Company Overview
The Founding Spirit that we value“To serve society with sincerity”
These words, spoken by Motomu Sekimoto, one of the two foundersof Bunka Shutter, have been passed down continuously to this day
and are valued as the origin of the BX Group. “Sincerity and service”
were words that Sekimoto frequently used. He believed that,throughout the ages and across the world, as long as humans are tolive in society, our raison d'être must be founded on respecting
others and improving ourselves. He chose “sincerity and service” ashis personal motto because he believed they contained many of theelements needed to achieve this ultimate goal.
Whether a company succeeds or fails depends on how trusted it is.

The Founding Spirit, which has been passed down to this day,reminds us that we must be sincere in all aspects of our work.
The BX Group has grown into what it is today by valuing the principle
behind the Founding Spirit, which teaches us that serving withsincerity leads to being recognized by society and achieving further
growth.
Going forward, we are committed to addressing the changing social
issues and contributing to the development of society by staying true
to our origin of “sincerity and service.”

Corporate CreedManagement Philosophy

Company Name

BUNKA SHUTTER CO., LTD.

Head Office17-3 Nishikata 1-chome, Bunkyo-ku, Tokyo TEL: 03-5844-7200 (main)

Established

April 18, 1955

Business Activities

Manufacture and sales of various shutters, house construction materials and building construction materials

Capital15,051 million yen (as of March 31, 2023)

Accounting Period

March, annually

Listing / Public Issue

Tokyo Stock Exchange Prime Market (issued in Nov. 1973)

Number of Employees

4,958 (consolidated, fiscal year ended March 31, 2023)

Nationwide Sales Offices

215 offices (332 consolidated) (as of April 1, 2023)

BX Group Businesses and Group Companies
BX SHINSEI SEIKI CO., LTD.

Sincerity

Sincerity is a connection between
hearts. A connection of true-heartedness creates trust.
Hard work is a dedication to continue

Hard work creating.
Service

Service is being of use to customers
and society through proactive action.

Takashi Tokai, the second of the two founders, paved a path tosuccess from scratch through hard work alone. The BX Group
Corporate Creed reflects the life philosophies of the two founders.

We act by always putting ourselves in the positionof our customers.
We contribute to the development of society withexcellent quality.
We place importance on positiveness and harmony
and move forward day by day.
In 2017, the word “we” was added to the Management Philosophy,
which acts as a code of conduct for the BX Group.
Toshihiko Shiozaki, the current Chairperson of Bunka Shutter, added
the “we” to strengthen the “I” message carried by the Management
Philosophy as a code of conduct. He believes that the independence
and autonomy of each and every employee shape the BX Groupbrand and become the driving force behind achieving sustainablegrowth.
This revision reflects our hope that all employees will work to shape
the BX brand by clearly envisioning the ideal state of the BX Groupand embodying the Management Philosophy as a foundation for
their actions.

Shutter-related products
business

BX OKINAWA BUNKA SHUTTER CO., LTD.
BX KENSEI CO., LTD.
BX BUNKA PANEL CO., LTD.
BX TETSUYA CO., LTD.
BX TOHOKU TETSUYA CO., LTD.

Construction materialsrelated products business

BX TR CO., LTD.
BX ASAHI KENZAI CO., LTD.
BX ROOTES CO., LTD.

7 factories (37 consolidated)

ChitoseFactory
Akita
Factory
Oyama
Factory
Kakegawa
Factory
Gochaku
Factory
Himeji
Factory
Fukuoka
Factory776-4 Kitashinano, Chitose City, Hokkaido
Prefecture170-3, Okawabata, Kawajirimachi, Akita
City, Akita Prefecture1088-1 Kamiishizuka, Oyama City, Tochigi
Prefecture
2-1, Tanyo, Kakegawa City, Shizuoka
Prefecture
187 Fukami, Gochaku, Mikunino-cho,
Himeji City, Hyogo Prefecture51-1 Hongo, Shigo-cho, Himeji City, Hyogo
Prefecture
618 Asahi, Chikuzen-cho, Asakura-gun,
Fukuoka Prefecture

BX KOUN CO., LTD.

Service business
Refurbishment business

BX NISHIYAMA TETSUMOU CO., LTD.

ISO Certification / Registration

BX KANESHIN CO., LTD.

Certification / ApplicableStandards

Organization Name

ISO/IEC 17025

Research Institute for Life-in &Environment & Disaster
Prevention

BUNKA SHUTTER SERVICE CO., LTD.
BX YUTORI FORM CO., LTD.
BX BUNKA VIETNAM CO., LTD.

Corporate Brand
International business“B” stands for Bunka Shutter and “X” stands for the unknown, infinity and the power to multiply. Depending on
what is multiplied, innovations arise which transcend conventional wisdom, and which harbor infinitely
expansive possibilities. This vivid sky blue represents the expanse of blue sky that symbolizes the beauty of the
global environment, as envisioned by the BX Group in our efforts to be a Comfortable Environment Creation
Company.

BX TENPAL CO., LTD.

Factories

Oyama Factory

BX BUNKA AUSTRALIA PTY LTD

Kakegawa Factory

BX BUNKA NEW ZEALAND LIMITED

Other businesses

BX AIWA CO., LTD.

Himeji Factory

ISO 9001

Gochaku Factory
BX SHINSEI SEIKI
BX TR

Affiliated Companies

BX ROOTESBX KANESHINBUNKA SHUTTER AKITA HANBAI CO., LTD.

Oyama Factory

BUNKA SHUTTER TAKAOKA HANBAI CO., LTD.
ECOWOOD CO., LTD.
FUJISASH CO., LTD.

ISO 14001

BX SHINSEI SEIKIBX TENPAL Saitama Factory

EUROWINDOW., JSC

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BX Group Sustainability Report 2023

2

Message from the President
Creating value with society
through the pursuit of comfortableenvironments to become asustainable growth company

fident that we were able to establish a growth model. However, we do not

tem is gradually being implemented to optimize logistics operations. We also

believe these results allow for much optimism considering the uncertain fu-

established a core system where sales, manufacturing and construction shareture faced by society. We expect the trend of rising costs to continue and are

information and work collaboratively to shorten lead times. In this way, we aim

working on an appropriate price revision. We are also making investments toto enhance operational efficiency with DX. In FY2023, the final year of the Me-

upgrade our manufacturing facilities and carrying out reforms to improve pro-dium-Term Management Plan, we hope to achieve a profit growth that ex-

ductivity.

ceeds sales growth. This will be done by focusing on creating a flexible organi-

In one such initiative, we created a new logistics system where information is shared between logistics companies and each of our factories. This sys-

zation with the motto “Speed & Action,” further promoting internal reforms
and raising performance to even greater heights.

Bringing diverse human resources together leads to technological innovation

In 2006, the BX Group established a long-term vision with a 10-year

Human resources who are united in valuing the Corporate Creed and Manage-

resources as a form of capital and aims to maximize their value to achieve cor-management outlook, in which we aim to become a Comfortable

ment Philosophy are important assets to our Group. It goes without saying

porate growth. I believe this is similar to our approach of valuing people.

Environment Solutions Group. Since then, we have made it our mission tothat a business’s foundation is strengthened by the combined force of its hu-

At the BX Group, we promote diversity, inclusion and the creation of acontinuously offer comfortable environments to society. As such, we have

man resources, made up of individual employees who share a common aspira-workplace environment where every employee can bring out their unique-tion. A culture that values positiveness and harmony, elements that are also

ness and strengths in line with their lifestyles. Bringing together human re-stated in the Management Philosophy, is steadily being passed down. Since

sources with different thoughts and values gives birth to new values and tech-

being appointed as president, I have become particularly aware of the impor-nological innovation unique to BX. This is why we promote diversity at the BXtance of employees sharing a spirit of working together in harmony while alsoGroup. We believe that bringing together human resources with various ex-

placing an importance on positiveness. Creating “a company that values peo-

pertise, skills and experiences, regardless of business domain, enhances ourple” is one of the missions that I, as president, have inherited from my prede-Group’s ability to develop solutions and becomes a driving force behind thecessors. The currently trending concept of human capital considers humancreation of new value.

continued to diligently engage in diverse manufacturing that meets theneeds of the times.
Our ideal at the BX Group is to pursue, with our products and services, anenvironment that is comfortable for both people and the earth. We aim to
help create a society where everyone can live in comfort, safety and withpeace of mind in a healthy global environment for generations to come.

Hiroyuki Ogura
Representative Director - President
and Executive President

Progress of the Medium-Term Management Plan
The Medium-Term Management Plan, which started in FY2021, is a three-yearvere due to climate change.

business plan. It focuses on taking the initiative to respond to rapidly changing

Measures against global warming and disaster prevention are pressing is-social environments and developing our businesses in a future-oriented man-sues that need to be addressed universally across the world. In order to con-ner by pursuing comfortable environments.

tribute to resolving these difficult problems as much as we can through our

In FY2022, the second year of the plan, we were faced with numerous

business activities, we will continue striving to create new values in theunexpected social changes even before the end of COVID-19. For example,

eco-friendly & disaster prevention fields. For example, we will work on improv-

there was an energy shortage and a rise in prices for raw materials and fuel as

ing our products’ heat shielding and thermal insulation properties as well asa result of the conflict between Russia and Ukraine. We also saw infrastructure

water barrier performance.

and bank failures. It was a year in which we were forced to swiftly adapt to

In our international business, BX Bunka Australia concluded an M&A andvarious challenges. Rising raw material prices and the worldwide shortage ofestablished a structure that allows us to expand products beyond the residen-

semiconductors, in particular, greatly affected our supply chain and taught us

tial house market and into the industrial and commercial facility markets. The

that we need to increase its resilience even further.

target stated in the Medium-Term Management Plan is for international busi-

However, a look back on the business environment shows that the sales ofshutters and doors, our core businesses, rose thanks to favorable market con-ness to make up 10% of the sales ratio. In Australia, which has particular potential for growth, we hope to increase revenue even more through synergy.

Achieving sustainability in the BX Group and society
Measures to improve society’s sustainability also help our Group avoid busi-

only improves the working environment during the adhesion, but also reduces

ness risks and grow into a sustainable company. We have set ESG targets in our

the work time and enables the steel to be more lightweight. We worked with

Medium-Term Management Plan. By stepping up engagement in these initia-

the Japan Sash Manufacturers Association and dedicated our efforts to add

tives, we hope to identify future or potential risks and opportunities and im-

this adhesive method to the Standard Specifications for Public Building Con-

prove business resilience.

struction overseen by the Ministry of Land, Infrastructure, Transport and Tour-The BX Group Environmental Vision “Blue neXpand 2050: Expanding theism. Furthermore, since this method is capable of resolving the issues faced byBlue Sky into the Future” lays out our ideal future as a Comfortable Environ-the steel door industry as a whole, we are working to spread it across the in-ment Solutions Group and the priority areas that we must focus on to achieve

dustry. We visit small- and medium-sized door manufacturers across Japan tothis vision. Accordingly, we are engaged in various initiatives, such as decar-

teach and provide guidance on the adhesive method.

bonizing and eliminating waste to achieve net zero emissions, and protecting
natural ecosystems.

Our aim as a company is also to increase profit by promoting the use ofthis method, which is capable of realizing comfortable environments in vari-Particularly in regards to climate change, we are focusing on efforts toous situations. For example, it benefits not only the customers who use our

prevent global warming and reduce natural disaster risks by providing oursteel doors, but also manufacturers, transportation employees and even the

products and services, and also through our business activities and manufac-

global environment. This is an example of creating value together with society,turing process. In FY2022, for example, we released SGD, an eco-friendly steel

stemming from our pursuit of comfortable environments. Going forward, wedoor that is assembled using an adhesive method. The adhesive method is an

will continue to engage in creating value with society and work toward be-environmentally friendly approach that also resolves many other issues. It not

coming a sustainable growth company.

To our stakeholders
When I visit our offices around the country and speak to the employees, I oftenGroup together with all our employees who share a common aspiration. Going

ditions. This was due to an increase in large-scale properties, such as logistics

The consolidated business performance in FY2022 showed revenue

quote the teachings of karma and say, “Your present deeds determine the fu-

forward, we will continue to work on achieving sustainable growth and en-

warehouses and manufacturing factories, as well as expanded investments ingrowth and recorded the highest-ever net sales for a second consecutive

ture.” I believe synergy, which surpasses even the combined force of humanhancing our corporate value. By doing so, we hope to meet the expectations

urban redevelopment projects. Among our focus businesses, the eco & disas-term. We sorted businesses into two categories, profit base and growth base,resources, is born from the initiative-taking actions of employees who workof our stakeholders, who endorse our mission of creating an environment thatter prevention business is growing solidly as customers engage in decarbon-

following the basic policy of constructing a growth strategy as stated in thewith future-oriented minds and think of the Group’s mission and their own

is comfortable for people and the earth.

ization efforts and prepare for natural disasters, which are growing more se-previous Medium-Term Management Plan. This was effective and we feel con-futures as one and the same. It is my intent to strive toward the future of the BX

3

BX Group Sustainability Report 2023

4

Value Creation Process
An environment comfortablefor people and the earth
Sustainable society

The BX Group is engaged in creating a value creation process that is capable of providing new values ahead of the times.
We do so by leveraging our strengths in the technological, construction and R&D fields that we have cultivated since ourfounding, and by creating synergy through collaborations between Group companies. We strive to further enhance ourcorporate value by contributing to a sustainable society with our original growth model, BX-CSV, which aims to create
values that are shared with society.

Input
External environment

FY2022 working capital
P7

Economic impact
of COVID-19

Our
Medium-Term
Management Plan Vision Open the Way to the Future -Financial capitalBusiness

OutputTo be a Comfortable Environment Solutions Group
Business growthPursuit ofcomfortable environments

Focus
businesses

New business challenges

Life-In

Growing ESG awarenessIntellectual capital

We take the market-in
approach (providing
products and services thatmeet the needs of themarket) to greater heights
and provide products andservices that customers needby taking all aspects of theirlifestyles into consideration.

Social issues
to be addressed

We will continuously contributeto society as a whole bybuilding lasting relationships oftrust with our customers
through the provision of safe,
reliable and enduring products
and services.

