya STC
Koyama STC
Omiya STC
(250 full-time employees;
570 part-time staff)

Career Summary
1999: Joined the Company
2005: Office Manager, Akashi
Sales Office
2010: Section Manager,
IT Planning Section
2015: Branch Office Manager,
e-Business Tokyo Branch No. 1
2016: Branch Office Manager,
Internet Sales Tokyo Branch
Division 1
2018: Section Manager, Personnel
Section and Section Manager,
Health Care Section
2022: General Manager,
West Japan Distribution
Division (present)
P Tokai, P Nagoya, P Shiga, P Osaka,
P Kobe, P Sanyo, and P Kyushu
HC West Japan Distribution Center
HC Kyushu Distribution Center
Okazaki STC Toyohashi STC
East-Osaka STC
Sakai STC(Operations are scheduled to
begin in May 2023)
Nara STC, Okayama STC,
Takamatsu STC, Hakata STC, and(262 full-time employees;
600 part-time staff)

Integrated Report 2023

8

*1 Board Brain (BB)?

Organizational Chart As of April 1, 2023

President

At TRUSCO Nakayama, we call outside directors “Board Brains.”
This term alludes to our hope that they will provide advice and support based on theirabundant experience and knowledge, and contribute to the Company’s development.

AdvisorBorn December 24, 1958
64 years old; 42 years at Trusco
Career Summary
1981: Joined the Company
1984: Director
1987: Executive Director
1991: Representative Director andSenior Executive Director
1994: President (present)

Outside Directors

Born January 16, 1955
68 years old; 45 years at Trusco
Career Summary
1978: Joined the Company
1996: Tokyo Branch Office Manager
1998: General Manager, Corporate Planning Department
1999: Executive Officer & General Manager,
Corporate Planning Division
2003: Executive Officer & General Manager,
Purchasing Division
2004: Division Head, Distribution Dept.
2007: Executive Director & Division Head,
Product Division
Advisor2017: Senior Executive Director & General
Manager, Business Management Department
2019: Senior Executive Director & Assistant to the President
2020: Advisor (present)
Advisor
The position of advisor was established the purpose of providing advice toemployees with the advisor utilizing their knowledge and experience based on
the past achievements of the company.

Takashi Nakai

Born November 15, 1949
73 years old

Born August 19, 1953
69 years old

Born March 5, 1962
61 years old

Career Summary
1975: Joined McKinsey & Company
1996: Founded ForeSight & Company
President (present)
2016: Outside Director of the Company(present)
2017: Founded the Society for Problem
Solving
Representative Director (present)

Career Summary
1976: Joined Hagihara Industries Inc.
1984: President, Hagihara Industries Inc.
2010: President & CEO of Hagihara Industries Inc.
President & Executive Officer
2016: Chairman, Hagihara Industries Inc.
2016: Outside Director of the Company (present)
2018: President of Toyo Heisei Polymer, Co., Ltd.
2020: Outside Director, Wavelock Holdings
Co., Ltd. (present)
2021: Chairman of the Toyo Heisei Polymer, Outside Directors
Board Brain(BB)*1
Co., Ltd.
President,
2022: Chairman, Hagihara Industries Inc.
S.T.CORPORATION
Senior Advisor, Toyo Heisei Polymer,
Co., Ltd. (present)
2023: Senior Advisor, Hagihara Industries Inc.
(present)

Career Summary
1984: Joined Nissan Motor Co., Ltd.
2001: Joined LVJ Group K.K. (currently Louis
Vuitton Japan K.K.)
2009: Representative Director, Shaldan Co., Ltd.
2010: Joined S.T. CORPORATION
2013: Director & Representative Executive
Officer and President, S.T.CORPORATION
Director, Shaldan Co., Ltd. (present)
2020: Outside Director of the Company (present)
2021: Chairman of the Board of Directors, andRepresentative Executive Officer andPresident, S.T.CORPORATION (present)
2022: Outside Director, King Jim Co., Ltd.
(present)

Outside Directors
Board Brain(BB)*1
ForeSight & Company, Ltd.
President

Outside Directors
Board Brain(BB)*1
Senior Advisor,
Hagihara Industries Inc.

Kenichi Saito

Kuniaki Hagihara

Takako Suzuki

General Meeting of Shareholders
Board of Auditors Meeting
Board of Directors Meeting

Internal Auditing
OfficePresident(3 staffs)

President

Tetsuya Nakayama

AuditorFull-time Auditor

Sustainability Committee

Hiroaki Imagawa

Central Health and Safety Committee

Born January 22, 1963
60 years old; 37 years at Trusco

Born January 27, 1947
76 years old

Born October 23, 1955
67 years old

Born August 23, 1979
43 years old

Career Summary
1986: Joined the Company
1996: Office Manager, Maebashi Sales Office
1997: Office Manager, Ota Sales Office
1998: Branch Office Manager, Tokyo Branch
2004: Executive Officer & General Manager, NB Product Division
2007: Director & General Manager, Sales Department
2013: Executive Officer & General Manager,
Factory Sales Division (East Japan)
2016: Executive Officer & General Manager,
Accounting Division
2019: Executive Officer & General Manager, Corporate Planning
Division, and General Manager, Accounting Division
2019: Executive Officer & General Manager, Factory Sales
Division and General Manager, Tokyo Metropolitan
Area Distribution Division
2022: Executive Officer
2022: Full-time Auditor of the Company (present)

Career Summary
1971:Joined Tohmatsu Aoki & Co.
(currently Deloitte Touche Tohmatsu
LLC)
1973: Registered as Certified Public
Accountant
2012: Part-time Auditor, Trusco Nakayama
Corporation (present)Part-time Auditor, Yushin Precision
Equipment Co., Ltd. (present)
2013: Part-time Auditor, Fujio Food System
Co., Ltd. (present)
2018: Part-time Auditor, SymEnergy Inc.
(present)

Career Summary
1978: Joined Tohmatsu Aoki & Co.
(currently Deloitte Touche Tohmatsu
LLC)
1981: Registered as Certified Public
Accountant
1996: Partner, Tohmatsu & Co. (currently
Deloitte Touche Tohmatsu LLC)
2019: Part-time Auditor, Nippon ShokubaiCo., Ltd. (present)
2020: Part-time Auditor, Sekisui House,
Ltd. (present)
2023: Part-time Auditor, Trusco Nakayama
Corporation (present)

Career Summary
2003: Joined Tohmatsu & Co. (currently
Deloitte Touche Tohmatsu LLC)
2007: Registered as Certified Public
Accountant
2007: Representative Director,
Actionlearning Co. Ltd. (present)
2007: Representative, Hineno Certified
Public Accountant Office (present)
2019: Senior Partner, Hineno Accounting
Office (present)
2023: Part-time Auditor, Trusco Nakayama
Corporation (present)Part-time Auditor

Hiroho Kamakura

Part-time Auditor

Yoritomo Wada

Part-time Auditor

Ken Hineno

Department General Manager
Director
General Manager of theBusiness Management
Department and General
Manager of the Digital
Service Strategy Department

Atsushi Kazumi

Born September 10, 1970
52 years old; 30 years at Trusco
Career Summary
1993: Joined the Company
2001: Office Manager, Tsuchiura Sales Office
2002: Office Manager, Kanazawa Sales Office
2006: Branch Office Manager, Osaka Branch
2010: Section Manager, Catalog Media Section and Section Manager, DOTKUL Section
2013: General Manager, e-commerce Sales Division
2014: General Manager, e-Business Sales Division
2017: Executive Officer & Head e-commerce manager, e-Business Sales Division
2017: Executive Officer & General Manager, Information Systems Division
2019: Executive Officer & General Manager, Information Systems Division
2019: Director & General Manager, Information Systems Division
2020: Director, General Manager of the Business Management Department and General Manager of the Digital
Service Strategy Department & General Manager of the Digital Promotion Division
2021: Director, General Manager of the Business Management Department and General Manager of the Digital
Service Strategy Department (present)

Business Management Dept.
Corporate Planning Division

Personnel Division

Director
General Manager of the
Product Division(96 employees in total)*2

Administration Division

Accounting Division

Tatsuya
Nakayama

Digital Service Strategy Department (49 employees in total)
Information Systems Division

Digital Promotion Division

Product Dept.
Tokyo Product Division

Osaka Product Division

Born August 4, 1985
37 years old; 10 years at Trusco
Career Summary
2013: Joined the Company
2018: Branch Office Manager, Internet Sales Tokyo Branch Division 1
2019: General Manager of Corporate Planning Division andAccounting Division
2021: Senior Executive Officer & General Manager, Product Division
2023: Director and General Manager, Product Division (present)

Sales Department
Sales Planning Division/e-Business Sales Division

Director
General Manager,
Distribution Division andGeneral Manager,
Distribution Safety
Promotion Division

Career Summary
1993: Joined the Company
2002: Office Manager, HC Niigata Sales Office
2004: Branch Office Manager, HC Osaka Branch
2008: Section Manager, Personnel Section
2008: Section Manager for the Personnel Section and Health Care Section
2013: General Manager, Corporate Planning Division
2017: Executive Officer & General Manager, Corporate Planning Division
2019: Executive Officer & General Manager, Business Management Department
2019: Director & General Manager, Business Management Department
2020: Director & General Manager, Sales Department
Executive in charge of TRUSCO NAKAYAMA CORPORATION (THAILAND) LIMITED. (present)
Executive in charge of PT. TRUSCO NAKAYAMA INDONESIA (present)
2021: Director, General Manager of the Sales Department, General Manager of the Home Center
Sales Division, and General Manager of the Distribution Division
2022: Director & General Manager, Sales Department (present)

Kazuo Nakai(143 employees in total)

Overseas Product Division

Born July 7, 1969
53 years old; 30 years at Trusco

Director
General Manager of theSales Department

HidekiNaoyoshiHome Center Sales Division

Career Summary
1994: Joined the Company
2003: Branch Office Manager, Amagasaki Sales Office
2007: Branch Office Manager, Kokura Sales Office
2010: Head, Corporate Auditor's Office
2011: Section Manager, Management Planning Section
2013: General Manager, Information Systems Dept.
2017: Executive Officer & General Manager, Information Systems Dept.
2017: Executive Officer & General Manager, Distribution Division
2019: Director & General Manager, Distribution Division
2021: Director, General Manager of the Product Division and General
Manager of Distribution Division
2021: General Manager, Distribution Division
2023: General Manager, Distribution Department and General Managerof the Distribution Safety Promotion Division (present)

Distribution Division(910 employees in total)*2

General Manager, Factory Sales Division (Central Japan)

Born December 7, 1971
51 years old; 29 years at Trusco

Overseas Division

Distribution Reorganization Department

Distribution Safety Promotion Division(1,698 employees in total)

Distribution Division

General Manager of the
Corporate Planning Division

General Manager of the
Personnel Division

General Manager of the Administration Div.
and Manager of the Property Section

General Manager,
Accounting Division

General Manager,
Information Systems Dept.

General Manager,
Digital Promotion Division

General Manager,
Tokyo Product Division

General Manager of the
Osaka Product Division

General Manager,
Overseas Product Division

General Manger, Sales Planning Division andGeneral Manager of the e-Business Sales Division

General Manager, Factory Sales General Manager, Factory Sales General Manager, Factory Sales General Manager, Factory Sales General Manager, Factory Sales General Manager,
Division (East Japan)
Division (Tokyo Metropolitan Area) Division (Central Japan)
Division (Kinki Area)
Division (West Japan)
Home Center Sales Division

General Manager, Overseas Division andSection Manager, Overseas Sales Section

General Manager, Distribution
Reorganization Department

Director General Manager, Distribution Division andGeneral Manager, Distribution Safety Promotion Division

General Manager, East Japan
Distribution Division

General Manager, West Japan
Distribution Division

Born December 25, 1978
44 years old; 21 years at Trusco

Born December 24, 1978
44 years old; 22 years at Trusco

Born September 20, 1969
53 years old; 29 years at Trusco

Born March 27, 1966
57 years old; 4 years and3 months at Trusco

Born June 26, 1973
49 years old; 25 years at Trusco

Born September 21, 1974
48 years old; 25 years at Trusco

Born July 21, 1980
42 years old; 19 years at Trusco

Born February 23, 1976
47 years old; 25 years at Trusco

Born October 16, 1978
44 years old; 19 years at Trusco

Born May 27, 1973
49 years old; 27 years at Trusco

Born February 9, 1962
61 years old; 36 years and4 months at Trusco

Born November 29, 1977
45 years old; 20 years at Trusco

Born August 17, 1976
46 years old; 23 years at Trusco

Born December 7, 1971
51 years old; 29 years at Trusco

Born October 24, 1967
55 years old; 32 years at Trusco

Born April 20, 1975
47 years old; 24 years at Trusco

Atsushi Shimozu
Career Summary
2002: Joined the Company
2011: Branch Office Manager,
Edogawa Branch
2013: Deputy Manager, Management
Planning Section
2014: Section Manager, General
Affairs Section, Osaka Head
Office, Section Manager, Legal
Affairs Section, and Section
Manager, Vehicle Operation
Management Section
2021: Section Manager, Management
Planning Section, and Section
Manager, IR Section
2021: General Manager of the
Corporate Planning
Division, Section Manager,
Management Planning
Section, and Section
Manager, IR Section
2021: General Manager, Corporate
Planning Division (present)
Corporate Planning Dept
Secretarial Section
IR Section
Sustainability Promotion Section(14 employees)

5

Tomoya Kita

Career Summary
2001: Joined the Company
2010: Branch Office Manager,
Kofu Branch
2016: Planet Tokai Logistic Center
Manager
2019: Section Manager, Human
Resources Development
Section, Section Manager,
Secretarial Section, andSection Manager, CSR Section
2021: Section Manager, Human
Resources Development
Section, Section Manager,
Secretarial Section andSection Manager, CSR
Section, and Section
Manager, Recruit Section
2022: General Manager of the
Personnel Division. (present)
Personnel Dept.
HR Support Section
Recruitment Section
Human Resources Development
SectionHealthcare Section(23 employees)

Integrated Report 2023

Mikio Adachi

Career Summary
1994: Joined the Company
2002: Office Manager, HC Nagoya Sales Office
2004: Office Manager, HC Niigata Sales Office
2007: Branch Office Manager, HC Tokyo Branch
2008: Office Manager, Matsudo Sales Office
2011: Planet South Kanto Logistic Center Manager
2013: Planet North Kanto Logistic Center Manager
2016: General Manager, Factory Sales
Division (Central Japan)
2018: General Manager, Factory Sales
Division (Shinshu, Hokuriku, and Tokai)
2019: General Manager, Administration Division
2021: General Manager of the
Administration Div. and Section
Manager, Property Section

Tetsuhiro Mori
Career Summary
2019: Joined the Company
2019: Manager of the Financial
Management Section
2021: General Manager of the
Accounting Division(present)
Accounting Section
Finance Section
19 full-time employees;
1 part-time staff

Tokyo Management Section
Osaka Management Section
Property Dept.
TRUSCO Resort and Spa Hakone
Kyoto Kaguraoka Rengetsuso
TRUSCO Resort and Spa Karuizawa(27 full-time employees; 12 part-time staff)

Takayuki Kimura
Career Summary
1998: Joined the Company
2011: Branch Office Manager,
Yamaguchi Branch
2012: Branch Office Manager,
Ube Branch
2013: Section Manager, Human
Resources Development
Section, Section Manager,
Secretarial Section andSection Manager,
Environmental
Management Section
2019: General Manager,
Information Systems
Division (present)

Atsuhiro Yamanaka
Career Summary
1998: Joined the Company
2008: Branch Office Manager,
Tsuchiura Branch
2012: Branch Office Manager,
South Osaka Branch Office
2018: Section Manager, Sales
Planning Section
2021: General Manager, Digital
Promotion Division(present)
Digital Promotion Division
UX Platform Development Section(11 employees)

IT Planning Section
System Management Section
Infrastructure/Network
Management Section
Data Management Section(38 employees)

Career Summary
1998: Joined the Company
2008: Branch Office Manager,
Kumagaya Branch
2012: Branch Office Manager,
Toyama Branch
2016: Section Manager, Tokyo PB
Product Section andSection Manager, PB
Product Design Section
Tokyo NB Product Section
2021: Deputy General Manager,
Tokyo PB Product Section
Osaka Product Division
PB Product Design Section
Tokyo Supplier Development Dept. 2021: General Manager, Osaka
Product Division and(49 employees)
Section Manager, Orange
Book Section
2022: General Manager, Osaka
Product Division (present)

Career Summary
2004: Joined the Company
2018: Branch Office Manager,
Fukui Branch
2021: Branch Office Manager,
South Osaka Branch2022: General Manager, Tokyo
Product Division (present)

Osaka NB Product Section
Osaka PB Product Section
PB Quality Assurance Dept.
Stock management Section
Osaka Supplier Development Dept.
Product DB Platform Development
OfficeOrange Book Section
Orange Book.com Section
Customer Consulting Section(79 employees)

Trusco Nakayama Health Insurance Association
Manager

Akiko Tani

Born May 6, 1981
41 years old;
10 years at Trusco(2 employees on loan)*2 Includes staff on loan in each figure provided.

Fumiaki Matsubara Koshiro Aoyama Norihiro Higashi

6

Career Summary
2004: Joined the Company
2013: Branch Office Manager,
Koyama Branch
2015: Representative Office
Manager, Germany
Representative Office2022: General Manager, Overseas
Product Division (present)
Overseas Purchase Dept.
Germany officeTaiwan office
Thailand office(15 employees)

Masashi Yamamoto
Career Summary
1996: Joined the Company
2004: Office Manager, Hamamatsu Sales
Office2010: Chief, Corporate Auditor's Office
2010: Section Manager, Administration
Section2014: Planet Tohoku Logistic Center
Manager
2018: General Manager, Tokyo
Metropolitan Area Distribution
Division
2019: General Manager of the Overseas
Division and General Manager,
Marketing Division
2020: General Manager of the e-Business
Sales Division
2022: General Manger, Sales Planning
Division and General Manager,
e-Business Sales Division (present)
Sales Planning Dept.
Market Price Strategy Office
Naojiro Section
MRO Stocker Promotion
Section(10 employees)

InterSales Tokyo
InterSales Osaka
MRO Supply Tokyo(59 full-time employees;
3 part-time staff)

Kiyonori Unto Yoshiki Kimura Yutaka Yoneda Toshiharu Sakai Masatoshi Fujita Shu Matsui
Born September 2, 1980
42 years old; 20 years at Trusco

Born November 6, 1975
47 years old; 24 years at Trusco

Born August 17, 1976
46 years old; 24 years at Trusco

Career Summary
Career Summary
2003: Joined the Company
1986: Joined the Company
2012: Branch Office Manager,
1996: Office Manager, Fukui
Kurume Branch
Sales Office
2015: Branch Office Manager,
2004: Office Manager, Chiba
Tosu Branch
Sales Office
2016: Section Manager, PR
2008: Branch Office Manager,
Section, Section Manager,
Okayama Branch
IR Section, and Section
Manager, Corporate Design
2011: General Manager, Factory
Section
Sales Division (East Japan)
2013: General Manager, Overseas 2017: Section Manager, PR/IR
SectionDivision
2019: General Manager of Factory 2019: Branch Office Manager,
Osaka Branch
Sales Division and East
Japan Distribution Division 2022: General Manager, Factory
Sales Division (Tokyo
2022: General Manager, Factory
Metropolitan Area)
Sales Division (East Japan)(present)(present)

Career Summary
1999: Joined the Company
2005: Office Manager, Shiga
Sales Office
2010: Section Manager,
Recruitment Section
2013: Section Manager,
Management Planning
Section and Section
Manager, Environmental
Management Section
2014: Section Manager,
Management Planning
Section, Section Manager,
Cost Management Section,and Section Manager, Risk
Management Section
2017: General Manager, Tokyo
Product Division (present)
2022: General Manager, Factory
Sales Division (Central
Japan) (present)

Career Summary
Career Summary
1999: Joined the Company
2003: Joined the Company
2008: Office Head, Tottori Office HC 2016: Branch Office Manager,
Miyazaki Branch
2010: Office Manager, Yonago Sales Office
2016: Branch Office Manager,
2011: Chief, Auditor's Office
Utsunomiya Branch
2012: Section Manager, PR Section,
Section Manager, IR Section, 2021: Branch Office Manager,
Komaki Branchand Section Manager,
Corporate Design Section
2022: General Manager, Factory Sales
Division (West Japan) (present)
2016: Branch Office Manager, Tosu Branch
2020: Branch Office Manager, Nagoya Branch
Yonago, Okayama, Hiroshima,
2022: General Manager, Factory
Sales Division (Kinki) (present) Fukuyama, Ube, Shunan, Tokushima,
Takamatsu, Matsuyama, Fukuoka,
Ryuo, Kyoto, Osaka, East Osaka, Kokura, Tosu, Nagasaki, Kumamoto,
Oita, Kagoshima, and Okinawa
South Osaka, Kobe, and Himeji(150 full-time employees;(116 full-time employees;
27 part-time staff)
7 part-time staff)

Sapporo, Hachinohe, Sendai,
Akita, Koriyama, Mito
Utsunomiya, Isezaki, Niigata,
Niigata-kita, Okaya, and Ueda
(142 full-time employees;
23 part-time staff)

Kashima, Omiya, Satte,
Chiba, Matsudo, Tokyo,
Keihin, Atsugi, Shizuoka, and Fuji
(152 full-time employees;
33 part-time staff)

Toyama, Kanazawa, Fukui,
Hamamatsu, Nagoya, Okazaki,
Komaki, and Yokkaichi(118 full-time employees;
26 part-time staff)

The number of employees in parentheses and site information are current as of January 1, 2023.

Born March 10, 1981
42 years old; 20 years at Trusco

Born August 17, 1979
43 years old; 20 years at Trusco
Career Summary
2003: Joined the Company
2012: Branch Office Manager,
Fukui Branch
2015: Branch Office Manager,
HC Tokyo Branch2022: General Manager, Home Center
Sales Division and Branch Office
Manager, HC Tokyo Branch2023: General Manager, Home Center
Sales Division (present)
HC Tokyo and HC Fukuoka
HC Osaka, and HC Okinawa*Holds positions at two locations,
including the Factory Sales Division.
(31 full-time employees;
1 part-time staff)

Overseas Subsidiaries Officer in charge at TRUSCO NAKAYAMA Corporation: Kazuo Nakai
TRUSCO NAKAYAMA CORPORATION
PT. TRUSCO NAKAYAMA INDONESIA(THAILAND) LIMITED
President

President

Kazuaki Harada

Yohei Takuno

Naotsugu Kamijo, Director

Naotsugu Kamijo, Auditor

Born November 8, 1980
42 years old; 20 years at Trusco
Employees: 22(3 employees on loan and
19 local staff)

Born May 16, 1986
36 years old; 13 years at Trusco
Employees: 21(3 employees on loan and
18 local staff)
7

Naotsugu Kamijo

Masaya Okada

Career Summary
2003: Joined the Company
2014: Branch Office Manager,
Kashima Branch
2017: Section Manager, Overseas
Sales Section
2020: General Manager, Overseas
Division and Section
Manager, Overseas Sales
Section2022: General Manager, Overseas
Division
2023: General Manager of theOverseas Division andSection Manager, Overseas
Sales Section (present)

Career Summary
2000: Joined the Company
2008: Section Manager,
Recruitment Section
2010: Branch Office Manager,
Itabashi Branch
2015: Planet Tokai Logistic Center
Manager
2016: Planet Saitama Preparation
Room Manager
2018: Planet Saitama Logistic
Center Manager
2021: General Manager,
Distribution Reorganization
Division (present)

Overseas Sales Dept.
*Overseas subsidiary service
center (6 employees)

Logistics Planning Section
Delivery Management Dept.
Logistics Platform Development
Office and P Aichi Preparation
Office (14 employees)

Hideki Naoyoshi
Career Summary
1994: Joined the Company
2003: Branch Office Manager,
Amagasaki Sales Office
2007: Branch Office Manager,
Kokura Sales Office
2010: Head, Corporate Auditor's Office
2011: Section Manager,
Management Planning Section
2013: General Manager,
Information Systems Dept.
2017: Executive Officer General Manager,
Information Systems Dept.
2017: Executive Officer General Managerof the Distribution Department
2019: Director, General Manager ofthe Distribution Department
2021: General Manager, Distribution
Division and General Manager,
Distribution Division
2021: Director, General Manager ofthe Distribution Department
2023: Director & General
Manager, Distribution
Division and General
Manager, Distribution
Safety Promotion
Department (present)
Distribution Safety Promotion
Section (2 employees)

P (Planet), BUC (Backup Center) and STC (Stock Center) are abbreviations for our distribution centers.

Masato Otani

Takanori Hirayama

Career Summary
1991: Joined the Company
2008: Office Manager, Kagoshima
Sales Office
2012: Branch Office Manager,
Chiba Branch
2014: Section Manager, Personnel
Section and Section Manager,
Health Care Section
2018: General Manager, Factory
Sales Division (Kinki Area)
2019: General Manager ofFactory Sales Division andDistribution Division (Kinki)
2021: General Manager, Factory
Sales Division and General
Manager, Distribution
Division (Chubu, Kinki)
2022: General Manager, East
Japan Distribution Division(present)
P Hokkaido, P Tohoku, P North
Kanto, P Saitama, P East Kanto,
P South Kanto, and Tokyo BUC
HC East Japan Distribution Center
Utsunomiya STC
Koyama STC
Omiya STC
(250 full-time employees;
570 part-time staff)

Career Summary
1999: Joined the Company
2005: Office Manager, Akashi
Sales Office
2010: Section Manager,
IT Planning Section
2015: Branch Office Manager,
e-Business Tokyo Branch No. 1
2016: Branch Office Manager,
Internet Sales Tokyo Branch
Division 1
2018: Section Manager, Personnel
Section and Section Manager,
Health Care Section
2022: General Manager,
West Japan Distribution
Division (present)
P Tokai, P Nagoya, P Shiga, P Osaka,
P Kobe, P Sanyo, and P Kyushu
HC West Japan Distribution Center
HC Kyushu Distribution Center
Okazaki STC Toyohashi STC
East-Osaka STC
Sakai STC(Operations are scheduled to
begin in May 2023)
Nara STC, Okayama STC,
Takamatsu STC, Hakata STC, and(262 full-time employees;
600 part-time staff)

Integrated Report 20238

not increase a company's production, sales, or corporate
strength. I think companies should devise measures for
growth and invest money in them. I think that taking on
various challenges is an ideal form of a company.

Wholesaler-based NIAWASE (Order
Consolidation) and Direct Delivery
Service will contribute to saving the planet

Top Message

Conducting Management
Not Taught ThroughTextbooks
President

Tetsuya Nakayama

The conditions surrounding monodzukuri have changed
drastically, including the continued impact of the Covid-19
pandemic, the trend toward decarbonization, and concerns
about pressure on supply chains and high resource prices
in the wake of Russia's invasion of Ukraine. Under thesecircumstances, in the fiscal year ended December 31, 2022,
amid many procurement issues due to product shortages andother factors, we were able to have more customers takeadvantage of our efforts to increase inventories. As a result,consolidated net sales in the previous fiscal year reached arecord high with $1,760 million (up 8.6% Year on Year).

Becoming a company that continues togrow by thinking outside of the box
If everything in business went just as described in textbooks, the world would be full of successful people. However, the reality is that there are not even a handful but
rather a portion of a handful of people who can be calledsuccessful. Moreover, it seems to me that those who areable to attract success by thinking outside of the box do
not necessarily adhere to what is provided in textbooks.
For example, textbooks teach “the less inventory, the better,” but this concept is based on the logic of the seller.
From the buyer's perspective, they would want it so that
there are a large assortment of products available in large
quantities so that they are never out of stock. In addition,some people emphasize the “stock turnover rate,” whichis also meaningless from the point of view of buyers as it
is just a figure. Although there are many other management indicators, which are all provided from the company’s standpoint, and many of them are not importantfrom the customer's perspective.
10

Integrated Report 2023

In terms of finance, it seems that many people talk about
how a company stacks up with other companies based on
its P/L (Profit and Loss Statement). However, I think theB/S (Balance Sheet) should be used to discuss a company’s true capabilities. With a Profit and Loss Statement,
you can see only sales and profits, but with a Balance
Sheet, you can understand clearly the company’s approach and the direction that it’s headed, how it uses andallocates money, and even how its president thinks.
In addition, “M&A” and “share buybacks” are among
trends in the business world. For us, investment in distribution is our equivalent to M&A (see p.29). Simply put,the idea is that if you build a logistic center, set up shelves,
store inventory, and sell items from inventory, it will havethe same effect as if you had acquired a company that does
the same. A company that aims to grow without relying on
M&A is called an organic company, and we would like tobe such a company that continues to grow. We also have
our own ideas about share buybacks (see p.11). In general,a share buyback is an increase in the per-share index andthe expectation of a rise in stock prices. However, this does

The main growth strategies we are currently focusing on are
our Direct Delivery Service and NIAWASE (Order Consolidation). A wholesaler's job is to deliver products directly to
its customers, and it is the customer's job to deliver products
to users. Without making any changes to this traditional
approach, the repetitive work of receiving orders, packing,and shipping continues. In contrast, our Direct Delivery Service is akin to delivering medicines to patients rather than topharmacies. As many customers used the service last year aswell, it has been well received by the market. (3.55 million
units, up 25.4% from the previous year)
Also, if you order multiple items on the Internet such as helmets and protective equipment, in many cases each item willoften have its own packaging. Users then have to deal withthe hassle of receiving and disposing of cardboard boxes, andmail-order companies are often burdened with freight, packaging materials, and product delivery. However, with our abundant inventory and high-speed distribution equipment capableof NIAWASE (Order Consolidation), products can be placed
together and shipped directly to users in a single package. I
would like us to continue to take on the challenge to make our
Direct Delivery Service and NIAWASE (Order Consolidation), which are highly convenient and contribute to reducing
the environmental burden, standard approaches in the world,and help save the Earth through environmental preservation.

!

ssle

A ha

more
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c
u
M
ient!
n
e
v
n
co

Based on the idea that “every human being takes part in destroying the
global environment,” the company publishes the TRUECO Book (details
on p.62), a pamphlet aimed at changing the mindset of each employee.

Together with Sustainability
Based on the idea that “we aim to be an Earth-friendly
company so that our small, tiny efforts will lead to great
caring in the future,” we have been implementing various
environmental initiatives since 1998, about 25 years ago,
when we adopted the environmental philosophy of “Sustainability” (see p.62 for details). This was more than 25
years ago when the term sustainability became widespread.
We believe that it is important not only to reduce utility
costs and resources required for corporate operations, butalso to design an energy-saving business model by stocking
products, delivering products through fixed-cost based distribution, etc. In recent years, our MRO Stocker (see p.46),
a tool storage system that realizes zero delivery time, andDirect Delivery Service are part of our efforts to create acompany with a low environmental impact caused throughbusiness operations. These are our unique approaches thattake common sense by surprise.
Keeping in mind that the secret to success is never found in
textbooks, I would like to see TRUSCO continue to generate ideas that lead to growth by thinking outside of the box.
Thoughts on share buybacks

Before NIAWASE(Order Consolidation)
Planet Aichi (Kitanagoya City, Aichi) conceptual image (approx. 41,636 ㎡)

After NIAWASE(Order Consolidation)

TRUSCO will perform NIAWASE (Order Consolidation) and then ship
products directly to users, even products that are normally shipped inseparate packages in an unorganized fashion. With our approach, there isno packaging material waste and it is environmentally friendly.

A share buyback is the act of buying back shares issued by acompany with its own funds, and it is one of the measures toreturn profits to shareholders along with dividends. Although
it is expected that a share buyback will temporarily increase
the stock price, it will not lead to an increase in corporate value. In the case of our company, treasury stock is 0.1% of thetotal number of shares issued, and other shares are owned bydomestic and foreign companies and institutional investors (seep.78 for details). We intend to continue to devote our funds
and efforts to the growth of the company by focusing on theessence of issues rather than the issues that lie before us.

