Yodogawa Steel Works, Ltd.

124 Term ReportthApril 1, 2022-March 31, 2023

YODOKOREPORT

Securities code: 5451

To Our Stakeholders

1948 Started manufacture ofcast iron and steel rolls
1940 Started manufacture ofgalvanized steel sheets

1935
Established the company in Osaka (at the locationof the current Osaka Plant) on January 30 for the
production and sale of steel sheets and otherproducts

1935

1954
Constructed Kure Plant
for manufacturing coldrolled steel sheets andother products

1951
Constructed Izumiotsu
Plant for manufacturing
steel products

1951

1964 Started manufacture of
pre-painted steel sheets

1972 Constructed Ichikawa Plant for manufacturing coldrolled steel sheets and other products

1963
Started operating a continuous
hot-dip galvanized steel sheet line

1965
Started manufactureand sales of building
materials

1965

1970
Started manufactureand sales of exterior
products

1986
Started manufacture of galvalume steel sheets

1994 Made Sheng Yu Steel Co., Ltd.
(Taiwan) a subsidiary1999 Established PCM Processing (Thailand) Ltd.
in Thailand

1970

1994

2007
an
Started sales of chromate-freeindustry
pre-painted steel sheets forfirstroofing and siding

2011
Established YodogawaShengyu (Hefei) High-Tech
Steel Co., Ltd. in China

2020
Established Fukui
Yodoko Co., Ltd.

2011

A History Shaped by
the Constant Pursuitof Value Creation

Yodogawa Steel Group Corporate Philosophy
Basic Philosophy

Create Value with New Originality
The basic philosophy of the Yodogawa Steel Group
is to “Create Value with New Originality,” centeredon surface-treated steel sheets with the goal ofbeing a valued, needed company that earns thetrust of society.
Business Philosophy
Photo was taken at the Yodoko Guest House.

Satoshi Nitta

President and Representative Director

1

Win the trust of customers and shareholders andcreate the functional capabilities expected by them.
Aim to be the best manufacturer to meet the broadneeds of society. Grow by taking on the challenge
to innovate and by expanding based on thecreativity of each employee.
Work in harmonious coexistence with society andthe natural environment.

We would like to take this opportunity to express ourappreciation for your support.
The overseas business climate for the Yodogawa SteelGroup is expected to remain unclear. Even though the
Chinese economy is anticipated to recover following theabolishment of its zero-COVID policy, concerns remainover an economic downturn caused by the effects ofthe prolonged Ukraine-Russia conflict and monetary
tightening in the United States and Europe.
Furthermore, signs of financial instability are suspected.
In Japan, the trend of rising prices is expected tocontinue and the Bank of Japan’s monetary policy trendneeds to be closely monitored. The economy isexpected to be significantly affected by the
aforementioned global risk factors.
In the steel markets in Japan and other countries, while
prices of raw materials used for steelmaking as well as
cost of resources and energy are expected to remain at
a high level, there is additional geopolitical risks such as

the situation in Russia and Ukraine and concerns over
the Taiwan emergency. Due to this situation, the steelmarket, including the balance between supply anddemand, is likely to remain unstable for the time being.
An unpredictable and unstable environment for demandand expenses is expected to continue in every region
where group companies operate. As a result, market
conditions are expected to remain very difficult.
To succeed in this uncertain business climate, all groupcompanies are focusing on speed and agility
concerning both sales and production activities to
respond to rapidly changing market conditions. At thesame time, by steadily implementing the newly
formulated “Yodogawa Steel Group Medium-Term
Management Plan 2025,” we will work to strengthen ourearning power.
We sincerely ask for your continued support andguidance.
June 2023

2

1

Business segment sales

Our Position in the Iron and Steel Industry

Real Estate& Other

Blast furnace steelmaking

Steel Sheet Segment

1 Raw materials

1

Pickling

2

Cold rolling

3

Continuous galvanizing

4

1.6%

Rolls

1.3%
Steel Sheet-related
Business

Continuous color coating

Limestone

Pre-painted
steel sheets

Coal

Steel Sheet
Segment

Iron ore

2 Blast furnaceand casting

4 SteelGalvanizedsteel sheets

Cold rolled sheets and strips

Building Materials Segment

1

2

Molding/
processing and assembly

Exterior Products Segment

Building materials

1 Molding/
processing and assembly

Hot rolled
steel sheets

Steel Rolls Are Instrumental in a Variety ofIndustrial Fields
With products that range from rolls for the steel
industry fabricated by one of the world’s largest
centrifugal casting facilities to equipment for thepaper industry, including rolls and peripheral
equipment, Yodogawa Steel is one of Japan’s
leading roll manufacturers.

3

Steel Sheet-related

95.8%

Supplying Products that Perfectly
Match Customer Needs
High-quality steel sheets incorporating years ofaccumulated technologies are used for a variety of industrial purposes, such as construction and the manufacture of home appliancesand housing equipment. Through the development of highly functional, value-added, andenvironmentally friendly products, Yodogawa
Steel meets the demands of customers.

An appliance using Yodoko steel sheets

A building interior with Yodoko panels

A building with YODO fire-proof panel
Grand Wall

YODO-Garage Raviege Ⅲ

Building Materials and Exterior Products:
Part of Our Society and Daily Lives

Construction

Building
Materials & Exterior
Products Segment

Exterior products

Roll Business(Fiscal year ended March 31, 2023)

Gratings

We develop and supply distinctive products in a variety ofbusiness sectors by focusing on our key elements of security,
safety, the environment, and beauty.

3 Steelmaking

220,314 million yen

1.3%

What is Yodoko?

Grating Business

From molding and processing technology
gained through our integrated steel sheet
manufacturing, to our nationwide sales andservice network, we make the most of years ofexperience to produce a variety of pioneering
products that include steel-sheet building
materials and exterior products.

Yodogawa Gratings Contribute toa Safe and Secure Environment

Gratings are an integral part of the roads, parks,and other infrastructure that are vital to public
safety and security. We supply a range of
products from the standpoint of everyday
activities that are environmentally friendly, peoplefriendly, and safe.

Real Estate &Other Businesses
The Real Estate Business
manages and effectively
uses properties owned by
Yodogawa Steel by leasingbuildings and operating
parking lots.
4

2

The Production and Sales Frameworks Behind Our Momentum

Japan
Yodogawa Steel Works, Ltd.

What is Yodoko?
Yodogawa Steel Works, Ltd.
Sales bases
Production bases●

Net sales by country and region
Southeast Asia

Other

North / Central /South America

Japan

0.4%

0.5%
●

97.8%

1.2%

●

145,355●●●

million yen

China
●
■

●

(Fiscal year ended March 31, 2023)
A well-balanced network of
production bases in Japan and 15 sales officesthat maintain close relationships with customers
and with the region that each office serves

Japan
Net sales by country and region●■

Thailand●■■Taiwan

North / Central /South America

1.1%

Other

Southeast Asia

0.4%

3.6%
4.8%

million yen

Japan

17.1%

5

TaiwanSheng Yu Steel Co., Ltd.
(SYSCO Taiwan)

Net sales by country and region
Oceania

4.4%

No. of employees by region
Japan

1,525

China

257
Taiwan

500

●
●

●

2,395

(Fiscal year ended March 31, 2023)

TaiwanChina
Yodogawa-Shengyu (Hefei)
High-Tech Steel Co., Ltd.
(YSS China)

Net sales by country and region
Other

North /
Central /South America

China

0.3%

95.7%

Southeast
Asia

4.0%

69.3%

12,408million yen

53,732(Fiscal year ended March 31, 2023)

113

1.0%

3.2%

66.8%

Thailand

Other

Southeast
Asia

220,314

TaiwanStarting ahead of ourcompetitors, we established awell-balanced sales andproduction network in Asia anduse this infrastructure to supply
high-quality surface-treated steel
sheets to customers worldwide.

●■●

Oceania

6.2%

China &
Hong Kong

●

●

●
■

●
■

million yen(Fiscal year ended March 31, 2023)

Thailand

22.2%(Fiscal year ended March 31, 2023)

SYSCO Taiwan
has business operations with deep roots in
Taiwan, including a listing on the Taiwan
Stock Exchange and strong brandrecognition in Taiwan.

PCM Processing (Thailand)Ltd. (PPT Thailand)

Net sales by country and region
Other

Southeast
Asia

0.1%

99.9%

5,193
million yen(Fiscal year ended March 31, 2023)

6

3

Shareholders
andinvestors

The Value Creation Process

What is Yodoko?

We aim to contribute to sustainable social progress and to growas a company through the creation of value for security, safety,
the environment, and beauty.
The Yodogawa Steel Group’s goal is sustained growth by utilizing speed andagility based on our Corporate Philosophy for business operations and taking
full advantage of the Group’s collective strengths.

Social challenges
Basic Philosophy
A declining and aging
population with a lowbirth rate
Depletion of natural
resources
Disaster mitigationand preparedness
Create a sustainable
societyMore diverse andcomplex customer
needs
Corporate integration
and restructuring (ironand steel industry)
Increase of tradeprotectionism
Faster globalizationand intensifying
competition

7

Strengths of the Yodogawa
Steel Group

Create Value with New Originality

Long-Term Vision

Creating Value throughBusiness Activities
For more
information see

Yodogawa Steel Group Medium-Term
Management Plan 2025
Basic
PolicyThe SAKURA 100
Our Goals

Speed and Agility

1 SalesA sales framework in Japanand other countries closely
tied to local customers

3 Procurement
Flexible procurement due
to our absence of affiliations
with any corporate groups

Business Activities
Steel Sheet-related Business
Steel Sheet Segment
Building Materials & Exterior
Products Segment

2 Technology
Technical capabilities for
precisely meetingcustomers’ needs

4 Production
Well-balanced production
network in Japan andother countries

For more
information see

An agile company able toadapt to a variety ofchanges in market
conditions
An ambitious company
that takes on thechallenge of entering new
business fields
A successful company
that is admired andrespected worldwide

3-6Roll Business

Real Estate & Other Businesses

Take full advantage of the
Yodogawa Steel Group’s
key strengths of speed
and agility as well as thecollective power of theGroup
Focus on building afoundation for our LongTerm Vision

Basic
Strategy

Build an even stronger
profit structure•	Expansion of existing businesses formore growth•	Further upgrade manufacturing skills

Take on the challengeof entering new
business fields•	Start new businesses based on
existing business

pages

Grating Business

17-18

pages

We created a logo for The SAKURA 100,
the Yodogawa Steel Group’s long-term
vision (announced in March 2017), withthe objectives of increasing awarenessof the vision at every group company
and deepening our stakeholders’
understanding of the vision.

Product development, manufacturing,sales and all other activities place priority
on safety, security, the environment, andbeauty with the goal of providing diverse
types of value to stakeholders.

Security

SafetyEnvironment

BeautyThe Sustainable
Development Goals
The Sustainable Development Goals wereadopted in September 2015 at the United
Nations Sustainable Development
Summit, which was attended by morethan 150 world leaders. The SDGs consistof 17 goals and 169 targets.
The Yodogawa Steel Group is determined
to make an even greater contribution toaccomplishing the SDGs by usingbusiness activities to create value.

•	Maximize corporate value byachieving sustainable growth•	Provide stable, continuous
returns to shareholders

Customers
andbusiness
partners•	Supply safe and reliable products
and services that meet the needsof customers and society•	
Use our more than 80 years ofexperience to build business
partner relationships rooted inmutual trust

Employees• P rovide a safe and secureenvironment conducive to
productive work•	Develop a team of people with
distinctive strengths who are
constantly growing and taking
on new challenges

Establish a foundation
for sustainable
operations

Societyandnature• M ake substantial investments andimprove capital productivity for moreprogress and growth•	
Increase training programs for next
generation and organizational strength• Coexist with all of our stakeholders•	Contribute to lowering theenvironmental impact by
supplying environmentally
responsible products•	Contribute to social
infrastructure by supplying
attractive products8

4Financial and Non-financial Highlights

What is Yodoko?

Net sales, overseas net sales (consolidated)
Net sales(Millions of yen)

220,000

201,655
167,419

154,066

Overseas net sales

220,314250,000

201,125
167,291
167,671

145,963

226,004
180,296

191,937251,057
201,906

45,35820,00010,000(120th term)

FY3/20(121st term)

FY3/21

FY3/22(122nd term)(123rd term)

FY3/23

17,916
14,349
9,791
7,880
6,257

(120th term)(121st term)

FY3/21(122nd term)

FY3/22(123rd term)

FY3/23

FY3/19(124th term)(120th term)(120th term)(121st term)(122nd term)(123rd term)

150,236

150,037

179,673

Net income per share

(Yen)

380

339

70

(121st term)

FY3/21(122nd term)

FY3/22(123rd term)

FY3/23(124th term)

Net assets per share (consolidated)

Dividends per share

(Yen)

367

6,400

(120th term)(121st term)

3,660

3,993

3,536

5,115

5,644

5,907

6,223

5,651
4,876

102

FY3/21(122nd term)(123rd term)

FY3/23(120th term)(124th term)(120th term)(121st term)

FY3/21(122nd term)* Yodogawa Steel started applying Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan (ASBJ) Statement No. 29, March 31, 2020) at the beginningof the fiscal year that ended in March 2022. Significant financial indicators for the fiscal year that ended in March 2021 have been revised to incorporate this new standard.