Core
businesses

Eco & disaster prevention
business
Maintenance businessLong-life business
International businessSpecial construction
materials business

Shutter business
Door businessPartition business
Exterior business

Aging infrastructure

Strengthening profitability

Human capital
Climate change

E

Technologicalcapability

Destruction of ecosystems

Declining birthrate

Community revitalization

5

Construction
capability

Togetherwith Growth

Population decline
and aging population

Business foundation

Social capital

Togetherwith the Earth

R&D
capability

CSR Charter

HR capability

Togetherwith Society
Togetherwith Coworkers

Founding Spirit
Corporate Creed / Management Philosophy
Corporate Culture

Creation of shared values
between the BX Groupand society

Ratio

Medium-Term Management Plan

Universal design

FY2020 net sales

ESG-oriented
management
P13-33

Together with Growth
Sustainable economic growth
Strengthening of governanceThorough complianceCorebusinesses
59.7%

Ratio

Focus
businesses
29.8%

FY2023 net sales

Climate change mitigation
Adaptation to climate change

P8

31.2%

57.0%

Target 200 billion yen

Sustainable protection of the global environment

Resource depletion

62.2 billion yen

113.4 billion yen

BX-CSV

Eco-friendly

Problem-solving approach
Avoiding business risks

Together with the Earth

Strengths bornfrom Group synergy

Focus
businesses

173.1 billion yen

Life-Long Partnership

Natural capitalCorebusinesses

P9

ESG-oriented strategy
Urban frailty

FY2022 net sales

199.1 billion yen

P10

Global instability due to
conflicts, invasions, etc.

Economic and other formsof value provided
by output to create asustainable society

P11-12

Acceleration of DX

Manufacturing capital

OutcomeG

Focus
businesses
34.3%

Core
businesses
56.5%
Ratio

S

Together with Society

Creation of a sustainable society
Co-creation withthe community
Together with Coworkers

Environmental impact

SecurityLong life

P22

CO2 emissions (Scope 1 + 2)

Protection of the global environment

8.7% reduction from FY2019

Coexistence with local communities
Employee empathy

Pursuit of coworker happiness
Human rights initiatives
Human capital investments
Work-style reform

Disaster prevention

Waste generation

Return to shareholders

15.3% reduction

from previous fiscal year

BX Group Sustainability Report 2023

6

Working CapitalStrengths of the BX GroupOur business of pursuing comfortable environments converts the various forms of capital that we have accumulated since

The BX Group continues to take on the challenge of creating new value by leveraging our strengths in the technological,

our founding into values that help create a sustainable society. By continuing to maintain and reinforce our capital, we will

construction and R&D fields that we have cultivated since our founding.

enhance society’s sustainability and the growth of the BX Group.

VOICE

Technological
Capability

Financial capital● ROE

We support sustainable growth with a highly sound financial
foundation that focuses on capital cost and balance sheet management.

9.6％
82.6 billion yen

We promote a management strategy that places an emphasis on investments andshareholder returns based on policies for an optimal capital structure. We secure astable profit from core businesses, mainly shutters and doors, and continuously
make investments to support growth strategies.

● Equity● Free cash flow

5,946 million yen

Related information ▶ p. 12 Financial Highlights

Manufacturing
capital

We create comfortable environments through diverse manufacturingwith a life-in approach that takes all lifestyle aspects into consideration.

● Manufacturing network

26 domestic sites,
11 global sites

We base our business activities on the concepts of “life-in,” which takes themarket-in approach to greater heights, and “life-long partnership,” which aims tobuild lasting relationships of trust with our customers. In this way, we create
comfortable environments with manufacturing practices that meet the needs ofthe times and adapt to changes in the environment.

● Capital expenditures

4,729 million yen

Intellectual capital

Related information ▶ p. 11 Medium-Term Management Plan

2,441 million yen● Published patent applications 80● Acquisition of registered rights 97● R&D costs

The technological capabilities the Group has cultivated over morethan 60 years since our establishment form the foundation forvalue-added manufacturing.
The technological and R&D capabilities proudly held by the BX Group are corecompetencies that support the construction of our growth model, BX-CSV, whichaims to create values that are shared with society.
Related information ▶ p. 8 Technological Capabilities

Natural capital● BX Group energy use

We are engaged in efforts to achieve zero environmental impact through efficientenergy use and decarbonization. Not only that, we also strive to create positive
value for the natural environment by pursuing comfortable environments.

12,694 kl● Water use 143,869 m3

Takumi Matsubara● Improving construction skills We formulated the Design and Construction

Principles and Actions to strengthen the foundation of our construction
capabilities. We are also striving to expand and improve our workforce so that
we can in-source construction without always relying on out-sourcing. To thisend, over 30 training programs are held annually in two locations (in the Eastand West of Japan) that aim to improve and diversify the skills of our workers.
Shutter skills training● Improving construction efficiency We digitalized the construction manuals, which enables us to swiftly adapt

to changes in construction methods when products are improved.

Related information ▶ p. 22 Overall Environmental Impact

R&D Capability

Human capital● No. of Group employees

4,958● Percentage of mid-career hires

81.6％● Percentage of newly graduatedfemale hires 27.1％

Social capital● No. of Group companies● No. of major suppliers

approx. 160

Diverse human resources who value the BX Group’s philosophy andmission work to refine the BX brand by leveraging theirsolutions-developing capabilities.
We strive to maximize the value of our human resources and sustainably enhance
our corporate value by refining our ability to develop solutions that can swiftly
respond to the rapidly changing social environment.
Related information ▶ p. 25-26 Human Capital

20

We are supported by community-rooted networks and highly trusted
supply chains.
We strive to maximize Group synergy by actively undertaking M&As. Furthermore,
we communicate regularly with our suppliers and value relationships of trust tobuild sound supply chains.
Related information ▶ p. 18 Supply Chain Management
p. 32 CSR Procurement Guidelines

7

We pursued
convenience anddeveloped aproprietary soundabsorbing structure. In
this way, we were able
to develop a productwith the same lightness
as regular steel doors, a pleasing design andhigh sound-absorbing properties withoutchanging the door’s thickness. The wideranging product lineup is able to meet diverse
needs, such as adding a small window or
making the door barrier-free.

Design and Construction Planning Department

Outstanding construction capabilities are essential to maximizing the value of BXGroup products once they are in the hands of our customers. We strive to createarchitectural spaces of value by improving three areas: construction skills,
construction quality and construction efficiency.

system. Only qualified workers who have received specialized training are
permitted to construct certain products, which ensures stable construction
quality.

Assistant Manager, Product Development
Department #4, Product Development Division

VOICE

Construction
Capability● Improving construction quality We established an original qualification

We strive to achieve zero environmental impact and positive value
creation through efficient energy use.

Hiroyuki Takigawa

The BX Group, from the time of its founding, has expanded into
new markets by developing problem-solving technologies. We areproud of our technological strength, which has been further
refined by continuously taking on the challenge of creating values
that meet the needs of the changing times. We take part incollaborative industry-government-academia joint research andprojects to enhance our technological capabilities even further toswiftly provide society with valuable solutions unique to the BXGroup.
High Sound Insulation Steel DoorIn FY2022, the High Sound Insulation Steel Door, which has
outstanding sound-absorbing properties, received the Lifestyleand Environmental Solutions-Related Parts Award at the Super Monodzukuri Parts Grand Award 2022. The door
ensures greater sound-absorbing properties compared to conventional products in the same category. It isnevertheless light to open and close and has a pleasing design. Our technologies have been utilized to meet therising demand for sound-absorbing products in recent years, out of consideration for noise in spaces such as
personal satellite offices or small conference rooms.

The Research Institute for Life-in &Environment & Disaster Prevention
supports the technological capabilitiesof the BX Group as a comprehensive
testing and research facility. It conducts
various types of performance tests,
fundamental technology research,
product evaluations and safety
verifications in addition to establishing
Research Institute for Life-in & Environment
Three-dimensional& Disaster Prevention
earthquake vibration
evaluation standards.
simulator
Furthermore, the institute has received
the internationally recognized ISO/IEC 17025 certification. As such, we conduct tests entrusted to us by not onlyGroup companies but also external organizations to provide objective evaluations as a third-party institute.
In addition, we are committed to ensuring that BX Group products fully demonstrate their functions even afterlarge-scale earthquakes and can be used by our customers safely and with peace of mind. To this end, we haveinstalled a three-dimensional earthquake vibration simulator to test earthquake resistance and manufacture highly
resistant construction materials.

In addition to
expanding training
programs forconstruction workers,
we are also putting
efforts into programsfor BX Group
employees in the fields
of design, construction and construction
management who lack experience. Our goal is
to improve construction capabilities as a whole
by providing a wide range of education,
including product installation andconstruction-related electrical knowledge.

VOICE
Ryota Yamazaki

Chief, Research Institute for Life-in & Environment& Disaster Prevention

In addition to thethree-dimensional
earthquake simulator,
we have also installed aflying object collision
simulator to test our
products’ capabilities
of protecting the insideof buildings from flying objects, such as during
major typhoons or due to sudden gusts ofwind. In this way, we are working to improve
evaluations by testing products under fitting
circumstances. Going forward, we will continue
striving to provide customers with even greater
safety and peace of mind by conducting
various product evaluations.
BX Group Sustainability Report 2023

8

Business Overview

Business Overview

Core Businesses

Focus Businesses

Our core businesses of manufacturing and selling shutters and doors havesupported the growth of the BX Group since its establishment. Throughout
the years, we have developed products that meet the changing needs ofsociety by putting ourselves in the position of consumers. This includes
developing products with properties such as fire and crime prevention, wind
and water protection, universal design and IoT integration. In this way, we
support people in their daily lives and businesses.

Our focus businesses are comprised of the eco & disaster prevention
business, which contributes to mitigating environmental impact and adapting
to climate change-related disasters; the maintenance business, which aims
to prevent accidents and breakdowns in advance, and ensure safe andreliable use of our products; the long-life business, which works to increaseurban resilience and adapt to changing living environments; and theinternational business.

Business Overview
As socioeconomic activities return to normal, private-sector capital investments inthe construction and housing industries are slowly but surely on the rise, anddemand for construction remains firm. However, prices for energy and raw

Business Overview
Net sales ratio: Core businesses 57.0%

going forward. These include, for example, products that aim to provide measures

Other 11.8%

Shutters

future outlook is still uncertain. Investments in residential housing remain on theand rising mortgage interest rates. Nevertheless, we expect construction demand

29.3%
Focus businesses 31.2%

to continue for non-residential buildings, stemming from factors such as R&D andDoors

IT investments backed by AI and IoT integration, urban redevelopment mainly in

20.6%

the Tokyo metropolitan area, and large-scale logistics warehouses expanding withthe growth of e-commerce.

Shutter businessNet sales(Unit: 1 billion yen)

MediumTerm Plan

Performance

58.3
53.3

53.8

53.3

52.8

2021

ʼ22

ʼ23

Door businessMediumTerm Plan

Net sales(Unit: 1 billion yen)

Performance

42.7
41.2

41.4

41.0

39.6

2021

ʼ22

Exterior 3.6%

Partitions 3.5%

Medium-Term Strategy Heavyweight shutters: Increase orders, including for urban redevelopment properties,
with a focus on large logistics warehouses.
Lightweight shutters: Expand sales of high-value-added products, such as by enhancing
operability and open/close speeds.
Window shutters: Promote maintenance and electrification of existing window shutters.
Progress
Net sales were 58.3 billion yen (9.4% above
plan target), driven by expanded sales ofheavyweight shutters for factories, large
logistics warehouses and large commercial
facilities.

Outlook
We will work to increase earnings by expanding sales of shutters forfactories, warehouses and redevelopment properties, which we expect
to continue performing well, and by expanding sales of IoT-compatible
electric shutters and other high-value-added products.

Medium-Term Strategy Strive to increase orders for building doors, particularly for redevelopment properties thatare performing strongly in urban areas, and improve productivity by maximizing synergy
with other Group companies.
Progress
Net sales were 41.0 billion yen (1.0% underplan target). Expanded sales of steel doors
for large commercial facilities drove sales,
but did not reach the Medium-Term Plan
target.

Outlook
We will increase earnings by actively promoting more widespread salesof the eco-friendly steel door, SGD, which reduces environmental impact
and reforms work styles through its adhesive method and lightweightproperties.

increasingly severe typhoons as a result of climate change; and against quake vibrations
in case of major earthquakes. Furthermore, the maintenance business is expected toremain strong due to rising demand for eco-friendly products as well as eco-friendly

MediumTerm Plan

6.6

8.4

6.9

Performance

9.2

6.7

2021

9

ʼ22

ʼ23

Progress
Net sales were 6.9 billion yen (17.9% underplan target). Expanded sales of toilet booths
and school partitions that can be used fordiverse purposes drove sales, but did notreach the Medium-Term Plan target.

Outlook
We will strive to increase orders by continuing to focus on exploring themarket for existing properties, particularly schools, which require
western-style and universal design toilet booths as well as partitions thatare earthquake-proof and have longer service life.

Long life(efforts to decarbonize houses and buildings as measures against global warming). We
which stagnated due to COVID-19, but also in the residential market, where consumers
have needs associated with using spaces in ways that fit their new lifestyles.

Eco & disaster prevention businessNet sales(Unit: 1 billion yen)

MediumTerm Plan

Performance

6.3

6.1

8.2

6.8

7.4

2021

ʼ22

MediumTerm Plan

29.5

31.0

29.8

29.6

2021

Performance

31.3

ʼ22

5.7

7.4

Performance

6.4

8.3

ʼ23

International businessNet sales(Unit: 1 billion yen)

MediumTerm Plan

18.1

Performance

20.0

13.5
12.5

2021

13.3

ʼ22

15.7%
Eco & disasterprevention 3.1%

Progress
Net sales were 6.1 billion yen (17.6% under plantarget). Orders decreased in the water-sealing
business, which decreased net sales in the disasterprevention business.

Outlook
Demand is rising for products such as awnings to shut out
heat and water barrier products to prevent flooding during
torrential rains. Against this backdrop, we will continue
expanding sales in the eco & disaster prevention business in
response to climate change risks.

Medium-Term Strategy Improve and enhance maintenance inspections and repair services through collaborations
within the BX Group.
Progress
Net sales were 31.3 billion yen (5.0% above plantarget), driven by regular maintenance contracts,
including statutory inspections, and emergency
repair services.

Outlook
We will acquire new customers by boosting collaboration
among BX Group companies to increase orders for statutory
inspections of fire prevention equipment mandated by the
Building Standards Law.

Medium-Term Strategy Strengthen house remodeling and building renovation proposals.

