Securities code: 5451

Yodogawa Steel Works, Ltd.

YODOKOREPORT
123rd Term Report
April 1, 2021-March 31, 2022

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

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
Steel Group is expected to remain unclear. Major
sources of uncertainty are the high cost of resourcesand energy due to the Ukraine crisis, slowing
economic growth in China caused by lockdowns ofShanghai and other major cities, and the U.S. shift
to higher interest rates. In Japan, a combination ofprogress and setbacks concerning the economic
will probably continue because of risk factors
involving overseas business and the effects of thepandemic on economic activity.
In the steel market, prices of raw materials and steel
products are continuing to increase in Japan andaround the world. For the time being, the outlook forthis market is expected to be extremely uncertain
due to concerns about the instability of the balance

between the supply and demand for steel.
An unpredictable and unstable environment for
demand and expenses is expected to continue inevery region where group companies operate. As aresult, market conditions are expected to remainvery difficult.
To succeed in this uncertain business climate, allgroup companies are dedicated to achieving thegoals of the Yodogawa Steel Group Medium-termManagement Plan 2022. To become even more
profitable, companies are establishing positions in
new markets and increasing sales of value-added
products while taking full advantage of the speed
and agility that are a key strength of the Yodogawa
Steel Group.
We sincerely ask for your continued support andguidance.
June 2022
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

1.7%

Continuous color coating
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

95.4%

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 Emerge Ⅱ

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

Construction

Building
Materials & Exterior
Products Segment

Exterior products

Roll Business

Rolls

1.3%
Steel Sheet-related
Business

Limestone(Fiscal year ended March 31, 2022)

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

201,655 million yen

1.5%

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

0.5%

0.5%

0.8%

●

98.2%

●

127,549●●●

million yen

China
●
■

●

(Fiscal year ended March 31, 2022)
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

1.1%

3.9%
6.4%

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

Net sales by country and region
Oceania●

3.8%
TaiwanChina
Yodogawa-Shengyu (Hefei)
High-Tech Steel Co., Ltd.
(YSS China)

Net sales by country and region
Other

Thailand

Japan

115

1,526

China

253

2,392

(Fiscal year ended March 31, 2022)

China

0.4%

95.6%

Southeast
Asia

4.1%

68.9%

14,02463.9%

No. of employees by region

498

●
●

Japan

million yen

54,061(Fiscal year ended March 31, 2022)

Taiwan

Other

3.9%
6.1%

million yen

18.5%

5

TaiwanSoutheast Asia

201,655

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

5.1%

China &
Hong Kong

●

●

●
■

●
■

North /
Central /South America

17.3%

million yen(Fiscal year ended March 31, 2022)

Thailand(Fiscal year ended March 31, 2022)

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

0.2%

99.8%

3,931
million yen(Fiscal year ended March 31, 2022)

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 2022
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

Use speed and agility
to build a stronger
profit structure•	
Make the business model even more
powerful
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

Overseas net sales

201,655
173,805

167,419

154,066

Total assets(Millions of yen)

250,000

215,638
170,574

145,963

110,000

209,465

201,125
167,291
167,671

180,296244,671
191,937

52,51645,35820,000(119th term)

FY3/19(120th term)

FY3/20-10,000

46,230(121st term)

FY3/21(122nd term)

FY3/22

Operating profit
Ordinary profit
Profit attributable to owners of parent(Millions of yen)

20,000(119th term)

9,829
7,360

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

9,789

9,791
7,880
6,257

FY3/19(120th term)

FY3/20(121st term)

FY3/21(122nd term)

FY3/22(123rd term)(119th term)(119th term)(120th term)

FY3/20(121st term)

FY3/21(122nd term)

Net income per share

(Yen)

350

151,586

150,236

150,037

162,472(121st term)

FY3/21(122nd term)

FY3/19(120th term)

FY3/20(121st term)

FY3/21(122nd term)

FY3/22(Yen)

Depreciation and amortization

2,241

3,660

(119th term)

FY3/19(120th term)

3,536

5,115

5,907

FY3/20(121st term)

FY3/21(122nd term)

3,993(123rd term)

2,969

75

70

70

75

2,245

2,088

2,077

0

FY3/18(119th term)

FY3/19(120th term)

FY3/20(121st term)

FY3/21(122nd term)

FY3/22(123rd term)

10

9

4

4

2017

2018

437

(119th term)

FY3/19(120th term)* Yodogawa Steel started applying Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan (ASBJ) Statement No. 29, March 31, 2020) at the
beginning of the fiscal year that ended in March 2022. Significant financial indicators for the previous fiscal year have been revised to incorporate this new standard.

FY3/20(121st term)

FY3/21(122nd term)

FY3/22(123rd term)

9.4
11
5

2019

FY3/18(119th term)

FY3/19(120th term)

FY3/20(121st term)

FY3/21(122nd term)

FY3/22(123rd term)

2020

2021

(Year)

Environmental protection expenses, CO2 emissions(reduction vs. fiscal 2013 emissions*) Consolidated (Japan)
Investment
Environmental protection expenses
CO2 emission reduction(Millions of yen)

712

0

10

*Regular employees only

670

0

659

644
19

7

295

(Hours)

0

2,185

0

FY3/18

FY3/22(123rd term)

8

1,063

1,000

486

0

7.6

500

102

FY3/21(122nd term)

8.9

8.0

1,000

3,000

131

FY3/20(121st term)

No. of employees using the child care leave system
Average monthly overtime(People)FY3/22

Treasury shares acquired

3,000

2,000

FY3/19(120th term)

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

2,224

Total dividends(Millions of yen)

5,096

(119th term)

7.7

Total dividends, treasury shares acquired (non-consolidated)
5,644

1,206

0

FY3/18(123rd term)

Net assets per share (consolidated)
6,000

FY3/18(123rd term)

0(119th term)

339

3,908

1,233

1,204

1,195

18

4,196
3,024

Non-consolidated

2,392

2,381

0

FY3/22

8,740

5,000

FY3/18Dividends per share

Capital expenditures

1,196

6,911

100,000(123rd term)

175(120th term)

FY3/20170,296

215

211

FY3/19-12,630

10,0005,112
247-10,645(Millions of yen)

FY3/22

Net income per share, dividends per share (consolidated)-4,672200,000

0

FY3/191,250-7,093

FY3/18

2,431

2,422

-1,985(Millions of yen)0

FY3/18-9,026

2,425

5,927 4,519

Capital expenditures, depreciation and amortization (consolidated)

14,34912,284

1,232

Shareholders’ equity (consolidated)

17,916
10,856

1,933

Consolidated(People)2,500

17,14912,476-20,000

FY3/18(123rd term)

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

8,273 9,505

10,000No. of employees (consolidated, non-consolidated)

Cash flows from investing activities-1,4070

FY3/18Cash flows from operating activities
Free cash flow

(Millions of yen)

072,91009226,004

Net assets

125,000

62,902

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

Total assets, net assets (consolidated)

20

23
18

10
63

26

58

23

FY3/18

FY3/19FY3/20FY3/21

FY3/22(120th term)

40

623

67

(119th term)(%)(121st term)(122nd term)0(123rd 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

Q
During the fiscal year that ended in March 2022,
there were dramatic shifts in many items thatdefine our business climate. Changes are driven
by the pandemic, now in its third year, the risingcost of resources and energy, the associated rapid
increase in prices of steel products, supply chain
disruptions and other events.
The Yodogawa Steel Group’s net sales in the fiscal
year increased 38.2% to 201,655 million yen.
Operating profit increased 82.1% to 14,349 million
yen, ordinary profit increased 83.0% to 17,916
million yen, and profit attributable to owners ofparent increased 56.4% to 9,789 million yen.
Although I expect that the environment for ourbusiness operations will remain uncertain, groupcompanies will be working hard to remain
consistently profitable. I plan to accomplish thisgoal by taking on many new challenges while
upgrading our ability to take actions needed toresponse to changes.

