INTEGRATED REPORT 2023

OILES CORPORATIONINTEGRATED REPORT

2023
https://www.oiles.co.jp/

Issuing department & contact information

Oiles Corporation General Affairs Dept., Corporate Planning & Administrative Division
8 Kirihara-cho, Fujisawa-shi, Kanagawa 252-0811, Japan◦This report is also available on our website athttps://www.oiles.co.jp/corporate/csr/◦Please contact us to share any comments or impressions pertaining to this report at
https://www.oiles.co.jp/en/contact/

OILES CORPORATION◦Pertaining to the Integrated Report in general

Management Philosophy

To become a world leader as a generalmanufacturer of oil-less bearings and serve
society through technology

Editorial Policy

Contents

The OILES Group started publishing its CSR report in PDF format in 2017 withthe purpose of reporting to its stakeholders regarding the Group’s stance andits efforts for realizing a sustainable society. It will communicate more broadly
with stakeholders to further promote its activities into the future. To disclose
an even more extensive set of information, the Group started publishing thisintegrated report combining financial and non-financial information in 2021.

Management Philosophy, Company
Vision, Long-Term Vision

01

Editorial Policy02

⿟Reporting Period

Our Philosophy/DNA & Our History

03

Fiscal 2022 (April 1, 2022 to March 31, 2023)
The notation for the reporting period in English follows the Japanese(e.g., FY2022 = 2022年度).

Message from the President

05

Identifying Major Issues (Materiality) for
Sustainable Growth09

⿟Publication Date

Value Creation Process

11

October 2023 (next issue: planned for Autumn 2024)

Our Business

Some information outside this period has also been included with indication of the date.

Company Vision

⿟Scope of Report

We have come together under the Oiles name.
We will grow together as Oiles, recognized the world over.

OnwardIdea

forward day
by dayoriginality andingenuity

Libertyand Law
freedom anddiscipline

ExpertServiceall of us
specialists

serving society

This report covers Oiles Corporation and consolidated subsidiaries in Japanand overseas, adopting the following notations.
・“Oiles Corporation,” “the company” and “non-consolidated” refer to Oiles Corporation
・“Domestic Group companies” collectively refers to Oiles Corporation with its eightconsolidated subsidiaries in Japan・“Overseas Group” collectively refers to the eight Group companies outside Japan・“Oiles Group,” “the Group” and “we” collectively refer to Oiles Corporation with all companies
in the Oiles Group⿟Publication on the Website
This report is also available on our website athttps://www.oiles.co.jp/en/⿟Guidelines Used as Reference

・IFRS Foundation, “International Integrated Reporting Framework”
・M inistry of Economy, Trade and Industry, “Integrated Disclosure / Dialogue Guidance
for Value Collaborative Creation”・M inistry of the Environment, “Environmental Reporting Guidelines 2018 Edition”・M inistry of the Environment, “Environmental Accounting Guidelines 2005 Edition”
・GRI, “GRI Sustainability Reporting Standard 2016/2018/2019/2020/2021”
・Recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)

⿟Note on Forward-Looking Statements• A company that contributes to the preservation of the global environment and delivers
safety, security and comfort through the products and technologies required by the world• A market-creating company that pursues tribology technology (friction, wear andlubrication) and damping technology (vibration control) to create one-of-a-kind products•A company that fulfills its corporate social responsibility (CSR) and helps realize asustainable society through business with high social contribution

01

OILES CORPORATION INTEGRATED REPORT 2023

Oiles Business Activities

13

Bearings

15

Structural devices

19

Architectural devices

21Intellectual Property Initiatives

23

ESG Initiatives

https://www.oiles.co.jp/en/sustainability/integrated_report/

Financial and non-financial information not included in the integrated reportis available on our website.

Long-Term Vision

Toward Sustainable Value Creation

This report contains forward-looking statements, including projections
regarding the business plans, performance and management strategies
of Oiles Corporation. These statements are based on the judgment of thecompany’s management in light of information available at the time. Therefore,
do not solely rely on these statements since actual results and management
strategies may differ significantly due to changes in the business environment.

⿟Note on Financial Figures* The figures in this report have been calculated based on Japanese GAAP.
* We have applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement
No.29, March 31, 2020) from the beginning of the fiscal year ended March 31, 2022,
and the figures for each of the fiscal years ended March 31, 2015 through March 31,
2021 are calculated after retroactively applying the “Accounting Standard for Revenue
Recognition”.
* We have applied the “Partial Amendments to Accounting Standard for Tax EffectAccounting" (ASBJ Statement No. 28, February 16th, 2018) from the beginning of the
fiscal year ended March 31, 2019, and the figures for each of the fiscal years ended
March 31, 2015 through March 31, 2018 are calculated after retroactively applying the“Partial Amendments to Accounting Standard for Tax Effect Accounting”.

Management and Sustainability (CSR)

25

Corporate Governance

27

Interview with Outside Director

30

Compliance

31

Risk Management

32

Environmental Initiatives

33

Human Resource (Human Capital)
Development Initiatives

39

Product Quality Initiatives

45

Fair and Equitable Trade

47

Data Book
Corporate Data

49

Financial Data

51

Non-Financial Data

56

Financial Highlights

60

OILES CORPORATION INTEGRATED REPORT 2023

02

Our BusinessToward Sustainable Value Creation

ESG Initiatives

Data Book

Our Philosophy/DNA & Our History
Sales (millions of yen)
60,000

2000s

1983

2002

Established Oiles (Thailand) Co., Ltd. in Thailand.

2003

Established Oiles Czech Manufacturing s.r.o. in the
Czech Republic.
Spun off the architectural devices business andintegrated it with a sales subsidiary to form Oiles ECO
Corporation.

Corporate Chronology
1930s to 1950s

1960s to 1970s

1987

1966

Changed the company name to Oiles Industry Co., Ltd.

1939

Sozo Kawasaki established Japan Oilless Bearing
Research Laboratory.

1967

Moved the company’s headquarters to the newly
established Fujisawa Plant in Fujisawa City, Kanagawa
Pref.

1942

Obtained a patent for Oil-impregnated expanded castiron bearings (#300).

1970

Established Shiga Plant in Ritto-cho (currently Ritto City),
Shiga Pref.

1952

Established Nippon Oilless Bearing Research andDevelopment Co., Ltd.

1971

Started manufacturing and selling the Window Operator
window opening/closing device for air ventilation andsmoke exhaust.

1958

Changed the company name to Nippon Oiles Industry
Co., Ltd.

1976

Established Oiles America Corporation as the firstoverseas subsidiary.

1932

1953

1960

1970

1980

Started manufacturing Oiles LRB seismic isolators. The
Fujisawa Plant was constructed as Japan's first building
with a seismically isolated structure.

1989

Registered stock with the Japan Securities Dealers
Association as over-the-counter stock.

2005

Established Oiles Suzhou Corporation in China.

1991

Established a plant in North Carolina as a production
plant for the US subsidiary.

2011

Established the business currently named “Oiles India
Private Limited” in India, building a new plant in 2013.

1993

Established the Ashikaga Plant in Ashikaga, Tochigi Pref.

2018

Extended Oita Plant Building No. 2.

1997

Listed on the first section of the Tokyo Stock Exchange.

2021

Built the new NP Building as part of efforts to strengthen
R&D function at the Fujisawa Plant.

1998

Established Shanghai Oiles Bearing Inc. as the firstsubsidiary in China.

2022

Transferred to the Prime Market segment when theTokyo Stock Exchange restructured its markets.

1990

2000

50,00040,00030,00020,0002010

10,000

2022
2021
(FY)

0

Message from the President

Founder Sozo Kawasaki obtained a patent for a method
for manufacturing oil-less wooden bearings.

Established Oita Plant in Nakatsu City, Oita Pref.

Our Philosophy/DNA & Our History

1980s to 1990s

Seismic Isolators and Vibration Control Devices

History of Oiles Technologies
It all started with a small wooden bearing.
While working at the Monopoly Bureau of the Ministry of Finance in theearly Showa period (1926-1989), the company's founder Sozo Kawasaki
saw a bearing that required no lubrication in an American-made cigaretteroller machine. He applied his characteristically inquisitive mind to unravel
the mystery and obtained a patent in 1932 for a method to manufacture
an oil-less wooden bearing.
This “DNA” of Mr. Kawasaki, as an inquisitive spirit stemming fromhis desire to contribute to society through technology, has been and willcontinue to be passed on by Oiles in its never-ending quest to develop
unique technologies and products.

Bearing

Seismic isolators for manufacturing equipment
Seismic isolators and vibration control devices for residences
Wall-type
Dampers

pad

Friction
Pendulum
SystemWall-type Viscous
Friction Dampers

Identifying Major Issues (Materiality) for Sustainable Growth

We applied tribology techniques to the seismic motion isolation
technology and combined it with the damping technology togain the skills for producing seismic
Building-use
Sliding Support
isolators and vibration control devices.
Lead Rubberwith Rubber-◦Structural
devices
Bridge-use Lead
Rubber Bearing

OILES Cable DamperHigh Performance
Bearing

Bridge-use Bearing(bearing plate)Founder Sozo Kawasaki

Air Bearings

Metallic Bearings

Bingham Material Stopper

#300

#500

Slide shifter

#550
#2000

Oiles Air Bearing

Cam unit

Compact Floating Cutter◦Bearings
Plastic Bearings

#250

#80

LutechMulti-layered Bearings

DrymetTechmetGlitron#81-B1,#83-B1(Bio-based plastic)

HiplastValue Creation Process

Wooden Bearings#100◦Architectural devices
Control Cables

03

OILES CORPORATION INTEGRATED REPORT 2023

By coating a wire with oilimpregnated resin, we developed
a remotely operated window
opening/closing device(s) for air
ventilation and smoke exhaust. We are applying this method,
based on the functions of communication and transmission,
to control and shield lights.

Window opening/closing device for air ventilation and smoke exhaust,Window Operator

External blind forresidences,
BRIIL

Natural air ventilator,
Ecorator

External blind forbuildings,
Ecoshade

Window opening/closing device
for roof skylightwindows,
Top Light

OILES CORPORATION INTEGRATED REPORT 2023

04

Message from the President

We aim to achieve market valuation and increase our corporate value by enhancing our efforts to address
sustainability issues along with growth strategies for our three businesses to solve social issues.

Our Strengths that Underpin Value

Since founder Sozo Kawasaki invented Japan’s first wooden

Our value creation is driven by the relentless pursuit of two coreoil-less bearing, we have brought countless products to market

technologies: tribology, which is the science of friction, wear andthrough our own original technologies, with tribology technology

lubrication, and damping technology for vibration control. As(friction, wear, and lubrication) and damping technology (vibrationa market-creating company, we are engaged in research andcontrol) at the core.

technological development with the desire to develop unique

Based on our management philosophy of becoming a world

Masami Iida

the customers who use our components in their final products

society through technology, we have a desire to serve society

to provide the world’s best and the world’s first products of thatthrough technology that has been handed down from our founder.

type. We are also committed to allocating management resources

This is the universal value of our Group which we have always

in a focused manner to deliver outcomes from this researchsought to embody.

and technological development. Our ratio of R&D expenses to

Our Group’s portfolio consists of three businesses: bearings,

consolidated net sales has been approximately 4.3% on average

structural devices, and architectural devices. A bearing that isfor the past five fiscal years, which is high even compared to otheroil-less (a self-lubricating bearing) helps to reduce environmental

companies in the same industry.

impact. An example of this is in the automotive industry, where

Another of our strengths is our unique business model in which

the shift to EVs is underway. The lighter weight and lower friction

our sales, engineering, and R&D departments work together toof oil-less bearings contribute to the long driving range of EVs.

provide value to our customers. We operate a distinctive sales activity

In addition, structural devices (seismic isolators and vibration

called Technical Direct Sales (TDS), in which the sales and technology

control devices) that protect people, buildings and facilities fromdepartments go hand in hand and participate from the initial stages oflarge-scale earthquakes play an important role in providing safety

a customer’s product development. These departments cooperateand security in earthquake-prone Japan. Moreover, architecturalin addressing the customer’s product development challenges fromdevices such as our Window Operators not only protect humanan early stage, offer proposals that maximize the performance of ourlives from smoke inhalation due to fire but also provide safety,

products, develop and propose new materials, and work together

security and comfort to society by helping to ventilate buildings,

with the customer to create a product. We also have our own

which is a key countermeasure against infection.

technical service called EK, in which we evaluate products on behalfWith such contributions, I believe that all three of our Group’sbusinesses can help to solve the social issues identified in thethe customer’s actual item, we are able to offer proposals to address

United Nations' Sustainable Development Goals (SDGs). I believe

new issues.

that our businesses embody our corporate philosophy of serving

Our production department is constantly endeavoring tosociety through technology. We aim to achieve sustainableimprove efficiency based on the New Production System (NPS)

growth by sharing our purpose (raison d'etre) of continuing toderived from the Toyota Production System. We also conduct

provide products and technologies that help solve social issues

precise and meticulous quality control for each process.

throughout the Group.

This combination of our research and technology
development capabilities, our sales and engineering departments’05

OILES CORPORATION INTEGRATED REPORT 2023

OILES CORPORATION INTEGRATED REPORT 2023

06

Value Creation Processof our customers. By evaluating systems in a form more similar to

Identifying Major Issues (Materiality) for Sustainable GrowthPresident

products and materials with outstanding performance and to help

leader as a general manufacturer of oil-less bearings and serving

Message from the President

Three businesses that help to solve social issues

Our Philosophy/DNA & Our History

Aiming to sustainably increase corporate
value through businesses that help tosolve social issues

Message from the President
seamless response to customers, and our high quality productionof automotive products, our bearings business needs to develop products

an important management priority for companies. The Group considers

activities together form a three-pronged foundation that leads toand technologies that can respond to major transformations of the times, i.e.,

promoting ESG, as exemplified by the SDGs, to be a foundational

diversity is respected and employees can grow together with thesustainable value creation.

CASE vehicles and Mobility as a Service (MaaS). As a result of reorganizing

activity to promote corporate social responsibility (CSR) and at the same

company” as stated in our medium-term management policies,

into two divisions, we aim to respond more quickly and adeptly to issues intime to sustainably increase corporate value. Efforts to promote CSR

we are promoting initiatives to promote diversity and invest in

both divisions.

and address sustainability issues are positioned as cornerstones of thehuman capital (e.g., human resources development) based on theGroup’s activities.

conviction that human resources (human capital) are the source of

In line with this reorganization, we have also established a Production
Division to oversee domestic and overseas production divisions. Production

In terms of climate action, the Group set a new environmental

value creation and increased corporate value. Valuing the diversity

publicly announced indicators. The Medium-Term Management

departments are also facing a variety of challenges in the changing

target in FY2021: “reducing total CO2 emissions by 46% from theirof our employees, we have set diversity targets, such as the ratio ofPlan (FY2021-FY2023) seeks to increase consolidated net sales

environment, such as rising raw material prices, CO2 emission reductions, andFY2013 level by FY2030.” As a follow-up, we have now set a goal tofemale managers and the ratio of female new graduates, and we are

and consolidated operating profit by more than 20% in the final year

passing on production technology amidst a shrinking workforce. In light ofachieve “carbon neutrality by 2050” as a Group. In order to reduce

working to achieve a workplace that is both diverse and inclusive.

of the plan, FY2023, compared to FY2020, and the Plan seeks athese issues, the Production Division will further improve QCD (quality, cost,

CO2 emissions, we are promoting solar power generation at our own

Management is committed to promoting initiatives related to humanconsolidated ratio of operating profit to net sales of 10%.

and delivery) and promote the automation and digitalization of production

facilities (our Fujisawa Plant), the use of LEDs, and the systematic

capital such as human resources development, work-life balance, andprocesses. Under this new organizational structure, we will strive to implement

upgrading of air conditioning and machinery with more energy-efficient

health and productivity management, and we are striving to create an

priority measures specified by each division.

equipment. In addition, we have also been promoting saving energy byenvironment in which employees, who are the source of increased

procuring renewable electricity and gauging and displaying energy use incorporate value, can grow and to boost “employee engagement” soproduction processes since FY2022.

that the Company and employees are on the same page.

In the general industrial field, our bearings business posted
strong sales primarily for machine tools in FY2022. In the automotive
industry, sales were impacted by lockdowns in China and by

FY2023 is the final year of the current Medium-Term Management

production cuts of cars in Europe, North America, and domesticallyPlan. We are in an uncertain economic environment involving continuingin Japan accompanying the semiconductor shortage, but they wereglobal price hikes and concerns over an economic slowdown in China, but

In our core business of providing society with products andbuoyed by a recovery in demand from India and ASEAN countries

we will continue with our efforts in the final year of the Plan to firmly linktechnologies that reduce environmental impact, we are also bolstering

company by moving to the TSE’s Prime Market in April 2022 andand a weaker yen, increasing 9% from the previous fiscal year.

them to subsequent growth.

our efforts in the fields of EVs, renewable energy, and hydrogen energy,

we have been working to achieve diversity on the Board of Directors

in addition to the development of biomass bearings primarily by ourand increase the ratio of outside directors (ratio of outside directors:

Bearing Division. Our efforts in technological and product development

one-third), but we continue to consider ways to further improve ourare driven by the conviction that our technologies and products havegovernance system.

Raw materials costs and energy prices spiked, but profits still roseslightly as progress was made in passing on those costs to sales

Increasing Our Corporate Value

prices and curtailing fixed costs. Our structural devices business’

Message from the President

Consolidated net sales and consolidated operating profit are

In terms of governance, we have made a fresh start as a listed

Formulating a New Medium-Term Management Plan

grand potential to contribute to the global environment. Carbon neutrality

We celebrated our 70th anniversary in March 2022. All of ourcenters were strong, but large-scale projects decreased compared

A new Medium-Term Management Plan will begin in the next fiscal yearby 2050 is a very challenging and daunting goal. To provide products

officers and employees have worked tirelessly to achieve sustainable

to the previous year. Our architectural devices business’ sales and(FY2024). We are internally discussing the formulation of a new Medium-and technologies that help solve the world’s problems, we will “tirelessly

growth and we will continue to strive to become a 100-year company

profits increased from the previous fiscal year thanks to robust

Term Management Plan, and as a company listed in the Prime Market

pursue technologies” to achieve innovation for our Group to achieveor older. We look forward to the continued support of all oursales of Window Operators, which are a core product. As a result,of the Tokyo Stock Exchange, we would like to formulate it with morecarbon neutrality by 2050.

stakeholders.

consolidated net sales were 62.882 billion yen (+5.1% from theemphasis on “evaluation by the market” than before.
The most important thing to increasing corporate value is a “growthyen (-13.7% from the previous fiscal year). Consolidated net sales

strategy,” and we will formulate a “business strategy for sustainable growth”

Medium-Term Management Plan (FY2021-FY2023)

exceeded the Medium-Term Management Plan, but consolidated

for our three businesses - bearings, structural devices, and architectural

Medium-Term Management Policies

operating profit was 9% below the Plan.

devices - in the next Medium-Term Management Plan. We will also consider

We implemented a large-scale reorganization in April at the start

how to utilize the cash flow we receive pursuant to that strategy, i.e., how toof FY2023, the final year of our Medium-Term Management Plan.

balance the amount of investment required and shareholder returns over theWe have established two divisions within our Bearing Division, one

medium to long term. In addition, we would also like to consider setting targets

for General Bearing Division and the other for Automotive Bearing

for a return on capital, such as a return on equity (ROE), from the perspective

Division. Our bearings business needs to enhance its efforts in the fieldof allocating management resources with capital efficiency in mind.

of general industrial machinery, such as electronics for semiconductor
manufacturing equipment, and in the field of renewable energy sincethese fields will become new earnings pillars in the future. In the fieldIn light of the three considerations above, we hope to implement, via the• Realize growth targets for each business by promoting global management• Strengthen technological capabilities and improve productivity by effectively utilizing management resources through “Selection and Focus”• Create an environment and culture where employees' diversity is respected and employees can grow together with the company
Consolidated Operating Profit and Consolidated Ratio of
Operating Profit to Net Sales

Consolidated Net Sales■■ Consolidated Operating Profit(millions of yen)
80,000growth that will lead to a higher valuation in the stock market. In order to58,20059,85361,60062,88264,400(%)
12.0

67,5009,000

52,954

Enhancing Our Efforts to Address Sustainability
The world experienced record-breaking heat waves and geopolitical tensions
continued in 2023. The need to achieve the SDGs, including a global
environmental response, has been keenly felt. There is no longer a debate
as to whether medium- to long-term sustainability, including ESG factors, is

9.0

9.0
8.2
5.9

40,0006,000

20,000

3,000

9.0

8.0

sustainably increase corporate value, we will implement management with thebalance sheet in mind as well as levels of sales and profits.