Integrated Report 202311

2-5-3 Kumechuo, Shunan City, Yamaguchi

53 Ube Branch

5-395-5 Oaza Nakano Gaisaku, Ube City, Yamaguchi

54 Takamatsu Branch

4001-77 Yoshida, Utazu-cho, Ayauta-gun, Kagawa

42

★
★

55 Takamatsu Stock Center 2-3-1 Asahimachi, Takamatsu City, Kagawa
56 Tokushima Branch

23 Nakahara, Ojin-cho Nakahara, Tokushima City, Tokushima

57 Matsuyama Branch1068-4 Kumanodai, Matsuyama City, Ehime★

58 Kokura Branch

7-1 Kifunemachi, Kokurakita-ku, Kitakyushu City, Fukuoka★
★

2-4-14 Takeshita, Hakata-ku, Fukuoka City, Fukuoka

Planet Kyushu
Tosu Branch

1651 Himekata-machi, Tosu City, Saga★

61

HC Kyushu
Distribution Center

1956-1 Kitanomachinaka, Kurume City, Fukuoka★

45 Kobe Branch

Nakayama Memorial Hall 5F, 2-1-9 Mizuki-dori,Hyogo-ku, Kobe, Hyogo

46 Himeji Branch448-26 Hojo, Himeji City, Hyogo★

Planet Sanyo
Okayama Branch

4-15 Amase, Kita-ku, Okayama City, Okayama★

23-4 Ohashi-machi, Nagasaki City, Nagasaki

48 Okayama Stock Center

2-16-35 Fukunari, Minami-ku, Okayama City, Okayama★

5F Kumamoto Central Bldg. 66-7 Yamasaki-machi, Chuo-ku,
Kumamoto City, Kumamoto

49 Yonago Branch

8-15-14 Yonehara, Yonago City, Tottori★

50 Fukuyama Branch

2-4-13 Akebono-cho, Fukuyama City, Hiroshima★

51 Hiroshima Branch

1-20-1 Naka-Hiromachi, Nishi-ku, Hiroshima City, Hiroshima★

1-3-28 Mukaibara-Higashi, Oita City, Oita★

65 Kagoshima Branch

3-68 Tokai-cho, Kagoshima City, Kagoshima★

66 Okinawa Branch

5F Okinawaken Kensetsu Kaikan 5-6-8 Makiminato,
Urasoe City, Okinawa

63

50

48 47
54 55

57

64

46
45

56

★

4-12 Shinjo-nishi, Higashi-Osaka City,
Osaka

★

41 Sakai Stock Center*

1-5-45 Hamadera Ishizuchohigashi,
Nishi-ku, Sakai City, Osaka

★

27

9

42
37
41
43 40 38

44

8

14

15
16
17
29

25

24

1-1-34 Tanaka-machi, Toyama City, Toyama★

27 Kanazawa Branch

6-15-1 Eki Nishi-Honmachi, Kanazawa City, Ishikawa★

28 Fukui Branch

1-52 Toiya-cho, Fukui City, Fukui★

29 Hamamatsu Branch209-1 Sode-cho, Naka-ku, Hamamatsu City, Shizuoka

23 22

20 18
21
19

(

13
Number of items in inventory

5775

Total number of items in inventory

Metropolitan)

Inventory Value

East Japan★

13 Kashima Branch

3-3-24 Horiwari, Kamisu City, Ibaraki

14 Utsunomiya Stock Center

2-40-3 Shirasagi, Kaminokawamachi, Kawachi-gun, Tochigi ★
1-6-33 Awanomiya, Oyama City, Tochigi★

★

15 Oyama Stock Center

31 Okazaki Stock Center1 Shimoike, Akashibu-cho, Okazaki City, Aichi★

16

Planet Saitama
Satte Branch988-7 Akagi, Shinmeiuchi, Satte City, Saitama★

32 Nagoya Branch

12-26 Ukishima-cho, Mizuho-ku, Nagoya City, Aichi★

17

Omiya Branch
Omiya Stock Center

2039 Nishi-Asuma, Nishi-ku, Saitama City, Saitama★

Planet Nagoya
Komaki Branch

Number of companies that have introduced MRO Stocker

TRUSCO NAKAYAMA CORPORATION (THAILAND) LIMITED
PT. TRUSCO NAKAYAMA INDONESIA
Supplier business development office locations:
Germany, Taiwan, and Thailand

18 Minami-Kubo, Oka-cho, Okazaki City, Aichi

10-1 Kawahigashi, Wada-cho, Konan City, Aichi★

34 Toyohashi Stock Center

33-16 Akemicho, Toyohashi City, Aichi★

35 Yokkaichi Branch

5-4-13 Shinsho, Yokkaichi City, Mie★

Supplier business development office(Overseas Product Division)

Number of Bases

Indonesia

Taiwan office3

Planet East Kanto
18
Matsudo Branch241-1 Kamihongo, Matsudo City, Chiba

19 Chiba Branch

1969-17 Yawatakaigan-dori, Ichihara City, Chiba

Thailand office

Germany office(Düsseldorf)◀ OPEN★
★

Tokyo Head Office
Tokyo Branch
TRUSCO Fiorito Bldg., 4-28-1, Shimbashi,
20 HC Tokyo Branch
Minato-ku, Tokyo
Internet Sales Tokyo Branch
MRO Supply Tokyo Branch★

21 Keihin Branch

2-14-23 Kugahara, Ota-ku, Tokyo★

22 Tokyo Backup Center

3-10-6 Tamachi, Kawasaki-ku, Kawasaki City, Kanagawa ★

Planet South Kanto
Atsugi Branch

1567-1 Takamori, Isehara City, Kanagawa★

24 Fuji Branch251-1 Jubee, Fuji City, Shizuoka★

25 Shizuoka Branch

1-20 Midorigaoka-cho, Suruga-ku, Shizuoka City,
Shizuoka★

23

Jakarta

Integrated Report 2023

628

OPEN ▶

1

Planet Hokkaido
Sapporo Branch

3-4-51 Higashi-Naebo 5-jo, Higashi-ku,
Sapporo City, Hokkaido★

2Hachinohe Branch

1-2-9 Numadate, Hachinohe City, Aomori★

2-1-23 Ogimachi, Miyagino-ku, Sendai City, Miyagi★

Planet Tohoku
3
Sendai Branch
4

Akita Branch

2-41 Sanno-Rinkaimachi, Akita City, Akita★

5

Koriyama Branch

1-23-7 Motomachi, Koriyama City, Fukushima★

6

Mito Branch

1567 Sugaya, Naka City Ibaraki★

7

Utsunomiya Branch

46-11 Hiraide Kogyo Danchi, Utsunomiya City,
Tochigi★

8

Planet North Kanto
Isesaki Branch2739-1 Sanwa-cho, Isesaki City, Gunma★

9

HC East Japan
Distribution Center
Niigata Branch

280 Oaza Shinbo, Sanjo City, Niigata★

10 Niigatakita Branch

2-6-50 Yutaka, Higashi-ku, Niigata City, Niigata★

11 Okaya Branch

2-1-33 Shinmei-cho, Okaya City, Nagano★

12 Ueda Branch

2F Unno-Machi-Kan Ito Bldg. 2-8-11 Chuo,
Ueda City, Nagano

Integrated Report 2023

The Nakayama visually
Corporate Data
impaired welfare foundation

Bangkok

7

Planet Tokai
Okazaki Branch

33(includes 11 Stock Centers)

59

560,000 53,190,000 items $322 million

26 Toyama Branch

30(Branches with inventory: 29)

Overseas Branches

33
35 32

31
30
34

Distribution Centers in Japan

Corporate
Governance

Thailand2

Japan Sales Branches

Environmental
Efforts

2

Head Office3

Sustainability

Number of Bases

10

5

Central Japan

Overseas Subsidiaries

94

4

26

11
36

Bases in Japan

2

12

65

12

758-6 Kamifukawa-cho, Nara City, Nara

East Osaka Stock Center/
40
Higashi Osaka Branch

New Planet Niigata planned forconstruction
Location: Sanjo, Niigata Prefecture
Area of grounds: approx. 26,307 ㎡

39

66

39 Nara Stock Center

1

Human Resources

62

★

2828

51

52

61

755-6 Kamifukawa-cho, Nara City, Nara

Digital Service

60

59

53

HC West Japan
Distribution Center* Operations are scheduled to begin in May 2023

Location where constructionof Planet Aichi is planned
Location: Nagoya, Aichi
Prefecture
Area of grounds: approx.
41,636 ㎡

49
58

3F Trusco Crystal Bldg. 593 Higashi-Shio★
koji-cho, Shimogyo-ku, Kyoto City, Kyoto

★

Sales

64 Oita Branch

37 Kyoto Branch
38

West Japan
47

1140-3 Oguchi, Ryuo-cho, Gamou-gun,
Shiga

Ryuo Branch★

81-1 Ishizu Kitamachi, Sakai-ku, Sakai City, Osaka

36 Planet Shiga

Distribution

63 Kumamoto Branch

Kinki

★

1-3-5 Nakamachi, Minatojima, Chuo-ku, Kobe City, Hyogo ★

44 Planet Kobe

60

62 Nagasaki Branch

Planet Osaka
South Osaka Branch

TRUSCO Glen Check Bldg. 1-34-15
Shinmachi, Nishi-ku, Osaka City, Osaka

Products

Hakata Stock Center
59
Fukuoka Branch

43

Osaka Head OfficeOsaka Branch
HC Osaka BranchInternet Sales Osaka BranchManagement
Policy52 Shunan Branch

Value Creation

Map of Bases As of January 1, 2023 ★ indicates a company-owned property.

17Only some are corporate-owned properties (as of December 31, 2022)❶Area of Grounds ❷Floor Area ❸Start of Operations (Current Building) ❹Number of Employees❺Number of items in inventory ❻Total number of items in inventory ❼Inventory ValueDistribution Centers(Conceptual Image)Planet Aichi

Planet Hokkaido

Head Office
Planet Osaka❶Area of Grounds ❷Floor Area ❸Start of Operations (Current Building) ❹Number of Employees❺Number of items in inventory ❻Total number of items in inventory ❼Inventory Value

Employee Dormitory

Tokyo Head Office (TRUSCO Fiorito Bldg.)

Osaka Head Office (TRUSCO Glen Check Bldg.)

Keihin Branch

Future Osaka Head Office (TRUSCO Central Bldg.)

Fukui Branch

Fuji BranchManagement
PolicyPlanet Shiga

Sapporo City, Hokkaido❶approx. 41,636 ㎡ ❷approx. 89,864 ㎡ ❸Operations are scheduled to begin in July 2026

Planet Saitama

Planet Tohoku

Ryuomachi, Gamou-gun, Shiga❶approx. 11,576 ㎡ ❷approx. 19,593 ㎡ ❸2008❹95 ❺215,000 different products ❻2,133,000 items ❼$13.2 million

HC West Japan Distribution Center

Sakai City, Osaka

Chuo-ku, Osaka City

❶approx. 10,373 ㎡ ❷approx. 20,479 ㎡ ❸2015❹190 ❺341,000 different products ❻3,536,000 items ❼$28.4 million

Planet Kobe

❶approx. 1,034 ㎡ ❷approx. 10,413 ㎡❸New Osaka Head Office is scheduled to be opened in 2024

Planet Kyushu

Fukui City

Fuji City, Shizuoka❶approx. 1,338 ㎡ ❷approx. 2,667 ㎡ ❸2004 ❹30❶approx. 2,119 ㎡ ❷approx. 1,996 ㎡ ❸2007 ❹10❺15,000 different products ❻158,000 items ❼$0.9 million❶approx. 3,249 ㎡ ❷approx. 1,828 ㎡ ❸2017 ❹15❺20,000 different products ❻156,000 items ❼$0.8 million

Shizuoka Branch

Himeji Branch

Fukuyama Branch

TRUSCO'S Kugahara

Ota-ku, Tokyo(Third and Fourth Floors of the
Keihin Branch building)❶approx. 1,338 ㎡❷approx. 2,667 ㎡ (24 rooms)❸2004 ❹16

Distribution❶approx. 23,375 ㎡ ❷approx. 5,507 ㎡ ❸2004 ❹33❺48,000 different products ❻762,000 items ❼$4.5 million

Automated bucket warehouse
Electric moving pallet racks

Automated bucket warehouse
SAS GAS I-Pack® Just fit BOX

Products

Ota-ku, Tokyo
Automated bucket warehouse AutoStore Automated pallet warehouse
Shuttle racks I-Pack® Just fit BOX AMR Automated long pallet warehouse
Load Assorting Station
Kitanagoya City, Aichi

Value Creation

Main Business Locations All company-owned properties

Sales❶approx. 8,287 ㎡ ❷approx. 16,687 ㎡ ❸2005 ❹118
❺173,000 different products ❻2,440,000 items ❼$14.4 million❶approx. 11,328 ㎡ ❷approx. 22,690 ㎡ ❸2015 ❹81❺204,000 different products ❻3,004,000 items ❼$20.2 million

Planet Nagoya

Planet Sanyo

HC East Japan Distribution Center❶approx. 714 ㎡ ❷approx. 5,818 ㎡ ❸2014❹251❶approx. 15,041 ㎡ ❷approx. 28,400 ㎡ ❸2010❹76 ❺189,000 different products ❻3,140,000 items❼$20.0 million

Planet East Kanto

Sanjo City, Niigata

Higashi-Osaka City, Osaka❶approx. 8,618 ㎡ ❷approx. 9,771 ㎡ ❸1994❹95 ❺25,000 different products❻1,774,000 items ❼$7.4 million❶approx. 3,024 ㎡ ❷approx. 8,558 ㎡❸2008/2016/2017 ❺6,000 different products❻599,000 items ❼$4.5 million

Tokyo Backup Center

HC Kyushu Distribution Center

Sakai Stock Center

Isesaki City, Gunma❶approx. 14,680 ㎡ ❷approx. 29,705 ㎡ ❸2006❹175 ❺358,000 different products ❻3,080,000 items ❼$21.3 million

Planet South Kanto

Planet Tokai

Kurume City, Fukuoka❶approx. 3,031 ㎡ ❷approx. 10,694 ㎡❸2013 ❹46 ❺112,000 different products❻1,431,000 items ❼$8.9 million❶approx. 2,509 ㎡ ❷approx. 5,004 ㎡❸2009 ❹17 ❺78,000 different products❻1,474,000 items ❼$15.5 million❶approx. 5,560 ㎡ ❷approx. 5,933 ㎡❸2016/2002 ❹61 ❺17,000 different products❻1,226,000 items ❼$4.8 million

Oyama Stock Center

Utsunomiya Stock Center

Omiya Stock Center

Oyama City, Tochigi

Nara Stock Center❶approx. 12,105 ㎡ ❷approx. 26,062 ㎡ ❸2020❹139 ❺172,000 different products ❻2,370,000 items ❼$15.0 million
13

Integrated Report 2023

Automated bucket warehouse Electric moving pallet racks
SAS GAS I-Pack® Just fit BOX
Okazaki City, Aichi❶approx. 13,666 ㎡ ❷approx. 24,003 ㎡ ❸2008❹153 ❺325,000 different products ❻3,580,000 items ❼$28.7 million❶approx. 165 ㎡❷approx. 1,401 ㎡ (30 rooms)
❸2014
❹26

❶approx. 376 ㎡❷approx. 1,973 ㎡ (36 rooms)
❸2002
❹28

❶approx. 148 ㎡❷approx. 723 ㎡ (21 rooms)
❸2021
❹21

Hiroshima Branch

Matsuyama Branch

Kokura Branch

Hachinohe Branch

Akita Branch

Koriyama Branch❶approx. 1,983 ㎡ ❷approx. 1,001 ㎡ ❸2000 ❹15❺10,000 different products ❻116,000 items ❼$642,857

Kashima Branch

Akita City

Koriyama City, Fukushima❶approx. 6,614 ㎡ ❷approx. 2,191 ㎡ ❸2007 ❹10❺9,000 different products ❻169,000 items ❼$1.0 million❶approx. 3,626 ㎡ ❷approx. 2,730 ㎡ ❸2016 ❹19❺15,000 different products ❻280,000 items ❼$1.4 million

Utsunomiya Branch

Chiba Branch

Toyohashi Stock Center

Nishi-ku, Hiroshima City

Matsuyama City, Ehime

Kokurakita-ku, Kitakyushu City, Fukuoka❶approx. 2,578 ㎡ ❷approx. 4,373 ㎡ ❸2012 ❹17❺23,000 different products ❻282,000 items ❼$1.5 million❶approx. 1,692 ㎡ ❷approx. 998 ㎡ ❸2000 ❹12❺14,000 different products ❻107,000 items ❼$642,857❶approx. 2,201 ㎡ ❷approx. 2,036 ㎡ ❸2004 ❹18❺15,000 different products ❻178,000 items ❼$0.9 million

Oita Branch

Nagoya Branch

Yokkaichi Branch

Oita City

Nara City❶approx. 9,798 ㎡ ❷approx. 2,866 ㎡❸2017 ❺354 ❻500,000 items❼$2.7 million
14

Kaminokawamachi,
Kawachi-gun, Tochigi❶approx. 1,877 ㎡ ❷approx. 872 ㎡❸2019 ❺29 ❻48,000 items❼$428,571

Okayama Stock Center

Minami-ku, Okayama City

❶approx. 1,685 ㎡ ❷approx. 2,274 ㎡❸2017 ❺411 ❻51,000 items❼$571,428

Nishi-ku, Saitama City, Saitama❶approx. 1,652 ㎡ ❷approx. 1,371 ㎡❸2021 ❺105 ❻21,000 items❼$428,571

Takamatsu Stock Center

Takamatsu City, Kagawa❶approx. 8,413 ㎡ ❷approx. 5,864 ㎡❸2019 ❺1,000 different products❻1,272,000 items ❼$5.5 million

Toyohashi City, Aichi❶approx. 9,900 ㎡ ❷approx. 6,856 ㎡❸2019 ❺3,000 different products❻1,951,000 items ❼$5.7 million

Hakata Stock Center

Hakata-ku, Fukuoka City

❶approx. 3,867 ㎡ ❷approx. 7,609 ㎡❸2016/2002 ❺1,000 different products❻502,000 items ❼$2.5 million

Kamisu City, Ibaraki

Utsunomiya City, Tochigi

Ichihara City, Chiba❶approx. 2,000 ㎡ ❷approx. 2,290 ㎡ ❸2016 ❹12❺21,000 different products ❻203,000 items ❼$1.7 million❶approx. 3,312 ㎡ ❷approx. 1,474 ㎡ ❸2009 ❹14❺11,000 different products ❻245,000 items ❼$0.8 million❶approx. 2,254 ㎡ ❷approx. 2,717 ㎡ ❸2011 ❹20❺22,000 different products ❻251,000 items ❼$1.8 million

Niigatakita Branch

Toyama Branch

Yokkaichi City, Mie
Mizuho-ku, Nagoya City, Aichi❶approx. 2,545 ㎡ ❷approx. 2,433 ㎡ ❸2017 ❹11❺16,000 different products ❻156,000 items ❼$1.0 million❶approx. 1,824 ㎡ ❷approx. 3,123 ㎡ ❸1998 ❹31❶approx. 1,292 ㎡ ❷approx. 2,323 ㎡ ❸1990 ❹19❺16,000 different products ❻173,000 items ❼$0.9 million

Kyoto Branch

Takamatsu Branch

Kagoshima Branch

Shimogyo-ku, Kyoto City

❶approx. 4,690 ㎡ ❷approx. 3,166 ㎡❸2019 ❺2,000 different products❻163,000 items ❼$2.5 million

Automated bucket warehouse AutoStore Electric moving pallet racks
DAS Shuttle racks
Isehara City, Kanagawa❶approx. 3,302 ㎡ ❷approx. 4,641 ㎡

TRUSCO’S Ayase*The currently held land and building will be transferred to a third party by
December 28, 2024 for the relocation of the Osaka head office.

BranchHachinohe City, Aomori
Nishi-ku, Sakai City, Osaka

TRUSCO’S Osaka❶approx. 2,604 ㎡ ❷approx. 2,386 ㎡ ❸2009 ❹10❺16,000 different products ❻241,000 items ❼$0.9 million❶approx. 360 ㎡ ❷approx. 2,707 ㎡ ❸2009 ❹11Utazu Town, Kagawa

Kagoshima City

❶approx. 2,631 ㎡ ❷approx. 2,885 ㎡ ❸1992 ❹14❺13,000 different products ❻118,000 items ❼$642,857❶approx. 991 ㎡ ❷approx. 1,120 ㎡ ❸1989 ❹11❺7,000 different products ❻52,000 items ❼$357,142

The Nakayama visually
Corporate Data
impaired welfare foundation❶approx. 33,057 ㎡ ❷approx. 25,438 ㎡ ❸2007❹100 ❺197,000 different products ❻2,281,000 items ❼$14.7 million

Kawasaki City, Kanagawa❶approx. 948 ㎡ ❷approx. 8,426 ㎡ ❸2004❹178

TRUSCO’S Shinbashi❶approx. 2,638 ㎡ ❷approx. 2,406 ㎡ ❸2011 ❹15❺19,000 different products ❻203,000 items ❼$1.1 million

Corporate
Governance

Automated pallet warehouse
AutoStore Just fit BOX

Kita-ku, Okayama City

Nishi-ku, Osaka City

Adachi-ku, Tokyo❶approx. 2,085 ㎡ ❷approx. 1,795 ㎡ ❸2012 ❹16❺16,000 different products ❻131,000 items ❼$642,857

Environmental
Efforts

Konan City, Aichi❶approx. 5,626 ㎡ ❷approx. 8,122 ㎡❸1998 ❹41 ❺57,000 different products❻877,000 items ❼$4.7 million

Electric moving pallet racks

Automated bucket warehouse Automated pallet warehouse
Electric moving pallet racks
Shuttle racks GAS Just fit BOX
Matsudo City, Chiba

Minato-ku, Tokyo

East Osaka Stock Center

Minato-ku, Tokyo

Fukuyama City, Hiroshima

Sustainability

Planet North Kanto❶approx. 9,900 ㎡ ❷approx. 10,016 ㎡ ❸1992 ❹78❺27,000 different products ❻2,311,000 items ❼$10.3 million

Higashi-Osaka
City, Osaka

Himeji City, Hyogo

Human Resources❶approx. 47,262 ㎡ ❷approx. 42,694 ㎡ ❸2018❹188 ❺513,000 different products ❻6,470,000 items ❼$52.3 million

Tosu City, Saga

Suruga-ku, Shizuoka City

Digital Service

Automated bucket warehouse AutoStore Automated pallet warehouse Butler®
Electric moving pallet racks AGV SAS GAS I-Pack® Just fit BOX
Palletizing Robots AMR
Satte City, Saitama

Automated bucket warehouse
AutoStore SAS GAS Butler® I-Pack®
Just fit BOX
Miyagino-ku, Sendai City, Miyagi

Nara City

Automated bucket warehouse
Electric moving pallet racks SAS GASJust fit BOX
Chuo-ku, Kobe City, Hyogo

Company-owned Recreation/Training Facility
TRUSCO Resort and Spa Hakone

TRUSCO Resort and Spa Karuizawa

Kyoto Kaguraoka Rengetsuso

Kanazawa Branch

Higashi-ku, Niigata City

Toyama City

Kanazawa City, Ishikawa

Hakone Town,
Ashigarashimo-gun, Kanagawa

Town of Karuizawa,
Kitasaku-gun, Nagano

Sakyo-ku, Kyoto City

❶approx. 1,890 ㎡ ❷approx. 1,057 ㎡ ❸2009 ❹10❺10,000 different products ❻144,000 items ❼$0.7 million❶approx. 1,633 ㎡ ❷approx. 2,000 ㎡ ❸1991 ❹15❺14,000 different products ❻170,000 items ❼$1.0 million❶approx. 2,429 ㎡ ❷approx. 2,469 ㎡ ❸2004 ❹17❺27,000 different products ❻350,000 items ❼$1.8 million❶approx. 9,084 ㎡ ❷approx. 2,307 ㎡ ❸2011 ❹4❶approx. 10,621 ㎡ ❷approx. 1,983 ㎡ ❸2021 ❹3❶approx. 1,758 ㎡ ❷approx. 1,603 ㎡ ❸2018 ❹4

15Integrated Report 2023

16

Only some are corporate-owned properties (as of December 31, 2022)❶Area of Grounds ❷Floor Area ❸Start of Operations (Current Building) ❹Number of Employees❺Number of items in inventory ❻Total number of items in inventory ❼Inventory ValueDistribution Centers(Conceptual Image)Planet Aichi

Planet Hokkaido

Head Office
Planet Osaka❶Area of Grounds ❷Floor Area ❸Start of Operations (Current Building) ❹Number of Employees❺Number of items in inventory ❻Total number of items in inventory ❼Inventory Value

Employee Dormitory

Tokyo Head Office (TRUSCO Fiorito Bldg.)

Osaka Head Office (TRUSCO Glen Check Bldg.)

Keihin Branch

Future Osaka Head Office (TRUSCO Central Bldg.)

Fukui Branch

Fuji BranchManagement
PolicyPlanet Shiga

Sapporo City, Hokkaido❶approx. 41,636 ㎡ ❷approx. 89,864 ㎡ ❸Operations are scheduled to begin in July 2026

Planet Saitama

Planet Tohoku

Ryuomachi, Gamou-gun, Shiga❶approx. 11,576 ㎡ ❷approx. 19,593 ㎡ ❸2008❹95 ❺215,000 different products ❻2,133,000 items ❼$13.2 million

HC West Japan Distribution Center

Sakai City, Osaka

Chuo-ku, Osaka City

❶approx. 10,373 ㎡ ❷approx. 20,479 ㎡ ❸2015❹190 ❺341,000 different products ❻3,536,000 items ❼$28.4 million

Planet Kobe

❶approx. 1,034 ㎡ ❷approx. 10,413 ㎡❸New Osaka Head Office is scheduled to be opened in 2024

Planet Kyushu

Fukui City

Fuji City, Shizuoka❶approx. 1,338 ㎡ ❷approx. 2,667 ㎡ ❸2004 ❹30❶approx. 2,119 ㎡ ❷approx. 1,996 ㎡ ❸2007 ❹10❺15,000 different products ❻158,000 items ❼$0.9 million❶approx. 3,249 ㎡ ❷approx. 1,828 ㎡ ❸2017 ❹15❺20,000 different products ❻156,000 items ❼$0.8 million

Shizuoka Branch

Himeji Branch

Fukuyama Branch

TRUSCO'S Kugahara

Ota-ku, Tokyo(Third and Fourth Floors of the
Keihin Branch building)❶approx. 1,338 ㎡❷approx. 2,667 ㎡ (24 rooms)❸2004 ❹16

Distribution❶approx. 23,375 ㎡ ❷approx. 5,507 ㎡ ❸2004 ❹33❺48,000 different products ❻762,000 items ❼$4.5 million

Automated bucket warehouse
Electric moving pallet racks

Automated bucket warehouse
SAS GAS I-Pack® Just fit BOX

Products

Ota-ku, Tokyo
Automated bucket warehouse AutoStore Automated pallet warehouse
Shuttle racks I-Pack® Just fit BOX AMR Automated long pallet warehouse
Load Assorting Station
Kitanagoya City, Aichi

Value Creation

Main Business Locations All company-owned properties

Sales❶approx. 8,287 ㎡ ❷approx. 16,687 ㎡ ❸2005 ❹118
❺173,000 different products ❻2,440,000 items ❼$14.4 million❶approx. 11,328 ㎡ ❷approx. 22,690 ㎡ ❸2015 ❹81❺204,000 different products ❻3,004,000 items ❼$20.2 million

Planet Nagoya

Planet Sanyo

HC East Japan Distribution Center❶approx. 714 ㎡ ❷approx. 5,818 ㎡ ❸2014❹251❶approx. 15,041 ㎡ ❷approx. 28,400 ㎡ ❸2010❹76 ❺189,000 different products ❻3,140,000 items❼$20.0 million

Planet East Kanto

Sanjo City, Niigata

Higashi-Osaka City, Osaka❶approx. 8,618 ㎡ ❷approx. 9,771 ㎡ ❸1994❹95 ❺25,000 different products❻1,774,000 items ❼$7.4 million❶approx. 3,024 ㎡ ❷approx. 8,558 ㎡❸2008/2016/2017 ❺6,000 different products❻599,000 items ❼$4.5 million

Tokyo Backup Center

HC Kyushu Distribution Center

Sakai Stock Center

Isesaki City, Gunma❶approx. 14,680 ㎡ ❷approx. 29,705 ㎡ ❸2006❹175 ❺358,000 different products ❻3,080,000 items ❼$21.3 million

Planet South Kanto

Planet Tokai

Kurume City, Fukuoka❶approx. 3,031 ㎡ ❷approx. 10,694 ㎡❸2013 ❹46 ❺112,000 different products❻1,431,000 items ❼$8.9 million❶approx. 2,509 ㎡ ❷approx. 5,004 ㎡❸2009 ❹17 ❺78,000 different products❻1,474,000 items ❼$15.5 million❶approx. 5,560 ㎡ ❷approx. 5,933 ㎡❸2016/2002 ❹61 ❺17,000 different products❻1,226,000 items ❼$4.8 million

Oyama Stock Center

Utsunomiya Stock Center

Omiya Stock Center

Oyama City, Tochigi

Nara Stock Center❶approx. 12,105 ㎡ ❷approx. 26,062 ㎡ ❸2020❹139 ❺172,000 different products ❻2,370,000 items ❼$15.0 million
13

Integrated Report 2023

Automated bucket warehouse Electric moving pallet racks
SAS GAS I-Pack® Just fit BOX
Okazaki City, Aichi❶approx. 13,666 ㎡ ❷approx. 24,003 ㎡ ❸2008❹153 ❺325,000 different products ❻3,580,000 items ❼$28.7 million❶approx. 165 ㎡❷approx. 1,401 ㎡ (30 rooms)
❸2014
❹26

❶approx. 376 ㎡❷approx. 1,973 ㎡ (36 rooms)
❸2002
❹28

❶approx. 148 ㎡❷approx. 723 ㎡ (21 rooms)
❸2021
❹21

Hiroshima Branch

Matsuyama Branch

Kokura Branch

Hachinohe Branch

Akita Branch

Koriyama Branch❶approx. 1,983 ㎡ ❷approx. 1,001 ㎡ ❸2000 ❹15❺10,000 different products ❻116,000 items ❼$642,857

Kashima Branch

Akita City

Koriyama City, Fukushima❶approx. 6,614 ㎡ ❷approx. 2,191 ㎡ ❸2007 ❹10❺9,000 different products ❻169,000 items ❼$1.0 million❶approx. 3,626 ㎡ ❷approx. 2,730 ㎡ ❸2016 ❹19❺15,000 different products ❻280,000 items ❼$1.4 million

Utsunomiya Branch

Chiba Branch

Toyohashi Stock Center

Nishi-ku, Hiroshima City

Matsuyama City, Ehime

Kokurakita-ku, Kitakyushu City, Fukuoka❶approx. 2,578 ㎡ ❷approx. 4,373 ㎡ ❸2012 ❹17❺23,000 different products ❻282,000 items ❼$1.5 million❶approx. 1,692 ㎡ ❷approx. 998 ㎡ ❸2000 ❹12❺14,000 different products ❻107,000 items ❼$642,857❶approx. 2,201 ㎡ ❷approx. 2,036 ㎡ ❸2004 ❹18❺15,000 different products ❻178,000 items ❼$0.9 million

Oita Branch

Nagoya Branch

Yokkaichi Branch

Oita City

Nara City❶approx. 9,798 ㎡ ❷approx. 2,866 ㎡❸2017 ❺354 ❻500,000 items❼$2.7 million
14

Kaminokawamachi,
Kawachi-gun, Tochigi❶approx. 1,877 ㎡ ❷approx. 872 ㎡❸2019 ❺29 ❻48,000 items❼$428,571

Okayama Stock Center

Minami-ku, Okayama City

❶approx. 1,685 ㎡ ❷approx. 2,274 ㎡❸2017 ❺411 ❻51,000 items❼$571,428

Nishi-ku, Saitama City, Saitama❶approx. 1,652 ㎡ ❷approx. 1,371 ㎡❸2021 ❺105 ❻21,000 items❼$428,571

Takamatsu Stock Center

Takamatsu City, Kagawa❶approx. 8,413 ㎡ ❷approx. 5,864 ㎡❸2019 ❺1,000 different products❻1,272,000 items ❼$5.5 million

Toyohashi City, Aichi❶approx. 9,900 ㎡ ❷approx. 6,856 ㎡❸2019 ❺3,000 different products❻1,951,000 items ❼$5.7 million

Hakata Stock Center

Hakata-ku, Fukuoka City

❶approx. 3,867 ㎡ ❷approx. 7,609 ㎡❸2016/2002 ❺1,000 different products❻502,000 items ❼$2.5 million

Kamisu City, Ibaraki

Utsunomiya City, Tochigi

Ichihara City, Chiba❶approx. 2,000 ㎡ ❷approx. 2,290 ㎡ ❸2016 ❹12❺21,000 different products ❻203,000 items ❼$1.7 million❶approx. 3,312 ㎡ ❷approx. 1,474 ㎡ ❸2009 ❹14❺11,000 different products ❻245,000 items ❼$0.8 million❶approx. 2,254 ㎡ ❷approx. 2,717 ㎡ ❸2011 ❹20❺22,000 different products ❻251,000 items ❼$1.8 million

Niigatakita Branch

Toyama Branch

Yokkaichi City, Mie
Mizuho-ku, Nagoya City, Aichi❶approx. 2,545 ㎡ ❷approx. 2,433 ㎡ ❸2017 ❹11❺16,000 different products ❻156,000 items ❼$1.0 million❶approx. 1,824 ㎡ ❷approx. 3,123 ㎡ ❸1998 ❹31❶approx. 1,292 ㎡ ❷approx. 2,323 ㎡ ❸1990 ❹19❺16,000 different products ❻173,000 items ❼$0.9 million

Kyoto Branch

Takamatsu Branch

Kagoshima Branch

Shimogyo-ku, Kyoto City

❶approx. 4,690 ㎡ ❷approx. 3,166 ㎡❸2019 ❺2,000 different products❻163,000 items ❼$2.5 million

Automated bucket warehouse AutoStore Electric moving pallet racks
DAS Shuttle racks
Isehara City, Kanagawa❶approx. 3,302 ㎡ ❷approx. 4,641 ㎡

TRUSCO’S Ayase*The currently held land and building will be transferred to a third party by
December 28, 2024 for the relocation of the Osaka head office.

