Yodogawa Steel Works, Ltd.

125 Term ReportthApril 1, 2023-March 31, 2024

YODOKOREPORT

Securities code: 5451

To Our Stakeholders

1948 Started manufacture ofcast iron and steel rolls
1940 S tarted 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 S tarted 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 SteelGroup is expected to recover due to steady economic
trend in the United States and declining inflationworldwide. However, uncertainty is expected to remain
due to concerns about prolonged situation in Ukraine
and Palestine, and prolonged downturn in the realestate market in China.
In Japan, there are expectations for recovery in demandby higher wage levels. However, the trend of rising
prices is expected to continue and the Bank of Japan’s
monetary policy trend needs to be closely monitored.
The economy is expected to be significantly affected by
the aforementioned global risk factors.
In the steel markets in Japan and other countries, while
prices of raw materials used for steelmaking as well as
cost of resources and energy are expected to remain at
a high level, there are additional geopolitical risks suchas the situation in Russia and Ukraine and concerns
over the Taiwan emergency. Due to this situation, thesteel market, including the balance between supply anddemand, is likely to remain unstable for the time being.
An unpredictable and unstable environment for demandand expenses is expected to continue in every region
where group companies operate. As a result, market
conditions are expected to remain very difficult.
To succeed in this uncertain business climate, all groupcompanies are focusing on speed and agility concerning
both sales and production activities to respond to
rapidly changing market conditions. At the same time,by steadily implementing the “Yodogawa Steel Group
Medium-Term Management Plan 2025,” we will work tostrengthen our earning power.
We sincerely ask for your continued support andguidance.
June 2024
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%

Rolls

1.5 %
Steel Sheet-related
Business

Continuous color coating

Limestone

Pre-painted
steel sheets

Coal

Steel Sheet
Segment

Iron ore

2 Blast furnaceand casting

4 SteelGalvanizedsteel sheets

Cold rolled sheets and strips

Building Materials Segment

1

2

Molding/
processing and assembly

Exterior Products Segment

Building materials

1 Molding/
processing and assembly

Hot rolled
steel sheets

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

3

Steel Sheet-related

95.1%

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

An appliance using Yodoko steel sheets

A building interior with Yodoko panels

A building with YODO fire-proof panel
Grand Wall

YODO-Garage Raviege Ⅲ

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

Construction

Building
Materials & Exterior
Products Segment

Exterior products

Roll Business(Fiscal year ended March 31, 2024)

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

203,957 million yen

1.7%

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

0.3%

0.7%
●

98.0%

0.9%

●

129,660●●●

million yen

China
●
■

●

(Fiscal year ended March 31, 2024)
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

0.4%Southeast Asia

Other

4.1%
5.6%

0.4%

million yen

Japan

21.0%

5

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

Net sales by country and region
Oceania

1.5%

No. of employees by region
Japan

1,537

China

260
Taiwan

502

●
●

●

2,405

(Fiscal year ended March 31, 2024)

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

North /
Central /South America

Net sales by country and region
Other

China

0.7%

97.1%

Southeast
Asia

2.2%

79.7%

11,786
million yen

53,249(Fiscal year ended March 31, 2024)

106

0.8%

6.1%

64.7%

Thailand

Other

Southeast
Asia

203,957

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

3.7%

China &
Hong Kong

●

●

●
■

●
■

million yen(Fiscal year ended March 31, 2024)

Thailand

11.9%(Fiscal year ended March 31, 2024)

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

Net sales by country and region
Southeast
Asia

PCM Processing (Thailand)Ltd. (PPT Thailand)

100.0%

4,679
million yen(Fiscal year ended March 31, 2024)

6

3

Shareholders
andinvestors

The Value Creation Process

What is Yodoko?

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

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

7

Strengths of the Yodogawa
Steel Group

Create Value with New Originality

Long-Term Vision

Creating Value throughBusiness Activities
For more
information see

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

Speed and Agility

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

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

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

2 Technology
Technical capabilities for
precisely meetingcustomers’ needs

4 Production
Well-balanced production
network in Japan andother countries

For more
information see

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

3-6Roll Business

Real Estate & Other Businesses

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

Basic
Strategy

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

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

pages

Grating Business

17-18

pages

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

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

Security

SafetyEnvironment

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

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

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

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

Establish a foundation
for sustainable
operations

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

4Financial and Non-financial Highlights

What is Yodoko?

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

220,000

201,655
154,066

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

Total assets, net assets (consolidated)

220,314

Overseas net sales

203,957

145,963

Total assets(Millions of yen)

270,000

180,000

201,125
167,291

226,004
180,296244,671
191,937251,057
201,906

Net assets

265,863
213,832

22,00045,35873,07671,999-1,40790,000-11,000

46,23000

FY3/20(121st term)

FY3/21

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

FY3/23(124th term)

FY3/24(125th term)

Operating profit, ordinary profit,
profit attributable to owners of parent (consolidated)
20,00017,916
14,34910,000

7,425
5,489
3,862

9,791
7,880
6,257

(121st term)

FY3/21(122nd term)

FY3/22(123rd term)

FY3/23(124th term)

FY3/24

15,202
12,66512,017
10,5939,789

150,037

162,472

170,296

179,673

189,580(121st term)(121st term)(122nd term)(123rd term)

FY3/23(124th term)

Net income per share

(Yen)

380

Dividends per share339(121st term)

200
154

131
70

75

102

FY3/21(122nd term)

FY3/22(123rd term)

FY3/23(124th term)

FY3/24(125th term)

Net assets per share (consolidated)(121st term)(122nd term)

FY3/22(123rd term)

Depreciation and amortization(121st term)(121st term)

FY3/21(122nd term)

3,993

5,651
4,876

5,644

5,907

6,223

6,561

FY3/22

4,502

FY3/24

FY3/23(123rd term)(124th term)(125th term)

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

9.4

8.9

9.5

FY3/22(123rd term)

FY3/23(124th term)

8

10

11

2019

2020

2021

(125th term)

2,077

2023

(Year)

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

800

3,236

2022

*Regular employees only

400

2,185

19

24

702

623

556
2,969

5

0

FY3/24

5,836

3,000

10

17

Treasury shares acquired

6,000(Hours)

7.9
27

25

644

3,300

1,217

1,191

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

3,007

Total dividends(Millions of yen)

(Yen)

FY3/21(122nd term)

7.6

Total dividends, treasury shares acquired (non-consolidated)

(%)

60

688
37

40

26
19

20

1,063
0

FY3/21

3,536

1,206

0

FY3/20111

0FY3/20FY3/20(125th term)

0

FY3/206,600

215

FY3/24

50

5,000

5,115
190

(124th term)

2,224(125th term)

367(123rd term)

1,233

0

FY3/23

Capital expenditures

3,660

FY3/24

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

FY3/22

8,740

4,456

FY3/22

FY3/21-12,630

10,0000FY3/21

Non-consolidated

2,405

2,395

2,392

2,381

1,204

6,911

100,000

0

FY3/20-4,672-10,645(Millions of yen)

200,000

2,431

-809

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

17,686

FY3/20(125th term)

Shareholders’ equity (consolidated)

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

-1,985-22,000

FY3/20

2,500

1,250

0

72,910Consolidated(People)5,927 4,519

110,000

FY3/23(124th term)

FY3/24(125th term)

0

FY3/20(121st term)

FY3/21(122nd term)

FY3/22(123rd term)* Yodogawa Steel started applying Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan (ASBJ) Statement No. 29, March 31, 2020) at the beginningof the fiscal year that ended in March 2022. Significant financial indicators for the fiscal year that ended in March 2021 have been revised to incorporate this new standard.

921,521 20,712

17,336
14,175

17,14912,476

11,000No. of employees (consolidated, non-consolidated)

Cash flows from investing activities

Cash flows from operating activities
Free cash flow

(Millions of yen)

FY3/23(124th term)

FY3/24(125th term)

295

FY3/20(121st term)

FY3/21(122nd term)

0

0

0

FY3/22

FY3/23

FY3/24(123rd term)(124th term)(125th term)

0

26

24

23

12

19

FY3/20FY3/21

FY3/22

FY3/23

FY3/24(121st term)(122nd term)(123rd term)(124th term)

0(125th 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.
These figures are based on the preliminary data shown on pages 26 and 27.