10.0

9.8

5,861
4,750

6,450
5,550

6,100

6.0

5,056

3,115

0

FY
2020
(actual)FY
FY2021 2021(plan) (actual)

FY
FY2022 2022(plan) (actual)

FY
FY
2023
2023
(plan) (forecast)

0

3.0

FY
2020
(actual)FY
FY2021 2021(plan) (actual)

FY
FY2022 2022(plan) (actual)

FY
FY
2023
2023
(plan) (forecast)0* Plan: Values expected at the time of formulating the medium-term management plan
Forecast: Financial results forecast announced on May 11, 2023

07

OILES CORPORATION INTEGRATED REPORT 2023

OILES CORPORATION INTEGRATED REPORT 2023

08

Value Creation Process

60,000Consolidated Ratio of Operating Profit to Net Sales(millions of yen)
12,000

new Medium-Term Management Plan, a scenario of sustainable corporate

Identifying Major Issues (Materiality) for Sustainable Growthsales of products for urban redevelopment properties and logistics

previous fiscal year) and consolidated operating profit was 5.056 billion

Our Philosophy/DNA & Our History

Status of the Medium-Term Management Plan

“To create an environment and culture where employees’Toward Sustainable Value Creation

Our Business

ESG Initiatives

Data Book

Identifying Materiality for Sustainable Growth
The Oiles Group recognizes that sustainable corporate growth based on the further evolution of non-financial capital, such as

Major Issues (Materiality) for Sustainable Growth2023). Therefore, concurrently with the formulation of the plan we also identified the major issues (materiality) necessary for oursustainable growth.

Materiality

By strengthening our efforts to address materiality, we will contribute to addressing the SDGs and other social issues toachieve sustainable growth and increase corporate value.

S: Society

international integration frameworks, we identified more than 50 social issues that companies are expected to(See pages 13-24)

Identifying the social issues to be addressed
STEP 1

Contributing to theevolution of themobility society

Opportunity

Risk◦Strengthening
competitiveness andenhancing corporate
value as a marketcreating company◦Decreased
competitiveness as
a company due to a
weakened ability toinnovate◦Sustainableenhancement ofcorporate value byachieving sanpo-yoshi(good for three parties)
for customers, society,and the Group◦Promote the developmentof products and technologythat contribute to solutions
to climate change issues inareas such as EV readinessand renewable energy

Improving productquality

Preventing global
warming (addressing
climate change
issues)STEP 2

We assessed the level of importance of the issues identified above to society and stakeholders (vertical axis
assessment) while referring to the assessment parameters of ESG assessment organizations and survey items from

STEP 3

E: Environment

Analyzing the level of importance to the management of the Oiles Group (horizontal axis
assessment)

Environmental
initiatives(See pages 33-38)

We added the issues identified above to the Long-Term Vision and assessed their importance to the management of
the Oiles Group from the perspectives of both our new medium-term management plan and the implementation of

STEP 4

Sustainable useof environmental
resources◦Increasing corporate
value by providing
products andtechnologies that help
resolve climate change
issues◦Loss of business
opportunities if thecompany fails todevelop and enhance
products that address
climate change◦Gaining stakeholder
confidence throughrecognition of
the company’senvironmental
responsiveness◦Possibility oflosing credibility
with customers,
shareholders andothers if our CO2
emissions reductions
are inadequate◦Interruption to theGroup’s production
activities due tounprecedented natural
disasters (especiallywind and water
damage)each department's plans (horizontal axis assessment).

Identifying major issues (materiality)
Using the materiality matrix based on the above vertical and horizontal axis assessments, the Sustainability Promotion
growth of the Oiles Group.

S: Society
Human resource
measures(See pages 39-44)

Identifying Major Issues (Materiality) for Sustainable GrowthHigh

Major Issues

Respect for
Human Rights andAppropriate Labor
Practices◦Increased corporate
value achieved by
improving employee
engagement

Strengthening
governance in light ofthe market structuralreform of the Tokyo
Stock Exchange◦Gaining trust fromstakeholders byenhancing corporate
governance

G: GovernanceCorporate governance(See pages 27-32)

Solid compliancemanagement

Risk Management

Low

OILES CORPORATION INTEGRATED REPORT 2023

Importance to the management of theOiles Group◦Achieving stable
management throughappropriate risk
management andthe establishment ofa robust compliancesystem◦Impact on continuity of
employment due to thedecline in the working
age population andincreased competition
in recruitment◦Damage to corporate
value due to penalties
and criticism of
inappropriate labor
practices◦Promote the developmentof products and technologythat contribute to solutions
to climate change issues inareas such as EV readinessand renewable energy◦Promote initiatives todiversify our workforce— Improve our ratio of
female employees, notonly by setting targets
for female managers, butalso by setting targets forthe hiring ratios of female
new graduates◦Establish an environmentand culture for employees
to grow together withthe company and raise
employee engagement◦Damage to corporate◦Enhance the effectivenessvalue due to inadequateof our Board of Directors— Increase the diversity ofcorporate governancethe Board of Directors◦Occurrence of scandals
and raise the ratio ofdue to inadequate
independent outsidecompliancedirectors (ratio ofindependent outside
directors: one third)◦Improve how the Boardof Directors and othermanagement meetings
operate based onquestionnaires assessing
the effectiveness of theBoard of Directors

High

OILES CORPORATION INTEGRATED REPORT 2023

10

Value Creation Process

Importance to society
and stakeholders(Materiality) for
Sustainable Growth

Low

09

Diversity and inclusion◦Gaining growth
opportunities as acompany by securing
talented and diverse
human resources whoshare the company’s
visionHuman Resource
Development

Council, composed of management members, identified the major issues (materiality) necessary for the sustainable◦Promoting initiatives toachieve environmental
targets for carbon neutrality
by 2050— Implementing full-scalesolar power generation
at the Fujisawa Plant andother initiatives

Identifying Major Issues (Materiality) for Sustainable Growth

suppliers.

◦Continue prioritizing theallocation of management
resources (R&D expenses,
personnel) to research andtechnology development◦Significantly expand
floorspace for technology
and R&D by restructuring
the Fujisawa Plant(construct new plantbuilding)

address to achieve sustainable growth.

Analyzing the importance to society and stakeholders (vertical axis assessment)

Major Initiatives

Message from the President

Based on sources that include international standards such as ISO 26000, major guidelines, external ratings,

Developing andproviding advanced
products andtechnologies that
contribute to theresolution of social
issues

Reviewing Materiality from the Perspective of Sustainable Growth

Developing advanced
products andtechnologies to satisfy
and surpass customer
needs

Relevant SDGs

Our Philosophy/DNA & Our History

human, intellectual, manufacturing and natural capital, is important for achieving our medium-term management plan (fiscal 2021-

Toward Sustainable Value Creation

Our Business

ESG Initiatives

Data Book

Value Creation Process
Our Philosophy/DNA & Our History

Management Philosophy“To become a world leader as a general manufacturer of oil-less bearings and serve society through technology”

Long-Term Vision
Relevant
SDGs

In order to fulfill our management philosophy, we intend to be:
・A company that contributes to the preservation of the global environment and delivers safety, security and comfort through the products andtechnologies required by the world
・A market-creating company that pursues tribology technology (friction, wear, lubrication) and damping technology (vibration control) to create oneof-a-kind products
・A company that fulfills its corporate social responsibility (CSR) and helps realize a sustainable society through business with high social contribution

Social Issues

INPUT (Strengths)*

OUTPUT*OUTCOME

Contributed to the Creation ofa Sustainable Society(Japan, Europe, North and South America, China, Asia)

Increasing risk of climatechangeManufacturing
CapitalCapital investment: 2.7 billion yen
Number of consolidated subsidiaries: 16
Number of domestic production bases: 13
Number of overseas production bases: 6

Developing OriginalMaterials andApplications
by the R&D and Engineering
Departments

Stable Financial Base

Declining birthrate, aging
population and decreasing
workforce

Transition to a newmobility society

Consolidated total assets: 87.0 billion yen
Consolidated net assets: 69.6 billion yen
Capital asset ratio: 79.3%

Global Human Resources
Human
Resources
CapitalIntellectual
CapitalNaturalCapital(Japan, Europe, North and South America,
China, Asia)

Dealing with
Customers

Group employees: 2,512
Employees of domestic subsidiaries: 594
Employees of overseas subsidiaries: 838

through collaboration among
the Sales, Engineering andR&D Departments

Pursuit of two coretechnologies
Tribology

Damping

Operating Results

Human Resource
Development andRespect for Diversity of
Employees

High R&D and Technological
Capabilities Based on Two CoreTechnologies
Number of domestic and overseas industrial
property rights: 2,380
R&D expenses: 2.5 billion yen
R&D and Engineering Departments: 190 employees

Environmentally Friendly Use ofEnergy and Water
Group total energy input: 655,378 GJ
Group water consumption: 200 thousand m3

Consolidated net sales: 62.9 billion yen
Consolidated operating profit:
5.1 billion yen
Operating cash flow: 8.0 billion yen

Ratio of female employees in the Group:
24.6 %

that promotes quality
improvement, cost reduction
and work safety, as well as
automation using IoT

Financial
Results

Human
Resources

A better environment inwhich employees can havea sense of fulfillment intheir work

Promoting
Sustainability
to create a sustainable society

Ris
k Ma
e
lianc
nagemepmoCnt andImproved automobile
functions (higher
energy efficiency, more
comfortable space)

A safe, secure andcomfortable society
Promoting Diversity

Production System

Manufacturing

Reduced environmental
impact (decreased
greenhouse gases)

Environment
CO2 emissions: 29,243 t-CO2

Value Creation Process

Increasing natural
disasters and rising riskof infectious diseases

Financial
Capitalof product quality

Products

・Oil-less bearings that reduce theenvironmental impact
・Seismic isolators and vibration control
devices that reduce damage frommajor earthquakes
・Architectural devices that provide not
only safety from fire but also healthy air
conditioning

Nature*Data as of March 31, 2023 or FY2022

Sustainable Investment in Management Resources
11

OILES CORPORATION INTEGRATED REPORT 2023

Identifying Major Issues (Materiality) for Sustainable Growth

Need for continuous
technological innovation

Improving the
Reliability

Message from the President

Global Business Development

OILES CORPORATION INTEGRATED REPORT 2023

12

Toward Sustainable Value Creation

ESG Initiatives

Our Business

Data Book

Oiles Business Activities
Oiles Group products, based on the two core technologies of tribology and damping, are vital components for various

Offices

We continue to strive and hone our techniques so that we remain instrumental in improving the quality of life and well-being

Residences
Our external blinds, seismic isolatorsand vibration control devices are used inresidences.

of people and society.

Our bearings are used in officeautomation equipment suchas printers and multifunctional
copiers.

Oiles Business Activities

mechanisms that support the safety and security of society and people’s daily lives, including many buildings and other structures.

Buildings, Condominiums, and Logistics Centers

Our seismic isolators are usedin lighthouses across Japanto protect their lenses fromearthquakes.

Ferris Wheels

Buildings

Our bearings are used in molding
machinery, machine tools, semiconductorrelated equipment and other kinds offactory equipment and machinery, while ourseismic isolators, vibration control devices
and Window Operator products are usedin buildings. Our seismic isolators andvibration control devices are also used in
production lines.

Our seismic isolation rubber
is used in large-scale Ferris
wheels.

Our natural air ventilator
is used in offices toprovide comfort.

Towers
Our seismic isolation rubber
is used to providel seismic
reinforcement.

Structural Devices

Our bearings are usedin rudders, anchoring
gears, outboard
motors, and hatch
covers.

Our bearings are used in the mechanicalsystems of these structures.

Shrines and Temples

Bridges

Ships

Dams, Water Turbines and Water Gates

Our seismic isolators and vibration control devices
are used to ensure the safety and security ofresidents and office workers.

Bearings

Lighthouses

Factories

Our seismic isolators andvibration control devices
are used to provide seismic
reinforcement.

Our seismic isolators areused in seismic isolation
bridges, while our dampers
are used in Vibrationcontrolled bridges.

Construction Equipment
Garbage Trucks

Supermarkets
Our seismic isolation materials
are used to prevent products
from falling off shelves during anearthquake.

Our bearings areused in coupling
gears, pantographs,
crossing bars
and turnouts. Our
Window Operators
are also used at manystations.

Art Museums

Architectural Devices

Our bearings are usedin hopper linkages andother parts.

Our bearings are used in various
parts of construction and industrial
equipment.

Railways

Our seismic isolation rubberand sliding seismic isolation
devices are used in civic
buildings and monuments.

Bicycles and Motorcycles

Intellectual Property Initiatives

Many Oiles products are usedin brakes, clutches, gearboxes,
suspensions, etc.

Automobiles
Many Oiles products are used in automobile
bodies and smaller components.

13

OILES CORPORATION INTEGRATED REPORT 2023

OILES CORPORATION INTEGRATED REPORT 2023

14

Toward Sustainable Value Creation

ESG Initiatives

Our Business

Data Book

Bearings
General Industrial Field (General Bearing Division)is increasing in various fields such as precision instruments andmanufacturing and daily life, from infrastructure and plantelectronics.

facilities to office equipment, and production equipment,

Oiles Bearings for Reduced Environmental Impact

In addition, Oiles bearings help to reduce environmental

construction machinery, dams, water turbines, water gates, andimpact across broad industrial areas. An example of anwind power generators. We offer an extensive product lineup forenvironmentally sound product we developed is the Biomassa range of specific applications.

Plastic Bearing. Made from sugar cane and oil castor beans,

Our products come in various shapes, materials andfillers were added to improve sliding performance. Combining

and roller bearings. Oiles bearings are the plain type andsizes, from components in precision equipment such as

excellent performance and high biomass content, these

motorcycles, as well as transportation, machine equipment,

can be used with either no lubrication at all or a reduced

semiconductor manufacturing equipment to large products

bearings reduce CO2 emissions compared to conventional,

power generation and office equipment, are capable offrequency and amount of lubrication. Thanks to our uniqueseveral meters in size for use in dams and water gates. For

petroleum-based products.

rotational or reciprocating motion, and thus have moving

technology and expertise, our bearings exhibit superior

example, OABs (Oiles air bearings) produce a membrane of

In the field of renewable energy, we offer conventionalparts that generate friction. The economic loss caused bydurability and performance stability even under harsh

air between the shaft and bearing to achieve non-contact

bearings for hydroelectric and wind power generation facilities,

friction, such as wear and tear of parts and loss of operation,

environments where roller bearings and ordinary plain

movement, enabling super high-accuracy positioning control

and we are also working to acquire projects in the field of next-

is estimated to be over 15 trillion yen per year in Japan

bearings cannot maintain performance.

and ultrafast machining by achieving a coefficient of friction ofgeneration energy supply, both in Japan and overseas.

In addition, Oiles bearings are environmentally soundtechnologies) technologies and provide unique bearing

because they use less lubricating oil and are smaller as well

products with oil-less (self-lubricating) characteristics to help

as lighter than roller bearings of a comparable size.

develop the economy and society by reducing the various
losses associated with friction and wear.

virtually zero (air resistance only). Thus, demand for such OABs

Biomass Plastic Bearing (#81-B1)

Oiles Air Bearings (OABs)

As the world strives to achieve carbon neutrality
Structural Devices

by 2050, we are helping to achieve that goal with Oiles

Bearings are broadly classified into plain bearings

bearings, which have less of an environmental impact.

* According to the JOST Report, Japan Edition

Plain Bearing

Rolling element(balls, rollers)

Shaft(rotatingbody)

Surface contact

Point contact

Oiles Bearing

General Plain
Bearing

Roller Bearing

Lubrication

Can be usedwithout lubrication

Requireslubrication

Requireslubrication

Size

Thin-walled andcompact

Thin-walled andcompact

Thick-walled andlarge

WeightLight

NormalHeavy

ImpactResistance

Wear Coefficient

15

OILES CORPORATION INTEGRATED REPORT 2023

Features of OABs
High PerformanceSuperior

Slightly superior

Inferior

Can be used athigh temperatures

Slightly superior(generally up to
150°C)

Inferior (cannot
be used at hightemperatures)

Slightly low

Extremely low

Low

Customization

SafetyOriginally developed porous technology allows optimum compensation. Demonstrates high load performance and highbearing rigidity.
- The flow rate may be adjusted easily by material design. High-rigidity and other such specifications can beaccommodated according to the usage application.
- Can be made in various shapes.
Oil-less bearings are less likely to seize even under solid contact conditions, feature superior safety, and are easy to workwith.

Economical

OABs can reduce the flow rate remarkably in comparison with inherent-orifice or orifice compensation, reducing air source
workload and running costs.

Environment

OABs can be used in cleanrooms.

*Inherent-orifice and orifice compensation are structures to form an air membranes by compensating air flow with holes or grooves on the surface of the
bearing.

OILES CORPORATION INTEGRATED REPORT 2023

16

Intellectual Property Initiatives

Heat ResistanceArchitectural Devices

Shaft(rotatingbody)

Features Comparison

Rolling Bearing

Compact & lightweight

Bearings

All types of machinery, including automobiles andalone.* We develop tribology (friction, wear, and lubrication

Oiles Business Activities

Oiles bearings are used in a variety of fields related toToward Sustainable Value Creation

ESG Initiatives

Our Business

Data Book

Bearings
Oiles Bearings for a Variety of Automotive Components
Steering

Seat Damper
Oiles Business Activities

Automotive Industry (Automotive Bearing Division)
Oiles bearings are most widely used in the automotive industry.

automobile as a living space rather than a means of transportation.

Our products are used across a wide range of applications

The demand for controlling sound and vibration is increasing asthat comprise a vehicle, including the suspension, steering,people place more importance on the quietness and comfort oftransmission, exhaust pipes, and the interior. Our market shareriding inside a vehicle. In addition, new needs have arisen, such as

is approximately 50% worldwide and more than 70% for somerequirements for a lighter weight to increase the driving distance,

products by Japanese automobile manufacturers.

heat resistance for bearings to allow use in EVs, and high-speed

The automotive industry is undergoing a massive
2transformation, as represented by CASE* and MaaS* , and werotation. We are developing products to meet those needs throughthe use of our core technologies and our knowledge.
We established the New Technology Development Office

help create new value. For example, accelerating the widespread

under the automotive engineering department in October 2020 toadoption of electric vehicles (EVs) will require reducing their weightdevelop products that support the CASE and MaaS and promotes

to resolve the challenges related to their driving range. Oiles

advanced development from a long-term perspective, looking 10

bearings, both compact and lightweight, can reduce the weight

to 20 years into the future. We developed plastic bearings for EVsof some products by more than 50% compared to roller bearings.

that improve the functionality and lifespan of electric water pumps,

We therefore believe that we can significantly contribute to thewhich are needed to cool batteries, motors, inverters, etc., and wepopularization of EVs by making them lighter.

began suggesting them to various manufacturers.

of automated driving, there is a growing trend to view the*1 CASE: Connected, Autonomous/Automated, Shared, and Electric.
*2 MaaS: Mobility as a Service that integrates various means of transportation and makes
them more efficient and convenient.