BranchHachinohe City, Aomori
Nishi-ku, Sakai City, Osaka

TRUSCO’S Osaka❶approx. 2,604 ㎡ ❷approx. 2,386 ㎡ ❸2009 ❹10❺16,000 different products ❻241,000 items ❼$0.9 million❶approx. 360 ㎡ ❷approx. 2,707 ㎡ ❸2009 ❹11Utazu Town, Kagawa

Kagoshima City

❶approx. 2,631 ㎡ ❷approx. 2,885 ㎡ ❸1992 ❹14❺13,000 different products ❻118,000 items ❼$642,857❶approx. 991 ㎡ ❷approx. 1,120 ㎡ ❸1989 ❹11❺7,000 different products ❻52,000 items ❼$357,142

The Nakayama visually
Corporate Data
impaired welfare foundation❶approx. 33,057 ㎡ ❷approx. 25,438 ㎡ ❸2007❹100 ❺197,000 different products ❻2,281,000 items ❼$14.7 million

Kawasaki City, Kanagawa❶approx. 948 ㎡ ❷approx. 8,426 ㎡ ❸2004❹178

TRUSCO’S Shinbashi❶approx. 2,638 ㎡ ❷approx. 2,406 ㎡ ❸2011 ❹15❺19,000 different products ❻203,000 items ❼$1.1 million

Corporate
Governance

Automated pallet warehouse
AutoStore Just fit BOX

Kita-ku, Okayama City

Nishi-ku, Osaka City

Adachi-ku, Tokyo❶approx. 2,085 ㎡ ❷approx. 1,795 ㎡ ❸2012 ❹16❺16,000 different products ❻131,000 items ❼$642,857

Environmental
Efforts

Konan City, Aichi❶approx. 5,626 ㎡ ❷approx. 8,122 ㎡❸1998 ❹41 ❺57,000 different products❻877,000 items ❼$4.7 million

Electric moving pallet racks

Automated bucket warehouse Automated pallet warehouse
Electric moving pallet racks
Shuttle racks GAS Just fit BOX
Matsudo City, Chiba

Minato-ku, Tokyo

East Osaka Stock Center

Minato-ku, Tokyo

Fukuyama City, Hiroshima

Sustainability

Planet North Kanto❶approx. 9,900 ㎡ ❷approx. 10,016 ㎡ ❸1992 ❹78❺27,000 different products ❻2,311,000 items ❼$10.3 million

Higashi-Osaka
City, Osaka

Himeji City, Hyogo

Human Resources❶approx. 47,262 ㎡ ❷approx. 42,694 ㎡ ❸2018❹188 ❺513,000 different products ❻6,470,000 items ❼$52.3 million

Tosu City, Saga

Suruga-ku, Shizuoka City

Digital Service

Automated bucket warehouse AutoStore Automated pallet warehouse Butler®
Electric moving pallet racks AGV SAS GAS I-Pack® Just fit BOX
Palletizing Robots AMR
Satte City, Saitama

Automated bucket warehouse
AutoStore SAS GAS Butler® I-Pack®
Just fit BOX
Miyagino-ku, Sendai City, Miyagi

Nara City

Automated bucket warehouse
Electric moving pallet racks SAS GASJust fit BOX
Chuo-ku, Kobe City, Hyogo

Company-owned Recreation/Training Facility
TRUSCO Resort and Spa Hakone

TRUSCO Resort and Spa Karuizawa

Kyoto Kaguraoka Rengetsuso

Kanazawa Branch

Higashi-ku, Niigata City

Toyama City

Kanazawa City, Ishikawa

Hakone Town,
Ashigarashimo-gun, Kanagawa

Town of Karuizawa,
Kitasaku-gun, Nagano

Sakyo-ku, Kyoto City

❶approx. 1,890 ㎡ ❷approx. 1,057 ㎡ ❸2009 ❹10❺10,000 different products ❻144,000 items ❼$0.7 million❶approx. 1,633 ㎡ ❷approx. 2,000 ㎡ ❸1991 ❹15❺14,000 different products ❻170,000 items ❼$1.0 million❶approx. 2,429 ㎡ ❷approx. 2,469 ㎡ ❸2004 ❹17❺27,000 different products ❻350,000 items ❼$1.8 million❶approx. 9,084 ㎡ ❷approx. 2,307 ㎡ ❸2011 ❹4❶approx. 10,621 ㎡ ❷approx. 1,983 ㎡ ❸2021 ❹3❶approx. 1,758 ㎡ ❷approx. 1,603 ㎡ ❸2018 ❹4

15Integrated Report 2023

16

Company Overview As of December 31, 2022
Company name■Head store

Trusco Fiorito Bldg. 4-28-1, Shimbashi , Minato-ku, Tokyo■

Head Offices

Tokyo Head Office: Trusco Fiorito Bldg., 4-28-1, Shimbashi, Minato-ku, Tokyo 105-0004 (registered ascompoany head office)Osaka Head Office: Trusco Glen Check Bldg., 1-34-15, Shinmachi, Nishi-ku, Osaka City, Osaka 550-0013■

Branches

Japan: 89 (2 head offices, 59 sales branches, and 28 distribution centers)
Overseas: 5 (Names of our overseas subsidiaries: TRUSCO NAKAYAMA CORPORATION (THAILAND)
LIMITED, PT.TRUSCO NAKAYAMA INDONESIA; Supplier business development officelocations: Germany, Taiwan, and Thailand)(as of January 1, 2023)■

Capital$35 million; Listed on the First Section of the Tokyo Stock Exchange (Securities code: 9830)

TRUSCO NAKAYAMA Corporation■ Shareholders’ equity ratio

67.1% (as of December 31, 2022)■

Employees

Consolidated: 2,954 (10 officers, 1,639 full-time employees; 1,305 part-time staff)■

FoundedMay 15, 1959■

EstablishedMarch 2, 1964

■ Closing date for fiscal year

December 31

■

Sales

Consolidated: $1,760 million (for Fiscal Year Ending December 31, 2022)/Sales of $1,893 million
planned for Fiscal Year Ending December 31, 2023■

Ordinary Income

Consolidated: $107 million (for Fiscal Year Ending December 31, 2022)/Ordinary Income of $114 million
planned for Fiscal Year Ending December 31, 2023

■

Bank

Mizuho Bank, Resona Bank, Bank of Tokyo-Mitsubishi UFJ, Sumitomo Mitsui Banking, Sumitomo Trust & Banking
Deloitte Touche Tohmatsu LLC■

RatingSingle A (Rating and Investment Information, Inc.)■

Suppliers

3,272 (2,943 suppliers in Japan, 329 overseas suppliers)■

Customers

Dealers of machine tools, construction materials, electrical materials, tubing materials, online shops, andhome centers etc.; about 5,575 customers■

Business Areas

Wholesale of PRO TOOLs (subsidiary equipment used at factories) including machine tools, distribution
equipment, environmental safety equipment, along with the planning and development of the productsof company’s own brand TRUSCO

Officers“Business must serve people and society”

To Achieve “Our Ambitions”(Value Creation)■ Accounting Auditor■

18

Our Policy■

Founded as a latecomer to the industry,
thinking outside the box has been our core approach from the start.
We have provided a variety of services to meet the needs ofour customers and the manufacturing industry of the times.
In the future, we will continue to aim to be a company that always provides the highest level ofconvenience in order to continue to be of service to the manufacturing industry in Japan,
based on our belief that business must serve people and society.

Business Flow..............................................................................................................................................................................................................

Helping People and Society - Value Creation Model -.............................................................

20
22

As of April 1, 2023
President

Tetsuya Nakayama

Full-time Auditor

Hiroaki Imagawa

Director

Kazuo Nakai (General Manager of theSales Department)

Part-time Auditor

Hiroho Kamakura

Part-time Auditor

Yoritomo Wada

Director

Atsushi Kazumi (General Managerof the Business Management
Department and Digital Service
Strategy Department)

Part-time Auditor

Ken Hineno

Director

Hideki Naoyoshi (General Managerof the Distribution Department andGeneral Manager of the Distribution
Safety Promotion Division)

Director

Tatsuya Nakayama (General Managerof the Product Department)

Outside Directors

Kenichi Saito
ForeSight & Company, Ltd.
President(

24............................................................................................................................................................................................

26

External Evaluation)

Outside Directors

Kuniaki Hagihara(Senior Advisor, Hagihara Industries Inc.)

Outside Directors

Takako Suzuki(President, S.T.CORPORATION)

Integrated Report 2023..........................

Becoming the Company We Want to Be - Capability Targets -Integrated Report 2023

19

Plugging into TRUSCO to start doing business with us

Customers[Manufacturers][Sales Agents][Wholesale]
Consolidated

Sales Total

P.72

Products(A circulation of TRUSCO Orange Book
published 180,000 )Suppliers in Japan●

Product Data
(Available TRUSCO Orange Book Items:
3,160,000 items(+281 Year-on-Year)

Distribution(Fixed-Cost Based Distribution with 2 runs a day)●(+25 Year-on-Year)●

Ireland, America, United
Kingdom, Italy, Israel, India,
Estonia, Austria,
Netherlands, Canada,
Greece, Singapore,
Switzerland, Sweden, Spain,
Sri Lanka, Slovakia,
Thailand, Czech Republic,
Denmark, Germany, New
Zealand, France, Vietnam,
Belgium, Poland, Portugal,
Malaysia, Norway, South
Korea, Taiwan, and China

As of December 31, 2022

Integrated Report 2023

Sales: $368 million
Constitution ratio: 20.9%
No. of Companies: 198

Real Time Data Linkage (Products and Sales)● Big Data Utilization
Sales: Approx. 130,000 daily
Estimates: Approx. 30,000 daily

Online Shops

etc.

Manufacturing Industry,
General Consumers, etc.

Home center route

Constitution ratio: 9.0%●

Manufacturing Industry,
Construction-related Businesses, etc.

We deliver PRO TOOL to factories and general consumers through online shops.

Sales

Digital Service

These customers handle welding
materials, welding machines, andhigh-pressure gas products.
etc.

(e-commerce/electronic purchases)

We sell products to basic consumers
through home centers and pro shops.

Sales Branches in Japan: 59*● Number of overseas sales branches: 2● More sales channels that normallyfound in the industry● One-stop Ordering

Welding Material Dealers

e-Business Route

Number of Units delivered via Direct Delivery Service
3,550,000 units 4,370,000 orders per year

As of December 31, 2022
*As of January 2023
20

No. of Companies: 4,861

These customers handle equipment andsecondary materials that are used byfactories in the manufacturing industry.

Sales: $158 million

No. of Companies: 108

Home Center
Pro Shops
These retailers focus on sales of
PRO TOOLs products for outdoor use.

The Nakayama visually
Corporate Data
impaired welfare foundation

32 Countries/Regions
329 companies●

Sales: $1,218 million
Constitution ratio: 69.2%

Machinery Tool Dealers

Corporate
GovernanceSuppliers Overseas

Number of delivery runs: 278(TRUSCO delivery runs included in above: 116 (41.7%))

We deliver PRO TOOL to factories, construction
sites and other manufacturing sites throughmachinery tool dealers, etc.

Environmental
Efforts

Logistic Centers in Japan: 28*● Same-day Delivery●

Factory RouteSustainability

2,943 companies(+48 Year-on-Year)

Human Resources

Number of different products in inventory(560,000 products, 53,190,000, $322 million)● Catalog Listings●

5,575 companies

Digital Service

Plugging into TRUSCO will easily
allow you to utilize our resources∞

Unlimited
Sales$1,760 million(+306 Year-on-Year)

Users

Distribution

Suppliers

3,272 companies

services. Customers can centrally procure products from3,272 suppliers and can also utilize functions such as sameday delivery and user-direct delivery services to expand theirown businesses. We will continue to pursue further convenience for our customers and suppliers by optimizing the
distribution of PRO TOOLs.

Products

Customers and suppliers can easily access our management
resources and use them for their businesses in a way thatsuits their characteristics and business type. In addition to
the ability to sell their products to 5,575 customers, suppliers
can also receive a wide range of sales support services suchas product data linkage, inventory holding, and catalog listingManagement
Policy

TRUSCO NAKAYAMA is a specialized trading company that procures PRO TOOL from suppliers and sells them tomachinery tool dealers, Online shopping, home centers, and other customers. We ensure prompt, smooth and reliable delivery to manufacturing sites all over Japan. As a wholesaler, we have developed a unique business model toimprove the convenience of our customers, suppliers, and users.

Value Creation

Business Flow

Outdoor Work, General Consumers, etc.

Overseas Route
Delivering products to manufacturing sites around the world.

Sales: $15 million

Overseas Dealers

No. of Companies: 408

Japanese and non-Japanesecustomers that carry machinery
tools outside of Japan.

Constitution ratio: 0.9%

Overseas Manufacturing Industry, etc.

As of December 31, 2022

Integrated Report 2023

21

Helping People and Society

Respond (Human capital/Social capital)

Connecting (Digital capital)

Support (Product capital/Nature capital/Social capital)•Stock Hit Rate: 91.7% (+0.4 pt year on year)•Automated Estimate Ratio: 22.6 % (+4.4 pt year on year)

As of December 31, 2022

through a cycle

P
T
U
T
U
O

Business Activities

P.30

Solving issues throughout the entire supply chain
with our unique product lineup and product data

Distribution Strategy P.40

Sales Strategy

Accelerating distribution innovation utilizing people
and systems in pursuit of ultimate type of
immediate delivery that no one has yet experienced

Aiming to become a supplier that is needed by ourcustomers by accurately identifying their changing
needs

P.44

Digital Service Strategy P.50

Human Resources Strategy P.54

Sustainability

To respond to the unchanging customer demandthrough our digital capabilities.

To become a company that continues to provide
support regardless of the times with our people(originality) as a starting point

Being a trusted company through our uniquegovernance system, environmental initiatives, andhighly transparent information dissemination

Integrated Report 2023

P.61

Material Issue

P.63•Total optimization of the supply chain•Planning and development of products that
respond to diversifying needs•Development of environments and humanresources to enable them to fully display theirpersonal abilities•Environmental actions through businessactivities•Contribution to stakeholders and local
communities•Governance based on a stance ofShushazentaku (choosing the proper action)

Integrated Report 2023

The Nakayama visually
Corporate Data
impaired welfare foundation

22

Product Strategy

E
TCO M

Corporate
GovernanceS
SIN E S
Society/Local Environment

Environmental
Efforts

OU

Digital Capabilities

Contribution

BU

Sustainability

Business must serve
people and society

Abundant line-up and inventory

Courteous, Polite, and Reliable

Human Resources

Our Policy

Never Changing Our Principles (Unchanging demands of the market)
Convincing prices•Renewable Energy Power Self-sufficiency Rate: 16.4%•Naojiro Repair Service Sales: $12 million•Number of Companies Appearing on “TRUSCO unknown gulliver” (TV program): 239
As of December 31, 2022

Digital Service

Aim for sustainable growth

Although common sense sometimes changes, our principles remain unchanged.
Rapid, reliable delivery(Social capital/Nature capital)•Delivery Lead Time: 20 hrs. 10 min. 4 sec.

Common sense might change but
our principles remain unchanged
High-level of convenience

Social and Environmental Value Creation•System order intake ratio: 85.2% (-0.1 pt year on year)•Shareholders’ equity ratio: 67.1% •Rating: Single A (R&I)•Trusco Power Generation Installations: 19•Number of shareholders: 15,466•Turnover rate: 4.8%
•Percentage of female employees among full-time employees: 35.2%•Retirement age: Managerial retirement age: 62
Full-time staff retirement age: 65
Employment extension: 70 Part-time staff: 75(Distribution capital, Intellectual capital, and Digital capital)(Officers: 10 / Full-time staff: 1,639 / Part-time Staff: 1,305)

U
P
T
N
I

•Digital Expenditures (most recent three periods) $17 million•Number of systems: 60 •Product Data Number: 5,500,000 items•Number of system connected companies: 11,855 companies•Ordinary income (consolidated): $107 million •Dividends: $0.28

Improving Convenience•Employees: Consolidated 2,954•Number of Customer Companies: 5,575•Sales (consolidated): $1,760 million

Sales

Management resources•TRUSCO Orange Book: Approx. 180,000 (2023 edition, total number published)•Available TRUSCO Orange Book Items: 3,160,000 items•Logistic Centers in Japan: 28 locations •Branches with inventory: 29 locations•Number of total delivery runs: 278 vehicles (TRUSCO delivery runs included inabove:116 vehicles, 41.7%)

A workplace where various humanresources can flourish (Human capital)

Financial Results (Financial capital)

Communicate (Intellectual capital)

Distribution

Deliver (Distribution capital)

P.24

Products•Number of items in inventory: 560,000 items•Inventory Value: $322 million (Consolidated) •Total number of items in inventory: 53,190,000 items•Total Number of suppliers: 3,272 companies (Overseas:329 companies)(Capability Targets)

Results

Stock (Product capital/Social capital)

Becoming the Company We Want to Be

Management
PolicyAs a Pro Tools supplier, we aim to be an indispensable
company for Japanese “monodzukuri” sites by heightening our ability to supply PRO TOOLs and providing
convenience for our customers.

Value Creation

GAMBARE!! JAPANESE MONODZUKURI- Value Creation Model -We want to be of service to the manufacturing industry in Japan thatalways provides the highest level of convenience regardless of the times.
Therefore, we strive to be a company that always
provides the highest level of convenience.

23

To become a company that will be able tostore one million items in inventory by 2030

To become a company capable ofreceiving orders 24 hours a day andshipping products 365 days a year08

Scan the QR code for information
about the initiative

Digital Service

Offering an abundant line-up and inventory to select from has led to therealization of one-stop shopping, which results in lower consumption ofenergy and resources for procurement (see p.66). In addition, by establishing a fixed-cost based distribution system (see p.41), delivery is madeusing a fixed amount of energy regardless of the delivery volume without
incurring costs for each individual delivery as with express home delivery
services. In addition, by expanding our Direct Delivery Service (see p.46)
and number of MRO Stocker (see p.46) locations, we aim to become acompany with a small environmental burden.

In June 2021, we announced an industry-academia collaboration with
National University Corporation Tokai National Higher Education and Research System, Nagoya University and capital and business alliances withGROUND Inc. and Cinnamon Inc. at a press conference. We hope to build
a strong partnership that includes not only business but also mutual exchange of human resources. At the same time as the TRUSCO HACOBUne
project started, the three departments of the new product data platform,
UX platform, and logistics platform will play the core role in minimizing
lead time (labor and inefficient use of time) from the point when users
need a product to when they receive it. We aim to realize services thatfurther improve the convenience of our customers.
By building “TRUSCO HACOBUne”, a new distribution platform, we aim tofurther accelerate digital transformation (DX) (Trusco DX2.0) in the future,
which will include the utilization of AI and robots.

Sales

With an eye on improving convenience for our customers and increasing
the number of product shipments in the future, we will establish a systemthat enables us to receive orders 24 hours a day and ship products 365
days a year. Planet South Kanto, which was rebuilt and put into operationin August 2020, is equipped with an underground parking lot with a highceiling that allows delivery trucks to enter. Facilities will be designed toallow loading and unloading even at night.

To become a company with a minimal
environmental burden

To become a “platform holder” that
supports manufacturing in Japan

Distribution

We are working on expanding the number of items in our inventory andstrengthening our distribution system to improve customer convenience.
At Planet Aichi, which is planned for construction, we will build a state-ofthe-art distribution system based on a different approach to distribution
to establish a system which will allow us to store one million items ininventory by 2030.

02

We believe that “immediate delivery is the greatest service” and havebeen working to strengthen our distribution system. In the future, we will
aim to shorten lead time, the time from when an order is received to product delivery (20 hrs., 10 min., and 4 sec. as of December 31st, 2022), by
analyzing each order. We will address issues that emerge by visualizing
what immediate delivery is and establish a system capable of realizing the“fastest,” “shortest,” and “best” deliveries in the industry.

10

Products

01

To become a company capable ofrealizing the “fastest,” “shortest,” and“best” deliveries in the industry

Management
PolicyWe believe that in order to constantly provide the highest level of convenience as a unique company, our priority
should be capability targets, which tell us the types of capabilities that we should possess as a company, rather
than to numerical targets such as sales and profit figures. In order to become a company that is needed by ourcustomers and society during any era, we have set the following goals and will continue to work on achieving them.

07

Value Creation

Becoming the Company We Want to Be - Capability Targets -Human Resources(Inventory variance rate as of December 31, 2022: 0.43%)

Taking inventory of 560,000 items is a time-consuming and labor-intensive process. For this reason, the Inventory Abolition Committee has been
established within the company to eliminate the need for inventory work in
the future. We are working to improve systems and operations to achieve
this goal.

24

Integrated Report 2023

06

To become a company that is also
actively involved in the recycling, reuse,
and return of tools and equipment(Naojiro Repair Workshops results for FY2022: $12 million)

Our Naojiro Repair Workshops, which have been in operation since 1998,
provide unique services designed to help reduce the environmental burden
and cut costs by prolonging the use of familiar tools and equipment (seep.47). In addition to re-grinding and calibration, Naojiro Repair Workshops
offer a wide range of services, including tape processing.

To become a company capable of quickly
providing estimates

11

To become a company capable ofrewriting the accepted practices,
customs, accepted opinions, andconventions of the industry

The Nakayama visually
Corporate Data
impaired welfare foundation04

To become a company that never has totake inventory

In general, it is common practice in the industry to deliver products thatwholesalers receive orders for from customers to users via those customers. However, in addition to long delivery times, the products need
to be reshipped and repackaged, placing a burden on the environment.
In contrast, since products are shipped directly to the users when using
our Direct Delivery Service, delivery times, packaging material amounts,
shipping costs, and the environmental burden can all be reduced by half.
We will make our Direct Delivery Service common practice and associate
it with environmental conservation (see p.46).

09

From left to right: Seiichi Matsuo (President of Tokai National Higher Education and Research System), Miku Hirano (CEO of Cinnamon Inc.), Tetsuya
Nakayama (President of TRUSCO NAKAYAMA Corporation), and Hiratomo
Miyata (President & CEO of GROUND Inc.)(At the 55th Anniversary Hall on the 3rd floor of the Tokyo Head Office of
TRUSCO NAKAYAMA Corporation)

Corporate
Governance

We will expand the number of different products in inventory and move
forward with creating a system for appropriate stocking made possible
through the use of AI to prevent shortages from occurring. In addition, themajority of order and shipping errors occur when people are involved in
the process. Through the adoption of robotics and AI, we are moving forward with automation and labor reduction, creating a system that is free oforder and shipping based errors.

05

To become a company that can Direct
Delivery Service as a wholesaler

Introducing MRO Stocker at manufacturing sites throughout Japan

Environmental
Efforts

03

To become a company where products arealways in stock and that never experiences
order or shipping based errors

Planet South Kanto (Isehara City, Kanagawa)

Sustainability

Planet Aichi (Kitanagoya City, Aichi) conceptual image (approx. 41,636 ㎡)

As a latecomer to the industry, we have developed our business by thinking outside the box. The starting point that continues to generate corporate vitality and growth is the idea that choosing majority solutions resultsin ordinary results. We will continue to solve various problems with ideasthat take common sense by surprise, capable of rewriting the customs,
accepted opinions, and conventions of the industry.

(Automated estimate ratio as of December 31, 2022: 22.6%)

The adoption of an AI-based quotation system in January 2020 allows us torespond to each of the 30,000 quotation requests received from our customers each day with a minimum reply time of five seconds. As of December
31, 2022, our automated estimate ratio is 22.6%. We are improving systemaccuracy so that this ratio can be increased to 34.0% by 2025.

Chain sling repair is handled at each distribution center (Mai Takeda, Planet
North Kanto)

Integrated Report 2023

25

External Evaluation(some award winners as well as honorifics have been omitted)

2017“Best IR Award for Encouragement” recipient(Sponsor: Japan Investor Relations Association)
Details can

The openness of TRUSCO's top management was reflected in
be found by
the company's level of disclosure, and TRUSCO was recognized scanning thefor its efforts to disclose information in an early and fair man- QR code above.
ner, including proactive dissemination of useful information to investors, as well
as for its enhancement of ESG information and activities for individual investors.

Companies receiving the award in 2017
“IR Grand Prix” recipients“Best IR Award for EncourageKomatsu Ltd.
ment” recipients
Shionogi & Co., Ltd.
TRUSCO NAKAYAMA Corporation
Recruit Holdings Co., Ltd.

Be an Ultimate Master Wholesale

2018“Porter Prize” recipient(Sponsor: Hitotsubashi University Graduate School ofInternational Corporate Strategy (ICS))

Details canbe found by
scanning the
QR code above.

The company's unique inventory expansion strategy andlogistics system have earned the trust of customers, who
say “TRUSCO has it in stock.” The company's unique efforts to improve
convenience without appealing to sales price were highly evaluated.
2020(Management Policy)

Companies receiving the award in 2018
TRUSCO NAKAYAMA Corporation
Hoken No Madoguchi Group Inc.,
MonotaRO Co., Ltd.
RIZAP GROUP Inc.

2021

Selected as a “DX Stocks 2020” company Selected as a “DX Stocks 2021” company
2022“DX Grand Prix 2020” recipient(Sponsors: Ministry of Economy, Trade andSelected as a “DX Stocks 2022” company
Industry (METI) and the Tokyo Stock Exchange)“Intuition and assumptions can sometimes lead to fatal mistakes. We want
to use the data analysis and utilization as a foundation for moving forward
to the next stage.” In addition to this awareness by top management, thecompany was highly evaluated for converting data analysis into creative
services by utilizing AI and other technologies.
FY2020We believe that the source of competitiveness for an organization is
its originality and we are placing it at the root of our management strategy.
TRUSCO continues to promote the improvement of convenience for our customers andenhancement of the environment and systems that allow our employees to work with peace ofmind over the long term. Setting our own management indicators for each strategy,
we will continue to aim to be a company that always meets the demands of the manufacturing sites.

Details canbe found by
scanning the
QR code above.

“DX Grand Prix 2020” recipients
TRUSCO NAKAYAMA Corporation Komatsu Ltd.

............................................

28

Financial Strategy - A Company with Assets -..........................................................................................

29

Product Strategy.......................................................................................................................................................................................................

30

Management Policy - Be an Ultimate Master Wholesale -Companies selected as a “DX Stocks” companies for three consecutive years
TRUSCO NAKAYAMA Corporation, Bridgestone Corporation, and six other companies

FY2021

Information Technology Award “IT Grand Prize” Recipient(Digital Transformation category)(Sponsor: Japan Institute of Information Technology)

Details canbe found by
TRUSCO was recognized for the high level of results it has scanning the
QR code above.

achieved by improving the efficiency of the entire industry
through the development of IT systems and for improving operational efficiency throughout the supply chain and business reform through the establishment of various mechanisms, including the automation of quotations using AI.

2020 “IT Grand Prize” Recipients(Digital Transformation category): Trusco Nakayama Corporation
Customer/Business Functions category: All Nippon Airways Co., Ltd.
Social Problem Solving category: Kochi Prefecture (prefectural
government).........................................................................................................................................................................................

40................................................................................................................................................................................................................

44

Distribution Strategy

Sales Strategy

2021

Digital Transformation Certification(Sponsor: Ministry of Economy, Trade and Industry (METI))

TRUSCO was recognized for its internal operation reforms
and improving the convenience of the entire supply chain
through the use of digital technology.

Details canbe found by
scanning the
QR code above.

Companies that have received
DX Certification
TRUSCO NAKAYAMA Corporation
Fujitsu Limited
YAMATO HOLDINGS CO., LTD.
etc.

Digital Service Strategy.............................................................................................................................................................................

Human Resources Strategy...............................................................................................................................................................

50
54

2023

Good Career Company Award 2022 Grand Prize(Sponsor: Ministry of Health, Labour and Welfare)

The company's efforts to (1) Create an environment where each employee is listened to through the establishment of a new HR Support Section
and the operation of a talent management system, and (2) to create apersonnel system that follows up on each employee's career development
through regular job rotations, were highly evaluated.
26

Integrated Report 2023

Details canbe found by
scanning the
QR code above.

Good Career Company Award 2022 Grand Prize recipients
TRUSCO NAKAYAMA Corporation, Megmilk Snow Brand Co., Ltd., etc.
Integrated Report 2023

27

TRUSCO’s Strengths

We must be able to secure important assets
without relying on others.

Total number of items in inventory: 53,190,000 items
Total number of suppliers: 3,272 suppliers (329 overseas suppliers)×

Distribution centers in Japan: 28 Number of delivery runs: 278(TRUSCO delivery runs included in above: 116 (41.7%))

59 sales branches in Japan, 2 overseas subsidiaries
Number of business partners: 5,575; Number of sales accounts: 31,614

P.44(10 officers, 1,639 full-time employees, 1,305 part-time staff)

P.54

P.50

●Abundant line-up andinventory●Courteous, Polite, andReliable×Management
Indicators Important
to Customers

Shareholders’ equity ratio: 67.1%, R&I Rating: “Single A”

A financial statement that everyone can understand For the 60th term (as of December 31, 2022) (consolidated)
Income Item

Expense ItemThe year-on-year comparison is shown in the parentheses.

Factory Route

Cost of Goods Sold

$1,387 million (+8.4%)

e-Business Route$368 million (+16.2%)(gross margin)$372 million (+9.4%)

Home Center Route$158 million (+20.7%)

Selling, general andadministrative expenses$267 million (+8.1%)

Overseas RouteNon-operating
income$4 million (-22.5%)

Non-operating costs$1 million (-4.6%)

Ordinary Income
Net income
before tax
Corporate tax

Net Income$107 million (+11.1%)$108

million (-10.1%)$33 million (-13.8%)$75 million (-8.4%)

Integrated Report 2023
Integrated Report

202 1$1,218 million (+5.1%)$35 million

Intangible fixed assets

Retained Earnings$31 million$1,007 million

etc.

etc.

Total assets

Liabilities/Net assets$1,608 million$15 million (+24.4%)

In general, there is a tendency to actively conduct mergers and acquisitions toincrease the size of a company. For us, however, investments in distribution is
our equivalent to M&A. We believe that active investment in distribution, suchas the construction of distribution centers and the introduction of distribution
equipment, will have the same effect as acquiring a distribution company. This

$1,608 million

60th term (2022) Balance Sheet(Shareholders’ equity ratio: 67.1%)

is because we can provide the value of instant delivery and stable supply of
professional tools to manufacturing sites by having abundant inventory, justlike our suppliers. By holding a $322 million inventory and actively investing in
logistics, we believe that we are achieving the same effect as M&A would haveas an investment that increases added value over the long term.

Changes in Total Assets
TRUSCO invests in merchandise (products) and fixed assets, continuing to put the concept“a company with assets” in practice in order to increase total assets.

1,608

714

533
Main breakdown of selling, general and administrative expenses
Salaries, bonuses, benefits and welfare costs $109 million· Employee salaries and bonuses$78 million (non-consolidated parent) (+5.1％)%· Part-time salaries and bonuses$18 million (non-consolidated parent) (+15.1%) etc.

(+7.0%)

41.0

Depreciation
Factors for decrease$47 million (-3.8%)

17.8% · P South KantoReconstruction of building and material handling -$657 thousand

40th term 41st term 42nd term 43rd term 44th term 45th term 46th term 47th term 48th term

49th term

50th term 51st term 52nd term 53rd term

54th term

55th term(2003)(2012)(2013)(2016)(2017)(2004)

Shipping expenses and packing costs $54 million (+12.5%)

20.4% · Shipping expenses $40 million (+15.6％)· Third-party delivery company fees $10 million (+0.1%) etc.

Other products$55 million (+18.6%)

20.8% · Payment Fees $18 million (+13.7％)*· Taxes and public charges $10 million (+2.7％) etc.

(2005)(2006)(2007)(2008)(Unit: Million USD)

LiquidAssets397
Fixed
assets136

80
Tangible 112
Intangible 1
Other Investments 21

Total assets(2009)(2010)(2011)(2014/3)(2014/12)(2015)
9-monthfinancial results(Unit: Million USD)

Included
Merchandise(products)· P TohokuReconstruction of building and material handling -$614 thousand etc.

* Extraordinary income of $24 million from the sale of land was recorded for the 59th fiscal year ended December 31, 2021.

28
68

Capital:$696 million

Total Liabilities
151

Net Worth381

533 Total Liabilities/Net assets 533

40th term (2003) Balance Sheet

371

144

Fixed
assetsTangible 314

342

58th term

59th term

60th term(2020)(2021)(2022)

Total Liabilities 126

Included
Merchandise(products)

LiquidAssetsNet Worth587

Intangible 13
Other Investments 13

Total assets

56th term(Unit: Million USD)

Included
Merchandise(products)

LiquidAssets57th term(2018)(2019)
Consolidated
Accounting Started

714 Total Liabilities/Net assets 714

50th term (2013) Balance Sheet

854

322

Fixed
assetsTangible 695

753

Total Liabilities
530

Net Worth
1,078

Intangible 30
Other Investments 25

Total assets

1,608 Total Liabilities/Net assets 1,608

60th term (2022) Balance Sheet

Integrated Report 2023 29
Integrated Report 2
02 1 6 9

The Nakayama visually
Corporate Data
impaired welfare foundation$104 million (+12.8%)

Tangible fixed assets

Corporate
Governance$1,760 million (+8.6%)

Operating income$1,078 million

Environmental
Efforts

Sales

Gross profit margin

Net Worth

Investments in distribution is our equivalent to M&A

Consolidated Sales by Segment

The year-on-year comparison is shown in the parentheses.

$178 million etc.

Sustainability

P.29

Long-term
Debt

Fixed assets

To Achieve “Our Ambitions” (Value Creation), we strategically improve the oureffectiveness through digital technology. In the future, we will build a new
distribution platform called TRUSCO HACOBUne to provide the highest level ofconvenience to the entire supply chain (p.25).

Stock hit rate: 91.7%
Delivery lead time:
20 hrs., 10 min., 4 sec.

$200 million

etc.

$753 million

Capability Target 2: Completion of user direct delivery system
Digital Service
Strategy｜Becoming
Capability
Target 3: Ability
to receive and ship ordersthe
365company
days a years
we want to be by utilizing digital technology (p.51)●Digital Capabilities

A Company With Assets
Financial Market
capitalization: $959 million , Total assets: $1,608 million, Net assets: $1,078 million,$323 million

Our distribution facilities and material handling equipment account for about
60% of the Target$695 million
in tangible
assets.
We arealso promoting logisCapability
1: Ability
to storefixed
500,000
items
in inventory
tics DX to improve efficiency in warehouses and delivery speed.

●Convincing prices

Fixed Liabilities

Merchandise (products)

Distribution Strategy｜Realizing the “fastest,” “shortest,” and “best” deliveries in the business (p.41)●Rapid, reliable delivery

etc.

$225 million

Of our $854 million in liquid assets, $322 million was invested in inventory assets(products). We provide value to our customers by reassuring them that “Trusco has it.”●High-level of convenience

Digital Expenditures:$17 million(last three periods)

Accounts Receivable

Product Strategy｜Bringing Together a Full
Line-up of PRO TOOLs (p.31)

TRUSCO provides
products and services
that are valuable toour customers.

Becoming theCompany We Want
to Be by Utilizing
Digital Technology$281 million

Human Resources

Human Individual growth for the growth of the company
Resources Number of employees: 2,954

×Provided Value

Digital Service$134 million$71 million
Long-term loans
due within one year $71 million
Short-term
Debt

Digital Service

Solving Problems for Customers

Sales

×

)

Accounts
PayableCash and deposits

Sales

Realizing the “fastest,” “shortest,” and“best” deliveries in the business

P.40

( ∞

$329 million$854 million

We believe that owning our own distribution centers, branch offices,
data centers, and vehicles, which serve as the main arteries of corporate
management, will bring the greatest benefits. This is why were are placing importance on the idea of TRUSCO being “Having assets on ourown”. Instead of aiming for short-term profits, we take the perspectiveof long-term corporate value enhancement and promote the strategic
strengthening of financial foundation, which leads to greater conveniencefor our customers. Since 2016, we have maintained a rating of “Single A”
by Rating and Investment Information, Inc., and by raising funds with aneye to the future and continuing to proactively make capital investments,
we are providing our customers with higher value-added services.

Distribution

Bringing together a full line-up of PRO TOOLs

Products
Products Number of different products in inventory: 560,000
Distribution

Unlimited(5,575)(3,272)

(P.0)
P.30

Users

Customers

Suppliers

Current Liabilities

Liquid Assets

Products

In order to be a company that continues to be of service to Japanese manufacturing regardless of era, we are streamlining andoptimizing the entire Product Dept. supply by executing five strategies for the following: products, distribution, sales, digital service, and human resources. The overall strategy is supported by our financial foundation (see p.29) based on being “a company
with assets” which has been built through consistently providing customers with a variety of values, including high convenience.