FY3/22(123rd term)

FY3/23(124th term)

FY3/22(123rd term)

FY3/23(124th term)

7.6

9.4

10

11

FY3/202020

2021(121st term)

FY3/21(122nd term)

FY3/22(123rd term)

Total dividends

2,077(124th term)

3,236

2018

5

Investment
Environmental protection expenses
CO2 emission reduction(Millions of yen)

800

670

(120th term)(121st term)

644
19

FY3/21(122nd term)

FY3/22

FY3/23(123rd term)(124th term)

0

26

23

63

26

24

23

12

FY3/19FY3/20FY3/21

FY3/22

FY3/23(120th term)

(%)

40

20

18

10
0

(Year)

702

623

556

0

2022

Environmental protection expenses, CO2 emissions(reduction vs. fiscal 2013 emissions*) Consolidated (Japan)

2,185

295

FY3/202019*Regular employees only

1,063

FY3/19

10

9.5
17

0

FY3/23

Treasury shares acquired

2,969
2,088

(Hours)

4

3,300

0

FY3/20

8.9

12

400

FY3/19FY3/21(122nd term)

No. of employees using the child care leave system
Average monthly overtime(People)

2,224

1,100

111

1,191

0

437

FY3/22

FY3/20(121st term)

8

3,200

75

1,206

No. of employees using the child care leave system,
average monthly overtime* (non-consolidated)
8.0

Total dividends, treasury shares acquired (non-consolidated)

0

FY3/203,908(Millions of yen)

5,096

0

FY3/19Depreciation and amortization(120th term)

24

FY3/19

2,200

131
70

(120th term)

FY3/20FY3/19(124th term)

0

FY3/19(124th term)

215

211

(123rd term)

Capital expenditures

1,233

0

FY3/23

8,740

5,000

Non-consolidated

2,395

2,392

2,381

1,204

1,195

6,911

100,000

FY3/23

Net income per share, dividends per share (consolidated)(122nd term)

FY3/22

10,0002,241

FY3/22(121st term)

FY3/21(Millions of yen)0

FY3/21

FY3/20-12,630

200,000

0

FY3/20-4,672(Millions of yen)

170,296

2,431

2,422

-3,160Capital expenditures, depreciation and amortization (consolidated)

162,472

2,500

1,250

-1,985

Shareholders’ equity (consolidated)

17,686

12,665
10,5939,789

FY3/20Consolidated(People)5,927 4,519-20,000

FY3/19(124th term)

Operating profit
Ordinary profit
Profit attributable to owners of parent

20,000FY3/1917,336
14,175-10,645(Millions of yen)

7,425
5,879 6,254 5,489
3,862

1,232

No. of employees (consolidated, non-consolidated)

Cash flows from investing activities

17,14912,476-10,000

46,230Operating profit, ordinary profit,
profit attributable to owners of parent (consolidated)

9,829

8,273 9,505-1,4070

FY3/19Cash flows from operating activities
Free cash flow

(Millions of yen)

0

73,076

72,91009244,671

Net assets

125,000

52,516190

Total assets(Millions of yen)

209,465

110,000

10,000Cash flows from operating activities, cash flows frominvesting activities, free cash flow (consolidated)

Total assets, net assets (consolidated)(121st term)(122nd term)(123rd term)

0(124th term)* The Japan Iron and Steel Federation is currently implementing an action plan for achieving carbon neutrality.
During phase Ⅱ, which goes from FY2021 to FY2030, the emphasis is on energy conservation. The goal is to
use these measures to cut CO2 emissions from energy production by 30% compared with the FY2013 level.

10Interview with Top Management

Use new ideas to increase public awarenessof Yodogawa Steel and make products morecompetitive and increase sales.
There was considerable instability in the Japanese and global
economies during the fiscal year that ended in March 2023.
The main reasons are high prices of energy and resources
due to the Ukraine conflict and concerns about the risk of an
economic downturn caused by rising interest rates in Europe,
the United States and other regions.
The Yodogawa Steel Group’s net sales in the fiscal year
increased 9.3% to 220,314 million yen. Operating profit
decreased 11.7% to 12,665 million yen, ordinary profit
decreased 1.3% to 17,686 million yen, and profit attributableto owners of parent increased 8.2% to 10,593 million yen.
Everyone at the Yodogawa Steel Group is dedicated tocontinuing to take on new challenges in order to increaseawareness of the group. Our goal is to be resilient to changes
in market conditions as we remain consistently profitable.

Satoshi Nitta President and Representative Director
Photo was taken at the Yodoko Guest House.

11

Q
A

What is your assessment of the Yodogawa
Steel Group’s performance in the fiscal year
ended March 31, 2023?
Sales increased because of revisions of selling
prices.

In the fiscal year ended March 31, 2023, the Japanese andglobal economies were unstable because of the rising cost ofresources and energy caused by the Ukraine crisis.
Despite these difficulties, our sales were higher than in theprevious fiscal year. One reason is measures in Japan to revise
the prices of steel sheet products. Prices were revised mainly
for steel sheet products, with the understanding andcooperation of customers, in order to reflect the higher cost of
primary and secondary materials used to manufacture theseproducts. Although there were some difficulties in the fiscal
year’s second half, we were able to earn the understanding of
our customers overall. I believe that another reason for therevenue growth is the growing recognition of the value of
independent steelmakers like us as the reorganization ofJapan’s steel industry continues.
Outside Japan, the performance of PCM Processing (Thailand)Ltd. (PPT) was stable. In Taiwan, Sheng Yu Steel Co., Ltd.
(SYSCO) performed well early in the fiscal year but the sales
volume decreased as customers held back on purchases
during the remainder of the fiscal year. The volume of SYSCO’s
exports also decreased despite many sales activities targetingcustomers in North America as exports to the United States
resumed. Sluggish global markets were responsible for the
downturn in sales volume. In China, lockdowns in Shanghai
and other major cities in this region during the first half andother events brought down the sales volume of YodogawaShengyu (Hefei) High-Tech Steel Co., Ltd. (YSS), whichbecame profitable in the previous fiscal year with an operating
profit. In this fiscal year, one of our highest priorities is taking
steps to achieve a recovery in the performance of our overseas
subsidiaries, especially at SYSCO in Taiwan.

YODO Roof protects the library complex of the city of Sanjo.

Q
A

What are the highlights or key points about
the performance of the business segments
and new products?
Rebuilding YODO Roof manufacturing
operations has produced benefits.

In the Steel Sheet Segment, we started selling YODO HyperGL
Color EXE Eguze pre-painted steel sheets in May 2022. We
guarantee the coating for 15 years. In the past, only steel
sheets with fluorocarbon polymer coatings could beguaranteed against cracking, peeling and discoloration. With
this new product, we can guarantee sheets with a polyester
resin coating. In part because of the continuing difficulty ofprocuring fluorocarbon polymer for coatings, I expect that thisnew sheet will become the leader in the market for exterior
pre-painted steel sheets.
In the Building Materials & Exterior Products Segment, westarted collaborating with BEAMS Co., Ltd. for its BEAMSDESIGN brand, and in December 2022 started reservation
sales of the new YODO Monooki Erumo BEAMS DESIGN
storage shed. This shed features a design based on the themeof a military storage container.
At the end of March 2023, we started sales of YODO Roof 157
Secure, a high-strength corrugated metal roof panel. This
product features increased strength for connections and the12Interview with Top Management

roofing material itself to withstand typhoons and heavy rain.
A stylish appearance is another feature of this new product.
We plan to increase sales of this product during the fiscal year
ending in March 2024.
About two years ago, we started a reexamination of our YODO
Roof operations that extended from production to delivery.
This resulted in a restructuring of this business with theunderstanding of customers. In the past fiscal year, I believe
this step produced significant benefits.

Q
A

What were the major accomplishments of
the Medium-Term Management Plan 2022?
The consolidated ordinary profit was more than
9 billion yen in all three years of the plan.

The past fiscal year was the third and last year of the MediumTerm Management Plan 2022. One target was a consolidated
operating profit of at least 9 billion yen in the fiscal year that
ended in March 2023. To accomplish this, the plan had threecore strategic goals: Use speed and agility to build a stronger
profit structure; take on the challenge of entering new businessfields; and establish a foundation for sustainable operations.
Our consolidated operating profit exceeded 9 billion yen in
every year of the plan, although earnings included inventory
valuation gains. At this stage, I believe that we must
concentrate on building a truly sound base for earnings rather
than simply reacting to the changes in our performance fromyear to year.
There were several steps for achieving our goal of entering new
business fields. One was the March 2022 launch of the
YODOKO+ design brand. We used this brand to introduce a
HOME OFFICE cabinet. We also started selling YODO storage
sheds with designs using collaborations with Coleman and
BEAMS DESIGN. These products were very successful andhave redefined how people perceive storage products. This isjust the beginning of our activities for entering new business
13

Interview with Top Management

Q

Please explain the Yodogawa Steel Group’s
activities involving the environment, society
and governance?

A

Our goal is CO2 emissions in the March 2031
fiscal year that are 30% below emissions in
the fiscal year ended March 2014.

The YODOKO+ HOME OFFICE 900 storage cabinet

fields. Our challenge is to enhance the image and raiseawareness of our brands through continued efforts in this new
approach and ultimately to increase sales of our existing coreproducts.

Q
A

Tell us about the next medium-term plan.
We will focus on sales growth in order tomaximize our production volume.

The Medium-Term Management Plan 2025 will build on theaccomplishments of the previous plan in order to realize the fullpotential of the Yodogawa Steel Group. The objective is toestablish a base for consistent growth. In this plan, we havechanged our earnings target to our consolidated operating
profit, an indicator of earnings from business operations. Our
activities will be aimed at becoming even more profitable andusing capital more efficiently.
We will make capital expenditures for manufacturing products
more efficiently, improving product quality, cutting costs andother measures to become more competitive. There will also
be well-planned investments for sustainability and the digitaltransformation.

Lowering CO2 emissions is one of our highest priorities
because our goal is to make the Yodogawa Steel Group
carbon neutral. Accomplishing this will not be easy because of
the enormous amount of gas and electricity used to makesteel. Our activities will include energy conservation and theuse of renewable energy. The goal is a 30% reduction in CO2emissions between the fiscal years ending in March 2014 andMarch 2031. Empowering women is a major element of
measures concerning sustainability. We plan to take manyactions for accomplishing this goal too.
Our plans also include activities for making our corporate
governance even stronger. As one step in this direction, we
have established a Nomination & Remuneration Committeethat consists of our independent outside directors and ischaired by me.

Dividends per share
(Yen)

120

102

100
80

75

70

70

111

75

60
40
20
0

FY3/18

FY3/19(119th term)(120th term)

FY3/20FY3/21

FY3/22(121st term) (122nd term) (123rd term)

FY3/23Q
A

What is your policy for distributing earnings toshareholders?
Based on our dividend policy, we paid a
dividend of 111 yen for the fiscal year ended
March 31, 2023.

Stable, continuous distributions to shareholders are one of ourhighest priorities.
In the Medium-Term Management Plan 2022, our guideline forthe dividend was a consolidated payout ratio between about
30% and 50% and a fiscal year dividend of no less than 50
yen. In accordance with this guideline, we paid a fiscal year
dividend of 111 yen per share for the fiscal year that ended in
March 2023, the sum of a 40 yen interim dividend and a 71
yen year-end dividend.

Q
A

Finally, what is your message to stakeholders?
I plan to take our group in an even better
direction backed by ideas never used before.

I want to use ideas that differ from our past activities for thebusinesses of our group while maintaining our profitability. For
example, we have a partnership contract with the Cerezo
Osaka professional soccer team and are collaborating withwell-known brands. Recently, we purchased a capsule of thefamous Nakagin Capsule Tower Building, which was
demolished in 2022, for reuse as a trailer capsule that can betaken anywhere. We are using this distinctive trailer as the
symbol of our YODOKO+ design brand.
I believe that our shareholders have much to look forward to as
we take on many new challenges in order to take our group in
new directions. Finally, I want to thank our shareholders fortheir support and understanding.