10Interview with Top Management

Aiming for more corporate value growthwith management that is conscious of costof capital and stock price.
During the fiscal year that ended in March 2024, therecovery of the Japanese economy was slow even as
activities returned to normal after the pandemic. Growth
was held down by the high cost of resources, energy
and many other goods. In other countries, concerns
about inflation continued in the U.S. as the economy
remained strong, internal demand was sluggish in
Europe as interest rates remained high, and China’s
economic growth rate continued to decline.
The Yodogawa Steel Group’s net sales in the fiscal year
decreased 7.4% to 203,957 million yen. Operating profit
decreased 5.1% to 12,017 million yen, ordinary profit
decreased 14.0% to 15,202 million yen, and profit
attributable to owners of parent decreased 57.9% to
4,456 million yen.
Although the business climate is likely to remainchallenging, our goal is to continue growing and further
increase our corporate value.

Satoshi Nitta, President and Representative Director

11

Q
A

What is your assessment of the Yodogawa
Steel Group’s performance in the fiscal year
ended March 31, 2024?
Sales and earnings were down because ofchallenging market conditions.

The business climate for the operations of our group in
Japan and other countries was extremely difficult during
the fiscal year ended March 31, 2024.

YODO Roof on Tsuruga Station of the Hokuriku Shinkansen

In the core steel sheet-related business, demand was soft

volume of galvanized steel sheets and pre-painted steel

QA

sheets, which are our main products, decreased.

During the past several years, we created our own brandOutside Japan, exports decreased at Sheng Yu Steel Co.,for exterior products and used partnerships with otherLtd. (SYSCO) in Taiwan but the sales volume in Taiwan

companies to develop new products that use the well-increased because of sales activities targeting new

known brands of these companies. The objectives were toapplications and sources of demand. In China, the sales

enhance the market profile of our products and add newvolume of Yodogawa-Shengyu (Hefei) High-Tech Steel Co.,

sources of demand for exterior products.

Ltd. (YSS) decreased because of the impact of the realIn the storage shed category, we started selling in April

estate market downturn on the Chinese economy. In

2021 the YODO Monooki Erumo LMD-2215 Coleman

Thailand, the performance of PCM Processing (Thailand)

storage sheds through a tie-up with this globally

Ltd. (PPT) was stable as this company continued to focus

recognized supplier of outdoor products. This is also a

on increasing sales of value-added steel sheets.

product to celebrate the 50th anniversary of our storagein Japan mainly because of the high cost of building
materials and delays in construction projects caused by thelabor shortage and other issues. Imports of inexpensive
products created more challenges. As a result, the sales

What activities during the fiscal year produced
benefits?
There was progress with joint activities withother companies.

shed business.
The result was decreases in consolidated sales and earnings.

In the past fiscal year, we started shipments of YODO

The decrease in profit attributable to owners of parent was

Monooki Erumo BEAMS DESIGN storage sheds in Aprillarger than the ordinary profit decline because of an2023. These sheds, which were very successful, use aaddition to the provision for product warranties.

licensing agreement with BEAMS Co., Ltd. Diamond Home12

Interview with Top Management

Interview with Top Management

Center, Japan’s only home improvement center magazine,

strengths of the three owners gives this new company acontinues to be slow. Our goal is a recovery backed by aselected these sheds as a hit product of the first half of

powerful base for creating new businesses.

higher sales volume resulting from strengthening the sales

2023 based on the input of home improvement center
buyers. Furthermore, the sheds placed first in the exterior/

operations of agents and making our brands moreadding products that use tie-ups with other companies.
Useful functions are the key to selling storage sheds. In

In Japan, there are challenges caused by soft demand for

addition, sales are affected by price-based competition.

construction of houses and other buildings and the rising

However, I believe that attractive designs are becoming

cost of raw materials, energy, logistics, labor and otherincreasingly important because of the growing number of

items. One priority is to seek additional sources of demandhouses in Japan with distinctive designs. Our brand tie-up

at existing customers while adding new customers. RaisingQ
A

activities are meeting this need for attractive and unusual

our prices to reflect higher expenses is another priority. The

Our group is working to accomplish the goals of thestorage sheds. As the next step, I want to further upgrade

goal of these measures is to become more profitable.

medium-term plan as one way to continue our progress(1) Reexamination of the business portfolio

the designs of our core lineup of basic storage sheds in

In other countries, one of our priorities is improving theto become a 100-year company. The Medium-Term(2) Financial strategy/capital policy

order to raise the sales volume of these products.

performance of YSS as economic growth in China

Management Plan 2022 was a phase to give us a

On June 6, 2024, we started accepting reservations to buy
Mickey Mouse model of the YODO Monooki Disney Series
that features Disney characters. We plan to continue

What are your priorities and goals for the fiscal
year ending in March 2025?
Use sales strategies for specific regions while
holding down the increase in expenses.

recovery in exports to the U.S. At this company, I want to
add new sources of demand in Taiwan and find newcustomers and markets for exports.

Please explain the key elements of theMedium-Term Management Plan 2025.
The new medium-term plan was created for the
purpose of more growth of corporate value.

YODO Warehouse

We started the Medium-term Management Plan 2025 inrunning start for reaching our targets. There were many

the past fiscal year. The primary strategic objective of theactions during the plan. The current plan, which started

plan is taking on the challenge of entering new business

in April 2023, is positioned as a three-year period forstrengthening our current businesses and creating new

fields. As one step to help solve issues in the construction

generating results. There are three basic strategies: (1)businesses. I want to maximize earnings byindustry and create new value, we have announced in

Build an even stronger profit structure, (2) Take on theaccomplishing both of these goals at the same time. To

March 2024 to establish Y.S. PANERIO CO., LTD. on April

challenge of entering new business fields, and (3)strengthen current businesses, we will be making

1, 2024. This company will concentrate on the

Establish a foundation for sustainable businesscarefully planned capital expenditures to become moredevelopment of next-generation construction technologies

operations.

competitive, especially in the core steel sheet-related

and products. This company is owned jointly with SEKINOIn April 2024, the start of the plan’s second year, I

business. In addition, we will become more efficient

KOSAN CO., LTD. and Sadoshima Corporation. The main

announced our policy for management that is conscious

mainly by reducing inventories. Another step is a

activities are the production and sale of high-performanceof cost of capital and stock price. Furthermore, forthorough examination of our business portfolio for taking

sustained growth and long-term growth of corporate

actions concerning unprofitable businesses, reorganizing

value, we made revisions to the Medium-Termgroup companies and other measures. To create newwall materials. Sadoshima is a trading company

Management Plan 2025. There are two key components

businesses, we plan to establish many alliances and use

specializing in steel and non-ferrous metals. Combining theof our activities based on this plan.

M&A, chiefly in our group’s peripheral business sectors.

exterior building materials and a small business for system-

Source: Diamond Home Center,
August 15, 2023

built houses. SEKINO KOSAN manufactures metal roof and13

powerful. At SYSCO in Taiwan, there is still no outlook for aQA

storage shed category of hit products.

YODO Monooki Erumo BEAMS DESIGN storage shed

Reexamining the business portfolio has the goals of14

Interview with Top Management

Interview with Top Management

Our financial strategy and capital policy is centered on

acquired the naming rights for the home stadium of thiscontinuation of the adversities that we encountered in

the optimization of capital. For this purpose, our plans

team, which is called Yodoko Sakura Stadium. We will

Japan and other countries during the past fiscal year. In

include the reduction of cross-shareholdings and more

continue to support this team in many ways. In June 2023,

April 2024, we announced our policy for management that

distributions of earnings to shareholders.

we signed a gold partner agreement with the Cerezo

is conscious of cost of capital and stock price. We will use

In the revised plan, our new consolidated operating profit

Osaka Yanmar Ladies professional soccer team as anotherthe business portfolio reexamination in this policy totarget for the fiscal year ending in March 2026 is at least

way to support the activities and advancement of women.

maximize earnings and a review of our financial strategy

13 billion yen compared with the original target of at least

Volunteer programs are another important part of corporate

and capital policy to optimize the use of capital. Our goal is

10 billion yen in each year of the plan. The ROE target issocial responsibility. Since FY2022, employees have been

to use these actions to increase our ROE and achieve the

7%, up from at least 5%, the shareholder distribution

participating in the Kyousei-no-Mori (coexistence forest)

long-term growth of corporate value.

target in each year is a dividend of at least 200 yen, up

creation program of the Osaka prefectural government.