MediumTerm Plan

ʼ22

57.0%

ʼ23

Long-life businessNet sales(Unit: 1 billion yen)Core businesses

Medium-Term Strategy Promote and expand eco-friendly and disaster prevention products that can mitigate andadapt to climate change.

ʼ23

Maintenance businessNet sales(Unit: 1 billion yen)

6.3

Medium-Term Strategy Promote proposals of high-value-added products that pursue safety and peace of mind,
such as partitions for schools additionally equipped with anti-seismic features.

9.1%

Maintenanceexpect the long-life business to remain strong not only in the non-residential market,

Other 11.8%

International

3.2%

2021

Net sales(Unit: 1 billion yen)

0.1%

businesses and urban redevelopment projects facilitated by the spread of ZEH and ZEB

ʼ23Partition businessNet sales ratio: Focus businesses 31.2%
Special construction materials

against flooding during concentrated torrential rains and strong winds during

materials, including steel, are rising, and supply chains are in disorder. As such, thesame level as last year due to concerns about persistently high construction costs

Demand for disaster prevention and mitigation products is expected to continue rising

Progress
Net sales were 6.4 billion yen (13.5% under plan target).
Sales were driven by both the house remodelingbusiness, in which commodity delivery delays wereresolved, and the building renovation business, whichshowed strong profitability. Nevertheless, the MediumTerm Plan target was not reached.

Outlook
We will strengthen the house remodeling business byutilizing the government’s subsidy program for making
houses more energy efficient. We will also bolster thebuilding renovation business using keywords such as“earthquake resistance” and “water sealing.”

Medium-Term Strategy Strengthen business foundations and promote business expansions to reach theinternational business net sales ratio target of 10%.
Progress
OutlookNet sales were 18.1 billion yen (36.1% above plan
BX Bunka New Zealand, together with Doorworks and Sprint
target), driven by business in Australia, where
Roller Shutters, which newly joined the Group in Australia,
industrial shutter manufacturer Max Door joined
will expand the residential garage door and industrial/
the Group. The international business net salescommercial shutter businesses in the Oceania region. At theratio rose 1.7% to reach 9.1%.
same time, we will continue to work on expanding sales inVietnam’s local market.

ʼ23

BX Group Sustainability Report 2023

10

Medium-Term Management Plan (2021 - 2023)

Financial Highlights

The BX Group mission is to contribute to the development of society through diverse manufacturing and services, despitechanging times and environments, and to deliver happiness to people by providing safety and security.
We will take the initiative to respond to rapidly changing social environments, develop our businesses in a future-oriented

Net sales / Gross profit margin■ Net sales

manner and pursue comfortable environments.
(Unit: 1 million yen)
200,000

I. Advance management strategies based on policies for optimal capital structure, with a focus on capital
cost and balance sheet management.
FY2022

performance

performance

182.3 billion yen

WACC

Target 7.3%

199.1 billion yen

200.0 billion yen

9.1 billion yen

9.6 billion yen

14.6 billion yen

Target 8.5%

Operating profit margin

5.0%

4.9%

7.3%

Cost ofshareholders’equityReturn on equity (ROE)

8.0%

9.6%

11.5%

Return on invested capital(ROIC)

5.2%

6.8%

10.5%

-2.0 billion yen-0.5 billion yen

3.0 billion yen

−2.1%

−0.5%

3.2%

0.19

0.18

0.20 or less

48.7%

46.6%

51.9%

Operating profit

BxVA
BxVA spread
DE ratio
Equity-to-asset ratio

Cost of debt

Target 0.7%

Plan

Expansion of
focus businesses

100,000● We plan to repurchase 10 billion yen +α worth of shares over the three-year

Medium-Term Management Plan. (“α” is when M&As do not proceed asplanned due to various circumstances, opportunities, etc.)

Plan

Plan

25.7

27.0

3.2%

25.1

25.8

20

13.4%

Shutter-related
products business

39.6%

10

0

0
2018

2019

2020

2021

2022

Construction
materials-related
products business 40.4%

Operating profit margin

12,000● Share buybacks

FY2021 5.0 billion yen
FY2022 7.0 billion yen● System-related investments to renew production facilities andreform work styles
FY2021 3.7 billion yen
FY2022 4.7 billion yen

9,000

6,000

Profit attributable to owners of parent / Return on equity (ROE)■ Operating profit(Unit: 1 million yen)

9,801

5.6

9,485

5.1

10,514

9,685

9,105

6.1

4.9

5.0

3,000

(Unit: 1 million yen)
10,000

7.5

7,500

2018

2019

2020

5.0

5,000

2.5

2,500

Return on equity (ROE)

7,294

7,899
6,706

6,603

8.7

10.4

8.0

15.0

9.6
5.0

0.0

0
(Fiscal year)

(%)
20.0

10.0
10.1

2022

2021

■ Profit attributable to owners of parent

8,399

0.0

0
(Fiscal year)

(%)
10.0

2018

2019

2020

2021

2022

Performance● We plan to allocate 15.0 billion yen to

M&As during the three-year MediumTerm Management Plan, particularly ingrowth fields, where we can expect
business expansions and synergy.

● BX Bunka New Zealand Limited was established in January

2023. In May of the same year, it acquired all the issued sharesof the Windsor Group, a New Zealand-based company that
manufactures and sells garage doors.
● In April 2023, BX Bunka Australia acquired all the issued sharesof Doorworks Australia Pty Ltd, an Australia-based residential
garage door manufacturer.

Equity / Equity-to-asset ratio

75,000shares of Sprint Roller Shutters Pty Ltd, an Australia-based
company that manufactures and sells shutters for industrial
and commercial facilities.

50,000

FY2020
performance

29.8%

FY2022 performance

Focus businesses

31.2%(62.2 billion yen)

Dividend per share / Dividend payout ratio

Equity-to-asset ratio(%)

100,000● In September 2023, BX Bunka Australia acquired all the issued

Net sales ratio■ Equity(Unit: 1 million yen)

74,01976,99684,30382,35382,602■ Dividend per share(Unit: 1 yen)

100.0

60

75.0

45

50.0

30

Dividend payout ratio

40.00

WINDSOR DOORS factory exterior

11

26.4

Operating profit / Operating profit margin

Performanceof 12.0 billion yen over the three-year
Medium-Term Management Plan to
improve productivity by advancing DX
and saving manpower.

30

50,000

Performance● The target dividend payout ratio is 35%.

● We plan to make capital investments

Refurbishment business* BxVA stands for “BX value-added,”
representing the amount of value added relative toinvested capital. The planned value is calculated
assuming an effective corporate tax rate of 30.62%.

III. Pursue higher productivity in core businesses and expand the scale of focus businesses to achieve a net
sales ratio exceeding 34.0%.
Investment plan
to increase
productivity

Other businesses 3.4%

40

(Fiscal year)

II. Significantly strengthen shareholder returns, including share buybacks.
Shareholder
Return Policy

182,313173,143(%)

Service business

FY2023

Net sales

184,239

199,179

150,000

Capital cost

Management indicators of the Medium-Term Management Plan
FY2021

174,661

Net sales composition by segment

Gross profit margin

25,000

45.7

46.4

50.1

48.7

46.6
25.0

15

25.00
24.6

40.00

42.00

(%)
80

60

40

25.00
27.1

34.1

40.8

34.5

20

Core businesses

57.0% (113.4 billion yen)
Housing materials
and other businesses
11.8% (23.5 billion yen)

0.0

0(Fiscal year)

2018

2019

2020

2021

2022

0

0
(Fiscal year)

2018

2019

2020

2021

2022

BX Group Sustainability Report 2023

12

Sustainability Management
Our approach to sustainability

Four CSR Charter Themes and SDGs

The BX Group has formulated the CSR Charter, and the CSR Activity Policy to put it into practice, based on the Corporate

As we work to achieve our vision of being a Comfortable Environment Solutions Group, the BX Group is committed toCreed and Management Philosophy. By encouraging each and every employee to value and willingly follow theseproviding current and future generations with the values needed to lead safe, secure and comfortable lives in a healthy

guidelines, we strive to be a company that is trusted by society.

global environment. Our vision for society is in harmony with the SDGs’ objective of creating a sustainable society.

We promote activities that contribute to enhancing corporate value across the entire Group in accordance with the CSR

As such, we have identified and are addressing important issues related to the four pillars of the CSR Charter: sustainable

Charter in order to achieve the BX Group vision of becoming a Comfortable Environment Solutions Group and realizing

economic growth, creation of a sustainable society, sustainable protection of the global environment, and pursuit ofsustainability across both our Group and society.

coworker happiness.

Four CSR Charter Materialities

We pursue the growth of the BX Groupby providing products and services thatsatisfy our customers and earn their trust
through fair and honest businessactivities, based on our mission ofcreating comfortable environments.
Pursuit of customer satisfaction
Growth and development of
the Group● Integrity in business
management●●

Togetherwith Society

Togetherwith the Earth

Togetherwith Coworkers

We contribute to the development ofsociety as a good corporate citizen byparticipating in and supporting activities
that enrich people’s hearts and minds.

We will contribute to the protection of
the global environment by promoting
management that takes people, society
and the environment into considerationin order to realize comfortableenvironments.

We respect the individuality andcreativity of our coworkers and aim forthe satisfaction and growth of each andevery one of them.

Contributing to society as acorporate citizen● Humanitarian contributions tosociety● Support for cultural activities●

Social contribution activities
Support for disaster-stricken
areas
Cooperation with local
communities and otherorganizations

Corporate governanceDialogue with stakeholders
Disclosure of information

Business management with
reduced environmental impact● Development of eco-friendly
technologies and products● Voluntary environmental
protection activities
Decarbonization
Reduction of environmental
impactEnvironmental protection
activities

Respect for human rights
Job creation● Increased satisfaction●●

Promotion of human rights due
diligence
Promotion of diversity andinclusion
Work-style reform
Promotion of employee health

We have established the Sustainability Committee with an Executive Officer as Chairperson, the CSR Management
Department Manager as Vice Chairperson, and the Chairpersons of the four CSR Charter committees as Members. The
Sustainability Committee is an organization that promotes general activities based on the four pillars of the CSR Charter
across the entire Group. Its role is to determine the themes, directionality and details of individual measures to beundertaken. Each of the CSR Charter committees oversees and regularly reports to the Sustainability Committee on
activities related to compliance, local communities, social contribution, global environment, human rights, labor, etc.
Board of Directors
Meeting of Managing Operating Officers
Chairperson: Executive Officer (Director - Managing Operating Officer)

Sustainability Committee

Members: Chairpersons of the four CSR Charter committees

Together withSociety Committee

Together with the
Earth Committee

Together with
Coworkers Committee

Together with
GrowthDialogue with diverse stakeholders
Response to climate change and disasterrisks through business● Strengthening of technological andconstruction capabilities● Promotion of corporate governance● Thorough compliance●●E

Together with the
Earth

S

Together withSociety

Decarbonization activities
Supply chain management● Promotion of resource recycling● Waste reduction● Biodiversity protection●

Co-creation with thecommunity● Cooperation with local
governments and otherorganizations● Promotion of local disasterprevention and support fordisaster-stricken areas● Support for cultural activities●●

S

Together with
Coworkers

Promotion of human rights due diligence
Promotion of diversity and inclusion● Human resource development● Promotion of employee health● Work-style reform●●

Vice Chairperson: CSR Management Department Manager
Secretariat: CSR Management Department

Together with
Growth CommitteeG●

CSR Promotion System

CSR Promotion System

Sustainable economic growth

Sustainable protection of the global environment

Togetherwith Growth

Creation of a sustainable society

CSR Charter and Activity Policy

Climate Change Team
Human Capital Disclosure
Working GroupCSR Management Department
Group Companies / All Offices

13

Pursuit of coworker happiness

BX Group Sustainability Report 2023

14

Four CSR Charter Materialities and KPIs

At the BX Group, we have established material issues that we must focus on from the perspectives of both business andsociety. These issues were identified by organizing the relationships between our CSR Charter and the SDGs, which arecommon goals of the international community.
mark can be found on the CSR web page.

Further details and related information on items with the(KPI figures are non-consolidated unless specified “consolidated” or “BX Group”)

Ｅ

CSR Charter

Together with the Earth

ESG

Together with Society
Together with Growth

Together with Coworkers

15

Initiative Themes

Key Performance Indicators (KPI)

FY2022 Initiative Performances

Page

zReduction of CO2 emissions
zConversion to renewable energy
zDevelopment and provision of environmental
solutionszScope 1 + 2: 46.2% reduction from FY2019 (2030), BX GroupzScope 3 (procurement / logistics): 27.5% reduction from FY2019 (2030), BX
Group

zScope 1 + 2: 8.7% reduction (from FY2019)
zScope 3 (procurement / logistics): 8.1% increase (from FY2019)P. 21-22

Supply chain management

zLogistics system improvement

zComplete transition to new logistics system at 7 BX factories (FY2024)

zNew logistics system introduced at Akita Factory (introduction completed at
Oyama Factory, Kakegawa Factory)

P. 18

Promotion of resource recycling

zPromotion of green procurement

zEndorsement of Green Procurement Guidelines: 100% of new supplierszOffice supplies: 100% of purchases are of products compliant with the Green
Purchasing Law (Head Office building)zThe BX Green Purchasing Guidelines and Sustainability Report 2022 sent to116 business partners
zTanomail, a BX exclusive web page to order eco-friendly products waslaunched
zUse of 100% recycled copy paper in Head Office building

P. 18

Waste reduction

zDevelopment as a net zero emissions GroupzReduction of 5% (year on year) in waste emissions and disposal costs, BX GroupzNet zero emissions achieved by 100% of domestic manufacturing sites(FY2026), BX GroupzWaste emissions (landfill and incineration) reduced by 15.3% (year on year)
zWaste disposal costs (landfill and incineration) reduced by 5.5% (year on
year)
zNet zero emissions achieved by BX KENSEI (achieved by 17/26 sites)

P. 22

Biodiversity protection

zVoluntary environmental protection activities
zCultivation of employee awarenesszE-learning courses taken by 100% of employees to standardize knowledge, BX
GroupzEnvironmental e-learning course taken by 100% of employees
zColumns published on biodiversity and environmental topics
zParticipated in the 2023 Junior Eco-Clubs’ All-Japan Festival

Co-creation with the community

zParticipation in community activities

zEmployee participation rate of 50% in social contribution activities (2026), BX
GroupzParticipation in community activities or engagement in community
interactions in various areas, BX GroupzLeave system introduced for volunteer work
zColumn published on volunteeringzVarious community-rooted activities

Cooperation with local governments
and other organizations

zResolving issues by collaborating with variousorganizations

zCollaborative problem-solving activities with nonprofit organizations (numberof organizations):
30 annually, BX GroupzCollaborative activities with various organizations such as facilities for
persons with disabilities (35 organizations)zAided forcible entry firefighting training by providing components andconducting lectures for free (Bunka Shutter Service)
zOrganized food drives (Gochaku Factory, Himeji Factory, BX Okinawa Bunka
Shutter)

Promotion of local disaster prevention
and support for disaster-stricken areas

zSupport for areas affected by the Great East
Japan Earthquake
zCooperation in community disaster prevention
effortszActive support for disaster-stricken areas, BX GroupzSupported and helped organize the Happy Disc Project in Watari Town
zThe Hongo Fire Department’s BX Building Division cooperated with thedisaster prevention policies of the Tokyo Metropolitan Government andBunkyo City (17 members, including employees of the BX Building)zAgreement on Mutual Cooperation in the Event of a Disaster with Bunkyo
City

Support for cultural activities

Support for cultural activities

zPromotion of social contribution activities
through sports

zSocial contribution activities by Buzz Bullets employee-athletes, at least once ayear

zHeld frisbee classes (Bunkyo City, etc.)
zDispatched instructors to hold dodgebee classes in welfare facilities for
persons with disabilities
zSupported community soccer team activities (Tokyo United FC, etc.)