Satoshi Nitta President and Representative Director

Explaining the valuable roles thatour group fulfills, taking actions tobecome even more profitable
11

What is your assessment of the Yodogawa
Steel Group’s performance in the fiscal year
ended March 31, 2022?

and earnings were much higher than in
A Sales
the previous fiscal year.
In the fiscal year ended March 31, 2022, the economy
recovered, primarily with the support of consumer spending,as progress was made fighting the pandemic. However, theJapanese and global economies were unstable because of
the higher cost of resources and energy and other events.
Despite these difficulties, our sales and earnings werehigher than in the previous fiscal year. One reason ismeasures in Japan to sell steel sheet products at proper
prices. Prices of raw materials for our products as well asof zinc and aluminum, which are secondary materials,
continued to increase. We asked our customers to accept
price revisions because we could not offset these higher
costs by our own cost-reduction activities alone. As aresult, we raised the prices of many products, primarily
steel sheet products. Our sales and earnings increased inJapan in part because of a recovery in our sales volume
supported by the relatively strong demand for steel in theconstruction sector and the success of our sales activities.
Outside Japan, the sales volume at Sheng Yu Steel Co.,
Ltd. of Taiwan (SYSCO) increased in Taiwan and forexports. In addition, prices of products were higher. The
result was a big increase in earnings. PCM Processing(Thailand) Ltd. (PPT) faced challenges due to the pandemic
but was profitable because of strong sales of value-added
products. In China, Yodogawa-Shengyu (Hefei) High-Tech
Steel Co., Ltd. (Haigo) (YSS) succeeded at improving theirprofitability, which was a major goal. The result was a fiscal
year operating profit. All of this progress in Japan and these
Asian countries made a contribution to our consolidated
results of operations.

YODO Monooki Storage Shed Esumo

are the highlights or key points about the
Q Whatperformance of the business segments?

A

New design for YODO Monooki Storage Shed
Esumo series and the start of production at the
new plant of Fukui Yodoko

In the Building Materials & Exterior Products Segment,
sales started in February 2022 for a new lineup ofredesigned YODO Monooki Esumo storage sheds.
Modifications to designs reflect changes in customers’ life
styles, such as the placement of compact storage sheds inplaces where they are visible to others. All of these sheds
feature outstanding designs and ease of installation and use.
The new Esumo storage sheds are manufactured at the
new plant of Fukui Yodoko Co., Ltd., which started
operating at the end of 2021. We will use a website
specifically for providing information about these sheds,
place advertisements on SNS websites and take manyother actions to make people aware of these storage sheds.
12Interview with Top Management

In April 2021, we celebrated the 50th anniversary of thelaunch of our YODO Monooki storage sheds by starting
sales of a limited edition of storage shed, which was
created with Coleman Japan Co., Ltd. This new modeltargets the increasing demand in Japan for sheds foroutdoor recreation, growing vegetables at home, do-ityourself home improvement projects, and other hobbies
and activities. The limited edition of 2,000 storage sheds
sold out within two weeks of the start of sales.
YODOKO+, our new design brand, debuted in March
2022. The central concept is to sell products designed toreflect the “new normal.” The new brand, which will
eventually extend from exterior to interior products, started
with the launch of the HOME OFFICE, a large cabinet that
opens to create office space and closes when not used tosave space.
Since sales of YODO Monooki started in 1970, the lineup
of exterior products that we manufacture and sell has
expanded to include garages, warehouses, refuse
collection units and many other products. The desire to
expand ways to use our steel sheets was one reason forthe launch of these products. However, this objective alone
is not enough to create outstanding products. Successrequires creating products from our customers’ perspective
and targeting the wishes of our customers. The shedcreated jointly with Coleman Japan and the YODOKO+
brand are two examples of how we are creating productsthat customers want. We will continue to seek new ideas
and business styles that go beyond the traditionalguidelines for our operations in order to tackle newchallenges and develop products with significant value forour customers.
As I mentioned earlier, there were dramatic changes in thebusiness climate for the steel industry during the fiscal year.
Based on our commitment to being a manufacturer of steel
products from a standpoint close to customers, I believethat we were able to heighten our profile in the steel
13Interview with Top Management

industry during the fiscal year. I also believe that ouractivities further increased the support that we receive fromour customers.

Q
A

What types of environmental activities will
Yodogawa Steel be emphasizing now that thecompany is listed on the new Prime Market?
Preparations are under way for the start offinancial disclosures based on the Task Force on
Climate Related Financial Disclosures (TCFD).

Our stock listing was moved to the Prime Market when thismarket started operating on April 4, 2022. Companies
listed on this market are required to continue upgrading
their governance and the disclosure of information. The
revised Corporate Governance Code that was announced
in 2021 increased the demand for companies to provide
information based on the TCFD. We have started
numerous initiatives for strengthening environmental
activities, including the establishment in 2021 of a
Sustainability Promotion Department.

Until now, energy conservation measures have been the
primary component of our environmental programs.
Naturally, lowering the amount of energy we use cuts thecost of our operations. As a result, an energy conservation
project was relatively easier to get started. But now wehave reached the point where the public expects
companies to lower their environmental impact even byincreasing their expenses.
All companies must play a role in creating a low-carbon
society. At the Yodogawa Steel Group, the Sustainability
Promotion Department is playing a central role for finding
ways to use more electricity produced from renewableenergy sources and starting to use carbon neutral gases.
We are also examining ways to effectively use solar power
generated at our company facilities. We are collecting abroad range of information and conducting studies. The
results of these activities will be used as the basis for
programs that enable our group to help fight climate change.

Q Why did you decide to acquire ARDUC Co., Ltd.?
aim is to use ICT for rebuilding our
A Thebusiness processes

An example of how YODOKO+ HOME OFFICE 900 can be used

For some time, the Yodogawa Steel Group has been taking
actions to accomplish a digital transformation of ouroperations. We have increased the use of digitaltechnologies, partly because of changes caused by the
pandemic. But more work is needed. This is why wedecided to purchase all of the stock of ARDUC in June
2021. Designing and developing software is the primaryactivity of this company.
ARDUC has a long list of accomplishments involving thedevelopment of semiconductor, solar panel and othersystems used at factories. By using this company’s

A solar energy system at the Izumiotsu Plant

knowhow and ICT acquired from its experience working atfactories, we plan to achieve the visualization of all data,from production to shipments. We will also use thistechnology for inventory management, the analysis oftrends of individual products and other tasks. The objective
is restructuring business processes for our entire group andmaking these processes more efficient.
Even as ARDUC works on the business processes of ourgroup, this company will continue its usual businessactivities with other customers. ARDUC remains dedicatedto providing all its customers with ideas for the best
possible solutions.

are your priorities in the fiscal year
Q Whatending in March 2023?
will continue to increase our resilience to
A We
unexpected events
I expect that the pandemic will continue and prices of raw
materials and energy will remain high in the fiscal year
ending in March 2023. Furthermore, the cost of major and14