We have reexamined our policy for shareholder

from at least 50 yen, and a payout ratio of at least 75%,

Volunteers perform tasks at a former industrial waste landfill

distributions. Based on the current policy, we plan to pay asite for returning this location to a natural environment withdividend of 200 yen per share for the fiscal year that ended

many types of plants and animals.

in March 2024. This is the sum of a 55 yen interim dividend

up from at least 30%. We have also established the new

The Yodoko Guest Housetarget of reducing cross-shareholdings by 30% during
the current medium-term plan.

operating. We plan to install renewable energy facilities atmore locations to make more contributions to lowering CO2

Q
A

15

Please explain the Yodogawa Steel Group’s
activities involving the environment, society
and governance?
We are installing solar power systems and have
many charitable and community activities.

emissions.
Yodogawa Steel has many corporate social responsibility
programs. One example is the Yodoko Guest House(former residence of the Yamamura family), a historic homein Ashiya, Hyogo prefecture that was designed by Frank
Lloyd Wright and is open to the public. We will continue toLowering our environmental impact is one of our greatest

preserve and responsibly manage this property. In

responsibilities as a manufacturer. In the past, energy

recognition of these activities, we received “This isconservation was a way to cut costs. Now, we realize that

MECENAT 2023” certification from the Association for

reducing energy use is essential for lowering greenhouse

Corporate Support of the Arts. The main house wasgas and CO2 emissions. We are determined to continue

designated a National Important Cultural Property by thelowering energy use for CO2 emission reductions. In

Japanese government in 1974 and in May 2024 anaddition, we started using electricity from renewable energy

application was submitted that is expected to expand thissources in 2022.

designation to include the grounds.

Electricity from renewable energy is now used at our plants

As part of activities to support communities and sports, wein Ichikawa, Kure, Osaka and Izumiotsu and at Fukui

have a partnership that began in 2021 with Cerezo Osaka

Yodoko Co., Ltd. In May 2024, a solar power system

Co., Ltd. and the Cerezo Osaka Sports Club. As a leading

generating electricity used by the Osaka Plant started

partner of the Cerezo Osaka professional soccer team, weQA

and a 145 yen year-end dividend.

Finally, what is your message to stakeholders?

Finally, I want to thank our shareholders and all otherstakeholders for your support and understanding.

I am firmly committed to the growth ofcorporate value even as the business climate
remains challenging.

In the fiscal year ending in March 2025, I expect a
Dividends per share

200

(Yen)

200

150

102

100

70

70

111

75

50

0

FY3/19FY3/20FY3/21

FY3/22

FY3/23

FY3/24(120th term)(121st term)(122nd term)(123rd term)(124th term)(125th term)

16Medium-Term Management Plan 2025

Upcoming Initiatives

Actions to Implement Management that is Conscious of Costof Capital and Stock Price

Basic strategies

Status of major initiatives

Maximization of earnings by strengthening current businesses while creating new businesses(1)Analysis of Current Situation: PBR and ROE• Strengthen current businesses
Capital expenditures to become more competitive and a shorter cash conversion cycle (inventory reductions and othermeasures) for higher efficiency
Determination of actions for building a stronger business portfolio (identify unprofitable businesses, group reorganization, etc.)• Creation of new businesses
Seek opportunities for more alliances and M&A, mainly in business sectors associated with current operations, to add new
businesses

Reexamination of thebusiness portfolio• PBR: 0.70 (as of the end of FY3/24)
The PBR has been consistently below 1 during the past 10 years, remaining in a range of 0.34-0.70.
•R OE: 2.4% (FY3/24)
The ROE was above 5% in FY3/22 and FY3/23, but declined sharply in FY3/24 due to a large extraordinary loss.
Has not yet achieved a return on equity that exceeds the cost of equity.
PBR

PBR (times)
1.20
1.00
0.80
0.60
0.40
0.20
0.00

5.0%

4.8%
1.8%

0.63

0.50

0.56

-1.9%
FY3/154.1%

0.53

FY3/16

FY3/17

FY3/18

ROE

2.6%

0.40

0.34

FY3/19FY3/20

ROE

4.0%

5.9%

6.1%
0.70

0.43

0.44

0.44

FY3/21

FY3/22

FY3/23

2.4%

8.0%
6.0%
4.0%
2.0%
0.0%
-2.0%
-4.0%

Planning on more sales of cross-shareholdings and more distributions to shareholders
The goal is the optimum capital structure, including the appropriate use of interest-bearing debt

(2)

• Reduction of cross-shareholdings[Planned reduction during the Medium-Term Management Plan 2025]
Billions of yen
Medium-term plan: April 2023-March 2026 (3 years)
End-March 2023 End-March 2026
TargetPlanned reduction: About 30% of End-March 2023 crossResult
Forecast
Reduction amount Reduction rateshareholdings, which were 28 billion yen

Financial strategy/
capital policy

28.0

FY3/24

An ROE higher than the cost of equity is the highest priority for achieving an appropriate valuation of Yodogawa Steel stock.

•Y odogawa Steel

Improve ROE

maximizes earnings byreexamining its businessportfolio and optimizes

Improve PBR(1) Reexamination of
the business portfolio

its capital policy. The goal

(2) Financial strategy /capital policy

is an ROE of at least 8%
by the end of the next

17

Creation of new businesses

Optimize use of capital

capital use by reviewing

medium-term plan.

Strengthen current businesses

Improve PER(3) IR strategy

Reduction of Cross-shareholdings
Distributions to shareholders
More IR activities
More disclosure activities

Use proceeds to fundinvestments for growth

Maximize earnings

has been increased to 7%.

8.4

30.0%

Yodogawa Steel places priority on communications with shareholders and investors and iscommitted to giving everyone a sound understanding of the Yodogawa Steel Group by
increasing opportunities for shareholder and investor dialogues.

(3) IR strategy• More investor relations and disclosure activities
Further upgrade earnings announcement presentations and meetings with investors
Enhance information provision to investors through various IR tools
Provide English translations of timely disclosure announcements as required by the Tokyo Stock Exchange

Sustained Growth and Medium/Long-term Corporate Value Growth•T he ROE target for FY3/26

19.6[Medium/long-term reduction policy]
The goal is to reduce cross-shareholdings (balance sheet valuations) to less than 10% of consolidated net assets.
• Distributions to shareholders (Dividend policy)
The amount of equity will be controlled in a suitable manner with the goal of raising the ROE to at least 8%.
During the current medium-term plan, the plan is a consolidated dividend payout ratio of at least 75% while maintaining afiscal year dividend of no less than 200 yen.
• Cancellation of treasury shares
The policy is to keep holdings of treasury shares below 10% of the total number of outstanding shares.
Plan to cancel 3 million shares of treasury stock (8.61% of outstanding shares prior to this cancelation) on May 31, 2024.

Medium-Term Management Plan 2025 Targets•S ome targets in the Yodogawa Steel Group Medium-Term Management Plan 2025 have been revised to reflect
actions for management that is conscious of cost of capital and stock price.
[Initial Targets][New Management Targets]

PeriodObjective

PeriodObjective

Consolidated operating profit

Every fiscal year At least 10 billion yen

FY3/26

ROE

FY3/26

FY3/26

7%

Capital expenditures

Three-year total 20 to 25 billion yen

Three-year total

20 to 25 billion yen

Distributions to shareholders

Every fiscal year

Annual dividend of at least 50 yen
Consolidated payout ratio of at least 30%

Every fiscal year

Annual dividend of at least 200 yen
Consolidated payout ratio of at least 75%

Criteria for treasury shareownership——

Every fiscal year

About less than 10% of the total numberof outstanding shares

Reduction ofcross-shareholdings——

Medium-term plan Reduction rate: 30% equivalent
period (3 years)
Reduction amount: About 8.4 billion yen

5% or more

At least 13 billion yen

18

Segment Overview

Steel Sheet-Related
Business
125th term (actual)
Net sales

YoY

194,031-8.0

million yen%(Millions of yen)

220,000

192,428
155,123

210,952

194,031

142,418 137,098

110,000

0

FY3/19FY3/20FY3/21

FY3/22

FY3/24

FY3/23(120th term) (121st term) (122nd term) (123rd term) (124th term) (125th term)

125th term (actual)
OperatingprofitYoY

11,954

million yen

-10.2

%

(Millions of yen)

14,21315,00010,00013,31011,954

8,254
6,052

FY3/195,898

FY3/20FY3/21

FY3/22

FY3/23

FY3/24(120th term) (121st term) (122nd term) (123rd term) (124th term) (125th term)

19

Building Materials & Exterior Products Segment

Performance in the year ended March 31, 2024

Performance in the year ended March 31, 2024

• The sales volume of galvanized steel sheets to specific high-demand customers inJapan decreased because of construction delays caused by the labor shortage andhigh cost of building materials and imports of inexpensive products. The sales volume of pre-painted steel sheets also decreased. Lower demand for home appliances following the end of the pandemic and the negative effect of inflation on consumer sentiment are the main reasons. In the building materials category, although there
were activities to add new customers and other measures during the fiscal year to
generate sales, the sales volume was down as soft demand and construction project
delays created difficulties.
• In the general distribution category in Japan, there was no growth involving non-residential small and midsize construction projects but demand was firm in the semiconductor manufacturing and large distribution center sectors. In the residential
construction sector, demand was held down by the declining willingness of consumers to make purchases. As a result, the sales volume in this category decreased.
• SYSCO increased its sales volume in Taiwan by targeting new applications and newsources of demand. However, sales were down because there was still no significant
recovery in overseas markets for this company’s products. In China, sales at YSS
decreased due to lower demand and price-based competition, despite measures forreceiving orders. At PPT in Thailand, the sales volume and monetary sales
decreased. Sales were supported by measures to sell value-added products andrevise prices in response to declining prices in the steel product market. These
activities were offset by lower production at customers, mainly in the AC industry.