Respect for human rights

Promotion of human rights due
diligencezRespect for human rights and prevention ofhuman rights violations

zImplementation of human rights due diligence (2023), BX GroupzFormulated and published the Bunka Shutter Group Human Rights Policy
zEndorsed “My Declaration of Human Rights” led by the Ministry of JusticezFormulated the Human Rights Due Diligence Performance Guidelines
zConducted harassment training (962 BX Group managers)

Promotion of diversity and inclusion

zCreation of an environment in which diverse
human resources can play an active role
zPromotion of women’s empowerment

zFormulation of Diversity and Inclusion Policy (2023), BX GroupzPercentage of female managers: 10% (2028)
zPercentage of female employees recruited upon graduation: 30% (2025)
zEmployment rate of persons with disabilities hired: 2.5% (2025)
zImplementation of engagement surveys (2023)

zFormulated the Diversity and Inclusion PolicyzPercentage of female managers: 2.2%
zPercentage of female employees recruited upon graduation: 27.1%
zEmployment rate of persons with disabilities: 2.15%

P. 26

Human resource development

zCareer development initiatives
zStrengthening and expansion of humanresource development

zNumber of female employees taking Career Design Training: 60 (2023)
zNumber of IT literacy distance learning students: 100 (2023)

zNumber of female employees taking Career Design Training: 39
zNumber of IT literacy distance learning students: 139

P. 26

Promotion of employee healthzEmployee health initiatives

zRegular health checkup exam rate: 100% (2023)
zStress check exam rate: 90% (2023)
zEstablishment of a health consultation office (2023), BX GroupzRegular health checkup exam rate: 99.8% / Re-examination checkup rate:
22.2%
zStress check exam rate: 83.4%

Business management with
reduced environmental impact
Development of eco-friendly
technologies and products

protection activities

Ｇ

SDGs
contributed to

Decarbonization activities

Voluntary environmental

Ｓ

Materialities (Important Issues)

Contributing to society as acorporate citizen

Humanitarian contributions tosociety

Job creation

Growth and development of
the Group

Integrity in business
management

P. 23

P. 23

P. 23

P. 24

Work-style reformzSupporting diverse work styles and increasing
employee satisfaction

zAnnual paid leave usage rate: 70% (2023)
zAverage monthly overtime hours: 26 hours (2023)
zRate of male childcare leave acquisition: 20% / Rate of female childcare leaveacquisition: 100% (2023)

zAnnual paid leave usage rate: 64.5%
zAverage monthly overtime hours: 30.3 hours
zImproved part-time employee benefits / changed employment statuses of
temporary workers with disabilities
zRate of male childcare leave acquisition: 22.9%
zFirst 5 days of childcare leave (excluding male maternity leave) became paidleave
zPeriod of pre-childbirth unpaid leave available was extended from 6 to 8
weeks prior to birth

Dialogue with diverse stakeholders

zExpansion of IR and SR meetingszIncrease of 100% year on yearzIR and SR meetings held: 143% of previous year

Response to climate change anddisaster risks through businesszSales expansion for the eco & disaster prevention
businesszNet sales of 7.3 billion yen (FYE March 31, 2024), consolidated

zNet sales of 6.1 billion yen (FYE March 31, 2023), consolidated
zReleased electric blind shutter Mado Master SoralzReleased electricity supply system Plug-In Power Unit

Strengthening of technological andconstruction capabilities

zConstruction skills improvementzIncrease net sales ratio of new productszIncrease of construction workforce to promote insourcing: 105% year on year
(FYE March 31, 2024)
zNet sales ratio of new products: 30% (FYE March 31, 2024)

zIncrease rate of construction workforce: 101.2% (FYE March 31, 2023)
zPeriodic renewals of critical area welding certification systems: 90
zNet sales ratio of new products: 30.0% (FYE March 31, 2023)

Promotion of corporate governancezAdvancement of capital cost management

zROE: 11.5% (FYE March 31, 2024), consolidated
zROIC: 10.5% (FYE March 31, 2024), consolidatedzROE: 9.6% (FYE March 31, 2023), consolidated
zROIC: 6.8% (FYE March 31, 2023), consolidated

P. 11-12
P. 27-30

Thorough compliance

zStrengthening of compliance education

zCompliance comprehension level: 90%, BX GroupzResult of compliance comprehension test: 90%

P. 28

Increased satisfaction

Pursuit of customer satisfaction

P. 23

P. 10

BX Group Sustainability Report 2023

16

Sustainable Protectionof the Global Environment

E

Together with the Earth
Risk management

Environmental Management by the BX GroupOur mission at the Group is to deliver happiness to people through diverse
manufacturing that is friendly to people, society and the environment. In
particular, we recognize that the environmental issues currently faced bysociety, such as global warming, are important issues that our Group must
address as a priority.
The “comfortable environment” that we strive to achieve is a society inwhich current and future generations can lead safe, secure and comfortable
lives in environments that fit the times. As such, we believe it is important toshare the blessings of nature together.
As a Comfortable Environment Solutions Group, the BX Group promotes
business activities that aim to achieve carbon neutrality by 2050 and pass onrich natural environments and comfortable lifestyles to the next generation.

As an arbitrary advisory body for the Representative Director to makedecisions, the Meeting of Managing Operating Officers deliberates in advanceon matters to be discussed or reported to the Board of Directors. When reports
are made to the Board of Directors, such as on the risks and opportunities
posed to the Company’s business activities or financial affairs by climatechange, they must also be deliberated by the Meeting of Managing Operating
Officers in advance.
The Board of Directors receives regular and appropriate reports from the
Executive Officer acting as the Chairperson of the Sustainability Committee on
the risks and opportunities posed to the Company’s business or financial
affairs by climate change, and discusses and evaluates these reports.

Environmental governance

In May 2021, we announced the BX Group Declaration of Decarbonization for2050 as a commitment to achieve net zero CO2 emissions across our businessactivities by 2050, thereby contributing to the prevention of global warming.
The BX Group Environmental Vision “Blue neXpand 2050: Expanding the BlueSky into the Future” is communicated to all employees of the Group. The vision
designates climate change, resource recycling and coexistence with nature aspriority areas and aims to eliminate negative environmental impact. Not only
that, it also strives to create positive environmental value through our businessactivities and pass on a comfortable environment to the next generation.
With the Medium-Term Management Plan, we aim to create new values inpursuit of comfortable environments by FY2023. To this end, we are promoting
the eco & disaster prevention business as a focus business to support future
growth. We are also working to expand our lineup of eco-friendly productsthat help mitigate global warming, and disaster prevention products that
address climate change risks.

At Bunka Shutter, we have established the Sustainability Committee as anorganization to promote general activities based on the CSR Charter across theentire Group. The Sustainability Committee consists of four CSR Charter
committees. The Together with the Earth Committee is responsible for setting
CO2 emissions and waste reduction targets and monitoring their progress. It
also promotes efforts to reduce the Group’s overall environmental impact,
such as by managing the progress of decarbonization activities and overseeing
the statuses of various other measures.
An Executive Officer acts as the Chairperson of the Sustainability
Committee. The Chairperson is responsible for proposing overall sustainability
and CSR measures, setting targets, monitoring activities, facilitating education
and raising awareness in such areas as the environment, including climatechange, local communities, social contribution, human rights, labor andcompliance. The Chairperson also reports related information and activity
results to the Board of Directors through the Meeting of Managing Operating
Officers.

Environmental management strategy

We consider the issue of climate change as both a risk and opportunity capableof significantly impacting business management. As such, the Sustainability
Committee’s Climate Change Team monitors and assesses climate changerisks and opportunities through various meetings and identifies those that are
particularly important. The Climate Change Team is led by the CSRManagement Department and includes members from the Corporate
Planning Department, Manufacturing Planning Department, Human
Resources & General Affairs Department, and Accounting Department.
In identifying climate change risks and opportunities, the Climate Change
Team conducts climate change scenario analyses under the leadership of the

CSR Management Department. The important risks and opportunities derived
from the scenario analyses are reviewed by the Sustainability Committee andthen reported and recommended to the Meeting of Managing Operating
Officers and the Board of Directors.
The Climate Change Team is entrusted with taking into account future
economic conditions and climate change-related initiatives in Japan and theworld. Factors that are considered to likely create an impact are discussed in
the Sustainability Committee and recommended to the Meeting of Managing
Operating Officers and Board of Directors so that they can be firmly
incorporated into business plans.

Environmental Management
The BX Group promotes environmental management systems based on Eco
Action 21. Oyama Factory, BX Shinsei Seiki and BX Tenpal Saitama Factory,
which are major Bunka Shutter factories, have acquired the ISO 14001
certification for their environmental management systems and arecontinuously working to improve their environmental performance. The
Research Institute for Life-in & Environment & Disaster Prevention, locatedadjacent to Oyama Factory, is a comprehensive testing and research facility
that conducts various types of performance tests, fundamental technology
research, product evaluations and safety verifications in addition to establishingevaluation standards. It also houses a lot of testing equipment related to
global environment research as we strive to enhance our ability to resolve
environmental issues.

Eco-friendly design
When developing a new product or improving an existing product, we work
to improve its environmental performance by evaluating how it affects theenvironment at each stage of its life cycle. We design products with a focus onenergy efficiency, reduction of environmental impact and resource recycling
based on the Environmentally Friendly Design Guidelines. By doing so, andalso conducting life cycle assessments (LCA*), we are shifting our productdevelopment to be more environmentally conscious.
In FY2022, our years-long work of making the shutter opening and closing
switch more energy efficient produced significant results. CO2 emissions while
using the electric products were reduced by 7% compared to the last fiscal
year. Suppressing the standby power consumption greatly reduces the use ofenergy in our electric products when they are not being used to open or close
shutters. In particular, we reduced the standby power consumption in our newenergy-saving opening and closing switch, which was improved for window
shutters, by 20% compared to existing products. Over around 50% of products
in our window shutter departments are already using the new, energy-saving
opening and closing switch. Going forward, we plan to likewise reduce
standby power consumption for products in other fields as well.
* Life cycle assessment (LCA): A method for quantitatively evaluating the environmental
impact of a product over its whole life cycle.

We undertake initiatives to calculate the lifetime CO2 emissions of products based on emissions at each stage in the product life cycle.

Together with the Earth Promotion System

BX Group Environmental VisionCorporate Creed
Material input

Upstreamlogistics

Product
manufacturing

Downstream
logistics

Construction

Use

Maintenance

RecycleDisposalManagement Philosophy
CSR Charter“Together with the Earth”
We will contribute to the protection of the global
environment by promoting managementthat takes people, society and the environment into
consideration in order to realize comfortable environments.

BX Group Environmental Vision

Expanding the Blue Sky into the Future
The future that the BX Group envisions is a society
where everyone can look up at a blue sky and live in comfortable environments
while enjoying the blessings of nature.
As such, we strive to not only eliminate negative environmental impact
but also create positive environmental value through our business activities in thethree areas of climate change, resource recycling and coexistence with nature.
In this way, we work to pass on a comfortable environment to the next generation.
Three Priority Areas for the BX GroupCSR Activity Policy● Business management with reduced environmental impact● Development of eco-friendly technologies and products● Voluntary environmental protection activities

17

Climate change:
Resource recycling:

We work with stakeholders to achieve carbon neutrality.
We aim to achieve net zero emissions by promoting acircular economy.
Coexistence with nature: We help protect biodiversity by striving to prevent
negative environmental impact and contributing to therestoration and regeneration of nature.

Supply Chain Management
We have formulated procurement guidelines as a communication tool toensure that both our company and our suppliers work to fulfill social
responsibilities. The guidelines lay out our procurement policies and initiatives,and based on that, clarify the matters that we request suppliers comply with.
In FY2022, we revised the guidelines and expanded the section on theenvironment to reduce environmental impact throughout the entire life cycle.
We have our business partners conduct annual surveys using an evaluation list
based on the procurement guidelines. Using their self-evaluation results andour evaluation results, we create opportunities to communicate, help make
improvements and support our suppliers with regulatory compliance andenvironmental initiatives.
Furthermore, a new logistics system linked with our logistics suppliers has
gradually been implemented in seven Bunka Shutter factories so far. The
system aims to both optimize operations and reduce CO2 emissions within thelogistics process. Going forward, we will continue to promote the strengtheningof our supply chain and reducing environmental impact to respond tochanging social circumstances and meet the expectations and demands ofsociety.

BX Group Sustainability Report 2023

18

E

Sustainable Protectionof the Global Environment

Together with the Earth

TCFD Endorsement

Solutions to mitigate and adapt to climate change

In October 2021, Bunka Shutter endorsed the Task Force on Climate-related Financial Disclosure(TCFD). Going forward, we will actively promote the disclosure of information regarding theimpact climate change has on our business activities based on the TCFD recommendations.