Management
PolicyFinancial Strategy - A Company with Assets -Value Creation

Management Policy - Be an Ultimate Master Wholesale -Product Strategy
Tatsuya Nakayama

Bringing Together a Full Line-up of PRO TOOL

The inventory of 560,000 SKUs, of which 90,000 are Private Brand products, is the result of ourunique efforts. By utilizing the valuable experience gained through this process as unique“data”, we can improve the quality and speed of the process and further strengthen the productlineup. In addition, the importance of product “data” is only increasing for optimal productselection. We will continue to pursue the unique convenience based on the concept “TRUSCO
has it.” by focusing on “data” along with the challenges that are unique to TRUSCO.

A review of the 60th term
Accelerated product lineup expansion and revamped Orange Book

500,000

Number of Product Data

Integrated Report 2023

2023

Decreased
to selectenvironmental Easierproducts
impactWebsiteutilization

Number of items
in inventory(Unit: ten thousand)(2019)(2020)

Consolidated
Accounting Started(2021)

companies

Items

Items

Items

Items

Total number of
items in inventory(2022)

companies

Number of those products thatare stocked automatically 26,109 Items (+18,615 Items)

311 296 301 322(2018)

(+204
)
2,152
(-134,000 )Number of items 374,000
Inventory items(+62,062 )Number of items in inventory 562,026
Number of listed
manufacturers

53,197,583 units (+4,409,969$323 million (+$21 )Inventory Value(2030)

Current Period

units)

million*Stock Hit Rate: Ratio of products delivered from our company stock among our total number of orders.

Sales Constitution Ratio of Available Products
1

Product lineup expansion and revamped Orange Book

(2017)

TRUSCO Orange Book

100.0

Cutting Tools

3.1%

Sales $55 million (+7.9%)•Cutting Tools •Drilling tools •Threading cutting tools

2

Shows the constitution ratio of sales by category. Sales data current as of December
31, 2022. Figures in brackets are from the previous year provided for comparison.

Production Processing Tools

7.3%

3

Construction Supplies

11.5%

Sales $202 million (+9.0%)•Pneumatic tools •Welding equipment•Civil engineering equipment, etc.

Sales $128 million (+4.4%)•Measurement equipment •Mechatronics•Tools for machine tool, etc.

Data utilization
Product adoption andperformance information

Chips
ScalesCutting Tools

4

Data

Expansion of data

Data linkage

e-commerce

Data linkage with
suppliers and customers

Calipers

Threading cutting tools

Work Supplies

19.0%

Sales $333 million (+11.0%)•Cutting goods •Grinding and polishing goods•Chemical products, etc.

5

3D Measuring
Equipment

Hand Tool

16.4%

Sales $286 million (+7.8%)•Electric power tools and accessories•Pneumatic tools and accessories•Hand Tools, etc.

Floodlights

6

Generators

Welding Masks

Environmental Safety Supplies

18.1%

Sales $317 million (+11.2%)•Protective equipment •Safety goods•Environmental improvement goods•Air conditioning goods, etc.

Data expansion, utilization, and linkage
Cutting Grindstones

7

Abundant line-up andproduct inventory

Polishing goods

Cutting Fluid

Logistics/Storage Supplies

11.0%

Sales $193 million (+9.0%)•Loading goods •Transportation goods•Containers and vessels

Planet Saitama

Screwdrivers

8

Hammers

Laboratory Supplies

Pliers

4.2%

Sales $73 million (+5.7%)•Tool wagons •Storage and management goods•Work benches, etc.

Portable Air Conditioners

9

The Nakayama visually
Corporate Data
impaired welfare foundation

30

2022

(2016)

9-monthfinancial results

Japan 2,943 companies (+281 companies)
Overseas 329 companies (+25 companies)

Corporate
Governance∙ Contribute to solving distribution issues for suppliers and improving convenience for users
by expanding inventory at our distribution centers and strengthening our unique services
such as Direct Delivery Service∙ In order to make TRUSCO products more useful in the field, we will improve our main PB
products such as carts and various sprays(2014/3) (2014/12) (2015)

companies

companies

Environmental
Efforts

Strengthen collaboration with suppliers on distribution in anticipation of future distribution
issues throughout the entire supply chain. This contributes to solving problems such as
improving operational efficiency and expanding business. We will also work to revamp ourmainstay products so that TRUSCO Private Brand products will further contribute to
manufacturing and become standard at workplaces.

26.4

Items

Items

Sustainability

5,500,000

39.2

37.4
29.8 33.6

264
145 155 178 207 227

16,800 pages 8,300 pages

4,200,000

With data at the center of the product domain, we will promote the expansion, utilization, andcollaboration of data. Using data, we will strengthen collaboration with online e-commercecompanies and major users, accelerate and improve the efficiency of business processes,
and deepen collaboration with suppliers, thereby improving convenience as a platform for
PRO TOOLs.

Distribution collaboration with suppliers andimprovement of major PB products

21.2 23.1

560,000

Driving innovation in the product domain with a focus on data

∙ In order to meet the needs of online mail order companies and major users, we will further
accelerate the expansion of product data
∙ Transform operations in the product domain, such as expanding product lineups, developing products, and preventing product shortages, into data-centered processes∙ Actively share various data with suppliers to contribute to manufacturing and sales promotion

817%

Human Resources

Initiatives during the 61st term

Number of items
in inventory

Items

Items

Digital Service∙ The number of inventory items increased to 560,000 (a year-on-year increase of 60,000)
by actively increasing automatic stocking based on data in addition to traditional item
selection performed by people.
∙ With the cooperation of suppliers, the number of product data has been expanded to 5.5
million items (up 1.3 million from the previous fiscal year)∙ The number of pages used for Orange Book has been cut by half to reduce environmental
impact, and QR codes provided within which link readers to the Internet make it easier toselect products.

91.0 91.3 91.7
89.5 89.9 90.5
86.8 88.2 88.8
84.0
1,760
1,530 1,575 1,524 1,620
Inventory value Sales
1,392(million USD)
1,264
1,189
49.9 56.2
1,041
44.2

90,277 (+10,777 )Sales $327 million (+5.6 )TRUSCO Orange Book.Com(+406,301 )Number of items listed 3,167,188
Total Number of 3,272(+306)
suppliers
Number of Items

Sales

We aggressively expanded our product lineup with the aim of becoming a company thatalways has what customers need. The number of inventory items reached 560,000, and thenumber of product data reached 5,500,000. On the other hand, the Orange Book wasrevamped. The number of its pages has been cut by half to reduce environmental impact,
and QR codes provided link readers to the Internet.

Stock Hit Rate (%)*

Private Brand (PB)

Distribution

Changes in Sales, Inventory Hit Rate, Number of Items in Inventory,and Inventory Value

Product Strategy Key Indicators

Products

PRO TOOLs in general refer to tools, operational supplies, consumables, and machinery required by professionals at manufacturing sites
such as factories and construction sites. We try to carry as many PRO
TOOLs products as possible. By stocking not only the best-selling
products but also all products with the same or similar functions,
we are able to respond accurately to our customers' needs. We willcontinue to offer an abundant product lineup and inventory to help
customers expand their businesses.

Management
PolicyDirector
General Manager of the Product Division

Value Creation

Inventory Strategy

With the challenges and data that are unique to TRUSCO,
we will make the concept “TRUSCO has it.” true

Work Gloves

Safety shoe

Office Supplies/Storages

8.7%

Sales $152 million (+3.8%)•Cleaning utensils •Office miscellaneous goods•OA business machinery, etc.

I-Pack ®

NIAWSE

Direct Delivery
Service

Containers

RE: BRANDING

Focusing on distribution collaboration with suppliers and improvement of major PB products

10

Conveyors

Other products

Trolley

Cabinets

Work benches

WagonsDesks

Office Supplies

Industrial Vacuum
Cleaners

0.7%

Sales $12 million (+16.8%)

Integrated Report 2023

31

Don’t Stock Unsellable Inventory)Emphasize Stock Turnover Rate)

Minimize Stock)

Inventory Sells

Focus on Stock Hit Rate

Inventory Energizes Growth

We believe we receive orders thanks tostocking the products our customers needrather than inventory that sells.

We believe the greatest barometer of ourservices is the stock hit rate that shows
what percent of the total orders were fulfilled from stock to delivery.

Having a solid inventory allows us to expand
business with online shopping companies
and increase sales. By reducing the time andeffort required to process orders, we havebeen able to significantly reduce overtime
work for our employees, which has been thedriving force behind our company's growth.

Stock hit rate: 91.7%(as of December 31, 2022)

We have set up cut depots that stock cutting tools,
which are the greatest consumable in factories, atthree distribution centers in Japan, making those
products available for immediate delivery.

Order Frequency

When an order is incorrect, a return can be automatically accepted for unopened inventory items.
Products are collected by a delivery service thattravels fixed routes.

OSG Corporation

Kyocera Corporation

Kennametal Japan Ltd.

Sandvik K.K.

Sumitomo ElectricIndustries, Ltd.

Seco Tools Japan KK

Dijet Co., Ltd.

Tungaloy Corporation

NS TOOL CO ., LTD.

Mapal

Mitsubishi Materials
Corporation

MOLDINO Tool
Engineering, Ltd.

Union Tool

Stocking productsof 14 major cutting
tool manufacturers

Inventory of seasonal products year-roundWe refer to large and long products that are difficult to manage and ship as “Difficult-to-Deliver”
products. We are able to meet all orders by actively
stocking these products.

We keep catalogs from manufacturers so that wecan provide information immediately when detailed
information about a product is needed. As withproducts, our catalog inventory is managed using
bar codes, which allows for more customer business opportunities.

It is common for seasonal products to be stocked
only in quantities that can be sold out during theseason. However, in order to meet the demand forthe last units, we keep more inventory than theseasonal demand and respond to orders throughout
the year.

Once a month, members of the Company,
including the President and directors, hold a
new product review meeting. Highly original
products are commercialized through thisreview meeting. Meeting participants examine not only functionality and cost but also
how original the product is from a variety ofperspectives.

We also have 7 m ladders in stock

32

Integrated Report 2023

We carry catalogs from around 600 manufacturers.

The PB Request Box is a system for employees to propose ideas for new products.
Approximately 100 new ideas are presented
each month, some which lead to the creationof various unique PB Products.

Participants discuss various topics
during a new product review meeting

Product
info

Received Multiple Good Design Awards
The Japan Institute of Design Promotion presents awards to products and services with superior design
every year. TRUSCO has received Good Design Awards 21 times for many of its products including carts,
air dusters, and hip roof tool boxes.

Product
info

Ability to supply even the last unit of a
product during seasonal demand

Products Based on Ideas from
Employees(2022 Good
Design Awardwinner)

TPC6KJ-50
Plastic Chain with Attachable/
Detachable Links
6MM×50M
Plastic chain (yellow) +Plastic chain links (red)Product
info

FHWR
The Worker’s Rucksack canalso store a full harness

Product
info

MPK720
Kartio - Light-Duty Resin Platform Truck(Good Design Long Life Design Award)

TPBC-BK
Waterproof
Tarpaulin Boot
Case

We also deeply focus on
quality control
We established the PB Quality Assurance Section for manage the quality of TRUSCO Private
Brand products. We are striving to enhancequality through measures that include the plans
to prevent recurrence when a deficiency occurs
as well as product improvements.

The Nakayama visually
Corporate Data
impaired welfare foundation

Inventory of Manufacturer Catalogs

New product review meeting for original
product development

Corporate
Governance

Stocking “Difficult-to-Deliver” products

Plastic shelves(as of December 31, 2022)

Environmental
Efforts

Accepting Product Returns
Automatically

Iscar Japan Ltd.

Sustainability

Product Items

NAKAYAMA
Original
Inventory
Logic

TRUSCO Private Brand Products
Sales: $327 million((Non-consolidated parent)
Sales Constitution Ratio: 18.6%

Human Resources

High

Digital Service

We are able to provide immediate delivery for evenlong tail products that have a low order frequency.
By stocking all colors and sizes regardless of whatsells, we have created a one-stop environment forour products.

Low

KartioEstablishment of Cut Depots
Dedicated to Cutting Tools

Keeping Long Tail Products in stock

Long Tail Products

ZEPHIRE

Sales(Conventional Thinking =Distribution(Conventional Thinking =The TRUSCO brand was born out of the desire to respond to professional skills with professional quality. It was bornas the industry’s first Private Brand (PB) in 1964 and covers the widest range of auxiliary materials for factory use
among all brands.

Products(Conventional Thinking =Developing our own brand with an original approach

Management
PolicyBased on the belief that inventory is necessary for the convenience of our customers and for improving sales, we have developed our own approach to inventory - NAKAYAMA Original Inventory Logic. With this approach, we are expanding our inventory using creative methods to ensure that our customers
always know that TRUSCO has what they need.

Private Brand Products

Value Creation

Enhancing our inventory using the NAKAYAMA Original Inventory Logic

A regular remote business meeting with a manufacturer

Integrated Report 2023

33

Overseas National Brand Products

Providing a Broad Selection of PRO TOOLs in Japan

Launching the World’s PRO TOOLs in JapanWe are able to provide items (National Brand Products) from around 2,943 companies procured from suppliers in Japan. The number of suppliers
we work with grows every year so that we can provide a broad selection of products to everyone involved with manufacturing.

Starting with the Germany office (Düsseldorf), TRUSCO has sequentially opened product procurement bases overseas, including the Taiwan officeand the Thailand office, to procure PRO TOOLs from around the world with a focus on Europe, where many high-quality tool manufacturers havebuilt up a long history. We import quality PRO TOOLs from various countries to invigorate the manufacturing sites in Japan.

Value Creation
Creation
Value

National Brand (NB) ProductsManagement
PolicyProducts
Products
Distribution
Distribution
Sales
Sales
Digital Service
Service
DigitalNational Brand Products
Sales: $1,432 million
Sales Constitution Ratio: 81.4%

Sales: $40 million
Suppliers: 329

Human Resources
Resources
Human(as of December 31, 2022)

Overseas Procurement(as of December 31, 2022)

We are always looking for products with professional specifications to provide total support to
manufacturing sites nationwide.

Increasing the number of our suppliers annually
Change in Number of Suppliers

Yattemasen List

Product Request Advertisements
We publish advertisements torecruit new suppliers in newspapers and on our website.
We are opening avenues to
products by placing productrequest advertisements.

Product
RequestAdvertisements

2,185 2,280 2,332 2,440 2,662 2,943 3,120
2018

2019

2020

2021

2022

2023

Sales

01 Cutting Tools$59 million

Tools for02
machine tools
Measurement03
equipment
Mechatronics
04
parts
Hardware05 and building
materials
Pneumatic
06
accessories
Electronic
07
Devices$19 million(+7.8%)

Number of
Items

Sales
Constitution ratio

486,755

3.3%

69,767

1.1%

105,5214.1%(+8.2%)$72 million(+2.2%)$22 million(+4.3%)$63 million(+6.7%)$40 million(+10.9%)$37 million(+17.2%)276,929
460,6511.3%
3.6%

735,0622.3%

227,635

2.1%

08
09

Integrated Report 2023

Sales

Chemical
Products$118 million

Hand Tools

Electric,
10 hydraulic, andpneumatic tools
Protective
11
equipment(+17.3%)$133 million(+5.6%)$163 million(+5.3%)$178 million(+11.5%)

12 Safety goods$40 million

Packaging13
goods
Construction
14 and Lighting
Equipment$123 million* 1. Net Sales of New TRUSCO Orange Book Products.
2. “Accounting Standard for Revenue Recognition”, etc. not applied.

34

Category(+7.0%)(+9.8%)$160 million(+7.9%)

Number of
Items

Sales
Constitution ratio

12,696

6.6%Category
15

119,3217.5%

16131,2979.2%

17269,856 10.0%
77,51341,934
158,424

2.3%

18
19

7.0%

20

9.0%

21
22

Loading
goods
Distribution/
Storage Supplies
Conveyanceequipment
Cleaning andsanitation goods
Environmental
improvement
goods
Gardeningequipment
Office/Household Supplies
Researchequipment

23 Other products$60 million(+4.7%)$103 million(+8.8%)$73 million(+9.7%)$94 million(+5.6%)$80 million(+18.2%)$12 million(+10.3%)$75 million(+3.6%)$43 million(+9.7%)

Number of
Items

Sales
Constitution ratio

26,057

3.4%

109,006

5.8%

478,479

4.1%

45,842

5.3%

154
24

2017

website.

Ansell(Belgium)

GEDORE(Germany)[gloves andprotective clothing][Work tools, tool wagons,
and torque wrenches]

Pelican(USA)

ATG(Sri Lanka)[protective tool cases][Work Gloves]

41,666

4.5%

13,9730.7%

239,755

4.2%

Wiha(Germany)

Justrite(USA)

222,719

2.5%[Screwdrivers andhand tools][General safety goods]

197

205

28

32

2018

2019

329

350
44

212
37

39

*

40

2020

2021

2022

2023

(planned)

Note: “Accounting Standard for Revenue Recognition”, etc. not retroactively applied.

Major Overseas Suppliers (honorifics omitted)

Sales

Overseas ProductSales(unit: Million USD)

Germany office

SwedenNorwayDenmark
The Netherlands
BelgiumUK
IrelandFranceSwitzerland
Portugal
Spain
Italy
IsraelTaiwan office

Germany
Estonia
PolandSatoru Yamada, Shota Sasaki,
Slovakia
Office HeadSupervisor
Czech Republic
Austria
China
South Korea
GreeceTaiwanIndia
VietnamThailandSri Lanka

The Nakayama
Nakayama visuallyvisuallyThe
impaired welfare
welfare foundation
foundation Corporate Data
impairedCategory304

Suppliers Overseas

At present, TRUSCO handles the products of approximately 329 overseas
suppliers from 32 countries/regions and stock them as Japanese products
in distribution centers across Japan. With a wide-ranging
lineup of overseas pro tools not readily available in Japan,
we offer users increased convenience and options.
We also have a website “Sekai no PRO TOOLs” where we
Access here toprovide promotional information based on a wealth of in- see the “Sekaino PRO TOOLs”
formation.

(planned)

Sales and composition ratio by product category in the Trusco Orange Book (fiscal year ended December 31, 2022)

Number of Overseas Suppliers and Number of Overseas Product Sales

Corporate
Corporate
Governance
Governance2017

Sales are growing in proportion to the increase in overseas suppliers

Environmental
Environmental
Efforts
Efforts

We have a list of suppliers that we haverejected because they do not do what
we are looking for. The new ideas list is
made available on our intranet and employees in the sales field contribute to thelist daily in order to cultivate suppliers.

TRUSCO also carries products that are
difficult to obtain in Japan

Sustainability

3,470
3,272 350
Suppliers Overseas
2,966 329
Suppliers in Japan
2,652 304
2,477 2,537 212
2,339 197 205
154
Total Number of Suppliers

CanadaMasato Nishimura,
Office Head

Seika Ryu, Deputy
Office HeadUSA

Thailand office

Malaysia

134,914Singapore

New Zealand

TRUSCO imports PRO TOOLs from 32 countries/regions around the world

TRUSCO NAKAYAMA Yuki Morikawa,
CORPORATION
Office Head
(THAILAND) LIMITED
Kazuaki Harada,
Office Head

Integrated Report 2023

35

Cutting Tools (132,785 items)

As of December 31, 2022

Production Processing Tools (51,426 items)

Value Creation
Creation
Value

Number of different products in inventory: 562,026

Environmental Safety Supplies (59,342 items)

Management
PolicyProducts
Products

Chips

Cutting Tools
3D Measuring
Equipment

Calipers

Live Centers

ScalesClampsLevel Adjusters

Safety Cones

Oil Heaters

Industrial Fans

Portable Air Conditioners

Safety Signs

Sprockets

Poison Protection
Masks

Safety Glasses

HelmetWork Gloves

Safety shoeWork Supplies (46,085 items)

Sales
Sales

Construction Tools (74,545 items)

ChucksDrill Chucks

Distribution
Distribution

Threading cutting
tools

Magnetic
Products

Distribution/Storage Supplies (17,848 items)

Digital Service
Service
DigitalFloodlights

Welding Masks

Generators

Silicone Grease

Lithium Grease

Conveyors

Containers

Hydraulic Jacks

Trolley

Human Resources
Resources
Human

Lubricants for
Food Machinery

Shelves

Paint

Submersible
Pumps

Valves

Anticorrosion
agent

Purified Water

Cutting Fluid

Trailers

Hand Pallet Trucks

Engine Welder

Headlamps

Handsaws

Disc Paper

Loading goods

Office/Household Supplies (29,337 items)

Cutting Grindstones

Hand Soap
WagonsCabinets

Office Supplies

Ultrasonic Cleaners

Computer
Mice

Clean Mats

The Nakayama
Nakayama visuallyvisually
The
Corporate Data
impaired welfare
welfare foundation
foundation
impaired

Hand Tools (137,412 items)

Corporate
Corporate
Governance
GovernanceOutlet-equipped
Retractable
Extension Cords

Tanks

Environmental
Environmental
Efforts
Efforts

Laboratory Supplies (12,948 items)

Pallets

Sustainability

Ladders

Stationery
Screwdrivers

Crimping Tools

36

Integrated Report 2023

PliersCutting Pliers

Hammers

Steel Tool Boxes

Explosion-proof
Tools

Cable Cutters

Insulating Equipment

Electric Power Tools

Drums

Thermometers

Work benches

FlasksOil Dispenser
Bottles

Shallow Trays

Tweezers

Industrial Vacuum
Cleaners

High-pressure Cleaners

Desks

Office Chairs

Mops

Integrated Report 2023

37

Customer Support Feature

Value Creation

TRUSCO Orange Book
TRUSCO Orange Book - “Great Dictionary of Monodzukuri”
used at various manufacturing sites

The Feature needed for use at manufacturing sites vary greatly according to the times. There are also different situations thatmake procurement challenging, such as work sites that are offline and performing product searches without knowing product serial numbers. TRUSCO aims to provide the highest level of convenience in tool procurement in order to respond to any situation.

TRUSCO
DigitalOrange Book

Products

Our catalog lists every sort of PRO TOOL that is required on “manufacturing
sites.” This is a professional tool catalog that supports efficient product searchand procurement with a magazine-like composition that allows you to obtaindelivery date information and find out about popular products at a glance.
Starting with the 2023 edition, the 10-volume catalog has been slimmed down
to 5 volumes, and the use of QR codes has made it both more convenient andportable. We also offer the “TRUSCO Digital Orange Book” which combines thereading ease of a printed catalog with the searchability of the web.

Management
PolicyAiming to provide customers the most convenient feature in procurement Pro Tool

The Orange Book Book Stand is single-piecebook holder

Distribution

TRUSCO Orange Book.Com
Product search site listed all the information users need toacquire PRO TOOLs

Sales

TRUSCO
OrangeBook.Com

The number of items listed on TRUSCO Orange Book.Com
is increasing daily

Digital Service

This comprehensive site supports product searches and the purchaseof PRO TOOL. Information on the products we handle is available, as are
SDS forms (Safety Data Sheets), schematics, and more. In addition, sitemembers can request product estimates, place orders, and submit return
requests 24 hours a day, and even check inventory in real time. It is a system that we are continuing to build in order to support smooth business
transactions and assist our customers in their sales activities.

TRUSCO AI Orange Rescue

Listed items: 374,000 items, Inventory items: 560,000 items
Off-the-shelf rate: 82%, Manufacturers listed: 2,152 companies, Page count: 8,352, Weight: 12 kg

are developing not only catalog functions and web productsearch functions but also AI-based product search services.
We provide tools suitable for a variety of manufacturing sites,
most of which are linked to our inventory, to improve the convenience of PRO TOOLs searches and procurement.

Catalogs that fit diversifying sales channels
TRUSCO Construction Tools BOOK

TRUSCO PRO TOOLMAGAZINE ICHIOSHI

This catalog gathers representative
excerpts from every product category
into one book.

This catalog features a lineup of PRO
TOOL required for construction andother work sites. The cover is UV laminated for improved water and weather resistance. This means that you
can even use it at work sites withoutworrying about it getting damaged.

This catalog magazine features upto-date information on items recommended by manufacturers.

The idea for the catalog was born from theconcept that it would be more convenient forusers if the catalogs of each manufacturer
were consolidated and prices as well as partnumbers were integrated.

Starting with the 2023 TRUSCO Orange Book edition, we will
reduce the page amount to half to make each catalog thinnerand provide two-dimensional codes so that readers canaccess a wealth of information on the Internet in real time.

Paper-based Catalog & WEB

Note: A Thai version as well as a version
for the Indonesia market (2020-2021
version) have also been published.

Integrated Report 2023

A guidebook for PRO TOOLs, COCOMITE features basic productknowledge, simple explanations ofpoints for selecting products, andmore. This publication makes selecting products more efficient.
Vol.3
Pages: About 964 (B5 size)
Price: $17 (excluding tax)
Note: An English version of this publication
titled COCOMITE UNIVERSAL is alsoavailable.

Starting with the 2023 TRUSCO Orange Book edition, we will
reduce the page amount to half to make each catalog thinnerand provide two-dimensional codes so that readers canaccess a wealth of information on the Internet in real time.

Digital catalog

382023 edition
Pages: 706 (A4 size)
Number of items listed: About 33,000
Number of manufacturers listed: 655
Price: $7 (excluding tax)

2023 edition
Pages: 246 (A4 size)
Number of items listed: 273
Number of manufacturers listed: 242
Price: $3 (excluding tax)
Front Cover: 2018: Mansai Nomura
2019: Mari Watanabe
2020: Rie Tanaka
2021: Spotlight on craftsmen working at manufacturing sites
2022: Osamu Suzuki
2023: Kentaro Oyama

COCOMITE

The Nakayama visually
Corporate Data
impaired welfare foundation

TRUSCO Orange
Book Jr.

2023 edition
Pages: 1,488 (A4 size)
Number of items listed: About 69,000
Number of manufacturers listed: 1,629
Price: $14 (excluding tax)

Name of the company's comprehensive
catalog changed from “Nakayama Shoten” to “Orange Book” in 2000
 hoto above shows the handbook
Note: P
version (small size version) of theOrange Book.

Quickly finds products even during fuzzy searches

Corporate
Governance

Paper-based Catalog & WEB

TRUSCOAI Orange
RescueEnvironmental
Efforts

We launched our first product catalog “Nakayama Shouhou”(“Nakayama Business Bulletin”) in 1964. At that time, there
were no catalogs that combined products from multiple manufacturers, and it was the first product catalog in the industry
that provided users with real convenience. Currently, we“I'm looking for a woman's safety helmet.”

Sustainability

Providing tools suitabale for manufacturing sites

AI Chatbot is a product search service that uses artificial intelligence (AI).
It is capable of instantly finding the most suitable product from over 3.16
million items. Even if you do not know the specific industry name for thetool, manufacturer name, product name, or model number, you can easily
narrow down the products you want using the voice search function andguided chat function. The AI “learns” the search results to improve accuracy day by day, helping to improve the efficiency of operations.

Human Resources

AI Chatbot (automatic chat program) responds
instantly even voice searches

TRUSCO Orange Book 2023

Digital catalog

Digital catalog

Digital catalog

Integrated Report 2023

39

Distribution Strategy
Realizing the “fastest,” “shortest,” and “best”
deliveries in the business

Benefit increases as sales increase
Sales

Costs/Sales

Delivery Costs

Break-even
Point

Delivery Costs

Delivery Quantity

3

Stock
branchSatel

2 hours
3 hours

n
Ru

2

lite

m
30 k

PlanetbranchDirect Delivery Service

Products are delivered directly to the user
at the request of the customer. Freight costs
are paid for by the customer (see p.46).

2 runs/day

The Nakayama visually
Corporate Data
impaired welfare foundation

1 runs/day

One-way: 1 hour

1

Customers
Users

Corporate
Governance2 runs/day

TRUSCO delivery routes
Other companies'
transport runs

4

Far Away
Customer

PlanetLogistic
Centers

rox.

Usefu

x.

l!

1

60
km
Ap

pro

NIAWASE(Order Consolidation) + Direct Delivery Service

Fixed-Cost Based Distribution

Sales

Environmental
Efforts

Users

App

Integrated Report 2023

Variable-Cost Based Distribution

1 runs/day

Unique to TRUSCO

Products are shipped
together directly

high frequency deliveries)

Transport Service

Goods are delivered once per day via
other companies' delivery runs from
Planet distribution centers to customers
in areas that are difficult to reach using
regular runs.

pro

40

high frequency deliveries)

Strengthening elements to achieve a distribution service ofthe highest standard

Ap· Expand environmentally-friendly services that utilize both NIAWASE (Order Consolidation)and our Direct Delivery Service· Full utilization of I-Pack® high-speed automated packaging and shipping lines capable ofpackaging and preparing a maximum of 720 packages per line for shipping in just an hour
(6 lines nationwide)· Achieve a high level of service by combining high-speed NIAWASE (Order Consolidation)equipment with an unparalleled abundance of inventory(+3 min. 11 sec.)

Fixed-Cost
Fixed-Cost
Based
Based
Distribution
Distribution(Suitable for small lot and
Fixed-Cost
Fixed-Cost
Based
Based
Distribution
Distribution

Throughout Japan, TRUSCO has built delivery routes that trace planet-like orbits around our distribution centers.
From this, we have named our distribution centers “Planets.”
4
y
s/da
1 run
Users
3

Innovation

Abundant inventory and
Immediate Delivery Systempt

Routes that achieve immediate delivery (Planet & Satellite Distribution System)

Quality andEfficiency• Online Shops• Machinery Tool
Sales AgentsvehicleDelivery Quantity

Enhancement of Direct Delivery Service Functions
TRUSCO is committed to “NIAWASE (Order Consolidation),” which allows for packaging material
amounts, shipping costs, delivery time and the environmental burden to all be reduced by half.
In addition, we will thoroughly enhance our Direct Delivery Service, which is used to deliverproducts directly to users, thereby eliminating waste in the supply chain. At the same time, wewill reduce distribution costs through packaging line automation and labor savings.

vehiclesIn fixed-cost based distribution, delivery costs remain fixed even if sales increase.

Distribution Level ofof the Highest Service
Standard

Products
are ordered
togethervehicleSustainability

Priority to
Safetymin.

vehiclesHuman Resources· Acquire control capabilities which prevent stockouts and optimize inventory volumes· Focusing on Planet Aichi, we will thoroughly advance and optimize our distribution system(distribution DX) through means including automating prediction and judgment functions
for warehouse work volumes· Development of distribution personnel who can solve problems by making full use of bothmaterial handling equipment and digital technology

Human
Resource
Development

hrs.

pt

Digital Service

Taking on the challenge of providing a distribution service of the highest standard

20 10 4

Variable-Cost
Variable-Cost
Based
Based
Distribution
Distribution(Not suitable for small lot andVariable-Cost
Variable-Cost
Based
Based
Distribution
Distribution

We have created a unique logistics system that establishes fixed freightcosts. In contrast with variable-cost based distribution where costs are incurred for each individual delivery as with express home delivery services,
etc., fixed-cost based distribution involves using fixed delivery routes
so that delivery expenses are fixed regardless of the quantity of items
delivered. As a result, we are able to provide better services to our customers, such as free deliveries (two deliveries per day), making products
returnable if they are items that we stock (see p.32), and Naojiro Repair
Workshops (see p.47) which handle repairs when necessary. In addition,
because we have fixed delivery routes, we can deliver and collect cargo incontainers without using cardboard boxes or other packaging materials,
thus realizing low environmental impact distribution (see p.67).

Initiatives during the 61st term

sec.

%

Sales

Unique fixed-cost based distribution

Digital visualization of warehouse conditions

Delivery lead time

91.7 (+0.4 )
162 (+1 )
116 (-1 )41.7 (-0.4 )Distribution

With the aim of improving the level of service offered to customers, we have promoted
distribution reform using digital technology, such as warehouse condition visualization andoptimal allocation of personnel. In addition, while confronting and resolving the many
distribution issues that are in front of us, we have promoted the development of distribution
personnel and the improvement of the educational environment.

%

Products

Prompt problem solving and distribution reform focusing on Planet Aichi

Logistic centers
Stock centers

Ratio of products delivered fromour company stock among our
total number of orders.
Number of Third-party
Delivery Runs
TRUSCO
TRUSCO delivery routes
delivery routes
Percentage of TRUSCO
delivery runs

Stock hit rate

We also believe that “Immediate delivery is the greatest service” andanalyze the lead time for each order from when an order is received todelivery. We will address issues that emerge by visualizing what immediate delivery is and establish a system capable of realizing the “fastest,”“shortest,” and “best” deliveries in the industry.

A review of the 60th term

Through the continuous enhancement of inventory, which is the source of competitiveness,
we will realize that the professional tools that customers need are “always found and
immediately available.” We aim to create data-driven distribition that improves customer
service levels by utilizing the huge amount of data generated by combining the two while
thoroughly strengthening distribution and digital technology.

17 locations
11 locations
3,556,388 (+719,996 units)
4,374,725 (+978,439 units )Labor cost to ship one order $0.80(-$0.02)28

Number oflocationsdistribution bases
Number of packages delivered
via Direct Delivery Service
Number of orders delivered
via Direct Delivery Service

We are evolving logistics to meet the request from our customers, we will
deliver “Just what is needed, only when needed, only in the quantity
needed.”We have introduced the world’s most advanced logistics facilities to promote labor saving and automation. For Planet Aichi, which is currently
being conceptualized, we are also making use of the latest technologies,
such as virtual simulation using a digital twin.

The most convenient and comfortable situation for our customers is having the ability to always beable to find the most suitable PRO TOOLs at any time and to ensure that they are delivered on time
as promised. With the determination of all our employees to support manufacturing, we strive to
become a company where one-stop procurement can be achieved on a routine basis without
stress and the highest level of convenience can be experienced at all times.
By combining the power of safety, automation, IT, and human resources, we will hone our highly
original distribution capabilities.

· Focused on maximizing the power of inventory, such as optimal inventory allocation andprevention of running out of goods as well as quantity shortages· Took on the challenge of performing demand forecasting using AI and introduced
state-of-the-art distribution equipment· Created an environment where employees who want to work hard can do so and take on challenges

Distribution Strategy Key Indicators

Costs/Sales

Hideki Naoyoshi

Management
PolicyDirector
General Manager of the Distribution Department andGeneral Manager of the Distribution Safety Promotion Department

Value Creation

Distribution System

We will continue to meet the expectations of our customers
and the market by improving convenience

x. 9

0k

m

Planet Logistics System

When an order is received by a Planet
branch, the goods are shipped directlyfrom the Planet distribution center tothe customer.

Satellite
branch2

2 runs/day

Satellite Logistics System

About 10,000 to 30,000 items are stored in basic inventory at satellite
stock branches for future delivery to customers. Other goods are replenished at the branch through satellite runs from the distribution center
once a day and are delivered the following morning.