• In the building materials sector, the sales volume decreased because ofrevisions of plans for constructing small/midsize buildings and delays atconstruction projects under way.
• In the exterior products sector, the sales volume of storage sheds decreased
as inflation impacted consumer sentiment. Sales of garages and other large
products remained strong.
• D espite the construction delays caused by the lack of building materials andlabor shortage, sales increased due to an increase in sales involving largecommercial buildings, university buildings and other projects.

Outlook for the year ending March 31, 2025
• Demand in Japan is expected to remain sluggish as some manufacturing sectors
recover slowly but the labor shortage and high cost of building materials holddown the building construction sector. Logistics and other expenses are likely tocontinue to increase. Activities are under way to increase sales by adding newcustomers and submitting ideas for new applications of Yodogawa Steel products
to current customers. To increase earnings, suitable revisions of product prices toreflect higher expenses are planned.
• T he outlook is for challenging market conditions for all group companies outside
Japan. In Taiwan, SYSCO is aiming for higher earnings by using new technologies,
focusing sales activities on overseas market categories requiring high quality, andother measures. In China, YSS has the goal of ending losses by raising its sales
volume and improving profitability. In Thailand, PPT is aiming for higher sales andearnings by focusing on increasing sales of high-end steel sheets, which havehigh profit margins.

Initiatives for achieving the Medium-Term
Management Plan targets

5,000

0

Steel Sheet Segment• E xpand operations tomany business sectorsthat are not vulnerable tochanges in market conditions and business climate.
• Supply products for morecategories of demand atcurrent customers andadd new customers.

Reference Building Materials & Exterior Products Segment(Yodogawa Steel, non-consolidated)
125th term (actual)
Total
net sales

27,287-3.9

Building
materials

9,315

-1.1

Exterior
products

14,639-7.6

Construction

3,332

+6.6

Outlook for the year ending March 31, 2025
• Although the high cost of building materials and the labor shortage willcontinue to create difficulties, the demand for metal panels used at distribution centers and in the semiconductor industry is strong. Activities include
sales of panels and roof materials as a single package.
• In the exterior products sector, demand for storage sheds is likely to remain
soft. However, the goal is a steady sales volume by displaying more YODO
Monooki Esumo and Erumo storage sheds at retail locations and using othermeasures.
• In the construction sector, where the labor shortage is creating challenges,
sales activities are focusing on pharmaceutical plants, data centers and otherlarge projects.

Initiatives for achieving the Medium-Term
Management Plan targets•	To increase sales of building materials, plans include more activities targetingsystem-built houses and upgrading manufacturing and sales operations toadapt to changes in demand. We are also using unified roof/wall material
sales activities for sales growth.
•	For exterior products, our goal is sales volume growth by increasing thelineup of products using collaborations with companies in other industries
and by developing value-added products based on creative and innovative
concepts.
•	In the construction sector, our goal is sales growth while making our brandeven more powerful due to more participation in projects involving Expo 2025
in Osaka and prominent building projects.

YoY

million yen

million yen

million yen

million yen

Building materials(Millions of yen)

%

%

%

%

Exterior products

Construction

30,0003,125
2,776 2,432
3,332
15,845
15,227 15,673 16,139
16,167
14,639
2,791

3,737

20,00010,0000

10,042

FY3/19

8,785

8,143

7,420

FY3/20FY3/21

FY3/22

9,422

9,315

FY3/23

FY3/24(120th term) (121st term) (122nd term) (123rd term) (124th term) (125th term)

An exterior product (shutter)using Yodoko steel sheets

A home appliance using
Yodoko steel sheets

A building with YODO fire-proof panel Grand Wall
(Main building of TOYOTA MEMORIAL HOSPITAL)YODO Monooki Storage
Shed Esumo

20

Segment Overview

Review of Operations

Roll Business

Performance in the year ended March 31, 2024

125th term (actual)YoY

Net sales

3,124

+6.6

Operatingprofit55—

million yen

million yen%

Outlook for the year ending March 31, 2025

Net sales(Millions of yen)

4,000

3,500

2,833

2,344

2,689

2,929

3,124

2,000

0

FY3/19FY3/20FY3/21

FY3/22

FY3/24

FY3/23

Grating BusinessYoY

Net sales

3,431

-2.0

Operatingprofit207+302.5

million yen

million yen%%

Net sales(Millions of yen)

3,554

3,481

3,529

3,443

3,500

3,431

2,000

FY3/19FY3/20FY3/21

FY3/22

FY3/23

FY3/24(120th term) (121st term) (122nd term) (123rd term) (124th term) (125th term)21•	Increase market share by focusing on opportunities involving updates of blast
furnace steelmaker production lines.
•	Many sales activities outside Japan mainly for sales of rolls for heavy plate
rolling, which have high profit margins.

Performance in the year ended March 31, 2024

125th term (actual)0•	Activities are focusing on capturing orders and improving selling prices ofsteelmaking rolls in a business climate where global instability may raise thecost of raw materials even more.
•	In other market sectors, one priority is receiving roll replacement orders as
papermaking companies resume roll replacements. There are also many
activities to receive maintenance orders to generate sales.

Initiatives for achieving the Medium-Term
Management Plan targets(120th term) (121st term) (122nd term) (123rd term) (124th term) (125th term)

4,000•	Although the downturn in production at both blast furnace and EAF steelmakers appears to have ended, the sales volume of rolls for steelmaking
decreased as inventories of these rolls were reduced.
•	In other market sectors, the sales volume was down mainly because of thecancelation of roll replacements in the papermaking industry due to weaksales. As a result, maintenance services for aging rolls accounted for mostsales outside the steel industry.

•	Although public-works budgets were the same as in the previous fiscal year,
expenditures for highway projects decreased as more funds were used fordisaster readiness projects. In the private sector, construction activity was
limited by the high expenses and the chronic labor shortage. Most significant
was declines in construction starts of factories and warehouses. As a result,the sales volume of gratings decreased.
•	Improving selling prices for profitability as the cost of raw materials and othersupplies increases.

Outlook for the year ending March 31, 2025
•	With a demand in both the public-works and private-sector construction
categories unlikely to recover, the goal is to generate sales resulting from
activities to add sales channels in market sectors other than highways where
highly profitable products can be sold.
•	High prices of raw materials and other supplies, logistics, and other items willprobably continue to exert downward pressure on earnings. We are working
on quickly increasing selling prices in order to be profitable.

Initiatives for achieving the Medium-Term
Management Plan targets•	Receive orders consistently by precisely meeting needs in market sectors
other than highways.
•	Increase earnings by raising the pct. of sales from high-margin products whileraising sales of OEM products.

Real Estate &Other Businesses

Performance in the year ended March 31, 2024

125th term (actual)
Net sales
Operatingprofit

YoY

3,369

+14.9

1,193

+16.6

million yen

million yen%%

Net sales(Millions of yen)

6,000

5,241

5,333

3,000

0

FY3/19FY3/20

2,990

3,092

2,931

FY3/21

FY3/22

FY3/233,369•	In the Real Estate Business, occupancy rate at tenant-occupied buildings was
about the same as in the previous fiscal year.

Outlook for the year ending March 31, 2025
• Effectively utilizing properties remains the priority of the Real Estate Business.