Suspension

Exhaust Pipe Spherical Bearing

Structural Devices

are responding to this transformation by providing products that

And with the widespread use of EVs and practical application

Transmission

Bearings

1

Trunk Hinge Bushing

Side Door Hinge Bushing

Faster Business Operations as a Result of Reorganization into Two Divisions
In the field of general industrial machinery, our bearings business posted

For further growth per our Medium-Term Management Plan andbeyond, in the field of general industrial machinery we will strive to enhance

manufacturing recovered. In the field of automotive products, automobile

sales of OABs for precision machinery such as semiconductor manufacturing

production cutbacks in Europe, the US, and Japan due to the lockdowns

equipment and other ultra-high-precision, high-speed processing equipment

in China and the semiconductor shortage in the first half of the year had an

and to provide products and technologies in fields that will help to create

effect, but a recovery in demand from India and ASEAN countries and aa decarbonized society, such as renewable energy and hydrogen energy.

weaker yen resulted in higher sales than the previous fiscal year, and sales for

We are also working to create a market for biomass-based plastic bearings,

the Division as a whole increased 9% from the previous fiscal year. High raw

with standard products to be launched in 2023. In the field of automotive

material costs and energy prices put pressure on profits, but operating profit

products, we will continue to expand the use of our existing core products

for the Division as a whole remained slightly above the previous fiscal year’s

by emerging EV manufacturers around the world, while at the same timedeveloping products and exploring the growing market for products like

Consolidated operating profit from our bearings business in FY2022 waselectric water pumps as a result of the shift to EVs.

approximately 90% of the level in our Medium-Term Management Plan.
In April 2023, we reorganized into two divisions: the General Bearing

There have been changes in external conditions that were notanticipated when the Medium-Term Management Plan was formulated, such

Division, which is responsible for general industrial machinery, and theas the spread of COVID-19, the crisis in Ukraine, and the global rise in prices,

Automotive Bearing Division, which is responsible for automotive products.

but we aim to expand new businesses and improve our profit structure to

As a result of this reorganization, we aim to respond more quickly

achieve the consolidated ratio of operating profit to net sales of approximately

and adeptly to major issues in each area of business.

10% as set forth in the Plan.

Bearings Business Medium-Term Management Plan (FY2021-FY2023)
Consolidated Net Sales(millions of yen)
50,00038,90040,000Consolidated Operating Profit and Consolidated Ratio of Operating Profit to Net Sales■ Automotive Industry ■ General Industrial Field

40,26135,155
14,33830,00041,85043,881

44,25047,00014,447

15,000

7.4

4,000

6.7
2,975

3,000

11,4832,000
23,67225,922

Consolidated Ratio of Operating Profit to Net Sales
(%)
10.0
9.6
4,250

8.0

20,00029,43432,00010,0000■■ Consolidated Operating Profit(millions of yen)
5,000

3,350

6.9
3,008

2,600

FY
FY
2021 2021(plan) (actual)

FY
FY2022 2022(plan) (actual)

FY
FY
2023
2023
(plan) (forecast)

0

4,000
GeneralBearing
Division
1,150

FY
2020
(actual)

8.0

6.0

4.0

3.1

Automotive
Bearing
Division 2.0
2,850

1,081

1,000

FY
2020
(actual)

8.5

FY
FY
2023
2023
(plan) (forecast)

0

OILES CORPORATION INTEGRATED REPORT 2023

18

FY
FY
2021 2021(plan) (actual)

FY
FY2022 2022(plan) (actual)* Plan: Values expected at the time of formulating the Medium-Term Management Plan
Forecast: Financial results forecast announced on May 11, 2023

17

OILES CORPORATION INTEGRATED REPORT 2023

Intellectual Property Initiatives

level due to the transfer of costs to sales prices and reductions in fixed costs.

Architectural Devices

strong sales primarily for machine tools in FY2022 as production in domestic

Toward Sustainable Value Creation

Structural
Devices

ESG Initiatives

Our Business

Data Book

Protecting the Safety of Structures and Buildings
intensively developed during Japan’s period of rapid economic

mitigation, Oiles' seismic isolators and vibration control devices are

growth from the 1950s to 1970s is aging more or less at the

being used in a wide variety of structures and buildings, including

same time. From the standpoint of national resilience as a major

public facilities that serve as key facilities in the event of a disaster,

component of the country’s risk management, we will meticulously

such as government offices, fire stations, and hospitals. Our

respond to the demand for repairs and renovations to improve thetechnology is also being used in high-rise buildings, historic buildings,

seismic resistance of social infrastructure such as bridges.

Oiles Business Activities

A Pioneer of Seismic Isolators and Vibration Control Devices

With the recently growing awareness of disaster prevention andand social infrastructure such as expressways and elevated bridges.
Our bearing plates had been used to support bridges since

our responsibility to protect people’s lives and the safety

As part of their business continuity plans, a growing number ofTopicsthe 1960s in a variety of settings such as highways andof cities from natural disasters such as earthquakes andcompanies are adopting seismic isolators to protect their factory

50 large bearings are used in the first line

Shinkansen bullet train lines, but it was the collapse of astrong winds.

equipment and the large warehouses that are being built in increasing

The Sustainable Development Goals (SDGs)

inspired us to begin developing an anti-earthquake device.

advocated by the United Nations include the phrase

Having established damping (vibration control) technology,“sustainable cities and communities” with the intention

we became the first company in Japan to adopt it for Leadof ensuring that cities and other residential areas

Rubber Bearings (LRBs), seismic isolators that integrate

are inclusive, safe, resilient, and sustainable. We arevibration isolation and energy absorption. We subsequently

contributing to solving social issues by mastering damping

established and developed the associated production

technology and providing seismic isolators and vibration

techniques. As the leading pioneers in the field of seismic

control devices to society in order to create safe andisolation and vibration damping in Japan, we are fulfilling

resilient infrastructure.

Seismic Resistance
Buildings that absorb seismic motion withcolumns and beams

The structural frame bears all of
the seismic force(Poses a risk during repeated large
earthquakes)

Vibration control
Buildings that control the force of shaking

Buildings that shake gentlySeparating the buildings fromtheir foundations

Adding vibration control devices tobuildings with seismic resistance

Seismic isolators bear nearly
all of the seismic force

Vibration control devices bearsome of the seismic force(Increases building/room safety)(Vibration control alleviates swaying morethan seismic resistance)

Seismic resistance type

Seismic isolation typeVibration control type

Adopting Additional Measures to Aim for a Continuously High Ratio of Operating Profit to Net Sales
Financial results for our structural devices business in FY2022

Our products for buildings continue to perform well as part ofincluding products for buildings in urban redevelopment projects

urban redevelopment projects and logistics center projects. For further

and logistics centers. Large projects overseas were completed, but

growth per our Medium-Term Management Plan and beyond, weboth sales of and profits on products for bridges were lower thanwill strive to capture new demand for our products in the data centerin the previous fiscal year, partly in response to the large and highlyand semiconductor manufacturing facility-related markets, where

profitable projects in the previous fiscal year. As a result, both salesbuilding integrity is particularly demanded, and in overseas markets,and operating profit for the business overall were lower than in theparticularly Taiwan. We will enhance our efforts related to products forprevious fiscal year and in the Medium-Term Management Plan, butbuildings to bid for projects involving the seismic isolation of small andthe ratio of operating profit to net sales remained high at over 13%.

medium-sized bridges, in parallel with large-scale projects, and we will

The order backlog for our structural devices business at the end ofparticularly focus on renovations (seismic reinforcement) and four-lane

March 2023 was 12.6 billion yen, which was more than 40% higher

expressways to increase national resilience.

Structural Devices Business Medium-Term Management Plan (FY2021-FY2023)
Consolidated Net Sales

Consolidated Operating Profit and Consolidated Ratio of
Operating Profit to Net Sales(millions of yen)
15,000■■ Consolidated Operating Profit(millions of yen)
4,000
11,700 12,307

Seismic motion

Seismic motion

Seismic
isolator

11,37520.5

11,900 11,900

20.0

3,200

10,519

15.9

15.0

2,519

2,400

9,000

14.7
1,675

6,000

1,600

3,000

800

0

Seismic motion

11,900Consolidated Ratio of Operating Profit to Net Sales
(%)
25.0

FY
2020
(actual)FY
FY2021 2021(plan) (actual)

FY
FY2022 2022(plan) (actual)

FY
FY
2023
2023
(plan) (forecast)

0

1,750

13.3

1,750
1,512

13.9

13.4

1,650

1,600

15.0

10.0

5.0

FY
2020
(actual)FY
FY2021 2021(plan) (actual)

FY
FY2022 2022(plan) (actual)

FY
FY
2023
2023
(plan) (forecast)0* Plan: Values expected at the time of formulating the Medium-Term Management Plan
Forecast: Financial results forecast announced on May 11, 2023

19

OILES CORPORATION INTEGRATED REPORT 2023

OILES CORPORATION INTEGRATED REPORT 2023

20

Intellectual Property Initiatives

Seismic
isolation layer

than at the end of the previous fiscal year.

remained strong, continuing from the previous fiscal year, in areas

12,000Vibration
control
device(Mar. 2023)

Another major issue is that the social infrastructure that was

Architectural Devices

 esilient, even if they receiveRsome damage

Seismic Isolation

508km
Mumbaispeed rail project, India High Speed Rail.

Structural Devices

Differences Between Seismic Resistance, Seismic Isolation and Vibration Control

numbers to serve the rapid expansion of e-commerce.

Ahmedabad(Mumbai to Ahmedabad) of India’s first high-

Bearings

bridge girder during the Niigata Earthquake in 1964 that

New Delhi

Toward Sustainable Value Creation

Architectural
Devices

ESG Initiatives

Our Business

Data Book

Residential Amenity System

Oiles Business Activities• External blinds, Briil

Drive unit to open/
close roof skylightwindows
External blinds
Handles for jalousies andawnings

Supporting the Safety of LifeIn Japan in the early 1970s, a series of fires in big buildings

technology to smoke exhaust equipment to develop

leading to smoke exhaust systems becoming a requirement.

the Window Operator, a device that opens and closes

However, the operability of these systems posed a problem

windows to eliminate smoke and ventilate air. During aduring emergencies, as smoke exhaust windows let harmful

fire, the smoke exhaust window will quickly expel toxic

smoke out when there is a fire, but they are usually installedsmoke, thereby contributing to the safety and security ofin high, out-of-reach places.

the building.

Creating Comfortable, Safe Living Spaces that Save Energy
brings natural air inside, improving cooling efficiency and making

control natural energy such as air flow, which is difficult for air

living spaces more comfortable.
An external blind for homes, Briil combines the functions

to reduce environmental impact, as its products save energyof a shutter and blind, controls natural light, and cuts off about

and create comfortable living spaces in all sorts of structures,

80% of solar radiation heat from entering the window (heatfrom high-rise buildings to residential homes.

insulation). It also reduces the air-conditioning load by curbing

Ecoshade, an external electric blind for buildings, blocks

the rise in surface temperature of window glass by about 10°C
compared to interior blinds and is thus a means of energy

helps to keep the temperature inside from rising, thus savingsaving in homes and low-rise buildings. In light of this, we haveenergy. The Ecorator, otherwise known as the Eco-Supli, is apromoted Briil and its features through online advertising as partnatural air ventilator for buildings without openable windows. Itof our B-to-C strategy.

beyond, we will strive to maintain the market share for our core product,

exceeded those of the previous fiscal year due to strong sales of its core

Window Operator, in the new construction market. We will also strive to

product, Window Operator, for new construction. However, sales of andsecure large-scale renovation projects and further strengthen relationships

profits on residential products were slightly lower than the previous fiscal

with building management companies and general contractors' facility

year due to the impact of a decline in the number of new housing starts.

management divisions in the market for upgrading of previously installed

Thus, both net sales and operating profit for the business as a whole

products. We are also developing new products to reduce construction work

exceeded financial results from the previous fiscal year and the Medium-Termand provide a high level of durability. We aim to expand sales of BRIIL externalManagement Plan. Operating profit in particular increased 42.2% from theblinds for residential customers by increasing awareness of the productprevious fiscal year and 31.6% from the Medium-Term Management Plan.

through advertising, promoting use of the product in environmentally friendly

The importance of ventilation in living spaces has been widely recognized ashomes, and tapping into demand for home renovations.

a result of lifestyle changes caused by the spread of COVID-19. Oiles ECO

Oiles ECO will continue to aim for stable and sustainable growth byfacilitates the health of residents via a safe air-conditioned environment, i.e.,

providing “health and comfort” and “reduced energy saving” to meet ourit provides customers with “healthy air conditioning.” Oiles ECO’s role iscustomers’ need for ventilation, which was recognized amidst the risk of the

becoming increasingly important in terms of solving social issues.

pandemic.
Architectural Devices

sunlight on the outside of a window like a bamboo blind. This

Oiles ECO’s sales of and profits on products for buildings in FY2022

For further growth per our Medium-Term Management Plan andArchitectural Devices Business Medium-Term Management Plan (FY2021-FY2023)
Building Ecology System

Consolidated Operating Profit and Consolidated Ratio of Operating
Profit to Net Sales

Consolidated Net Sales• Ecorator• Top LightOILES CORPORATION INTEGRATED REPORT 2023

5,792

6,150

6,132

6,350

5.8

5.8

7.9

5.9

6.0

4,000

400

2,000

200

FY
FY
2021 2021(plan) (actual)

7.2

460

460

6.0

• Ecoshade

FY
2020(actual)

7.2

600
487

0

21

6,050

6,350

Consolidated Ratio of Operating Profit to Net Sales
(%)
8.0

FY
FY
2022 2022(plan) (actual)

FY
FY
2023
2023
(plan) (forecast)* Plan: Values expected at the time of formulating the Medium-Term Management Plan
Forecast: Financial results forecast announced on May 11, 2023

0

352

350

342

370

4.0

2.0

FY
2020
(actual)FY
FY2021 2021(plan) (actual)

FY
FY2022 2022(plan) (actual)

FY
FY
2023
2023
(plan) (forecast)

OILES CORPORATION INTEGRATED REPORT 2023

022Intellectual Property Initiatives

6,000• Window opening/closing device for
air ventilation and smoke exhaust,Window Operator■■ Consolidated Operating Profit(millions of yen)800

(millions of yen)
8,000
6,040

Structural Devices

Our subsidiary, Oiles ECO develops and provides products that

Aiming to Achieve the Medium-Term Management Plan Amidst Growing Awareness of the Importance of Ventilation

Bearings

resulted in many lives being lost due to smoke inhalation,

conditioning systems to do on their own. It is therefore helping

Drive unit for flip-up gate

To address this, the Oiles Group applied its sliding

Toward Sustainable Value Creation

Our Business

ESG Initiatives

Data Book

Intellectual Property Initiatives
quickly and effectively prepare proposals in response tosustainable growth is to develop and provide advanced products and technologies that contribute to resolving social issues. Our

customer requests. The databases accumulate data on a daily

initiatives for intellectual property are closely related to our relentless pursuit of two core technologies: tribology (friction, wear, andbasis over the course of conducting business activities andlubrication) and damping.

are used for creating value through such activities as closely
managing the new material development as trade secrets andkey intellectual property.

Focused and Continuous Allocation ofManagement Resources to R&D Activities

Respect for the Rights of Others

Moreover, in product fields mainly related to mechanicalIn order to ensure compliance with laws and regulations

design, such as damping (vibration control) technology, we

Total Number of Industrial Property Rights Acquired and Numberof Rights Held
(For Oiles and Oiles ECO, as of March 31, 2023)

Patents

Utility
ModelsDesigns

Trademarks

Rights acquired

3,506

612

64

836

Japan

1,908

607

64

526

Overseas

1,598

5

0

310

Rights held

1,544

4

34

798

engage in multifaceted activities to protect our rights through

Japan

664

3

34

500

consistently reviews the relationship between its products anda mixed IP strategy in which we aggressively apply for design

Overseas

880

1

0

298

management resources to R&D activities as the source oftechnologies on the one hand and the industrial property rights

patents.

creating intellectual property. R&D expenses for the fiscal yearof others on the other hand while striving to avoid infringing on

ending in March 2023 were 2.527 billion yen on a consolidated

the rights of anyone.

Bearings

that prohibit the violation of the rights of others, the GroupWe have been focusing on and continually allocating our

In addition, we have developed a patent map for eachproduct, and it is used to reinforce our patent applications. To
achieve sustainable growth, we will promote value creationbasis, accounting for 4% of consolidated net sales. The ratio
averaged approximately 4.3% over the past five fiscal years,

Exercise of Our Own Rights

activities for expanding into a comprehensive IP landscape*which is high even compared to other companies in the same

In the event that others infringe on our Group’s rights, we will

initiative.

industry. In terms of human resources, we had 190 employees

appropriately protect and exercise our own rights, such as

in R&D and engineering departments in Japan and overseas asrequesting injunctions against infringement or securing profits

of the end of March 2023.

based on licensing.

* Method for developing a management strategy based on an integrated analysis of market
trends and the intellectual properties of both the company and other companies

Bearings

Structural
Devices

General Industrial Field
Developing materials with the goal of improving sliding
performance and creating value-added products such as
materials compliant with environmental regulations
Automotive Field
Developing new CASE-compatible products and shortening development lead times through better prediction
technologies enabled by CAE analysis

Durability-minded product development and developing
Architectural
products with enhanced BCP functions for high-rise
Devicesbuildings

We have actively applied for and obtained patents and otherindustrial property rights for inventions created through our R&D
activities. On the other hand, we have not applied for patents
on expertise or other information related to manufacturing

750
500
250

methods that are difficult to reverse-engineer, such as special
manufacturing techniques that enable products to operate with

0

FY
2018

FY
2019

FY
2020

FY
2021

FY
2022

FY
2021

FY
2022

higher performance.
Instead, we have strictly managed this category ofintellectual property as confidential information to secure ourcompetitive advantage. Tribology related to friction, wear andIntellectual Property Policy(No. of Patents)
1,000

Architectural Devices

Conducting R&D to deliver high durability and providing
products that are effective against long-wave, long-period
seismic motions

Intellectual Property Initiatives

Structural Devices

Number of Patents Held in Japan
Main R&D Themes of Each Division

Oiles Business Activities

The Oiles Group’s management philosophy is to “serve society through technology,” and one of our major issues (materiality) for

lubrication can be defined as a compilation of knowledge on

Number of Patents Held Overseas(No. of Patents)
1,000
750

material technology - that is, how to most effectively draw out
the qualities of materials used in a product in a given operating

management resource and established the following basic

environment. At our company, we organize useful data frompolicy to achieve sustainable growth.

experimental results of hundreds or thousands of combinationsof various materials and additives in developing a single

Acquisition of Necessary Rights

material, and these data are also treated as a valuable baseline

The Group actively acquires the necessary industrial property rights

for developing the next material. For existing products, we havefor protecting its products and technologies from the perspective of

set up comprehensive databases of bench test results andintellectual property management. While it is important to establish

actual equipment evaluation results under various conditions.

an extensive global portfolio of patents, we give due consideration

The results have been gathered through our business activities

to cost effectiveness and efficiency in acquiring rights.

over the past several decades. With these databases, we

23

OILES CORPORATION INTEGRATED REPORT 2023

500
250

FY
2018

FY
2019

FY
2020

Intellectual Property Initiatives

The Oiles Group has positioned intellectual property as a vital

OILES CORPORATION INTEGRATED REPORT 2023

24

Toward Sustainable Value Creation

Our Business

Data Book

ESG Initiatives

Corporate Management and Sustainability (CSR)
Stakeholder Engagement
Issues, 3. Environmental Protection, 4. Respect for Human

In the Oiles Group, we believe that sound stakeholder relationships will enable us to increase corporate value over the medium- to long-adopted at the UN SDG Summit is growing. There is a

Rights and Appropriate Labor Practices, 5. Fair and Equitableterm and achieve sustainable growth. We will strive to effectively cooperate with our stakeholders and meet their expectations.

growing awareness among companies that medium- to long-

Trade, and 6. Coexistence with Local Communities to fulfill ourterm sustainability (including ESG aspects) is an important

responsibilities as a company toward sustainability issues.

management priority for enhancing corporate value over the
medium to long term. Under a management philosophy that
includes the statement “To become a world leader as a general

Sustainable Society

manufacturer of oil-less bearings and serve society throughtechnology,” the Oiles Group believes that the promotion of

Fair and
Equitable Trade

Environmental
Protectionof society and establishes a foundation for creating andResponding toConsumer Issues

developing new corporate value. We have therefore positioned

Enhanced
Governance

Main Initiatives◦ Daily sales activities◦ Business contact desk
◦ Technology information
magazines and merchandise
catalogues◦ Websites◦ Customer satisfaction◦ P rovision of safe and quality
products and services◦ Continuous BCP enhancement

Employees
The Oiles Corporation Group has 2,512
employees, including 838 who work outside ofJapan (as of March 31, 2023)

sustainability initiatives and the cornerstone of our corporate
See page 1

the Long-Term Vision and Oiles Group Corporate Conduct◦ Consideration for human rights◦ Promoting diversity◦ Promoting work-life balance◦ Developing human resources◦ Ensuring occupational safety◦ Enhancing the workplace environment

To become a world leader as a general manufacturer of oil-lessbearings and serve society through technology

Charter, we will implement six sustainability (CSR) material
topics: 1. Enhanced Governance, 2. Responding to Consumer

The Oiles Corporation Group has 16 corporations inJapan and overseas, and each location establishes
ties with the local communities in which they operate(as of March 31, 2023)

Sustainability (CSR) Structure
Promoting CSR (ESG) to realize sustainability depends upon both
culture in which each and every employee views sustainability as

Reporta key value and tries to realize it as a natural part of carrying out

The following eightpromotion subcommittees have been
established for eachsustainability issue

Chairperson: President
Members: All directors and auditors

ReportHeld twice a year, in principle once per
half-termSocial Contribution
Sub-Committee

Procurement
Sub-Committee

Human Rights and Labor
Practice Sub-Committee

BCP/BCM
Sub-Committee

Environment
Sub-Committee

Risk Management
Sub-Committee

Compliance
Sub-Committee

matters to the Sustainability Promotion Council.