Integrated Report 2023

41

6
Utilizing a variety of logistics equipment according to
product size and shipping frequency
Large

8 Electric moving
pallet racks

Product size

Shelf Area
4 Butler®
Shelf Area

Scan the QR code to watch video.

6 Automated bucket warehouse
Small
Low

Labor saving capability
Distribution Center where the technology was introducedHigh

This high-speed NIAWASE (Order Consolidation) equipment for automated warehouses Can simultaneously perform NIAWASE (Order Consolidation) and sort goods for multiple orders. This reduces the work and time
involved for sorting and transport.

Shipping Capacity 110 shipments/h (1 station)

Sorting capacity of 1,800 containers/hWork Capacity Work Performed by approx. 3 Workers/h 2.5x more storage capacity

TohokuTohoku Saitama East Kanto South Kanto Tokai Shiga Osaka Kobe Explanatory
video

Tokai

7

Butler® (Automated conveyance robots)

Automated pallet warehouse

8

Saitama
Osaka

Electric moving pallet racks

East Kanto

South Kanto
Explanatory
video

Kobe

fit BOX
10 Just(Automated Boxing Machine)
®

Sales

4

AMR (Autonomous Mobile Robots)

Shipping
Frequency

We offer high-density storage of buckets (containers) of small- and medium-sized
goods that are characterized by many types and relatively low inventory volume for eachproduct. Cranes are used to automatically transport the buckets. This allows for many
products to be efficiently managed by a small number of workers.

Distribution

5 AutoStore

Logistics Wonderland Planet Saitama

1

7 Automated pallet
warehouse

Pallet Racks

Products

Our distribution centers, which house the world's most advanced logistics
equipment, are each truly a “logistics wonderland.” We have introduced
a variety of logistics equipment and facilities to promote labor saving
and automation. We continue to expand the number of items in stockand strengthen our immediate delivery system by realizing high-density
storage in logistics equipment according to the size of the product andfrequency of shipment, as well as high-speed receiving/shipping throughautomated sorting and packaging.

SAS (Systema Streamer)/
Shuttle Rack (high-speed picking and sorting equipment)

Management
PolicyIntroduction of a cutting-edge distribution system

9

Automated bucket warehouse

Value Creation

Logistics Wonderland

Digital Service

Automated conveyance robots lift shelves and transport them to workers
in the warehouse. This reduces workers’ time spent walking and raises
the efficiency of loading/unloading.

Reaches speed of 5.8 km/h when moving straight forward
Explanatory
video

Saitama2

Reaches speed of 3.6 km/h
when moving straight forward
Saitama42

Integrated Report 2023

Saitama*Independent estimate based on TRUSCO inventory items.

This equipment for sorting products eliminates sorting mistakes by people, improving precision and speed. This is because the lid of the container where a product is to be placed
will open (or a light will shine to indicate which container),
prompting the worker to simply place products inside.

5

AutoStore(high-precision storage system)

AutoStore maximizes space efficiency by stacking bins (plastic containers) from the floor tonear the ceiling. The use of robots to transport
containers to improve efficiency and reduce theamount of labor for loading/unloading work.

Sorting Capacity 200 product types/h

Shipping Capacity 120 shipments/h (1 station)Work Capacity Work Performed by approx. 3 Workers/h (1 station)Work Capacity Work Performed by approx. 3 Workers/h (1 station)

SaitamaEast Kanto

South Kanto Tokai Osaka Kobe

Explanatory
video

4 5 6 7 8 Storing/Picking

GAS (Gate Assorting System)/
DAS (Digital Assorting System)

TohokuExplanatory
video

Work Performed by approx. 1.5 Workers/h (1 station)

TohokuNorth Kanto Saitama South Kanto

East Kanto

120 packages/hEast Kanto South Kanto Tokai
Explanatory
video

9 NIAWASE (Order Consolidation)

Shiga

Kobe

Sanyo

Explanatory
video

3 Sorting/Inspection

North Kanto
Tokai

Osaka

TohokuSaitamaEast Kanto

Kobe

Explanatory
video

10 11 12 Packaging/Shipping

11 I-Pack® (high-speed automated packaging and shipping line)

12 Palletizing Robots

I-Pack places delivery slips inside packages and handles packaging as wellas labeling all at high speeds. Automation leads to shorter packing timeand better quality, the keys to our Direct Delivery Service.

Palletizing robots are robots that perform loading and unloading operations. They are mainly used for sorting goods packed using I-Pack® to reduce labor and improve accuracy as well as work quality.

Packaging Capacity 24 Workers/h
Maximum of 720 packages/h per line

2x to 3x more storage capacity Tohoku
Explanatory
video

Saitama North Kanto

Packaging Capacity 10 Workers/h

Saitama

The Nakayama visually
Corporate Data
impaired welfare foundation

Automatic Guided Vehicles automaticallytransport products along magnetic tape laidout on the floor of the Distribution Center. It
improves transport efficiency through laborsaving.

2x more storage capacity*

3 Inspecting/Sorting3

2x more storage capacity

3x more storage capacity

Corporate
Governance

AGV(Automatic Guided Vehicles)

Shipping Capacity 35 shipments/h (1 station)Work Capacity Work Performed by approx. 2.5 Workers*/h (1 station)

This automated boxing machine reads the three linear dimensions of large
and irregular-shaped items, which are difficult to pack, and creates a box
to fit its size. It effectively reduces use of packaging materials as well as
improves work efficiency and packaging quality.

Environmental
Efforts

1 2 Receiving/Transporting

Movable pallet trucks reduce the number ofpassageways and expand storage space within
warehouses. It increases the storage efficiencyof large and heavy goods.

Sustainability

Shipping Capacity 70 shipments/h (1 station*)

This effectively uses space to enable efficient storageof large and heavy goods. Large-size cranes are used
to automatically transport goods, making it possible
to perform tasks fast and accurately.

Human Resources

AMRs are used for pallet transfer, especially after receiving large items orlarge quantities of goods for which pallet transfer is a labor-intensive andtime-consuming process. This contributes to a reductionof man-hours through labor savings.

Explanatory
video

TohokuSaitama

Tokai

Osaka

Sorting Capacity 300 product types/h (per robot)
Explanatory
video

Saitama

Explanatory
video

Integrated Report 2023

43

Sales Strategy
Kazuo Nakai

Activities to deepen mutual understanding with customers(as of December 31, 2022)

Manufacturing Industry, Construction-related Businesses, etc.

Online Shops, etc.

198

Arranging repair service for a customer using the Naojiro Repair Workshops website (Natsumi Nakamura, Nigata Branch)

Manufacturing Industry,
General Consumers, etc.

Sustainability

Providing high quality services required for e-business

Environmental
Efforts

We are developing business for mail-order companies that sell products via the Internet andbusiness that links the purchasing systems utilized by users with our electronic catalog (Orange
Commerce (see p.47)). By linking data in real time and visualization of the procurement process,we are helping our customers to improve order efficiency.
We provide support for user procurement efficiency

Home center route108

Outdoor Work, General
Consumers, etc.

Corporate
GovernanceHome Center
Pro Shops, etc.

Supporting businesses that integrate physical and online businesses
Increasing contact points with customers to solve issues as
quickly as possible (Kasumi Yanaka, Tokyo Branch)

The home center route involves doing business with home centers that have large stores nationwide and professional stores that serve craftsmen as customers. In recent years, we have beenworking to integrate physical and online businesses by promoting services that allow users topick up products in stores in response to the growing demand for omni-channel services that link
stores and mail-order sites.

Overseas Route

By offering our Direct Delivery Service, which handles shipments to users, and NIAWASE(Order Consolidation), which ships products collectively taking advantage of our abundantinventory, customers can streamline their operations and reduce their environmental impact.

Overseas Dealers, etc.

408

The Nakayama visually
Corporate Data
impaired welfare foundation

Responding to changing delivery styles and tackling environmental issues

Integrated Report 2023

4,861This route is to do business with customers in a wide range of industries, such as with machine
tool dealers who mainly handle equipment and factory auxiliary materials, and welding material
dealers who mainly handle high-pressure gas. By having sales offices throughout Japan, we areable to respond quickly to any problems and strengthen the cooperative system of each region. In
recent years, we have introduced MRO Stocker (see p.46), which is like “Okigusuri,” a businessmodel that has been around for many years in Japan, but for tools. We also focus on proposing
environmentally-friendly products and repair services.

e-Business Route

By increasing the number of points of contact with customers, we will grasp the details of
various problems and strive to streamline purchasing and simplify operations.

44

incidents

Human Resources

Meeting with MRO Stocker user and customer(Right: Natsumi Nakamura, Niigata Branch)

Improving convenience for customers when being provided
with estimates and when placing orders· Through NIAWASE (Order Consolidation) and Direct Delivery Service utilization, customers
can reduce their shipping work, amount of packaging materials used, fuel costs, and otherfactors, thereby reducing their environmental impact.
· As demand for repairs increases due to environmental considerations, we support efforts
to address environmental issues through “Naojiro” (see p.47), repair service that requires
no customer-side labor, packaging materials, or shipping charges when shipped bycustomers by utilizing our delivery service.

companies

Toward a sales style that further utilizes digital technology

Initiatives during the 61st term

· We will learn about the diverse needs of customers who have installed MRO Stocker anduse data analysis and other methods to review the products that have been stocked inorder to further increase the frequency of use.
· Digitalization will be promoted to improve customer convenience, such as automated estimates
via TRUSCO Orange Book.Com, which can provide estimates in as little as 5 seconds, and
T-Rate, an app that allows users to chat with a TRUSCO representative even when on the go.
Even in such a situation, we will ensure that things which cannot be handled digitally arehandled by humans in a kind and courteous manner from the customer's point of view.

companies

Digital Service· Although the number of MRO Stocker (see p.46) locations was approximately 300 until
2021, the number of MRO Stocker locations has suddenly jumped to approximately 1,000
including reservations due to the advancement of collaborations between the TRUSCO andour customers.
· We have also helped our customers to streamline their operations and expand their sales
channels by utilizing our unique Direct Delivery Service (see p.46)

Machinery Tool Dealers
Welding Material Dealers, etc.

Overseas subsidiary:
TRUSCO NAKAYAMA CORPORATION (THAILAND) LIMITED
PT. TRUSCO NAKAYAMA INDONESIA

Brancheswith inventory

Sales

Factory Route“Meet the people you need to meet and tell them what you need to say”
In addition to our existing customers, we focused on making new customers with whom we
had no previous contact also aware of our unique services while at the same time getting toknow new customers.

$1,218 million Home center route $158 million
e-Business RouteSales$368 million Overseas Route $15 million
Total$1,760 million
Numberof sales Japan 59 locations
29 locations Overseas 2 locations
branches
Number of) 31,614 sales accounts (+2,053)
customers 5,575 companies (+48
Number of Companies Connected
2,233 companies (+191)
to Orange Commerce
NumberUnder
MRO Stocker introduced 775 locations (+446) negotiation 395
Factory RouteDistribution

A review of the 60th term

We are grasping the latent needs of our customers that are not quantified and are working
to solve their problems by utilizing our product,
logistics, and digital services. By providing services suited to the characteristics
of each route and realizing onestop purchasing from customers
to users, we will continue to conRoutespecific
tribute to improving productivity
strategies
and sales in the entire industry.
websiteSales Strategy Key Indicators

Products

Our role in sales is not just to sell things but to understand the problems of our customers to propose the best solutions. To this end, we will accurately identify problems by
establishing effective customer contact points in response to changes in the social
environment and needs. We will use our unique services to solve problems and becomea reliable supplier.

One-stop purchasing that integrates products, logistics, anddigital services

Management
PolicyDirector
General Manager of the Sales Department

Value Creation

Route specific strategies

By constantly solving ever-changing issues,
we will build customer trust

Expanding Private Brand (PB) business at home
centers throughout Japan

Overseas Manufacturing
Industry, etc.

Overseas business based on our unique strengths
This is the route we take to do business with overseas subsidiaries of domestic customers andcustomers who handle local machinery tools. We have local subsidiaries in Thailand and Indonesia, where we provide the same quality of service as in Japan. We are contributing to the development of manufacturing in those regions by utilizing our unique strengths such as providing
catalogs and inventory for those local markets.
Picking up a product to be repaired using a dedicated Naojiro container(Right: Anna Sasaki, Fuji Branch)

Approximately 100,000 copies of the Trusco Orange Book
Digest (overseas version of TRUSCO Orange Book) areavailable in three languages (English, Chinese, and Thai)
Integrated Report 2023

45

Orange Commerce (electronic purchasing system)

Environmental Conservation Through a
Wholesaler-based Direct Delivery Service

Combining our normal Orange Book withcustomer electronic purchasing systems

End-Users
Production Factories
Constructions Sites
General Consumers

2017

2018

2019

2020

2021

2022

2023

(planned)

Sales❷Product information acquisition

Purchasing
System❸Orders

Our Direct Delivery Service solves various issues❻Delivery❺Delivery❼Payment❽Payment❺Delivery (Direct Delivery Service)❹Shipping data

Human Resources

Factory

Digital Service

Customers❶Login

TRUSCO
BranchDistribution
CenterWorkflow

Designated Customer
Manager

A computer is used
to check theaccount statement.

Restocking
of inventory

Payment for
products used

Core System
Delivery

Logistic Centers

Number of items in inventory: 87 Number of shelves: 4 medium lightweight shelves“MRO Stocker contributes to the stabilization of our production process”
Mr. “U,” Plant Manager
Prior to adopting MRO Stocker, we relied on the experience and feelings of theperson in charge of placing orders for tools and supplies, which sometimes resulted in overstocking or understocking.
Since the adoption of MRO Stocker, we have been able to obtain the products weneed when needed. This has led to the stabilization of our production process withMRO Stocker being used very effectively. We intend to continue to increase thenumber of MRO Stocker items to improve our production process.

Main inventory items

Consumable supplies(chemical protection
suits, tapes, wastebags, etc.)

Started in 1998, Naojiro Repair Workshops provide a unique TRUSCO
service for repairs and maintenance that includes PRO TOOLs repair
and resharpening of cutting tools. By promoting recycling and reuse,
we support our customers' efforts to address environmental issues.
Products for which service is requested using the Naojiro Repair Workshops website “Nao-SIS” will be pickedup as required using our own vehicles.
Since we use the Naojiro Repair Workshops dedicated containers for pickups, no packing is required.
Naojiro Repair
Naojiro Repair
Workshops Services
Workshops(Naojiro Repair Workshops results as Basic
Catalog
Information
Websiteof December 31, 2022: $12 million(+13.9%))The Nakayama visually
Corporate Data
impaired welfare foundation

Railroad car electrical equipment maintenance company

A service that combines the reuse of PRO
TOOLs and efficiency for our clients

Corporate
Governance

Example of MRO Stocker Adoption

Environmental
EffortsUser
Can obtain products
using a smartphone

Sustainability

Repair Workshops “Naojiro”

Request to replace items taken from inventory
is automatically made based on usage status

Designated Sales Agents(Customers)

MRO Stocker is like “Okigusuri,” a business model thathas been around for many years in Japan, but for tools.
MRO Stocker is stocked with consumables that users
utilize on a daily basis in the manufacturing process, responding to the needs of manufacturing
sites that need certain products immediately.
MRO Stocker locations: 775
MRO Stocker
website(as of December 31, 2022)

Integrated Report 2023

2016

1,367
1,101 1,263

Orange Commerce

Scan the QR
code for more
information

MRO Stocker

46

860

2,600

Users

Delivery times
Amount of packaging materials used
Shipping costs Environmental burden Labor

TOPICS

839

2,042 2,233

Workflow

Our Direct Delivery Service canreduce the following by half

MRO Stocker

No. of Companies
Connected (companies)

Distribution

Orange Commerce is an electronic catalog that can be linked withcustomer purchasing systems. The trend toward electronic purchasingis accelerating, especially among major users, with theaim of improving procurement efficiency and reducing
costs. It is a service that enables us to work together
with our customers to respond to the requests of users. Scan for more
Number of Companies Connected: 2,233 (as of De- informationon Orange
cember 31, 2022)
Commerce

Products* TRUSCO does not sell any product directly to users.
* Our shipping charges for Direct Delivery Service are subject to certain conditions and not all orders from customers qualify for Direct Delivery Service.

Customers
Online Shops
Home Centers
Tool and Hardware Stores

Number of Companies Connected to Orange CommerceManagement
PolicyEnvironmental Protection
through Direct Delivery Service

With our Direct Delivery Service, products ordered variety of customers are delivered to users directly from, our distribution centers. By
shipping directly to users without shipping to customers first, not onlyis the lead time for delivery shortened but the customer's delivery andshipping costs are also reduced, which is linked with expanding sales
to customers located in remote areas.
It also contributes to environmental conservation since it is able to reduce CO2 emissions associated with packaging materials and transport(Number of packages delivered via Direct Delivery Service: 3.55 million
units). In addition, multiple orders received from online
shops and retailers will be bundled together using NIAWASE (Order Consolidation) and delivered to users.

Value Creation

Direct Delivery Service

The Eight Services Available Through Naojiro

RepairRe-grinding

Calibration

Reuse

Machining

Maintenance

Assembly

Construction
and Installation

TRUSCO is creating posters and catalogs so that our customers, who are aware of environmental issues, know thatthey have the option of repairing/servicing their tools.
Integrated Report 2023

47

Our Overseas Sales Section delivers PRO TOOLs
around the world leveraging the strength of ourimmediate delivery system
UK

USA

Overseas Subsidiary

FranceGermany
Switzerland
IsraelImmediate Delivery System Usage Example

Overseas Sales Dept.
Unique business created by combining management resources

Japan

Overseas

Order is received andpackage is sent onflight on the same day

Next-day Arrival

China

South Korea
Hong
Kong Taiwan
MyanmarThailand
Vietnam

Malaysia

TRUSCO NAKAYAMA CORPORATION (THAILAND) LIMITED

PT. TRUSCO NAKAYAMA INDONESIA

This subsidiary has continued to expand its sales to Japanese dealers
and to major local dealers. By holding inventory and strengthening our immediate delivery system, we are contributing to the efficiency of the PRO
TOOLs supply chain in Thailand by collaborating with local customers. In
recent years, we have also been promoting our own initiatives, such as
direct trade with Japanese manufacturers, to reduce purchasing costs andincrease our share of local sales.

There were many factors that hindered PRO TOOLs distribution in Indonesia, such as heavy traffic congestion and strict import regulations. For thisreason, we have set up a distribution center in an area where many factories belonging to Japanese companies are concentrated. With the largest
inventory in the region, we are taking on the challenge of optimizing PRO
TOOLs distribution. Against the backdrop of domestic demand in a company with a population of 270 million people, we will continue to contributeto Indonesia's advancing manufacturing industry.

● Trade name: PT. TRUSCO NAKAYAMA INDONESIA

Changes in sales and number of different products in inventory at
TRUSCO NAKAYAMA CORPORATION (THAILAND) LIMITED● President: Yohei Takuno

212 71,481
69,297($5,200)
67,004
Number of items in inventory
166
60,785($4,092)
128 51,523● Number of different products in inventory: 70,000● Inventory value: $5 million

96● Total number of items in inventory: 553,000

74● Value of investment: Land, $1.7 million; Buildings, $1.5 million

0.9($2,178)106($2,800)($1,700)

37($721)

3,195 3,472 4,736 4,968($2,971)

84 28,489

Amata Nakorn
Industrial Estate

2011

2012

2013

● Area of grounds: approx. 16,178 ㎡

134($1,850)● Floor area: approx. 10,429 ㎡● Inventory value: $4.2 million

16,177● Total number of items in inventory: 410,000

2016

2017

2018

2019

2020

2021

2022 (year)(1st Term) (2nd Term) (3rd Term) (4th Term) (5th Term) (6th Term) (7thTerm) (8th Term) (9th Term) (10th Term) (11th Term) (12th Term) (13th Term)
Soekarno–Hatta
2-month
9-monthInternational Airport
financial results
financial results
JakartaNote: Sales in USD for each term are calculated using the exchange rate at theDelta Silicon 6
end of the period.
industrial zone

Developing top local brands

2010. 9In order to support manufacturing in Thailand, we have examined the manufacturersof products that are in demand at manufacturing sites and have started carrying those
products.
From work supplies to work tools, we are
expanding the number of manufacturersthat we work with so that we can quickly
respond to requests for different brands
from those in Japan.

($1,564)

20,476($1,271)

Number of items
in inventory
19,115● Value of investment: Land, $8 million;
2015

26,470● Number of different products in inventory: 66,000

9,768
2014

33,199 32,808 65,910 65,624 66,971($1,800)● Equity: 99.9%($2,028)

History
Established under name PRO TOOL NAKAYAMA CORPORATION(THAILAND) LIMITED
Capital: 50 million baht
2011. 2 Start of sales
2011. 12 Capital increase of 30 million baht, raising capital to 80 million baht
2014. 11 Change of name to TRUSCO NAKAYAMA CORPORATION (THAILAND)
LIMITED2015. 4 Capital increase of 30 million baht, Capital increase to 110 million baht
2015. 6 Capital increase of 180 million baht, Capital increase to 290 million baht
2015. 12 Relocation of office building (company-owned building)
2016. 9 Capital increase of 100 million baht, raising capital to 390 million baht

● Established: December 2014

Buildings, $4.5 million

Bangkok
Suvarnabhumi
International Airport● A ddress: Lippo Cikarang District,Bekasi, Jawa Barat (about 40 km eastof the capital city, Jakarta)
Jl. Kenari Raya No. 36 Delta Silicon VI,
Jayamukti, Cikarang Pusat, Kab. Bekasi 17815.

Amata Nakorn
Industrial Estate

59,653 28,255($1,471)

49,52028,2402,365($142)

2015

Soekarno–Hatta
International Airport(2nd Term)

Jakarta
Delta Silicon 6
industrial zone

History

Product introduction flyer
for local customers

55,4182014. 12 Established under name PT. TRUSCO NAKAYAMA INDONESIA
Capital: About 54.2 billion rupiah
2016. 1 Start of sales
2017. 2 Capital increase of 261.3 billion rupiah, raising capital to315.6 billion rupiah
2018. 11 Capital increase of 63.1 billion rupiah, raising capital to378.8 billion rupiah
2019. 3 Relocation of office building (company-owned building)2016(3rd Term)2017(4th Term)2018(5th Term)2019(6th Term)

2020(7th Term)

2021(8th Term)

2022(9th Term)(year)

Note: Sales in USD for each term are calculated using the exchange rate at theend of the period.

Increasing the numberof manufacturers that
we trade directly with

The Nakayama visually
Corporate Data
impaired welfare foundation

TIP7 789/8 Moo9,Bangpla Bangplee
Samutprakarn 10540 THAILAND

2010($2,364)

Net sales (million rupiah, thousand USD)

● Employees: 21 (3 employees on loan and 18 local staff)($3,307)

Bangkok
Suvarnabhumi
International Airport

40,893

Corporate
Governance($14)● Address: Bangplee, Samutprakarn

Integrated Report 2023

● Capital: About 378.8 billion rupiah (about $22 million)($4,735)● Floor area: approx. 4,730 ㎡(13 km south of Suvarnabhumi International Airport)● Business areas: Wholesale of PRO TOOLs (secondary materials used in factories)

70,602 ($6,050)($3,171)

Environmental
Efforts● Area of grounds: approx. 10,942 ㎡

221

52,314● Auditor: Naotsugu Kamijyo● Officer in charge at TRUSCO NAKAYAMA Corporation: Kazuo Nakai

Net sales (million baht, thousand USD)

● Equity: 99.9%

Changes in sales and number of items in inventory
at PT. TRUSCO NAKAYAMA INDONESIA

Sustainability● Established: September 2010

As of December 31, 2022

TRUSCO Thailand staff● Employees: 22 (3 employees on loan and 19 local staff)

Office and warehouse of PT.
TRUSCO NAKAYAMA INDONESIA
TRUSCO NAKAYAMA INDONESIA staff

Company Overview

207
194 ($5,371)

Human Resources● Capital: 390 million baht (about $9 million)

Digital Service

Office and warehouse of TRUSCO
NAKAYAMA CORPORATION(THAILAND) LIMITED● Trade name: TRUSCO NAKAYAMA CORPORATION (THAILAND) LIMITED● Business areas: Wholesale of PRO TOOLs (secondary materials used in factories)

New Zealand

Sales

Overseas Subsidiary

Distribution

Overseas Subsidiary● Officer in charge at TRUSCO NAKAYAMA Corporation: Kazuo Nakai

MexicoPhilippines

Indonesia

Sent to 108 companies (two of which are TRUSCO local subsidiaries)
in 20 different countries/regions around the world
Note: Time difference not accounted for.
Business which focuses on shipping PB products in batches (by container).

● Director: Naotsugu Kamijyo

Japan

Singapore

In overseas sales, we are mainly exporting our TRUSCO Private Brand products to countries around the world. In general, importing and exporting takes
time and effort, but thanks to our inventory strategy and strong logistics capabilities, we have been able to build an immediate delivery system for exports,
enabling us to meet the demands of each country.

Company Overview As of December 31, 2022

48

Denmark

Products

In order to contribute to manufacturing around the world, we are accelerating our exports to various countries as well as business with local subsidiaries. In terms of domestic exports, we are currently doing business with 408 companies in 20 countries around the world, and we are developing
unique businesses that can be realized by combining our management resources. Our local subsidiaries are located in Thailand and Indonesia, where
we are contributing to local manufacturing by utilizing our strengths, such as providing local catalogs, our abundant inventory, and immediate delivery
system. We will continue to expand our trading area and aim to become a company that can meet the demand for MRO from all over the world.

Management
PolicyResponding to MRO demand in countries around the world● President: Kazuaki Harada

Value Creation

Overseas Business

AQUASYSTEM Co., Ltd. OLFA CORPORATION

We are doing more business directly
SHIZUOKA SEIKI Co., Ltd.
with manufacturers without going
through a parent company. We are
now able to carry products designed KYOTO TOOL Co., Ltd. SUIDEN Co., Ltd.
for the local voltage and models exclusively for the overseas market, further
improving our product lineup.
NITTO KOHKI Co., Ltd. YOKOHAMA OIL&FATS
INDUSTRY Co., Ltd.
The number of manufacturers that wetrade directly with is increasing annually
Integrated Report 2023

49

Digital Service Strategy
Becoming the Company We Want to Be by
Utilizing Digital Technology

Atsushi Kazumi

AnalysisAI

Automation of all work thatcan be automated(see p.53)

Achieving the industry's “fastest,”“shortest,” and “best” deliveries,
aiming to make the catchphrase “Thebest is already there” a reality(see p.52)

Medium-term Digital Transformation Strategy

Proposals andDeliveries by
Anticipating
Customer Needs

The Nakayama visually
Corporate Data
impaired welfare foundation(see p.46)

Easy to Connect
to and Maximize
Use ofCollection and
Refinement of Product,
Shipping, and Other
Basic Data

Corporate
GovernanceDirect Delivery
Service

MRO Stocker is like
“Okigusuri,” - a business modelthat has been around for many
years in Japan, but for tools

One-stop MRODistribution

Environmental
Efforts

Users

R

Changes in Staff
MindsetCreation of a System
That Urges Growth

Shared Industry
Database

TRUSCO Platform“TRUSCO HACOBUne”

EC Website

Communication Tool
T-RateEstimate System●

Inventory data

Customers

NIAWASE (Order
Consolidation) reduces
the number of times
products are received,
which reduces waste

Users· Start building databases, such as a product database, which contain highly-accurate data
· Strengthen infrastructure such as networks in preparation for the increase in inter-company collaboration in the future· Create a security environment that allows our business partners to use our systems withpeace of mind

Suppliers

Able to easily
search for similar
products. Searchtime is reduced.

AI-based
Immediate AutomatedData Created at Manufacturing Sites(machine operating status/production status)
Data Lake Structure

Implement security
and disastercountermeasures tocreate anenvironment that canbe used with peaceof mind at any time

Supplier Portal“Polario”●

In order to continue to grow our business and respond to the diverse requests of our customers, we will continue to build a system platform that enables our customers to conducttransactions with peace of mind.

Reduced inquiries
to suppliers
because of TRUSCO
inventory linkage

Discontinued

Safety and security

Working to solve the problems of our suppliers on the whole

Building a System Platform for the Future2021 to 2026

Customers

Increase theprocessing powerof the system inanticipation of
future sales andserviceenhancements

2019 to 2020

TRUSCO

By improving thequality of data andmaking full use of
precise data, it canbe used in a variety
of services

DX2.0

Suppliers· Reduce inquiries to suppliers through supplier inventory linkage (started in 2022)· Propose similar products by improving product information. Reduce the time and effort
required for retailers to search for products· Reduce environmental impact through NIAWASE (Order Consolidation) and Direct Delivery
Service to eliminate unnecessary delivery work

DX1.0

Sustainability

Data enhancement

Our distribution services aim to increase the efficiency of the entire supply chain and reduce
the environmental impact as much as possible. To that end, we are striving to make the bestuse of digital technology to provide better services.

Human Resources

We will continue our digital transformation for every business scene where we have contact with customers to improve theconvenience of the entire supply chain, from the construction of a shared industry database to the delivery of products to users
ahead of time.

Initiatives during the 61st term
Building a sustainable value chainpt

Providing Unparalleled Convenience in PRO TOOLs Procurement

MRO Stocker
Aiming to improve both databases and human resources toutilize data

Enhanced
processing
performance%

Digital Service

Product
Data

Provision toother companies

pt

DX2.0

Distribution
Data
Human Resource Development

%

Sales

Databasept

Distribution· Aiming to become a data powerhouse, we improved our skills through educational
opportunities for management to staff focusing on taking what was learned and putting it
into practice· Built a foundation that can centrally manage various types of data and utilize them flexibly
and quickly· Used data and AI to improve the convenience of new services

Sales Data%

Ratio of Web-based
estimate requests

Products

We aim to make use of the data accumulated in business to grasp conditions in the field ina timely manner and to respond more quickly and appropriately. To that end, we are focusing
on building a data infrastructure and training data human resources.

22.6 (+4.4 )46.0 (+3.3 )System order intake ratio
85.2 (-0.1 )Digital Expenditures (most recent three periods) $17 million
Automated estimate ratio

DX1.0

A review of the 60th term
TRUSCO aims to become a data powerhouse

Digital Service Strategy Key Indicators

Digital transformation is a step of a process, not an end
goal. In order to put our policy “Business must serve
people and society” and slogan “GAMBARE!! JAPANESE MONODZUKURI” into practice in order to makea difference, it is essential for us to utilize digital technology. We plan to further accelerate digital transformation(TRUSCO DX2.0), including the use of AI and robots, toprovide an unparalleled level of convenience that no othercompany can match.

To become the company that we want to be, we regard continuous enhancement of ourdigital capabilities to be essential. In order to realize sustainability on a global scale,digitalization of society as a whole is being promoted. By utilizing our digital infrastructure throughout the Japanese manufacturing value chain, we will strive to meet ourcustomers' constant demands, such as making sure they have everything they need,
prompt and reliable delivery, reasonable prices, high level of convenience, kindness,
politeness, and security, and reducing their environmental impact.

Management
PolicyDirector
General Manager of the Business Management Department andDigital Service Strategy Department

Value Creation

TRUSCO's Digital Transformation

Aiming to increase convenience andbuild a sustainable value chain

Cloud Migration andEnhanced Security of
System Platform

Ability to SelectProducts to be
Stocked Enhanced
Distribution and
Delivery Capabilities

Benefits of system platform enhancement
50

Integrated Report 2023

Integrated Report 2023

51

Use of Industrystandard Data
(2024)

UX
Platform

Proposals andDeliveries by
Anticipating
Customer Needs(2026)

TRUSCO DX Measures

Customers
Communication Tool

Representative
Product Div. Logistic Centers

We always have what customers need and deliverproducts quickly

Availability of all types of necessary product data

Voice call app

Product Database

Inventory Management
System

AI-based Search Tool

Sales Support
SystemP.39

DataAI-based Immediate
Automated Estimate System

1,000

Product Searches,
Estimates, Ordering, etc.

Human Resources

Anticipate Product Data Expansion(Unit: 10,000 items)

Representative

Digital Service

We will expand our product data to cover more than ten
million items by building a system to implement automatic
analysis and collection functions of product data using AI. We
aim to achieve dramatic efficiency in product selection andindustry standardization of product data.

RepresentativeSales

2 Product Data Platform

Users

BranchDistribution System

1 Distribution Platform

In addition to demand forecast AI, Planet Aichi, a next-generation distribution center which will hold one million items in inventory, is scheduled to
begin operations with the implementation of a distribution facility integrated management system (WES) designed to automate even inventory andpersonnel allocation decisions.

Starting with the launch of our core system “Paradise 3” in January 2020, we have released various systems to improve
convenience with the aim of automating all tasks that can be automated in the supply chain. In addition to internal business reforms, including our AI-based quotation system, which realizes dynamic pricing using AI, and ZAICON 3, ourinventory management system that forecasts demand for each individual product to drastically cut down time used forinventory management, our company, which is in the middle of the distribution chain as a wholesaler, is promoting the reform of business practices throughout the supply chain by utilizing digital technology aiming at digital transformation.

Suppliers

Create new value through centralized
control and usage of data

(shared database forplatform data)

Automation of all work that can be automatedDistribution

Data Lake

Customers can easily
connect to the platform
to take full advantage
of its features.

TRUSCO DX 1.0

Products

Product Data
Platform

Suppliers

TRUSCO HACOBUne was created
to serve as a platform that integrates
distribution, product data, and UX (userexperience) to achieve the “fastest,”“shortest,” and “best” delivery in theindustry, aiming to make the catchphrase “The best is already there” a reality. By streamlining the entire supply
chain, we will create a foundation forproviding the highest level of convenience to our customers.

Easy Connect
Platform

Management
PolicyToward becoming a “platform
holder” that supports manufacturing sites

One-stop MRODistribution(2026)

Value Creation

Distribution
Platform

Customers

TRUSCO DX 2.0

Search and information website for PRO TOOLs.

553

Dashboard

AI

423

252

316

282

P.39

Products
PricesInventory
Delivery Date
etc.