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

FY3/24(120th term) (121st term) (122nd term) (123rd term) (124th term) (125th term)

TopicsLaunch of the Mickey Mouse model of the YODO Monooki Disney Series

We started accepting reservations on June 6, 2024, forpurchases of the Mickey Mouse model of the YODO Monooki
Disney Series.
This eye-catching storage shed features Mickey Mouse, a worldfamous Disney character who debuted in 1928. A colorful
design, handles and other elements with a Mickey Mouse theme,
and stickers that can be placed anywhere make this cabinet
featuring Mickey and Minnie an attractive addition to a room.
For more information, please click the link below.
Website for the Mickey Mouse model of the YODO Monooki
Disney Series
https://www.yodomonooki.jp/disney/
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 1973
Chairman of the Board : Koichi Tarumiya
Paid-in capital: NT$ 3,211.8 million
President: Johnson Hung
Business activities : Steel sheet manufacturing and sales
Number of employees : 502
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: Yasushi Taniguchi
Paid-in capital: THB 1,377.259 million
Number of employees : 106
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, 2024

Outlook for the year ending March 31, 2025

Performance in the year ended March 31, 2024

Outlook for the year ending March 31, 2025

•	Consumer spending was strong in Taiwan in 2023 following the downturn
during the pandemic. However, Taiwan’s economic growth was slower than
the forecast because of weak external demand caused by a sluggish global
economy.
•	Although the size of the market in Taiwan is declining, the sales volume in
Taiwan increased because of market share gains resulting from successful
activities to add new applications and sources of demand.
•	The sales volume of exports decreased because there is still no broad-based
recovery of this market. The reasons are price-based competition in Asian
countries and the continuation of trade protectionism in the United States.

•	The expected decline in U.S. interest rates will probably have a positiveeffect on overall demand. However, we expect that the business climate willremain difficult because of conflicts in many areas of the world, the highcost of ocean freight, the increasing pace of measures for carbon neutrality,
and other reasons.
•	Many initiatives are under way for earnings growth while meeting the needsof society. Major goals are higher quality pre-painted steel sheets, a more
powerful brand, more sales activities involving construction and solar power
generation, adding new technologies, DX progress, and a focus on overseas market categories that require high quality.

•	During the fiscal year’s first half, the sales volume of steel sheets used in
the core categories of home appliances (refrigerators, washing machines,
microwave ovens) was strong and AC outdoor units also contributed tosales. In the second half, inventory reductions by manufacturers held down
sales but there were activities to maintain appropriate prices in order toremain profitable.
•	Building material product sales volume down because of competition from
inexpensive products made in China.

•	Maintaining suitable prices while monitoring market trends and the possibility of slower growth in China.
•	For sales growth, the goals are higher sales of pre-coated metal (PCM)
used in AC outdoor units and the addition of new suppliers in the ASEAN
region.

YSS China
Trade name: Yodogawa-Shengyu (Hefei) High-Tech Steel Co., Ltd.
Established: October 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 : 260

Performance in the year ended March 31, 2024

Outlook for the year ending March 31, 2025

•	Although pandemic restrictions have ended, demand for steel in China wasstill weak because of slow economic growth. China’s long real estate market
downturn and intense price-based competition also impacted this company’s
performance. The result was a decrease in the sales volume.
•	In the building materials category, the sales volume increased despite softdemand caused by slow economic growth in China. Higher sales were theresult of more sales agents and measures to reinforce sales activities.
•	In the home appliance category, there were sales activities to add new customers that included new applications for AC outdoor units and washingmachines.

•	To increase the sales volume of building materials, a category where
demand is expected to decline, YSS plans to further upgrade sales capabilities of agents and use many activities to raise awareness of products for aneven more powerful brand.
•	In the home appliance category, YSS is aiming for sales volume growth
despite weak demand among end users by increasing activities to add newcustomers while working with sales agents.

Topics

New solar power generation system at SYSCO’s Pyeongnam Plant

SYSCO has the goal of reducing its CO2 emissions to 7%
below the 2018 level by 2025. Activities include energy
conservation measures on production lines and the planned
installation of ground and rooftop solar power generation
systems, which are expected to lower CO2 emissions
significantly. SYSCO estimates that the use of solar power willproduce a benefit equivalent to cutting these emissions by
about 5,000 tons every year.
SYSCO has submitted a power transmission line applicationand started the installation of solar panels. Completion isscheduled for August 2025.

*Rendering of the completed solar power generation system
24

A Base that Supports Value Creation (ESG Information)

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

ISO 14001 Certified Business Sites
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.

SafetyEnvironment

Business site

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

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

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

June 2000

Osaka Plant

December 2000

Kure Plant

December 2000

Energy Management Planning& Promotion Officer

Director in charge ofEnvironmental Issues
Corporate Planning Division
Senior General Manager

Plants Division

Offices Division

Yodoko Group companies

Environmental Officers

Environmental Officers

Environmental Officers

Departmental/Division Managers

Environmental Managers
Environmental Activity Personnel

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

Purpose and objectives of environmental activities
Combat global warming

Create a recycling-oriented
society
Reduce environmentally
harmful substances

Consideration for theenvironment

Sustainability
Promotion Department

Pollution Prevention Officers
Energy Officers

Examining/certifying agency

Environmental Managers

CO2 emissions(1,000 t-CO2)

Reduce the use of resources

50

Reduce VOC emissions

0

Reduce usage of toxic chemicals

Combat Global Warming
Yodogawa Steel is a participant in the Carbon Neutrality Action
Plan of the Japan Iron and Steel Federation, which has thegoals of combating global warming and conserving energy. For
manufacturers, activities include updates of equipment for raising efficiency and improving business operations and using
LED lights for peripheral equipment and other energy-efficient
items. For logistics, our activities include shifting to rail andmarine transport and raising cargo capacity utilization on trucks
and other modes of transportation. We are also encouraging
offices to moderate room temperatures (28ºC in summer and
20ºC in winter) and to use the “Cool Biz” (avoiding businesssuits in summer) and other energy-saving programs.

SCOPE 2

37%
cut

101
100

Rigorous risk management

SCOPE 1150

Reduce CO2 from transport
activities

Contribute to communities

Consolidated (Japan)

200

Reduce CO2 from manufacturing

Environmentally conscious productand technology development

President
Energy Management Officer

Date certified

Ichikawa Plant

Yodoko Environmental Management System

Environmental Managers

25

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

The plants in Osaka and Izumiotsu started using electricity fromrenewable energy sources in FY2022. In FY2023, the use ofthis electricity started at plants in Ichikawa and Kure and Fukui
Yodoko Co., Ltd.
More activities are planned for energy conservation and the useof electricity from renewable energy in order to lower CO2 emissions.
In the fiscal year ended March 2024 (FY2023), although there
were some effects of sluggish demand for steel products, we
cut CO2 emissions by 37% and energy consumption by 31%(both vs. FY2013) partly due to energy conservation and theuse of electricity from renewable energy.

76

68

71

65

78

69

69

74

68

2013

2019

2020

2021

2022

58
54
2023 (Fiscal years)*Figures in prior years have been revised for consistency with the new calculation method.
CO2 emissions in Japan have been classified using the following SCOPE categories in accordance with the GHG
Protocol, which is an international standard.
SCOPE 1: Direct GHG emissions of a company (fuel combustion and industrial processes)
SCOPE 2: Indirect GHG emissions resulting from electricity, heat and steam supplied by other companies*Emission coefficients for gas suppliers have not been announced. Calculations use the substitute coefficient(coefficient designated by regulations) of 2.05t-CO2/thousand m3.

Energy consumption

Consolidated (Japan)

(TJ)

3,500
3,000

31%
cut

2,500
2,000
1,500

3,202

2,832

2,751

2,995

2,779

2019

2020

2021

2022

1,000

2,208

500
0

2013

2023 (Fiscal years)*Figures in prior years have been revised for consistency with the new calculation method.
(Adjusted to use the same scope of calculations as for SCOPE 1 and 2 CO2 emissions)

26

A Base that Supports Value Creation (ESG Information)

Topics 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 FY2023, our total volume of waste materials was 71,000 tons. The recycling rate
was 59.8%.

ESG Information

Solar power system to supply electricity used by the Osaka Plant

Economical Utilization of Clean Energy
On the roofs and grounds of our Osaka, Izumiotsu and Himeji
Plants, and at group companies, we have installed solar power
generation systems that produced approximately 6,092 MWhof electricity in FY2023. This solar power reduces annual CO2
emissions by about 2,669 tons.

As one step for the decarbonization of our operations, the Osaka Plant receives electricity from a solar power facility
using the on-site power purchase agreement (PPA) business model. The facility began producing electricity in May 2024.
Electricity is generated by 915 solar panels with a total
area of 2,363m2. Annual production is expected to beapproximately 572,000kWh, which is equivalent to anannual CO2 emission reduction of about 175 t-CO2.
We plan to continue increasing the use of solar power
generation system to play a role in creating a carbonfree society.