(124th term)

14

Medium-Term Management Plan 2022
Basic Strategies/Status of Major Initiatives
Basic strategies

Assessment of the Medium-Term Management Plan 2022
Performance in Relation to the Plan’s Targets
Sales and earnings were far above the targets due to timely and appropriate revisions of product prices that reflected changes
in the steel market as economic activity in Japan recovered from the pandemic downturn.

Medium-Term
Management Plan 2022

FY3/21

FY3/22

Results

9.7billion yen

17.9billion yen

17.6billion yen

Difference+0.7billion yen+8.9billion yen+8.6billion yen

Returns to shareholders Target consolidated payout ratio: Between about
30% and 50%
Dividend per share: at least 50 yen
EPS (consolidated)

Payout ratio (consolidated)

Dividends per share(Yen per share)
400

339.77350

367.13

70

300
250
200

215.58
34.8
75

102

30.2
111

15

Started sales of a high-performance pre-painted steel sheet
Started sales of a redesigned line of YODO Monooki Esumo storage sheds and production was
moved to Fukui Yodoko Co., Ltd.

Take on the challenge ofB entering new businessfieldsConducted studies for the launch of new businesses for joint operations with other companies
Targeted new customer segments by selling storage sheds in collaboration with othercompanies
Launched the YODOKO+ design brandAchieved stable dividend and dividend increase as a return to shareholders
Established the Nomination & Remuneration Committee to strengthen corporate governance

Establish a foundation forsustainable operations

Started a risk management program to strengthen compliance activities
Established a Sustainability Promotion Department to implement and oversee sustainability
activities
Acquired a company in the IT sector to support progress with the digital transformation

8.7
6.9
5.6

40
30
20

50
0

21.3 billion yen

Rebuilt the production and sales infrastructure for building materials and exterior products

Actual Capital Expenditures (Billions of yen)

50

30.0

Use speed and agility to
A build a stronger profit
structure

C

Plan for Consolidated Capital Expenditures (FY3/21-FY3/23) 15 to 20 billion yen

60

150
100

Capital expenditures

Actual Consolidated Capital Expenditures (FY3/21-FY3/23)(%)
80

Increased the number of sales agents and licensing agreements for YODO Roof

FY3/23

Stable consolidated ordinary incomeof at least 9 billion yen

Objective

Status of major initiatives

10

FY3/21

FY3/22

FY3/230

FY3/21

FY3/22

FY3/23YODO Roof is used at the Yodoko Sakura Stadium, homefield of the Cerezo Osaka professional soccer team.

The LMD-2215 Coleman celebrates the 50th anniversaryof the start of the YODO Monooki (storage shed) business.

The YODOKO+ HOME OFFICE 900 storage cabinet

16Medium-Term Management Plan 2025
Business Strategies

Overview of the Medium-Term Management Plan 2025
FY
2018

FY
2019

Medium-Term
Management Plan
2019

FY
2020

FY
2021

FY
2022

FY
2023

FY
2024

FY
2025

Medium-Term
Management Plan
2025

Medium-Term
Management Plan
2022

—Link to the Future—

Preparation
periodApproach run
periodFinalization
periodStructure building
Policy review/execution

Start of actions

Solidifying results

FY3/27-FY3/36

Long-Term Vision
SAKURA 100
A graceful cherry tree
A company able to adapt
to a variety of changes
in market conditions

A blossoming company

Objectives• Consolidated operating profit ofat least 10 billion yen in every
year of the Medium-Term
Management Plan 2025
• ROE of at least 5% (FY3/26)

A company that takes on
the challenge of entering
new business fields

SAKURAA successful company
that is admired andrespected worldwide

Become aFY
2017100-year company

Positioning of the Medium-Term Management Plans

Medium-Term Management Plan Objectives• ROE (Return on equity): At least 5% in FY3/26

Basic Strategies
all centered on the three basic
strategies of the previous plan: Buildan even stronger profit structure;
take on the challenge of entering
new business fields; establish afoundation for sustainable operations
17

Building Materials Business

Exterior Products Business• Increase quality and productivity for exterior
panels and build a production and sales
framework able to respond with flexibility tochanges in demand• Increase sales and profitability by joint
activities with metal roof product sales
agents• Expand the lineup of products to encompass
a broad range of life styles• Leverage collaboration with companies inother industries to develop and sell new
products• Complete the rebuilding of the production
and distribution infrastructure for exterior
products

Overseas

Target the demand for surface-treated steel sheets, primarily in Asia
• Establish a sales network that is not vulnerable to the effects of trade protection measures• Enter new overseas markets, mainly through SYSCO• Increase sales of competitively superior value-added products at all overseas group companies• Enhance the strength of brands further

Expand operations to new market sectors

A. Build an even stronger profit structure
A-1. Expand existing businesses for more growthA-2. Further upgrade manufacturing skills

B. Take on the challenge of entering new
business fields
B-1. Start new businesses based on existing business• China: YSS and YBMH
• Taiwan: SYSCO and YIL

Increase measures to meet demand for grates
involving highways

Roll Business

Real estate businessEngineering businessNew business

Other businesses

Utilize real estate holdings by seeking
new applications for properties andtaking other actions

Increase the lineup of new products

Use a department dedicated solely
to new business activities in order tocreate new sources of earnings

Priorities forthe use offunds
Distributions
toshareholders

Capitalproductivity

Grating Business

Add customers in new market sectors and build a
new framework for distributing and selling grates

Add new customers

Plan for Consolidated Capital Expenditures

Make existing businesses more competitive

Actual Consolidated Capital Expenditures

Expand operations to new business fields(FY3/24-FY3/26)

Expenditures for protecting the environment andfor human resources

Dividends are the highest priority

Annual dividend of at least 50 yen and aconsolidated payout ratio of at least 30%
Measures for capital productivity higher thanthe cost of capital

C. Establish a foundation for sustainable operations
C-1. Make substantial investments and improve capital productivity for more progress and growthC-2. Increase training programs for next generation and organizational strengthC-3. Coexist with all of our stakeholders

Facilitate even closer
cooperation and other ties
between the steel sheet andbuilding materials businesses

Increase sales of value-added rolls

Policy for Use of Funds• Consolidated operating profit: Consistently above 10 billion yen in every year of the Medium-Term Management Plan 2025

The six strategic goals on the right,

Steel Sheet-Related
Business

Steel Sheet Business• Supply products for new applications to build a basefor stable earnings• Increase sales of value-added products and target
new markets with activities that may include alliances• Use automation and digital technologies to build astronger quality management framework• Maintain and expand production capacity by updating
and replacing equipment as planned

Increase the ROIC in existing businesses
Use substantial investments to convert unused or
infrequently used assets into assets used forbusiness operations

Strengthening competitiveness
Composition Maintaining the strength of existing businessesofSustainability activities
investments

Digital transformation activities

Actual Capital Expenditures

8.7(Billions of yen)

3.0
FY3/182.2

2.2

FY3/19FY3/20FY3/21

20 to 25 billion yen(7.5 to 11 billion yen)
(8 to 10 billion yen)
(2.5 to 3 billion yen)
(2 billion yen)

6.9

FY3/22

5.6

FY3/2318

Segment Overview

Steel Sheet-Related
Business
124th term (actual)
Net sales

YoY

210,952

million yen

+9.6

%

(Millions of yen)

220,000

192,428
161,674 155,123

210,952

142,418 137,098

110,000

0

FY3/18

FY3/19FY3/20FY3/21

FY3/23

FY3/22(119th term) (120th term) (121st term) (122nd term) (123rd term) (124th term)

124th term (actual)
OperatingprofitYoY

13,310

million yen

-6.3

%

(Millions of yen)

14,21315,00013,31010,000

8,254
6,052

5,898

5,000

FY3/18

Building Materials & Exterior Products Segment

Performance in the year ended March 31, 2023

Performance in the year ended March 31, 2023

• The sales volume of galvanized steel sheets to specific high-demand customers inJapan decreased because of sluggish demand in the construction sector andimports of low-priced products. There was a small decrease in the sales volume of
pre-painted steel sheets as demand for use as building materials was soft but orders
were received for sheets used at distribution centers and other large buildings. In
the home appliance category, the sales volume increased as appliance manufacturers raised output in the fiscal year’s second half to offset reduced production caused
mainly by shortages of parts. Total sales to specific high-demand customers
increased due to price revisions.
• In the general distribution category in Japan, demand remained strong in the
non-residential sector for products used at distribution centers and other large
buildings. However, demand for the products of this business was sluggish in thesmall/midsize building and residential sectors. As a result, there was a small
decrease in the general distribution sales volume. Monetary sales were higher
because of price revisions to reflect the rising cost of raw materials and other items.
• In Taiwan, SYSCO’s sales decreased as the significant negative impact of downturns
in overseas markets offset activities to revise prices and increase sales to customers
in North America. In China, sales at YSS decreased because of pandemic lockdowns.
At PPT in Thailand, sales increased despite the continuing downturn of market
prices due to sales of value-added products and price revisions.

• In the building materials sector, the sales volume was less than in the previous fiscal year because of revisions of plans involving small/midsize buildings.
• Sales of exterior products remained strong as higher sales of garages andother large products offset a decline in storage shed sales following the
upturn created by demand as people stayed home during the pandemic.
• Construction sales increased because of completions of large projects related
to demand created by the pandemic. Delays in deliveries of building materials
and the labor shortage had a negative effect on this business category.

Outlook for the year ending March 31, 2024
• The outlook for the Japanese economy will remain uncertain because of the
Ukraine conflict, worldwide monetary tightening and other reasons. The Yodogawa
Steel Group will concentrate on adding new customers and supplying products for
new applications in order to raise its market share and become more profitable.
• In Taiwan, SYSCO is building stronger ties with current customers for meeting theirneeds in order to increase sales and earnings. In China, YSS has the goals of further increasing its sales volume and returning to profitability. In Thailand, plans toachieve more growth of sales and earnings by increasing sales of high-end
sheets, which have high profit margins.

Initiatives for achieving the Medium-Term
Management Plan targets

10,8180

Steel Sheet Segment

FY3/19FY3/20FY3/21

FY3/22

FY3/23• Meet increasingly diverse customer needs, supply products for new applications
not vulnerable to changes in market conditions, strengthen business alliances, anduse other measures to build a foundation for consistent earnings.
• Based on the sales strategy for companies outside Japan, activities arefocusing on the demand
for surface-treated steel
sheets in all regions.

Outlook for the year ending March 31, 2024
• For building materials, our goal is sales volume growth by increasing marketing activities for new YODO Roof products and receiving orders for materials
used at large construction projects, a market sector where demand is expected to remain very strong.
• For exterior products, we are aiming for higher sales and earnings by maintaining stable sales volumes of YODO Monooki Esumo and Erumo storage
sheds and making our brands stronger by using collaborations with companies in other industries and adding new products that reflect industry trends.
• In the construction sector, operations are focusing on large projects, which isa market category where activity is expected to remain high.

Initiatives for achieving the Medium-Term
Management Plan targets•	We plan to increase sales of building materials by improving quality andproductivity involving exterior panels and using joint activities with YODO Roofsales agents.
•	For exterior products, our goal is a higher sales volume by building a production and distribution infrastructure for a broader product lineup and stablesupply of products and taking steps to enter new market sectors, such as
collaboration with companies in other industries.
•	The goal in the construction sector is sales growth by increasing involvementin prominent building projects and regional landmark structures in all areasof Japan.

(Yodogawa Steel, non-consolidated)
124th term (actual)

YoY

Total
net sales

28,393+9.1

Building
materials

9,422

+27.0

Exterior
products

15,845-2.0

Construction

3,125

+28.5

million yen

million yen%%

million yen

million yen

Building materials(Millions of yen)%%

Exterior products

Construction

30,000

3,477

2,791

9,782

10,042

FY3/18

FY3/19

3,125

3,737

2,776 2,432
15,845
15,227
15,673 16,139 16,167
14,54020,00010,000

0

8,785

8,143

7,420

FY3/20FY3/21

FY3/22

9,422

FY3/23(119th term) (120th term) (121st term) (122nd term) (123rd term) (124th term)(119th term) (120th term) (121st term) (122nd term) (123rd term) (124th term)

19

Reference Building Materials & Exterior Products Segment

An exterior product (shutter)using Yodoko steel sheets

A home appliance using
Yodoko steel sheets

A building using YODO Roof Yokobuki 250 (Coverless)

YODO Monooki Storage
Shed Esumo

20

Segment Overview

Segment Overview

Roll Business

Performance in the year ended March 31, 2023

124th term (actual)YoY

Net sales

2,929

+8.9

Operating
loss

-262

—

million yen

million yen%

Outlook for the year ending March 31, 2024

Net sales(Millions of yen)

4,000

3,759

3,500

2,833

2,344

2,689 2,929

2,000

0

FY3/18

FY3/19FY3/20FY3/21

FY3/23

FY3/22

Grating BusinessYoY

Net sales

3,500

+1.6

Operatingprofit51-52.7

million yen

million yen%%

Net sales(Millions of yen)

3,547

3,554

3,481

3,529

3,443

3,500

2,000

•	The volume of public-works projects declined but there was a recovery inprivate-sector non-residential construction expenditures. The sales volume
decreased as many construction plans were reexamined or canceled due tothe high cost of construction.
•	Priority is improving profitability by increasing prices.