Interview with Top Management

Interview with Top Management

secondary materials used to make our products may
become even higher. There is also a risk of suddenly having
difficulties procuring raw materials because of social or
economic events.
For example, we import some aluminum, the main material
used to make galvalume steel sheets, from Russia. Also,
the procurement of some types of fluororesin pre-painted
steel sheets has suddenly become difficult. We use thismaterial to make our pre-painted steel sheets. We areseeing many events worldwide that no one expected tohappen. Building a capability for responding with flexibility
to supply chain disruptions will be critical. All companies
want to purchase raw materials and other items at thelowest possible prices. However, placing priority on low
prices in today’s environment would create the risk of aninterruption in business operations. We will use an
extensive information gathering network throughout ourgroup in order to act quickly when an unexpected event
occurs.
The fiscal year ending in March 2023 is the final year of the
Yodogawa Steel Group Medium-term Management Plan
2022. Our goal for the last year is a consolidated ordinary
profit of at least 9 billion yen. In the fiscal year ended in

YODO Monooki Storage Shed Esumo

Deep Ocean Blue

15

Woody Cocoa

possible. These are the key roles of our group. In 2021, we
realigned our sales network in Japan to create an
infrastructure capable of operating efficiently while reflecting
the characteristics of each region of Japan. As we use thispowerful infrastructure, we will make our products evenmore appealing and competitive and reinforce our
reputation as a trusted partner in order to build on theunique strengths that have long defined the Yodogawa
Steel Group.

is your policy for distributing earnings to
Q Whatshareholders?
The YODO fire-proof panel Grand Wall is used at the Kobelco Kobesteelers
Nadahama Clubhouse

March 2022, our ordinary profit was 17,916 million yen.
However, this figure is not as high as it appears due to theinclusion of an inventory valuation gain.
This is why we must continue to work on becoming evenmore profitable. One step in the Building Materials &Exterior Products Segment is sales activities for YODO
Monooki Storage Shed Esumo, a compact storage shedwith a new look. In the Steel Sheet Segment, actions about
prices of our products will be one of our highest priorities.
As I explained earlier, the cost of major and secondary
materials, energy, and all other components of our cost
structure is climbing. When we ask customers to accept a
price increase, we thoroughly explain the reasons toreceive their understanding. We are firmly committed tofulfilling our obligation as a supplier while remaining atrusted partner of our customers.
I want everyone at the Yodogawa Steel Group to always
keep in mind the importance of trust. We work with ourcustomers to solve their problems and we aim to provide
the products that our customers need as quickly asA

Based on our dividend policy, we paid a
dividend of 102 yen for the fiscal year ended
March 31, 2022.

Q Finally, what is your message to stakeholders?
are using our strengths for steady progress
A We
during this period of dramatic and rapid changes
The business climate is extremely volatile and there areenormous uncertainties concerning the outlook. We willcontinue to make steady progress as we give ourcustomers a sound understanding of the strengths thatdefine our group. We are determined to achieve more
growth in sales and earnings and to continue increasing
our corporate value. Raising distributions to shareholders is
another goal. I am grateful for the support andunderstanding of our shareholders as we take the actions
needed to succeed in today’s challenging business climate.

Stable, continuous distributions to shareholders are one of
our highest priorities. Our guideline for the dividend is a
consolidated payout ratio between about 30% and 50%.
Based on this policy, we paid a 102 yen dividend (35 yeninterim dividend and 67 yen year-end dividend) for the fiscal
year that ended in March 2022, resulting in a consolidated
payout ratio of 30.0%.
Dividends per share
(Yen)

120

102

100
80

70

75

70

70

75

60
40
20
0

FY3/17

FY3/18

FY3/19(118th term)(119th term)(120th term)

FY3/20FY3/21

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

16Medium-Term Management Plan 2022

Overview of the Medium-Term Management Plan 2022

Major Initiatives of Business Segments
Steel Sheet
Business

Positioning of the Medium-Term Management Plans
FY
2019

FY
2020

FY
2021

FY
2022

FY
2023

Medium-Term
Management Plan
2022

Medium-Term
Management Plan
2019

FY
2024

FY
2025

3rd
Medium-Term
Management Plan

Continued work on the specifications for replacements of major production lines

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

Preparation
periodApproach run
periodFinalization
periodStructure building
Policy review/execution

Start of actions

Solidifying results

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

SAKURAA successful company
that is admired andrespected worldwide

Medium-Term Management Plan 2022 Objectives
Ordinary profit(consolidated)

Consolidated ordinary profit ofat least 9 billion yen (FY3/23)(Billions of yen)

At least

200

179.1

150
100

122.8

50

9 billion
yen

97.9
98.2

74.2

0

FY3/18(119th term)

17

FY3/19(120th term)

FY3/20(121st term)

FY3/21(122nd term)

FY3/22(123rd term)

FY3/23(124th term)

100-year company

FY
2018

Become a

FY
2017

Yodogawa Steel responded to the difficulty of procuring fluororesins by developing YODO HyperGL
Color EXE Eguze, a pre-painted steel sheet that uses polyester resin (started sales on May 2, 2022)• During the fiscal year ended in March 2022, the sales volume recovered inJapan, mainly for products in the Steel Sheet-related Business. Performance
also benefited from revisions of product prices and an inventory valuation
gain. As a result, sales and earnings in Japan were higher than one year
earlier. In Taiwan, SYSCO’s performance was strong for activities within
Taiwan and for exports. In China, YSS became profitable because of measures
to strengthen sales. There was a small increase in the earnings of PPT in
Thailand. The result was consolidated ordinary profit of 17,916 million yen.
• The outlook for the fiscal year ending in March 2023 is for continuous
instability in the steel market in Japan and worldwide, including uncertainty
about the balance between supply and demand. All group companies are
dedicated to achieving the goals of the Yodogawa Steel Group Medium-Term
Management Plan 2022. To become even more profitable, companies are
establishing positions in new markets and increasing sales of value-added
products while taking full advantage of the speed and agility that are a key
strength of the Yodogawa Steel Group.

Building Materials
Business

New and improved products will be developed to make the YODO Hyper Panel Series of highperformance exterior panels even more competitive
Network of YODO Roof sales agents was expanded and progress was made in restructuring thesales structure.

Steel Sheet-Related
Business

Exterior Products
Business

Sales of the new models of YODO Monooki Storage Shed Esumo started on February 15, 2022

Overseas

In Taiwan, SYSCO has resumed activities to receive orders from U.S. customers following thesuspension of these activities due to trade protectionism

Fukui Yodoko has started mass production of the YODO Monooki Storage Shed Esumo. Work is
advancing on schedule for the transfer in the fall of 2022 of production of large exterior products,
such as the YODO Bicycle Parking Unit, to Fukui Yodoko.

In response to the needs of users, YSS in China has started selling the Extra Thick Coating GL,
a steel panel that has an extended warranty.