◦ Social contribution activities◦ Plant tours

Opportunities for Dialogue

Main Initiatives◦ Environmental education◦ Environmental volunteer
activities◦ Integrated reports◦ Product developmentthat helps to reduce
environmental impact◦ Reduce CO2 emissions andpromote reduced energy
consumption◦ Promote sustainableprocurementprocurement

Signing of the United Nations Global Compact

Initiatives for SDGs

The United Nations has established SDGs and requires

As the world works together to achieve the SDGs (Sustainablecountries around the world to work on their solution. At

Development Goals) for the sake of sustainable development,

the same time, it operates a system called “United Nations

the Oiles Group is making its contributions through the

Global Compact (UNGC)” that encourages companies andtechnological capabilities of Oiles. We also focus on instillingorganizations around the world to voluntarily take part in such

SDGs awareness in our employees.

initiatives. Currently, over 20,000 companies and organizations
around the world are participating. In
July 2019, we signed the agreement
to promote sustainability activities inFair and Equitable Tradeconcerns identified in the PDCA cycle, and reports important

Quality Sub-Committee

The Sustainability Committee, chaired by the officer inpromotes the Oiles Group’s priority sustainability topics, discusses

Main Initiatives◦ Integrated reports◦ Website

Global Environment
The Oiles Group considers global environmental
protection (climate action) initiatives as a key
management priority and intends to reduce
environmental impact through our business activities.

Quality Initiatives(CSR) initiatives, including environmental efforts and diversity.
charge of sustainability, has been established directly under theOpportunities for Dialogue◦ Reinforce supply chain management◦ Fair and equitable trade

Held twice a year, in principle once per
half-term

Chairperson: Sustainability Committee
Chairperson(officer in charge of sustainability)
Members: Heads of each promotion
Sub-Committee

Sustainability
Committee

their work. The Sustainability Promotion Council, chaired by the

Sustainability Promotion Council. The Sustainability Committee◦ Sustainable procurement questionnaires◦ Policy briefing sessions
Main Initiatives

support of this purpose.

In addition, eight promotion sub-committees, organizedfor each sustainability (CSR) topic, have been established under
the umbrella of the Sustainability Committee to work toward thesolution of each issue.

25

OILES CORPORATION INTEGRATED REPORT 2023

Human Resource (Human
Capital) Development Initiatives

the leadership of senior management and fostering a corporate

Sustainability
Promotion Council

sustainability issues, such as the policy and status of sustainability

Opportunities for Dialogue

Environmental Initiatives

Local Communities

Board members, convenes twice a year to deliberate on important

Suppliers
Product parts and materials arepurchased from partner companies.

Main Initiatives
Management Philosophy

Main Initiatives◦ General meetings of shareholders, ◦ Information disclosure
financial report briefings, andand profit distributionindividual meetings◦ Various reports such as securities
reports, integrated reports, andshareholder bulletins◦ Websites

Risk Management

Long-Term Vision

Through sincere and fair business activities based onpresident and attended by all directors and Audit & Supervisory

Opportunities for Dialogue◦Labor-management council and labormanagement meetings◦Training programs◦Consulting desk and whistleblower reporting desk
◦In-house PR◦Website & intranet◦Integrated reports

10 principles to guide our actions in compliance withlaws and to follow social ethics and common sense

activities.

Opportunities for Dialogue

Opportunities for Dialogue

Corporate Conduct Charterthe promotion of sustainability as the basic policy for our

Shareholders and Investors
The total number of shareholders is 17,105
The types of ownership and associated percentagesof the approximately 34.3 million outstanding sharesare financial institutions at 19.5%, foreign
corporations, etc., at 6.8%, and individual investors
and others at 51.9% (as of March 31, 2023)

Compliancesustainability (CSR) contributes to the sustainable development

Respect for
Human Rights
and Appropriate
Labor
Practices

Coexistencewith Local
Communities

Customers
We provide a range of products and services forbearings, structural devices, and architectural devices
to our customers worldwide.

Corporate Governance

Global interest in the Sustainable Development Goals (SDGs)

Corporate Management
and CSR (ESG)

Oiles Group Sustainability (CSR) Philosophy

OILES CORPORATION INTEGRATED REPORT 2023

26

Toward Sustainable Value Creation

Our Business

ESG Initiatives

Data Book

Corporate Governancemanagement priority for the sake of achieving sustainablegrowth, the Oiles Group has established and operates
an effective corporate governance system to continue

Board of Directors

The Audit & Supervisory Board consists of four Audit & Supervisory Board members,
including two independent outside Audit & Supervisory Board members, and in principle
meets once a month. The board determines the audit policy, the division of responsibilities
among Audit & Supervisory Board members, and other matters. It receives reports fromeach Audit & Supervisory Board member on the status and results of audits, thereby
fulfilling the audit function for management. Also, the board appoints outside Audit &Supervisory Board members so that it may draw on their abundant experience outside thecompany and strengthen the objectivity and independence of its auditing function.

The Board of Directors consists of six directors (with all Audit & Supervisory Board
members in attendance, including independent outside Audit & Supervisory Board
members) and in principle meets every month. The board makes decisions on
management policies and important management matters. Additionally, the board
supervises the execution of business and decides on matters stipulated by or underdiscussion with respect to applicable laws, regulations and the Articles of Incorporation.
Outside directors are appointed to provide advice on management policies and importantmatters based on their considerable experience.

Basic Policy
General Meeting of Shareholders
Appointment/
Dismissal

priority and strives to continually strengthen the rationale, soundness

Appointment/
Dismissal

Management/Supervision

We also recognize the importance of actively disclosing

Board of Directors

Audit & Supervisory Outside Audit & Supervisory Board
Board Members
Members (Independent Executive)

appropriate information to investors and other stakeholders in a

Internal Directors Outside Directors(Independent Officers)

Proposals

Proposals

Audit

Collaboration

ReportSupervision

Report andCollaboration

Business execution
Management Meeting
Director, Audit & Supervisory
Board Member, Operating
OfficerInternal Control(Audit)President

Sustainability
Promotion Council
Sustainability
Committeeof June 30, 2023. The Board of Directors makes decisions on key
General Bearing
Division

Automotive
Bearing DivisionDamping &Isolation Division

Production
Division

Compliance
Sub-Committee

AffiliatedCompanies

AffiliatedCompanies

AffiliatedCompanies

AffiliatedCompanies

AffiliatedCompanies

Risk Management
Sub-Committeewith the accounting auditor and the Internal Audit Office, which

Initiatives for Effective Corporate Governance
Assessment of the Board of Directors’ EffectivenessWe have been conducting an annual analysis and assessmentof the effectiveness of the Board of Directors since FY2015 in(1) Method for analyzing and assessing the overall
Management Meeting

Sustainability Promotion Council

The Management Meeting is held in principle every month for the purpose of discussing
important matters related to the execution of business, with directors and operating
officers in attendance. Outside directors and all Audit & Supervisory Board members,
including outside Audit & Supervisory Board members, also attend the meeting.

This body discusses important sustainability (CSR) issues such as environmental
measures and is chaired by the president and attended by all directors and Audit &Supervisory Board members. The meeting is in principle held twice a year (first half andsecond half).

oversight functions, as well as to bolster the functions of the Board

effectiveness of the Board of Directors
The Board of Directors analyzed and assessed the overall
effectiveness of the Board of Directors based on the results ofthe following questionnaire.

of Directors through speedier, more efficient decision-making on· Method: Signed questionnaire

Division to strengthen our production system.

operating officers in total, including those who serve concurrently

We will also clarify the roles and responsibilities of the directors andas directors (two officers). Since April 2023, we have divided theexecutive department by appointing operating officers responsible· Period: April 2022 to March 2023

bearing business department into the General Bearing Division

for each business department, and shift toward flexible· Assessed: Composition, effectiveness, operation, and discussion

and Automotive Bearing Division to rapidly respond to changes inmanagement by strengthening the management supervisory

process of the Board of Directors, as well as systems for obtaining

the business environment, and we newly established a Production

function while delegating executive power to operating officers.

information and providing assistance, etc.

OILES CORPORATION INTEGRATED REPORT 2023

· Target: Six directors and four Audit & Supervisory Board members in
office at the end of March 2023

OILES CORPORATION INTEGRATED REPORT 2023

28

Fair and Equitable Trademanagement strategies. The current team is comprised of eight

27

Quality Initiatives

the separation of business execution functions and supervisory/

Mr. Sakakibara has a high level of expertise and extensive knowledgeof corporate accounting and related fields, as well as knowledge andexperience in management as a corporate officer for many years, and he canfacilitate proper auditing of the Group. He has also been designated as anindependent officer based on our judgment that there is no potential conflictof interest with the general shareholders.

order to improve its functionality.

exercises internal control and carries out internal audits. (See pages
We employ an operating officer system with the intent to clarify

Mr. Maeda is a certified public accountant with extensive knowledge andexperience in corporate accounting and related fields, and he can facilitate
proper auditing of the Company. He has also been designated as anindependent officer based on our judgment that there is no potential conflictof interest with the general shareholders.

Human Resource (Human
Capital) Development Initiatives

Corporate Planning & Administrative
Division
Department under the direct controlof the president

Supervisory Board members have developed a collaborative system

49 and 50 for the List of Officers and Directors’ Skill Matrix.)

Tatsuhiro Maeda, Audit & Supervisory Board Member

Environmental Initiatives

Internal Audit Officesystem” consisting of six directors (including two independent outside

the Board of Directors and its execution functions, and Audit &Ms. Miyagawa was appointed because we believe that she will provide useful
opinions, proposals and advice based on her knowledge and experience inmanagement as a corporate officer and her expertise in the fields of internal
auditing and information systems. We also believe that her experience andinsight will contribute to further enhancing corporate governance from theperspective of digital transformation (DX) and diversity. She has also been
designated as an independent executive based on our judgment that there isno potential conflict of interest with the general shareholders.

Takeo Sakakibara, Audit & Supervisory Board Member

The company uses an Audit & Supervisory Board member systemmen and one woman. The Audit & Supervisory Board supervises

He has also been designated as an independent executive based on our
judgment that there is no potential conflict of interest with the general

Risk Management

Overview of Corporate Governanceexecution of business. The Board of Directors is composed of fiveCompensation
Committee **Voluntary committees

Accounting Auditor

management matters and oversees the management of directors’

Nominating
Committee *Collaboration

timely manner to ensure the transparency of management.

two independent outside Audit & Supervisory Board members) as

experience as a corporate officer in charge of management for many years.

ComplianceDecisionson motions
for appointments/
dismissals

Group and enhance its corporate value.

Consultation

Audit

Audit & Supervisory Boardchanges in the market and taking the necessary actions to develop thedirectors) and four Audit & Supervisory Board members (including

opinions, proposals and advice based on his extensive knowledge andRika Miyagawa, Director

Appointment/
Dismissal

Audit

flexible decision-making and delegation of authority in response tounder the “company with an Audit & Supervisory Board member

Mr. Omura was appointed because we believe he will provide usefulshareholders.

The Oiles Group positions corporate governance as a top management
and transparency of its management system and organization throughYasuji Omura, Director

Corporate Governancecontributing to the sustainable growth of society.

Reasons for the Appointment of Outside Executives

Audit & Supervisory Board

Corporate Management
and CSR (ESG)

Having positioned corporate governance as a key

Toward Sustainable Value Creationof contributions to improving the medium- to long-term businessperformance and increasing corporate value.
Under the plan, company shares are acquired through a trust

higher scores for the composition, operation, and discussionthat we have funded. Company shares and money equivalent to theprocess of the Board of Directors, with the discussion process

market value of the shares are provided to eligible directors and officers

seeing particular improvement. More active discussion occurred atthrough the trust, in principle when they retire and in accordance with

Board of Directors meetings, and under the smooth facilitation of

the directors’ BBT regulations.

the chairperson, the ideas that the outside directors and outside

Internal Control

Looking forward to our growth as a company that respects
human rights and diversity and where employees can play
an even more active role naturally
Rika Miyagawa

Corporate Governance

The opinions and results of the FY2022 assessment showed

Audit & Supervisory Board members expressed were actively

Data Book

Corporate Management
and CSR (ESG)

the overall effectiveness of the Board of Directors

ESG Initiatives

Interview with Outside Director

Corporate Governance(2) Overview of the results of analyzing and assessing

Our Business

After working for Fujitsu Microcomputer Systems Ltd. and Fujitsu OA Co., Ltd., Ms. Miyagawa
joined “K” Line Air Service, Ltd. (currently “K” Line Logistics, Ltd.) in 1989 and served as generalmanager of the BPI Promotion Office and general manager of the Internal Audit Office. She wasappointed as director in June 2016 and resigned in June 2019. In June 2021, she was appointed
as an outside director of the company.

incorporated in and appropriately contributed to board decisions.
The Oiles Group strives to contribute to society by leveraging oureffectiveness had been ensured.

technology and raising corporate value through the establishment of

What initiatives have impressed you at Oiles Corporation sincethat end, we expect our Company to focus on creating career plans for
women, educating candidates for management positions regardlesssolid relationships with our many stakeholders. We have established a

I was impressed by the presentations given by research & developmentof gender, training potential management successors, and developing

improve and strengthen our corporate governance system by diligently

rational, sound and highly transparent management system through agile

departments at our annual meeting. I had previously worked in the

global human resources both domestically and internationally.

addressing the issues that arise and fully considering opinions.

management decision-making in response to changing markets, andservice industry, so this type of meeting was a new experience for me. I

Moreover, I think that “Increasing employee engagement isdelegation of authority and managing financial reports in an appropriate

thought it was a wonderful approach so that employees can learn what

important,” as stated in the Message from the President. By respecting

and effective matter.

kind of research is being conducted in other departments and since it

the human rights of each employee and taking reasonable measures

also serves as an opportunity for sales and technical staff to interact.

in terms of gender, age, and mental health, we hope to foster “respect

I have heard of several examples where the exchange of opinions hasfor diversity” and “equal opportunity” and create a company where

led to development of actual products.

employees can play an active role naturally.

Nominating Committee and Compensation Committee
In October 2018, we adopted a voluntary Nominating Committee
and Compensation Committee system.
We established a voluntary Nominating Committee with

In addition, we are taking steps to improve the system and strengthen
its effectiveness from multiple angles. The Internal Audit Office, anorganization under the direct control of the president, periodically conducts

COVID-19 subsided, and the Group inspected domestic plants,
affiliated companies, and plants overseas. At one plant, we observed

Can you tell us about your efforts to address sustainability?

independence, objectivity and transparency of nomination

enabling the Board of Directors and Audit & Supervisory Board to fulfill their

the casting process, which meets the diverse needs of our customers,

There are many sustainability issues these days, but there are three

procedures of directors and operating officers. Directors andfunctions, mechanisms have also been established for the Internal Audit

and the assembly by human workers, and we sensed the history

in particular that I would like to see us address: “responding to theoperating officers are determined by the Board of Directors

Office to report directly to the Board of Directors and Audit & Supervisorythat we have built up over the years. That said, the tour also included

declining birthrate and aging population,” “responding to the global

after undergoing a consultation and reporting process with theBoard as needed about matters such as the results of internal audits. In

automated manufacturing and AI-based inspections, allowing us to see

environment,” and “responding to restructuring of the industry.” First,

Nominating Committee (candidates for directors are submitted inaddition, the person responsible for internal audits exchanges opinions withthe various old and new processes side by side. We were also able

“responding to the declining birthrate and aging population” refers to the

proposals at general meetings of shareholders).

the Audit & Supervisory Board and the accounting auditor, and that person

to exchange opinions with actual employees, which made us morehigh percentage of employees at our domestic plants who are in theirfamiliar with and which increased our understanding of our businesses

50s or older, so a decrease in the number of plant personnel is inevitable

and technology.

in the future. We believe that our efforts to promote work-life balance,system for directors and operating officers, a voluntaryalso provides corrective instructions and improvement suggestions to each
workplace and follows up on this advice.

Compensation Committee is being established, with a majority

The Audit & Supervisory Board and Audit & Supervisory Boardof independent outside directors. The Compensation Committee

members, who are independent of the Board of Directors and directors,

is chaired by an independent outside director. As a result, therespect for diversity, and female participation are closely related to
How do you assess our corporate governance?

aspects of our efforts we need to enhance in the future.
In terms of “responding to the global environment,” we believe that ourcollaborate by exchanging necessary information, including the details

favorably for our management meetings, which involve the free andbusiness itself, as symbolized by the “wooden bearings” that do not requirecomposition of and policies on compensation are determinedof accounting audits, reports from the Internal Audit Office, and auditing

vigorous exchange of opinions from diverse perspectives from outside

oil which were introduced when our Company was founded, will lead toby the Board of Directors after consulting and reporting to thereports from the Audit & Supervisory Board members of related

directors and outside Audit & Supervisory Board members with differing

a reduced environmental impact. In line with the belief, we look forward

Compensation Committee. In FY2022, the Nominating Committee

companies. The Audit & Supervisory Board members attend Board

experience. I believe that the effectiveness of the Board of Directors has

to further enhancing our core technologies and developing products andmet twice, and the Compensation Committee met four times. Theyof Directors meetings as well as other important meetings (such asalso increased. Strategy meetings and other meetings to formulate thetechnologies that will further reduce the impact on the environment while

are operating as intended.

management meetings) to understand the process of making important

next Medium-Term Management Plan are seeing a new SWOT analysis

contributing to the balance between humans and the Earth.

decisions and the status of business operations. The Audit & Supervisory
Board members have access to key documents related to decisions

Based on a resolution adopted at the 67th Ordinary Generalthat have been made, as well as other important documents related to

Meeting of Shareholders held on June 28, 2018, we adopted abusiness operations. If necessary, they can request an explanation for the

performance-based stock compensation plan, the Board Benefit

documents from directors or employees.

Trust (BBT), for directors (excluding outside directors) and operating
officers (eligible directors and officers) in order to raise their awareness29

OILES CORPORATION INTEGRATED REPORT 2023

Moreover, the president exchanges opinions with Audit & Supervisory
Board members and the accounting auditor at regular meetings.

From the perspective of “responding to restructuring of thethat examine the Company’s direction. In light of these discussions,industry,” our ideal position within society is to earnestly engage inraising awareness within us, clarifying roles and responsibilities, andtechnological innovation with a long-term vision in mind. This process

strengthening supervisory functions are issues to address in the future.

is highly variable, and there will be many twists and turns, but we

I would also expect our Company to help foster organizational

believe that products created by employees who appreciate each otherreform. Our Company is serious, which is why I believe it is somewhat

and who maintain a good work-life balance will be sought by society,cautious. Setting priorities and improving productivity with a sense ofconsequently leading to an increase in our corporate value.

urgency are important, and I believe we can achieve those goals. To

OILES CORPORATION INTEGRATED REPORT 2023

30

Fair and Equitable Trade

Performance-Based Stock Compensation Planof each business department and enhanced materials and proposals

Quality Initiatives

As has been the case since I was appointed, I rate our governance

Human Resource (Human
Capital) Development Initiatives

audits on all our departments and Group companies. With the goal ofEnvironmental Initiatives

a majority of independent outside directors to ensure theIn addition, to ensure the effectiveness of the compensation

Risk Management

your appointment as an outside director in 2021?