P.46

Electronic Purchasing System

Electronic Purchasing
System of User

AI Dashboard allows data to be visualized, analyzed, and used in proposals

2018

2019

2020

2022

2027 (year)

Core System

Real Time Information Platform

Data
Products/Prices/
Inventory/Delivery Date

Strategic partners that support our digital transformation (in alphabetical order, honorifics omitted)

Allows users to easily select and purchase thebest products

Allows anyone to help customers

Frameworx, Inc., IBM Japan Co., Ltd., Nomura Research Institute, Ltd., SAP Japan Co., Ltd., SCSK Corporation

During Integrated Sales, customer interactions are digitized
and accumulated in a data format. We aim to create an environment where anyone can provide high-quality service to customers at any time by sharing information among sales staff.

‌Responding to security risks

Internet

Considering the possibility thathigh-speed and dense data sharing
throughout the supply chain could
lead to the leakage of personal or
corporate information, we have
implemented optimal data placement
and authorization settings.

Network attacks

Deliverybased onpredicted
demandDelivery time 0 min.

Delivering products in advance is made possible by MRO Stocker

Integrated Report 2023

Based on the accumulated customer information, we
continuously realize proposals that suit our customers

Users

Spam
Fraudulent websites

Customers
Normal communication

Web filter

Customers

VirusesSpam blocker

Deliverybased onpredicted
demandCustomers are provided with the best proposals

Unauthorized access

Anti-virus software

TM

Information on the person in charge, flow ofgoods, job description, past property delivery
information, and manufacturer information

Unauthorized access protection

Information

Visualization of customer and user information

TRUSCO NAKAYAMA Corporation
FirewallUsers

The Nakayama visually
Corporate Data
impaired welfare foundation

4 Integrated Sales

Corporate
Governance

3 UX Platform

We will further advance user experience (UX) by implementing a searchfunction for equivalent products and a linkage function with manufacturer
inventory information for a vast array of products. MRO Stocker aims torealize the delivery of products that users will need in the future by using
data and AI to make proposals ahead of time.
MRO Stocker

52

2021

Rapid expansion of product data using AI

Environmental
Efforts

P.47(conceptualized image)

Sustainability

AIWebsite for Business
Coordination

Visualization of customer and user information and realization of optimal proposals

Integrated Report 2023

53

Human Resources Strategy
Linking employee growth with our corporate growth

Atsushi Kazumi

Overview of Our Human Resources Strategy

A review of the 60th term

Value Creation and Problem Solving

Training and learning support
Revised review criteria
Talent management system

Diversity

Program/System

Diverse hiring
Active participation
by female employees
Utilization of veteran employees

Revised human resources system
Revised qualification level system
Revised remuneration system

years

Average number of overtime
hours per month

Male 43.4 years
Female 33.0 years

18.1hrs. (＋3.7 )hrs.

Becoming the Company We Want to Be

Human
Resources Strategy

Individual Growth and Company Growth are Linked Together

Various individuals
Rewarding Work Environment

Benefits and Welfare

Personnel Transfers

Job Rotation System and
Job Challenge Program

P.55

Career Development

Diverse Career Options andSupport Systems

P.56

Evaluation System

Open Judging System(OJS, 360 degree evaluation system)

P.56

Human Resource Development

Job Training Programs that
Create Personal Growth

P.57

Human Resource Recruitment

Acquiring human resources thatpossess original ideas

P.59

Health Management

Decreasing birthrate and aging population / Diversity of values / Shift to digital technologies / Globalization

TRUSCO received the Good
Career Company Award 2022
Grand Prize (see p.26) for its
efforts listed above.

GOOD CAREER COMPANY
AWARD 2022

Our Policy

Job Rotation System and Job Challenge Program
Programs that encourage employees to take on challenges

Around five years after joining the company, employees are transferred
across departments, such as sales, distribution, Head Office, etc., andjob rotations are conducted within departments. This is a measure to
avoid personalization of work and to improve work and human skills by
experiencing a variety of jobs, as well as to raise awareness of work
reform through organizational “metabolism,” thereby raising the levelof corporate growth.

Boss Challenge Program Started in 2001
This is a program that allows employees to pursue their career goals by
becoming a candidate for a position or nomination in order to become an
officer with the most authority in a given area. Participants are actually assigned as assistants to managers in charge and learn management skills
as they work toward becoming bosses.

Employees are transferred across departments
to hone work and human skills

This is a program that allows an employees to apply for a position of his or
her choice when there is a request for an increase in personnel.

Business Management Dept.

Dual Position Job Challenge Program Started in 2020

ValuesValue

Business
Digital Service

PeopleBusiness(TRUSCO HACOBUne)

Digital(unparalleled level ofconvenience)

Current System

FutureDigital Service
Strategy Dept.

Distribution
Dept.

Open Position Challenge Program Started in 2020

This is a program that allows an employees to work in a desired position
while maintaining their current position.

Desired Position Notification Program

People(originality)

Sales Dept.

Product Dept.

The Nakayama visually
Corporate Data
impaired welfare foundation

Personnel transfers help hone work and human skills

Corporate
Governance“Business must serve
people and society”

Personnel Transfers

Environmental
Efforts

Grand Prize(economic value/social value)· Develop human resources with a high emotional intelligence (EQ) levels· Increase engagement, create a sense of unity with organizations, and improve productivity· Create more appropriate personnel evaluation systems and educational opportunities

Corporate
MissionSupporting various values and work styles

Personnel system reform designed to create a company where
employees can continue to work for life

· Accelerate the speed of the TRUSCO HACOBUne project and develop digital humanresources· Acquire the form (frame) of “problem solving,” visualize issues, and implement concrete
solutions· Accelerate the proliferation of environmental impact reduction services including our Direct
Delivery Service, MRO Stocker, NIAWASE (Order Consolidation), and Naojiro Repair Workshops

In advancing various reforms, we will foster traits such as “empathy,” where employees
share their strong beliefs and values, and “persistence,” a trait that allows us to overcome
difficult barriers. While giving importance to making use of these traits, we aim to develop
human resources who can think and collaborate with each other by accumulating knowledge
and hardships gained through experience.

39.8

Evaluation/Human
Resource Development

Job Rotations
Job Selection (multiple choices)
Job Challenge Program (where
employees work in a different
position of their choice)In the 61st term, we will develop independent human resources through initiatives to create
value for the future and practice solving current issues. In addition, it is essential that eachand every one of us actively participate in TRUSCO’s environmentally-friendly management
initiative, “Sustainability.” We will work to develop human resources who have a sense ofownership and are committed to solving problems.

We aim for growth by “putting what we have learned into practice”

Average age

Sustainability

61st 61st term

Initiatives
duringtheInitiatives
duringthe term* Personnel with supervisory qualifications or higher

Human Resources· Five new courses for career selection (see p.56)· We started an open position system and a concurrent job challenge system where employees can apply on their own· Established the HR Support Section to support the careers of each employee, including
managers

577persons Number of officers * 155 persons
Number of supervisors 10 persons

Number offull-time staff
Female35.2%
staff ratio Ratio

Digital Service

In an era where the future is uncertain, I believe that focusing on the work in front of us willlead to a bright future. At the same time, since work styles and values regarding work
satisfaction are diversifying, it is difficult to develop human resources in a uniform systemand environment. Therefore, we conducted personnel system reforms that expanded careercourses and work styles in line with various values.

Career Development

persons

Sales

Expansion of personnel system for autonomous career development

2,954

Employees

Officers
10 persons
Full-time staff 1,639 persons
Part-time staff 1,305 persons

Distribution

In order to realize our aspirations, it is important that each and every one of us grow with
our aspirations from his or her own perspective. On the other hand, it is also "the starting
point of growth to seriously tackle the work in front of you.” Through personnel rotations
across divisions, TRUSCO is striving to develop human resources who are self-awareand motivated with diverse values, such as specialist human resources who conduct
research work and a job challenge system that allows them to take on challenges on
their own, based on the development of employees who can be active for a long time.

Human Resources Strategy Key Indicators

Products

From distribution to sales, we aim to create an environment that does
not depend on other people's capital. In order to do so, the power of“people” is absolutely necessary. In an age when the environment ischanging and unpredictable, we aim to cultivate “people” who canthink and act autonomously. By enhancing our personnel system in
response to the diversification of job types and work styles, we aim
to provide a stage where each employee can play an active role withmaking their jobs more satisfying and easier, linking individual growthwith corporate growth.

Management
PolicyDirector
General Manager of the Business Management Department andDigital Service Strategy Department

Value Creation

Human Resources Strategy

Aiming to become a company that continues to serve
customers by creating value and solving problems

Started in 2022

This is a program that allows employees to think about which position theywant to serve in and notify the Personnel Department of their wish. The information described is used as a reference when personnel changes are made.

We will work together to create future value and solve current issues
54

Integrated Report 2023

Integrated Report 2023

55

Human Resource Development

Job Training Programs that Create Personal Growth

Aiming to become a company where each and every employee can play an active role, TRUSCO has established various career courses. These systems allow employees to make theirown choices according to their diverse life and career plans.
Making their own choices improves their lives and motivates them to work and grow boththemselves as individuals and the company.
In January 2022, we established the HR Support Section to support the independent careerdevelopment of each and every employee.

Although the training implemented by TRUSCO is based on on-the-job training, we aim to create an environment in which trainees can receive knowledge that they cannot learn throughon-the-job training to gain awareness.
We provide the experience gained from being at TRUSCO NAKAYAMA and a variety of learning
environments, including training, e learning, and distance learning.
New employee training session

Skill-up Course training●= Newly established course (2022)

Course List

Course Name

Course Details

For employees who are self-aware and are allowed to hone their abilities for growth, aiming to become managers or supervisors to work specificallyin distribution related positions, can be transferred with a change of residence, and fulfill ability and evaluation criteria.

Local Career
Course ●For employees who are self-aware and are allowed to hone their abilities for growth, aiming to become managers or supervisors capable of working
in a variety of positions in limited areas without a change of residence, and fulfill ability and evaluation criteria.

Specialist course

For employees who acquire a high level of job performance through self-development and, if necessary, transfer with a change of residence and use
their high level of expertise to serve up to the position of business manager in a specific department.

Expert Course ●For employees who are expected to play a role in accordance with their level and contribute to business performance by honing their skills in a specific field and specializing in that field only in their local area.

Area course

For employees who acquire sufficient working knowledge of the overall business that the employee is involved with and take on the role of business
manager only in their local area.

Top Management
Division General
Manager/Boss
Newly Appointed
BossesBoss Challenge
CourseLeader's
CourseFor employees who will be engaged in distribution operations such as delivery and product management only in their local area, responsible for
Local Area
Distribution Course ● serving in an advisory role for the total optimization of their distribution center and may take on the role of Distribution Center Manager.
Logistics course

Skill-up
CourseFor employees who will be engaged in distribution operations such as delivery and product management only in their local area, and are expected tohave the working abilities and skills to perform their various professional duties.

Open Judging System (OJS, 360 degree evaluation system) Started in 2001

Aiming to create a workplace free of ill feelings

Promotion OJS

Candidates
forsupervisor or
higherThis program enables more multifaceted
evaluations of candidates for a promotion of Determine if the candidate should/shouldsupervisor or higher by reflecting assess- not be promoted.
ments from other employees.

Candidates who have an 80% or
higher approval rating and satisfy theminimum number of votes are promoted.

All staffs

Performance, attitude, and ability are eachThis program reflects the evaluations beare graded on a 5-point scale (Boss (*1) andtween staffs who work in the same office in
Boss challenge program students(*2) arepersonnel ratings. Comments are included
evaluated on a 5-point scale for their abilito provide feedback to the individual.
ties to train, invigorate, and manage others).

30% of this assessment is reflectedin the personnel records related toachievement allowances, bonuses,
financial bonds, and promotions/demotions.

The evaluation is conducted once a year
by about 140 people, including the bosses and members(*3) of the Management
Conference. Each of 6 evaluation items
is rated on a 24-point scale.

Management who add/drop below acertain standard of points two years
consecutively become a candidate forpromotion/demotion.

2001

2003

Director, Auditor,
Executive Officer, 2012
Division General
Manager OJS

Director, Auditor,
Evaluators who are the bosses(*1) or higher
Executivein charge of the company, evaluate theCommittee, andexecutive’s performance at daily work andDivision General
what they say at management meetings.
Manager
An OJS system implemented directly by shareholders during the General Meeting of Shareholders. We consider this as one of the important evaluation indicators for the President.

Procedure

ResultVotes are received from shareholders
The results are posted on the Compawho have directly heard our businessny website after the General Meeting
reports and Q&A at the General Meetingof Shareholders.
of Shareholders.

President OJS

2014President

Part-time Staff
OJS

2015

30% of this assessment is reflected in the
The OJS program also applies to part-time Procedure: Determine the performance,
personnel ratings related to hourly wage
All part-time
staff and is highly evaluated for fairness and approach, and skill of the staff in fiveas well as bonuses and promotions. (alsostaffobjectivity.
levels.
utilized in employee promotion criteria)

Participants notice changes in society and realize the need to change themselves.

Follow-up interviews are conducted after one year of an employee’s branch assignment.

Participants specialize in on-the-job training (OJT), understand various systems, and learn about practical relationships with other departments.

New staff acquire the fundamental abilities and knowledge required for working adults such as business etiquette and knowledge about thecompany.

Other Job Training Programs
In addition to Trusco Stage Trial (our original education curriculum), we conduct a variety of other training courses as well. It is necessary for our employees
to continue to learn in order to perform their work at a higher level. These training courses provide various types of support in accordance with each person's
career and desire, including a level of on the job training (OJT) that goes beyond the boundaries of acquired qualifications and one's immediate organization.
Job Training Program

Staff Level

Overview

Area (Distribution)
Training Course

Area/Logistics
Employees

This training deploys staffs to another business location or distribution center for roughly one week. Establishing opportunities
where the employee can compare job sites helps them grow and enhances our operations.

Mid-career Employee
Training

Mid-career
employees

Through on-the-job training in each department, mid-career employees will learn about TRUSCO Nakayama, learn about theculture and climate of the company, and deepen their understanding of the company.

Orange Doctor
Examination
University Subsidy
System
TRUSCO Distance
Learning Courses

The Nakayama visually
Corporate Data
impaired welfare foundation

Started in Staff Level

Participants think and act as an ideal leader as the core of his/her own organization.

Corporate
GovernanceOJS Category

Participants acquire the viewpoint of a boss.

Environmental
Efforts

Training for
New Staff

The Open Judging System (OJS, 360 degree evaluation), an electronic-based voting system, is a personnel evaluation system for all employees
where employees are evaluated by each other that was introduced for the purpose of conducting fair and highly objective evaluations. Evaluating
one another helps build an environment of fair assessment with good energy in the air. (evaluations are anonymous)
Overview

Second Year of
Employment

Participants study deeply about the skills necessary for bosses.

Sustainability

Evaluation System

Third Year of
Employment

Practice future creation as the officer with the most authority
in their area.

Human Resources

Distribution Career
Course ●Digital Service

For employees who are self-aware and are allowed to hone their abilities for growth, aiming to become managers or supervisors to work specificallyin IT related positions, can be transferred with a change of residence, and fulfill ability and evaluation criteria.

We have established our own training system to help our employees become useful to people and society. By knowing exactly the types of human resources we are looking for at each stage, we give our employees the opportunity to become aware of what we are doing and to grow as individuals. Employees
reflect on their mindset and actions to determine what they need to do and what skills they need to develop. From that point on, we create opportunities tomake employees think about how things should be and what action to take.

Sales

Digital Career
Course ●TRUSCO Stage Trial
Distribution

Career course

For employees who are self-aware and are allowed to hone their abilities for growth, aiming to become managers or supervisors capable of working
in a variety of positions, can be transferred with a change of residence, and fulfill ability and evaluation criteria.
One of the following classifications shall be made according to the transfer destination of the candidate
1. Overseas Career Course: When the transfer destination is outside Japan
2. Domestic Career Course: When the transfer destination is within Japan

Personnel
evaluation OJS
system started
OJS

Products

No Education Beats Self AwarenessManagement
PolicyAiming to become a company where each and every employee can play an active role

Value Creation

Diverse Career Options and Support Systems

Career Development

Orange Doctor Examination was established for the purpose of enhancing staff knowledge about our products. This examination is held twice a year. Staffs who pass the examination receive an allowance of $71 per month for one year.
All employees

This system subsidizes $2,142 from the cost of acquiring a degree as educational support for gaining a bachelor’s degreefrom a University. The company also provides a $1,071 subsidy for staffs to acquire a bachelor's degree in another field.
“Becoming a human resource who has a track record founded in the skills necessary to grow a company all starts with thewill of the individual.” This is why the company provides 50% assistance for the course fees to staffs who complete a course.

We also offer a variety of other learning environments to enable employees to meet their objectives.

*1 Bosses: Included branch office managers, section managers, and distribution center managers *2 Boss challenge program students: Employees registered in the Boss challenge program designed for those who want tobecome bosses *3 Members of the Management Conference: Directors, Auditors, Executive Officers, and Division General Managers
56

Integrated Report 2023

Integrated Report 2023

57

Program

What you are doing is important, but when you are doing it is even more importantChildcare Leave Program (three years)

Happy Sunday Policy

Scan for listof programs

Lovebird Transfer Policy

1996

Half-day full-time
employee system

1996

Financial Bonds(annual payment for severance)

2003

Started in 2005 (Program participants: 18)

Transfer Request Policy

2005

TRUSCO employees can take childcare leave
until the end of the month during which the childbecomes three years old, if desired (Japanese law
allows employees of any company to take childcare leave until the day before the child becomes
one year old).

This is a system that allows employees who havebeen transferred not accompanied by family todelay coming to work on Mondays so that they
can spend time with their families at dinner on
Sundays when they return home on weekends(travel expenses for returning home twice a monthand company housing rent are paid separately).

This policy allows a staff to continue to work byaccompanying a spouse when transferred to thearea of that transfer regardless of whether theirspouse is a company staff or not.

Maternity Bonus Program

2005

Child Support Allowance

2007

TRUSCO Part-time System for Retirement-aged Employees( Re-employed:

4)This system allows employees who have reached
the age of 70 to continue employment at thecompany as part-time workers until the age of 75
if they wish to do so and meet certain criteria.
(Designation: Senior)

Return-to-Work Program for
Staffs on Childcare Leave

2019

Go Home Early System

2020

Infertility Treatment Leave
Program2021

Right to Remain in Same
Area for Work
Exception for Course Changes

2021

Note: In addition to the programs listed above, we offer a staggered workday system, free biz system, and a non-necktie system (a system that allows employees not to wear neckties even outside the cool biz period).

Human Resource Recruitment

We acquire human resources that possess creative ideas
Changes in Number of New Graduates Hired and Employees Hired Mid Career

Providing Unique Job Experience Events

Main Vacation Bank Program Revisions

Trusco New Social Work Grant System

In-company Sidework Program (Hybrid Work Program)

Additional Off Time System

Started in 2016 (Program participants: 83)

Started in 2019 (Number of times the program was utilized: 137 total)

Started in 2020 (Number of times the program was utilized: 46)

This program provides the money necessary for new
employees to smoothly start a career as a professional insociety. TRUSCO provides this entrance allowance to new
employees about one month before the date of entering thecompany ($1,428 for persons who live alone and $714 topersons who still live at home after joining the company)

This program allows employees to work in adifferent department on their days off and earn
income on the side. Since the program focuses
on work that any employee can do, it is a great
way for them to gain new insights.

This system allows employees to adjust their startor finish time in exchange for up to one additionalhour of rest time (or less than one hour) for very
important reasons, such as visiting government
offices, making hospital visits, etc.

Planet Tokai employee Daisuke Ito bought furniture and suits using his entrance allowance

MRO Supply Tokyo Branch employee Eiki Fukumotoworks in different positions on weekdays and holidays

Digital Promotion Division employee Minami Watanabe
took a one-hour break during work using the system

Tatsuo Okami working at Planet Tokai

University Graduates
Vocational School Graduates
High School Graduates
Number of Employees Hired
Mid Career

Total
FemaleMale
FemaleMale
FemaleMale
Total
Female
Male

2018
118
41
42
0
0
17
18
17
5
12

2019
96
38
35
0
1
8
14
5
3
2

2020
79
31
25
0
0
6
17
5
4
1

2021
43
18
17
0
0
4
4
5
2
3

2022
83
26
23
0
0
14
20
9
3
6

Trusco Prospective Candidate Guidance Team

Direct talks with management

Explanatory Meeting for Parents of Students
Participating in Job Hunting Activities

In addition to the Recruitment Section, employees from allover the country who work in various departments, divisions,and sections conduct recruitment activities. In addition to
explanatory meetings and interviews, we also provide individual follow-up services to relieve the anxiety of students
participating in job hunting activities. We are committed tofinding the people who will create the future of our company.

In order to give people a better understanding about
our ideas, we provide opportunities for students tohave direct conversations with the President, directors, division general managers, and other membersof the management team. During a Round Table Discussion with the President, the President answers
each and every question that only he can answer.

We hold these sessions because we believe that byhaving parents of students participating in job hunting activities see our company from the perspectiveof a senior member of society, they will be able tounderstand our company and give appropriate advice
to their son or daughter in job hunting activities. Held
online in 2021 and 2022. (participation is optional)

Explanatory meeting held at a university

Direct talks held with the President are conductedat the Tokyo Head Office and Osaka Head OfficeMore and more parents are participating inthese sessions each year
Integrated Report 2023

The Nakayama visually
Corporate Data
impaired welfare foundation

Planet Tohoku employee Michiko Suzuki
returned to work using this program

Number of New Graduates Hired

Corporate
Governance

Since there is no limit on the number of days of paid leave thatcan be accumulated, employees will not have to worry about nothaving enough days available during unexpected circumstances

The source of competitiveness for an organization is its “originality”.
Because we are one of the last wholesalers in the industry, we haveaggressively challenged and achieved things the other companies do
not try and can not do. We will continue to acquire human resourcesthat create new value through original ideas to fuel our corporate
growth.

Environmental
Efforts· No limit on the number of days of paid leave that canbe accumulated (previous limit was eliminated)· Accumulated days of paid leave can be used for more reasons
than previously allowed (also for studies, volunteering, etc.)· At the time of retirement, the company will
pay employees for any unused days

Integrated Report 2023

1) 20172) 2020

Sustainability

This program is for the re-employment of staff who had to resign to raise a child, take care of a sick family member, undergo infertility treatments, or to accompany their spouse goes todue to a work appointment within ten years of their resignation.

Started in 2015 (Program participants: 18)

Work from home system

Two first-class licensed architects, who are employees of the company, have set up a desk where employees consult about any
problems they may have regarding housing. (15 consultations* held in 2022)
1. ‌Open: Employees can telecommute at any time when it becomes difficult to come to the office due to relocation or integration of
offices, transfer of a spouse, injury, illness, taking care of a family member, etc.
2. ‌Discretionary: With the permission of the head of the office, employees can telecommute up to twice a week.
This program allows employees that finished their childcare leave to choose the number of working days, working hours, office
work, or work from home until the child is three years old so that they can return to work with peace of mind.
This is a system that allows employees to go home early even during scheduled working hours in order to instill in them theawareness and habit of finishing work early. Under the system, employees can leave up to 30 minutes earlier once a week. (Numberof times the program was utilized: 97)
This program allows employees to take up to a year leave only for specialized infertility treatment (in-vitro fertilization/microfertilization). Once the first child isborn, the days of leave taken are reset, and the employee can use the program again for all subsequent children when infertility treatment is performed. Within
one year from the initial leave start date, the leave can be taken divided into up to three times, and the Company will pay all social insurance premiums during
the leave, including the employee's portion. (Eligible employees: Employees who have been with the company for at least one year.) (Program participants: 1)
If an employee undergoing infertility treatment requests it, the employee will not be transferred to a different location with a change of residence for up to
one year (right to remain in same area for work). In addition, if an employee changes to an area course for infertility treatment, the employee may return tothe original course with the evaluation requirement for returning to the original course waived. (Program participants: 2)

Human Resources

In the past, this program allowed employees to accumulate up to 60 days of unused paid vacation timewithin the time limit in case of illness, nursing care,or other events requiring extended leaves of absence.
The following revisions were made in 2022.

Welcome Back Policy
Started in 2014  Program participants: 33

2016

Digital Service

Revised in 2022

The Hirayasuyama family moved together to Gunma Prefecture (Isesaki Branch employee Kengo Hirayasuyama
and Planet North Kanto employee Yui Hirayasuyama)2015

We provide $71 per month allowance for each child to staffs who have children under ten years old. TRUSCO started paymentseven to staffs who are on leave to raise children in 2014.
One tablet terminal is lent to each employee for information sharing, and information can be exchanged on “Tramama Port,” aspace on the company intranet dedicated to employees on maternity or childcare leave. We also provide support to make it easierfor employees to return to work, such as by setting up Office Visit Days every four months.

Sales

Vacation Bank Program
Started in 2007

Internet Sales Osaka Branch Manager Ryohei
Hotta with his family

Return-to-Work Support
for Staffs on Maternity orChildcare Leave
My Home Concierge(housing consultation service)

This program pays a bonus for special leave for childbirth (14 weeks) during the bonus calculation period.

Distribution

Started in 2002 (Program participants: 11)

Products

Started in 1992 (Program participants: 52)

Kohei and Yuo Yasuzumi use childcare leave as a couple(Recruitment Section employee Kohei Yasuzumi and
Satte Branch employee Yuo Yasuzumi)

58

Birthday Off Time System

Overview
In order to promote the use of paid vacations, we encourage employees to take annual paid vacations on their birthdays (or one
month before or after) as “birthday off time.” (Program participants: 118)
This system allows staff to reduce their working hours down to as few as three hours per day for reasons of child raising up until theirchild finished sixth grade (Legally, employees can reduce their working hours down to as few as two hours per day until a child reaches
three years of age). Employees can also use this system to shorten their working hours when they are pregnant, taking care of a family
member, or injured/sick. (Program participants: 110 for childcare, 0 for taking care of a family member, and 11 due to injury/sickness)
Trusco Nakayama does not pay severance as a lump sum upon retirement, but as an annual payment known as a “financial bond,”a performance-based payment to reward annual contributions.
This program allows staffs to request a transfer to a desired place of business due to life events such as marriage or taking careof a sick family member. (Program participants: 66 *previous three years)

Management
PolicyThe time when the policies of a company begin is important and the “will” varies according to when a policy is put in place. We have a number of unique human resource programs that were inspired not by the trends of the world but by our concern for our employees. By respecting the opinions of our employees and supporting their work styles through various approaches, we improve their motivation to work whichleads to the growth of the company.

Started in

Value Creation

Personnel Systems (other than those listed on p.58)

Main programs for employees to work for many years with peace of mind

59

Benefits and Welfare
For spending valuable time with those who are dear to us
We need to build an environment where employees can engage in theirwork safely with both body and mind. In order to encourage our employees to spend time with their families and loved ones on holidays,
we have our own recreational facilities and boats which they can use.

TRUSCO Resort and Spa Karuizawa

Programs

Employee Stock Ownership Association
Staffs can purchase company shares by deducting it from their salary eachmonth to receive a 10% bonus to the value of the contribution. It is recommended that employees withdraw shares once they become unit shares andown shares in their own name.

Nakayama Pension
This contribution-type corporate pension plan provides 10% financial assistance to a reserve fund to pay out to staffs as a 10-year fixed pension from theage of 65.

Accumulation Savings

Congratulatory/Condolence Programs

This program allows staff to deduct money from their salary and bonuses to an accumulated savings in which the company will contribute twice each year to the staff.

TRUSCO has put in place five congratulatory and condolence programs for
executive officers, staffs and part-time staffs.
1. Congratulatory
gift for marriage

Wine Seminar

The company presents $214 as congratulatory money when a staff gets married.

We hold a wine seminar, a party designed exclusively for singles, once every twomonths at two locations, the Tokyo Head Office and the Osaka Head Office, to give
single employees an opportunity to meet other singles.

2. C ongratulatory
The company presents a catalog gift worth about $71 forgift for childbirth each child when a staff or their spouse gives birth.
3. C ondolatory/
condolence gift

In celebration of a 60th birthday for officers andstaff, the company invites those employees andone member of their family to either Baycourt
Club, a membership resort with locations in Tokyo,
Aichi, and Hyogo), or one of our company-owned
recreation facilities (Kyoto Kaguraoka Rengetsuso,
TRUSCO Resort and Spa Karuizawa, or TRUSCO
Resort and Spa Hakone). We also arrange and cover travel to and from the location (Green Car tickets
will be provided when traveling by Shinkansen andbusiness class tickets will be provided when traveling by air) and also provide a monetary gift.

The company presents up to $714 based on the degree
the house and belonging of an employee is damaged due
to a disaster such as a fire or earthquake.

Facilities
Resort Condominiums (15)

· Shima City, Mie· Chuo-ku, Kobe Cityetc.

We own four company
dormitories (three in Tokyoand one in Osaka) for single staff and staff transferred to a position awayfrom their family. TRUSCO
also provides dormitories.

Kurio Odori La Mode
(Chuo-ku, Sapporo
City, Hokkaido)

Recreational/Training
Facilities (3 locations)
We use these facilities for a wide
range of applications such as staff
trips, and staff training. The chefs
are also full-time employees of ourcompany as we want to be in the
TRUSCO Resort and Spa Karuizawa
hands of people who want us to eat Left to right: Sous-chef Kan Iizuka, Assistant Manager Aoi Iki, and Manager Masatoshi Kawashimadelicious food.

(

TRUSCO Resort and Spa Hakone
Left to right: Sous-chef Toshiro Sato, Head Chef Taro
Kinoshita, Emiko Kinoshita, and Manager Ryo Ishiguro(
60

Integrated Report 2023)(

Environmental Efforts E................................................................................................................................................................

66

Corporate Governance G.............................................................................................................................................................

68

Tokyo Baycourt Club Hoteland Resort(Koto-ku, Tokyo)

Singles’ Dormitories (4 locations)

We have 15 resort condominiums that our officers,
staff, and part-time staffs can use freely.
· Chuo-ku, Sapporo City
· K usatsu, Agatsuma
District, Gunma· Minato-ku, Tokyo

We have been carrying out environmental activities under the environmental philosophy of“Sustainability” for more than 25 years since before the term sustainability became widespread.
At present, we are engaged in a variety of initiatives as TRUSCO “Sustainability” projects designed tocreate a better future, including social activities and governance.

60th Birthday Gift to Staffs

The company presents $357 condolatory gift when a staff
member passes away (up to $71,428 depending on how
long the employee worked for the company). In addition, thecompany presents up to $214 as a condolatory gift when amember of a staff’s passes away.

4. Injury or Sickness The company presents $71 to a staff who has to take
Compensation
leave due to injury or sickness.
5. D isasterCompensation

Sustainability

TRUSCO’S
TRUSCO’S Osaka TRUSCO’S Ayase
Shinbashi(Higashi-Osaka(Adachi-ku,(Minato-ku, Tokyo)
City, Osaka)
Tokyo)

Two Company Owned Yachts
TRUSCO owns two yachts, one in Yokohama (Kanagawa) and Ashiya (Hyogo).
These yachts are made available as a chance to enjoy a bit of cruising. In addition,
the company will subsidize half the cost of acquiring a license for a small vessel
boating license (106 license holders in the company). (as of December 31, 2022))

Kyoto Kaguraoka Rengetsuso
Left to right: Head Chef Yusaku Karatsu, Manager Kenichi
Hitaka, and Assistant Manager Chiharu Kitagawa

E Environment
S Social
G Governance)

TRUSCO’S I (Yokohama)
Length: Approx. 41.00 ft. (12.50 m)
Weight: Approx. 18 tons,
Capacity: 12 persons
Horsepower: 370 (5,460 cc) x two engines

TRUSCO’S II (Ashiya)
Length: Approx. 36.00 ft. (10.98 m)
Weight: Approx. 12 tons,
Capacity: 12 persons
Horsepower: 285 (3,600 cc) x two engines
Integrated Report 2023

61

Material Issue
We identified the material issues that we face for sustainability based on the “Sustainability” Basic Policy. TRUSCO will address theseissues through its business with a view towards the establishment of a sustainable society.
Material Issue

1
Optimization of the entire
supply chain

Basic Sustainability Policy*The term TRUSCO Shared Value (TSV) was created by combining TRUSCO and Creating Shared Value (CSV).

TRUECO Book

PeopleProducts

Installation of solar panels

Goods receipt abolition
Started in 2001

Introduction of clothing to be wornin-house to keep employees warm

2-inch cardboard core

Started in 1998

When constructing a new building, we install as many solar
panels as possible.

By eliminating goods receipts
and using single delivery slips
instead, the amount of paper
used has been reduced by half.

The use of heating equipment isminimized by introducing original jumpers and fleece jackets.

Started in 2003

Started in 2001

By reducing the size of the
cardboard core, we reducepackaging space and waste.

· Realization of a supply chain with a small
We contribute to reducing theenvironmental burden
environmental impact of our business· Reduction of the environmental burden reduces the4activities and PB products, not only
business activities“Sustainability” (p.62)
Environmental actions through for ourselves but also for the users· Planning and development of environmentally-friendly Environmental Efforts (p.66)
ofourproducts,
andcontributetobusiness activities
PB Products
the environmental activities of the· Realization of the active recycling, reuse, and return
Japanese manufacturing industry.
of tools and equipment

5
Contribution to stakeholders
and local communities

Fluorescent lights
with human sensors

Manufacturer catalog
inventory

Turning off air conditioning systems
30 minutes before leaving the office

GNT5050E Fabric Adhesive
Tape
Economy type

Non-Gas Spray

Started in 2003

Started in 1998

Started in 2002

By stocking catalogs and delivering them together with packages,
we can reduce energy consumption during transportation.

We try to save energy on heating andcooling, for example, by ensuringthat air conditioners are turned off
30 minutes before leaving the office.

Compared to aerosol sprays, thisproduct is safer and more environmentally friendly because it does notuse any gas (LPG) for spray purposes.

Fluorescent lights are used in thewarehouse at Planet Saitama

Catalog inventory is also managed
as well as product inventory

Other equipment· Double-shingled insulated sheet roof
(2003)· Metal insulated sandwich panels (2003)· Air well voids (2005)· Use of well water to cool roofs (2007)· Use of cold underground air (2012)· Ceiling fans (2017)

Other measures· R eduction of overtime by maintaining
proper inventory levels· F ax OCR assisted automatic order
entry system “DOTKUL” (2000)· Internet order receiving system (2002)· Efforts to eliminate packaging Private
Brand Products by the dozen (2013)

Integrated Report 2023

“I always make sure to turn off the air conditioning system 30 minutes before leaving the office.”(Misaki Tanaka, HC Tokyo Branch)
Other efforts· Garbage recycling campaign (1998)· U se of back side of Office Automation
paper (1998)·O
 riginal scarf, lap blanket, and neckwarmer (2012)·C reation of environmental education
booklet (2013)

ECO-CL-S
Alpha Cleaner Non-Gas Spray
Other products· Return cushion (see p.67)· Products made from recycled materials
Containers (TRST-10, etc.), gloves(DPM-PET60, etc.), protective clothing (TRV2ECO60-L, etc.), and pallets(SLA-111V, etc.)