Roll Business

Received an order for steel rolls from India, an important step for selling rolls outside Japan

Grating BusinessContinuing activities for selling grates in market sectors other than highways

YODO Monooki Storage Shed Esumo

The YODO fire-proof panel Grand Wall is used at the Kobelco Kobesteelers Nadahama Clubhouse18

Segment Overview

Steel Sheet-Related
Business
123rd term (actual)
Net sales

YoY

192,428+40.4

million yen%(Millions of yen)

192,428200,000

150,000

142,811

161,674 155,123

142,418 137,098

100,000

FY3/17

FY3/18

FY3/19FY3/20FY3/22

FY3/21(118th term) (119th term) (120th term) (121st term) (122nd term) (123rd term)

123rd term (actual)
Operatingprofit14,213

YoY

million yen

+72.2

%

(Millions of yen)

14,21315,00012,96910,81810,000

8,254
6,052

5,898

5,000

0

FY3/17

FY3/18

FY3/19FY3/20FY3/21

FY3/22(118th term) (119th term) (120th term) (121st term) (122nd term) (123rd term)

19

Building Materials & Exterior Products Segment

Performance in the year ended March 31, 2022

Performance in the year ended March 31, 2022

•	The sales volume of galvanized steel sheets to specific high-demand customers inJapan increased because of measures to capture new orders as imports of thesesheets decreased while the industry was reorganized. The sales volume of pre-painted steel sheets for building materials increased due to new orders and a rise inmarket share. In the home appliance category, the sales volume increased eventhough the semiconductor shortage and other problems held down production ofhome appliances. Growth was attributable primarily to strong sales of steel sheets
used in Eco Cute heat pump water heaters.
•	In the general distribution category in Japan, sales increased because of the large
volume of orders centered on the distribution warehouse and drug store sectors, asin the previous fiscal year.
•	In Taiwan, earnings increased because of higher sales volumes in Taiwan and othercountries as the market recovered and price revisions to reflect the rising prices ofsteel products. In China, YSS became profitable due to many measures for strengthening sales activities. In Thailand, PPT became profitable as the company placed
priority on increasing sales to Japanese home appliance manufacturers.

•	In the building materials sector, sales were down mainly because of the
impact of the pandemic.
•	Sales of exterior products increased mainly due to higher sales of garages
and other products. This growth offset lower sales of storage sheds caused
by a downturn in demand associated with staying home during the pandemic and by price revisions.
•	Construction sales decreased because of the smaller number of construction
projects started during the fiscal year and delays at many construction projects.

Outlook for the year ending March 31, 2023

50,0000

Steel Sheet Segment•	Although the outlook for market conditions is likely to remain unclear, there will be
numerous activities aimed at increasing market share and becoming more profitable.
Major initiatives are the continuation of activities to add new customers, ideas forusing products for new applications and the establishment of new sales channels.
•	Overseas, SYSCO in Taiwan is building stronger ties with downstream companies
and adding new customers in order to increase its sales volume. In China, YSS plans
to be profitable by continuing to increase its sales volume and maintaining profit
margins on its operations. In Thailand, PPT has the goal of preserving the stabilityof its operations by maintaining and increasing its market share in the home appliance market and expanding sales channels.

Initiatives for achieving the Medium-Term
Management Plan targets•	In the galvanized sheets category, group companies will meet the demand of customers while adapting with speed and flexibility to shifts in the steel industry’s
infrastructure for supplying these sheets.
•	For colored sheets, the primary goals are creating many new ideas for steel sheetswith specific functions (microbe and mildew resistance, static electricity prevention)and targeting opportunities involving sources of demand that are not yet readily
visible.
•	Build a global capability
for the procurement ofsteel coils and focus on
becoming more pricecompetitive and maintaining a stable supplyof products.
Shutters are one category of
Yodoko’s exterior products

A home appliance using
Yodoko steel sheets

Reference Building Materials & Exterior Products Segment(Yodogawa Steel, non-consolidated)
123rd term (actual)
Total
net sales

26,020-3.8

Building
materials

7,420

-8.8

Exterior
products

16,167+0.1

Construction

2,432

-12.3

million yen

Outlook for the year ending March 31, 2023
•	For building materials, our goal is to increase the sales volume by working
with YODO Roof sales agents, capturing orders at large construction projects
and raising sales of new products.
•	For exterior products, we are aiming for higher sales by increasing the sales
volume of newly designed Esumo storage sheds and establishing many newsales channels with measures that include joint activities with companies inother industries.
•	In the construction sector, the goal is to receive orders for projects that were
temporarily suspended or postponed due to the pandemic.

%

million yen

Initiatives for achieving the Medium-Term
Management Plan targets•	We are aiming for higher sales of building materials by increasing sales ofthe Hyper GL Color Series and other value-added products and strengthening
ties with YODO Roof sales agents based on mutual trust.
•	For exterior products, our goal is a higher sales volume by using collaboration
with companies in other industries to make our brand more powerful anddeveloping products that contribute to accomplishing the SDGs.
•	The goals in the construction sector are to increase the use of the metal
panels for commercial buildings and reinforce the sales framework in the
Kanto region.
•	All sales bases in Japan are working on building new distribution channels
that do not rely on current operations.

YoY

million yen

million yen

Building materials(Millions of yen)

%

%

%

Exterior products

Construction

30,000

1,949

3,477

2,791

9,842

9,782

10,042

FY3/18

FY3/193,737

2,776 2,432
15,227
15,673 16,139 16,167
14,342 14,540
20,00010,0000FY3/17

8,785

8,143

7,420

FY3/20FY3/21

FY3/22(118th term) (119th term) (120th term) (121st term) (122nd term) (123rd term)

A building with YODO fire-proof panel
Grand WallYODO Monooki Storage Shed Esumo

20

Segment Overview

Segment Overview

Roll Business

Performance in the year ended March 31, 2022

123rd term (actual)YoY

Net sales

2,689

+14.7

Operatingprofit8—

million yen

million yen%

Outlook for the year ending March 31, 2023

Net sales(Millions of yen)

4,000

3,385

3,759

3,500

2,833

2,689
2,344

2,000

0

FY3/17

FY3/18

FY3/19FY3/20•	The sales volume of rolls increased to the level prior to the pandemic as thedemand for rolls for steelmaking rose along with the recovery in production
volume of the iron and steel industry.
•	In the non-ferrous industry, the sales volume of rolls used for papermaking
decreased because companies are using their equipment longer.

FY3/22

FY3/21•	We are placing emphasis on profit margins when accepting new orders andtaking steps to improve prices of rolls as concerns about the rising cost of
raw materials continue.
•	Activities to add new sales channels will continue in order to capture orders.

Initiatives for achieving the Medium-Term
Management Plan targets•	In the iron and steel industry, focus on increasing sales of value-added rolls.
•	In the non-ferrous industry, use our roll manufacturing technologies to create
sources of demand in new market categories for rolls.

(118th term) (119th term) (120th term) (121st term) (122nd term) (123rd term)

Grating BusinessYoY

Net sales

3,443

-2.4

Operatingprofit109-37.5

million yen

million yen%%

Net sales(Millions of yen)

4,000

3,672

3,547

3,554

3,481

3,529

3,443

2,000

0

FY3/17

FY3/18

FY3/19FY3/20FY3/21

FY3/22(118th term) (119th term) (120th term) (121st term) (122nd term) (123rd term)

21

Performance in the year ended March 31, 2022

123rd term (actual)YoY

Net sales

3,092

+3.4

Operatingprofit

1,303

+22.0

million yen

million yen

%

%

4,351

4,823

5,241

5,333

3,000

0

FY3/17

FY3/18

FY3/19FY3/20

Outlook for the year ending March 31, 2023
•	Effectively utilizing properties remains the priority of the Real Estate Business.
•	The Engineering Business is focusing on sales activities at plants in Japan.

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 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.