To further enhance board effectiveness, we will continuallyCompliance

These findings supported the conclusion that the board’s

Toward Sustainable Value Creation

Compliance

ESG Initiatives

Data Book

Risk Management
window at the Compliance Committee Secretariat (Legal Office of the

Basic Policyof management strategy, business continuity, compliance, tax
and financial reporting, disputes and others. Given prevailing

Legal Department) and an outside reporting window at a law office forcompliance-related consultations and to report unfair practices. We

In accordance with the Group Risk Management Rules, thesocial trends, we take the appropriate measures to prevent andfor the existence of any company. We are therefore striving tothereby strive to not only thoroughly protect whistleblowers, but also

Oiles Group identifies risks that may impact Oiles Corporation

respond to these risks. In particular, business risks that could

establish a compliance management system based on one

identify and resolve problems at an early stage.

and its subsidiaries, understands them in a centralized manner,have a significant impact on management are included in ourand takes preventive action. If any risk occurs, we will swiftly

securities reports, as they may influence investors’ decisions.

component of our company vision: Liberty and Law (freedom
and discipline).

Compliance System

Fair Competitionand effectively address it to minimize damage and prevent

The Oiles Group requires its officers and employees to comply

recurrence in order to maintain our Group’s corporate value.

Initiatives for Information Security

Risk Management System

The Oiles Group properly manages and protects information

with the Antimonopoly Act, the Subcontract Act, and competition
laws of various countries in light of the global trend of emphasizing

assets related to all resources, including people, things andincludes a director in charge of compliance as well as aand the risk of damage to corporate value in the event of unfair

Our Risk Management Sub-Committee is headed by theenvironments associated with our business operations. We also

Compliance Sub-Committee, which serves as a promotion

practices. In accordance with the Group’s Antimonopoly Act

general manager of the Legal Department (operated as aformulate regulations on information security to counter cyberunit under the Sustainability Promotion Council and is headed

Compliance Manual, its officers and employees are required

promotion unit under the Sustainability Promotion Council)

attacks and other threats. The entire Group addresses securityby the general manager of the Legal Department. In addition,

to comply with the Antimonopoly Act in the course of theirand enhances the collection and management of information

measures in accordance with the regulations. Considering

each division and each Group company has a member on

daily business activities, including prohibiting any contact withto reduce the frequency and impact of risks. In principle, thethe importance of information assets, we also continually offer

the Compliance Sub-Committee and a compliance promoter.

competitors that may violate the act and reporting any suchsubcommittee meets once every half-year to discuss risks thattraining to all employees who handle information assets in order

Compliance promotion, education and training based on thecontact to their supervisors. Furthermore, to ensure compliance

have occurred during the relevant period. By diagnosing theto ensure thorough management of those assets.

Oiles Group Corporate Conduct Charter and Corporate Code ofwith the Subcontract Act, we are raising awareness and training

nature of the risks, the likelihood of their occurrence, and their

Conduct ensure that all business operations are conducted in

employees to prevent violations of the act while also strengthening

impact on the Group, we strive to avoid risks.

accordance with laws and regulations and that the behavior of

the managerial aspect.

management system certification in June 2022, and we are
Risk Management Structure Chart

The Oiles Group builds sound relationships with politicians andother administrative bodies while prohibiting acts that could be
misunderstood as providing profits or collusion. Moreover, we

The Compliance Implementation Guide, which contains thehave established the Bribery Prevention Regulations, which notbackground of the Oiles Group Corporate Conduct Charter andonly prohibit bribery by officers and employees of the Group

keywords and explanations of compliance-related items, has

to public officials but also prohibit the provision of excessive

been distributed to all employees to serve as a guide for theirentertainment and gifts to private businesses. When entertaining

daily work. In addition, the Oiles Group Corporate Conduct

or gift-giving, we thoroughly follow the guidelines established in

Charter and Corporate Code of Conduct have been translated

accordance with domestic and foreign laws and regulations.

into English and Chinese to extend employees’ awareness
Moreover, we offer regular, employee level-based

Response to Antisocial Forces
The Oiles Group refuses all connections to antisocial forces ororganizations that threaten the order or safety of society andtraining on a topic-by-topic basis under the leadership of thesteadfastly confronts them. We closely verify that our businessdepartment’s promotion leader. These efforts help deepen

partners are not a part of antisocial forces and include a clause

employees’ understanding of compliance.

on the elimination of antisocial forces in our Basic Transaction

Responsible
department

Risk
information
pertaining
to the Oiles
Group, including
domestic
and overseas
subsidiaries

Reportrisk
Reportrisk

Monitoring/
AdviceReports
the current
status of risk
management

Internal Audit Report
OfficeLegal
Department

ReportRecognition of risk information
through other methods

ReportChairperson of
the Sustainability
Committee

ReportThe Oiles Group has formulated a business continuity plan
(BCP) to prepare for large-scale earthquakes and othercontingencies. The basic policy of the BCP is to aim for the early
restoration of business operations while placing the highest
priority on ensuring the safety of human life. To this end, theRisk Management
Sub-Committee

plan promotes the development of action plans for emergencies

Chair of the Risk
Management SubCommittee

and the advance preparation of disaster mitigation measures.

Management Office:Legal Department

against outbreaks of COVID-19 in the workplace. Going

In addition, we continue to promote infection control to prevent
forward, we aim to continue developing our BCP and BCM(business continuity management).

Identification of Business Risks

Fair and Equitable Trade

Compliance Training programs, and each department conducts

Corrections,etc.

Business Continuity Planning andManagement (BCP/BCM)

Agreements to prevent any transactions with such groups.

Whistleblowing System

If we are contacted by any antisocial force or organization,

Using a variety of risk information, we identify business

The Oiles Group has established an internal whistleblowing

we cooperate with the police, lawyers and other externalrisks through questionnaires and interviews with all parties

system to identify compliance issues at an early stage and takeorganizations, and the entire Group, including top management,

concerned, including the relevant business departments. We

countermeasures. Specifically, we have set up an internal reporting

works together to address this issue at the organizational level.

then classify and organize identified risks under the categories

31

OILES CORPORATION INTEGRATED REPORT 2023

Quality Initiatives

about compliance on a global basis.

ReportBoard of Directors

Human Resource (Human
Capital) Development Initiatives

Distribution of the Compliance Implementation Guide and Training

President
Risk Managing
Director
Other officers
designated by thepresident

Environmental Initiatives

striving to prevent breaches in information security.

Prevention of Corruption and Bribery

Initiatives to Promote Compliance

In order to continuously maintain and improve information
security, we acquired ISO/IEC 27001:2013 information security

Risk Management

fairness in business transactions, stricter laws and regulations,

Compliance

Our organizational structure for overseeing overall complianceall employees is grounded in our corporate ethics.

Corporate Governance

The Oiles Group recognizes that thorough compliance is vital

Corporate Management
and CSR (ESG)

Basic Policy

Our Business

OILES CORPORATION INTEGRATED REPORT 2023

32

Toward Sustainable Value Creation

Our Business

ESG Initiatives

Data Book

Environmental Initiatives
Main Transition Risks

value in the medium to long term. The Group is also enhancing its efforts to address sustainability issues such as its environmental
initiatives to address climate change and other problems.

Responding to Climate Change:
Preventing Global Warming

The Oiles Group has established the following environmental policy
to contribute to reducing the environmental impact and solving
global environmental issues through our business activities.
WEB

You can read the Oiles Group Environmental Policy athttps://www.oiles.co.jp/en/files/Oiles_Group_Environmental_PolicyEN.pdf

Governance
We have established the Sustainability Promotion Council as the bodyfor discussing sustainability issues such as climate change. Chairedby the president and attended by all directors and Audit & Supervisory

Environmental Management System

year to deliberate on formulating Group policies and targets to respondto climate change-related risks and opportunities.

Promotion Structure

Significant /medium tolong term

Promote initiatives toachieve CO2 emission
reduction targets

Loss of earning
Significant /opportunities due to slow
medium todevelopment of eco-friendly
long term
products

Continue developing
products andtechnologies that
contribute to creating a
low-carbon society

Loss of market due toinnovative changes in
raw materials required for
products

 xpand sales of·Ebiomass bearings evelop new materials·D rocurement of carbon·P
free raw materials

Removal from customers’
supply chains due to slow
action to address climatechangeIntermediate /Introduction of carbon taxes
long term

officer in charge of sustainability. The Sustainability Committee

Management Committee that has formulated an environmental

reports on the status of initiatives addressing sustainability issues

manual containing guidelines to dictate how business activities

such as climate change to the Sustainability Promotion Council.
We are addressing climate change through this multi-tiered

should be conducted.
Furthermore, company-wide support is provided fororganizational structure, and the Board of Directors additionallyexercises oversight over climate change-related risks andEnvironmental Sub-Committee to share information such asopportunities.

responsible for environmental matters. The Central Environmental

We identify risks and opportunities brought about by climate change

Committee cooperates with the Environmental Sub-Committee

based on the recommendations of the Task Force on Climate-related

to enhance environmental protection activities throughout

Financial Disclosures (TCFD). We use the 2°C scenario to analyze

the company and promotes sharing of the environmental

transition risks and the 4°C scenario to analyze physical risks.

management systems with domestic and overseas affiliates.
Climate Change-Related Risks and Opportunities
Environmental Management System Promotion Structure
President
Central Environmental Committee
Chairperson: Board Director Responsible forEnvironmental Matters

Ashikaga
Environmental
Management
Committee

OITA PLANTASHIKAGA
PLANT

WEB

33

Shiga
Environmental
Management
Committee

Fujisawa
Environmental
Management
Committee

SHIGA PLANT

FUJISAWAPLANT

You can view our ISO 14001 certification acquisition status athttps://www.oiles.co.jp/en/sustainability/iso/index.html

OILES CORPORATION INTEGRATED REPORT 2023

This is a scenario in which the above initiatives are not implemented.
Transition risks are limited, but major disasters will occur due toextreme weather events caused by rising temperatures (wind and4°C
flood damage caused by sudden weather events, as well as longscenario term wind and flood damage caused by changing climate patterns).
In addition to soil erosion resulting from rising sea levels, the stabilityof water sources and employee health will also be impacted.
⇒Physical risks emerge, as well as opportunities to deal with them
* Applicable time period: 2030, the final fiscal year of the Sustainable Development Goals(SDGs) for the medium term and 2050 for the long term

to management via the following process: Environmental SubCommittee → Sustainability Committee → Sustainability Promotion
Council. Furthermore, the BCP/BCM Sub-Committee under the
Sustainability Promotion Council and Sustainability Committee
also follows up on the physical risk of flooding caused by climate
The Risk Management Sub-Committee is also positioned

Countermeasures

Damage to plant facilities
caused by rivers flooding
due to record-breaking
wind and water disasters

Intermediate /long term(Low likelihoodof occurring)

BCP (increase production
plant readiness to
respond to water
disasters)

Negative impact on
employee health andproductivity caused byrising average temperatures

Intermediate /long term

Enhance employee
health management andcreate efficient working
environments

under the Sustainability Promotion Council and Sustainability
Committee. Headed by the General Manager of the Legal
Department, the Risk Management Sub-Committee regularly
reports to management meetings (also attended by outside
directors) on the overall picture of risks that the Group should beaware of, including climate change risks. (See page 25 for details
about our Sustainability (CSR) Promotion Structure)

Main Opportunities[Bearing business andarchitectural devices
business]
Create and grow new
demand by developing
products and technologies
that contribute to reduced
CO2 emissions[Structural devices
business]
Trend toward strengthening
resilience in theinfrastructure sector,
including bridges, toprevent and mitigate
disasters and carry out
restoration work

Impact / Time
Frame

Countermeasures

Significant /medium tolong term

Bearings: Technologicaldevelopment in EVs,
renewable energy andother fields
Architectural:
Development of products
and new technologies
that contribute to savingenergyIndicators and Targets
In 2023, we once again revised our environmental targets, which
we previously revised in 2021, in order to achieve carbon neutrality
by 2050. We have divided our efforts to achieve those targets into
two steps. The first step is to reduce total CO2 emissions by 46%
from their FY2013 level by FY2030, which is the existing target,
and the second step is for the Oiles Group as a whole to achievecarbon neutrality by 2050.

Significant /medium tolong term

Structural: Strengthenpresence in the fieldof infrastructure
renovations, including
bridges

Environmental Targets(1) First step: Reduce total CO2 emissions by 46% from their
FY2013 level by FY2030(2) Second step: The Group as a whole achieves carbon neutrality
by 2050

Risk Management*This applies to Scope 1 and Scope 2

The Sustainability Promotion Council, chaired by the president andattended by all directors and Audit & Supervisory Board members,

Status of Initiatives

assesses and identifies risks related to climate change issues

To achieve our environmental targets, the Environmental

based on reports from the Sustainability Committee and decides

Sub-Committee under the Sustainability Promotion Council

the overall direction for management. In addition, we establishedpromotes initiatives in cooperation with our manufacturing sites.

the Environmental Sub-Committee under the umbrella of the
Sustainability Promotion Council and Sustainability Committee

We have mostly completed the conversion to LED lighting
at our domestic plants and we are systematically upgrading to

OILES CORPORATION INTEGRATED REPORT 2023

34

Fair and Equitable Trade

Oita
Environmental
Management
Committee

In addition to increasing demands from customers, investors,
and other stakeholders for initiatives aimed at achieving carbon
neutrality (lower carbon economy), stronger legal regulations such
2°C
as the introduction of carbon taxes are also expected. The need
scenario for technological innovation will become an urgent matter in allindustries, not just the automotive industry, where electrification isalready underway.
⇒Transition risks emerge, as well as opportunities to deal with themour efforts to address climate-related risks is regularly reported

Quality Initiatives

Environmental
Sub-Committee

The Environment Surrounding the Oiles Group (Risks & Opportunities)

with a particular focus on reducing CO2 emissions. The status of

Human Resource (Human
Capital) Development Initiatives

Strategypressing forward with measures to address climate change issues,change, although the possibility of its occurrence is low.

Impact / Time
Frame

policies, targets, issues and progress related to activities while
also building a structure for reporting to the president and director

Committee. In light of the risks and opportunities involved, we are

Environmental Initiatives

environmental initiatives through the establishment of an

Environmental Safety Department heads the Environmental Sub-

Risk Management

Council is the Sustainability Committee, which is chaired by the

Fujisawa, Shiga, Ashikaga and Oita has set up an Environmental

Reduce CO2 emissions

Main Physical Risks

Established under the umbrella of the Sustainability Promotion

Each of the four business establishments and plants in

Significant /medium tolong term

related risks. The General Manager of the Quality Assurance &Compliance

Board members, the Sustainability Promotion Council convenes twice aCountermeasures

Corporate Governance

Environmental Policy

as the administrative organization for addressing climateImpact / Time
Frame

Corporate Management
and CSR (ESG)The Oiles Group recognizes that responding to the environment is an important management priority to improve its corporate

Toward Sustainable Value Creation

Our Business

Data Book

ESG Initiatives

Environmental Initiatives
upgrading to more energy-efficient facilities, and increasing thefirst for us, our Fujisawa Plant has been generating solar power

ratio of renewable electricity procured.

with its own solar panels since December 2021. In FY2022,

To achieve our target of becoming carbon neutral by

Supply Chain CO2 Emissions
In addition to the emissions of the business operators themselves, we monitor and consider measures for all types of emissions related

2050 (Step 2), we need to review our energy procurement

to business activities. In terms of Scope 3 emissions, CO2 emissions from goods and services purchased in upstream processes

equipment to more precisely gauge the amount of electricity

system company-wide, implement energy-efficient production(Category 1) account for approximately 70% of the total emissions in our supply chain, and we will continue working to reduce theseused in product manufacturing.

lines, and fundamentally review our methods of production. To

emissions.

Raising the awareness of each and every employee is also

provide products and technologies that help solve the world’s
Supply Chain Emissions

important to achieving our environmental targets. In addition to

problems, we will “tirelessly pursue technologies” to create

working to reduce energy loss and defects at our production

innovation for our Group to achieve carbon neutrality by 2050.

Categorysites and continuing to educate employees on environmental
issues through training, we have made devising “environmental

Environmental Management Committee at the Fujisawa Plant

Scope1

Our direct CO2 emissions

7,180

7,435

4

■ Japan ■ Overseas

Scope2

Our indirect CO2 emissions

23,71321,80812

30,89329,24216

1. Purchased products & services

111,923

124,696

68

2. Capital goods

10,8688,631

5

3. Fuels, etc., not included in Scopes 1 & 2

5,274

5,349

3

4. Transportation & deliveries (upstream)

12,846

12,2337

5. Emissions from businesses

1,301

1,144

1

265

264

0

1,127

913

1

Sum of Scope 3

143,605

153,23084

Total supply chain emissions

174,498

182,473100(t CO2)60,0000.574(t CO2/millions of yen)
0.600

0.516

0.465

basis, and it encourages workplaces using large amounts of

30,000

Scope30.400
30,7586,880

energy to voluntarily identify reasons for that use and to reduce

30,89330,29727,369
9,722

9,546

8,932

29,242

0.300
9,751

0.200

20,00023,87810,00000.500

Sum of Scopes 1 & 2

18,437

FY
2019

FY
2020

21,171

FY
2021

19,491

FY
2022

0.100

6. Business travel0* Figures for prior years have been retroactively adjusted to improve accuracy

7. Employee commuting

FY2022 CO2 emissions by business (t-CO2)
Architectural devices

309

3,910
Solar power generation at the NP Building of the Fujisawa Plant

Conservation of Water Resources and Waste Disposal
Controlling Water and Preventing Water Resource

Water Usage (Oiles Group)

Pollution(1,000 m3)
250

To ensure the effective use of water resources in production
Bearings

Consolidated net sales in FY2022 increased 5.1% from25,024the previous fiscal year, but the Group’s total CO2 emissions

activities and prevent pollution, the Oiles Group manages watera 5.3% decrease from the previous fiscal year, as a result of

we control water resources by circulating the groundwater used

our efforts to reduce CO2 emissions. In addition, CO2 intensity

For details, see the climate change-related information

for cooling and other purposes. When draining wastewater in(CO2 emissions per unit of energy) was 0.465 t-CO2/million yen.

disclosures based on TCFD recommendations on our website

public waters, we strive to prevent water pollution by purifying(Japanese only).

it under strict supervision. Looking ahead, we will also begin
analyzing water-related risks and opportunities to promotewere 19,491 t-CO2, a 7.9% decrease from the previous fiscal

WEB

Information Disclosure Based on TCFD Recommendations
https://www.oiles.co.jp/en/sustainability/environment/initiative/tcfd/

43

201
40

190

202

199

25

28

40

150

100

169

161

150

177

171

FY
2018

FY
2019

FY
2020

FY
2021

FY
2022

50

0

Fair and Equitable Trade

the CO2 emissions of our domestic production sites in FY2022

200

Quality Initiatives

incorporates water management. In the manufacturing process,and the same was true in the previous fiscal year. Moreover,212

resources under an environmental management system thatin FY2022, including at sites overseas, were 29,242 t-CO2,

That figure was lower than that in the base year of FY2013,■ Japan ■ Overseas

better water management.

year. In order to achieve our plan for 2030 (Step 1), we will
promote various measures in Japan and overseas, including
further promotion of reduced energy use company-wide, further

35

OILES CORPORATION INTEGRATED REPORT 2023

Human Resource (Human
Capital) Development Initiatives

Structural
devices

Environmental Initiatives

FY2013(base)

20,751

Risk Management

40,000by comparing those workplaces to other workplaces.

0.517

0.504

Carbon intensity of CO2 emissions

50,000notifies each workplace of its energy consumption on a monthly

consumption by comparing energy use to the previous year andRatio of FY2022 total(%)

Complianceapproaches. Based on visually presented data, the office of the

FY2022 CO2emissions (t-CO2)

Change in CO2 Emissions and intensity (Oiles Group)

approaches” a mandatory item on the annual plans of eachdepartment since FY2023 to raise awareness of environmental

FY2021 CO2emissions (t-CO2)

Corporate Governance

we began procuring renewable electricity and we also installed

Corporate Management
and CSR (ESG)

energy-efficient air conditioning and production equipment. As aOILES CORPORATION INTEGRATED REPORT 2023

36

Toward Sustainable Value Creation

Our Business

ESG Initiatives

Data Book

Environmental Initiatives

To ensure the proper disposal of waste at each plant, the Oiles
Group conducts on-site checks of contracted waste disposal(t)
10,000service providers and manages waste through manifests.
example, disassembling and processing products consisting ofdifferent steel materials at our domestic plants.
We will maintain control over industrial waste disposal(t/millions of yen)
0.100
0.078

8,000

0.071

0.070

0.065

0.069

0.080
0.064

0.060

6,000
4,587

4,000

service providers and keep current on the waste generated fromour business operations in order to reduce waste across the

Waste intensity

2,000

entire Group while promoting reduction at each plant.