Outlook for the year ending March 31, 2024•	We expect declines in demand in both the public works and private sectors.
Our goal is to receive orders involving non-residential private-sector projects,
such as logistics and commercial facilities near large cities, and add sales
channels in market sectors other than highway projects.
•	High prices of raw materials and other items are expected to continue to exert
downward pressure on earnings. Our goal is to keep this business profitableby quickly revising prices and improving efficiency.

Initiatives for achieving the Medium-Term
Management Plan targets
FY3/18

FY3/19FY3/20FY3/21

FY3/22

FY3/23(119th term) (120th term) (121st term) (122nd term) (123rd term) (124th term)21•	Manufacturing technologies acquired over many years will be used to add
new sources of demand for rolls.
•	This business plans to increase sales of value-added rolls to become more
profitable.

Performance in the year ended March 31, 2023

124th term (actual)0•	Activities are focusing on revisions of product prices and receiving orders asconcerns about a further increase in the cost of raw materials continue.
•	In markets other than the steel industry, where substantial capital expenditures are not expected, sales activities will be centered on updates andreplacements of equipment and on receiving orders for maintenance services
in order to generate sales.

Initiatives for achieving the Medium-Term
Management Plan targets(119th term) (120th term) (121st term) (122nd term) (123rd term) (124th term)

4,000•	The sales volume of rolls used for steelmaking increased as production was
relatively high at both blast furnace and EAF steelmakers.
•	In other market sectors, the sales volume of rolls was down because of lower
demand in the papermaking industry caused by the declining use of paper
due to measures to reduce the use of resources and switch to electronic
documents.

•	Add customers in the core highway sector and in other sectors and build a
new framework for distribution and sales.
•	Improve profitability by increasing the share of sales from products with highprofit margins.

Real Estate &Other Businesses

Performance in the year ended March 31, 2023

124th term (actual)YoY

Net sales

2,931

-5.2

Operatingprofit

1,023

-21.4

million yen

million yen

%

%

4,823

5,241

5,333
2,990

3,000

0

FY3/18

FY3/19FY3/20FY3/21

3,092

FY3/22

2,931

FY3/23(119th term) (120th term) (121st term) (122nd term) (123rd term) (124th term)

TopicsOutlook for the year ending March 31, 2024
• Effectively utilizing properties remains the priority of the Real Estate Business.
•	The Engineering Business continues to focus on sales activities at plants inJapan.

Net sales(Millions of yen)

6,000•	In the Real Estate Business, occupancy rate at tenant-occupied buildings was
about the same as in the previous fiscal year but earnings were slightly down
mainly because of higher depreciation resulting from renovations.
•	Engineering sales increased because of orders received for work at plants inJapan and higher sales of replacement supplies for various equipment tooverseas subsidiaries of Japanese companies.

Initiatives for achieving the Medium-Term
Management Plan targets•	We plan to increase profitability in the Real Estate Business by utilizing properties in the most effective manner possible.
•	We will use our technologies and services to launch new products and attract
more customers for the growth of sales and earnings.

Launch of the YODO Monooki Erumo BEAMS DESIGN storage shed

Sales using reservations for the YODO Monooki Erumo BEAMSDESIGN model started on December 15, 2022. This product uses
a licensing agreement for the BEAMS DESIGN brand with BEAMS
Co., Ltd. (Representative: Yo Shitara, President).
This is the second storage product that incorporates a well-known
brand of another company as part of activities to celebrate the50th anniversary of the start of the YODO Monooki business.
BEAMS Creative Director Shinsuke Nakata created the military-likeappearance of the YODO Monooki Erumo BEAMS DESIGN
storage shed. This product’s military container theme reflects thehistory and life styles of the U.S., the original basis for designs
when BEAMS started operations. Olive drab, which is regarded as
an ideal camouflage color for blending with any outdoor location,
is used for the storage shed.
22

Status of Overseas Business

Status of Overseas Business

SYSCO Taiwan

PPT Thailand

Trade name: Sheng Yu Steel Co., Ltd.
Location: Kaohsiung, Taiwan R.O.C
Established: May 19, 1973
Chairman of the Board : Soichi Kitamura
Paid-in capital: NT$ 3,211.8 million
President: Colin Hsu
Business activities : Steel sheet manufacturing and sales
Number of employees : 500
Main facilities: 1 pickling line 2 cold rolling lines 2 galvanizing lines 2 color coating lines■

Trade name
: PCM Processing (Thailand) Ltd.
Location: Amata City Chonburi Industrial Estate
Established: April 1999
Representative: Yasushi Taniguchi
Paid-in capital: THB 1,377.259 million
Number of employees : 113
Business activities : Pre-painted steel manufacturing, steel sheet processing and sales
Main facilities: 1 color coating line 2 large leveler lines 1 sheet slitter

Thailand■

Performance in the year ended March 31, 2023

Outlook for the year ending March 31, 2024

Performance in the year ended March 31, 2023

Outlook for the year ending March 31, 2024

•	In 2022, real GDP growth in Taiwan was 2.45% as domestic demand was
firm, backed mainly by strong consumer spending. However, there was a
downturn for the second consecutive year in exports, a major source ofgrowth in recent years.
•	Sales and earnings in Taiwan were steady during the fiscal year’s first half
due to price revisions. During the second half, the sales volume decreased
because of weak demand in the construction sector caused by a labor
shortage due to the pandemic and other reasons.
•	The volume of SYSCO’s exports, which are mainly to North America,
decreased because of sluggish global markets.

•	Many activities are planned for increasing the volume of sales. Major goals
include strengthening the brand for pre-painted sheets sold in Taiwan,
increasing SYSCO’s market share, creating products that accurately target
customers’ needs, and increasing cooperation with Yodoko International
Limited (YIL).
•	For exports, SYSCO plans to maintain solid sales and earnings by increasing
the volume of sales to customers in North America.
•	Many activities are under way at SYSCO for increasing earnings. The company is building stronger ties with current customers, expanding operations
to cover new applications and categories of demand, making progress withthe digital transformation, using environmentally responsible manufacturing
processes, and developing new products.

•	Prices of steel products have been decreasing because of the prolonged
shortage of parts in the automobile and home appliance industries due tothe pandemic. Sales activities at PPT for new orders were based on the needto achieve the proper balance between capacity utilization and profitability.
•	Sales increased because of a larger sales volume of value-added products,
such as products for AC outdoor units made by Japanese manufacturers, asector where output recovered from the semiconductor shortage downturn.
Revisions of selling prices also contributed to sales growth.

•	Activities for lowering expenses by using more flexible procurement activities, such as using new suppliers, in order to purchase competitively priced
steel coils.
•	More growth of sales of outdoor AC outdoor unit products, a larger market
share in the refrigerator and washing machine categories, and start ofoperations in new markets.

YSS China
Trade name: Yodogawa-Shengyu (Hefei) High-Tech Steel Co., Ltd.
Established: October 28, 2011
Paid-in capital: USD 220 million
Business activities : Steel sheet manufacturing and sales
Main facilities: 1 galvanizing line 2 color coating lines

23

TaiwanLocation: Anhui, China

China

Chairman of the Board: Eichi Tanaka
and President■

President: Atsushi Nakatani
Number of employees : 257

Performance in the year ended March 31, 2023

Outlook for the year ending March 31, 2024

•	In the first half of the fiscal year, a decline in the sales volume because
sluggish steel demand and pandemic lockdowns impacted profitability. In thesecond half, performance recovered somewhat but the sales volume for the
fiscal year was lower than in the previous fiscal year.
•	In the building materials sector, a joint activity with a new customer started
and there were other activities to set the stage for sales volume growthstarting in 2023.
•	In the household appliance sector, the priorities were new ideas for value-added products used by Japanese home appliance manufacturers andincreasing sales to Chinese home appliance manufacturers.

•	For building materials, YSS is working on using the joint operation with a
new customer to achieve sales volume growth.
•	For home appliances, the goal of YSS is a larger sales volume by increasing
the use of pre-coated steel sheets inAC outdoor units and adding new customers in the washing machine industry.

TopicsSYSCO Celebrates its 50th Anniversary

Established in Taiwan in May 1973, SYSCO is celebrating its
50th anniversary in 2023. Although the company faced many
challenges in its early years, operations slowly improved andthe company’s stock was listed on the Taiwan Stock
Exchange in 1997. SYSCO is now Taiwan’s leading manufacturer of galvanized and pre-painted steel sheets.
SYSCO has announced a slogan to mark this accomplishment that recognizes 50 years of progress and looks ahead
to long-term growth. An anniversary event was held toincrease the motivation of employees and thank customers
for their support. The company’s past accomplishments give
SYSCO a sound base for many more years of growth.
SYSCO will continue to take actions aimed at making its
brand in Taiwan even more powerful, increasing its market
share, and raising export sales to customers in North
America and other regions. These measures are expected tolead to more growth of SYSCO as the primary base forexports of the Yodogawa Steel Group.

24

A Base that Supports Value Creation (ESG Information)

Dedicated to coexisting with all of our
stakeholders, we are constantly
strengthening ESG activities.

Security

By creating value through the Yodogawa Steel Group’s core goals of safety, security,environment, and beauty, we are dedicated to accomplishing the Long-Term Vision ofcoexisting with all of our stakeholders and contributing to achieving a sustainable society.

SafetyISO 14001 Certified Business Sites
Environment

BeautyEnvironment
Basic Environmental Principles
Contribute to the preservation of theenvironment. Conduct business with respect
for the natural environment.

Basic Environmental Guidelines
1. Instill awareness of environmental preservation
Provide our employees and partner company employeeswith environmental education to increase awareness of environmental preservation and instill an action-oriented mindset.
2. Ensure consideration for the environment in ourbusiness activities
1)	In all of our business activities, we minimize the environmental impact while preventing pollution, conserving
resources, reducing energy use, streamlining logistics,
and reducing and recycling waste. (Preventing pollution:compliance with environmental laws and standards)2)	Minimize the environmental impact of waste materials
when developing products by improving durability, reusingmaterials, and utilizing materials that are easy to recycle.
3. Establish internal organizations
In order to pursue these objectives, strengthen environmental management organizations at the head office and allbusiness sites, while also implementing environmental preservation activities.

Environmental Management System
Under our Basic Environmental Principles, we are advancing
initiatives to reduce our environmental impact. We created the
Yodoko Environmental Management System to address regulations and requirements for protecting the environment
while increasing the speed and breadth of these activities. We
established an Environment Committee with the President aschairperson. Other members are the director in charge of environmental issues and the environmental officers of every division.
This committee handles overall decisions on fundamental mattersconcerning the environment. Additionally, the committee regularly
holds Yodogawa Steel Group communication meetings to ensure
widespread awareness of environmental issues and initiatives.
Yodoko Environmental Management System

Business site

Energy Management Officer
Energy Management Planning& Promotion Officer

June 2000

Osaka Plant

December 2000

Kure Plant

December 2000

Sheng Yu Steel Co., Ltd. (Taiwan) December 1997

Examining/certifying agency

CO2 emissions
JICQA

SGS

PCM Processing (Thailand) Ltd. November 2013

UKAS

Purpose and objectives of environmental activities

Reduce environmentally
harmful substances

Director in charge ofEnvironmental Issues

Consideration for theenvironment

Corporate Planning Division
Senior General Manager

Plants Division

Offices Division

Yodoko Group companies

Environmental Officers

Environmental Officers

Environmental Officers

Pollution Prevention Officers
Energy Officers

Environmental Managers

Environmental Managers

Environmental Activity Personnel

Versus FY 2013

-10%

181

-19%

163

150

-23%

154

-18%

26%
cut

165

148

100

Reduce CO2 from manufacturing
Reduce CO2 from transport
activities

Create a recycling-oriented
society

Consolidated (Japan)

Base year

200

DNV∙GL

Yodogawa-Shengyu (Hefei)
December 2015
High-Tech Steel Co., Ltd. (China)

Combat global warming(1,000 t-CO2)

200

50

Reduce the use of resources
0

Reduce VOC emissions
Reduce usage of toxic chemicals
Environmentally conscious productand technology development

Sustainability
Promotion Department

Departmental/Division Managers

Date certified

Ichikawa Plant

President

Environmental Managers

25

Our three steel sheet plants in Japan and the plants of three
consolidated subsidiaries overseas have environmental preservation activities to minimize the environmental impact of theiroperations. All of these plants have received ISO 14001 certification as part of efforts to manage and improve these activities.