6
Improve the fairness and transparency· Realization of corporate governance effective for self-cleaning
Governance based on a stance of of management and implement swift · Strengthening of complianceCorporate Governanceandappropriate
decision-making
Shushazentaku (always choosing· Strengthening of risk management(p.68)
what is right rather than focusing to conduct business activities that
· Realization of highly-transparent information disclosure
conformtolaws
andsocialnorms.
on whether it is profitable)

Sustainability Promotion System
We have established specific themes, measures, and
KPIs for solving identified material issues.
Each department is responsible for the implementationof these various measures, and the Sustainability Committee oversees progress and promotes sustainability
based on KPIs.
The Sustainability Committee also manages and assesses risks related to sustainability, including climatechange.

Board of Directors Meeting (Management Conference)
Approval

Reporting

Sustainability Committee■ Chairman of the Committee: Director and General Manager ofthe Business Management Department■ Committee Roles
1. Establishment of Sustainability Promotion Activity Policy andpromotion of sustainability-related activities
2. Assessment and management of sustainability-related risks
3. Monitoring of progress based on material issues and KPIs
Office in charge: Sustainability Promotion Section

Specialized
discussions
on individual
issuesPromotion
Business
Management Dept.

DigitalService
Strategy Dept.

Product
Dept.

ReportingSales Dept.

The Nakayama visually
Corporate Data
impaired welfare foundation

Started in 1998

Since 2017, a motion sensor has been
installed for each lighting unit, whichsignificantly reduces power consumption
compared to conventional area lighting.

The Nakayama visually impaired
welfare foundation (p.70)
Relationships with
Stakeholders

Corporate
GovernanceLeft: Jumper (Ryosuke Araki, TokyoManagement Section)
Right: Fleece jacket (Kana Niino, HR
Support Section)· “Giving Back to Society” through the Nakayama
visually impaired welfare foundation· Strengthening of various sponsorships andadvertising activities· Cleanup activities in local communities surrounding
TRUSCO locations· Implementation of contingency donation activities

Environmental
Efforts

Our current single delivery slip

Cherish the relationships withstakeholders through support
for people with disabilities
and communication with local
communities and society throughsponsorships and advertising.

Subworking group

62

Solar panels on the roof of theformer Osaka Head Office· Creation of a work environment where our employees
can continue to work with peace of mind for many years
We will be able to grow as a company · Expansion of opportunities for career advancement foreach employee with a broad selection of choices available
by creating an environment where
Human Resources Strategy
employees are always motivated and · Creation of an environment where the work and(p.54)
results of employees can be fairly assessed
each can sufficiently demonstrate· Promotion of diversity
their abilities.
· Strengthening of health management as well as
occupational safety and health

Sustainability

Measures

Product Strategy (p.30)

Human Resources

Facilities

Develop and provide PB products with original· Improvement of major PB products
value to suit diversifying needs and trends· Improving the safety and quality of PB Products
at manufacturing sites to help rationalize· Responsible procurement
manufacturing operations, increase
productivity, and strengthen competitiveness.

Digital Service

Details can be foundby scanning the QR
code above.

Development of environments
and human resources toenable them to fully display
their personal abilities

Related Measures

Sales

3

In regard to environmental measures, what you are doing isimportant, but when you are doing it is even more important
Since before environmental issues became a major social issues, we have been implementing various
measures and initiatives for many years in order to conduct our business using as little energy as possible.

2
Planning and developmentof products that respond todiversifying needs

Themes· One-stop MRO distribution for improving convenienceand reducing the environmental burden· Dramatic efficiency in product selection and industry
Become a platform holder supporting
standardization of product data
Product Strategy (p.30)
manufacturing and optimize the· Realization of proposals and deliveries by anticipating
Distribution Strategy (p.40)
supply chain to establish sustainable
customer needs
Sales Strategy (p.44)
PRO TOOLs distribution that is both· Creating synergy effects through the power of people
Digital Service Strategy (p.50)
human-friendly and environmentallyand digital technology to contribute to the expansion
friendly.
of business performance of partner companies· Realization of the ability to accept orders 24 hours a day andship products 365 days a year (stable supply of products)

Distribution

We aspire to be a PRO TOOLs supplier that continually serves Japanese manufacturing in every era. Under the motto, “Business must serve
people and society,” we will create both social value and corporate value (TSV*) through our businesses to help resolve social issues andbuild sustainable local communities.

Description

Products

For more than 25 years since before the word sustainability became popular, we havebeen working on business activities with low environmental impact under the slogan,“Sustainability.”
At present, we are engaged in a variety of initiatives as TRUSCO “Sustainability” projects
designed to create a better future, including social activities and governance.

Scan for details
on measures

Management
PolicySustainability

Value Creation

Continuing to Provide Support Regardless of the Times “Sustainability”

Distribution
Dept.

Integrated Report 2023

63

As for the impact of climate change on our operations, we analyzed the impact of rising temperatures on our company based on a framework proposed by
the TCFD. Below are the major risks and opportunities associated with our business activities that we are responding to.
Scenario Analysis
Risks

Scope1 (tCO2)

4,099 4,229

1,392

Sales (Million USD)

1,530 1,575 1,524 1,620

5,264 5,665

6,298 6,304

7,154

1,524 1,688 2,031 1,761 1,572 1,703 1,941
2015

2016

2017

2018

2019

2020

2021

1,760

Power Generation(ten thousand kWh)

8,109

183

9.6

10.4

10.7

2,327

72

85

99

2022

2015

2016

2017

139
11.3
2018

260

255

Power Self-sufficiency Rate (%)

14.1

2019

Opportunities

18.9

16.5 16.4
Resource
Efficiency

2020

2021

2022

Scope 3*4

548,144 (tCO2)
31.6%

Scope 1
Fuel use

1,941 (tCO2)
0.1%

Scope 2
Electricity use

7,154 (tCO2)
0.4%

Category 2

Category 4(capital goods)(Transport and delivery(upstream))

Scope 3

15,735 (tCO2)

0.9%

Scope 3Category 11(Use of sold products)

1,090,064 (tCO2)

62.9%

Scope 3Category 12(Disposal of sold products)

15,946 (tCO2)

Scope 352,284 (tCO2)

3.0%

Other products
Scope 3

* Percentages shown are the composition ratios* Please refer to the Ministry of the Environment website (https://www.env.go.jp/earth/ondanka/supply_chain/gvc/supply_chain.html) for information on Scope 3 categories.
64

Integrated Report 2023

0.9%
2,586 (tCO2)
0.1%

Mediumterm

Increased delivery costs due to vehicle upgrades when delivery vehicles
are converted to EVs

Mediumterm

Possible that additional costs will be as much as$1 million⇒Calculated from the cost of converting delivery
trucks to EVs

Plan for phased vehicle upgrades to hybrid
vehicles / purchase and research of EVs /reduce sales vehicles through online sales /reduce mileage by optimizing delivery routes

Increased distribution costs

Mediumterm

Cost increase of $5 million annually

Respond to changes in the market productmix through carbon neutral navigation, etc. /increase in-house delivery rate

Adoption of products using paper packaging
material rising prices / passing on of productprices / developing recycling-type materials
and products and establishing recycling
schemes

Delay or suspension of transportaMedium- to These are risks that apply to Planet Kobetion due to damage to facilities andLong-term ⇒Risk of annual sales reduced by $57 million
equipment in coastal areas

Strengthen the distribution network in the
Kinki region for which Planet Osaka serves as
the core / Maintain inventories at sales bases(branches)

Damage to owned real estate andEstimated by Planet Saitama
facilities due to flood damage, and Medium- to
impact on business continuity due Long-term ⇒Damage equivalent to $35 million due to aonce-in-50-year floodto damage to facilities

Diversify risks by diversifying distribution
bases / stabilize procurement by diversifying
transportation means / ensure business continuity by formulating BCPBusiness Impact

Duration

1.5 to 2 degree scenario / 4 degree scenario

Opportunity to grow the business of
Naojiro Repair Workshops since theservices reduce waste disposal costs

Short- toMediumterm

As demand for repairs increases due to the Expand content of services / popularize Naojiexpansion of effective utilization of resources, a ro services / create dedicated catalogs / Make
proposals to customers$7 million increase in sales is expected

Our response

Reduced transportation costs as
An $5 million increase is expected as MRO Stocker
Establish department to promote MRO Stocka result of increased sales due to Short-term locations are utilized due to the expansion of effective
er / Enhance content of services
increased demand for MRO Stocker
utilization of resources
Reduction of energy costs throughthe introduction of renewable energy sources

Mediumterm

Possible to avoid the risk of rising electricity costs
Increase the amount of power generated by
due to the introduction of carbon taxes by introin-house facilities by installing solar panels
ducing solar power plants in our facilities

Increase in service demand, revenue, and reputation due to the
spread of decarbonization (NIAWASE
Product and(Order Consolidation), Direct DelivService
ery Service, etc.)
Increase profits from products withlow environmental impact throughcarbon neutral navigation

Short- toMediumterm

A $2 million increase is expected if the expansionof carbon neutral navigation makes it possible todevelop products with new value for decarbonization possible

EnergySourceResilience

The Nakayama visually
Corporate Data
impaired welfare foundation(purchased products and services)

Increased costs due to higher pricesof packaging materials stemmingfrom regulations on plastic products(1.5 to 2 degree scenario) cost reduction of$478 thousand⇒The estimated cost is calculated from the current amount of packaging material used andthe oil cost in the scenario(4 degree scenario) Cost increase of $1 million⇒The estimated cost is calculated from the current amount of packaging material used andthe oil cost in the scenario

Corporate
GovernanceCategory 1

Customers

Opportunities

CO2 emissions from our business activities: 1,735,195 (tCO2) (Scope 3 accounting for 1,724,759 (tCO2) (2021 results)

Suppliers

Acute Risk

265

Improve work efficiency by improving emIncreased costs related to the
Up to $0.7 million cost increaseployee knowledge / shorten the time it takes
requirement of measurement andShort-term ⇒Expenses related to TCFD, CDP, CO2 emissions, to acquire data by developing and improving
display of environmental-related
and other sustainability measures that are curcore systems / continuously reduce costs by
information to be displayed
rently being implemented
performing calculations in-house

Environmental
Efforts

1,189 1,264

Scope2 (tCO2)

Changes in Power Generation and Power Self-sufficiency Rate

Chronic Risk

Short- toMediumterm

Sustainability

Amount of CO2 emissions (Scope 1*2, Scope 2*3) and Sales

Physical Risks

As our own efforts to reduce the environmental impact of the entire supply chain, we have set targets for the number of direct
shipments to users, which are highly efficient and reduce packaging material amounts and the number of introductions of MRO
stockers as indicators for reducing environmental impact.

Increase in electricity prices due tointroduction of carbon tax

Human Resources

Indicators and Targets

Short- toMediumterm

Our response

Digital Service

Technology
Risk

Increased costs due to the introduction of a carbon tax and an increasein the carbon tax rate

1.5 to 2 degree scenario / 4 degree scenario

Up to $1 million cost increase⇒C alculated based on the CO2 emissions of Survey of legal trends / Creation of business
Scope 1+2 in FY2021, assuming carbon pric- portfolios taking into account carbon taxes /Proactive introduction of energy-saving equiping in FY2050
ment such as EVs and in-house power generUp to $0.7 million cost increase
ation / in-house power generation using solar⇒C alculated based on the CO2 emissions of panels / Energy-saving promotion activities
Scope 1+2 in FY2021, assuming energy mix- based on TRUECO book (power saving)ing and carbon pricing in FY2050

Sales

The Sustainability Committee manages all risks across the company. Among these risks, we have positioned risks related to climate change as one of the most important risk categories. A subworking group discusses climate change risks at least four times
a year, examining the progress of initiatives for the issues and new risks, identifying risks and opportunities, evaluating them, andorganizing countermeasures. The content of the discussions by the subworking group is reported to the Sustainability Committee,
which meets twice a year, and particularly important issues are reported to the Board of Directors. In addition, the Sustainability
Promotion Section generally reports on environment-related indicators and issues to the Board of Directors every month.

Duration

Distribution

Transition Risks

Risk Management

Policy andLegal Risk

Business Impact

Products

Governance
We have established the Sustainability Committee as an organization to supervise our efforts to address our “Sustainability” Basic
Policy and material issues. With the Sustainability Promotion Section of the Corporate Planning Division serving as the office in chargeof the committee’s operations, the Sustainability Committee is responsible for overseeing activities to promote company-wide sustainability initiatives, including climate change-related risk management. Important agenda items approved by the Committee are reported
to the Board of Directors on a case-by-case basis. In addition, a subworking group has been established under the umbrella of the
Sustainability Committee to consider specific matters related with each risk and initiative. (see p.68 for Governance Structure)

Management
PolicyIn order to continue to be of service to people and society in any era, we are resolving social issues and contributing to local
communities based on our “Sustainability” Basic Policy. Based on the TCFD recommendations (*1) for climate change, we also
disclose the following four items: “Governance,” “Strategy,” “Risk Management,” and “Indicators and Targets.”

Strategy

Value Creation

Responding to risks and opportunities attributed with climate change

Strengthen proposal activities for NIAWASE(Order Consolidation) and Direct Delivery Service / Continue publication of carbon neutral
navigation

Improved convenience by diversifyA strong distribution network enables us to supply Review delivery routes by maintaining invenMedium- toing distribution bases and optimizing
products from our inventory bases across Japan tory items and managing delivery lead times
Long-term
distribution routes
for each distribution centereven if some areas are affected by a disaster
Duration

Short-term: 1 to 3 years, Medium-term: 3 to 10 years,
Long-term: 10 to 30 years

References
1.5 to 2 degree scenario· RCP2.6, SSP1.9, 2.6· IEA Net Zero Emission

4 degree scenario· SSP8.5, RCP8.5· NGFS Current Policies(*1) TCFD (Task Force on Climate-related Financial Disclosures): An international framework that promotes disclosure of risks and opportunities attributed with climate change as well as financial
information, etc. (*2) Scope 1: Direct emissions from fuel used by our (*3) Scope 2: Indirect emissions resulting from energy supplied by another company. (*4) Scope 3: Indirect emissions related tothe supply chain which are not categorized as Scope 1 or 2 emissions.
Integrated Report 2023

65

*1 Direct emissions from fuel used by the Company*2 Indirect emissions resulting from energy supplied by another company

VehicleUse oftransportation packaging
Proper inventory●

Fixed-Cost BasedDistribution

●

●

●

3,098

Direct Delivery Service

●

●

●

1,167

MRO Stocker

●

1,300

3,100

Naojiro Repair
Workshops

●
Total

2,700

Products

TRUSCO is committed to reducing the environmental burden of our business activities, planning and developing environmentally friendly PB Products, and proactively recycling, reusing, and returning products to their original state. The Company
is working to reduce the environmental impact of the entire supply chain, from our company to even the users of our products, aiming to achieve sustainable distribution. We call these TSV (TRUSCO Shared Value) activities in the company, andwe are working to raise awareness of reduction of the environmental burden among each and every employee. (see p.62)

After calculating the amount of CO2 emissions that wewere able to avoid through our measures and services,
the reduction contribution was 11,365 t-CO2 in 2022.
Our total Scope 1*1 and Scope 2*2 emissions are 10,436
t-CO2 (p.64), contributing to the equivalent reduction ofemissions throughout the supply chain.

Reducedemissions
Packaging Purchase of amountwaste new products (t-CO2)

Items to be reduced

Management
PolicyActions to reduce the environmental burden through business activities

CO2 reduction effect of each measure andservice

Value Creation

E

Environmental Efforts

11,365 t-CO2

Distribution

Actions to reduce the environmental burden throughout the supply chain

Suppliers

1 ‌Offering products that are environmental-

1,300 t reduced

2 ‌Reducing the environmental burden by*The amount of contribution to CO2 emissions reduction in one year in 2022
calculated from the results of each measure

TRUSCO Air Forest for Factory
Stock Number: AFF250, etc.

Jointly developed with Ito En, Ltd., this product utilizes
the deodorizing and antibacterial effects of catechin byreusing tea leaves that are generally discarded(*).
*Tea leaves after tea is extracted to produce tea-based
beverages. It contains many active ingredients.

Power Selfsufficiency Rate

2,793 kW

16.4%

Solar power panels on the roof of Planet Saitama

Changes in Power Generation and Power Self-sufficiency Rate

18.9

Power Self-sufficiency Rate (%)
Power Generation(ten thousand kWh)

9.6

10.4

10.7

10 1.3

72

85

99

2014

2015

2016

2017

11.3
139
2018

14.1
183
2019

255

2020

MRO Stocker reduces the environmental burden by providing
a one-stop service for users to purchase products. TRUSCO
also provides services that support the 3R* of PRO TOOLs
that are used and can be reused for a long time after purchase.

Reducing the environmental burden throughfixed-cost based distribution

MRO Stocker (775 locations)

We deliver our products to retailers via fixed routes from distribution centers located near our customers (28 locations throughout
Japan), which reduces packaging materials and CO2 emissions
associated with delivery compared to shipping by courier service.

3,098 t reduced

16.5

16.4%

260

265

2021

Our goal is to achieve the “best” environmentally-friendly andsustainable distribution of PRO TOOLs by delivering productsin the most efficient and least environmentally burdensome
manner possible for our customers.

ten thousand(kWh)*

2022*The national average of energy consumed by a household in a year is 4,322 kWh of electricity, which means that our power generation is equivalent to the annual power consumptionof approximately 600 households (from the Ministry of the Environment's website “Statistical
Survey of CO2 Emissions from the Household Sector”).

Introduction of Environmentally Friendly Vehicles
We are actively introducing hybrid vehicles as company-owned trucks
used for deliveries and plan to introduce 40 hybrid vehicles (about 25%
of our delivery trucks) by 2025. We will also gradually switch our sales
vehicles to environmentally friendly vehicles, starting with those that need
to be replaced without doing so unnecessarily.

Since TRUSCO uses foldable containers andreturn cushions for delivery to customers, no
packing materials are used.
*TRUSCO Return Cushion
TRC-20 L/50 L (available in three colors)

Reducing the environmental burden through our
Direct Delivery Service (3.55 million packages a year)
TRUSCO’s Direct Delivery Service realized through our abundant inventory anddigital transformation (DX) of our distribution system makes it possible to makedirect deliveries to users (3.55 million packages a year) instead of two-stepdeliveries that involve customers. Not only does this shorten delivery times but
also helps reduce the amount of packaging materials used and CO2 emissions.

66

Integrated Report 2023

MRO Stocker is like “Okigusuri,” a system of “Use First, Pay
Later” that has been around for many years in Japan for
medicine, but for tools. Always having PRO TOOLs in stockthat are used daily eliminates management costs, delivery
time, and wasteful purchases. In addition, delivery costs associated with each order are also reduced, which helps toreduce the environmental burden. (see p.46)

3,100 t reduced
MRO Stocker
WebsiteWe borrow a space at the user's location andinstall MRO Stocker that provides just the right
PRO TOOLs for that user. This makes it a highly
productive, environmentally-friendly service.

Naojiro Repair Workshops ($12 million/year)
Naojiro Repair Workshops offer eight services, including repair and resharpening. This service allows for the hassle-free repair, reuse, and maintenance of PRO TOOLs, making manufacturing sites that use the service
more environmentally-friendly. (see p.47)

1,167 t reduced

Providing environmental information in catalogs
Environmentally-friendly PRO TOOLs are indicated by various marks in the
TRUSCO Orange Book, including the Eco Mark as well as marks for products subject to green purchasing, products that are RoHS compliant, andcarbon neutral product recommended by manufacturers, to allow customers to select those tools.

*3R: Reduce, Reuse, and Recycle

The Nakayama visually
Corporate Data
impaired welfare foundation“CHAlliance”, a product jointly developed by Ito En and TRUSCO(Cha meaning “tea” + Alliance)
Stock Number: TIC-37, etc.

We have installed solar panels to the
maximum extent possible when distribution centers and new company
buildings were constructed, aiming toincrease our own power generation
capacity of renewable electricity to
3,500 kW by 2025.

Power Generation
Capacity

4 ‌Use of our products

Corporate
GovernanceThis deodorizer is specially designed for factories toeliminate odor components specific to factories, suchas the odor of degraded cutting oil. This product contains “functional tree-extracted ingredients” that makeeffective use of thinned wood from Sakhalin fir forests
in Hokkaido, and contributes to the creation of a “recycling-oriented society” by utilizing thinned wood left
unused in the forests.

Trusco Power Generation
Installations (19 locations)

3 ‌Delivering products to our customers

Environmental
Efforts

In the planning and development of our own TRUSCO brand products, wehave set environmental standards for resource conservation, waste reduction, long-lasting use, etc., and are promoting environmentally friendly
product development from every aspect, from product design to productuse and disposal.

(Unlimited ∞)Sustainability

Efforts to make TRUSCO products environmentally-friendly

We are actively introducing environmental equipment to reduce the environmental burden generated by our own business activities.

Users

Human Resources

By holding a wide range of inventories, we reduce the number of shipments of products from suppliers to us, leading to a reduction in CO2emissions associated with purchasing and transporting products.

43

using our equipment

Reducing environmental impact by holding inventory

Customers (5,575)

Digital Service

ly-friendly

3

Sales

(3,272)

2

1*TRUSCO purchaseda Porsche Taycan toconfirm and study
Porsche’s level ofcommitment toelectric vehicles

2,700 t reduced

Video on
I-Pack®

Electric vehicle(Porsche Taycan)*Hybrid Truck(Hino Dutro)

We have six I-Pack® high-speed automated packaging and shipping lines throughout Japan that are capable of packaging
and preparing a maximum of 720 packages per line for shipping in just an hour.

Naojiro Repair
Workshops
WebsiteReceiving a repair request from a customer
Atsugi Branch employee Kokoro Shimizu (left)

Integrated Report 2023

67

Consisting of only executives (excluding Outside Directors), our Board of
Directors Meetings deliberate and share the directions of the company,
ensuring objective and rational decision-making.

Objectives(1) Enhance the objectivity of the evaluation based on the fact thatvarious evaluations are conducted not only by supervisors but
also by colleagues and subordinates with whom the employees
work on a daily basis.
(2) Evaluation comments are fed back to the participants to help
them reaffirm their “strengths,” “weaknesses,” and “what is
expected of them,” leading to behavioral reforms.
(3) To create a good sense of tension in the workplace since it is asystem in which co-workers mutually evaluate each other.
Knowing that they are being monitored will encourage all
employees to work harder and improve their abilities.

Establishment of Outside Directors (Board Brain)

The company name and corporate logo
are a direct
expression of “TRUST COMPANY”, a company that is trusted
by all stakeholders. We will fulfill our social mission by embodying
this concept
as the starting point of our daily corporate activities.

Company Earning Your Trust

TRUSCO selects Outside Directors not only for the prevention of improprieties, but for their broad knowledge and abundant experience concerningcompany management and for their ability to make contributions tosustainable growth and the improvement of company value.
Interview with Outside Directors

HotlineGeneral Meeting of Shareholders
Features of the General Meeting of
Shareholders

TRUSCO has established a hotline for reporting from both inside andoutside of the company to quickly discover, handle and prevent
recurrence of compliance-related issues.

Top-Level Parties Conference(Board Meeting)Composition held once a month

Composition held once a month

9 employees in total

Reporting
Reportingheld once a month

Board of Directors Meeting

Management Conference

Composition

Composition
Members of the Board of
Directors Meeting
Division General Manager

Direct contact from
employees(includes employees
from overseas
subsidiaries)

Legal Advisors

President
Reporting

Tetsuya Nakayama

ReportingInternal Auditing Office
Audits conducted through the“Fire Lookout Tower”,
electronic auditing system

In-house Hotline

Audits/guidance

Cross-departmental personnel transfers

Digital Service
Strategy Department

Director, General Mangerof the Business
Management Department

Director, General Managerof the Digital Service
Strategy Department

Atsushi Kazumi

Atsushi Kazumi

Note 1: Part-time auditors are outside corporate auditors.

68

Integrated Report 2023

All employees who know the employee will
evaluate the employee and the results will
be reflected in promotions, etc.

*For all staff and part-time employees, excluding officers.

Evaluation System Method(1) Personal information on voters is completely undisclosed.
(2) Each of 3 evaluation items is rated on a 5-point scale.
(3) Voting results are reflected in personnel evaluations, promotions, etc.

Sustainability Committee“Fire Lookout Tower” electronic auditing system

The Sustainability Committee, which is chaired by the person who holds
the position of Director & General Manager of the Business Management
Department, normally meets twice a year. The committee formulates
activity policies, promotes and supervises activities, and reports regularly
to the Board of Directors with the aim of solving social issues andcontributing to sustainable local communities by creating both social andcorporate value through our business activities.

This is the industry's first electronic auditing system, which waslaunched in June 2001. The system is operated for the purpose of
immediately detecting abnormal events using electronic data ofinternal transactions and taking measures to prevent recurrence.

Shushazentaku compliance training

Board of Directors Meeting (Management Conference)

To ensure that each and every employee hasa high sense of ethics, we have adopted theconcept of Shushazentaku as a complianceguideline and instilled our corporate stanceof making a decision based on what is rightrather than focusing on whether it isprofitable. We distribute the Trusco Zentaku
Book, our compliance manual, to all employees, including part-time workers, to ensurethat they are fully aware of the importance ofmaking good choices.

We conduct decision-making at Board of Directors Meetings, generally held
1 time per month. Board of Directors meetings are conducted in order to seeka wide range of opinions from participants that include Executive Officers andDivision General Managers to ensure a broad perspective and transparency.
Features of the Conference(1) Round-table layout allowing face-to-face communication(2) Changes are made to seating every time with no priority given to
facilitate participation from a fresh perspective(3) Minutes of the Management Conference, containing not only resolution items but also the comments of every individual, are released toall employees within one week

Changes in the Composition of the Board of Directors(1) Transfer of personnel, including manager positions, generally every 5 years on average (2) Fostering multifaceted employee development and creating a
corporate culture free of factions (3) Preventing fraud through new surveillance

Business
Management Dept.

Oncea yearProduct Department

Sales Department

Distribution Department

Director (Note 2),
General Manager of the
Product Department

Director, General
Manager of the Sales
Department

Director, General Managerof the Distribution
Department

Tatsuya Nakayama

Kazuo Nakai

Hideki Naoyoshi

Appointed two outside directors

Number of outside corporate
auditors was increased by one.

44.4

50.0

50.0

5

4

4

4

4

4

50th term(2013)

51st term(2014/3)

62.5

55.6
42.9
4
3

52nd term 53rd term
(2014/12)(2015)(9-monthfinancial results)

40.0

41.7

2
3

3
2
3

3
2
3

22.2

54th term(2016)

55th term(2017)

56th term(2018)

40.0

33.3

4

Number of outside directors was increased by one.

Number directors
was increasedby four.

62.5

3

60.0

50.0
7
2

Trusco Zentaku Book,
our compliance manual

The Nakayama visually
Corporate Data
impaired welfare foundation

Direct contact from employees(includes employees fromoverseas subsidiaries)

Promotion
OJS

Corporate
GovernanceCompliance
Officer

Legal Hotline

Execution of Duties

Coordination

Safety Committee
Health Committee

Deloitte Touche Tohmatsu LLC

32 employees in total

Sustainability
Committee
Sustainability
Promotion Section

Reporting

Conducts mutual OJS assessments of
employees working in the same workplace(superiors, colleagues, and subordinates)with results reflected in personnel evaluations.

Environmental
Efforts

Central Health and
Safety Committee

Accounting Auditor

1220

12 employees in total

Coordination

Twicea yearSustainability

1
4
3
1
3

Audits

Personnel
RecordOJS

Human Resources

Direct contactfrom suppliers

Board of Directors Meeting(Management Conference)

President
Executive Director
Outside Directors
Full-time Auditor
Part-time Auditor (Note 1)

1
3

Description

Digital Service

Full-time Auditor
Part-time Auditor (Note 1)

Coordination

Business
Partner
HotlineHotlineIn-house Hotline: An internal hotline for employees has been
established in the Sustainability Promotion Section
Legal Hotline: An external hotline for employees has been
established, and managed by an outside party
Business Partner Hotline: A hotline for our suppliers has been establishedin the Sustainability Promotion Section

Board of Auditors Meeting
1
4
1
3

President
Executive Director
Full-time Auditor
Part-time Auditor (Note 1)

Number of
Times

Sales

(1) President OJS is conducted(2) Held early in the period, avoiding days on
which general meetings are concentrated(3) The meeting is held in person at a venue aswell as streamed online.
(4) In addition to the audio present, subtitles areprojected onto a screen in real time.
(5) Results of resolutions at the meetings, a
portion of Q&A items, and the results ofquestionnaires are released on the website
within three days

TypeInterview video

Distribution

Governance Structure (as of April 1, 2023)

Products

Open Judging System (OJS, 360 degree evaluation)

Management
PolicyFor the Embodiment of “TRUST COMPANY”

Top-Level Parties Conference (Board Meeting)

Value Creation

G

Corporate Governance

50.0

42.9

33.3
6
3
3

57th term
58th term(2019)(2020)(Consolidated
Accounting Started)

4
3
3
59th term(2021)

1

Outside Officers Ratio
50.0%
Outside Director Ratio
37.5%
5 persons Directors
3 persons Outside Directors

42.9
4
3 1 persons
260th term(2022)

Internal Corporate Auditors

3 persons Outside Corporate Auditors

61st term(2023)

Integrated Report 2023

69

The Nakayama visually impaired welfare foundation

Guide dogs “Gaia” and “Emily” (2022)
Low Vision Floor
Useful aids are provided for people
who are blind or visually-impaired.

Sales

Utility project 3

Representative Director of NR Holdings Co., Ltd.
Registered as Certified Public Accountant

Atsushi Matsumae

Managing Director(Former TRUSCO NAKAYAMA Corporation employee)

Director
President of AS ONE Corporation

Tatsuya Otsuka

President & Chief Executive Officer of Earth
Corporation
Chairman of SANKO Co., Ltd.

Kohei Goto

Kenji Furuhashi

Chairman of Nippon Lighthouse Welfare Center for
The Blind
President and CEO of Hosiden Corporation

Masahiko Mori

President of DMG MORI CO., Ltd.

Naoyuki Yamamoto

CEO and Chairman of Yamamoto Kogaku Co., Ltd.

Osamu Tsujimoto

President of TSURUMI MANUFACTURING Co. Ltd.

Former Chairman of DyDo GROUP HOLDINGS INC.

Yuko Nakayama

Representative Director of NS Holdings Co., Ltd.

Rie Nakayama

Motonobu Nishimura

Physician and Assistant Head of Ear, Nose, andThroat Department, Head and Neck Surgery,
Kawasaki Municipal Hospital
Chairman of Mandom Corporation

Yuki Nomura

President and Representative Director of Taiyo Kogyo Inc.

Junji Hada

Chairman of ELECOM Co., Ltd.

Naotaro Hikida

President and Representative Director of Kohnan
Shoji Co.,Ltd.
Chairman of Rohto Pharmaceutical Co., Ltd.

Kunio Yamada
Yoshiaki Yamamoto
Teiji Wakita

President of Social welfare corporation Rokko
kakujuen
President and Representative Director of Wakita &Co., LTD.

Lending business for guide dogs
We commission the training of two guide
dogs per year and lend them to the visually
impaired as “Nakayama Go” guide dogs. Asof 2022, we have loaned 45 dogs.

Guide dog lending ceremony
held during the 22nd
Nakayama Wonderful Festa

Personal computer course project
Courses are divided into beginner, Internet,
Microsoft Office, iPad experience, and voice
PC experience courses to teach basic
computer usage and Internet operation.

Attorney at Nomura & Partners

Yoritomo Wada

Certified Public Accountant at Wada & Co.

Kazumasa Murai

Certified Public Accountant and Tax Accountant at
Murai Certified Public Accountant OfficeComputer course

Senichi Hoshino (former Nippon Professional Baseball manager), who passed
away on January 4, 2018, served as director from June 2017 to January
2018, and contributed to the development of the foundation.

#16 2013 Mariko Takahashi#17 2014 Sayuri Ishikawa#18 2015 Yoshimi Tendo#19 2016 Masahiko Takeuchi and Kaientai#20 2017 Masashi Sada

#21 2018 Aki Yashiro#22 2019 Tomomi Nishimoto & IlluminArt
Philharmonic Orchestra
Narrated by Yoshiko Sakuma

Nakayama Wonderful Festa #20(Masashi Sada, performer)

A prospective TRUSCO employee
attends to visitors

Note: Concerts were not held from 2020 to2022 due to the Covid-19 pandemic.

Accompanying aid workers (guide helpers) education
training project
Training sessions are held six times a year with the aim of increasing
the number and improving the quality of companionship support
employees (guide helpers).

AuditorKohei Nomura

Past performers (honorifics omitted)

The Nakayama visually
Corporate Data
impaired welfare foundation

Teruo Hashimoto

Tomihiro Takamatsu

Former scholarship student
Kaori Tsutsui performing ina concert

Corporate
GovernanceTakuji Iuchi

President and Representative Director of Saraya Co., Ltd.

Environmental
Efforts

Managing Director

Yusuke Saraya

Music performance project“ Nakayama Wonderful Festa”
This is a concert that visually impaired people can attend with wheelchairs and guide dogs which allows them to enjoy the concert freefrom worry. Some of our employees have participated in this event.
Through the actual event, we have an opportunity to learn that ourcompany not only pursues the profit of the company but also a part ofthe profit is useful for social contribution.

Sustainability

Saori NakayamaCouncilor

Hyogo Prefecture Visually Impaired
People Music Festival Project“Nakayama/KLC Concert”
A classical concert started for the purposeof providing many visually impaired people
with opportunities to perform.
(Kobe Light Center (KLC))

Human Resources

Area of grounds: approx. 1,401 ㎡
Floor area: approx. 5,712 ㎡
Structure: 1 underground level, 5 floors above ground,equipped with isolation system

Support activities for social participation activities for visually impaired people
People with disabilities spend every day like people without disabilities, and the foundation supports the participation of visually impaired people insociety.