0

Corporate Governance

In FY2022, we reduced the volume of landfill waste by, forIndependent Assurance Statement

Aggregated Waste Emission and Intensity (Oiles Group)■ Japan ■ Overseas

Corporate Management
and CSR (ESG)

Waste Disposal and Reduction

4,187

1,150

1,077

3,429

3,206

FY
2017

FY
2018

1,158

3,931

4,121

4,008

1,146

1,199

836

0.040

3,110

2,785

2,922

3,172

0.020

FY
2019

FY
2020

FY
2021

FY
2022

0.000
Compliance

4,356

Landfill Rate (Domestic Group)
(%)
10.0

Risk Management

8.0

7.02
5.77

6.0

4.95

4.0

3.16

2.91

FY
2018

FY
2019

Environmental Initiatives

1.69

2.0

0

FY
2017

FY
2020

FY
2021

FY
2022

Human Resource (Human
Capital) Development Initiatives
Quality Initiatives
Fair and Equitable Trade37

OILES CORPORATION INTEGRATED REPORT 2023

OILES CORPORATION INTEGRATED REPORT 2023

38

Toward Sustainable Value Creation

Our Business

Data Book

ESG Initiatives

Human Resource (Human Capital) Development Initiatives
Respect for Fundamental Rights

human resources (human capital) initiatives as an important management priority to consistently increase corporate value. The Group invests

Female Employees
Oiles Corporationin the growth of all employees and it strives to improve the environment for human resources by fostering respect for human rights, promoting

Respect for Human Rights of Employees anddiversity, developing human resources, and promoting appropriate labor practices and health and productivity management.

Prohibition of DiscriminationIncrease the ratio of new graduate female employees toaround 30% because it is important to increase the ratioof female employees to ensure diversity in appointing
managers*1.

TargetIncrease the ratio of female managers to around 3%
by FY2025 and 5% or more by FY2030 through thepromotion of diversity measures and other means. Also
increase the ratio of female employees in managerial
positions and those qualified for managerial positions*2
to around 10% by FY2025.

We will respect the human rights of employees and never unfairly

Human Rights Policyof human rights, with the aim of ensuring that this basic policy

discriminate on grounds such as race, skin color, gender,

is deeply integrated into and implemented throughout thelanguage, religion, political and other opinions, nationality,

The Oiles Group recognizes that promoting respect for human rights

business activities of Group companies. Every officer andstatelessness, property, family origin, or other status. We offer

is a major responsibility for companies as members of society andemployee of the Oiles Group bears a responsibility to respectequal access to recruitment and other employment opportunities

thus is naturally expected to help to create an environment thathuman rights. We also require our suppliers to accept thisand treat applicants and employees the same, based on fairrespects individual human rights and individuality.

responsibility, and we will properly address any infringement ofevaluations in accordance with clear evaluation standards.

established the Oiles Group Human Rights Policy in response to
the rising expectations of international communities for corporate

WEB

You can read the Oiles Group Human Rights Policy athttps://www.oiles.co.jp/en/files/Oiles_Group_Human_Rights_PolicyEN.pdf

Human Resource Development Policyof activities and training programs to raise employee awarenessResults

The Oiles Group Basic Policy on Human Resources stipulates

to preventing harassment and promoting awareness of it. We

the following human resources development policy and internal

conduct a survey on harassment once a year and harassment

environment improvement policy to ensure diversity.

prevention training based on the results of that survey. We alsoestablished an Oiles Group personnel consultation desk. This

End March
2022

End March2023

Percentage of female
employees

11.4％

11.6％

13.1％

Ratio of female
managers

0.7％

1.9％

2.7％

April 2021

April 2022

April 2023

system allows any employee in the Oiles Group to discuss his or

6.3％

25.0％

47.4％

Ratio of females
among new graduate
hires

her concerns.
Human Resource Development

respect the human rights of all employees and support their growth

We will actively develop the abilities of each individual, enhanced byso they can fully demonstrate their diverse abilities and individuality intheir unique qualities and characteristics, and strive to ensure that

accordance with Oiles’ company vision. In addition, we will improve

employees can achieve maximum performance through systematic

our working environment to protect the health and safety of ourhuman resource development, utilization, evaluation and treatment.

employees from the ever-changing social conditions and enable
them to work flexibly and efficiently.

Human Resource Development
The Oiles Group encourages its employees to grow and expects thefollowing of each and every one of them.
・To respect human rights and diversity and thrive on the global stage
・To demonstrate a high level of expertise and consistently take on・To serve society and act on their own initiative to create added value

Improving the Internal Environment

Policy for Ensuring Diversity

The Oiles Group endeavors to maintain a working environment that

The Oiles Group has positioned diversity as a key management

protects the safety and health of all employees and accommodates

priority. To enable human resources with diverse backgrounds

a variety of work styles.

to fully exploit their capabilities and express their individuality,

Creating a Safe and Healthy Workplace

we will foster a comfortable corporate culture and working

In order to protect the safety and health of all employees, we haveenvironment as the cornerstone for raising sustainable

set the goal of creating a safe, secure and comfortable working
environment. We will create a safety-first climate through the use
the participation of all employees. Moreover, we will establish an

We will respect the human rights of each individual and never unfairly

occupational healthcare system so that all employees can continue

discriminate on such grounds as race, skin color, gender, language,

to work in good physical and mental health, and we will strive toreligion, political and other opinions, nationality, statelessness,maintain and improve the health of our employees.
Work-Life Balance

Targets for Ensuring Diversity & Progress Made

End March
2021

End March
2022

End March2023

Ratio of female
managers

5.0%

5.4％

6.1％

Ratio of female
managers at overseas
subsidiaries

22.2％

21.8％

22.0％

Foreign Employees
Oiles Corporation

Governance Code and is implementing initiatives to ensuring diversity.

Respect for Diversity

In addition to diversity, we also strive to create a working

We will promote the creation of a corporate culture in which everyone

programs for balancing work and family life events such as childbirth,can gain a sense of job satisfaction, with individuals coming from diverse

childcare and nursing care. We also have Work-Life Balance Support

backgrounds able to fully demonstrate their abilities and individuality.

Programs in place to enable flexible and efficient work styles.

Increase the number of foreign employees and develop
multiple managers and those qualified for managerial
positions by FY2025, with a view to appointing
managers in the future.

based on the principles of the Tokyo Stock Exchange’s Corporate

lives, balancing work and private life, we have enhanced our support

OILES CORPORATION INTEGRATED REPORT 2023

Results

The Oiles Group has established targets for ensuring diversity

To create an environment where all employees can live full, vibrantIncrease the ratio of female managers across the entire
Group to around 10% by FY2030.

TargetResults

environment where diverse employees can do their jobs with a senseof unity while recognizing each other’s unique circumstances—inother words, a workplace that achieves inclusion.

39

TargetNumber of foreign
employees

End March
2021

End March
2022

End March
2023

6

6

7

OILES CORPORATION INTEGRATED REPORT 2023

40

Fair and Equitable Trade

opportunity and prevent harassment of any kind.

corporate value.

of our occupational health and safety management system andRespect for Human Rights

property or status. At all times, we will endeavor to provide equal

Promoting Workplace Diversity and Inclusion
Promoting diversity

Quality Initiatives

challenges with a passion for creativity and innovation

Consolidated

Human Resource (Human
Capital) Development Initiatives

The Oiles Group believes that its employees are precious assets. We

Environmental Initiatives

Oiles Group Basic Policy on Human Resources

End March
2021

power harassment. We provide monthly compliance training

Risk Management

We will provide the necessary education through a variety

To protect employees’ human rights and their right to work, we

sessions in every workplace, regularly setting themes related

including the ILO Declaration on Fundamental Principles andRights at Work by the ILO (International Labor Organization).

Prohibition of Harassment
prohibit all types of workplace harassment, including sexual andactivities to demonstrate respect for human rights, as stated in
the International Bill of Human Rights and international standards*1 Managers are those who hold the rank of section manager or higher*2 “Those qualified for managerial positions” refers to those in categories qualified
to become managers.

human rights.

Compliance

As a corporate group that operates on a global basis, weCorporate GovernanceTargetCorporate Management
and CSR (ESG)

Based on the recognition that human capital is the source of value creation and corporate value enhancement, the Oiles Group positions its

Toward Sustainable Value Creation

Our Business

Data Book

ESG Initiatives

Human Resource (Human Capital) Development Initiatives
healthy balance between their work and personal lives and continue to workwith vitality and peace of mind.

Oiles Corporation
TargetIncrease the ratio of mid-career hires in management
positions to 30%-40% over the medium- to long-term.

Item

Paid leaverevised in 2019, imposing obligations on companies regarding the use of

End March
2021

End March
2022

End March
2023

40.5％

40.0％

40.7％

paid leave by employees, and interest in taking paid leave has increased.
Before the Act was revised, Oiles’ labor and management collaborated toencourage employees to take paid leave. The average rate of annual paid
leave taken by employees (full-time and contract employees) in FY2022 was

Promoting Women’s Participation and Advancement• Minimum 10 hours between work shifts

evaluation, and treatment. To strengthen our competitiveness as a

Encouraging leaving
work on time

• Employees encouraged to leave on time on
Wednesdays and Fridays

company and increase our corporate value, we will strive to invest in

Encouraging theplanning and takingof paid leave• One day off a month upon plan application• Consecutive leave of 2 days or more once
per year

Paid leaveaccumulation system• Accumulate up to 3 days a year from expireddays, maximum 60 days

Birthday monthholiday• 1-day special holiday during the birthday
month

Refreshment leave• 10 years of service: 3 consecutive days, 20
years of service: 5 consecutive days, 30
years of service: 7 consecutive days
• When rehired after retirement: 10
consecutive days

83.2%, which is well above the government target (70% by 2025). (See page
59 for changes in the average rate of paid leave taken)

can maximize their abilities through systematic development, utilization,

Minimum time off
between work shifts

and 2022, respectively, consisting of female employees in the outside sales

human resource development, including support for employee re-skilling.

Training System (see the Educational Training Structure)
To improve employees’ skills and to support their personal careerdevelopment plans, we offer a wide range of training programsfor different career paths and age groups, including management
training, occupational training, training in internationalization, personal
development, and life planning. In addition, we are conducting a selective
training program for future management candidates through measures• Special leave: 7 days a year (can be taken in
half-day increments)•S ubsidy for travel expenses: expenses (up to
100,000 yen per year)

and engineering departments, which have low ratios of female employees.

Support Programs for Balancing Work with Childcare and

The Female Sales Unit discussed ways to resolve difficulties in overcoming

Nursing Carelife events and ways to balance work with personal life. Concluding

One of our efforts to support a sound work-life balance is enhancing ourthat a company-wide change of awareness was necessary, they madechildcare and nursing care leave programs by introducing the following options.

a presentation at an in-house event. In addition, we have verified the

All eligible employees have actively taken spousal maternity leave, and the rate of

introduction of diverse working patterns, and we have introduced a systemtaking this leave was over 95%. In June 2023, we received Kurumin certificationthat allows staggered work hours for employees raising children.

from the Minister of Health, Labour and Welfare as a “Company Supporting

To develop our employees into exemplary personnel as set forth in

through technology.” Under this management philosophy, theChild-raising.”

the Human Resource Development (refer to page 39), we are actively

Oiles Group, which operates eight companies and six plants

developing their abilities by calling upon their unique qualities andoverseas, continues to develop its human resources to makechildren interested in science, and it has held workshops for children.
The activities of these women’s units also offer opportunities forChildcare

Description

Nursing careleave

• 12 days a year (can be taken in hourly increments)
One day of that leave per month is paid

our recruitment activities so that more people with disabilities can work
actively at our company.

Work-Life Balance
We intend to enhance our support programs to enable more efficientand flexible working patterns so that every employee can maintain a

41

OILES CORPORATION INTEGRATED REPORT 2023

CommonDescription

Post-resignation
reemployment
system• Providing re-employment opportunities at Oiles for
employees who have resigned on their own accord due
to marriage, childbirth, childcare, nursing care, or transfer
of a spouseMid-career training

3rd year step-up training

New Employee Training
New employee training
upon joining the company

Training at
plantsTraining before
official assignment

On-the-Job New employee 2nd-year career
Training
follow-up training
development

OILES CORPORATION INTEGRATED REPORT 2023

Fair and Equitable Trade• Shortened working hours, reduced by up to 3 hours aday, with up to 10 hours per month paid
• Application for exemption from overtime and holiday work
• Exemption from late-night shifts

Quality Initiatives

Nursing care
supportmeasures

Human Resource (Human
Capital) Development Initiatives

enables them to make the most of their abilities. We are also stepping up

Assistant Managers
Newly appointed supervisor training

Training at outsidecompanies• Total of 93 days

Re-branding training, retired employee guidance

Description

Caregiver leave

Qualification incentive system

Nursing careencourages respect for the individuality of people with disabilities and that

Assistant Managers
Supervisor training

General training (safety, environment, compliance, etc.)

employment rate of 2.3%, we will promote the creation of a workplace that

Career Developmentof continuing to hire more people with disabilities than the statutory

Assistant Managers
Assessment training

Personal
Development Life
Planning

Subsidies for personal development (language training, correspondence
education, external courses, etc.)

Special childcareleave• Individuals raising children with disabilities or children bornof multiple births• 12 days a year (can be taken in half-day units), of which 1
day’s worth per month is paid

Regular Hospital Visits by Persons with Disabilities” program to support

Managers
Newly appointed manager training

Global personnel developmenttraining• Until the child leaves elementary school• Paid leave may be in hourly increments: 5 days per year
for one such child, 10 days per year for two or morechildrenGlobal
Education

Training prior to overseas assignment (one on one as
appropriate)Children’s
nursing careleave

As part of our diversity efforts, we support the working patterns ofManagers
Upskill training

Occupational
Ability Training

Overseas dispatch training, language training (English
conversation)• Shortened working hours, reduced by up to 2 hours perday• Application for exemption from overtime• Exemption from late-night shifts

Selective
Training

Skills training, general occupational ability training,
qualified personnel training

Promoting Employment of Persons with Disabilities

Shortenedworking hours

Management Education
Hierarchy, Capabilities, Assessment, etc.

Basic Skills training (machine processing, maintenance,etc.)• 3 days

Educational Training Structure

Engineer training (special, first, and second levels)

Spousalmaternity leavepeople with disabilities during their regular hospital visits. With the goal

“Oiles Corporation is determined to become a world leader asa general manufacturer of oil-less bearings and serve society

Oiles School

address issues in promoting female participation.

environment. In April 2023, we introduced a paid “Special Leave for

Human Resource Development Initiatives

Executive training• Until the child’s second birthday

people with disabilities and we are improving our operations and working

Developing Global Human Resources

Overview of Childcare & Nursing Care Support ProgramsChildcare leave

interaction between female employees as well as providing an avenue tocomprehensive range of skills.

Environmental Initiatives

Female Engineer Unit has also planned an initiative to increase the number ofsuch as the Oiles School for Management, where candidates gain a

Risk Management

In addition to hiring more female graduates from the STEM fields, theSupport forvolunteering activities

Compliance

The Female Sales Unit and Female Engineer Unit were launched in 2020

characteristics, and we are creating an environment in which employees
Description

Corporate GovernanceAs part of the reform of working patterns, the Labor Standards Act was
Results

Ratio of midcareer hires
in management positions

Work-Life Balance Support Programs

Corporate Management
and CSR (ESG)

Number of mid-career hires

42

Toward Sustainable Value Creation

Our Business

ESG Initiatives

Data Book

Human Resource (Human Capital) Development Initiatives
Health and Safety Organization Chart

offer a variety of globalization training programs, including
English language training in Japan and overseas assignment
training, which consists of sending employees to overseas

President
Human Rights and Labor
Practice Sub-Committee

Health and Safety Initiatives

Together with the Central Health and Safety Committee, thecreating a system so that employees can consult with an industrial

Human Rights and Labor Practice Sub-Committee strives to create

doctor, a public health nurse, a clinical psychologist, or an externala foundation on which employees can work joyously. We aim toorganization as needed. We provide every employee with mental

improve the development of the company by promoting healthhealth education for self-management and a public health nurse

management through work style reforms, mental health measures,interviews all new employees. In addition, occupational healthand activities for the maintenance and promotion of health. In 2020,

personnel are involved with employees before they take a leave of

we set up the Health Management Promotion Team in the Humanabsence. Those personnel provide continuous support during the

Resources Department. We have enhanced our health promotion

leave of absence. When the employee returns to work after the leavesystem, we have incorporated items to be addressed based on theof absence, those personnel create a return-to-work support program

Health and Productivity Management Strategy Map into our safety

to help the employee smoothly re-enter the workforce.

and health activity plans, and we have created a system that can bepromoted at all of our sites. In FY2023, we were also certified as an

Eliminating Industrial Accidents

Organization with Outstanding Health & Productivity Management

We fully comply with laws and regulations on health and safety. Everyby the Ministry of Economy, Trade and Industry.

Compliance

Sales Offices(Western Japan)

Sales Offices(Eastern Japan)

Tokyo Head
Officeresources rooted in the local community.

mental health problems early on and to prevent those problems by

Dialogues With Employees
The Oiles Group respects employees’ freedom of association, union

to prevent in-house clusters of infections, placing top priority onin peaceful gatherings under international treaties and decrees.

environments under the basic principle of protecting employee

to improve the level of safety management. Moreover, each officebalancing health and safety with our responsibility to supply products.

We ensure labor-management dialogue that allows employees tohealth and safety. All employees work together to create a

conducts risk assessments to identify potential hazards at work andsafe climate based on our occupational health and safety

takes action on a daily basis to reduce such risks based on the results

Employee Wellness Support

retaliation, intimidation or harassment, and uphold collective

management system, which was set up in accordance with theof the assessments. The cause of an industrial accident at a businessWe prioritize the prevention, early detection and early treatment ofbargaining agreements and other arrangements. Based on sufficient

relevant Japanese laws and regulations.

site is promptly determined and measures are devised to prevent islifestyle-related diseases and other ailments among our employees.

discussion, labor and management are working together to put our
corporate philosophy into practice.

communicate openly with management without fear of discrimination,

recurrence. Information is also shared with other sites in an effort toWe have assigned occupational health personnel to all of our sites.