20ºC in winter) and to use the “Cool Biz” (avoiding businesssuits in summer) and other energy-saving programs.
Some Yodogawa Steel Group plants have started using electricity produced using renewable energy. More activities areplanned for energy conservation and the use of electricity fromrenewable energy in order to lower CO2 emissions.
In the fiscal year ended March 2023 (FY2022), we cut CO2
emissions by 26% and energy consumption by 14% (both vs.
FY2013) partly due to a decline in production.

Contribute to communities
Rigorous risk management

Combat Global Warming
Yodogawa Steel is a participant in the Carbon Neutrality Action
Plan of the Japan Iron and Steel Federation, which has thegoals of combating global warming and conserving energy. For
manufacturers, activities include updates of equipment for raising efficiency and improving business operations and using
LED lights for peripheral equipment and other energy-efficient
items. For logistics, our activities include shifting to rail andmarine transport and raising cargo capacity utilization on trucks
and other modes of transportation. We are also encouraging
offices to moderate room temperatures (28ºC in summer and2013(Base year)

2018

2019

2020

2021

(Fiscal years)

Energy consumption

Consolidated (Japan)

Base year

(TJ)

3,500

3,521

3,000

2022

-5%

3,356

Versus FY 2013

-12%

-7%
-15%

3,090

3,000

2019

2020

3,257

2,500

14%
cut

3,011

2,000
1,500
1,000
500
0

2013

(Base year)

2018

2021

2022
(Fiscal years)

26

A Base that Supports Value Creation (ESG Information)

ESG Information

 reate an Environmentally Recycling-oriented
C
Society
The Yodogawa Steel Group in Japan is reusing as resources
the waste products created during production activities. Sludge
is recycled as a raw material for cement or utilized for its metal
content and used oil is recycled or used for supplemental fuel.
Slag is used for roadbed base layers. In FY2022, our total volume of waste materials was 77,000 tons. The recycling rate
was 61.8%.

Economical Utilization of Clean Energy
On the roofs and grounds of our Osaka, Izumiotsu, and Himeji
Plants, and at group companies, we have installed photovoltaic
power generation systems that produced approximately 6,447
MWh of electricity in FY2022.
This photovoltaic power generation contribute to reduce annual
CO2 emissions by about 2,804 tons.

Waste products, waste products with value,
and recycling rate
consolidated (Japan)(1,000 t)

120
80
40
0

Total volume createdVolume recycled

Recycling rate

62.1

62.1

62.1

62.9

86

78

78

85

(%)

80

61.8

54

48

48

53

2018

2019

2020

2021

20
0

2022 (Fiscal years)

Reduce Environmentally Harmful Substances
Yodogawa Steel participates in the Voluntary Action Program of
the Japan Iron and Steel Federation. We have adopted the program’s goal of not allowing emissions to exceed FY2010 levels
and we are lowering our VOC emissions. To date, we havetaken steps including upgrading the deodorizing apparatus on
our pre-painted steel sheet production lines and lowering
FY2022 VOC emissions to 38.8% below the FY2010 level.
VOC emissions and reduction rate

(Non-consolidated)

(t)

80
60

Base year

Versus

2010

64

40

-53.8%

2920-40.8%-40.9%

38

38-33.1%

43

38.8%
cut

39

Risk management
A climate change risk working group performed the scenario
analysis. Priorities were determined based on the likelihood of
the occurrence of climate-related risks and opportunities andthe magnitude of their effects. The analysis placed emphasis
on items with the most significant potential effects.
The Environment Committee, with the Sustainability Promotion Department playing a central role, was responsible foractivities for managing risk involving the climate. Committee
members analyzed climate-related risk factors, created andimplemented ideas for countermeasures, and supervised
progress. Analysis and studies of the Environment Committee
are reported to the Board of Directors to facilitate unified risk
management for the entire company.

Indicators and targets

Strategies

40

48

Governance
We have established the Yodoko Environmental Management System*in order to conduct even more environmental activities while ensuring
compliance with applicable laws and regulations. There is also a Sustainability Promotion Department that functions as the TCFD (Task
Force on Climate-Related Financial Disclosures) secretariat for studies
and the oversight of programs for fighting climate change.
We have an Environment Committee that is chaired by the President
and includes the director in charge of environmental issues and theenvironmental officers of every division. Committee members discussbasic policies and other important subjects concerning climate change.
The results of these discussions are reported to the Board of Directors
in order to facilitate unified environmental initiatives at the Yodogawa
Steel Group.
*More information about this system is on page 25.

60

77

TopicsDisclosure of Information in Accordance with the TCFD
(Task Force on Climate-Related Financial Disclosures) Framework

Photovoltaic power generation system at the Izumiotsu Plant

Environmental Accounting
We keep track of environmental preservation expenses as anindicator that helps us efficiently carry out environmental preservation initiative. We are committed to reducing our environmental impact so that we do not harm the environment throughour business activities.
Our environmental investments in FY2022 were 12 million yen,which included the installation of LED lights.
Total environmental expenses in FY2022 were 702 million yen,consisting of 19% for air pollution prevention, 25% for watercontamination prevention, and 24% for processing industrial
waste. These expenses were mainly for preventing pollution
and recycling resources.
Note: FY2022 numerical environmental data on pages 26 and 27 are preliminary
figures.

Climate change is a significant medium to long-term risk factor at the
Yodogawa Steel Group. To determine strategic actions based on risks
and opportunities and to create an organization that is resilient to climate change, we performed scenario analysis centered on the steel
sheet-related business in Japan. This analysis included the climatechange scenarios (under 2˚C and 4˚C) of the International Energy Agency (IEA) and Intergovernmental Panel on Climate Change (IPCC). We
used this process to assess possible long-term effects on our businesses between 2030 and 2050.
*More information about the scenario analysis is in the Yodogawa Steel website.

(Unit: 1,000 t-CO2)

In 1999, Yodogawa Steel announced the Yodogawa Steel
Environmental Declaration as its basic guideline for corporate
activities. Since then, environmental responsibility has beenpart of all of the company’s business operations. Climatechange is one of the most serious risk factors. To cut CO2
emissions, we have programs for energy conservation andusing renewable energy, utilize new technologies, and haveother activities.
As one step for accomplishing the goal of carbon neutrality by
2050, we have established the target of lowering CO2 emissions to 30% below the FY2013 level by FY2030.

Road Map

200
26%
cut

30%
cut

150

Activities
for achievingcarbon neutrality

100

Energy conservation
Renewable energy
New technologies

50

and other activities
0

0

2010

(Base year)

27

2018

2019

2020

2021

2022

2013

2022

2030

2050

(Fiscal years)

28

A Base that Supports Value Creation (ESG Information)

ESG Information

Our Products Help Solve Social Issues

Chromate-free Products
Reduce the Use ofEnvironmentally Harmful
Substances

Major related SDGs

Contributing to Global
Warming Prevention
through Insulation
Solutions

Major related SDGs

Use of Yodogawa Steel Products
for Disaster Preparedness and
Mitigation

Major related SDGs

Major related SDGs

Safety Security Environment

Safety Security Environment Beauty

Safety Security Environment

Safety Security Environment

For our steel sheet products, we have been a pioneer in thedevelopment of chromate-free plates. These plates do not contain hexavalent chromium, which is an environmentally harmful
substance, and therefore help us minimize the environmental
impact of our products.
In 2005, we completely removed chromate from products forcustomers in the electrical appliance industry. In 2007, we
became the first in our industry to start supplying chromate-freetreated steel sheets for roofing and siding (brand name Eco
Green) that can withstand severe weather.
A chromate-free pre-painted steel sheet for building exteriors,
which was launched in January 2017, was developed based on
the concept of long-term use that is friendly to people and theenvironment. The product’s overall durability was improved byreevaluating the pre-painting process, coating, and other items.
Its 25-year warranty against pitting has been very well received
by customers. Going one more step, we added a new productin January 2020 and started offering the 25-year warranty against
pitting (must be at least 500 meters from a seashore) on all prepainted steel sheets for exterior use.
As the pioneer of chromate-free treated steel sheets, we willcontinue to meet the demands of society and develop innovative
products that can make an even greater contribution to reducing
the environmental impact of these sheets.

YODO fire-proof panel Grand Wall Hyper and YODO sandwich
panel Fine Panel Hyper, which are our core exterior wall products,
increase heating and cooling efficiency with their superior insulation properties. Additionally, these products use a special steel
sheet, based on a chromate-free pre-painted steel sheet foroutstanding thermal insulation and resistance to soiling and staining. This results in a further reduction in this product’s environmental impact. YODO fire-proof panel Grand Wall Hyper hasreceived fireproof certification as a stand-alone exterior building
material. This panel also has superior resistance to wind pressureand earthquakes as well as sound insulating qualities.
In recent years, with the growing awareness of environmental
problems, customers are placing more emphasis on environmental performance when selecting products. The superior energy-saving features of our highly functional metal siding help fightglobal warming by reducing CO2 emissions.

Awareness of disaster preparedness in Japan has been increasing because of a large number of earthquakes, typhoons andother natural disasters. YODO Monooki Storage Shed is an ideal
way to be prepared. The YODO Kura Storage Shed MD withthermal insulation and outstanding durability is ideal for the longterm storage of food, water and other emergency supplies. For
convenience, we have created a storage shed lock that opens
automatically without using a key during an earthquake with anintensity of at least about 6. Many options are available as well,such as partitions for using sheds for changing clothes, a toilet,
a solar panel, a rainwater collection tank or other purposes.
In all areas of Japan, local government agencies, schools, condominium associations and other organizations are using our storage sheds as part of their measures to be prepared for disasters.
We will continue to develop products and create new applications in order to contribute to safety, security, the environment,
and beauty.

During the pandemic, in 2022, there was a need for performing
PCR and other COVID-19 tests at locations that are separate
from other sections of a clinic or other healthcare facility. Separation allows performing many tests while preventing the spreadof infections.
In response to many requests for the use of our exterior products
as COVID-19 testing rooms, we developed and started to sell aversion for medical tests by adding a partition to the YODO Kura
Storage Shed MD. This model is used as a smoking space andfor many other purposes. Adding a partition facilitates testing withno direct contact between patients and healthcare personnel.
There is also an option with an opening for the use of gloves
when performing tests.
We are continuing to add applications for our storage sheds tocreate a safe and secure environment for testing and other procedures.

A YODO Monooki Erumo Storage Shed with a lockthat automatically opens after a strong earthquake

29

Innovative Exterior Products for
Healthcare Facilities

A building with the YODO fire-proof panel Barrier Lock Hyper(Chromate-free specification)

A building with YODO fire-proof panel Grand Wall
(Office building of Kochi Broadcasting Co., Ltd.)

Mechanical earthquake
detector

A partition with an opening
for the use of gloves toperform tests

A YODO Kura Storage Shed MD configured for
performing medical tests(donated to a hospital in Taiwan)

30

A Base that Supports Value Creation (ESG Information)

ESG Information

Social
Product Development Initiatives

R&D Philosophy

Steel Sheet and Building Materials & Exterior Products

In accordance with our basic philosophy of“Create value with new originality,”
our research and development activities
constantly take into account whether projects
do in fact have originality and generate newvalue. This ensures that safety, security,
the environment, and beauty are always
priorities when creating new products.

We pursue a basic policy of emphasizing thecustomer’s ideas, developing differentiatedproducts, ensuring safety and security, making
products environmentally friendly and durable,
and streamlining construction processes.

Creating value through business activities

Building
materials&
exterior
products

Steel sheets

Security
SafetyEnvironment
BeautyGrating

Rolls

We manufacture two major categories of steel sheet products.
The first category is steel sheets with specifications that meetthe requirements of manufacturers of electric appliances andbuilding materials. The second category is steel sheets that wesell through intermediaries for general-purpose building materials.
Sheets in the first category precisely match every customer’s
requirements and are produced by our technology development divisions at the Kure, Ichikawa, and Osaka Plants. Sheetsin the second category are made in collaboration with eachplant’s technology development division after research by the
Head Office development division determines market needs.
Our Head Office development division also handles thedevelopment of exterior products, building materials, and otherprocessed products. By combining our steel sheet, exterior,and building material development divisions, we can organicallylink the technology and expertise of these divisions beginningfrom the product planning stage. This allows us to develop
steel sheets with the ideal properties for processed products
and develop processed products that fully utilize the propertiesof steel sheets.
This development framework underpins our core strength,
which is integrated production extending from steel sheets tofinished products in order to ensure consistently high qualitythat allows people to use our products with confidence.