2,990

3,092

FY3/21

FY3/22

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.
•	Extending operations to new market sectors and providing technical support
services are the priorities of the Engineering Business to target new demand.

(118th term) (119th term) (120th term) (121st term) (122nd term) (123rd term)

Performance in the year ended March 31, 2022

123rd term (actual)

Real Estate &Other Businesses•	As the volume of public-works and private-sector construction projects
declined in Japan, we focused on creating new sales channels for capturing
orders in categories other than the core highway sector. However, sales werelower than in the previous fiscal year as the sales volume decreased.
•	There were measures to increase prices to reflect the much higher cost of
raw materials in order to maintain the profitability of this business.

Outlook for the year ending March 31, 2023
•	We expect a downturn in public-works projects but growth in the private
sector due mainly to more construction starts for stores and warehouses. We
plan to target demand in the private sector and continue working on establishing new sales channels in market sectors other than highway projects.
•	In response to concerns about significant increases in the cost of raw materials, we plan to quickly revise prices of grating products as needed andimprove efficiency in order to maintain the profitability of this business.

Initiatives for achieving the Medium-Term
Management Plan targets•	Strengthen relationships with trading companies and take actions aimed atincreasing sales in markets other than the core highway sector.
•	Continue to improve efficiency and maintain consistent profitability.

TopicsStart sales of newly designed models in the YODO Monooki Storage Shed
Esumo series of compact storage sheds.

People in Japan are increasingly placing compact storage sheds near entrances
to homes, garages and other places where these sheds are visible to others due
to changes in life styles. Furthermore, people are often using these sheds to store
equipment used for gardening, outdoor activities and other hobbies. As a result,buyers of these sheds are placing more importance on attractive designs. The newmodels have a three-section sliding panel configuration, the major feature of theEsumo series, along with an attractive design and ease of use.
The new design for storage sheds is a shift from the previous rounded edges to
sharper edges for a more attractive look. Customers can select one of five door
colors. Overall, the number of design variations has increased from 72 to 90, whichmakes these sheds even easier to use in a variety of applications and locations.
Sales of this model began after starting production at subsidiary Fukui Yodoko,
where there have been large capital expenditures since 2020. Activities for meeting a broad range of customers’ needs are continuing.
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 : 498
Main facilities: 1 pickling line 2 cold rolling lines 2 galvanizing lines 2 color coating lines

Taiwan■Trade name
: PCM Processing (Thailand) Ltd.
Location: Amata City Chonburi Industrial Estate
Established: April 1999
Representative: Kosuke Takeoka
Paid-in capital: THB 1,377.259 million
Number of employees : 115
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, 2022

Outlook for the year ending March 31, 2023

Performance in the year ended March 31, 2022

Outlook for the year ending March 31, 2023

•	In Taiwan, the pandemic severely impacted the service sector. Exports werestrong due to the worldwide growth of demand for electronic components
and ICT products and equipment. The economy was also supported by anincrease in investments in the semiconductor and other industries. As aresult, the Taiwan economy expanded 6.45% in 2021.
•	Earnings of operations in Taiwan were steady as prices were revised toreflect the higher cost of steel products and sales of pre-painted steel
sheets were strong.
•	The volume of SYSCO’s exports increased mainly because of higher sales
to Canada and Southeast Asia as the market for steel products recovered.

•	For operations in Taiwan, the goal is to increase sales by strengthening joint
activities with downstream companies in the building materials sector.
•	For exports, SYSCO plans to raise the sales volume by increasing sales inNorth America and adding new customers as the negative effects of tradeprotectionism worldwide continue.
•	SYSCO is using many activities for increasing earnings. The company is
optimizing its organization to build a base for future business operations,improving efficiency and taking other steps to rebuild the framework for its
operations. Growth will also be backed by developing new products andcreating ideas for new applications for SYSCO products.

•	The procurement of raw materials was difficult during the fiscal year
because the price of raw materials increased as rising demand for steel in
China reduced imports of inexpensive Chinese steel materials. To maintainprofitability, PPT responded by quickly switching to different procurement
activities, such as the import of materials from countries other than China.
•	Revisions of prices of products to reflect the rising cost of raw materials
and priority on retaining significant market shares for pre-painted steel
sheets for AC outdoor units and refrigerators made by Japanese home
appliance manufacturers resulted in a fiscal year profit.

•	The level of imports of steel materials from China has an enormous impact
on sales volumes and prices of pre-painted steel sheets used for making
home appliances. PPT plans to reduce expenses by using new suppliers
and other measures to increase the flexibility of procurement activities.
•	Major goals of PPT are capturing a significant share of the market formaterials used in AC outdoor units, a new application for PPT, and expanding sales channels in the ASEAN region and other areas.

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

Location: Anhui, China

China

Chairman of the Board: Eichi Tanaka
and President■

President: Atsushi Nakatani
Number of employees : 253

Performance in the year ended March 31, 2022

Outlook for the year ending March 31, 2023

•	The sales volume of products for building materials (for construction projects
and manufacturers) and for Japanese home appliance manufacturers
increased as sales activities were strengthened. In addition, there wereextensive sales activities for pre-painted steel sheets, a product with substantial added value. As a result, YSS achieved a fiscal year profit.
•	A focus on sales of fluororesin pre-painted steel sheets, which have substantial added value, used for building materials contributed to making YSS
profitable.
•	In the home appliance sector, there were many activities at YSS for increasing
sales of steel to Japanese home appliance manufacturers of AC outdoor units.

•	The goal is to be profitable again in the next fiscal year despite the risingcost of raw materials and uncertainty regarding the impact of the pandemic. The main initiative for accomplishing this goal is reinforcing sales capabilities for capturing orders involving large construction projects.
•	YSS plans to increase sales by raising the volume of sales to current customers with activities such as more sales of new value-added products andjoint operations with Yodoko Building Materials (Hangzhou) Co., Ltd. (YBMH)
to differentiate YSS from competitors.

TopicsSYSCO Taiwan had a booth at the Photovoltaic Expo (PV Taiwan)

Utilization of solar panels in Taiwan is increasing in many types of locations
to protect the environment, support sustainable growth and help create acarbon-free society. Many of these locations, such as places on the cost andfish farming facilities, require highly durable solar panel frames.
As part of measures to promote its highly durable AZ300 steel panels, whichhave an extra thick coating, SYSCO participated in the Photovoltaic Expo
(PV Taiwan) that was held in Taipei. The SYSCO booth attracted visitors fromsolar energy companies, design firms and many other sectors of the photovoltaic power industry who learned about the company’s products. SYSCO
plans to start many activities for helping achieve a carbon-free society.

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

BeautyBusiness site

Environment
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.