We perceive climate change as not just a business risk but also an opportunity to promote our eco & disaster prevention business and enhance corporate value.
The Intergovernmental Panel on Climate Change (IPCC) released its latest Sixth Assessment Report in March 2023. It predicted that an increase in global
temperatures cannot be avoided due to CO2 accumulation and raised the need to strengthen international efforts to address the threat of global warming.
Meanwhile, various regions are incurring greater damages and social impacts are growing due to increasingly frequent and severe cases of extreme weather andnatural disasters caused by global warming. Against this backdrop, we expect even greater demand going forward for eco-friendly products that help mitigate
climate change, and disaster prevention products that can adapt to climate change.

Risks and opportunities associated with climate change
We have analyzed the risks and opportunities associated with climate change
in our core shutter and door businesses under two scenarios: one with atemperature increase forecast of less than 2°C, and one with a temperature
increase forecast of 4°C. We have identified transition risks, physical risks andopportunities under each scenario. Financial impact analyses were conducted
for factors that were assumed to be particularly impactful to the Company. We
conducted profit/loss (PL), balance sheet (BS) and cash flow statement (CF)simulations through 2050 under the given assumptions to assess the impact
and importance of the identified drivers on the PL, BS and CF.

The results of the assessment of climate change-related risks andopportunities derived from the scenario analyses are reflected in our businessstrategy based on their level of impact and likelihood of occurrence. Risks andopportunities that are rated as particularly impactful are as follows, along withthe status of measures to address them.
The financial impacts estimated in the scenario analyses are made undercertain assumed conditions, and factors whose likelihoods of occurrence are
difficult to determine at present are also incorporated into the analyses.

● Scenario Analysis
Name of Scenario

Imagined World View

Less than 2°C scenario

Environmental regulations are tightened, and structures built to ZEB and ZEH standards become more popular. Demand for highly
energy-efficient products and renewable energy services increases.

(SSP1-2.6)
4°C scenario (SSP5-8.5)

Impact on business strategy or financial affairs
Big: Impact is expected to be large Medium: Impact is expected to be moderate Small: Impact is expected to be small

ImpactChanges in energymixz Capital expenditures may increase due tothe introduction of renewable energy
and energy conversion in manufacturing
and R&D (in-house)

Technology

Policies, laws and regulationsz The introduction or increase of carbon
taxes could increase the Company’s
operating expenses and cause a pricepass-through from our suppliers

Transition to lowcarbon technologies

z Suppliers’ shift to low-carbon
technologies (including changes in the
manufacturing process of steel, etc.) may
lead to increased capital investment andhigher procurement costs

Acute

Description

Carbon taxes andother burdensz Deliveries may be delayed or logistics
networks may be disrupted if suppliers
incur damage, resulting in order
Increase in severity
cancellations or sales declines
and frequency ofz Procurement and transportation costs
may rise due to increased recovery costs
natural disasters andas a result of suppliers and carriers
extreme weather
incurring damage
phenomenaz Procurement and logistics costs may
increase due to the need to secure new
suppliers and logistics networks

Products and services

Transition risk
Physical risk
Opportunity

19

Factorz Demand for energy-saving, eco-friendly
products with a high level of thermal
insulation and heat shielding is expected
Increasing need for
eco-friendly products to risez Inquiries from business partners
that help mitigate
regarding eco-friendly products thatclimate change
mitigate environmental impact during
the manufacturing process are expected
to riseIncreasing need for z Demand for BX products with superior
products that adapt
disaster prevention and mitigation
performance is expected to increase andto the impact ofsales are expected to rise
climate changeLess than
4°C
2°C
scenario
scenarioBig

Responsez Conversion to renewable energy (BX Head Office, BSTC Tokiwadai)z Installation of solar power generation systems at Himeji Factory in addition to Oyama Factory
and the Research Institute for Life-in & Environment & Disaster Preventionz Development of the eco-friendly steel door, SGD, by reducing the weight of materials andMedium changing the assembly methodz Promotion of the Green Procurement Guidelines and request to 116 suppliers to engage ineco-friendly managementz Longer service life for the steel staircase, Danjuro II, by using steel sheets with corrosion-resistantplatingz Promotion of the management and optimization of the energy consumption portfolioz Promotion of replacing equipment with a focus on productivity and high efficiency

Big

Big

Big

z Consider converting to alternative materials for procured parts with high CO2 emissions
Smallz Gather information from suppliers using surveys

z Establish a BCP for procurement to ensure stable supply and promote duplicating supply chains,
holding a minimum level of in-house inventory (three months of product inventory), creatingprocurement guidelines and visualizing the Company’s inventory statusz Based on the “Business Continuity Guidelines for Manufacturing Divisions,” build structures forgathering and responding to information on downstream distribution statuses in the event ofemergencies, including natural disasters; focus on such matters as the status of roads and otherinfrastructure and the ability of customers to accept deliveries

Small

Big

Big

z Electric blind shutter, Mado Master Soral
A residential window shutter equipped with a blind function that blocks out sunlight andshields heat during summer and absorbs sunlight during winter to make air conditioning/heating more effective
Smallz Eco-friendly steel door, SGD
Reduced emissions by 35kg-CO2 per door by reducing the weight of materials and changing theassembly method

Bigz Expand Water Barrier Master Series for flood mitigation
Shutters with water barrier panels, doors with superior water-blocking properties, easy-to-installwater barriers, buoyancy water barriers, compact water barrier sheets
z Expand Wind Block Series for resisting strong winds
Shutters for factories and residential applications with superior wind resistance performance,and shutters connected to residential home energy management systems (HEMS) with weather
warning notification functions

Big

Adaptation Solutions● Solar power generation system business● Rakuset: BX water barrier panel

We promote the use ofrenewable energy by leveraging
the metal processing
technologies that we havedeveloped over the years andour nationwide after-salemaintenance system.

This product can be installed
without construction in various
places. It acts as a water barrier
while still allowing people to enterand exit. Rakuset SD, released in
FY2022, allows the water barrier
panel to easily and quickly befitted into the frames of service
entrance steel doors.

● Awning business, BX Tenpal● Tomepita: Compact water barrier sheet

We offer eco-friendly productsthat effectively counter summer
heat by adjusting sunlight
exposure to create comfortable
spaces both indoors andoutdoors. These products offer
great energy-saving benefits andlower apparent temperatures.

This compact water barrier sheet
has ten times the ability to stop
water compared to sandbags. It
has few parts and the package islight, compact and can be carried
by a single person alone. Its
maintenance after use is simple, it
can be used repeatedly and takes
up very little room when stored.

Environmental regulations remain at current levels, without significant progress in the spread of ZEB and ZEH. Meanwhile, demand fordisaster prevention and mitigation products increases due to the increasing frequency of natural disasters.

Evaluation on the degree of impact on businesses andfinancial affairs
Category

Mitigation Solutions

Slide Canvas Sorakaze ▶

● Tekumoku: Wood-plastic recycled composites● Aquafloat: Buoyancy water barrierOver 90% of this resource
recycling product uses recycledplastic and wood waste
produced at deconstruction sites
and factories. It offers highdurability, stable quality and feels
like natural wood.

This water barrier panel rises
automatically using water’sbuoyancy. The product does not
require electricity and can be set
up and left alone at night or in
unmanned facilities. It can coverwide openings, making it an
optimal water barrier solution forfactories, warehouses, buildings,
residential apartments andcommercial facilities.

● Mado Master Soral: Residential electric blind shutter● Wind Block SeriesThis product offers great
energy-saving benefits as it
efficiently adjusts indoor room
temperatures throughout theyear by letting in wind andshielding sunlight.

This series features products that
ensure high wind resistance toprotect factories and residential
properties from large typhoons
and sudden gusts of wind. They
not only offer sturdy protection
against flying objects but also
prevent damage to buildings
caused by negative pressure.

BX Group Sustainability Report 2023

20

E

Sustainable Protectionof the Global Environment

Together with the Earth

Decarbonization Activities

Overall Environmental Impact Across FY2022 Business Activities

In FY2021, Bunka Shutter announced the BX Group Declaration of
Decarbonization for 2050 to address decarbonization, which is a critical factor
in climate change. We have since launched initiatives to reduce CO2 emissions
with the goal of achieving carbon neutrality across our business activities by
2050. The entire Group, including international Group companies, will
participate in decarbonization efforts.
Around 40% of CO2 emissions produced within the Group’s businessactivities comes from electricity use. Another around 40% comes fromgasoline consumed by cars used for business. Therefore, we have established
two major pillars to lead CO2 reduction efforts. The first is founded on thoroughenergy-saving activities, which include replacing equipment at our production
sites. For example, we will install high-efficiency lighting and convert to 100%
renewable energy, such as solar power, that can fundamentally be generated
and consumed in-house. The second pillar is converting to and using ecofriendly cars (HV, PHV and EV) for business activities.
In FY2022, we promoted the conversion to eco-friendly cars with a system
to offer environmental contribution subsidies to HV, PHV and EV users. We also
added infrastructure to support the conversion, such as by installing quick
charge stations in the Head Office building and Himeji Factory. As of April 2023,
24% of cars used for business activities are eco-friendly vehicles. Furthermore,a solar power generation system was installed at the new office of BX KOUN’s
Himeji Factory this fiscal year. This makes it our fifth domestic site to install asolar power generation system to enable in-house generation andconsumption of 100% renewable energy.
In terms of Scope 3 emissions, we set CO2 reduction targets for indirectemissions produced through procurement and logistics activities within our
supply chain, and are working in collaboration with our suppliers to actively
reduce emissions.

Indicators and targets
In order to achieve carbon neutrality across our business activities by 2050, we
will aim to reduce Scope 1 and 2 emissions by 46.2% by 2030, based on the
1.5°C target recommended by the Science Based Targets (SBT) initiative.
FY2019 is set as the base year.
Particularly in terms of Scope 2 emissions, we will strive to achieve net zero
emissions by 2030 by procuring 100% of electricity from renewable energy
sources.
In terms of Scope 3 emissions, we will aim to achieve a 27.5% reduction
from FY2019 in Category 1 (purchased goods and services) and Category 4(transportation and distribution) based on the 2°C target.

INPUT

EnergyElectricity

6,799 thousand kWh

Kerosene

39kl

City gas

102,158m3

Gasoline

3,400kl

Light oil

567kl

Kerosene

88kl

City gas244,886m3

LPG

931t

Gasoline

805kl

Light oil

97kl

20,000Use of resources inbusiness activities

64,604m3

50,000

Reduction compared to FY2019（t-CO 2 ）

9.8
8.7

8.7

10

800,000(%)（t-CO 2 ）8

FY2030FY2019 ＞

FY2022 performance ＞

FY2050

FY2030 ＞

Scope 1

16,824

15,425

15,587

Scope 2

12,14811,0230

Total

28,972

26,44815,587

Scope 3(Categories 1, 4)

683,121738,213495,262

16,824

Achievement of carbon neutrality(Scope 1 + 2)
FY205011,346

11,074

11,023572,899

20

10,00030,000（kl）(1,000 kWh)662,014615,312

10

25,836

8,000

484
110
6,000

‑0.7

0

4

15,092

15,04915,425

2

2020

2021

4,000
200,000‑10

72,397

76,199

2020

2021

2022

■ Waste generation

Chemical substance management

YOY

3,000

433
123

534
124

664

656

1,132

1,101

1,203 15,000

3,642

3,595

3,753

1,270

646

10,0000

0
2019

Increased

25,000401
120
20,000

2,000

‑20
2019
(Base year)

25,189

Same

2020

2021

2022

Decreased

Recycling rate

4,000
( t)

0

680

25,545

24,773

4,118

68,092

2022

79.5

81.4

2,494

2,504

2,000

84.0

100

Emissions to air ( t)(%)

Ethylbenzene

18.6

Ethylbenzene

Xylene36.4

XyleneTrimethylbenzene

1.6

Trimethylbenzene

Toluene34.7

Toluene

8.1

Lead and other chemical substances

0.01

Lead and other chemical substances

0.03

Total

91.3

Total

14.2

75

2,120

50

Achievement of carbon neutrality-

8,921t

(%)

6.2

0
2019
(Base year)

1,000

25

0

0
2020

21

612,282

400,000

Waste generation and recycling rate

Base year

600,000

60

Scope 1
Fuel such as gasoline, light oil, etc.

Scope 1 + 2: 46.2% reduction
Scope 3 (Categories 1, 4): 27.5% reduction(Production-related*)

Electricity use

Reduction compared to FY2019

70,839● Convert to use of eco-friendly cars for business activities

FY201911,154t

Change in energy use

‑8.1

0

270t

Recycle volume*Net zero emissions achieved at 7 Bunka Shutter factories and 10 Group
company offices

2030: 100% use of renewable energy

10,000

Waste■ Gasoline ■ LPG ■ Light oil ■ Kerosene ■ City gas

10,00015,5872,120t(Production-related*)■ Category 1: Purchased goods and services■ Category 4: Transportation and distribution● Convert to renewable energy (e.g.: solar power generation system)

Scope 2
Fossil fuel-based electricity

111,524m3

Water

Change in CO2 emissions (Scope 3)

20,000● Install high-efficiency lighting (LED)106t

Emissions towater■ Scope 1: Direct emissions from own fuel use, etc.
■ Scope 2: Indirect emissions from use of electricity, etc.

12,14828,972

13,962t-CO2

32,345m3

Landfill/incineration volume

46,920m3

30,00030,000CO2 emissions
PRTR substances

Emissions to air

Use of energy inproduction activities

40,00039,075

12,486t-CO2

Change in CO2 emissions (Scope 1 + 2)

40,000(t-CO 2 )Emissions to air CO2 emissions
Emissions to
Water
water

2,812m3

Water Clean water
resource Undergroundwater● Roadmap to achieve carbon neutrality
BAU (Business-As-Usual): Emissions produced if no additional measures are taken

Decreased

29,533m3

supplied by other companies

76,232Same

Use of energy in sales
and services

18,745 thousand kWh

Electricity

Increased

OUTPUT

21t

LPG

Water Clean water
resource Undergroundwater

EnergyYOY

2021

Change in volume (t)
2.0
4.1
0.002

2022

BX Group Sustainability Report 2023

22

Creation of a sustainable societyS

Pursuit of coworker happiness

S

Together with Society

Together with Coworkers

Contributing to society as a corporate citizen

Respect for Human Rights

Co-creation with the community

As a Comfortable Environment Solutions Group, the BX Group aims to help
people achieve happiness by providing safety and peace of mind throughdiverse manufacturing while also continuously contributing to thedevelopment of societies and economies. And to that end, respect for humanrights and an engagement with human rights issues are indispensable. We will
pursue human rights initiatives as stated in our founding spirit: “to serve
society with sincerity,” in order to practice the culture of “a company thatvalues people” that our Group has inherited.