Segments
Steel Sheets

Building Materials and Exterior Products

We believe that the mission of every company is to develop
technologies and products that reflect changes in its markets
and society. This is why we are constantly taking on new R&D
themes and challenges. In the Steel Sheet Segment, R&D
activities extend from surface-processing technologies to colors,
shapes, safety and other characteristics of these sheets. To
keep up with changing needs, we will continue to fabricate
steel sheets while looking ahead to the next step of progress
involving innovation, durability, functions and other properties.

We verify the performance of our building materials by using
one of the most advanced testing facilities for this purpose inJapan. New products undergo tests before their release andwe continue to verify safety and other properties of existingproducts too.

Product Development Center (Osaka Plant)

A surface measurement instrument31

Coefficient of friction testing unit

Main test equipment∙ Fire resistance testing units (vertical and horizontal furnaces)∙ Water seal and wind pressure resistance testing unit ∙ Load testing units∙ Rain and wind testing unit
∙ Door opening-closing testing unit
∙ Hydraulic cylinder load testing unit
∙ Shutter opening-closing testing unit

Fire resistance testing unit (horizontal furnace)

Water seal and wind pressure resistancetesting unit

Door opening-closing testing unit

32

A Base that Supports Value Creation (ESG Information)

ESG Information

Product Development Initiatives

Roll and Grating Businesses
Roll Business
The development division at the Osaka Plant develops rolls for
section steel by having engineers and sales staff work together
to meet customer demands and provide follow up support. We
are developing systems for paper manufacturing rolls customized for Japanese clients
through our businessalliance with ANDRITZ
Küsters GmbH, a global
industrial machinery andprocess company basedin Germany.

Test calendar machine for paper making (gloss
finish)Grating Business
The development division located in Izumiotsu Plant has created a database from diverse information on customer needs andmany types of information from sales personnel. This divisiondevelops innovative products that are safe, durable, and aesthetically pleasing. We recently developed a type of grating that
includes an insect growth
inhibitor to function as ananti-pest barrier for gutters, ditches, and otherlocations.

Overseas Subsidiaries

Basic Policy for Quality Assurance

SYSCO’s technology development division performs R&D forsurface-treated steel sheets in order to quickly and precisely
respond to diversifying customer demands and market needs.
The technology development division’s prototyping laboratory is
the hub of this R&D and has acquired certification from the
Taiwan Accreditation Foundation (an official certification agency), which ensures the quality and reliability of R&D programs.
When evaluating the corrosion resistance, surface discoloration, and other properties of surface-treated steel sheets at
the prototyping laboratory, we are developing products quickly
by utilizing data from outdoor-exposure tests (to check weather
resistance under realistic conditions) along with test data fromvarious accelerated weathering testers.
A recent project is the development of highly durable Eco
Green products (chromate-free Al-Zn alloy-coated pre-painted
steel sheets for building materials) in order to withstandTaiwan’s high heat and humidity as well as the extreme environments in export destinations.
We will further upgrade functionality, including improving
scratch resistance and adding the self-cleaning features of
PVDF pre-painted steel sheets (fluororesin pre-painted steel
sheets), as we develop products that meet customer demands
and market needs.

Cyclic corrosion tester (CCT)

Based on the Yodogawa Steel Group Corporate Philosophy, andin order to meet customers’ expectations and trust, we haveestablished a quality management system in every businessdivision. We operate these systems effectively and are constantly
evaluating performance to seek ways to make improvements.
Our highest priority is adhering to rules, such as laws, contracts
with customers, and standards, while strengthening systems forpreventing and identifying defects and inadequacies.
Additionally, we have established a QMR* Committee and QMRWorking Group tasked with strengthening the overall quality
assurance framework of the Yodogawa Steel Group.
Members of these cross-divisional organizations are the quality
assurance managers of every division and group company.
Duties involve ensuring compliance with Guidelines forStrengthening Quality Assurance Systems (stipulated by industry
bodies), sharing and distributing quality-related information andexamples of initiatives to address quality issues, and carrying out
reciprocal quality audits among business sites.
*QMR: Quality Management Reinforcing

Yodogawa Steel Group Quality Assurance Framework
President
Director in charge of quality assurance (Corporate Planning Division Manager)
Secretariat
Yodogawa Steel Group QMR Committee
Chairperson: The President of Yodogawa SteelVice-chair: Director in charge of quality assurance
Members: Managing directors of each business site, Group company managers, etc.
Yodogawa Steel Group QMR Working Group
Supervisor: Director in charge of quality assurance
Members: quality assurance managers of each business site

Load testing33

Condensation circulation-type carbon
arc weathering tester

QUV weathering tester

Exposure testing area, southern Taiwan (Kenting, Pingtung County)34

A Base that Supports Value Creation (ESG Information)

Human Resources Development for Sustainable GrowthSocial Contribution Activities

Human Resources Development

 onations to Charities Using Shareholder
D
Benefits

Business Improvement Activities (JK Activities)(J: “jishu” meaning “voluntary”, K: “kanri” meaning “management”)

Basic Policy
By training and educating our people, we are realizing part of
our Corporate Philosophy, namely, to “take up the challenge
to innovate and expand based on the individual creativity of
every employee.”

Training Programs
We provide support for the career goals of our employees
while upgrading their skills and motivation through on-the-job
training, which is centered on daily tasks, and off-the-job
training, which utilizes internal and external resources.
Furthermore, we use online, e-learning, and other training
programs to encourage employees to maintain a constantawareness of issues, think by themselves, and take actions
necessary to deliver products that meet the evolving needsof customers. Overall, our employee training programs are
structured to give people skills for contributing to progress
involving society and the quality of life.
New employee Fundamental skills training for new collegetraining
graduate employees
On-the-Job Training (OJT)
Rank-based
training(including
online training)

Young employee training

Other training
programs

Training for female career-path employees

Core employee training
New manager training (early management phase)
Online language training (English, Chinese)

New employee training

Voluntary management activities in small groups that we call JK
Activities are used to make improvements concerning quality, cost
cutting, productivity, safety, the environment and other themes. Every
year, the Yodogawa Steel Group hold a JK Conference in Osaka thatbrings together people from group companies worldwide. In the fiscal
years ended March 31, 2022 and 2023, this conference was held
online for safety during the pandemic. Twelve participants were chosen to represent group companies in Japan and other countries.
Each participant gave a presentation about small group activities.
This event contributes to the growth and self-realization of all employees even in business climates unlike
those in prior years. JK Conferences
provide an opportunity to study
examples of initiatives that improvebusiness processes and enable participants to stimulate each other todo their best.

Diversity

Main training programs

35

ESG Information

New manager training

Donations by shareholders of record on March 31, 2022 who
selected a charitable donation from among the items in theshareholder benefits catalog were as follows. We are very grateful to these shareholders for their generosity.
The following donations were made in November 2022 in thename of the Yodogawa Steel Works, Ltd. (Shareholder Donation
Account).
Total donations: 124 shareholders 620,000 yen
UNICEF: 39 shareholders 193,000 yen
The Japanese Red Cross Society: 31 shareholders 164,000 yen
Ashinaga Foundation: 54 shareholders 263,000 yen	Transfer to donations from shareholders who did not apply forshareholder benefits: 684 shareholders 3,262,000 yen*Donations for UNICEF, the Japanese Red Cross Society andAshinaga Foundation

Yodogawa Steel Group JK Conference

The Yodogawa Steel Group has a workforce encompassing a broad
spectrum of experience, skills and other characteristics as well as awide range of perspectives and values. The utilization of these capabilities will play a key role in our ability to grow consistently. This is
why we will continue to hire people regardless of gender, nationality,
disabilities and other characteristics.
For preserving and increasing diversity, we have voluntarily established measurable targets for the percentage of women among
career-path for new-graduate recruits, the percentage of female
managers and the percentage of experienced mid-career employeesthat we recruit. We will continue to use many activities for theadvancement of women and diversity.
To fully utilize the skills of our people, we will strengthen activities formaintaining a diverse workforce and further increasing diversity. For
example, there are training programs for enabling women to advancetheir careers at the Yodogawa Steel Group. We are dedicated toproviding workplaces where all employees can fully utilize their capabilities and educational activities that better enable people to achieve
a mutual understanding of many subjects and issues.

Opening the Yodoko Guest House to the Public
The Yodoko Guest House was designed by Frank Lloyd Wright,
lauded as one of the preeminent architects of the 20th century,and built as a vacation villa for the eighth-generation sakebrewer Yamamura Tazaemon of Nada, Kobe. We have owned it
since 1947. This villa is designated a National Important
Cultural Property by the Japanese government and, since
1989, we have opened it to the public as part of our social contribution activities.

Yodoko Guest House (former residenceof the Yamamura Family)

Dolls are displayed at the guest house tocelebrate Hinamatsuri (Girls’ Day) in March ocial Contribution Activities at Overseas
S
Subsidiaries
SYSCO Taiwan•	Roadside flowers planted by employee volunteers
As part of highway beautification programs, we started voluntarily
establishing, in 1998, roadside flower beds along a national highway
near a business site. We are participating in urban beautification
projects as one way to enhance the reputation of Yodogawa Steel.

• Support for community arts and culture
In order to support education and the quality of life of communities as
a company deeply connected to areas where we operate, we havebeen making donations to the Kaohsiung Municipal Social Education
Center in Taiwan since 2011. These donations are one part of ouractivities to support community art and cultural programs.

SYSCO Taiwan and PPT Thailand• Donations to neighborhood schools
At SYSCO, one of our social contribution activities was the donationof safety gear to schools in the Siaogang district in 2017 for use by
children and supervising adults to ensure their safety. In Thailand,
PPT is participating in a scholarship project to support education atelementary schools to contribute to communities.

Children in the Taiwan city of Kaohsiung use safety gear donated by SYSCO

36

A Base that Supports Value Creation (ESG Information)

ESG Information

Governance
Basic Philosophy
In order to achieve sustainable growth and increase corporate
value over mid- to long-term, we have a variety of initiatives thatreflect the standpoints of all stakeholders (shareholders, customers, business partners, employees, and communities) while
positioning transparency, fairness, and prompt and courageousdecision-making as the objectives of our corporate governance.

Corporate Governance Structure
We emphasize nimble management suited to the scale of ourcompany and use the Audit & Supervisory Board governancestructure. Furthermore, we use the Executive Officer system inorder to maintain a proper degree of distance between Directors’
oversight/decision-making and business execution. This system
also maintains unity, from the standpoint of sharing information,
concerning management decisions and business operations.
In order to maintain a Board of Directors with a dynamic structure
and one that is optimal with regard to clarifying management

responsibilities and responding to changes in the business environment, Directors are elected for one-year terms and the
Yodogawa Steel Articles of Incorporation limit the number of
Directors to no more than seven. By electing Directors with differing backgrounds and knowledge, we aim to ensure an appropriate size and diverse composition of the Board of Directors
while facilitating more energetic, constructive, and engaging discussions during meetings. Additionally, in order to strengthen thetransparency of oversight and decision-making processes, we
appoint Independent Outside Directors who meet the Tokyo
Stock Exchange’s criteria for independence. As of June 30,
2023, there were seven Directors including three Independent
Outside Directors.
For the Audit & Supervisory Board, the Companies Act and the
Yodogawa Steel Articles of Incorporation stipulate that we haveno more than four Audit & Supervisory Board Members, with atleast half being Independent Outside Audit & Supervisory Board
Members.

Directors and Audit & Supervisory Board Members (as of June 21, 2023)
Directors

Audit & Supervisory Board Members

Satoshi Nitta

Toshio Kumamoto Tadashi Hattori

Eiichi Tanaka

Shiro Morioka

Nobusuke Kuzuo

President andRepresentative Director

Director, Senior Managing
Executive Officer

Director, Senior Managing
Executive Officer

Audit & Supervisory Board
Member (full-time)

Audit & Supervisory Board
Member (full-time)

Mitsuaki Yuasa

Sadato Kobayashi Katsuyuki Kuse

Miho Ishihara

Ritsuko Watanabe

Director(Independent Outside Director)

Director(Independent Outside Director)

Audit & Supervisory Board
Member (Independent
Outside Audit & Supervisory
Board Member)

Audit & Supervisory Board
Member (Independent
Outside Audit & Supervisory
Board Member)

Director, Senior Managing
Executive Officer

History of corporate governance reforms

37

June 2003

Yodogawa Steel started one-year terms for Directors in order to build a dynamic structure for the Board of Directors and one that is optimalfor clarifying management responsibilities and responding to changes in the business environment.