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

120
80
40
0

Total volume createdVolume recycled

Recycling rate

62.1

62.1

62.9

61.8

78

78

85

77

48

48

53

2019

2020

2021

(%)

80

59.8

60

71
48

40

43

20
0

2022

2023 (Fiscal years)

Reduce Environmentally Harmful Substances
Yodogawa Steel participates in the Voluntary Action Program of
the Japan Iron and Steel Federation. We have adopted the program’s goal of not allowing emissions to exceed FY2010 levels
and we are lowering our VOC emissions. To date, we havetaken steps including upgrading the deodorizing apparatus on
our pre-painted steel sheet production lines and lowering
FY2023 VOC emissions to 41.0% below the FY2010 level.
VOC emissions and reduction rate

(Non-consolidated)

(t)

80
60

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.
In FY2023, environmental investments totaled 19 million yen,including replacement of forklifts with electric models, theinstallation of LED lights and other expenditures.
Total environmental upgrade/replacement expenses in FY2023
were 688 million yen, consisting of 16% for air pollution prevention, 30% for water contamination prevention, and 25% for processing industrial waste. These expenses were mainly for preventing pollution and recycling resources.

Base year

VersusNote: FY2023 numerical environmental data on pages 26 and 27 are preliminary
figures.

64

41.0%

Environmental protection expenses
Investments and upgrade/replacement expenses consolidated (Japan)

40

2010

-40.8%-40.9%

38

38-33.1%

43-38.8%

39

20

cut

38

800

Upgrade/replacement expenses

644

600

702

623

556

688

400

2010

(Base year)

27

Investment(Millions of yen)200
0

CDP climate change questionnaire

Photovoltaic power generation system at the Izumiotsu Plant

2019

2020

2021

2022

2023
(Fiscal years)

0

26
2019

24
2020

23
2021

12
2022

19
2023
(Fiscal years)

We started providing responses to the CDP*1 climate change questionnaire in FY2023 andreceived a management level score of B-. Activities will continue to increase the disclosure of
information concerning our environmental programs.
*1 O riginally known as the Carbon Disclosure Project, the CDP is an international non-profit organization that started in Britain. The CDP
performs surveys of the environmental programs of companies and the public sector and makes survey results available to the public. In
2023, more than 23,000 companies accounting for about two-thirds of global market capitalization used the CDP to disclose information. The
CDP uses questionnaires to assign one of eight scores: A/A- is leadership, B/B- is management, C/C- is awareness, and D/D- is disclosure.

Kyousei-no-Mori creation volunteer activities
Activities overseen by the Osaka prefectural government are under way in the city of Sakai to create a Kyousei-no-Mori(coexistence forest). Program participants are residents of the prefecture, non-profit organizations, companies and the
public sector. This project has the goal of transforming a former industrial waste landfill site into a natural environment
suitable for many types of plants and animals.
Selectively removing vegetation

Preparing to plant seedlings

Placing seedlings in the ground

Volunteers from Yodogawa Steel havebeen helping with forest thinning, planting trees and other activities since
FY2022.
A tree planting festival was held on
March 2, 2024. More than 100 people
from many backgrounds, including families living in Osaka, student volunteers,
employees of companies and others, toplant more than 500 tree seedlings.
28

A Base that Supports Value Creation (ESG Information)

ESG Information

Our Products Help Solve Social Issues

Chromate-free Products
Reduce the Use ofEnvironmentally Harmful
Substances

Major related SDGs

Contributing to Global
Warming Prevention
through Insulation
Solutions

Major related SDGs

Use of Yodogawa Steel Products
for Disaster Preparedness and
Mitigation

Major related SDGs

Major related SDGs

Safety Security Environment

Safety Security Environment Beauty

Safety Security Environment

Safety Security Environment

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

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

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

During the pandemic, there was a need for performing PCR andother COVID-19 tests at locations that are separate from othersections 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 Erumo Storage Shed with a lockthat automatically opens after a strong earthquake

29

Innovative Exterior Products for
Healthcare Facilities

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

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

Mechanical earthquake
detector

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

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

30

A Base that Supports Value Creation (ESG Information)

ESG Information

Social
Product Development Initiatives

R&D Philosophy

Steel Sheet and Building Materials & Exterior Products

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

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

Creating value through business activities

Building
materials&
exterior
products

Steel sheets

Security
SafetyEnvironment
BeautyGrating

Rolls

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

Segments
Steel Sheets

Building Materials and Exterior Products

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

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

Product Development Center (Osaka Plant)

A surface measurement instrument31

Coefficient of friction testing unit

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

Fire resistance testing unit (horizontal furnace)

Water seal and wind pressure resistancetesting unit

Door opening-closing testing unit

32

A Base that Supports Value Creation (ESG Information)

ESG Information

Product Development Initiatives

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

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

Overseas Subsidiaries

Basic Policy for Quality Assurance

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

Cyclic corrosion tester (CCT)

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

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

Load testing33

Condensation circulation-type carbon
arc weathering tester

QUV weathering tester

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

A Base that Supports Value Creation (ESG Information)

Human Resources Development for Sustainable GrowthSocial Contribution Activities

Human Resources Development

 onations to Charities Using Shareholder
D
Benefits

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

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

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

Young employee training

Other training
programs

Training for female managers

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

New employee training

Voluntary management activities in small groups that we call JK
Activities are used to make improvements concerning quality, cost
cutting, productivity, safety, the environment and other themes. Every
year, the Yodogawa Steel Group holds a JK Conference in Osakathat brings together people from group companies worldwide. At the
FY2023 conference, which was the first in four years, 13 participants
were chosen to represent group companies in Japan and othercountries. Each participant gave a presentation about small group
activities. This event contributes to
the growth and self-realization of all
employees even in business climates
unlike those in prior years. JK Conferences provide an opportunity to
study examples of initiatives that
improve business processes andenable participants to stimulate eachother to do their best.
Yodogawa Steel Group JK Conference

Diversity

Main training programs

35

ESG Information

New manager training

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

Donations by shareholders of record on March 31, 2023 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 2023 in thename of the Yodogawa Steel Works, Ltd. (Shareholder Donation
Account).
Total donations: 107 shareholders 516,000 yen
UNICEF: 30 shareholders 162,000 yen
The Japanese Red Cross Society: 24 shareholders 116,000 yen
Ashinaga Foundation: 53 shareholders 238,000 yen	Transfer to donations from shareholders who did not apply forshareholder benefits: 700 shareholders 3,808,000 yen*Donations for UNICEF, the Japanese Red Cross Society andAshinaga Foundation

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 holding cultural activities since 2014 with the Kaohsiung
Municipal Social Education Center in Taiwan. These donations are
one part of our activities 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 for use by children
and supervising adults to ensure their safety. In Thailand, PPT is participating in a scholarship project to support education at elementary
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,
2024, 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 25, 2024)
Directors

Audit & Supervisory Board Members

Satoshi Nitta

Toshio Kumamoto Tadashi Hattori

Eiichi Tanaka

Kenji Hayashi

Hiroaki Shinohara

President andRepresentative Director

Director, Senior Managing
Executive Officer

Director, Senior Managing
Executive Officer

Director, Senior Managing
Executive Officer

Audit & Supervisory Board
Member (full-time)

Audit & Supervisory Board
Member (full-time)

Sadao Kobayashi

Katsuyuki Kuse

Miho Ishihara

Ritsuko Watanabe Tomoko Matano

Director(Independent Outside Director)

Director(Independent Outside Director)

Director(Independent Outside Director)

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

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.

Name

Attendance at Board of Directors meetings

Attendance at Audit & Supervisory Board meetings

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.

Sadao Kobayashi

15 of 15 meetings—

Katsuyuki Kuse

15 of 15 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.

* Miho Ishihara

15 of 15 meetings

16 of 16 meetings

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

15 of 15 meetings

16 of 16 meetings

June 2019
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.

June 2024

A female Outside Director was elected in order to facilitate more energetic discussions from diverse perspectives at Board meetings.

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

FY2023 (as of June 25, 2024)
Attendance by Outside Directors and Outside Audit & Supervisory Board Members

Ritsuko Watanabe
Tomoko Matano

Appointed as an Outside Audit & Supervisory Board Member at the General Meeting of Shareholders held on June 25, 2024.