Policy and System for Occupational Health and Safety

eliminate industrial accidents company-wide. (Refer to Safety and HealthIn cases where an employee’s health checkup reveals a (potential)

To prevent industrial accidents and illnesses, the Oiles Group

Data on page 59)

health issue, we are enhancing their consultations that they can have

Employee Awareness Survey

with a public health nurse. In FY2022, we introduced iCARE’s healthWith the aim of growing into a company that continuously takes

formulated its Health and Safety Management Standards,

information management system, Carely, to centralize the health dataon future-oriented challenges together with its employees, we are

The skills training center provides safety training with simulated hazardof all employee in Japan and to build an analysis platform, thereby

conducting employee awareness surveys. A survey was conductedand health of employees and to create a comfortable working

lessons as part of skills training for new employees, and each workplaceenhancing the efficiency of information sharing and collaboration

on childcare and housework by male employees. Based on thoseenvironment. We are also executing our health and safety action

offers safety training to new and newly assigned employees. We regularly

between business sites. Health education is provided by video toresults, we conducted training for managers and male employees

policy to fulfill our social obligation to ensure safe operations

conduct training on health and safety as needed to continue raising

employees to improve their health literacy, allowing enough flexibility

to discuss the need for men to take the initiative in childcare and toand a sound working environment by protecting the health andemployee awareness. We also provide safety training by position levelfor employees working at plants to participate. In addition, we arebalance childcare and work. As employment conditions vary widely,well-being of employees and to achieve sustainable growth byand encourage members of health and safety committees and managers

bolstering measures to support the improvement of employee health,we will conduct such awareness surveys on a regular basis and use theengaging every employee in health and safety initiatives. As ato acquire qualifications through national examinations, including thosesuch as subsidizing the cost of further examinations after regular healthresults in our policies.

management system, our Central Health and Safety Committee

related to the Industrial Safety and Health Act. Furthermore, we offer

checkups and fees for full medical examinations.

is in place to examine and deliberate on various health andfollow-up training to qualified personnel.

safety issues and share feedback with the company, while theFujisawa, Shiga, Ashikaga and Oita Plants each maintain their

Initiatives for Health Management

Mental Health Measures

Oiles and some of our Group companies have our own respective

An increasing number of employees have recently been taking

labor unions. The company and labor unions have a stable labor

leaves of absence from work due to mental health issues. Since

management relationship and have concluded more than 60

own health committee, domestic offices across the country“Health management,” that is, the promotion and maintenance of the physical2022, a clinical psychologist has been assigned to the Humanagreements, arrangements and memorandums, while arranging

are categorized into either the eastern or western zones, eachand mental health of our employees, forms the foundation of our management

Resources Department to provide professional support. In

opportunities for regular labor-management discussions to negotiateof which has its own health and safety committee. Under thisof human capital. We view health management as a key management priority,

accordance with the Industrial Safety and Health Act, we haveand debate matters such as labor conditions and human resource

system, the entire company is actively involved in health andand we are endeavoring to promote the physical and mental health of ouremployees undergo a stress check once a year, and we perform asystems. It should be noted that we have a 100% labor union

safety activities.

employees.

group analysis by workplace every year. We are striving to detectmembership rate among permanent employees.

43

OILES CORPORATION INTEGRATED REPORT 2023

OILES CORPORATION INTEGRATED REPORT 2023

44

Fair and Equitable Tradeown committees. In addition to the Tokyo Head Office with its

Healthy Labor-Management Relations

Quality Initiatives

Health and Safety Education

safety and health. The Group is working to promote the safety

Human Resource (Human
Capital) Development Initiatives

which are the standards necessary for the management ofEnvironmental Initiatives

membership, collective bargaining, and the right to participate

action plans and they establish voluntary rules on an as-needed basis

Risk Management

We are also responding to COVID-19 by making efforts

We strive to establish safe, secure and comfortable working

fiscal year, each department formulates its own health and safety

Corporate GovernanceWestern Healthand Safety
Committee

Eastern Healthand Safety
Committee

Tokyo Head
Office HealthCommittee

OITA PLANT

management positions and focus on developing global human

ASHIKAGA
PLANT

At overseas bases, we actively promote local employees to

FUJISAWAPLANT

overseas.

SHIGA PLANT

provided for managers to gain basic knowledge about business

Oita Healthand Safety
Committee

assigned posting. Global personnel development training is also

Shiga Healthand Safety
Committee

receive specific training so that they are fully prepared for their

Fujisawa Healthand Safety
Committee

business experience. Before heading overseas, employees

Ashikaga Healthand Safety
Committee

offices to improve their language skills and broaden theirCentral Health and Safety Committee
Chairperson: Health and Safety Director

Health Promotion System

Corporate Management
and CSR (ESG)them capable of conducting business around the globe. We

Toward Sustainable Value Creation

Our Business

Data Book

ESG Initiatives

Product Quality Reliability
Complaint Prevention and Response System

striving to provide products of high quality and reduced environmental impact that meet customer expectations.
The president and the quality assurance officers of the Oiles

Toward Improving Product Quality Reliability
system based on the pillars of a focus on the customer,
processes, analysis and evaluation, and continuous
improvement to meet the demands of the market andcustomers. In each stage of product development andpreparations for production, we eliminate risks and engage insecretariat is working to maintain the quality and safety of its

to achieve the set quality targets and to promote evaluation,

products by creating a quality assurance system tailored to theguidance and improvement of the quality assurance system.

particular characteristics of the division’s business. In addition,

In addition, in order to achieve the quality target of “zerowe have established and operate a quality assurance system incomplaints” in both product and process design, we use thewhich the heads and presidents of each plant and affiliate are“Five Whys” method of the “Failure Mode Effects Analysis

also the quality control managers.

(FMEA)” to prevent the recurrence of past quality defects byidentifying the root causes and taking permanent measures.

The Quality Assurance System

In addition, employees are aware of their roles andQuality Assurance
Representative of theCompany

responsibilities related to the development, manufactureand servicing of products. Furthermore, we are striving to

Quality
Assurance
Manager

35

34

FY
2020

FY
2021

FY
2022

25

0

FY
2018

FY
2019

* Figures for prior years have been retroactively adjusted to improve accuracy

countermeasures from the customer’s perspective.

The Oiles Group operates in accordance with its internal

Quality Control
Manager, Damping& Isolation Business
Area

Quality
Assurance
Manager,
Oiles ECO

earn the trust of our customers.
with laws and regulations.

Fujisawa Plant
Shiga Plant
Oita Plant
Ashikaga Plant

concerning the Pollutant Release and Transfer Register/PRTR

by the quality control manager in each department, the(Act on Confirmation, etc. of Release Amounts of SpecificChemical Substances in the Environment and Promotion of
Improvements to the Management Thereof).
Moreover, we are tirelessly working to abolish the useof substances of concern in bearings, the Oiles Group’s coreproduct. We are in full compliance with regulations that restrict
the use of hazardous substances, such as “Restriction of the

Quality Initiatives

Affiliated Companies
in Japan andOverseas

Human Resource (Human
Capital) Development Initiatives

Through a Quality Control Committee that is regularly convened

customer requirements and protect the global environment.

and plant in Japan are managed in accordance with the law

Oiles ECO

manufacturing, sales, and engineering & design department.

Planning &Administrative
Dept.

Damping & Isolation Division

Group, and quality control managers are assigned to eachto comply not only with laws and regulations but also to meethandled, released, and transferred from each establishment

Production Division

the quality assurance system of each business unit within the

Automotive Bearing Division

The quality assurance officer of the Oiles Group supervises

General Bearing DivisionCorporate Strategy Dept. (Bearing
Planning & Administrative Sec.)

Quality Assurance Systemand strives to properly manage chemical substances in order

The volumes of chemical substances generated,

Quality Control
System (Simplified)

3. We pledge to establish a quality assurance system and comply

use of certain Hazardous Substances in electrical and electronicWEB

You can view our ISO 9001 and IATF 16949 certification acquisition status athttps://www.oiles.co.jp/en/sustainability/iso/download/equipment” (RoHS) and the “Directive on End-of-Life Vehicles”(ELV Directive) enforced in the EU. All plastic and multi-layered
bearings products are lead-free, and standard metal bearings,

annual management review to check the quality of products

excluding special purpose bearings, conform to the RoHS andfrom the entire Oiles Group and provides guidance on the

ELV directives.

Fair and Equitable Tradeproblems. Moreover, the quality assurance officer holds anboth the Bearing Business Area and the Damping & Isolation

36

Environmental Initiatives

customer expectations.

A quality management secretariat has been established in

47

Proper Management of Chemicals

Quality Assurance Manager
responsible for quality assurance in
the QMS in each business area

General Quality Control
Manager, Bearing
Business Area

2. We work to continuously improve the quality of our products toquality assurance system.

44

64

Management of Chemical Substances in Products regulations

1. We develop and deliver high-quality products that meetwork together to resolve various quality-related issues and

50

72

68

75

to check and evaluate the progress and effectiveness of
Quality
Assurance
Officer

Quality Policies

manufacturing, sales, and engineering & design departments

83

Risk Management

Customers

approach of constantly running PDCA cycles.

■ Amount handled ■ Amount released/transferred91

countermeasure team led by the quality assurance managers

President

improve the reliability of our product quality by promoting
cross-organizational business activities and taking the kaizen

For serious malfunctions, we have set up a

(t)
100

Complianceefforts to prevent defects.

Group are conducting “Quality Diagnoses by Top Management”

Corporate Governance

The Oiles Group has built and operates a quality assurance

quality control manager (quality assurance manager). Each

Change in Amount of PRTR Notified Substances Handled,
Released and Transferred (non-consolidated)

Concerning the RoHS 2 regulations (additional regulations
for RoHS) that went into force in July 2019, we have conducteda content survey and have completed the response.

Business Area, with the Division Manager serving as the chief

45

OILES CORPORATION INTEGRATED REPORT 2023

Corporate Management
and CSR (ESG)The Oiles Group will pursue the two core technologies of tribology (friction, wear and lubrication) and damping (vibration control) while

OILES CORPORATION INTEGRATED REPORT 2023

46

Fair and Equitable Trade
The Oiles Group maintains fair and equitable relationships with its suppliers to ensure consistently transparent trade, as is stipulated in
the Oiles Group Corporate Conduct Charter.

Procurement Policy

problems of our suppliers. We are also moving forward withefforts toward sustainable raw material procurement through

The Oiles Corporation Group will comply with laws andinitiatives such as a decentralized procurement system that canregulations, social norms, and corporate ethics, and collaborate

procure raw materials from multiple areas.

with business partners to promote sustainable procurement
activities to fulfill our corporate social responsibilities, including

Our Position on Conflict Minerals

respect for human rights, consideration for occupational safety
and health, and protection of the environment.
WEB

Oiles Group Procurement Policy
https://www.oiles.co.jp/en/files/Oiles_Group_Procurement_PolicyEN.pdf

There is concern that mineral resources (tantalum, tin, tungsten,gold) mined in the Democratic Republic of Congo and thenine adjoining countries are being used as sources of funding
for armed groups that are causing human rights abuses andSupply Chain Management

environmental destruction.

We believe that our products and technologies can contribute

an important issue in the supply chain of the global society. For

to achieving a sustainable society. However, the activities tothat reason, we are investigating the materials and components

make that happen cannot be carried out by the Group alone,used in our products and making sure that minerals of the target

and it is necessary to work on these with the understandingarea are not used.

DATA BOOK

We recognize that dealing with such conflict minerals isand cooperation of our suppliers. We therefore enacted theThis investigation is a part of the risk assessment process

Oiles Group CSR Procurement Guidelines in July 2017. We

based on the due diligence concept presented in the OECD

revise those Guidelines (now the Oiles Group Sustainable

Due Diligence Guidance. Should the use of minerals from such

Procurement Guidelines) according to changes in society’s

conflict zones be discovered, we will take prompt corrective

expectations for sustainability and the environment surrounding

measures to avoid their use.

the company. Through these Guidelines, we share our basic
approach to sustainable procurement and changes in thebusiness environment with our suppliers.
In accordance with the Oiles Group Sustainable
Procurement Guidelines, we request that our suppliers address
matters such as compliance, human rights and labor practices,
the environment, product quality and safety, information
security, and business continuity management. We also
promote two-way communication with our suppliers throughthe Sustainable Procurement Questionnaire.

Stable Securing of Raw Materials
In the event of a large-scale disaster such as a major
earthquake, business continuity throughout the supply chain is
an important issue. In order for the Oiles Group to continue anddevelop its business, it is essential to secure a stable supplyof raw materials. Therefore, in the event of a disaster, we arebuilding a system that can quickly grasp the damage status and47

OILES CORPORATION INTEGRATED REPORT 2023

OILES CORPORATION INTEGRATED REPORT 2023

48

Toward Sustainable Value Creation

Our Business

ESG Initiatives

Data Book

Corporate Data
Corporate Information
Name ofCompany

OILES CORPORATIONMarch 11, 1952

Share capital

8,585 million yen

Registered
Head Office /Fujisawa Head
Office8 Kirihara-cho, Fujisawa-shi,
Kanagawa 252-0811, Japan

URL

https://www.oiles.co.jp/en/

Stock Listing

Tokyo Stock Exchange Prime
MarketLocation(Head Office)Name of Company

Major Business
Segments*2

OILES ECO CORPORATION

Shinagawa-ku, Tokyo

Architectural devices

OILES NISHI NIHON HANBAI CO., LTD.

Nishi-ku, Osaka-shi

Bearings, etc.

Head Office
Sales and manufacturing site
Sales site
Manufacturing site
Distributor

Corporate Data

Established

Consolidated Subsidiaries in Japan (8 companies)*1

OILES HIGASHI NIHON HANBAI CO., LTD. Minato-ku, Tokyo

Bearings, etc.

UNIPLA CORPORATION

Kawagoe-shi, Saitama

Bearings andstructural devices

RIKO KIHARA CORPORATION*3

Nakauonuma-gun,
Niigata

Bearings andstructural devices

LUBY INDUSTRIAL CO., LTD.

Onuma-gun, Fukushima

Bearings andstructural devices

OILES HIGASHI NIHON HANBAI CO., LTD. [Minato-ku, Tokyo and other locations]
UNPLA CORPORATION[Kawagoe-shi, Saitama]

OK INDUSTRIAL CO., LTD.

Moriyama-shi, Shiga

Bearings

RIKO KIHARA CORPORATION[Nakauonuma-gun, Niigata]

MENSHIN ENGINEERING CO., LTD.

Minato-ku, Tokyo

Structural devices

LUBY INDUSTRIAL CO., LTD.

[Onuma-gun, Fukushima]

MENSHIN ENGINEERING CO., LTD.

[Minato-ku, Tokyo]

OK INDUSTRIAL CO., LTD.

[Moriyama-shi, Shiga]

Consolidated Subsidiaries Overseas (8 companies)*1
Location(Head Office)Name of Company

OILES AMERICA CORPORATIONNorth Carolina, USA

Major Business
Segments*2

Bearings

OILES DEUTSCHLAND GMBH

Butzbach, Germany

Bearings

OILES CZECH MANUFACTURING S.R.O.

Kadan, Czech Republic

Bearings

SHANGHAI OILES BEARING INC.

Shanghai, China

Bearings

OILES SUZHOU CORPORATION*3

Suzhou, Jiangsu, China

Bearings

Rayong, Thailand

Bearings

OILES INDIA PRIVATE LIMITED*3

Haryana, India

Bearings

OILES ECO (SHANGHAI) CO., LTD.

Shanghai, China

Architectural devices*1 No subsidiary has submitted a securities registration statement or securities report*2 The name of the segment is listed in the “Major Business Segments” column*3 Corresponds to a specified subsidiary

List of Officers

OILES ECO CORPORATION[Shinagawa-ku, Tokyo and other locations]

OILES NISHI NIHON HANBAI CO., LTD.

[Nishi-ku, Osaka-shi and other locations]Global Network
Manufacturing Sites

Overseas Affiliates

FUJISAWA HEAD OFFICE

Sales & Business Sites[Fujisawa-shi, Kanagawa]

FUJISAWA PLANT

AsiaTOKYO HEAD OFFICE[Minato-ku, Tokyo]

SHIGA PLANT

ChinaTOKYO SALES OFFICE[Minato-ku, Tokyo]

OITA PLANT

SHANGHAI OILES BEARING INC. SALES OFFICE[Fujisawa-shi, Kanagawa]

ASHIKAGA PLANTOILES SUZHOU CORPORATIONOSAKA SALES BRANCH[Chuo-ku, Osaka-shi]

NAGOYA SALES BRANCH[Nakamura-ku, Nagoya-shi]

TOYOTA SALES BRANCH[Toyota-shi, Aichi]

SAPPORO SALES BRANCH[Chuo-ku, Sapporo-shi]

OILES ECO (SHANGHAI) CO., LTD.

[Ota-shi, Gunma][Naka-ku, Hiroshima-shi]

KYUSHU SALES BRANCH[Hakata-ku, Fukuoka-shi]

SEOUL SALES BRANCH[South Korea]

OILES
CO., LTD.
（THAILAND）

India

OILES INDIA PRIVATE LIMITED

EuropeGermany

HAMAMATSU SALES BRANCH [Hamamatsu-shi, Shizuoka]
HIROSHIMA SALES BRANCH

ThailandOILES INDIA PRIVATE LIMITED NEEMRANA PLANTUTSUNOMIYA SALES BRANCH [Utsunomiya-shi, Tochigi]
OTA SALES BRANCHSHANGHAI OILES BEARING INC.

Financial DataOILES（THAILAND）CO., LTD.

Consolidated Affiliated Companies in JapanOILES DEUTSCHLAND GMBH

Czech Republic

OILES CZECH MANUFACTURING S.R.O.

USA

OILES AMERICA CORPORATION

Directors’ Skill Matrix

Directors

Areas of Expertise and Experience (Top Four*)Masami Iida

Yasuji Omura

President, Chief Operating Officer

Outside Director

Kazuharu Tanabe

Rika Miyagawa

Director

Outside Director

Name

Primary Current Position andResponsibilities at the Company

Corporate
Management

Finance,
Accounting

Legal, Risk,
ComplianceTechnology,
R&D,
Production

●

●

●

●

Internationality

●

●

●

●

Masami
Iida

President, Chief Operating
Officer

Director

Kazuharu
TanabeDirector

Yoshikazu Sakairi

SatoshiMiyazakiDirector●●

Yoshikazu
Sakairi

Director, Operating Officer

●

●

●

●

Yasuji
Omura

Outside Director

●

●

●

●

Rika
Miyagawa

Outside Director●●

Satoshi Miyazaki

Director, Operating Officer, General Manager of the Corporate Planning & Administrative Division, and General Manager of Planning Control

Audit & Supervisory Board Member

Katsuhiro Mizoguchi

Tatsuhiro Maeda

Audit & Supervisory Board Member

Outside Audit & Supervisory Board Member

Hiroshi Suda

Takeo Sakakibara

Audit & Supervisory Board Member

Outside Audit & Supervisory Board Member

IT DigitalSociety,
Environment(incl. ESG)●

Non-Financial Data

Sales,
Marketing●●●*Among the areas of expertise and experience of each director, the top four are recognized as particularly important by the company.