Digital Service

New Nakayama Memorial Hall (completed on September
15, 2021)

List of Officers and Board of Directors for the Nakayama visually impaired welfare foundation (listed in alphabetical order)

Senior Director

19 kW of solar power generation

Grant project for support groups for visually impaired people and individuals
The foundation provides grants to groups for visually impaired people and support groups in financial difficulty, and provides scholarships free ofcharge to university students and others. Since FY2022, graduate students (master's degree students) have also been eligible for the scholarship.

Overview

President of TRUSCO NAKAYAMA Corporation

Sunny balcony

Utility project 2

Established

October 1, 1997
Transition to a public interest incorporated foundation was made on
November 1, 2010.
October 1, 2021 Japanese name of the Nakayama visually impaired
welfare foundation was changed. (English translation remains the same)President
Tetsuya Nakayama
Address
2-1-9 Mizuki-dori, Hyogo-ku, Kobe, Hyogo Prefecture 652-0802(3 min. walk from Shinkaichi Station)
TEL: 078-599-6140 / FAX: 078-599-6141
Support project results $6 million (cumulative total over 25 years until FY2021)

Spacious entrance

Distribution

The foundation was established by the Nakayama Family with four million shares ofTrusco Nakayama Corporation stock and $3 million in cash. In addition, the Nakayama
Family donated an additional one million shares of Trusco Nakayama Corporation stockin 2021. The foundation operates its business with the dividends from the shares.
Number of Shares of Trusco Nakayama Corporation Stock Held by the Foundation
4.35 million shares (as of December 31, 2022)

Tetsuya Nakayama

Products

Managing the foundation using stock dividends

Management
PolicyNakayama Memorial Hall facilities leasing business
At Nakayama Memorial Hall, 12 non-profit organizations cooperate with each other to provide total support to a large number of visually impaired
persons.

The Nakayama visually impaired welfare foundation was established in 1997 in response to
the will of “wanting to serve visually impaired people” by Kiyoko Nakayama, the mother of
Tetsuya Nakayama (President of the foundation), who was born with optic nerves damaged
by a forceps delivery. It later became a public interest incorporated foundation in 2010. The
basic property shall be shares of Trusco Nakayama Corporation, and the foundation does
not receive donations or support from outside and does its own management. We continue“Giving Back to Society” through the Nakayama visually impaired welfare foundation.

President

Utility project 1

Value Creation“Giving Back to Society” through the Nakayama visually impaired welfare foundation

S

Barrier-free movie screening project “Nakayama UD Film Festival”
Sponsored by the Nakayama visually impaired welfare foundation, theNakayama UD Film Festival features audio commentary andJapanese subtitles for films screened. (UD...Universal Design)

Profit-making business
Real estate leasing businessA section of the Nakayama Memorial Hall has been used to provide real estate leases (office leasing, etc.) since November 2021.

70

Integrated Report 2023

Integrated Report 2023

71

A Glance at TRUSCO Through Numbers(as of December 31, 2022)
The year-on-year comparison is shown in the parentheses.

Gross profit margin
Selling, general andadministrative expenses(+8.6%)%(+0.2 pt)

million(+8.1%)

million(-3.8%)

million%million%million%$47

Depreciation

Ordinary Income
Attributable to shareholders

Net Income
per share

TRUSCO Orange Book and TRUSCO Orange Book.Com

Distribution
Logistic centers

Ratio

Tokyo Head Office (TRUSCO Fiorito Bldg.)

91.7 (+0.4 )

10
1,639
1,305
Number of officers*
155
Number of supervisors
10

Rina Maki, Overseas Procurement Section

75$47.2 thousand

general managers (does not include officers) $104.8 ($112.8) thousand
Managers including branch managers, center$81.3 ($86.8) thousand
managers, and Head Office section managers

Careers (regular positions)
Area (regional positions)
Logistics (distribution positions)persons%

Non-smoking rate for managers(included managerial candidates)

100.0

Non-smoking rate for the entire company

%

86.3%
Keihin Branch employee Kohei Ishikawa

Sales
Japan

Number ofsales branches

Brancheswith inventory

59
29 Overseas 5

15,466
Trusco Power Generation Installations
19
Number of shareholders

Integrated Report 2023

%

pt

%

pt

TRUSCO Data Center “Solemale”

persons(As of the end of the 60th term)(Solar and wind power generation)

Number of Companies

72

85.2 (-0.1 )Automated estimate ratio
22.6 (+4.4 )Number of order receipts
130,000 daily 33.6 million per year
Number of estimates
30,000 daily 8.57 million per year
provided to customers
Digital Expenditures (most recent three periods)$17 million
ESG(as of January 1, 2023)
Overseas subsidiary:
TRUSCO NAKAYAMA CORPORATION (THAILAND) LIMITED
PT. TRUSCO NAKAYAMA INDONESIA
Offices: Germany, Taiwan, and Thailand

5,575 (+48)
Number of customers
Number of Sales accounts
31,614 (+2,053)
MRO Stocker
Number introduced
775 (+446)
Number of companies connected
2,233 (+191)
to orange commerce

High-speed picking and sorting equipment(SAS (Systema Streamer)/ Shuttle Rack)

The Nakayama visually
Corporate Data
impaired welfare foundation

67(Statutory employment rate based hires: 62,
employment rate of persons with disabilities:2.3%) 2.7

Planet Saitama Distribution Centerpt

Digital Service

System order intake ratio$55.0 ($58.5) thousand$45.2 ($47.8) thousand$35.2 ($36.7) thousand

The annual salary including financial bonds (annual payment severance) is shown in the parentheses.

Number of employees with disabilities andemployment rate of persons with disabilities%

Corporate
Governance($49.9)278
41.7 (-0.4 )116
Delivery lead time
20 hrs. 10 min. 4 sec.
Number of packages delivered
3,556,388 units (+719,996 )via direct delivery service
Number of orders of direct
4,374,725 (+978,439 )delivery service
Inventory of materials to support
More than for 6 months (normally 3 months)
recovery during a disaster
Sales

Managers Department general managers and division

Average salary

pt

units

Full-time Staff Retirement Age 65
Part-time staff%

Environmental
Efforts

Retirement age

Managerial retirement age 62
Employment extension
70

㎡

㎡

approx.

Ratio of products delivered from our company
Inventory hit rate
stock among our total number of orders.
Number of total
Percentage
TRUSCO
delivery runs
vehicles (±0 vehicle)of TRUSCO
delivery
Number of TRUSCO
delivery runs
routesvehicles (-1 vehicle)delivery routes

Male 43.4
Female 33.0

39.8

locationsapprox.

* Personnel with supervisory qualifications or higher

Average age

17 locations

Stock centers 11
28 locations
Logistic centers356,595
Floor areas of distribution
approx. 409,431 ㎡
centers in Japan
Branches with inventory
52,836

Number of distribution bases

Sustainability

Female staff ratio

577
35.2 ％

TRUSCO Private Brand Products

Human Resources

Number of full-time staff

million

Items*

Officers
Full-time staff
Part-time staff

2,954

units

companies* Extraordinary income of $24 million from the sale of land was recorded for the 59th fiscal year
ended December 31, 2021.

Employees

Items

%

%

Human Resources

companies

562,026 Items (+62,062 )Inventory items
53,197,583 units (+4,409,969 )$323 million (+$21 )TRUSCO Orange Book.Com
3,167,188 Items (+406,301 )Number of items listed
Number of Items
TRUSCO Private
90,277 Items (+10,777 )Brand Products
Sales$327 million (+5.6 )Number of listed)
2,152 companies (+204
TRUSCO Orange Book
manufacturers
Number of items
374,000 Items (-134,000 )Number of items
in inventory
Total number of
items in inventory
Inventory Value(consolidated)

Digital Service

Shareholders’ equity ratio

companies

Items

million(as of December 31, 2022)

companies

Sales

Annual dividendMarket capitalization

Japan 2,943( +306 ) Overseas
329

Items

(+12.8 )$104(+11.1 )$107(-8.4 )
$75
$0.28 (+$0.03 )R&I Rating$959
Single A
67.1

Operating income

companies

Distribution

million

3,272

Products$1,760
21.2
$267

Sales

Total Number of suppliers

Management
Policy60th Term (2022 12th term) Business Performance

Products

Value Creation

We express our company's performance through various figures, including business performance during the 60th term andkey indicators. (See p.74 for details on business performance)

locationsPower generationfor 2022

2,653,344 kWh

16.4%
8,109 t-CO Scope3 1,724,759 t-CO
2,327 t-CO
Amount of waste 2,022 t Fuel use 784 KL Tap water usage 42,493 ㎥ Corporate tax $35 million

Renewable energy power self-sufficiency rate
Amount of CO2 emissions
MRO Stocker, which is like “Okigusuri,”a business model that has been around formany years in Japan, but for tools.

Scope1*1

2

Scope2*2*3

2

2*1 Direct emissions from fuel used by the Company *2 Indirect emissions resulting from energy supplied by another company*3 Indirect emissions from the supply chain other than Scope 1 and 2

Solar power generation equipment at
Planet South Kanto
Power Generation Capacity: 300 kW
Number of Solar Panels: 1,190
Integrated Report 2023

73

Results Data (Operating Results Indicators) (as of December 31, 2022)

Results Data (Sales Information) (as of December 31, 2022)

Gross profit margin$1,760 million 21.2%
Sales (Million USD)
Gross Profit Margin (%)

1,530 1,575 1,524 1,620

21.2 20.9
817
21.7
21.5
21.5
21.3
21.2 21.2
21.0
20.9

Ordinary Income Ratio$107 million 6.1%

Ordinary Income (Million USD)
Ordinary Income Ratio (%)

107 113102 103 104 100
96
82
7.5 6.8
7.4
6.4
6.0 6.1 6.0
60 7.9 8.2
5.4
94

25,466
23,68327,14026,327

26,881
26,1685,447 5,415

5,333
5,348

2014/12 2015

2016

2017

2018

2019

2020

2021

2022

Consolidated
Accounting Started

Net Income/Profit Margin

Net Income

2018

72

70

58

69 68

Profit margin

million

82

4.3

%

75 77

57

9-monthfinancial results

2022

Consolidated
Accounting Started

2023 (year)(planned)

2020

2022

2023 (year)

2014/12 2015

(planned)

No. of companies connected

1,017
910 949
1,078
861
82.7 81.4 82.7 811
70.9 65.0 63.7 64.0 67.1
649
697 755 77.1
Shareholders’ equity ratio (%)

2,042

Number of Companies Connected(companies)

860
2017

2,233 2,600

1,263

1,101
2018

2019

1,324

2020

2021

2022

2014/12 2015

2016

2017

2018

2019

2020

2021

2022

Consolidated
Accounting Started(planned)

2017

2018

9-monthfinancial results

2019

2020

2021

Consolidated
Accounting Started

Non-consolidated

PB Product SalesPB Sales Constitution Ratio

2014/12 2015

2016

2017

2019

2020

2021

2022

Consolidated
Accounting Started(planned)

Capital Expenditures

9-monthfinancial results

74

2016

2017

2018

2019

2020

Consolidated
Accounting Started

Integrated Report 2023

0.22 (0.54) 0.27 0.26 0.26

25.3
0.15

(0.44)

25.0 25.2

25.3 25.1 25.0

0.21
25.1

(0.30)

0.25
20.2

0.28 0.29

2021

24.8 25.1

2014/12 2015

2016

2017

2018

9-monthfinancial results

2019

2020

2021

2022

Consolidated
Accounting Started

2023 (year)(planned)$753 million

Total fixed assets

2023 (year)(planned)

553
390
358
2014
9-monthfinancial results

408
372
2015

749

758

765 753

652

410
2016

484

2017

562

2018

665

2019
Consolidated
Accounting Started

685

2020

700 695

2021

2022 (year)

562,000 items

91.7%

85.2%

System order intake ratio (%)

91.7

89.5
82.0

89.9
81.7

90.5
83.1

91.3
91.0
85.3
83.9

23.1

33.6

37.4

39.2

44.2

49.9

85.2
56.2

2014/12

2015

2017

2018

2019

2020

2021

2022

2016

92.0
86.0
59.5
2023 (year)(planned)

Consolidated
Accounting Started

155 (0.19)

178 (0.35)

207 (0.22)

227 (0.29)

264 (0.27)

311 (0.30)

296 (0.35)

327 (0.39)331

323 (0.46)

158.7 170.6

88.3

145.1
123.9 131.7 113.0 159.4 164.1
116.3
108.5
101.4 111.3
120.0 113.2
95.8 101.1 104.3 104.8

2013

2014/3

TRUSCO NAKAYAMA Net Sales Indicators (%)
Total Sales Indicators ofCompetitors in the Same Sector (%)

88.9
88.4

2008

2009

73.8
63.6
2010

85.9 96.6
79.1 88.6
2011

98.4

2012

2014/12

2015

2016

2017

2018

9-monthfinancial results

2019

2020

2021

Consolidated
Accounting Started

Item and sales destination business expansion with small decline in sales distributes risk even in a bad economic environment and results in reliably increasing market share.

Company Net Sales Indicators andIndustrial Production Index

452

System order intake ratio

Total Sales Indicators of Competitors in the Same Sector and Trusco Nakayama Net Sales Indicators

Total Fixed Assets(Million USD)

Stock Hit Rate*2008 is set as 100 for the base when the Lehman Shock hit (figures are calculated based on results and forecasts as of April 30, 2021)
Calculated by combining the sales of six companies in the same industry (wholesale industry). (from Annual Securities Report)

100.0

Total Fixed Assets

2022 (year)

Number of items in inventory

9-monthfinancial results

Inventory Value (Disposal Value) [Million USD]

Tangible fixed assets

2022*Inventory Hit Rate: Ratio of products
delivered from our company stock
divided by our total number of orders.

2021

2020

88.8
88.2
82.0
79.9
26.4
29.8

86.8
77.9

1,704

The Nakayama visually
Corporate Data
impaired welfare foundation

Short-term
DebtLong-term $121 million Long-term
Debt
Debt
$107 million$71 million$33 million

140
122 27 Digital Service
102 25
97
Capital Expenditures
25 Facilities
13(by year) (Million USD)
20
Land and Buildings
12 27
62 5
57
57
28
7
3
5 33
87
2 76
32
68
25 1 3
7
42 52
46
5
5
0.7
22 22
20 49
10
2014/12 2015

0.27

Dividends prior FY2016 were calculated based on number of shares after the stock
split where one share was split into two shares on January 1, 2017. Figures inparenthesis denote the actual dividend amount paid.

Capital Expenditures

Long-term
Debt$71 million

2023 (year)$0.28 24.8%

Inventory Hit Rate (%)
Number of items in inventory(Unit: ten thousand)

2019

1,575

55

62

Approximately 4% of net sales are made up of net sales of products newly handled that year.
Note: “Accounting Standard for Revenue Recognition”, etc. not retroactively applied to2021 figures.

Changes in Number of Different Inventory Items,
Stock Hit Rate, and System Order Intake Ratio

We are expanding our inventory
items with focus on long tailproducts and strengthening prompt
delivery systems to customers.

2018

1,465

59

Corporate
Governance

9-monthfinancial results

2018

Dividends (in USD)
Dividend payout ratio (%)

Dividend payout ratio

1,515

60

Environmental
Efforts

327 357
20.0 20.6 20.9 20.6 310 312 295 310 18.6 18.6
Number of PB Products(Unit: ten thousand)
264 286 20.3 19.9 19.4 19.2
9.0
7.9
162 245
6.7
5.6 5.9
5.0
4.5
3.8 4.1
PB Sales Constitution Ratio (%)

Dividends

Since there was an extraordinary gain from thesale of land in 2021, the impact was excluded andthe dividend amount was determined.

72

1,760

1,637

1,524

Sustainability$327 million 18.6%

PB Product Sales (Million USD)

Dividends/Dividend Payout Ratio$55 million

Consolidated
Accounting Started

2022 (year)
Non-consolidated

Private Brand (PB) Goods Sales(Constitution Ratio)/Number of Products2023 (year)(planned)

Human Resources

9-monthfinancial results

2016

68 1,457

2017

2023 (year)(planned)

1,575

1,530

1,392

1,367
Consolidated
Accounting Started

2014/12 2015

2021 2022

Newly Listed Product Sales

Existing Goods Net Sales, etc. (unit: million USD)*The method of counting the number of connected companies was changed in 2021.
2023 (year)

2020

316.7

Consolidated
Accounting Started

Net Sales of New TRUSCO Orange
Book Products (unit: million USD)

2,233 companies

Shareholders’ equity ratio$1,078 million 67.1%

2019

276.0

Change in Company Net Sales of New TRUSCO Orange Book Products

Changes in Number of Companies Connected to Orange Commerce

Net Worth202.1 233.7

2016 2017 2018

9-monthfinancial results

420.02014 to 2022 (Bankruptcies of Regular Customers Without a Security Deposit:
6 ($22.4 thousand in unsettleable payments))

Net Worth/Net Worth Ratio
Net assets (Million USD)

2021

Consolidated
Accounting Started

2,537

Digital Service

38 4.9 5.6 5.2
4.5 4.4 3.8 5.1 4.3 4.1
4.8

2014/12 2015 2016 2017 2018 2019 2020 2021

2019

166.3
121.3 145.7

81.4 100.8

5,323
2017

2,339 2,477

3,470

Sales

$75

Net income (Million USD)
Profit margin (%)

2023 (year)(planned)

5,575 5,630

2,966 3,272

Distribution

2016

9-monthfinancial results

2,047 2,127 2,222

5,515 5,527

9-monthfinancial results

2014/12 2015

Available TRUSCO Orange
Book Items (unit: ten thousand)Suppliers(companies)

27,5505,592

Number of companies

3,272 companies 3,160,000 items

32,50029,56131,614

Number of Sales Accounts

Number of items listed

Products

1,189

1,264 1,392

1,760 1,892

Ordinary Income

Suppliers

5,575 companies 31,614 sales accounts

Ordinary Income/Ordinary Income Ratio

Sales

Number of Sales Accounts

Management
PolicySales/Gross profit margin

Number of Companies

Value Creation

Changes in Number of Suppliers and Available TRUSCO Orange Book Items

Changes in Number Business Partners and Sales Accounts
Consolidated Accounting Started : Figures based on consolidated business results due to the start of consolidated accounting in 2019.

*Index standard: 100 in 2015
*The Industrial Production Indexes are figures that werereleased by the Ministry of Economy, Trade and Industry
on January 31, 2023.
Due to inventory expansion, our factory route andeBusiness route sales have grown and shown
more favorable trends than even the Industrial
Production Index, which indicates the state ofindustry and manufacturing activities.

TRUSCO NAKAYAMA Net Sales Indicators

100.0
2015

106.3

117.1

128.7

103.1

2016

2017

128.1

136.2

148.0

Industrial Production Index

104.2

100.0

132.5

2018

101.1
2019

90.9

95.2

95.6

2020

2021

2022

Consolidated
Accounting Started

Integrated Report 202375

9-month financial results

Consolidated Accounting Started

52nd term*

53rd term

54th term

55th term

56th term

57th term

58th term

59th term

60th term

2014/3

2014/122015/122016/122017/122018/122019/122020/122021/122022/12

61st termManagement
Policy51 termst

Operating Results

Value Creation

Results Data (Operating Results Over the Past 10 Years)

2023/12(planned)

Sales (Year on Year)[Million USD] (%)

1,042 (+10.3)

817 (+10.1)

1,189 (+6.5)

1,264 (+6.3)

1,393 (+10.2)

1,530 (+9.8)

1,576

1,524 (−3.3)

1,620

1,760 (+8.6)

Average Daily Sales (Year on Year) (Non-consolidated parent)[Million USD] (%)

4 (+10.3)

4 (+10.7)

4 (+6.5)

5 (+6.3)

5 (+8.8)

6 (+10.8)

6 (+5.0)6 (−4.9)

6

7 (+7.3)

7

Gross Profit Margin (Year on Year)[Million USD] (%)

212 (+10.9)

171 (+13.3)

255 (+9.9)274 (+7.3)

295 (+7.9)324 (+9.9)335

327 (−2.4)

340

372 (+9.4)

395

[%]

20.4

20.9

21.5

21.7

21.2

21.2

21.3

21.5

21.0

21.2

20.9

Selling, general and administrative expenses (Year on Year) [Million USD] (%)

139 (+6.2)

110 (+7.8)

162 (+10.0)

172 (+6.2)

193 (+12.0)

222 (+14.8)

237

249 (+5.0)

247

267 (+8.1)

283

22

18

26

28

33

39

44

44

48

54

61

Depreciation[Million USD]

12

10

16

17

19

25

34

46

49

47

45

Salaries and bonuses (including bonus reserve inward/outward transfers)[Million USD]

61

48

68

75

84

88

88

86

86

93

99

[%]

13.4

13.5

13.7

13.7

13.9

14.5

15.1

16.4

15.3

15.2

15.0

[Million USD] (%)

72 (+21.3)

60 (+25.0)

92 (+9.7)

101 (+9.1)

101 (+0.8)

102 (+0.6)

98

78 (−20.1)

92

104 (+12.8)

112

[%]

6.9

7.4

7.8

8.0

7.3

6.7

6.3

5.2

5.7

6.0

5.9

[Million USD] (%)

71 (+21.3)

60 (+25.3)

94 (+12.0)

103 (+9.2)

104 (+1.0)

104 (+0.4)

101

82 (−18.6)

96

107 (+11.1)

114
6.0

Selling and administration expense ratio
Operating income (Year on Year)
Operating profit ratio
Ordinary income (Year on Year)
Ordinary Income Ratio

7.4

7.9

8.2

7.5

6.8

6.4

5.4

6.0

6.1

39 (+34.7)

58 (+11.9)

71 (+20.9)

72 (+2.1)

69 (−4.4)

68

57 (−16.7)

82

75 (−8.4)

78

[%]

4.1

4.8

4.9

5.6

5.2

4.5

4.4

3.8

5.1

4.3

4.1

Cash and deposits[Million USD]

103

82

102

76

74

83

131

231

296

281

−

Merchandise[Million USD]

145

155

178

207

227

264

311

296

302

323

331

Fixed assets[Million USD]

370

390

408

453

554

652

749

759

765

753

−

Tangible fixed assets[Million USD]

343

359

373

410

484

562

665

686

701

696

−

Intangible fixed assets[Million USD]

14

13

12

15

23

42

61

49

38

31

−

Total assets[Million USD]

783

785

858

914

1,052

1,215

1,400

1,491

1,590

1,608

−

Net Worth[Million USD]

621

649

698

755

812

861

910

949

1,017

1,078

−

[%]

79.3

82.7

81.4

82.7

77.1

70.9

65.0

63.7

64.0

67.1

−

Profit margin

Shareholders’ equity ratio

Human Resources

6.9
42 (+23.6)

Digital Service[%][Million USD] (%)

Net income (Year on Year)

Sales[Million USD]

Distribution

Shipping expenses and packing costs (including fees for third-party delivery companies)

Products

Gross profit margin

1,893*Not included the 59th term's year on year because of the figures calculated after the “Accounting Standard for Revenue Recognition”

Note: The year-on-year change for the 52nd term was calculated by converting the 51st term into a nine-month period, and the year-on-year change for the 53rd term was calculated by converting the 52nd term into a 12-month period.

[Million USD]

66

23

66

46

Corporate tax amount paid

[Million USD]

−22

−31

−16

−41

−30

Cash flows from investing activities[Million USD]

−39

−31

−36

−55

−118

Cash flows from financing activities[Million USD]

−9

−12

−11

−16

53

Dividend amount paid

[Million USD]

−9

−12

−11

−16

Net increase (decrease) in cash and cash equivalents[Million USD]

18

−20

19

Return on assets (ROA)

[%]

9.6

7.7

Return on equity (ROE)*

[%]

7.0

6.2

[Million USD]

43

25

63

78

107

113

86

−

−29

−34

−30

−24

−35

−

−129

−140

−62

−32

−36

−

89

103

55

−16

−65

−

−18

−17

−17

−16

−16

−15

−

−25

−1

9

42

100

65

−14

−

11.5

11.6

10.6

9.2

7.2

5.7

6.3

6.7

−

8.7

9.8

9.3

8.3

7.5

6.1

8.4

7.2

−

32

58

103

122

141

57

62

34

98

49

Environmental
Efforts

Cash flows from operating activities

Sustainability

Cash Flow

Financial Indicators
Corporate
GovernanceCapital Expenditures*ROE concept: TRUSCO NAKAYAMA does not employ short-term strategies to increase ROE. We aim to expand profit by providing investments to ongoing growth sectors to facilitate long-term and stable growth.

Earnings per share (EPS)*

[USD]

0.64

0.59

0.89

1.07

1.10

1.05

1.04

0.86

1.25

1.15

1.18

Book-value per share (BPS)*

[USD]

9.42

9.84

10.59

11.46

12.31

13.06

13.80

14.40

15.42

16.35

−

Annual dividend[USD]

0.32 (0.16)

0.30 (0.15)

0.44 (0.22)

0.54 (0.27)

0.27

0.26

0.26

0.21

0.25

0.28

0.29

[%]

25.2

25.3

25.0

25.2

25.3

25.1

25.0

25.1

20.2

24.8

25.1

Dividend payout ratio

The Nakayama visually
Corporate Data
impaired welfare foundation

Information by Share

*The net income per share, net assets per share, and annual dividend amounts in parentheses before the 54th term were calculated based on the number of shares after the stock split for splitting one share into two shares on January 1, 2017.
results show sales performance announcing the settlement of accounts for each term by segment. Year-on-year comparisons are made with the figures for theSales by Segment (Theprevious year which have been reclassified to correspond to the segment classifications of each period.)

Factory RouteSales (Year on Year) [Million USD] (%)

945 (+10.5)

720 (+10.1)

e-Business RouteSales (Year on Year) [Million USD] (%)−−

Home center route

Sales (Year on Year) [Million USD] (%)

82 (+5.1)

62 (+0.2)

Overseas RouteSales (Year on Year) [Million USD] (%)

13 (+26.6)

34 (+35.2)

996 (+5.3)

1,042 (+4.5)

1,124 (+8.1)

1,208 (+7.4)

1,214

1,119 (−7.8)

1,159

1,218 (+5.1)

1,303

106 (+25.9)*1

132 (+24.9)

174 (+29.1)

219 (+26.1)

246

274 (+11.4)

317

368 (+16.2)

406

81 (−2.2)

85 (+4.8)

88 (+3.2)

96 (+8.6)

105

121 (+15.6)

131

158 (+20.7)

164

4 (+82.5)

4 (−15.2)

6 (+59.5)

6 (+5.3)

10*2

8 (−14.5)

12

15 (+24.4)

18*1 e-Business Route added as a result of expanding sales since the 53rd period.
*2 Overseas Route established and business results of overseas subsidiaries included in figures due to the start of consolidated accounting in the 57th period.

76

Integrated Report 2023

*Not included the 59th term's year on year because of the figures calculated after the “Accounting Standard for Revenue Recognition”

Integrated Report 2023

77

9-month financial results

2014/3

Employees*1(persons)

Total

2014/122015/122016/122017/122018/122019/122020/122021/122022/12

1,905

1,980

2,143

2,293

2,571

2,727

2,796

2,786

2,906

8

8

7

9

8

8

12

12

10

10

1,219

1,280

1,349

1,424

1,514

1,608

1,656

1,674

1,632

1,639

Officers
Full-time staff

Consolidated Accounting Started

2,954

692

787

860

1,049

1,111

1,128

1,100

1,264

1,305

28.6

29.1

29.9

32.7

33.7

34.6

35.3

35.2

35.0

35.2

Average age*1

Staff average

39.7

39.4

39.6

39.3

38.6

38.2

38.2

38.4

39.6

39.8

(Years of Age)

Career course*4

35.3

34.6

34.1

33.5

33.7

33.3

33.1

33.5

34.2

34.6

Area course

41.1

41.6

42.3

43.2

43.6

43.7

44.0

44.0

44.4

44.7

Specialist course

33.5

34.7

36.5

36.1

36.1

36.4

37.0

37.2

37.8

38.4

Logistics course*4

45.8

44.0

42.7

40.2

37.9

36.8

37.2

37.1

37.8

37.1

43.3 (45.7)

45.7 (48.0)

47.1 (48.8)

48.1 (50.6)

51.0 (53.6)

50.0 (52.7)

46.7 (49.4)

44.2 (46.8)

43.9 (46.6)

47.2 (49.9)

100.0 (107.2)

99.0 (107.5)

105.0 (112.0)

117.0 (126.0)

123.8 (133.0)

123.7 (134.0)

107.0 (115.7)

103.2 (112.2)

104.1 (112.4)

104.8 (112.8)

Managers

66.7 (71.0)

71.0 (74.2)

76.0 (80.5)

82.3 (87.3)

82.1 (87.6)

81.1 (87.1)

80.5 (86.5)

79.7 (85.6)

81.3 (86.8)

49.0 (51.8)

51.1 (54.0)

51.9 (54.0)

54.0 (56.9)

57.5 (60.5)

57.4 (60.7)

54.1 (57.4)

51.5 (54.8)

51.7 (55.1)

55.0 (58.5)

Area course

40.7 (43.5)

43.7 (45.8)

45.0 (46.7)

46.5 (49.0)

49.7 (52.2)

48.5 (51.2)

45.8 (48.5)

42.9 (45.5)

42.5 (45.2)

45.2 (47.8)

Specialist course

40.8 (42.7)

44.6 (46.6)

49.1 (50.8)

52.5 (55.2)

54.1 (56.9)

54.3 (57.4)

51.0 (54.0)

48.5 (51.6)

49.9 (53.2)

57.0 (60.7)

Logistics course*4

32.8 (33.7)

34.7 (35.7)

38.2 (38.9)

37.0 (38.4)

38.6 (40.0)

37.1 (38.5)

35.1 (36.5)

32.9 (34.3)

32.5 (34.0)

35.2 (36.7)*1 Changed to consolidated employee count from 2019
*2 TRUSCO NAKAYAMA has a payment policy that provides severance as annual financial bonds rather than a single payment upon resignation.

*3 Staff averages include the executive officer.
*4 Those who changed to newly established courses in 2022 are excluded due to the change during the fiscal year.

(persons)

43 (29)48 (32)54 (43)61 (38)67 (43)67 (48)66 (51)66 (50)67 (55)67 (62)

[%]

2.3

3.3

3.2

3.2

3.1

2.9

2.9

2.9

2.8

2.7

Employee Rate of Persons with Disabilities

Status of Stock -As of December 31, 20221.44%
3.49%

Shareholder Composition

No. of New Employees and Retirees

Change in Number of Shareholders

Consolidated Accounting Started

14,648 94.71%
540

3.49%

Foreign corporations, etc.

222

1.44%

Financial firms/stock brokerages

55

0.35%

Treasury stock

1

0.01%

Total

Stock Split
1 Share2 Shares29,99794.71%

Full-time staff

15,466

11,472,477

0.10%

Foreign corporations, etc.

13,512,336 20.47%

Financial firms/stock brokerages 15,971,976 24.20%
66,457

18,462
16,963
15,567
14,71815,940 16,043

0.10%

24.20%

20.47%

17.38%

16,336*

15,466

14,406

2012

Index: 100 in April 2008
Market Capitalization ■TRUSCO NAKAYAMA ■Nikkei Average
Corporation(Million USD)

2008/4

2009/3

2010/3

2011/3As of December 31,
2022

Women
Men

510
1,004

557
1,051

585
1,071

589
1,085

571
1,061

577
1,062

Total

1,608

1,656

1,674

1,632

1,639

59
67

63
72

52
57

41
46

26
25

47
51

Total

126

135

109

87

51

98

22
21

40
43

Number of New
Graduates Hired

2013

2014
2015
2016
9-month financial results

2017

55th term 56th term 57th term 58th term 59th term 60th term (year)
2018
2019
2020
2021
Consolidated Accounting Started

2022

2023

Retirees397
2012/3431
2013/32017/1/1 Stock Split 1,548■TOPIX

561

1,113 1,153

Turnoverrate (%)

959

253.6
188.4

(Nikkei Average: $186.38)

2014/122015/122016/122017/12

58
60

46
50

Total

83

118

96

79

43

83

Women
Men

18
18

20
26

42
44

37
33

45
45

39
44

Total

36

46

86

70

90

83

Women
Men

3.4
1.8

3.5
2.4

6.7
3.9

5.9
3.0

7.3
4.1

6.3
4.0

Total

2.3

2.8

4.9

4.0

5.2

4.8

Note: Includes overseas employees on loan since 2018.
(Stock Price: $14.53)

738

9-month financial results

46
37

37
42

1,365 1,320 1,365 1,287

2018/122019/122020/12

Consolidated Accounting Started

2021/12

Some of the Main Reasons for Resignation in 2022
· To start a business· To focus on medical treatment· Early retirement· To focus on childcare and taking care of an adult family member(TOPIX: 1,891.71)· To concentrate on studies· To accompany a spouse that was relocated overseas by their company (Welcome Back Program*)

2022/12· Due to reaching the retirement age* This program is for the re-employment of staff who had to resign to raise a child, take care of a sick family member, undergo infertility treatments,
or to accompany their spouse goes to due to a work appointment within ten years of their resignation.

139.2

2014/3Women
Men

The Nakayama visually
Corporate Data
impaired welfare foundation

49th term 50th term 51st term 52nd term 53rd term 54th term

Comparison of TRUSCO NAKAYAMA Market Capitalization and Principal Indicators

351

As of December 31,
2021

1,514

*The shareholder special benefit plan was abolished in the 58th term.

347

As of December 31,
2020

Women
New employees Men

37.85%

66,008,744

275

As of December 31,
2019

Corporate
Governance

24,985,498 37.85%

Total

Number of Shareholders

17.38%

Japanese corporations

Treasury stock

As of December 31,
2018

25,365

Number of Shares Issued
Individuals, etc.

As of December 31,
2017

Environmental
Efforts

Japanese corporations

40,106

Sustainability

Individuals, etc.

0.35%
0.01%

Human Resources

Number of Employees with Disabilities(statutory employment rate based hires)

Digital Service

62.6 (66.7)

Career course*4

Sales

is shown in theparentheses.

Distribution

678

Female staff ratio

Products

Part-time staff*3
Average salary Staff average[thousand USD]
Department general managers and division
general managers (does not include officers)
The averagesalary including
Managers including branch managers, center
financial bonds*2
managers, and Head Office section managers

Management
PolicyAverage Age/Salary of Staff by Course

Value Creation

Results Data (Employee and Stock Information) (as of December 31, 2022)· To take over the family businessNote: The company's share price is based on the assumption that a stock split was conducted before the fiscal year ended December 2016. (Index: 100 in April 2008)

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Integrated Report 2023

Integrated Report 2023

79