*Miho Ishihara served as an Outside Audit & Supervisory Board Member of Yodogawa Steel until the General Meeting of Shareholders held on June 25, 2024.

38

A Base that Supports Value Creation (ESG Information)

ESG Information

Analysis and Evaluation of Effectiveness of the Board of Directors

Sadato Kobayashi

Miho Ishihara

Apr. 1974

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

Joined Mitsubishi Plastics, Inc. (currently Mitsubishi Chemical
Corporation)
Apr. 2010 Executive Officer and General Manager of Nagahama Plant andSanto Plant of Mitsubishi Plastics, Inc.
Apr. 2011 Director of the Board, Managing Executive Officer of Mitsubishi
Plastics, Inc. and Managing Executive Officer of Mitsubishi Chemical
Holdings Corporation (currently Mitsubishi Chemical Group
Corporation)
Apr. 2015 Representative Director and Senior Managing Executive Officer of
Mitsubishi Plastics, Inc.
Apr. 2017 Advisor of Mitsubishi Chemical Corporation
Jun. 2019 Advisor of Japan Excel-Management Consulting Co., Ltd.
Jun. 2021 Outside Director of Yodogawa Steel (current)
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.

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

May 2010

Dec. 2010
Jun. 2019
Jun. 2022
May 2023
Jul. 2023
Jun. 2024

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 Strategy & Consulting
Co., Ltd.)
Opened Ishihara Certified Public Accountant Office (currently
Ishihara Certified Public Accountant & Certified Public Tax
Accountant Office) (current); Joined Hibiki Audit Corporation
Registered as Certified Public Tax Accountant
Outside Audit & Supervisory Board Member of Yodogawa Steel
Outside Director of NICHIA STEEL WORKS, LTD. (current)
Outside Director, Auditor and Supervisory Committee Member ofZuiko Corporation (current)
Senior Partner of Kainan Audit Corporation (current)
Outside Director 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)
Nov. 2012 Partner of Hommachi Chuo Law Office (current)
Jun. 2020 Outside Audit & Supervisory Board Member of Yodogawa Steel(current)

Yodogawa Steel asks all Directors and Audit & Supervisory Board Members to complete questionnaires in order to analyze
and evaluate the effectiveness of the Board of Directors. The following is a summary of the evaluation performed in FY2023.
1 Questionnaires

Scope

All 7 Directors and all 4 Audit & Supervisory Board Members

FormatAll responses with names

Coverage

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

2 Analysis and evaluation results

3 Actions in response to the evaluation results

The Board of Directors is generally operating properly with regard
to its composition, roles, how meetings are held, and the statusof corporate governance and the Nomination & Remuneration
Committee.
The questionnaire identified the following measures for further
increasing the effectiveness of the Board of Directors: more thorough discussions of business strategies and business plans thatreflect changes in the business climate and the effective utilizationof the Nomination & Remuneration Committee.

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, 2024)

General Meeting of Shareholders

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

Tomoko Matano
Joined Asahi & Co. (currently KPMG AZSA LLC)
Registered as Certified Public Accountant
Joined GYOSEI & CO.
Registered as Certified Public Tax Accountant; Opened Matano
Certified Public Accountant Office (current)
Oct. 2014 Partner of GYOSEI & CO. (current)
Jun. 2024 Outside Audit & Supervisory Board Member of Yodogawa Steel(current)

Advisory

Nomination &Remuneration Committee

Response

Oct. 1998
Apr. 2002
Apr. 2008
Sep. 2012

Company-wide
Committees

39

ReportReportPresident andRepresentative Director
ReportExecutive Committee
Instructions

Audit
Rep

ort/

Instructions

Reason for Election
Ms. Matano has many years of experience as a certified public accountant andconsiderable knowledge about finance and accounting. This experience andknowledge can be used for the auditing activities of Yodogawa Steel.

Board of Directors(Directors)

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

Internal Audit Department
Whistleblowing system Internal channel

Audit

Accounting auditor

Background of Outside Officers / Reason for Election

Whistleblowing

Audit

Report40

Financial Information: Overview of Consolidated Results of Operations
Market environment

decreased 2,483 million yen to 15,202 million yen, and profit attributable to owners of parent decreased 6,137 million yen to 4,456
million yen.
Regarding sales, in Japan, efforts to realize selling prices of products that can be reproduced improved the selling prices, however,sales volume declined partly because of downturn in domestic steel
demand, resulting in lower sales. Overseas, our China subsidiary
Yodogawa Shengyu (Hefei) High-Tech Steel Co., Ltd. (YSS) saw
sluggish growth both in sales volume and unit price due to economic downturn in China, resulting in lower sales. In addition, ourThailand subsidiary PCM PROCESSING (THAILAND) Ltd. (PPT)
improved sales prices as a result of efforts to expand sales of highvalue-added steel sheets, however, resulted in lower sales due todecline in volume. For earnings, operating profit in Japan decreased
due to decline in sales volume, despite the revisions of selling prices
for our steel sheet products. Overseas, on the other hand, ourTaiwan subsidiary Sheng Yu Steel Co., Ltd. (SYSCO) saw anincrease in earnings due to recovery of sales volume in the domestic market in Taiwan, despite decline in sales volume for export. YSS
saw a decrease in earnings due to the prolonged downturn in thereal estate market and other factors. PPT saw an increase in earnings due to improved profitability despite decline in sales volume.
Consequently, consolidated operating profit decreased. Ordinary
profit decreased more than operating profit did, mainly due to adecrease in gain on sale of investment securities in non-operating
income year on year. Profit attributable to owners of parent
decreased more than ordinary profit did, mainly due to provision for

In the fiscal year ended March 31, 2024, there was a moderate
economic recovery in Japan as economic activity began returning
to normal due to progress, such as reclassification of COVID-19’s
category from Class 2 to Class 5. However, the recovery lacked
strength due to impact of price hikes and other factors.
Looking at the world economy, in the United States, economy
remained solid by steady employment conditions and consumer
spending. While at the same time, in China, the economy showed
increasing signs of slowdown due to downturn in the real estatemarket, worsening employment conditions, and other factors, andin Europe, the economy remained stagnant due to weak domestic
demand caused by monetary tightening policies.
In Japan, automobile production, which seemed picking up as
semiconductor supply shortages eased and by other factors,
declined at the end of the fiscal year, and residential construction
and machinery orders are weak. Under the circumstances, orders
and production remained sluggish in the steel industry. In overseas
steel markets, there were expectations for recovery due to solid
economic performance in the United States, however, there were
few signs of recovery in the Chinese economy. Therefore, the overall market conditions remained weak.

Results of operations
The Yodogawa Steel Group’s net sales in the fiscal year decreased
16,356 million yen to 203,957 million yen. Operating profit
decreased 647 million yen to 12,017 million yen, ordinary profit

Net sales

Operating profit(Millions of yen)

220,000(Millions of yen)

220,314203,957

14,00012,66512,017The outlook for the global economy is expected to recover due to
steady economic trend in the United States and declining inflationworldwide. However, uncertainty is expected to remain due to concerns about prolonged situation in Ukraine and Palestine, and prolonged downturn in the real estate market in China.
In Japan, there are expectations for recovery in demand by higher
wage levels. However, the trend of rising prices is expected to continue and the Bank of Japan’s monetary policy trend needs to beclosely monitored. The economy is expected to be significantly
affected by the aforementioned global risk factors.
In the steel markets in Japan and other countries, while prices ofraw materials used for steelmaking as well as cost of resources andenergy are expected to remain at a high level, there are additional
geopolitical risks such as the situation in Russia and Ukraine andconcerns over the Taiwan emergency. Due to this situation, the steelmarket, including the balance between supply and demand, islikely to remain unstable for the time being.
The Yodogawa Steel Group as well is likely to continue to operate
in a challenging business climate due to the unpredictability andinstability of demand and costs in all regions.

Total assets(Millions of yen)

(Millions of yen)

10,593−

57.9% YoY

Distributing earnings to shareholders is one of the highest priorities
of Yodogawa Steel. Earnings are distributed by paying dividends
that reflect results of operations, repurchasing stock, and in otherways. The basic policy for dividends that are in line with our resultsof operations is to make payments that are stable and continuous.
Dividends also take into consideration the need for funds for investments and other actions for increasing corporate value, the outlook
for sales and earnings, the need to maintain financial soundness,and other items.
Regarding shareholder returns for the three fiscal years ending on
March 31, 2024, 2025 and 2026, we will place emphasis on dividend payments, maintaining an annual dividend of at least 200 yen
per share considering factors such as our capital investment planand financial condition, with the target consolidated payout ratio of
75% or more, revising our initial policy.
The basic policy is to pay interim and year-end dividends. In accordance with Article 459, Paragraph 1 of the Companies Act, theYodogawa Steel Articles of Incorporation state that dividends canbe paid based on a resolution of the Board of Directors, except incases where stipulated otherwise by laws and regulations.
The year-end dividend for the fiscal year that ended March 31, 2024
is to be 145 yen per share. With the interim dividend of 55 yen, thiswill result in a dividend of 200 yen per share for this fiscal year.
The forecast for the dividend for the next fiscal year is based on theabove dividend policy and in consideration of the performance
forecast.