June 2000

Osaka Plant

December 2000

Kure Plant

December 2000

Energy Management Planning& Promotion Officer

Examining/certifying agency

CO2 emissions
JICQA

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

DNV∙GL

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

SGS

PCM Processing (Thailand) Ltd. November 2013

UKAS

(1,000 t-CO2)200

Consolidated (Japan)

Base year

200

-7%

186

Versus FY 2013

18%

-10%

181

-19%

162

150

cut

-23%

154

164

2020

2021

100

50

Purpose and objectives of environmental activities
Combat global warming

Reduce CO2 from manufacturing
0

Reduce CO2 from transport
activities

2013(Base year)

2017

2018

2019

(Fiscal years)

Reduce CO2 from offices

President
Energy Management Officer

Date certified

Ichikawa Plant

Yodoko Environmental Management System
Create a recycling-oriented
society

Director in charge ofEnvironmental Issues
Corporate Planning Division
Senior General Manager
Head OfficeEnvironmental
Management
Group

Sustainability
Promotion
Department

Reduce environmentally
harmful substances

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

Consideration for theenvironment

Energy consumption

Consolidated (Japan)

Base year

(TJ)

3,500

3,521

3,000

-3.9%

3,384

Versus FY 2013

-4.8%

3,353

-12.3%

3,088

2,500

8.1%

-14.9%

2,998

cut

3,247

Contribute to communities
Rigorous risk management

2,000
1,500

Plants Division

Offices Division

Yodoko Group companies

Environmental Officers

Environmental Officers

Environmental Officers

Pollution Prevention Officers
Energy Officers

Environmental Managers

Environmental Managers

Environmental Managers
Departmental/Division 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.

marine transport and raising the capacity utilization ratio on
trucks and other modes of transportation. We are also encouraging all offices to moderate room temperatures (28ºC in summer and 20ºC in winter) and to use the “Cool Biz” (avoiding
business suits in summer) and other energy-saving programs.
In the fiscal year ended March 2022 (FY2021), we cut CO2
emissions by 18% and energy consumption by 8.1% (both vs.
FY2013).

Environmental Activity Personnel

Combat Global Warming
Yodogawa Steel is a participant in the Carbon Neutrality Action
Plan of the Japan Iron and Steel Federation. For manufacturers,
activities include updates of equipment for raising efficiency andimproving business operations and using LEDs for peripheral
equipment. For logistics, our activities include shifting to rail and

1,000
500
0

2013

(Base year)

2017

2018

2019

2020

2021
(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 FY2021, our total volume of waste materials was 84,000 tons. The recycling rate
was 62.8%.

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 6,243
MWh of electricity in FY2021.
This photovoltaic power generation is expected to reduce
annual CO2 emissions by about 3,465 tons.

120
80
40
0

Total volume created

65.3

Volume recycled

62.1

86

2017

84

78

78
54

48

48

2018

2019

2020

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
FY2021 VOC emissions to 33.1% below the FY2010 level.
VOC emissions and reduction rate

(Non-consolidated)

(t)

80
60

Base year

64

40

Versus2010-32.8% -33.5%

45

42-24.7%

48-30.4%

44

33.1%
cut

43

2017

2018

2019

2020

2021 (Fiscal years)

Solar panels in SYSCO Taiwan

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 FY2021 were 23 million yen,which included the installation of LED lights.
Total environmental expenses in FY2021 were 623 million yen,consisting of 16% for air pollution prevention, 26% for watercontamination prevention, and 35% for processing industrial
waste. These expenses were mainly for preventing pollution
and recycling resources.
Note: FY2021 numerical environmental data on pages 26 and 27 are preliminary
figures.

To combat global warming, we are increasing efficiency by
upgrading equipment, switching to LED lights and taking otheractions for lowering energy consumption and CO2 emissions.
1) Installed motors with lower energy consumption on someproduction lines.
2) Reduced electricity consumption by increasing the use of
inverters and replacing conventional lights with energyefficient fixtures.

Electricity consumption
150

120

100

96

95

93

101

50
0

2010

(Base year)

27

2017

2018

2019

2020

2021
(Fiscal years)

20

16

12

12

12

14

2018

2019

2020

2021 (Fiscal years)

10

2017

*In 2021, CO2 emissions increased because of higher electricity and natural gas
consumption caused mainly by an increase in production volume.

 evelopment of Environmentally Conscious
D
Products
Development of heat insulating steel sheets
We guarantee total solar reflectance (TSR) of 25% or greater.
This is expected to yield benefits such as lowering indoor temperatures and reducing electricity used for air conditioning. We
produced 23,544 tons of these sheets during 2021 (11,842
tons in 2020).
Development of GL steel sheets for solar panel mounts
By using GL steel sheets with high corrosion resistance and ahigher level of galvanization, we have contributed to increasing
the number of years that photovoltaic power generation systems can remain in use. We produced 4,375 tons of thesesheets during 2021 (672 tons in 2020).

2017

2018

2019

2020

2021 (Fiscal years)

OthersBased on the Japanese government’s green energy policies, weinstalled solar power systems on the roofs of our plants in
September 2015. As of December 2021, these systems havegenerated a cumulative 3,346 MWh of power.

3) Started installing heat recovery steam generators on someproduction lines in 2020

Photovoltaic power generation

CO2 emissions

600(1,000 t)

120

101

0

(MWh)

82

79

79

87

524

509

2017

2018

2019

565

494

2020

2021 (Fiscal years)

200
0

2017

555

400

40
0

(10,000 m3)(1,000 MWh)

80

20

19

Combat global warming0

Reduce Environmentally Harmful Substances

15

15*In 2021, VOC emissions increased mainly because of an increase in production volume.

20

2021 (Fiscal years)

31

27

0

Natural gas consumption

0

10

40

53

VOC emissions

30

80

62.8

In 2016 and 2017, SYSCO replaced production line equipmentwith machinery that holds down VOC emissions. In FY2019, there
were more activities to lower these emissions, including the partial
modification of production lines.

20

(%)

62.1

62.1

Reduce Environmentally Harmful Substances

40

60

86
56

Recycling rate

SYSCO’s Environmental Activities(t)

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

Topics

2018

2019

2020

2021 (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

29

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

Innovative Exterior Products for
Healthcare Facilities

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.
YODO Hyper GL Color chromate-free pre-painted steel sheet forbuilding exteriors, which launched in January 2017, was developed based on the concept of long-term use that is friendly topeople and the environment. The product’s overall durability was
improved by reevaluating the pre-painting process, coating, andother items. Its 25-year warranty against pitting has been very
well received by customers. Going one more step, we added a
new YODO Hyper GL Color product in January 2020 and started
offering the 25-year warranty against pitting (mustbe at least 500 meters froma seashore) on all prepainted steel sheets forexterior use.
As the pioneer of chromate-free treated steel
sheets, we will continue tomeet the demands of society and develop innovative
products that can make aneven 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 YODO Hyper GL Color chromate-free prepainted steel sheet for outstanding thermal insulation and resistance to soiling and staining. This results in a further reduction inthis product’s environmental impact. YODO fire-proof panel
Grand Wall Hyper has received fireproof certification as a standalone exterior building material. This panel also has superior
resistance to wind pressure and earthquakes as well as soundinsulating 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, there is an urgent need for performing PCR
and other COVID-19 tests at locations that are separate fromother sections of a clinic or other healthcare facility. Separation
allows performing many tests while preventing the spread of
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 Storage Shed Erumo with a lockthat automatically opens after a strong earthquake
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

Power harassment prevention training (e-learning)

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, we hold a JK Conference in Osaka that brings together people
from group companies worldwide. In the fiscal year ended March 31,
2022, 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 apresentation 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. Conferences provide an opportunity to
study examples of initiatives that
improve business processes andenable participants to stimulate eachother to do their best.