June 2004

Yodogawa Steel adopted the Executive Officer system, reducing the number of Board of Directors members from no more than 18 to no
more than seven. The purposes are to have a measure of distance between Directors’ oversight/decision-making functions and businessexecution functions, to increase the strength and efficiency of the oversight functions of the Board of Directors, and to increase the speedof business operations.
After terminating the Directors’ retirement benefits program, Yodogawa Steel established a stock option (stock-based remuneration)
program for Directors and Executive Officers. This program raises the commitment and motivation of Directors and Executive Officers toincrease sales and earnings as well as the stock price.

June 2006

One Outside Director was elected in order to facilitate energetic, constructive, and engaging discussions during Board meetings while also
strengthening the transparency of oversight and decision-making processes.

June 2015

The number of Independent Outside Directors increased to two in order to facilitate more energetic, constructive, and engaging
discussions during Board meetings while also strengthening the transparency of oversight and decision-making processes.

December 2015

Following the adoption of a corporate governance code in Japan, the Yodogawa Steel Corporate Governance Guidelines were establishedas the highest set of regulations after the laws and regulations of Japan and the Yodogawa Steel Articles of Incorporation.

Director(Independent Outside Director)

FY2022 (as of June 21, 2023)
Attendance by Outside Directors and Outside Audit & Supervisory Board Members
Name

Attendance at Board of Directors meetings

Attendance at Audit & Supervisory Board meetings

Mitsuaki Yuasa

14 of 14 meetings—

Sadato Kobayashi

14 of 14 meetings——

June 2018

In order to further strengthen governance, a third Outside Director was added to the Board of Directors, resulting in seven Directors, threeof whom are Independent Outside Directors.

Katsuyuki Kuse

14 of 14 meetings

Miho Ishihara

14 of 14 meetings

15 of 15 meetings

June 2019

A female Outside Audit & Supervisory Board Member was elected in order to facilitate more energetic discussions from diverse
perspectives at Board of Directors meetings.

Ritsuko Watanabe

14 of 14 meetings

15 of 15 meetings

December 2021

The Nomination & Remuneration Committee was established for the purposes of increasing the fairness, transparency and objectivity ofprocedures for director nominations and remuneration and further upgrading corporate governance.

38

A Base that Supports Value Creation (ESG Information)

ESG Information

Background of Outside Officers / Reason for Election

Analysis and Evaluation of Effectiveness of the Board of Directors

Mitsuaki Yuasa

Miho Ishihara

Sep. 1973
Jun. 2006
Jul. 2006
Jun. 2008
Nov. 2008
Jun. 2009
Jun. 2016

Oct. 1996
Jan. 2002
Feb. 2006
Apr. 2009

Reason for Election
As a certified public accountant, Mr. Yuasa has considerable expertise involving
finance and accounting. He has experience as an outside officer of a publicly
owned company and can use his knowledge and experience for the
management of Yokogawa Steel.

Sadato Kobayashi
Apr. 1974

Joined Mitsubishi Resin Corp. (currently Mitsubishi Chemical
Corporation)
Apr. 2010 Executive Officer and General Manager of Nagahama Plant andSantou Plant of Mitsubishi Resin Corp.
Apr. 2011 Managing Executive Officer of Mitsubishi Resin Corp. and Managing
Executive Officer of Mitsubishi Chemical Holdings Corporation
Apr. 2015 Representative Director and Executive Vice President of Mitsubishi
Chemical Holdings Corporation
Apr. 2017 Advisor of Mitsubishi Chemical Corporation
Jun. 2019 Advisor of Japan Excel-Management Consulting Co., Ltd. (current)
Jun. 2021 Outside Director of Yodogawa Steel (current)

May 2010

Dec. 2010
Jun. 2019
Jun. 2022

Joined Asahi & Co. (currently KPMG AZSA LLC)
Registered as Certified Public Accountant
Joined Protiviti Japan (currently Protiviti LLC)
Joined EY Advisory Co., Ltd. (currently EY Advisory & Consulting
Co., Ltd.)
Opened Ishihara Certified Public Accountant Office (currently
Ishihara Certified Public Accountant & Certified Public Tax
Accountant Office) (current); Joined Hibiki Audit Corporation(current)
Registered as Certified Public Tax Accountant
Outside Audit & Supervisory Board Member of Yodogawa Steel(current)
Outside Director of NICHIA STEEL WORKS, LTD. (current)

Reason for Election
Ms. Ishihara is a certified public accountant and tax accountant and has
considerable experience as a consultant for internal controls and risk
management. She can use this knowledge and experience to further improvethe corporate governance of Yodogawa Steel.

Ritsuko Watanabe
Sep. 2007 Registered as attorney; Joined Hommachi Chuo Law Office (current)
Jun. 2020 Outside Audit & Supervisory Board Member of Yodogawa Steel(current)

Yodogawa Steel asks all Directors and Audit & Supervisory Board Members to complete questionnaires in order to analyze
and evaluate the effectiveness of the Board of Directors. The following is a summary of the evaluation performed in the fiscal
year ended March 31, 2023.
1 Questionnaires

Scope

All 7 Directors and all 4 Audit & Supervisory Board Members

FormatAll responses with names

Coverage

Board composition, roles of the Board, operation of Board meetings, status of corporate governance, status of theNomination & Remuneration Committee, which was voluntarily established, and other subjects

2 Analysis and evaluation results

Reason for Election

39

Mr. Kuse has considerable experience as an attorney and extensive knowledge
about corporate law, particularly concerning intellectual property. He can use
this expertise to incorporate external perspectives in the management of
Yodogawa Steel.

To further increase our corporate value as a global organizationthat is worthy of a Prime Market listing, we will use the points
identified by this evaluation to hold more open discussions byinternal and external officers with the goal of further increasing
the effectiveness of the Board of Directors.

Diagram of governance structure (as of March 31, 2023)

General Meeting of Shareholders
Advisory

Nomination &Remuneration Committee

Response

Board of Directors(Directors)

Company-wide
Committees

ReportReportPresident andRepresentative Director
Instructions

ReportExecutive Committee
Instructions

Audit
Rep

ort/

Appointment/dismissal

Sug

Audit & Supervisory Board(Audit & Supervisory Board Members)

ges

Audit

tion

ReportBusiness and Management
Divisions

Cooperation

Coo

per

atio

n

Compliance &Risk Management Committee
Instructions

n

atio

per

Coo

ReportInstructions
ReportReportInstructions

Appointment/dismissal

Appointment/dismissal

Appointment/dismissal

Katsuyuki Kuse
Apr. 1991 Registered as attorney, Joined Kansai Law & Patent Office
Aug. 1993 Joined Kudawara & Kuse Law Offices, Partner
Jun. 2009 Member of the Intellectual Property Center of the Japan Federationof Bar Associations (current)
Sep. 2010 Representative of Kudawara & Kuse Law Offices (current)
Jun. 2013 Instructor of Japan Intellectual Property Association
Apr. 2019 Osaka Bar Association, Chairperson of the Intellectual Property
Committee
Jun. 2021 Outside Director of Yodogawa Steel (current)

3 Actions in response to the evaluation results

Reason for Election
Ms. Watanabe is an attorney with the extensive knowledge and experience for
performing audits from an external and independent standpoint.

Reason for Election
Mr. Kobayashi has many years of management experience at a publicly owned
company, including the supervision of overseas companies, and considerable
experience and knowledge concerning manufacturing and manufacturing
technology. This expertise can be used for the management of Yodogawa Steel.

grams; and the effective operation of the Nomination & Remuneration Committee.

The Board of Directors is generally operating properly with regard
to its composition, roles, how meetings are held and corporate
governance and the Nomination & Remuneration Committee arealso functioning properly.
The questionnaire identified the following measures for further
increasing the effectiveness of the Board of Directors: more thorough discussions of important issues and the vision for the
Yodogawa Steel Group in relation to changes in the businessclimate; the effective implementation of risk management pro-Internal Audit Department
Whistleblowing system Internal channel

Audit

Accounting auditor

Registered as Certified Public Accountant
Retired from KPMG AZSA & Co. (currently KPMG AZSA LLC)
Opened Mitsuaki Yuasa CPA Office (current)
Outside Audit & Supervisory Board Member of Yodogawa Steel
Outside Member of the Board of WORLD Co., Ltd.
Outside Audit & Supervisory Board Member of Sojitz Corporation
End of term as Outside Audit & Supervisory Board Member of
Yodogawa Steel
Jun. 2018 Outside Director of Yodogawa Steel (current)

Whistleblowing

Audit

Report40

Financial Information: Overview of Consolidated Results of Operations
Market environment

18,659 million yen to 220,314 million yen. Operating profit decreased
1,683 million yen to 12,665 million yen, ordinary profit decreased
230 million yen to 17,686 million yen, and profit attributable to owners of parent increased 804 million yen to 10,593 million yen.
Regarding sales the business climate was challenging during the
fiscal year because of the rapid increase in all categories of expenses in Japan and other countries. The Yodogawa Steel Groupfocused on meeting demand that emerged as economies worldwide
began recovering from the pandemic downturn and took actions
involving selling prices of products that can be reproduced. Selling
prices tended to improve in Japan and furthermore, our Thailand
subsidiary PCM PROCESSING (THAILAND) Ltd. (PPT) showed arobust performance, which led to an increase in consolidated sales.
Although the business climate was challenging primarily due to therising costs of materials and many other items, operating profit
increased because of the selling price revisions. On the other hand,
our Taiwan subsidiary Sheng Yu Steel Co., Ltd. (SYSCO) saw asignificant decrease in earnings, impacted by deterioration in overseas markets. In China, the sales volume at our subsidiary
Yodogawa Shengyu (Hegei) High-Tech Steel Co., Ltd. (YSS)decreased mainly due to the zero COVID-19 policy. The result wasa decrease in consolidated operating profit. Ordinary profit
decreased less than operating profit did mainly due to an increasein gain on sale of investment securities in non-operating income.
The decrease in profit attributable to owners of parent was larger
than the decrease in ordinary profit mainly because of an increase
in income taxes-current. However, profit attributable to owners ofIn the fiscal year ended March 31, 2023, there was a slow recoveryof the Japanese economy as economic activity began returning tonormal due to the progress of the With Corona policy. Despite thisimprovement, there was an increasing downward pressure on theeconomy, particularly in the second half of the fiscal year, due to thereasons such as the rising cost of resources and energy caused by
the Ukraine crisis, higher prices of imported goods because of the
yen’s decline and other reasons.
In the United States, concerns about slowing economic growth are
increasing because of inflation and monetary tightening. In China,
the zero-COVID policy, real estate market downturn and other factors are holding down demand and economic growth. In Europe,
economic growth is slowing because of accelerated inflation, whichis raising the cost of energy and other items, and rising interest rates.
In Japan, while automobile production seems to be picking up as
semiconductor supply shortages have eased and by other factors,
non-residential construction and machinery orders are weak. Under
the circumstances, orders and production have been declining inthe steel industry. In overseas steel markets, anticipation for economic recovery was seen in China after its zero-COVID policy was
reversed. Although the economy did show signs of improvement,
the overall economy remains weak because of economic slowdowns in several regions.

Results of operations
The Yodogawa Steel Group’s net sales in the fiscal year increased

Net sales

Operating profit(Millions of yen)

220,000

220,314201,655

110,000+

9.3% YoY

0

14,00014,34912,6657,000−

11.7% YoY

(123rd term)

FY3/23(124th term)

FY3/22(123rd term)

FY3/23(124th term)

The outlook for the global economy is expected to remain unclear
because of a combination of factors. Even though the Chinese
economy is anticipated to recover following the abolishment of its
zero-COVID policy, concerns remain over an economic downturncaused by the effects of the prolonged Ukraine-Russia conflict andmonetary tightening in the United States and Europe. Furthermore,signs of financial instability are suspected. In Japan, the trend ofrising prices is expected to continue and the Bank of Japan’s monetary policy trend needs to be closely monitored. The economy isexpected to be significantly affected by the aforementioned global
risk factors.
In the steel markets in Japan and other countries, while prices ofraw materials used for steelmaking as well as cost of resources andenergy are expected to remain at a high level, there is additional
geopolitical risks such as the situation in Russia and Ukraine andconcerns over the Taiwan emergency. Due to this situation, the steelmarket, including the balance between supply and demand, islikely to remain unstable for the time being.
The Yodogawa Steel Group as well is likely to continue to operate
in a challenging business climate due to the unpredictability andinstability of demand and expenses in all regions.