The BX Group contributes to finding solutions for regional issues in various
areas around Japan through collaboration with organizations that provide
diverse welfare services.
Through Bunka Shutter Service, we have been proactively buying products
manufactured by persons with disabilities to use as novelties for many years,
and once a month, BX TR and others organize traveling sales of bread involvingorganizations that support the employment of persons with disabilities. To
reduce food waste and use food effectively, BX Okinawa Bunka Shutter, theGochaku Factory, and others organize food drives with the help of local

governments and NPOs todeliver foodstuffs to children
and welfare facilities in theircommunities. We will continue
to deploy similarly communityrooted contribution activities
throughout Japan in the future.
BX Okinawa Bunka Shutter’s food drive

Humanitarian contributions to society
Collaboration with local governments

Support for disaster-stricken areas

Since 1994, Bunka Shutter Service, which inspects and repairs shutters, hasprovided training on destroying shutters during emergencies at firefighting
training sessions held at fire academies and fire departments around Japan,
which contributes to speedier rescues. In FY2022, 1,172 trainee firefighters at 21
fire academies took part in such training, and we received a letter ofappreciation from the Shizuoka
Prefectural Fire Academy.
We intend to continue
collaborating with various local
governments to help people livewith safety and peace of mind.

For there to be even further recovery from the Great East Japan Earthquake,
along with passing on memories of the disaster, it is necessary to continue
providing support that will serve as the driving force for the future of the
Tohoku region. To provide an opportunity to revive industries and increase
understanding of the disaster area, Bunka Shutter organizes BX Marche at the
Head Office's BX Hall facility. Additionally, we
have been interacting with Watari town in
Miyagi Prefecture since the immediate
aftermath of the earthquake, and we organize
the Watari Children’s Festival which involves
sports classes and fairs for children in thecommunity. In recognition of these efforts, in
April 2023, we were awarded a commendation
as a long-term contributor by the Miyagi
The letter of commendation
awarded to the Tohoku branchPrefecture Watari Town Tourism Association.

Forcible entry firefighting training

Support for cultural activities
Contributing to society through cultural activities
At Bunka Shutter, we have inherited the mindset of “contributing to culture
through construction materials” from our founder, and we support a variety ofcultural activities. At BX Hall, to support music and traditional performances,
we sponsor organizations involved in solving regional issues such as providing
childcare support, hold events such as participatory classical music concerts
and picture book readings by professional voice actors in an endeavor tointeract with the community.

who have retired from the team in finding second careers. Bunka Shutter has
been certified as a Tokyo Sports Promoting Company for seven consecutive
years in recognition of these activities.

Contributing to society through sports

23

Although the BX Group has been working towards respect for human rights
based on our CSR Charter “Together with Coworkers,” in order to respond toincreasing human rights risks and evolving issues in international society, andto increase the sophistication of our human rights management including inthe supply chain, in November 2022 we formulated our first Human Rights
Policy based on international human rights-related standards rooted in the
United Nations Guiding Principles on Business and Human Rights.
Furthermore, to enhance employee understanding, we have also been
publishing articles and educating employees about human rights and LGBTQ
issues.
Going forward, we will endeavor to deepen Group-wide understanding ofrespect for human rights based on the Bunka Shutter Group Human Rights
Policy, and contribute to the creation of a sustainable society by fulfilling our
responsibilities in that regard.

Major human rights issues we prioritize handling●

Prohibition of discrimination●

Prohibition of harassment●

Ensuring health and safety in the workplace●

Paying reasonable wages and managing working hours●

Prohibition of forced labor and child labor●

Respect for freedom of association and the right tocollective bargaining◀︎ You can read the full text of the Bunka Shutter Group Human
Rights Policy here

* We refrained from activities such as events between FY2020 and FY2022 due to the spreadof COVID-19.

The players on the ultimate frisbee* corporate team, the Bunka Shutter Buzz
Bullets, voluntarily carry out activities such as ultimate frisbee tournaments incollaboration with Bunkyo City and organizing sports lessons at welfare
facilities for persons with disabilities.
Additionally, as an official sponsor of a soccer team based in Bunkyo City,
we support the revitalization of the local community and also assist players

Formulating a Human Rights Policy

Promotion of human rights due diligence
To identify, evaluate, prevent or mitigate human rights risks involving ourbusinesses including the supply chain based on the Human Rights Policy, we
have established a project team that cuts across relevant departments andformulated Human Rights Due Diligence Performance Guidelines.
The project team’s functions will be developed within the Together with
Coworkers Committee, and they will pursue human rights due diligence
initiatives to verify and improve human rights risks while paying attention tohuman rights issues specific to each business department.
In FY2023 we will follow the guidelines to perform an impact assessmentof business on human rights and carry out an employee survey about humanrights. For our suppliers, we will endeavor to increase their understanding of
the reformulated Procurement Policy that includes human rights entries andconduct a survey to identify and assess human rights issues.

Harassment prevention
Bunka Shutter uses Harassment Prevention Standards that state standards fordetermining harassment, prevention measures and specifically prohibited
items in order to clarify behaviors that constitute harassment. We provide avariety of learning opportunities, including not only education throughe-learning but also harassment training for all personnel in managerial
positions in the Group in FY2022.

Management of foreign technical trainees
We manage foreign technical trainees appropriately based on Japan’s foreigntechnical trainee system and are endeavoring to put structures in place to
avoid or reduce human rights risks. We also give them various kinds of support
to enable them to acquire technical skills with peace of mind even in an
unfamiliar living environment. This support includes guidance on construction
site rules and safety management, rent subsidies for rental housing, language
training to help them pass level N3 of the Japanese Language Proficiency Testand a system that allows them to consult us about lifestyle or work issues at
any time.

Establishment of consultation and reporting contact point
We had established and operated an internal and external reporting andconsultation contact point in order to detect and correct wrongdoing at an
early stage, and strengthen our compliance management by providing anappropriate structure for employees and others to make public and internalreports as well as consultations about harassment. However we have now set
up an external reporting and consultation contact point that is shared by theentire BX Group. In addition to ensuring transparency and improving theefficiency of information collection, it has also begun to operate as a contact
point for human rights-related consultations and reports.
The dedicated contact point online supports English and Vietnamese as
well so that foreign trainees can use it in their native languages.
We also take thorough protective measures so that consulters do not suffer
unfair treatment.

UNITY, the dodgebee team at the Team Lien welfare facility for persons with disabilities* A 7-person team sport using flying disks (frisbees).

BX Group Sustainability Report 2023

24

Together with Coworkers

Open the Way to the Future - To be a Comfortable Environment Solutions Group

Create innovation
Cultivate solution creation abilities
Diversity and inclusion● Share a sense of values, perspectives andexperience by securing human resources
with diverse attributes, experiences, etc.
● Appoint human resources with high levelsof expertise, and integrate humanresources

Human resource
development/personnel system

Work-style support● Provide growth opportunities through● Create work fulfilment and life satisfaction

training, etc.
● Foster skill improvement and● Create comfortable workplaces thatindependence/aspirations● Fair and impartial performance appraisals
and appointments to important positions● Promote physical and mental healthsupport different stages of life

Human resources sought
People who take the initiative to think, act, and solve issues
People who proactively challenge themselves while maintaining positive mindsets and actions
People who can create new business areas through expert knowledge, skills or ideas not limited to existing business areas

Percentage of mid-career hires
81.6%
Percentage of newly
graduated female hires 27.1%
Percentage of female
managers 2.2%

Training time per employee 14 hours/year
Participants in IT literacy distance-learning 139
Meisters 38

Participants in career design
training 39
Percentage of persons withdisabilities hired 2.15%

System chart of human resource development and motivation improvement measures
SelfMotivation improvement
development
measures

Corporate Creed(Sincerity, Hard Work, Service)

Corporate culture/readinessWe act by always putting ourselves in the position of
our customers.
We contribute to the development of society withexcellent quality.
We place importance on positiveness and harmony andmove forward day by day.

as employees

We reflect the “human capital” mindset which regards human resources ascapital in our management strategies and endeavor to maximize the value ofhuman resources though initiatives like these.

25

Training for promoted persons

Junior level
positions

Career design training
Training for promoted persons

MEI, GEN, SO(represented by being cheerful,energetic, and honest)◀︎ Details of the human capital mindset are disclosed in the
Annual Securities Report.

Training for new section managers

Follow-up training for OJT supervisors
OJT supervisor training

Entry level
positions

Follow-up training for new employees
Training for mid-career hires

Harassment training

The Founding Spirit that we value

Management Philosophy

Bunka business management
development program training(developing management personnel)

Evaluator training

We respect the individuality and creativity of our colleagues and aim for the satisfaction and growth of each and every one of them.

Senior level
positions

Problem-solving training

Together with Coworkers

Self-innovation training

P. 13-14

Product education

CSR Charter/Activity Policy

Area marketing training

Group training

Meister system

Medium-Term Management Plan Vision● Securing diverse human resources
We will enthusiastically recruit both new graduates and mid-career hires
without discrimination regarding nationality, age, gender, presence or absenceof disability, or any other factor. By doing this and thereby accepting a diverse
range of values and multifaceted perspectives, we will reduce the rigidity of
our human resources, create new businesses and grow the company.
When it comes to the employment of women, we regard the perspectiveof women as vital to the Company's growth in aspects such as promoting
work-style innovation and finding new products and businesses. Therefore weare working to improve the balance in the ratio of male to female employees
through active recruitment, and at the same time we are setting up
environments that accommodate flexible work-styles through telework andexpanded childcare leave policies.
We also hold career design training for mid-level female employees to help
them improve their management and leadership skills.
We promote the recruitment of persons with disabilities in all departments
and job types around Japan, with the goal of developing them into humanresources that can contribute not only at our company but at any othercompany. In FY2022, all interested persons with disabilities were made into
official regular employees. We also improved their treatment, increased
opportunities for them to succeed, and endeavored to increase theirsatisfaction and improve their competitiveness in the recruitment market.

Overseas posting system

Medium- to Long-Term Increase in Corporate ValueAt Bunka Shutter, we believe that a company’s value is sum total of the HR
capabilities of all employees. Therefore, to develop our human resources, we
provide level-based training that corresponds to job position and function andoffer various kinds of training intended to improve skills such as problemsolving abilities and innovation. To increase productivity, we also provide
distance-learning education on IT literacy. During every kind of training, we
provide opportunities for management to give direct lectures about their
expectations for employee growth and the Company’s stance and direction.
Furthermore, to encourage skills acquisition and qualifications for expertisesuch as construction and construction management, we give incentives suchas qualification bonuses and celebratory cash gifts to those who acquire
qualifications.
Additionally, we introduced a Meister system in 2007 to train successors forthe company's proprietary technologies and high-level technical skills at
manufacturing sites. Improving technical skills will grant our products greater
safety and reliability and enable us to improve customer satisfaction and meet
diversifying needs. Four of the Meisters are persons who were rehired after
retirement. Their presence increases the motivation of senior employees while
their activities are contributing to the company's growth.
Through measures like these, we hope that every employee will embody
the human resource image our Group seeks, which will expand the areas ofvalue we provide to society and lead to the building of a resilient corporate
body.

Job recruitment system

We will strengthen our human resource foundation firstly through securing
diverse human resources by respecting the individuality and creativity of ourcolleagues, aiming for the growth and satisfaction of each one of them andpromoting diversity and inclusion, and secondly by enhancing our humanresource development system, striving to create an environment where
diverse abilities can be displayed and increasing employee engagement. Then,through the high-level synergy of those human resources, we will increase theresilience of management by boosting the earning power of our corebusinesses, expanding the scales scope of focus businesses and trying todevelop new businesses, all of which will be converted into sustainable growthand greater corporate value.

Human resource development

We have newly established a Diversity and Inclusion Policy in order to provide
employees with opportunities for acquiring and displaying diverse skills, andto proactively promote diversity and inclusion.
By creating an environment where everyone can utilize their individual
characteristics and display their abilities to the fullest and by accepting avariety of values and perspectives, we will attempt to create new value which
will lead to growth for the Group.

(system for appointing human resources through internal recruitment)

The BX Group regards human resources as one of the most important businessfoundations it needs in order to respond to rapidly changing social conditions
and diversifying customer needs and to continue to create new value forsociety.
To strive to achieve “a comfortable environment for people and the earth”
and further advance the Group’s growth and the Medium-Term Management
Plan, it is imperative that we embrace different values and perspectives, suchas individual personalities and abilities, regardless of who they belong to.
Furthermore, we need to develop human resources who can embody thehuman resource image the Group seeks as well as our corporate culture
involving the Corporate Creed and Management Philosophy, and implementbusiness policies.

Promoting diversity and inclusion

In-Group internship system

Basic approach to human resources

Various kinds of distance-learning

S

Pursuit of coworker happiness

Practical factory/construction/operations training
New employee training

BX Group Sustainability Report 2023

26

Sustainable economic growth

G

Together with Growth

Assessing the effectiveness of the Board of Directors

Promotion of corporate governance
Basic approach
Our basic approach to corporate governance is to enhance the function ofmanagement checks and to maintain and continue fairness from theperspective of further improving management transparency in order toimplement business activities that meet the expectations of our stakeholders,
including shareholders, investors, customers, business partners, and membersof local communities. In order to do so, we are strengthening and enhancing
our corporate governance system and disclosing information in a timely andaccurate manner.
In addition, we will appropriately put the Corporate Governance Code into
practice as it is applied to listed companies on the domestic stock exchanges.
We agree with the concept of enhancing corporate value through sustainablegrowth while contributing to the development of stakeholders and theeconomy as a whole, and will work to further strengthen our corporate
governance.