New manager training

Donations by shareholders of record on March 31, 2021 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 2021 in thename of the Yodogawa Steel Works, Ltd. (Shareholder Donation
Account).
Total donations: 171 shareholders 829,000 yen
UNICEF: 43 shareholders 208,000 yen
The Japanese Red Cross Society: 48 shareholders 256,000 yen
Ashinaga Foundation: 80 shareholders 365,000 yen	Transfer to donations from shareholders who did not apply forshareholder benefits: 740 shareholders 3,644,000 yen*Donations for UNICEF, the Japanese Red Cross Society andAshinaga Foundation

Yodogawa Steel Group JK Conference

Diversity

Main training programs

35

ESG Information

Our success will require recruiting and retaining people who can build
an organization capable of adapting to rapid changes in society andour markets. We will continue to hire people regardless of gender,
nationality and disabilities.
Beginning in the fiscal year that ended on March 31, 2022, we areusing voluntary targets that can be measured concerning the diversityof our workforce. We plan to continue increasing the percentage offemale career-path new-graduate recruits and set targets for thepercentages of female managers and new female employees who
have prior work experience. To accomplish these objectives, we are
increasing the number of mid-career hires, including female careertrack employees. We are also focusing on securing human resources
who can be promoted to higher-level positions at an early stage.
From the standpoint of utilizing the skills of our people, we will
strengthen activities for maintaining a diverse workforce and for further increasing diversity, such as by holding training programs forenabling women to realize their potential. We are dedicated to maintaining workplace and training environments where all employees at
the Yodogawa Steel Group can fully utilize their capabilities.

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,
2022, 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, 2022)
Directors

Audit & Supervisory Board Members

Satoshi Nitta

Toshio Kumamoto Tadashi Hattori

Eiichi Tanaka

Shiro Morioka

Nobusuke Kuzuo

President andRepresentative Director

Director, Managing Executive
Officer

Director, 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, 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)

FY2021 (Directors and Audit & Supervisory Board members as of June 21, 2022)
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

16 of 16 meetings—

Sadato Kobayashi

11 of 11 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

11 of 11 meetings

Miho Ishihara

16 of 16 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

16 of 16 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

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

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)
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)

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.)May 2010 Opened Ishihara Certified Public Accountant Office (currently
Ishihara Certified Public Accountant & Certified Public Tax
Accountant Office) (current); Joined Hibiki Audit Corporation(current)
Dec. 2010 Registered as Certified Public Tax Accountant
Jun. 2019 Outside Audit & Supervisory Board Member of Yodogawa Steel(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)
Reason for Election
Ms. Watanabe is an attorney with the extensive knowledge and experience for
performing audits from an external and independent standpoint.

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, 2022.
1 Questionnaires

Scope

All 6 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 and other subjects

2 Analysis and evaluation results

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 (current)
Apr. 2019 Osaka Bar Association, Chairperson of the Intellectual Property
Committee
Jun. 2021 Outside Director of Yodogawa Steel (current)
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.

3 Actions in response to the evaluation results

The listing of Yokogawa Steel was moved to the Prime Market of
the Tokyo Stock Exchange in April 2022.
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, 2022)

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.

management programs, and the effective operation of theNomination & Remuneration Committee.

The Board of Directors is generally operating properly with regard
to its composition, roles, how meetings are held, corporate governance and other items. Furthermore, the evaluation processconcluded that the Nomination & Remuneration Committee,
which was voluntarily established in the fiscal year ended March
31, 2022, increased the effectiveness of the Board of Directors.
To further increase the board’s effectiveness, the following areas
for improvement were identified: more thorough discussions ofmanagement strategies and business plans based on changes
in the business climate, the more effective implementation of risk

General Meeting of Shareholders
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
Advisory

Internal Audit Department
Whistleblowing system Internal channel

Audit

Accounting auditors

Background of Outside Officers / Reason for Election

Whistleblowing

Audit

Report40

Financial Information: Overview of Consolidated Results of Operations
Market environment

55,691 million yen to 201,655 million yen. Operating profit increased
6,469 million yen to 14,349 million yen, ordinary profit increased
8,125 million yen to 17,916 million yen, and profit attributable toowners of parent increased 3,531 million yen to 9,789 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 Group focusedon 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. Sales volumes
recovered in Japan and at Taiwan Subsidiary Sheng Yu Steel Co.,
Ltd. (SYSCO). In China, the sales volume at subsidiary Yodogawa
Shengyu (Hegei) High-Tech Steel Co., Ltd. (YSS) increased as theawareness of this brand increased. The result was an increase inconsolidated sales. For earnings, operating profit was affected by thecontinuation of a challenging business climate in Japan as selling
price revisions could not keep up with the rising cost of materials andmany other items. Despite these difficulties, earnings increased
because of the recovery in the volume of sales, an inventory valuation
gain and other reasons. Although market conditions were challenging
for all overseas subsidiaries, the consolidated operating profit was
higher than in the previous fiscal year because of a big improvementin the earnings of SYSCO as prices of steel products increased
worldwide and an operating profit at YSS. Ordinary profit increased
more than operating profit did mainly due to the recording of foreignexchange gains and increases in dividend income and gain on saleof investment securities in non-operating income. Profit attributableto owners of parent The increase in profit attributable to owners ofparent was smaller than the increase in ordinary profit mainly
because of an increase in income taxes-current. In addition, theIn the fiscal year ended March 31, 2022, there were signs of an
economic recovery in Japan centered on consumer spending as
more people were vaccinated and countries began to live with the
pandemic. However, the economy remained unstable because of thehigh prices of resources and energy and shortages of semiconductors and other parts and materials.
In Europe and the United States, economics have started to recover,mainly due to consumer spending, because these regions havepassed the peak of the pandemic. In China, economic growth is slow
primarily because of weakness in the real estate market and lockdowns of major cities due to the country’s zero-COVID policy.
Currently, the outlook for the global economy is extremely unclear
because of the Ukraine crisis and the shift of the United States tomonetary tightening.
In the steel industry, the business climate is improving in Japan alongwith upturns in housing starts and orders for machinery. Market
conditions were generally sluggish in the fiscal year’s second halfbecause of declining automobile production caused by shortages ofsemiconductors and other reasons. In overseas steel markets, there
was a recovery worldwide during the first half of the fiscal year alongwith an economic recovery from the downturn caused by the pandemic. Expectations for rising prices of steel products was anotherreason for the relative strength of overseas steel markets. During thesecond half, the pace of growth began to slow because of declining
economic growth in China, high prices of many products and otherreasons.

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

Net sales

Operating profit(Millions of yen)

201,655

200,000(Millions of yen)

14,34914,000(Millions of yen)

(Millions of yen)+

38.2% YoY0

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

41

244,671

226,004(Millions of yen)

40,000

Dividends per share(Yen)

43,1167,000+

82.1% YoY

5,000

+

56.4% YoY0

FY3/21

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

120,000+

8.3% YoY0

FY3/21

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

20,0000FY3/21

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

102

100

75

6,257

7,880

0

FY3/21240,000

Cash and cash equivalents at end of period

30,961

145,963
100,000

The outlook for the global economy is expected to remain extremely
unclear for the time being due to numerous risk factors. Significant
sources of risk in 2022 include supply chain disruptions and highprices of resources and energy caused by Russia’s invasion of
Ukraine, impact of pandemic lockdowns of Shanghai and other cities
on the Chinese economy, and the shift of the United States to monetary tightening.
In Japan, the outlook is for a mixture of progress and setbacks
involving the pandemic as the risk factors affecting the global economy also have a significant impact on the Japanese economy.
In the steel markets in Japan and other countries, prices of raw
materials used for steelmaking and of steel products of all types
continue to surge. Furthermore, there is a risk of more increases in
the cost of resources and energy along with limited supplies due tosanctions on Russia and other effects of the Ukraine crisis. Due tothis situation, the steel market, including the balance between supply
and demand, is likely to remain unstable for the time being.
The Yodogawa Steel Group as well is likely to continue to operate ina challenging business climate due to the unpredictability and instability of demand and expenses in all regions. To succeed in thisuncertain business climate, all group companies are focusing on
speed and agility concerning both sales and production activities to
respond to rapidly changing market conditions. To become evenmore profitable, group companies are also establishing positions in
new markets and increasing sales of value-added products.