Total assets(Millions of yen)

(Millions of yen)

11,00010,5939,789

250,000

Cash and cash equivalents at end of period
251,057

244,671(Millions of yen)

40,71240,000

Dividends per share
(Yen)

110

102

111

30,9615,500+

8.2% YoY

125,000+

2.6% YoY0

FY3/22Distributing earnings to shareholders is one of the highest priorities
of Yodogawa Steel. Earnings are distributed by paying dividends
that reflect results of operations, repurchasing stock and in otherways. The basic policy for dividends that are in line with our resultsof operations is to make payments that are stable and continuous.
Dividends also take into consideration the need for funds for investments and other actions for increasing corporate value, the outlook
for sales and earnings, the need to maintain financial soundness,and other items. Regarding shareholder returns for the three fiscal
years ending on March 31, 2024, 2025 and 2026, we will placeemphasis on dividend payments, maintaining an annual dividend of
at least 50 yen per share considering factors such as our capital
investment plan and financial condition, with the target consolidated
payout ratio of 30% or more to pay dividends that reflect results ofoperations.
The basic policy is to pay interim and year-end dividends. In accordance with Article 459, Paragraph 1 of the Companies Act, theYodogawa Steel Articles of Incorporation state that dividends canbe paid based on a resolution of the Board of Directors, except incases where stipulated otherwise by laws and regulations.
The year-end dividend for the fiscal year that ended March 31, 2023
is to be 71 yen per share. With the interim dividend of 40 yen, thiswill result in a dividend of 111 yen per share for this fiscal year.
There is currently no dividend forecast for the fiscal year ending
March 31, 2024. An announcement will be made promptly once it
becomes possible to announce a dividend forecast.

Outlook

Profit attributable to owners of parent

00

FY3/22

41(Millions of yen)

Returns to shareholders

parent increased year on year because of the high percentage of
non-controlling interests at SYSCO, which was a major reason thatthe consolidated profit decreased.

(123rd term)

FY3/23(124th term)

20,000+31.5% YoY0

FY3/22(123rd term)

FY3/23(124th term)

55

0

FY3/22(123rd term)

FY3/23(124th term)

FY3/22(123rd term)

FY3/23(124th term)42Consolidated Financial Statements

Financial Information

Consolidated Balance Sheet(Millions of yen)

FY3/22

FY3/23

FY3/22(as of March 31, 2022) (as of March 31, 2023)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade, and contract assets
Electronically recorded monetary claims-operating
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Other
Total intangible assets
Investments and other assets
Investment securities
Retirement benefit asset
Deferred tax assets
Other
Total investments and other assets
Total non-current assets
Total assets
43

31,87253,6713,412
2,120
22,027
6,801
17,4997,229(110)
144,523

40,18949,521
4,454
4,207
23,285
6,476
19,9242,961(152)
150,867

66,010(46,954)
19,056
144,768(130,382)
14,386
19,312
173
(81)
92
2,439
12,374(11,202)1,172
56,45967,510(48,585)
18,925
147,138(134,183)
12,95519,095
177
(106)
70
4,457
12,343(11,246)
1,097
56,602

1,966
1,966

2,076
2,076

40,678441
182
419
41,721
100,147
244,671

40,193724
137
454
41,510100,189
251,057

Consolidated Statement of Income

FY3/23

FY3/22

FY3/23(April 1, 2021 to March 31, 2022)(April 1, 2022 to March 31, 2023)

Net sales

201,655

220,314

Cost of sales

168,471

187,650

Gross profit

33,18332,664

Selling, general and administrative expenses

18,83419,998Operating profit

14,34912,665Non-operating income

3,918

5,350

Non-operating expenses

351

329

17,916

17,686Extraordinary income

148

187

Extraordinary losses

971

1,006

Profit before income taxes

17,092

16,867

Income taxes-current

4,999

5,321

Income taxes-deferred

(167)

(348)

Total income taxes

4,831

4,973

Profit12,261

11,893

Profit attributable to non-controlling interests

2,471

1,299

Profit attributable to owners of parent

9,789

10,593(as of March 31, 2022) (as of March 31, 2023)

Liabilities
Current liabilities
Notes and accounts payable-trade
Electronically recorded obligations-operating
Short-term borrowings
Lease obligations
Income taxes payable
Contract liabilities
Provision for bonuses
Provision for product warranties
Other
Total current liabilities
Non-current liabilities
Lease obligations
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Provision for retirement benefits for directors (and other officers)
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets(Millions of yen)

20,676
2,329
1,320
76
3,590
169
1,658
671
7,064
37,557

17,881
2,987
1,328
61
3,159
156
1,259
971
7,285
35,092

18
4,103
844
39
6,285
3,885
15,17552,733

10
3,873
807
32
5,517
3,816
14,05849,15023,22018,272
118,475(11,992)
147,977

23,22018,267126,064(11,895)
155,657

16,174
(0)
1,609
4,433
101
22,319187
21,454
191,937
244,671

16,115
—
1,529
5,958
412
24,016140
22,092201,906
251,057

Ordinary profit

Consolidated Statement of Comprehensive Income(Millions of yen)

FY3/22

FY3/23(April 1, 2021 to March 31, 2022)(April 1, 2022 to March 31, 2023)

Profit12,261

11,893

Other comprehensive income

1,899

3,022

Comprehensive income

14,161

14,91644

Consolidated Financial Statements

Financial Information

Consolidated Statement of Changes in Equity (April 1, 2022 to March 31, 2023)
Shareholders’ equity
Share
capitalBalance at beginning of period

23,220CapitalsurplusRetainedearnings(Millions of yen)

Accumulated other comprehensive income

TreasurysharesValuation
Total
difference onshareholders’available-forequity
sale securities

18,272 118,475 (11,992) 147,977

16,174

Deferred
gains orlosses onhedges

Revaluation
reserve for
land

(0)

Share
NonForeign
Remeasure­ Total accumucurrency
lated other acquisition controllingments ofrightsinterests
translation
comprehendefinedadjustment benefit plans sive income

1,609

4,433

101

22,319187

Total net
assets21,454 191,937

Changes during period(3,085)

Dividends of surplus
Profit attributable toowners of parent(3,085)

10,593Purchase of treasury
shares
Disposal of treasury
shares(5)

Reversal of revaluation
reserve for land

10,593

(5)

(5)

(5)

101

96

96

80

80

Net changes in items
other than shareholders’equityTotal changes during period
Balance at end of period(3,085)

10,59380(58)—
23,220

(5)

7,588

96

Corporate Profile / Stock Information (as of March 31, 2023)

0

(80)

1,524

311

1,696

(46)

7,679

(58)

0

(80)

1,524

311

1,696

(46)

18,267 126,064 (11,895) 155,657

16,115

—

1,529

5,958

412

24,016

140

638

2,288

638

9,968

Corporate Profile

Main Affiliated Companies

Company name Yodogawa Steel Works, Ltd.

Consolidated Subsidiaries

Established

January 30, 1935

Capital23,220,815,228 yen

Employees

1,191

Major Offices & Plants
Head office

4-1-1, Minamihonmachi, Chuo-ku, Osaka
541-0054, Japan+81-6-6245-1111

Tokyo branch

1-3-7, Shintomi, Chuo-ku, Tokyo
104-0041, Japan+81-3-3551-1171

Sales offices

Sapporo, Sendai, Morioka, Tokyo, Takasaki, Hokuriku,
Nagoya, Osaka, Hiroshima, Takamatsu, Kochi, Yahata,
Fukuoka, Kagoshima, Okinawa

PlantsOsaka (Osaka prefecture), Kure (Hiroshima prefecture),
Ichikawa (Chiba prefecture), Izumiotsu (Osaka prefecture),
Himeji (Hyogo prefecture)

Takada Kozai Kogyo Co., Ltd.

Steel sheet processing, sales, andwarehousing

Sheng Yu Steel Co., Ltd.

Steel sheet manufacturing and sales

Yodoko Shoji Co., Ltd.

Steel wholesaling and transportation

Keiyo Tekko Futo Co., Ltd.

Distribution and warehousing

Yodoko Kohatsu Co., Ltd.

Golf course and other management andreal estate leasing

Yodogawa-Shengyu (Hefei)
High-Tech Steel Co., Ltd.

Steel sheet manufacturing and sales

PCM Processing (Thailand) Ltd. Pre-painted steel sheet manufacturing,processing, and sales
Fukui Yodoko Co., Ltd.

Manufacture and processing of exterior
products and other activities

Equity-Method Affiliated Companies
Sadoshima Corporation

Steel wholesaling

22,092 201,906

Principal Shareholders
Name

Consolidated Statement of Cash Flows
FY3/22

FY3/23(April 1, 2021 to March 31, 2022)(April 1, 2022 to March 31, 2023)

Cash flows from operating activities(10,645)

17,336

Cash flows from investing activities(1,985)(3,160)Cash flows from financing activities(1,226)(5,092)

Effect of exchange rate change on cash and cash equivalents

1,702

667

Net increase (decrease) in cash and cash equivalents(12,154)

9,750

Cash and cash equivalents at beginning of period

43,11630,961

Cash and cash equivalents at end of period
45(Millions of yen)

30,961

40,712

Shares Owned Shareholding Ratio(Thousands of shares)(%)

The Master Trust Bank of Japan, Ltd. (Trust Account)

2,745

9.41

Yodoko Partners’ Shareholding Association

1,135

3.89

Resona Bank, Limited.

1,068

3.66

Mizuho Bank, Ltd.

1,062

3.64

Northern Trust Co. (AVFC) RE USL NON-TREATY CLIENTS ACCOUNT

682

2.33

Custody Bank of Japan, Ltd. (Trust Account)

636

2.18

Hanwa Co., Ltd.

628

2.15

Nippon Life Insurance Company

618

2.12

POSCO

600

2.06

JFE Steel Corporation

587

2.01

Notes: 1. Treasury shares (5,675,735 shares) held by Yodogawa Steel are not included in this list ofmajor shareholders.
2. Shareholding ratios do not include treasury shares (5,675,735 shares).

Share Ownership by Category
Securities
corporations

Other companies
in Japan

1.18％

23.63％

Individuals
and others

16.04％

Treasuryshares

16.29％
Overseas
investors

20.64％

34,837,230
sharesFinancial
institutions

22.18％
46

Shareholder Reminders
Account closing date

March 31

Ordinary general meeting ofshareholders

June

Record dateOrdinary general meeting of shareholders,
year-end dividend March 31
Interim dividend September 30
Other dates shall be in accord withpre-announced schedules.

Number of shares per trading unit 100 shares
Shareholder registryadministrator & special account Mizuho Trust & Banking Co., Ltd.
administrator
Address of shareholder
registry administrator's
office of operations

Stock Transfer Agency Department
Mizuho Trust & Banking Co., Ltd. 1-3-3,
Marunouchi, Chiyoda-ku, Tokyo, Japan

Method of public noticeElectronic notice
Please see our website
https://www.yodoko.co.jp/english/

Mizuho Trust & Banking Co., Ltd.
Stock Transfer Agency Department Contact
Tel
OnlinePostal address

4-1-1 Minami-honmachi, Chuo-ku, Osaka
541-0054, Japan
Tel. +81-6-6245-1111 (main switchboard)
https://www.yodoko.co.jp/english/

0120-288-324 (toll free in Japan)
https://www.mizuho-tb.co.jp/daikou/
Stock Transfer Agency Department
Mizuho Trust & Banking Co., Ltd.
1-3-3, Marunouchi, Chiyoda-ku, Tokyo 100-8241, Japan

Procedures Regarding Stock
Stock handling procedures differ depending on whether shares are held in asecurities brokerage account or in a special account. Please see below forwhom to contact in each case.

Shares held in a securities brokerage accountProcedures and information

Contact∙ Selling or purchasing odd-lot shares∙ Change of name, address, etc.
∙	Changes in method of dividend receipt andSecurities brokerage managing youraccount

payment∙ Information on mail and returned mail∙ Information on unpaid dividends*∙ Information on other stock handlingprocedures

Shareholder
registryadministrator

Mizuho Trust &Banking Co., Ltd.
Stock Transfer
Agency Department

Shares held in a special accountProcedures and information∙ Selling or purchasing odd-lot shares∙ Change of name, address, etc.
∙	Changes in method of dividend receipt andpayment∙ Information on mail and returned mail∙ Information on unpaid dividends*∙	Information on other stock handlingprocedures

Contact
Specialaccount
managementadministrator

Mizuho Trust &Banking Co., Ltd.
Stock Transfer
Agency Department

Shareholder
registryadministrator

Mizuho Trust &Banking Co., Ltd.
Stock Transfer
Agency Department*	Payment of unpaid dividends can be handled at the Mizuho Bank, Ltd. Head Office or at
one of the branch offices.