Outline of corporate governance structure
Under our corporate organizational structure that includes an Audit andSupervisory Committee, the Board of Directors supervises management, andthe Company has adopted the Operating Officer System that separates
management supervision from business execution.
At the time of publication of this report, the management structure
consisted of 7 Directors (excluding Directors who are Audit and Supervisory
Committee Members), 5 Audit and Supervisory Committee Members who arealso Directors (including 4 Independent Outside Directors), and 24 Operating
Officers including 6 serving concurrently as Directors.
The members of the Audit and Supervisory Committee audit the Board of
Directors, Directors and Operating Officers from the perspective of legality

and appropriateness, including the status of development and operation of
the internal control system from a standpoint independent of the Board of
Directors.
We have also established a Meeting of Managing Operating Officers
chaired by the Representative Director and President, which deliberates
important matters including Board of Directors agenda items, in accordancewith the Company’s bylaws. The Meeting of Managing Operating Officers
consists of the Representative Director and Officer in charge of Management
Operations, Officer in charge of Sales, Officer in charge of Manufacturing, andOfficers in charge of Design, Construction, New Business, Product Development
and International Business.

Board of Directors
A total of eight Board of Directors meetings were held in FY2022. In accordancewith laws and regulations, the Articles of Incorporation, the Board of Directors
regulations, and other internal rules, the Board of Directors passes resolutions
on important matters such as those related to the General Meeting of
Shareholders, important organizational and personnel matters, financial
results, and important matters concerning assets, etc. For the purpose ofclarifying the structure of management responsibilities and accelerating
decision making, the Board of Directors delegates authority over its resolutions
to each responsible director.
As of November 2023, our Board of Directors consists of 12 members: 7
Directors who are not Audit and Supervisory Committee Members, who arefrom within the Company, are familiar with our business, and are capable ofmaking prompt and appropriate decisions based on the characteristics of ourbusiness, and 5 Directors who are Audit and Supervisory Committee Members,
including 4 Independent Outside Directors.

Election of Independent Outside Directors
Experience and insight

Status of activities

Shozo Fujita

Mr. Fujita has held various important positions as a prosecutor,
including Superintending Prosecutor of the Nagoya High Public
Prosecutors Office. After retiring from the office, he worked as an
attorney at law, and has a wealth of knowledge and a highdegree of insight in the legal field.

To ensure the adequacy and appropriateness of decision-making by the
Board of Directors and Audit and Supervisory Committee, he mainly offers
statements and expresses opinions from the standpoint of a legal expert,
and provides advice and recommendations for the establishment of internal
control systems.

Kazufumi Abe

Mr. Abe is a former employee of UACJ Corporation, where hegained extensive work experience, including as a Full-time
Statutory Auditor.

He provides advice and recommendations to ensure the adequacy andappropriateness of decision-making by the Board of Directors and Audit andSupervisory Committee, mainly by expressing his opinions based on his
extensive business experience at other companies and his work experience
as an auditor.

YoshihikoHayasaka

As a former Director and Senior Managing Operating Officer of
Maeda Corporation, Mr. Hayasaka has acquired extensive
experience as a corporate manager primarily in the constructionindustry, and offers a high degree of insight based on thatexperience.

He provides advice and recommendations to ensure the adequacy andappropriateness of decision-making by the Board of Directors and Audit andSupervisory Committee, mainly by expressing his opinions based on his
experience as a manager at other companies.

Kazue
Shimamura

Ms. Shimamura has abundant knowledge and broad insight as aprofessional in the field of commerce, mainly in the academic
world, having served as a professor in the Faculty of Commerce at
Waseda University, where she also served as Vice President of the
Academic Affairs Division, Dean of the Faculty of Commerce, andDean of the School of Commerce.

She provides advice and recommendations to ensure the adequacy andappropriateness of decision-making by the Board of Directors and Audit andSupervisory Committee by expressing her opinions from the perspective ofan expert mainly in the fields of consumption and marketing.

27

Bunka Shutter conducted a self-evaluation of the effectiveness of the Board of
Directors’ meetings held in FY2022 by administering a 46-item questionnaire
to all Directors in office as of March 31, 2023. It consisted of six topics:
Composition of the Board of Directors, Operation of the Board of Directors,
Support System for Directors, Directors’ Own Efforts, Audit and Supervisory
Committee, and Summary.
The results of self-evaluations by each Director indicated that the Board of
Directors generally functioned appropriately. In analyzing and evaluating theBoard’s effectiveness, we reafﬁrmed the need to further increase that
effectiveness by, for example, further enhancing reporting and discussions onreports about Group companies’ business activities, internal controls and therisk management system.
Based on the results of each Director’s self-evaluation and opinions, we will
strive to further improve the effectiveness of the Board of Directors bycontinuously working to resolve issues that have been identified and reviewing
the effectiveness evaluation items, as well as by having Directors themselves
raise issues and stimulate discussion.

Nomination/Remuneration Committee
In August 2021, Bunka Shutter established the Nomination/Remuneration
Committee as an advisory body under the Board of Directors to strengthen
the independence, objectivity and accountability of the Board’s functions
regarding the selection and dismissal of Directors and decisions on
remuneration.
The Nomination/Remuneration Committee consists of at least three
Directors selected by resolution of the Board of Directors, a majority of whomare Independent Outside Directors. The chairperson of the committee isselected from among its members by resolution of the Nomination/
Remuneration Committee, and the position is currently occupied by an
Independent Outside Director.

Independence and Diversity of Outside Directors
Bunka Shutter has not established its own criteria or policy for the election of
Outside Directors. Appointments are made in accordance with the Companies
Act and other laws and regulations, as well as the independence standards of
the Tokyo Stock Exchange.
The four Independent Outside Directors have a wealth of experience intheir respective fields and a high level of insight based on their experience.
They contribute to strengthening corporate governance by providing advice
on the Company’s business activities and ensuring the validity andappropriateness of the Company’s decision-making process.

Introducing a performance-based remuneration system
Our basic policy is to set Director remuneration at an appropriate level basedon the individual roles and responsibilities of each Director within the cash andstock remuneration limits determined by the General Meeting of Shareholders,with a view to achieving the Company’s management policies while
contributing to a sustained and medium- to long-term increase in our
corporate value.
Director remuneration (excluding Directors who are Audit and Supervisory
Committee members) previously consisted of monthly remuneration and a
directors’ bonus. However we introduced an additional stock-based
remuneration in June 2022.
The purpose of this system is to clarify the link between Director
remuneration and the Company’s performance and share value so that
Directors will share the risks and returns of changes in share price together

with shareholders, which will heighten their motivation to contribute tomedium- to long-term performance and increasing corporate value.

Conduct of audits and internal audits by Audit and Supervisory
Committee members
As a Company with an Audit and Supervisory Committee, Bunka Shutter
further strengthens the audit function of the Board of Directors by, for example,
allowing Directors who are Audit and Supervisory Committee members tohave voting rights at Board of Directors’ meetings. Consisting of five Directors
who are members of the Audit and Supervisory Committee, including four
Independent Outside Directors, our Audit and Supervisory Committee audits
the execution of Directors’ duties in terms of legality and appropriateness forthe purpose of ensuring the transparency of management.
Audit and Supervisory Committee members attend meetings of the Boardof Directors and Meeting of Managing Operating Officers, as well as importantinternal meetings related to sales and manufacturing, and inspect important
documents. To strengthen the Group’s governance system, the Audit Office of
the CSR Management Department and the Corporate Planning Department
work together to conduct audits, including on-site inspections and remote
audits of Group companies, including those overseas.
In addition, the Audit Office of the CSR Management Department and the
Operations Department of the Business Division systematically conduct
internal audits of business divisions, branches, factories and sales offices. The
Audit and Supervisory Committee, the Internal Audit Department and the
Accounting Auditor form a three-party auditing structure to exchange
information and opinions from time to time to ensure the effectiveness ofaudits.

Internal control system status
In order to ensure that the execution of duties by Directors and employees of
the Company and its subsidiaries complies with laws, regulations and the
Articles of Incorporation, the Board of Directors has established a basic policy
for the establishment of an internal control system in accordance with Article
362, Paragraph 4, Item 6 of the Companies Act and each Item of Article 100 of
the Enforcement Regulations of the Companies Act. The Company has
established a system to ensure that all ofﬁcers and employees of the Company
and its subsidiaries achieve efﬁciency, fairness, legal compliance and asset
protection in all business operations.

Strengthening compliance
The BX Group has established CSR Guidelines that set forth rules to be followed
to ensure that each and every one of our employees not only complies withlaws and regulations, but also acts in accordance with social norms andcorporate ethics. Every employee is given a compact-sized CSR Charter
Handbook to carry at all times to encourage compliance-conscious behavior,and e-learning and video livestreams of various laws and regulations areoffered to provide easy learning opportunities and raise employee awareness.
In addition, we conduct compliance training for new employees, midcareer hires and newly appointed managers, as well as for Group companies, inan effort to create a culture that does not tolerate misconduct at theorganizational level. Furthermore, to quantify and evaluate the degree towhich compliance is pervasive, we conduct comprehension tests andorganizational culture diagnoses and use them as a reference for educationand the establishment of evaluation criteria.
We will keep working towards building an environment that prevents
compliance violations in an organizational manner.

BX Group Sustainability Report 2023

28

G

Sustainable economic growth

Together with Growth

Directors - Audit and Supervisory Committee Members

Outline of Corporate Governance System
General Meeting of Shareholders
Appointment and dismissal

Audit and supervision of theperformance of duties

Board of Directors(management decision-making)

Audit report

Chairperson: Representative Director and Chairperson
Deliberate in advanceon matters to be discussed

Selection, Selection, Proposal
dismissal dismissal submission
and Reportandsupervision supervision

Toshihiko Shiozaki

Hiroyuki Ogura

Yoshinori Shimamura

Yoshinori Fujita

Representative Director Chairperson

Representative Director – President
Executive President

2007

2011

Director
Senior Managing Operating Officer in
Charge of New Business, ProductDevelopment, International BusinessDirector
Managing Operating Officer in chargeof Sales, Design, Construction

2012
2016
2021

Director - Senior Operating
OfﬁcerDirector - Senior Managing
Operating Officer
Representative Director President Executive President
Representative Director Chairperson (current)

2018
2021

Director - Senior Operating Officer,
General Manager, West Japan
Business Division
Director - Managing Operating
Ofﬁcer in Charge of Sales
Representative Director - President- Executive President (current)

2011

2018

2021

Director - Senior Operating Ofﬁcer
in Charge of Product Development- Product Development
Department Manager
Director - Managing Operating
Officer
Director - Senior Managing
Operating Officer (current)

2014
2017

2021

Operating Officer and Kyushu
Branch Manager
Director - Senior Operating Officer
General Manager, West Japan
Business Division
Director - Managing Operating
Officer (current)

Discussion

Meeting ofManaging Operating Officers

Audit and Supervisory Committee

General Manager:
Representative Director - President
Established in accordance with internal rules
when a management crisis occurs
Chairperson: Executive Officer

Report important matters

Management andsupervision of
execution
Customer Serviceof duties
ReportReportCorporate Planning
Department

Quality Guarantee
Department

Business unit
in charge ofGroup companies

ReportHuman Capital Disclosure WG

Human Resources &General Affairs Department
Secretariat
Business unit
contact

Answers and advice

Whistleblowing
and consultation

Toyo( Crowe& Co. )CSR Management Department
Collaboration

In charge ofinternal
controls

In charge oflegal affairs

Audit Office

Answers and Consultation
Coaching Report
adviceAudit
report Report

Employees of Group companies

Informationfrom customers

Accounting
AuditorSecretariat

Report Secretariat

Whistleblower hotline
Office of outside lawyer

OfficeAccounting
audit

Climate Change Teamcharge of management operations, sales/design/construction, manufacturing,Operating Officers (innew business/product development/international business)

ReportCollaboration andinformation sharing(supplementary)

Sustainability Committee

Representative Director

ReportAudit
reportCollaboration

Management Crisis Task Force

Chairperson: Outside Director*The majority of the committee consistsof Independent Outside Directors

Advice Seek advice on important matters
Proposal submission Direction and delegation
and reportingof authority

Appointment and dismissal
Decisions on
proposal submissions

Seek advice on candidates,
compensation, etc.

Nomination/Remuneration
Committee

Chairperson: Representative Director - President(Representative Director,
Operating Officers in Charge)

Appointment
and dismissal

Proposal submission and reporting (business, audits, etc.)

Answers and advice

Individual departments

Group companies

Consultation andconfirmation

Legal Advisor

Director Skills Matrix

Mitsuru Mita

Haruhiko Ichikawa

Hiroki Yamasaki

Nariyuki Matsuyama

Director
Managing Operating Officer
General Manager, East Japan Business
Division

Director
Managing Operating Officer
In Charge of Management Operations

Director
Senior Operating Officer
General Manager, Sales Development
Business Division

Director
Audit and Supervisory Committee
Member (full-time)

2014
2018
2021

Representative Director - President,
BUNKA SHUTTER SERVICE CO., LTD.
Director - Senior Operating Officer
Director - Managing Operating
Officer (current)

2013

2018
2021

Operating Officer - Human
Resources & General Affairs
Department Manager
Director - Senior Operating Officer
Director - Managing Operating
Officer (current)

2015
2017
2019

Operations Department Manager,
West Japan Business Division
Operating Officer - Sales Planning
Department Manager
Director - Senior Operating Officer(current)

2013
2015
2021

CSR Management Department
Manager
Operating Officer - CSRManagement Department Manager
Managing Operating Officer - CSRManagement Department
Manager Director - Audit andSupervisory Committee Member(full-time, current)

Shozo Fujita

Kazufumi Abe

Yoshihiko Hayasaka

Kazue Shimamura

Director
Audit and Supervisory Committee
Member (Independent Outside
Director)

Director
Audit and Supervisory Committee
Member (Independent Outside
Director)

Director
Audit and Supervisory Committee
Member (Independent Outside
Director)

Director
Audit and Supervisory Committee
Member (Independent Outside
Director)

2010

2010

2012

2006

2016
2017

Superintending Prosecutor of the
Nagoya High Public Prosecutors
OfficeBUNKA SHUTTER Auditor
Director - Audit and Supervisory
Committee Member (current)

2013
2016
2017

29

Sumitomo Light Metal Industries,
Ltd. (now UACJ Corporation)
Managing Operating Officer Deputy General Manager,
Corporate Administration Division
Sumitomo Light Metal Industries
Full-time Statutory Auditor
BUNKA SHUTTER Auditor
Director - Audit and Supervisory
Committee Member (current)

2017

2021

Maeda Corporation
Director - Senior Managing
Operating Officer
FBS Miyama Inc. (now FBS CO.,LTD.) Board of Directors
Chairperson
Director - Audit and Supervisory
Committee Member (current)

2012

2023

Waseda University
Professor - Faculty of Commerce(to date)
Waseda University
Dean of the Faculty of Commerce,
Dean of the School of Commerce(until 2016)
Director - Audit and Supervisory
Committee Member (current)

Bunka Shutter recognizes that the current structure is of an appropriate size for effective discussion and decision-making by the Board of Directors. In addition, fromthe standpoint of ensuring diversity and expertise on the Board of Directors, the Board is composed of an appropriate number of Directors, appointed withconsideration for a balance of personnel who can demonstrate strength in management in each business field and personnel suitable for maintaining andimproving compliance and administration, such as by selecting persons with management experience at other companies, legal experts, etc.
Our Company has prepared the following skills matrix, which lists the balance and diversity of knowledge, experience and abilities required of each Director inlight of the Company’s management strategy.