Total assets

9,789

Distributing earnings to shareholders is one of the highest priorities
of Yodogawa Steel. Earnings are distributed by paying dividends thatreflect results of operations, repurchasing stock and in other ways.
The basic policy for dividends that are in line with our results of 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, andother items. To pay dividends that reflect results of operations, thetarget consolidated payout ratio is between about 30% and 50%. In
addition, there is a goal of paying an annual dividend of at least 50
yen per share for each of the three fiscal years ended on March 31,
2021 and 2022 and ending on March 31, 2023.
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 can be
paid based on a resolution of the Board of Directors, except in cases
where stipulated otherwise by laws and regulations.
The year-end dividend for the fiscal year that ended March 31, 2022
is to be 67 yen per share. With the interim dividend of 35 yen, thiswill result in a dividend of 102 yen per share for this fiscal year.
There is currently no dividend forecast for the fiscal year ending
March 31, 2023. An announcement will be made promptly once it
becomes possible to announce a dividend forecast.

Outlook

Profit attributable to owners of parent
10,000Returns to shareholders

increase was smaller than the increase in consolidated profit becauseof the high percentage of non-controlling interests at SYSCO, which
was a major reason that the consolidated profit increased.

50–
FY3/21

28.2% YoY
FY3/22(122nd term) (123rd term)

0

FY3/21

FY3/22(122nd term) (123rd term)42Consolidated Financial Statements

Financial Information

Consolidated Balance Sheet(Millions of yen)

FY3/21

FY3/22

FY3/21(as of March 31, 2021) (as of March 31, 2022)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
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

42,03541,229
—
3,005
6,821
12,672
4,158
9,258
4,783
(147)
123,818

31,872—53,6713,412
2,120
22,027
6,801
17,4997,229(110)
144,523

60,789(46,857)
13,931
136,185(124,722)
11,463
18,964
125
(62)
63
7,335
11,877(11,035)
841
52,59966,010(46,954)
19,056
144,768(130,382)
14,386
19,312
173
(81)
92
2,439
12,374(11,202)1,172
56,459

1,752
1,752

1,966
1,966

46,865285
215
468
47,834102,185
226,004

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

Consolidated Statement of Income

FY3/22

FY3/21

FY3/22(April 1, 2020 to March 31, 2021)(April 1, 2021 to March 31, 2022)

Net sales

145,963

201,655

Cost of sales

121,104

168,471

Gross profit

24,85833,183

Selling, general and administrative expenses

16,97818,834

Operating profit

7,880

14,349Non-operating income

2,277

3,918

Non-operating expenses

366

351

9,791

17,916Extraordinary income

14

148

Extraordinary losses

125

971

Profit before income taxes

9,680

17,092

Income taxes-current

3,329

4,999

Income taxes-deferred

(325)

(167)

Total income taxes

3,003

4,831

Profit6,676

12,261

419

2,471

6,257

9,789

(as of March 31, 2021) (as of March 31, 2022)

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)

13,744
2,247
—
40
2,717
—
1,365
336
7,921
28,373

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

26
5,579
856
52
6,907
3,911
17,33345,707

18
4,103
844
39
6,285
3,885
15,17552,73323,22018,108110,822(12,091)
140,060

23,22018,272
118,475(11,992)
147,977

19,207
—
1,636
1,458
109
22,412
227
17,596180,296
226,004

16,174
(0)
1,609
4,433
101
22,319187
21,454
191,937
244,671*Yodogawa Steel started applying Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020) at the beginning of the fiscal year that ended in March
2022. Significant financial indicators for the previous fiscal year have been revised to incorporate this new standard.

Ordinary profit

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

Consolidated Statement of Comprehensive Income(Millions of yen)

FY3/21

FY3/22(April 1, 2020 to March 31, 2021)(April 1, 2021 to March 31, 2022)

Profit6,676

12,261Other comprehensive income

9,675

1,899

Comprehensive income

16,352

14,161
44

Consolidated Financial Statements

Financial Information

Consolidated Statement of Changes in Equity (April 1, 2021 to March 31, 2022)
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

18,108 110,822 (12,091) 140,060

19,207

Deferred
gains orlosses onhedges

Revaluation
reserve for
land

—

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

1,636

1,458

109

22,412

227

Total net
assets

17,596 180,296

Changes during period(2,162)

Dividends of surplus
Profit attributable toowners of parent(2,162)

9,789

Purchase of treasury
shares
Disposal of treasury
shares(16)

Purchase of shares of
consolidated subsidiaries

181

Reversal of revaluation
reserve for land

9,789

(5)

(5)

(5)

105

88

88

181

181

26

26

Net changes in items
other than shareholders’equityTotal changes during period
Balance at end of period—
23,220(2,162)

9,789

26(3,032)

(0)

7,917

(3,032)

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

16,174

164

7,652

99

Corporate Profile / Stock Information (as of March 31, 2022)

(26)

2,975

(8)

(93)

(0)

(26)

2,975

(8)

(93)

(0)

1,609

4,433

101

22,319

(40)

3,857

3,723

(40)

3,857

11,640187

21,454 191,937

Corporate Profile

Main Affiliated Companies

Company name Yodogawa Steel Works, Ltd.

Consolidated Subsidiaries

Established

January 30, 1935

Capital23,220,815,228 yen

Employees

1,206

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)

FY3/21

FY3/22(April 1, 2020 to March 31, 2021)(April 1, 2021 to March 31, 2022)

Cash flows from operating activities

17,149(10,645)

Cash flows from investing activities(4,672)(1,985)

Cash flows from financing activities(3,998)(1,226)

(19)

1,702

Net increase (decrease) in cash and cash equivalents

8,457(12,154)

Cash and cash equivalents at beginning of period

34,658

43,116

Effect of exchange rate change on cash and cash equivalents

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

43,11630,961

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

Principal Shareholders
Name

Consolidated Statement of Cash Flows

Takada Kozai Kogyo Co., Ltd.

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

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

3,065

10.52

Resona Bank, Limited.

1,068

3.66

Mizuho Bank, Ltd.

1,062

3.64

Yodoko Partners’ Shareholding Association

1,054

3.62

Hanwa Co., Ltd.

628

2.15

Northern Trust Co. (AVFC) Sub a/c USL Non-Treaty

618

2.12

Nippon Life Insurance Company

618

2.12

POSCO

600

2.06

JFE Steel Corporation

587

2.01

Custody Bank of Japan, Ltd. (Trust Account)

582

2.00

Notes: 1. Treasury shares (5,719,105 shares) held by Yodogawa Steel are not included in this list ofmajor shareholders.
2. Shareholding ratios do not include treasury shares (5,719,105 shares).

Share Ownership by Category
Securities
corporations

Other companies
in Japan

1.05%

23.85%

Individuals
and others

14.88%

Treasuryshares

16.41%
Overseas
investors

20.79%

34,837,230
sharesFinancial
institutions

23.02%
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

Yodogawa Steel Works, Ltd.
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.