49

OILES CORPORATION INTEGRATED REPORT 2023

OILES CORPORATION INTEGRATED REPORT 2023

50

Toward Sustainable Value Creation

Our Business

ESG Initiatives

Data Book

Financial Data
Consolidated Balance Sheet
Subject

Unit: Millions of yen

Unit: Millions of yen

FY2021 End of consolidated FY2022 End of consolidated
accounting period (As of
accounting period (As of
March 31, 2022)
March 31, 2023)

FY2021 End of consolidated FY2022 End of consolidated
accounting period (As of
accounting period (As of
March 31, 2022)
March 31, 2023)

Current liabilities

Current assets

Notes and accounts payable – trade

5,903

6,760

Current portion of long-term borrowings

1,090

1,090

64

94

Accrued expenses

1,843

1,874

Income taxes payable

1,261

387

356

109

Cash and deposits

21,112

23,394

Notes and accounts receivable – trade

19,832

17,854Merchandise and finished goods

4,247

4,844

Work in process

3,439

3,968

3,653

3,726

Accrued consumption taxes

932

1,006

Raw materials and supplies
Other
Allowance for doubtful accounts

△ 54

△ 22

Total current assets

53,162

54,772

Non-current assets
Property, plant and equipment

Lease liabilities

Provision for bonuses

1,192

1,174

Provision for bonuses for directors (and other officers)

127

88

Provision for shareholder benefit program

84

110

Other

1,191

920

Total current liabilities

13,114

12,610

3,893

2,523

Non-current liabilities
11,763

11,429Long-term borrowings

Machinery and equipment, net

5,546

5,740

Lease liabilities

100

124

Deferred tax liabilities

482

694

Tools, furniture and fixtures, net

1,599

1,559

Land

2,882

2,918

Leased assets, net

5466

Construction in progress

867

858

Asset retirement obligations

42

42

Other, net

200

232

Other

582

611

22,91322,805

5,824

4,791

18,93917,401

8,585

8,585

Provision for retirement benefits for directors (and other officers)

72

42

Provision for share awards for directors (and other officers)

113

113

Retirement benefit liability

538

639

Total non-current liabilities
Total liabilities

Intangible assets
Other

349

344

Net assets

Total intangible assets

349

344

Shareholders’ equity
Share capital

Investments and other assets
Investment securities

6,635

6,560

0

—

Long-term time deposits

20

20

Deferred tax assets

305

342

Retirement benefit asset

108

95

Other

2,051

2,067

Allowance for doubtful accounts

△ 16

△ 17

9,105

9,068

32,36732,21885,53086,991

Total investments and other assets
Total non-current assets
Total assets

OILES CORPORATION INTEGRATED REPORT 2023

9,615

9,615

Retained earnings

49,66851,987

Treasury shares△ 4,810△ 5,499

63,05864,688Valuation difference on available-for-sale securities

1,920

1,987

Foreign currency translation adjustment

1,309

2,676

Remeasurements of defined benefit plans

△ 285

△ 403

Total accumulated other comprehensive income

2,943

4,261

588

640

Total net assets

66,591

69,589Total liabilities and net assets

85,53086,991

Total shareholders’ equity
Accumulated other comprehensive income

Non-controlling interests

OILES CORPORATION INTEGRATED REPORT 2023

52

Non-Financial Data

Long-term loans receivable

Capital surplus

Financial Data

Buildings and structures, net

Total property, plant and equipment

Corporate Data

Liabilities

Assets51

Subject

Toward Sustainable Value Creation

Our Business

ESG Initiatives

Data Book

Financial Data

Consolidated Statement of Income
Subject

Consolidated Statement of Comprehensive Income
Unit: Millions of yen

Unit: Millions of yen

FY2021 End of consolidated accounting FY2022 End of consolidated accounting
period (April 1, 2021-March 31, 2022)
period (April 1, 2022-March 31, 2023)

FY2021 End of consolidated accounting FY2022 End of consolidated accounting
period (April 1, 2021-March 31, 2022)
period (April 1, 2022-March 31, 2023)

Subject

59,85362,882

Cost of sales

39,63642,972Gross profit

20,217

19,9097491

Foreign currency translation adjustment

Packing and transportation costs

1,362

1,297

Remuneration, salaries and allowances

5,997

6,140

Provision for bonuses

559

567

Provision for bonuses for directors (and other officers)

130

92

Comprehensive income

Retirement benefit expenses

340

352

(Breakdown)

Provision for retirement benefits for directors (and other officers)

21

17

Provision for share awards for directors (and other officers)

48

42

Selling, general and administrative expenses
Advertising expenses

Welfare expenses

1,352

1,434

Travel and transportation expenses

242

283

Communications expenses

220

209

Supplies expenses

363

379

32

66

Rent expenses

704

723

Depreciation

543

591

Commission expenses

683

763

Provision for shareholder benefit program

98

138

Provision of allowance for doubtful accounts

7

4

Valuation difference on available-for-sale securities

84

67

1,370

1,423

Remeasurements of defined benefit plans

△ 98

△ 117

Total other comprehensive income

1,357

1,373

5,765

5,574

5,686

5,449

79

124

Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

Consolidated statement of changes in equity
FY2022 consolidated accounting period (From April 1, 2022 until March 31, 2023)

Share capital

1,573

1,657
14,853

Dividends of surplus

5,861

5,056

Profit attributable to owners of parent

Disposal of treasury shares

256

436

Insurance claim income

188

102

Changes in ownership interest of parent due totransactions with non-controlling interests

Other

151

209

Total non-operating income

894

1,123

Interest expenses

22

10

Loss on valuation of derivatives

196

402

Other

22

36

Net changes in items other than shareholders’ equity

Balance at end of period

—

—

2,319

△ 689

1,629

8,585

9,615

51,987△ 5,499

64,688
Unit: Millions of yen

Accumulated other comprehensive income

9—Gain on sale of investment securities

56

277

Balance at beginning of period

Total extraordinary income

65

277

Changes during period

150

28

Valuationdifference on
available-for-salesecurities

Foreign currencytranslation
adjustment

Remeasurementsof defined benefit
plans

Total accumulated
othercomprehensive
income

1,920

1,309

△ 285

2,943

Noncontrollinginterests
588

Total net
assets
66,591△ 1,813

Dividends of surplus—

6

Profit attributable to owners of parent

Loss on sales of investment securities

17

43

Purchase of treasury shares△ 1,001

Total extraordinary losses

168

78

Profit before income taxes

6,411

5,929

Disposal of treasury shares

311

Income taxes - current

1,988

1,537

—

Income taxes - deferred

14

190

Changes in ownership interest of parent due totransactions with non-controlling interests

Total income taxes

2,003

1,728

Profit

4,408

4,201

83

69

Loss on valuation of investment securities

Profit attributable to non-controlling interests
Profit attributable to owners of parent

53

OILES CORPORATION INTEGRATED REPORT 2023

4,325

4,132

Net changes in items other than shareholders’equityTotal changes during period
Balance at end of period

4,132

67

1,367

△ 117

1,317

67

1,367

△ 117

1,317

51

2,998

1,987

2,676

△ 403

4,261

640

69,58951

1,369

OILES CORPORATION INTEGRATED REPORT 2023

54

Non-Financial Data

Gain on sale of non-current assets

Loss on disposal of non-current assets

4,132

—

Total changes during period

Extraordinary income

Extraordinary losses

4,132

311

255

Foreign exchange gains

450△ 1,813

311

120

5,730

63,058△ 1,00170

241△ 4,810△ 1,001

227

6,514

49,668Purchase of treasury shares

Dividend income

Total non-operating expenses

9,615

Total shareholders’equityTreasury shares△ 1,813Interest income

Ordinary profit

Retained earnings

Changes during period

14,355Non-operating expenses

Capital surplus

8,585

Balance at beginning of period

Total selling, general and administrative expenses
Non-operating income

Unit: Millions of yen

Shareholders’ equity

Other
Operating profit

4,201

Other comprehensive income

Financial Data

Entertainment expenses

4,408

ProfitCorporate Data

Net salesToward Sustainable Value Creation

Our Business

ESG Initiatives

Data Book

Non-Financial Data

Financial Data

Consolidated Statement of Cash Flows

Environmental Accounting
Unit: Millions of yen

Subject

FY2021 End of consolidated accounting
period (April 1, 2021-March 31, 2022)

FY2022 End of consolidated accounting
period (April 1, 2022-March 31, 2023)

Environmental protection costs in Japan: Fujisawa, Shiga, Ashikaga and Oita.

6,411

5,929

Investments

Expenses

Investments

Expenses

Investments

Expenses

Investments

Expenses

Depreciation

2,981

3,276

I. Business area cost

Sum of (1) to (3)

83.2

622.2

47.0

693.0

30.2

806.7

150.0

868.0

175.6

824.1

Increase (decrease) in retirement benefit liability

△ 86

△ 81

8

△ 30

(1) Pollution prevention

Activities to prevent air and waterpollution, etc.

0.0

47.5

0.0

87.0

0.0

123.6

0.0

93.4

0.0

113.1

Increase (decrease) in provision for bonuses

155

△ 23

83.2

259.2

47.0

293.0

30.2

379.3

150.0

484.5

175.6

497.7

Increase (decrease) in provision for bonuses for directors (and other officers)

39

△ 39

(2) Global environmenActivities to save energy, etc.
tal protection

△ 34

26

(3) Resource circulation

Recycling and waste disposal,
etc.

0.0

315.5

0.0

313.0

0.0

303.8

0.0

290.1

0.0

213.3

II. Upstream/downstream cost

Difference between environmentally-sound products and generalproducts

0.0

5.9

0.0

10.0

0.0

6.1

0.0

8.7

2.3

18.0

Cost relating to maintaining ISO,
III. Administrative cost *2 environmental education, plantingof greenery, beautification, etc.

0.0

137.5

0.0

148.0

0.0

168.5

0.0

170.1

0.0

177.2

Increase (decrease) in provision for retirement benefits for directors (and other officers)

Increase (decrease) in provision for shareholder benefit program
Increase (decrease) in provision for share awards for directors (and other officers)

43△0Increase (decrease) in allowance for doubtful accounts

4

△ 36

1

Investments Expenses *FY2020

FY2021

FY2022

△ 297

△ 375

Interest expenses

22

10

Loss (gain) on disposal of non-current assets

150

28

△ 38

△ 227

IV. R&D cost

―

0.0

24.9

0.0

10.0

0.0

25.2

0.0

52.0

0.0

126.0

V. Social activities cost

Donations to environmentalgroups, cleaning rivers, etc.

7.9

0.1

0.0

1.0

0.0

1.1

0.0

1.2

0.0

1.1

VI. Environmental reme―
diation cost

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Total

91.1

790.6

47.0

862.0

30.2

1007.6150.0

1100.0177.91146.4

Interest and dividend income

Loss (gain) on sales and valuation of investment securities
Decrease (increase) in trade receivables△ 1,510

2,321

Decrease (increase) in inventories△ 1,311

△ 750

316

715

Increase (decrease) in trade payables

△ 53

△ 78

△ 697

Subtotal

6,814

9,991

Interest and dividends received
Interest paid
Income taxes paid
Cash flows from operating activities

325

403

△ 23

△ 11

△ 1,265△ 2,395

5,850

7,987

Cash flows from investing activities△ 484△ 1,002

Proceeds from withdrawal of time deposits

735

982

Purchase of property, plant and equipment△ 2,934△ 2,593

Payments into time deposits

Proceeds from sale of property, plant and equipment

75

32

Purchase of intangible assets

△ 46

△ 75

Purchase of investment securities

△ 508

△9

145

418

△ 697

△ 227

580

329

Proceeds from sale of investment securities
Purchase of insurance funds
Proceeds from maturity of insurance funds
Other
Cash flows from investing activities

△ 10

△ 56

△ 3,142△ 2,200*1 Includes depreciation cost for equipment, personnel cost and general expenses*2 Includes environment-related screening and registration fees
* Figures for prior years have been retroactively adjusted to improve accuracy

Environmental protection results (non-consolidated)
FY2018

Input

△ 429

—

△ 1,602△ 1,812Dividends paid to non-controlling interests

△ 38

△ 73

Purchase of treasury shares△1△ 1,001

Purchase of shares of subsidiaries not resulting in change in scope of consolidation
Dividends paid

Proceeds from disposal of treasury shares

220

274

△ 107

△ 89

△ 3,363△ 4,071405

544

Net increase (decrease) in cash and cash equivalents

△ 249

2,259

Cash and cash equivalents at beginning of period

20,587

Repayments of lease liabilities
Cash flows from financing activities
Effect of exchange rate change on cash and cash equivalents

Cash and cash equivalents at end of period

OILES CORPORATION INTEGRATED REPORT 2023

Electricity (thousand kWh)

24,39824,99322,600City gas (thousand m3)

1,878

1,900

1,727

LPG (t)53

167

Kerosene (kl)123

1

20,337

FY2022

208

YoY (%)

20498

24,857

24,880

100

2,095

2,162

103

199

217

318

146

1

1

0

30

Heavy oil (kl)

0

0

0

0

0

ー

Gas oil (kl)

11

12

11

12

12

103

Gasoline (kl)

18

9

7

36*

38

106

Water resources (thousand m3)

165

152

141

168

164

98

15,672

14,562

12,947

15,417

14,00991

CO2 (t-CO2)

OutputFY2021

180

61

57

46

35

34

97

Total waste (t)

1,652

1,802

1,626

1,623

1,420

87

Recycled (t)

1,605

1,750

1,522

1,537

1,372

89

Disposed (t)

47

52

104

86

48

55

*Also includes sales sites starting in FY2021

Economic benefits of environmental protection
FY2018FY2019FY2020

FY2021

FY2022

YoY (%)

Gain on sale of valuables converted from waste materials (millions of yen)

41

33

30

31

33

105

20,337

Cost associated with recycling waste materials (millions of yen)

34

34

35

35

24

70

22,597

Cost associated with disposal of waste materials (millions of yen)

15

20

20

21

26

122

OILES CORPORATION INTEGRATED REPORT 2023

56

Non-Financial Data

△ 1,369

FY2020205

Class I designated chemical substance (t)△ 1,404

FY2019188

Total production by domestic plants (billion yen)

Cash flows from financing activities
Repayments of long-term borrowings

Financial Data

37

Other

Increase (decrease) in accrued expenses

55

Major initiatives

FY2019Corporate Data

Profit before income taxes

Cash flows from operating activities

FY2018

Unit: Millions of yen

Environmental
protection cost
categoryToward Sustainable Value Creation

Our Business

ESG Initiatives

Data Book

Non-Financial Data

Employee demographics

Environmental data (Oiles Group)
FY2018CO2 Emissions & Intensity

FY2021

FY2022

Total (t-CO2)

31,96930,29727,36930,89329,242

Japan (t-CO2)

21,71420,751

18,437

21,171

19,491

Overseas (t-CO2)

10,255CO2 intensity (t-CO2 / millions of yen)

0.521

0.504

0.517

0.516

0.465

Total (t)

4,356

4,187

3,931

4,121

4,008

9,546

8,932

9,722

9,751

Japan (t)

3,206

3,110

2,785

2,922

3,172

Overseas (t)

1,150

1,077

1,146

1,199

836

Aggregated Waste Emission andIntensity (tons / millions of yen)

0.071

0.070

0.065

0.069

0.064

Total (1,000 m )

212

201

190

202

199

Japan (1,000 m3)

169

161

150

177

171

Overseas (1,000 m3)

43

40

40

25

28

3

Water UsageFY2020* Figures for prior years have been retroactively adjusted to improve accuracy

Employees (Oiles Group)
FY2018

Number of employees (consolidated)

Number of employees in Japan (consolidated)

FY2020

FY2021

FY2022

2,633

2,591

2,517

2,506

2,512

Permanent

2,092

2,085

2,046

2,035

2,030

Temporary

541

506

471

471

482

Total

1,714

1,701

1,670

1,668

1,674

Permanent

1,289

1,285

1,276

1,269

1,277

Temporary

425

416

394

399

397

1,106

1,105

1,083

1,070

1,080

Permanent

794

794

789

773

785

Temporary

312

311

294

297

295

Total
Number of employees (non-consolidated)

FY2019Total

Corporate Data

Aggregated waste emission and intensity

FY2019*As of the end of March 2023

Employment status of regular employees (non-consolidated)
FY2018

Number of employees

Average age

Number of new graduate hires

Number of mid-career hires

Number of rehired employees

FY2020

FY2021

FY2022

794

794

789

773

Male

702

703

699

683

785
682

Female

92

91

90

90

103

Total

42.2

42.4

42.7

42.8

42.4

Male

42.6

42.7

43.0

43.2

42.9

Female

39.3

40.0

39.8

39.9

39.3

Total

18.8

19.1

19.4

19.6

19.0

Male

19.2

19.4

19.8

20.0

19.6

Female

16.3

16.9

16.8

16.7

15.4

Total

22

20

22

16

24

Male

19

16

15

15

18

Female

3

4

7

1

6

Total

16

7

1

4

25

Male

10

6

0

3

19

Female

6

1

1

1

6

Total

9

7

4

18

18

Male

8

7

4

16

17

Female

1

0

0

2

1

Financial Data

Average years of service

FY2019Total*As of the end of March 2023

Non-Financial Data57

OILES CORPORATION INTEGRATED REPORT 2023

OILES CORPORATION INTEGRATED REPORT 2023

58

Toward Sustainable Value Creation

ESG Initiatives

Diversity (Oiles Group)

Net sales (consolidated)
FY2018Percentage of female
employees

FY2019FY2020

FY2021

FY2022

Consolidated (%)

24.2

25.6

24.7

24.8

24.6

Domestic group (%)

13.7

13.9

13.7

13.9

15.0

Non-consolidated (%)

11.6

11.5

11.4

11.6

13.1

Consolidated (%)

15

17

15

17

18

Domestic group (%)

2

3

3

5

5

Non-consolidated (%)

0

1

1

3

4

(millions of yen)
80,00070,00061,34360,14459,853

(%)
10.0
9.8

8.2

62,882

52,954

8.0
5.9

6,000

5,011

5.5

5.0

5.6

6.1

0.9

1.2

1.2

2.0

2.1

Non-consolidated (%)

0.0

0.7

0.7

1.9

2.7

Total

9

7

4

18

18

10,000

Male

8

7

4

16

17

0

Female

1

0

0

2

1

Percentage of employees with disabilities (non-consolidated)

2.0

2.2

2.1

2.1

2.1

5,056

4,000

30,000

5,861

4,728

40,000

5.5

8.0

7.9

8,000

50,000Consolidated (%)

Number of rehired employees (non-consolidated)

Ratio of operating profit to net sales(millions of yen)
10,00060,000

Domestic group (%)

Percentage of female
managers (consolidated)

Operating profit / Ratio of operating profit to net sales (consolidated)■ ■ Operating profit

6.0

Corporate Data

Number of female managers (consolidated)

Data Book

Financial Highlights

Non-Financial Data

Percentage of female
employees (permanent
employees)

Our Business

4.0

3,115

20,000
2,000

FY
2018

FY
2019

FY
2020

FY
2021

FY
2022

2.0

0

FY
2018

FY
2019

FY
2020

FY
2022

FY
2021

0.0

*As of the end of March 2023

Profit attributable to owners of parent / Return on equity (ROE)(consolidated)

Work-life balance (non-consolidated)
FY2018

Status of childcare leaveand shortened working
hours taken

Male
Number of employees
who took childcare leave Female

FY2020

FY2021■ ■ Profit attributable to owners of parent

FY2022

0.0

0.0

11.0

17.0

15.0

4.0

3.0

5.0

5.0

2.0

0

1

0

1

0

Male

10

10

9

9

10

1,820.5

1,777.4

1,758.6

1,750.6

1,733.1

Average number of paid holidays taken (days)

14.5

14.9

15.2

15.6

15.9

Average rate of paid holidays taken (%)

76.0

73.1

78.7

80.4

83.2

Average monthly overtime (hours)

10.3

8.3

6.1

7.5

7.2

FemaleAnnual average of total working time (hours)(millions of yen)
8,000

(%)
8.0

6.8

6.4

6.1

5.8

6,000

6.0
4.2

4,000

■ ■ Net assets

Return on equity (ROE)

3,738

4,132

2,000

2.0

FY2018FY201930.1

Annual training time per person (hours)

FY202032.2

FY2021

31.3

FY
2018

FY
2019

69,58966,591

62,55760,642

79.3

77.2

76.4

74.5

74.1

80.0

60,00060.0

40,00040.0

20,000

20.0

4.0

3,432
2,525

0

80,000(%)
100.059,8064,325*As of the end of March 2023

Human resource development (non-consolidated)

Equity ratio(millions of yen)
100,000

FY
2020

FY
2021

FY
2022

0

0.0

FY
2018

FY
2019

FY
2021

FY
2020

FY
2022

Financial Data

Number of employees
who shortened working
hours for childcare

FY2019Net assets / Equity ratio (consolidated)

0.0

FY202233.0

34.5*As of the end of March 2023
* For permanent employees

R&D expenses / Ratio of R&D expenses to net sales (consolidated)■ ■ R&D expenses

Health and safety (non-consolidated)
FY20183

Severity rate of lost-worktime injuries*

FY2021

FY2022

Serious (absent fromwork for 4 days or
longer)

0

2

1

1

3

4,000

Minor (absent from workfor 3 days or less)

2

1

4

4

2

3,000

10

7

7

5

7

OILES

1.01

1.53

2.61

2.66

2.67

Manufacturing industry
average*2

1.20

1.20

1.21

1.31

1.25

OILES

0.00

0.01

0.01

0.00

0.08

Manufacturing industry
average*2

0.10

0.10

0.07

0.06

0.06

Not absent from work
Frequency of lost-worktime injuries*1

FY2020

(%)
5.0

4.7
4.4

■ Capital expenditures

Ratio of R&D expenses to net sales

4.3

4.1

4.0

4.0

(millions of yen)
6,000

5,316

5,000

4,284

4,000
2,698

2,573

2,472

2,445

2,527

3,442

3.0
3,000

2,000

■ Depreciation

Non-Financial Data

Number of industrial accidents

FY2019(millions of yen)
5,000

Capital expenditures / Depreciation (consolidated)

2,709

2,696

3,397
2,857

2,823

2,981

3,276

2.0
2,000

1,000

0

1.0

FY
2018

FY
2019

FY
2020

FY
2021

FY
2022

0.0

1,000
0

FY
2018

FY
2019

FY
2020

FY
2021

FY
2022

*1 Frequency: Represents the frequency of industrial accidents based on casualties per actual working time of 1 million hours*2 Based on the results of the Survey on Industrial Accidents by the Ministry of Health, Labour and Welfare*3 Severity rate: Represents the severity of industrial accidents based on labor days loss per actual working time of 1 million hours

59

OILES CORPORATION INTEGRATED REPORT 2023

OILES CORPORATION INTEGRATED REPORT 2023

60