Businessmanagement

Human
resources andIndustry
Governancelaborknowledge Risk management
Human resourceand expertise Internal controls
development
Social issues

Finance andaccounting
Financing
M&A

Sales
Marketing

Product
development
Quality
management
Manufacturing andprocurement

●

●

●

Toshihiko Shiozaki

●

●

●

●

Hiroyuki Ogura

●

●

●

●

Yoshinori Shimamura●●

Yoshinori Fujita

●

●

●

Mitsuru Mita

●

●

●

Haruhiko Ichikawa●●

Hiroki Yamasaki●●●

Nariyuki Matsuyama
Shozo Fujita●

Kazufumi Abe
Yoshihiko Hayasaka
Kazue Shimamura

●

●

●

●

●

●

International
experience
International
business

●

●

●
●

●

●

●

●

●

●

●
●
●

●

●
●

●

●

●

BX Group Sustainability Report 2023

30

G

Sustainable economic growth

Together with Growth

Risk management
Chairperson of the Board of Directors
Toshihiko Shiozaki Representative Director and Chairperson
In 2021, I stepped down as President and assumed the position of Chairperson of the Board of Directors. This moved me from the position of responsibility for execution to the position of making decisions about the executionof duties and supervising Directors as they fulfill their roles. When conducting Board of Directors’ proceedings as the Chairperson, I strive to create aplatform for brainstorming that accepts all kinds of opinions as long as theytake the growth strategy for the Group’s future into account.
Extensive debatefrom a diversity ofviewpoints and opinions is essential to
the Board of Directors’ decision-making process. Bunka
Shutter welcomed
Ms. Kazue Shimamura from the field of
academia as a Director this fiscal year. In
my opinion, increasing the diversity of

Message from an Outside Director
Kazue Shimamura Outside Director
As an academic, I specialize in the fields of advertising, PR and other kinds ofcommunication in marketing, so I am not highly knowledgeable about business management or businesses involving shutters and construction materials. However, according to the Corporate Governance Code, Independent
Outside Directors are expected to give advice that seeks to promote thecontinued growth of the Company and the medium- to long-term increaseof its corporate value, and also to supervise management and appropriatelyreflect the opinions of stakeholders in the Board of Directors from an independent standpoint. To fulfill this responsibility, I would like to absorb, digest
and understand a wealth of information and knowledge about the BXGroup’s business areas and form my own opinions based on that. I will study
diligently and assiduously especially when it comes to the (1)Human resources and labor, human resource development, social issues, (2)Finance and accounting, financing, M & A and (3)Sales and marketing aspects described in
the skills matrix.
At the same time, I am aware that since I lack advance knowledge about
these business areas, the expectation is that I will provide recommendations
and suggestions from a completely different viewpoint. And especially as
the first female Director in the Company, I hope to contribute to the empowerment and development of women in the Company. I also plan to use my

the members not only in terms of background but also in terms of experience, views, areas of expertise and other possessed skills is important because it increases the effectiveness of the Board of Directors while also
strengthening our corporate governance.
My experience as the person responsible for execution is extremely useful in the fulfillment of my serious responsibility as the Chairperson of the
management decision-making body. Since my appointment as a Director, I
watched the history of the Company unfold from the executive side for longer than anyone else. While setting a clear boundary with management execution and direction, I have many opportunities to communicate my experiences on the executive side and things I have learned through our history
during Board of Directors’ meetings. Bunka Shutter has its strong and weak
points, and its organizational culture is unique in its own way as well. My
hope is that sharing our history with the other members will give management an even higher vantage point on matters.
For us to grow continuously in a rapidly changing society, it is vital for the
Board of Directors to have discussions on our future vision as well. I pledge tofulfill my duty as the Chairperson of the Board of Directors to increase thenumber of stakeholders that empathize with our purpose of continuing toprovide sustainable and comfortable environments through diverse manufacturing, and to increase corporate value even further so that we can meetthe expectations of those stakeholders.

expert knowledge in advertisingand communication to give advice on improving communications with a variety of stakeholders
such as management and employees, shareholders, business
partners, customers, local communities and jobseekers. The
Company’s management has conveyed the strong ambition of the
BX Group to deeply engage withthe environment and society andto grow as a company in order to“bring about a sustainable andcomfortable environment for people and the Earth.” The Earth in the 21st century faces many issues that cannot be solved easily, such as the impact of COVID-19 and the intensificationof natural disasters due to global warming, but I am highly expectant thatthe BX Group’s businesses will engage deeply with these issues, which willlead to growth in corporate value.

Product safety and quality improvement

CSR procurement guidelines

The BX Group is dedicated to not only in improving the quality of our products
but also in enhancing the quality of our work at all stages of the value chain
from planning to maintenance, with the aim of earning the trust of society bycreating products our customers can trust.
In FY2022, to ensure that we delivered the quality customers desired, we
checked the quality management status of each product component again
and endeavored to stabilize quality in order to strengthen our systems forpreventing quality abnormalities and product-related accidents. We also
focused on human resource development and provided all employees with
opportunities for studying through e-learning in order to foster awareness andequalize knowledge about laws and regulations.
At the Research Institute for Life-in & Environment & Disaster Prevention,
which conducts various performance tests and product evaluations, we are
improving evaluation standards in order to guarantee even greater safety, andwe are doing this through measures such as sequentially installing new testing
devices and evaluation technologies. In this way, we will strive to increase thetrust customers have in BX products by providing products that give themeven greater safety and peace of mind.

The cooperation of our business partners and suppliers is essential to therealization of the “comfortable environment” the BX Group aims for. With fair,just and open transactions as the foundation, we endeavor to promote
procurement guidelines that allow us to build collaborative structures with our
suppliers in order to meet the expectations of society throughout our supply
chain, including from the viewpoint of achieving a decarbonized society andconserving the global environment.
The guidelines clearly establish our approach to and standards for CSR
purchasing and CSR procurement, which includes not only thoroughcompliance but also procurement that guarantees quality (Q), costs (C) anddelivery (D) and takes the global environment, labor and human rights into
account, which our suppliers understand. Furthermore, in addition to periodic
quality inspections, we conduct mutual checks based on supplier selfevaluations using business partner evaluation forms and our own company
evaluations. We endeavor to create opportunities for regular communication
using the feedback results and to build relationships of trust, and we also
perform thorough risk management. We will continue working to build a firm
foundation through the promotion of CSR procurement that aims at
sustainable procurement.

● Response to product-related accidents and quality
abnormalities
We have built a crisis management structure that allows us to respond speedily
and appropriately to product-related accidents and quality abnormalities.
Each location reports information on product-related accidents and major
quality abnormalities to the Quality Guarantee Department. If the department
determines that there is a likelihood of aggravation from the legal, safety or
accident expansion perspective, the matter is deliberated at the various
meetings (Accident Response Meeting/Quality Assurance Meeting). Meeting
participants consider the response, including the need for notification andrepairs, with the focus on regulatory compliance and safety, and arrive at a final
decision after consultation with the President. We use the product-related
accident and quality abnormality information to conduct a speedy
investigation to determine the cause and take steps to prevent a recurrence. At
the same time, we also horizontally deploy these activities to bring aboutreform and improvement.
Crisis management structure(response to product-related accidents and quality abnormalities)
Report from a customer,
or product-related accident
Respond

Quality abnormality
at factory or construction site

Contact

Business locations and Group companies

Report[Report] • Product-related accident• Quality abnormality (major)

Quality Guarantee
Department

Confirm severity of product-related accidentor quality abnormality (legal violation,
securing of safety, expansion of accident)

No likelihood of aggravation

Likelihood of aggravation

We share information and give guidance to our suppliers regularly andtake steps to spread CSR awareness so that they can have a sharedacknowledgement of our CSR approach and initiatives.

2. Ensuring the quality of purchased goods
We endeavor to improve and stabilize the quality of the raw materials,
components and products we procure by conducting periodic
inspections to understand suppliers’ quality management status.

3. Conservation of the global environment
We conduct fact-finding investigations of our suppliers with regards togreen purchasing and their status of acquiring ISO 9001 certification.

4. Consideration for industrial safety and respect forhuman rights
We take steps to make sure that our suppliers understand and are
instilled with our initiatives for workplace hygiene, safety and respectfor human rights.

Stable supply of products
To ensure that we supply products in a stable manner even if unexpected risks
such as pandemics or large-scale natural disasters should occur, the BX Grouphas formulated a business continuity plan (BCP/BCM) that anticipates all kindsof emergencies.

Business continuity plan

Secure communications● We have installed satellite communication equipment at each factory andbuilt a communication structure between all locations including the Head
Office so that we can speedily grasp the state of a disaster in detail.

Procurement BCP● Duplication of supply chain

Accident Response Meeting/Quality
Assurance Meeting

Consider need for notification/repairs

President

Make decision on notification/repairs

Response by the Task Force/Quality Guarantee Department31

1. Compliance with social norms

We are fundamentally building multiple distribution channels from a BCP
perspective. Additionally, we are working continuously to build a systemthat covers all necessary information, including about the manufacturing
and supply locations of second-tier suppliers beyond our direct suppliers.
We are also making progress on switching from importing certain goods
from overseas to manufacturing them in Japan.

BX Group Sustainability Report 2023

32

G

Sustainable economic growth

Together with Growth

Third-party guarantee● Securing minimum inventory at the Company

The procurement of semiconductors and other electronic components
remains difficult as a result of the greater demand accompanying therecovery in economic activity after the COVID-19 pandemic. As acountermeasure, we are creating a collaborative structure involving various
suppliers, BX Group Companies and BX factories that will allow us tomaintain an inventory of a total of three months’ worth of finished goods
and components.
● Developing procurement guidelines

We ensure that all our suppliers are thoroughly familiar with our CSR
procurement guidelines and endeavor to secure even more stablesupplies.

● Promotion organization
To improve the security of the Group as a whole by creating a unified security
policy for the entire BX Group, the Security Committee, chaired by an Executive
Officer, and a Task Force appointed from each department, protect information
assets, manage an information asset management ledger, share information
about information security and work to strengthen the structure.

To increase the trustworthiness with regards to the amount of energy used and CO2 emitted by the entire BX Group, Bunka
Shutter received third-party guarantee from Socotec Certification Japan, an independent third-party organization.

● Education to improve information literacy
Apart from implementing e-learning education on information security for all
Group employees, we also organize training on targeted attack emails(malware, etc.) in an effort to increase employees’ security awareness.

● Visualization of the Company’s inventory levels

We are building a system that allows us to visualize and share information
about the inventory levels of purchased goods at Bunka Shutter’s sevenfactories so that we can provide components and raw materials more
efficiently. Furthermore, in response to global concerns about the supply ofelectronic components such as semiconductors, we have built and areoperating a structure that allows us to list all the electronic components
included in our electrical equipment and manage all their inventory levels.

Supply of products● Response to manufacturing system

We are building a system that allows us to switch production to anotherfactory if a factory is affected by a disaster. We plan to expand functionality
so that we can achieve even smoother production switches.
● Building a logistics system

By rebuilding the in-Group distribution network and sharing distribution
information between businesses, we intend to set up a system that allows
us to combine this information with disaster status information in order tosearch for optimal routes and secure vehicles.

From the day onward
Several days to several months

Occurrence of emergency

Initial response

Confirmation of safety, understanding of damage situation,assessment of recovery prospects

Business
recovery plan

Creation of business recovery plan/communication
with customers and partner companies

Business
recovery activities
Rawmaterial
supportConclusion

Equipment
support

EmployeesupportCustomerand partnercompany
supportFinancialsupportEnd of business recovery activities/Resumption of
normal production activities

Information security
To guarantee the security of information assets, the BX Group has formulated a
Basic Policy on Information Security and engages in activities that maintainsecurity. In addition to preparing for external cyberattacks by using EDR (anticyberattack software) and encrypting all company PCs, we have implemented
measures against information leaks in line with the promotion of remote
working. These include installing fingerprint authentication on personal
computers, deleting information remotely and strengthening passwords.
Furthermore, to be prepared in case of a disaster, we have grouped all servers
together at a data center and created a safe environment that includes
backups.

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1. Scope
The scope of this policy is all officers and employees belonging to the BXGroup.

2. Compliance with laws and regulations
The BX Group complies with laws, regulations, guidelines and agreements
concerning information security.

3. Management of information assets
The BX Group takes the appropriate organizational and technologicalmeasures to protect all information assets held by the Group.

4. Information security education
To enable both its employees and related persons to handle and manage
information assets appropriately, the BX Group regularly educates them,raises their awareness of the importance of information assets, and strives
to increase their information security literacy.

5. Continuous improvement
The BX Group strives for continuous improvement in line with information
security management and will revise this policy and various related regulations as necessary.

Business continuity activity implementation process

Switchedproduction
support atother factory

Basic Policy on Information Security

Preparing for the occurrence of a large-scale disaster
Bunka Shutter practices the measures below to prepare for the occurrence ofa large-scale disaster.
1. We have distributed a “Guide to Earthquakes,” and have put a system inplace to simulate how to act when an earthquake occurs and how to findemergency contact numbers. We also provide support for early returns incases where returning home is expected to be difficult.
2. All of our business offices are fully stocked with supplies for all workers.
The Head Office building in particular has additional supplies for visitors
and residents in the neighboring community.
3. For offices with many workers, we regularly hold disaster drills that anticipate the occurrence of a large-scale disaster, and we provide training sothat they will be able to calmly take safety measures.
4. To prepare for a situation where transportation systems are paralyzed, wehold training for Head Office workers where they practice walking home.
We intend to hold the same kind of training for locations in other cities
such as Osaka and Nagoya.

BX Group Sustainability Report 2023

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