Outlook

Profit attributable to owners of parent
11,000Returns to shareholders

product compensation, while profit attributable to owners of parent
decreased more than profit did, due to the high percentage of
non-controlling interests at SYSCO, which was a major reason thatthe consolidated profit increased.

260,000

Cash and cash equivalents at end of period
265,863251,057(Millions of yen)

Dividends per share(Yen)

57,39860,000200

200

40,712110,000−

7.4% YoY

0−(124th term)

FY3/24(125th term)

4,456

5.1% YoY00

FY3/23

41

5,500

7,000

FY3/23(124th term)

FY3/24(125th term)

130,000+

5.9% YoY0

FY3/23(124th term)

FY3/24(125th term)

30,000+41.0% YoY0

FY3/23(124th term)

FY3/24(125th term)

100

111

0

FY3/23(124th term)

FY3/24(125th term)

FY3/23(124th term)

FY3/24(125th term)42Consolidated Financial Statements

Financial Information

Consolidated Balance Sheet(Millions of yen)

FY3/23

FY3/24

FY3/23(as of March 31, 2023) (as of March 31, 2024)

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

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

56,80845,4744,823
4,009
22,751
5,591
14,9391,898(177)
156,119

67,510(48,585)
18,925
147,138(134,183)
12,95519,095
177
(106)
70
4,457
12,343(11,246)
1,097
56,602

68,841(50,487)
18,353
150,727(138,850)
11,876
19,235
237
(138)
98
4,971
12,619(11,215)
1,403
55,940

2,076
2,076

2,203
2,203

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

49,6431,422
86
447
51,600109,743
265,863

Consolidated Statement of Income

FY3/24

FY3/23

FY3/24(April 1, 2022 to March 31, 2023)(April 1, 2023 to March 31, 2024)

Net sales

220,314203,957

Cost of sales

187,650

172,188

Gross profit

32,664

31,769Selling, general and administrative expenses

19,99819,751

Operating profit

12,66512,017

Non-operating income

5,350

3,508

Non-operating expenses

329

324

17,686

15,202Extraordinary income

187

1,352

Extraordinary losses

1,006

8,472

Profit before income taxes

16,867

8,082

Income taxes-current

5,321

4,573

Income taxes-deferred(348)(2,363)

Total income taxes

4,973

2,210

Profit11,893

5,872

Profit attributable to non-controlling interests

1,299

1,415

Profit attributable to owners of parent

10,593

4,456(as of March 31, 2023) (as of March 31, 2024)

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
Provision for product compensation
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
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)

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

13,892
2,986
544
60
2,097
240
1,117
—
7,174
28,113

10
3,873
807
32
5,517
—
3,816
14,05849,150

74
4,445
807
28
5,315
9,457
3,786
23,91752,031

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

23,22018,279126,905(11,845)
156,559

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

22,543
1,505
7,881
1,089
33,020125
24,126
213,832
265,863

Ordinary profit

Consolidated Statement of Comprehensive Income(Millions of yen)

FY3/23

FY3/24(April 1, 2022 to March 31, 2023)(April 1, 2023 to March 31, 2024)

Profit11,893

5,872

Other comprehensive income

3,022

10,415Comprehensive income

14,916

16,28744

Consolidated Financial Statements

Financial Information

Consolidated Statement of Changes in Equity (April 1, 2023 to March 31, 2024)
Shareholders’ equity
Share
capitalBalance at beginning of period

23,220CapitalsurplusRetainedearnings

18,267 126,064(Millions of yen)

Accumulated other comprehensive income

TreasurysharesForeigncurrencytranslation
adjustment

Valuation
Revaluation
Total
difference on
reserve forshareholders’available-forland
equitysale securities(11,895) 155,657

16,115

1,529

5,958

Share
Remeasure­ Total accumulated other acquisition
ments ofrightscomprehendefined
benefit plans sive income

412

24,016

Noncontrollinginterests

140

Total net
assets

22,092 201,906

Changes during period(3,638)Dividends of surplus
Profit attributable toowners of parent(3,638)4,456

Purchase of treasury
shares
Disposal of treasury
shares11

Reversal of revaluation
reserve for land

4,456

(8)

(8)

(8)

58

69

69

23

23

Net changes in items
other than shareholders’equityTotal changes during period
Balance at end of period(3,638)

4,456

23

6,427
—
23,22011841

18,279 126,905

50

Corporate Profile / Stock Information (as of March 31, 2024)

(23)

1,922

677

9,004

(15)

2,033

11,022
11,925

902

6,427

(23)

1,922

677

9,004

(15)

2,033

(11,845) 156,559

22,543

1,505

7,881

1,089

33,020125

24,126 213,832

Corporate Profile

Main Affiliated Companies

Company name Yodogawa Steel Works, Ltd.

Consolidated Subsidiaries

Established

January 30, 1935

Capital23,220,815,228 yen

Employees

1,217

Major Offices & Plants
Head office

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

Tokyo branch

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

Sales offices

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

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

Takada Kozai Kogyo Co., Ltd.

Steel sheet processing, sales, andwarehousing

Sheng Yu Steel Co., Ltd.

Steel sheet manufacturing and sales

Yodoko Shoji Co., Ltd.

Steel wholesaling and transportation

Keiyo Tekko Futo Co., Ltd.

Distribution and warehousing

Yodoko Kohatsu Co., Ltd.

Golf course and other management andreal estate leasing

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

Steel sheet manufacturing and sales

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

Manufacture and processing of exterior
products and other activities

Equity-Method Affiliated Companies
Sadoshima Corporation

Steel wholesaling

Principal Shareholders
Name

Consolidated Statement of Cash Flows
FY3/23

FY3/24(April 1, 2022 to March 31, 2023)(April 1, 2023 to March 31, 2024)

Cash flows from operating activities

17,336

21,521

Cash flows from investing activities(3,160)(809)

Cash flows from financing activities(5,092)(5,360)

667

1,334

Net increase (decrease) in cash and cash equivalents

9,750

16,685

Cash and cash equivalents at beginning of period

30,961

40,712

Effect of exchange rate change on cash and cash equivalents

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

40,712

57,398

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

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

2,989

10.24

INTERTRUST TRUSTEES (CAYMAN) LIMITED SOLELY IN ITS CAPACITY AS TRUSTEE OF JAPAN-UP

2,003

6.86

Yodoko Partners’ Shareholding Association

1,091

3.73

Resona Bank, Limited.

1,068

3.66

Mizuho Bank, Ltd.

1,062

3.63

Custody Bank of Japan, Ltd. (Trust Account)

722

2.47

Ohgi Shokai Co., Ltd.

702

2.40

Hanwa Co., Ltd.

628

2.15

Nippon Life Insurance Company

618

2.11

POSCO

600

2.05

Notes: 1. Treasury shares (5,651,774 shares) held by Yodogawa Steel are not included in this list ofmajor shareholders.
2. Shareholding ratios do not include treasury shares (5,651,774 shares).

Share Ownership by Category
Other companies
in Japan

Securities
corporations

0.95％

22.29％

Individuals
and others

14.63％

Treasuryshares

16.22％
Overseas
investors

23.22％

34,837,230
sharesFinancial
institutions

22.66％
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: 0120-288-324 (toll free in Japan) Business hours: 9:00–17:00 (weekdays, excluding weekends and public holidays) 0120-524-324 (Dedicatednumber for the electronic provision system) Business hours: 9:00–17:00(weekdays, excluding weekends and public holidays)
Online: https://www.mizuho-tb.co.jp/daikou/index.html
Postal address: Stock Transfer Agency Department
Mizuho Trust & Banking Co., Ltd. 2-8-4, Izumi,
Suginami-ku, Tokyo 168-8507, Japan
4-1-1 Minami-honmachi, Chuo-ku, Osaka
541-0054, Japan
Tel. +81-6-6245-1111 (main switchboard)
https://www.yodoko.co.jp/english/

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.