Long-term Management Vision“ Kyokuto Kaihatsu 2030 ”

Financial Performance Vision
Net sales: 200 billion JPY

Operating income margin: 10% or more

ROE: 10%

Sustainability Vision[Environment] Manufacturing Vision(Compared to FY 2013)

Recycling Rate: Maintained at
99.0% or higher

It has been predicted that global warming will raise thetemperature of the earth by up to 4 degrees Celsius over thenext 100 years.
In the company’s efforts toward the realization of carbon
neutrality in 2050*, the Group will continue to promote
initiatives toward de-carbonization in its products, services,and manufacturing, centered on factories that consume
large amounts of energy.

Effective use of existing resources will lead to greatersuppression of environmental destruction such as new
resource mining and deforestation.
The Group will reduce the amount of waste generated in its
business activities, as well as further promoting recycling
and the achievement of zero emissions across the entire
Group.

CO2 Emission Reduction Rate: 38% *1

Banning toxic chemicals, andgreater suppression on plastic use(Zero landfill waste)

Decarboni
zationResource
SavingEcosystem
Conservation

Chemical substances that are difficult or cannot be
returned to the environment have a great impact not only
on we human beings but also on a variety of ecosystems.
The Group is working to prohibit the use of hazardous
chemical substances in products and at the same time is
promoting the use of less plastics in its manufacturing.

*Carbon Neutral: A total zero rating calculated from CO2 emissions minus absorption andremoval mechanisms[Governance]
Organizational Vision[People] Society Creation Vision
Management of risks in humanrights violations
HumanRights

Corporate supply chains* are expanding all over the world
as globalization progresses.
As a result, there are risks of increased human rights
compliance violations such as unfair working conditions,
dangerous working environments, harassment, anddiscrimination.
The Group continually works to manage and combat therisks against human rights at all stages of its business.

Work-life balance satisfaction 70% *2WorkLifeBalanceOver time, the positioning of work against life has changed
significantly. A better balance between work and life createsa win-win-win relationship between individuals, companiesand society.
The Group will work to further develop systems and provide
in-house training to realize more flexible working styles inorder to achieve a more balanced work and life relationshipof all its employees including greater take-up of annual paid
leave.

There is a requirement for companies to work at managing
risks in various aspects such as quality, environment, andRisk
occupational safety, as well as being able to deal with
Response sudden risks that may lead to business suspensions such as
natural disasters, infectious diseases, and conflicts.
The Group works to identify risks related to business
continuity and strives to strengthen the risk control system
and improve organizational strength through its management
systems (PDCA cycle).
*BCM: A management method for companies to continue their business and continue toprovide products and services when risks occur.

*Supply chains: A series made up of product flows such as procurement, manufacturing,inventory management, transportation, and sales

Female ratio within the number of hires(domestic) 20% *3

Obtained ISO 45001 Certification
The health and safety of working persons are essential
factors for business progress.
Safety and Due to the diversification of working persons and changes inemployment patterns, the risk of injuries and other disasters
Healthis also increasing.
The Group will continue to work on improving the safety andhealth of the workplace and the health of its employees
through the PDCA cycle, and further promote the creation ofa workplace where everyone can continue to work in a safe
and sound environment.

Strengthening risk management systems
and building systems in BusinessContinuity Management (BCM*)

Diversity

With the progress of globalization, along with thedeclining birthrate and aging population, companies arefurther required to take advantage of the abilities andindividualities of diverse people such as women, theelderly, foreigners and people with disabilities in order toinnovate.
The Group will continue to create an environment wherevarious people can work in a rewarding and lively manner
and will further promote the creation of a workplace
where growth can be achieved on an individual level.

Sustainable Procurement Promotion
In order to realize a sustainable society, it is essential toconsider not only the activities within the businessestablishment, but also the entire value chain from theSustainable procurement of materials and energy, to the use andProcurement disposal of its products and services.
When selecting materials and energy to be used for
products and services, the Group will work to consider, notonly costs but also the impact on the environment and thepeople concerned.

*1: Basic unit compared to 2013 in Kyokuto Kaihatsu Kogyo Co. Ltd, Nippon Trex Co., Ltd., Kyokutokaihatsu Parking (CO2 emissions (t) / sales (million JPY))*2: FY 2021 results: Kyokuto Kaihatsu Kogyo Co. Ltd 58.1% (Evaluation based on results from an employee awareness survey)*3: Average results for the last 3 years: Kyokuto Kaihatsu Kogyo Co. Ltd 11.8%